Blockbuster Marketing Project

Running head: BLOCKBUSTER MARKETING PLAN PROJECT

Blockbuster Marketing Plan Project

Executive Summary

Established in 1985, Blockbuster Entertainment Corporation is an international video specializing retailer. Blockbuster revenues decreased 23 percent during 2009 and ended the year with over 6,000 locations. In 2004, Blockbuster estimated the mail order market of consumers to be restricted to three million customers. This estimate was incorrect as displayed by Netflix, one major competitor specializing in mail order videos, which are now benefiting from a customer base of 15 million subscribers.

A situational analysis was performed evaluating multiple aspects of the company and products. Some areas reviewed were the price, profit, perception, planning, promotion, product, and positioning from internal and external viewpoints. The price shows how Blockbuster prices are in-line with competitors and also provides more incentives than its major competitor, Netflix. Also, movie rentals and purchases show little elasticity as long as a change in cost does not exceed $5 dollars.

Blockbuster profit shows negative impacts resulting from the economy and competitors. Although Blockbuster is the leader in revenues for the video retailing industry, Netflix has surpassed Blockbuster in the mail order and online category. In comparison, Netflix enjoys 43 percent revenues compared to Blockbuster and utilizes only three percent of the number of employees.

Consumer perception of Blockbuster shows not all customers are aware of the firm’s delivering capabilities. Blockbuster maintains 96 percent brand awareness but does not identify awareness for product delivery capability. Blockbuster offers product digital delivery mechanisms for consumers who are technologically savvy, in-store products for those who are not, and kiosks for consumers who are visiting a local grocery store and choose to rent a movie overnight.

Blockbuster currently plans...