Marketing Strategy of Netflix – Netflix Marketing Strategy: In 1997, the company was founded by Reed Hastings and Marc Randolph in Scotts Valley, California, Netflix is now present across more than 200 countries and has more than 83 million customers and is, therefore, the leading provider in the world of on-demand video, on-demand video, streaming movies and TV series.
This is a course Over the Top (OTT) streaming service with a subscription-based streaming service as its main business with a wide selection of television and films the majority of which are produced and made in-house.
Did You Know About Netflix?
Company : Netflix
CEO: Reed Hastings, Ted Sarandos
Founder: Reed Hastings, Marc Randolph
Year founded: August 29, 1997
Headquarters: Scotts Valley, California
Annual Revenue : US$25 billion
Profit | Net income : US$2.761 billion
Products & Services: Streaming of e games, educational content, live streams, news, possibly even podcasts etc.
Netflix Fun Fact : Netflix was originally called “kibble.” It’s technically been around longer than Google. Netflix is responsible for 15% of the world’s internet traffic.
Segmentation, Targeting, Positioning in the Marketing Strategy of Netflix
Since 2016, Netflix has stopped dividing its subscribers by location and is now taking its entire 93 million international members as one unifying audience or group of people who share similar TV and movie preferences for shows. Its brand describes these communities as “taste communities” and there are about 1,300 members. Netflix has always utilized such clusters that the brand, in its language calls “Taste Doppelgangers” around the globe, which refers to that person who is across borders and has the same taste in the genres of TV shows.
Netflix employs its distinct targeted technique to build its repeat customers and loyal customers via its subscription-based business model.
It is positioned as a subscription-based video-on-demand platform that can be accessed from any location at any time via tablets or mobile phones It offers a rich experience and high-quality broadcast video that is designed to satisfy the desire for digital consumption of its viewers.
“ We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact.”
“Becoming the best global entertainment distribution service. Licensing entertainment content around the world, creating markets that are accessible to filmmakers, and helping content creators around the world to find a global audience.”
“See What’s Next”
Competitive advantage in the Marketing Strategy of Netflix
The simplicity of the User Interface
Both the cash and content positioning would be hard of any use if nobody wants to use the Netflix platform. Perfecting the user experience has been the priority for Netflix over the years. The simplest interface available on all the platforms such as smartphone, tablets, laptops, or TVs is one of the major distinguishing factors for the brand.
Content is king
Netflix does not just throw together low-quality videos and hope for the top quality. Millions of dollars are invested in content production and bringing top-quality directors, writers, and actors to provide the best quality work.
Netflix is now viewed as an entertainment service of high-end quality, similar to the way HBO was thought to be ago in the golden age of high-end cable networks.
Netflix is looking to bring original content thanks to its massive budgets of production to yield huge dividends in the future.
BCG Matrix in the Marketing Strategy of Netflix
Its worldwide streaming segment of Netflix is part of”stars,” or the category. In the global streaming market, Netflix occupies the largest market percentage.
Contents that have helped increase the number of subscribers to Netflix include Stranger Things such as the house of cards, The Crown, Orange is the new black, 13 reasons to Glow, and last but not most important Sacred Games which was recently launched in India in co-production with Phantom Movies comes under the”star” segment of the brand.
Therefore, International streaming seems to be the main focus for Netflix.
streaming (U.S.) was an income Cow for this brand, while DVD sales for the brand appear to be in the”question mark” category because its share has declined following the courses subscription models came into the picture.
Distribution strategy in the Marketing Strategy of Netflix
Internet is the primary way for brands to get to the people who are forward, thus optimizing across many media, continuous and continuous video streaming capability of downloading that is available via Wi-Fi and mobile networks are a few important attributes that will increase the acceptance of the platform on the market.
Netflix strives to provide the best quality video on a specific Bandwidth, and the best audiovisuals even with a poor network. The website is accessible via the web and on mobile apps.
Brand equity in the Marketing Strategy of Netflix
Netflix has increased 31 spots over the past year’s ranking to achieve 61 first place on Brand Z’s list of top 100 brands. The brand has grown by 73 percent in value for its brand since 2017, to US$20.8 billion.
In the past, Netflix has been portrayed as a pioneer in the field of entertainment. With a staggering market value of $5.6 billion. The audience of the global brand is expanding rapidly. As part of the expansion of the brand, Netflix has created Flixchat, an application that will promote the essential brand name, message, logo, and packaging.
Competitive analysis in the Marketing Strategy of Netflix
As a market initiator, Netflix at its inception had no competition. The times have changed and with the internet becoming accessible in the third world. Competition has dramatically increased for the brand in the past few years, with regional and local players seeking to market their original content.
Major competitors for the brand include:
- Amazon Prime
- Direct TV
- Sony PlayStation Vue
- HBO Now
- Sling TV
- TV Channels
- Piracy (One of the biggest threat for the brand which dearly affects its revenue across borders)
The majority of these competitors are based on particular niches, broadcasting original content via their platforms, producing with large production companies and aggressively acquiring film rights, etc.
Market analysis in the Marketing Strategy of Netflix
With the rise of the internet and the market for smartphones growing rapidly, the market is in good health and is set for a bright future as it has a huge untapped market in less developed and developing nations.
The discussion of India with the government focusing on the importance of Digital India and rural penetration of the Internet and the data revolution brought about through Jio has led to an increase of a significant amount in monthly watch time of customers across the country.
To remain at a competitive level in the Indian marketplace, Netflix has already co-produced an Indian TV Series named Sacred Games in conjunction with a well-known company like Phantom Films.
To further expand its presence in market Indian Market Netflix has planned to broaden its collection by incorporating content that is in regional languages like Marathi, Punjabi, Tamil, Bengali, and Gujarati.
Customer Analysis in the Marketing Strategy of Netflix
The courses video platform is growing in popularity among the younger generation, especially college-bound students and young job seekers because it’s easily accessible to anyone on the move and streamed on tablets and mobiles at any time.
Customers of the business mainly consist of tech-savvy consumers who are 15-40 years old and who prefer watching TV and movie shows online instead of on television which is filled with unnecessary advertisements during the broadcast.
Promotion Mix in the Marketing strategy of Netflix
The primary source of advertising for the brand is social media sites like YouTube. The fact that YouTube is a well-known and global brand offer them the benefit of not relying on excessive advertisements so the brand is more comfortable with pop-up ads, banner hoardings, and other static advertisements on sites.
In the past has seen Netflix now has celebrities with high-profile stars and also in their promotional videos to increase profits and sales.
A month-long trial free of charge is one of their promotional strategies to entice or acquaint their customers with the idea of letting users try the service for a free trial.
The brand also advertises its original TV series by posting trailers and teasers on YouTube and also by strategically placing hoardings in public areas to inform people of upcoming shows.
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