NETFLIX

GROUP 1
Abhinab Bharali
Denny Dominic
Joseph Rajendiran
Mathew John Benner
Radhika Chandak
Sreyashi Bhaumik
 Netflix Inc., is an American entertainment company founded by Reed
Hastings and Marc Randolph on August 29, 1997

It specializes in and provides streaming media and video-on- demand

online and DVD by mail

Netflix is the world’s leading internet television network with over 139
million paid subscriptions worldwide in over 190 countries, enjoying
more than 125 million hours of TV shows and movies per day, including
Overview
original series, documentaries and feature films.

Netflix was launched in India in Jan 2016 and currently has 4.2 million
active users with around 2 – 3 lakhs paid subscribers

In India its monthly subscription based services start from Rs. 499.
Competitors
 Platform Monthly price
Amazon Prime Rs.129
Hotstar Premium Rs. 299
Netflix Rs. 499
Jio Tv Nil
MX player Nil

Netflix has introduced a mobile-only

subscription plan in India at ₹199 a month Competitors
Netflix has introduced a mobile-only subscription plan in India at ₹199 a month

“Growth in that country is a marathon.

We’re in it for the long haul.” -- Ted
Sarandos (Netflix Chief Content Officer)
 Price: Indian consumers are not habitual to paying
for content online. Expensive in comparison to cable
networks, opposite trend to American market

No local content: With only 6-7 % of Indian

households watching English content generating
customized Netflix
contenthas
Key issues
introduced a mobile-only subscription plan in India at ₹199 a month
is necessary
in
India
OTT service by major players: Content generators
like Zee, Sony and Star have existing OTT services over
Ditto, Sony Liv and Hotstar
 Internet connectivity and coverage: India ranks 115th in
average net connection speed

Piracy: Availability of paid content for free over sites like

fmovies, 123 movies and torrents

Netflix Expansion
has introduced a mobile-only
Key issues
subscription plan in India at ₹199 a month
in
Business strategy: in 130 countries without
proper research and implementation of local customization
India

Regulatory restriction by Govt.: Countries like Indonesia

censor online content for violence and adult content
Internet movie retailer
DVD Rentals
Movie Night

Brand
Positioning
Streaming business
Free service
Entertaining, convenient
and accessible brand

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Brand Positioning
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 Subscription-based video on demand platform
 Fulfills the digital consumption desire of the audience
 Advertisement free Positioning

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 Simple UI
 Online streaming Points of
 Rich content Parity
 Multiple device usage

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 Building on Original Content that Builds Exclusivity:
Netflix Originals
 Using their product to sell the brand
 Personalized experience
Points of
 Product repositioning: Shift from DVD to online
streaming Difference
 Publish and distribute video content: “House of cards”

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NETFLIX vs AMAZON VIDEO
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NETFLIX vs AMAZON VIDEO

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NETFLIX vs YOUTUBE

Netflix: streams licensed content

YouTube: Advertising supported site; hosts videos

Netflix: subscription-based service

YouTube: free content

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Till 2016, Netflix adopted demographic segmentation.
Realized that it was not an effective segmentation
strategy Segmentation
Netflix shifted to behavioral segmentation post 2016.
Content is categorized into thousands of micro genres .
Netflix then pairs the genre tags with a user’s viewing
history.
The data points are combined to create “taste
doppelganger”.

RESULTS
75% of Netflix viewer activity is driven by
recommendation
Netflix’srecommendation system saves the company an
estimated $1Billion per year through reduced churn 
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 Target segment includes males and females between
the ages of 17-60 and households with income levels
of $30,000 and up.
 Uses differential targeting strategy
 Divides into four categories: Movie buffs, Binge
watchers, Value seekers and children.
 Develops original content according to the target
Targeting
segment.

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IMC
 All communications and messages are
linked together
 IMC wraps communications around
customers and helps them move
through the various stages of the
buying process.
 IMC also increases profits through
increased effectiveness.
 Carefully linked messages also help
buyers by giving timely reminders,
updated information and special
offers which, when presented in a
planned sequence, help them move
comfortably through the stages of
their buying process
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Why people love Netflix

 Price
 Basic, Standard, Premium
 No Commercials
 No Time Hinges
 Content, Content, Content

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Contents

 Content is gold but it also matters how you

deliver
 Think outside the box.
 Think about the needs of your
customers.
 Be consistent. Deliver frequently
 Be original
 Target individuality
“ House of Cards trailer “

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Quality

 Content is the king because of quality

“ Readers will not come for quantity but for quality “

 Brainstorm for great topics

 Find new ways to please your customers.
 Check and recheck your articles (content)
 Take your time

“ A timeless creation will not simply appear “

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Marketing &
Branding
 Invest in content
 Don’t forget about
marketing
 Be where your
audience is
 Create a brand of
your name: “Netflix
and …”
 CBS,ABC,FOX,NBC,
Stars, Sony,
DreamWorks etc.

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Reach

 Sharable/Snackable content
 Website user experience
 Don’t forget about mobile
 Attract a global audience

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Major Advertising Modes

 Social Medias like Youtube , Facebook, Instagram, Twitter etc

 Seasonal Advertisements
 pop-up ads, banners, hoardings and other static ads on websites
 Marketing Videos with celebrities

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Media Mix

 Movies
 TV Shows

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BRAND EQUITY

Customer-based brand equity occurs when the consumer has a high level of awareness and
familiarity with the brand and holds some strong, favourable, and unique brand associations
in memory.

SOURCES OF BRAND EQUITY:

 Brand awareness
 Brand Image

BRAND SURVEY: The survey was circulated to 100 respondents and the method of sampling
used is convenient sampling.

The URL of the survey is https://forms.gle/FgQ9Z1ovQzz8ihAa7

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BRAND AWARENESS
 The consumers’ ability to provide information on their exposure to the brand
is called as brand recognition.
 Out of the 100 responses, 24% were extremely familiar with Netflix and 27%
were highly aware of Netflix which shows that the awareness levels of Netflix
is higher.
 The survey shows that 80% have seen advertisements of Netflix among the 100
respondents.

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BRAND RECALL
 Brand recall is also known as unaided recall or spontaneous recall and refers
to the ability of the consumers to correctly elicit a brand name from memory
when prompted by a product category. 

 46% of the respondents recalled Netflix when it was displayed among the
other video streaming services.
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BRAND USAGE
 The survey shows that 66% of the respondents are subscribers of Netflix and
the most preferred device to view the content was recorded as Mobile phones
with 53%.

 Thus subscribers mostly prefer the 199/month SD plan which allows the user to
view the content in a single mobile device.

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BRAND ATTRIBUTES
Brand Attributes are the core values that define the overall nature of the company
and represent the essence of the brand. 

Out of the 8 attributes, the most preferred attributes are Streaming Quality,
Entertainment and Premium.

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CUSTOMER ASSOCIATION WITH THE
ATTRIBUTES

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ATTRIBUTE COMPATIBILITY WITH THE
BRAND

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UNIQUENESS AMONG ITS COMPETITORS

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Brand Loyalty

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Suggestions & Recommendations

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 Facts


Netflix already has 5 million subscribers in the UK. That is around half
of Sky, which has operated in the market for a much longer time. The

Netflix subscriber bases forecasted to grow to 7.5 million by 2019.

 Netflix’s main competitor for paid-for online entertainment streaming in
the UK - Amazon Prime - only has 1.6 million subscribers.

 Globally Netflix is now a hugely valuable multinational company. It has a market

capitalisation of around £29bn and 75 million subscribers, Netflix has a presence
in about 200 countries.

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 Suggestions

 Live streaming of screens on multiple devices can be increased

 Can provide HD services for the Mobile plans i.e for 199 plan
 Basic plan is comparatively priced high
 Make consumers aware of the Rich Content and variety that NETFLIX
offers

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 Recommendations

1. Netflix should use Marketing Action Plan (MAP), which is

designed to send current customers a promotional e-mail that
offers 2 months of the next highest subscription service (above
their current subscription) for a discounted price.

2. Netflix should allow prospects to sign up for Netflix e-mails

without having to become a subscriber/customer.

3. Netflix should increase its cross-promotion with gaming consoles

that can stream Netflix instantly (Microsoft’s Xbox 360, Sony’s
Playstation 3, and Nintendo’s Wii).

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THANK YOU!

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