NETFLIX FINAL CASE

Kevin Steven Muñoz Rueda

MBA Specialized in Project Management

Angel Perez Torres

teacher

Cerem International Business School

Netflix Final Case
Colombia
2021

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 NETFLIX FINAL CASE

Kevin Steven Muñoz Rueda

MBA Specialized in Project Management

Angel Perez Torres

teacher

Cerem International Business School

Netflix Final Case
Colombia
2021

2
INDEX

 INTRODUCTION...............................................................................................................................3
 Digital Marketing Strategy..................................................................................................................4
1. Identify and comment on which data sources are considered useful and important in the
ecosystem of this company and analyze their value (a data source refers to one of the IT systems that
a company has and in which it stores information for the provision of the services, as well as
information from the clients themselves)...............................................................................................5
2. Define some possible personalized marketing strategies and initiatives that Netflix could
implement based on Big Data (it would be interesting to refer to the data sources identified in the
previous question)...................................................................................................................................5
3. In your opinion, what neuromarketing tools do you think are used in the media streaming
sector?.....................................................................................................................................................6
 Digital transformation and intelligence................................................................................................8
1. Comment on the digital scenario in which the company operates (infrastructure, technologies,
competitors, content. etc.).......................................................................................................................8
2. Analyze the digital transformation initiatives that Netflix is carrying out in recent years............9
3. Propose other initiatives that can help accelerate change.............................................................9
 E-Commerce and Social Networks....................................................................................................10
2. Make a proposal that you consider interesting so that Netflix increases its subscribers.............11
3. Identify any marketing action carried out by the company on social networks and comment
on the result that the company would expect to obtain and if you think they have achieved it.....13
 Conclusion.........................................................................................................................................14
 Bibliographic references....................................................................................................................15

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  INTRODUCTION

During this work, we will carry out a research project in order to apply all the knowledge
acquired in the two subjects, Leadership and direct skills, internationalization block, so that the
final Netflix case has an investigation about digital marketing, transformation and digital
intelligence and E-commerce and social networks.

It is important to highlight that Netflix was created on August 29, 1997 and since that moment
its impact and growth has been notable, it has become today one of the best and most recognized
Streaming companies, providing quality content aimed at the entire audience from boys and girls
to young people and adults.

Netflix provides exclusive content for all audiences, and has a wide range in its catalog. For
this reason, during this work, an in-depth investigation is carried out into its business model, how
they use their resources, the leadership skills that the company manages, their intelligence.
artificial and the appropriate use that the company gives to social networks.

It should be noted that the techniques and knowledge seen during the subjects proposed by the
institution were handled. One of the most interesting points to discuss during the work is being
able to innovate a commercial and marketing strategy so that Netflix can acquire new customers
and also increase its online sales.

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  Digital Marketing Strategy

1. Identify and comment on which data sources are considered useful and
important in the ecosystem of this company and analyze their value (a data
source refers to one of the IT systems that a company has and in which it stores
information for the provision of the services, as well as information from the
clients themselves).

Information Technologies are based on making technological contributions to the value of the
company, for this reason the company analyzed Netflix, it is a company that helps you generate
control and profitability, since you look at the investments and sustainability of the project for
Netflix, with the The help of these certain products helps us to enhance the tools used.

Sources and destinations of control in order to make investments by the company, so that the
money is being worked in order to have a higher budget, in order to which areas the company
requires more observation and monitoring, as well as same, which require greater interest.

One of the most used tools for this IT system is Big Data, which refers to sources of
information that allows you to analyze the company's process in all its products. With this, the
company can provide feedback on it, analyzing strategies. and actions to reach the potential
client. With the help of Big Data Netflix can take advantage of its stored data to identify
consumer needs, this leads to more agile operations, smart businesses and a happy customer,
which is most important.

Strengthen search engines such as Google, Yahoo, Snap, Aura, among others, which allows
Netflix to optimize the search so that users or future clients can obtain a simplified and fast
search through these engines to go to the pixels they They are basically the search analyzes that
each consumer performs daily.

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 2. Define some possible personalized marketing strategies and initiatives that
Netflix could implement based on Big Data (it would be interesting to refer to
the data sources identified in the previous question).

We have great potential such as Big Data, one of the tools that builds loyalty and attracts new
customers. With the help of this strategy, Netflix can generate more sales on its digital platform
and achieve more coverage in more parts of the world where it does not. have arrived. Digital
advertising and structured marketing allows us to comply with metrics for the creation of new
needs. With the help of Big Data we can know what the client really wants, mixing it with
advertising on Facebook, Instagram, Google and other media we can visualize potential
escalations. to success.

Through Big Data, we will diversify resources in different projects that clients will let us
know, likewise, the client's opinion will tell us what we have to improve and pay more effective
time to generate happiness in the consumer. In order to penetrate the market, we must know the
sales levels and the product in depth by consulting with the Product Owner.

Prices are the most important strategies for companies, since with Big Data we can carry out a
price analysis of each income, expense and profitability, optimizing costs, bonuses, offers,
promotions among many more, we must apply strategies that allow the customer to feel like they
have with the membership that is currently being paid for on Netflix and how we can maximize
said cost, the customer's experience when paying for the membership is vital since if it generates
an error or inconvenience with the portal, it will be outrageous. your experience and even worse
give up on the purchase, for this reason we need to have good cloud storage and control if
failures occur.

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 3. In your opinion, what neuromarketing tools do you think are used in the media
streaming sector?

Nowadays, one of the reasons many companies have ventured into the technological world is
because of the so-called competition and Neuromarketing comes into play and from there we
start from the fact that it is a complement to the media streaming sector in this particular case,
Netflix digital platform that allows you to watch series and movies 24/7 only from a
technological device.

Thanks to Neuromarketing we can see that sales for Netflix have increased, and among those
there are some neuromarketing tools which we will analyze in detail to answer the question, let's
start with EYE TRACKING, which is totally visual and provides visual and attractive
information. to the consumer through advertising panels, search engines, this alters the
consumer's pupil and generates a pattern of interest in this service, leading the consumer to
purchase the service, this creates an emotional and cognitive impact.

GSR is a neuromarketing tool that allows us to identify the emotional pattern of the same
client, in order to analyze how much impact this person had with the digital platform. In this tool,
emotions are greatly influenced, the strategy that we can see a series or a live sports channel
without having to resort to a legal contract, this draws the customer's attention in all its aspects
and even more so if the subscription can be canceled at any time.

FaceReading, which is an integrated system that analyzes 100% of your emotional and gestural
aspects, is important for neuromarketing, which gestures the consumer makes when talking about
streaming, knowing their points of view and the advantages and disadvantages that it generates.

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For or against the person, this tool practically ensures a sale dependent on the gesture of the
person who is focused on the screen analyzing whether or not the future purchase is made.

With these tools we can say that they are one of the most used tools in the streaming sector to
ensure a purchase and build customer loyalty through neuromarketing.

 Digital transformation and intelligence

1. Comment on the digital scenario in which the company operates (infrastructure,

technologies, competitors, content. etc.).

Netflix is a streaming service company that offers the public a wide variety of movies, series
and documentaries. The only function the consumer has to purchase the service is by paying a
monthly, semi-annual or annual subscription with a debit or credit card.

With this service, the client can view a list of entertainment without additional costs for
advertising or commercials, and there is no time limit, which means that the user can view all
unlimited programming.

Netflix uses advanced technology, especially an algorithm that identifies it in order to gain
more subscribers for the platform, the tool is called "Machine Learning" which allows
identifying the potential customer, so that the Data Analisys engineers in turn can join the task of
searching for the potential client, it should be noted that the import of this software for Netflix is
a great advantage over its competitors, from there we can analyze that the main direct
competitors are Amazon Prime, Apple TV, HBO, Disney +, Google Play Movies among others
are competitors that have training and organizational structure to match Netflix, for this reason
this company is dedicated to innovation, thanks to innovation the company generates more sales
and attracts customers, generating reliability and brand loyalty.

One of the main contents of Netflix are the series, since they as a company do not buy series
from other private companies, but rather they have their own production, mastering, acting,
writing, and content team so that each series that Netflix broadcasts, are completely their own,
this leads the audience to see more content on this platform than on the others, they also have

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their own films and documentaries, made mostly in North America, South America, Europe and
Asia. As a company they are very programmers and you see it in their content, in addition to the
fact that the digital platform is very easy to use, any person or older adult understands and can
handle Netflix, this attracts their audience more.

2. Analyze the digital transformation initiatives that Netflix is carrying out in

recent years.

In order to answer this question, we must first know what digital transformation is and how
this term came to stay in the business world, we take into account that when we talk about
transformation it means talking about change, reorganization, a new model and if We define
digital as talking about global technology, the digital world they would say, for this reason,
basically digital transformation is a reorganization of the business world in technology, of how
technology contributes so that businesses restructure their business plans and have their may
partner, ally, as is the Digital Transformation.

Netflix has been able to take advantage of this great benefit that technology gives you and that
is scalability in such a short time. While many companies were in the world of CDs, USB
memory and conventional cinema, this company re-invented the way in which people They
could watch their training without having to leave their bed, or pay for a movie ticket, they were
practically, not to mention, the first to revolutionize the world of Streaming, with such a simple
click and internet connection, you have everything in your home, This company transformed its
vision towards the digital age.

Thanks to the digital transformation, Netflix made giant leaps, taking by surprise those
companies that believed that even the so-called digital transformation was not going to arrive,
that it would take a little longer, giving the price to the fact that this company was ahead of its
competition at that time. , with this he makes it clear to us that the modern world in which we
live is nothing more than a small bite of what is waiting at the door and leaves us with a lesson
about living and adapting to technology.

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 3. Propose other initiatives that can help accelerate change.

In 2020, a global virus called COVID 19 arrived, which took many lives in its wake, many
companies went bankrupt financially since they could not continue maintaining their companies
due to this pandemic, but it was not all bad, it left us with a advantage with respect to the digital
world, from there we can extract many advantages for the company, companies are currently
looking at the digital world with good eyes, according to what they said before that it was very
far from being real, but at this moment we are experiencing it.

Companies have opted for remote work, the less contact there between people the better,
technology has also influenced all of this, companies like Zoom that connect the world through
your device have contributed to accelerated change, One way to accelerate change occurs in
companies, contributing to technology, teaching their employees to use technological resources,
in schools they also have classes on digital transformation and how this changes the way of
developing a profession within the companies.

Another way is by showing companies and businesses the importance of being allied with
digital, this teaches them that they can reach the potential client with more precision, in addition
to generating more sales and accelerating a medium or long internationalization process. term.

 E-Commerce and Social Networks

1. Comment on the internet strategy carried out by the company.

Its strategy is based on the quality of content, being a differentiating engine from its
competitors. Netflix is a digital company that is based on providing a streaming service,
innovating in the world of audiovisual content. This company plays an important role in the

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world of entertainment, one of its main commercial strategies is its own content, Netflix has its
own series and movies, it has also opted for the innovation of creating series that attract users,
one of them is "La casa de Papel".

Attracting new customers is a great challenge for this company, since there are many
competitors that try to do what Netflix does, in addition to the platforms that provide Netflix
content for free, today this company has a great challenge. and its commercial objective is to
increase the number of followers and visits on its platform, for Netflix the price has made the
difference and has been of great help so that the company could scale quickly and continuously.

Promotion and advertising, with the help of marketing and telemarketing, this company has
made its services known to the entire public, mainly the person enters the platform generating
interest in the quality of content with which it is handled, subsequently the person registers your
account by creating a username and password, they give you a 7-day free trial with the
requirement of attaching a credit card and then paying the fee to use the application. This
methodology has long been effective for Netflix.

2. Make a proposal that you consider interesting so that Netflix increases its
subscribers.

For Netflix, the most important thing is to increase the subscription of followers, for this
reason, carry out a diagnosis that allows us to carry out various monitoring of the traffic of
people who visit Netflix daily but does not allow them to take the subscription step.

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Exclusive content.

For the first commercial strategy is to launch exclusive content for each country, it may
require a very high capital for the company, but it is the differentiating engine towards the
competition, Disney + has launched its strategy with an alliance with Marvell Studios, Pixar, Star
Wars in order to give exclusive content to its followers, on the other hand for Netflix it is
important to provide allusive content so that people are interested in the quality of content and
take the next step to paying for the membership, the departure of Friends It was not well
regarded by Netflix followers, so for this reason, we have a very big challenge to offer the best
streaming programs.

Digital Innovation.

As a strategy, innovation must always go hand in hand with streaming. A good innovation
strategy can improve sales and flow of people for the Netflix platform. This strategy is based on
the first phase of preparation and scoping, where it is directly analyzed. the company's potentials
and weaknesses in the marketing area, it is worth highlighting that Netflix uses its marketing to
provide the customer with what they are really interested in seeing, but it is not only based on
offering quality content, but also innovating on its platform. , in its way of selling, what is the
differentiating model that makes this company stand out from its competition, that is why the
first part is preparation.

We can enter phase 2, which is analysis and proposal, the innovation proposal must be clear
and detailed, we cannot think that innovating is creating, but it is also restructuring business
models, for this reason a general diagnosis of the company and how it manages its work style
among employees, for this a reliability contract is always signed since it is a private matter for
Netflix.

We move on to phase 3 of the Endo marketing strategy, it is based on the work of the
proposal, defining and achieving the objectives accurately. It should be noted that for Netflix the

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volume of people who can subscribe to its portal is important, for this reason it will innovate. in
the structural form so that future customers proceed to the final purchase.

Finally, a document prepared presenting all the research that was achieved with the Netflix
company, so we can make clear the points to be discussed, taking the strengths, weaknesses,
opportunities and threats to give a global vision in which sectors we can act on the weak parts. .

Live broadcasts.

Netflix has quality content and good marketing strategies to attract new customers to its
platform, but something that can be differentiating for them is a live broadcast, it can be from
different categories such as comedy, art, video games.

Netflix has potential because it has its own video and audio directors, so we can use these
resources to make live broadcasts for free so that people interested in this service can see a little
about the platform and the benefits it brings.

Stand up comedy is very welcomed by viewers, many prefer to watch a comedy program over a
series or movie, in fact, in several countries around the world they have comedy programs,
Netflix can carry out a visual and content strategy, it is also a differentiating tool from your
competition.

3. Identify any marketing action carried out by the company on social networks
and comment on the result that the company would expect to obtain and if you
think they have achieved it.

Netflix has many marketing strategies to attract new customers and also increase its online
subscription sales. One strategy that I was analyzing on its social networks is that Netflix gives
the public on its social networks what they really want to see, to To promote a new series or
movie, basically your followers approach you with a close and friendly tone.

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They try to generate more trust with the user by making something funny in their series or
movies. We can notice in the following image how they take advantage of real life events to talk
better about their series and movies.

Taken from. http://creamostuvideo.com/estrategia-marketing-netfllix.

 Conclusion.
During this work I was able to identify very valuable aspects that can give me a panoramic
view of the current world of entertainment companies, taking into account some monitoring
principles regarding their marketing strategies. The quality of content is fundamental for Netflix
since there are companies such as HBO, Disney+, Amazon Prime among others that compete to
give the best value to customers.

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 During the work we put the techniques and knowledge seen in the modules of the master,
among those marketing strategies, artificial intelligence, business model trends and as a
complement, innovation, a key point for the development of this work was the research focused
on detail , an analysis of Netflix's business model, understanding their dynamics and
complementing it with the work, for some points diagnoses were carried out that helped us
contribute to the ideas and niches that this work contains. To complete this work, I contribute a
lot to being able to understand the knowledge acquired in each of the modules and also put it into
practice in order to obtain bases for my work performance.

 Bibliographic references

Mayer-Schönberger, V., & Cukier, K. (2013). Big data: the big data revolution. Turner.
Goyzueta Rivera, S. YO. (2015). Big Data marketing: an approach. Perspectives Magazine, (35),
147-158.

Fisher, C. E., Chin, L., & Klitzman, R. (2010). Defining neuromarketing: Practices and
professional challenges. Harvard review of psychiatry, 18(4), 230-237.

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McDowell, W. S., & Dick, S. J. (2013). The marketing of neuromarketing: brand differentiation
strategies employed by prominent neuromarketing firms to attract media clients. Journal of
Media Business Studies, 10(1), 25-40.

Morin, C., & Renvoisé, P. (2018). The Persuasion Code: How neuromarketing can help you
persuade anyone, anywhere, anytime. John Wiley & Sons.

Mayorga Escalada, S. (2019). Netflix, brand strategy and management around the relevance of
content.

Baeza Escámez, M. (2021). Comparative analysis between Netflix and HBO: how they use their
different commercial strategies (Doctoral dissertation, Universitat Politècnica de València).

Pino Silva, J. d. (2017). Communication strategies applied to the promotion of audiovisual

products: the case of Netflix on Twitter.

Carrasco Barea, P. (2019). Inbound marketing as a philosophy of attracting new digital users
and engagement. A success case study: Netflix.

Mayorga Escalada, S. (2019). Netflix, brand strategy and management around the relevance of
content.

Fernández-Gómez, E., & Martín-Quevedo, J. (2018). Netflix Spain's engagement strategy on

Twitter. Information Professional, 27(6), 1292-1302.

Castro González, C. (2020). Content marketing through streaming as a digital distribution

mean: the international case of Netflix.

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