MKT6380.501 Assignment 1
1) Using the classic, traditional 4 P's model of marketing as well as the newer 4 C's of Entrepreneurial Marketing, do an analysis of both Blockbuster video at their apex (DVDs, no online service) and early Netflix (using US Post System to deliver DVDs, no online streaming) using both models. Based on your analysis, which model worked best for which company, and which model worked best for the consumer?
To start, there is a "breakeven moment" in the Blockbuster vs. Netflix scenario, where Blockbuster stopped taking risks and moving into innovation in favor of Netflix. With the introduction of a) streaming-on-demand; b) streaming logarithm (customization); and c) simple subscription-based payment methods, Blockbuster was forced to reduce demand when Netflix transitioned from DVD rentals to on-demand streaming.
It should be noted through an analysis of the four P's in both businesses that Blockbuster placed a strong emphasis on consumer involvement and loyalty (blue carpet events, coupons, etc. ); b) customer experience + kids section; As Netflix adhered to the aforementioned criteria customer interaction (personal marketing on media websites) and experience (algorithm); Additionally, Netflix greatly simplifies the process of renting a physical DVD by allowing users to pick between on-demand streaming and DVDs. c) Convenience (we'd also consider the cost of a subscription to be convenient).
4C's strategy: Blockbuster tried to involve customers as much as possible by working with celebrities, planning promotions, investing a ton of money in advertising campaigns, and creating the most individualized pricing plans for the business conceivable, but it failed. In order to cooperate with their client, it took place. Bigger part of Blockbuster's profit were the late rental fees, what Netflix turned into a monthly subscription for unlimited films. Blockbuster continued to offer traditional (at the time) physical DVD rentals, whilst Netflix launched on-demand streaming, giving customers the freedom to watch their preferred movies whenever and wherever they want.
Therefore, convenience and location options include DVDs or on-demand streaming; cost is a monthly subscription fee (customized plans plus a free trial later); promotion includes celebrity endorsements, personal marketing, free trials, and special seasonal offers; and customer journey includes a proprietary streaming algorithm.
2) Create a "Timeline of Context" of what was happening for Blockbuster and Netflix from Netflix's origin up to Blockbuster's bankruptcy. Include any events (historical, technological, industry, financial, etc. ) that you believe had a notable impact on either company and would be necessary to understand the decisions that were made and outcomes of the ...