Finalist
Consumer Products
For the past several years, the DVD industry has faced declining sales and the introduction of new technologies, such as digital downloads and burn-on-demand services, that have received a great deal of media attention.
It is within this environment that Gregg Kaplan, CEO of redbox, successfully expanded a DVD rental service from 12 locations to 12,000 in just a few years.
Understanding that value, convenience and service will continue to drive customer decisions, Kaplan has built and refined a business model that retail partners and consumers have embraced wholeheartedly and that competitors simply can’t ignore, while positioning redbox to succeed and adapt as the industry evolves.
Kaplan and redbox faced several key obstacles in developing and expanding the service. DVD rental kiosks were an unknown entity, and convincing retailers of redbox’s solid business model and traffic-driving abilities required extensive brand and product education, which he accomplished without specific industry data to support the kiosk channel. The minimum space requirement helped him sell the concept, as retailers must commit only 18 square feet of retail space, and no staffing is required.
The other challenge was that DVD rental kiosks were also an unknown technology to consumers. Kaplan needed to educate consumers on what redbox was and why it was a superior home-entertainment solution.
Throughout its growth to become the No. 1 DVD rental kiosk provider, redbox was competing against two similar companies to expand its footprint within a limited retail network of grocery, convenience and drug store locations. Kaplan and the redbox team worked to prove that their business model, technology and operations abilities were superior to similar services on the market.
Kaplan’s leadership and redbox’s retail footprint, leading technology and loyal customer base have given the company the ability to adapt to an evolving industry.
For More Information: redbox, www.redbox.com
