Netflix: A Comprehensive Marketing Analysis of Business Practices

This report provides a detailed marketing analysis of Netflix, examining its business model, target audience, and value proposition. It delves into Netflix's psychographic segmentation, focusing on busy individuals and movie enthusiasts, and its value proposition of providing extensive on-demand content. The report explores the cost structure, including licensing, production, and marketing expenses, and analyzes Netflix's internationalization and localization strategies. It also discusses promotional tactics like free trials and social media marketing, and the importance of diversification and innovation. Furthermore, the report addresses challenges such as competition from Amazon and rising expenses, and it evaluates a potential new feature, screen sharing, considering its advantages and potential drawbacks like customer distraction and technical limitations. The report concludes by emphasizing the importance of continuous innovation and adaptation in the competitive market landscape.

Running head: MARKETING
Marketing
Name of the Student:
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Author’s Note:

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Question 1: Netflix business model
Target audience
Netflix usually goes for the psychographic division of the target market segmentation and makes
sure that they are meeting the needs of mainly three categories of customers
 The ones who are too busy to go out for the movies
 The movie buffs like the young adults and also the office goers who have a very limited
amount of time in their busy schedule but always love yow arch different kinds of
movies.
 The customers who are of utilitarian mindset and want to make sure that they are being
able to utilize the total value of their money
Value proposition
This is one of the most important platforms that provide access to a large number of
television shows to the audiences or the viewers. One of the highest advantages is that the views
can see the large and the wide range of personalized web series on Netflix at their own will. In
other words, the viewers can see a large number of shows (Williams and Williams 2017). The
viewers can watch the shows at their own will and from any place of their own will.

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Cost Of Revenue
Licencing Cost
Netflix has to bear a good amount of price so that they can keep on updating themselves
and make sure that all the audiences can see the shows. However to continue this wide range of
web series they have to abide by all the legal rules and regulations. T always have to bear with
the legal environment
Production cost
Netflix originals were introduced in the year 2013. This was a part of their marketing
strategy. This was mainly introduced by the company so that they can bear the high production
cost. They started producing the original Netflix content so that they can appeal to the tastes and
the preferences of their customers (Aversa, Haefliger and Reza 2017). Therefore this original
content has been very helpful in bringing about a huge number of customers towards the
subscription of Netflix.
Marketing cost
There is a huge competition that Netflix has to face from the well-known competitors like
Amazon, Hotstar, Hulu and many others. Therefore they have to keep on updating themselves
and make sure that they are being able to provide some unique advantages and facilities to their
customers that they are not getting by subscribing to any other competitive companies. Therefore
they have to bear the marketing cost to pay to the partners like the affiliates and the device
partners.

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Strategy
Internationalization and Localization Strategy
They have been able to make themselves variable in moiré than 190 countries so that they
can gain international recognition. This is none of the most useful business strategies that they
have been using to reach their customers. People all over the world can use the facilities being
provided by Amazon Web Services for the most cost-effective method. Therefore it can be said
that the company has been taking a very smart and useful decision to work and be successful in
the modern-day competitive market scenario.
Promotional strategies form one of the major aspects of gaining popularity in the modern
business scenario. As a result of this, the company has also taken many new and modern
strategies that would help them to appeal to the tastes and the preferences of their customers.
They have developed a very useful sales promotional strategy. They have the one-month free
trial schemes that let the user's use their services free of cost after they take the subscription. In
other words, they do not have to make any payments for the first 30 days. Thus this is one of the
very useful strategies for the customers that will be helping them to repeat their purchases or
their subscriptions for Netflix.
Social media marketing is also one of the best and most popular advertisements and
promotional strategies in the modern-day scenario. Netflix makes sure that they are using these
modern digitalized platforms so that they can reach out to a large number of customers within a
very short period and also on a Global or an International manner.

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Innovations
Diversification and innovation have been the key to success for Netflix. They work as the
provider of the most happening and the upgraded streaming services. They have kept in mind
that to gain a huge market share they have to somehow capture the maximum market scenario.
They have brought all the different genres of movies under their scope and operation. Netflix
covers a huge number of web series and movies coming from all the different places like Korea,
U.S, U.K, India, Japan and also many other corners of the world. This is one of the most
diversified forms of business strategies that are being used by the Netflix Company. They have
been able to create a Universal and all-pervasive approach so that they can make an equal appeal
to customers belonging from all the different social-cultural and religious backgrounds. The
company owns and operates three content production companies: The US-based Netflix Studios,
the Germany-based Netflix Services Germany GmbH, and the Singapore-based Netflix Pte. Ltd.
Challenges
One of the major challenges is the huge amount of competition that the company faces
from the other movie streaming organizations like Amazon.com, Hotstar, and many others.
Amazon has opened or launched the facility called prime membership that allows the prime
members to stream and sees the videos at no extra charges (Jenner 2016). Therefore this is one of
the additional features that might make the customers switch over to the other alternative.
The other challenge that the company is facing in modern times is the increasing
expenses. This is because the extra or the additional amount of money that the company has to

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pay to the other stakeholders. Thus, this money is often taken from the customers. Thus to
balance the huge amount of expense the company often has to add some extra amount of money
onto the shoulders of the customers (Ferrell and Speh 2017). If the company keeps on charging
the customers at a price higher than the normal then they will naturally be angered and will try to
switch over to the other alternatives (Silver 2016). Thus if the studio charges more money to
Netflix for their services then Netflix will be running at a loss as they will be charging this extra
money from the customers
Market
Question 2: "screen sharing- multi-viewer"
To survive in the modern market scenario, it is essential for all business organizations to
find some new and innovative technologies that would give them some extra advantages. Screen
sharing is one of the most useful business strategies that can be used by Netflix to attract more
number of customers. This is because Netflix usually targets young adults and office goers.
Therefore they will often like to work in a proper collaboration with their friends and their
colleagues.
This is one of the most useful and modern kinds of technologies they can be used by the
company Netflix to make sure that they can give better and more number of options of flexible
work. The screen sharing or multi-viewer option will be helping the customers or the viewers in
sharing the screen with than other friends or the other Netflix users so that they can enjoy the
web series together. This is one of the most useful and modern innovative approaches that can be
used by the company to survive in this rapidly advancing modern market scenario. However, it
must be noted in this context that the 21st century is the era of huge competition. All the colonies

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are trying to follow the most recent and upgraded technologies to satisfy the ever-increasing
needs and demands of their customers. Therefore Netflix has to provide some additional and
some better options to their customers so that they can make repeat purchases and can use the
same screen for different users at the same time.
This will be very helpful for the company as well as they will be able to get a larger and
better customer review. Getting a proper customer review in the modern-day scenario is of
utmost importance as it helps in understanding about the areas of strengths and the areas of
weakness that are present in the business strategies that are being used. Thus if Netflix can
channelize and carry on with this innovative business strategy in a proper way then they will be
able to get both the positive and the negative feedback from their customers. This will help them
to understand the suggestion and the feedbacks or the changes that are being suggested by the
customers for the betterment of the strategy. However, there will be some of the other kinds of
challenges that Netflix has to face
There will be a greater potential for the customers to get distracted
This is because if the customers get the multiple screen sharing option they might be
engrossed in checking the emails, checking the facebook updates and many other such other
social media platforms. This, in turn, will be reducing the average time that is spent by per user
per hour over Netflix web series. Therefore this is a major disadvantage for the company as they
might get less number of customers spending their time only over watching the different web
series being featured on Netflix.
Lack of enough space for the smooth downloading and using the application with this
newly added feature can be a major problem. However, most of the users in the modern-day

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scenario are indeed using the advances smartphones or tablets but there can be a certain issue in
downloading the application with the newly added feature if the resolution is too high. Their foe
can be said that this application or this new innovative idea is still in its stage of infancy and
better measures have to be taken by the company to make sure that the customers are not facing
any issue.
Thus it can be concluded that to survive in the modern market the company has to use
some modern and innovative technologies. However, they have to make sure that a proper safety
and security policy is being maintained so that the new innovative measures are not causing any
loss of data or loss of any personal information of the users. Therefore it can be said that only
time will say about the development and the smooth functioning of this modern and new
technology of screen sharing- multiviewer.

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References
Aversa, P., Haefliger, S. and Reza, D.G., 2017. Building a winning business model
portfolio. MIT Sloan Management Review, 58(4), pp.49-54. Cunningham, S., Craig, D. and
Silver, J., 2016. YouTube, multichannel networks and the accelerated evolution of the new
screen ecology. Convergence, 22(4), pp.376-391.
Ferrell, O.C. and Speh, T.W., 2017. Marketing Strategy, Loose-Leaf Version. Cengage Learning.
Jenner, M., 2016. Is this TVIV? On Netflix, TVIII and binge-watching. New media &
society, 18(2), pp.257-273.
Williams, R.L. and Williams, H.A., 2017. Vintage Marketing Differentiation Applied Today.
In Vintage Marketing Differentiation (pp. 231-235). Palgrave Macmillan, New York.