FACULTY OF BUSINESS ADMINISTRATION

BA 240
BACHELOR OF BUSINESS ADMINISTRATION (HONS) MARKETING

MKT 539
BRAND MANAGEMENT

INDIVIDUAL ASSIGNMENT (20%)

TITLE: COMPANY BRAND ANALYSIS (NETFLIX)

PREPARED BY:

STUDENT NAME STUDENT ID

MOHD UZAIR BIN HAMDAN 2021119981

PREPARED FOR:

DR. IMELDA ALBERT GISIP

DATE OF SUBMISSION:

10/7/2022
 TABLE OF CONTENTS

1.0 COMPANY BACKGROUND ....................................................................................... 1

2.0 PROBLEM ANALYSIS ................................................................................................ 3

3.0 PROBLEM STATEMENT ........................................................................................... 4

4.0 IDENTIFICATION & EVALUATION OF ALTERNATIVE .................................. 6

5.0 RECOMMENDATION ................................................................................................. 8

CONCLUSION ..................................................................................................................... 9

REFERENCES ................................................................................................................... 10

APPENDICES .................................................................................................................... 11
1.0 COMPANY BACKGROUND

Picture 1: Netflix Company Logo

NATURE OF BUSINESS: INTERNET ENTERTAINMENT SERVICES

The company Netflix Inc. (Netflix) offers online movie and television streaming services.
Through an online subscription, the firm provides TV shows and movies, including original
series, documentaries, and feature films, for viewing on TVs, computers, and mobile devices.
In the US, it offers a DVD shipping service. The Netflix brand is a dynamic one that is always
changing. Likewise, the rules are. The brand team frequently chooses the finest work from
many platforms and dynamically feeds that content into the brand guide. The brand remains
current and relevant when partners see their greatest work reflected back at them. Netflix
provides licenced material from cable providers like HBO, as well as movies, TV shows,
miniseries, children's programming, and comedic specials. Consumers who longer wanted to
pay for cable and didn't mind losing access to live TV, or who sought ways to access it online.

GOALS: ENTERTAIN THE WORLD

At Netflix, they want to entertain the world. Whatever your taste, and no matter where you
live, they give you access to best-in-class TV series, documentaries, feature films and mobile
games. their members control what they want to watch, when they want it, with no ads, in one
simple subscription.

MISSION: TO ENTERTAIN THE WORLD

Netflix Inc.’s corporate mission is “To entertain the world.” This mission statement is based
on the nature of the company in providing on-demand movie streaming services.

VISION: “TO CONTINUE BEING ONE OF THE LEADING FIRMS OF THE

INTERNET ENTERTAINMENT ERA.”

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Netflix Inc.’s corporate vision is “To continue being one of the leading firms of the internet
entertainment era.”

BRAND HIERARCHY: FUNCTIONAL, GEOGRAPHICAL, AND PRODUCTS

TEAM.

Netflix's organisational structure is divided into three primary groups: functional, geographical,
and products team. CEO, content, communication, talent, finance, legal, and other departments
are included in the functional division. The geographical team also includes of local and foreign
streams.

GEOGRAPHICAL PRESENCE: OVER 190 COUNTRIES

More than 190 different nations provide Netflix streaming. Our collection of TV series and
films differs by nation and is subject to periodic revision. Note, China, the Crimea, North
Korea, Russia, and Syria do not have Netflix.

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2.0 PROBLEM ANALYSIS
In conducting brand analysis, the identification of symptoms must first be discovered. The need
is to identify symptoms that lead to the problems faced by the company. After doing some
research in regards with this assignment on Netflix, I have identified several symptoms that
could lead to some problems that faced by this brand in conducting brand analysis, the
identification of symptoms must first be discovered. The need is to identify symptoms that lead
to the problems faced by the company. It is necessary to first identify the problems before
undertaking brand analysis. Identification of the symptoms that contribute to the company's
difficulties is necessary. After conducting some research for my homework on Netflix, I have
discovered a number of signs that point to certain issues this company has.
Although Netflix's top releases match favorably with the whole release calendar of the
majority of rival streaming services, customers sometimes aren't aware of them because of
Netflix's poor marketing. Despite these inherent difficulties, Netflix's marketing has been poor
for the majority of its titles. It is quite challenging to raise interest for upcoming seasons
because the streaming service normally only uses brief promotions for its key releases.
Although many consumers like Netflix's binge approach, which has led to its popularity, it also
hinders its programs from developing buzz over a number of weeks, and when combined with
short-term marketing, results in the majority of material being forgotten about a few weeks
after release.
In addition, Netflix struggled with intense market rivalry brought on by a large number
of rivals in the same sector. As you might know, Netflix, Disney+, HBO Go, and iFlix are the
rivals in this profitable sector. In particular, Netflix and Disney+ have engaged in fierce
competition over the past few decades. Currently, Netflix is up against a lot of market rivalry.
Disney+ has gained numerous significant endorsements from Netflix. As an illustration,
Netflix lost its prospective sponsorship agreement with Disney+ Marvel flicks. Additionally,
Netflix does not promote family-friendly movies as much as Disney+ does.
Last but not least, Netflix saw significant net profit declines. After previously predicting
an increase of 2.7 million customers, Netflix in April revealed a loss of 200,000 members
during the first quarter of 2022, marking the company's first user decline in more than ten years,
according to Forbes News. The business has estimated that it might lose an additional 2 million
members this quarter.

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3.0 PROBLEM STATEMENT

1. Marketing Effort

There have been various reasons to explain the actual issues with Netflix that are causing
subscriber losses. The service has stagnated as a result of factors like growing costs, a lack of
distinguishable intellectual property, and heightened competition. However, compared to the
majority of its rivals, Netflix still has more large releases. For instance, the first quarter of 2022
saw the premiere of new seasons of popular shows like Bridgerton and Ozark. However,
customers sometimes aren't aware of them because of Netflix's poor marketing. The true
"killing issue" for the service, which impacts it more than competitors, is its meager and
ineffective marketing effort. With its original programming, Netflix attempts to simulate the
full range of on-screen media, from sophisticated productions like Adam Sandler’s comedy to
Oscar nominees like The Power of the Dog. Large media corporations that compete with
Netflix, like Warner Bros. Discovery or NBC Universal, release a wide range of material with
similar variations in quality, but they do it across a variety of channels and platforms that allow
for brand uniqueness. Despite these inherent difficulties, Netflix's marketing has been poor for
the majority of its titles. It is challenging to raise interest for upcoming seasons because the
streaming service normally only uses brief promotions for its key releases. Although many
consumers like Netflix's binge approach, which has led to its popularity, it also hinders its
programmes from developing buzz over a number of weeks, and when combined with short-
term marketing, results in the majority of material being forgotten about a few weeks after
release.

2. High Competitors

Disney may release a family-friendly film on Disney+, an adult-focused prestige drama on FX,
and a trashy reality programme on A+E without forcing the target audiences of each of these
genres to see movies or television shows they won't enjoy. Larger media businesses may also
more easily exploit their other resources, like TV broadcasters, or tie-in services and goods,
like Amazon Prime Video and Apple TV+, to draw in members. On the other side, everything
is close to each other on Netflix, particularly in areas like the Netflix Top 10. Customers may
get the idea from this that Netflix lacks any true standards of quality or a clear vision.

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3. Loss of Profit

The business has estimated that it might lose an additional 2 million members this quarter.
Losses occurred as a result of Netflix having to contend with a number of more recent streaming
services, including Disney+, HBO Max, and Paramount. Disney+ stated in March that it will
later in the year provide an ad-supported subscription option, while HBO Max began to offer
the more affordable plan last year and another significant rival—Hulu—also offers an ad-
supported alternative. Netflix, Inc. has earned a well-deserved reputation as a pioneer and
innovator in the home movie industry. After more than ten years in business, Netflix, Inc. is
still in growth mode, only just having turned the corner to profitability and still fending off
challenges from several heavyweight competitors. It has the advantage of an early start, a
strong distribution system, and customer loyalty. However, even with tremendous success,
Netflix’s expenses exceed its revenues so the cash flows need to be re-evaluated.

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4.0 IDENTIFICATION & EVALUATION OF ALTERNATIVE
After properly outlining the problem statements and analysis of the symptoms, the evaluation
of alternatives should be taken where we need to identify a comprehensive set of thoughtful
alternatives for each problem will be listed.

1. Offering An Ad-supported Option

Netflix's growth is slowing significantly, therefore the company must take more efforts to
assure victory in the streaming fight. Netflix's growth has slowed down a bit, so it's time
for the company to take further steps to ensure it wins the streaming war. Account sharing
should be one of the first things Netflix should resolve. For instance, Netflix could conduct
a trial in which customers in some countries willingly pay an additional fee to be able to
share their accounts while also making the overall experience safer for everyone involved.
As a result, it is fair to predict that anti-password-sharing measures will be adopted sooner
rather than later. Netflix should also consider in exploring offering an ad-supported option.
Most streaming providers, including Hulu, Peacock, and Paramount+, offer such a deal.
Offering a lower package might be a sensible answer, especially given how many people
dropped Netflix following its current price increase.

2. Lower Subscription Price

Generally, Netflix faces high competition just like any other companies that ever exist.
However, in order to reverse its decline, Netflix should implement price reduction to attract
more new subscribers and attractive in the eyes of competitors’ customers. Apart from
that, this could also mean by creating a lower-priced version of its service that has
advertising. Thus, customers would not have to cancel their plans due to expensive plans.
Besides that, Netflix should also deliver the highest of standards as much as they can to
not let customers down. By this, the customer would not even bother looking into other
popular streaming services such as Disney+ Hotstar.

3. Ability to Share Content Directly to social media

Last but not least, Netflix should consider the availability to share their content as many
subscribers have complained that Netflix prevents them from taking screenshots when
viewing Netflix episodes or movies due to Digital Rights Management (DRM) to protect
copyright material from being copied. Not only that, Netflix needs to be better at featuring
its best content. This could involve creating differentiated sub-brands that viewers could

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better identify with, perhaps curated by major Netflix creators such as Martin Scorsese or
Mike Flanagan, or using more extensive merchandising and conventional advertising. The
streaming service's biggest task is not creating more or better content, but better promoting
what it already has. Nowadays, we have seen people always. Hence, Netflix should seize
the opportunity to utilize social media actively participate in the customer’s updates which
could leads and create emotional ties that customers feel towards Netflix.

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5.0 RECOMMENDATION
After providing solutions to all of the difficulties and obstacles I discovered, I
understood that each solution had benefits and drawbacks. However, in managing its brand,
Netflix must select the most effective and efficient solutions that will benefit the company.
They must also take fast response to address these issues and obstacles. However, in my point
of view, the best alternative for the first challenge which is marketing effort is no other than
improving Netflix’s value proposition to make its business stands out. For example, Netflix
should capitalize on its merchandise since the company is a bit late to the party, considering
it's produced original content for years. Consequently, if this works well, Netflix will boost its
marketing efforts around its content, and also increase brand awareness which will, in turn,
boost sign-ups.

Besides that, after evaluating available alternatives, the best solution for high
competitors is lower its subscription price or create a lower-priced version of its service that
has advertising to generate more revenue by embracing ads. Although this could be a big
change for the company after years of only offering its movies and TV shows commercial-free,
the company should take immediate actions to avoid losing more subscribers as the
membership chargers and offerings are still quite expensive when compared to Amazon Prime
or even Disney+ Hotstar which could lead to more subscriber losses.

Last but not least, Netflix lays off 300 more employees amid subscriber losses are all
over the news lately. One of the reason to this issues is because Disney Plus Hotstar provides
high-quality content that's on par with Netflix, and its low cost makes it a top contender. Apart
from that, Disney Plus Hotstar allows its subscribers to take screenshots while watching their
favorite shows. Thus, it will be easier for them to post their positive feedback and updates
through social medias which could also grab other people’s attention to signup and watch the
show too.

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CONCLUSION
To sum up, this assignment was completed with the goal of conducting a brand analysis
on a company of which I choose Netflix. I am able to accomplish successfully by utilising all
accessible resources. With the completion of this project, I will have a better understanding of
brand analysis as well as detailed knowledge on Netflix. As we all know, Netflix, Inc. is a
streaming entertainment service provider. The company offers a subscription service that
includes streaming movies and television programmes over the Internet and mailing DVDs.
Generally, Netflix has been functioning effectively in the global marketplace for some time.
However, with increased competition and the advent of similar services, the firm needs
enhancements. Despite the undoubtedly novel notion of streaming original material, the
organisation has been hampered by technological issues, resulting in a loss in customer loyalty.

Thus, after identified several problems that Netflix has faced just like any other brands
around the world, there are ways to overcome the challenges and issues by implementing new
concepts and ideas in improving its value proposition. To become a great brand, Netflix must
become more aware of what is going on within its business and in its surroundings.
Furthermore, it must be updated in order to preserve the brand's relevance in today's
environment. Following that, Netflix will have to deal with quality concerns in order to get a
competitive advantage. As a result, the foundation for success will be formed.

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REFERENCES

Alexander, J. (2020, January 9). Recommendation is one of the biggest issues facing
streamers like Netflix, HBO Max, and more. The Verge.
https://www.theverge.com/2020/1/9/21058599/netflix-streaming-farewell-
recommendations-lulu-wang-hbo-max-quibi

Masango, A. (2021, September 2). 5 ways Netflix can improve to remain the best streaming
service. MUO. https://www.makeuseof.com/ways-netflix-can-improve/

Sweney, M. (2021, March 14). Disney forecast to steal Netflix’s crown as world’s biggest
streaming firm. The Guardian. https://amp.theguardian.com/film/2021/mar/14/disney-
forecast-to-steal-netflix-crown-as-worlds-biggest-streaming-firm

Tan, H. (2022, April 20). Netflix’s CEO says he’s open to creating a lower-priced tier with
ads as the company bleeds subscribers. Business Insider India.
https://www.businessinsider.in/tech/news/netflixs-ceo-says-hes-open-to-creating-a-
lower-priced-tier-with-ads-as-the-company-bleeds-
subscribers/articleshow/90950013.cms

Vatu, G. (2022, April 20). 5 reasons why Netflix is losing subscribers. MUO.
https://www.makeuseof.com/why-netflix-is-losing-subscribers/

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APPENDICES

Article 1: Recommendation is one of the biggest issues facing streamers like Netflix, HBO
Max, and more

Article 2: 5 Ways Netflix Can Improve to Remain the Best Streaming Service

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Article 3: Disney forecast to steal Netflix’s crown as world’s biggest streaming firm

Article 4: Netflix's CEO says he's open to creating a lower-priced tier with ads as the
company bleeds subscribers

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Article 5: 5 Reasons Why Netflix Is Losing Subscribers

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