Blockbuster Video can improve its marketing strategy by analyzing customer data to calculate customer lifetime value (CLV). CLV considers a customer's historic and future value to classify them into segments - invest, re-engineer, engage, eliminate. Corresponding marketing strategies target each segment. Additional analyses of customer transactions and demographics can identify profitable products and customers to personalize campaigns through phone, email. Market analysis considers supply and demand trends to segment the market and ensure Blockbuster targets the right segments.

1. BLOCKBUSTER VIDEO – A CASE STUDY

5. MARKETING STRATEGY (SEGMENT WISE) Table 2: Corresponding Segment Strategies

6. MARKETING STRATEGY – TRENDS Analysis Type Description/ Marketing Strategy Analysis from the data Campaign Analysis Design Campaigns for different segments of customers Segmentation based on Age from customer data Cross Selling Analysis / Market Basket Analysis Identify additional types of products that customers could purchase which they are currently not purchasing Frequency from transaction data of each item to create Baskets or DVD combos/ DVD + snacks combo at a lower combined price Customer profitability Determine profitability of each customer to target personal Marketing campaigns to high profitability customers like phone calls/ E-Mails Revenue from each customer based on the total Value of goods purchase or rentals Demographic analysis Demographic analysis to better understand the customer requirements From the customer data based on age ,Sex, Income group, Profession, Location Product Profitability Determine profitability of each product Revenue calculation from transaction data for different DVDs, games CD, Snacks or drinks House holding Identify customers from the same family to up sell or sell discounted products House holding is done based on the address from the customer data