Client:                                    Netflix

Project:                        Netflix for the Individual

Background/Overview:

Netflix is an online subscription service ($7.99/month) that allows its members to “watch unlimited television shows and movies over the Internet to their TVs, computers and mobile devices as well as receive DVDs and Blu-Ray discs delivered to their homes” (Netflix, Inc. SWOT Analysis 2011, 4). Although Netflix has gained a tremendous amount of subscribers, they are facing competition from Hulu Plus and other television network websites (CBS, ABC, NBC) that attract viewers with their newer content. Netflix is currently attempting to phase out the DVD service, so it is important to maintain the current customers who use instant streaming.

Objective(s):

The purpose of the advertisement is to entice more membership for Netflix among young adults. By promoting the service with a wider selection of viewing material, it would be an attempt to regain lost customers and maintain current consumers. The advertisement would inform and communicate to consumers on maintaining the affordable price and improved recommendations for the individual.

Target audience:

The target audience of this advertisement would be for educated viewers between the ages 18-26, primarily college students who think they are getting an affordable deal. College students have more access to a laptop than a television and value convenience and instant satisfaction. With a monthly fee of $8 and an abundance of TV shows and movies, Netflix would be a reasonable priced investment for college students with a budget, especially if they are getting “more bang for their buck”.

Consumer need/problem:

This advertisement would attempt to fix the number of lost customers who do not think or doubt $7.99 is a good deal for online instant streaming. The advertisement is used to maintain the loyal consumers and motivate new members to join because of a wider selection and better, individualized recommendations. The reassuring advertisement appeals to the consumer both rationally and emotionally ¾ by reinforcing the same price and ensuring more video content and accurate recommendations.

Positioning:

The main focus of this advertisement is product use, which separates Netflix from its competitors. Netflix has better selection at a fixed rate of $7.99 and improved recommendations for the individual than the average competitor. With better and improved recommendations, the program would know more about the consumer than himself/herself. He/she will not have to waste time trying to find another TV show or movie to watch. The personality of the brand relies on how accurate the recommendations are for the viewer. The specific strength that needs to be reinforced is the inexpensive price and the wider range of instant streaming video content.

Placement:

Netflix advertisements will be on video websites that are popular among college students such as Youtube and Vevo. This advertisement would be online, and it will primarily be in linear online video ads, which is presented in-stream typically displayed before, during, or after other video content.  Also, this ad would run year-round, but will see an increase in the ad during winter breaks and summer when students are searching for a source of entertainment.

Tonality:

The tonality of this advertisement would be a friendly, favorable message that appeals to college students. The copy would read “Affordable Price”, “Free One-Month Trial Offer” and “Wider Selection of TV shows and Movies” with a $7.99 sign somewhere on the advertisement. The ad would display other things that a consumer could buy with $8 and compare the one-month Netflix rate; this would affect the consumer because they can see how cheap Netflix is in comparison. The short-term emotion impact would be to try the free trial period for a month with the “nothing to lose” mentality of the consumer. This action would contribute the long-term because with better suitable recommendations than before, consumers are more satisfied with the product at a decent price.

Citation

Datamonitor (2011 October). Netflix, Inc.: SWOT Analysis. Retrieved April 9, 2012 from Business Source Complete.

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