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Strategic Public Relations Campaign
Description of Organization: The Redbox is an American company that
specializes in the rental of DVDs, Blu-ray Discs, and video games through vending
machines. Redbox’s network extends nationwide with more than 27,800 locations.
Redbox kiosks are located where consumers already shop at such as, leading grocery
stores, mass merchant retailers, drugstores, restaurants and convenience stores
nationwide. Redbox's convenient rent and return anywhere policy and simple touch
screen rental process makes movie and game renting easy. To ensure a title of choice is
there for pick up, consumers also can reserve a movie or game online or through
Redbox’s iPhone or Android mobile apps. Top new release movies are available to rent
at an affordable price, for as low as a dollar a day for DVDs and video games are
available to rent for as low as two dollars a day. The customer pays with a credit card or
debit card. DVDs can be returned the next day to any of the company's kiosks; charges
accrue up to 25 days, after which the customer then owns the DVD, without the original
case and rental charges cease. In addition, to the affordable price there is no monthly
charge, you simply just pay for what you get.
Statement of Situation: Redbox started off slow but is quickly building into a
marketable franchise. Redbox has to advertise more and make more people aware of the
company. With more and more people across the United States using the Redbox for
renting various movies and video game, Redbox could eventually be number one in
movie rentals in the country. If the Redbox continues to outshine and displayed good
business then the revenue and the usage of the Redbox will both increase. In addition,
with other companies like Netflix losing sales and membership holders, Redbox could
ultimately benefit from that and could gain a great amount of users.
Key Publics:
1. Employees.
Employees are Redbox’s biggest asset and our most valued resource.
A. Field Employees; the employees that make up the majority of our staff are our
field employees, collects movies from machines and records counts, keeps
daily record of product distributed to each machine, provides quality customer
service through regular interaction and communication with store managers,
owners, employees, etc. These employees are essential because they’re the
people customers see on the streets. These employees make Redbox run
according.
B. Office Employees/Executives; office employees, which make up a
much smaller portion of overall employees, will run the local events
advertising our brand campaign as well as encouraging field employees to
take part.
2. Kiosks.
Without the Kiosks the Redbox would not be possible. Redbox's
convenient rent-and-return anywhere policy and simple touch screen rental
process makes movie and game renting easy. Redbox has rented more than
1.5 billion discs and is available at more than 33,000 kiosks across over
27,800 locations nationwide, including select McDonald’s restaurants,
leading grocery, drug and convenience stores, select Wal-Mart locations
and Walgreens locations in select markets.
3. Customers.
Our customers are our passion and our driving force and without them
nothing could be possible. Getting the millions of people in the nation to
join the Redbox team would improve our revenue and market.
4. Shareholders.
For shareholders our success and theirs go hand in hand, and as we
continue to progress and grow to our market it is imperative to keep
shareholders informed. Redbox investments will be beneficial to all, and we
want everyone to come along for it.
Integrated Message Platform:
1. The Redbox is a very convenient. The Redbox network extends nationwide with
more than 28,000 locations. Redbox kiosks are located where consumers already
shop - leading grocery stores, mass merchant retailers, drugstores, restaurants and
convenience stores nationwide.
2. The Redbox is very easy to use. Redbox's convenient rent-and-return anywhere
policy and simple touch screen rental process makes movie and game renting
easy. To ensure a title of choice is there for pick up, consumers also can reserve a
movie or game online or via the Redbox iPhone or Android mobile apps.
3. The Redbox is very affordable. Top new release movies are available to rent at an
affordable price. Video games are available to rent for as low as $2 a day.
4. The Redbox features the latest release movies and games, with a selection of the
most popular titles and family favorites.
Key Public Relations Strategies:
1.
To create awareness of the Redbox’s business strategy of more affordable and more
convenient renting system for movies and games among key publics
2.
To educate publics of the quality products Redbox has available for purchase and
the new and improved value of these movies and video games.
3.
To establish a brand perception for Redbox as offering the same high quality
products, a greater value to customers, and an easier and more convenient renting system.
Strategic Public Relations Objectives:
1.
To achieve a 37% awareness of the Redbox’s business strategy among all key
publics
2.
To generate a 25% recognition among key publics of the new and improved value
of the quality products Redbox’s offers.
3.
To establish a 20% increase in Redbox’s brand perception among all key publics.
Brainstorming Grid:
Public(s)
Employees
Value(s)
Integrity of
Organization
Job Security
Kiosks
Message(s)
Employees are the
most important
key public.
Must be active in
Success of set goals events and
promotions
High Quality
Helps the company
be easy and
Easy Usage
sufficient
Media
Newsletters
Direct
Location
Convenient
Customers
Shareholders
Low Prices
High Quality
Movies and games
are high quality as
always
Good Value
Greater Value
Stock Price
Lower Prices
Growth and
Earnings
Media
Brand Press
Releases
Media investor
relations
Annual Meetings
Annual Report
Key Marketing Strategies: The key marketing strategies of the Redbox campaign
include, but are not limited to, the following:
1. To increase sales revenue by gaining more customers in the year 2012.
2. Gain “share-of-mind” in key publics through spontaneous brand identity
3. To increase market share in the established Redbox product brand.
Strategic Marketing Objectives:
1. Increase sales revenue by 27% by promoting the affordable and convenience
quality rentals that Redbox offers.
2. Increase “share-of-mind” in customers by increasing spontaneous brand identity
to 55%.
3. Increase market share to 35% in the Redbox by attracting new customers and
continue to satisfy the needs of current customers.
Key Advertising Strategies: The key advertising strategies of the Redbox include,
but are not limited to, the following:
1. Create a Direct Response Strategy though a multi-media mix, including digital
media.
2. Create an award winning creative advertising campaign.
3. Achieve high rates of recall through a strategic and creative advertising campaign.
Advertising Objectives:
1. Generate 250 website hits per each $1000 spent.
2. Win at least three advertising awards, including, but not limited to, a Clio Award,
an Advertising and Design Award, and an ADDY Award.
3. Achieve reader/viewer recall scores of 77% per each 1000 impressions.
Integrated Tactical Plan: The following is a list of strategic public relations and
marketing tactics that will be implemented throughout the campaign.
Public Relations Tactics:
Newsletter: This tactic will be utilized once every month to manage the relationship
between the company and its employees. Employees are the most important key public to
Redbox. In order for the campaign to be successful, the employees need to be up to date
about what is going on in the company. Also, this can be used to give recognition to
individual employees who are doing more than asked for by the company.
Annual Report: This tactic will be used to manage the relationship between Redbox and
all of their key publics. It will provide readers with information about all aspects of the
company, such as the company vision and mission, products, and financial information.
This will be produced once a year, at the end of the fiscal year.
Advertising: An innovative and creative advertising campaign must be made to show
how useful and convenient the Redbox is. Smaller ads will be present throughout the
year, but the most money will be spent throughout the winter months when families tend
to stay in the house more.
Pitch Letter: This tactic will be used to secure placement in media sources, such as a
newspaper or magazine. Redbox wants to show consumers their new business strategy to
make their rentals more affordable during difficult economic times, and placement in a
media story will help them achieve this. Redbox will send their pitch letter out two
months before they want their story to appear in the media.
Evaluative Research: Research must be conducted throughout the campaign to ensure
its success. In a public relations sense, this research will be primary and secondary.
Marketing Tactics:
Special Events: Redbox will utilize special events and promotions to reward loyal
customers and encourage new customers to rent from Redbox more. For the purpose of
this campaign, loyal customers will be those who have a Redbox membership card.
Redbox will offer random specials throughout the calendar year. Special such as rent two
movies get one free or rent five movies and get two free. These events will let current
customers know that their business is appreciated, and will show prospective customers
that Redbox should be their main source of rentals.
Social Media: Social media will apply easy and cheap tactics that will greatly help the
Redbox campaign take off. Using social media outlets such as Facebook and Twitter
Redbox can provide viewers with information about their campaign and their company
with the click of a button. Redbox’s facebook and twitter page will include information
about special events, promotions, and advertisements. Integrating social media into the
Redbox campaign will also promote participation, openness, conversation, community,
and connectedness between key publics.
Advertising: An innovative and creative advertising campaign must be made to
emphasize the vast array of quality movies and games that Redbox carries. This will be
most heavily utilized around the winter and fall season, which is when the company earns
over 75% of its annual profit. Smaller ads will be present throughout the rest of the year.
Evaluative Research: Research must be conducted throughout the campaign to ensure
its success. In the marketing sense, this research should focus on the customer wants and
needs and the company’s market share. Research must be conducted before the
campaign, during, and after for evaluation.
Combined Budget:
The Redbox campaign’s purpose is to raise awareness about the new Redbox business
strategy, increase revenue, and encourage customers to choose Redbox as their rental
source. The plan is to spend approximately $1,000,000 on resources, advertising, special
events, research, and other necessary expenses to make this campaign a success. The
budget will be spread out over a 12-month period starting in September. Large amounts
of the budget will be spent during the winter and fall season, which is when Redbox earns
over 75% of its income. Evaluative research is included in the budget and will be
conducted throughout the campaign to ensure success.
Tactic
Agency Hours
Outside Costs
Notes
Research (4 Times)
20
Phone Survey: $2
Each
Phone Surveys:
Survey 1: 50,000
people=$100,000
Survey 2: 50,000
people=$100,000
Survey 3: 10,000
people=$20,000
Survey 4: 30,000
people=$60,000
Newsletter (12)
Annual Report (1)
5
20
Feature Articles (3)
20
Pitch Letters (3)
6
Advertising
Social Media (Daily
Updates)
Production Costs:
Printing, Color: $450
Reprints: $288/1K
1 Page Major Daily
Newspaper: $25,000
TV Commercials:
$45,000
Billboards: $30,000
Magazine Ad:
$10,000
12
Add 10% Production
Updates for free on
social media but
company must
compensate in house
personnel for hours.
Summary of Research:
Title
Source
1. Redbox
Redbox.com
2. Redbox History
Redbox.com
3. Summary of Redbox
Redbox.com
4. Redbox Annual Report
AnnualReports.com
5. Redbox Financial highlights
LATimes.com
6. Redbox Facts
Redbox.com/facts
7. Summary of Redbox
Yahoo Finance
8. Redbox Financial statements
www.hoovers.com › Companies › Redbox
9. Redbox investor relations phx.corporate-ir.net/phoenix.zhtml?c=92448&p=irolirhome
10. Redbox Business Strategy
techmarketers.wordpress.com/2009/06/22/redboxbusiness-strategy/
11. Redbox Marketing Strategy
techmarketers.wordpress.com/.../the-redboxeffect-marketing-strategy.