Marketing Activity Analysis Report of Netflix

        Netflix is among the world’s largest entertainment companies. Netflix is currently providing its services in more than 190 countries. Approximately 139 million members around the world are getting the services of Netflix. The Netflix portal allow customers to watch TV series, films and even documentaries in different languages. The organization was established in the year 1997 at the place of Scotts Valley California USA. The head quarter of the corporation is located in Las Gatos USA. Netflix is listed in the NASDAQ stock exchange and according to the statistics of March 2019 the stock price reaches $354.86. Netflix done IPO on 29 May, 2002. It can be said that over the years the organization have expanded rapidly and gain significant market share.

The Marketing Environment of Netflix

Market Size of Netflix

        In the category of streaming network Netflix is dominating the market with over 139 million subscribers. Netflix leaved Amazon Corporation behind with 100 million subscribers. In the year 2018 Netflix have generated $15 billion in revenue. Netflix current market value is estimated to be around $155 billion. Netflix is operating in 190 countries and have grab significant market share by focusing on the needs & preferences of the customers. The table below is showing the revenue growth of the corporation (Roebuck, 2011).

Source: https://financials.morningstar.com/income-statement/is.html?t=NFLX&region=usa&culture=en-US

Market Share of Netflix

    The revenue of the organization has increased significantly over the years. The corporation grow from $1.2 billion to around $11.8 billion in the year 2017. At the time of IPO the share price was $15 which has reached up to $353 in recent years. In 2013 there were approximately 40 million subscribers worldwide and today the organization have 139 million subscribers. All these facts are stating that the company has maintained significant market share. The figure below is showing the number of subscribers over the years (Roebuck, 2011).

Source: https://www.statista.com/statistics/250934/quarterly-number-of-netflix-streaming-subscribers-worldwide/

Target Markets of Netflix

Netflix target both females and male customers who comes under the age range of 17 to 60 years. The Netflix products and services usually target middle classes or lower middle class people. Netflix target such customers whose income is round about $30,000. The corporation has able to address the preferences of its customers quite efficiently which becomes the major reason for the success of the business.

SWOT Analysis of Netflix

PEST Analysis of Netflix

Political Factors of Netflix

        The political factors include the policies which are created by the government of different countries. US does not allowed Netflix to provide its services in the countries like Syria & North Korea. It means that the benefit which Netflix can gain from operating in such countries is restricted due to the government policies. In addition in different countries the government have set rules regarding which content can be shown to the public therefore Netflix have to follow those regulations.

Economic Factors of Netflix

        The economic factors include change in inflation rate, tax rate and foreign exchange rate. If any of these factors show changes than the profitability of the corporation gets effected. Netflix is providing its services in many countries around the world and when foreign exchange rate experience fluctuation than the profits of the company get disturb. In many countries when the inflation rate or tax rate changes the purchasing power of the customers also gets effected which ultimately have impact on the revenues of the organization (Ahmed, Ullah, & Alam, 2014).

Social Factors of Netflix

        The social factors include the preferences of the customers and the environment within the organization. The great working environment of the organization enhances the employee performance and that’s why the productivity of the corporation increases. The corporation also very active in corporate social responsibility. The organization provide financial aid to different charities which shows the organization’s commitment with the society.

Technological Factors of Netflix

        The technological factors play significant rule in the success of the corporation. The technology around the world keep on changing with the passage of time and if the organization are not going to upgrade their technology and provide innovative products than the organization might unable to compete with the competitors. Netflix provide high quality video and content to the customers. Netflix compress video’s in such a way that less data will be required to watch the video without sacrificing the quality (Spender, 2014).

New Opportunities & Challenges of Netflix

        There are many opportunities for Netflix in the upcoming future. The organization can increase its subscription rate so that it can grew in future. The organization can understand what its customers are looking for and provide its product/services accordingly. The corporation can provide variety of shows in different languages to keep the interest of the customer going. The major challenge for the Netflix are its competitors. The main competitors of the corporation are Amazon, HULU, YouTube and HBO Now. If the corporation is not going to take necessary actions than there is a chance that in future the competitors might increase their market share (Samaha, Beck, & Palmatier, 2014).

Marketing Mix of Netflix

Product of Netflix

        Netflix focus heavily on its products and services which it provides to its customers. The organization uses latest technology & innovation to improve customer experience. Netflix keep on expanding the range of different movies & TV shows so that customers can get new content with the passage of time. Netflix creates its own original content as well which allow it to gain co0mpetitive edge over its competitors. The products & services of the organizations are main reason through which it has gain prominence in the market.

Price of Netflix

        The pricing strategy of Netflix is exceptional and allow it to attract different customers. The price plan of Netflix always remain stable and does not change rapidly with the passage of time. Netflix has target middle class people therefore the prices of Netflix are competitive. Netflix provide one month trial and if the customer is not happy with one month trial than it does not charge any price from the customers. Netflix has created strong relationship with its customers and remain in contact with them. Good communication is necessary for gaining success in business (Kotler, 2008).

Place of Netflix

            The Netflix provide its services through website and application. The website & App of Netflix is upgraded on continuous basis. Anyone can access the website or App through various devices which include smart phone, tablet or personal computer. The organization has provided various features on Application and website for its customers. The key features which Netflix provide include sneak peaks and downloads (Economist & Kourdi, 2015).

Promotion of Netflix

        Netflix uses various strategies for advertising or promoting its products/services. Netflix advertise its services through television commercials. On various social media sites Netflix promote its product. In the newspaper Netflix provide advertisement regarding its latest services. In addition Netflix provide one month trial to its customers and if any customer does not get satisfied with the one month trial than Netflix does not charge any price from the customer.

Analysis & Recommendation of Netflix

        The current strategies of Netflix have proved quite successful for the corporation and in less amount of time corporation has able to generate significant amount of profit. However there is still room for further improvement. The organization is recommended to keep on expanding it services in different parts of the world. The organization should reach to different new countries where it thinks that it can achieve success. Netflix can provide its services according to the taste & preferences of that particular country in which it is providing its services. Increasing the variety of the content is another way through which the organization can attract more customer and can sustain in the long run.

References of Marketing Activity Analysis of Netflix

Ahmed, M., Ullah, S., & Alam, A. (2014, Jan). Importance of Culture in Success of International Marketing. Retrieved from https://www.researchgate.net/publication/259962350_Importance_of_Culture_in_Success_of_International_Marketing

Economist, T., & Kourdi, J. (2015). Business Strategy: A guide to effective decision-making. PublicAffairs.

Kotler, P. (2008). Principles of Marketing. Pearson Education India.

Roebuck, K. (2011). Netflix: High-impact Strategies - What You Need to Know: Definitions, Adoptions, Impact, Benefits, Maturity, Vendors. Lightning Source.

Samaha, S. A., Beck, J. T., & Palmatier, R. W. (2014). The Role of Culture in International Relationship Marketing. Journal of Marketing, 78(5), 78-98.

Spender, J.-C. (2014). Business Strategy: Managing Uncertainty, Opportunity, and Enterprise. OUP Oxford.