Mkt 431

Marketing Plan Phase I

Team A

Mary Mikiel, Delvena Westmoreland, Deamira Romo, and Earl Jefferson

MKT/421

May 17, 2011

Stephen Fritzenkotter

Abstract

The purpose of this paper is to show how Blockbuster could gain a competitive advantage through innovation and maintain a competitive advantage in its industry. The paper is an industry analysis detailing the movie rental description and the importance of marketing to Blockbuster’s success. Additionally, the paper will detail a SWOTT analysis of Blockbuster. Finally, the paper will in turn provide insight from marketing research to develop the proper approach for strategy and tactics to model the firm’s implementation plans for future success and profit.

[Marketing Plan Phase I]

Company History

Blockbuster LLC Inc. started in Dallas, Texas, in 1985, from 1990 until 2007 Blockbuster was the dominant provider of movie rentals, DVD's, and video gaming software (Blockbuster Limited Liability Corporation, 2010). According to the research group, Burke Incorporated Blockbuster had nearly 100 percent name presence in their industry with movie rental customers (Siklos, 1999).

Early years of Blockbuster had a business format that provided a competitive edge over smaller video rental franchises and local single store rivals. The primary competencies of the firm’s business format were large inventories of rental products and a wide-ranging selection of movie labels. Furthermore, the stores were conveniently located in extremely visible storefronts with exceptional customer service with reasonable rental pricing (Siklos, 1999, p. 64).

Since 2007, Blockbuster battled internally to change its store-based model of entertainment media distribution to more innovative approaches of product delivery. The company's customers could not download movies to their home or mobile devices, nor make orders by mail, or visit one of the decreasing numbers of Blockbuster stores. Furthermore, amidst rapid...