Marketing project that depicts the marketing plan for Netflix

1. Marketing Plan
Shawn McNail
Keefe Janke
Matt Richter
Roman Zepeda
Nan Zhou

2. Netflix’s Background
• Founded in 1997
• Monthly subscription-based company that provides its members a
vast selection of movies and television series that they can watch
without any limits

3. Mission Statement
• “Our core strategy is to grow our streaming subscription business
domestically and globally. We are continuously improving the
customer experience, with a focus on expanding our streaming
content, enhancing our user interface and extending our
streaming service to even more Internet-connected devices, while
staying within the parameters of our consolidated net income and
operating segment contribution profit targets.“
• Simplified- “Our main strategy is to grow our business while
providing a user friendly service, with the goal to expand our
service to more mobile platforms and staying within our budget.”

4. Company goals & objectives
• Maintain our position in the video-streaming market
• Configure a demand system where customers can request media
selections that we currently do not hold
• Provide better streaming in mobile forms
• Replace television as primary source of visual entertainment
“The age of broadcast TV will probably lasts until 2030”
-Netflix CEO, Reed Hastings

5. Situation Analysis
Strengths
• Well known brand name with positive impressions.
• Easily accessible through many medias.
• Active in acquiring new content for their library.
• Affordable flat rate of $8.99 a month for all-you-can-watch
streaming service.
Weaknesses
• Many lawsuits have been derived from violating customer
privacy. Continuous violations of customer privacy can
damage the company in the long-run.
• Netflix’s inability to prevent pirating.
Opportunities
• Increase profit by expanding to foreign countries
• Live streaming of TV shows that are on during the time for
the people that have no access to a TV.
• Set up a demand system for customers to request a movie or
show that is currently unavailable
Threats
• Multichannel video programming distributors (MVPDs) still
dominate a majority of the American population with its
101 million subscribed households.
• Comcast and other ISPs could stop putting data onto
Netflix’s network and seriously decrease Netflix’s video
quality due to payment issues.
• Pirating: Researches show about 46% of American adults
and 70% of youths between 18-29 years of age illegally
pirate movies.
InternalExternal

6. Netflix’s Main Competitions
• Hulu(Plus)
• Amazon Prime Instant Video
• YouTube

7. Company
Netflix aim to be the top provider of video streaming content and
have quality material to be viewed. Our product and services are
made with the customer in mind.
 Convenience is a top priority
 Customers have a voice
 Providing customers affordability
 Easy exit option for customers

8. Customers
• Our primary survey revealed that many people who have Netflix,
which was about 59 people out of 65, tend to be well within the
ages of 18-24.
• Since our audience is mostly college aged, we will continue to
focus on college students by showing them what Netflix has to
offer.
• Although the platform varies for a lot of people as of what device
they prefer to use, but many of them use the computer/laptop
and the television to watch Netflix.

9. Market Segmentation
Netflix appeal to a very large and diverse market group, its
customers can be anyone from the ages of 18 to 59.
But Netflix’s target market segments are:
• College students
• Families
The main needs that Netflix suffice are time efficiency,
convenience, low affordable price, and variety.

10. Target Market
College Students
• Can find internet connection easily in dorms and anywhere on the college campus.
• Need a variety of entertainment that are flexible enough to fit into their busy
school schedule.
• Mainly looking entertainment for low prices that they can easily afford.
Families
• Family members of all ages can find suitable entertainment on Netflix.
• The whole family gets to relax and spend quality family time together without
having to give up any important details in their daily schedule to catch a movie
time.
• It is also extremely affordable for homemakers as multiple accounts can be made
under one Netflix subscription.

11. Positioning
In order for Netflix to stay as a leading brand, the company needs to
satisfy the needs of customers, which includes good affordability,
accessibility, and variety.

12. Opportunities
Product
• The product will be on the internet, available with your username and password in order to get into your
account to stream videos and movies.
• There is also the option to have DVDs and Blu-rays shipped directly to your home for rent with an extra fee
added to it.
Price
• The price will remain the same, $8.99 a month to stream two screen simultaneously, and $11.99 to stream four
screens at a time, but it is possible it could increase more to earn more profit.
• We also have the option to rent DVDs and Blu-rays starting at $7.99 a month for one DVD and ending at $43.99
for 8 DVDs at a time. The Blu-rays start at $9.99 for one Blu-ray at a time and ending at $26.99 for 4 Blu-rays
at a time.
Place
• We sell our product on the internet, available to purchase only with cash on the internet. It is on the netflix
website that you can use the service of streaming videos to your wireless network.
Promotion
• We advertise our service with commercials on television and also social media websites. We also automatically
give the first month free to every new customer that we get in order to lure in more people.

13. Implementation Plan
We will begin to implement our marketing plan on January 1st, 2015
as New Years Day is a time known for renewing your brand.
• We will monitor our success using sales data and compare next year's sales performance
to the previous years.
• We will also use data collections to determine if our customers utilized our new features
such as the demand system.
• Through our implementation plan, we plan to decrease customer turnover because we
addressed their concerns.
• We will use a biannual evaluation system to determine early on whether to continue with
our marketing plan or abandon it.

14. Promotional and Advertising Timeline
Because of our January 1st implementation date…
It will be in time for the Super Bowl where we will be able to
advertise during their commercial breaks to a potential audience of
around 111 million viewers.
From that point, we will execute continuous advertising and
promotion through traditional platforms such as social media,
commercials, billboards, etc.

15. Any Questions?