Netflix Marketing Mix: Netflix was founded by Marc Randolph in 1997 and Reed Hastings worldwide. It has over 1,000,000 videos on its network. Netflix has improved its marketing mix over the years to increase sales and make profits. The competition includes HBO Go, Vudu and Hotstar, Amazon Prime, Hulu, etc. They all failed to match the success of Netflix.
Netflix has also seen its profits rise as it has become one of the most popular forms of streaming television.
Marketing Mix Of Netflix
Marketing Mix Of Netflix is brand-based. In Marketing Mix Of Netflix, We will Learn About the four key elements of Marketing Mix: products, place, price, and Promotions. By paying attention to the following four components of the marketing mix, a business can maximize its chances of a product being recognized and bought by customers. We will be discussing Netflix Marketing Mix. Below is the detailed Marketing Mix Of Netflix.
Let’s talk about Netflix Marketing Mix.
Netflix Main Competitors
- HBO Max
- Amazon Prime Video
- Sling TV
- Curiosity Stream
- YouTube TV
Netflix official website: www.netflix.com
Product in the Netflix Marketing Mix:
Netflix was founded in 1999 and has been a success story thanks to its unique selling proposition. Netflix customers can access thousands of TV shows and movies that are constantly updated to satisfy their needs.
Netflix also offers mail-in DVDs, which gives them an advantage over their competitors, especially during 1999-2007. This was a time when they were highly successful.
Three subscriptions are available: online streaming only, DVDs without streaming online, and DVD plus online streaming.
Every subscription model has its own set of features.
Netflix can be classified as a tangible, intangible product, and honest service. The actual part is due to mail-in DVDs that can be touched and seen, while the metaphysical portion is because Netflix’s online streaming cannot be reached. This product can be accessed on Xbox, PlayStation, and Wii. The app works with Android and Apple IOS, making it available to anyone with a smartphone.
Promotions in the Netflix Marketing Mix:
Promotion is the key component of the marketing mix for a brand. As part of its promotion strategy, Netflix has promoted its services in many ways.
First, their primary source of promotion is via social media sites like YouTube, which attracts teenagers and a variety of adults. They also started using personal marketing videos to promote the service while advertising on media websites.
They are already well-known brands, so there is little need for intense advertising. Therefore, they have stopped using banners and other static ads on their websites. They have used high-ranking celebrities in marketing videos to promote their products over the years to increase sales and profits.
They have used their online marketing to draw customers.
Over the years, Netflix has created different ads corresponding to different seasons or events. This helped them to increase sales and their audience during the most popular years. In 2013, Netflix released a winter advertisement to promote their service. It highlighted the variety of Netflix’s family shows and showed how they could be accessed at all times.
Price in the Marketing Mix Of Netflix:
Netflix follows a Value-based pricing strategy. The value-based pricing differs because it offers three different subscription options with different values attached to the prices. This subscription-based model gives the brand an advantage over competitors who charge per show/movie.
Higher-priced subscriptions have more features than lower-priced ones. This strategy helps the brand earn more profit as it lures customers to higher-priced subscriptions that offer many attractive features. The brand’s slogan is “Choose a Plan That’s Right For You.”
Netflix India offers three plans:
- A basic plan that costs 500 per month.
- A standard technique that costs Rs 650 per month.
- A premium plan that costs Rs 800 per month.
The Basic plan. e. the Rs500 plan offers one screen. This means that only one person can view movies or shows simultaneously, have the flexibility to watch on any device (phone, tablet, or laptop), and have access to all films and shows.
Netflix Standard plan, or the Rs 650 plan, offers the same services and features as the Rs 500 plan but with two extra features: two screens and HD videos.
The most expensive plan, Rs 800 Netflix, comes with four screens. This means that four people can stream simultaneously on multiple locations. One friend may have a Netflix account worth Rs 800. They can split it, which reduces the per-head cost to Rs 200.
Place in the Netflix Marketing Mix:
Netflix offers both tangible and intangible products. Intangible, as in the subscription-based model. Actual as in the DVD service. The brand is the only one offering a subscription-based model in India.
Netflix offers a mail-in DVD service. This allows customers to order DVDs directly by using a direct distribution channel. The DVD is sent directly from the producer, i.e., Netflix, to the customer.
Online streaming service works on multichannel distribution when a business has more than two channels to reach customers (“Multi-Channel/Hybrid Distribution Systems.”). Multichannel distribution was a key feature of Netflix’s service. It became available on multiple platforms, including PlayStation, Xbox, and Nintendo Wii, distributed by Netflix.
Netflix is a hybrid channel, meaning the product or service is not distributed directly. It is obtained from production companies. Netflix then gets permission to use the films from these companies. This film is then distributed to consumers.
This is the Marketing Mix Of Netflix. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.