Marketing Persona

Suzie A. Scholarie

Background  

• Majority of time is spent on college campus
• Works part-time and goes to school full-time

Demographics                                 

• Early to late 20’s, skew female
• High School Diploma
• Some College or College Degree       

Identifiers                                        

• Likes Apple products
• Data phone and headphones
• Frequently posts on social media

Goals/Challenges

“Between school and work, I have little time to sit-back, relax and enjoy my favorite shows or movies.”

How We Help

• Improve Data-Connection
• Update Content

Objections

• Internet Service Providers (ISPs) disrupting internet traffic
• Subscription Cost
• Targeted word-of-mouth campaigns on social media

Marketing Message

“See what all your friends are talking about; watch it anywhere on Netflix.”

Joe B. Blase

Background                     

• Works full-time at a low-demand, highly skilled job
• Has to have the latest technology devices

Demographics                                 

• Mid to late 20’s and early 30’s, skew male
• High School Diploma
• Some College or College Degree       

Identifiers                                        

• Tablet, data phone and headphones
• Frequently contacts family and friends on social media.

Goals/Challenges

“When work is slow, there is nothing for me to do; so, I kick-back and watch Netflix on my phone”

How We Help

• Improve Data-Connection
• Multi-device integration

Objections

• Internet Service Providers (ISPs) disrupting internet traffic
• Subscription Cost

Marketing Message

“You got it all done today.  Down stream your down-time with Netflix.”

SWOT Analysis

Strengths:

• Brand Recognition:  The Netflix brand is very well known and has become a verb among many internet users. 
• Accessibility:  The Netflix App has enabled their subscribers the ability to stream media on nearly all internet enabled devices. 
• Original Content:  Award winning original content for series House of Cards and Hemlock Grove and other critically acclaimed titles. 

Strengths:

• Brand Recognition:  The Netflix brand is very well known and has become a verb among many internet users. 
• Accessibility:  The Netflix App has enabled their subscribers the ability to stream media on nearly all internet enabled devices. 
• Original Content:  Award winning original content for series House of Cards and Hemlock Grove and other critically acclaimed titles. 
• Cost of Content:  The cost of mass licensing packages and the in-house original content production has the company undertaking a large amount of debt.
• DVD Subscribers: DVD and Blu-ray subscribers have dramatically declined in 2013.
• Raising Subscription Prices:  Netflix has a difficult time raising subscription prices.  The last attempt to raise monthly subscription prices left currently subscribers upset and Netflix stock tumbling. 
• International Expansion:  The ability to create original content will enhance international growth.
• Original In-House Programming:  With many house-hold entertainment devices connected to the internet, there is an opening for internet tv and Netflix’s exclusive in-house content poises the company for that demand.
• Word-of-Mouth Campaigns:  Marketing expenses have steadily decreased due to word-of-mouth campaigns based on original content.
• ISPs:  Netflix accounts for about 30% of daily internet traffic.  With net neutrality laws struck down, Netflix may have to assume more debt or cut content. 
• Competition (Amazon Prime, YouTube):  Both, Amazon Prime and YouTube has announced their own original content productions and aim to be a direct competitor to Netflix.
• Content Price:  The price of licensing and renewing those license agreements remain to be the largest threat to the company’s ability to operate at a profit.

Weakness:

• Cost of Content:  The cost of mass licensing packages and the in-house original content production has the company undertaking a large amount of debt.
• DVD Subscribers: DVD and Blu-ray subscribers have dramatically declined in 2013.
• Raising Subscription Prices:  Netflix has a difficult time raising subscription prices.  The last attempt to raise monthly subscription prices left currently subscribers upset and Netflix stock tumbling. 

OPPORTUNITIES:

• International Expansion:  The ability to create original content will enhance international growth.
• Original In-House Programming:  With many house-hold entertainment devices connected to the internet, there is an opening for internet tv and Netflix’s exclusive in-house content poises the company for that demand.
• Word-of-Mouth Campaigns:  Marketing expenses have steadily decreased due to word-of-mouth campaigns based on original content.

THREATS:

• ISPs:  Netflix accounts for about 30% of daily internet traffic.  With net neutrality laws struck down, Netflix may have to assume more debt or cut content. 
• Competition (Amazon Prime, YouTube):  Both, Amazon Prime and YouTube has announced their own original content productions and aim to be a direct competitor to Netflix.
• Content Price:  The price of licensing and renewing those license agreements remain to be the largest threat to the company’s ability to operate at a profit.

 

Recommendations:

Financing and licensing is the immediate threat to the company’s ability to operate on the short-term.  Management may consider introducing a conditional price increase that would supplement some of these costs by implementing limited advertising between programming.   The in-house original content is a noteworthy investment that has benefited the company by generating a word-of-mouth campaign and proving that the company can be an award winning content producer.

Reviews: 

Yelp or Google reviews would not benefit the company or service.  Netflix has few competitors due to the complexity and extreme cost of content licensing that essential prices out the competition to only a few.

Netflix Company Profile

Netflix Inc (NFLX.O)

http://www.netflix.com

Netflix, Inc., incorporated on August 29, 1997 as a DVD subscription based rental service and a decade later became a leader in Internet streaming service with over 44 million members in 41 countries.  Netflix members have access to over one billion hours of TV shows and movies for one low monthly price.  This also includes award winning Netflix original and exclusive content.  Netflix has given control back to the viewer by enabling their subscribers to select what they want to watch on any internet enabled device without additional cost or restrictions.

Netflix currently employs two thousand Full Time and Part Time empoloyees.

Mission Statement:
“Our core strategy is to grow our streaming subscription business domestically and globally. We are continuously improving the customer experience, with a focus on expanding our streaming content, enhancing our user interface and extending our streaming service to even more Internet-connected devices, while staying within the parameters of our consolidated net income and operating segment contribution profit targets.”

Netflix Corporate Office Address:

Netflix Inc.
100 Winchester Circle
Los Gatos, CA 95032

Welcome to the Netflix Report.

Welcome to the Netflix Report,

The purpose of this blog is to report on the business of Netflix and to monitor and report the effects of the recently federal court ruling against net neutrality.  As a web developer, the equal access and distribution of the internet is very important to the continued progress and growth of this developing industry.  Netflix will be one of the first online companies who will feel the adverse effects of this ruling and they will be the first to publicly act.

On a lighter note, I am a Netflix subscriber and I will also review other aspects of the company and how Netflix is streaming the way to a new standard of content delivery and home entertainment.

Cheers,

Eric DeHaan