Skillshare Strategy Project

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This is a final project submission for a digital strategy course run on skillshare by Julian Cole, digital strategy director at BBH.

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Skillshare Strategy Project

  1. 1. Creating a Digital Strategy for Final project submission for Digital Strategy skillshare program by Julian Cole Presented By Michael Browne @rontherocket March 2013
  2. 2. The Business Problem
  3. 3. Core Consumer Question  “How do we boost Netflix subscription numbers by utilizing the release of itsnew and exclusive series Hemlock Grove”
  4. 4. 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
  5. 5. Established in 1997, the companyis headquartered in Los Gatos,California. Netflix started life as asubscription based DVDdistributor in 1999 (which it stilloperates today).
  6. 6. 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
  7. 7. 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
  8. 8. 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.
  9. 9. Where it would Soon face HeavyweightCompetition
  10. 10. FROM THELIKES OF
  11. 11. But NETFLIXhad THEJUMPONEVERYONEELSE inOnlineStreaming
  12. 12. Giving ITFIRST MOVERADVANTAGEOvercompetitors
  13. 13. BUTRemember
  14. 14. IT’S NOT HOWGOOD YOU AREIT’S HOW GREATYOU WANT TO BE
  15. 15. Strategic Goals
  16. 16. 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.
  17. 17. The Target Market
  18. 18. We AllKnow That
  19. 19. IT S MOM AND DADTHAT MAKE THEDECISIONS
  20. 20. IT S MOM AND DADTHAT MAKE THEDECISIONS AND CONTROL ALL HOUSEHOLD FINANCES
  21. 21. IT S MOM AND DADTHAT MAKE THEDECISIONS AND CONTROL ALL HOUSEHOLD FINANCES
  22. 22. IT S MOM AND DADTHAT MAKE THEDECISIONS AND CONTROL ALL HOUSEHOLD FINANCES HOWEVER…
  23. 23. HELL induces NO FURY SUCH AS THE NAGGING TEENAGER
  24. 24. NOT KNOWN TO BE THE GREATEST LISTENERS IN THE WORLD
  25. 25. NOT KNOWN TO BE THE GREATEST LISTENERS IN THE WORLD TEENAGERS USUALLY GET WHAT THEY WANT
  26. 26. NOT KNOWN TO BE THE GREATEST LISTENERS IN THE WORLD TEENAGERS USUALLY GET WHAT THEY WANT OR ELSE….
  27. 27. WOE BETIDE YOU
  28. 28. Our campaign will therefore have two main targetsTeenagers viewers of “Hemlock Grove” and moreimportantly their parents  
  29. 29. If Netflix is to be successful in capturing the teenaudience it needs to appeal to them by engagingwith them, on their terms, in their environment
  30. 30.  So what s the bestWay of Doing This?
  31. 31. 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.
  32. 32.  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
  33. 33.  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.
  34. 34.            Remember The Golden Rule!
  35. 35. Never underestimate the persuasive powerof the annoying teenager Hell bent onGetting what they want!
  36. 36. Strategic Insights
  37. 37. 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
  38. 38. 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.
  39. 39. The Strategy
  40. 40. 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.
  41. 41. If the strategic campaign were to communicate one Message it would be…
  42. 42. 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.
  43. 43. And If the campaign wereto communicate oneWord it would be…
  44. 44. 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.
  45. 45. Thereforethe Big Idea is…
  46. 46. We re All About Choice
  47. 47. 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.
  48. 48. 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.
  49. 49. 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.
  50. 50. 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  
  51. 51. Campaign Tactics
  52. 52. 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
  53. 53. 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
  54. 54. SoWhatWillSuccessLookLike
  55. 55. Campaign KPI s
  56. 56. 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  
  57. 57. Samples
  58. 58. 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!  
  59. 59. A Netflix exclusive, Anyway You Like it      We’re  All  About  Choice  
  60. 60. The Bestchoice of Titles.AnywayYou like it      We’re  All  About  Choice  
  61. 61. TheRoadAhead
  62. 62. 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.
  63. 63. 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.
  64. 64. Thanks Michael Brownemichaeltbrowne@gmail.com @rontherocket

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