This marketing plan seeks to encourage growth of sales and returns on capital by encouraging more subscriptions. It also intends to intensify promotional campaigns and support customer relations and experiences. The employees too will have a chance to grow and be satisfied working at Netflix. Through it, Netflix is bound to consolidate itself as a mega streaming content distributor worldwide.
We endeavor to be a leading company in distributing entertainment content that is affordable, accessible, quality and affordable. We also want our shareholders to earn better sustainably. Our employees should also have an environment that grows them and thus work well in entertaining the society and making it livelier.
Identifying Company Goals and Objectives
Netflix aims to retain and increase its members through blogs, social media forums, and internet presence and through the usage of mobile applications. It is also our dearest objective to capitalize heavily on our competitive advantage of being the leading distributor of online content. This will be a key are in increasing our sales. As sales spiral, we endeavor to grow our revenue by 30% and subsequently hike our per share earnings by 50 cents.
Managing the Business Portfolio
Our portfolio will feature three products. The three are DVDs, movies and entertainment shows’ videos. This is preferred because it has heavy demand among the youth. Also, it is the easiest to identify with since most of the producers and actors are celebrities loved much by the youth.
Strategic Business Unit Planning
Developing the Strategic Business Unit Mission
We want to be known as the source of the best ever movies, shows and documentaries that reach the customer conveniently and at reasonable rates. It is also our mission to always cater for the needs of our customers whenever they want help from us in terms of content and ease of access.
The SWOT Analysis
Netflix shares a close relationship with entertainment companies that distribute the videos and other streaming content. Through this relationship, Netflix is able to acquire its products at fairly cheap prices. Netflix provides options of limited and unlimited nature. These options extend convenience to consumers since their needs are catered for quite well without hurting their pockets. This builds loyalty in our customers. The client base of Netflix is well endowed with over 16 million subscribers who continue to spiral gradually owing to the affordability in subscriptions. Netflix has a number of challenges arising from its operations and decisions. The company lacks enough awareness and its price strategy has been bad for some time. The effects of the bad strategies are still felt to date.
Among the many opportunities that Netflix has included the collaborations it has with the largest and popular producers of entertainment materials. Access to companies like HBO, Universal Pictures and CBS assures it of continued supply of quality stuff. The partnerships with Apple and Microsoft have also given it an opportunity of being incorporated in the companies’ products. Through such partnerships, Netflix will increase its awareness among the users of the products. The rising demand of the movies and streaming content worldwide needs to be satisfied using many products. This gives a very big opportunity by tapping on this demand and rake in a lot of profits.
Competitors like Blockbuster and Google are making the company have difficulties in marketing. This difficulty threatens its consolidation as the leading streaming content seller. Compounded by that, the new trends where entertainment companies sell their content by themselves limits the supply of Netflix. It thus fixes the company leading to a decision to sell some of its capital. The legal requirements in some countries also pose challenges especially on the type of content delivered. The social inclination in terms of the videos and movies they watch further narrow their clientele especially countries that bar external sellers of streaming content.
The Marketing Plan
Identifying Marketing Objectives
Netflix aims to increase its client base by over 1.1 million subscribers in the next two financial years in a bid to spur its current income by over 30% and increase share earnings by 55 cents to one dollar per share. It that vein too, it wants to increase the consumer traffic on its products by through increased promotional and awareness campaigns through television, internet and blog pop ups. Our products should also be convenient and affordable. We should also increase our market grip well.
Defining the Marketing Strategy
We want to employ a brilliant but simple strategy that earns revenue easily. We plan to offer DVDs renting for a low cost. With the quickness one can watch and send it back via email, we can give another DVD rental from our queue. One will pay money cheaply and save a lot in rental costs having been promised new videos just the same day we receive the initially sent DVD. This information will be relayed in our promotional platforms.
We will also create ubiquity whereby we shall be distributing the content in the format it is desired most. This will also be coupled up by providing in mostly used gadgets like phones and tablets. Releasing ideas early will also go a long way in encouraging our awareness campaigns since it’s easy to abandon an idea that is not ready. We will instead be focusing on improving them over time. It is also our strategy to take up on related business and eat up on the opportunities of marketing available. We can fund shows and producers of the types of entertainment products we produce and in the process, popularize ourselves as we earn money. This is referred to as vertical integration.
We will use our subscriber base to compete favorably online with other companies like Amazon.com and Hulu. If we capture the market share, we will be at a better position to compete favorably. In the same perspective, we shall differentiate our videos and movies by creation of our own content. In our unique way, we will easily capitalize on the desire for unique products.
Developing the Marketing Mix
Netflix products will have different and stylish designs lovable by the youth. Authenticity seals shall be used to avoid imitation. Payment should be convenient through debit card or cash transfer methods. Discounts and credits can be given to frequent buyers. We will avail our products via social media platforms, blogs, Apple TV gadgets and tablets. Mails will be used to deliver our products to clients. However, these platforms should be linked to our website so that we can to track where traffic is most experienced.
Our promotional programmes shall be aired on television and social sites. Here, the youth will be reached with ease. Responses shall be quicker to attract membership. Popular youth magazines and other media can also be used.
Netflix will increase its brand awareness among the youth to increase familiarity and comfort ability with our products. We will also target the means frequently used by the youth to further increase visits to our sites. This will include blogs, social sites and technology sites. Similarly, we will promote free trial offers for the customers to taste out products. Increasing demand of Netflix products via popular devices will also force the makers of the devices to accept streaming on unlike presently.