Core Consumer Question “How do we boost Netflix subscription numbers by utilizing the release of itsnew and exclusive series Hemlock Grove”
Before we begin our strategic analysis. Lets start by taking a brieflook at the History of this innovative organization Netflix andhow, within a short time, it has come from relative obscurityto become a leading player in the battle for our viewing entertainment
Established in 1997, the companyis headquartered in Los Gatos,California. Netflix started life as asubscription based DVDdistributor in 1999 (which it stilloperates today).
This new business model changed industry norms in homeentertainment and Netflix were in direct competition with longestablished bricks and mortar retailers with proven pedigreeAnd considerable financial resources
Undaunted by intense competition Netflix began to stamp itsmark on the industry and by 2009 it offered a catalogue of over100,000 titles on DVD and had surpassed the 10 millionsubscribers mark. In February 25, 2007, Netflix announced itsbillionth DVD delivery
Although highly profitable Netflix realized that the business landscape waschanging. DVD’s were and aging technology and the new war ultimatelywas to be waged online. Because of its success in the DVD industry Netflixwas able to harness the power of its brand name and expertise helping itquickly diversify into the online entertainment market.
Where it would Soon face HeavyweightCompetition
Strategic GoalsTo increase the overall number of subscribers to NetflixTo sell Netflix as an innovative streaming platform by utilizing digitalchannels and social media in a way that will differentiate it from itscompetitors.To promote “Hemlock Grove” as part of its expanding exclusive contentofferings that provides new viewing options to viewersTo highlight Netflix as the number one streaming service, unrivalled interms of its viewing catalogue, viewing options and customer service.To use digital and social media channels to promote Hemlock Grove andto engage its teenage audience forming a two-way dialogue with them.
Netflix needs to generate conversation amongstteens getting them to talk about what theywatched, how they watched it and what theythought about it. Positive sentiment will get themto spread the good word about the show and theservice to friends and peers as well asinfluencers who are not yet subscribed.
If Netflix can capture the hearts and minds of the teen audience getting them to act as ambassadors for the brand they are much more likely to be successful in converting undecided parents to subscribe to the service
By winning favor with teenagers through engagement Netflix will already be half way to getting parents to subscribe to the service. The final push to win over parents will be showing them that the service has the broadest viewing catalogue of family entertainment. That it is committed to investing in the best new and exclusive series and that it has built its reputation by delivering outstanding customer service.
Strategic Insights People have are increasingly demanding that 1 their viewing media be more flexible and adaptable to their busy lifestyle 2 Customers ultimately want to have control over their viewing options and watch at a time that suits them. 3 “House of Cards” has displayed positive feedback from consumers in terms of their response to the innovative release of the new series
Strategic Insights It’s release has helped to differentiate Netflix in two ways 4 A) as a streaming service committed to investing large resources in the production of new and exclusive programming. B) As a company that is dedicated to innovation by giving its customers more viewing options for its exclusive content. 5 With it’s block release of new programming Netflix has broken a sixty-year old television broadcasting tradition of releasing series incrementally. This is a high-risk strategy for the company but proves they are willing to take calculated risks to win the hearts and minds of existing and new customers.
We want to communicate the idea that Netflix isa dynamic organization dedicated to providing itscustomers with premium and exclusiveentertainment in multiple formats across multipledevices. We want our customers to know thatNetflix are committed to constantly finding newways of exceeding their expectations.
If the strategic campaign were to communicate one Message it would be…
Single Minded Proposition Netflix provides the best in visual entertainment by providing our customers with the highest levels of choice and service. Choice for us represents not simply title selection but also format and platform choice, as well as the power to choose what to watch, when to watch and how to watch, anyway you want.
And If the campaign wereto communicate oneWord it would be…
Single Minded Proposi:on Netflix provides the best in visual entertainment by providing our customers with the highest levels of choice and service. Choice for us represents not simply title selection but also format and platform choice, as well as the power to choose what to watch and how to watch, anyway you want.
Reasons To BelieveNetflix have been the leaders in visualentertainment innovation initially with its DVDpostal ordering service and since 2007 withinstant online streaming service. Its reputationhas been built on providing it customers withwider choice and better options.
Reasons To Believe Now with the release of House of Cards andHemlock Grove, Netflix it is once again redefiningthe rules, breaking traditional convention andproving its commitment to providing itscustomers with even more control in theirviewing options.
Reasons To Believe By block releasing new exclusive programming Netflix is once again putting power back in consumer hands. They choose how they watch. They can go the traditional skinny diet of one episode at a time or dive right in and watch the entire series in one sitting.
Comms FrameworkCurrent consumer behavior Desired Response Undecided Parents of teenagers Subscrip:on paying Parents • Buying Facebook Youtube News sites Digital Buzz Google Search Owned Social Tumblr TwiKer Mashable Technology Forums NeClix Site Awareness Considera:on Buying Crea:ve Messaging: NeClix are all Crea:ve Messaging: NeClix invest Crea:ve Messaging: NeClix is compe::vely about providing choice for customers heavily In new programming like priced and has a customer service that is Hemlock Grove second to none Reasons to Believe: Brand name Reputa:on Reasons to Believe: Word of mouth/ Reasons to believe: Industry leader, word of recall from success of House of Cards mouth, Internet search. Published data Media Media Media Rich Media Earned Media NeClix Website Banner Ads Social Adver:sing Owned Social Social Media Ads Banner Adver:sing Search Home Page Takeovers Microsite Social Ads
Facebook TacticsTime Out CompetitionThe idea is that Netﬂix FB fan (whose family are subscribers)watch the series of Hemlock Grove and answer a number ofquestions based on various parts of the show. A maximumof ﬁve members in any group allowed four of which arenot Netﬂix subscribers. Once started teams have a maximumof 24 hrs to complete the quiz. Prizes awarded to winnerPrizes given to Netﬂix FB fans who enlist 5 people fromtheir Facebook friends list to subscribe to Netﬂix
Twitter TacticsThe starring cast of the Hemlock Grove series, includingproducer Eli Roth, participate in a fan Q&A session via twitter. The cast also shows their involvement and commitment to fansby favouriting their preferred fan tweets under the HemlockGrove hash tag. Prizes awarded to fan that writes Tweet of the Day
Retention Increase FB Likes from 3.7 to 5 million Increase TwiKer connec:ons from 284,000 to half a million Aim for 70% 5 star product reviews in Technology websites and blogs Aim for 80% posi:ve sen:ment about brand from web ac:vity PurchaseIncrease Subscrip:on numbers by 10 million in twelve months Preference 20% increase in purchase preference 40% recall for Hemlock amongst teen target Consideration 80 million visitors to website and FB page Awareness 150 million page impressions to target audience
exclusive content-Anyway you like itWe re All About Choice Welcome Back Michael! Recommended for you! Recommended New Releases Genres WebsiteMichael’s Top 10 With Social Share The Love Media Links Join Us!
A Netflix exclusive, Anyway You Like it We’re All About Choice
The Bestchoice of Titles.AnywayYou like it We’re All About Choice
Moving ForwardIn order to build customer subscriptions Netﬂix must It must continue its one-month free trail as part of its promotional strategy Netflix must be leaders in customer service. High customer satisfaction leads to greater customer retention and a reputation that sells itself. Netflix should capitalize on this long term.It must place a high priority on social media activities as a vehicletowards achieving high customer satisfaction levels and retention.
Moving Forward In order to build customer subscriptions Netﬂix must It must continue to invest heavily in top quality content either through commissioning exclusive production or buying in from outside production sources.It must never cease to be innovative and constantly strive to bring itscustomers the highest levels of choice and viewing options at a competitiveprice.
Thanks Michael Brownemichaeltbrowne@gmail.com @rontherocket