Redbox Case Study

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Redbox Case Study Redbox’s Strategy Main Elements of Redbox Strategy includes: * Attract customers with a combination of low price and convenience (strong focus on customer experience) * $1.00 per day rental price is considerably cheaper than the $4.50 rental fee charged by many movie rental outlets * The location and convenience of Redbox DVDs has considerable appeal; an estimated 150 million people per week walk within 10 feet of one of Redbox’s nearly 20,000 locations * The rental and return process was designed to be fast, efficient, and fully automated with no membership fees(200 different DVD titles are just a touch on a touch screen and swipe of a debit or credit card away and returns can be completed in 20 seconds or less at an unoccupied machine) * Gives customers the ability to go to the Redbox website and see what is in stock at nearby Redbox locations and reserve a DVD at a particular machine * Launched a Redbox iPhone app that offers the main features of the Redbox website on the iPhone and iPad * Expand rapidly the number of shopping locations with a Redbox kiosk * The parent company (Coinstar) has been aggressive in continuing to deploy additional vending machine kiosks (the company planned to install 7,000 to 8,000 new kiosks in 2010) * Plans called for capital expenditures of $115 million to $125 million for new kiosk locations * Redbox has recently negotiated arrangements to add kiosks to navy exchange stores on over 40 naval bases in the continental US and Hawaii, to 100 Schnuck Markets stores in 7 states, as well as expand its presence to more than 280 of Kun & Go’s 430+ convenience stores in 11 states * Redbox has been creating buzz among retailers interested in boosting customer traffic in their stores * Redbox has been leveraging the existing customer

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