FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

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INTERNATIONAL MARKETING: REPORT

MIDTERM ASSIGNMENT

Student: Vũ Thiên Ân - 2112253013

Trần Anh Thy – 2112253079
Nguyễn Thị Mỹ An - 2112253003
Phạm Huỳnh Quốc Thịnh - 2112253062
Lữ Phương Quyên - 2112253072
Class : K60CLC1
Group: 17
Subject: International Marketing
Instructor: Ms. Nguyễn Thị Thu Thảo

Ho Chi Minh City, 11/2022

Table of contents
1. Executive summary .................................................................................................. 1
2. Introduction of company .......................................................................................... 1
2.1 Background information ..................................................................................... 1
2.2 Company overview ............................................................................................. 2
3. International marketing selection ............................................................................. 2
3.1 Defining the criteria and developing segments .................................................. 2
3.1.1 Choose model .............................................................................................. 2
3.1.2 Market selection criteria and why ................................................................ 2
3.2 Screening ............................................................................................................ 3
3.2.1 Preliminary screening .................................................................................. 3
3.2.2 Fine-grained screening ................................................................................. 9
4. Market entry mode ................................................................................................. 12
4.1 Mode of entry applied....................................................................................... 12
4.1.1 Internal factors ........................................................................................... 12
4.1.2 External factors .......................................................................................... 12
4.1.3 Entry mode ................................................................................................. 12
4.2 Pros and cons of entry mode ............................................................................ 12
4.2.1 Pros ............................................................................................................ 12
4.2.2 Cons ........................................................................................................... 13
4.2.3 Ways to optimize mode of entry ................................................................ 13
5. International marketing tactics ............................................................................... 14
5.1 Market segmentation ........................................................................................ 14
5.2 Targeting ........................................................................................................... 15
5.3 Positioning ........................................................................................................ 15
6. International marketing strategies (Marketing Mix 4P) ......................................... 15
6.1 Product Strategy Analysis ................................................................................ 15
6.2 Place Strategy Analysis .................................................................................... 16
6.3 Price Strategy .................................................................................................... 16
6.4 Promotion Strategy ........................................................................................... 17
7. Conclusion.............................................................................................................. 17
8. Reference ................................................................................................................ 18
9. Nguyễn Trọng Hiếu – “Con đường tôi” campaign ................................................ 19
9.1 Background ....................................................................................................... 19
9.2 Objectives ......................................................................................................... 20
9.3 Insight ............................................................................................................... 20
9.4 Creative Idea ..................................................................................................... 21
9.5 Action plan ....................................................................................................... 21
9.6 Preparation ........................................................................................................ 21
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1. Executive summary
The purpose of our report is to analyze the globalization process of Netflix in the markets
of Brazil and Korea. We firstly examined Netflix’s market trend and decided the region to
expand its operation. Then, we made use of BERI as a preliminary screening model to
select the two most potential markets, and MACS as a fine-grained screening model to
decide which market should be prioritized. Despite the company's significant role in Latin
America, we found that Netflix is currently attempting to dominate the Asian market with
a great surge of demand. Based on our evaluation, we recommend an appropriate entry
mode for these markets which is the joint venture, along with pros and cons assessment.
To achieve success in Brazil and Korea, our group reviewed Netflix’s marketing
strategies in terms of Segmentation - Targeting - Positioning, and the marketing tactics
based on the 4P model. Ultimately, we came up with some recommendations and the
conclusion for Netflix in Brazil and Korea markets for internationalization.
2. Introduction of company
2.1 Background information
Netflix was created in 1997 in Scotts Valley, California by Marc Randolph and Reed
Hastings. The two had previously worked together at a company called Pure Software.
Randolph was co-founder of MicroWarehouse, a computer mail order company, and later
worked as vice president of marketing at Borland International. Hastings founded Pure
Software, which he had recently sold for $700 million, and he invested $2.5 million in
Netflix for start-up cash. Hastings thought of the idea for Netflix when he forgot to return
a movie by its due date and ended up having to pay $40 in late fees. The website
launched on April 14, 1998 with a more traditional pay-per-rental method. Netflix
introduced the monthly subscription method in September 1998. Since then, Netflix has
built its reputation for flat-fee unlimited rentals without complications such as due dates,
late fees, or shipping and handling fees.

By 2005, Netflix had 35,000 different film titles available, and shipped out 1 million
DVDs per day. In February 2007, the company delivered its one billionth DVD, but still
began to move away from its original core business model of mailing DVDs and
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introduced video-on-demand via the Internet, live streaming. Netflix has even licensed
and distributed independent films through a division called Red Envelope Entertainment.

2.2 Company overview

Netflix is an online media streaming site that allows for on-demand streaming of TV
shows and movies. Netflix also offers a service where DVDs are mailed to one's house,
and mailed back once the individual is finished with the movie. Netflix operates on a
subscription service- those who wish to sign up for Netflix create an account and pay
monthly for the services. Netflix can be played on many different devices, including a
computer, Xbox 360, PlayStation 3, smartphones, tablets, Smart TVs, etc. It is one of the
world's leading entertainment services with 223 million paid memberships in over 190
countries enjoying TV series, documentaries, feature films and mobile games across a
wide variety of genres and languages.

3. International marketing selection

3.1 Defining the criteria and developing segments
3.1.1 Choose model
Business Environment Risk Intelligence or the BERI index is used in this analysis to
measure the general quality of the countries' business climate. This is an index that
measures risk to business in a specific country. The BERI is intended to help companies
weigh the risk versus the potential return of expanding their operations abroad. We use
this model as a preliminary screening method to sort out the two most potential countries
out of four to expand Netflix’s globalization.
Of the two countries selected, we use the MACS framework to decide which country to
prioritize for the internationalization strategy. It is a framework that offers a systematic
approach for the multi-business corporation to prioritize its investments among its
business units. In the MACS framework, we identify the criteria and assess the market
attractiveness (MA) and the competitive strength (CS) of Netflix in each of two markets.
3.1.2 Market selection criteria and why
3.1.2.1 Political stability
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Political Stability Index surveys strength and stability of basic and daily political
determinations. Stability is a factor that has influence on both politics and finance
markets. Ensuring this criterion helps the company stand a great chance of penetration.
3.1.2.2 Economic growth
Economic growth is evaluated on Gross Domestic Product (GDP) differences; GDP
growth rate & Wealth differences. This will give a look on whether the company can
make profit in the selected country.
3.1.2.3 Restrictions on video streaming industry
Restrictions are based on legal terms collected through report and market research. This is
directly related to whether Netflix can operate in the video streaming industry.
3.1.2.4 Monetary inflation
Monetary inflation is a sustained increase in the money supply of a country (or currency
area). Depending on many factors, especially public expectations, the fundamental state
and development of the economy, and the transmission mechanism.
3.1.2.5 Short-term credit
Short term credit rating is an evaluation of the credit risk of a prospective debtor (an
individual, a business, company or a government), predicting their ability to pay back the
debt, and an implicit forecast of the likelihood of the debtor defaulting
3.1.2.6 Share of population with access to the internet, phone
Share of the residents with access to the Internet over the total population. This indicates
the potential growth for Internet-based company like Netflix.
3.1.2.7 Attitude towards the foreign investor and profits
This will be evaluated on FDI stock off a country, which is the value of the share of
capital and reserves attributable to the parent enterprise, plus the net indebtedness of
affiliates to the parent enterprise.
3.2 Screening
3.2.1 Preliminary screening
3.2.1.1 Why Latin America and Asian Pacific?
To determine Netflix’s preparedness to go global, we evaluate two characteristics
according to The Nine Strategic Windows: global and adolescent. The globalism of
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Netflix is significant: by 2017 it was operating in over 190 countries, and today close to
73 million of its some 130 million subscribers are outside the U.S. According to Harvard
Business Review, Netflix’s preparedness for globalization was adolescent as it had gained
expertise in the content people prefer, the marketing they respond to, and how the
company needed to organize itself.
Based on our evaluation, we determine that Netflix is on the 8th strategic window which
is Seek global alliances. Therefore, potential markets for Netflix’s globalization require
such key drivers: the growth rates, the potential for new consumers, and the availability of
broadband internet. These key drivers lead us to two regions which represent well: Latin
America and Asian Pacific.
We continue to have a look at how Netflix has operated in these regions. According to
Statista, little more than 10 percent of Netflix's revenue came from Latin America in
2021, while the share of the U.S. and Canada surpassed 40 percent (Figure
3.2.1.1a). However, growth rates in Latin America and Asian Pacific indicated their
potential for expansion.

Figure 3.2.1.1a: Paid streaming subscribers off Netflix at the end of the respective period
(2020).
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In a regulatory filing, Netflix offered the first detailed look at its finances from various
regions around the world. The figures showed nearly 14.5 million subscribers in the Asia-
Pacific region at the end of September, representing growth of more than 50 percent over
the previous 12 months (2021). And Netflix's revenue in Latin America in the first three
quarters of 2022 was nearly 17 percent higher than in the same period of the previous
year. North America is the largest market for Netflix with some 67 million subscribers but
growth over the past year was just 6.5 per cent.

Figure 3.2.1.1b: Broadband internet over the world in percentage (2020).

Though Netflix's regional markets in Latin America and Asian Pacific form a
comparatively modest source of income, they certainly boosted the company's financials
as it entered the 2020s according to Statista. They are also the regions with high
availability of broadband internet (Figure 3.2.1.1b). As a result, we choose Asia-Pacific
and Latin American as two targeted regions for the expansion.
3.2.1.2 Why emerging markets?
According to TechHQ, to draw up the number of subscribers and overall revenue as a
result, Netflix had set its sight on emerging economies as their streaming service saw a
rise (31 percent) in average streaming paid memberships and a revenue of US$5.2 billion
for the third quarter was achieved. According to Figure 3.2.1.2a, emerging markets like
China, India and Indonesia show the potential growth in consumption in 10 years.
Emerging economies also have certain characteristics which facilitate Netflix’s
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expansion: high growth rate, growing middle class consumption, growing GDP and
Internet development. Therefore, we choose the strongest countries that belong to the
emerging markets for our next screening method, which are Argentina, Brazil, China,
South Korea, according to The 10 Big Emerging Markets (BEM).

Figure 3.2.1.2a: Global share of middle-class consumption on online platform.

3.2.1.3 Why South Korea and Brazil?
We apply the BERI model as a preliminary screening to sort out the most potential and
suitable nations that can facilitate the process of globalization.
Here are our criteria and the raw data collected for each country.

Criteria China South Argentina Brazil

Korea

Political stability (Score) -0.48 0.66 -0.11 -0.49

Economic growth (%) 8.08 4.02 10.2 4.61

Short-term credit (Level) A+ AA CCC+ BB-

Monetary inflation (Score) 45 62 38 38

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Share of population with access to the 72.4 95.4 74.1 71.6

internet, phone (%)

Attitude towards the foreign investor 1,901,000 193,000 84,140 778,500

and profits (FDI stock)

Restrictions on video streaming High Average Low Low

industry

Political stability index (2021) - The World Bank

GDP growth rate (2021) - The Global Economy
CPI (2021) - Transparency International (score)
DataReportal – Global Digital Insights
FDI (2021) - STOCK OF DIRECT FOREIGN INVESTMENT. Central Intelligence
Agency.

Here is our scoring table for four countries.

China Korea

Overall Overall
Criteria Weights Score Score
BERI Index BERI Index
(0-4) - a (0-4) - a
-b -b

Political stability (Score) 5 2 8 3 12

Economic growth (%) 4 3 12 2 8

Restrictions on video
4 1 4 2 8
streaming industry

Short-term credit (Level) 4 2 8 3 12

Monetary inflation (Score) 3 2 8 3 12

Share of population with

access to the internet, phone 3 2 8 3.5 14
(%)
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Attitude towards the foreign

investor and profits (FDI 2 3 12 2 8
stock)

Total 25 15 60 18.5 74

Argentina Brazil

Overall Overall
Criteria Weights Score Score
BERI Index BERI Index
(0-4) - a (0-4) - a
-b -b

Political stability (Score) 5 2.5 10 2 8

Economic growth (%) 4 3 12 3 12

Restrictions on video
4 3 12 3 12
streaming industry

Short-term credit (Level) 4 1 4 2 8

Monetary inflation (Score) 3 2 8 2 8

Share of population with

access to the internet, phone 3 2 8 2 8
(%)

Attitude towards the foreign

investor and profits (FDI 2 2 8 3 12
stock)

Total 25 15.5 62 17 68

a- 0, unacceptable; 1, poor; 2, average conditions; 3, above average conditions; 4,

superior conditions
b- Total points: > 80, favorable environment for investors, advanced economy; 70–79,
not so favorable, but still an advanced economy; 55–69, an immature economy with
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investment potential, probably a newly industrialized country (NIC); 40–54, a high-risk

country, probably a less developed country (LDC) – quality of management has to be
superior to realize potential; < 40, very high risk – would only commit capital if there
were some extraordinary justification.

After applying the screening method by BERI model, South Korea and Brazil show the
highest score (74 for Korea and 68 for Brazil) - which come in accordance with the most
suitable countries for Netflix to go global. South Korea is more favorable with advanced
economies for Netflix to expand its globalization reach. Therefore, we will focus on two
countries for further discussion and analysis on its globalization marketing strategies.
3.2.2 Fine-grained screening
After successfully defining markets that are potential and suitable for the process of
globalization with the BERI model, we continue to apply the MACS model: market
attractiveness/competitive strengths to identify opportunities within each market.

Here are our criteria for MA (Market Attractiveness) analysis as well as the data collected
for each market:

Score 1 3 5
Market size ($) 0-50 millions 50-150 millions ≥150 millions
Market growth (%) 0-4% 5-9% ≥10%
Types of market Frontier Developed Emerging
Economic Position (GDP per capita) 0-20.000 20.000-40.000 ≥40.000
Infrastructure - (%) 0-60% 61-89% ≥90%
Population 0 - 50 million 50 - 200 million >200 million
Market Focus Quality 50/50 Price

Following the criteria, we have the scoring table for two markets as below

South Korea Brazil

Criteria Weights
Grade Result Grade Result

Market size 0.25 3 0.75 3 0.75

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Market growth 0.2 5 1 3 0.6

Types of market 0.15 5 0.75 5 0.75

Economic Position (GDP per capita) 0.15 3 0.45 1 0.15

Infrastructure - (%) 0.1 5 0.5 3 0.3

Population 0.1 1 0.1 5 0.5

Market Focus 0.05 1 0.05 3 0.15

Total 1 3.6 3.2

Individuals using the Internet (2021) - Brazil/South Korea - The World Bank
GPD per capita (2021) - Brazil/South Korea - The World Bank
South Korea streaming television market share (2021) - Parrotanalytics
The leading SVOD platforms in Brazil (2021) - Parrotanalytics
Netflix subscribers and revenue by country (2021) - Comparitech

Here are our criteria for CS (Competitive Strengths) analysis along with the data retrieved
from different researches:

Score 1 3 5

Market presence No On short term (< 1 year) Yes

Marketing Bad Moderate Good

Price (USD) Low Medium High
Quality of the business network Bad Moderate Good
Product's fit to market demands Low Medium High

From the criteria, we have researched and presented a scoring table for CS analysis as below

Korea
Brazil (Compare to Amazon
(Compare to
Criteria Weights Prime Video)
Wavve)
Grade Result Grade Result
Market presence 0.25 5 1.25 5 1.25
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Marketing 0.25 3 0.75 3 0.75

Price 0.2 1 0.2 3 0.6
Quality of the business
0.15 5 0.75 3 0.45
network
Product's fit to market
0.15 5 0.75 3 0.45
demands
Total 1 3.7 3.5

Individuals using the Internet (2021) - Brazil/South Korea - The World Bank
Video Streaming (SVoD) - South Korea (2022) - Statista
Video Streaming (SVoD) - Brazil (2022) - Statista
How Netflix won Brazil (2020) - Screenhub
The Remarkable Netflix Global Expansion Journey (2022) - Centuro Global

We also came up with a MACS matrix based on the MA and CS analysis we have
conducted to identify position of each market on the matrix.
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With the MACS model analysis, South Korea shows a result with 3.7 in CS and 3.6 in
MA, which in comparison with Brazil’s (3.5,3.2) is much higher stating that South Korea
is a more potential market for Netflix's globalization strategies
4. Market entry mode
4.1 Mode of entry applied
4.1.1 Internal factors
Netflix has a strong brand reputation and has become a household name by substituting
some top-rated television programs. It also possesses innovative technology with
customer-centric service focusing on adaptability and originality.
4.1.2 External factors
Brazil’s tv industry relies on a single large media conglomerate, the Grupo Globo, Korea
presents a multichannel and multiplatform environment. Pay-tv in Brazil is still limited to
a small and affluent part of the population, therefore Brazilians frequently resorted to
illegality to consume their favorite shows (Sá, 2014). The Asian country is also currently
experiencing the media phenomenon of Hallyu, led by major entertainment companies.
Korea consolidated one of the largest Asian SVOD markets and the local SVOD market
was already well-structured before Netflix’s arrival (Shim, 2008). Both countries
represent significant regional markets for local audiovisual productions.
4.1.3 Entry mode
For two markets Brazil and Korea, Netflix used the joint venture for its entry mode.
Netflix has partnered with key local companies to build mutually-beneficial relationships.
In both of these countries, they decided to join hands with mobile and cable providers to
provide integrated content with existing mainstream services. In South Korea, Netflix
entered into a strategic partnership with Studio Dragon, a leading production studio, to
produce original content, which would attract South Korean consumers specifically
(Netflix, 2019). It also announced a global partnership with Telefónica, one of the largest
providers of integrated telecommunications services in Europe and Latin America, to
integrate Netflix’s service into Telefónica’s TV and video platforms in Brazil.
4.2 Pros and cons of entry mode
4.2.1 Pros
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This is the most feasible choice of entry mode as this can help Netflix overcome
regulatory restrictions imposed by the government on the video streaming industry,
mitigate restrictions on content availability and the lack of region-specific programming,
which was often preferred by domestic television audiences. This would give it more
exposure and would allow the company to create more ties with local partners, and
eventually, government bodies and regulators to pave its way into the market.
These relationships were mutually beneficial: Netflix was able to control the streaming
channel in new markets, while local firms were able to broadcast content to more
consumers. Partnering with local firms to develop exclusive content means both
institutions and consumers have to accept Netflix; Political institutions want to empower
local media firms, and consumers want to watch highly anticipated local releases.
Furthermore, Netflix progressively internalized more ownership of content as the liability
of foreignness shrank.
4.2.2 Cons
The adaptation of content to suit regional markets is a critical challenge as with joint
venture entry mode. To stay relevant and attract a steady inflow of new customers, not
only does Netflix have to collaborate with local firms, but it also needs to put in the work
to win over regional audiences with original content that feels less like a distant
Hollywood import, and more like something that reflects the audience’s culture and lived
experience, and is accessible in their mother tongue.
4.2.3 Ways to optimize mode of entry
In order to optimize the entry mode, Netflix needs to adapt its content offerings to serve
the local customers’ needs instead of focusing on marketing its US-centric content
through building a catalog capable of attracting culturally varied and geographically
dispersed audiences, with subtitled or dubbed versions in native languages, exclusive
foreign content and local licensing agreements. But what is really worthwhile with this is
that Netflix should devise this local production not only for local consumption, but also to
try to globalize it. Besides partnering with the mentioned firms in Brazil and Korea,
Netflix should find more distribution options, as the company can perhaps license its
content to other platforms, thus creating more options over time. What’s more, since the
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Korean Wave presents an impactful and expandable cultural counterflow on the global
stage, Netflix should seek to surf this tide positioning itself as a cultural mediator, while
simultaneously trying to enter East Asian markets, since it has been the most successful
fictional television format in the region for decades (Chua & Iwabuchi, 2008). Hallyu
trend, K-dramas use melodramatic language as an effective production mode and are
capable of engaging audiences around the world. The melodrama matrix uses “universal”
codes that dialogue with different audiences, even in their cultural specificities and varied
approaches to the genre matrix, which can help to popularize Netflix around the world.
5. International marketing tactics
5.1 Market segmentation
There are several types of consumers and market segmentation that Netflix has used. First,
Netflix has utilized geographic segmentation. It is highly efficient for Netflix in the
international markets because the prospective customers have different culture, preferences,
and administrative systems. Secondly, demographic segmentation is a factor that this firm
has considered a lot. As the products of Netflix provide a superior value proposition, it
should segment the customers based on two main demographic criteria which are income
of the prospective customer and life cycle stage. Netflix also paid attention to
psychographic segmentation to divide the potential buyers into different segments based on
personality characteristics, buying patterns, consumption opinion, opinion on social issues,
leisure activities, hobbies, and many other dimensions. When penetrating Brazil’s market
and applying the theory of market segmentation, Netflix has come to the conclusion that
the Brazilian audience regularly watches foreign content, especially TV shows from the
U.S. The citizens also did not pay too much attention on the Internet. Moreover, the TV
industry relies on a single large media conglomerate. Therefore, to watch their favorite
programs, people had to plan and sit in front of the TV. There is a different situation in
Korea. Korea has the fastest internet in the world and is one of the nations with the largest
number of broadband Internet users. So the audience easily watches their favorite contents.
Their citizens can watch their favorite films easily because they also have a multichannel
and multi-platform environment. Lastly, Korea is well known by the media phenomenon
of Hallyu.
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5.2 Targeting
When Netflix entered Brazil and Korea, their choice of target market was dependent on
many critical factors such as the organization’s mission, vision, and the consumer
segment fit, threats of direct competition and competitors' response,... In conclusion, for
Brazil, Netflix targeted in locals who want to watch their favorite program flexibly,
meanwhile, in Korea, they set goal at Internet users who want to watch foreign content.

5.3 Positioning
Netflix needs to position its product in such a way that it creates a distinct image,
provides a specific identity of the product and services in the customer’s mind. Brand
positioning and product differentiation have become increasingly critical because of the
driving down of production costs in the Broadcasting & Cable TV industry and the direct
access to consumers using e-commerce and other online retailing strategies. In Brazil,
they decided to invest in partnerships with telecommunications services and television
manufacturers to encourage both the improvement of local Internet penetration and speed.
Moreover, Netflix also invested in the production of local content to make it become
more attractive like the content from the U.S. They also created their platform to host two
special events in this country. They positioned themselves as a mediator of social issues,
especially for young audiences. In Korea, they offered lower prices and limited packages
to attract consumers. Netflix also made investments in exclusive foreign content and local
licensing agreements. Moreover, they also prioritized co-commissions with local
production companies to make their brand more popular. Last but not least, Korea is
famous for Hallyu so Netflix has bet on this phenomenon to spread over Asia.

6. International marketing strategies (Marketing Mix 4P)

6.1 Product Strategy Analysis
Netflix has in its catalog both the strength of national telenovelas and exclusive foreign
productions. In Brazil, Netflix has privileged commissions instead of co-commissions in
the country. A possible explanation for this is Brazil’s television and audiovisual
infrastructure, which is still dependent on just a few free to-air networks, monopolized by
the Grupo Globo, and limited by the meager pay-tv penetration.
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Unlike Brazil, where Netflix invested in commissions, in Korea the company has
prioritized co-commissions. Partnership between Netflix and K-dramas, Korean variety
show producers demonstrates a “commitment to Korean entertainment and allows Netflix
to bring more top-tier Korean drama to Netflix members in Korea and all over the world”
(Park, 2019).

6.2 Place Strategy Analysis

Online availability makes it possible for its customer to avail its services anytime
anywhere though it has strategic distributors as well which allows for easy delivery of
rented DVDs and has several branches as well.

In Brazil, Netflix concentrates on radio, television, magazine, newspaper and billboard

advertising while in Korea, Netflix focused heavily on its mobile experience, as well as
partnering with local operators to make payments easy. (Oliveira, 2020)

6.3 Price Strategy

Netflix adopts a Psychographic pricing strategy globally. Subscribers can opt for any one
of three membership and subscription plans. The average monthly subscription payment
for all three plans ranges from USD$7 to about USD$12.

In comparison with the Pay TV competitors in Brazil, Netflix generated a tremendous

advantage, based on a strategy that is common to many start-ups designated as
disruptive”. It comprehends a well-defined low cost/low price competitive strategy, with a
simultaneous high perceived value by clients: while SKY offered the New Sky Mix
Cinema 2011 with 141 channels + 6 Telecine channels + 10 HBO channels (the cheapest
bundle) for R$ 159,90 (approximately US$85), and NET Essencial HD with 45 channels,
including 6 Telecine channels for R$ 179,80 (approximately US$95), Netflix offered a
US$7 streaming service. Netflix fees, in comparison, are still in 2017 cheaper when
compared to Pay TV, at R$ 27,90 (approximately US$9).

In Korea, more affordable value packages went into effect for a few months in 2019,
consumers can save the most per title when choosing the basic with ads plan (saving
$0.00051 per title)
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6.4 Promotion Strategy

In terms of Netflix’s promotion, the fundamental source of the promotion is social media
websites including YouTube through which the company attracts teenagers, and as well
as a high range of adults. Moreover, the firm is sticking to pop-up ads, banners,
hoardings, and other static ads on websites. Additionally, the streaming network has
featured topmost celebrities to star in the marketing campaigns and advertising videos to
increase its sales and profits. To be specific, in Brazil, understanding the citizen's
psychology, they advertised that they would offer 30 days of free movies to attract the
locals. In Korea, they introduced Korean pop culture in local content and advertisement of
the Hallyu wave through many social media platforms, putting their name on the map.

7. Conclusion
On-demand global video streaming industry has exploded over the past couple of years
and shows no sign of slowing down. Netflix, Inc. is one of the world's leading streaming
entertainment companies, having approximately 222 million paid members in 190
countries. The company’s success is hugely contributed by its globalization strategies.

Here, we analyzed two opposite regions of the world –Latin America and Asia Pacific–
through Brazil and Korea, that despite their differences, are clearly important centers
within their regions. We aimed to contribute to a better understanding of Netflix’s
operations and practices in different regions of the world. By using the screening process
to compare Brazil and Korea with BERI and MACS model, we were able to identify a
significant shift in the company’s globalization strategies during its core years of
expansion. Despite recognizing Latin America’s significant role for the company, we
identified that Netflix, now, tries to conquer the Asian market. These two countries are
part of the global periphery, but central to their own regions; they have become essential
centers of mediation and cultural dialogue with neighboring countries and designed the
current logic of their regional cultural markets.

For two markets Brazil and Korea, Netflix used the joint venture for its entry mode. This
is the most feasible choice of entry mode as this can help Netflix overcome regulatory
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restrictions and have control over the streaming channels. However, to stay relevant and
attract a steady inflow of new customers one of the challenges it has to face is the
adaptation of its content to the local culture and live experience. Therefore, we suggest
the creation of local production, exclusive foreign content and local licensing agreements.
For its marketing strategy, Netflix marketing team shouldn’t confine itself to one
segmentation strategy and strive to inculcate numerous features to better define and
identify the target groups and segments.
Taking Globalization or Standardization into consideration, Netflix standardizes
worldwide technology and Research and Development processes. To be specific, Netflix
is currently available in many languages: content and voices are adapted to its host
streaming country. Netflix also allows general forms of payment that are common around
the world (PayPal, VISA); however, this is also considered as a drawback, because the
host country’s viewers find the procedure of international payment unnecessary.
Moreover, individual social media pages for each country allows Netflix to narrow its
advertisement to specific scope of viewers, making it more relevant and relatable.
Secondly, local products are launched on a worldwide basis. Netflix devises local
productions to try to globalize them (Money Heist is an extraordinary example).
Regarding Localization, there are localized versions of Netflix Korea and Netflix Brazil.
Not only does Netflix provide subtitles and dubs in Korean or Brazilian, but also ensures
that other components of its service, such as the design and customer care, are available in
Korean or Brazilian language. Creation of localized contents (Squid Game is an example)
in order to suit the taste of Korean culture is also another approach of Netflix to get into
the Korean market. However, the streamer has privileged commissions instead of co-
commissions in the country. A possible explanation for this is Brazil’s television and
audiovisual infrastructure, which is still dependent on just a few free to-air networks,
monopolized by the Grupo Globo, and limited by the meager pay-tv penetration.
8. Reference
Netflix, Inc Annual Report 2021
Brunk, Hans. (2020). How Netflix used Partnerships and Alliances to Internationalize and
then Internalize the Global Streaming Industry.
 19

Dias, M.de O. (2021) “The evolution of Brazil: the first decade.”

Mara Kasten (Author), 2019, Netflix's role in the South Korean over-the-top-video
market, Munich, GRIN Verlag.
Meimaridis, M., Mazur, D. & Rios, D. (2021). From São Paulo to Seoul: Netflix’s
strategies in peripheral markets.
NFLX - Netflix Inc Company Profile - CNNMoney.com. (n.d.-a).
How Netflix Expanded to 190 Countries in 7 Years. (2021, August 30). Harvard Business
Review.
Video Streaming Market Size, Trends, Growth, Report 2030. (n.d.).
Weerasundara, R. (2021, August 8). See What’s NEXT. . . Overview of NETFLIX
Strategy.
Low, J. J. (2019, October 25). How Netflix is tapping into emerging markets. TechHQ.
Navarro, J. G. (2022, November 24). Netflix in Latin America – statistics & facts.
Statista.
Netflix Announces Post-Production Partnership with Dexter Studio and Livetone for
Creating Best-in-Class Korean Content. (n.d.). About Netflix.
Telefónica to integrate Netflix service into its TV and video platforms. (n.d.). About
Netflix.
Political stability by country, around the world. (n.d.). TheGlobalEconomy.com.
Tiley, D. (2021, July 6). How Netflix won Brazil. ScreenHub Australia.
Statista. (n.d.). Video Streaming (SVoD) - South Korea | Market Forecast.
Statista. (n.d.-a). Video Streaming (SVoD) - Brazil | Statista Market Forecast
Kasten, M. (2021, April 8). GRIN - Netflix’s role in the South Korean over-the-top-video
market.
Individuals using the Internet (% of population) - Brazil | Data. (n.d.).
Individuals using the Internet (% of population) - Korea, Rep. | Data. (n.d.).
9. Nguyễn Trọng Hiếu – “Con đường tôi” campaign
9.1 Background
OWEN is a Vietnamese fashion brand for men of Kowil Joint Stock Company, belonging
to Phu Thai Group. Over 10 years of development (2008 - 2018), OWEN has more than
300 official agents and more than 100 retail stores spread across provinces and cities
 20

nationwide. OWEN's customers at this time are mainly in middle age, the image is
perceived as "old". Therefore, OWEN realizes that it needs to reposition its brand image
to target a younger and more modern target group.

OWEN's customers are young, dynamic, confident, like to conquer, like to build a manly
image. They may already have initial achievements and be on the road to conquering
success. To conquer successfully, they need many factors, including fashion.

With this group of customers, in addition to those who are lucky to find their life's
passion, there are still individuals who don't know what they want and they will take a
long time to experiment and fail. In that context, OWEN launched the "My Way"
campaign to encourage young people to share their stories of overcoming challenges,
inspiring them to pursue their passions.

9.2 Objectives
Increase brand awareness with potential customers (Male from 22 to 30 years old, living
in urban areas, income A, B).

9.3 Insight
Young people are those at the age of starting an independent life. They also begin to
freely make decisions about their lives. However, young people are still disoriented
because there are too many options around and they themselves lack experience and
capital. When they lose direction, they have anxieties that make it easy to give up on
unfulfilled desires and forget why they started.

OWEN finds that young people in this age group tend to like inspirational stories about
pursuing their passions and want to share their own stories of pursuing their passions with
the community. Inspirational stories are one of the sources of motivation for them to have
a spiritual support when lost.

Realizing that there is no place as true as the stories from those who have gone before and
have had certain successes, the "My Way" campaign decided to exploit the images and
true stories of 3 ambassadors in 3 different fields. each other and have a lot of influence
on young people.
 21

9.4 Creative Idea

“Tôi vẫn đi về phía trước trên con đường tôi"

OWEN believes that everyone has the right to be proud of their passion. Although on that
journey, there will always be difficulties and challenges, but "I" always persevere to go
forward. “I” want to share those stories, to be proud of my own success, to inspire and
motivate other young people.

9.5 Action plan

The entire campaign was deployed within 2 months with 2 main phases:

Create brand awareness and campaigns in the community through TVC and Viral Clip.

Call-to-action through activities on Social, Event and PR, especially the contest “My
Way”.

9.6 Preparation
Campaign Ambassadors and Influencers (KOL)

The agency selects campaign ambassadors based on: (1) the degree of positive influence
on young people and (2) the ambassador's inspirational story. That is Shark Dzung
Nguyen – representing the business field; Singer Trong Hieu– representing the field of
culture and art; and Nature Conqueror Hoang Le Giang – representing the field of sports
and training.

In addition to selecting 3 campaign Ambassadors in 3 different fields, the team also

collaborates with other KOLs in many fields to share the same voice with the ambassador,
spreading the message in the most effective way:

Satellite KOLs in the entertainment sector: MC Nguyen Khang, Writer Nguyen Ngoc
Thach, Designer Truong Thanh Long, Pianist Doan Le Phan Anh, Blogger Quang Dai.

Experts: Annie Nguyen Tram Anh (Senior Sales Lead of Salesforce Group), marketing
expert Tien Gia Tri.
 22

The lecturers and teachers have many followers such as Assoc. Prof. Dr. Vu Huy Thong
(Dean of Marketing Department, National Economics University), Assoc. Prof. Dr.
Hoang Anh (Foreign Trade University)…

Choosing typical representatives and having many KOLs' support is an important initial
success of the campaign.