Birju Naik | Gopinaath V | Mohd Asif Mufti | Prihana Bhasin |

Srimoy behera | Ronak Shah | Sayani Nandi

 Overview

Netflix is one of the world’s top video streaming service

that allows users to watch content on screens ranging from
a smartphones to a smart television. It works with a variety
of other devices like PlayStation and Apple TV, letting users
stream directly onto larger screen. Netflix is also the
creator of a lot of original, made for the web content, much
of which is now in high-resolution Ultra HD.
 Overview
• Netflix Inc., is an American entertainment company founded by
Reed Hastings and Marc Randolph on August 29, 1997
• It specialises in and provides streaming media and video-on-
demand online and DVD by mail
• Netflix is the world’s leading internet television network with over
93 million members in over 190 countries, enjoying more than
125 million hours of TV shows and movies per day, including
original series, documentaries and feature films
• Netflix was launched in India in Jan 2016 and currently has 4.2
million active users with around 2 – 3 lakhs paid subscribers
• In India its subscription based services start from Rs. 500
 External Environment Analysis
Political Economic Social/Culture Technology Environmental Legal

• Favorable • Booming • Attraction and • Improving • Each company • Laws

regulations market for affinity internet should always concerning
• Tax digital towards connectivity, be able to copyrights of
legislations ventures western speed and conserve and television and
that support • Increase in programs affordability protect the movie shows
sustenance digital spends • Shift from • Shifting environment • Distribution
• Benefits from • Increase in group to towards data and this is a regulations
Government’s consumer individual abundance strategy that
Digital India income and devices for • Availability of Netflix has
initiative spending rates entrainment smartphones always
• Rise in for masses embraced
demand based
videos
• Immense
protentional in
regional
content

L H H H L L
 Industry Analysis
Bargaining Power of Bargaining power of
Threat of New Entrants Industry Rivalry Threat of substitutes
Buyers suppliers
• Largely unregulated • Netflix is currently up • The business-model • Netflix is dependent on • For most homes in
industry for renting against 29 other over- provides customers studios / Production India, Digital cable is
movies the-top (OTT) content large amount of houses for the content now necessary,
• High content acquisition providers in India bargaining power they require to provide therefore many
cost is the primary including Hotstar, • Customers may cancel to customers customers will have a
barrier to entry in this Youtube and Amazon anytime without • Netflix also has their film collection from
industry • This industry seems to termination fee and can own content and their cable network
• Netflix has to keep on be evolving in such a also enjoy free targeting global content • “On Demand,” Services
maintaining the rising way that consumers subscription for a to Indian consumers offered by cable
popularity of e- may subscribe for month • Different suppliers have television providers
commerce such as an multiple service • The low price and high different content to might be a substitute
improvement and providers amount of content offer, hence, even for Netflix if they
enhancing their available through Netflix though there are increase their movie
inventory of stream creates competitive various big players in stock list to a similar
movies and HD advantage compared to the content licensing title selection.
streaming inventory traditional media outlets industry • One of the major threat
• Consumers are is the vast and open
extremely price Internet where anyone
sensitive and at risk of can find movies
abandoning Netflix over illegally for free.
relatively incremental
price increases
M M H M H
Internal Analysis

Strengths Weakness
- Brand name - Steep Pricing
- Technology (Hotstar premium costs just Rs. 199)
- Huge content bank - Limited Indian content
- Unique exclusive western content

SWOT
Opportunities Threats
- Additional services - Government Regulations
- Localised content - Internet Penetration
- Tie-ups with other companies - Multiple competitors
 Internal Analysis
Porters Generic Strategy Model
Differentiation Strategy - Targeting broad affluent segment
through their quality content and original shows with price ranging
from INR 500 to 800/ Month

Opportunity Matrix
Diversification - Entering Indian Market with a new product. Smart
TV, Gaming
Recommended Segment

Geographic Demographic Psychographic Product-Related

• Pan India, • Male & Female • Affluent who • Movies and

Primary focus above the age are seeking serials addicts
on major metro of 16 quality original depending on
cities global content genre of videos
and ready to • Watching of
pay premium movies is still a
• Brand social
conscious experience
• Video on the go
Target - Differentiated approach

The core segment to target are the ‘affluent’ and

‘aspiring’ set of audiences who have:
1. Keen interest in watching the original global content
2. Wants to be perceivedpermanent
aheadroommates
of the league
3. Can afford to pay for the subscription

- Targeting all diff. segment by placing services on all

possible medias from Smartphones to TVs and set-top
box.
Recommended Positioning

• Situating customer’s top need is comfort,

reasonableness, speed, personalisation of the video
and high choice of titles.
permanent roommates

• Providing more customized, quick, helpful, high quality

entertainment.
• Binge watching of their favourite programme
 Perceptual Mapping
High Price

NetFlix

permanent roommates HotStar

Low Content High Content
Amazon Prime
Spuul
Bigflix Voot
Eros Now Snoy Live

TVFPlay

Low Price
Product
• Video Streaming/ Video on Demand
• TV Shows
• Movies/ documentaries
• Original content (TV Shows/Movies) developed by Netflix

• Product Features:
- Can opt out anytime from services
- 3 diff. plans basis customer needs
- Original popular global content
Pricing
• Follow value based pricing
strategy as Netflix is
focusing on differentiation
strategy

• Providing quality original

content at a higher price
than competitors
Retagy
• Premium Plan of INR 800
created for reference
pricing as customer opt
for standard Plan

• Contrary to value based

pricing approach follows
competitor for 1 month
free service promo for
service experience
 Place
• Google Play/ Apple Store/ Windows store
• Netflix recommended SMART TVs
• All streaming media players
• All major game consoles
• Set-top box :
• All major blue ray players
Netflix Marketing Strategy
Product Strategy
• Add more recent movies
• Sports instant streaming
• Expand the library
• Accommodating different internet speeds
• More mediums of payments

People Strategy
• Increase the customer service team
• More training for the people
• Advance tools and software's for customer service
Netflix Marketing Strategy
Price Strategy
• The current prices should not be changed abruptly and proper
communication should be done before any changes.

Promotional Strategy
• Continue 1 month of free trail and communicate in all advertisements
• Mobile texts once every month
• Focusing on digital marketing
• Sponsor events and film festivals
• Tie-ups with payment networks, telecom providers, D2H services, smart
TVs etc.
Thank You
Questions?