Netflix Inc. is an international media services provider and technology company based in America. The company was founded in 1997 and is headquartered in Los Gatos, California, United States (Voigt, Buliga, & Michl, 2017). The company provides a wide range of products and services, including entertainment contents in the form of movies and television studios accessed through computers and mobile devices. Owing to the stiff competition in the video industry, Netflix came up with novel innovations to integrate its service components to the changing expectations of customers (Voigt, Buliga, & Michl, 2017). Like other global companies, Netflix has created service components that are consistent with its brand image, brand positioning in the corporate market, and the company’s perceived value. This paper aims to discuss the current service offerings of Netflix relative to its branding and value positioning, including customer-centrism, consistency, and data-driven approaches. Brand Positioning; Netflix

To remain relevant in the market despite stiff competition, Netflix employed the consistency approach. Netflix began by offering its customers unlimited DVDs which were mailed to the house of a customer. During that period, Netflix was facing stiff competition from Blockbuster, a company that began operations in 2013 (Oliveira & Ribeiro, 2019). To beat its competitor, Netflix investigated the behavior of customers and developed products consistent with customers’ needs. The management of the company noted that where branding is concerned, customer expectations need to be considered (Oliveira & Ribeiro, 2019). This is because integrating the customers’ needs makes a brand rememberable. The company, therefore, had to shift from DVDs to streaming technology as well as availing now original content. Brand Positioning of Netflix Inc.

Netflix introduced its primary brand positioning strategy, the streaming technology in 2008. During the initial stages of streaming technology, customers enjoyed the service for free (Burroughs, 2019). This is because the company was out to test the market readiness for the new service in its line of entertainment. Interestingly, the service was developed in such a way that customers could stream on various platforms, including Roku, PC, and Xbox (Burroughs, 2019). Looking at this service, it is true that Netflix is entertaining, convenient, and accessible. This means that its service offering is consistent with its branding and value positioning. After the development of the streaming service, the company expanded its brand to, a family streaming brand (Burroughs, 2019). It is worth noting that DVDs remain to be the core product, while streaming is treated as a secondary product. Read more

Brand Positioning; Netflix
Brand Positioning; Netflix

Another current service offered by Netflix also is the A/B split testing technique. The A/B split testing is an approach that two versions of web pages aimed to determine which of the two performs best (Koning, Hasan, & Chatterji, 2019). The A/B split testing ensures that all versions are evenly split to ensure that fairness in the results. In other words, the two web pages are split equally to the audience to avoid bias during ranking. The winning web page is then displayed to all users (Koning, Hasan, & Chatterji, 2019). Brand Positioning; Netflix

Another service offered by Netflix consistent with its brand and value positioning is the integration of social media platforms. The company began with Facebook, where it has more than 61 million followers (Pérez, 2020). Netflix has posted more than 1,000 times, and 90 percent of the posts are videos, and 6 percent are images (Pérez, 2020). The company added more than 11 million followers in one year (Pérez, 2020). Netflix has a strategy to entertain its customers through witty Facebook posts as part of its brand and value positioning. Interestingly, Netflix is open to complaints aired by its customers and responds promptly. On Twitter, Netflix has 5.27 million followers and 13 million followers on Instagram (Pérez, 2020). The only challenge with using social media platforms to promote its brand and value positioning is that people who watch the videos do not share with their friends fearing that they might not enjoy the film.

The film production of Netflix is also consistent with its brand and value positioning. In 2013, Netflix resorted for more straightforward design following an uproar from consumers. Despite going through a series of testing, Netflix’s website versions did not pick well. The consumers’ demand had shifted from complicated versions which won over the years to simpler designs. It is during the same year that Netflix introduced the original series of “House of Cards” (Voigt, Buliga, & Michl, 2017). This was the beginning of the company’s involvement in film production. The value proposition of the company is derived from understanding the needs, wants, and desire of customers (Voigt, Buliga, & Michl, 2017). Netflix is very keen on the behavior of its customers and spends more to study their needs and expectations. Brand Positioning; Netflix Read more

The adoption of consumer-oriented brand strategy is another service that is consistent with Netflix’s brand and value proposition. The company is committed to providing its customers with the best experience. This is partly due to the use of A/B testing approach. Reviewing the needs and expectations of customers helps Netflix in making informed decisions regarding brand positioning and making the streaming service enjoyable to everyone in the family (Pérez, 2020). In other words, Netflix focuses on areas that matter most for survival in the competitive market. This means that the company has shifted its focus from being company-centric to being customer-centric. Netflix has a unique way of focusing on a Niche Market (Pérez, 2020). In other words, it focuses on small customer segments and ensures that their needs and expectations are met satisfactorily. Netflix began as a small company and focused on small customer segments from which it grew. Brand Positioning; Netflix

In conclusion, the success of Netflix company is associated with its service offerings consistent with its brand and value proposition. Netflix employs novel innovations to integrate its service components to the changing expectations of customers. Online DVDs remain to be the core product of the company despite a shift to the streaming technology. The services provided by Netflix have been consistent since the company was founded. That is one of the ways through which the company’s services match its brand and value positioning. The other strategies include the streaming technology introduced in 2008; the A/B split testing technique, integration of social media platforms, Netflix’s venture into film production, and the adoption of consumer-oriented brand strategy.

 

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