Netflix aims to increase awareness of its original content by 5% among its 85 million subscribers. It will target college students aged 18-24 using social media, television, and on-campus promotions. Effectiveness will be measured by recognition of original series and increased viewership of episodes. The budget uses a continuous advertising approach to promote shows throughout the year as new seasons are released.

1. Netflix
Group 3: Alex Grohe, Austin Schaub, Ben Lovik,Hongjin Li, Katie Rakers, and
Weihao Liu

2. Overview
● Situational Analysis
● Category Customer vs. Brand Customer
● Environmental Factors
● Problem Statement
● SWOT Analysis
● Campaign Objective
● Potential Target Groups
● Chosen Target Group
● Competitors
● Feature Analysis
● Perceptual Map
● Positioning Triangle
● Budgeting
● Brand Heritage
● Marcom Tools
● Executions
● Effectiveness of Campaign

3. Situation Analysis
● Product Category
○ Online video streaming service featuring movies and television episodes.
○ Operates within the online video streaming market
○ Strategy to attract current cable subscribers
● Brand
○ Netflix, existing brand started as a DVD rental service in 1997
○ In 2007, they began streaming online content to users internet-connected
televisions and computers.
● Current state of business
○ Market leader that has over 85 million streaming members in over 50 countries
○ Licensing fees have increased 700% in past two years. Damaging Netflix’s profit
margins.
○ Currently Netflix would like to raise from 10% to 50 % for original content spending

4. Category Customer vs. Brand customers
Category Customer:
● Someone who will pay a premium for interruption free media content
● Willing to pay to receive media with better quality in a much safer manner
● Customers that are ending their cable contracts in order to avoid
advertisements as well as scheduled programming.
Brand customers:
● These customers do not want interpretations
● Pay as you go
Similarities and differences between the two?
● Similarities: Instant content from anywhere, those who want to cut cords or
view TV on the go, and those who want adless shows.
● Differences: Pay as you go, massive library of selection, works in many different
regions, massive.

5. Environmental Factors
● Economic Factors:
○ Consumer Spending/Employment growth
● Social Factors:
○ Leisure time. With tuition rates surging 42% on averaging within the last 10 years, more
students are getting part-time jobs.
● Technological Factors:
○ Internet connectivity. 4.2 billion people are still offline.
● Governmental Factors:
○ Social Security
○ Internet Neutrality

6. Problem Statement
The problem for Netflix is the low awareness of original content. With only 10% of
Netflix subscribers having streamed House of Cards,22
as the company increases
their spending on producing more diverse original content, there is an opportunity
to increase their long term subscribers as they rely more on this original content.

7. SWOT Analysis

8. Reactions to SWOT Analysis
Weaknesses and Threats:
● Advertising campaign
● Expand Netflix’s library
Strengths and Opportunities:
● Available on multiple devices allow
us easy to reach our customers.
● Sign more original content

9. Objective of Campaign
Netflix’s campaign goal is to increase the awareness of Netflix
Original Series by 5% from their current 85 million users.

10. Potential Target Groups
College Students (aged 18-24)
● Pros: accessibility, substantial consumer of online media - 97% of college aged students use the internet 7
● Cons: lack of disposable income, only 84% have a credit card, which is required for membership 14
Families with Children under age 18
● Pros: steady income (median family income in the US is currently averaged around $66,000.8
), need to
satisfy children with “Netflix Kids”
● Cons: only two people can use Netflix simultaneously without upgrading - The average family consists of
3.13 people.10
Senior Citizens (65+)
● Pros: substantial disposable income, increased free time for consuming online media
● Cons: only half of all senior citizens are online and active internet users 12
and many find the internet to
be difficult to use

11. Target Group Chosen
We believe that targeting College Students will provide the
greatest growth potential in Netflix subscribers. With the
average college student owning 7 internet connected devices1
,
their ability to stream our service and their lack of time
commitment makes for the ideal subscriber.

12. College Students
Demographics
● Age 18-24
● Moderate disposable income
Geographics
● Attend a public, private, or community college
Psychographics (VALS)
● Believer - watch movies as an “escape”
● Experiencer - “want everything”, heightened sense for visual stimulation
○ 59% of generation Y categorized themselves as Experiencers 3
Behaviorgraphics
● Display large internet usage
● Have high technological capabilities / technological means to access Netflix
● Disposable time

13. Competitors of Netflix
Amazon Video
● POP: Large selection of content
● POD: Subscribers are not able to purchase month by month
HBO Go
● POP: Ability to stream content on the same devices Netflix can be streamed on
● POD: Only HBO shows are available to watch
Hulu Plus
● POP: Similar monthly subscription price
● POD: Commercial interruptions during shows

14. Feature Analysis
1 = Best
4 = Worst

15. Perceptual Map
Low Price

16. Positioning Triangle

17. Budgeting Method
● Objective and Task Method
○ Based on our goals
■ Goal is to gain awareness of Netflix Originals- consistent with chosen
budgeting method
● Continuous Advertising Schedule
○ Investing same amount of money through each stage of the campaign
● Goal to gain awareness of Netflix original content
○ Must advertise throughout the year
○ New shows coming out at different points of the year
● Consistency in advertising- keep our shows top of mind throughout the year

18. Brand Heritage
● Established in 1997, as DVD rental service
● In past 8 years rebranded themselves and became leader in online streaming
services
● Many competitors have entered industry- Market leader by promotion of its
original content, Netflix originals
● When Netflix rebranded as online streaming service
○ Similar to competitors’ accessibility and ability to stream movies on variety of devices
● Differentiates through Netflix original series
○ No other streaming service offers same amount of original content as Netflix

19. Marcom Tools
● Social Media
○ Most effective medium in order to reach target audience
■ Our potential consumers will be online frequently
■ 90% of young adults use social media24
● Television Advertisements
○ Place ad during popular programming and television networks for young adults
■ Cable advertising- effective at reaching young subscribers
■ Networks such as MTV, CW, ABC, etc.
■ Air during prime time (8-11 pm) and late fringe (11 pm-2 am)
■ Effective medium to highlight clips of Netflix original shows- visual representation
● Newspaper Advertisements
○ Advertisements in the Daily Iowan
■ Ease of access to student population
■ Targets both male and female audience

20. Marcom Tools
● College Campus Promotions
○ Advertise Netflix original series on University Cambus
■ Provide added exposure and awareness
● Mass Online Advertising
○ Google Ad Words
■ Personalize content to which Netflix originals users would be interested in
■ Cost efficient medium
■ Effective way to reach target audience as they have high interactivity online

21. Executions
1. Social Media-create positive word of mouth
2. Print-emphasize originality
3. Radio-appeal to local and timely event
4. Television-demonstrate the quality of content
5. Sales Promotion-link cell phone useage to Netflix in
consumers mind

22. Social Media
Word of
Mouth

23. Print (Newspaper)

24. Radio

25. Television

26. Sales Promotion

27. Recommended Media Strategies
● Media Selection
○ Social Media
● Vehicle selection
○ Netflix Facebook page, Netflix Twitter account
● Reach vs. Frequency
○ Reach more subscribers to make sure they aware with the exclusive services Netflix provides.
○ We would like more people to be aware of the advantage we have over our competitors to
convert consumers to prefer Netflix over other companies.
● Continuity
○ Continuity scheduling
○ Netflix’s original contents are coming out throughout the year
○ Covers entire purchase cycle
○ More cost efficient

28. Effectiveness of Campaign
Effectiveness of Recognition/Recall:
● TV-Bruzzone
○ Test recognition of original
series
● Radio-Arbitron
○ Test audience
demographics
Effectiveness on Consumer Response:
● Measure viewership ratings of
Netflix Original episodes and
movies.
○ Internal metrics
● Percent of total Netflix viewers
watching at least one episode,
two episodes, three etc…
○ Viewer retention
● Percent of “binge-watchers”
relative to other series.
○ Viewer interest
AND

29. Overall Summary
● Problem:
○ Low awareness of original content
○ Why?
■ Netflix’s point of difference is their Netflix Originals
● Objective:
○ Increase awareness of Netflix Originals by 5% from current 85 million users
● Measurement:
○ Effectiveness of recognition/recall and consumer response

30. Appendix
1
"College Students Own an Average of 7 Tech Devices." MarketingCharts. Watershed Publishing, 18 June 2013. Web. 01 Oct. 2015.
2
Curtis, Jacqueline. "Netflix vs. Hulu Plus vs. Amazon Prime Comparison."Money Crashers. Money Crashers, n.d. Web. 01 Oct. 2015.
3
Dawn B. Valentine , Thomas L. Powers , (2013) "Generation Y values and lifestyle segments", Journal of Consumer Marketing, Vol. 30 Iss: 7, pp.597 - 606
4
Waniata, Ryan. "Amazon Prime Instant Video vs. Netflix vs. Hulu." Digital Trends. Digital Trends, 12 Sept. 2015. Web. 01 Oct. 2015.
5
Honorof, Marshall. “Netflix vs. Amazon Prime Instant Video: Face-Off. “Tom’s Guide. N.p., 19 May 2014. Web. 20 Oct. 2015.
6
Rainie, Lee. "Census: Computer Ownership, Internet Connection Varies Widely across U.S." Pew Research Center. N.p., 19 Sept. 2014. Web.
7
"Internet User Demographics." Pew Research Center Internet Science Tech RSS. N.p., 14 Nov. 2013. Web. 20 Oct. 2015.
8
"US Family Income." US Household Income. Department of Numbers, n.d. Web. 20 Oct. 2015.
9
"Total Number of U.S. Households." Statistic Brain. N.p., n.d. Web. 20 Oct. 2015.
10
"Average Size of a Family in the US 1960-2014 | Statistic." Statista. N.p., n.d. Web. 20 Oct. 2015.
11
"Nielsen Norman Group." Usability for Senior Citizens. Nielsen Norman Group, n.d. Web. 20 Oct. 2015.
12
"Older Americans Month: May 2012." United States Census, 1 Mar. 2012. Web.

31. Appendix
13
"4 in 10 TV Households Also Subscribe to Netflix, Amazon or Hulu." CNNMoney. Cable News Network, 11 Mar. 2015. Web. 20 Oct. 2015.
14
“Managing Money in College Infographic.” College Student Spending. Nationwide, n.d. Web. 20 Oct.2015.
15
Steel, Emily. “Netflix, Amazon and Hulu No Longer Find Themselves Upstarts in Online Streaming.” The New York Times. The New York Times, 24 Mar. 2015.
Web. 02 Dec. 2015.
16
Soper, Taylor. "Netflix Still King of Streaming Video, but Amazon Gaining Market Share - GeekWire." GeekWire. GeekWire LLC, 12 Mar. 2015. Web. 02 Dec.
2015.
17
"Media Types and Scheduling - Boundless Open Textbook." Boundless. N.p., n.d. Web. 02 Dec. 2015.
18
"Social Media Use by Age Group Over Time." Pew Research Center Internet Science Tech RSS. Pew Research Center, 12 Nov. 2013. Web. 07 Dec. 2015.
19
Napoli, Michael. "Netflix: A Short SWOT Analysis." Netflix: A Short SWOT Analysis. Value Line Inc., n.d. Web. 07 Dec. 2015.
20
"Statistic Brain." Statistic Brain. Statistic Brain Research Institute, n.d. Web. 07 Dec. 2015.
21
"U.S. Netflix Original Programming Consumption 2015 | Statistic." Statista. Statista, n.d. Web. 07 Dec. 2015.
22
Lawler, Ryan. "Survey Says: 10% Of Netflix Subscribers Have Streamed House Of Cards, Watching 6 Episodes On Average." TechCrunch. AOL Inc., n.d. Web.
04 Dec. 2015.
23
"Netflix: Share of U.S. Peak Period Downstream Traffic 2015 | Statistic."Statista. Statista, n.d. Web. 07 Dec. 2015.
24
"Social Media Usage: 2005-2015." Pew Research Center Internet Science Tech RSS. Pew Research Center, 08 Oct. 2015. Web. 07 Dec. 2015.