Netflix Marking Startegy

Netflix 7 P's of Marketing Mix - Things You Must Know

Surprisingly Effective Ways To Netflix Marketing Strategy will make you hook up with Netflix - WORLD LARGEST ONLINE STREAMING MEDIUM

What Netflix wants is to entertain the world. It does not matter whatever your taste, where you live, it gives you access to best-in-class TV shows, movies, and documentaries. With Netflix, a user can control what they want to watch, when they want it, with no ads, in one simple subscription.

Netflix is now streaming its content in 30 languages with a presence in 190 countries. Netflix believes that great stories can come from anywhere and be loved everywhere. Netflix claims to be one of the world’s biggest fans of entertainment, and always looking to help the user find their next favorite story. 

So how did Netflix make this difference and emerged as a brand? What marketing strategy was adopted by then to establish in this entertainment world.

This is a small video that gives you a brief idea about Netflix

 

Credits:  Writer/Editor/Animator/Voice: Mishaalikka (Netflix YouTube Channel)

So before we go into the Netflix marketing strategy let's go and see how and where it all started.

HOW, WHEN, AND WHERE DOES NETFLIX HAPPEN?

Netflix, Inc. is the world’s leading provider of Internet entertainment, headquartered in California, the USA.

1997 - Reed Hastings and Marc Randolph had an idea to rent DVDs by mail. They tested the concept by mailing themselves a DVD. The DVD arrived intact, and the idea for Netflix was born. 1998 - Netflix.com, the first DVD rental, and sales site are launched.

2006 - Membership grows to 5 million. 2020 - Top 10 lists debut, allowing members to see what’s popular for the first time. Netflix is the most-nominated studio at the Academy Awards and Emmys. The Hardship Fund launches to aid creative community workers impacted by COVID-19, and two percent of our cash holdings move to financial institutions supporting Black communities.

2021 - Membership surpasses 222 million. Netflix releases its first-ever film and series diversity study, in conjunction with the USC Annenberg Inclusion Initiative, and announces plans to reach net-zero greenhouse gas emissions by the end of 2022.

Of course! Netflix's marketing strategy work did wonder for them and it has reached to become a world-dominating site for online streaming in the entertainment business.

WHERE DOES NETFLIX STAND TODAY?

Netflix comparison with two of the dominating brands in India.

NETFLIX MARKETING STRATEGY (7PS)

1. Product

Netflix offers a wide range of content in several languages, genres worldwide. Original movies and shows enjoy heavy demand and popularity in the global market like Money Heist, The Tinder Swindler, Home Team, Despicable Me 2, 13 Hours: The Secret Soldiers of Benghazi, Squid Game, most recent one – All of us are dead and many more. Netflix focuses on creating its own content that included several famous movies, shows, and documentaries instead of leasing content generated by others. Original content helped Netflix to differentiate from others and create a brand value of its own that helped it to grow faster among the consumer market. 

Netflix offers an extensive list of programmes e.g. features films, TV shows, documentaries, Netflix originals, and many more.

It has three major categories of content i.e.

1. Licensed non-first-window content

2. Licensed original first-window content

3. Owned original first-window content (Netflix, 2021)

Netflix membership plans available for everyone is,

1. Basic plan

2. Standard plan

3. Premium plan.

Movies and TV programmes are added every week on Netflix to cater to the growing demand of its subscribers. It all started with a video renting business model and now Netflix operates and has its presence in around 190 countries worldwide.

2. Pricing strategies of Netflix

It is still an arguing subject for most of the analysts wherein, some debate on Netflix being a value-based pricing strategy and some say it has a competitive pricing strategy. However, it is worth mentioning that Netflix is not the cheapest one out there.

A comparison of brands - Netflix,

3. Place/distribution channels of Netflix

When we talk about marketing placement of the product at the right place and time makes a huge difference. Netflix is an online streaming business that has its presence virtually anywhere and anytime. Netflix subscribers can watch it on their smartphones, laptops, tablets, smart TVs, streaming devices, and game consoles.

As per current stats, Netflix is available in over 190 countries however, there are few countries and territories where the service is not available due to U.S. government restrictions on American companies (Netflix, 2021) i.e. Crimea, North Korea, and Syria.

4. Promotional strategies of Netflix

Netflix is one of the biggest advertising buyers in the entertainment industry in the world. It has adopted several promotional strategies to attract and retain its subscribers. Netflix’s first-month free trial policy is also a promotional activity to persuade potential customers to subscribe and use its services.

Netflix - The increase in marketing expenses for the year ended December 31, 2021, as compared to the year ended December 31, 2020, was primarily due to a $222 million increase in advertising expenses, partially offset by increased payments to marketing partners.

Comparison on Netflix meeting expenses,

In addition, personnel-related costs increased by $116 million, primarily due to growth in average headcount to support the increase in production activity and continued improvements in our streaming service.

Netflix promotes itself by reaching its target audiences through all media channels such as celebrity endorsement, advertising on billboards and print media, word of mouth, and extensive use of social networking sites.

5. Netflix on People

Netflix’s core philosophy is people over process and as a major player in the entertainment industry in the world it has grown in both size and scope over the years with approximately 8,600 full-time employees in 2021.

So how does Netflix hire people and what are the focus areas?

Like all great companies, Netflix strives to hire the best and value integrity, excellence, respect, inclusion, and collaboration.

What is special about Netflix, though, is how much they:

 Encourage independent decision-making by employees

 Share information openly, broadly, and deliberately

 Are extraordinarily candid with each other

 Keep only our highly effective people

 Avoid rules

More specifically, they have great people working together as a dream team and with this approach, they are more flexible, fun, stimulating, creative, collaborative, and successful organization.

Women now represent over half of its global workforce showcasing Netflix's latest diversity numbers. Overall, women now make up 51.7% of Netflix’s global workforce, up from 48.7% in 2020. But in technical roles, women account for a smaller share: In 2021, 37% of Netflix's workers in those roles were women.

Netflix happiness score - The employee happiness at Netflix is listed in the Top 5% of similar size companies on Comparably.

6. Process in Netflix

Netflix caters to consumers from different age groups, it always strives to keep things simple and easy to understand wherein signing up with Netflix is a straightforward process. By offering 30 days free trial for new members it ensures to gain an opportunity to give the best of experience to the user that mostly ends up being hooked up with Netflix.

Ok, now this membership can be canceled any time if the user wishes to in very simple steps however, the best part is, if the user enjoys its service and would like to continue, they need to do nothing as their membership will automatically continue.

7. Physical Evidence of Netflix

The last element to address the marketing mix is Physical evidence, Netflix its website and app are its primary physical evidence along with its offices and data centers are also part of the physical evidence. It also has offices and data centers in many countries e.g. the USA, the Netherlands, Brazil, India, Japan, and South Korea.

There is no doubt that Netflix is the best user-friendly website and a mobile app.

Conclusion

Indeed! Netflix has identified and understood the target audience and accordingly has positioned itself in the market very well. Moreover, Netflix continues to strive for original content and cater to the need of its customer. Netflix has proven with its marketing strategy that is a unique and well-established company not only in India but around the world.  

Netflix has already established itself as a brand and strengthened its footprints in the entertainment world.  As we have gone through the marking strategy adopted by Netflix and we know how a small idea has turned into a big giant in its segment. Also, Netflix has already paved the way for other aspiring companies as well.

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