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					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.

				
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