Competitive Analysis in terms of Marketing Topic 2022

Competitive Analysis in terms of Marketing 4P & Marketing Mix
In this part, we analyze Marketing Mix strategies of Netflix, a mixture of four elements: Product,
Price, Promotion and Place that Netflix has the option of adding, subtracting, or modifying to
create a desired marketing strategy.
1. Product
In general, Netflix offers products which are program streaming and DVD delivery services, the
first one being intangible and the second one being tangible. Netflix provides service that offers a
unique platform for streaming movies and TV shows, putting out the intermidiary role of cable
service or movie theaters, and offering the convenience of in-home theater or the delivery of
movies right to audience’s mailbox. Currently, Netflix is the only company to offer both
streaming and DVD delivery in the market.
Founded in 1997, Netflix’s initial business model was DVD sales and rental by mail. In this year,
Netflix launched with a video library of approximately 900 titles and a 7-day maximum rental
policy. Later, Netflix enriched its video library to 3,100 titles by April 1999, which reached to
5,200 by January 2000. As DVD was attracting the attention of the audience as one of the ruling
means of entertainment at that time, Netflix understood the significance of technology and its
widespread adoption among customers.
In 2007, Netflix decided to permanently transform the business by launching its first streaming
product – Watch Now. Netflix launched the service with 1000+ titles which included a series of
superhit videos, movies, documentaries, and films.
In 2013, Netflix reinvented itself as a TV and movie studio and launched Netflix Originals and
this marked a crucial turning point in Netflix’s growth as a company. Netflix has finally

considered of being a one-stop-shop for original content, distributed via Netflix’s proprietary
platform. The more content Netflix produced, the more subscribers it attracted which later turned
into higher revenue, which meant more investment for content creating in a virtuous cycle of
constant growth. Some of the popular shows that Netflix product which made it won accolades
are: House of Cards, Beast of No Nation, Stranger Things, Black Mirror, The Crown, etc.
2. Pricing Strategy:
Netflix pricing is the amount that a customer is expected to purchase a product to use the
services. To use its services, customers can first try a first month for free of charge and after that
if customers wish to continue, they can take monthly subscription without signing any contract,
no cancellation fees and no commitment. Customers have several payment option to make a
monthly payment and have the freedom to change your plan or cancel online at any time. After a
month free trial is over, Netflix charges an amount in the form of subscription which depends
upon the type of plan that customer may choose as below.
Basic Standard Premium
Monthly cost* (Canadian dollars) 9.99 14.99 18.99
Number of screens you can watch on at the
same time
1 2 4
Number of phones or tablets you can
have downloads on
1 2 4
Unlimited movies and TV shows ✓ ✓ ✓
Watch on your laptop, TV, phone or tablet ✓ ✓ ✓
HD available ✓ ✓
Ultra HD available ✓