Answer To: The University of Queensland 1 Running Head: Management Situation Analysis Individual Lecturer:...
Harshit answered on May 01 2021
EXECUTIVE SUMMARY
A market plan involves various steps to be identified which if undertaken effectively can help the organization achieve the marketing goal or objective. So, the marketing objective is the first step one should understand to make a marketing plan out of the same. The objective makes it clear and transparent that what is to be targeted and what is relevant for the company. To achieve the objective is the main aim of every organization functioning in the world. (Sull, D. and Turconi, S., 2021)
Netflix, has expanded tremendously in recent times because it caters the segment where usage of TV screens are too high. Their target market is the youth of the country who are fond of TV shows and movies in such away that they become addicted to the same. Getting inspired by the same, the other generation of audience has also started using it. The main competitor of Netflix as on this date is Amazon. The content developers sign their contracts with theses platforms to make available their content to large groups of customers. Based on the number of subscribers the companies have, the studios judge that on which company they should display their content and sign the contract with because making available in two or three platforms the same content would’nt be beneficial for the company. As per recent researchers, they have come to a conclusion that according to the appendix and the score, people either take subscriptions for Netflix or on Amazon. People do not prefer taking both of them at one time. A market plan is essential of organizations at this stage to cater their target customers and increase their international as well as national presence globally so that all the renowned content developers are aware about them.
This project is all about a marketing plan and strategies to be followed according to the same to develop a niche over the marketplace. This can help the company in increasing it’s industry size and industry share. The company is at it’s growth stage if compared to a product life cycle. The strategies formulated in this project regarding the coming quarter or coming year can be achieved only of the company focusses on strategically managing the same by establishing a team who can look after the same and assign responsibilities to individual employees. This can be then viewed by the top authorities time and again. They can look after the same and use the same progress in the work in decision making publishing the same so that people are aware of the steps and new updates in the company.
MARKETING OBJECTIVE
CURRENT MARKET
After Netflix Inc. has faced a huge market drop in the year 2011 in US, they are looking for new subscribers which can be increased from India. At this very moment, the industry is crowded with ambitious players in the market offering cut-rate packages. Already, Netflix was fighting with those big rivals Amazon and Walt Disney and some new broadcasters entering the market has started offering their packages for as low as 40 cents a month. This tactic of offering these plans at such a low rate, has put them into the growth plan of India and their share has increased manifold.
The following is the current market situation of Netflix:
Platform
Monthly price in US
Advertising
Monthly plan in india
Hotstar
-
yes
$0.40-4.30
MX player
-
Yes
$0
Jio TV
-
no
$0
Amazon prime
$8.99
no
$1.8
Zee5
-
yes
$0.7-2.9
Netflix
$8.99-15.99
no
$3.65-11.4
Therefore, the most important rival of Netflix which is amazon is prepared for increasing and expanding users in India.
Also, it has been noticed here, that pricing will be the biggest challenge for companies under this industry.
NEW MARKETS
Netflix is entering into new markets for original content y investing millions of dollars for the same. The company is betting high on on Asia-Pacific for licensed content and original content in huge markets like India. According to the global statistics, the company has invested $400 million between the years 2019-2020 in establishing original content as well as for obtaining licenses for original content from the developers. When the company reported the quarterly results for the last month, it was reported that the company has generated half of the paid memberships or subscription fees from the APAC.
The company also entered into allowing streaming and adding subtitles to their content using all the regional and local languages such as Japanese, Korean, Malay, Hindi, Bahasa (language used in Indonesia) and Thai. They have also tried to make the application interface of Netflix available in the regional languages.
Also, after realizing that some countries like india are more crowded with people using the subscription only on mobile and using it on the go and want flexible plans for the same. Netflix has then thought of entering into the mobile market by offering the content in for only mobile phones at a price less than $5 from the normal plans.
It is has been noticed that country like india is second largest among the internet subscribers in the whole world after China and also growing rapidly by a 13% growth rate all over the world. Therefore, this market has been rapidly growing in these years with a rapid increase in the internet subscribers and also making data available at such cheaper rates by telecom companies like Reliance Jio which has actually allowed a million internet users to use internet for the first time in their life. The company, then tried to enter into markets where collaboration with these telecom companies could help them reach a million users. They offered a no cost mobile only subscription along with the jio plans starting from INR 399 and offered free subscription with the basic Jio plans for broadband service.
TARGET MARKET
The marketing objective of Netflix is to expand it’s customer base as much as possible nationally as well as internationally. This will help the company increase it’s value of goodwill internationally by catering the international market and increasing international presence as a result of it. This will create awareness about the company globally so that they can have a larger customer base and even by making people aware about the same, the company can expand it’s place in the industry as a whole. This can in turn, add up to the revenue of the company and increase the same significantly. Also, this helps the company in better decision making and revision of plans according to the changing needs in the market because the market is largely dynamic in nature. Rapid establishment of the strategies formulated will be the aim of the company because by this they can prevent their competitors to enter the same strategy in their organization and copy all the plans.
POINTS OF DIFFERENCE
The major points of difference that will make the company unique from it’s competitors are as follows:
1. Entering into low price markets by giving mobile only subscriptions at lower and cheaper rates and attracting customers belonging to all types of income groups.
2. Delivering world class content to the subscribers and not differentiating among the people taking high-rate subscriptions and people taking low-rate subscriptions just like hotstar.
3. Offering flexibility is usage of technology by the customers by making available the content in every possible technology which the subscriber has it with themselves.
4. By offering online streaming in all the local regional languages which the other rivals in the industry does not know the advantage out of it.
These points will make the company different from all the companies in the industry delivering content for online streaming. This can make the company stand out in the market and deliver more at the same price.
MARKETING PLAN
In accordance with the marketing objective as stated above, the marketing plan will revolve around how and by what ways the company can target to increase it’s customer base and also target the audience internationally. This can be achieved to a large extent by adding expenditure in advertisements in US through different mediums such as televisions, newspapers, radios, etc. All the efforts involved in marketing the same can be shifted to the technology the current users are using it. For example- mobile phones which nowadays are used on the go by each and every individual, so the company can try to focus playing their content on small screens as well. This can be achieved by mobile advertising.
MARKETING PROGRAMME
Netflix have a great marketing strategy which help the company create a niche over the Marketplace. It helps the company to maintain a competitive edge in the industry. Netflix offers a plan which is suitable for all types of customers and is able to attract customers belonging to different income groups. It also gives it’s customers full flexibility to play their desired movies or shows on whichever technology they want to. They can play it on televisions, DVD’s, computers, mobile devices, laptops, ipads, etc. Another strength that Netflix can take an advantage out of is that the content on Netflix is fully original and varies from region to region. If we see geographically, the company has it’s subscribers based on all parts of the world which includes Canada, Australia, India, US South Africa, etc. It is currently serving over 190 countries globally. The company has a lot of subscribers all over the world which gives an advantage to the company to negotiate with it’s competitors and the studios who offer there content to be played on Netflix. Companies giving there content to Netflix get attracted by the number of subscribers Netflix currently has which is ranging around one hundred and thirty seven million. They have a notion which is fully logical in every aspect that there content can be viewed by a larger audience as compared to launching the product themselves and not through Netflix. The exponential growth this company is facing can lead to strategic marketing plans in future as well so that they can remain at the growth level under the product life cycle. This has not only increased the content they are presenting but also captured market apart from the US. (Kaur, H., Kaur, H. and Singh, A., 2020)
(A) Increasing advertisements
Following are some platforms in which the company can increase it’s visibility of the content by placing advertisements through the same:
· Marketing through facebook
· Placing advertisements on websites which accessed by today’s youth
· Adword marketing
(B) Establishing segment reporting and analysing the reports segment for better decision making
Since 2016, the company has stopped judging their financial performance and overall growth in the industry by the geographical location. They have started segmenting their performance based on the tastes and preferences of the customers or subscribers they have. Different customers have different views and choices when it comes to watching movies or shows on screen.
(C) Tastes and preferences related to genres according to each individual
Netflix has started bifurcating their customers according to the matching TV shows and movie choices. By segmenting these they can profitably calculate the financial performance of the company from the eyes of a particular TV show or movie streaming online. This will benefit the organization in the near future, to take decisions on contracts to be entered into with different studios and content developers according to their wants and gains. The brand Netflix uses a typical name for these subscribers who have a similar taste related to TV genres which is taste doppelgangers.
(D) Models and plans to be established and involve the same in the decision making process
They can also make it a marketing strategy to target those customers who have similar type or model of subscription. By seeing the model of subscription subscribed by the customers the company predicts their loyal and long run customers. For example- they have plans based on duration which is monthly plan, six months plan, three months plan and yearly plans. The customers who buy a yearly plan are the customers who are loyal and in the long run they are predicted to be consistent with their subscriptions. Therefore, as a marketing strategy the company can decide to better serve the people who are willing to take longer duration subscriptions by giving them extra benefits and discounts so that they become the potential and target customers of the brand. This can be great marketing strategy by Netflix. This strategy may involve collaboration with certain banks or online payment chains through which the company can offer many discounts to their relevant customers in the form of cashbacks and card discounts.
(E) Amortization of costs related to contracts entered into with the studios and content developers
Also, as a huge marketing strategy the company is trying to stack it’s overall debt to establish it’s content library full of originals. This in turn can be written off over the future years by treating the same as an expense. This was a daring decision by the company because the watchers cannot binge watch the same enormous thing again and again over the years in which the expenditure can be written off. But, fortunately the same is working great with the company and so they have planned to carry out the same in the near future also resulting in a great marketing strategy. (Roig, A., Clares-Gavilán, J. and Sánchez-Navarro, J., 2021)
(F) Advertising adding value to goodwill of the company
The amount the company spends on marketing is worthy as compared to the awards and applauses they receive at the award shows. The company is in parity with the companies like HBO who are legacy content producers. (Crews, C.O., Colson, C.J. and Elson, R.J., 2020)
(G) Expanding the geographical area which they want to cater to and where it is unavailable currently
Another marketing plan for the company is to target customers from other parts of the world also as Netflix is not available...