Marketing

Management
Mukul Jayant
PESTEL ANALYSIS
POLITICAL
By 2021, all online audio-video streaming services and social media platforms must adhere to the Information Technology Intermediary Guidelines and
Digital Media Ethics Code Rules. As a result, service providers must:
• Appoint specific individuals to conduct compliance due diligence
• Users with the indicated age group are prohibited from viewing non-recommended content based on the ratings offered, so they must abide by the
content classification criteria for movies and web series streaming on OTT platforms, such as U, U/A, and A ratings, upon request and within a
specified time limit.
• Prohibit the broadcast of content that jeopardizes India's sovereignty, unity, integrity, defense, or religious harmony, or that is disrespectful to other
countries

ECONOMIC
Most rural Indians dislike Netflix content because the cost of a Netflix subscription is prohibitively expensive for them and the
content does not speak to their needs. Netflix content appeals to a predominantly urban population with a fixed monthly income.
Netflix charges its subscribers for a premium subscription. Disney+ Hotstar, India's most popular VoD streaming service, charges
899 rupees per year for simultaneous streaming on two devices in full HD quality. On mobile-only devices with SD quality, the
entry-level Netflix package costs 149 rupees per month. restricting internet use when a new, popular Netflix series premieres, as
happened in South Korea when Squid Games premiered and the entire internet was shut down.
PESTEL ANALYSIS
SOCIAL
In addition to Hindi, Netflix provides streaming services in regional languages, which helps local creators get their work featured on the
streaming service. This broadens the range and relevance of Netflix content in Tier 2 and Tier 3 cities where Hindi is not widely spoken. Netflix
is well-known for its values, work-life balance, and ethical business practises.

TECHNOLOGICAL
Netflix uses sophisticated converters to support video streaming on mobile devices, in addition to developing technologies to enable 5G devices.
Netflix employs the HERMES translator to generate subtitles in over 20 languages. Netflix's recommendation engine is the best in its class across
multiple industries, and they are constantly updating their user interface and algorithm to support different subscriber-used devices. Users in
India can also enjoy the UI in Hindi. User credential sharing is a significant issue for which Netflix began actively monitoring and restricting users
in India, prompting CEO Reed Hastings to call it out.

ENVIRONMENTAL/ETHICAL
Netflix used 451,000 megawatt hours of electricity in 2019, which is more than double what they used in 2018. The remaining 357,000
megawatt hours were consumed by their data centre and ISP partners, referred to by Netflix as "indirect electricity use," with 94,000
megawatt hours going to their headquarters and studios. Netflix hopes to achieve "Net Zero" greenhouse gas emissions by the end of 2022.
The carbon footprint of Netflix 2020 was approximately one million metric tonnes.
PESTEL ANALYSIS
LEGAL
All OTT participants have recently received a number of legal notices for content perceived to be politically biased or disrespectful of someone's
religious beliefs. In response, the Indian government established The information Technology intermediary guidelines and digital media ethics
code rules - 2021, which require streaming service providers to establish a specialized grievance team to address customer complaints. The
rules mentioned above also cover content copyright and user data privacy. Netflix shows are also subject to video piracy on websites such as
Torrent and others.
Customer Esteem and Love & belonging

Need Netflix Customers should be able to watch their

favourite movies and television shows whenever

Targeted? they want, whether alone or with friends and

family. Netflix has evolved into a luxury product
that provides its customers with a sense of self-
worth. Netflix users enjoy watching Netflix
movies and series with their families when they
have free time because it makes them feel
connected and included.
 Customer Journey Mapping
You can add steps as required

Step 1 Step 2 Step 3 Step 4

Need of a Content Purchasing Experience the
Customer Requirement Capability Money
STEP 1:
Need of a Customer
The customer must be able to watch the most recent movies and television episodes at home, either alone or with
others, without interruptions and with a wide range of high-quality options.

STEP 2:
Content Requirement
When a customer searches for video streaming services online, a few options appear, with Netflix ranking among the top
options alongside Amazon Prime Video, Disney Hotstar, and others.
• He compares each platform's membership costs, content libraries, and platform quality.
• He is aware that Netflix provides both international and domestic programming, such as the popular "Sacred Games"
series, as well as other shows enjoyed by his main reference group of close friends and coworkers, such as "Narcos,"
"House of Cards," and others.

CUSTOMER JOURNEY
STEP 3:
Purchase Capacity
The customer will consider several purchasing options, such as plans that include mobile services, such as three months
of free service from Airtel or Jio. Or a single screen plan on a mobile or tablet for 149/month, or another plan based on his
budget.

STEP 4:
Experience the Utilized Money
The customer will then use his Netflix subscription to watch his favourite movies and television shows. He will also
browse the suggested viewing list and fine-tune his preferences on the Netflix website. His overall experience with the
Netflix platform will shape his own experience with the platform. The depth of the collection, suggested films that he
might not have discovered on his own, the cost vs. the service provided by the platform, or the lack of dubbed versions
of his favourite films or TV episodes are just a few examples of what the user may like or dislike about Netflix.
Depending on his experience, he may decide to expand his plan to include multiple screens for watching Netflix with
family.

CUSTOMER JOURNEY
 Objective of the research
MARKET To collect information from customers in order to understand what makes Netflix
customers unhappy and what expectations they have of the platform.

RESEARCH PLAN
Tools to be used used for research
I would launch a campaign via SMS, Whatsapp, and email in which users could click on a
secure link to access the official Netflix survey portal and provide feedback on what types
of content they want to consume and at what prices. Client feedback will be gathered
using a closed-ended questionnaire. Every client who participates in my efficiency
initiative will receive free mugs and T-shirts with the Netflix logo.

Reason for selecting the given tools

The majority of users interact with service providers via WhatsApp, SMS, and a small
percentage also use email. The consumer can feel engaged and informed about their
engagement if I contribute creatives via email or the Netflix website. I will be able to add
customisation using this approach. A brief questionnaire will also make it easier to
tabulate and comprehend the data.

Netflix
Competitive Advantage: The company
is the most enticing streaming partner for
content creators who want to reach as many
people as possible because of its enormous
worldwide audience. Additionally, compared to
its competitors, Netflix has a much larger
international presence.
Positioning Statement: Netflix's basic
promise—"movie enjoyment made easy"—has
mostly remained unchanged over the years,
despite changes in business approach.
Financial Strength: Netflix is rated as
having financial strength at level 6. Debt held
by the company, as measured by its Interest
Coverage (current year). Higher is preferable.
income to debt ratio. Lower is preferable.
Competitor Analysis
Prime Video
Competitive Advantage: Prime Video
implements a differentiation strategy to get a
competitive advantage. They bundle Prime
video with their e-commerce shipping, music,
and reading services. They are the second-
largest user base in India with 22 million
subscribers.
Positioning Statement: Entertainment
and smile delivers instantly.
Financial Strength: Amazon Prime Video,
which is a part of the larger Amazon business,
is in extremely good financial shape. strength.
In 2020, they made about 1500 Cr in India.
Spending a lot of money on new local content
collaboration in India
Sony Liv
Competitive Advantage: Hotstar is one
of the most reasonably priced online video
streaming services in India. They hold the top
spot in India with 46 million customers. Their
cost leadership strategy gives them a
competitive advantage.
Positioning Statement: Live your sport
and Enjoy your share of drama
Financial Strength: Hotstar, which earns
the most (1628 Cr), spent 1990 Cr (2020) to
purchase the Indian movie and sports rights,
outbidding other competitors.
 Competitor Analysis

Prime Video
Netflix Sony Liv
Entry and exit barriers: Netflix's entry Entry and exit barriers: Liv was not
Entry and exit barriers: Amazon's pleased when it excited in support of Star
barrier was high in India because Hotstar
financial stability allowed them to secure network and Hotstar both debuted fast.
was almost a year old and Prime Video
some exclusive content rights for Prime Hotstar's exit barrier is high because a
had also just begun operations. Since
Video. Amazon has a low exit barrier significant portion of their revenue to bid
Netflix has no other obligations, the exit
because its primary businesses are cloud on the rights to stream live sports. They
barrier is very high. Although they only
services and e-commerce. Since Prime made a purchase a lot of money into live
recently began offering online gaming
Video was introduced as an extra service broadcasting technology to support both
services, it will take time for them to
on top of Amazon's Prime delivery service, mobile and PC hardware.
expand.
it provided them with the initial market
share.
 Who are your other
direct and indirect
competitors?
Direct Competitors – Hotstar Zee5, AltBalaji,
Voot, Jio Cinema, etc. (A premium content
provider that charge subscription fees)

Indirect Competitors – Youtube, TVF, MX Player

etc. (free premium content providers who
provide free video streaming on their app/portal
services)
Value Proposition
• A huge, exclusive library of material available
in a number of languages that appeal to
viewers with a wide range of ages,
preferences, and genres.
• Downloadable content has a thorough user
interface and is accessible on portable devices.
• Providing a special customized list of content
recommendations depending on the
preferences of specific users.
• Downloadable content has a thorough user
interface and is accessible on portable devices.
• Availability of 190+ nations.
USP

Comprehensive, excellent, and first-rate online multimedia streaming

service is available anywhere and is delivered to you using cutting-edge
technology.
 4P’s of Marketing
Product: Through its website, APP, and portable devices including mobile phones and tablets in addition to desktop and
laptop computers, Netflix provides on-demand video streaming. Netflix created a constantly growing collection of content in
a range of genres and languages in order to keep its audience engaged. This collection of content from partnerships contains
both Netflix Originals and widely distributed content. You can utilise your subscription almost anywhere in the world
because they have presence in more than 190 countries.

Price: It's possible to consider Netflix to be a more expensive alternative when compared to other streaming video services
available in India. Mobile (149 INR/month), Basic (199 INR/month), Standard (49 INR/month), and Premium (64 INR/month)
are the four price tiers offered in India. Given that Netflix's costs are rising and users are more likely to share passwords,
CEO Reed Hastings has expressed his disappointment and failure at not being able to fully penetrate the Indian market.
 4P’s of Marketing
Promotion: Every accessible kind of promotion is used by Netflix, including posters, newspaper ads, Facebook,
YouTube, and more. Additionally, they are actively engaging in influencer advertising in India by working with
YouTube influencers. Telecom service companies like Airtel and Jio promote Netflix through their bundle offerings.

Place: Through the Netflix App, Netflix used to directly contact members. The Netflix app was later combined with
Airtel-specific subscription plans, and three months of free service were made available to anyone who created an
account on the Netflix app using an Airtel number. Later, Netflix established a number of partnerships with telecom
companies and DTH providers like Airtel and Jio. After three months, users can access Netflix, but Airtel would
charge them as a Value Added Service on their account.
 BCG Matrix
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Stars : Under the stars heading is the Cash cows : Market segments that compete
Netflix streaming section available in slowly expanding industries and control a
worldwide. Netflix holds the largest sizable percentage of the market are known
Question Marks : None of the Netflix
market share for streaming services as cash cows. The industry's growth rate has Dogs: The DVD rental market may not
episodes qualify as "question marks."
worldwide. Due to the excellent calibre of been declining over time as a result of the need many resources in the near future
These market sectors are classified as
its content and streaming, Netflix is at the growing demand for streaming online. due to a drop in demand and consumers'
Question Marks because they operate in
top of the list of streaming services However, Netflix still has the highest rate of preference for internet streaming. Netflix
a market that is experiencing significant
available globally. In terms of domestic DVD subscriptions. Netflix should consider must therefore progressively stop
sales growth while also having a tiny expanding into further areas where blue Ray
streaming services, Netflix has a 60% sponsoring this portion.
relative market share. is still in demand in order to increase their
market share and the industry's sales
growth is rising. As time passes, this market share. The DVD sector of Netflix
situation worsens. continues to rule the country, though.