Netflix - Strategic Plan
Netflix is the world’s largest online entertainment subscription service, providing more than U.S. 4 million customers with access to over 100,000 DVD titles. Netflix’s business is renting DVD titles on a subscription basis, with different plans ranging from $9.99 a month to $47.99 a month. Nearly 95% of Netflix subscribers are within a one day ship point, which means most customers will receive the movies within one day of ordering. Their deep movie selection, personalized recommendations, and quick delivery have made Netflix the top-ranked Internet company in customer satisfaction, which has driven rapid growth in subscribers, revenue and earnings (Netflix, 2008).
Netflix started out as a regionally …show more content…
“A company’s marketing strategy is an important tool that works with its Web presence to get the company’s message across to both its current and prospective customers” (Schneider, 2004, p. 155).
To build national brand awareness, Netflix uses every method of e-commerce marketing available to them. The company markets its service by purchasing pay-for-performance banner advertising from Yahoo, MSN, and AOL. It uses search engine marketing and pay for placement ads on major search engines and it also used permission-based e-mail. It developed an active affiliate marketing program where third parties can automatically download Netflix ads and logos, place them on their sites, and collect revenues for steering customers to Netflix. The company has also entered into a relationship with Best Buy to place Netflix flyers, offering a free 14-day trial of Netflix’s service, inside every DVD player Best Buy shipped. In addition, the company offers 14-day free trial periods on its own website. Netflix makes use of conventional multimedia, as well; running ads on television, in magazines, and in newspapers.
Netflix is using the same marketing channels to promote the digital delivery service offering that it uses to promote its mail-based Internet rental business. On Netflix.com, under the ‘How it Works’ tab the customer can see that Netflix offers digital delivery. The customer will have access to more detailed information about digital delivery