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Netflix’s Branding and Positioning Strategy Research Paper

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Updated: Jul 21st, 2021

Founded in 1997, Netflix Company has grown and is currently well placed in the movie rental industry of America. Despite its outstanding performance and quick recovery from the global financial crisis of 2010, the company is currently facing the dilemma of a sustainable positioning strategy due to the current hostile business environment.

The threat of competition, non deliveries on Saturdays and the 28-days delay before delivery of new films has put the company in a fix (Cholewa et al. 305). Thus, this reflective treatise attempts to develop a product branding strategy and market segmentation for Netflix in order to remain competitive in the sensitive film industry of America.

Product development

In order to remain afloat, Netflix Company should offer the Kiosk model as part of its product brands in order to retain its customers that would be affected by the 28-days delay period before delivery of new films. Reflectively, the kiosk model will facilitate timely distribution of the films to clients and increase the returns since the aspect of convenience will not be compromised.

Besides, unlike its competitors, the company has better distribution network that might facilitate implementation of the kiosk model. Through the kiosk model, the company will offer films to its customers in convenience stores across its distribution channel. The kiosk model will counter the non deliveries on Saturdays since clients will be in a position to directly purchase from its virtual kiosks.

Consumer segmentation

The kiosk model targets home user consumers who form the majority of the Netflix market catchment. Since this target group frequent movie store, Netflix will be in a position to conveniently direct the customers to their designated delivery points and stores without having to directly deliver.

The company should merge the strategy with advertisements since this group of consumers has access to social media. Due to exposure to information sources such as new papers, television, radio, and magazines, product announcement through these avenues will come in handy.

Decision on the best product relies on information feedback after multiple exposures to different competing products. As forecasted in the market research, this strategy will be successful towards dominance as it offers a variety of options to consumers, while at the same time, maximizing benefits of economies of scale to the company.

Marketing Mix

The marketing mix is a selling model which is made up of four elements. These elements include price, product, promotion, and distribution. Reflectively, the penetration strategy should have minimal disturbances to the market and the company. Therefore, it is important to establish means and ways of reaching the potential market consisting of young and sensitive clients.

To achieve this, the company should segment and differentiate its ‘young adults market’ along consumer-based market segmentation procedures. The physical distribution patterns are with no doubt a critical area of focus, especially in this segment that is spread across the US market.

On the pricing mix, the US has a high purchasing power. Therefore, the kiosk model should use skim pricing strategy since demand for this company’s product is relatively inelastic. Concerning the place, the kiosk model should use the local media channels to keep in touch with the target segment.

Apart from the TV channels, the company should use the parent company’s channels to reach out to the market segment. Moreover, the company may enter into strategic partnership with other companies to advertise its products. On product, the kiosk model should be made flexible to satisfy the needs of different customers.

Work Cited

Cholewa, Vincent, Dreager Lori, Grilliot Greg, Lee Sze, Wallace Drew, and Wright Sean. Case 20: Netflix. Arizona: Arizona State University, 2011. Print.

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