Netflix Marketing Strategy

Netflix should have explored options that allowed their customers to be minimally affected by the transitions needed to grow the business. Propose alternatives for Netflix are as follows:

· Implementing an attractive advertising campaign to help drive customers towards the lower cost internet streaming delivery of movies.

· Creating a subsidiary of Netflix to run the mail delivery method of DVD without changing into a new name.

· Implementation a standard price increase for all customers without any changes in the unlimited access and optional delivery methods.

These alternative approaches could have collectively or individually allowed Netflix to make the changes need to drive revenue and profit, while keeping customers happy.


The recommended course of action for Netflix would be to use a combination of all three alternatives and roll them out to their customers in a seamless fashion that ensured that there was no interruption of service, no change in delivery options and only a nominal increase in monthly payment. Clear communication would be essential in the delivery of these changes and a strong focus on the fact that their customers would not be losing any features that they currently love.

Ideally the most important change that customers would need to be notified of would be the cost increase. Netflix could counter any negative backlash from this by explaining to their customers that in order to provide the continued service the price increase would be necessary. This necessity could be explained in a chart that breaks down the cost and then compares the Netflix program to the cost of traditional video rental methods. Reminding the customers of the low cost convenience that got them hooked on Netflix in the first place will be essential in the successful implementation. There could be a 90 day hold of effectiveness, to allow customers the time needed to adjust their budgets to the new changes.


Implementation of this change would need to be highly focused on clear and concise communication and presenting a valiant effort to help customers see that a price increase in necessary, but they are not losing any of the features that have made them loyal Netflix customers.

AsAp teachers!

you were going to send me a text message with that information?
Sent from my iPhone

On Jul 27, 2013, at 9:35 PM, Caroline Echeverri wrote:
Hello teachers
here are some recommendations
question #4: explain in more detail the level of competitiveness, give reasons why they are less or more competitive
Netflix: use details to explain such as option one could be…
another option ….
the third option….
the optimal solution may be….
be specific and to the point he is asking for content not so much wording.
I m thinking to meet by phone around 11:30 am can you?

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