Netflix is a subscription-based streaming service that allows members to watch TV shows and movies without commercials on an internet-connected device. You can also download TV shows and movies on iOS, Android, or Windows 10 device and watch without an internet connection.

1. A PRESENTATION ON THE
MARKETING MIX OF NETFLIX
01
Presented by Arwa
Sangotwala.

2. 02
INTRODUCTION
Netflix,Inc. is an American technology and media services
provider and production company headquartered in Los Gatos,
California. Netflix was founded in 1997 by Reed Hastings and Marc
Randolph in Scotts Valley, California. The company's primary
business is its subscription-based streaming service which offers
online streaming of a library of films and television series,
including those produced in-house. As of April 2020, Netflix had
over 193 million paid subscriptions worldwide, including 73
million in the United States. It is available worldwide except in
few countries due to local restrictions. The company also has
offices in France, United States, United Kingdom, Brazil, the
Netherlands, India, Japan, and South Korea. Netflixis a member of
the Motion Picture Association (MPA). Today, the company
produces and distributes content from countries all over the
globe.

3. Product:
Product refers to a good or service that a company offers to customers. Ideally, a
product should fulfill an existing consumer demand. Or a product may be so
compelling that consumers believe they need to have it and it creates a new demand.
Price:
Price is the cost consumers pay for a product. Marketers must link the price to the
product's real and perceived value, but they also must consider supply costs, seasonal
discounts, and competitors' prices. Marketers also need to determine when and if
discounting is appropriate.
Place:
When a company makes decisions regarding place, they are trying to determine where
they should sell a product and how to deliver the product to the market. The goal of
business executives is always to get their products in front of the consumers that are
the most likely to buy them.
Promotion:
Promotion includes advertising, public relations, and promotional strategy. The goal
of promoting a product is to reveal to consumers why they need it and why they
should pay a certain price for it.
03
WHAT ARE 4Ps OF MARKETING

4. Netflix is one of the leading online streaming media and entertainment
businesses in the world, which started as a DVD rental business. Netflix is
now a website that you register and pay to watch TV shows, movies,
documentaries, etc. The best part of Netflix is you don’t have to see any
commercial while you are enjoying the content. It is updated regularly so
to it does not get out of date. To use its services, you can first try it for a
period of one month and after that you have to, only if you like it or wish
to continue, take monthly subscription and the good thing is you don’t
have any contract with them, no cancellation fees, no commitment. You
can cancel online subscription anytime. For those who wish to take
Netflix’s membership there are three plans as follows which give different
levels of access of the content to users: 1) Basic Plan 2) Standard Plan 3)
Premium Plan. It also offers streaming software for viewing any video
instantly as a part of its marketing mix product portfolio but specified
internet speed and system requirement is necessary for better experience.
A few years ago, Netflix decided to produce films and TV shows and
created some like Narcos, Orange is the New Black, Thirteen Reasons Why,
etc. It also acts an online distributor by acquiring broadcasting rights. In
addition to all these, it provides delivery of DVD rentals in selected
countries.
04
PRODUCT STRATEGY

5. Netflix provides one month free trial service in order to attract them and then
convert these prospective customers into actual ones. After the one month
period is over, it charges a minimum amount in the form ofsubscription
which depends upon the type of plan opted for, which range from $7 to $12.
From the above price list, it is easily evident that it uses psychological pricing.
The prices by Netflix are pocket-friendly which is in line with its motto for
which it is founded, i.e., “to subsidise the rental costs for consumers”.
According to the plan you have opted for, you get the additional benefits.
Although Netflix’s motto is to provide low rental costs to subscribers which
works fine in other countries, it is struggling in India with its pricing strategy
(it provides subscription from $7 - $11/month). It is facing tough competition
from Amazon and Hotstar and many others who provide their services at
much cheaper rate. Amazon provides it subscription at around $1.82/month
and Hotstar provides at around $4.00/month. Recently it has introduced
mobile only plan at around $2.81/month to beat the competition.
05
PRICE STRATEGY

6. Netflix is an online streaming business and hence available
through internet everywhere globally. Almost the entire business
of Netflix is conducted online. Its services are accessible through
Smart TVs, tablets, smartphones, etc. with internet access. Online
availability makes it possible for its customer to avail its services
anytime, anywhere though it has strategic distributors as well
which allows for easy delivery of rented DVDs and has several
branches as well.
06
PLACE STRATEGY

7. Netflix uses almost all media channels to promote itself and that
too through the content which it offers. Its first month free trial
policy is kind of a Promotional Activity to build brand awareness
at first and then retaining those who subscribe to it. After that
month only, you have to pay subscription if you wish to continue
with Netflix as a customer. It makes use of social websites like
Facebook, Twitter, Youtube and Pinterest as well to promote their
service. The use commercial billboards in the offline mode, TVCs
and print ads also help Netflix showcase the various shows, latest
movies etc. which users can see using the app. Netflix also takes
help from Social Influencers to promote their trending shows and
series so as to create more awareness about the content on the
platform among masses.
07
PROMOTION STRATEGY

8. Segmentation:
Market segmentation means to divide consumers into groups of people with common
characteristics and needs. This allows companies to tailor their approach to meet
each group's needs cost-effectively, and gives huge advantage over competitors who
use a "one size fits all" approach. Businesses can use the following approach to
segment the market - Demographic, Geographic, Psychographic and Behaviorial.
Targeting:
Next, a company needs to decide which segments to target by finding the most
attractive ones. There are several factors to consider here. First, look at the
profitability of each segment. Which customer groups contribute most to the bottom
line? Next, analyze the size and potential growth of each customer group. Is it large
enough to be worth addressing? Is steady growth possible? And how does it compare
with the other segments?
Positioning:
In this last step, a company's goal is to identify how they want to position their
product to target the most valuable customer segments. First, consider why
customers should purchase their product rather than those of competitors. It can be
done by identifying unique selling proposition(USP), and draw a positioning map to
understand how each segment perceives your product, brand or service. This will
help a company determine how best to position their offering. Next, look at the wants
and needs of each segment, or the problem that the product solves for these people.
Create a value proposition that clearly explains how company's product offering will
meet this requirement better than any of the competitors' products, and then develop
a marketing campaign that presents value proposition in a way that the audience will
appreciate.
08 STP IN MARKETING

9. Age : 17 -60
Busy People
Movie Buffs
Money Savers
09
SEGMENTATION TARGETING
Personalized content
Can add screens for
multiple users
Provides HD and Ultra
HD 4K content
POSITIONING
Best Technical Quality
Rich Catalog
Non Binding Subscription
Users can rate shows
STP OF NETFLIX

10. With domestic subscriptions potentially hitting a wall,
International growth is Netflix’s next frontier. Management has
its eyes trained on India. Netflix CEO Reed Hastings said that
Netflix plans to spend $420 million creating content for the
growing market in 2020, roughly matching its pace of spending in
India compared to 2019. The majority of that spending will be in
spinning up original shows geared at Indian audiences.
10
CONCLUSION