2. Who We Are
“We are about the freedom of on-demand and the fun of indulgent viewing.
We are about the flexibility of any screen any time.
We are about fantastic content that is only available on Netflix. “
Reed Hastings, Netflix CEO
Brand Value
Through a Lean Approach they achieve a Global and High-Quality Brand
Value Proposition
• Originality
• Convenience/usability
Device/Platform accessibility
Large variety of movie selection and series
• Price: unlimited streaming for a relatively low cost
Global Market Share
• Online Streaming leader.
• Over 40 countries with
more than 50 million
subscribers

3. Who We Are
Online
Streaming
Disc by
Mail
• USA Market: 37.2 M subscribers
• International Market:
• Canada - 3 M
• Latin America - 310,000
• Europe - 20% of Netflix’s total market
• Future market - Asia
• Operating systems - IOS, Android and Windows
• Smart TVs
• Media boxes - Amazon FireTv, Apple Tv
• $7.99/ month - one dvd per time
• $11.99/ month - 2 dvd per time
• $7.99/month - unlimited streaming
+
through dynamically continuous
innovations (since 2014)
• $11.99/ month - unlimited streaming
up to 4 screens
Marketing Mix
Price Place
Product
Core
Product
Augmented
Product
Actual
Product
• Access to video content
• Unlimited streaming
• Several users at the same time
• Monthly fee subscription
• No late or shipping fees
• Movie recommendation/customization
• Exclusive content
• Online streaming
• Disc rental by mail
Promotion
• Direct Response Marketing
• Emotive Marketing
• Word of Mouth
• First-mover-advantage/Blue Ocean
• Functional Area Strategy
• In-house Content

4. Who Our Customers Are
Traditional Disc
Delivery
• Older people
• Willing to wait to meet their expectations
• They expect a rich viewing experience
• Niche market
Online
Streaming
• Younger/ Internet savvy
• Value easy/immediate access
• Portability and accessibility of the product
 Geographical Segmentation
Regional (US, Europe)
 Demographic Segmentation
Age (18-59)
 Psychographic Segmentation
Through the likes/interests specific genres can be
recommended
 Behavioral Segmentation
Occasional (special occasion, holidays, seasonal)
User status (potential users, frequent user, first
time users)
Micro
Segmentation
“Each campaign is meant to target
and appeal to the specified tastes,
needs, wants, and desires of the
small groups and individuals that
make up the microsegment"

5. Who Our Competitors Are
Traditional Disc
Delivery
Indirect
Competitors
Pros Cons
Vudu Access to new movies as soon
they are released on DVD
Instead of $12 person Cinema
you can get have everyone for
$4.99 minimum
Movie to movie basis is
very expensive when
compared to monthly fees
models
Target Ticket Similar to Vudu
Itunes Similiar to Vudu
GooglePlay Similar to Vudu
Amazon Instant
Video
Similiar to Vudu
HBO GO* Access to High quality HBO It requires cable connection
• Redbox - >50%
Market share
• BlockBuster - Filled for
bankruptcy
(Netflix lost more than 50%
of its customers since
2012)
All of these compete in
a slightly different
market once it is paid
per movie instead of
monthly
Online
Streaming

6. Who Our Competitors Are
Direct Competitors Pricing Market Share
Amazon Prime
instant video
Both compete in a
monthly fee basis
Both produce
original content
99$/year 2%
“HBO Linear” HBO is known by
the quality of its
content
NA
Hulu $7.99 10%
Netflix has 89% of the Online Streaming
Market
“…industry experts favor Amazon, citing the e-commerce giant’s scope, scale, and
ability to crush competitors.”
”…Amazon Prime Instant Video marks a turn in the online streaming tide, a turn that
could eventually be deadly for Netflix in the long run.”
Forbes, 2014
“Starting back in 2011 we started saying that HBO would be our primary long-term
competitor, particularly for content.”
Reed Haastings, Oct 2014, variety.com

7. Strenghts Weaknessess Opportunities Threats
Brand Recognition
• The Netflix brand is very well
known - best Brand equity of
the Year 2014 for video
streaming subscription
• Fastest rate of brand equity
increase
(Harris Pol EquiTrend Brand of
the Year 2014)
Accessibility
• Netflix is available on nearly all
internet enabled devices
Original Content
• It allows customization
• Increase customer acquisition
to high quality content
Cost of Content
• High cost of mass
licensing packages and the
in-house original content
production forced Netflix to
have large amount of debt
DVD Subscribers
• More than 50% decrease
since 2012 - 15M to 6 M
Raising
Subscription
Prices
• Customer satisfaction
highly influenced by rising
prices as proved in 2011
International Expansion
• The ability to create original content
will enhance international growth.
Original In-House
Programming
• With many house-hold entertainment
devices connected to the internet,
there is an opening for internet tv
and Netflix’s exclusive in-house
content poises the company for that
demand.
Word-of-Mouth
Campaigns
• It is an effective method for customer
acquisition - one of the main
marketing goals of Netflix
ISP’s
• Netflix accounts for about 30% of
daily internet traffic. With net
neutrality laws struck down, Netflix
may have to assume more debt or cut
content.
Competition (Amazon
Prime, HBO,Hulu)
• Both Amazon and HBO produce their
own content and Hulu compete with
Netflix on the online streaming
platform market.
Content Price
• Lack of leverage makes the price of
licensing and renewing those license
agreements remain to be the largest
threat to the company’s ability to
operate at a profit.
SWOT Analysis

8. NOT A BLUE OCEAN ANYMOREUNLESS

9. UNLESS
Keep on the In-House Production
• Keeps people subscribing for longer periods
• Allows Netflix to raise its prices in the future
• Hedge against rising content licensing costs - (700% increase in
2 years)
Start New Promotion Strategies
• International Expansion (Europe, Asia) - Product and Communications
Adaptation
• Direct Response Marketing - based on specific content - using social media
• Allow sharing content on social media platforms
• Uniform features globally
• Enable access to all content in local languages (audio/subtitles)

10. UNLESS
We Change the Vision of the Product
Netflix is not an add-on anymore… or
extension
It is a Substitute
If you have Netflix you don’t need anything
else
Imagine a platform where you have
• “IMDB’s top250” movies + best series
• The best Documentaries according to YOUR preferences
• The best News that YOU are looking for
• The imaginary link between YOUR culture and the rest of the
world
Just for $8/month

11. Special Thanks to Professor Nick
Team 11
Marketing Final Project
Joao Simoes
Faateh Dhillon
Roshni Rajput
Maria Latronico
Yu Yang
Rohit Gite

12. References
• http://www.businessweek.com/articles/2014-09-11/netflix-looks-to-europe-for-streaming-growth
• http://www.statista.com/statistics/250937/quarterly-number-of-netflix-streaming-subscribers-in-the-us/
• http://www.statista.com/statistics/324050/number-netflix-paying-streaming-subscribers/
• https://pr.netflix.com/WebClient/loginPageSalesNetWorksAction.do?contentGroupId=10476&contentGroup=Company+Facts
• http://www.pcworld.com/article/193972/will_netflix_suffer_from_delayed_gratification.html
• http://news.yahoo.com/numbers-netflix-subscribers-205626746.html
• https://pr.netflix.com/WebClient/Login.jsp
• http://www.internetworldstats.com/stats.htm
• http://www.pewinternet.org/three-technology-revolutions/
• www.vudu.com
• www.hulu.com
• www.netflix.com
• www.hbogo.com
• http://investazor.com/2013/11/15/netflix-saga-part-1-understanding-business-model/
• http://pt.scribd.com/doc/40684328/Netflix-Strategic-Marketing-Plan
• http://www.forbes.com/sites/maggiemcgrath/2014/05/06/in-the-streaming-showdown-between-amazon-and-netflix-which-is-the-better-
long-term-play/
• http://en.wikipedia.org/wiki/Microsegment
• http://cable.tmcnet.com/topics/cable/articles/2014/10/15/391387-hbo-will-launch-stand-alone-us-streaming-service.htm
• http://variety.com/2013/biz/news/redbox-now-controls-more-than-50-of-home-video-disc-rental-biz-
1200568295#u=http://variety.com/2013/biz/news/redbox-now-controls-more-than-50-of-home-video-disc-rental-biz-
1200568295;k=pmc-adi-31bb2464aad8b905af7a81e1d57b77ae
• http://netflixreport.wordpress.com/2014/02/10/swot-analysis/
• http://marketography.com/2010/11/10/online-business-beyond-genius/