I.

Current Situational Analysis

Netflix
Segmentation
Netflix's business unit is very alert and always shows signs of change in innovation and buyer
behaviour. There are many ways to segment the market in the video streaming business, but the
nature of the customer varies greatly over time due to age, income, geographic area and viewing
preferences. No one in this industry is exactly with the same property and same productivity.
Netflix has done a great job of covering all consumers. Because their companies rely almost
exclusively on streaming data on the Internet, they can reach people around the world. One of the
shortcomings for Netflix is that the customer requires a consistent high-speed internet. Therefore,
in order to overcome this, Netflix provides users with the ability to view products through
physical media. That is a DVD. They are able to cover almost everyone in the world because
they divide the product into two areas; the Internet and the post. This allows them to optimize
their profits and sales because they don't ignore any users. But the service of physical media is
majorly restricted to America. So, this shortcoming is yet to be dealt in global market.

Geographic characteristics
It includes detailed information about the company's operating area. Netflix recently extended its
services to more than 190 countries worldwide, leading it to the competition. While expansion
can provide opportunities for huge growth and profit, it is a complex move that has met many
challenges. One of the challenges is a different legal and regulatory environment, such as
negotiating content transactions and obtaining geo-specific licenses. Therefore, each place has a
different culture, customs and habits; attracting the taste of each local person requires extensive
and expensive research. While high-speed Internet access is available in many countries, but the
expansion is limited to urban areas that support streaming technology. Netflix is a household
name in the United States, and rebuilding the reputation and trust of each geographic region
which proves to be a major obstacle. Netflix reported in January 2016 that it had 74 million
users, of which 44 million were in the US. Maintaining customer satisfaction in key markets is
key because it provides financial stability for expansion.

Demographic Characteristics
Netflix is considered to be a premium service and therefore the company segments its audience
with enough disposable income to afford a premium service which is enriched in quality.

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Netflix's customer base is diverse in many ways. Netflix offers a variety of titles, including
children's shows and thrillers, as well as many other age groups. Age-based potential markets are
infinite; however, older people who lack technical department knowledge prefer older school
observation methods such as cable television.
Both 18-24 year old males and females exhibit the greatest use of online and streaming;
approximately 3.7 hours of video content per a week (Online Streaming Video). People in this
age range represent millions of potential customers. Netflix advertising in 2018 depicted families
viewing Netflix in modest suburban homes and in 2019 Netflix offered children's programming
and video games.

Psychographic characteristics
Psychographic characteristics, also known as psychographic segmentations, include the core
identification of the end-users. These characteristics could be the lifestyle or personality of the
end-users

Lifestyle
Netflix is focusing on the groups that need to relax after a hard day of work, or just groups that
seek for relaxation. This group likes to watch series or movies for their relaxation. This identifies
some end-users to have a life with need for relaxation. Another lifestyle that some end users may
have is the one which are fans of some movies/series genre, they love to watch some specific
genre and that is where the Netflix service is based upon.

Personality
Netflix is an online streaming service that is programmed to search and find the perfect movie or
series for the users. Mainly this means that any kind of personality preferences is used to
determine the right choices for the users. A potential user can have various personality
characteristics. They might prefer mind blowing
Netflix is an online streaming service that allows users to search and find the perfect movie or
series. This primarily means using any type of personality preference to determine the correct
choice of the user. Potential users can have a variety of personality traits.
But we can say that the customers who does not like to sit ideal or keep themselves continuously
busy in something or the other can be targeted by Netflix. Netflix provides them a platform to
pass their time with various options just available at a click.But we cannot generalize any
personality for the customers of Netflix.

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Behavioral
If we look at the customers in India, Netflix being a premium Internet based TV, it is considered
and pride and matter of status for the ones who own it. Moreover, Netflix has different packages
for different requirements.

Customers are more likely to purchase the Netflix subscription during vacations. Because that is
the time when students are ideal and they need some entertainment sources for passing their
time. As the major subscribers of Netflix are teenagers and young population, the maximum
customers can be attracted during vacations or holidays.

TARGETING
While India is likely to see tremendous growth in internet penetration and smartphone usage, the
majority of this growth is likely to come from tier II and Tier III cities and rural areas, because
these were the places which were yet deprived of these facilities. These regions do not have a
very high disposable income and are less likely to pay a high monthly subscription for services
such as Netflix. However, Netflix’s strategy in the country has been to target the higher income
segment with premium shows, better quality of videos, coming at a higher subscription rate.
Moreover, company is targeting the cities where internet speed is high and consistent.
But, recently, Netflix has also come out with its mobile based services which are quite cheaper
when compared to its other service packages. This is targeting two kinds of customers. One, who
want to watch Netflix but at cheaper cost and secondly the customers who watch series or shows
mostly on their phone. So, this plan would attract more such customers.

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Of all Netflix users, 31% are between the ages of 18 and 24. Users between the ages of 18-34 are
30%-38% more likely to subscribe/use Netflix than any other age group. The report also
recommends the use of Netflix owners, most of whom either go to college or have graduated
from college. This means that the biggest target market is from young people who are or have
already received college education.
Netflix, the world's leading streaming service company, is selectively choosing regional shows in
India, and does not seem to be keen to expand to regional programs at the speed of top
competitors such as Amazon Prime Video.

POSITIONING
Situating Customer’s top need is comfort, reasonableness, speed, personalization of the video
spilling and high choice of titles. Netflix go for being the top and decision for its clients by
giving a more customized, quick, helpful, high determination but then moderate internet spilling
administration than the majority of the contenders.
In order to achieve good positioning, it supports a variety of advertising and social media
activities. #LifeWithoutNetflix Social activities are mainly to share with users the Netflix they
like and the wonderful stories they can find on the service. They want to build communities
among Indian audiences to help them discover what they like and understand their needs in the
entertainment experience.
Netflix also attracted some interest from Indian audience’s watching taste. Currently, Netflix will
soon see Indians like programs that are very similar to other markets, while top shows are Netflix
Originals such as Master of None, Narcos, Marvel's Daredevil and Marvel's. Analysts and brand
consultants have repeatedly viewed Netflix advertising as the perfect combination of problem-
solving and exciting stories.

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PERCEPTUAL MAP

For comparing Netflix with its competitors, I have selector two factors, that according to me
affect the decision of buyers. First one is price. We all know price plays an important role in any
product or service. This internet-based TV is a kind of monthly expenditure, so price factor is
very crucial. Second factor is Original Content. This is a factor which differentiates one company
from other.
Netflix has positioned itself as a premium Internet based TV. This is specifically for Netflix Web
based service. If we look at Netflix Mobile service it can be positioned at mid-price segment.
Moreover, we know that, Netflix is known for it original content, thus has gained a competitive
edge against other competitors like Hotstar, Amazon Prime and Eros Now.

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Situational Analysis of Amazon Prime

Segmentation
Geographic segmentation
Amazon covers around 100 countries including both urban and rural population. They sell digital
products where merchandise sale is difficult and it focuses on developed areas and is slowly
working on getting the rural areas.

Demographic segmentation
Amazon mainly focuses on those people who have internet and they age group on the bases on
which they segment the market are from above 18 years and are both males and females they
majorly focus on students as more of younger generation is shifting from traditional watching
system to online. The life cycle stage is single, full-nest, empty-nest or solitary survivor people
segmented by classic family life cycle.

Behavioural segmentation
It focuses on personalization and customer loyalty. The benefits that it provides to its customers
are widest range of products, more convenience of online purchasing, faster delivery, more free
videos, songs, books etc. which makes customers feel special than others. Low pricing also
encourages factor for online purchase.

Psychographic segmentation
It focuses on personalization and customer loyalty. It focuses on all social classes. It keeps a
modern and dynamic image by renovating site design frequently.

Targeting
Netflix users are targeted based on the segments they correspond to. While most promotional
strategies are aimed at appealing to the segment, Netflix marketers make sure that the customers
are not completely unaware to the other characteristics the portal offers that can be used as an
added USP for every individual.
Targeting approaches used by Netflix are:
1. Millennial individual is targeted by showcasing the 'no advertisements' aspect,
2. Adults aged around 35-50 years are promised quality videos streamed to perfection,
available at reasonable prices.

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 3. Adults aged around 35-50 years are promised content up to 4 screens thinking that these
target audiences will be having family and thus more screens are required.

Positioning
Positioning is important for every business venture because transparent and advantageous
position in the mind of the customers leads the business towards success. Advertisement is a very
useful aspect and Amazon is developing various advertisements to win the hearts of the
customers especially towards electronic products.  Amazon has also selected the right
distribution channel which is an important aspect through which the company can get a valuable
position in the market. Amazon also offers good quality product at affordable and cheap price.
The positioning strategy is shown in the diagram below.

Amazon prime provide greater value to its customers by combination of extraordinary

convenience, instant access and comprehensive selection. These were some competitive
advantage but the most important advantage was of low prize than other competitors. We can
conclude from this that Amazon provides both value and low price to the customers. They are
positioning themselves different from other streaming channels as they are focusing more on
local content and smartphone video consumers. They also give added benefits to the prime
memberships so as to attract more customer base. Amazon prime video puts the viewer in
command. This can be reflected in their positioning as “India ka Naya Primetime” in this they
talked about the largest and latest library with exclusive content. It talks about how this sets you
free and let customer decide where and when to watch.

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Amazon Prime IMC Tools:
 Advertising:
With an ability of reaching masses and proving itself to be one of the cost-effective ways
of promotion, advertising is one of the most important tools used by a marketer in an
IMC program. When Amazon rolled out its Prime Video service globally at the end of
2016, it focused India as one of its key markets. It launched many TV ads for catching
attention of its target audience to its indigenous show called “BREATHE”,
“Comicstaan”, “InsideEdge”, “Mirzapur” etc. It placed the TV ads in the prime-time spot
during the IPL season to attract a greater number of youths.
 OOH:
It launched it’s suspense thriller show “BREATHE” through a massive OOH campaign in
Mumbai and Bangalore. The campaign creatively depicted the intensity of show through
innovations, use of impact sites like gantries, Free on Boards, etc. The campaign was
made pervasive by using formats like Airport media, metro pillar media, media at
corporate parks and malls.
 Internet/Digital Marketing :
Amazon Prime ran its digital marketing campaign by running youtube ads, in-app
banners, google adwords i.e ranking it’s website on top of the google search page and
also it had made use of google display ads which showed it’s ad on the different websites
in the image form.
 Sales Promotion :
Amazon offered its Prime membership subscription for one month free as a trial for the
new users. It also collaborated with Vodafone, where it offered the yearly subscription
free on a purchase of specific postpaid plan.
 Publicity :
With its original shows like Breathe, The Family Man, Mirzapur, Four More Shots,
Comicstaan and more, it had been featured in several news channels. Also there have
been interviews of the cast present in the film. Amazon’s ‘India Ka Naya Prime Time’
campaign also caught the attention of people and have been in the news for a quite a
while during its launch.

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 II. Detailed IMC Plan

CREATIVE BRIEF

IMC Objective
1. The campaign will focus upon increasing the number of users by communicating the
benefits and features of the service also it will provide after sale assurance to the existing
users and increase their user rate.

2. The campaign is designed to promote the feeling of owning a Netflix subscription. It will
aim at positioning Netflix as a quality content provider which is worth the investment.

3. The campaign is focused upon changing the attitude and belief of the non users that
Netflix is expensive because it is a quality content provider.

4. The campaign will aim to trigger desire and action among the non- users to purchase the
service.

Brand Perception
Over the years, slowly but surely, Netflix has morphed into an original content machine. At the
same time, they have honed their brand content strategy into an incredibly sharp tool. Netflix has
a distinct brand voice that fits with the main audience they serve and the content they create.

Target Audience
For the purpose of this campaign our target audience will be Indian males and females within the
age bracket of 16- 50 in the upper middle group who require quality and originality combined
together. The target audience is educated and has access to internet and devices to view Netflix,
the income and living standard of the target audience is also considered to be high.
Through this campaign we want to target the consumers in the consideration stage of the funnel
and influence them to develop positive attitude towards the service and take action to purchase it.

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Key Consumer Benefit
The price of Netflix is justified because of the quality, exclusivity and originality of the content
available. The price is a small amount to pay in turn of the benefits and worthiness of the brand.

Product Benefits
 Simple and easy to use
 No commercials
 Original programs
 You can download the content and watch it offline
 Different membership plans
 Fantastic experience

Personal Media Network

Considering the target audience we will choose the traditional medium of television supported
with promotional tools like social media and PR.Major focus will be on television ads because it
still is the widest covering media and the company wants people to shift from television viewing
to OTT streaming. Still most of the tech savvy audience will have access to digital platforms so
we will also take support of social media platforms like Instagram , twitter and YouTube to
spread the message.

Creative Strategy Statement

The campaign will influence the non users to change their perception of the brand and help them
to mentally justify the price of the service by giving external stimuli.
Tone
The campaign will have Conviction tone in it where it will try to develop a mental disposition in
the consumer to buy the product. The communication tone of Netflix will also be sarcastic , witty
and humorous so that the customers could relate more and the brand stays in trend.
Appeal
The campaign will have rational appeal in its communication of the message. We will try to
explain to the customers the benefits and features of the service. We would also use
irrational/emotional appeal to confront the personality of the target audience as well as make the
message more relatable.

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Other Requirements
Any advertisement should include the Netflix logo and implementation of theme should be done
via taglines and tags. The message should be in lines of the values of the brand and should
communicate the worthiness of the service.

Campaign Timeline
We will run the campaign for two months starting from April 2020 till end of May 2020. We
believe that during the summers the people looking for content to kill their time and enjoy
vacations will be a good opportunity for the brand to attract them and appeal to the non users to
consider the benefits of the service. The proposed timeline is also viable because of event like
IPL where the brand can advertise in between commercials to increase the reach and frequency.
Netflix can also capitalize on this opportunity by introducing new shows and movies which will
attract new users.
We recommend even spread of expenditure but tend to spend extra during the beginning of the
campaign to create buzz about the service and then reduce the frequency but not eliminating it.

Budget
The current global marketing budget of Netflix is estimated to be $417million, therefore the
proportional marketing budget for us would be $5million .
Advertisement on television will constitute of 75% of the total budget as it is the most wide
spread media with largest coverage in India, considering that the target group of the campaign
falls within a big age range we need to use more mass media to reduce the per head cost and
remain within the budget therefore a big part of budget is allocated to television advertisement.
The remaining quarter of the budget will be distributed as 15% for PR activities and 10% for
social media marketing.

Creative Execution
Advertisement
Here in the company will try to have a combination of appeal including informational and
emotional appeal. The tone of the conversation would be sarcastic and witty with the aim of
conviction.

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For the advertisements we aim at using slice of life theme so that we could make the
advertisement more relatable to the customer.

Ideas for creative execution

 NETFLIX IS EXPENSIVE because Movies on big screen with samosa and corona are
not worth it.
(The advertisement will show a guy zooming in from an unhygienic environment and
zooming out to his clean home and Netflix) Ad to feature preferably on movie channels
when some new Bollywood/Hollywood movie is being broadcasted. Channels like Set
Max and Movies Now

 NETFLIX IS EXPENSIVE because Original content with soda and ice cube is better than
ads on YouTube.
(The advertisement will show a girl getting irritated when an ad pops in the middle of a
movie/show/anything). Ad could feature on sports programs like a Football/Cricket
match. Channels like Ten Sports and Sony Sports.

 NETFLIX IS EXPENSIVE becausefine recognizable content is not on Prime.

(The ad will show random non rated movies scrolling with a blue background on the left
half of the screen. The right side with top grossing films available on Netflix being
scrolled with a red background). Ad to feature preferably on movie channels when some
new Bollywood/Hollywood movie is being broadcasted. Channels like Set Max and
Movies Now

 NETFLIX IS EXPENSIVE because we do not like your mobile data interrupting your
binge watching.
(The ad will show people viewing popular TV shows on Netflix while quickly change the
places of viewing – train, bus, airplane, office, etc. highlighting that people can download
their content and view later with or without internet). Ad could feature on youth
entertainment channel MTV during FCT of popular shows like Roadies.

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Social Media

Why corona and spill when you can Netflix and chill” this ad will be posted on every social
media sites as we have taken the current issue that is the matter of concern for the people all over
the world and tried to attract the customers by using the emotional appeal of the people as they
are scared of going out and this could benefit the video streaming sites as the message is trying to
say risking the life is more expensive than a subscription. This will be posted as soon as we
begin our campaign.

In another advertisement we are comparing going out on a movie and watching movie or other
series that you like at home. This ad will be posted at the time of holidays on all social media as
at that time people more often goes out for movies so this would attract teenagers which are

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having holidays and want to enjoy whole day long and get more enjoyment at lower rate as
compared to going movie for a day and incurring huge cost.

Public Relations
For public relations we have thought ho conducting interviews with the celebrities and asking
them the irrational reasons why they use Netflix and what are their favorite shows. We can also
make short clips where Netflix’s characters come to life and advice the audience.

Media Plan
We will not focus on other traditional media like banners and direct marketing but most of the
budget is allocated to television advertisement with the support of PR and social media
marketing considering the main target audience is tech savvy and has access to such platforms.
For television we recommend pulsing media schedule with heavier advertising in the months
before the premiere of any Netflix original series. Researches show that the more the people
watch TV more likely they are to stream Netflix and the objective of the communication is also
to convert non users into users it’s a good reason for running the YouTube spots on television.
Based upon the availability of target audience and viewership of the channel we have decided the
following media vehicles for the cause:

Top Hindi Movie Channel used

• Sony Max (Includes IPL)
• Star Gold- On weekends
• Zee Cinema- On weekend’s prime time
Top English Movie Channel used
• Star Movies
• Sony Pix
• Movies Now

Top Sports Channel used

• Sony Network
• Star Sports

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Other Channels used
• MTV
• 9XM
• Discovery

Social Media Advertising

• Twitter
• Instagram

Types of Marketing Communication Appeal

• Slice of life
• Product comparison
• Humour appeal

Reach and Frequency

Through this campaign we aim at reaching 90% of the target audience and communicate them
the message. For frequency we suggest that even round spending and visibility during the period
with some extra expenditure during the early period to create buzz about the campaign.
We would like to increase the frequency of advertisements during the prime time which is 8-10.

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