MIND MAP OF CORE VALUES OF NETFLIX

VALUE ANCHORING (Brand manager perspective)

After a few failures with initial business strategy, Netflix launched flat subscription fees for unlimited
rentals with no late fees or due dates in the early 2000s. Three DVDs could be checked out
simultaneously by each client, and once any DVD was returned, the list would be replenished with
further titles. The Netflix customer experience during its early days is shown in the figure below.

Netflix was careful to compete on four other aspects of the user experience, including requirement,
price, quality, and convenience, even if it did not have a strong brand name. Netflix started providing
a wide range of high-caliber films in many genres. Renting and returning DVDs from Netflix was
made simple for the clients since the DVDs were delivered right to their front doors. They ensured
that consumers' monthly movie rental costs stayed constant and that they weren't fined for late
returns, outperforming Blockbuster on the basis of pricing. Customers of Blockbuster began
switching to Netflix out of frustration since there was now a substitute that might provide a better
customer experience.

As Netflix gained more consumers, it enhanced the customer experience with brand consideration
(i.e. customers could now trust Netflix with their credit cards and their information). But Netflix
quickly came to the realisation that its customers were still experiencing an availability gap. Some
savvy clients made the most of their three DVDs by keeping two of them in transit (one going abroad
and one coming in), and one of them constantly accessible for viewing. But not all consumers are
savvy, thus many of them found themselves with three DVDs at once and none for the next three to
five days. This issue with availability may have damaged Netflix, but they fixed it by charging a few
extra dollars a month for internet viewing.

With regard to six factors—requirements, price, availability, convenience, quality, and brand—
Netflix now provided an excellent consumer experience. Additionally, they provided good customer
service, which improved the user experience. This calibre of customer service transformed the rental
industry, and Netflix expanded to dominate the space. In addition, Blockbuster began to lose
consumers, suffered financially, and had trouble providing the ideal customer experience.

It's challenging to offer a good customer experience across six variables and a strong customer
experience over a seventh element. When Netflix noticed the cost burden of providing this client
experience in the middle of 2011, they came to this realisation. They attempted to reimagine the
consumer experience because its primary rival was no longer in operation. They planned to divide its
online and DVD by mail companies into two independent firms and raised costs by almost 60%.
Customers would have to make two separate logins (one with Netflix and the other with DVD by mail
company Quickster) and maintain two separate accounts. Due to customer backlash, they
abandoned their plans; but, had they carried them out, the graph of customer experience would
have resembled the one shown below.
Netflix is providing a poor customer experience by raising the price since users are now required to
spend more than they have been for years. However, if they had split up the DVD and internet
offerings, the availability issue would have returned. Not all films and television programmes are
accessible online, thus regulating the flow of DVDs calls for clever management. It would have been
extremely cumbersome for the clients to have two separate accounts with two distinct businesses
and for no customer data to be shared between the two. Another inconvenience barrier is the
difficulty of using parental controls and the inability to aggregate or display a list of recently viewed
movies.

Despite abandoning its original aim to split the company, many consumers are now limited to only
one service due to price increases. Due to this coerced decision, Netflix is providing the user
experience seen in the image above. It excels in three areas (Requirements, Brand, and Quality) and
performs passably in two others (Service/Support and Convenience). However, Blockbuster's demise
taught us that focusing on just three elements is insufficient. Customers must either wait for Netflix
to perform better over a wider range of variables or for a disruptive competitor to enter the video
rental industry.

VALUE ANCHORING (customer perspective)

According to Netflix, the movie-going experience has undergone a complete change thanks to their
platform. Netflix is incomparable to other online streaming services like Amazon Prime Video and
Hulu due to four main factors: Customer involvement, content generation, delivery, and marketing.

1. An excellent comprehension of their users

Netflix's target market is well identified. They mostly target the 18–50 age range with their material.
Additionally, a sophisticated algorithm helps them comprehend their consumers and offer
individualised support. Users remain devoted to the site because of this personalisation.

2. Superior and unique content

Netflix's excellent programming and original programmes are among the key factors in its loyal
following. Netflix's content made up more than 25% of a list of the best TV programmes compiled by
Thrillist.

3. minimalist style

Not only does Netflix have great programming, but they also have great customer service. Netflix
makes it easy for customers to quickly navigate through with its clear, legible, and modern style.
Additionally, it promotes the content and presents brief trailers, both of which help to sell the piece.

Gaining that substantial brand equity is a very different matter. In order to shed some light on
Netflix's rapid expansion, let's take a look at Twitter, the brand that came in second on the list.
Twitter's brand equity increased by 66%, or approximately half as much as Netflix.
The fundamental reason for such a significant rise in brand equity is the content's distinctive quality.
This works in conjunction with its distinctive algorithm, which offers consumers a fully customised
experience. The distinctive brand voice of Netflix is another important factor in its success. The
Netflix PR staff keeps in touch with their audience well. In order to interact with their clients on all
social media platforms, they create clever polls.

Wherever it is shown, Netflix's bold red logo grabs users' attention. Their logo is straightforward but
effective. The simplest brand, as determined by the Global Brand Simplicity Index, is Netflix. Netflix
thinks that a good user experience starts with simplicity. They have thereby made the user journey
across the site simpler through consistent efforts.

Their stock performance grew and beat various indexes, including the S&P, by preserving their
straightforward brand identity. Additionally, Netflix increased its subscriber base dramatically by
presenting itself as a transparent brand free of misinformation campaigns or privacy invasions.

Additionally, Netflix uses a cutting-edge stack technique. There are countless films and television
programmes in the stack. It is easy, adaptable, and limitless. When used collectively, it enables users
to navigate the site with ease.