https://blogs.wsj.com/cmo/2015/04/16/netflix-marketing-strategy/ This is the art
ID: 356104 • Letter: H
Question
https://blogs.wsj.com/cmo/2015/04/16/netflix-marketing-strategy/
This is the article to be reviewed by the end of the semester. Use your Marketing tools and vocabulary to discuss what is going on at Netflix. Take the position of Netflix CFO David Wells and pretend you are David. What are the situation assessment factors, and what are the strategic levers, that Netflix is utilizing? How well did they understand their customers and competitors? What did they learn? How did their own capabilities play into the mix? What strategic levers (the 4 P's of Marketing) did they utilize and how? How effective were they in the use of these levers? Finally, how would you as a manager in that situation have done anything differently, if at all? DO NOT just repeat the article back to me - I have already read it. I want you to use this as a chance to demonstrate to me that you are learning and utilizing the language of Marketing and the marketing concepts and models that we are covering this semester. A couple of double spaced pages should do it.
Explanation / Answer
Netflix is one the people who killed the video store. Everyone thought that Netflix is just another website like any other and Netflix has changed the market conditions and future of the Television is Netflix. The company has more than 20 million subscribers and company worth is 12 billion dollars.
Netflix has been developing its services in many of the countries. Netflix has actually transformed the television industry to Internet TV and this is going to be the future. Currently Netflix is operating in few countries and yet trying to step in to many other countries and trying to acquire the market. Netflix started the marketing strategy used in USA globally. Netflix even though they started with the DVD segment, they improved the company and brought it to the extent of being an Internet TV. Netflix understood the customer expectation and also understood the rapidly changing technology which is making the customer expectation to increase. Netflix had only 2 major competitors HBO and Blockbuster. However Netflix came up with the new strategy of Internet TV which both of the other competitors does not have and became successful in the market.
Netflix used the Marketing plan really well. They considered all the 4 P’s of Marketing like Product, place, price and promotion. Netflix as a product emerged widely and the marketing of the product was done majorly through Social media and many other channels. The pricing was made very less initially and putting cost on the company investors to attract the customers and also made the subscription option free initially and then lately started charging money. Even though Netflix started operating in USA, slowly they gained good name and slowly they entered different countries by adding local country programs to attract the customers of the home country and currently they are operating in more than 190 countries and still trying to exceed. Netflix promotional activities were good and attracted the customers by giving free subscription which made many people to visit the Netflix and later many liked and became customers for Netflix
As a manager I would have done only one change. Since Netflix focus only on movies and famous reality shows, I would suggest to add local programs of each countries and states so that it will be easy for Netflix to be promoted well and customer responsiveness will be more than what it is
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