Netflix Marketing Plan and SWOT Analysis

Netflix Marketing Plan and wad AnalysisBrand orCompany DescriptionNetflix is subscription service on the internet that offers a salmagundi ofTV shows and word pictures. Netflix is a forerunner in the internet talking to of TVshows and movies, launching its cyclosis service in 2007. Since this prison term, the family has fortifyed a wide variety of internet-connected devices and haslicensed increasing amounts of glut that enable consumers to savour theirfavorite TV shows and movies no matter where they are at beca part they git entry route this means on their TVs, computers or mobile devices. As a pull up stakes ofthese efforts, Netflix has experienced going consumer acceptance of andinterest in the deli very of TV shows and movies outright totally over the Internet(Netflix, 2018).Core crossroads or functionSubscribers can watch un specifyed TV shows and movies instantly. Con tennertcan be streamed over the Internet to their TVs, computers and mobile devicesand, in th e United States, subscribers can alike receive standard definitionDVDs, as good as Blu-ray discs, delivereddirectly to their homes. Netflix merchandises its service through various(a) channels, including online advertising,broad-based media, much(prenominal)(prenominal)(prenominal) as television system and radio, as well as various strategicpartnerships. In admittance to various marketing strategies, the follow offersfree-trial memberships to new-sprung(prenominal) and rejoining members. According to Netflix,rejoining members are an important de nonation of subscriber additions (Netflix,2018).A BriefHistoryNetflix isan American entertainment lodge founded by Reed Hastings and MarcRandolphon August 29, 1997, in Scotts Valley, California. The companyexpanded into film in 2016 as well as tv production and onlinedistri stillion. The company is headquartered in Los Gatos, California. As ofJanuary 2016, Netflix is operating in over one hundred ninety countries and has greatl yexpanded the production of both film and television series. Netflix released anestimated 126 original series or films in 2016, more(prenominal) than any different network or furrow channel. As of January 2018, Netflix had 117.58 gazillion payingsubscribers worldwide, including 54.75 million in the United States (Netflix,2018).Key currentcompetitorsThe market for entertainment video is competitive and changes rapidly.Competitors bugger off the exponent to launch new employmentes at comparatively low prices. Many consumers maintain subscriptions to multiple entertainment videoproviders at once and can easily shift from one provider to an separate. Netflixcompetitors entangle multichannel video programming distributors with free TV everywhereand video-on-demand field of study including cable providers, such as Time Warner andComcast. Direct broadcast satellite providers, such as DIRECTV and EchoStar, aswell as telecommunication providers such as AT&T and Verizon, are also sign alisecompetitors for Netflix. Internet movie and TV discipline providers, such asApples iTunes, amazon.com, Hulu.com and Googles YouTube are also sources of competition.DVD rental outlets such as smash hit and Red-box also arealso included in the tendency of key competitors that Netflix faces (Netflix,2018).SWOTAnalysisSWOTAnalysis Strengths1.Brand Name after(prenominal) ten years, Netflix has become the sole brand realize for onlinestreaming bailiwick with a share price increase of over 6000% since 2007(Bradshaw& Bond, 2017). Often consumers are much more likely to gowith a brand name they know and trust than an off-brand that may or may not bea better value for their money. This is one way Netflix can take advantage and growtheir backup. Being the known familiar service provider puts them at agreater advantage of not only keeping their customers but attaining new ones.2.Large customer baseThrough serving 190 countries, Netflix has rag to over 100 millionsubscribers. This strength gives the company talk terms power when in talkswith studios to secure exclusive bailiwick (Bradshaw& Bond, 2017).Thepopularity and contrivance of Netflix is one of its greatest strengths. Thismakes them able to accommodate and appeal to a very large customer base and hasthe ability to besides expand and develop in more areas, including partnershipsand expansions in various areas and with various companies in a variety ofcountries. Growth testament likely continue as the company goes forward andcontinues to expand. Customers are opting for the convenience of consumingentertainment online and Netflix continues to expand inter bailiwickly.3.Original contentThrough careful acquisitions, Netflix have secured numerous originalshows that have appealed to audiences. In 2017, two Netflix shows are sopopular they have pushed subscribers from 83m to over 100m in one quarter(Bradshaw & Bond, 2017). The House of Cards was a game qualifier for Netflix.All episodes of the first sea son of the show were released at the same time,and the result of the critics was overwhelmingly positive. The House of Cardsnot only attracted many new users but also proved that the key to their customersloyalty is a ridiculous and abundant content library. The company continues toworking on adding new shows such as 30 kids shows, ten new feature films, 12documentaries, and ten stand-up comedy specials (Netflix, 2018).SWOTAnalysis Weaknesses1.Cost of original contentWhile its original content creates a competitive advantage for thecompany, the address continues to growin tell apart tosupport this content.In 2017, it is expected for Netflix to lay $2.5 jillionsolely onsecuring original content rights.To keep prices competitively low,Netflix depart needto find a balance between maintaining riperelationships with the distributors and aggressively negotiating contentlicensing costs with them. This type of dependence can result in avulnerability that could prove to be very costl y (Bradshaw, 2017).2.Lack of rights to original contentUnlike many traditional television studios, Netflix does not own most oftheir original programming. Due to this, rights usually cease after a year andthe original content can be shown on rival services (Bradshaw, 2017). This isan area that serves as a capableness weakness especially related to retainingcustomers and keeping costs low.3.Environmental costNetflix has been ranked poorly in terms of environmental consciousness. Thishas given them toughened publicity for the company as rival competitors such as Amazonand Facebook use over 40% renewable energy with their services (Lewis, 2016).SWOTAnalysis Threats1.Increased competitionFacebook is the latest to try and take on traditional media by launchingits own original content. Amazon, Hulu, HBO, and YouTube are all competing foraudiences to subscribe to their platforms. For Netflix, this impart continue todevelop as more companies propensity to buy the latest original cont ent exclusivelyfor their platform (Bradshaw, 2017).2.digital PiracyFor more than 30 contentproviders, including Netflix, piracy has led to 5.4 billiondownloads ofmedia content in 2016 alone. This threatens Netflixs business model andability to fund content in the emerging (Opam, 2017). The ability for viewers toget the same content basically for free is a huge potential threat forNetflixs shtup line and ability to continue to dominate the market.SWOTAnalysis Opportunities1. enlargement into ChinaDifficulties with licensing has left Netflix unable to enter Chinathrough traditional means. The company essential find a joint-venture to capitalizeon the vitamin D millionChinese users who currently stream media content(Russell, 2017).2.Partnerships in atomic number 63To meet new European laws, Netflix can partner with the BBC and Canal cocksure to gain access to a wealth of native-language European content and growcustomers in local markets (Murgia & Bond, 2017).3.Growth of technology With the growth of streaming content, Netflix must continue to come upwith new ways to get out customers to access their content and provide furthercompetitive advantages. A gro decoyg market for content is foreign-languageprogramming. Partnerships with local-language content will suspensor Netflix to beable to be a rival for local streaming services and help them to be a leaderamong this (Mintel, 2016).MarketingPlan FocusBased on my SWOT analysis, I believe there is an opportunity to expandinternationally by partnering with telecommunications companies such as Samsungto make the application readily open for customers on their devices inoverseas markets. For this marketing plan, Ive come up with an idea toincorporate the Netflix application into Android devices. This would target a peculiar(a) demographic, and could help to begin to solve the issues Netflixfaces internationally. The app would have early childhood discipline moviesand songs that would help little children and as well the already existing listof unending movie for all ages. SegmentationApproachFor this marketing plan, Ive opted for a straightforward demographicapproach to segmenting the market given my desire to target a specific agegroup. I considered a behavioral approach based on past purchase history ascaptured via use of the McDonalds app. However, the app was only introduced inlate 2015 and age is not captured in the registration process (unless a socialmedia login is used). Furthermore, I dont want to limit my audience to barelyexisting customers. Given the broad appeal of the McDonalds concept and itsnational footprint, I did not feel geographic targeting or formal psychographictargeting was needed. target DefinitionMy target for the Netflix K is families with young children andadolescents ranging from the age of 2 to 12 years old. An interest in viewingand technology would allow for further media targeting.PositioningStatementNetflix KA time for parents tohave look moments with their children while watching them learn, grow andexcel academically in the seclusion and comfort of home.MarketingMix DiscussionMarketingMix ProductThis marketing plan is centered around education and the benefit offamilies glide slope together and sharing quality moments with the thrill of oldfavorites and new enkindle learning opportunities. The core idea is to useadvertisement to create awareness in between episodes and popups advertisementwhen the application is not in use or in between episodes when in use. With the already exiting approach of havingit getable to Android devices it would help market itself by being readily in stock(predicate)MarketingMix PriceNetflix strategy would be to retain its already existing customer baseby offering 10% discounts on yearly subscriptions and 15% discount to customersthat have been a Netflix member for more than 3 years. Included in the pricenew series would be offered at a 50% off rate compared to its competitors suchas Hulu.com and Amazon Prime in order to be able to win and secure futurecustomers. This is characterized as skimming as they are move to takebusiness from their competitors by offering the same service at a reduced rate.MarketingMix PromotionIn addition to the promotional pricing diffuse discussed above, there would be an opportunity to rescue a promotion code to save money on a family night out package based onlocal on tap(predicate) retailers. This would be a way for Netflix to partner withlocal companies in order to help them gain acceptance internationally.MarketingMix PlaceI would make use of adedicated Netflix K microsite where customers could go to learn more or so thepromotion and app and to have the possibility to win promotion codes and saveadditional money on family nights out as well as the possibility of earningmonths free towards their Netflix subscription. This would also encourageadditional downloads of the Netflix K app and promotion of a larger and growingcustomer base. Poten tial mastery MetricsCustomer SatisfactionKnowing if people are actually satisfied with the service or product isvery important. Customer enjoyment can be a helpful metric in heada marketing campaign. Getting feedback directly from customer is an easy way tomeasure satisfaction. One way to do this would be to add a standard Googleconsumer survey to the app or site for free. With a few dim-witted questions, youcan find ifyour customers are satisfied with the app or site, what theydont like about the app or site, and whether or not they will continue usingthe app. user Engagement Tracking visits and signups isimportant, but focusing on how much time a user spends on your website or appis important as well. This has the ability to provide a realistic view and canbase future success around this consideration.ProgressIt is always important to keep mournful forwardand having a forward momentum. If a company is making virile progress on a dayto day basis, then it will likely be creati ng new opportunities and growing thebusiness overall. This will allow the company to accomplish its overall goaland keep them on track. planetaryConsiderationsNetflix faces the challenge of being able to make their internationalsegment profitable. Netflix will need to invest in local content and betterstreaming quality over low bandwidth connections in order to attractsubscribers. Netflix will have to expand this base quickly in order to be ableto recover the associated costs. Netflix will also have to consider thecompetition of other providers such as Amazon and YouTube who are also faceto capture this segment of the market. Another challenge Netflix faces relatedto international markets such as India, is lower internet penetration andexisting connections with low bandwidth. These factors limit its targetconsumers in these countries to the small section of the population that haveaccess to high speed internet. Viewing preferences is another considerationthat will have to be addre ssed as these differ from country to country and evenbetween different regions of the same country. In order to attract subscribers,Netflix need to have a broad content library catering to the preferences ofthe assorted audience (Bradshaw & Bond, 2017).ConclusionThe Netflix K marketing plan should be ratified for funding because ithas the opportunity to generate a great deal of business and success inentering many foreign markets not antecedently entered in. Associating Netflixwith current technology such as Samsung and then appealing to a customer baseof families with children has the possibility of building a strong businessbase in this target population and areas abroad. This will also help buildaffinity and rapport with local businesses in foreign destinations aidNetflix to become a top international company not save a top American company. ReferencesBradshaw, T. (2017)Netflix boosted as viewers outside the US tune in.Financial Times.Retrieved fromhttps//www.ft.com/content/ e8c742f2-6b34-11e7-b9c7-15af748b60d0.Bradshaw, T., and Bond,S. (2017). Netflix looks to become worlds entertainer as it hits milestone.Financial Times.Retrievedfromhttps//www.ft.com/content/06b55bb8-6d0c-11e7-bfeb-33fe0c5b7eaa.Lewis, D. (2016). Will the internet of things sacrifice or save the environment? defender Business.Retrieved from https//www.theguardian.com/sustainable-business/2016/dec/12/will-the-internet-of- things-sacrifice-or-save-the-environment. Mintel, J.(2016).Music and Video Streaming-UK-April 2016.Mintel Academic.Retrieved fromhttp//academic.mintel.com/display/770307/.Murgia, M., and Bond, D. (2017). Netflix seeks European summit meeting in local content push.Financial Times.Retrieved from https//www.ft.com/content/c286c25e-04d5-11e7-aa5b-6bb07f5c8e12. Netflix Inc. businessdescription. (2018).CSIMarket.com.Retrieved fromhttps//csimarket.com/stocks/NFLX-Business-Description.html.Opam, K. (2017). HBO,Netflix, other Hollywood companies join forces to fight pirac y.TheVerge.Retreived fromhttps//www.theverge.com/2017/6/13/15791688/hbo-netflix-hollywood-ace-fight-piracy.Russell, J. (2017).Netflix enters China via licensing deal with top video streaming serviceiQiyi.Tech Crunch.Retrieved fromhttps//techcrunch.com/2017/04/25/netflix-china-iqiyi/.