Background

The profitability in the DVD product line has decreased mainly due to:

Increase in royalties charged by the majors.

Some majors by-passing the publisher in the kiosk channel.

New competitors positioned on low prices at the kiosk.

Increase of above-the-line communication rates.

Valoris role

Definition and implementation of a new strategy for the DVD product line based on channel marketing:

Implementation of POP (point of promotion) materials in the best POS.

Implementation of a merchants service with a sale force automation solution (the merchants visit the best kiosks on a weekly basis).

Redefinition of the communication policy, positioning the static communication as a corner-stone of the strategy.

Results

Outstanding ROI has been proven.

Improvement of the bargaining power with the majors for product sourcing and copy-rights.

Improvement of the relationship with the channel.