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INTRODUCTION
Netflix offers an entertainment subscription service to consumers
Business model
Based on monthly subscription model $7.99 per month for unlimited streaming and $7.99 for one DVD at a time Flat-fee unlimited rentals without due dates, late fees, shipping or handling fees, or per title rental fees Personalized video-recommendation system Watch Now on-demand service: similar to the TV network
Marketing Mix
Product: Movies & TV shows online streaming as well as home delivery of DVDs Price: $7.99 per month for one-DVD-at-a-time $7.99 per month for unlimited streaming Promotion: Netflix coupon for trial period Promotes through portals such as Yahoo, AOL,MSN Ads via Google and pop ups Place: United States, Europe, Latin America DVD by mail in US only Online streamed to computer, tablet, smart phone, TV, XBOX, PS3.
5 S OF INTERNET MARKETING
SELL Netflix consumers sign up for a subscription on the companys website Watch TV shows & movies anytime, anywhere. For one low monthly price SERVE Connect PC or Mac to TV using an HDMI cable, select your desired TV episode or movie on the computer and watch instantly on TV. Instantly watch on the PC or Mac by logging on to netflix account and selecting a TV episode or movie. Movie Recommendations for person to person Social community and blogs for customer in which customer can feedback and share own view about the movie. No commitments, cancel online anytime
CONTD
SPEAK Members can rate the movies and TV shows theyve watched through their TV or on the Netflix website Netflix takes these ratings and pairs them with billions of other ratings by other Netflix members to accurately predict movies and TV shows members will enjoy SIZZLE streaming-video industry Movie reviews and ratings Competitions
SAVE Warehouse in each part of USA. First-class mail takes only one day to be delivered within a 50-mile radius, so the warehouse network allows Netflix to service over 97 percent of its customer base within a two-day window. Netflix gets the lowest possible postal rates for first-class mail delivery.
MICRO ENVIRONMENT
Suppliers Six Major studios constitute 50% of the titles Commercial and Independent titles Customers Needy and Convenience Competition Diverse competition ranging from brick and mortar to VOD High Exit Barriers Effect of Substitutes- Moderate
MACRO ENVIRONMENT
Social Factors Perceived Benefits Trust Security Cost Legal and Ethical Factors Privacy- Contact Info, Profile Info Anti-Spam Legislation Economic Factors 1. Political Factors 2. Technological Factors
MACRO ENVIRONMENT
Technological Factors Netflixs business model depends on the internet 25% of the Internet traffic in US Increased Customisation First in the industry to offer streaming video Political Factors
6 Is
Interactivity Push, Pull Intelligence Profile customers characteristics Individualization n->1; Tailoring Integration CRM
Internet Approach
Started in 2007
Matured Technology
Saves cost and time & Geographic advantage Online movie rentals TV shows on demand VOD, la carte Integration over various platforms Computer, TV, Setup boxes, Consoles, Smartphone, Tablets
Decision 1 Market and Product Development Strategies Decision 2 Business and Revenue Model Strategies Decision 3 Target Marketing Strategies Decision 4 Positioning and Differentiating Strategies Decision 5 Multi Channel Distribution Strategies Decision 6 Multi Channel Communication Strategies Decision 7 Online Communications Mix and Budget Strategies Decision 8 Organizational Capability and Structure Strategies
BRANDING REDEFINED
Advertising creates awareness but brands are built by customer experience 94% recommend 71% asked by friends to sign up Crowd sourcing
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