Netflix Marketing 1

NETFLIX MARKETING

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Netflix Marketing

Netflix is a world leader in instant television and movie streaming services worldwide.

The company was established in 1997 as a DVD rental service provider but gradually migrated

its services to the online platform. While most businesses use the term streamlining operations to

increase efficiency and quality production, Netflix adopted the term streaming to make content

readily available to its client base. The business promised its clients to make movie viewership

an enjoyable experience by making it easy to access a wide variety of content. Netflix brands

itself as a streaming service provider, offering T.V. and movie viewers an unrivaled experience

across multiple platforms.

Brand Identity

The Positioning Model

Companies must establish themselves based on the products and services offered to their

clients. According to Nandan (2005), the term brand identity reflects a company-originated

profile that involves a firm producing products with unique features. Netflix differentiates itself

in the market by providing a platform where customers can view their preferred television

programs and movies. The company identifies itself as a unique story-telling arena that lets its

customers develop a bond and recall the Netflix brand experience.

Branding tells a story about the relationship between company products and client

relationship. Under the positioning model, a company tells its story through positioning,

personality, aspirations, client benefits, and emotional connection (DeLane, 2020; First Round

Capital, 2015). Netflix prides itself as a company providing clients with hundreds of thousands

of product choices to explore and experience. Clients benefit through value-added content that

are advertisement-free. First Round Capital (2015) asserts, “All human aspirations are
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opportunities for brands to build relationships” (para. 6). Furthermore, Netflix perceives all

humans as potential clients. Therefore, the firm develops and hosts a range of products suitable

for individuals of all ages. Children can enjoy cartoons and other associated programs suitable

for general family viewing. Older generation individuals can also benefit from content befitting

their age categories. Therefore, Netflix uses branding to establish and maintain a strong

relationship with its clients.

The Branding Pyramid

Product attributes help clients to develop an attachment to the company. First Round

Capital (2015) asserts that Netflix’s product attribute involves allowing its customers to escape

from reality. The stresses that people experience daily require a mechanism of overcoming them.

At other times, people require entertainment to forget challenges and other issues in life. As a

result, Netflix’s product attribute helps its customers to escape reality for the duration they use

them.

Furthermore, products should benefit clients for them to be viable in the market. Netflix’s

merchandise range offers satisfaction and delight to clients of various ages (DeLane, 2020). The

television programs and movies on offer on the Netflix platform are suitable for all ages.

Children find satisfaction through the cartoon and other children-age related programming.

Likewise, teenagers and young adults have appropriate entertainment programs appealing to their

taste. Older adults also find a range of educational and entertainment products that meet their

taste. Hence, Netflix’s products benefit clients of all ages.

Emotional benefits are another vital aspect needed in branding a product. Netflix prides

itself as a company offering many products that are easy to access using multiple platforms (First

Round Capital, 2015). Netflix can be accessed by most Internet-connected devices, making it one
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of the most convenient services. The platform also offers a wide selection of programs and

movies for a monthly fee. Customers find value in the high definition (H.D.) programming

inherent in the platform. Therefore, Netflix’s products offer clients strong emotional benefits.

Netflix offers customers bigger benefits. Netflix streams television shows and has old and

new movie programs released on its channels (First Round Capital, 2015). Moreover, the

company has been investing heavily in acquiring and developing original content, edifying the

product offered to customers. Thus, customers continue to benefit from the many offers received

from Netflix.

Brand Image

The Brand image focuses on customer perception of a company or its brands. Nandan

(2005) defines brand image as a consumer perception that focuses on the benefits that clients

acquire from the products and services. Netflix enjoys a positive brand image because its clients

benefit through personal experiences. The exceptional teamwork between the production and the

marketing team is evident in Netflix’s unique brand. Clients have a positive experience because

they easily locate the right content through various search engines. Netflix’s brand retains an

appealing image because of close collaboration among team members.

The Brand image also captures the emotional connection that the client establishes with

the company products. Brakus, Schmitt, and Zarantonello (2009) argue that a positive brand

image involves building sensory, intellectual, and affective experiences for clients. It also helps

transform behavior, brand involvement, passion, and consumer delight (Brakus, Schmitt and

Zarantonello, 2009). As a result, Netflix understands the complexity of building an appropriate

brand because it creates services that capture each of the previously mentioned factors,

enhancing the client experience. Mainly, Netflix invests more in its product development and
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marketing to improve clients’ relationships with the company products. Clients aspire to become

heroes as they see in Netflix’s programming. Some build a personality and a strong emotional

connection with various programs on the Netflix platform. Netflix succeeds in capturing and

sustaining an emotional connection with its clients, improving its brand image.

Key Brand Elements

Netflix’s unique brand element involves creating hard-to-copy technologies that make

them stand out above the rest. Bastos and Levy (2012) highlight the company’s sign and symbol

unique to the firm. The company logo stands out above the rest, partly because it has invested a

considerable amount of time marketing it across multiple platforms. The company also invests

time on social media to interact with its customers and build relations with potential clients.

Netflix is responsive to client inquiries and quickly points out misleading statements to protect

its clients.

Consumer experience is central to Netflix’s business model. Cronin and Cocker (2019)

contend that connecting the product and consumer feelings improve client experience. Netflix is

getting smarter in its business strategies because its products can be accessed across multiple

devices. The company has a dedicated testing page for non-members, whose purpose is to

convert potential clients into customers. The page is always active, creating a sustainable

business model that encourages non-members to become customers.

Brand Values

Netflix takes an active role in adding value to its customers. Clients can stream an

unlimited number of television shows and movies (DeLane, 2020). Customers can access Netflix

services from any part of the world if they have established firm roots. Clients are no longer

restricted by strict and rigid television programming. Instead, they can choose the time and place
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to view different content. They can pause, rewind, forward, and watch the same program

repeatedly at their will. Schau, Muniz, and Arnould (2009) argue that companies create value

through abilities, skills, emotional commitment, and culture. Netflix’s simple search function

across multiple platforms makes its products readily accessible to all subscribers. Alexander

(2009) believes that a company’s brands require modifying their objectives to create an

existential strategy for the future. Netflix’s adoption of a multi-platform approach helped the

firm improve its outlook. Moreover, the company is shifting its focus from merely streaming

content to making novel content for its customers. Netflix actively seeks value addition to

safeguard its client interests.

Brand Environment and Competitor Analysis

Brand Environment

Netflix thrives in a moderately competitive environment. Puzakova, Kwak, and Rocereto

(2009) defines anthropomorphization as a market communication strategy that motivates

consumers to view products within the confines of human terms. Netflix’s products are strongly

associated with human experience, increasing clients’ connection with the product. However,

most of the competitors focus more on music streaming, reducing competition significantly. In

contrast, Netflix is exclusively concerned with movies and television shows, etching a unique

edge over potential rivals. Whelan (2006) believes that enhancing brand communication

improves the client’s ‘lived’ experience. Families and individuals with internet access can enjoy

these programs uninterruptedly.

Closest Competition
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Figure 1: On-Demand Video Service Subscriptions in the United States

Netflix has two major competitors in the streaming business. The company’s closest

competitor in movie and television show streaming services is Amazon Prime, followed by Hulu

(Team Pay, 2019). Nevertheless, Netflix remains atop the rest of the streaming companies.

Brand Communities

Companies establish communities to market their products and increase relationships

with consumers. Brown (2004) argues that brand communities are instrumental in persuading

customers to continue purchasing their products. However, an inclusion criterion motivates

clients to subscribe to services, while social networking makes the product more appealing and

welcoming to consumer input (Muniz and O’Guinn, 2001). Netflix uses the social media

platform to improve the general impression of its products. The tools also help in understanding

clients better through product customization. According to Schau, Muniz, and Arnould (2009),
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increased community engagement improves a company’s understanding of its clients. Cova and

Pace (2006) also believe that community engagement is a precursor for consumer empowerment.

Therefore, Netflix’s social networking system improves its connection with various client bases.

Product Differentiation

Product differentiation is crucial for a firm focused on expanding and growing its reach.

Farhana (2012) premises that companies must differentiate or risk dying. Initially, Netflix was an

exclusively DVD rental services provider. However, the firm later differentiated its products by

offering streaming services, which helped it establish a stable market position. Greyser (2009)

adds that differentiation improves brand reputation, authenticity, and trustworthiness. The

availability of H.D. quality T.V. shows and movies through DVD and streaming services

improves Netflix’s market position.

Brand Resistance/ Netflix Crisis in Business Model

Netflix experienced a brand crisis in 2011. The company faced many problems caused by

the global recession. Most of the customers had lost jobs, making it hard to continue with their

Netflix subscription. According to Johar, Birk, and Einwiller (2010), Netflix lost over 800,000

customers almost overnight. As a result, the share price also dropped by 80% of its previous

value, bringing it to the brink of extinction (Johar, Birk and Einwiller, 2010). However, the

company reevaluated its options and found it suitable to continue investing in its streaming

services. Specifically, Netflix differentiated its services by making its product available on

multiple platforms. Customers can view Netflix through smartphones, smart T.V., web browsers,

gaming platforms, and other smart devices with internet connections. The differentiation

guaranteed the survival of the company in the future. Moreover, the company expanded its client

coverage to over 130 countries globally. Netflix invests in content development and in research
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and development to keep improving its business stance. Netflix’s crisis helped the company

adopt a product and service differentiation strategy to survive the market.

Emotional Capitalism

Emotional capital is also essential because clients need to develop a stronger bond with

the brand. Ritzer and Ryan (2002) define capitalism as a strategy that mandates a company to

continue expanding or risk dying. Netflix expands its content by developing products for all

ages. Bonsu, Darmody, and Parmentier (2010) explain that television programs must arrest

consumer emotions. Therefore, Netflix’s investment in emotional capital yields positive results

through increased subscription.

Conclusion and Personal Reflection on Netflix Experience

Netflix develops its brand through appropriate positioning. I have used the product for a

while, and it has a diverse range of programs and movies. Thus far, Netflix has not been

implicated in any major issue. Schmitt (1999) posits that sensory, affective, creative cognitive,

and behavioral aspects improve consumer engagement. I have had a positive relationship with

the brand. Its monogamy in the market has played a significant role in my preference because

potential rivals offer a limited range of products to clients.

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