HELPING NETFLIX

REACH ITS PRIME

NETFLIX IS
STRUGGLING Netflix recently told its investors of a
nearly 1 million subscriber loss in the
second quarter of 2022. In an effort to
grow its client base and revenue, it said
that it would speed up plans for a less
expensive, ad-supported subscription
model and would put a stop to account
sharing.

This is only the most recent in a string of

fairly uninspiring and depressing news,
beginning with layoffs, the discontinuation
of popular shows, a decline in the quality
of viewing due to the inclusion of
advertisements, and a general dissatisfied
audience.
A
COMPETITIVE
MARKET
Netflix is the costliest in the
industry, it lacks a USP. While
platforms like Amazon Prime and
Hotstar give faster deliveries or
live streaming of matches, Netflix
doesn’t have similar bundle of
unique services which can help
users differentiate it from its
competitors.

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INDIA ISN’T
CONTENT
WITH THE
CONTENT
Netflix has recently come under
the scanner with the lack of ‘desi
content’ and the fact that a lot of
popular shows are having to be
cancelled. They also lack access
to huge franchises. Lastly they
also face backlash from creators
due to the lack of creative liberty.

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 IS THE GAME
TRULY ON ?

Netflix still hasn’t perfected the template

for how their games are made, and they
haven’t marketed their games on a big
level, so how can Netflix acquire more
customers?

Secondly, a consumer can only either

watch content or play games, which
means Netflix may be cannibalizing their
main business. So how can Netflix retain
its customers in a way such that the
development of the gaming wing of
Netflix doesn’t lead to a decline in the
content space?

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 Understanding the Company
The first step of solving any case is
understanding the company we want to be
helping. One should try to research and
analyse the company’s current consumers,
the companies strengths and capabilities,
So how do their competitors and finally understanding
the product/ service/ experience which they

we start to offer

solve the
case?

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Segmentation
Targeting
Positioning
Target a Target a Select how to

Targeting
Segmentation

Positioning
particular particular position the
segment segment product to
based on the based on the help serve the
profitability profitability target market
and growth and growth by creating a
potential of potential of value
the segments the segments proposition
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STP ANALYSIS OF APPLE (iPhone)
Demographic
• Age 18-45 Product:
• High Earners
User friendly products, better usage of tech, sleek
Geographic design
• Mainly urban
areas Price:
High price point, for consumers who don’t worry
Behavioural / about price but want a superior products
Psychological
• Loyalty towards Promotion:
apple
More emotional promotion based on loyalty,
• Tech savvy
psychological play marketing apple as a ‘Cooler
brand’

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 PORTER’S FIVE FORCES
COMPETITION IN THE INDUSTRY POWER OF CUSTOMERS
The larger the number of competitors and
A smaller and more powerful
the number of equivalent products and
client base means that each
services they offer, the lesser the power of a
customer has more power to
company.
negotiate for lower prices and
POTENTIAL OF NEW better deals.

ENTRANTS
The less time and money it costs for a THREAT OF SUBSTITUTE
competitor to enter a company's market and PRODUCTS
be an effective competitor, the more an
Companies that produce goods or
established company's position could be
services for which there are no close
significantly weakened.
substitutes will have more power to
POWER OF SUPPLIERS increase prices and lock in favorable
The fewer suppliers to an industry, the more a terms.
company would depend on a supplier. As a result,
the supplier has more power and can drive up
input costs and push for other advantages in
trade.
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 Understanding the Users
Once we have understood where the
company stands, it is time to move on to the
next aspect and probably the most critical
one: the users.

So how do There are two ways of understanding the

users, i.e quantitative (how many users are

we solve the available, how many can we capture, etc) and

qualitative (talks about how the users feel.
There pain points and opportunities).
case?

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User Personas
Personas are fictional characters, which you
create based upon your research to represent the
different user types that might use your service,
product, site, or brand in a similar way.

Creating personas will help you understand your

users’ needs, experiences, behaviors and goals.

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Goal: What do they
want to do?
The goal describes what the
person is trying to achieve. This
can be pretty simple. It doesn’t
have to explain why or how, it just
has to explain what.
Motivations: Why do
they want to do it?
Motivations describe why the
person is trying to achieve the
goal they want to achieve. They
contextualize the goal so it’s
easier to empathize with the
persona.
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Barriers: What’s in their Mindset: How do they
way? think about the goal?
These are the things that blocking Mindsets give you get a window
your persona from achieving their into the persona’s world. What
goal. You may often see them values, expectations, attitudes, or
described as “pain points”. past experiences are framing their
goal?
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 Needs: What does the team need to solve for?
They reveal what your solution needs to do. Once you have needs,
you can start to answer how you’re going to solve them.

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Estimating the Market (TAM, SAM, SOM)
Total Serviceable
Addressable Addressable
Market Market
• It’s the maximum revenue • It is the part of the total
a business can generate, market which can
or the total market actually be reached.
demand for a product
• It is based on identifying
the kind of customer
segments which one can
reach
Serviceable
Obtainable
Market
• It is realistically the part
of the SAM which the
business can reach in
the first few years
• To do this one must look
at the competition,
pricing, sales plans etc.
to estimate how many
users they can acquire
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 Guesstimate
Estimate the total number of users that LensMart, a spectacle company
which is opening it’s shop near Hansraj College, can acquire

TAM SAM SOM

NUMBER OF PEOPLE WHO
TOTAL NUMBER OF NUMBER OF PEOPLE IN
WEAR SPECTACLES WHO
PEOPLE IN AND NEAR HANSRAJ WHO
LENSMART CAN
HANSRAJ WEAR/USE SPECTACLES
REALISTICALLY REACH

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 Number of Students

TAM
TAM = 4550 + 450
= 5000
Number of Faculty
It has been estimated that DU has an appx Teacher : Student ratio
of 1:30.
So we can estimate the number of faculty has around 150
teachers.

We can also assume that the faculty may be living with their
family (Assuming a family of 3, we can estimate the number to be
450)
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 SAM
The number of people who wear
glasses. It has been found that 57%
people wear either glasses / lenses.
So assuming 50% of the population
wear glasses
SAM = 0.5*5000
=2500
SOM
If we assume that 1/3rd of the consumers
already have lenses currently and 1/3rd
already prefer to purchase their lenses from
some other shop.
Thus the people willing to purchase lenses
from a local shop will be the remaining
population being 1/3rd of 2500.
If there exists another similar business, we
can assume a split between this 1/3rd
between the 2 businesses.
Thus the sales can be 1/6 x 2500=416 (appx)
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 Ideating upon the solutions
You now have an understanding of both your
business and its users. It is time to use these
insights to create solutions that bring profit to
the business, and solve the pain points of the
users.
So how do
we solve the
case?

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Kano Method
The Kano Model is an approach to
prioritising new features for a
product on the degree to which
they are likely to satisfy and delight
customers.

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Features To Include Features To Avoid
Must-be Indifferent

Performance Dissatisfaction

Delighters

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Suppose you are looking to
buy a car for your family.
• Must-be: Seatbelts, Airbags

• Performance: Child lock on doors

• Delighter: A Child Safety Seat for

the Back Seat

• Indifferent: Stereo System

• Reverse Quality: Pollution Level

Controls

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 Problem Statement
As a part of the Strategy Team at Netflix, you are
supposed to give possible solutions and a plan of action to
battle these existing challenges, and to grow the customer
base in India.

Getting back - Surviving in the cutthroat competition with new

players emerging especially in developing markets

to Netflix -
like India
Improving customer retention rates with lower
customer acquisition costs using the content
strategy
- Developing new revenue streams by venturing into
lucrative sectors such as gaming and more.

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Guidelines
Present your Solution in 10-12 slides including but not limited
to the following:
● A brief introduction to Netflix’s situation in India
● Solutions to the 3 problem statements using the
frameworks explained in the session
● A timeline for implementation of your ideas
● Conclusion

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