The Redbox Effect – A Winning Marketing Strategy

Redbox’s marketing strategy is to be revolutionary.

Video rental has been a staple in our culture for over 30 years, yet Redbox has revolutionized the industry just within the last 5. By focusing on their customer acquisition first, and growing their distribution second, they have created a video rental business that threatens to change the future of their industry.

Color & convenience help market Redbox.

Marketer’s have used the color red for decades as a way to attract their potential buyer’s attention. You just can’t miss a giant red box. Especially when the DVD’s are only $1 a night.

Redbox’s advantage; low overhead.

While major competitor Netflix has relatively low overhead as well, they still need to pay postage twice for every DVD. Blockbuster also has the various costs associated with their retail locations, and branded video cases. Redbox’s company and business model is so streamlined that it allows for rapid growth, and healthy profit margins.

Redbox business expansion opportunity?

What if Redbox kiosks began vending popcorn or snacks along with the DVD? User centric product design & service offering is already at the core of Redbox.