Downloaded 11 times
Uploaded byLaura Kerimova
Netflix
Netflix targets its e-commerce movie streaming service primarily at adults aged 25-55 in the US and Canada who enjoy movies and technology. The document provides recommendations on improving Netflix's marketing strategy across various digital channels like search engine optimization, email marketing, online advertising, blogs, social media, mobile marketing and their overall internet marketing strategy.
Netflix
- 1. Laura Kerimova December 18,2011 MKTG 469-01 Professor Ahrens
- 2. Industry & TargetAudience Industry: • Internet + Technology = E-Commerce • Convenient, faster, easier Target Audience: - Demographics • 25 – 44 years old (50%) • 45 – 55 years old (20%) • 55 – 64 years old (15%) • 18 – 24 years old (10%)
- 3. Industry & TargetAudience Demographics: • Men (50%) & Women (50%) • Income of at least $75K = 57% • College graduates = 49% • White (88%), African America (4.5%), Asian (2.6%), Other (3.3%) Psychographics & Behavior: • People who enjoy movies (families, men, women, children) • Like technology & convenience • Outgoing/social or quiet/relaxed • Devoted or occasional movie watchers Geography: • US & Canada
- 4. Paid Results: • Usecall-to-action “Sign up now!” Google SERP • Provide special offer “Free trial membership!” Organic Results: • Provide call-to-action • Mention convenience • Include easiness • Include large variety of movies (new releases, classics)
- 5. Home & LandingPage Home page: • Family life portrayed • List of features & contact info (catches eye) • List of benefits • Provide special offer (eye grabber & encouraging) Landing page: • Product category - Search = “Horror movie” Browse Selection • Information search – Search = “What is?” How It Works section
- 6. Email Why send this? •Acquire, activate, & retain • Get new customers • Provide offer • Establish customer relationships Improve: • Straight forward subject line • Convincing to open & read • Call-to-action – provide offer • Welcoming email – build & retain long relationships • “Thank You”
- 7. Online Advertising Ads Targetedto Audience: • Behaviorally Targeted • Re-marketing ads • Based on search & browsing history • Uses online behavior - Groups them into audience segments for advertisers
- 8. Works well: • Communicatesnew Netflix’s Blog products and services • Gets readers to other assets To improve: • Make more viral (Share on Face book) • Post more photos NETFLIX FOR XBOX LIVE - New to XBOX Live is Netflix! Now you can stream your favorite movies, TV shows, & documentaries directly from Xbox Live on your Xbox 360! So for all you Sci-Fi fans playing Halo can take a break from eliminating your alien foes to watch Cowboys & Aliens in HD. And all of you soldiers in combat on Call of Duty Modern Warfare 3, can get a relaxing breather watching The Hangover Part II, all from Netflix now on Xbox Live !
- 9. Works well: Netflix Twitter • Links to URL’s & Blog Web Page • Bio is good, they are #1 • Good communication of movie news • Drive traffic by advertising in tweets • Entertaining, informative, & promotional To improve: • New images (profile picture) • Background color (more color) Tweet from Netflix: Chris Tucker said to be in new Friday movie alongside Ice Cube! What’s your favorite Friday movie?
- 10. Netflix’s Facebook Works Well: •Post Content good (Encourage interaction) • Posts brand appropriate • Posts interesting • Polls/Contests are fun To Improve: • Photo changed (unique image) • Change frequently (fresh) • Landing Page (Welcome page) Tweet: Rise of the Planet of the Apes now available on Netflix with James Franco and John Lithgow! Click the Like button if you think it will be better than the (2001) Planet of the Apes, a remake of the 1968 film, starring Mark Wahlberg.
- 11. NetflixTV – YouTubeChannel Works well: • Entertain & Sell • Fun video is viral • Use episode teasers (promote) • Behind the Scenes • Videos on new features To improve: • “How-To” move making • Engage audience to create videos (Contests)
- 12. Mobile Marketing Text/SMS Communications • PUSH Messages • Pull Technique • MMS Messages (entertainment & information) • Polling & Voting texts (encourage feedback) • “Short Codes” (Contests & Sweepstakes)
- 13. Netflix’s Internet Marketing Doingwell: Strategy • Active on Facebook, Twitter, YouTube • Communicate & engage with audience • Entertaining, promote, & drive traffic • Good website (build brand image) Needs improvement: • Brand from simple to complicated • Rebranded logo • Rebuild brand image
Editor's Notes
- #3 Q1a) Industry. The internet and technology made so many people use e-commerce, which is such a big success because more people enjoy staying at home while doing “online” shopping and watching movies online. Now instead of leaving the house and going to the video store, they can do it easier by using Netflix. They have used the internet & technology, along with the changing needs of consumers to become on top of this industry. They have a competitive advantage by using technology to find movies easier, as well as using a mail system to make it more convenient. Q1b) Target Audience. According to a research done about demographics of Netflix users, the leading users make up about 50% and are between 25 to 44 years old. Then there is about 20 % of consumers who are 45 to 55 years old. About 15% of their users are 55 to 64 years old, and about 10% of their market are 18 to 24 years old. 50.6% of Netflix users are men and 49.4% are women, so they are basically equal. Abut 57% of their subscribers have an income of at least $75,000/year, and 49% of the users are college graduates. About 88% are white, 4.5% are African American, 2.6% Asian, and 3.3% are of other races. Since the majority of the users are white, the other target markets need to be aimed at. (Frank, Hunter, Lake, Lewis, Martz & Roughton, 2010) The psychographics of Netflix users are both men and women, along with children, who enjoy watching movies. Families love to watch Netflix because it is so convenient for them and their children since they don ’t have to go to the video store. Netflix subscribers can really have a passion for movies, or just enjoy watching them during their free time. They also are up to date with technology and enjoy the convenience of things. They can be outgoing, fun, social, or introverted, relaxed, and quiet – it is very broad because so many different types of people enjoy watching movies. The behaviors of the users are very different too because they are so diverse. Some subscribers may watch movies constantly while others only occasionally. For the geography of the target audience, they are in the US and Canada.
- #5 Q2a) I think Netflix did a great job by using the appropriate key words in their ad text, such as “watch TV shows online, watch movies online.” They also did a good job by putting specific links to products. So it improve the paid results description they could use a call-to-action such as “sign up now” or “join now” for people to sign up for a subscription and to drive traffic to their website. They should also provide a special offer in their ad text such as a “free trial membership” which they only offer on the actual website, not in the paid ad. Q2b) For their organic results, Netflix did a good job using common search terms in their headline and repeating them in the description line. However, they can improve their organic results by providing a call-to-action in the description line to encourage people to click on their link. Also, they should also emphasize the convenience and easiness of Netflix in their benefit statement, instead of just saying that people can watch movies & shows online, on TV, etc. They should also include that they have a huge variety of movies in their benefit statement, as well as many new releases, classics, and such other things.
- #6 Q3a) Netflix has an overall nice home page and it does a couple things right. It shows a family sitting on a couch watching Netflix, along with a list of features and contact information overlapping the photo – which catches your eye. The family symbolizes quality family time together that most people enjoy and find a feeling of comfort in. The list of benefits and the membership details make the visitor feel informed about what Netflix is, which makes them more comfortable to browse the website. Another thing they are doing right on their home page is that they provide a special offer towards top of the landing page (to the right of the screen), which is also an eye grabber and encourages visitors to start a free trial and join. It is clearly visible and has the sign up instructions in the same spot which makes it look easy to start the trial. Q3b) Your keywords should tie to your ads, which tie to your landing page. Since Netflix does not use paid search results landing pages, it would benefit them if they did. One suggestion they could test in a landing page is to do bring them directly to the website category page. For example, when a person searches and types in “horror movie” in the search, Netflix could send them to their “browse selection” section of their site. This would make it easier for a person to see if Netflix offers that movie and then giving them the urge to join and watch that movie. Another landing page they could test is to bring the person to their “how it works” section of the website when a person types in for example “what is Netflix?” This would make it more convenient for the visitor to land on the page where they are provided with information about the company and how it works.
- #7 Q4a) After the initial registration, Netflix sends this email to basically “acquire, activate, and retain”. Their goal is to get new customers, provide an offer on a sale of their service, and to establish customer relationships. They want the members of the “free trial offer” to sign up for a monthly membership with them. Q4b) Some things that Netflix could do differently to improve this communication is to change the subject line of their email. The main purpose is to get the email opened so the subject line should be more straight forward and convincing enough to motivate the person to open and read it. In this case, Netflix wants to encourage the people who are signed up for a free trial to sign up and pay. Therefore, their subject line should be a call-to-action and provide an offer, that way it will also communicate the content of the email. Another thing that Netflix could do differently is to send a welcoming email instead immediately after the person signs up. This way the customer feels welcomed and not overwhelmed with “selling” type of messages where they need to spend money. It is a good idea to first build a relationship such as sending a “Thank You” email after the person signs up. They need to build loyalty from the customer to retain the relationship long-term. For example, this would help “free trial” membership customers sign up for a full membership eventually.
- #8 Q5a) Consumers are exposed to ads that are more relevant to them. Since the ads were immediately served after searching the movies and visiting the Netflix website, these ads are called re-marketing ads. This makes these ads example of behaviorally targeted. It is based on the search and browsing history of the individual and their computer. Behavioral retargeting means that if the visitor has been on your site, then your ads can be served to them on other sites. It uses online behavior to identify individuals and group them into an audience segment to sell to advertisers. Q5b) I would say that the ad with the woman in it from the movie Iron Man 2 is more effective. I think Iron Man 2 would drive more traffic to Netflix because it is a more popular movie that people would be interested in watching.
- #9 Q6a) Two things that work well on this blog are that it communicates new products and services, as well as gets readers to other assets – in this case a Barne ’s & Noble Nook Tablet. Q6b) To improve this blog, it could be made more viral since it is positive news – the readers should have the option email this story and share on Facebook, etc. Another thing to improve would be to post more photos because images & pictures almost always work. Netflix only has one plain photo on their blog, and it wouldn ’t hurt to add some more. Q6c) I think that this blog post is very informative and keeps my interest because it is revealing new updates that would benefit their customers. It is also a good length, it is not too long but just the right length to give enough information. What doesn ’t work is that there are too many shows named, making the reader overwhelmed with a long list. Q6d) Blog Post from Netflix: The Netflix Blog NETFLIX FOR XBOX LIVE New to XBOX Live is Netflix! Now you can stream your favorite movies, TV shows, & documentaries directly from Xbox Live on your Xbox 360! So for all you Sci-Fi fans playing Halo can take a break from eliminating your alien foes to watch Cowboys & Aliens in HD. And all of you soldiers in combat on Call of Duty Modern Warfare 3, can get a relaxing breather watching The Hangover Part II, all from Netflix now on Xbox Live! The rationale for the post is because Netflix is expanding to a wider range of audience such as video-gamers. It ’s now convenient for them to watch movies from their Xbox. They are unveiling new features of their service to make Netflix even more enjoyable.
- #10 Q7a) Things that work well on this Twitter page is that there are links to URL ’s in the content of their tweets. Also, the link to their blog web page is in their bio. Their bio is good because it describes the company and gives mentions that they are the leader in internet movie subscription service. They also do a good job communicating news on topics related to their industry, which is movies. They also drive traffic through advertising by tweeting about certain shows and movies. They provide the same benefits of Facebook to their followers on Twitter, by entertaining and keeping the informed – as well as promoting their blog which is a great marketing social tool. Q7b) To improve this page, the images of the twitter page would need to be changed. One of the is the profile picture – it needs to be more vibrant and interesting, because the one that they currently have is somewhat plain and boring. Also, the background and colors need to improved because the background is an ordinary white color while not having any images in the background either. The colors in the background would make the page stand out and the images would make the page more interesting and fresh to view, especially if it was updated a lot. Q7c) Both tweets are fun, engaging, and keeping the reader informed. It is also great that their tweets end with a question. That is a good way to engage with the readers. I would improve by not always using a link to an URL as often and using different verbiage to sound more excited. Q7d) Chris Tucker said to be in new Friday movie alongside Ice Cube! What ’s your favorite Friday movie? The rationale for the post is because it is informing people of the latest installment of the popular Friday series. They are promoting movies for their industry.
- #11 Q8a) Netflix ’s post content is good which works well on their Facebook Page because they are brand appropriate and encourage interaction. Their posts are brand appropriate because they mostly post about different documentaries, movies, and shows which they offer on Netflix - so they are promoting themselves as well as giving publicity to the shows & movies. Their post content also encourages their fans to interact with them which makes it more interesting to be on their page. One of their posts encourages their fans to click “like” if they’ve seen & like a popular documentary that is mentioned in their post. Other posts end with a question to encourage fans to comment with their ideas. Their posts also promote interaction by posting a survey/poll asking fans “If you could work on a movie or TV set, what would you be?” They post to a diverse group of people as well because they don’t only speak to the movie fans, but also to the music fans. They expand their horizon and advertise themselves to those people as well as encouraging interaction with them. They create overall great content and good interaction. Q8b) To improve Netflix ’s Facebook Page their profile photo should be changed. It is their brand logo but they need to create a unique image, not just use their logo. It would also be good if they changed and updated their logo frequently to show fresh content. Another thing to improve Netflix’s Facebook Page would be to create a Landing Page. They need to create a customized Welcome tab because they shouldn’t let new visitors land on the wall of the page. Q8c) The post content is what works well on this Facebook post because it is brand appropriate and engaging. They are talking about a movie which gives them publicity as well as the movie. It is engaging because it is entertaining, interesting, and informative. They also encourage fans to click the “like” button if they can’t wait to see the movie which shows good interaction and encouraging feedback. This Facebook post could be improved by using images instead of only adding a link. Images encourage people to read your post and click on the link. They are a way to make your posts more entertaining and vivid. They could also improve by adding a Call-to-Action to get people to watch the movie and letting their fans know when Netflix will debut the movie in order to promote themselves. Q8d) Rise of the Planet of the Apes now available on Netflix with James Franco and John Lithgow! Click the Like button if you think it will be better than the (2001) Planet of the Apes, a remake of the 1968 film, starring Mark Wahlberg. The rationale for this post is because this is one of the latest movies available on Netflix today. It is promoting, advertising, and engaging with the readers.
- #12 Q9a) Netflix ’s YouTube channel does a good job of using a selling approach to entertain and sell. If you make the video fun, then people will watch and make it viral. Netflix used a Final Episode Teaser to make it interesting, promote the show, and get people to watch the full final episode on Netflix. They also do a good job of driving traffic to their website because most of their videos are related to shows & movies that people can watch on Netflix. They show Behind the Scenes videos of documentaries & movies which shows good communication with their viewers because they are offering exclusive content to educate and entertain. They advertise their company too by showing videos of new features such as the “Netflix on the PS3 – Available Now!” video. Q9b) Even though Netflix has a few “How-To” videos such as using Netflix on PS3, etc, they could add a broader range. To improve this channel they could show “How To” and Instructional videos related to movie making to their viewers in order to educate and sell. This would target aspring movie directors and many other people. They could also post videos to engage their audience by getting them to create videos - they could have contests like what Doritos has done.
- #13 Q10a) Mobile Marketing is a set of practices that…enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network (Mobile Marketing Association, 2009). The mobile marketing tool that would benefit Netflix the most is Text/SMS communications. They could use a PUSH type of Direct Mobile Marketing where the messages are marketer initiated. They could also use the PULL technique which is consumer initiated and to receive consumer feedback. This approach is a great marketing tool because the advertisers can send relevant marketing messages. They can also send MMS messages for entertainment and informative purposes such as videos. They can send polling & voting requests through texts to encourage interaction, as well as promotional content and news & information. They can use “short codes” for contests and sweepstakes which is interactive & entertaining. Q10b) A SMS/Text communications marketing campaign that would work for Netflix would be when a huge amount of people unsubscribed from Netflix because of the changes that they were making with their service. They also lost many subscribers after their price increase. Netflix could have used text marketing to tell their subscribers about their plans in advance to get feedback before they actually put these changes in effect. Customers like to be informed of what ’s going on ahead of time instead of being surprised by unexpected changes. The audience of this campaign would be all Netflix subscribers. Their objective & offer would be to inform their customers of their plans to change the service. The response mechanism would be getting feedback from consumers as a response to the text. They could have sent out a notification message, as well a poll to see how many people would agree with and want these changes made. Then, from the data they collected they could make a informed decision and the whole problem would have been avoided if they would have kept the customer informed.
- #14 Q11a) Overall, Netflix is doing a good job in the social media perspective because they are active on Facebook, Twitter, and YouTube. They are an active presence in a social setting where people spend a large portion of their time such as Facebook. They communicate and engage with their fans on Facebook very well because they keep them entertained, promote feedback and ideas, and advertise their brand as well as informing their viewers of many movies, documentaries, & shows. They are doing a good job with their YouTube videos because they entertain, promote, and drive traffic to their website. Their website is another thing they do well from the marketing perspective. They build their brand image for their customer and are an important source of information for current and new customers to learn about the company. Q11b) Netflix has made their brand go from simple to complicated by making changes to their services by splitting it into two categories. They rebranded their logo as well because the DVD mail-rentals were given a new name of “Qwikster”, which is confusing to customers because it’s basically a new separate brand. It needs to simplify, not complicate by changing things. Even though they apologized for those changes, it is harder to get customers than for them to lose them. Basically, they need to improve their brand image to build and improve their customer relations and earn the trust back of those negatively affected by the changes. Q11c) The three social media of Netflix ’s blog, Twitter, and Facebook differs because of the tone and the type of content written. The tone for Facebook is to entertain, promote, have polls, and is a fun more laid-back type of tone. Unlike for their blog, where the tone is more serious and meant to inform and reveal new features of their service. They can’t have as much fun on a blog without as much customer interaction. All three social medias however are similar in the way that they inform their customers, maintain & acquire relationships, and drive traffic to their website.