Redbox: Marketing Within the Box

Americans are an elite class of consumers. As consumers, Americans are very comfortable in knowing when a product will be needed or wanted, where to find that particular product, and how much they are willing to pay for a particular product. Consumerism has become a second nature that we seldom give much thought to the process. This desire for products can be attributed to the work put in to marketing and promoting such items. Marketing strategies put in an overwhelming amount of effort to grab the consumer’s attention, create a need or desire and develop brand loyalty. The first REDBOX kiosk was launched in 2002, inside a McDonald’s restaurant. Since then REDBOX has expanded to over 27,000 locations. Solely in part to the way the REDBOX has marketed itself, targeted current and potential customers, and created brand loyalty. This paper will discuss how REDBOX uses its product, placement, price and promotion as a part of the marketing strategy to generate millions of dollars in annual revenue.
REDBOX is a “Coinstar Company that rents DVDs for a dollar a day through vending machines in more than 25,000 convenience store, supermarkets, and fast-food restaurants” (Kolter and Armstrong, 2012, p. 370). REDBOX was the first of its kind to offer affordable daily DVD rentals from a kiosk. REDBOX is still in competition with Blockbuster and Netflix in the DVD rental market. However, REDBOX is a step ahead. They realize the high cost of rental and membership fees consumers can endure, so they offer a unique distinguishing marketing tool, $1 a day rentals. Imperative to their success, REDBOX uses a sophisticated software system designed to skillfully deliver DVDs to consumers instantly at the touch of a button. REDBOX does not anticipate cutting back on its products or kiosks; instead they are diligently trying to fulfill higher demands from consumers by using the future of technology. “REDBOX operates more than 24,000 DVD rental kiosks in McDonald’s, Walmart, Walgreens,