Running head: MARKETING PLAN 1

Market Plan of Netflix

Product Identification and SWOT Analysis
Blake Barnes
BUS 330 Principles of Marketing
Ashford University
September 10, 2019
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Introduction

My paper will talk about a product and its SWOT analysis. The product that I have selected for

SWOT analyses is ‘Netflix'. First I plan to describe the Netflix. Secondly, I will be discussing its

core product and its services that Netflix propose. Third I will talk about Netflix's brief history.

Fourth, I would like to talk about Netflix's present competitors. Fifth, I will focus on its SWOT

analysis. Sixth, I will discuss its product and its services that I will generate a marketing plan for.

Last but not least, I will provide a SWOT centered argument for why my product or services

permits market investment.

What is Netflix?

My selected product is Netflix as said already. Netflix is an internet-centered brand having

television network that the people can watch for several hours in a form of movies and drama

series. It further shows documentaries and feature films. Now the question arises that what makes

them so important and prominent? In today's world Netflix has become the worlds' famous number

one brand that provides internet-based television service to the people of all level. ‘ Netflix is the

world's number one internet provider television network having more than 100 million members in

around 190 countries who enjoy around 125 m hours of different type of TV programs and feature

films each day.' Many shows are only shown on Netflix and not anywhere else like ‘Orange Is the

New Black' or ‘Frank and Gracie'. Netflix provides such service where these movies are being

watched without any interruption. It is said that Netflix is a company that moves besides the

changed time and changed customer requirement and henceforth turned its business pattern to stay

pertinent.
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Core product.

The core products of Netflix are film services, streaming, and DVD rentals service. It is a

monthly plan that they offer. DVDs can get on rent every month over the mail. It is rented by the

member once at a time but the rental service is unlimited. Once it is ended and returned a DVD

Netflix ought to send another.If the payment is done more than Netflix will send more movies.

Brief History

Reed Hasting and Mare Randolph is the co-founder of Netflix in 1997. They started as

sales of DVD and rent through the mail but after one year they start to concentrate on online

DVD rental service. In 2007, Netflix presented spilling media on the web while holding its DVD

rental administration. They began extending web-based gushing universally in 2010. With such a

worldwide come to, Netflix's benefits significantly increased for the current year.

Netflix’s present competitors

This time when cable network and streaming provider are competing in every possible way

Netflix has many competitors'. Recent and capable shareholders having Netflix should be

conscious of those companies who are a threat to them .so they should focus if these threats are

important or not. Amazon is one of its leading competitors' of Netflix. Amazon has already

proved its value in the E-commerce marketplace and we are aware of its capability. It is already

in competition with world-leading company APPLE and GOOGLE. There is no point in it that

Amazon is one of the leading Netflix Competitors. If Netflix has to be cautious about than it

should be Amazon. Next competitor is You-tube. That is also one of the videos –sharing site. It

is one of the big competitors of Netflix from day one. Due to Netflix, youtube has also improved

a lot in these few years that includes streaming of live activities and events.

SWOT Analysis of Netflix

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Netflix’s Strengths – Internal Strategic Factors:

 One of the main strength of Netflix is its Growth. In these last few years, Netflix has

become one of the leading streaming online not only in the United States of America but

all over the world.

 It aims to serve all over the globe and provide its services everywhere. It has many

subscribers of different ages.

 Originality is one of the main component and strength of Netflix. It aims to produce

original content.

 It is adaptable to different technologies by giving streaming on every internet-content

gadget.

 The Competitive price of Netflix has provided influence on its competitors.

Netflix’s Weakness

 Due to its huge competitions, the growing cost of Netflix is progressing day by day.

 It fails to own most of its original programs that put a negative effect on the company.

 As the business is increasing in another part of the world hence Netflix keeps on adding

to its long-term debt program. This progression of debt each year is a trademark of a vital

weakness.

 Netflix other competitors' like Amazon, Google use renewable energy whereas Netflix

did not use renewable energy that brings it towards a negative aspect.

Netflix’s Opportunities – External Strategic Factors:

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 It is working a lot on expanding its customer-based services. as it has a huge subscriber-

based network hence it can go in many other nations and can start a business and provide

its services to them.

 It can extend its library as it is currently producing its original matter.

 It can become partners with other television user company and offer many packages and

deals in many other countries. Making partner to other companies can prove to be very

beneficial for the business of Netflix.

 Another big opportunity for Netflix is to produce a program for other nations in different

languages.

Netflix’s Threats

 It can have huge competitors' pressure as it is not the only online streaming provider.

 Different governmental policies regarding providing the services to the customers in

another part of the world could be a big threat to Netflix.

 The world is still facing digital piracy. Many of the original content being breached out

due to any reason become a big threat for Netflix.

Marketing Plan

The service that I will focus on for my market plan will be online streaming product line.

The internet serves many functions and becomes prevalent, video streaming services like Netflix

gain its popularity. The consumer will look forward to looking for such a service that is earlier

led to bodily media. Therefore I will focus on to increase adopting such a strategy that will make

a supply of internet an opportunity. As I have observed that the service online is going to

increase in a few years due to the usage of smartphones, tablets, and PC, that has worked in the

favor of the online video streaming business.

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SWOT centered argument

I believe that Netflix is right on track towards knowingly distracting the TV market

because of strong subscribers, its growth, and an improved consumer proposition. In my opinion,

the company is getting advantage from its main materialistic trends including the internet-

connected device and increases its consumer favorite for its demand video usage over the

internet rather than TV. A great number of subscriptions have a great number of impacts on the

profit of the business as its fixed content. As already said in the SWOT study Netflix is about to

prioritize its long term performance a compared to short term profits.

Segmentation Approach

A straightforward demographic tactics to segment the market is suitable for the market

plan. The business of Netflix is very alert and is innovating and modifying for new buyers. As

per Hannah (2016) depicts in the report that around 2.7 million individuals are using Netflix

services in order to watch movies or TV serials .

Many various strategies are used to segment the market in streamlining video business,

hence, due to different kind of client having different natures and attitudes depending upon age,

their salary, geographic areas and to watch Netflix priority fluctuate with different timings . Not

a single division will be similar. None of them will be quantifiable, frank, different, trustworthy,

and noteworthy and mostly productive.

Target Definition

Netflix users are targeted based on the segment hey corresponds to.. Netflix uses

differentiated targeting methodology to increase their customers by more subscription. Netflix

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concentrates on a business section by purchasing a membership . . Regardless of the way that

Netflix center to enlist mass business part it focuses on individual supporters needs remembering

the ultimate objective to hold them for a long time. The greater the number of repaying followers

the more Netflix can achieve return on overpowering enthusiasm for substance and advancement

in light of the way that select low expenses can be charged due to the method for the business

and organization.

Positioning statement

Netflix has positioned itself in the mind of the users and future users as being the most

comfortable, reasonable, compatible, personalization-friendly, high quality, user friendly, Up-to-

date portal for viewing television and web series, films documentaries and etc.on a number and

variety of screens.

Marketing Mix

Marketing mix is a regular tools that utilizes to move towards their goals and objective to

satisfy the need of the focused audience. Netflix’s marketing mix evaluate the brand /company

that covers all the 4Ps i.e Product, price Place and Promotion and also elaborate the Netflix

strategy for marketing.

Product

Netflix is one of the main online media and stimulation organizations on the earth, which

began as a DVD rental business. Netflix is presently a site that you register and pay to sit in front

of the TV appears, motion pictures, documentaries, and so on. The positive point about Netflix is
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this that there ae no advertisement in between the program hence there is no disturbance wile we

are enjoying our program. It is refreshed normally so that it is up to date . To utilize its

administrations, you would first be able to attempt it for a time of one month and after that you

need to, just on the off chance that you like it or wish to proceed, take month to month

membership and the beneficial thing is you don't have any agreement with them, no dropping

expenses, no dedication. You can drop online membership whenever. For the individuals who

wish to take Netflix's participation there are three plans as pursues which provide various degrees

of access of the substance to clients:

Price

Pricing is the amount of money paid by the customer to enjoy the services The Netflix

offers. Most importantly Netflix at the time of subscription gives a facility of one month free trial

and then make this customer there actual customer .After the free trial period is over they charge

a very minimal amount in the form of subscription .It totally depends upon the kind of plan he

customer decides. Either basic plan , Standard plan or premium plan ranging from $7-$ 12. Price

list clearly depicts that Netflix use psychological pricing. The prices are not expensive and are

pocket friendly .Many additional facilities are being given with the plan what so ever plan is

selected by the customer.

Place

Netflix is available everywhere as it is an online streaming business. Complete business

is run online .Only resource needed is Smart TV, tablet, having an internet access. It is all

because of this online presence that maximum customer are able to get the service wherever they
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reside and in any part of the world .It has strategic suppliers that permits them to easy deliver

rented DVDs and has numerous branches as well.

Promotion

It uses all the media channels to sell itself through he matter that if propose. First month

free trial itself is a promotion exercise in order to build customers and awareness about the

brand. After the awareness is created the then that customer is retained only those who subscribe

it. After one month the subscription has to be paid if you wish to have the facility of Netflix. It

makes good use of all the social media sites like Facebook, Instagram or Twitter. For offline

activity it uses billboards .TV, print media also aid Netflix to publicize the content, shows and

latest pictures and the customers can also see them by installing the app on the mobile.

Potential Success Metrics

There is a range of measurements that could be possibly caught and examined to gauge

the adequacy of this promoting plan. Netflix engage with customer science. Netflix experiment

innovative and new ideas with real clients and Netflix measure statistically important difference

as in how they engage with the product. Are the members staying long with the Netflix service?

Are they watching more movies or more TV shows?. One most crucial features of Netflix is to

try to entertain their customers and to observe how much do they enjoy. Netflix is trying to

change its five star rating system because the organization think that people give rates because of

the content and objectives of the program not because of the amount of their enjoyment.
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International Consideration

In the international market Netflix provide a blend of content that comes in English and

In the local language comprising of 80% English content and 20% local language content. It is

because Netflix is very flexible in this blend of language. Content in the Japanese language is

very famous. They are providing more content in Japanese language.

The organization additionally said that with regards to local content, it's taking a glimpse

at content that can have a worldwide intrigue, for example, its unique show Narcos. Netflix

likewise needs to keep developing its content library in the United States and needs to

concentrate on content that it can adapt universally.

Netflix is investigating various roads with respect to allowing its content to straight

telecom organizations in overall markets. The association acknowledges that from a content

allowing perspective, its remarkable content gives a charming possibility. In this way, it says that

it is "approving first window for specific titles in a long time, and a second window for around

the world."

Regardless, the association is facing extending competition in international districts.

Netflix said at the Goldman Sachs Communacopia gathering a month prior that in various

worldwide markets, it's standing up to an arrangement of contenders, including strong straight

pay-TV overseers, for instance, Sky. In specific countries, it's standing up to the issue of low

pay-TV invasion. Regardless, the association yielded that in such countries, the Internet is filling

the improvement of spilling organizations.

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Conclusion

Netflix is a world renowned online streaming network in United States. It started with

DVD by mailing .Netflix has very successfully developed a brand name and working a lot to

satisfy their customer all over the world. They offer such content that the customers’ would like

to watch. In the near future Netflix plans to give authority to its customer by giving them this

authority that they have a say and a value in the company. The customer will be given authority

to takr part in the deciding for the future motion pictures,TV serials and different kind of

documentaries that would be added in the Netflix library. Since many years Netflix is

progressing globally. They are now in around 190 countries of the world since 2016 .In order to

increase the quantity of its subscriber Netflix should incorporate in entertaining not only from

within the country but also to give original matter ,that is similar to House of Cards and Orange

is the Black for every country . The movies that Netflix is incorporating is a big step in the

success of Netflix since the time Netflix came into being in 1990. They put in every effort to stay

forward in the competition putting the satisfaction and requirement of their customers ahead.
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