Netflix: Strategy, Brand Management, and Competitive Landscape

This report provides a comprehensive analysis of Netflix's strategy and brand management, covering aspects such as the company's background, marketing strategies, competitor analysis, PESTEL analysis, Porter's Five Forces analysis, and SWOT analysis. It delves into Netflix's product, pricing, place and distribution, and advertising and promotion strategies, further exploring the 7Ps of marketing by including people, process, and physical evidence. The report identifies Amazon Prime Video, HBO Now, and YouTube as key competitors and examines the political, economic, social, technological, legal, and environmental factors influencing Netflix. Furthermore, it assesses the competitive forces within the content production industry and evaluates Netflix's strengths, weaknesses, opportunities, and threats. The report also touches upon brand equity elements, patterns of managing brand strategy, and positioning strategies employed by Netflix, offering a holistic view of the company's strategic approach to maintaining its market position.

Strategy and Brand
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background of the company...................................................................................................1
Marketing Strategy.................................................................................................................1
Competitor analysis ...............................................................................................................3
PESTEL Analysis...................................................................................................................4
Porter's Five Forces Analysis ................................................................................................6
SWOT Analysis......................................................................................................................7
Brand Equity and Elements of Brand Equity ........................................................................8
Patterns of managing and sustaining brand strategy..............................................................9
Positioning Strategy..............................................................................................................10
Segmentation, Targeting and Positioning.............................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Strategic brand management basically involves supporting the organizations for the
purpose to achieve long term objectives, improving brand recognition, boosting revenue and
much more. When it comes to management of a company, it comprises of various aspects such
as centralization of different digital assets for the purpose to uphold brand consistency. The
organization chosen for this report is “Netflix”. The organization is an American production
company and subscription streaming service based in Los Gatos, California. The company was
founded on 29th August, 1997 and offers a wide range of television series and films library
through deals. The present report basically involves broad knowledge and understanding of
different marketing strategies at a corporate and functional level taking into account factors such
as technological, social, economic, political and global contexts as well as the market and
industry structures. In addition to that, it involves the analysis of various sources and elements of
brand equity and the ability to identify the different patterns of sustaining and maintaining brand
strategy. The main focus of the report is to conduct the competitor analysis and positioning
strategies for the organization.
MAIN BODY
Background of the company
Netflix is basically an American intentional Corporation which provides different
streaming services to its audience. The organization is also doing deals and offering new series.
In reference to own production organization, it is also known as Netflix Originals. The company
has approximately 220 million subscribers worldwide(Anindita., 2021).
Marketing Strategy
It is basically a procedure that permits the organization to focus on the available
resources on great opportunities for the intention to boost sales and achieve a sustainable
competitive advantage. In context to marketing mix, it basically involves four key elements-
product, place, price and promotion used when marketing a service or a product. In context to
Marketing strategy of Netflix, it basically helps in analysing the company with the marketing
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mix framework. Furthermore, it comprises of different strategies related to marketing such as
pricing approach, product planning, innovation etc. All the business strategies based upon
Netflix marketing mix helps enterprise in succeeding in the market. With context to Netflix
marketing strategy, it basically supports the company or brand to position itself competitively in
the market for the purpose to achieve its objectives or business goals. The company is
implementing new ideas for the purpose to become more competitive with other platforms such
as Hulu, Amazon etc. Also the managers of the company are focusing on new aspects which help
them to become more better. Furthermore, they are expanding their operations in different
regions for the purpose to improve the sales in an effective way(Berger-Grabner., 2021).
Product Strategy: In reference to organization, the company is one of the leading online
entertainment business and streaming media globally. The company started as a DVD rental
business and soon turn into a popular streaming media. The enterprise ensures updating its
platform with the latest content.
Pricing Strategy: In context to the organization, the pricing of the company is basically the
amount that a consumer is expected to purchase in order to avail services. In case of Netflix, the
company provides one month free trail service for the purpose to convert customers into actual
ones and to attract them. The prices set by company are super affordable.
Place and Distribution strategy: In reference to the enterprise, the company is basically a
online streaming business or is widely available. The whole business operations of the company
are carried out online. The services offered by brand is accessible in more than 190 and could
be easily accessible through smartphones, Smart TVs, Tablets and much more. With the
availability on online platforms, it makes it possible for the customers to enjoy service anytime
and anywhere(Fernández Gómez and Martín Quevedo., 2018).
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Advertising and Promotion Strategy: In case of Netflix, the organization uses different media
channels for the purpose to promote itself through delivering effective content. The company's
free trial policy helps in building brand awareness and after a month, it requires a paid
subscription in order to continue.
In case of Netflix, the organization is a service marketing brand and thus it includes three
Ps which involves the following:
People: In case of Netflix, the company conducts its operations mainly on the different online
platforms, the social media team and marketing team of the company plays a very important role.
Also the company has an online help centre, online live chat and customer call service which is
basically handled by the organization's employees.
Process: In case of Netflix, the organization has several processes for the objective to engage
customers and drive the business with the help of its content. The website of the company is very
easy to use and also the payment could be done easily through credit and debit cards.
Physical Evidence: The company's app is considered to be the biggest physical evidence and
hence the application is highly user friendly and updated. The company has very little or majorly
no physical evidence (Zhao., 2022).
Competitor analysis
The concept of competitor analysis basically comprises of the process of identification of
the various competitors in the company and also researching about their different marketing
strategies. In context to Netflix, the company is might be the leader in the video streaming but
the competition is getting more tough as the entry barrier in this field is quite low.
With reference to Netflix, Amazon Prime is considered to be the toughest competitor of Netflix
which has over 100 million users.
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Competitor Analysis of Netflix
Amazon Prime Video: It is one of the famous provider which offers online video content on
demand to its users. The platform is basically operated and created by Amazon and gives strong
competition to Netflix.
HBO Now: It is basically service owned by the well known HBO network. The platform offers
access to various entertaining content such as shows and movies. Users can access content
through different devices such as Tablets, TVs ans PCs.
YouTube: Its is basically a online platform used majorly for the vlogging purposes. The
company was launched in year 2005. The platform is basically visited by more than 800 million
unique online users.
PESTEL Analysis
It is basically a framework which is used by the companies for the purpose to achieve
more competitiveness. It is used by the company for the purpose to carry out strategic operations
in a effective manner.
With reference to Netflix, the company basically examines different external factors such
as Political, Economic, Social, Technological, economic and various other factors which could
influence the business along with the environmental and legal factors. With the support of
PESTLE Analysis, it helps in highlighting the various extrinsic scenarios which could influence
the brand.
Political Factors: It is basically the tool which is used by the companies for the purpose to
achieve competitiveness as per the new marketing trends. In case of Netflix, it is not available in
every country and countries like China do not allow Netflix to operate due to its US Policies.
Due to these restrictions, the USA Netflix has many untapped market(González and et.al., 2020).
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Economic Factors: Such Factor basically suggests about the determinants which has been seen a
rise over a particular time period. These factors generally affects the operations and goals of the
company. In case of Netflix, the fluctuating change in exchange rates is considered to be a big
threat for the organization. In reference to the OTT industry, it has grown a lot during the past 2
years due to Pandemic. In the present scenario, Netflix is at booming stage. Interest rates,
Unemployment, inflation, wage rates, taxation are various economic factors which could affect
the growth of the company. Also the company runs in different nations so exchange rate
fluctuation is taken into consideration (Wayne., 2020).
Social Factors: Societal norms, demographic trends, equality roles, gender are considered to be
important to keep in mind for Netflix. The spending patterns and online shopping of customers
can also support the company in determining the customer's social trends. Also surroundings of
company could encourage workers to join organization for quality content.
Technological Factors: Being a online based app, the technology plays a very important role.
Patents, Trademark copyrights, intellectual property rights, all of these plays a crucial role for the
company. It basically have intellectual rights update belonging to third party in order to flow the
content. Also the Coming 5G technology can bring major transformation for the company as it
will help in increasing the speed of surfing. With the support of constant upgradation of
technology, it really helped in bringing new contents at every short period of time.
Legal Factors: Such factors are basically the obligations and rules which is abided by the
government. Before entering into any new market policies, it is very important to take into
consideration the different legal factors as it could result in affecting the company. Through
technological advancement, it becomes significant to keep the data secure and safe. Security
laws, Consumer Protection Law, Intellectual Property Rights should be properly taken care for
customers related to particular country(Havard., 2021).
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Environmental Factors: With increase in concern for the sustainability and environment, it has
become a important concern. In case of Netflix, the company carries out its operations on online
and they don't have a direct influence on environment but the company perform their best to
safeguard the surroundings. For the purpose to safe the surroundings, the company try to use
renewable technology in order to make sustainable operations(Shu., 2022).
Porter's Five Forces Analysis
In reference to Netflix, the company is working in content production. The five forces are
used for the purpose to determine the competitive environment. In context to organization, the
company has constantly worked using different strategies. This model is basically used by the
company for the purpose to analyse the five competitive forces which is present in the market.
Competition in the industry: This stage is basically used by the company for the purpose to
assess the competitors. In Netflix, the competitor's analysis helps in understanding the
competition in the content industry which is a basically a strong force. In reference to company's
new entrants, they basically have noticeable barriers due to low profitability and costs.
Threat of new entrants: It basically involves the trends which certainly depends upon the
industry in which the company carry out its operations. In case of Netflix, it involves low threat
in relation to new entrants as the organization has a bigger network of circulation
internationally controlled with reputed image(Kannistio., 2019).
Bargaining Power of Suppliers: With reference to Netflix, the organization trades with the
content which is expensive commodity to develop and it generally comprises of few suppliers.
Due to less number of suppliers, they have a dominant effect on the market.
Bargaining Power of customers: The customers could affect the company's growth in the
market. It can be both negative and positive depending upon the operations of the company. It
involves less switching cost for consumers with almost services being produced at very less
price difference. The critical factor is not price but quality of content. Due to these factors,
bargaining power of consumers is considered to be a strong force.
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Threat of substitute products: It is considered to be the most common threat which is faced by
the companies. In content industry, there are very few substitutes so the threat for Netflix is
highly moderate. The big threat may come from the availability of entertainment opportunities
and leisure activities.
SWOT Analysis
This framework is basically used for the purpose to get visibility on their current status,
measuring overall business performance of the company.
With reference to SWOT Analysis, it helps in having a detailed knowledge about the
weakness and strengths of the company figuring out its future expansion strategies and also
considering the present threats and market opportunities. Being one of the top streaming
companies, the company has various strengths and can use the opportunities in order to seek
growth.
Strengths
 The company is highly affordable in
Southeast Asian countries and has a
global presence.
 The enterprise has a strong brand image
and has shown exponential growth.
 The organization has high adaptability
and is presently high on demand.
 The company offers different
opportunities to new film-makers.
Weakness
 The company lacks sound customer
care executives resulting in providing
dissatisfaction to the consumers.
 The enterprise has very limited
copyright.
 The organization totally depends upon
its North American Customer
base(Lambert., 2022).
Opportunities
 The organization can choose to work on
new concepts other than OTT
platforms.
 Due to good brand image, it will allow
the organization to expand.
Threats
 Due to government regulations in
certain countries, it could result in
holding them from expansion.
 Due to pandemic of COVID, it has
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 Due to Global presence, it could
strengthen their subscribers based
through strategic partnership with local
market.
impacted reproduction of movies and
new original shows.
 Due to content piracy, the company is
facing huge losses and resulted in
threatening the organization.
Brand Equity and Elements of Brand Equity
It basically relates to value premium in organization that generates from a product with a
reputed brand name as compared to generic wine. In context to Netflix, the brand value of the
company has more than doubled. With the support of 105% growth, value of organization has
raised to approximately $21.2 billion(Santo., 2018).
Brand Awareness: It is basically the step where the company evaluates the consumers which
they are basically targeting for the purpose to enhance the sales volume. In case of Netflix, the
organization is targeting every audience and focusing on creation of new content to engage with
the audience.
Brand Association: In context to Netflix, the organization has high spot as an innovator in
entertainment industry. The company's subscribers are increasing constantly. The organization
has developed their application named Flix chat and has debuted and produced its original movie
on big screen.
Brand Awareness: The organization is internationally acknowledged company who basically
provide streaming services such as movies, seasons & various other things in relation to mass
media. For the purpose to publicize the brand, the enterprise uses Netflix affiliate program, cross
promotional programs, social media platforms. Theatre Tickets etc. In addition to that, it use
tongue-in-cheek phrases in order to pull in more subscribers(Lieberman., 2019).
Brand Loyalty: In case of Netflix, the organization has audience in every age which comprises
of teenagers. For Netflix, the brand loyalty is considered to be the ultimate objective for the
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company in order of maintaining standards of services and also staying competitive in market.
The user are highly allegiant to brand who basically depicts they do not subscribe to any
streamlining service such as Hulu and HBO. The organization enjoys almost 53 million
subscribers.
Brand Assets: The organization is online streaming services company which was established in
1997. The organization have brought American rights or portrayed various legal issue or
controversies in a successful manner.
Brand Elements: In case of Netflix, the organization is indeed a sustainable and authentic brand
build with human spirit. With help of a seven letter word mark wrote with silver in a box did a
fabulous job in catching the attention of its viewers. The symbol of the brand is highly unique
and stands out really nicely. Also the phrase “Netflix and Chill” is highly fashionable among
audience. In case of brand mark, it uses shows, television seasons, short viral videos and movies.
Patterns of managing and sustaining brand strategy
The strategic brand management process basically comprises of implementation and
design of marketing activities and programs for the purpose to message, build and measure the
brand equity. When it comes to brand management, it generally comprises of development of
strategy which successfully improves brand awareness, associations and much more. Brand
management is basically function of marketing technique to brand, product or product line. In
context to process, it is very all-important to sustain and create brand equity (Manole., 2022).
Identifying and Establishing Values and Brand Positioning : In case of process, it basically
begins with concise and clear perceptive of what brand is to symbolize and how basically
needs to be point with respect to competitors.
Planning and Implementing Brand Marketing Programs: In context to building brand equity,
it basically involves creation of a brand which consumers are acceptable aware and with which
they have unique, favourable and strong brand associations.
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Measuring and Interpreting Brand Performance: To understand effects of brand marketing
programs, its very important to measure the company's execution.
Growing and Sustaining Brand Equity: The next measure basically comprises of sustaining or
growing brand equity. In context to maintaining brand equity could be highly questioning.
Positioning Strategy
Its basically a marketing strategy which puts emphasis on differentiating a company
from competitor. The main objective is to impact the consumer perception byt elling a brand's
competitive advantage. In context to Netflix, the company's initial positioning strategy was
Niche movies at extraordinary comfort with customizable experience at a fair prices(Minsky and
Geva., 2019).
Segmentation, Targeting and Positioning
This analysis is basically used by the organizations in different industries. It basically
supports the organization in better understanding about the customers and position market which
they want to target in a effective manner. In context to Netflix, the organization is world driving
Internet TV Station with 83 million individuals in 190 nations acquiring a charge of more than
125 million hour of motion pictures and TV appears every day which also comprises of
documentaries, unique arrangement and highlighting movies.
STP Analysis basically a marketing strategy that basically involves three step which comprises
of Segmentation, Targeting and Positioning.
Segmentation: In context to Netflix, the company's business sector is utmost alert and has ever
shown sign of change in buyer and innovation conduct. With reference to Netflix, there are
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different method for segmenting market in video streaming and comprises of various nature of
clients who shifts income, age, watching preferences & much more(Rahe and et.al., 2021).
Targeting: In case of Netflix, the organization focus on a mass business sector of purchase a
membership of TV appears or films expecting to have greatest piece of pie with biggest number
of endorsers it could basically got paying little to inclinations, foundation, convictions and
much more. With support of higher quantity of paying supporters the company could accomplish
return on overwhelming interest in innovation or substance in light of fact that exclusive low
cost could be charged due to administration and businesses.
Positioning: It is considered to be one of the most important stage as it really supports the
company to position themselves better as per the marketing conditions. It is very for them to
create a unique selling proposition with the desired services and products. In case of Netflix, the
top decision is to basically provide the client with superior content.
CONCLUSION
From the above report, it can be concluded that the organization need to use various
viable strategies for the purpose to make them more prominent in the market. It could help the
company in achieving great results and offering excellent quality products for the purpose to
enhance the overall sales in a effective manner. Also, the report involves the evaluation of
different frameworks which is taken into consideration in order to understand the position and
growth in the market. There are various benefits which could be used by the organization for the
purpose to gain a competitive advantage over a particular period of time. Also the competitor
analysis will help the organization in getting a better picture towards the areas they are basically
lacking behind. These can basically improve the areas in an effective way for the purpose to
create a viable situation and attain growth in the market.
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REFERENCES
Books and Journals
Anindita, V., 2021. Disruptive Strategy in Disruption Era: Does Netflix Disrupt the Existing
Market?. International Journal of Business and Technology Management, 3(1), pp.30-
39.
Berger-Grabner, D., 2021. Strategic Retail Management and Brand Management. In Strategic
Retail Management and Brand Management. De Gruyter Oldenbourg.
Fernández Gómez, E. and Martín Quevedo, J., 2018. Connecting with audiences in new markets:
Netflix´ s Twitter strategy in Spain. Journal of media business studies, 15(2), pp.127-
146.
González and et.al., 2020. Relationship marketing and brand community: the case of
Netflix. Redmarka. Revista de Marketing Aplicado, 24(2), pp.251-274.
Havard, C. T., 2021. Disney, Netflix, and Amazon oh my! An analysis of streaming brand
competition and the impact on the future of consumer entertainment. Findings in Sport,
Hospitality, Entertainment, and Event Management, 1, pp.38-45.
Kannisto, K., 2019. The motivations for Netflix to vertically integrate its business model.
Lambert, N. J., 2022. How Can Netflix Fund Its International Expansion Goals?. In SAGE
Business Cases. SAGE Publications: SAGE Business Cases Originals.
Lieberman, M., 2019. How ‘the new customer buyer’s journey’is reshaping the way you
strategically manage your brand. Journal of Brand Strategy, 8(1), pp.76-85.
Manole, T. M., 2022. Twitter and customer needs: Can Data Analysis serve as a tool for strategy
and innovation to improve Netflix users’ experience and expand the Netflix
brand? (Bachelor's thesis, University of Twente).
Minsky, L. and Geva, I., 2019. Global brand management: a guide to developing, building &
managing an international brand. Kogan Page Publishers.
Rahe and et.al., 2021. How users approach novel media products: Brand perception of Netflix
and Amazon Prime video as signposts within the German subscription-based video-on-
demand market. Journal of Media Business Studies, 18(1), pp.45-58.
Santo, A., 2018. AwesomenessTV: Talent Management and Merchandising on Multi-channel
Networks. In From Networks to Netflix (pp. 245-254). Routledge.
Shu, X., 2022. Netflix: The Crazy Story Behind the Brand that Repeatedly Swipes the
Screen. Frontiers in Economics and Management, 3(1), pp.640-649.
Wayne, M. L., 2020. Global portals in national markets: Branding Netflix in Israel. JCMS:
Journal of Cinema and Media Studies, 59(3), pp.149-153.
Zhao, Z., 2022, July. An Analysis and Prospect of Video Streaming Industry: Evidence from
Netflix Inc. In 2022 2nd International Conference on Enterprise Management and
Economic Development (ICEMED 2022) (pp. 311-317). Atlantis Press.
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