Marketing

Management
Maitri Shah – DM22B035
PESTEL ANALYSIS
POLITICAL
Taxes and laws are two of the most influential political factors for a business. Netflix serves a large number of 10 countries, all of which have their own political stance. Every
country has its own set of regulations and guidelines that Netflix must follow. For example, censorship and permissions, illegal torrenting, and regulations related to tax
payments. In some cases, it might be better for Netflix to refrain from offering its services in some countries due to different laws and more strict government regulations.
Another political factor to consider is that some content is not allowed to be viewed in certain countries. Therefore, Netflix must be aware of the content that is banned in
certain countries and make sure that it is not available for users within that specific region.

ECONOMIC
Netflix must use economic factors to determine what the appropriate price is for each country in which its services are offered. This price is determined by the country’s
economic stance and the content that Netflix finds culturally appropriate for that region. For example, Netflix launched a mobile-only plan in India as an additional option to
their existing three plans. This mobile-only option is more budget-friendly and appeals to a great part of the Indian population. Netflix had extremely high ratings in 2020 which
can be explained by everyone staying home and not having many entertainment options. Unemployment, wage rates, taxation, and interest rates are economic factors that
affect the growth of Netflix., because more Ott platforms are coming Netflix needs to create original content to serve in the market.

SOCIAL
Social factors can be thought of as a representation of the demographic characteristics and values of a population. Some demographic characteristics that affect social factors
are age, gender, socioeconomic status, etc. social factors play a bigger role for Netflix than they ever have before. As Netflix has grown and expanded into new territories, so
have its social forces and factors. Several social factors that Netflix must take into consideration are culture, Religion, and language. Although each customer is unique, society
and culture tend to play a significant role in what most consumers want to see. Netflix must be cautious of cultural and religious factors in order to maintain its popularity and
social platform. Language is a very obvious social factor. Netflix provides content in 62 different languages to best suit the majority of their customer Other social factors that are
relevant but are not as intense, can include age and gender. Age and gender play a significant role in diversifying the type of content that Netflix provides. Netflix must maintain
content that appeals to every age group and gender.
PESTEL ANALYSIS
TECHNOLOGICAL
Technological factors refer to innovations in technology that have the potential to change. In operations in the industry.t technological factors are becoming
increasingly important as technology. evolves. Netflix is advanced when it comes to its technology and online features. Netflix uses software to minimize the data it
takes to watch movies and shows without distorting any quality. This software helps reduce the amount of data that Netflix consumers are using on their personal
devices. Along with the data reduction, Netflix added a feature that allows viewers to download content to watch at a later date. Netflix uses complex algorithms to
suggest new content to its users based on the ratings of their previous shows and movies. This technology along with the personal profile features through Netflix
allow customers to have a more customized and unique experience while using Netflix.

ENVIRONMENTAL/ETHICAL
Environment factors include a variety of ecological and environmental aspects such as weather, climate, and climate change Netflix is not as demanding on the
environment as some companies considering they do not produce any products. Therefore, natural resources are not wasted on behalf of Netflix With that being
said, Netflix still has a negative effect on our environment through pollution in the form of carbon dioxide emissions. While most online sources differ in the actual
impact of Netflix and video streaming on the environment, it can be agreed that Netflix must make efforts to minimize its carbon footprint. Netflix’s goals around
sustainability are appreciated, but it is uncertain if they are following through or not considering their last environmental report was three years ago. There has yet to
be an update by Netflix on the progress they have made towards these efforts. Another step taken to protect the environment is that they try to minimize the use of
paper in the office. The only major factor that Netflix needs to make sure of is the use of heavy consumption of electricity.

LEGAL
Legal factors are similar to political factors, but they tend to be more specific when referring to laws Legal factors can differ depending on the country in which a business is
operating One of the biggest legal concerns that Netflix faces are copyright laws Netflix has had trouble in the past with international customers hacking streaming content that is
available in other countries. Because of this, Netflix had to implement new technology to ensure laws are not broken in regard to copyright. Another legal concern is protecting the
data of customers and keeping their information private, for this Intellectual Property Rights, Consumer Protection laws, and city laws should be taken care of by the customers. It
is sometimes difficult for them to understand local laws, regulations, and customs in foreign jurisdictions, including local ownership requirements for streaming content providers.
Customer NETFLIX TARGETED AUDIENCE.

Need According to Maslow’s law, Netflix has shown the capacity of

effectively appeal to consumers through these drivers which
have led to its success. Cultural and sociological influences
play a vital role in the material that consumers may choose

Targeted? to watch on Netflix. Family members and different religious

or friendship groups can easily influence a consumer’s traits
and choices. For some consumers, Netflix is synonymous
with convenience and ease of use. Netflix quickly
grasped the power of the consumer and spent on it
generously to become one of the biggest underdog
success stories in recent years.
 Customer Journey Mapping
You can add steps as required

Step - 1 Step - 2 Step - 3 Step - 4 Step - 5

Awareness Research Consider Purchasing Post-sales
STEP 1:
Awareness

CUSTOMER JOURNEY: This first step begins with customers looking for movies and
hearing about Netflix from near group circles or online platforms.
STEP 2:
Research

CUSTOMER JOURNEY: This is the second stage where the customer starts
researching on Netflix.com
STEP 3:
Consider

CUSTOMER JOURNEY: This is the third stage where the customer starts to explore
Netflix and if what they want is being offered by Netflix or not.
STEP 4:
Purchasing

CUSTOMER JOURNEY: A fourth step that is important shows when a customer

purchases a Netflix subscription as per their choice and preferences
STEP 5:
Awareness

CUSTOMER JOURNEY: This is the final step when customers start to consume their
purchases aka start watching movies or shows.
MARKET
The objective of the research:
Netflix is aimed at improving various aspects of buyers’
business. Research applications span many areas

RESEARCH PLAN including our personalization algorithms, content

valuation, and streaming optimization.

Tools to be used used for research:

Netflix uses AI-powered algorithms to make predictions
based on the user's watch history, search history,
demographics, ratings, and preferences. These predictions
show with 80% accuracy what the user might be interested
in seeing next.

Reason for selecting the given tools:

Netflix found solutions through ML-based recommendation
algorithm, allowing it to curate the pages of every individual
user with relevant content and to identify what a subscriber
is watching, every piece of content on Netflix has a set of
labels: genre, cast, rating, success, and acclaim, etc.
 Competitor Analysis

Netflix Prime Video Sony Liv

Strengths Strengths
Strengths One of the biggest strengths of Sony liv is exclusive
as the world's leading online retailer, Amazon's advantages
Netflix’s strengths involve exponential growth, global sports coverage, and the number of regional shows
mainly come from the three-pronged strategic positioning
presence, affordable price, adaptability, brand of cost leadership, differentiation and focus. This strategy with a broad range to use with.
reputation, and Netflix’s original content. benefits the company from the practice and helps its
shareholders derive value from the company.
Weakness Weakness Weakness
Netflix’s weaknesses are limited copyrights, Prime video’s weaknesses are a flop and fail Sony Liv’s weaknesses are weak marketing, lack of
increasing debts, reduced demands, and a lack of products, an easy business model, loss in the margin, content and adaptability, and limited content
good customer care executives. controversies related to tax, and limited presence. strategy.
Threat Threat Threat
Netflix’s threats are government regulation, content Threats of prime video are imitation, aggressive Threats to sony liv are technological advantages, bad
privacy, one account among several users, and rules competition, increasing cybercrime, a few marketing or weak marketing strategy, lack of range
and regulations from various countries. controversies, and government regulation. variability, and limited content.
Opportunity Opportunity Opportunity
Opportunities for Netflix are a strategic partnership, Opportunities for prime videos are 5G services, Opportunities for sony liv are gaming platforms,
demands for Ott platforms, product line expansions, increasing subscriptions, lower price subscriptions, focus on international content, and adaptability of
and ended ad-based business model. and educational platforms. more movies and shows for better range and choice.
 Competitor Analysis

Netflix Prime Video Sony Liv

Competitive Advantage Competitive Advantage Competitive Advantage

Netflix's generic strategy is cost leadership, which Amazon is known for offering free shipping and Sony Liv's competitive advantage is that they hold a
ensures competitive advantage in Michael E. Porter's convenience, but it also provides a vast selection very large place when it comes to the sports field.
model. of products at competitive prices.

Positioning Statement Positioning Statement Positioning Statement

It is about “defining our brand position takes time” It is “We LIV to Entertain”
it is about “movie enjoyment made easy”

Financial Strength Financial Strength Financial Strength

Sony Liv, which celebrated two years last month
Netflix raked 6 in financial strength which shows the Amazon prime video business models to earn
after its complete revamp, has seen a massive jump
company’s low debt burden in front of the high rate of revenue include SVOD, TVOD, and the Hybrid
in paid subscribers including 6.9 million direct
profit. model.
subscribers
 Competitor Analysis

Prime Video
Netflix Sony Liv

Entry and exit barriers Entry and exit barriers Entry and exit barriers
The major barriers to Netflix are to entry include Amazon has stifled competition in other areas than retail, Sony liv provides one of the biggest platforms for
the acquisition, creation, and licensing of lawmakers found. They concluded that Amazon’s role as a sports and regional content shows. Which gives
content. Other barriers to entry include the dominant provider of cloud-computing services and its other competitors a very large opportunity to enter
acquisition of the network capacity to have the power in other markets creates a conflict of interest that this market but at the same time Sony liv lacks
capability in holding a substantial amount of video “Amazon has the incentive and ability to exploit.” Amazon attractive and strategic marketing planning which is
content. All content-generating companies can enter has also imposed barriers to entry for other voice- the main reason competing for exit barriers are very
this market but, all new and old players except enabled device manufacturers by pricing its Alexa- high.
Amazon will have a lot of ground to cover to compete enabled products below the cost.
with Netflix hence, high entry and exit barriers.
Who are your other
direct and indirect
competitors?

Direct competitors: other OTT

platforms like Amazon Prime,
SonyLiv, Hulu, HBO, Hotstar, etc.

Indirect competitors: Local cinema or

PVRs, YouTube, local movie CDs or
DVDs, TV channels, etc.
 Value Proposition
Netflix's entire value proposition is linked to the fact that it provides
quality entertainment to its user, 24/7. This proposition includes
Access to a huge catalogue of products, with content for all tastes.
On-demand streaming, with 24/7 access – without ads!
USP

Netflix enables people to watch as much TV and movies as they

like in the comfort of their homes.
 4P’s of Marketing
Product: Wide range of movies and
shows.

Price: Basic- $9.99 Premium- $19.99

Promotion: Google ads, billboards,

social media platforms.

Place: NETFLIX.COM or mobile play

stores.
 BCG Matrix

Add your image here Add your image here Add your image here Add your image here

Question Marks: International and other Cash cows: Netflix original movies and
Stars: Wide range of movie contents. Dogs: Documentaries.
language shows. shows.