Digital Marketing Strategies and Analysis: Zappos, Nestle, and Netflix

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Added on 2023/06/04

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This report provides a comprehensive analysis of the digital marketing strategies employed by Zappos, Nestle, and Netflix in the current market environment. It examines each company's approach to target marketing, positioning, branding, and the strategic marketing mix (product, price, distribution, and digital marketing communications) from an online perspective. The report highlights the opportunities and threats faced by each company in their respective industries, including the competitive landscape and the impact of digital platforms like social media and online advertising. Ultimately, the report aims to provide insights into how these companies leverage digital marketing to achieve their business objectives and maintain a competitive edge.

Running head: Digital Marketing in the Current Market Space 1
Digital Marketing in the Current Market Space
Student name
Institution of Affiliate

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Digital Marketing in the Current Market Space 2
Executive Summary
The technological advancement has driven the changes in the way companies are conducting their
business operations. The development of digitalization prompted businesses to exploit the digital
market. Digital marketing is the future of all businesses irrespective of the industry. The market
trends support the digitalization of the business environment and supports the success.
Organizations always seek for opportunities to develop a competitive advantage over its
competitors in the market. Online sales are a business hub that is necessitated by the development
of internet and demand for efficient business operations. The consumers are always seeking for a
firm that can offer them the best quality that they need from the companies. The use of social
media, email, and YouTube are some of the digital platforms that facilitates digital marketing
across the world.

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Table of Contents
Executive Summary.........................................................................................................................4
1.0 Introduction................................................................................................................................5
1.1 Zappos Company................................................................................................................... 5
1.2 Nestle Company..................................................................................................................... 6
1.3 Netflix Company....................................................................................................................7
2.0 The Current Marketing Environment for the Zappos Shoe Industry.........................................7
2.1 The opportunities and Threats................................................................................................7
3.0 The Current Marketing Environment for the Nestle Food and Beverage Industry...................8
3.1 The opportunities and Threats................................................................................................8
4.0 The Current Marketing Environment for the Netflix Media Entertainment Industry...............8
4.1 The opportunities and Threats................................................................................................9
5.0 A summary of each company’s approach to Tier 1 strategies of Target marketing, Positioning
and Branding from a digital /online perspective..............................................................................9
5.1 Zappos Target Marketing.......................................................................................................9
5.2 Zappos Positioning and Branding.......................................................................................... 9
5.3 Nestle Target marketing.......................................................................................................10
5.4 Nestle Positioning and Branding..........................................................................................11
5.5 Netflix Target marketing......................................................................................................11
5.5 Netflix Positioning and Branding........................................................................................11

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6.0 Strategic marketing mix analysis (Product, Price, Distribution, Digital Marketing
Communications) of each company.............................................................................................. 12
6.1 Strategic marketing mix analysis of Zappos........................................................................12
6.2 Strategic marketing mix analysis of Nestle..........................................................................13
6.2 Strategic marketing mix analysis of Netflix........................................................................ 13
7.0 Conclusion............................................................................................................................... 14
Reference....................................................................................................................................... 15

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Digital Marketing in the Current Market Space 5
1.0 Introduction
The business world is dynamic, and new business models keep coming up over and over
again. This means that businesses must also change to match the new changing industry.
Traditional marketing is a thing of the past. Today, technology has revolutionized every sector in
the business environment. Companies have embraced the digital way of doing business. Digital
marketing is one of the areas that are changing the way companies are reaching out to clients. This
is a model that entities communicate with its clients through the internet, mobile applications and
other online platforms.
The IT companies like Google, Facebook, Twitter, and even YouTube offer businesses a
platform to market online. Zappos, Nestle, and Netflix are making digital marketing a competitive
platform to advance their business. Whenever consumers seek information about the products and
services that they need in the market, the internet plays a crucial role in their information search.
Thus, it explains the reasons why companies are turning into digital marketing. Promotions and
products are placed online to attract internet users. Social media such as Facebook, Twitter and
Google+ also forms other avenues that companies have exploited to market their products in the
market. Today, billions of people have access to social media which makes it a precious space for
companies to realize their business success.
1.1 Zappos Company
Zappos is a company was founded in the year 1999 by Nick Swinmurn. The company deals
in shoe selling. The company’s mission is to be the best company that sells the best quality shoes
either in color, size, and brand. Zappos trades in shoes of all categories which aim in satisfying the
needs of all clients in the market. This strategy has helped the firm evolve through successive
periods to be one of the leading online shoe selling company. The company seeks to deliver

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efficient online purchase services to its customers as a way of improving customer experience and
customer satisfaction. What Zappos knows is that higher customer experience is a strategy that
ensures that customer satisfaction is realized (Burton, S., Roberts, J., & Sheather, 2015). In the long
run, the firm will be able to dominate the shoe industry.
Figure 1: Grunge’s influence on fashion (Price, 2017)
1.2 Nestle Company
Nestle Company is one of the leading companies in the food and beverage market. The
company was established in the year 1867 by Henri Nestle The firm produced its first freeze milk
by the year 1874. However, formed Nestle Group in the year 1905 after merging with Anglo-Swiss
Condensed Milk Company. The company continued to build its empire in the food and beverage
products in this industry. In the year 2003, it acquired Movenpick Ice Cream which cemented its
status as a world leading producer in the ice cream category. Nestle has been actively developing
digital marketing strategies that aim at the global space serving different culture (Williams, 2017).

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This is a strategy that allows the company to be a dominant player in milk products across the
world.
1.3 Netflix Company
Netflix Company was founded in the year 1997 with its headquarters in Gatos California.
The company offers online entertainment which includes documentaries and movies. Members
subscribe to the channel and pay their membership annually or monthly depending on the package.
Today, the firm has over 130 million subscribers across the world. The members can watch the
programs of their choice anywhere across the globe without any commercial commitment
(Leeflang, Verhoef, Dahlström, & Freundt, 2014). The company online services help the firm to
expand quickly.
2.0 The Current Marketing Environment for the Zappos Shoe Industry
The footwear industry is one of the competitive industries as many companies such as Nike,
Adidas and Mizuno compete in this market. Intense marketing campaigns are part of the driving
factors that define the level of competition in this industry. Social media and online marketing form
the basis of marketing strategies in this industry. For example, Nike has engaged in an online
marketing campaign that seeks to ensure that its brand is well placed and well known in the market
(Purkayastha, & Rao, 2015). The management of Nike uses the digital platform to drive its sales.
Moreover, companies also engage in mobile application strategies to market its products. This
makes companies like Zappos build its online shoe platform with a bid to increase its market share.
2.1 The opportunities and Threats
The key opportunities in the industry are the growing demand for new shoe products. The
market keeps growing, and it is expected to by 4.5% by the year 2023. This will offer the players in
the market a chance to expand their businesses. On the contrary, there are risks which include a stiff

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Digital Marketing in the Current Market Space 8
competition as many players enter the market. The economic turmoil also threatens to shrink the
market.
3.0 The Current Marketing Environment for the Nestle Food and Beverage Industry
The integrated marketing approach is one of the driving force in the food and beverage
industry. Integrated marketing refers to the marketing approach which includes adverts, direct
sales and promotions, social media, and social media (Andrews, & Shimp, 2017). Companies
leverage these strategies to offer the offer the best chance for the marketers to communicate to its
customers. Social media such as Facebook and Twitter are some of the digital platforms that are
used in the process of marketing in this industry. For example, Unilever a competitor of Nestle
engage in TV and online marketing to attract its customers. Studies indicate that the cost marketing
for about 2000 customers ranges from $50 to $75 in digital space (Bhargava, 2015). This is an
indication of the cost-effectiveness of this strategy.
3.1 The opportunities and Threats
The opportunities in this market are innovation for quality products that will serve the
needs of the clients better. This is a strategy that will support high customer satisfaction and
development of quality service delivery to the customers. On the contrary, the high levels of
competition is a threat to the existing business. The reason why companies merge or acquire the
other is to eliminate competition.
4.0 The Current Marketing Environment for the Netflix Media Entertainment Industry
The entertainment industry keeps growing the population of the people who demand such
product continue also to thrive. In this industry, Netflix is facing competition from other companies
such as Amazon and Hulu among others. With rising competition, online marketing and social
media marketing are some of the key influencers in marketing. Each company seeks to position

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itself as the leading online film provider. Amazon develops an online video content that allows
subscribers to access it on demand or rent. This strategy witnesses a stiff competition among
companies seeking to offer online video services.
4.1 The opportunities and Threats
The growing population and accessibility of internet offer an opportunity for the firms in
this industry to increase their services to various clients. The firms can, therefore, develop
programs that will help different clients of different clients in the market. Market saturation and
legal aspects are some of the threats of this industry. The international markets restrict the entry
into some of the markets thus affecting their service delivery to their global space.
5.0 A summary of each company’s approach to Tier 1 strategies of Target marketing,
Positioning and Branding from a digital /online perspective.
5.1 Zappos Target Marketing
Zappos Company seeks to serve the global space with shoe products of every size, color,
and brand. The firm works to ensure that it helps the global market with mind-blowing services
which are customized. This is an approach that will ensure that the company will promote a better
understanding of the market space. Zappos seeks to join Amazon as a big firm selling online shoes
to all customers across the globe. The CEO of Zappos states that there will come a time when the
US retail market will be about 30% of the total market share. This is the reason why the company
builds towards delivering high-quality products through online platforms.
5.2 Zappos Positioning and Branding
When Nick Swinmurn went round the shops looking for shoes, he realized that he couldn’t
get a shoe of the right color, size, and brand. This prompted him to start up a company that will
customize the shoe products. The focus for the firm is to develop all brands that will serve the needs

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of all clients in the global market. The company has continued to expand through many stages
which have made it continually attract many clients in the market.
5.3 Nestle Target marketing
Nestle company offers food and beverage products across the world. This is the reason why
Nestle brands are found across the global market. This is a strategy that allows the company to
reach out to the different consumers of ice creams and other beverage products. The approach taken
by Nestle is to develop a vast customer base in the market that will serve the products that the firm
sells. The company’s Facebook is used as a marketing tool that allows the firm to reach out to its
clients and keep updates with the clients. Fowdar’s (2013) explains that many Facebook users have
access to products posted by the company.
Figure 2: Learning to listen after a century of shouting (Yeomans, 2018)

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5.4 Nestle Positioning and Branding
The approach taken by Nestle in its product positioning is s strategy that places the
company in the top levels in this industry. The firm developed different products or brands in the
market which makes the company serve the different of classes. For example, Nestle offers ice
cream products and at the same time provide drinks and beverages such as coffee. This is a strategy
that diversifies the company’s products in the market. Zappos email its customers about the new
product arrivals which then promotes better decision making about the purchasing process. This is
seen many firms as part of the marketing strategy that will support the company’s growth.
5.5 Netflix Target marketing
Netflix positioning and target marketing strategy focus in serving the global customers. The
firm has subscribers of over 130 million with each subscribing to the products offered by the
company. This has proved that Netflix can develop a product or a service that fits the needs of the
different clients in the market. The company’s market approach helps it to promote its products to
the various classes in the market.
5.5 Netflix Positioning and Branding
Clients of different cultures and behaviors are found across the world. Their interests vary
and Netflix offer a high-quality streaming service which creates efficiency of customer’s demands.
The clients can access whenever and wherever they are across the globe. As long as the customer
can access the internet, then he or she can access their services with ease. The emails usually carry
a relevant content that supports the message that client’s intended message. Whenever the
consumer receives information that meets its needs, then such they will always come back. This is
how customer experience is developed for in the long run.

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6.0 Strategic marketing mix analysis (Product, Price, Distribution, Digital Marketing
Communications) of each company
6.1 Strategic marketing mix analysis of Zappos
Zappos Company offers a range of shoe products in the market to its consumers. These
shoes come in different colors, sizes, and brand. In this case, the client will have to choose the one
that serves their needs. Their prices also vary depending on the nature of the shoes. The firm also
offers free shipping. For example, Calvin Klein is sold at $159.00. These shoes have descriptions
and allow the clients to check on all sides of the shoes before finally choosing to buy these
products. Therefore, the products, in this case, keep varying and depend on the choices of the
customer preferences.
Apart from the online stores, Zappos distributes its products in the selected stores across the
country. Amazon.com also sell Zappos shoes and clothing. This is an extensive network that allows
the firm to reach out to various clients. As we have stated above, Zappos reach out to its clients
through emails, social media, and other digital platforms.
Figure 3: Is Zappos’ Email as Good as Their Social Media (David, 2018)