Uber Brand Book

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Identify: ● What kind of business is this?

○ Netflix is a platform that allows viewers to watch TV and movies on demand. Netflix offers viewers streaming access to over 125 million hours of television shows and movies. Their selection includes television series, including Netflix original series, feature films, and documentaries. There are no commercials and their services can be accessed on any Internet-connected screen. Netflix also offers a DVD-by-mail service. Netflix’s passion lies in providing the best, widest selection of online entertainment to its users. According to Internet research company Sandvine, Netflix is continuing to grow as the dominant video streaming service, making it a credible and experienced brand.

● What is the rationale behind producing this brand? ○ Netflix was created in 1997 when CEO Reed Hastings discovered he had a $40

late fee for a VHS rental. He was on the way to the gym, and began thinking about how gyms have a flat monthly rate. He tied this concept to the late fee dilemma, and began to think of a solution to the late fee problem. Hastings started Netflix as a DVD rental service, which has now expanded into the leading website with digital entertainment streaming. Its subscriptions and distribution service began in 1999. Internet streaming became available in 2007. International operations began in 2010. Hastings currently has a net worth of about 1.72 million US dollars. As of May 2015, the brand Netflix is worth $25.5 billion.

○ This brand was produced in order to convenience TV and movie watchers as the media shifts from a physical platform to a digital platform.

● What is the real/perceived need this brand will fill? ○ While the service provided by Netflix has shifted since it’s creation in 1997, the

need Netflix seeks to fulfill has remained the same. Initially, Netflix only provided the DVD mailing service, which sent DVDs one at a time directly to a customer’s house for $7.99 per month. Today, while the DVD mail service is still in place, most of Netflix’s customer base utilizes their digital streaming services. Netflix is designed to fulfill a customer's need (rather, want) for digital entertainment, provided through video content.

● Why have you decided it is necessary to enter the market place? ○ Netflix was the first brand to enter the world of digital entertainment. This brand

also provided the first DVD mail service, and then was the first brand to provide digital media content to its subscribers. Netflix recognized the transition that has

been identifiable in numerous formats, and anticipated that watching movies and television would eventually be no exception to this trend.

● Identify the vision and culture adopted by the organization and how do they contribute to the external image of both the company and the brand. ○ Netflix’s vision and culture adopted by the organization values hard work in a fun

and positive atmosphere. The Netflix work culture has nine specific values: judgement, communication, impact, curiosity, innovation, courage, passion, honesty, and selflessness. Reed Hastings the founder, believes that happy employees are valued employees. Netflix as a company prides itself on having a fun personality. This culture adopted by the organization contributes to the external image of both the company and the brand. This image is more specifically achieved through their social media accounts, which demonstrate their fun-loving mentalities (ex. Tweeting GIFS of funny moments from their shows, accompanied with a witty caption). The attitude and vision of the Netflix culture works relation to the services provided by the brand. Watching TV or movies is a fun, leisurely service that Netflix allows its customers to experience, therefore it makes sense to translate this fun-seeking mentality into the work culture.

Situation Analysis: ● Identify key competitors and determine their positions as well as their relative strengths

and weaknesses. Identify what brand associations they incorporate. ○ Netflix’s biggest competitors are Hulu, Amazon Prime, and HBO Go. There are

many points of differentiation separating these four brands. ○ Hulu is set apart from other entertainment streaming services because it releases

current episodes of airing shows the day after they initially air. Hulu users pay $7.99 each month. If a user wants to watch their programs without commercials, Hulu offers an upgrade for $11.99 each month. While Hulu isn’t a frontrunner with original content, they are creating more of it. There are a few standout releases such as 11.22.63. Hulu offers a smaller selection of movies than other platforms. Hulu also offers a one week trial period. One advantage of Hulu is that it provides shows from a variety of networks. It allows for viewers to keep up with shows currently on air. Some weaknesses of Hulu are that viewers must watch commercials (unless they upgrade to a more expensive plan). Hulu’s buffer can be slow due to traffic of the site. Also, the site can be disorganized and difficult to navigate.

○ There are many similarities between Amazon Prime and Netflix, however Netflix offers a wider range of materials. Amazon Prime provides unlimited and

commercial-free streaming as part of the Amazon Prime membership package which also provides other services, costing $99 per year. While Amazon Prime is commercial-free, occasionally there are short show promos. Amazon is Netflix’s leading competition in regards to original content. Several of their original series have won prestigious awards, such as Mozart in the Jungle and Transparent. They have a smaller selection of shows and movies than Netflix. Amazon Prime offers a 30-day trial period. Another advantage of Amazon Prime is that it offers exclusive content from other networks.

○ Netflix’s final main competitor is HBO Go. At $15 a month, HBO Go offers the widest selection of content. It offers over 1,000 hours of original content, compared to about 100 hours of Netflix original content. HBO Go users can only access HBO-specific content. It can be accessed through the HBO Go website, or through apps accessible on many electronic devices.

○ There are a few approaches that Netflix can take to become the first mover in a new category. While Netflix is already the leading brand in online entertainment, Netflix is fighting for the spot among its competitors for best original content. While Hulu hasn’t been well-known for its original content, in the last year they have increased their production and releases of original content. HBO Go and Amazon Prime have always been strong competitors, and luckily this has not gone unnoticed by Netflix. While Netflix has released well-received original content in the past, they have increased the volume as well as the quality of their original content. If they maintain these tactics, they can be the first mover in this relatively new category.

● Identify the market. What are the trends and opportunities that provide justification for the entrance of your product/service/experience? Identify the target audience. What are their values, needs, and expectations from entrants in this product category? ○ Netflix is a part of two different major markets- DVD delivery service, and online

media streaming. The trend that Netflix initially took part in when it was created was the trend of mail delivery. Delivery services are increasing in popularity (ex. BirchBox), however Netflix was one of the first brands to take this trend on nearly two decades ago. Netflix was also the first brand to offer digital media streaming. This falls in line with the continuing trend of online accessibility. In a world where we can do nearly everything online, from ordering food to hiring babysitters and reading books, online media is no exception. While now it is common for many people to trade in their cable services for a Netflix subscription, Netflix was one of the first platforms to offer this media streaming service.

○ The target audience of Netflix is very broad. While the brand is beginning to expand globally, the primary audience is American men and women. The largest targeted audience segment is people ages 18-24, as this part of the population spends the most time on the internet. Their values, needs, and expectations are met by the offerings of Netflix. They value, need, and expect convenience (due to the busy nature of people in that age range), reliability, customizability, accessibility, and more. These elements are all provided by Netflix. The brand offers convenience and accessibility, as their content is accessible on nearly any electronic with internet access. Netflix offers reliability due to their consistency in formatting throughout their web materials. Netflix understands their target audience, and therefore is able to evaluate their needs and provide what is necessary to fulfill them. As previously stated, Netflix offers two different services: online streaming, and DVD rentals. While there is a much higher percentage of streamers than renters, the option to rent DVDs through the mail service is still offered. Traditional customers tend to be more particular and selective. For example, they likely have a title in mind and don’t want to scroll endlessly through options. Online streamers are not as selective. They appreciate the immediate accessibility of a wide array of options. They are likely to be younger and more technologically savvy.

Positioning: ● Brand Element and Personality Development:

○ For tech-savvy millennials looking for inexpensive entertainment, Netflix is the streaming platform that provides a high quality, customizable user experience for a low price.

○ Netflix offers a large variety of TV shows and movies, including original content, a customizable interface, options for all demographics, for a low price. Netflix creates a strong customer connection through its product offerings, as well as social media.

● Choose the brand elements including: Name ○ Netflix as a brand name holds a lot of positive recognition. From online memes

(#netflixandchill) to groundbreaking shows like Sense8, Netflix is a top of mind brand for at-home, instant entertainment. Additionally, it’s interesting to note that the DVD-rental aspect of the company, which is where it began, is now called “DVD.com, a Netflix company”.

○ The Netflix logo follows a set of rules, which are actually available to the public. On a Netflix website, there are guidelines on how the logo can be used, as well as

the design specifications for various uses. There also images for different uses on the page.

○ The name Netflix also indicates the attributes of the brand. “Net” demonstrates that it is an online-based platform, “flix” tells the consumer that they offer movies and video entertainment.

Marketing Program Strategies: ● Meaningfulness ● Transferability ● Adaptability ● Protectability ● Create the Product Strategy and include the functional and emotional benefits. Create the

price strategy and establish how it contributes to the perception of value Provide details on distribution channels ○ Netflix has recently increased the price for their standard streaming service to

$9.99, in a questionable move. The price increase will affect customers who were “grandfathered” into the $7.99 price, which is what they had been paying when they first signed up for Netflix. This could cause conflict with the new standalone video streaming Amazon Video, offered for $8.99.

● Create the IMC and Digital Strategies: ○ Netflix has moved away from marketing the company itself, and more towards

strengthening associations with its popular original content. The idea is that everyone already knows Netflix, but not everyone knows the original content. So, Netflix’s newest ad campaigns have hints of the red logo, while emphasizing characters from their originals shows and movies.

Leveraging of Secondary Associations: ● Determine what secondary associations can be utilized to contribute to furthering

awareness, meaning, and transferability. Secondary associations can include: the company, direct/indirect channels of distribution, component/co-brands, endorsements, events, etc. ○ Netflix is a huge driver brand. Each of its original shows and movies have a brand

of their own, with Netflix pushing them forward. There are the big shows, like Orange is the New Black, Unbreakable Kimmy Schmidt, and House of Cards, which have the largest audiences and the most support from Netflix itself, but there are also the smaller niche shows, like Narcos, Peaky Blinders, or Daredevil, still extremely popular with their own demographics, but not as well known as

others. By combining the Netflix name with this content, it strengthens the Netflix brand, as well as the content itself. When the new reboot of Wet Hot American Summer was released, it featured many of the original movie cast, but updated. While the movie consisted of actors at the beginning of their careers, the TV show provided a long form version of the cult classic, with the same actors at the height of their careers. So many powerhouse actors were a force paired with the Netflix brand to create a new classic for a new generation, whose parents loved the original. Additionally, there was a “making of” feature which brought the viewers behind the scenes in a way that isn’t typical of its brand.

Brand Awareness: ● Outline the elements that will drive brand awareness. Specifically, what attributes will

your brand incorporate to add value and drive depth and breadth of awareness? Illustrate how these will be measured. ○ The Netflix brand is positioned as the leading low-priced, individualized,

entertainment streaming center. Their objectives in their marketing strategies are to increase their brand recognition, increase subscriptions, highlight their advantages over competitors, and improve their services. One element of brand promotion is the free month trial they offer to potential subscribers.

○ There are several elements available that will provide brand awareness. While in the past Netflix has not relied much on advertising, the brand has been increasing its advertising campaigns. The brand tends to go the digital advertising route, as opposed to traditional advertising, however there is continual development for both areas.

○ Another element used to promote brand awareness is social media. Netflix has a strong social media presence, which is crucial in order for the brand to stay in communication with its customers. The brand consistently updates its Facebook, Twitter, and Instagram accounts. They are adopting the social media trend, #netflixandchill, to their own platforms.

○ Communication about the brand Netflix extends far beyond the content Netflix officially puts out. People are constantly posting their own content on social media about Netflix. This brand has 138 million mentions on social media, in comparison to Hulu with 10 million mentions. The original content released on Netflix has also promoted a lot of buzz on social media. House of Cards has 5 million social media mentions, and Orange is the New Black has 11 million mentions. Instagram has over 11 thousand posts with the hashtag

“onwednesdayswewearorange”, a tie to the original Netflix show Orange is the New Black.

Brand Associations: ● Illustrate the associations necessary to competitively position your product/service/

experience. These associations must be strong, favorable and unique. Demonstrate points of parity and differentiation, as well as favorability in terms of your ability to deliver on the promise of the product and the consumer’s desire to buy. ○ In recent years, Netflix has partnered with companies like Cards Against

Humanity. It wouldn’t be a favorable partnership for many brands, as Cards Against Humanity is very edgy, but the overlap in target audience, as well as similar brand identities, makes perfect sense. Additionally, partnering with news media to sponsor their shows ties in a sense of legitimacy. Additionally, as of September 2015, Virgin America tied in with Netflix to offer Netflix’s entire library for free, on its flights. With Virgin America’s reputation as tech-savvy and progressive, bringing Netflix to its customers is an obvious next step.

Brand Objectives and Outcomes: ● What are your expectations for the brand?

○ The expectations for the brand of Netflix are for it to maintain its position as the most-used media streaming platform. With competitors rapidly developing, it is important for Netflix to develop new product features, as well as promotional strategies, in order to stay on top. In order to remain the dominant brand in this product category, Netflix needs to ensure it is expanding its original content, while simultaneously developing new strategies to promote brand awareness.

● What methods will you incorporate to build brand equity? ○ Brand equity encompasses a variety of variables, such as availability, awareness,

loyalty, preference, familiarity, and more. The brand Netflix is generally received positively by the public, however there is always room for expansion in brand equity. There are several methods that can be utilized to build Netflix’s brand equity. While Netflix is a widely recognized brand dominating its product category, it is important that the brand works to uphold this image. Methods that are currently used must be further developed in order to build brand equity. This includes, but is not limited to, traditional advertising, online advertising, social media promotion, and content generation. Netflix has the opportunity to expand on its public relations efforts in order to further promote brand equity. Netflix can expand on its promotional efforts via events. For example, Netflix can host

screening events when new highly anticipated original content is released. If Netflix continues developing its current efforts and also develops new promotional strategies, its brand equity should rise.

● What are the possible outcomes? ○ One possible outcome for Netflix is that it may fall behind its competitors.

Competitors such as Hulu, Amazon Prime, and HBO Go have points of differentiation that may capture a potential customer’s attention more than the offerings of Netflix. These alternative brands have also been developing their own original content, which has been a point of competition for Netflix. These new developments in other brands may also push them beyond Netflix. Another possible outcome is that Netflix remains at the top of the lineup in this product category. It is possible that Netflix can continue its current efforts of content creation and promotional tactics and remain as the number one brand of media streaming. Finally, Netflix can expand upon its content generation and promotional efforts and further the gap between this brand and its competitors. Netflix can exceed efforts it has made in the past and continue to flourish in its field.

● What recommendations can you make to measure brand equity? ○ Brand equity is measured by its name recognition, customer loyalty, financial

value, and more. While Netflix is a well-known and well-received brand, there are always ways to build brand equity, and measure these changes. Brand equity can be built by expanding integrated marketing communications tactics. If new strategies are implemented, these positive equity changes can be measured by noting increases in subscribers, loyal customers, and revenue, as well as a decrease in competition.

Works Cited

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