...Customer Segmentation Netflix Make a customer analysis and segment the market. What impact does your analysis have on the current business model of the company? Customer analysis The customer analysis is the depth analysis of the end-users; this entails all of the characteristics of the customer. These characteristics include the following: * Geographic characteristics * Demographic characteristics * Psychographic characteristics * Behavioral characteristics These characteristics all combined can identify the exact group of end-users that are targeted by companies like Netflix. Geographic characteristics Geographic characteristics, also known as geographic segmentations, include the details the operation area of the company. Netflix is viewed on an international market, which implies that the operating area is the global streaming market, at least in this case. Netflix doesn’t focus on all countries yet, their main focus is, according to the recent data, on the following countries: * * USA * Canada * Ireland * UK * Norway * Sweden * Denmark * Finland * The Netherlands Another detail of the operation area of Netflix is the internet. Netflix is mainly operating and generating cash flows from the World Wide Web. This identifies the customers to only the potential customers that have access to the World Wide Web. Demographic characteristics Demographic characteristics, also known as the Demographic segmentations...
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...Customer Segmentation Netflix Make a customer analysis and segment the market. What impact does your analysis have on the current business model of the company? Customer analysis The customer analysis is the depth analysis of the end-users; this entails all of the characteristics of the customer. These characteristics include the following: * Geographic characteristics * Demographic characteristics * Psychographic characteristics * Behavioral characteristics These characteristics all combined can identify the exact group of end-users that are targeted by companies like Netflix. Geographic characteristics Geographic characteristics, also known as geographic segmentations, include the details the operation area of the company. Netflix is viewed on an international market, which implies that the operating area is the global streaming market, at least in this case. Netflix doesn’t focus on all countries yet, their main focus is, according to the recent data, on the following countries: * * USA * Canada * Ireland * UK * Norway * Sweden * Denmark * Finland * The Netherlands Another detail of the operation area of Netflix is the internet. Netflix is mainly operating and generating cash flows from the World Wide Web. This identifies the customers to only the potential customers that have access to the World Wide Web. Demographic characteristics Demographic characteristics, also known as the Demographic segmentations, include the...
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.................................................................................................................................................3 4 Problem Statement ......................................................................................................................................................4 5 External Analysis ........................................................................................................................................................4 5.1 Marketing Segmentation .....................................................................................................................................4 5.1.1 Geographic Segmentation ............................................................................................................................4 5.1.2 Demographic Segmentation .........................................................................................................................4 5.1.3 Pshychographic Segmentation .....................................................................................................................4 5.2 DESTEP analysis ................................................................................................................................................5 5.2.1...
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...and Music Plus, making it a very successful corporate giant in the video rental business (“Blockbuster Inc.,” n.d.). Although Blockbuster has faced many challenges with its “new ownership, increased competition, and a relatively soft market for videos,” Blockbuster has been able to remain in the movie rental industry (“Blockbuster Inc.,” n.d.). Despite the company’s struggles and dwindling cash flow in the late 1990s, Blockbuster decreased its rapid expansion, but slowly continued to open stores so that it featured a store close to every large neighborhood in the country (“Blockbuster Inc.,” n.d.). Currently, Blockbuster is still facing struggles in the video rental industry but is working to compete against its newer main competitors, Netflix and Redbox (Merced, 2010). After filing for bankruptcy in late September of 2010, Blockbuster was purchased by Dish Network in hopes to save the company and reposition it as necessary (Merced, 2010). The company will apparently be closing a large number of stores as it works to create an online video-streaming outlet (Merced, 2010). The main advantage that Blockbuster has over its competitors that is keeping it afloat is that it is allowed to carry videos as soon as they are released as opposed to the...
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...targeting new customers, what are the advantages and disadvantages of using these social networks compared to search engine advertising? Provide specific examples of products that lend themselves more to social networks as compared to search engine advertising. I am going to use the quote, “it takes a village” and put into the context on how social media sites such as Facebook and LinkedIn can influence a consumer’s values, decision making, and preference. For example, Facebook has morphed into a global, networking site where people with similar and different backgrounds and from all over the world can connect and share with others in real time. Connect… Facebook users can form or find social groups they wish to join based on commonality such as family and friends, work related, location related, religion and political related, and even product related. Share...Facebook users can share almost everything about themselves in particular their opinions. It is a gold mine for companies to collect data. One of the benefits of Facebook social groups is that they can be categorized as market segments for marketers to “connect” with. “Market segmentation divides a market into well-defined slices. A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segments and decide which one(s) to target.” (Kotler and Keller, 2012, pg. 214) “In behavioral segmentation, marketers...
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...1. Marketing myopia is a short-sighted and inward looking approach to marketing that focuses on the needs of the company instead of defining the company and its products in terms of the customers’ needs and wants. It should be avoided as it results in the failure to see and adjust to the rapid changes in their markets. A good case study for this is Blockbuster, Redbox and Netflix. Blockbuster was on their high horse and did not pay attention to the change Redbox and Netflix sparked. As a result the two simultaneously capitalized on Blockbuster’s market share. This was Blockbuster’s fault because they did not want to adjust to the rapid change. 2. Perceived customer value is marketing and branding related concept that points out that success of a product is largely based on whether customers believe it can satisfy their needs. This emphasizes that when a company develops its brand and markets its products, customers ultimately determine how to interpret and react to marketing messages. Companies spend significant time researching the market to get a sense of how customers think and feel. 3. Market segmentation involves grouping your various customers into segments that have common needs or will respond similarly to a marketing action. Each segment will respond to a different marketing mix strategy, with each offering alternate growth and profit opportunities. After segmenting the market based on the different groups and classes, you will need to...
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...Executive summary The report starts by identifying creativity and innovation as the key to Netflix past success as Harold has consistently shown in his decisions throughout the history of the company taking bold action to chase un-ventured routes to satisfying customer needs. The essence of the report however, is to highlight the issues surrounding the current technological advancements in the DVD rental market now that VOD has become a feasible and realistic platform that can be supported. Netflix is faced with a multitude of options and my argument is that it must base its decision upon the long term strategy of the business. There is still a growing demand for DVD’s in their physical format proven by their increasing rate at which Netflix acquires new prescriptions to their existing DVD postal service and this is predicted to continue to grow for many years yet. Netflix currently has 45 million copies in distribution whilst it holding a huge investment in its offline, sorting and distribution network. Therefore the company does not want to risk cannibalizing its core business at the expense of innovation. Although I think the switch over to streaming content via VOD is where Netflix should be heading, I feel it’s vitally important to place an emphasis upon gradual integration. It is proposed that Netflix enters the VOD market by opening a new subsidiary company reducing the risk to its existing operations whilst testing the market and venturing into foreign...
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...Netflix Case Analysis Key Strategic Issue This article is about the past business history and current business situation Netflix company is in. The case begins talking about how Netflix started with a bang making positive profits and revenues, but has recently hit some trouble due to strategic mishaps negatively affecting the company. The article then begins to describe the industry and various competition within it, and how they do business. There is some information on market trends in home viewing of movies, but most importantly the meat of the article discusses Netflix’s business model and strategy in detail. The one primary problem/key issue facing Netflix is how it will continue to remain the subscription-based leader in the instant movie streaming/DVD delivery industry. There are many rival competitors emerging offering a wide variety of services and options to consumers, and it is important Netflix modifies its business model/strategy and uses its brand recognition/positive traits efficiently. The best-case scenario is Netflix modifies its strategy to once again differentiate itself from competition. Also, it would be ideal that for the global markets targeted to generate massive revenue/profits. The likely scenario is that Netflix will steadily improve internationally, but retain a firm hold of those markets before anyone else has. Also, it is likely that Netflix will remain prominent but will be in tough competition with rivals such as Amazon Prime and Hulu...
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...internet: iph/ipad,youtube,netflix,hulu,crackle Disruptive Technology- scared of losing customers to WWW -high prices subscriptions, free internet vids,highspeed increastes quality of streaming, unauth. distrib. of films/shows, control ovr when u watch tv,no commercials Cable tv RESPONSE to WWW using internet as a devlivery mode networks use huu for commercial advtsg needs to be addressed? lower cost of cable subscrip. more options (value pkgs) deals,(quality) marketing tech, more channels, great quality vids cable compete w/ www: use internet to benefit wider audience: reinvent diff. strategy.consider free subscrip,more visible socialnetworking,capitalize on quality of service willing to cancel cable tv subscrip to watch online -tv used for sports &vid.games VS. watching tv online ----------------------------------------------------------------------------------------------------------------------- Q1 how does youtube control this outside of DRM? DRM- video ID fingerprinting DIGITAL RIGHTS MGMT- data & software issue intellectual property* 7+yrs of creator protect DRM >>youtube has a 10 min.limit- or will remove videos if intellectual property rights are being overrided. *Business Processes- legal processes^^^ -watermarking- embed a signal Q2 Channels of Distribution:Broadcast tv, cable, movietheaters, rentals, sateiliteTV convergence: Cable/Sat + Internet Ex. handheld ph w/ internet segmentation? Cable vs. Satelite - niches...
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...Netflix Video Game Streaming Name MKT/421 Date Instructor Name Netflix Video Game Streaming Marketing Plan: Phase I Trying to introduce a new product or service into an already well-established industry can be an intimidating, yet profitable idea. Take Netflix and the media rental industry as an example. In 1997, Netflix made their debut into the online media rental industry (Netflix, 2013). About 10 years later, their flat rate monthly rental fees, their stellar DVD-by-mail service, and their streaming media options had turned Netflix into a media rental powerhouse. However, video games are one aspect of media rental and streaming that the company has consistently steered clear of. To demonstrate that Netflix could (and perhaps should) offer video game rental and streaming options as their next step for growth, a marketing plan can be established. This marketing plan should include: an overview of the Netflix organization; a description of the proposed video game services; an explanation of the significance of this new service to Netflix; a SWOTT (strengths, weaknesses, opportunities, threats and trends) analysis of this service; and the marketing research approach and strategy that would be used to implement video games into Netflix’s service lineup. Organization overview. Established in 1997, Reed Hastings and Marc Randolph founded Netflix with one goal; to revolutionize the way people enjoyed entertainment (Netflix, 2013). At its inception, Netflix was a membership-based...
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...Discuss this product or service in terms of its current target market demographics using U.S. Census Data. The product/service I chose is in store movie rental and purchase. I.e. Blockbuster Videos. While DVD sales declined for a third straight year in 2009, consumer appetite for viewing movies at home remains very healthy as new physical and digital services for buying and renting movies gain in popularity. The proliferation of movie rental kiosk machines over the last year was probably the most visible sign of consumer interest in viewing movies at home. To understand the impact of rental kiosks and other movie services on household disc purchasing (DVD and Blu-ray), a survey was fielded to panelists who were identified as disc buyers and asked them to report their movie transactions from channels not tracked by scanning. This included rental transactions (both physical and digital rentals) and downloads. One finding from the study was that average disc purchasing (buy rate) among households who also rented movies on physical DVD or Blu-ray declined in 2009 at a steeper rate compared to the average for all disc buying households. The buy rate among households renting a movie on DVD or Blu-ray declined by -11% in 2009 vs. -7% among all disc buying households. Survey results indicated that 34% of these renting households had rented a movie from a kiosk. In addition, households renting from a kiosk are increasingly turning to kiosks to rent movies with 63% reporting that...
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...This case study presents two companies, The New York Times, a publishing company and Boston Scientific, engaged in the field of medical equipment and health; that use information technology in different ways to foster innovation and maintain an edge in their respective industries. The New York Times used a shared service across nearly two dozen newspapers, a radio station and more than 50 web sites. Its role is to accelerate entry onto new platforms by identifying opportunities, conceptualizing, and prototyping ideas. They also partner with other companies such as Netflix to produce an interactive map that shows most popular Netflix rentals. New York Times have also been able to come up with other products like Times Widgets, and Time Wire. Boston scientific on the other hand creates a machine Goldfire software that provides the right mix of openness and security for data to enable employees share information. The main goal is to have any engineer to be able to access the research of their colleagues. This is getting achieved without throwing security out the window. Q1 According to Wikipedia, Shared services refers to the provision of a service by one part of an organization or group where that service had previously been found in more than one part of the organization or group. Shared services are dedicated units structured as centralized point of service and is focused on defined business functions. These are similar to collaboration which might take place between different...
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...| | | | MKTG2100 Group Situation Analysis | | | | Executive Summary The primary goal of this report is to provide an analysis of the company JB Hi-Fi. In particular the report highlights the industry trends of the consumer electronics retail market as well as focusing on how JB Hi-Fi’s segmentation, targeting and positioning strategies. Consumer behaviour is also analysed using the buyer decision process as well as other factors such as culture being identified as important to JB Hi-Fi’s strategical approach. The core of the report contains detailed analysis of the marketing mix, competitive situation analysis and use of the PESTLE. These examined how the company creates value in its current environment as well as the impact of external influences. Lastly the report identified JB Hi-Fi’s recent expansion into the whitegoods markets with as a potential opportunity for the company to grow and expand into other industries, thereby repositioning the brand in the minds of consumers. Table of Contents Executive Summary 2 Introduction 5 Industry Trends 6 Target Markets 6 Consumer Behaviour Issues 7 Marketing Mix 9 Product 9 Price 9 Place 9 Promotion 9 Process 9 People 10 Physical Evidence 10 Competitive Situation 11 Factors Indicative of Intentions and behaviours 11 Comparison between Marketing mix and STP Model 12 Macro Environment 13 Demographic 13 Aging Population 13 Households 13 Economic 13 Recession 13 ...
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...relating to the marketing of goods and services. A company uses this function to link the consumer, customer, and public to the market. A marketing research is an important part of business, and without it, companies won’t be able to keep in touch with trends, demands and preferences of their consumers. Although conducting marketing research can be time consuming and costly, it is beneficial in the long run and the cost of the research needs to be balanced against the importance of ensuring that the business venturing into new products is potentially going to be successful. The four elements of marketing mix, price, product, place and promotion form the basis of any good market research. Using these elements will guide the company’s research and focus the question that needed to be asked. In early October 2015 Microsoft announced the Surface Pro 4 that will be thinner, lighter, faster, and with facial recognition. The Surface Pro 4 is Microsoft laptop-tablet hybrid that can be used as a Windows computer and a tablet. More interestingly, Microsoft has chosen to target companies instead of the main stream consumer users. Based on my observations I think that Microsoft should consider making a tablet directed at the consumer segment of the market for those in who are not interested in productivity but use their tablet for entertainment like watching streaming video apps like NETFLIX and Hulu. I believe that Microsoft will benefit from the growth in this segment as the Surface...
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...17 countries worldwide. It is headquartered in the Renaissance Tower in Downtown Dallas, Texas.[1] Because of competition from other video rental companies like Netflix, Blockbuster has seen significant revenue losses. The company filed for bankruptcy on September 23, 2010. Strengths * Lead market share of online rentals * Low fixed costs * Worlds largest selection of DVDs * Fastest delivery time of any online DVD rental company with over 35 DCs * Service: over 90% of DVD's are received by customers within one day of ordering * Strong website (shopability, navigation, reviews) Weaknesses * Can't control most important expense: shipping expenses * Older demographic has a hard time understanding their concept * Watch instantly feature only allows a small selection of DVD's * Distribution time * presence in only DVD segment Opportunities * Pricing segmentation (i.e., different plans) * Online distribution * Other types of rentals (Video games, educational, institutional, etc) * Internationalization * Expanding to Video Game rental Threats Rising stamp costs, Other larger retailers launching into similar space (i.e., Wal-Mart, Online digital distribution iTunes, Napster Redbox, Blockbuster allowing the rental of games in addition to movies Like most brick-and-mortar rental businesses, Netflix often has trouble providing enough copies of new, popular movies Strategy Used Blockbuster video began to sell its stock of dvds and video games before they...
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