Strategy and Brand Management for Netflix: Analysis and Recommendations

This report provides an analysis of the strategy and brand management of Netflix, including PESTLE analysis, SWOT analysis, Porter's five forces model, marketing mix, and STP analysis. It also includes recommendations for improving brand recognition and achieving short and long-term goals.

Strategy and Brand
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of the company.......................................................................................................3
Pestle analysis.............................................................................................................................4
Swot Analysis..............................................................................................................................5
Porter five forces model..............................................................................................................6
Marketing mix.............................................................................................................................7
STP Analysis...............................................................................................................................9
Competitor Analysis....................................................................................................................9
Sources of brand equity.............................................................................................................10
Strategies for brand management .............................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
Books and Journals...................................................................................................................14

INTRODUCTION
Organisations have to develop strategies in order to manage their brand according to their
business environment. It requires analysis of market so that brand can understand their actual
position in the targeted market. The planning can be done on the basis of objectives which
company have to achieve (Borges‐Tiago and et.al., 2020). Brand management aims to improve
the brand recognition, increase their revenues and achieve their short term and long term goals.
This report is based on Netflix which provides subscription streaming services, headquartered in
California, US. It was founded by Reed Hastings and Marc Randolph in August 29, 1997. they
have used number of methods an d techniques in order to capture the large market area. This
report will include how an organisation manage and improve their brand image. Various models
for analysing market including positioning strategies and competitor analysis is carried out. The
external and internal factors of an organisation are identified along with evaluation of their
marketing mix strategies.
MAIN BODY
Background of the company
Netflix is an American company which deals into production and subscription providing
services. They attract customers by providing them services related to televisions and films
library which includes number of series according to the interest of their customers. Services are
provided through distribution deals and they also own their productions which is named as
Netflix originals. They offer their services in all over the world except some of the countries
such as North Korea, China, Syria, Crimea and many more. Audience can easily access Netflix
through application software which can be easily installed on their smartphones, computers,
digital media players, virtual reality headsets, etc (Chen, 2020). services an be availed via web
browsers also which is highly accessible for large number of audience. Netflix used innovative
and creative ideas in their productions so that they can easily attract large number of viewers and
audience in appropriate manner. There are various comprehensive plans are introduced by
Netflix for their customers so that they can effectively subscribe. This results in generating
higher revenues without involvement of excessive costs. Different types of categories are offered
by an organisation so that they can target different segments of the society.

Pestle analysis
This analysis is used by organisations in order to analyse their external factors which can
affect their operations and profitability. Netflix can identify their external risk and threats which
assist them in development of effective strategies which can help them in smooth operations. The
PESTLE analysis of Netflix is mentioned below -
 Political factors - Governmental influence and their policies plays important role in
revenue generation of an organisation which is classified under political factors (Guo and
et.al., 2018). Netflix focus on developing their policies which are according to the
governmental rules and regulations of the targeted country. Sometimes they have to face
issues due to their censorship as few of their content is prohibited in some of the
countries. In order to overcome this issue they have followed several legal obligations so
that they can generate revenues in appropriate manner.
 Economic factors - The supply demand graph of an organisation is influenced by the
impact of economic factors. These factors include economic growth, inflation rate,
exchange rate, etc. they majorly focus on the purchasing power of audience before setting
prices. Netflix offers various schemes related the subscriptions so that they targeted
audience can subscribe without any difficulties. Their high quality content justifies the
rate of subscription which further help them in development of their appropriate brand
image in market.
 Social factors - All the demographic trends, equality roles, gender and societal norms are
classified under this factor. Netflix provide favourable working environment to their
employees by focusing on their needs and demands. The kind gesture of the management
of Netflix influence large number of people in order to subscribe their services. In order
to contribute towards development of society, they give 2% of their total of annual
revenues to black community. It helps them in developing their positive image among
their targeted audience so that they can increase their profitability rate.
 Technological factors - Advancement, technical awareness and automation is highly
important in an organisation. This assist them in upgrading their services and products
which can attract large number of audience (Hemantha, 2020). Netflix uses various
technological advancements in their operations which results in production of high
quality content and video. Content rating systems are also used by them so that they can

understand the actual position of their services in targeted market. Netflix also offers
automatic translating software with the help of technology which increase their sales.
 Environmental factors - Ecological awareness is highly important for organisations so
that they can contribute positive benefits towards the environment. Netflix take
participation towards the production of renewable energy by investing into EPA. It shows
their willingness to preserve the resources so that they utilisation can be done in effective
manner. They have reduced the paperwork in their offices so that they can save papers.
They have developed number of policies regarding reusing and recycling their waste
material which save lot of natural resources. Legal factors - All the laws and legal policies should be taken under consideration by an
organisation during operating their business (Huang and Guo, 2021). Netflix focus on
protection their rights, labour laws, copyrights, health and safety and many more. Netflix
have developed various privacy policies which reduce the sharing of content and prevent
streaming of videos on multiple devices.
Swot Analysis
This framework is responsible for identification of internal factors such as strengths and
weaknesses. This further help organisations in altering their plans and procedures which can
improve their internal operations. The SWOT analysis of Netflix is as follows:
Strengths Weakness
 Reputation: Netflix have developed
their strong reputation in targeted
markets by providing high quality
content (Miliopoulou, 2021). It has
effectively provide number of
substitutes to different television
programs which results in growth of
Netflix in appropriate manner.
 Higher adaptability: Netflix focus on
the demands of their customers and
involves various modifications
 High price for some countries:
Netflix offer different subscription to
the countries according to their
financial stability and economic
position. In some of the countries prices
are relatively higher which results in
lower subscription of services.
 Restricted copyrights: The limited
copyright becomes major weakness for
Netflix as it lower down their growth
and revenue generation rate. The debt

according to them. Services provided
according to the choices of viewers
helps them in increasing their loyal
customer base.
rate of company is gradually increasing
which is negative factor contributing in
the management of brand image.
Opportunities Threats
 Expansion: Due to the effective brand
image of Netflix, they can get higher
opportunity to expand their services in
new boundaries. The increasing
demand of OTT platforms is positive
factor which support their market
expansion in best possible manner.
 Increase of customer base: By
providing creative content, Netflix can
easily attract large number of customers
which help them in longer
sustainability. They focus on the needs
and demands of customers which helps
them in effective customer retention.
 Competition: There can be seen high
competition in their respective industry
which become threat for Netflix.
Providing services related to digital
streaming by competitors affect the
growth rate of company. There are
various competitors of Netflix which
are YouTube, HBO, Amazon, etc.
 Government regulations: Some of the
rule and regulations of government
create negative impact on the
operations of Netflix. Different
countries have developed their own
rules and regulations which disturbs the
operations.
Porter five forces model
In order to understand and evaluate the structure of industry, organisations uses porter's
five forces model. Netflix can analyse their competitiveness so that they can formulate their
strategies according to that. The porter's five forces model can be discussed in context to Netflix
as follows -
 Competition in the industry - Number of competitors and their equivalent services and
products affect the growth of an organisation. Larger competitors can capture the market
share which becomes challenge for an organisation (Mogaji, 2021). The power of this
force is relatively high as other platforms are also offering same content and video which

undercut the profits of Netflix. They can include creativity in their offerings which
differentiate them from their competitors.
 Potential of new entrants - The power of company can get affected when new
competitors enter to the market. Nowadays it become easier for companies to enter
market as digital platform does not require huge investment. This fore is moderate as
Netflix have established their brand image in market which does not get affected by new
entrants. The established position of company become their strongest strength which can
effectively overcome this threat.
 Power of suppliers - This factor describe the force of suppliers in operations and brand
image of the company. In case of Netflix, the power of suppliers is low as they use
technological factors for steaming and producing content. This can be availed easily
without involving huge amount and cost. There are number of suppliers who provide
technological services which is positive factor for Netflix.
 Power of customers - The customers of organisation have power to bargain with them
for best possible prices. Different buyers have their own perception regarding the prices
and brand image of the company (Tarantino, 2021). Customers of Netflix are highly loyal
and trustworthy who willingly subscribe for the services. The power of customers is low
as Netflix offer unique and higher quality content to their customers. Developing healthy
relationships with customers assist organisation in improving their engagement rate in
effective manner. Threat of substitute - The goods and services which can be used by consumers against
the products which are offered by organisation. There are various competitors who
provide streaming services to customers can become challenge for Netflix. The power of
substitute is high in case of Netflix as customers can switch to other platforms where they
get better subscription rates. This threat can be overcome by Netflix in effective manner
by focusing on the demands of their targeted audience.
Marketing mix
Marketing mix are the main elements which helps organisation to evaluate product or
service desired by customer (Gray, 2021). The 7P's of marketing mix in context to Netflix are
stated below -

 Product – On the platform of Netflix certain web series, movies, popular shows or
documentaries can be seen so there are the products for them, which generates revenue
for them. With this all the content showed by them is licensed, they do not show any
copyright content.
 Price – The organisation Netflix have three types of planes which can be availed by the
customers which are basic plan, this is the lowest plan of Netflix. The other one is
standard plan and lastly premium plan which targets customers having high income. They
are using competitors pricing strategies as trend of over the top platforms are increasing
rapidly.
 Place – The distribution network of services provided by Netflix is available in more than
190 countries expect few places such as North Korea, Syria and Crimea. With this the
customers can watch the programmers available on Netflix through Smartphones,
Tablets, Smart television, Laptops or any other streaming devices.
 Promotion – The organisation Netflix does not left any channel thorough which
promotion can be made, it includes advertisement though billboards, print media, social
media marketing, celebrity endorsement, network marking, word of mouth or any other
tool. With this, the company is also involved in providing one month free trial
subscription for users in order give them real life experience and also to promote it's
platform.
 People – With increase in the market size of Netflix they are endues in continuos hiring.
They tries to make hiring of talented and skilled workforce within it's organisation. They
want employees belonging to different culture and background to create diverse
environment with it's organisation. They are proving part time as well as full time jobs to
people along with proving flexible timing hours in order to enhances their satisfaction
level.
 Process – It is very easy for the users to opt facilities of Netflix, as they user just have to
register themselves on this platform and by paying the amount they can continue to enjoy
it. With this, to enhance customer experience they are proving auto pay system, through
this for the next month the amount is automatically being deducted when the plan gets
over so that customer do not have to make any extra effort.

 Physical Evidence – Netflix can be run through websites as well as on it's mobile
applications. The physical offices of Netflix is also available at various places where
whole team of company is involved in providing best facilities to it's customers and make
continuous improvement in it's services.
STP Analysis
The STP analysis helps the organisation in finding out it's potential customers to whom
they can target and achieve the set goals along with getting huge sum of revenue (Guillén, and
Rubio, eds., 2019). The potential market can be identified and can frame all it's strategies
accordingly.
The STP analysis in context to Netflix is being explained below -
 Segmentation – The organisation segments it's customers in order to make sell to it's
product within the market belonging to customer (Zamozhnykh, Pobedinskaya, and
Omarova, 2022). The whole market is being segmented by Netflix on the basis of gender,
income, geographical condition, preferences of watching and age.
 Targeting – The customers belonging to medium to higher income group and youngsters
are being mostly targeted by Netflix. They keeps the prices of it's subscription low so that
large number of customers can make use of this platform. The cost incurred by the
company in producing material for it's platform is nil as they are purchasing them from
it's producers. A huge cost is being incurred by purchasing it this is why in order to
recover that cost they need large sum of customers who can make recovery. Positioning – Their are number of over the top platform which are available so the
customers are dispersed. To seek the attention of customers towards Netflix they required
to add on some creativity within it's platforms. With this, unique selling proposition of
the company should be promoted to make the customers aware about it. Netflix make that
content available over it's platform which is trending and are more likeable by customers.
They are involved in taking effective decision regarding things which are to be displayed.
Competitor Analysis
With the availability of number of competitors in the streaming industry an effective
strategies should be framed by Netflix to gain advantages. The biggest competitor of Netflix is
Disney hotstar as they are leading the whole market with having largest customer base (Koch,
and Gyrd-Jones, 2019). They had framed many strategies through which they can provide

effective services to it's customers in order to enhance their level of satisfaction. While relating
content over their platform they make sure to analyse the market trend and preferences of
customers. For the growth and expansion the organisation is taking necessary actions as they
want to beat Disney Hotstar and want to lead market, currently they are having a customer base
of 220 million subscribers.
Sources of brand equity
The image or reputation of company in market as well as in the mind of customer is
considered as Brand equity (Mwabu and Munyoki, 2022) . The organisation improves it's brand
equity by providing excellent services to it's customers as they can want to acquire more
customers in exiting market by using various strategies. The enhancement is the satisfaction level
of customers improves the brand image of company in customers mind and soon they turns into
loyal as well as repeated customers.
The certain elements of brand equity which can be used by Netflix are stated below -
 Brand Awareness – The customers are being tarted with the objective of increasing
volume of sale under this step (Smith, and Williams, 2022). In this Netflix analyse who
much customer base, do they have, are the customers able to recognise them by their
name, logo or by any specific entity.
 Perceived Quality – The quality of product provide by the organisation to it's customers
plays a vital role in deciding either they will retain or switch to some other brand. This is
why Netflix tries keeps the quality of content provided by high, as this is the best way to
acquire customer and improve image of company.
 Brand association – The brand is being associated for any specific purpose, there are
certain factor which makes the brand look different from other. Netflix is being popular
for it's quality which is provided by them to customers. They are growing organically
with making use of this strategy from a longer duration of time and are being associated
for this. Brand Loyalty – When the organisation is able to fulfil the promises made by them in
order to collect customer base, the customers become loyal for that brand. The fair
practices performed by Netflix make the customer feel more reliable towards the
company. With this, after and before customer service facility provided by Netflix is
helping them in creating more customer engagement and developing loyalty towards

brand. The content provide by company is as per the preferences of customer which is
making customer satisfied and retain in market for a longer duration of time.
Strategies for brand management
The process of forming, estimating and managing the brand image is considered as brand
management (Saewanee, and Khamwon, 2022). By successful achievement is creating positive
image of company they will be able to generate more profit as well as revenue for company. It
become easy for the organisation to achieve long as well as short term objectives of company as
a large base is already created by them, by effective brand management strategies.
The Brand management strategies which is used by Netflix are as follows -
 Personalized content – The personal details or information of customers is being
collected by company which helps them in communicating with it's customers. As per the
interest or past watch list they are able to analyse taste and preferences of customers and
showcase the content on first page as per their desire to provide better experience to
customers.
 Multi mode experience – The content of Netflix can be shown within Smartphones,
Tablets, Smart television, Laptops or any other streaming devices, which provides better
and effective experience to it's customers.
 Blend of technology with marketing – The combination of technology and marketing
strategies helps organisation in acquiring more customer base. Now a day, with the use of
Artificial intelligence Netflix is able to understand taste of customers and then with using
different marketing tools they make promotion of it's content.
 Marketing channels – The data base of customers is being collected by Netflix and then
with the use of E- mail marking they are promoting it's products and services. They
delivery all the information as well as promotional offers to its customer through e- mail
and tries to keep in touch with them.
 Better interactions – Out of box thinking strategy of Netflix always keeps them one step
forward. The always tries to keep in touch with customers and understand what are their
requirements and what steps could be taken by them to make improvement.
 Creating a Buzz – Buzz marketing is word of mouth marketing strategy, which is the
most effective method of promotion. As the customers trust upon the words of other

customers so this helps Netflix in creating more subscribers. The facilities provided by
them automatically makes customers feels to do word of mouth for them.
 Ad free content – The advertisement which occurs in between the watch time spoil the
experience of customers. So, this is why the customers who are using paid subscription of
Netflix enjoys ad free content.
The features which are mentioned below creates a better experience to it's customers and
this is reflects the strong strategic brand management of organisation. Netflix keeps on taking
timely feedbacks from it's customers along which makes company understand about changing
taste and preferences (Zong, and Zhang, 2020).

CONCLUSION
From the above report it can be concluded that development of different strategies
provide benefits to organisations in order to improve their brand image. It is important to focus
on the market conditions so that actual position of the company can be identified. By
understanding their current position in the market, organisation can effectively manage their
brand in targeted market. This report included about different concepts and models which help in
evaluating negative and positive factors. The collection of frameworks provide better opportunity
to organisation for developing appropriate strategies which can help them in maintaining good
brand image.

REFERENCES
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of brand co-creation and its influence on brand identity (Doctoral dissertation,
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