1: Executive Summary

Marketing plan for Netflix is designed to increase sales and brand awareness. Netflix offers
DVD rental by mail and instant steaming of movies and TV shows at affordance prices
consistent with their vision. Netflix targets a mass market aiming at acquiring as many
subscribers of all ages and preferences. Segmentation is not done in this particular industry
because the service offered is highly tailored to individual needs using complex prediction
algorithms and a recommender system, marketing efforts are aimed at getting as many
subscribers as possible.
2: Background
Netflix, Inc. is an American provider of on demand Internet streaming media available to North
and South America, UK, Ireland, Sweden, Denmark etc. Online streaming service and DVD
delivery service are the two main product lines for Netflix.
Netflix was incorporated in Delaware in August 1997 and started its subscription-based digital
distribution service in 1999. 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
3: Strategic Focus and Plan
#Mission- Netflix mission states “our appeal and success are built on providing the most
expansive selection of DVDs; an easy way to choose movies; and fast, free delivery”
#Goal-
4: Situation Analysis
4.1: Environmental factors

Netflix has environmental factors affecting it like economic, social cultural, technological,
political and legal factors. All these factors and many more either positively or adversely
affect Netflix but the major five have the greatest impact.
4.2: SWOT Analysis
Strength-

- 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 has the largest Streaming library compare to other competitors like amazon and
Hulu

Weakness-
- Netflix has a big window of time from when the movie is launched to when it is adopted
by Netflix library. Customers have to wait for 28 days to have access of new content
releases unlike Hulu who can provide them earlier
 - Contractual restrictions on streaming content. Netflix is bound by the contracts with the
content providers restricting its flexibility on expansion of the market and the content.

Opportunity-
- Product Line Expansion of original shows may have a favorable effect to Netflix
subscriber base, profits and brand equity.
- Other potential areas in Internet streaming services where Netflix has opportunity for
growth are the live sports, and online games that Netflix do not currently provide.
Threats-
- Exclusivity agreements with content providers may effect availability of movies for
streaming
- Limits on Bandwidth usage from internet providers
5: Netflix Customers
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. Netflix customers are highly diverse in their watching
preferences, ages, income, technological advancement. Most are accustomed to free/ad based
content and the black market.
6: Competition
DVD by mail competitors are Blockbuster and Red-box. Virtual rivals include Amazon, Hulu,
Red-box Instant, X-finity Stream-Pix, I-Tunes, Love-Film. Other indirect competitors are
providers of home entertainment like cable television, satellite services, other unofficial websites
with movies, you tube etc.
7: Comparison with the two closest competitors-
Netflix Amazon Hulu
Price per month 30 day free trial 30 day trial period. 1 week trial
membership membership.

3 types of plans, $6.67 with two day

unlimited DVD only free shipping for $7.99 and there is a
$7.99, unlimited purchases made in free
streaming only $7.99 Amazon Version with limited
and 2 DVD at a time selection and fewer
$11.99 episodes of shows.
Market Share Account for 89% of Account for 2% of Account for 10% of
TV streams TV streams TV streams
Devices Is compatible with Not compatible with Lacks compatibility
most devices like PC, gaming devices. with Smart TVs and
Xbox 360, PS3, smart blue ray player
TV, Android, tablets
and IOS devices
8: Marketing Planning
8.1: Market Size and Growth Potential-

It started operations in 1999 with 101000 subscribers to more than 117.6 million streaming
subscribers ending this year and 7.51 million physical DVD mail subscribers as of June 2013.
Netflix target the mass market both in United States and internationally and there is a promising
future for growth for Netflix.
8.2: Positioning

Netflix streaming service is positioned as the personalized low price instant movies and TV
shows entertainment with the biggest collection targeting the mass market.
9: Marketing Objective
- Increase the brand awareness and goodwill especially in new international markets.
- Increase number of subscription from 117 million people to 180 million.
- Improving the instant streaming service.
- Use mobile ads to increase awareness of Netflix‘s instant streaming service on particular
mobile devices.
10: Marketing Mix
- Product offering- Netflix could have more recent movies in their collection in order to
attract customers who only want to watch new movies online.
- Promotion communication- Netflix offers a free month trial for all of the new
subscribers aiming at showing the high value of service before the subscriber commit to
Netflix.
- Price- Netflix pricing objective is gaining the maximum market share for Netflix which
translates to customer attraction and retention.
- People- Netflix should have highly qualified and fast customer service people to take
care of the customers because that is the only point of contact with the customers.
11: Evaluation
A pre and post evaluation will be conducted for each of them to measure the effects and
determine whether the campaigns were successful and to what extent they were successful. We
will select small representative samples groups and test consumer perceptions for the campaigns
aiming at improving brand awareness and image, and for the campaigns aimed at improving
sales new sales will be allocated to particular campaigns.