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Presented By: Group 6 ULLASA KUMAR JHA (11057) PRASAD KRISHNA (11099) UTPAL NISHAT(11117) MANU NEELAKANDAN(11149) SOUMYA

SIDDHARTHA ROUT(111 VASANTH RAJ (11178)

INTRODUCTION
Netflix offers an entertainment subscription service to consumers

No late fees or due dates Established in 1997

It started its subscription-based digital distribution service in 1999


Netflix allows movies and TV shows streamed instantly over the internet and allows the viewers to watch on mobile phones, desktop, tablets, PS3, XBOX

Business model

Based on monthly subscription model $7.99 per month for unlimited streaming and $7.99 for one DVD at a time Flat-fee unlimited rentals without due dates, late fees, shipping or handling fees, or per title rental fees Personalized video-recommendation system Watch Now on-demand service: similar to the TV network

Marketing Mix
Product: Movies & TV shows online streaming as well as home delivery of DVDs Price: $7.99 per month for one-DVD-at-a-time $7.99 per month for unlimited streaming Promotion: Netflix coupon for trial period Promotes through portals such as Yahoo, AOL,MSN Ads via Google and pop ups Place: United States, Europe, Latin America DVD by mail in US only Online streamed to computer, tablet, smart phone, TV, XBOX, PS3.

5 S OF INTERNET MARKETING

SELL Netflix consumers sign up for a subscription on the companys website Watch TV shows & movies anytime, anywhere. For one low monthly price SERVE Connect PC or Mac to TV using an HDMI cable, select your desired TV episode or movie on the computer and watch instantly on TV. Instantly watch on the PC or Mac by logging on to netflix account and selecting a TV episode or movie. Movie Recommendations for person to person Social community and blogs for customer in which customer can feedback and share own view about the movie. No commitments, cancel online anytime

CONTD

SPEAK Members can rate the movies and TV shows theyve watched through their TV or on the Netflix website Netflix takes these ratings and pairs them with billions of other ratings by other Netflix members to accurately predict movies and TV shows members will enjoy SIZZLE streaming-video industry Movie reviews and ratings Competitions

SAVE Warehouse in each part of USA. First-class mail takes only one day to be delivered within a 50-mile radius, so the warehouse network allows Netflix to service over 97 percent of its customer base within a two-day window. Netflix gets the lowest possible postal rates for first-class mail delivery.

MICRO ENVIRONMENT

Suppliers Six Major studios constitute 50% of the titles Commercial and Independent titles Customers Needy and Convenience Competition Diverse competition ranging from brick and mortar to VOD High Exit Barriers Effect of Substitutes- Moderate

MACRO ENVIRONMENT
Social Factors Perceived Benefits Trust Security Cost Legal and Ethical Factors Privacy- Contact Info, Profile Info Anti-Spam Legislation Economic Factors 1. Political Factors 2. Technological Factors

MACRO ENVIRONMENT
Technological Factors Netflixs business model depends on the internet 25% of the Internet traffic in US Increased Customisation First in the industry to offer streaming video Political Factors

6 Is
Interactivity Push, Pull Intelligence Profile customers characteristics Individualization n->1; Tailoring Integration CRM

Industry restructuring disintermediation and re-intermediation


Independence of location

Internet Approach
Started in 2007

Matured Technology
Saves cost and time & Geographic advantage Online movie rentals TV shows on demand VOD, la carte Integration over various platforms Computer, TV, Setup boxes, Consoles, Smartphone, Tablets

Internet Marketing Strategy


Decision 1 Market and Product Development Strategies Decision 2 Business and Revenue Model Strategies Decision 3 Target Marketing Strategies Decision 4 Positioning and Differentiating Strategies Decision 5 Multi Channel Distribution Strategies Decision 6 Multi Channel Communication Strategies Decision 7 Online Communications Mix and Budget Strategies Decision 8 Organizational Capability and Structure Strategies

CRM AND THE INTERNET APPROACH


Cinematch redefines personalization through collaborative filtering Low Churn rate Walmart concedes defeat Accept customer requests (family and friends) Serve your profitable customers better Seven times number one according to Foresee; a rating agency Blockbuster stocks blockbusters;Netflix focus on the Long Tail

BRANDING REDEFINED
Advertising creates awareness but brands are built by customer experience 94% recommend 71% asked by friends to sign up Crowd sourcing

THANK YOU