VIEWS: 2 PAGES: 20 POSTED ON: 4/13/2012
WHAT WOULD I DO? If I controlled Blockbuster for the day… Blockbuster is a huge provider of rental based video games and DVDs. It is one of my favourite companies simply because of the market that it operates in, (I’m a bit of a gamer myself!), in addition to the successes that it has achieved. However, in 2010, Blockbuster filed for bankruptcy – one of the saddest pieces of news for the loyal customers of this business. Something went seriously wrong for this to happen and many stores closed. I believe that it was due to the fact of pirate DVDs and online downloads becoming more and more abundant. I believe in new ideas that can counter this problem. Blockbuster was recently taken over by Dish Network. In this PowerPoint, I highlight some of the things that I’d change if I was in charge of the company for the day. Whilst some of these ideas are unrealistic in terms of the timescale, they could by implemented by the new owners to create a revolutionary rental business! BLOCKBUSTER? There are a lot of new changes that are going to be taking place at Blockbuster and therefore a team of dedicated senior directors is needed. I would start with team building exercises to ‘break the ice’. I would first get each employee to introduce themselves and reveal a little about their experiences with the business in the past. The next team building exercise that I would play is here – with reference to Fresh Tracks (www.freshtracks.co.uk/pdf%20files/freefrostbite.pdf). With this link formed, I would then outline my plans for the company and would conduct a discussion, as I believe that team influence is important and likely to be more representative. I also believe that these plans would increase team morale. Finally, I would outline schemes if the new project goes ahead as desired – employee rewards; such as “employee of the week” (or in my case hour!) and bonuses for all staff should we meet our targets; funded by the sale of shares and increased revenue. I would then split the team into groups so that we could achieve the tasks stated on each slide within the day. THE FIRST DAY IN THE OFFICE… FINANCE There are a lot of potential investments within this new – look business. These investments require initial finance, which I believe could be taken from current owner’s funds / current investments in the company. A large loan could be taken out to fund this multi – million deal, with extensions of the company resting upon a hire purchase market. Another method of finance that I would suggest is to sell secondary shares. This would promote a ‘customer friendly company’ and also be a way of raising capital to take out such a substantial loan. A possible deal may also be negotiated with prospective partners who may be prepared to make an initial investment within the business – to oversee deals and so they can ‘have their name on something’. CORPORATE IDENTITY I would task another of the divided groups into assessing the new corporate identity of the company. I believe that this should be done to attract the new designated target market – that of families and young people. CAPTION: ‘A POTENTIAL NEW LOGO DESIGN FOR BLOCKBUSTER’ This logo is more suitable to my target market – concise and gives a general message of the company. The symbol is generic and could link with sponsorship. Words such as “epic” and the phrase “here to bust the boredom” is very informal and would attract the younger generation. It also suggests the corporate identity of the company as ever – powerful. NEW SUSTAINABILITY PRIORITIES As part of a ‘family friendly’ corporate identity, I would also suggest a new sustainability priority plan for the company. This could be as simple as selling re – usable bags, with the business name on it, which could in turn also enhance the brand image. The business could also be committed to using less packaging and purchasing movies and games locally. This is why one of the first things that I would do is produce a sustainability plan. NEW INCENTIVES To encourage potential customers and to reward repeat customers, I believe that a new incentive scheme should be offered to them in relation to the frequency and cost of each order. I would task one of the teams to draft out new customer initiatives; I believe that this should be implemented on the customer database – each purchase detailed as a record and after a milestone is passed, Blockbuster get in touch with the customer to let them know of their prize. Below is a list of suggestions for prizes at each milestone: £50 in total spent = Free DVD or video game rental £100 in total spent = Free DVD and video game rental for a month £250 in total spent = Free DVD or video game £500 in total spent = Free DVD and video game rental for a year £1000 in total spent = BIG AFTERNOON OUT for two. Includes two tickets at the sponsored sports team (see later slides) and a meal at a 5* restaurant including a stay at one of the country’s best hotels. £2500 in total spent = Backstage tour at a major studio for two e.g. Sony, DreamWorks etc. £5000 in total spent = Two tickets to a movie premiere – including backstage passes and autographs from the stars. £10000 in total spent = Family holiday to Hollywood for a week. I believe these to be significant and exclusive incentives, with a definite possibility of attracting new customers and rewarding repeat customers. ADVERTISING I would task a promotional team with drafting out a new form of advertising for Blockbuster. Some ideas are on the next few slides – and this team can expand and elaborate on the information, as well as oversee these potential deals. Blockbuster needs a more suitable advertising medium, to reach out to the new target market of both young people and families. The advertising needs to be more creative – also suggested on following slides. RADIO Part of my promotion team could establish links with national radio stations and create an advert. Radio is a cheaper method of promotion than television and can differentiate promotion the target market through different radio stations. My target market are likely to hear the advert ‘on – the – go’, for example whilst travelling or in shopping centres. I think that this would definitely attract prospective customers. The advert should be upbeat and involve more than one speaker. Perhaps it could be better to pay a commission to some members of the public to take part – as voice actors could then include families and young people. This could be of an added benefit when promoting to my target market; hearing someone of ‘their own type’ could draw them in better. NEWSPAPERS Again, I would task a section of my promotional team with forming new links of advertisement. Another market that I would target is newspapers, for a full page print. I would go for a national newspaper, maybe a less formal one (i.e. tabloid) as this would allow me to differentiate the advert to my target market. The advert can be in colour, which adds visual appeal to the brand identity that I would like the public to POSTERS / FLYERS Another key form of advertisement that I would promote is the form of posters and flyers. This is relatively cheap, highly visual form of advertisement. This can also be targeted at specific parts of the country where sales may not be of the most abundant. Flyers also make for a great form of advertisement – cheap and can be delivered door – to – door or through newspaper inserts. My promotional team would be tasked with creating a practical, yet effective poster / flyer. SPONSORSHIP Another part of my promotional team could form links with potential companies / teams that would like to be sponsored. The advantages of sponsorship include the fact that the name becomes familiar and the brand image is enhanced. The markets that I believe could harbour potential deals include: Sports teams – Blockbuster could sponsor the shirt and attract football fans (a large proportion of my target market lies here). Worldwide sporting events – A potential example is Euro 2012. Again, this will attract football fans. A market that compliments the media rental industry. For example, a furniture store could be sponsored – both films and furniture compliment each other perfectly. A NEW – LOOK WEBSITE My technological team would have two tasks to accomplish by the end of the day: 1. To complete a draft layout of a new – look website. 2. To complete a draft layout of a mobile application. The new – look website should in – corporate the new brand identity. The new website would be designed to be ‘upbeat’ and colourful. The website should be created for a younger generation – as these are the primary users of the internet. A new feature could mean that a ‘virtual tour’ of the headquarters can be taken – and also that the public can register as members (also can be linked to the ‘initiatives’ scheme) and premium features can be accessed by upgrading the account. This would also be a source of additional revenue. A MOBILE APPLICATION (M – COMMERCE) The second section of my technological team will draft a mobile application. On the mobile application, I would suggest this as the basic specification: The mobile application should be free to download. The mobile application should allow ‘orders’ to be placed for movies and games that people wish to rent – a delivery team should be in place to deliver the order the next day. The mobile application should also offer the same incentives as would be offered in store. The mobile application should incorporate wi – fi or so that it can be accessed anywhere. Especially in relation to the last point, the application should offer some form of security when making payments. The application should be creative and colourful, as well as enhance the brand image successfully. A MONTHLY BLOCKBUSTER MAGAZINE! This would be a fantastic way of advertising products and could lead to increased revenue. The features of the magazine that I would suggest include: Latest deals / products on offer Most popular products Future releases Reviews and opinions Puzzles with prizes Inside information about the company i.e. “what have the directors been up to this month?” Shareholder information All the latest news surrounding the company. With this being a monthly magazine, customers would have the opportunity to subscribe to be a member. EMPLOYMENT – THE YOUNGER GENERATION Obviously, the cost of labour is relatively high. Within my reign of the business for the day I would like to start an recruitment campaign to attract young people as workers. My obvious target would be the student market, with those at University over – 18 and therefore old enough to handle restricted access movies and games. The benefit for them is that they are given a part – time, local job that can fit in with their studies in relation to time commitment. The benefit for the business? These workers only have to be paid the minimum wage – which lowers labour costs. In addition to this, the corporate identity of the company is promoted as ‘young people friendly’ – perhaps the younger generation are more likely to make a purchase with somebody their age that they can relate to and converse with, behind the till. UNIQUE SELLING POINTS One of the secondary objectives of the day would be to explore the unique selling points that Blockbuster has over its competitors and how these could be played on in an oligopolic market more. A unique selling point is a fact of what sets a business and its product aside from its competitors, and goes ‘the extra mile’ to promote this to its customers. With the new proposals discussed on previous slides, I believe these to be the unique selling points for Blockbuster. This would suggest the introduction of M – Commerce, which isn’t a primary attribute that is currently used by Blockbuster’s main rivals. OPEN TO A NEW MARKET… This is an option that would be discussed with the team of directors throughout the day. If Blockbuster was to open to a new market, it would be less reliant on rentals and customers bringing media back to the store. Its market also may be nearing a saturation stage – with the advancement of online downloads. A potential market that could be considered is a coffee bar. This could be an extension to some of the largest Blockbuster retail stores and could link to the company if the bar played films and games could be sampled. For a small fee, the public could enter the bar or cinema café – which would lead to large, increased revenue. This could also result in an uptake of rented movies and games. Obviously, this suggestion is only preliminary and I would conduct a discussion involving other schemes throughout the day. LINKS TO MAKE WITH OTHER BUSINESSES As a major retailer, Blockbuster would have to make crucial links with other businesses. This can help in terms of advertising, and if a partnership is formed then it may also help with financial concerns. Below are a few that I think should be contacted. I would personally discuss negotiations with these companies throughout the day – and what a day it would be! Major businesses to make links with: Microsoft Sony FIFA – especially if applying to sponsor Euro 2012 Sports teams Major studies (DreamWorks, Pixar, 20th Century Fox) Business Link Furniture stores Major restaurants and hotels All of these links can either help to advertise the company or be part of some of the incentives. E.g. DreamWorks could offer free tickets to backstage if Blockbuster sold x amount of their DVDs. A lot of these businesses have access to the family market and the young people market and could help to strengthen the new corporate identity of Blockbuster. SUMMARY And that, is what I would do if I controlled Blockbuster for the day. It should be noted that I have elaborated on a lot of these slides – with inside knowledge gathered from Business studies at GCSE level, from lessons and by various textbooks. I have also used a lot of brand names and clip art images, which I deem to be OK due to the purpose of education. I am an aspiring young person who wishes to step into the world of Business. I am really interested in this competition and I would be privileged to be considered for a winning place. However, I wish the best of luck to other entrants.
Pages to are hidden for
"1320349509-TeenBizChallenge-Blockbuster"Please download to view full document