SlideShare ist ein Scribd-Unternehmen logo
1 von 31
Downloaden Sie, um offline zu lesen
Marketing Plan

100 Winchester Circle
Los Gatos
CA 95032
USA
Phone#:+1 (408) 540-3700
Website:www.netflix.com

Evelyne Ringia
Phone#: +1 205 223 0436
Email: eringia@kent.edu
Date: December 05,2013
Executive Summary
The 2014 Marketing plan for Netflix is designed to increase sales and brand awareness. Netflix offers DVD
rental by mail and instant steaming of movies and TV shows at affordance prices consistent with their
vision, “Our appeal and success are built on providing the most expansive selection of DVDs; an easy way
to choose movies; and fast, free delivery”.‖
Dominated by a rapid technological advancement which characterize the industry, the DVD rental portion
of business is slowly declining replaced by the instant Streaming refer to figure3 page 7. The changes in
the DVD portion of the business makes it even more important to have great marketing plan to
strengthen the brand name and profitability of the streaming portion of the business and this marketing
plan focuses on the Online streaming business for the same reason.

Netflix has customers are for Online streaming, DVD rentals and few who have both plans. There are
environmental factors affecting Netflix like economic, social cultural, technological, political and legal
factors. All these factors and many more either positively or adversely affect Netflix but the major five
factors are explained in detail in page 4 of this marketing plan. Apart from the external environmental
factors a SWOT analysis is done to further describe the company and the industry.
Netflix has two product lines each facing a different group of competitors. DVD rental by mail
competitors are Blockbuster and Red-box with market share of 16.9% and 45.5%
respectively while Netflix has 24.3%. Virtual rivals include Amazon, Hulu, Red-box Instant, X-finity StreamPix, I-Tunes, Love-Film, and cable TV companies. Their strengths and weaknesses are analyzed in detail in
page 8. Netflix still claim its top position due to strong Brand, high selection of content, affordability,
flexibility with internet speeds and various devices than can be used to stream from Netflix. Netflix had
over 40 million subscribers in the end of Q3, 2013 and according to their forecasts the subscriber number
may be 44.4 million by the end of the year which is a tremendous growth compare to all of its
competitors.
Netflix targets a mass market aiming at acquiring as many subscribers of all ages and preferences.
Segmentation is not done in this particular industry because the service offered is highly tailored to
individual needs using complex prediction algorithms and a recommender system, marketing efforts are
aimed at getting as many subscribers as possible. Another reason for not having specific segments is the
profitability aspect, since the price per person is low it will not be profitable going after a single segment.
Apart from that the customer base is extremely diverse to be able to achieve any meaningful
segmentation.
Netflix positions itself as a convenient, great choice of content and affordance entertainment option for
people who are interested in movies and TV shows. The perceptual maps have been prepared to
elaborate the positioning aspect refer to figure 4&5.
Marketing strategies have been designed with focus on 7Ps each with strategies to either improve or
promote what is already been offered by Netflix to raise brand awareness and increase Netflix market
share in Instant Streaming product line. Some other objectives of the plan is to increase media presence
and the use of promotional tools.
One year implementation plan has been prepared to show when the proposed activities will be done.
(Refer to table 4& figure 10) Evaluation methods and metrics have been discussed to enable the
marketing team know how successful all the plans have been and whether these marketing promotions
have attracted new subscribers or improve the brand awareness and value which are the main objectives
of the plan.
Conclusion is a summary of the plan and what the team hopes to achieve after implementation. The
message that Netflix plans to send out through all of its campaigns is “watch what you want, when you
want at affordable price”
Contents

1.1 Introduction ......................................................................................................1
1.1 Netflix background ..................................................................................................................... 1
1.3 Netflix Mission ........................................................................................................................... 2
1.4 Netflix Culture ............................................................................................................................ 2
1.5 Netflix management .................................................................................................................. 2
1.6 Netflix customers ....................................................................................................................... 2

2. Situation Analysis ................................................................................................3
2.1 Environmental factors................................................................................................................ 3
2.1.1 Economic factors........................................................................................................ 3
2.1.2 Social factors .............................................................................................................. 3
2.1.3 Technological factors ................................................................................................. 3
2.1.4 Political factors........................................................................................................... 4
2.1.5 Legal factors ............................................................................................................... 4
2.2 SWOT ......................................................................................................................................... 4
2.2.1 Strengths .................................................................................................................... 4
2.2.2 Weaknesses ............................................................................................................... 4
2.2.3 Opportunities ............................................................................................................. 5
2.2.4 Threats ....................................................................................................................... 5
2.3 Customer description................................................................................................................. 6
2.4 Competition ............................................................................................................................... 7
2.4.1 Comparisons with the 2 closest competitors ............................................................ 7
2.5 Segmentation ............................................................................................................................. 9
2.5.1 Why Not? ................................................................................................................... 9
2.6 Targeting .................................................................................................................................. 10
2.7 Positioning ............................................................................................................................... 10
2.5.4 Research needs ........................................................................................................ 12

3. Marketing Planning ...........................................................................................13
3.2 Strategic direction, targeting and positioning ......................................................................... 13
3.3 Marketing objectives ............................................................................................................... 13
3.3.1 Marketing................................................................................................................. 13
3.3.2 Media ....................................................................................................................... 13
3.3.3 Promotion & advertising .......................................................................................... 13
3.4 Marketing mix .......................................................................................................................... 14
3.4.1 Product offering strategies ...................................................................................... 14
3.4.2 Promotion, communication and influence .............................................................. 14
3.4.3 Price ......................................................................................................................... 18
3.4.4 People ...................................................................................................................... 18
3.4.5 Place & Process, ....................................................................................................... 18
3.4.6 Distribution .............................................................................................................. 18
3.4.7 Physical evidence ..................................................................................................... 18
4.

Implementation and Control.......................................................................19
4.1
Strategy implementation details ...................................................................................... 19
4.2 Time lines ................................................................................................................................. 21
4.3 Evaluation ................................................................................................................................ 22
4.3.1 Internet adverts ....................................................................................................... 22
4.3.2 Event sponsorships .................................................................................................. 22
4.3.3 TV advertisements ................................................................................................... 22
4.3.4 QR codes .................................................................................................................. 22
4.4 Closing summary ...................................................................................................................... 23

5.

References ..................................................................................................24

List of Figures
Figure 1 Rapid Subscriber growth table ..........................................................................................................1
Figure 2 Consumer spending and time spent on leisure and sports ..............................................................3
Figure 3Netflix subscriber trend 2012/2013 ...................................................................................................7
Figure 4 Perceptual Map (selection/personalization) ..................................................................................10
Figure 5 Perceptual map (convenience/economy) .......................................................................................11
Figure 6 Adult gadget ownership in America................................................................................................15
Figure 7 Sales forecast resulting from online banner Adverts .....................................................................16
Figure 8 Media comparisons study 2012 ......................................................................................................16
Figure 9 Example of QR codes ......................................................................................................................17
Figure 10 Implementation time line ............................................................................................................21
List of Tables
Table 1 Worldwide Broadband subscriptions .................................................................................................5
Table 2 Netflix Competitors analysis...............................................................................................................9
Table 3 Values used to construct the perceptual map .................................................................................12
Table 4 Implementation blue print ...............................................................................................................19
Netflix marketing plan
1.1 Introduction
1.1 Netflix background
Netflix, Inc. is an American provider of on demand Internet streaming media available to North and South
America, the Caribbean, United Kingdom, Ireland, Sweden, Denmark, Norway, Finland, the Netherlands,
etc. and flat rate DVD-by-mail in the United States, where mailed DVDs are sent via permit reply mail.
Online streaming service and DVD delivery service are the two main two main product lines for Netflix.
Netflix core product is a service .This marketing plan will focus on online streaming service.
1.2 Netflix history
Netflix was incorporated in Delaware in August 1997 and started its subscription-based digital
distribution service in 1999. It made its initial public offering on May 22, 2002 on NASDAQ under the
ticker NFLX. Netflix introduced instant streaming in 2007, by 2009 Netflix was offering a collection of
100,000 titles on DVD and had 12.3 million subscribers. In September 2010, they began international
operations by offering streaming service in Canada, and now offers streaming service in Latin America,
the United Kingdom, Ireland, and the Nordic countries of Finland, Denmark, Sweden, Norway and others.
Beginning the fourth quarter of 2011, Netflix had three operating segments: Domestic streaming,
International streaming and Domestic DVD. The Domestic and International streaming segments derive
revenues from monthly subscription services consisting solely of streaming content. The Domestic DVD
segment derives revenues from monthly subscription services consisting solely of DVD-by-mail. By end of
2012 the total revenue for Netflix reached at $3.6 billion a 12.6% compared to 2011 results and it is
estimated that Netflix will hit the revenue of $4.4 billion end of 2013. Netflix announced having over 40
million subscriber in its shareholder letter of October 21, 2013. 31.09 million being domestic streaming,
9.19 million and 7.15 being international streaming and DVD delivery subscriptions respectively. Netflix
has been growing both financially and with ever increasing the subscriber base from the start with a
brief stumble in second half of 2011 when it separated the DVD service to Quickster and increased prices
for the subscription by 60% of which it bounced back and regained its stock value and lost subscriptions.

Rapid subcriber Growth
45

Rapid subcriber
Growth, 41.49

40

Subscribers Millions

35
30
25
20
15
10
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Figure 1 Rapid Subscriber growth table
Source Netflix

1
1.3 Netflix Mission
Netflix mission states “our appeal and success are built on providing the most expansive selection of
DVDs; an easy way to choose movies; and fast, free delivery” (Topix.com)

1.4 Netflix Culture
Netflix culture is that of freedom and responsibility as elaborated in CEO Reed Hastings’ presentation on
Netflix’ “Freedom and Responsibility” culture. They have nine specific values, which includes Judgment,
Communication, Impact, Curiosity, Innovation, Courage, Passion, Honesty, and Selflessness. Employees
help each other to be great.
1.5 Netflix management
Founder and CEO Reed Hastings has created a unique management style that is most notably similar to
that of George Clooney’s Danny Ocean role; that is, “a leader who hires the best, and gets out of the
way” (Wells). Netflix thus has a laid-back structure that allows employees to make their own decisions,
but greatly encourages that smart decisions are made. Some of the perks include allowing employees to
structure their own compensation packages, no clothing policies, and having a—hypothetical—unlimited
amount of vacation days. Hastings understood that valuable employees are happy employees. However
much of the importance of this style of management is in its beginning: hiring top-notch colleagues. And
finally, regarding expensing, entertainment, gifts and travel, simply “act in Netflix’s best interest”
(Siegler). By creating an ideal workspace to provide a highly productive environment, excellence in work
quality is expected, and crucial. In the case that employees do not live up to this high standard, Netflix
provides large severance packages for quick termination (Kaltschnee, 2007). Some of Netflix Divisions are
content division, streaming and partnership division, product division, Finance division, Counsel Division,
Talent division, marketing and communication divisions. Names of division heads are in Table 5.
1.6 Netflix customers
Netflix customers are divided into two sections: traditional DVD delivery and online streaming customers.
Traditional consumers are particular and selective; they have a specific title or genre they are looking for,
(often making up niche market consumers), and they desire a rich viewing experience, which currently
makes them more likely to consume hardcopy media. They are willing to wait a few days to acquire their
title, as long as it meets their expectations. These also have a low propensity to substitute, because they
are committed to video entertainment, and possibly a higher propensity to purchase video, more likely to
be older, and because they view and access rentals through more traditional channels, they invest more
time and energy in their choices. This customers opt for Netflix mail-delivery services as well as more
differentiated online subscription plans.
Online streaming consumers are not as selective as their counterparts. They watch videos when they can.
They value easy and immediate access, portability and transferability of the product, and are more than
willing to watch video on their computers or other devices like I pads, computer tablets and even smart
phones. This consumer has a higher propensity to substitute than the DVD rental customer. They are also
typically younger, and more Internet-savvy. These customers often opt for affordable monthly online
subscription plans. To access Netflix’s services customers incur monetary costs for rental fees and
subscription fees. Apart from the cost that is directly related to Netflix services, customers have to purchase
devices in which they can use to access Netflix services like computers, television sets, modems and
Internet packages.
2
2. Situation Analysis
Netflix core products are service for moves online streaming and DVD rentals. This marketing plan is going
to focus on the online streaming product line.
2.1 Environmental factors
Netflix has environmental factors affecting it like economic, social cultural, technological, political and legal
factors. All these factors and many more either positively or adversely affect Netflix but the major five
factors explained below have the greatest impact.
2.1.1 Economic factors
This industry is affected by changes in consumer spending, which can be influenced by changes in
the rate of employment growth, interest rates and tax rates. When spending rises, consumers will be
more likely to buy subscriptions. Consumer spending is expected to increase slowly during 2013 and
presents a potential opportunity for the industry.
2.1.2 Social factors
People with increased leisure time availability are more likely to watch movies and TV shows and video
games from companies in this industry. As unemployment gradually falls during the next five years,
people will be more likely to opt for less time-consuming rental options like streaming. Time spent on
leisure and sports is expected to decrease slowly during 2013.

Figure 2 Consumer spending and time spent on leisure and sports
2.1.3 Technological factors
As the internet served more functions and became more popular, video streaming services, such as
Netflix, rose in popularity. Consumers will continue to look to the internet for services previously
conducted with physical media. Therefore, the increased adoption of the internet will be an opportunity
to the industry. The percentage of services online is expected to increase in 2013. Increased use of
smartphones, tablets and computers has also worked in favor of this online video streaming industry.

3
2.1.4 Political factors
Network neutrality is the principle that Internet service providers and governments should treat all data
on the Internet equally, not discriminating or charging differentially by user, content, site, platform,
application, type of attached equipment, and modes of communication. The possibility of regulations
designed to mandate the neutrality of the Internet has been subject to fierce debate, especially in the
United States. If the network neutrality bill will be rejected then Netflix and the like companies will face a
major threat because their existence depends on the internet and if the cost of using Netflix will become
too high as a result of lack of network neutrality then Netflix will be adversely affected. Apart from
network neutrality there many other laws which are not in favor of the industry like the Video Privacy
Protection Act (VPPA) which Netflix had to actively lobby for its amendment to allow them have the
social media sharing features. Other political factors include FCC restrictions on vertical integration and
content monopolies, funding problems for US postal service, increased state taxation for online
businesses and congress’s historical receptiveness for Hollywood lobbying. Netflix has its political action
committee.
2.1.5 Legal factors
Due to extensive use of licenses for contents and contracts with content providers also customer privacy
issues there is a potential for a lot of legal actions against companies in this industry.
2.2 SWOT
2.2.1 Strengths
• Netflix has the First Mover Advantage into the movies and TV shows instant streaming which gives
its brand higher recognition compare to other competitors.
• Netflix brand has Strong Brand Recognition and winning Emmy awards with its House of cards
show, Emmys best the Personalized Recommendation Engines for Video Discovery award and
many others making it the strongest brand in the industry.
• With the personalized recommendation system and a large selection of content Netflix has
managed to get high Customer Satisfaction
• Netflix has the largest Streaming library compare to other competitors like amazon and Hulu.
• Netflix has the ability to adopt to various platforms like TVs, game consoles, smart
phones, tables and computers as well as flexibility to different internet speeds which other
competitors like Amazon do not have
• Production of original content has increased Netflix brand equity, customer loyalty and revenues
for example House of cards and orange is the new black.
• A huge database of customer data and a good system for analyzing the data enabling them to
have more accurate predictions and recommender systems.
2.2.2 Weaknesses
• Netflix has a big window of time from when the movie is launched to when it is adopted by Netflix
library. Customers have to wait for 28 days to have access of new content releases
unlike Hulu who can provide them earlier
• Contractual restrictions on streaming content. Netflix is bound by the contracts with the content
providers restricting its flexibility on expansion of the market and the content.
• Expired contracts with Sony & Stars, resulting in lost videos about 1800 titles setting back the
efforts to expand the video library. Also losing a video provider EPIX to Amazon who is a competitor
was a setback for Netflix.
• Damaged reputation after attempting to increase fees and separate DVD & streaming video
4
•

memberships.
Financing large aggressive international expansion may affect its liquidity (Reed Hastings in Q3
interview with BTIG and JP Morgan)

2.2.3 Opportunities
• Product Line Expansion of original shows may have a favorable effect to Netflix subscriber base,
profits and brand equity
• More expansion in International market. According to table below there is a rapid growth of the
number of broadband subscription every year and this is a tremendous opportunity for Netflix to
introduce video streaming in those markets.
Worldwide broadband subscriptions
2007a

2010a

2013a,b

World population

6.6 billion

6.9 billion

7.1 billion

Fixed broadband

5.2%

7.6%

9.8%

Developing world

2.3%

4.2%

6.1%

Developed world

18.0%

23.6%

27.2%

Mobile broadband

4.0%

11.3%

29.5%

Developing world

0.8%

4.4%

19.8%

Developed world

18.5%

42.9%

74.8%

Per 100 inhabitants. Estimate.
Source: International Telecommunications Union.

Table 1 Worldwide Broadband subscriptions
•

Other potential areas in Internet streaming services where Netflix has opportunity for growth are
the live sports, and online games that Netflix do not currently provide.

2.2.4 Threats
• Exclusivity agreements with content providers may effect availability of movies for streaming
• More competition from big name companies (Apple, Microsoft, Amazon) and global competition
from companies operating locally overseas. The Competitors offering streaming video are also
bidding for exclusive rights to content example: Amazon, HBO, TV networks which makes gives the
content providers higher negotiation power which results to Higher licensing costs. The former
Netflix content provider, EPIX currently provides Disney videos to Amazon; Disney recently acquired
Lucas film & entire Star Wars franchise that makes Amazon a stronger competitor than before.
• Limits on Bandwidth usage from internet providers if the Congress will not pass regulations to
honor network neutrality. This will make Netflix services more expensive that the customers are
willing to pay and therefore affect Netflix business.
• Price adjustments to cover new expenses can result to consumer outrage like it happened in 2011
• Competitor partnerships. There is a threat of Netflix competitors forming partnerships which will
5
•
•

•
•

make competition more hard to overcome for example (ex: Amazon & Epix)
Movie & TV industry less willing to make exclusive deals with online video services.
Netflix receive web services from Amazon who is also a competitor which draws attention to
conflicts of interest issues and Netflix faces a risk of Internet disruptions. However Netflix have
developed a software tool called Isthmus, which manages Elastic Load Balancing services to curb
Amazon services outages early this year.
Motion Pictures Association of America (Industry regulator) poses a risk if changes will
be made affecting Netflix adversely.
Increasing in cost for content licenses and increase in cyber-crimes are some of the other
stumbling blocks for Netflix

2.3 Customer description
Netflix serve a business to customer market. The potential market includes people of ages from 5 (kids), 18
to approximately 59 years and beyond and they are located in the US and other 41 countries where Netflix
currently operates. They have two major product categories which are DVD by mail subscription and online
streaming subscriptions. The focus is online streaming.
Netflix customers are highly diverse in their watching preferences, ages, income, technological
advancement and in many other aspects with the only common factor uniting them being access to
internet and interest in video content. Most are accustomed to free/ad based content and the black
market. With these options available, prices are driven down as consumers have high bargaining power
To be able to understand and serve this kind of extremely diverse customer base Netflix collect and retain
the following information about their subscribers in order to understand individual preferences and be able
to serve every one of their customers individually. The information is collected from the website by keeping
track of subscribers interaction with them; Email addresses, names, age, credit card information and other
basic information, title selections, reviews, ratings, payment history, correspondence, internet service
providers, Internet protocol addresses, devices and software data (such as type, configuration and unique
identifiers), instant-watching hours/movies, TV shows and related activities.
They also collect information from other sources; including offline data and subscribers’ browsing behavior
on other sites and interactions with Netflix’s advertising, movie & TV show ratings, consumption habits,
commentary and reviews.
Subscribers may Choose to connect one or more social networks (such as Facebook) with them Netflix
account. If they do, Netflix will import, use, and retain information from their social networking account(s)
such as names and profile pictures as well as their e-mail address, list of friends, subscriber’s Likes and
Interests as well as information they make public on social networks
From analysis of collected information it is clear that Netflix online streaming customer’s primary needs are
affordable, convenient, fast and individualized entertainment. Netflix has kept on delivering and
responding to these needs which results to a rapid growth of its customer subscription base. Figure 3 shows
customer subscription trend for 2012&2013

6
Netflix subcribers trend in millions
35

25

23.41

23.94

25.1

10.09

9.24

8.61

3.07

3.62

4.31

Q1/'12

Q2/'12

Q3/'12

33.1

29.17

29.81

31.09

8.22
6.12

7.98
7.14

9.19
7.15

10.5

7.75
7.51

Q4/'12

Q1/'13

Q2/'13

Q3/'13

Q4/'13
(forecast)

30
27.15

20
15
10
5
0

US streaming

DVD rental

International streaming

Figure 3Netflix subscriber trend 2012/2013
2.4 Competition
Netflix’s two product lines video streaming and the DVD by mail, each face a different group of
competitors. DVD by mail competitors are Blockbuster and Red-box with market share of 16.9% and
45.5% respectively while Netflix has 24.3%. Virtual rivals include Amazon, Hulu, Red-box Instant, X-finity
Stream-Pix, I-Tunes, Love-Film, and cable TV companies. According to NPD Group, in the first quarter of
2013, 67% of U.S. streaming customers subscribed only to Netflix a significant drop from the 76% posted
in the first quarter of 2012. Hulu Plus scored 10% of total subscribers among those who used only one
service, while Prime made up just 2% of such single-source users. In the same NPD Group study, 10% of
viewers used Netflix and Prime both for streaming movies and television shows. 8% used Netflix and Hulu
Plus. Other indirect competitors are providers of home entertainment like cable television, satellite
services, other unofficial websites with movies, you tube etc.
2.4.1 Comparisons with the 2 closest competitors
Price per month

Netflix
30 day free trial
membership
3 types of plans, unlimited
DVD only $7.99, unlimited
streaming only $7.99 and
2 DvD at a time $11.99

Content selection

Most extensive selection
with thousands of tittles.
Has licensing deals with
CBS, ABC, Fox, NBC, Stars,
BBC, Starts, BBC, Sony and
DreamWorks contributing

Amazon
30 day trial period

Hulu
1 week trial membership

$6.67 with two day free
shipping for purchases
made in Amazon

$7.99 and there is a free
Version with limited
selection and fewer
episodes of shows.

Selection not as big as
Netflix and shows movies
released within the past
year similar to Netflix.

Own licensing deals to
provide content from Fox,
NBC, Disney, MTV and a
bevy of cable channels.
Updates library more
frequently than its

7
to the library.

competitors.
Customers get latest
episodes faster and it’s a
great alternative to cable.

Devices

Speed

Features

Is compatible with most
devices like PC,x box 360,
PS3, Nintendo, Wii, smart
TV, Roku, Android, Blue
ray player, Nook, tablets
and iOS devices
Netflix is more adaptive of
the internet speeds and
can work from slow
internet and also fast
connection as well
Adverts free platform

Not compatible with
gaming devices.

Lacks compatibility with
Smart TVs and blue ray
player

Moderately adaptive of
the internet speeds

Moderately adaptive of
internet speeds

Adverts free watching
experience

Limited commercials in
movies

Ability to rate movies and
receive personalized
recommendation

Plays newer movies and
shows compare to
competitors

Ability to share with
friends in social media

Market shares
Strengths

Weaknesses

Personalized profiles to
enable parental controls
for children and the whole
family can share the
subscription.
Account for 89% of TV
streams
Largest library selection,
strong brand, good and
accurate recommender
system, biggest number of
subscribers, original
production of shows,
offers Netflix for kids,
social media integration

The selection is not as
current as Hulu

Account for 2% of TV
streams
Have a strong brand but
associate with its other
businesses apart from
streaming , cheapest for
people who prefer whole
year commitments, high
financial capability, unlike
Netflix video streaming is
only a small part of the
business portfolio for
Amazon
Subscriber is forced to
commit the whole year.
Some selected tittles are
paid per stream basis the

Account for 10% of TV
streams
Latest movie selection, A
good substitute for cable,

Commercials appear while
subscribers watch, the
selection is limited unlike
Netflix,

8
subscription is not
unlimited like Netflix and
Hulu, prime subscribers
use the free shipping
service more than they use
the video streaming (A
Bernstein Research survey
in July found that 29% of
Prime subs don’t use the
video option.)

Table 2 Netflix Competitors analysis
Netflix has begun investing in original programming, a tactic that stole the focus from content licensing in
the subscription VOD category this year. Netflix successfully introduced multiple series, including “House
of Cards” and “Orange Is the New Black,” while Amazon ordered a string of series in the comedy and kids
genres.
But all that activity has obscured the fact that competition over licensing has intensified during the same
period, as both Amazon and Netflix seem to have moved away from an earlier emphasis on building the
most comprehensive libraries to focus on snaring exclusive contracts that help them stand out in the
marketplace
2.5 Segmentation
Netflix market is very dynamic and constantly changing in response to changes in technology and
consumer behavior. Netflix had 36.7 million subscribers as of June 2013 with age range from 18 years
of age to 59. They spend 2bilion hours watching streamed video on hi-speed internet.
There are multiple ways of segmenting the market in the video streaming industry but due to highly
diverse nature of the customers who varies in age, income, geographic areas, education levels, and
watching preferences vary with time, mood, beliefs, company etc. none of the segmentation will be
totally Homogeneous within, Heterogeneous across, Measurable, Substantial, Accessible, Differentiable,
Actionable and most of all Profitable.
2.5.1 Why Not?
First a person may have extremely different preferences influenced by a number of reasons like
company, mood, time, curiosity, new movies premier, awards like Emmy awards tends to influence
peoples preference at particular times, what a customer sees as trendy on social media at the same time
these preferences are not pinned to a particular kind of people so it will be impractical to obtain a
homogeneous group within, heterogeneous across or even measurable.
Second people change these preferences in split of seconds and that will make it very hard to make the
segmentation accessible, differentiable, actionable and substantial enough to make profits because
Netflix depends on the large number of subscribers to break even, much more to make profits and
focusing on a particular segment will not make this achievable.

9
2.6 Targeting
Netflix target a mass market of consumer-paid streaming subscription of TV shows and movies aiming to
have the biggest market share with the largest number of subscribers it can get regardless of age,
backgrounds, beliefs, preferences etc. Although Netflix target to recruit mass market it focuses on
individual subscribers needs in order to retain them for a long time. The higher the number of paying
subscribers the more Netflix can achieve return on heavy investment in content and technology because
only low prices can be charged due to the nature of the industry and service.
2.7 Positioning
Customer’s top priority is convenience, affordability, speed, personalization of the video streaming and
high selection of titles. Netflix aim at being the top and only choice for its customers by providing a more
personalized, fast, convenient, high selection and yet affordable online streaming service than all of the
competitors.

Figure 4 Perceptual Map (selection/personalization)

10
Figure 5 Perceptual map (convenience/economy)
Perceptual Maps key
N=Netflix, H= Hulu, R=Red-box Instant, A=Amazon, C=Comcast (Xfinity Streampix)

11
Values used to construct the perceptual maps
Company

Selection

Personalization(a
good recommender
system)

Convenience (speed,
number of devices,
how adaptive to
internet speed)

Affordability
per month

1

Netflix

Over 60000

Highly convenient

$7.99

2

Hulu

Between
30000&40000

Not very flexible to
internet speed

$7.99

3

Redbox

About 4600

Excellent
recommender
system it uses both
internal data and
external data from
social networks
Great it uses
internal generated
data
Redbox instant do
not have a reliable
recommender
system compare to
Netflix and Hulu

Don’t play on as
many devices as
Netflix

$6.00

4

Amazon

About 40000

Comcast

1 Fifth of Netflix
collection

Do not play in apple
TV and gaming
devices
Ties the service to
the Comcast cable
so not very
convenient

$6.67

5

Lacks a reliable
recommender
system.
Do not have any
recommender
system

$4.99

Table 3 Values used to construct the perceptual map
2.5.4 Research needs
Additional research results needed to fully characterize the market will be the supplier information because
there are many Netflix content suppliers and the information Netflix content license purchases.

12
3. Marketing Planning
3.1 Market size and growth potential
Netflix market has had a consistent growth trend over the years. It started operations in 1999 with
101000 subscribers to more than 40.28 million streaming subscribers ending Q3 this year and 7.51 million
physical DVD mail subscribers as of June 2013 (Yahoo: By numbers: Netflix subscribers) According to US
census bureau as of June 30 2012 North America had a total of 273million people with internet access
who can be Netflix’s potential subscribers. Netflix target the mass market both in United States and
internationally and there is a promising future for growth for Netflix.
3.2 Strategic direction, targeting and positioning
Netflix streaming service is positioned as the personalized low price instant movies and TV shows
entertainment with the biggest collection targeting the mass market. Comparing to other competitors
Netflix offers the watching experience without disruptions from other adverts compare to Hulu, It has the
largest selection compare to all close competitors and customers can watch from a bigger variety of devices
and internet connection speeds which puts it on top list when it comes to convenience.
Every customer is served individually using a sophisticated analysis of big data and accurate recommender
systems so that the service can be as personalized as possible while aiming at attracting as many
subscribers as possible from all walks of life.
3.3 Marketing objectives
3.3.1 Marketing
1. Increase the brand awareness and goodwill especially in new international markets.
2. Highlight the competitive price and variety of content and the social media integration that Netflix
offers compared to their competition by including these details in every message.
3. Increase number of subscription from 40 million people to 70 million
4. Improving the Instant streaming service in various aspects (discussed under product offering)
3.3.2 Media
5. Increase our share of voice by 40 percent by the end of the campaigns first year.
6. Increase the frequency rate of all current advertising messages by 50 percent and extend our reach by
10 percent.
3.3.3 Promotion & advertising
7. Reach 95 percent of the target audience at least twice with messages detailing Netflix‘s instant
streaming.
8. Use mobile ads to increase awareness of Netflix‘s instant streaming service on particular mobile
devices.

13
3.4 Marketing mix
3.4.1 Product offering strategies
Netflix could have more recent movies in their collection in order to attract customers who only want to
watch new movies online and could also get move recent TV shows for the customers who want current TV
shows. Apart from that Netflix do not currently have online games and does not currently carry in their
libraries.
Sports instant streaming which have a great potential market since none of the close competitors provide
this kind of service, between 21.6% and 22.4% of all Fans in Major North American Sports Leagues spend
between 1 and 4 hours a week on internet search for the sports news and clips (sports business
daily.com)
Netflix has to keep expanding the collection it already has by bidding for more popular TV titles. Increase
exclusive content from in house production. Collaborate with well-known actors to create more original
series and release the seasons in less than 12 months that Netflix currently does.
Netflix can do more to accommodate different internet speeds so that these customers can watch from
anywhere they have an internet connection and can work with internet service providers so that customers
may have special internet packages enable them watch their movies more comfortably with affordable
internet service.
Netflix should make it possible to pay using other medium for payments apart from credit cards like mobile
money, cheques, western union any many other forms of payment to allow customers from countries
where credit cards are not popular have access to Netflix too.
3.4.2 Promotion, communication and influence
Netflix offers a free month trial for all of the new subscribers aiming at showing the high value of service
before the subscriber commit to Netflix. The objective is to attract more loyal subscribers because people
join Netflix with confidence of what they are purchasing which increase trust and loyalty among
subscribers. This promotion sends a message that Netflix is confidence of the value it has to offer and does
not hesitate to let people have the Netflix experience before they decide to buy subscriptions.

14
Communication
The main vehicles that will be used are the internet, Television commercials and Billboards.
a. Advertising through mobile phones & tablets messages
As of May 2013, 91% of American adults had a cell phone, 56% a smartphone, and 34% had a tablet
computer. As of January 2013, 26% of American adults owned an e-book reader. The figure below shows

gadget ownerships in United States. Ads will include notifications that the current free trial offer will run
through the campaigns first year and all other Netflix new features.
Adult gardet ownership overtime
% of American adults 18+ who own each device

100%
90%
80%

85%

82%

64%

62%

65%

52%
56%

47%

50%
37%

40%
30%

45%
41%

61%

42% 43%

42%

34%
19% 19%

20%

2%

3% 5%
4%

8%

Desktop
computer
Laptop computer

58%
55%

25%

10%
0%

Cell phone
57% 57%

60%

20%

83% 84%

73% 75%

70% 68%

30%

91%

88% 88% 89%
87%
85% 85% 87%

10%
9%

18%

29% 31%

mp3 player
34%

26%

Game console
e-Book reader

24%

18%

Time

Figure 6 Adult gadget ownership in America
Source: Pew internet surveys 2006-2013
b. Social media and internet advertising
Social media is extremely important for Netflix because the service is located on the internet the same
place where the social media is. Netflix provides opportunities for its customers to share and interact
with their friends in various social media while they are on Netflix account. Netflix also collect the social
media information to better serve the customers and know how the customers perceive them.
90.1 percent of the U.S. actively use the internet. That is a huge coverage rate. The biggest advantage to
internet advertising for Netflix is one click on an ad and the potential consumer is taken right to the
product. Internet users have come to accept and even expect banner ads. The figure below shows
forecasts and estimated of sales as outcomes of banner and search Ads in US.

15
Fan chart forecast of U.S. search and banner ad sales, 2007-17

Figure 7 Sales forecast resulting from online banner Adverts
Source: Mintel/IAB/PwC
c. TV commercials
Based on the America‘s commercial broadcast television industry‘s (referred to as TVB) media
comparisons study 2012, Television reached more people than the internet (88.3% > 73.1%). However,
considering that the location of the product is on the internet, we want to focus a good part of the
advertising to internet ads as well. Television will have more money budgeted to it, due to the production
costs
88.3

Television
73.1

Internet
58.8

Radio
36.1

Newspaper

27.8

Mobile Phone

24.8

Magazines
Tablet

11.7

% Reached Yesterday
Persons 18+

Figure 8 Media comparisons study 2012
Source: TVB media comparisons study 2012

16
d. Additional promotional tools.
QR codes
QR codes are becoming popular as smart phones become more standard. Netflix may agree with a candy
company to put Netflix QR codes on their movie size candy. They can also arrange for the QR codes to be
put on pop-con packages that are used in movie theatres even those sold in stores. The QR codes will
lead customers to Netflix.com and YouTube clips of commercials. Netflix can also run a follow up
campaign for Netflix users to submit their own video of them using or advertising the Netflix. If their
video passes YouTube regulations, those videos can be put on YouTube with a QR code attached the
customers may be rewarded with discounted subscriptions for a month or two. This creates consumer
excitement and involvement.

Example of QR codes. These are machine-readable codes consisting
of an array of black and white squares, typically used for storing
URLs or other information for reading by the camera on a
smartphone

Figure 9 Example of QR codes
Sponsor Movie related events
Some of the major Film related events are Sundance Film festivals in US which is held in late January
every year in different big cities in US. International Film festivals in Rotterdam Rotterdam Film Festival is
one of the most important film festivals in the world focusing predominantly on world and international
premieres with a large art-house and experimental focus. Other film festivals are Slamdance, Raindance,
Rendez Vous in France, Gotterburg international for Scandinavia.
Other events that Netflix can sponsor are movies and entertainment awards like Emmys, BET etc.
Netflix will gain more awareness in the market and get to advertise to the customers who have actual
interest in movies.
Use of Netflix data for Advertising and service improvement
Netflix use subscribers e-mail address to send newsletters, messages about new Netflix features, Netflix
special offers, promotional announcements, consumer surveys and other correspondence and marketing
concerning their services. The information about online activity, watching preferences, internet speed
and user devices can be used to determine subscribers general geographic location for the provision of
localized content, enforcing Netflix terms (such as determining eligibility for free trials, age restrictions),
providing recommendations on movies & TV shows, personalizing services and marketing to better
reflect particular interests, helping Netflix quickly and efficiently respond to inquiries and requests and
otherwise analyzing, enhancing, administering or promoting service offering. Netflix also uses the
information to provide analysis of their users in the aggregate or in anonymous form to prospective
partners, advertisers and other third parties. Information from Social Networking sites is
17
used to better improve the Netflix personalized experience for the subscribers and their friends if they
agree to share such information.
The consistent message Netflix sends with all communication is “watch what you want when you want at
affordable price”
3.4.3 Price
Netflix pricing objective is gaining the maximum market share for Netflix which translates to customer
attraction and retention. Their pricing is also set to match the competitors where they charge
$7.99/month for unlimited streaming, the same price as Hulu while Amazon prime $6.50/month but the
customer incurs extra cost for some individual titles. There have not been a lot of price changes with the
online streaming industry and all the major players keeps the price at the similar margin which means if
any one of the competitors will change the price Netflix is likely to react if not changing the price will
result to lost subscriptions. Netflix changed its prices and separated the two products lines of streaming
and DVD rental by 60% increase in price for customers who wanted both services. Netflix has ever since
maintained its price at the industry average. Netflix does not practice price differentiation because it
targets the mass market
3.4.4 People
Netflix should have highly qualified and fast customer service people to take care of the customers because
that is the only point of contact with the customers. Netflix respond within 5 minutes of a call to all
customers and this could be improved further to 3 minutes.
3.4.5 Place & Process,
Process in which customers go through to subscribe is made simple and self-service. It takes a few minutes
to create the Netflix account and to start watching instantly and it all reflects the convenience aspect of the
service.
3.4.6 Distribution
Netflix accommodate different internet speeds so that the customers can watch from anywhere they have
an internet connection and in order for them to do this Netflix is strategically establishing relationships
with ISPs because there is a threat that the government may not honor the internet neutrality law which
will allow ISP to charge customers differently with different content which will hurt Netflix business.
Netflix can also partner with companies to develop Netflix programs specific to their platforms that will
come pre-installed on all their devices, further partnership can be done with cable and gaming companies
to develop instant streaming option for video games. Content providers also should be approached for
exclusive rights to content before the competitors do the same.
3.4.7 Physical evidence
Online movies and TV shows streaming primary physical evidence is the Netflix website where people log in
to watch their movies and Netflix apps which enable people who use phones to access Netflix get that
experience, the website should be improved constantly and more user friendly so that subscribers can
search for content more easier and prevent any possible downtime.

18
4. Implementation and Control
4.1 Strategy implementation details
Table 4 Implementation blue print
marketing
Marketing
Content
mix
(Kelly Bennet) (Sarandos Ted)

Product
offering

Reducing the
window from the
time movies are
released to the
time they are
adopted by
Netflix Library
from 1 year to six
month.
Expanding the
video library to
70000 tittles

Promotion

One month
free trial.

Talent
(Tawni
Cranz)

Communica
tion
(Jonathan
Friedland)

Product
(Neil Hunt)

Introducing
video game
streaming
and sports
instants
streaming,

Streaming
and
Partnerships
(Greg Peters)
Improve the
movie
streaming
speed.
QR codes
Sponsor
Movie
related
events

Finance
( David
Wells)

Objective
fulfilled

Introducing
new
payment
methods
especially
for
internationa
l market.

1,3,4,

1,3,5,6,7,8

Advertising
through
mobile
phones &
tablets
messages.
Social media
19
and internet
advertising.
TV
commercials

People

Price

Train
customer
service to
achieve a 3
minute
return call
per
customer.

4

Communica
te the price
stability and
the one
month free

Have good
price plan
which do
not change
suddenly

Distribution

Place

Strategic
partnership
with ISP to
ensure
smooth
distribution
Website
improvemen
ts

2

3,4

4

20
4.2 Time lines

Implementation time table year 2014
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Get recent movies and expand library, be more adaptive of internet speeds for customers, continue the free month trial membership, banner
advertising
(partnerships ISP, content providers, gaming companies), Adding features to the website and Netflix apps
Start a sports section within the library
Add new payment methods for international customers
text Adverts through gadgets like smartphones and tablets once every two months
awareness TV commercials
new features sports& payment forms TV commercials
QR codes
Sundance festival, and other
European festivals

Emmy
awards

Customer service improvements
Figure 10 Implementation time line

21
4.3 Evaluation
Evaluation is important for us to determine which promotion or advertisement have had bigger impact
for our sales and brand awareness which are the top priority. A pre and post evaluation will be conducted
for each of them to measure the effects and determine whether the campaigns were successful and to
what extent they were successful. We will select small representative samples groups and test consumer
perceptions for the campaigns aiming at improving brand awareness and image, and for the campaigns
aimed at improving sales new sales will be allocated to particular campaigns.
4.3.1 Internet adverts
A click counter will be used to assess which sites are being visited most the Internet banner adverts.
General site counter that will let us know the amount of traffic the site is receiving on daily basis and how
many of the clicks resulted to membership subscriptions. A Focus group will be used to assess the
consumer’s perceptions on the Netflix adverts they see from the internet.
4.3.2 Event sponsorships
During the event sponsorships there will be promotional codes distributed to interested people while
different adverts play on sponsor screens emphasis being the free month trial. These codes will be used
to give the new customers discounted prices for the second month after joining and the count will be
done on the codes which were used to subscribe and these will be a good indicator of the effectiveness
of the method. Since the sponsorships are also aimed at improving brand images Netflix will conduct a
survey after the events to find out the impact.
4.3.3 TV advertisements
With the help of stations a number of viewers can be determined. The commercials will contain a
promotional code and the customer will use the codes to get extra benefits on Netflix website like the
discounts which will be a way to track effectiveness of such advertisements. Surveys will be conducted to
know the customer perception of the advertisements.
4.3.4 QR codes
These codes will be tracked over the internet to know how many of them were put to use. To find out
how customers perceive the QR code advertisements and promotions a survey will be conducted.
For other service improvement campaigns like forms of payments, speed, increased library selection, and
introduction of sports content will be evaluated periodically using online survey which will pop up before
or after starting a movie. These various mentioned evaluation techniques will be able to tell whether the
marketing campaigns are successful. If the some of the campaigns are not effective will be stopped in the
next period and new strategies will be applied.

22
4.4 Closing summary
Netflix have managed to position their brand as affordable, convenient, with largest library and most of
all personalized. They have successfully stocked their company with the widest range of films and the
first to have a good recommender system, ahead of its competitors they have integrated their service
with the social media. By starting their instant streaming product line as soon as broadband internet was
able to support it, they not only stayed ahead of the competitive game, they‘ve monopolized the field.
Now that the instant streaming feature has become so popular, many are trying to imitate and enter into
the market. By implementing the creative strategies suggested, Netflix will secure their place on top.
Through increasing the reach of their instant streaming message, eventually every home will have a
Netflix subscription. Netflix will not only be a choice but the choice for everyone.

23
5. References
Company facts. Netflic.com, Retrieved November 29, 2013 https://signup.netflix.com/MediaCenter/Facts
A brief history of the company that revolutionized watching of movies and TV shows.Netflix.com
Retrieved November 29, 2013 https://signup.netflix.com/MediaCenter/Timeline
Netflix Inc. (NFLX: NASDAQ GS): Netflix, Inc.'s Annual Revenues. Businessweek.com November 29, 2013
Retrieved November 29, 2013
http://investing.businessweek.com/research/stocks/earnings/earnings.asp?ticker=NFLX
Hastings R. and D. Wells. Shareholders letter”. Shareholder.com October 21, 2013 Retrieved November
29, 2013http://files.shareholder.com/downloads/NFLX/2745605111x0x698481/ecfe1ab4-66f5-4e23a64a-1ca025216e5e/Q313%20Earnings%20Letter%2010.21.13%2010.30am.pdf
Netflix mission statement. September 6, 2006 retrieved November 29, 2013
http://www.topix.com/forum/com/netflix/T636FMV2H9M888KP1
Krengel A. et al. Capstone final report: Netflix company analysis” Santa Clara university 2010 retrieved
November 29, 2013 http://www.scribd.com/doc/94610526/NFLX-Capstone-Final-Report
Krämer, J; Wiewiorra, L. & Weinhardt, C. (2013): Net Neutrality: A progress report. Telecommunications
Policy 37(9), 794–813
Capriogrio L. Netflix incorporation presentation. October 16, 2012 Retrieved December 1, 2013
http://prezi.com/pv5lokny_evj/strategy-netflix/
Katje C. Amazon vs. Netflix: Battle to Become Streaming King Heats Up. August 2, 2013 Retrieved, December 1, 2013
http://variety.com/2013/biz/news/amazon-turning-svod-space-into-a-two-company-race-1200571585/
"Key ICT indicators for developed and developing countries and the world (totals and penetration rates)",
International Telecommunications Unions (ITU), Geneva, 27 February 2013 Retrieved December 1, 2013
Curtis J. Netflix vs. Hulu vs. Amazon Prime comparison. Retrieved December 1, 2013
http://www.moneycrashers.com/netflix-hulu-amazon-comparison/
Comcast gives subscribers one more reason to quit Netflix. February 21, 2012 Retrieved December 1,
2013 http://gigaom.com/2012/02/21/comcast-streampix/
Redbox Instant vs. Netflix: The winner? Don’t waste your money. March 18, 2013 Retrieved December 1,
2013 http://www.wcpo.com/money/consumer/dont-waste-your-money/redbox-instant-vs-netflix-thewinner
Robson W. Comcast Streampix, No Threat to Netflix. Audioholics.com February 24, 2012 Retrieved on
December 1, 2013
24
http://www.audioholics.com/news/comcast-streampix-no-threat-to-netflix
Internet Usage Statistics-The Internet Big Picture World Internet Users and Population Stats Retrieved on
December 2, 2013 http://www.internetworldstats.com/stats.htm
Trend Data (Adults) Retrieved December 2, 2013
http://www.pewinternet.org/Static-Pages/Trend-Data-(Adults)/Device-Ownership.aspx
Media comparisons study 2012 Retrieved December 2, 2013
http://www.tvb.org/media_comparisons/1247377
Internet Advertising Search and Banner April 2013. Mintel/IAB/ PwC. Retrieved December 2, 2013
http://academic.mintel.com/display/662035/?highlight=true#hit1
Essential 100 Film Festivals Part 1 [2013] Retrieved December 02, 2013
http://www.raindance.org/essential-100-film-festivals-part-1/
Bledsoe K. & A. Phenix. Netflix Promotional Campaign” slideshare.com April 28,2011 Retrieved December
1,2013 http://www.slideshare.net/ashleyphenix/netflix-promotional-campaign
Austin E. Netflix marketing plan” Retrieved December 1, 2013
http://aboutelizabethaustin.files.wordpress.com/2011/08/netflix_marketing_plan.pdf
Krite L. 2013. Netflix strategic plan” May 2, 2013 Retrieved December 1, 2013
https://lpelin.expressions.syr.edu/trf483/files/2013/05/final_strategic_report.pdf
Chiang J. 2013. DVD, Game & Video Rental in the US. June 2013. IBISworld.com
Netflix Privacy policy. September 11, 2013 Retrieved October 30, 2013
https://signup.netflix.com/PrivacyPolicy

25

Más contenido relacionado

Was ist angesagt?

The Netflix Marketing Plan Power Point
The Netflix Marketing Plan Power PointThe Netflix Marketing Plan Power Point
The Netflix Marketing Plan Power PointShawn McNail
 
Direct Marketing Netflix Presentation
Direct Marketing Netflix Presentation  Direct Marketing Netflix Presentation
Direct Marketing Netflix Presentation JosephPapandrea
 
Company Presentation - Netflix
Company Presentation - NetflixCompany Presentation - Netflix
Company Presentation - NetflixCaroleenChang
 
Public Relations Proposal for Netflix
Public Relations Proposal for NetflixPublic Relations Proposal for Netflix
Public Relations Proposal for NetflixRebecca Frishman
 
How Netflix Wins With Their Brand Strategy
How Netflix Wins With Their Brand StrategyHow Netflix Wins With Their Brand Strategy
How Netflix Wins With Their Brand StrategyRhoderick Fernandez
 
Digital Marketing Plan- Netflix
Digital Marketing Plan- NetflixDigital Marketing Plan- Netflix
Digital Marketing Plan- NetflixAlisha Daredia
 
Marketing analysis for Netflix
Marketing analysis for NetflixMarketing analysis for Netflix
Marketing analysis for NetflixJulie Tan
 
Netflix business marketpresentation_economics
Netflix business marketpresentation_economicsNetflix business marketpresentation_economics
Netflix business marketpresentation_economicsGraysonMeeks
 
Netflix brand management
Netflix brand managementNetflix brand management
Netflix brand managementArushi Goel
 
Netflix India - Campaign Planning - Powerpoint Presentation - 2017
Netflix India - Campaign Planning - Powerpoint Presentation - 2017Netflix India - Campaign Planning - Powerpoint Presentation - 2017
Netflix India - Campaign Planning - Powerpoint Presentation - 2017Anjali Kamath
 
Netflix - Marketing
Netflix - MarketingNetflix - Marketing
Netflix - MarketingRonak Shah
 
Netflix Media Plan
Netflix Media PlanNetflix Media Plan
Netflix Media Plansarahmrubin
 
Netflix Case Presentation
Netflix Case PresentationNetflix Case Presentation
Netflix Case PresentationBrett Miller
 

Was ist angesagt? (20)

The Netflix Marketing Plan Power Point
The Netflix Marketing Plan Power PointThe Netflix Marketing Plan Power Point
The Netflix Marketing Plan Power Point
 
Direct Marketing Netflix Presentation
Direct Marketing Netflix Presentation  Direct Marketing Netflix Presentation
Direct Marketing Netflix Presentation
 
Company Presentation - Netflix
Company Presentation - NetflixCompany Presentation - Netflix
Company Presentation - Netflix
 
Netflix: An Analysis
Netflix: An AnalysisNetflix: An Analysis
Netflix: An Analysis
 
Public Relations Proposal for Netflix
Public Relations Proposal for NetflixPublic Relations Proposal for Netflix
Public Relations Proposal for Netflix
 
Netflix
NetflixNetflix
Netflix
 
How Netflix Wins With Their Brand Strategy
How Netflix Wins With Their Brand StrategyHow Netflix Wins With Their Brand Strategy
How Netflix Wins With Their Brand Strategy
 
Netflix
NetflixNetflix
Netflix
 
Digital Marketing Plan- Netflix
Digital Marketing Plan- NetflixDigital Marketing Plan- Netflix
Digital Marketing Plan- Netflix
 
Marketing analysis for Netflix
Marketing analysis for NetflixMarketing analysis for Netflix
Marketing analysis for Netflix
 
Netflix business marketpresentation_economics
Netflix business marketpresentation_economicsNetflix business marketpresentation_economics
Netflix business marketpresentation_economics
 
Netflix brand management
Netflix brand managementNetflix brand management
Netflix brand management
 
Netflix India - Campaign Planning - Powerpoint Presentation - 2017
Netflix India - Campaign Planning - Powerpoint Presentation - 2017Netflix India - Campaign Planning - Powerpoint Presentation - 2017
Netflix India - Campaign Planning - Powerpoint Presentation - 2017
 
Netflix - Marketing
Netflix - MarketingNetflix - Marketing
Netflix - Marketing
 
Netflix Case Study
Netflix Case StudyNetflix Case Study
Netflix Case Study
 
Netflix: Brand Analysis
Netflix: Brand AnalysisNetflix: Brand Analysis
Netflix: Brand Analysis
 
Netflix Media Plan
Netflix Media PlanNetflix Media Plan
Netflix Media Plan
 
Case Study Netflix
Case Study NetflixCase Study Netflix
Case Study Netflix
 
Netflix SMP Report
Netflix SMP ReportNetflix SMP Report
Netflix SMP Report
 
Netflix Case Presentation
Netflix Case PresentationNetflix Case Presentation
Netflix Case Presentation
 

Andere mochten auch

Netflix Promotional Campaign
Netflix Promotional CampaignNetflix Promotional Campaign
Netflix Promotional Campaignashleyphenix
 
Netflix business analysis 2015
Netflix business analysis 2015Netflix business analysis 2015
Netflix business analysis 2015revenuesandprofits
 
NDU Term Paper | Marketing Promotional Strategy - B Balady
NDU Term Paper | Marketing Promotional Strategy - B BaladyNDU Term Paper | Marketing Promotional Strategy - B Balady
NDU Term Paper | Marketing Promotional Strategy - B BaladyNaja Faysal
 
Netflix Consulting Project
Netflix Consulting ProjectNetflix Consulting Project
Netflix Consulting ProjectTeo Tertel
 
Netflix International Business Strategy Plan
Netflix International Business Strategy PlanNetflix International Business Strategy Plan
Netflix International Business Strategy PlanIsabelle Smith
 
Caso netflix
Caso netflixCaso netflix
Caso netflixDMC Perú
 
Netflix Plan de negocio con DAFO
Netflix Plan de negocio con DAFONetflix Plan de negocio con DAFO
Netflix Plan de negocio con DAFObcnbynit
 
Planificación de medios online: Netflix
Planificación de medios online: NetflixPlanificación de medios online: Netflix
Planificación de medios online: Netflixpublicidad_UCES
 
NETFLIX : CASO DE ANÁLISIS ESTRATÉGICO CURSO GERE425
NETFLIX : CASO DE ANÁLISIS ESTRATÉGICO  CURSO GERE425NETFLIX : CASO DE ANÁLISIS ESTRATÉGICO  CURSO GERE425
NETFLIX : CASO DE ANÁLISIS ESTRATÉGICO CURSO GERE425Luis Baquero
 
NETFLIX Business Analysis & Valuation
NETFLIX Business Analysis & ValuationNETFLIX Business Analysis & Valuation
NETFLIX Business Analysis & ValuationAlegra N Horne
 
NETFLIX Business Analysis & Valuation
NETFLIX Business Analysis & ValuationNETFLIX Business Analysis & Valuation
NETFLIX Business Analysis & ValuationAlegra N Horne
 
Product placement from Modern family season 5
Product placement from Modern family season 5Product placement from Modern family season 5
Product placement from Modern family season 5BrandsAndFilms
 
Product placement from House of Cards 4
Product placement from House of Cards 4Product placement from House of Cards 4
Product placement from House of Cards 4BrandsAndFilms
 
Product placement from House of Cards 3
Product placement from House of Cards 3Product placement from House of Cards 3
Product placement from House of Cards 3BrandsAndFilms
 

Andere mochten auch (20)

Netflix Case Study
Netflix Case StudyNetflix Case Study
Netflix Case Study
 
Netflix Case Study
Netflix Case StudyNetflix Case Study
Netflix Case Study
 
Netflix case study
Netflix case studyNetflix case study
Netflix case study
 
Estrategia netflix
Estrategia netflixEstrategia netflix
Estrategia netflix
 
Culture
CultureCulture
Culture
 
Netflix Promotional Campaign
Netflix Promotional CampaignNetflix Promotional Campaign
Netflix Promotional Campaign
 
Netflix business analysis 2015
Netflix business analysis 2015Netflix business analysis 2015
Netflix business analysis 2015
 
NDU Term Paper | Marketing Promotional Strategy - B Balady
NDU Term Paper | Marketing Promotional Strategy - B BaladyNDU Term Paper | Marketing Promotional Strategy - B Balady
NDU Term Paper | Marketing Promotional Strategy - B Balady
 
Netflix Consulting Project
Netflix Consulting ProjectNetflix Consulting Project
Netflix Consulting Project
 
Netflix International Business Strategy Plan
Netflix International Business Strategy PlanNetflix International Business Strategy Plan
Netflix International Business Strategy Plan
 
Caso netflix
Caso netflixCaso netflix
Caso netflix
 
Netflix
NetflixNetflix
Netflix
 
Netflix Plan de negocio con DAFO
Netflix Plan de negocio con DAFONetflix Plan de negocio con DAFO
Netflix Plan de negocio con DAFO
 
Planificación de medios online: Netflix
Planificación de medios online: NetflixPlanificación de medios online: Netflix
Planificación de medios online: Netflix
 
NETFLIX : CASO DE ANÁLISIS ESTRATÉGICO CURSO GERE425
NETFLIX : CASO DE ANÁLISIS ESTRATÉGICO  CURSO GERE425NETFLIX : CASO DE ANÁLISIS ESTRATÉGICO  CURSO GERE425
NETFLIX : CASO DE ANÁLISIS ESTRATÉGICO CURSO GERE425
 
NETFLIX Business Analysis & Valuation
NETFLIX Business Analysis & ValuationNETFLIX Business Analysis & Valuation
NETFLIX Business Analysis & Valuation
 
NETFLIX Business Analysis & Valuation
NETFLIX Business Analysis & ValuationNETFLIX Business Analysis & Valuation
NETFLIX Business Analysis & Valuation
 
Product placement from Modern family season 5
Product placement from Modern family season 5Product placement from Modern family season 5
Product placement from Modern family season 5
 
Product placement from House of Cards 4
Product placement from House of Cards 4Product placement from House of Cards 4
Product placement from House of Cards 4
 
Product placement from House of Cards 3
Product placement from House of Cards 3Product placement from House of Cards 3
Product placement from House of Cards 3
 

Ähnlich wie Netflix marketing plan

Increasing Netflix's Revenue, Issue, Analysis, and Recommendations
Increasing Netflix's Revenue, Issue, Analysis, and RecommendationsIncreasing Netflix's Revenue, Issue, Analysis, and Recommendations
Increasing Netflix's Revenue, Issue, Analysis, and RecommendationsEmilyAnneFletcher
 
Increasing Netflix's Revenue, Issue, Analysis, and Recommendation
Increasing Netflix's Revenue, Issue, Analysis, and RecommendationIncreasing Netflix's Revenue, Issue, Analysis, and Recommendation
Increasing Netflix's Revenue, Issue, Analysis, and RecommendationEmilyAnneFletcher
 
Bowen daigledionvalentine netflixcasestudy
Bowen daigledionvalentine netflixcasestudyBowen daigledionvalentine netflixcasestudy
Bowen daigledionvalentine netflixcasestudyWanda Alexander
 
All About Netflix - The Rise and Rise
All About Netflix - The Rise and RiseAll About Netflix - The Rise and Rise
All About Netflix - The Rise and RiseSaan Isaac
 
Use of Analytics by Netflix - Case Study
Use of Analytics by Netflix - Case StudyUse of Analytics by Netflix - Case Study
Use of Analytics by Netflix - Case StudySaket Toshniwal
 
Running Head INTEGRATIVE LEARNING PROJECTINTEGRATEIVE LEARNI.docx
Running Head INTEGRATIVE LEARNING PROJECTINTEGRATEIVE LEARNI.docxRunning Head INTEGRATIVE LEARNING PROJECTINTEGRATEIVE LEARNI.docx
Running Head INTEGRATIVE LEARNING PROJECTINTEGRATEIVE LEARNI.docxwlynn1
 
Marketing Mix of Netflix
Marketing Mix of NetflixMarketing Mix of Netflix
Marketing Mix of NetflixArwaSangotwala
 
1MARKETING STRATEGIES Marketing Plan Mileston.docx
1MARKETING STRATEGIES  Marketing Plan Mileston.docx1MARKETING STRATEGIES  Marketing Plan Mileston.docx
1MARKETING STRATEGIES Marketing Plan Mileston.docxdrennanmicah
 
110Week 8 Assignment 3Joanna NasserStrayer Universit.docx
110Week 8 Assignment 3Joanna NasserStrayer Universit.docx110Week 8 Assignment 3Joanna NasserStrayer Universit.docx
110Week 8 Assignment 3Joanna NasserStrayer Universit.docxdrennanmicah
 
Final Assignment on Netflix
Final Assignment on NetflixFinal Assignment on Netflix
Final Assignment on NetflixConnie Butts
 
Running head SWOT ANALYSIS OF PUBLICLY HELD COMPANY NETFLIX .docx
Running head SWOT ANALYSIS OF PUBLICLY HELD COMPANY NETFLIX     .docxRunning head SWOT ANALYSIS OF PUBLICLY HELD COMPANY NETFLIX     .docx
Running head SWOT ANALYSIS OF PUBLICLY HELD COMPANY NETFLIX .docxtodd521
 
Influence Of Netflix
Influence Of NetflixInfluence Of Netflix
Influence Of NetflixKara Webber
 
Case Presentation - Netflix by David Daba 4.pptx
Case Presentation - Netflix by David Daba 4.pptxCase Presentation - Netflix by David Daba 4.pptx
Case Presentation - Netflix by David Daba 4.pptxdavidjonathanDaba
 
Case Presentation - Netflix by David Daba 4.pptx
Case Presentation - Netflix by David Daba 4.pptxCase Presentation - Netflix by David Daba 4.pptx
Case Presentation - Netflix by David Daba 4.pptxdavidjonathanDaba
 

Ähnlich wie Netflix marketing plan (20)

Increasing Netflix's Revenue, Issue, Analysis, and Recommendations
Increasing Netflix's Revenue, Issue, Analysis, and RecommendationsIncreasing Netflix's Revenue, Issue, Analysis, and Recommendations
Increasing Netflix's Revenue, Issue, Analysis, and Recommendations
 
Increasing Netflix's Revenue, Issue, Analysis, and Recommendation
Increasing Netflix's Revenue, Issue, Analysis, and RecommendationIncreasing Netflix's Revenue, Issue, Analysis, and Recommendation
Increasing Netflix's Revenue, Issue, Analysis, and Recommendation
 
Bowen daigledionvalentine netflixcasestudy
Bowen daigledionvalentine netflixcasestudyBowen daigledionvalentine netflixcasestudy
Bowen daigledionvalentine netflixcasestudy
 
All About Netflix - The Rise and Rise
All About Netflix - The Rise and RiseAll About Netflix - The Rise and Rise
All About Netflix - The Rise and Rise
 
Use of Analytics by Netflix - Case Study
Use of Analytics by Netflix - Case StudyUse of Analytics by Netflix - Case Study
Use of Analytics by Netflix - Case Study
 
Netflix
NetflixNetflix
Netflix
 
CAMPAIGNORANGE (2)
CAMPAIGNORANGE (2)CAMPAIGNORANGE (2)
CAMPAIGNORANGE (2)
 
Running Head INTEGRATIVE LEARNING PROJECTINTEGRATEIVE LEARNI.docx
Running Head INTEGRATIVE LEARNING PROJECTINTEGRATEIVE LEARNI.docxRunning Head INTEGRATIVE LEARNING PROJECTINTEGRATEIVE LEARNI.docx
Running Head INTEGRATIVE LEARNING PROJECTINTEGRATEIVE LEARNI.docx
 
Marketing Mix of Netflix
Marketing Mix of NetflixMarketing Mix of Netflix
Marketing Mix of Netflix
 
1MARKETING STRATEGIES Marketing Plan Mileston.docx
1MARKETING STRATEGIES  Marketing Plan Mileston.docx1MARKETING STRATEGIES  Marketing Plan Mileston.docx
1MARKETING STRATEGIES Marketing Plan Mileston.docx
 
Netflix Final
Netflix FinalNetflix Final
Netflix Final
 
Netflix Report
Netflix Report Netflix Report
Netflix Report
 
Brand Audit Netflix.pdf
Brand Audit Netflix.pdfBrand Audit Netflix.pdf
Brand Audit Netflix.pdf
 
110Week 8 Assignment 3Joanna NasserStrayer Universit.docx
110Week 8 Assignment 3Joanna NasserStrayer Universit.docx110Week 8 Assignment 3Joanna NasserStrayer Universit.docx
110Week 8 Assignment 3Joanna NasserStrayer Universit.docx
 
Final Assignment on Netflix
Final Assignment on NetflixFinal Assignment on Netflix
Final Assignment on Netflix
 
Running head SWOT ANALYSIS OF PUBLICLY HELD COMPANY NETFLIX .docx
Running head SWOT ANALYSIS OF PUBLICLY HELD COMPANY NETFLIX     .docxRunning head SWOT ANALYSIS OF PUBLICLY HELD COMPANY NETFLIX     .docx
Running head SWOT ANALYSIS OF PUBLICLY HELD COMPANY NETFLIX .docx
 
Influence Of Netflix
Influence Of NetflixInfluence Of Netflix
Influence Of Netflix
 
Capstone Project
Capstone ProjectCapstone Project
Capstone Project
 
Case Presentation - Netflix by David Daba 4.pptx
Case Presentation - Netflix by David Daba 4.pptxCase Presentation - Netflix by David Daba 4.pptx
Case Presentation - Netflix by David Daba 4.pptx
 
Case Presentation - Netflix by David Daba 4.pptx
Case Presentation - Netflix by David Daba 4.pptxCase Presentation - Netflix by David Daba 4.pptx
Case Presentation - Netflix by David Daba 4.pptx
 

Mehr von Evelyne Otto

Pepe jeans case study report
Pepe jeans case study reportPepe jeans case study report
Pepe jeans case study reportEvelyne Otto
 
Pay for perfomance (Pros&Cons) presentation
Pay for perfomance (Pros&Cons) presentationPay for perfomance (Pros&Cons) presentation
Pay for perfomance (Pros&Cons) presentationEvelyne Otto
 
Employees benefits (Pros&Cons)
Employees benefits (Pros&Cons)Employees benefits (Pros&Cons)
Employees benefits (Pros&Cons)Evelyne Otto
 
Pepe jeans case study presentation
Pepe jeans case study presentationPepe jeans case study presentation
Pepe jeans case study presentationEvelyne Otto
 
Mark strat simulation( firm presentation)
Mark strat simulation( firm presentation)Mark strat simulation( firm presentation)
Mark strat simulation( firm presentation)Evelyne Otto
 
CRM soft wares comparisons and recommendation
CRM soft wares comparisons and recommendationCRM soft wares comparisons and recommendation
CRM soft wares comparisons and recommendationEvelyne Otto
 

Mehr von Evelyne Otto (7)

Pepe jeans case study report
Pepe jeans case study reportPepe jeans case study report
Pepe jeans case study report
 
Pay for perfomance (Pros&Cons) presentation
Pay for perfomance (Pros&Cons) presentationPay for perfomance (Pros&Cons) presentation
Pay for perfomance (Pros&Cons) presentation
 
Employees benefits (Pros&Cons)
Employees benefits (Pros&Cons)Employees benefits (Pros&Cons)
Employees benefits (Pros&Cons)
 
Pepe jeans case study presentation
Pepe jeans case study presentationPepe jeans case study presentation
Pepe jeans case study presentation
 
Mark strat simulation( firm presentation)
Mark strat simulation( firm presentation)Mark strat simulation( firm presentation)
Mark strat simulation( firm presentation)
 
Monetary policy
Monetary policy  Monetary policy
Monetary policy
 
CRM soft wares comparisons and recommendation
CRM soft wares comparisons and recommendationCRM soft wares comparisons and recommendation
CRM soft wares comparisons and recommendation
 

Último

Tailoring-Retail-Strategies-for-Gen-X-and-Gen-Y
Tailoring-Retail-Strategies-for-Gen-X-and-Gen-YTailoring-Retail-Strategies-for-Gen-X-and-Gen-Y
Tailoring-Retail-Strategies-for-Gen-X-and-Gen-Yabhishekb63
 
Human vs AI Quality Raters for Search Engines.pdf
Human vs AI Quality Raters for Search Engines.pdfHuman vs AI Quality Raters for Search Engines.pdf
Human vs AI Quality Raters for Search Engines.pdfDawn Anderson MSc DigM
 
How to Analyze and Improve Your PPC Advertisements.pdf
How to Analyze and Improve Your PPC Advertisements.pdfHow to Analyze and Improve Your PPC Advertisements.pdf
How to Analyze and Improve Your PPC Advertisements.pdfBanyanbrain
 
Winning In House SEO Battles - by Ash Nallawalla
Winning In House SEO Battles - by Ash NallawallaWinning In House SEO Battles - by Ash Nallawalla
Winning In House SEO Battles - by Ash NallawallaAsh Nallawalla
 
BLOOM_February2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_February2024. Balmer Lawrie Online Monthly BulletinBLOOM_February2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_February2024. Balmer Lawrie Online Monthly BulletinBalmerLawrie
 
Module_ E-E-A-T (Experience, Expertise, Authoritativeness, and Trustworthines...
Module_ E-E-A-T (Experience, Expertise, Authoritativeness, and Trustworthines...Module_ E-E-A-T (Experience, Expertise, Authoritativeness, and Trustworthines...
Module_ E-E-A-T (Experience, Expertise, Authoritativeness, and Trustworthines...ivypcsoseo
 
SEO - Keyword Research Prompt Strategy -Marianna Nakou
SEO - Keyword Research Prompt Strategy -Marianna NakouSEO - Keyword Research Prompt Strategy -Marianna Nakou
SEO - Keyword Research Prompt Strategy -Marianna NakouMarianna Nakou
 
TAM AdEx report - Print Advertising 2023
TAM AdEx report - Print Advertising 2023TAM AdEx report - Print Advertising 2023
TAM AdEx report - Print Advertising 2023Social Samosa
 
Understanding Fasting in Islam Rules, Reason, and Types.pptx
Understanding Fasting in Islam Rules, Reason, and Types.pptxUnderstanding Fasting in Islam Rules, Reason, and Types.pptx
Understanding Fasting in Islam Rules, Reason, and Types.pptxelizabethella096
 
Unlocking Rich Snippets : Elevating your Content In Search Results
Unlocking Rich Snippets : Elevating your Content In Search ResultsUnlocking Rich Snippets : Elevating your Content In Search Results
Unlocking Rich Snippets : Elevating your Content In Search Resultspratikpriyadarshi222
 
Key Trends and Insights for Content Marketing in 2024
Key Trends and Insights for Content Marketing in 2024Key Trends and Insights for Content Marketing in 2024
Key Trends and Insights for Content Marketing in 2024Jomer Gregorio
 
9 Major Google Updates From 2023 & 2024 SEO Predictions
9 Major Google Updates From 2023 & 2024 SEO Predictions9 Major Google Updates From 2023 & 2024 SEO Predictions
9 Major Google Updates From 2023 & 2024 SEO PredictionsSearch Engine Journal
 
Verified Wise Account Buy Verified Wise Account
Verified Wise Account Buy Verified Wise AccountVerified Wise Account Buy Verified Wise Account
Verified Wise Account Buy Verified Wise Accountcashapp
 
"TikTok Trends 101: Stay Ahead of the Curve with the Latest Viral Sensations!"
"TikTok Trends 101: Stay Ahead of the Curve with the Latest Viral Sensations!""TikTok Trends 101: Stay Ahead of the Curve with the Latest Viral Sensations!"
"TikTok Trends 101: Stay Ahead of the Curve with the Latest Viral Sensations!"Theoda Metcalf
 
WHY E-COMMERCE BRANDS MUST PAY MORE ATTENTION TO THE GOOGLE KNOWLEDGE GRAPH
WHY E-COMMERCE BRANDS MUST PAY MORE ATTENTION TO THE GOOGLE KNOWLEDGE GRAPHWHY E-COMMERCE BRANDS MUST PAY MORE ATTENTION TO THE GOOGLE KNOWLEDGE GRAPH
WHY E-COMMERCE BRANDS MUST PAY MORE ATTENTION TO THE GOOGLE KNOWLEDGE GRAPHSara Moccand-Sayegh
 
8020 Interactive: Immersive Marketing Portfolio
8020 Interactive: Immersive Marketing Portfolio8020 Interactive: Immersive Marketing Portfolio
8020 Interactive: Immersive Marketing Portfoliogfrank8020
 
india's no 1 Digital Marketing Company.pptx
india's no 1 Digital Marketing Company.pptxindia's no 1 Digital Marketing Company.pptx
india's no 1 Digital Marketing Company.pptxpaperboattechsolutio
 
"The Ultimate Guide: Creating TikTok Content That Captures Millions"
"The Ultimate Guide: Creating TikTok Content That Captures Millions""The Ultimate Guide: Creating TikTok Content That Captures Millions"
"The Ultimate Guide: Creating TikTok Content That Captures Millions"Theoda Metcalf
 
How to Use AI & Make for Self-Reported Attribution in HubSpot
How to Use AI & Make for Self-Reported Attribution in HubSpotHow to Use AI & Make for Self-Reported Attribution in HubSpot
How to Use AI & Make for Self-Reported Attribution in HubSpotDimosMichailidis1
 

Último (20)

Tailoring-Retail-Strategies-for-Gen-X-and-Gen-Y
Tailoring-Retail-Strategies-for-Gen-X-and-Gen-YTailoring-Retail-Strategies-for-Gen-X-and-Gen-Y
Tailoring-Retail-Strategies-for-Gen-X-and-Gen-Y
 
Human vs AI Quality Raters for Search Engines.pdf
Human vs AI Quality Raters for Search Engines.pdfHuman vs AI Quality Raters for Search Engines.pdf
Human vs AI Quality Raters for Search Engines.pdf
 
How to Analyze and Improve Your PPC Advertisements.pdf
How to Analyze and Improve Your PPC Advertisements.pdfHow to Analyze and Improve Your PPC Advertisements.pdf
How to Analyze and Improve Your PPC Advertisements.pdf
 
Reliv Opportunity Slides US
Reliv Opportunity Slides USReliv Opportunity Slides US
Reliv Opportunity Slides US
 
Winning In House SEO Battles - by Ash Nallawalla
Winning In House SEO Battles - by Ash NallawallaWinning In House SEO Battles - by Ash Nallawalla
Winning In House SEO Battles - by Ash Nallawalla
 
BLOOM_February2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_February2024. Balmer Lawrie Online Monthly BulletinBLOOM_February2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_February2024. Balmer Lawrie Online Monthly Bulletin
 
Module_ E-E-A-T (Experience, Expertise, Authoritativeness, and Trustworthines...
Module_ E-E-A-T (Experience, Expertise, Authoritativeness, and Trustworthines...Module_ E-E-A-T (Experience, Expertise, Authoritativeness, and Trustworthines...
Module_ E-E-A-T (Experience, Expertise, Authoritativeness, and Trustworthines...
 
SEO - Keyword Research Prompt Strategy -Marianna Nakou
SEO - Keyword Research Prompt Strategy -Marianna NakouSEO - Keyword Research Prompt Strategy -Marianna Nakou
SEO - Keyword Research Prompt Strategy -Marianna Nakou
 
TAM AdEx report - Print Advertising 2023
TAM AdEx report - Print Advertising 2023TAM AdEx report - Print Advertising 2023
TAM AdEx report - Print Advertising 2023
 
Understanding Fasting in Islam Rules, Reason, and Types.pptx
Understanding Fasting in Islam Rules, Reason, and Types.pptxUnderstanding Fasting in Islam Rules, Reason, and Types.pptx
Understanding Fasting in Islam Rules, Reason, and Types.pptx
 
Unlocking Rich Snippets : Elevating your Content In Search Results
Unlocking Rich Snippets : Elevating your Content In Search ResultsUnlocking Rich Snippets : Elevating your Content In Search Results
Unlocking Rich Snippets : Elevating your Content In Search Results
 
Key Trends and Insights for Content Marketing in 2024
Key Trends and Insights for Content Marketing in 2024Key Trends and Insights for Content Marketing in 2024
Key Trends and Insights for Content Marketing in 2024
 
9 Major Google Updates From 2023 & 2024 SEO Predictions
9 Major Google Updates From 2023 & 2024 SEO Predictions9 Major Google Updates From 2023 & 2024 SEO Predictions
9 Major Google Updates From 2023 & 2024 SEO Predictions
 
Verified Wise Account Buy Verified Wise Account
Verified Wise Account Buy Verified Wise AccountVerified Wise Account Buy Verified Wise Account
Verified Wise Account Buy Verified Wise Account
 
"TikTok Trends 101: Stay Ahead of the Curve with the Latest Viral Sensations!"
"TikTok Trends 101: Stay Ahead of the Curve with the Latest Viral Sensations!""TikTok Trends 101: Stay Ahead of the Curve with the Latest Viral Sensations!"
"TikTok Trends 101: Stay Ahead of the Curve with the Latest Viral Sensations!"
 
WHY E-COMMERCE BRANDS MUST PAY MORE ATTENTION TO THE GOOGLE KNOWLEDGE GRAPH
WHY E-COMMERCE BRANDS MUST PAY MORE ATTENTION TO THE GOOGLE KNOWLEDGE GRAPHWHY E-COMMERCE BRANDS MUST PAY MORE ATTENTION TO THE GOOGLE KNOWLEDGE GRAPH
WHY E-COMMERCE BRANDS MUST PAY MORE ATTENTION TO THE GOOGLE KNOWLEDGE GRAPH
 
8020 Interactive: Immersive Marketing Portfolio
8020 Interactive: Immersive Marketing Portfolio8020 Interactive: Immersive Marketing Portfolio
8020 Interactive: Immersive Marketing Portfolio
 
india's no 1 Digital Marketing Company.pptx
india's no 1 Digital Marketing Company.pptxindia's no 1 Digital Marketing Company.pptx
india's no 1 Digital Marketing Company.pptx
 
"The Ultimate Guide: Creating TikTok Content That Captures Millions"
"The Ultimate Guide: Creating TikTok Content That Captures Millions""The Ultimate Guide: Creating TikTok Content That Captures Millions"
"The Ultimate Guide: Creating TikTok Content That Captures Millions"
 
How to Use AI & Make for Self-Reported Attribution in HubSpot
How to Use AI & Make for Self-Reported Attribution in HubSpotHow to Use AI & Make for Self-Reported Attribution in HubSpot
How to Use AI & Make for Self-Reported Attribution in HubSpot
 

Netflix marketing plan

  • 1. Marketing Plan 100 Winchester Circle Los Gatos CA 95032 USA Phone#:+1 (408) 540-3700 Website:www.netflix.com Evelyne Ringia Phone#: +1 205 223 0436 Email: eringia@kent.edu Date: December 05,2013
  • 2. Executive Summary The 2014 Marketing plan for Netflix is designed to increase sales and brand awareness. Netflix offers DVD rental by mail and instant steaming of movies and TV shows at affordance prices consistent with their vision, “Our appeal and success are built on providing the most expansive selection of DVDs; an easy way to choose movies; and fast, free delivery”.‖ Dominated by a rapid technological advancement which characterize the industry, the DVD rental portion of business is slowly declining replaced by the instant Streaming refer to figure3 page 7. The changes in the DVD portion of the business makes it even more important to have great marketing plan to strengthen the brand name and profitability of the streaming portion of the business and this marketing plan focuses on the Online streaming business for the same reason. Netflix has customers are for Online streaming, DVD rentals and few who have both plans. There are environmental factors affecting Netflix like economic, social cultural, technological, political and legal factors. All these factors and many more either positively or adversely affect Netflix but the major five factors are explained in detail in page 4 of this marketing plan. Apart from the external environmental factors a SWOT analysis is done to further describe the company and the industry. Netflix has two product lines each facing a different group of competitors. DVD rental by mail competitors are Blockbuster and Red-box with market share of 16.9% and 45.5% respectively while Netflix has 24.3%. Virtual rivals include Amazon, Hulu, Red-box Instant, X-finity StreamPix, I-Tunes, Love-Film, and cable TV companies. Their strengths and weaknesses are analyzed in detail in page 8. Netflix still claim its top position due to strong Brand, high selection of content, affordability, flexibility with internet speeds and various devices than can be used to stream from Netflix. Netflix had over 40 million subscribers in the end of Q3, 2013 and according to their forecasts the subscriber number may be 44.4 million by the end of the year which is a tremendous growth compare to all of its competitors. Netflix targets a mass market aiming at acquiring as many subscribers of all ages and preferences. Segmentation is not done in this particular industry because the service offered is highly tailored to individual needs using complex prediction algorithms and a recommender system, marketing efforts are aimed at getting as many subscribers as possible. Another reason for not having specific segments is the profitability aspect, since the price per person is low it will not be profitable going after a single segment. Apart from that the customer base is extremely diverse to be able to achieve any meaningful segmentation. Netflix positions itself as a convenient, great choice of content and affordance entertainment option for people who are interested in movies and TV shows. The perceptual maps have been prepared to elaborate the positioning aspect refer to figure 4&5. Marketing strategies have been designed with focus on 7Ps each with strategies to either improve or promote what is already been offered by Netflix to raise brand awareness and increase Netflix market share in Instant Streaming product line. Some other objectives of the plan is to increase media presence and the use of promotional tools.
  • 3. One year implementation plan has been prepared to show when the proposed activities will be done. (Refer to table 4& figure 10) Evaluation methods and metrics have been discussed to enable the marketing team know how successful all the plans have been and whether these marketing promotions have attracted new subscribers or improve the brand awareness and value which are the main objectives of the plan. Conclusion is a summary of the plan and what the team hopes to achieve after implementation. The message that Netflix plans to send out through all of its campaigns is “watch what you want, when you want at affordable price”
  • 4. Contents 1.1 Introduction ......................................................................................................1 1.1 Netflix background ..................................................................................................................... 1 1.3 Netflix Mission ........................................................................................................................... 2 1.4 Netflix Culture ............................................................................................................................ 2 1.5 Netflix management .................................................................................................................. 2 1.6 Netflix customers ....................................................................................................................... 2 2. Situation Analysis ................................................................................................3 2.1 Environmental factors................................................................................................................ 3 2.1.1 Economic factors........................................................................................................ 3 2.1.2 Social factors .............................................................................................................. 3 2.1.3 Technological factors ................................................................................................. 3 2.1.4 Political factors........................................................................................................... 4 2.1.5 Legal factors ............................................................................................................... 4 2.2 SWOT ......................................................................................................................................... 4 2.2.1 Strengths .................................................................................................................... 4 2.2.2 Weaknesses ............................................................................................................... 4 2.2.3 Opportunities ............................................................................................................. 5 2.2.4 Threats ....................................................................................................................... 5 2.3 Customer description................................................................................................................. 6 2.4 Competition ............................................................................................................................... 7 2.4.1 Comparisons with the 2 closest competitors ............................................................ 7 2.5 Segmentation ............................................................................................................................. 9 2.5.1 Why Not? ................................................................................................................... 9 2.6 Targeting .................................................................................................................................. 10 2.7 Positioning ............................................................................................................................... 10 2.5.4 Research needs ........................................................................................................ 12 3. Marketing Planning ...........................................................................................13 3.2 Strategic direction, targeting and positioning ......................................................................... 13 3.3 Marketing objectives ............................................................................................................... 13 3.3.1 Marketing................................................................................................................. 13 3.3.2 Media ....................................................................................................................... 13 3.3.3 Promotion & advertising .......................................................................................... 13 3.4 Marketing mix .......................................................................................................................... 14 3.4.1 Product offering strategies ...................................................................................... 14 3.4.2 Promotion, communication and influence .............................................................. 14 3.4.3 Price ......................................................................................................................... 18 3.4.4 People ...................................................................................................................... 18 3.4.5 Place & Process, ....................................................................................................... 18 3.4.6 Distribution .............................................................................................................. 18 3.4.7 Physical evidence ..................................................................................................... 18
  • 5. 4. Implementation and Control.......................................................................19 4.1 Strategy implementation details ...................................................................................... 19 4.2 Time lines ................................................................................................................................. 21 4.3 Evaluation ................................................................................................................................ 22 4.3.1 Internet adverts ....................................................................................................... 22 4.3.2 Event sponsorships .................................................................................................. 22 4.3.3 TV advertisements ................................................................................................... 22 4.3.4 QR codes .................................................................................................................. 22 4.4 Closing summary ...................................................................................................................... 23 5. References ..................................................................................................24 List of Figures Figure 1 Rapid Subscriber growth table ..........................................................................................................1 Figure 2 Consumer spending and time spent on leisure and sports ..............................................................3 Figure 3Netflix subscriber trend 2012/2013 ...................................................................................................7 Figure 4 Perceptual Map (selection/personalization) ..................................................................................10 Figure 5 Perceptual map (convenience/economy) .......................................................................................11 Figure 6 Adult gadget ownership in America................................................................................................15 Figure 7 Sales forecast resulting from online banner Adverts .....................................................................16 Figure 8 Media comparisons study 2012 ......................................................................................................16 Figure 9 Example of QR codes ......................................................................................................................17 Figure 10 Implementation time line ............................................................................................................21 List of Tables Table 1 Worldwide Broadband subscriptions .................................................................................................5 Table 2 Netflix Competitors analysis...............................................................................................................9 Table 3 Values used to construct the perceptual map .................................................................................12 Table 4 Implementation blue print ...............................................................................................................19
  • 7. 1.1 Introduction 1.1 Netflix background Netflix, Inc. is an American provider of on demand Internet streaming media available to North and South America, the Caribbean, United Kingdom, Ireland, Sweden, Denmark, Norway, Finland, the Netherlands, etc. and flat rate DVD-by-mail in the United States, where mailed DVDs are sent via permit reply mail. Online streaming service and DVD delivery service are the two main two main product lines for Netflix. Netflix core product is a service .This marketing plan will focus on online streaming service. 1.2 Netflix history Netflix was incorporated in Delaware in August 1997 and started its subscription-based digital distribution service in 1999. It made its initial public offering on May 22, 2002 on NASDAQ under the ticker NFLX. Netflix introduced instant streaming in 2007, by 2009 Netflix was offering a collection of 100,000 titles on DVD and had 12.3 million subscribers. In September 2010, they began international operations by offering streaming service in Canada, and now offers streaming service in Latin America, the United Kingdom, Ireland, and the Nordic countries of Finland, Denmark, Sweden, Norway and others. Beginning the fourth quarter of 2011, Netflix had three operating segments: Domestic streaming, International streaming and Domestic DVD. The Domestic and International streaming segments derive revenues from monthly subscription services consisting solely of streaming content. The Domestic DVD segment derives revenues from monthly subscription services consisting solely of DVD-by-mail. By end of 2012 the total revenue for Netflix reached at $3.6 billion a 12.6% compared to 2011 results and it is estimated that Netflix will hit the revenue of $4.4 billion end of 2013. Netflix announced having over 40 million subscriber in its shareholder letter of October 21, 2013. 31.09 million being domestic streaming, 9.19 million and 7.15 being international streaming and DVD delivery subscriptions respectively. Netflix has been growing both financially and with ever increasing the subscriber base from the start with a brief stumble in second half of 2011 when it separated the DVD service to Quickster and increased prices for the subscription by 60% of which it bounced back and regained its stock value and lost subscriptions. Rapid subcriber Growth 45 Rapid subcriber Growth, 41.49 40 Subscribers Millions 35 30 25 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Figure 1 Rapid Subscriber growth table Source Netflix 1
  • 8. 1.3 Netflix Mission Netflix mission states “our appeal and success are built on providing the most expansive selection of DVDs; an easy way to choose movies; and fast, free delivery” (Topix.com) 1.4 Netflix Culture Netflix culture is that of freedom and responsibility as elaborated in CEO Reed Hastings’ presentation on Netflix’ “Freedom and Responsibility” culture. They have nine specific values, which includes Judgment, Communication, Impact, Curiosity, Innovation, Courage, Passion, Honesty, and Selflessness. Employees help each other to be great. 1.5 Netflix management Founder and CEO Reed Hastings has created a unique management style that is most notably similar to that of George Clooney’s Danny Ocean role; that is, “a leader who hires the best, and gets out of the way” (Wells). Netflix thus has a laid-back structure that allows employees to make their own decisions, but greatly encourages that smart decisions are made. Some of the perks include allowing employees to structure their own compensation packages, no clothing policies, and having a—hypothetical—unlimited amount of vacation days. Hastings understood that valuable employees are happy employees. However much of the importance of this style of management is in its beginning: hiring top-notch colleagues. And finally, regarding expensing, entertainment, gifts and travel, simply “act in Netflix’s best interest” (Siegler). By creating an ideal workspace to provide a highly productive environment, excellence in work quality is expected, and crucial. In the case that employees do not live up to this high standard, Netflix provides large severance packages for quick termination (Kaltschnee, 2007). Some of Netflix Divisions are content division, streaming and partnership division, product division, Finance division, Counsel Division, Talent division, marketing and communication divisions. Names of division heads are in Table 5. 1.6 Netflix customers Netflix customers are divided into two sections: traditional DVD delivery and online streaming customers. Traditional consumers are particular and selective; they have a specific title or genre they are looking for, (often making up niche market consumers), and they desire a rich viewing experience, which currently makes them more likely to consume hardcopy media. They are willing to wait a few days to acquire their title, as long as it meets their expectations. These also have a low propensity to substitute, because they are committed to video entertainment, and possibly a higher propensity to purchase video, more likely to be older, and because they view and access rentals through more traditional channels, they invest more time and energy in their choices. This customers opt for Netflix mail-delivery services as well as more differentiated online subscription plans. Online streaming consumers are not as selective as their counterparts. They watch videos when they can. They value easy and immediate access, portability and transferability of the product, and are more than willing to watch video on their computers or other devices like I pads, computer tablets and even smart phones. This consumer has a higher propensity to substitute than the DVD rental customer. They are also typically younger, and more Internet-savvy. These customers often opt for affordable monthly online subscription plans. To access Netflix’s services customers incur monetary costs for rental fees and subscription fees. Apart from the cost that is directly related to Netflix services, customers have to purchase devices in which they can use to access Netflix services like computers, television sets, modems and Internet packages. 2
  • 9. 2. Situation Analysis Netflix core products are service for moves online streaming and DVD rentals. This marketing plan is going to focus on the online streaming product line. 2.1 Environmental factors Netflix has environmental factors affecting it like economic, social cultural, technological, political and legal factors. All these factors and many more either positively or adversely affect Netflix but the major five factors explained below have the greatest impact. 2.1.1 Economic factors This industry is affected by changes in consumer spending, which can be influenced by changes in the rate of employment growth, interest rates and tax rates. When spending rises, consumers will be more likely to buy subscriptions. Consumer spending is expected to increase slowly during 2013 and presents a potential opportunity for the industry. 2.1.2 Social factors People with increased leisure time availability are more likely to watch movies and TV shows and video games from companies in this industry. As unemployment gradually falls during the next five years, people will be more likely to opt for less time-consuming rental options like streaming. Time spent on leisure and sports is expected to decrease slowly during 2013. Figure 2 Consumer spending and time spent on leisure and sports 2.1.3 Technological factors As the internet served more functions and became more popular, video streaming services, such as Netflix, rose in popularity. Consumers will continue to look to the internet for services previously conducted with physical media. Therefore, the increased adoption of the internet will be an opportunity to the industry. The percentage of services online is expected to increase in 2013. Increased use of smartphones, tablets and computers has also worked in favor of this online video streaming industry. 3
  • 10. 2.1.4 Political factors Network neutrality is the principle that Internet service providers and governments should treat all data on the Internet equally, not discriminating or charging differentially by user, content, site, platform, application, type of attached equipment, and modes of communication. The possibility of regulations designed to mandate the neutrality of the Internet has been subject to fierce debate, especially in the United States. If the network neutrality bill will be rejected then Netflix and the like companies will face a major threat because their existence depends on the internet and if the cost of using Netflix will become too high as a result of lack of network neutrality then Netflix will be adversely affected. Apart from network neutrality there many other laws which are not in favor of the industry like the Video Privacy Protection Act (VPPA) which Netflix had to actively lobby for its amendment to allow them have the social media sharing features. Other political factors include FCC restrictions on vertical integration and content monopolies, funding problems for US postal service, increased state taxation for online businesses and congress’s historical receptiveness for Hollywood lobbying. Netflix has its political action committee. 2.1.5 Legal factors Due to extensive use of licenses for contents and contracts with content providers also customer privacy issues there is a potential for a lot of legal actions against companies in this industry. 2.2 SWOT 2.2.1 Strengths • Netflix has the First Mover Advantage into the movies and TV shows instant streaming which gives its brand higher recognition compare to other competitors. • Netflix brand has Strong Brand Recognition and winning Emmy awards with its House of cards show, Emmys best the Personalized Recommendation Engines for Video Discovery award and many others making it the strongest brand in the industry. • With the personalized recommendation system and a large selection of content Netflix has managed to get high Customer Satisfaction • Netflix has the largest Streaming library compare to other competitors like amazon and Hulu. • Netflix has the ability to adopt to various platforms like TVs, game consoles, smart phones, tables and computers as well as flexibility to different internet speeds which other competitors like Amazon do not have • Production of original content has increased Netflix brand equity, customer loyalty and revenues for example House of cards and orange is the new black. • A huge database of customer data and a good system for analyzing the data enabling them to have more accurate predictions and recommender systems. 2.2.2 Weaknesses • Netflix has a big window of time from when the movie is launched to when it is adopted by Netflix library. Customers have to wait for 28 days to have access of new content releases unlike Hulu who can provide them earlier • Contractual restrictions on streaming content. Netflix is bound by the contracts with the content providers restricting its flexibility on expansion of the market and the content. • Expired contracts with Sony & Stars, resulting in lost videos about 1800 titles setting back the efforts to expand the video library. Also losing a video provider EPIX to Amazon who is a competitor was a setback for Netflix. • Damaged reputation after attempting to increase fees and separate DVD & streaming video 4
  • 11. • memberships. Financing large aggressive international expansion may affect its liquidity (Reed Hastings in Q3 interview with BTIG and JP Morgan) 2.2.3 Opportunities • Product Line Expansion of original shows may have a favorable effect to Netflix subscriber base, profits and brand equity • More expansion in International market. According to table below there is a rapid growth of the number of broadband subscription every year and this is a tremendous opportunity for Netflix to introduce video streaming in those markets. Worldwide broadband subscriptions 2007a 2010a 2013a,b World population 6.6 billion 6.9 billion 7.1 billion Fixed broadband 5.2% 7.6% 9.8% Developing world 2.3% 4.2% 6.1% Developed world 18.0% 23.6% 27.2% Mobile broadband 4.0% 11.3% 29.5% Developing world 0.8% 4.4% 19.8% Developed world 18.5% 42.9% 74.8% Per 100 inhabitants. Estimate. Source: International Telecommunications Union. Table 1 Worldwide Broadband subscriptions • Other potential areas in Internet streaming services where Netflix has opportunity for growth are the live sports, and online games that Netflix do not currently provide. 2.2.4 Threats • Exclusivity agreements with content providers may effect availability of movies for streaming • More competition from big name companies (Apple, Microsoft, Amazon) and global competition from companies operating locally overseas. The Competitors offering streaming video are also bidding for exclusive rights to content example: Amazon, HBO, TV networks which makes gives the content providers higher negotiation power which results to Higher licensing costs. The former Netflix content provider, EPIX currently provides Disney videos to Amazon; Disney recently acquired Lucas film & entire Star Wars franchise that makes Amazon a stronger competitor than before. • Limits on Bandwidth usage from internet providers if the Congress will not pass regulations to honor network neutrality. This will make Netflix services more expensive that the customers are willing to pay and therefore affect Netflix business. • Price adjustments to cover new expenses can result to consumer outrage like it happened in 2011 • Competitor partnerships. There is a threat of Netflix competitors forming partnerships which will 5
  • 12. • • • • make competition more hard to overcome for example (ex: Amazon & Epix) Movie & TV industry less willing to make exclusive deals with online video services. Netflix receive web services from Amazon who is also a competitor which draws attention to conflicts of interest issues and Netflix faces a risk of Internet disruptions. However Netflix have developed a software tool called Isthmus, which manages Elastic Load Balancing services to curb Amazon services outages early this year. Motion Pictures Association of America (Industry regulator) poses a risk if changes will be made affecting Netflix adversely. Increasing in cost for content licenses and increase in cyber-crimes are some of the other stumbling blocks for Netflix 2.3 Customer description Netflix serve a business to customer market. The potential market includes people of ages from 5 (kids), 18 to approximately 59 years and beyond and they are located in the US and other 41 countries where Netflix currently operates. They have two major product categories which are DVD by mail subscription and online streaming subscriptions. The focus is online streaming. Netflix customers are highly diverse in their watching preferences, ages, income, technological advancement and in many other aspects with the only common factor uniting them being access to internet and interest in video content. Most are accustomed to free/ad based content and the black market. With these options available, prices are driven down as consumers have high bargaining power To be able to understand and serve this kind of extremely diverse customer base Netflix collect and retain the following information about their subscribers in order to understand individual preferences and be able to serve every one of their customers individually. The information is collected from the website by keeping track of subscribers interaction with them; Email addresses, names, age, credit card information and other basic information, title selections, reviews, ratings, payment history, correspondence, internet service providers, Internet protocol addresses, devices and software data (such as type, configuration and unique identifiers), instant-watching hours/movies, TV shows and related activities. They also collect information from other sources; including offline data and subscribers’ browsing behavior on other sites and interactions with Netflix’s advertising, movie & TV show ratings, consumption habits, commentary and reviews. Subscribers may Choose to connect one or more social networks (such as Facebook) with them Netflix account. If they do, Netflix will import, use, and retain information from their social networking account(s) such as names and profile pictures as well as their e-mail address, list of friends, subscriber’s Likes and Interests as well as information they make public on social networks From analysis of collected information it is clear that Netflix online streaming customer’s primary needs are affordable, convenient, fast and individualized entertainment. Netflix has kept on delivering and responding to these needs which results to a rapid growth of its customer subscription base. Figure 3 shows customer subscription trend for 2012&2013 6
  • 13. Netflix subcribers trend in millions 35 25 23.41 23.94 25.1 10.09 9.24 8.61 3.07 3.62 4.31 Q1/'12 Q2/'12 Q3/'12 33.1 29.17 29.81 31.09 8.22 6.12 7.98 7.14 9.19 7.15 10.5 7.75 7.51 Q4/'12 Q1/'13 Q2/'13 Q3/'13 Q4/'13 (forecast) 30 27.15 20 15 10 5 0 US streaming DVD rental International streaming Figure 3Netflix subscriber trend 2012/2013 2.4 Competition Netflix’s two product lines video streaming and the DVD by mail, each face a different group of competitors. DVD by mail competitors are Blockbuster and Red-box with market share of 16.9% and 45.5% respectively while Netflix has 24.3%. Virtual rivals include Amazon, Hulu, Red-box Instant, X-finity Stream-Pix, I-Tunes, Love-Film, and cable TV companies. According to NPD Group, in the first quarter of 2013, 67% of U.S. streaming customers subscribed only to Netflix a significant drop from the 76% posted in the first quarter of 2012. Hulu Plus scored 10% of total subscribers among those who used only one service, while Prime made up just 2% of such single-source users. In the same NPD Group study, 10% of viewers used Netflix and Prime both for streaming movies and television shows. 8% used Netflix and Hulu Plus. Other indirect competitors are providers of home entertainment like cable television, satellite services, other unofficial websites with movies, you tube etc. 2.4.1 Comparisons with the 2 closest competitors Price per month Netflix 30 day free trial membership 3 types of plans, unlimited DVD only $7.99, unlimited streaming only $7.99 and 2 DvD at a time $11.99 Content selection Most extensive selection with thousands of tittles. Has licensing deals with CBS, ABC, Fox, NBC, Stars, BBC, Starts, BBC, Sony and DreamWorks contributing Amazon 30 day trial period Hulu 1 week trial membership $6.67 with two day free shipping for purchases made in Amazon $7.99 and there is a free Version with limited selection and fewer episodes of shows. Selection not as big as Netflix and shows movies released within the past year similar to Netflix. Own licensing deals to provide content from Fox, NBC, Disney, MTV and a bevy of cable channels. Updates library more frequently than its 7
  • 14. to the library. competitors. Customers get latest episodes faster and it’s a great alternative to cable. Devices Speed Features Is compatible with most devices like PC,x box 360, PS3, Nintendo, Wii, smart TV, Roku, Android, Blue ray player, Nook, tablets and iOS devices Netflix is more adaptive of the internet speeds and can work from slow internet and also fast connection as well Adverts free platform Not compatible with gaming devices. Lacks compatibility with Smart TVs and blue ray player Moderately adaptive of the internet speeds Moderately adaptive of internet speeds Adverts free watching experience Limited commercials in movies Ability to rate movies and receive personalized recommendation Plays newer movies and shows compare to competitors Ability to share with friends in social media Market shares Strengths Weaknesses Personalized profiles to enable parental controls for children and the whole family can share the subscription. Account for 89% of TV streams Largest library selection, strong brand, good and accurate recommender system, biggest number of subscribers, original production of shows, offers Netflix for kids, social media integration The selection is not as current as Hulu Account for 2% of TV streams Have a strong brand but associate with its other businesses apart from streaming , cheapest for people who prefer whole year commitments, high financial capability, unlike Netflix video streaming is only a small part of the business portfolio for Amazon Subscriber is forced to commit the whole year. Some selected tittles are paid per stream basis the Account for 10% of TV streams Latest movie selection, A good substitute for cable, Commercials appear while subscribers watch, the selection is limited unlike Netflix, 8
  • 15. subscription is not unlimited like Netflix and Hulu, prime subscribers use the free shipping service more than they use the video streaming (A Bernstein Research survey in July found that 29% of Prime subs don’t use the video option.) Table 2 Netflix Competitors analysis Netflix has begun investing in original programming, a tactic that stole the focus from content licensing in the subscription VOD category this year. Netflix successfully introduced multiple series, including “House of Cards” and “Orange Is the New Black,” while Amazon ordered a string of series in the comedy and kids genres. But all that activity has obscured the fact that competition over licensing has intensified during the same period, as both Amazon and Netflix seem to have moved away from an earlier emphasis on building the most comprehensive libraries to focus on snaring exclusive contracts that help them stand out in the marketplace 2.5 Segmentation Netflix market is very dynamic and constantly changing in response to changes in technology and consumer behavior. Netflix had 36.7 million subscribers as of June 2013 with age range from 18 years of age to 59. They spend 2bilion hours watching streamed video on hi-speed internet. There are multiple ways of segmenting the market in the video streaming industry but due to highly diverse nature of the customers who varies in age, income, geographic areas, education levels, and watching preferences vary with time, mood, beliefs, company etc. none of the segmentation will be totally Homogeneous within, Heterogeneous across, Measurable, Substantial, Accessible, Differentiable, Actionable and most of all Profitable. 2.5.1 Why Not? First a person may have extremely different preferences influenced by a number of reasons like company, mood, time, curiosity, new movies premier, awards like Emmy awards tends to influence peoples preference at particular times, what a customer sees as trendy on social media at the same time these preferences are not pinned to a particular kind of people so it will be impractical to obtain a homogeneous group within, heterogeneous across or even measurable. Second people change these preferences in split of seconds and that will make it very hard to make the segmentation accessible, differentiable, actionable and substantial enough to make profits because Netflix depends on the large number of subscribers to break even, much more to make profits and focusing on a particular segment will not make this achievable. 9
  • 16. 2.6 Targeting Netflix target a mass market of consumer-paid streaming subscription of TV shows and movies aiming to have the biggest market share with the largest number of subscribers it can get regardless of age, backgrounds, beliefs, preferences etc. Although Netflix target to recruit mass market it focuses on individual subscribers needs in order to retain them for a long time. The higher the number of paying subscribers the more Netflix can achieve return on heavy investment in content and technology because only low prices can be charged due to the nature of the industry and service. 2.7 Positioning Customer’s top priority is convenience, affordability, speed, personalization of the video streaming and high selection of titles. Netflix aim at being the top and only choice for its customers by providing a more personalized, fast, convenient, high selection and yet affordable online streaming service than all of the competitors. Figure 4 Perceptual Map (selection/personalization) 10
  • 17. Figure 5 Perceptual map (convenience/economy) Perceptual Maps key N=Netflix, H= Hulu, R=Red-box Instant, A=Amazon, C=Comcast (Xfinity Streampix) 11
  • 18. Values used to construct the perceptual maps Company Selection Personalization(a good recommender system) Convenience (speed, number of devices, how adaptive to internet speed) Affordability per month 1 Netflix Over 60000 Highly convenient $7.99 2 Hulu Between 30000&40000 Not very flexible to internet speed $7.99 3 Redbox About 4600 Excellent recommender system it uses both internal data and external data from social networks Great it uses internal generated data Redbox instant do not have a reliable recommender system compare to Netflix and Hulu Don’t play on as many devices as Netflix $6.00 4 Amazon About 40000 Comcast 1 Fifth of Netflix collection Do not play in apple TV and gaming devices Ties the service to the Comcast cable so not very convenient $6.67 5 Lacks a reliable recommender system. Do not have any recommender system $4.99 Table 3 Values used to construct the perceptual map 2.5.4 Research needs Additional research results needed to fully characterize the market will be the supplier information because there are many Netflix content suppliers and the information Netflix content license purchases. 12
  • 19. 3. Marketing Planning 3.1 Market size and growth potential Netflix market has had a consistent growth trend over the years. It started operations in 1999 with 101000 subscribers to more than 40.28 million streaming subscribers ending Q3 this year and 7.51 million physical DVD mail subscribers as of June 2013 (Yahoo: By numbers: Netflix subscribers) According to US census bureau as of June 30 2012 North America had a total of 273million people with internet access who can be Netflix’s potential subscribers. Netflix target the mass market both in United States and internationally and there is a promising future for growth for Netflix. 3.2 Strategic direction, targeting and positioning Netflix streaming service is positioned as the personalized low price instant movies and TV shows entertainment with the biggest collection targeting the mass market. Comparing to other competitors Netflix offers the watching experience without disruptions from other adverts compare to Hulu, It has the largest selection compare to all close competitors and customers can watch from a bigger variety of devices and internet connection speeds which puts it on top list when it comes to convenience. Every customer is served individually using a sophisticated analysis of big data and accurate recommender systems so that the service can be as personalized as possible while aiming at attracting as many subscribers as possible from all walks of life. 3.3 Marketing objectives 3.3.1 Marketing 1. Increase the brand awareness and goodwill especially in new international markets. 2. Highlight the competitive price and variety of content and the social media integration that Netflix offers compared to their competition by including these details in every message. 3. Increase number of subscription from 40 million people to 70 million 4. Improving the Instant streaming service in various aspects (discussed under product offering) 3.3.2 Media 5. Increase our share of voice by 40 percent by the end of the campaigns first year. 6. Increase the frequency rate of all current advertising messages by 50 percent and extend our reach by 10 percent. 3.3.3 Promotion & advertising 7. Reach 95 percent of the target audience at least twice with messages detailing Netflix‘s instant streaming. 8. Use mobile ads to increase awareness of Netflix‘s instant streaming service on particular mobile devices. 13
  • 20. 3.4 Marketing mix 3.4.1 Product offering strategies Netflix could have more recent movies in their collection in order to attract customers who only want to watch new movies online and could also get move recent TV shows for the customers who want current TV shows. Apart from that Netflix do not currently have online games and does not currently carry in their libraries. Sports instant streaming which have a great potential market since none of the close competitors provide this kind of service, between 21.6% and 22.4% of all Fans in Major North American Sports Leagues spend between 1 and 4 hours a week on internet search for the sports news and clips (sports business daily.com) Netflix has to keep expanding the collection it already has by bidding for more popular TV titles. Increase exclusive content from in house production. Collaborate with well-known actors to create more original series and release the seasons in less than 12 months that Netflix currently does. Netflix can do more to accommodate different internet speeds so that these customers can watch from anywhere they have an internet connection and can work with internet service providers so that customers may have special internet packages enable them watch their movies more comfortably with affordable internet service. Netflix should make it possible to pay using other medium for payments apart from credit cards like mobile money, cheques, western union any many other forms of payment to allow customers from countries where credit cards are not popular have access to Netflix too. 3.4.2 Promotion, communication and influence Netflix offers a free month trial for all of the new subscribers aiming at showing the high value of service before the subscriber commit to Netflix. The objective is to attract more loyal subscribers because people join Netflix with confidence of what they are purchasing which increase trust and loyalty among subscribers. This promotion sends a message that Netflix is confidence of the value it has to offer and does not hesitate to let people have the Netflix experience before they decide to buy subscriptions. 14
  • 21. Communication The main vehicles that will be used are the internet, Television commercials and Billboards. a. Advertising through mobile phones & tablets messages As of May 2013, 91% of American adults had a cell phone, 56% a smartphone, and 34% had a tablet computer. As of January 2013, 26% of American adults owned an e-book reader. The figure below shows gadget ownerships in United States. Ads will include notifications that the current free trial offer will run through the campaigns first year and all other Netflix new features. Adult gardet ownership overtime % of American adults 18+ who own each device 100% 90% 80% 85% 82% 64% 62% 65% 52% 56% 47% 50% 37% 40% 30% 45% 41% 61% 42% 43% 42% 34% 19% 19% 20% 2% 3% 5% 4% 8% Desktop computer Laptop computer 58% 55% 25% 10% 0% Cell phone 57% 57% 60% 20% 83% 84% 73% 75% 70% 68% 30% 91% 88% 88% 89% 87% 85% 85% 87% 10% 9% 18% 29% 31% mp3 player 34% 26% Game console e-Book reader 24% 18% Time Figure 6 Adult gadget ownership in America Source: Pew internet surveys 2006-2013 b. Social media and internet advertising Social media is extremely important for Netflix because the service is located on the internet the same place where the social media is. Netflix provides opportunities for its customers to share and interact with their friends in various social media while they are on Netflix account. Netflix also collect the social media information to better serve the customers and know how the customers perceive them. 90.1 percent of the U.S. actively use the internet. That is a huge coverage rate. The biggest advantage to internet advertising for Netflix is one click on an ad and the potential consumer is taken right to the product. Internet users have come to accept and even expect banner ads. The figure below shows forecasts and estimated of sales as outcomes of banner and search Ads in US. 15
  • 22. Fan chart forecast of U.S. search and banner ad sales, 2007-17 Figure 7 Sales forecast resulting from online banner Adverts Source: Mintel/IAB/PwC c. TV commercials Based on the America‘s commercial broadcast television industry‘s (referred to as TVB) media comparisons study 2012, Television reached more people than the internet (88.3% > 73.1%). However, considering that the location of the product is on the internet, we want to focus a good part of the advertising to internet ads as well. Television will have more money budgeted to it, due to the production costs 88.3 Television 73.1 Internet 58.8 Radio 36.1 Newspaper 27.8 Mobile Phone 24.8 Magazines Tablet 11.7 % Reached Yesterday Persons 18+ Figure 8 Media comparisons study 2012 Source: TVB media comparisons study 2012 16
  • 23. d. Additional promotional tools. QR codes QR codes are becoming popular as smart phones become more standard. Netflix may agree with a candy company to put Netflix QR codes on their movie size candy. They can also arrange for the QR codes to be put on pop-con packages that are used in movie theatres even those sold in stores. The QR codes will lead customers to Netflix.com and YouTube clips of commercials. Netflix can also run a follow up campaign for Netflix users to submit their own video of them using or advertising the Netflix. If their video passes YouTube regulations, those videos can be put on YouTube with a QR code attached the customers may be rewarded with discounted subscriptions for a month or two. This creates consumer excitement and involvement. Example of QR codes. These are machine-readable codes consisting of an array of black and white squares, typically used for storing URLs or other information for reading by the camera on a smartphone Figure 9 Example of QR codes Sponsor Movie related events Some of the major Film related events are Sundance Film festivals in US which is held in late January every year in different big cities in US. International Film festivals in Rotterdam Rotterdam Film Festival is one of the most important film festivals in the world focusing predominantly on world and international premieres with a large art-house and experimental focus. Other film festivals are Slamdance, Raindance, Rendez Vous in France, Gotterburg international for Scandinavia. Other events that Netflix can sponsor are movies and entertainment awards like Emmys, BET etc. Netflix will gain more awareness in the market and get to advertise to the customers who have actual interest in movies. Use of Netflix data for Advertising and service improvement Netflix use subscribers e-mail address to send newsletters, messages about new Netflix features, Netflix special offers, promotional announcements, consumer surveys and other correspondence and marketing concerning their services. The information about online activity, watching preferences, internet speed and user devices can be used to determine subscribers general geographic location for the provision of localized content, enforcing Netflix terms (such as determining eligibility for free trials, age restrictions), providing recommendations on movies & TV shows, personalizing services and marketing to better reflect particular interests, helping Netflix quickly and efficiently respond to inquiries and requests and otherwise analyzing, enhancing, administering or promoting service offering. Netflix also uses the information to provide analysis of their users in the aggregate or in anonymous form to prospective partners, advertisers and other third parties. Information from Social Networking sites is 17
  • 24. used to better improve the Netflix personalized experience for the subscribers and their friends if they agree to share such information. The consistent message Netflix sends with all communication is “watch what you want when you want at affordable price” 3.4.3 Price Netflix pricing objective is gaining the maximum market share for Netflix which translates to customer attraction and retention. Their pricing is also set to match the competitors where they charge $7.99/month for unlimited streaming, the same price as Hulu while Amazon prime $6.50/month but the customer incurs extra cost for some individual titles. There have not been a lot of price changes with the online streaming industry and all the major players keeps the price at the similar margin which means if any one of the competitors will change the price Netflix is likely to react if not changing the price will result to lost subscriptions. Netflix changed its prices and separated the two products lines of streaming and DVD rental by 60% increase in price for customers who wanted both services. Netflix has ever since maintained its price at the industry average. Netflix does not practice price differentiation because it targets the mass market 3.4.4 People Netflix should have highly qualified and fast customer service people to take care of the customers because that is the only point of contact with the customers. Netflix respond within 5 minutes of a call to all customers and this could be improved further to 3 minutes. 3.4.5 Place & Process, Process in which customers go through to subscribe is made simple and self-service. It takes a few minutes to create the Netflix account and to start watching instantly and it all reflects the convenience aspect of the service. 3.4.6 Distribution Netflix accommodate different internet speeds so that the customers can watch from anywhere they have an internet connection and in order for them to do this Netflix is strategically establishing relationships with ISPs because there is a threat that the government may not honor the internet neutrality law which will allow ISP to charge customers differently with different content which will hurt Netflix business. Netflix can also partner with companies to develop Netflix programs specific to their platforms that will come pre-installed on all their devices, further partnership can be done with cable and gaming companies to develop instant streaming option for video games. Content providers also should be approached for exclusive rights to content before the competitors do the same. 3.4.7 Physical evidence Online movies and TV shows streaming primary physical evidence is the Netflix website where people log in to watch their movies and Netflix apps which enable people who use phones to access Netflix get that experience, the website should be improved constantly and more user friendly so that subscribers can search for content more easier and prevent any possible downtime. 18
  • 25. 4. Implementation and Control 4.1 Strategy implementation details Table 4 Implementation blue print marketing Marketing Content mix (Kelly Bennet) (Sarandos Ted) Product offering Reducing the window from the time movies are released to the time they are adopted by Netflix Library from 1 year to six month. Expanding the video library to 70000 tittles Promotion One month free trial. Talent (Tawni Cranz) Communica tion (Jonathan Friedland) Product (Neil Hunt) Introducing video game streaming and sports instants streaming, Streaming and Partnerships (Greg Peters) Improve the movie streaming speed. QR codes Sponsor Movie related events Finance ( David Wells) Objective fulfilled Introducing new payment methods especially for internationa l market. 1,3,4, 1,3,5,6,7,8 Advertising through mobile phones & tablets messages. Social media 19
  • 26. and internet advertising. TV commercials People Price Train customer service to achieve a 3 minute return call per customer. 4 Communica te the price stability and the one month free Have good price plan which do not change suddenly Distribution Place Strategic partnership with ISP to ensure smooth distribution Website improvemen ts 2 3,4 4 20
  • 27. 4.2 Time lines Implementation time table year 2014 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Get recent movies and expand library, be more adaptive of internet speeds for customers, continue the free month trial membership, banner advertising (partnerships ISP, content providers, gaming companies), Adding features to the website and Netflix apps Start a sports section within the library Add new payment methods for international customers text Adverts through gadgets like smartphones and tablets once every two months awareness TV commercials new features sports& payment forms TV commercials QR codes Sundance festival, and other European festivals Emmy awards Customer service improvements Figure 10 Implementation time line 21
  • 28. 4.3 Evaluation Evaluation is important for us to determine which promotion or advertisement have had bigger impact for our sales and brand awareness which are the top priority. A pre and post evaluation will be conducted for each of them to measure the effects and determine whether the campaigns were successful and to what extent they were successful. We will select small representative samples groups and test consumer perceptions for the campaigns aiming at improving brand awareness and image, and for the campaigns aimed at improving sales new sales will be allocated to particular campaigns. 4.3.1 Internet adverts A click counter will be used to assess which sites are being visited most the Internet banner adverts. General site counter that will let us know the amount of traffic the site is receiving on daily basis and how many of the clicks resulted to membership subscriptions. A Focus group will be used to assess the consumer’s perceptions on the Netflix adverts they see from the internet. 4.3.2 Event sponsorships During the event sponsorships there will be promotional codes distributed to interested people while different adverts play on sponsor screens emphasis being the free month trial. These codes will be used to give the new customers discounted prices for the second month after joining and the count will be done on the codes which were used to subscribe and these will be a good indicator of the effectiveness of the method. Since the sponsorships are also aimed at improving brand images Netflix will conduct a survey after the events to find out the impact. 4.3.3 TV advertisements With the help of stations a number of viewers can be determined. The commercials will contain a promotional code and the customer will use the codes to get extra benefits on Netflix website like the discounts which will be a way to track effectiveness of such advertisements. Surveys will be conducted to know the customer perception of the advertisements. 4.3.4 QR codes These codes will be tracked over the internet to know how many of them were put to use. To find out how customers perceive the QR code advertisements and promotions a survey will be conducted. For other service improvement campaigns like forms of payments, speed, increased library selection, and introduction of sports content will be evaluated periodically using online survey which will pop up before or after starting a movie. These various mentioned evaluation techniques will be able to tell whether the marketing campaigns are successful. If the some of the campaigns are not effective will be stopped in the next period and new strategies will be applied. 22
  • 29. 4.4 Closing summary Netflix have managed to position their brand as affordable, convenient, with largest library and most of all personalized. They have successfully stocked their company with the widest range of films and the first to have a good recommender system, ahead of its competitors they have integrated their service with the social media. By starting their instant streaming product line as soon as broadband internet was able to support it, they not only stayed ahead of the competitive game, they‘ve monopolized the field. Now that the instant streaming feature has become so popular, many are trying to imitate and enter into the market. By implementing the creative strategies suggested, Netflix will secure their place on top. Through increasing the reach of their instant streaming message, eventually every home will have a Netflix subscription. Netflix will not only be a choice but the choice for everyone. 23
  • 30. 5. References Company facts. Netflic.com, Retrieved November 29, 2013 https://signup.netflix.com/MediaCenter/Facts A brief history of the company that revolutionized watching of movies and TV shows.Netflix.com Retrieved November 29, 2013 https://signup.netflix.com/MediaCenter/Timeline Netflix Inc. (NFLX: NASDAQ GS): Netflix, Inc.'s Annual Revenues. Businessweek.com November 29, 2013 Retrieved November 29, 2013 http://investing.businessweek.com/research/stocks/earnings/earnings.asp?ticker=NFLX Hastings R. and D. Wells. Shareholders letter”. Shareholder.com October 21, 2013 Retrieved November 29, 2013http://files.shareholder.com/downloads/NFLX/2745605111x0x698481/ecfe1ab4-66f5-4e23a64a-1ca025216e5e/Q313%20Earnings%20Letter%2010.21.13%2010.30am.pdf Netflix mission statement. September 6, 2006 retrieved November 29, 2013 http://www.topix.com/forum/com/netflix/T636FMV2H9M888KP1 Krengel A. et al. Capstone final report: Netflix company analysis” Santa Clara university 2010 retrieved November 29, 2013 http://www.scribd.com/doc/94610526/NFLX-Capstone-Final-Report Krämer, J; Wiewiorra, L. & Weinhardt, C. (2013): Net Neutrality: A progress report. Telecommunications Policy 37(9), 794–813 Capriogrio L. Netflix incorporation presentation. October 16, 2012 Retrieved December 1, 2013 http://prezi.com/pv5lokny_evj/strategy-netflix/ Katje C. Amazon vs. Netflix: Battle to Become Streaming King Heats Up. August 2, 2013 Retrieved, December 1, 2013 http://variety.com/2013/biz/news/amazon-turning-svod-space-into-a-two-company-race-1200571585/ "Key ICT indicators for developed and developing countries and the world (totals and penetration rates)", International Telecommunications Unions (ITU), Geneva, 27 February 2013 Retrieved December 1, 2013 Curtis J. Netflix vs. Hulu vs. Amazon Prime comparison. Retrieved December 1, 2013 http://www.moneycrashers.com/netflix-hulu-amazon-comparison/ Comcast gives subscribers one more reason to quit Netflix. February 21, 2012 Retrieved December 1, 2013 http://gigaom.com/2012/02/21/comcast-streampix/ Redbox Instant vs. Netflix: The winner? Don’t waste your money. March 18, 2013 Retrieved December 1, 2013 http://www.wcpo.com/money/consumer/dont-waste-your-money/redbox-instant-vs-netflix-thewinner Robson W. Comcast Streampix, No Threat to Netflix. Audioholics.com February 24, 2012 Retrieved on December 1, 2013 24
  • 31. http://www.audioholics.com/news/comcast-streampix-no-threat-to-netflix Internet Usage Statistics-The Internet Big Picture World Internet Users and Population Stats Retrieved on December 2, 2013 http://www.internetworldstats.com/stats.htm Trend Data (Adults) Retrieved December 2, 2013 http://www.pewinternet.org/Static-Pages/Trend-Data-(Adults)/Device-Ownership.aspx Media comparisons study 2012 Retrieved December 2, 2013 http://www.tvb.org/media_comparisons/1247377 Internet Advertising Search and Banner April 2013. Mintel/IAB/ PwC. Retrieved December 2, 2013 http://academic.mintel.com/display/662035/?highlight=true#hit1 Essential 100 Film Festivals Part 1 [2013] Retrieved December 02, 2013 http://www.raindance.org/essential-100-film-festivals-part-1/ Bledsoe K. & A. Phenix. Netflix Promotional Campaign” slideshare.com April 28,2011 Retrieved December 1,2013 http://www.slideshare.net/ashleyphenix/netflix-promotional-campaign Austin E. Netflix marketing plan” Retrieved December 1, 2013 http://aboutelizabethaustin.files.wordpress.com/2011/08/netflix_marketing_plan.pdf Krite L. 2013. Netflix strategic plan” May 2, 2013 Retrieved December 1, 2013 https://lpelin.expressions.syr.edu/trf483/files/2013/05/final_strategic_report.pdf Chiang J. 2013. DVD, Game & Video Rental in the US. June 2013. IBISworld.com Netflix Privacy policy. September 11, 2013 Retrieved October 30, 2013 https://signup.netflix.com/PrivacyPolicy 25