• Established market • Profiting from technological
• Strong, well known brands advances • • Possible growth areas – Canada, Strong record of NPD Mexico, Colombia, Chile, Brazil, • Innovative U.K. Australia • Technical innovation • Increase in sales of games software -20%
Weaknesses Threats • There is no guarantee that a new product will be successful • Highly competitive and turbulent market • NPD process is lengthy and sometimes challenging • Proliferation of piracy
• Netflix’s brand could be damaged by the actions of third parties
(electronics manufacturers or DVD suppliers) • The sources of new subscribers may not yield the required growth for the promotional cost, resulting in an adverse impact on marketing expenditure and customer recruitment • Netflix has offices in earthquake zones so may suffer power blackouts which are uninsurable. • A breach of security of personal customer data would be a risk to its reputation and may lead to legal claims against the company • Protection issues – intellectual property infringements, domain names, legality of the discs, copyright and censorship rights. • Ability to raise finance may be compromised- borrowing will incur additional debt, ability to pay suppliers etc are all important considerations • Netflix must ensure that its capital funds are sufficient and accessible
• Opportunities are endless • Sophisticated database marketing techniques now possible (companies can conduct carefully targeted campaigns) • New media – apps, hand held devices etc allow viewing of videos, films, DVD’s etc. 24/7 no matter where you are
Segment – 50-65 ‘Baby Boomers’ – Have relatively high disposable income, possibly paid off mortgage, want to enjoy life, spend money. ‘Empty Nesters’ – new media savvy – so can be targeted effectively
content driven and interactive such as MySpace, YouTube, etc. Use consumer electronic websites, use of blogs, SMS messages to mobiles. Use retailer websites, and introductory offers to elicit trial and purchase.
force in the home entertainment industry with a strong and loyal customer base, enabling it to invest in a robust, innovative marketing plan which will keep it top of mind within all its target markets
technology to consumers worldwide. At the same time valuing honesty, integrity, empowerment and openness. By consistently aiming for breakthrough excellence in technology development, we believe we will stay close to our consumers and communities.
products which delight our customers • Committed to developing the best home entertainment package for all our customers • Committed to a strategy of continual product development, licensing agreements and innovation
successfully in the USA and other potential markets, such as Canada, the U.K. Australia, Mexico, Argentina,Colombia and Brazil • To continue to develop new products quickly giving us a crucial competitive advantage • To tailor global brands to suit local preferences (Think global, act local)
• Place U.S. player – but needs to drive more sales in the USA and open new markets in Canada, U.K, and possibly Australasia, Mexico,Argentina, Colombia, Brazil, and India -(Bollywood factor)
• Promotion Web site – continually update the content. Always make available the latest releases featuring famous celebrities – refresh regularly. Highly interactive with customer base - encourages viral marketing
• People Train and develop the existing staff. Selective recruitment of key sales/marketing/technical personnel. Recruit proven staff in overseas markets to develop sales and distribution. • Processes Regular internal/external communication. Long term relationship building. B2C customer involvement. Relationship marketing. Customer Lifetime Value. Branding strategy.
Structure Netflix Head office based in US Where will subsidiaries be sited?
Strategy Focus differentiated aimed at loyal customer base and potential customers in Canada, U.K. and in time other markets, such as Brazil and Australasia
Physical evidence Interactive, quality web sites Number of blogs, endorsements from consumers The Netflix logo and brand ROI table – comparison with other home entertainment providers
Internal Develop CRM databases for collecting retailer, consumer feedback and insights into future needs, wants, industry trends, (market intelligence)
