Customer Segmentation Netflix

Netflix is in a fairly favorable position on the strategic group map. Where Added value is measured in terms of instant movies and recommendations, and market coverage is measured in number of stores, vending machines, and online presence.

Netflix was founded in 1997 with the intent to revolutionize the way in which consumers watch movies and television shows. Their accomplishments both in innovation and in customer base for their service indicate that the firm has been, and continues to be, successful in doing so. Currently, the

Netflix followed a very well structured International strategy by planning their mission statement which is mainly directed to end users. “For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.”

Netflix, Inc. is a U.S. based leading company that operates as an online movie rental subscription service provider who went public in 2002. Netflix initially started off as a DVD rental service through mail only, then later initiated streaming around 2007 in the U.S., and internationally around 2010. Netflix subscribers can instantaneously watch a series of movies and a variety of TV shows streamed from their website online to users TVs, and other devices. Netflix operates its business through domestic DVD, domestic streaming, and international streaming. Netflix subscribers typically pay $7.99 once per month for unlimited use of the website features. Netflix obtains their streaming’s from Amazon Web Services and other communication delivery networks for their streamed content and direct purchases from a nationwide network of U.S. shipping centers. Netflix Inc., headquarter is at Los Gatos, California. Two entrepreneurs Reed Hastings and Marc Randolph founded Netflix on August

Brand name – Netflix is priced higher than other competitors, meaning the consumer is probably associated with middle and upper class based on wealth and can increase social status.

Watching Netflix is my way of relaxing and helps place my mind somewhere else for a while. First, action shows like Criminal Minds, The Defenders, and Hawaii Five-0 clicks with the adventurous part of my personality. For example, I'm always wanting to do something, even if it's just cleaning up, cooking, or going somewhere. Second, comedy shows like The Office, Atypical, and New Girl clicks with the humorous part of my personality, although not everyone thinks so! Last, drama shows like Grey's Anatomy, Vampire Diaries, and Riverdale clicks with the more optimistic part of my personality. Mainly because while I'm watching TV I always hope that something positive comes out of any situation. Netflix is a part of my personality because it shapes parts of who I am as a

into different groups according to their demographics, cultural values, or beliefs. In general, most segmenting characteristics are behavioral and cognitive (Schiffman & Wisenblit, 2014). Behavioral factors are data based such as age, gender, and purchasing habits (Schiffman & Wisenblit, 2014). Cognitive factors are opinionated characteristics such as attitudes and values (Schiffman & Wisenblit, 2014). Segmenting a market can be a difficult process because some of the characteristic used are abstract and lay in the minds of the consumers.

Entering and transforming the video rental industry was a large undertaking for the start-up company. The first marketing objective the company undertook was the process of building a brand. Netflix’s identity was crucial to future growth and success. Without a strong brand, competitors with deep pockets could have easily duplicated the company’s business model. Secondly, leveraging technology was critical to establishing the business and infrastructure growth. The consumer base was the final objective Netflix sought to achieve. Retaining and growing subscribers were fundamental to revenue and marketing goals.

In the qualitative analysis it is discovered that Netflix’s Culture, History, and Strategy are attributes that allow Netflix to differentiate itself from its competitors and gain a competitive advantage. Another Qualitative aspect is Netflix’s presence in terms of

Netflix is an online video rental provider in United States. The company provides a large amount of DVDs for customers to choose. Customers can reach film and TV content by PC, TV, iPad and iPhone. Netflix has a service of recommendation. Customers of Netflix can rate the content by 1 point to 5 points. Netflix would storage these rating. Then use the rating to analyze customer`s taste and preference to do recommendation. Now, Netflix also start content creation. For

Using the AIM planning structure Netflix would have to analyze their audience. They can do this by asking a list of questions about the stakeholders. Cardon (2013) suggest the following questions that could be used such as “How much do they know about the company?” or “What is their view of your brand value?” (p. 232). The company needs to better understand the audience and stakeholders needs.

Netflix is known to be the world’s largest Internet television provider but their TV shows

To understand the customer gap like, what the customers expect from the company on various parameters.

Because users of the above websites and social media outlets overlap heavily with Netflix’s target demographic, the coverage of their selected audience will be stronger than most other forms of communication (and e-mails and letters to their

Approach – A detailed analysis was carried out to consider how the organisation has adopted a customer-oriented approach as their key strategy for improved business. This includes factors like increased loyalty of the customers,