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Netflix

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Who We Are


Target Market 13%

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Primary Target Market  DVD users ages 18-34  Currently living in a household of three or more people  Don’t have much discretionary income  Have influence on the entertainment options the rest of the household uses


Secondary Target Market  Ages 35-44  Parents of children in Elementary School or younger  Have little time to waste  Have more discretionary income than primary target


Current DVD Users by Age


Financial Ties per Age Group


Meet Ashley


Meet Sarah


Secondary Research 21%

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What is Netflix’s Position Now?  Two decisions caused public backlash:  Raising prices by 60%  Separating DVD and streaming services


Recovery  Lost 800k subscribers at the end of 2011

 Regained 610k subscribers at the start of 2012


Threats

Verizon + Redbox Dish + Blockbuster Streaming Competitors


Primary Research 30%

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Methodology  Awareness, attitude, behavior  4 Focus Groups  Over 1100 surveys  75 short interviews


Focus Group Findings On Hulu:

“As bad as it sounds, it would be a girl who all night is sort of all over you, and you finally bring her back and she’s like “No, I don’t do that sort of thing.”


Focus Group Findings On Blockbuster:

“I think of, like, an old businessman who drives a shitty car now, and is not a cool cat anymore because he was not paying attention…. Everyone else was advancing and doing all these things, and instead of implementing any of those strategies he’s just remained the same.”


Focus Group Findings On Redbox:

“You forget it in your car and it’s like, “Oh 15 dollars, yay!”


Focus Group Findings On Amazon Prime:

“A lot of us don’t know what Amazon Prime is...”


On Netflix… 30%

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People don’t really watch TV shows and movies on TV’s that often

“I watch a lot of Gossip Girl on my computer at school and then, like, at home I watch Netflix and movies on Netflix.”


They can use Netflix to watch TV shows & movies on multiple devices “Netflix is something you can take with you anywhere. She was saying she has it on her iPad, I have it on my iPhone; I watch it in my car if I am going to Orlando or something.”


People don’t really have that much time to watch TV shows and movies “I think Netflix is useful, because if you need to catch up on a TV show, you can and you can do a list of all the movies you want to watch, so it’s kind of like you have a goal to complete and watch all the movies you want to watch.”


Survey Findings • 1170 U.S. Respondents • 18-45 years of age • Analyzing: • Attitude • Awareness • Behavior • Media Usage


Survey Findings

Time Spent Watching TV/Movies per week


Interview Findings • 79 Respondents •Questionnaires • Preferences and habits


Creative 49%

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The Problem “DVD Devotees” are comfortable and don’t want to convert to streaming How do we get more DVD users to try streaming?


The Big Idea ď‚Ą The target wants: 1. Simplicity 2. Convenience How can we get express these two ideas?

ď‚Ą Simplicity + Convenience = ____________?


Video


Media 64%

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Media Phase 1 TV + Digital Media Phase 2 Social Media + Promotions Phase 3 OOH + Guerilla


Objectives 87%

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Objectives: Sales

Increase total of unique streaming subscriptions by 30-35% Increase revenue growth by 20-25%


Objectives: Creative  Modernize Netflix brand image  Position Netflix as the streaming media outlet that is easiest to use

 Encourage DVD subscribers to convert to streaming through intensive promotions


Objectives: Media Reach over 2/3 of our target market Adapt communications to fit our target market’s lifestyles and habits


Objectives: Social Media and Promotions

Conversation with target market Build meaningful relationships Manage Netflix’s reputation and image


Campaign Evaluation Pre-testing Sales evaluation Tracking studies


Live the Stream


Our Team


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Thank you!


Netflix Presentation