Assignment II- Product Reassessment
Prof Verna Mayers
August 26, 2012
Repositioned Target Market
The target market of a retailer can be the key factor in whether the business achieves success or will ultimately fail. A consumer’s involvement in the target market fluctuates as ones environment changes, therefore, retailers must be able to adapt to both controllable and uncontrollable changes to affecting the target market (4). Blockbuster video store is a primary example of a retailer that has struggled with finding the target market that will make the company profitable. In the past, Blockbuster has seemed to focus its target market on the tweens, teens, and generation Y populations when marketing their products. As the company continues to fail, I think the only way to rebound into a profitable retailer is to develop different marketing mixes that would include a much more broad population. In addition, Blockbuster needs to develop a product that will target the current target market that is exclusive in order for their stores to maintain the current customer’s interest (4). According to the US Census Data, individuals age 55 and older is the age group with internet access readily available in their homes. This information should be an indication to Blockbuster to create a product that redirects the target market to focus on that age group. Since individuals in that age group grew up with different shows that are most likely not available now, Blockbuster could offer an online site that would allow streamlining of shows such as Golden Girls or Happy Days. Furthermore, when going to the store the video selection is either new releases or movies that have been released in the last decade. The retailer could offer a selection of movies that were produced years ago. Customers like familiarity, therefore, the shows or movies that they grew up with could be their option when they are undecided. In an effort to gain the interest of the 55 and older age group, Blockbuster could offer a delivery program. This age group is often affected by illnesses, disabilities, or other hindrances that keep their mobility at a minimum. Even when the option to drive to a location is available to these individuals, they are more likely to go to a place where there needs are met before they focus on there wants. Therefore, if Blockbuster offered a delivery system this target market might be more enticed to utilize the products. Research
Repositioning the target market can be more detrimental to the retailer or have absolutely no success unless the ideas are thoroughly researched. Blockbuster needs to determine the customer’s needs and wants as well as what customers would like to see offered by Blockbuster. When conducting the research Blockbuster could choose to offer a questionnaire type survey. The survey needs to be conducted at a location that is commonly frequented by the 55 and older age group. In addition, since most people have busy lifestyles and often would prefer to be left alone, the retailer must offer an incentive, such as a coupon to their store if the survey is completed. The retailer could also choose to have the survey printed on postcard style stationary that a customer can fill out and put in the post box, postage paid. Those surveys could be placed on windshields at senior centers or bingo facilities, places this target population might frequent. Blockbuster must also focus on a pricing strategy. With the state of the economy affecting most households, the retailer needs to make sure the cost of there products fit within most customer’s budget. Also, since this is the age where people are eligible to retire, recognizing that some people will be on a fixed income should play a role in pricing. The retailer could offer a monthly rental service. For a monthly fee, the customer can rent unlimited movies. Blockbuster should also conduct research on what environment would allow...
Cited: 1-CIA. (2012). The World Factbook Canda. Retrieved from http://www.cia.gov/library/publications/the-world-factbook/geos/ca.html.
2-CIA. (2012). The World Factbook United States. Retrieved from http://www.cia.gov/library/publications/the-world-factbook/geos/us.html.
3-Kelly/McGowan (2012). 4th Edition BUSN. Mason, Ohio: Cengage Learning.
4-Lamb/Hair/McDaniel. (2013). 6th Edition MKTG. Mason, Ohio: Cengage Learning.
5-Marketline. (2011). Blockbuster L.L.C. SWOT Analysis. Retrieved from http://datamonitorresearchstore.com/.
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