A marketing plan for Netflix (Netflix background and history, situation analysis, marketing mix, evaluation and implementation strategy)

1. Marketing Plan
By Evelyne Ringi
05th December 201

2. What we Do
on demand Internet streaming
media & DVD rentals

3. Incorporated in Delaware
in 1997 and Started with
digital based DVD rental
in 1999
. . .Where we come from

4. [SERIES
NAME], [VA
LUE]
45
40
35
Subscribers Millions
41 countries
Revenue of 4.4
billion by the end of
2013
30
25
20
15
10
5
0
Source: thelandofmaps.com
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

5. Where we want to be. . .
Be present in as many countries as possible, increase subscription number and
have the largest market share, make profits from our international markets.

6. Situation analysis
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning

7. Situation analysis
Economical, social cultural, technological, political and legal factors
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning
Technological factors
• The fact that they do not have their own web
services
• Expenses that they have to incur to keep up the
tech changes
• New innovation might put them out of business
ex. Now DVD by mail product line is on decline
Political
They have a PAC(Political action committee) for
lobbying purposes eg.
The Network Neutrality issue
Video Privacy Protection Act (VPPA)

8. Situation analysis
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning
Strengths
largest Streaming library
Production of original content
Strong Brand Recognition
Weaknesses
Does not have latest content
Opportunities
Product Line Expansion of original
shows
More expansion in International
market.
the live sports, and online games
Threats
Network Neutrality Principal issue
web services from Amazon (a
competitor)

9. Situation analysis
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning
Close competitors Amazon, Hulu and others are Red-box Instant, X-finity
Stream-Pix, I-Tunes, Love-Film, and cable TV companies.
Netflix
Hulu
Amazon
Market share
67%
10%
2%
Price per month
$ 7.99
$7.99
$6.77
Strengths
Largest library strong
brand, recommender
system
original production of
shows
offers Netflix for kids,
social media
integration
Latest movie selection Cheaper of the three
A free shipping offer
Weaknesses
No latest movies
No large library
selection
Still use commercials
1 Year commitment
Some titles are paid
per click

10. Situation analysis
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning
Netflix target a mass market of
consumer-paid streaming
subscription of TV shows and movies
Why?
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.

11. Situation analysis
Economical, social cultural, technological, political and legal factors
• Environment
• SWOT
• Competitors
• Segmenting/Targeting
and positioning
Netflix target a mass market of
consumer-paid streaming
subscription of TV shows and
movies
Strengths
largest Streaming library
Production of original content
Strong Brand Recognition
Weaknesses
Does not have latest content
Opportunities
Product Line Expansion of original
shows
More expansion in International
market.
the live sports, and online games
Threats
Network Neutrality Principal issue
web services from Amazon (a
competitor)
Amazon, Hulu, Red-box Instant, X-finity Stream-Pix, I-Tunes, LoveFilm, and cable TV companies.

12. Product
Price
Promotion
People
Netflix
Marketing
Mix
Place
Physical
Evidence
Process

13. Marketing tactics
Product
Price
Promotion
People
Netflix
Marketing
Mix
Place
Physical
Evidence
Process





Product strategies
Add more recent movies
Sports instant streaming
Expanding the library
collection
Accommodate different
internet speeds
More medium for
payments

14. Marketing tactics
Product
Price
Promotion
People
Netflix
Marketing
Mix
Place
Physical
Evidence
Process
People strategies
 Increase the customer
service team
 More training for the
people
 Advanced tools & Soft
wares for customer service

15. Marketing tactics
Product
Price
Promotion
People
Netflix
Marketing
Mix
Place
Physical
Evidence
Process
Process strategies
 Simple self service
 Easy to access the site and
apps

16. Marketing tactics
Product
Price
Promotion
People
Netflix
Marketing
Mix
Place
Physical
Evidence
Process
Physical evidence strategies
 More features for the
Netflix website

17. Marketing tactics
Product
Price
Promotion
People
Netflix
Marketing
Mix
Place
Physical
Evidence
Process
Place strategies
 Netflix place is the internet
and since they are
currently provided these
by Amazon more can be
done to establish own
facilities

18. Marketing tactics
Promotion strategies
Product
Price
Promotion
People
Netflix
Marketing
Mix
Place
Physical
Evidence
Process
 Continue the 1 month free and
communicate it in all
advertisements
 Mobile texts once every two
months
 Social media and Internet
banner Ads TV commercials
emphasis on free month trial
 QR codes on movie size candy
and pop con packs twice a year
for 3 months period each
 Sponsor film festivals like
Sundance, Slamdance etc. and
Emmy awards as well

19. Marketing tactics
Product
Price
Promotion
People
Netflix
Marketing
Mix
Place
Physical
Evidence
Process
Price strategies
 $7.99 should not be
changed abruptly and
proper communication
should be done before the
changes

20. 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
Customer service improvements
Emmy
awards

21. Evaluation

22. By implementing these marketing
strategies we hope we will secure
our top position in the industry and
through increasing the reach of
the instant streaming message,
eventually every home will have a
Netflix subscription. Netflix will
not only be a choice but the choice
for everyone.

23. Questions?