Around the North Carolina State University campus, there is not an extensive variety of places to rent movies and videogames. Besides the smaller video stores such as North American Video in Mission Valley, the main movie rental store is the Blockbuster on Avent Ferry Road. Blockbuster already has a competitive advantage around NC State’s campus because they have the biggest selection of new releases, old favorites, and the latest in video games. Smaller stores have a hard time competing against Blockbuster because of their lesser amount of financial assets and advertisements. By adding a Blockbuster onto the Papa John’s on Hillsborough Street, we will not have any main competitors in the general area. Our store should not draw any customers away from the Avent Ferry location, but should boost sales and rentals at both sites. Creating this new business is going to give Papa John’s and Blockbuster both a significant amount of publicity and new promotions.
Since the location of our business is on Hillsborough Street, our main market segment will be the students at North Carolina State University and surrounding colleges. Purchases from college students account for a large majority of the pizza and movie rentals each year, so I believe our business is strategically in a profitable location. The neighborhoods behind Hillsborough Street are occupied by off-campus students and families, which would also benefit from our business. With the vast number of single-family homes and apartments within our delivery range, customer purchases should increase at an enormous rate with the introduction of our new service. Movie delivery along with our pizza services would save our customers both time and money, two items that are very important to younger demographics.
At Papa John’s, we focus an immense amount of attention on our marketing strategies, advertisement, and promotions. Corporate office requires that a minimum of 6% of our monthly sales be spent on marketing purposes. Papa John’s current marketing strategies include flyers on pizza boxes, commercials on television and radio, coupons and advertisements in newspapers, etc… We plan on using the same strategies to promote our new movie delivery service as well. Right after the opening of Papa John’s & Blockbuster would be prime time to purchase the largest amount of advertisement. Both businesses can send out flyers to existing customers as well as in-store posters that would promote the store. Blockbuster currently uses customer receipts to advertise rental specials and other sales, so we could possibly put an advertisement on the movie receipts for our new delivery service. After the first few months of business, the amount of advertisement needed should decrease drastically. Satisfied customers are always the best form of advertising because word of mouth travels faster than any paper advertisement. After the news about our innovative service gets out, our current customers will be our biggest marketing asset. The more satisfied they are with our service, the more people they will tell which will in turn mean more customers for us. The new promotions and advertisements for our potential business should increase sales for other locations also. Even if a person decides not to order from us, there will be that much more advertisement for Papa John’s and Blockbuster for others in society to see.