Netflix aims to grow its market share by targeting "complete series seekers" with a new marketing strategy. It will address this segment's need for both past and current episodes by adding next-day access to popular TV shows. Netflix will implement social media, online video, and TV advertisements over six months to promote this new offering. The goal is for Netflix to position itself as better able to serve complete series seekers than competitors like Hulu and expand its total revenues and subscriber base.

2. This paper will discuss in detail the marketing plan to be set in place for the company, Netflix. This plan is based
on the goals and objectives previously set after extensive research into the online streaming industry market.
The main focus of the marketing plan is to grow the market for a segment that Netflix does not currently
address. There are two main objectives which include, increasing revenues, and increasing the number of Netflix
subscriptions. This will be done by focusing on one specific segment of the online streaming industry. By
focusing on one segment, more effort can be made on Netflix’s part to position themselves ahead of major
competition.
Netflix will have the opportunity to better serve potential customers by creating a new offering that will add to
the unique experience that is already offered. This new offering will be promoted in various ways including social
media, online advertising, as well as traditional television advertising. This will allow Netflix to reach to many
potential customers, as well as current customers. In order to evaluate the effectiveness of this plan we will look
at various metrics. These include but are not limited to, click-through rates, interactions, revenue dollars, added
subscriptions, and views of new content.
With the success of this marketing plan, Netflix will have a great opportunity to grow the market, all while
increasing revenues and the number of people who are subscribing to Netflix. This will also give Netflix and edge
over other intense competitors who are fighting for the same customer.
This paper will discuss in detail the marketing plan to be set in place for the company, Netflix. This plan is based
on the goals and objectives previously set after extensive research into the online streaming industry market.
The main focus of the marketing plan is to grow the market for a segment that Netflix does not currently
address. There are two main objectives which include, increasing revenues, and increasing the number of Netflix
subscriptions. This will be done by focusing on one specific segment of the online streaming industry. By
focusing on one segment, more effort can be made on Netflix’s part to position themselves ahead of major
competition.
Netflix will have the opportunity to better serve potential customers by creating a new offering that will add to
the unique experience that is already offered. This new offering will be promoted in various ways including social
media, online advertising, as well as traditional television advertising. This will allow Netflix to reach to many
potential customers, as well as current customers. In order to evaluate the effectiveness of this plan we will look
at various metrics. These include but are not limited to, click-through rates, interactions, revenue dollars, added
subscriptions, and views of new content.
With the success of this marketing plan, Netflix will have a great opportunity to grow the market, all while
increasing revenues and the number of people who are subscribing to Netflix. This will also give Netflix and edge
over other intense competitors who are fighting for the same customer.

3. Our goal for Netflix is to grow a segment of the market we currently fail to serve, the Complete Series Segment.
We are aiming to bring more people into the streaming market since Netflix is the market leader, market growth
will directly result in more customers for their business.
There are four primary segments in the online streaming industry that will be examined before determining
which one to target. These segments include complete series seekers, streaming anywhere, anytime seekers,
niche content seekers, and ad free content seekers.
Increase total revenue by 26% (1.76 billion) within one year.
Increase household subscriptions by 6% within one year.
The complete series segment is made up of those individuals who want complete access to their favorite series,
both past and present. These individuals are seeking for a service that allows them the ability to not only watch
entire past seasons, but also the ability to keep up on their favorite shows by watching up-to-date episodes.

4. Get access to all of your favorite shows both past and present.
The streaming anywhere, anytime segment is made up of those individuals who want the ability to pick-up on
their favorite shows no matter their location. These individuals are typically on the go and want the freedom to
watch shows when and wherever they are.
Stream your favorite films and TV shows anywhere, anytime with the ability to pause and play over every device.
The niche content segment is made up of those individuals who want content that is not typically considered
mainstream. They are seeking shows and movie titles that tend to fall into more obscure categories of content;
they tend to be looking for original content as well as indie or foreign titles.
Hard-to-find, niche content at your fingertips.
The ad free content seekers are those individuals who are looking for a service that will allow them to stream
without the interruptions of advertisements.

5. Watch your favorite shows and movies without being interrupted.
The online streaming service industry serves all different types of people. They have a wide variety of ages,
incomes, educational backgrounds, and locations. Therefore, it would not make sense to try and target a specific
type of person based on an identifier such as age, income or any of the other aforementioned demographic
characteristics. Instead, it would make the most sense to go with a more direct segmentation approach. This
means that when choosing a segment, the most important thing to look at are the needs, wants, and benefits
sought by these segments.
Netflix is already a well established market leader in the online video streaming industry, being the first in the
minds of the customers for online streaming services. However, there is one segment that Netflix currently fails
to serve, which is the “complete series seekers” segment. These individuals want access to all of their shows
both past and present. Netflix does a great job at providing half of this segment’s benefits sought by providing
entire past seasons of shows, but Netflix continues to lack in providing these users with the up-to-date episodes
that other online video streaming services, such as Hulu excel in. Netflix has the opportunity to better serve this
segment if the company can provide more up to date, current content for customers.
Currently as mentioned previously Netflix is not providing benefit for the segment that is seeking out content
that is current. This can be seen in the chart below.

6. In this chart Netflix is being evaluated against Hulu. Hulu is currently a top company that serves this segment
that Netflix will be competing against. As the companies stand currently, the price of the two subscriptions are
fairly similar. However, Netflix has higher scores in past season selection and original content distribution
frequency. Meaning, Netflix releases more shows at a time. With that said, Hulu is out performing Netflix when is
comes to offering up-to-date episodes.
As also demonstrated in the diagram below, Hulu currently has a major point of difference which is offering new
television shows the day after they air. However, Netflix has very strong points of difference which include ad-
free content without having to pay more, Netflix Originals, and Cinematch technology that provides users with
suggested titles. What this means for Netflix is that they have an opportunity to outperform Hulu and other
competitors if they address the complete series seekers via the marketing implementation described in the next
section.

8. After the introduction of the new, up-to-date content to the Netflix website, Netflix will be able to position
themselves as a better online streaming service provider. The chart below demonstrates this addition of new
content.
Since Netflix has already positioned themselves as one of the best online streaming services, by adding next-day
content, they will be able to better serve the complete series segment and further outpace the competition as
well as grow the market.
To put it simply,
Netflix will be able to maintain a competitive advantage by providing an extensive amount of past content, as
well as current next-day access to popular television shows. Netflix is able to provide the whole package to these
complete series seekers.

9. In order to meet these objectives, Netflix will implement three different marketing strategies; social media,
online video advertisements, and television advertisements over the course of a 6 month period.
Netflix’s social media strategy will consist of utilizing Facebook, Twitter, and Instagram to create sponsored
campaigns that will inform followers and active social media users about Netflix’s new next-day-episode viewing
capability. This advertising campaign will run for six months beginning July 2017. Netflix will spend a total of
$1,000,000 on Facebook ads, $200,000 in Twitter ads, and $200,000 (1) for 10 million impressions on
Instagram.
Netflix will create two different interactive videos that will engage viewers by asking them to dictate the ending
of each video.These videos will be placed on Netflix’s social media platforms including Youtube and these
interactive videos will be easily shareable because of the humor in the short videos. Viewers will want to share
the videos with each other, therefore creating buzz about Netflix. The cost to produce an interactive video is
$300,000 and since we are creating two, the cost will be $600,000.
Netflix will create one 30 second commercial that will air 10 slots a week for 8 weeks. Much like the current
commercial ads Netflix airs, these will be simple. The cost to produce the commercial will be $400,000 and the
cost to air the commercial for 8 weeks will be $16,000,000 (2).

10. Below is a timeline of the marketing implementation strategy as well as a budget table:

11. We set the budget at $136,000,000 which is 2% of Netflix’s revenue in 2015. Our marketing plan will actually
cost a total of $18,400,000, thereby saving money to acquire more content in the future as well as more money is
being saved to go toward current marketing activities that Netflix is undertaking.
In order to evaluate the success of our marketing efforts, we will be using a number of metrics to determine the
viability of this plan. As far as our social media efforts go, we will be using the analytics to evaluate the click-
through rates as well as the number of interactions (shares, likes, comments) that each social media post
receives in order to determine the visibility and reach that our campaign is capturing. In regards to measuring
the overall success of the campaign we will be utilizing the following metrics.
The increase or decrease in revenue will help to give us an overall sense of the success of the campaign. If an
increase in revenue can be achieved that surpasses what the typical year-to-year increase usually looks like, it
will be a good indicator of success.
Related to revenue, we will be measuring the number of new subscribers, the number of members who drop their
subscription altogether, and also the number of subscribers who upgrade or downgrade their streaming plan.
With the implementation of next-day content and the corresponding increase of $1 a month, it will be important
to evaluate how this affects the usage of the Netflix streaming service and whether or not this causes a drop off
in the number of subscribed users.
A final metric we will be utilizing to measure the success of the campaign is the number of views of new content.
Not only will this help us to understand whether or not the idea of this campaign holds merit, but it will also
reveal valuable information that will dictate which contracts we pursue in the future.

12. With a goal of increasing market growth, we then established two main objectives. The first being that we see an
increase in total revenue by 26% (1.76 billion) within one year. This, along with our second objective of
increasing household subscriptions by 6% within a year, will help to determine whether or not we have achieved
our overall goal. In order to achieve this market growth, we will be targeting the complete series seeking
segment by developing an additional product offering in the form of next-day available content. Our biggest
competitor, Hulu, currently serves this segment by airing episodes the day after they air. By offering a similar
service, Netflix will be able to claim part, or all, of this segment and further increase market growth. And then
finally, through using metrics that will measure the number of new subscriptions, the amount of revenue earned
and the views of new content (amongst other things), we will be able to evaluate the success of the campaign
and then adjust our strategy moving forward.