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Over the past few years, the hashtag “Netflix and chill” has taken over everyone’s social media life. Something that first started just as a trend soon became a part of our lives. Netflix is a streaming platform, that works on a subscription basis. and has a subscriber base of more than 60 million worldwide. Since its inception in 1999, Netflix has been growing exponentially and climbing the ladder of success over the years.
Let us try and understand the marketing mix of Netflix:
PRODUCT:
Netflix has established itself as a successful service provider with creative sales offers. Netflix customers have access to thousands of movies and TV shows, updated daily to meet their needs. Netflix also offers DVD mail orders, which gives it a huge advantage over its competitors. Especially between 1999 and 2007, what started as a creative idea to mail-order DVDs to customers was a huge success. You can choose from three subscription types. Online streaming only, DVD without online streaming, DVD in addition to online streaming introduced in 2012. Each subscription model has different features such as different levels of HD quality, and the number of screens on which content can be viewed at the same time.
Netflix can be divided into tangible and intangible products. It is a tangible service due to mail DVDs that can be physically touched and viewed, as well as an intangible service because it is online streaming. This product is also available for Xbox, PlayStation, and Wii. The app is compatible with both Android and Apple IOS, so anyone with a smartphone can access it.
PRICE:
Netflix follows a Value-based pricing strategy. Value-based pricing is different in the way that it provides three different subscription offers with different values attached to different prices. This subscription-based model gives the brand an edge over competitors who charge per show/movie. The higher-priced subscription is open to more features as compared to the subsequent lower-priced one, a strategy that helps the brand to earn more profits as it lures the customers to join higher-paid subscriptions with various appealing features. “Choose the Plan That’s Right for You” is something that the brand taglines with its pricing options.
In India, Netflix offers three different plans. The basic plan is 199 rupees per month standard plan for INR 499 per month and finally, the premium plan requires subscribers to pay up to 649 rupees. In the basic plan, the brand provides only one screen. This means only one person can watch a movie or show at a time, and that means the flexibility to view it on any device, be it a laptop, TV, phone, or tablet. , to access any movie or program. The standard or Rs 499 plan of Netflix offers the same service with two additional features: dual-screen and HD video. The most expensive Netflix i.e.Rs the 649 plan includes 4 screens, allowing 4 people to stream from multiple locations at the same time. For example, a friend has a Netflix account for 649 rupees, and you can split that amount down to 200 rupees per person and enjoy.
PLACE:
Netflix offers both tangible and intangible products. It is tangible, as in the case of DVD services, and intangible, as in the subscription-based model. In India, the brand offers a single subscription model. Netflix’s Mailing DVD service, which mails DVDs directly to the customer’s home, is provided through a direct distribution channel, so the product is supplied directly from the manufacturer, that is, Netflix, to the buyer. The Live Streaming Service operates on multi-channel distributions in which an enterprise has two or more channels to communicate with its customers (“Multi-Channel/Hybrid Distribution Systems”).
The service became available on multiple platforms such as the PlayStation in 2008, the Xbox in 2009, and the Nintendo Wii in 2010, resulting in a multi-channel distribution of Netflix. Netflix uses a hybrid channel of distribution. It means that the brand obtains a license for the movie or series to be streamed, from the producer and then distributes it.
PROMOTIONS:
Promotion is the most important part of your brand’s marketing mix. As part of its promotional strategy, Netflix continues to promote and advertise its services in a variety of ways. First, the main sources of promotion are social networking websites, including YouTube, which attract teenagers and many adults. However, in 2006, while maintaining advertisements on media sites, it switched to personal marketing videos to be creatively involved in promoting the service. Already a world-famous brand, excessive advertising is rarely needed, so now they are obsessed with pop-ups, banners, billboards, and other static advertisements on websites.
In the past few years, celebrities who have been highly regarded in marketing videos to promote their products have appeared in the videos, increasing sales and profits. In general, to attract customers through online advertisements, they refer to the free trial version continuously for one month to induce and introduce customers to the one-time trial version. Netflix has produced a variety of ads over the years to cater to different seasons or events, ultimately helping to increase sales and viewers during the most popular times of the year. In 2013, Netflix created a winter ad to promote its service, demonstrating that Netflix has a variety of genres for holiday family shows.
