Netflix is an American provider of on-demand internet streaming media available in North and South America, parts of Europe, and Asia. It began as a DVD rental service in 1997 and launched streaming in 2007. Netflix now has over 40 million subscribers worldwide and a large library of movies and TV shows. It collects extensive customer data to personalize recommendations and has strong brand recognition due to its original content like House of Cards. While competitors like Amazon offer lower prices or more content, Netflix remains a leader in online video streaming through its personalized user experience.

1. UNIVERSITY OF JAFFNA-SRI LANKA
FACULTY OF MANAGEMENT STUDIES & COMMERCE
DEPARTMENT OF MARKETING
BBAM 3233: BRAND MANAGEMENT
ASSIGNMENT-II
SUBMITTED BY
MR. J.S.S. KARUNATHILAKE 2014/BAD/300
DATE OF SUBMISSION: 5th
January, 2018

2. Content.
1.What is the Netflix.
2.Brand Strength of Netflix.
3.Brand Equity of Netflix and Its application.
4.How they stack all together.

3. What is the Netflix?
Netflix background
Netflix, Inc. is an American provider of on demand Internet streaming media
available to North and South America, the Caribbean, United Kingdom, Ireland,
Sweden, Denmark, Norway, Finland, the Netherlands, etc. and flat rate DVD-by-
mail in the United States, where mailed DVDs are sent via permit reply mail.
Online streaming service and DVD delivery service are the two main two main
product lines for Netflix. Netflix core product is a service .This marketing plan will
focus on online streaming service.
Netflix history
Netflix was incorporated in Delaware in August 1997 and started its subscription-
based digital distribution service in 1999. It made its initial public offering on May
22, 2002 on NASDAQ under the ticker NFLX. Netflix introduced instant
streaming in 2007, by 2009 Netflix was offering a collection of 100,000 titles on
DVD and had 12.3 million subscribers. In September 2010, they began
international operations by offering streaming service in Canada, and now offers
streaming service in Latin America, the United Kingdom, Ireland, and the Nordic
countries of Finland, Denmark, Sweden, Norway and others. Beginning the fourth
quarter of 2011, Netflix had three operating segments: Domestic streaming,
International streaming and Domestic DVD. The Domestic and International
streaming segments derive revenues from monthly subscription services consisting
solely of streaming content. The Domestic DVD segment derives revenues from
monthly subscription services consisting solely of DVD-by-mail. By end of 2012
the total revenue for Netflix reached at $3.6 billion a 12.6% compared to 2011
results and it is estimated that Netflix will hit the revenue of $4.4 billion end of
2013. Netflix announced having over 40 million subscriber in its shareholder letter
of October 21, 2013. 31.09 million Being domestic streaming, 9.19 million and
7.15 being international streaming and DVD delivery subscriptions respectively.

4. Netflix has been growing both financially and with ever increasing the subscriber
base from the start with a brief stumble in second half of 2011 when it separated
the DVD service to Quickster and increased prices for the subscription by 60% of
which it bounced back and regained its stock value and lost subscriptions.
Brand Strength of Netflix
Strength is the likelihood a brand is being talked about on social media. The ratio
of generally positive to generally negative comments about a brand on social
media is called sentiment. The likelihood that once a person has talked about a
brand on social media, they will talk about the brand again and repeatedly is
customer passion. And finally reach or influence is the number of unique
individuals talking about the brand divided by the number of mentions.
Essentially, what this really means is that there’s a lot of people talking about
Netflix on social media, particularly Twitter, and that a lot of people have very
positive things to say about the brand, since sentiment is decently high. That being
said, only about 1/3 of the people talking about Netflix are likely to talk about
them sometime again in the future which is not spectacular.
 Netflix has the First Mover Advantage into the movies and TV shows instant
streaming which gives its brand higher recognition compare to other
competitors.
 Netflix brand has Strong Brand Recognition and winning Emmy awards
with its House of cards show, Emmys best the Personalized
Recommendation Engines for Video Discovery award and many others
making it the strongest brand in the industry.
 With the personalized recommendation system and a large selection of
content Netflix has managed to get high Customer Satisfaction.
 Netflix has the largest Streaming library compare to other competitors like
amazon and Hulu.
 Netflix has the ability to adopt to various platforms like TVs, game consoles,
smart phones, tables and computers as well as flexibility to different internet
speeds which other competitors like Amazon do not have

5. First Mover Advantage
• Strong Brand Recognition
• High Customer Satisfaction
• Large Movie Selection
• Low Overhead Costs
• Predictable Monthly Revenue Streams
• Affordable Pricing
 Production of original content has increased Netflix brand equity, customer
loyalty and revenues for example House of cards and orange is the new
black.
 A huge database of customer data and a good system for analyzing the data
enabling them to have more accurate predictions and recommender systems
Brand Equity of Netflix.
By looking at your brand from these three angles, you get a good sense of how
you’re really doing — and you can know what kind of action you need to take. If
people know you, do they think of you the way you want them to? And if you’re
cultivating the right image, are customers excited about what you actually deliver?
Having the answers to these questions is critical for refining your brand strategy.
Is your brand on consumers’ minds when they’re looking to make a purchase?
When you know how visible (or invisible) you are to consumers, you’ll understand
how strong your brand is in your target market, and whether you need to tailor
your marketing efforts to building awareness.

6. To measure your company’s brand awareness, test your target market by using
two types of survey questions. The first set of survey questions are unaided
questions which test for brand recall — your customers’ ability to name your
brand on their own. Unaided survey questions should ask survey respondents to
recall brand names, attributes, and other observations about your category without
any prompts or suggestions about the answers you’re hoping to see. Answers
should be given in an essay or comment box, and you should avoid mentioning any
brand names or attributes. Unaided questions are used to eliminate possible bias
and give you a true sense of how respondents look at the market.
Brand Image of Netflix.
Netflix serve a business to customer market.
The potential market includes people of ages
from 5 (kids), 18 to approximately 59 years
and beyond and they are located in the US
and other 41 countries where Netflix
currently operates. They have two major
product categories which are DVD by mail
subscription and online streaming
subscriptions. The focus is online streaming.
Netflix customers are highly diverse in their

7. watching preferences, ages, income, technological advancement and in many other
aspects with the only common factor uniting them being access to internet and
interest in video content. Most are accustomed to free/ad based content and the
black market.
With these options available, prices are driven down as consumers have high
bargaining power to be able to understand and serve this kind of extremely diverse
customer base Netflix collect and retain the following information about their
subscribers in order to understand individual preferences and be able to serve every
one of their customers individually. The information is collected from the website
by keeping track of subscribers interaction with them; Email addresses, names,
age, credit card information and other basic information, title selections, reviews,
ratings, payment history, correspondence, internet service providers, Internet
protocol addresses, devices and software data (such as type, configuration and
unique identifiers), instant-watching hours/movies, TV shows and related
activities.
They also collect information from other sources; including offline data and
subscribers’ browsing
behavior on other sites and
interactions with Netflix’s
advertising, movie & TV
show ratings, consumption
habits, commentary and
reviews. Subscribers may
Choose to connect one or
more social networks (such
as Facebook) with them
Netflix account. If they do,
Netflix will import, use, and
retain information from
their social networking
account(s) such as names
and profile pictures as well as their e-mail address, list of friends, subscriber’s
Likes and Interests as well as information they make public on social networks
From analysis of collected information it is clear that Netflix online streaming
customer’s primary needs are affordable, convenient, fast and individualized
entertainment. Netflix has kept on delivering and responding to these needs which
results to a rapid growth of its customer subscription base. Figure 3 shows
customer subscription trend for 2012&2013.

8. How does Netflix stack up?
To take brand awareness research a step further, you can also include questions
that will help develop more nuanced competitive insights. When Audience put
together a competitive study on Netflix’s brand awareness, we also looked at
product usage and asked consumers why they make the choices they do. For
example, we learned that: 33-34% of respondents prefer competing solutions over
Netflix. 33 Of those people, well over half (56%) prefer Amazon Instant because
it’s “more cost effective” and has “more of the content I want.”
33Compared to Android owners, more iPhone owners use online video streaming
services (48% vs. 37%). 338.2 hours is how long the average person spends
streaming content on Netflix in a typical week
Personalized user experience created by the ratings and recommendations system.
Perhaps there was an opportunity to license the strongest part of its business model
and effectively outsource delivery to the cable companies, much as was done with
the USPS. Cable subscribers could, for an additional fee, use the Netflix website
and benefit from its familiar recommendation system, ordering movies for instant
viewing on their television. This would also bypass the technology challenge of
connecting a user’s computer with their television, and a VOD feature that did not
rely on downloading could mitigate concerns over piracy and accelerate premium-
content acquisition. While this might eventually cannibalize the core business,
Netflix would be replacing one stream of positive cash flows with another. Despite
these benefits, Hastings was still uncomfortable partnering with a competitor. With
the fast pace of technology improvements, what was the likelihood that a
satisfactory connection between a user’s computer and television would emerge
shortly after settling on this sort of agreement?

9. Reference.
 “Twitter for Netflix” accessed on 23 March 2017. http://addnetflix.moltbedesigns.com/
 Luther, Shaila. “Netflix creeps into Facebook with Netflix Updates.” Crunch Gear. 24
March 2009.http://www.crunchgear.com/2009/03/24/netflix-creeps-into-facebook-with-
netflix-updates/
 NetFlix Company Website accessed on 3 March 2017. www.netflix.com
 “Netflix offers subscribers the option of instantly watching movies on their PCs.” Netflix
press release. 16 January 2007. http://www.netflix.com/MediaCenter?id=5384
 Zeidler, Sue. “Netflix, consumer electronics partnerships near.” Reuters. Gary Hill. 2
April 2016.
http://www.reuters.com/article/technologyNews/idUSN2133480820080422?feedType=R
SS&feedName=technologyNews&sp=true
 World Video Content Delivery Networks Market.” Frost & Sullivan Subscription Service.
15 December 2016. http://www.frost.com