Blockbuster Exposes Customers to CD-ROM

No small number of hardware and software marketers have jumped on the CD-ROM bandwagon, developing a flood of products for this latest hybrid of entertainment and education. Blockbuster Entertainment Corp., anxious to stay ahead of this emerging technology and position itself for a flood of CD products, was eager to feature the new products. But it also didn't want to alienate consumers who are unfamiliar or intimidated by the new format."We're trying to stimulate the interactive multimedia market," says Mike van der Kieft, director of business development for video renter/retailer Blockbuster, based in Fort Lauderdale, Fla. "We're trying to get [CD-ROM] out of the press and into the home. The problem is people at home are not using it and don't understand what it [is]. They wanted a demonstration. We were convinced if we were going into the [CD-ROM] business, we had to conveniently and effectively demonstrate the CD-ROM products."The resulting interactive CD-ROM environment, currently in test at 57 San Francisco area Blockbuster stores, demonstrates CD-ROM hardware from five manufacturers: Sega CD; Panasonic Real 3DO; Philips Magnavox CDi; Macintosh TV; and IBM PS/1. These five companies provided Blockbuster with the necessary CD-ROM equipment, each highlighted and displayed in its own kiosk.The cabinet of each kiosk lists the benefits of the CD-ROM hardware it features. The company's name is highlighted above the hardware on what van der Kieft describes as a magnetized plastic. This allows the vendor's name to be changed easily, if needed. Located just above the hardware but below the company's logo is a small display shelf, which allows Blockbuster to promote the software title currently being demonstrated.According to van der Kieft, 37 software suppliers are participating in the program, supplying a variety of titles for purchase or rental. Each kiosk is color coded to aid the consumer in matching his hardware selection with the appropriate software and/or hardware for either purchase or rental, which are located near the kiosk on color-coded shelving. "We wanted to provide the customer with the full opportunity to see the demonstration and to walk away with the hardware and software without chasing all around the store," he says. The packaging for the rental software is also color coded, making it easy for not only the consumer to match the appropriate software and hardware, but for store personnel, who have to reshelve the titles.In addition, personnel trained by the vendor companies are available in each participating Blockbuster location to teach consumers and answer questions. Approximately one to three trainers demonstrate the equipment from 2 p.m. to 10 p.m. A total of 155 demonstrators are available to support the stores, van der Kieft explains.For those times when demonstrators are not in the stores, each kiosk has a locking cabinet, which can house small items, such as a mouse or a software title, "so they don't walk off," van der Kieft explains."The important thing," says Karen Yokel, director of store planning and merchandising for Blockbuster, "was to design a flexible shelving system for the different formats and box sizes. That was the most difficult thing to overcome," she admits. In addition, each kiosk had to be of uniform structure and appearance, yet be able to handle a wide variety of hardware."We wanted to make it as friendly as possible, so it wouldn't look intimidating," Yokel adds. Warm colors with a high-tech look provided the atmosphere Blockbuster was seeking. For competitive reasons, Yokel wouldn't disclose materials of construction or dimensions.At the end of March, Blockbuster plans to sit down with the five vendor companies to review the mounds of data it has accumulated through seven-minute phone interviews, feedback from demonstrators and other sources. "We'll craft the program so it's more meaningful, then roll out on a national basis," van der Kieft says.Blockbuster is currently focusing on three software categories. Games, which are clearly the most popular, he says, include action titles from the likes of Sega and Nintendo, as well as strategy games such as chess. Children's education software is quite popular with parents, as are the reference titles. So far, Blockbuster has enjoyed a "huge response" to the interactive environments, and the kiosks have been packed, van der Kieft reports.

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