Netflix Inc - Research Paper Example

?Netflix Table of Contents Netflix Table of Contents 2 Introduction 3 Brief Overview 3 Marketing Mix 4 Product 5 Price 5 Place 5 Promotions 6 People 6 Process 7 Physical Evidence 7 Conclusion 7 References 9 Introduction Netflix Inc, was founded in the year 1997 headquarter at Scotts Valley of California, with over 23 million subscribers in U.S and at Canada is the leading online rental movie service of the world (Netflix-b, “Company Profile”). The service is provided over internet for watching movies and TV episodes on PCs, TVs and Macs. The company is operated with over 2000 employee at its corporate headquarters and at the shipping centre (Rappa, “About Netflix”). The company offers various subscription plans for the customers stating at just $7.99 for the unlimited service for watching movies and TV episodes. The service also includes delivery of DVD’s directly at the customers place with no extra charges from the company. Netflix service has a user rating facility which helps viewer to rate the available movies and suggest recommendation according to the genre and preferences. For this report the target market is the class room group who are within the age group of 22 to 35 years. It can have a great potential for Netflix with the movie services which are in huge demand amongst the young generation. With the high-tech innovation in the modern communication industry the use of internet are growing at a very fast pace especially amongst the young age group who are more acquainted with the online services. Thus Netflix service can act as a very demanding service for the classroom group. Brief Overview Target market specifically includes the section of the overall market that would serve as the targeted customer base of the company. Under a targeting strategy a firm tries to select the best possible customer segment as a part of its primary customer base. The marketing mix is then formulated that seeks to provide tailor made services to the customers to meet their demands (Armstrong, p.31). In the present case the class is assumed to be the target market segment. The age group of the target market is between 22-35 years of age and includes both male as well as female customers. The choice of the target audience assumes significance considering the nature of services offered by Netflix. Netflix offers a wide range of services that includes unlimited access to movies and TV programs that can be watched by the customers on a TV, tablet PC or a laptop. Considering the net savvy and large scale exposure of the target market respondents towards these devices the chosen target market can offer a wide range of services to satisfy the demands of the chosen target customer base of the organization. Netflix owning to its brand image and efficient customer service along with a unique and innovative product offering in form of contents shown can present a formidable challenge to its competitors in the market. The competitive advantage of Netflix also comes from the fact that the device sold by the company is compatible with almost 20 different devices. These devices are among the most popular gadgets that are used by the selected target market. The company recently announced that the device would also be compatible with popular gaming consoles that include X Box 360 and Sony Plantation. Customers can watch unlimited movies from a large collection of diverse genres by paying only 7.99US dollars in a month. In addition to this the efficient level of customer service also serves to make it the best choice for the chosen target consumer segment (Netflix, “Company Profile”). Marketing Mix The elements of marketing mix for a service oriented organization like Netflix includes the elements of product, price, place, promotions, people, process and physical evidence. Product The product portfolio for Netflix with regards to the target market audience would include a complete subscription package that would include the devices as well as access to a large number of movies that would be backed by a collection comprising of a large number of movies from different categories to suit the varied tastes of the target audience. The product would be compatible with about 200 different types of gadgets including I-Pods, PC, laptops, television sets etc. The product would also be compatible with gaming consoles like X box and Play station that are very popular with the target audience. Customers also have an option of getting blue ray movies by paying an additional 2 US dollars a month (Netflix-a, “Other”). The service offering of the company would also enable users to access high speed internet while offering a wide array of programs that allows unlimited access to different entertainment contents. Price Netflix would offer an attractive pricing strategy with the services being offered at 7.99 dollars a month. The company would also provide a free trial pack for the new customers. Customers would also have an option of getting enhanced value added services at payment of a minimal charge over the monthly rental. These value added services include customized services like Blue ray movies etc. The connection would also be offered at both pre paid as well as post paid schemes. The service offering of Netflix would also enable customers to cancel their connection at any point of time. Place Netflix would mainly target customers in USA and Canada. The choice of the nations assumes significance considering the fact that both these nations have citizens that have large cultural affinity. Moreover considering that these two nations are located close to each other the company would also have to incur less expense towards setting up transmission stations etc. Promotions Promotions are the most vital aspects for the success of a product or service in the minds of the customers. In order to attract customers the company would embark upon a strategy of integrated marketing communication that would involve use of print, electronic as well as the online media. Considering the fact that the chosen target segment falls in the age group of 22-35 years hence the company would use the online channel to specifically target these customer segments. In addition to television commercials the company would also use the online social networking as a media to communicate its message to the target audience. The popularity of these sites among the target audience would help in generating sustainable competitive advantage for the organization. The company would largely highlight its efficient customer service as bait to attract customers and select it over its competitors in the market. People People involve the employees of the organization who would be responsible for delivering the services to the customers. This element assumes significance as the customers would be in direct contact with the employees of the organization. In case of Netflix people would include back office personnel as well as frontline sales staff that would directly interact with the customers. An effective training program would be included by Netflix so as to make them aware of various customer relationship management practices that would enable them to provide excellent level of service to the customers. The staff would also be directed to showcase their humbleness in their dealings with the customers. Process Process would include the manner in which the service would be delivered to the customers. The company would strive towards providing uninterrupted transmission of programs. Customers would get instant installation of the service once they have paid the money. The company would also have an efficient customer service team that would be devoted towards handling the queries and the grievances of the customers. Every effort would be made to address the grievances in the shortest possible time in an attempt to maximize the satisfaction levels of the customers. Physical Evidence Physical evidence is the only tangible part of the service offering of a service oriented organization like Netflix. The company would use handy devices so as to make it friendlier and convenient for the customers. This would also allow them to use Wi-Fi networks to \gain access from multiple locations. The transmission quality of the broadcasts would also be provided at the highest standards so as to ensure greater customer satisfaction and sustainable competitive advantage so as to ensure sustainability of the organization. Conclusion With high customer satisfaction rating for several years Netflix with its innovative services has a great influence on the U.S market. By offering exception value to the customers the brand was built with customer experiences which are very important for any online service providers. The backbone for the development of this strong customer base is the result of the technological use in the modern competitive environment. With a huge database of movies and TV episodes, the service is easily accepted by the customers. The low cost subscription of just $7.99 for the unlimited service gives the young generation great advantage to avail the service. The technological implementation of the company is the main reason for the success of the online service. Any product or services are best suited to the market if it can connect with the customers and this was very well identified by the company who provided the option for submitting reviews to the movies and recommendation and suggestion to the customers according to their tastes. This filtration of the database gives great user friendliness to the customers and facilitates the service experience from Netflix. References Armstrong, M. A handbook of management techniques: a comprehensive guide to achieving managerial excellence and improved decision making. 3rd Edition. Kogan Page Publishers. 2006. Netflix. Company Profile. 2011. Overview. June 8, 2011 . Netflix-a. Other. 2011. How it Works. June 8, 2011 < http://www.netflix.com/HowItWorks>. Netflix-b. Company Profile. 2011. About Netflix. June 08, 2011 < http://cdn-0.nflximg.com/us/pdf/Consumer_Press_Kit.pdf>. Rappa, M. About Netflix. 2008. CASE STUDY: NETFLIX. June 08, 2011 < http://digitalenterprise.org/cases/netflix.html >. Read More