Presentation on Netflix marketing covering PESTAL, 5 forces, SWOT, Segmentation, Pricing, Positioning, Perceptual mapping and 4 P's of marketing

1. Birju Naik | Gopinaath V | Mohd Asif Mufti | Prihana Bhasin |
Srimoy behera | Ronak Shah | Sayani Nandi

2. Overview
Netflix is one of the world’s top video streaming service
that allows users to watch content on screens ranging from
a smartphones to a smart television. It works with a variety
of other devices like PlayStation and Apple TV, letting users
stream directly onto larger screen. Netflix is also the
creator of a lot of original, made for the web content, much
of which is now in high-resolution Ultra HD.

3. Overview
• Netflix Inc., is an American entertainment company founded by
Reed Hastings and Marc Randolph on August 29, 1997
• It specialises in and provides streaming media and video-on-
demand online and DVD by mail
• Netflix is the world’s leading internet television network with over
93 million members in over 190 countries, enjoying more than
125 million hours of TV shows and movies per day, including
original series, documentaries and feature films
• Netflix was launched in India in Jan 2016 and currently has 4.2
million active users with around 2 – 3 lakhs paid subscribers
• In India its subscription based services start from Rs. 500

4. Political
• Favorable
regulations
• Tax
legislations
that support
sustenance
• Benefits from
Government’s
Digital India
initiative
Economic
• Booming
market for
digital
ventures
• Increase in
digital spends
• Increase in
consumer
income and
spending rates
Social/Culture
• Attraction and
affinity
towards
western
programs
• Shift from
group to
individual
devices for
entrainment
• Rise in
demand based
videos
• Immense
protentional in
regional
content
Technology
• Improving
internet
connectivity,
speed and
affordability
• Shifting
towards data
abundance
• Availability of
smartphones
for masses
Environmental
• Each company
should always
be able to
conserve and
protect the
environment
and this is a
strategy that
Netflix has
always
embraced
Legal
• Laws
concerning
copyrights of
television and
movie shows
• Distribution
regulations
External Environment Analysis
L LH H H L

5. Threat of New Entrants
• Largely unregulated
industry for renting
movies
• High content acquisition
cost is the primary
barrier to entry in this
industry
• Netflix has to keep on
maintaining the rising
popularity of e-
commerce such as an
improvement and
enhancing their
inventory of stream
movies and HD
streaming inventory
Industry Rivalry
• Netflix is currently up
against 29 other over-
the-top (OTT) content
providers in India
including Hotstar,
Youtube and Amazon
• This industry seems to
be evolving in such a
way that consumers
may subscribe for
multiple service
providers
Bargaining Power of
Buyers
• The business-model
provides customers
large amount of
bargaining power
• Customers may cancel
anytime without
termination fee and can
also enjoy free
subscription for a
month
• The low price and high
amount of content
available through Netflix
creates competitive
advantage compared to
traditional media outlets
• Consumers are
extremely price
sensitive and at risk of
abandoning Netflix over
relatively incremental
price increases
Bargaining power of
suppliers
• Netflix is dependent on
studios / Production
houses for the content
they require to provide
to customers
• Netflix also has their
own content and
targeting global content
to Indian consumers
• Different suppliers have
different content to
offer, hence, even
though there are
various big players in
the content licensing
industry
Threat of substitutes
• For most homes in
India, Digital cable is
now necessary,
therefore many
customers will have a
film collection from
their cable network
• “On Demand,” Services
offered by cable
television providers
might be a substitute
for Netflix if they
increase their movie
stock list to a similar
title selection.
• One of the major threat
is the vast and open
Internet where anyone
can find movies
illegally for free.
Industry Analysis
M H M HM

6. Internal Analysis
Strengths
- Brand name
- Technology
- Huge content bank
- Unique exclusive western content
Weakness
- Steep Pricing
(Hotstar premium costs just Rs. 199)
- Limited Indian content
Opportunities
- Additional services
- Localised content
- Tie-ups with other companies
Threats
- Government Regulations
- Internet Penetration
- Multiple competitors
SWOT

7. Internal Analysis
Porters Generic Strategy Model
Differentiation Strategy - Targeting broad affluent segment
through their quality content and original shows with price ranging
from INR 500 to 800/ Month
Opportunity Matrix
Diversification - Entering Indian Market with a new product. Smart
TV, Gaming

9. Geographic
• Pan India,
Primary focus
on major metro
cities
Demographic
• Male & Female
above the age
of 16
Psychographic
• Affluent who
are seeking
quality original
global content
and ready to
pay premium
• Brand
conscious
Product-Related
• Movies and
serials addicts
depending on
genre of videos
• Watching of
movies is still a
social
experience
• Video on the go
Recommended Segment

10. Target - Differentiated approach
permanent roommates
The core segment to target are the ‘affluent’ and
‘aspiring’ set of audiences who have:
1. Keen interest in watching the original global content
2. Wants to be perceived ahead of the league
3. Can afford to pay for the subscription
- Targeting all diff. segment by placing services on all
possible medias from Smartphones to TVs and set-top
box.

11. Recommended Positioning
permanent roommates
• Situating customer’s top need is comfort,
reasonableness, speed, personalisation of the video
and high choice of titles.
• Providing more customized, quick, helpful, high quality
entertainment.
• Binge watching of their favourite programme

12. Perceptual Mapping
permanent roommates
High Price
Low Price
Low Content High Content
HotStar
NetFlix
Amazon Prime
Spuul
VootBigflix
Eros Now Snoy Live
TVFPlay

13. Product
• Video Streaming/ Video on Demand
• TV Shows
• Movies/ documentaries
• Original content (TV Shows/Movies) developed by Netflix
• Product Features:
- Can opt out anytime from services
- 3 diff. plans basis customer needs
- Original popular global content

14. Retagy
Pricing
• Follow value based pricing
strategy as Netflix is
focusing on differentiation
strategy
• Providing quality original
content at a higher price
than competitors
• Premium Plan of INR 800
created for reference
pricing as customer opt
for standard Plan
• Contrary to value based
pricing approach follows
competitor for 1 month
free service promo for
service experience

15. :
Place
• Google Play/ Apple Store/ Windows store
• Netflix recommended SMART TVs
• All streaming media players
• All major game consoles
• Set-top box
• All major blue ray players

16. Netflix Marketing Strategy
Product Strategy
• Add more recent movies
• Sports instant streaming
• Expand the library
• Accommodating different internet speeds
• More mediums of payments
People Strategy
• Increase the customer service team
• More training for the people
• Advance tools and software's for customer service

17. Netflix Marketing Strategy
Price Strategy
• The current prices should not be changed abruptly and proper
communication should be done before any changes.
Promotional Strategy
• Continue 1 month of free trail and communicate in all advertisements
• Mobile texts once every month
• Focusing on digital marketing
• Sponsor events and film festivals
• Tie-ups with payment networks, telecom providers, D2H services, smart
TVs etc.

18. Thank You
Questions?