Marketing Plan For Netflix Company

  • Words 2212
  • Pages 5
Download PDF

Brand or Company Description

Netflix is the largest DVD movie rental which is online and offers service to over one million members who can access over 15,000 titles online. The company has been built to prove it’s the best expansive DVD selection where members easily choose movies in fast way and the delivery is free.

Core Products or Services

The main products of Netflix Company are the online DVD movie rentals where members subscribe to watch them in fee and fast way. It can be said to be a rent-by-mail company with over 1 million subscribers globally.

Click to get a unique essay

Our writers can write you a new plagiarism-free essay on any topic

A brief history of Netflix Company

Netflix was founded by Marc Randolph and Reed Hasting in the year 1997 at Scotts Valley in California. Having failed to return a movie in its due date, Hasting came up with the idea if Netflix and together with his partner they implemented the idea to what it is today. The website for Netflix was officially launched in 1998, 14th April having a traditional method of pay-per-rental. In September that year, the company came up with the monthly subscription method and since then Netflix has been able to build a reputation as the best online movie rental service provider.

They have offered the services for flat-fee unlimited rentals and they do not have complications like late fees, due dates as well as the shipping and handling fees. By the year 2005, the company had 35,000 film titles of different contents available and the shipped out over 1 million DVDs daily. Its one billion mark in DVD shipping came in 2007 as it now began to move away from its original mailing DVDs which was its core business model. They thus introduced what is now called video-on-demand or in other words the live streaming. The company today has licensed and distributes films via a division they have regarded to as the Red Envelope Entertainment. The paper analyses the marketing plan for Netflix Company and how it can be able to beat its competitors in the market.

Marketing plan analysis

Marketing plan is very critical in ensuring a newly introduced product will reach the targeted consumers. This will dictate chances of a product either failing or succeeding in earlier stages of product life cycle. Companies worldwide are heavily investing in massive promotional campaigns in efforts of ensuring different products introduced are able to compete effectively with other products in the market which are almost similar in quality and other aspects (Marian Burk, 2013).

Among very competitive sectors currently is information technology as most products introduced are almost similar and most of them are subject to obsolescence. This makes consumers of such products to remain very cautious prior to choosing which products to purchase and consequently suppliers have no option than to embark on strategies of proving their products are currently the best in market. Netflix operates in a very competitive market and thus needs to have a marketing plan which makes it be ahead of its competitors. Before the marketing plan, it is vital it analyzes its SWOT analysis and its core competences.

The goals of the marketing plan

The main objective of the marketing business plan is to make the Netflix achieve a 60% share in the market. The other goal is to have sales turnover to increase by 13% in the next three years. This will be achieved by a strong marketing team with the required skills. It will important to secure management commitment for successful implementation of the plan. All resources required should also be extended to the company (Marian Burk, 2013).

The company should remain innovative in designing competitive techniques which will ensure the company’s products will outdo other competitors in market place. Appropriate research should be conducted to ensure innovative security features are introduced to the software which will make it difficult to copied or duplicated by selfish individual. The company should also continuously introduce more innovative futures to the software which will impact in the long product dominance in the market.

SWOT Analysis

Despite the companies well established network of customers it will be appropriate for the company to conduct SWOT analysis which is very essential in identifying chances of the product either failing or succeeding. SWOT analysis refers to “tool for auditing an organization and its environment through identifying the strengths, weaknesses, opportunities and threats.


The company’s strengths include its already established wide online marketing platform which buyers can use in accessing different products retailed by the company. One of the strengths of the company is the user experience as delivering DVDS direct to homes is very major convenience. This has led to the demise of the blockbuster business of the bricks-and-motor. With a good timing, Netflix customers are able to have their movies anytime they want to watch. The good experience by customers makes Netflix to be the company of choice and this gives a competitive edge over the others. Another strength possessed by the company is its streaming capability where there is the benefit of having a monthly plan of around $8.99 for the nights when urges to watch the movies. The streaming of Netflix is available on many devices for consumers electronically and it becomes the standard feature for modern TVs. Another strength is the company’s prices which are very competitive for as little as $8.99 monthly, one is able to watch unlimited number of movies be it be streaming or watch on DVDs. For some addition, one can get the number of DVDs increased and this gives users flexibility which is better than competitors. This is less expensive compared for when one pays for cable channels to watch movies.


One of the weaknesses for the company is that it does not have the pricing power as the studios can dictate some serious terms to the company. This thus limits when some of the movies become available and for how long they will be in the market. The other weakness is more on pricing power where the company has to accept the rates and delivery schedules which have been set by the US postal service. It also has to accept the rates which have been set by the providers of streaming. The terms of content distribution is a weakness to the company whereby they are not exclusive (Netflix, Inc, 2013). This is because they allow competitors to be able to access the same movies as well as television shows thus this leaves the way for competition to be open.


The company can decide to brand and become the first thing people think of when they want to watching movies at home the way Google has branded itself for searching. Netflix should take this opportunity and rebrand to be the best in the world for home watching movies. The company has also to expand and go international instead of depending on the USD subscribers. Going global will increase the market share for the company and also grow its profit margins. It ought to increase its channels of distribution.


One of the threats for Netflix is content producers which are going their own way. For instance, Hulu which is owned by Disney, NBCs General Electric and News Corp., are likely to get deals which are favourable for their contents. It will reach appoint that if many people favour the contents of Hulu and if Netflix fails to provide the same or better content, it will become a problem for the company. Another threat is other streaming which may offer the same services like Netflix. After Hulu the other bigger threat is YouTube which offers live streaming and may pose a serious threat to Netflix. Modern internet providers will oppose a threat to Netflix as many of them are movie distributor. This means they can decide to limit travelling over their lines thus favouring their won stuff compared to Netflix’s.

Marketing mix for Netflix


The company should continue using its low pricing strategies which gives it competitive edge over the competitors. Its target market is middle and high income earners. Such individuals are not that concerned with the price of the products but what they stand to gain from them.

To achieve the above goals the company needs to improve on its pricing strategy to be able to deal with the economic downturns. The fact that other companies are offering alternative products that are priced low also means that the company needs to consider lowering the price of some of its products.


Netflix has been using different strategies to promote its products and services. It ought to advertise its products over the internet to be able to reach out to a large number of customers around the globe.


Netflix Company argues that film industry needs to collaborate with online stores which are already established as commercial video stores. This would easily fight for IPRs which seems unending with new video distribution and the company will help in that.

Target market and positioning

It is important to align the marketing strategies of any company to its immediate environment. Embracing change was also another challenge in this institution. Things are changing for the better due to technological advancements. The changing technology and dynamic market has led to competitive advantage through sustainability (Kourdi, 2009). It will be critical to identify the level of competition currently in the movie business which will assist in identifying marketing techniques currently deployed in the market. With experience of current competitive techniques deployed at market place, Netflix will be able to successfully implement viable and more innovative marketing strategies which will easily outdo other company’s software in the market. Differentiating marketing techniques is the key driving force for any successful marketing plan as opposed to simply duplicating competitive strategies already deployed in the market.

Marketing objectives

Changes in the political pressure and economic environment should be put into consideration when setting out companies strategies. Before opening any business it is important for the business owner to look at the economic and political factors which can affect its business. Since there are booms and lumps the economy is bound to undergo through a series of fluctuations. Most businesses benefit in boom while in slump they lose. There are so many economical changes which affect the business for example wage rate end interest rate (Whittington, 2002). When the economic conditions are right most businesses are encouraged to take risk and expand. For better marketing results the companies campaigns should be in line to the messages given to the customers. The company should always identify the best strategy it can use. Strategy can be getting and retaining the best position over the rivals through exploitation of emergent and known possibilities rather than committing to any plan. It is also direction and scope of an organization over a long term plan.

Diversification and segmentation

Diversification of product is also another way accompany can achieve the best sales. Through product diversification the customers can get more business through selling many things. Through diversification the business can protect itself more so if demand drops or when the product faces a big competition. Through it a business stands to reduce risk by allocating investments among various industries and financial instruments (Rumelt 2011).

Technological advancement also improves the sales of the product. There are so many positive impacts which have come with the development of technology. It has improved communication in the work place and this has given businesses a competitive edge. There is efficiency in the work place because of the screening which has been improved in the work place. To address the needs of the customers the employees must be aware and should have enough information about the needs of the clients. In case they are dealing with the sales they need to be up to date with the products they are selling. Companies should also depend on the target market.


Netflix is well established company with a good network of customers and this should be used as a competitive tool in marketing this newly introduced product. The company should remain innovative in designing competitive techniques which will ensure the product will outdo other competitors in market place. Appropriate research should be conducted to ensure innovative security futures are introduced to the software which will make it difficult to copied or duplicated by selfish individual. The company should also continuously introduce more innovative feature to the products which will impact in the long product dominance in the market.


Companies should make clear strategic choice about their approach. The worst thing a company may do is to lack proper strategy. Through configuration of the organizations resource an advantage is achieved in whatever environment the business can be in. Strategizing helps the business to know through identification the needs of the market and be able to meet them. Strategy concerns so many factors. When strategizing, the business needs to consider where it is heading to not only in short run but also in the long run. The business should consider the market to compete in and the activities involved in this particular market.


  1. Baylis, J. (2007). Strategy in the contemporary world: an introduction to strategic studies, Oxford, Oxford University Press.
  2. Kourdi, J. (2009). Business strategy: a guide to taking your business forward, London, Eng, Economist in association with Profile Books.
  3. Marian Burk, W. (2013). Marketing Plan Handbook: Pearson New International Edition. Harlow, United Kingdom: Pearson.
  4. Rumelt, R. (2011) Good strategy, bad strategy the difference and why it matters. London,
  5. Whittington, R. (2002). Marketing strategies? London [u.a.], Thomson Learning.


We use cookies to give you the best experience possible. By continuing we’ll assume you board with our cookie policy.