Marketing Plan - Netflix in Canadian Hotels

Executive Summary

Enclosed in this report is the marketing plan for Netflix as it introduces its video streaming service into urban hotels throughout Canada that are frequently visited by business professionals. Our marketing strategy will be focused on creating an appeal for our target market, and thus generating brand awareness and market share.

This plan includes an internal analysis of Netflix outlining its strengths and weaknesses as a service, and an external analysis examining the opportunities and threats attached to pursuing the new market of streaming its service in hotels. As well as analyzing these factors, we also examine macro environmental factors such as political, environmental, social, and technological factors. The main macro environmental factor that directly affects Netflix's penetration into this market is the apparent decline in hotel pay-per-view(PPV) movies in 2009-2010. This trend gives Netflix an opportunity to enter the hotel market, as customers no longer want to pay high prices for the PPV service.

A competitor analysis was also conducted, showing that Netflix's three main competitors in this market are PPV selections, complimentary DVD hotel services, and the internet as a movie downloading tool. After analyzing the environment, a target market was formed through segmentation which honed in on business professionals who stay in urban hotels frequently. With this information, an objective was created to expand Netflix's services to 100 hotels in urban Canada in one year. Through our analysis, we will outline a plan that deals with these issues, as well detailed plan in regards to how we will market our product to appeal to our target market.

In addition, we have conducted a cost/benefit analysis that depicts the potential costs and benefits arising from this venture. Some added costs include labour, and travel expenses, whereas the associated benefits are both tangible and intangible in nature such as, an increase in subscribers and awareness.

Finally, we have an analysis of the 4 P's which further outlines our product, where it will be placed, as well as how it will be priced and promoted to reach our target market. Although our target market is business travelers, our promotion of our product can't neglect the necessity of hotel chains which is the channel of distribution that will be getting our product to the consumers. In turn, our promotion will attract both business travelers, and hotel executives. The place where our Netflix service will be located is in urban Canadian hotels. The reason we have chosen urban is due to the fact that most travelling professionals conduct their business in major cities.

Table of Contents

Heading:

Introduction

Analyses

Marketing Objectives

Action Plan

Implementation & Evaluation

Appendices

References

Page Number:

......................................................................4

..................................................................5-9

.....................................................................9

.............................................................10-12

...................................................................13

.............................................................14-16

...................................................................17

Introduction

Our vision is to introduce the Netflix service into hotels located in urban areas of Canada. By expanding our service to the hospitality industry and achieving more awareness of our product, we plan to increase our subscribers and thus, our market share. Our target market consists of middle-aged business travelers, and we will promote our service in a way that appeals to this segment. However, we first need to concern ourselves with how we will attract our channel of distribution to reach this target market- this channel of distribution being hotel executives. One way we will appeal these executives is by presenting evidence such as the decline in hotel PPV, coupled with the offer our service at a reduced price (under the assumption that the hotel would purchase the Netflix service in high-volumes). There are some issues that we will need to overcome by introducing Netflix into hotels, the first being technical difficulties which can arise especially if hotels cannot provide a fast Internet connection. Other issues include established competition already in this market, as well as the fact that Netflix is not very well-known in Canada which is illustrated by the lack of subscribers.

Analyses

The following section will internally analyze Netflix's overall strengths and weaknesses for their company as a whole as it has just entered the Canadian market, and also analyze external factors that it will face when entering the Canadian hotel market. The following also includes a PEST analysis which will consider the macro-environmental factors that effect the company in this particular segment of the market.

S.W.O.T. Analysis

Advantages Disadvantages

Internal Analysis STRENGTHS

Convenience

Allows customers access to various titles all without leaving their home

Low cost

Offers an affordable cost of $7.99/month

Ease of use

Titles separated by genre, easy to navigate through service

Includes movie recommendation feature based on usage history

Free trial

Offers the ability to entice new users to test out the service WEAKNESSES

Lack of selection

Selection has been reported to include older and less popular content, with no new releases material