Strategic Brand Management Report: Netflix, Competitor, and Market

This report provides a detailed analysis of Netflix's strategic brand management, encompassing its marketing strategies, competitor analysis, PESTEL and SWOT analyses, and brand equity elements. It explores Netflix's background as a subscription streaming service, its marketing mix (product, price, place, promotion, people, process, and physical evidence), and its key competitors like Amazon Prime and YouTube. The PESTEL analysis examines political, economic, social, technological, environmental, and legal factors affecting Netflix, while Porter's Five Forces analysis assesses competitive intensity. The SWOT analysis identifies strengths, weaknesses, opportunities, and threats. The report also covers brand equity, strategies for sustaining the brand, positioning, segmentation, targeting, and recommendations for competitive advantage. This analysis aims to provide a comprehensive understanding of Netflix's strategic approach in the dynamic streaming market.

Strategy and Brand
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background of Organization..................................................................................................1
Marketing Strategy.................................................................................................................1
Competitor Analysis...............................................................................................................3
PESTEL Analysis...................................................................................................................4
Porter's Five Forces Analysis.................................................................................................6
SWOT Analysis......................................................................................................................7
Brand Equity and its Elements...............................................................................................8
Sustaining and managing the brand Strategies.......................................................................9
Positioning Strategy................................................................................................................9
Segmentation, Targeting and Positioning ............................................................................10
Recommendations for Competitive Advantage ...................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Strategic brand management concept is generally the process which support company in
order to increase their profits, achieve end goals, enhancing the image of the company and
various other things. In relation to company's management, it certainly involves different
concepts regarding the digital asset in order to maintain the consistency of brand. The company
taken into consideration for this report is “Netflix”. The Enterprise is a subscription streaming
which is based in Los Gatos, California. The organization was founded in the year 1997 and
provides films library and television series. The current report comprises of understanding about
various marketing strategy at different levels considering different factors. Moreover, it
comprises of different elements of brand equity. The aim of the report is to conduct positioning
strategy and conducting competitor analysis.
MAIN BODY
Background of Organization
The organization is basically a American Intentional Corporation which generally offers
various streaming services to the audience. The organization is also offering new services and
deals. The company has its own production company widely known as “Netflix Originals”. The
organization enjoys approximately 220 million subscribers globally(Keller and Brexendorf,
2019).
Marketing Strategy
The concept of marketing strategy can be basically described as the overall plan of
organization which helps in reaching out to the consumers. It is very important for the
consumers to use the services or products offered by the organization in order to attract services
and products which are provided by the Enterprise. It generally supports the company to focus on
few resources for the objective to achieve a competitive advantage. The marketing mix of
enterprise comprises of four different elements price, product, promotion and place used when
marketing a product or service. In relation to different marketing strategy of Netflix, it comprises
of analysing the organization with right tools. Also it involves effective strategies such as price
approach, planning regarding product and product innovation. Such type of business strategies,
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allows the company to achieve success in market. In relation to Netflix, the organization is
putting emphasis on implementation of different ideas to give touch competition to its
competitors like Amazon Prime and Hulu. The managers are highly involved in searching out for
new aspects. Also they are expanding their operation in various countries to seek growth in sales.
Product: The enterprise is considered to be a widely popular streaming media and entertainment
business. The organization begin with a DVD rental company and sooner turning into popular
streaming platform. Netflix constantly ensure upgrading their platform with fresh content(Moh'd
Naji, 2021).
Price: The price is basically determined as the monetary value paid by the customer to avail a
service or a particular product. With reference to Netflix, the organization offers a one month
free trail in order to attract the customers. Also the price set by the company is highly
economical.
Place: With reference to company, the organization is widely available and carries out its
operations online. It can be easily accessible with Tablets, mobile phone, Smart TVs and much
more. Through its availability, the customers can stream anytime and anywhere.
Promotion: In reference to Netflix, the company uses channels to carry out promotional
activities through offering content. With the free trail policy, they are able to attract new
consumers and boosting up awareness regarding the brand (Mills and John, 2020).
The company is a service marketing brand and thus it further comprises of three more Ps
as mentioned below:
People: With reference to Netflix, the organization conduct its operations with the support of
marketing team, online platforms and social media team, all of them plays a really significant
role in running the company. Moreover, the enterprise has its online live chat and other services
controlled by employees of the company.
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Process: With reference to Netflix, the company has different process in order to drive and
engage customers. The website is highly simple to use and payment can be done through debit
and credit cards.
Physical Evidence: Application of the company is considered to be one of the physical evidence
which is user friendly and available for regular updates. Other than that, it hardly has any
physical evidence to be precise (Abid, Abid‐Dupont and Moulins, 2020).
Competitor Analysis
Competitor analysis generally consists of the identification process regarding the
company's competitors and also searching about various marketing strategies. The Enterprise is
already a leader when it comes to video streaming but due to new entrants the competition has
become more difficult. Amazon Prime is generally considered as the tough competition for
Netflix as it enjoys approximately 100 million users.
Amazon Prime Video: It offers quality video content and is created and operated by Amazon
giving a tough competition to Netflix.
YouTube: This platform mainly offers content related to vlogging, launched back in 2005 with
more than 800 million online users.
HBO Now: It is certainly one of the popular online source of entertainment widely known as
HBO Network. It generally offers access to different entertaining context including movies and
shows. The content is easily accessible through TVs, Tablets and PCs (Iglesias, Ind and Schultz,
2020).
Evaluation of Market Analysis, Key Trends and nature of competition
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The concept of market analysis is basically termed as the quantitative and qualitative
assessment of the company which helps in describing the volume and size in the market. In the
past, the organization used to offer video games, TV programmes, movies and documentations.
Due to better market analysis, it really helped the company in growing in the competitive market.
In reference to the company, key competitors are basically the other business which used to offer
different services and goods to the consumers in the marketplace. With context of Netflix, the
company has major key competitors who used to have a major influence on the profitability and
working of the enterprise operations (Baporikar and Fotolela, 2021). As per the various surveys
and research, it can be determined that new companies are also entering into market for the
purpose to deliver similar kind of products resulting in affecting the company's market share. The
major competitors of Netflix are Amazon Prime, You tube, Disney Plus, HULU, HBO max and
much more. All these competitors of the organization used to have good subscribers and better
revenue as compared to Netflix. The major trend of the organization is to produce TV
programmes and films before it comes on TV.
PESTEL Analysis
Such type of framework is used by organizations in order to achieve more
competitiveness. This tool is mainly taken into use with the aim of carrying operations related to
strategies. In case of NETFLIX, the organization examine various external factor including
Technology, Politics, Economics, Social, legal which could result in creating a impact. Through
PESTEL Analysis, it basically help in identifying extrinsic scenario which could impact
company.
Political Factors: In case of Netflix, the platform is not available in every country. Fox example,
in China, they do not permit Netflix to operate due to the US Policies. Because of certain rules
and restrictions, the USA Netflix has generally a untapped market.
Economic Factor: Such type of factors could affect the goal and aim of organization. When it
comes to Netflix, due to fluctuation change in rate of exchange could act as big issue from
company's perspective. In case of OTT platform, it has shown a growth in past 2 years certainly
due to Pandemic. At current stage, the company is at boom stage. Taxation, Interest rates, Wage
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rate, Unemployment, all these factor could influence company's growth. For company, it is very
important to keep in mind regarding the exchange rate fluctuation (Burgess and Jones, 2021).
Social Factors: Equality roles, Societal norms, gender, Demographic trends all of them are
considered as the important factors to keep in mind for the company. Online shopping and
spending patterns of the consumers could result in supporting the organization in determination
of different social trends. Due to surroundings of the company, it results in motivating and
encouraging the employees to produce high quality content and join the company (Hofer, 2022).
Technological Factors: Being a online based application, the technological factor certainly
plays a really significant role. Intellectual property rights, Trade mark copyrights, Patents, all
these plays a really important part in company. It is very important to have the intellectual rights
update from third party in order to stream the content digitally. The coming 5G technology could
result in bringing up a greater transformation for the organization through increasing surfing
speed. Through technology and constant upgradation of Technology, it really helps in attracting
new customers.
Legal Factors: Such factors comprises of rules and legal obligations which is abided by
government. Before stepping into new market, it is crucial to consider all legal factors as it might
result in influencing the organization. Through Technological Advancement, it supports in
keeping the data safe and secured. Consumer Protection Law, Security Law and Intellectual
Property rights need to be taken care.
Environmental Factors: Through increase in concern for environment and sustainability, it has
become a really major concern. With reference to Netflix, the organization being totally a digital
platform do not affect the environment in direct manner but still the company do their best for
the purpose to protect the environment. The organization focuses on trying to use technology to
ensure sustainability (Huang and Guo, 2021).
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Porter's Five Forces Analysis
With reference to Netflix, the organization is running in content production. Usually the
five forces are basically used to determine the competitive surrounding. The organization has
continuously worked with use of various strategies. Such type of model is used by organization
to analyse the five competitive forces.
Competition in the industry: At this stage, it is generally used by the organization in order to
keep assess regarding the competitors. The competitor analysis of the organization help in better
knowledge in relation to competition in content industry which acts as a strong force.
Threat of new entrants: It certainly comprises of different trends upon which the organization
carries out its operations. In context to Netflix, it basically has low threat when it comes to new
entrants as the company has a big network of circulation internationally controlling with a good
brand image (Kouris, 2022).
Bargaining Power of Suppliers: In case of Netflix, the company deals with online content
which is basically an expensive commodity to produce and involves few suppliers. Due to less
suppliers, it has a dominant effect on market.
Bargaining Power of customers: In case of consumers, it could result in influencing the growth
of the company in market. It could be both positive or negative totally depending upon
company's operations. It generally has a very less switching cost with almost all the services
being offered at less amount. The main factor is not the price but content's quality.
Threat of Substitute products: It is basically consider as the most common threat faced by the
organizations. In reference to content industry, there are few substitute so the threat for the
organization is highly moderate. The bigger threat might comes from leisure activities and
entertainment opportunities.
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SWOT Analysis
This tool is generally used for the objective to get visibility on their currents status
basically measuring the overall performance of the organization. With the support of these tools,
it helps the enterprise to figure out future expansion strategies and also considering market
opportunities and present threats. Being top streaming platform, the organization has variety of
strengths and could use these opportunities to seek growth.
Strengths
 The platform offers a wide range of
opportunities to budding film makers.
 The company has a really strong market
presence and effective brand image.
 Its high on demand and enjoys greater
adaptability.
 The platform is highly affordable and
has a global presence.
Weakness
 The company totally depends upon its
North American Customer Base.
 The organization lacks sound customer
care which results in offering customer
dissatisfaction.
 Platform has really limited copyright.
Opportunity
 Due to Global Presence, it could
strengthen their consumers with the
help of strategic partnership with few
market.
 The company can choose to work on
new concepts except for OTT
platforms.
 With the support of having a good
brand image, it can enjoy more
opportunities for expansion (Mogaji,
2021).
Threats
 The content piracy could be the main
reason of company facing threats and
huge loss in profits.
 Due to several government regulations,
it could result in holding them from
expansion.
 Due to pandemic, it resulted in
affecting the content of new original
shows and reproduction of movies.
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Brand Equity and its Elements
It generally refers to as a value premium that a company basically generates through a
popular brand name as compared to a generic equivalent. With reference to Netflix, the brand
value of organization has more than doubled. Through support of 105% growth, the brand value
of the company has raised to $21.2 billion.
Brand Awareness: At this stage, the company evaluates the customers which they are usually
targeting for the objective to improve the sales volume. Taking into consideration Netflix, the
company is basically targeting audience and focusing on content creation through boosting
engagement of audience. The company is an internationally recognized organization who
basically offers services such as seasons, online shows, short movies and much more. In order to
publicize the brand, the company uses social media platforms, Netflix affiliate program, cross
promotional programs and much more.
Brand Association: In Netflix's case, the company has highlighted as one of the innovators
when it comes to entertainment industries. Day by day the company's subscribers are constantly
increasing. The company has developed their application named as Flix Chat used by various
individuals on everyday basis (Miliopoulou, 2021).
Brand Loyalty: The company has an audience in relation to each age groups which generally
comprises of Teenagers. Brand loyalty is considered as the ultimate aim for the purpose to
maintain the services and standards and also staying in competitive in market. The company
enjoys almost 53 million users.
Brand Elements: In reference to Netflix, the company is indeed a authentic and sustainable
brand with the sense of human spirit. The phrase used by the company is highly popular and also
the seven letter work mark wrote in red box does a great job in catching up the user attention.
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Sustaining and managing the brand Strategies
It generally comprises of the designing and implementation of various marketing
programs and activities for the objective to measure, message and build the equity of company.
In reference to brand management, it includes development of strategies in order to improve
brand awareness, brand association and much more.
Identifying and Establishment of values and brand positioning: It generally begins with clear
understanding about the representation of brand and how it basically need to be positioned with
the competitors.
Implementation of Brand Marketing Programs: When it comes to brand equity, it generally
requires creation of a brand which is widely accepted by the customers.
Measuring and Interpreting Brand Performance: In order to have a deep understanding the
effects of the brand marketing programs, it is very essential to measure and interpret the
performance of the organization (Rahman, Rodríguez-Serrano and Lambkin, 2018).
Sustaining and Growing Brand Equity: It basically involves the growing and sustaining of
brand equity. It basically refers to as the maintenance and expansion of brand equity which is
highly challenging.
Positioning Strategy
It is basically defined as the marketing strategy which helps in distinguishing the
company from its competitors. The main aim is to understand the influence and impact of the
consumer perception through effectively communicating the organization's competitive
advantage. In reference to organization, the positioning strategy of the company was selection of
Niche movies and Unpopular movies at extraordinary convenience. When it comes to Netflix,
the company has the capability of changing the market through setting up the rules of game in
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Video Streaming through focusing on rapid change. From the different surveys, it has been
observed that Netflix is one of the best players through considering each and every aspect which
makes the company a leading space.
Segmentation, Targeting and Positioning
It basically involves the analysis used by the companies at different industries. It
generally supports the company in having better understanding about the position market and
customers which they want to actually target in a better way. When it comes to Netflix, the
company enjoys approximately 83 million people in more than 190 nations which also included
highlight movies, documentaries and unique arrangement. In context to STP Analysis, it is
basically a marketing strategy that comprises of Segmentation, Targeting and Positioning.
Segmentation: With reference to Netflix, the organization business sector always shows a sign
of innovation conduct and change in buyer. In case of company, it generally comprises of
different methods for the purpose to segment the market in video streaming business and
involves the different nature of clients who basically shift in watching preferences, income, age
and much more. When it comes to Netflix, the organization always uses such clusters which the
company in its own jargon refer to as “Taste Doppelgangers” around the world which basically
has a really interesting meaning for TV show genres (Vallaster and Von Wallpach, 2018).
Targeting: With reference to Netflix, the company pays much emphasis on a mass business
sector in regards to purchasing of films and TV expecting to have greatest piece of pie. With
support of good quantity supporters, the organization could be able to pay focus on convictions,
inclinations and foundations. Such kind of support could help the company in achieving return
on overwhelming interest when it comes to substance and innovation in light of matter that
exclusive low costs can be charged due to business and administration. In case of targeting, the
use of different targeting strategy in order to basically increase the repeat consumers through its
super affordable subscription-based model.
Positioning: It is basically considered as one of the significant stage as it shows support to the
individuals to position themselves in a better way as compared to the marketing conditions. For
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Netflix, it is important to create a unique selling proposition with desired products and services.
It is important for them to carry out effective decisions by providing the clients with superior
content. When it comes to Positioning, it involves wide range of things to watch of various
genres, content creators around the globe, rich experience with high quality original content and
creating different kind of opportunities which are accessible to help writers and film-makers.
Recommendations for Competitive Advantage
In case of Netflix, the organization has completely changed the content through paying
more emphasis on transmission strategy which is perceived with the support of innovation
technologies that comprises of machine learning and digital streaming. From the analysis of
Porter Five Forces, it can be determined that the stagnant model is not made for the company.
CONCLUSION
From the above report, it can be concluded that the company need to use different
strategies in order to succeed in the market. It can be also determined that the Netflix is one of
the largest streamline enterprise which basically offers content with the support of Television,
Films, videos, serials etc. Due to tough competition in the world, it could result in influencing the
competitive advantage. Also, it could be analysed that the company can promote different
strategy in order to be more on using cost leadership strategy. Moreover, the concept of strategic
brand management could help the organization in achieving better results and offering
consumers with high quality products in order to enhance the overalls sales and profits of the
organization in an effective method. Furthermore, it generally comprises of the evaluation about
the different frameworks in order to have a better understanding about the growth and position in
the market. There are different benefits used by the company in order to attain competitive
advantage over a particular period of time. Also the competitor analysis will support the
company in having a better and clear image towards the different areas. It will help in improving
the different areas in a better manner for the objective and aim to achieve growth in marketplace
and creating a viable situation.
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