Stan Australia Versus Its Competitors - Case Study Example

Stan Australia Analysis Student's Name Institution's Name Date Stan Australia Analysis Introduction Stan is an Australian based streaming firm owned by StreamCo; a Nine Entertainment Co. joint venture. Stan provides unlimited viewing subscription of selected TV shows and movies (Hopewell, 2014a). The company was founded after StreamCo realized that Australians were utilizing a lot of Netflix (American based streaming company), through VPN services based in US and supplementing it with a number of pirated content. The idea was to develop a cheap service with a huge content for Australians. Stan was launched on 26th of January 2015, which is Australian day. The company's major competitors include the two major Australian streaming companies that include Presto, Quickflix, and the American founded company known as Netflix (Joel, 2015). Stan services are accessible through Android and iOS apps. Therefore, users of Android can view their TV content through the Chromecast dongle, whereas, iOS enthusiasts are enabled to stream content by Apple AirPlay to the Apple TV. Service on a Mac can be accessed through Firefox or Safari. At the moment, users can connect one account with up to six devices. Stan does not have any available stand-alone application on consoles or TVs at the moment. However, plans to implement this service are underway. Stan has managed a number of good deals with a number of television companies that include World Movies, SBS, Viacom, ABC, BBC, MGM, CBS, and Sony Pictures Television to make its content line-up. This makes Stan the strongest TV of the three live TV services in the country. The company is also planning on integrating locally-produced quality content to boost Australian production (Burgess, 2015). Stan versus its Competitors Stan has three major competitors that include Presto, Quickflix and Netflix. Stan has employed a number of strategies that will enable it to outshine its competitors. One of the major strategies is providing more diverse contents at a cheaper cost. Stan was basically created to compete with Netflix, which is an international streaming company (Hopewell, 2014a). It has managed this in terms of the content they provide and the monthly service cost. Stan provides its services at $10 per month while Netflix provide its comprehensive package at $14 per month. Presto offer its services at $14.99 per month, while Quickflix offers its services at $9.99 but when an extra service of DVD is integrated, the cost increases to $19.99. Therefore, Stan has the best offer in terms of price. Stan can be viewed in number devices just like its competitors. Presto is currently permitting viewing in iOS devices and a few Samsung based Android devices through Chromecast. Moreover, Presto account contains a limit of four devices. On the other hand, Quickflix is directly available via Sony, LG, Panasonic and Samsung smart TVs. Moreover it is compatible with Xbox 360, PS3, Xbox One, and PS4 (Burgess, 2015). Quickflix is also accessible on a range of tablets and smartphones that include Samsung and Google Androids, iOS, Windows and Kindle Fire phone. It can as well be linked via media devices that include Oppo, kobo, HUMAX and TiVo. Therefore, Quickflix can be termed as the company with the best range of connection devices among the four. Netflix on the other hand is accessible on HiSense, Philips, Panasonic, Sony, LG and Samsung smart Televisions. The company has as well made a deal with Australian Fetch TV provider to permit an app directly on the top box. The connection of Netflix via Fetch TV application provides a new accessibility option and thus, making Netflix available to a huge number of Fetch TV subscribed Australian viewers. The company will also be distinctive in providing apps on gaming consoles (Burgess, 2015). Although Stan has three major competitors, its main aim of establishment was to address the Australians' desire to have a more diverse content, which made them to embrace Netflix. In this regard, Netflix can be considered as the Stan's major competitor. Based on the above analysis, Stan is far much behind Quickflix and Netflix in terms of devices it can be accessed through. Unlike Netflix, Stan has still not managed to link its accessibility to any television in the country. In this regard, its viewers must have an internet connection and defined devices to be able to view its content (Burgess, 2015). On the contrary, Netflix has managed to be a step ahead by a ensuring its connection to one of the most popular TV station in the country. However, Stan has a great advantage of being the only local companies that can manage to stream extensive at a cheaper price. Being a local company, Stan will have an advantage of streaming all its programs in the country, unlike Netflix whose content must be reviewed and be licensed. Netflix experiences limitation on what to stream and this must be further limited with launching of Stan, which can manage to stream most of the programs and content Netflix has been streaming into the country. This is normally a strategy employed by most countries, including Australia to promote expansion of local companies. If this happens, Stan will instil a very stiff competition to the two local companies' competitors (Barrett, 2015). Effectiveness of Stan Launching and Commercialization Stan was developed after a comprehensive analysis of the Australian streaming industry. The researchers established that there is a huge number of Australians going for the only international streaming company in the country. This behaviour was related to the extensive range of the streaming content the company provides to its customers (Peter et al., 1999). At this time, Neflix had registered about 200000 Australian to its service. This huge number was despite of the high charges that were associated with Neflix services as compared to other local streaming companies. This was a clear indication that most Australian were interested in extensive content that incorporated international content. The company's analysis also realized that the two local streaming companies Presto and Quickflix were much more expensive than the services they provided. Presto was very expensive and was offering standard definition streaming with only 100 TV titles and 1500 films for a monthly charge $14.99 (Kidman, 2015). Although Quickflix normal streaming was much lower as compared to Presto, its DVD package was much more expensive. Its monthly charges as a standalone service was $12.99, while its cost after it was integrated in the normal streaming was $19.99. This was much higher as the StreamCo researcher could have expected (Boyle, 2015). Based on this analysis, StreamCo established a great need of introducing a new streaming company that addresses the Australian needs. This company was intended to provide extensive streaming content with an integration that caters for all kind of viewers. Moreover, this new provision also intended to address the cost and quality factors. It also intended to broadcast local productions to be unique from all other streaming companies that operated in the country (Vaida & Ioannis, 2012). The StreamCo Company had Australian in mind and thus, their intentional was very ethical for it was based on protecting Australian citizens from monopoly exploitation. It also intended on challenging the locally based streaming companies to upgrade their services to suit international level. This way, these companies would be able to address the Australian's needs as required. Therefore, Stan launching and commercialization was a very effective move for the StreamCo. Stan Marketing Strategy Stan is a new product in Australian market and thus, it must employ a number of distinctive strategies to be able to penetrate into the Australian market. One of the tactics that Stan employed to achieve this is creation of customer awareness (Pickton & Broderick, 2005). StreamCo created customer awareness by announcing the release of Stan through Australian media ahead of time (Nine Entertainment Co, 2014). This followed the Netflix announcement of its interest to introduce an international entertainment services in Australia. The StreamCo announcement after the Netflix announcement overshadowed the Netflix (Mulhern, 2009). This made most Australian to look forward to Stan launch as compared to Netflix expansion. This was a good strategy to capture consumers' attention (Wakolbinger, 2013). The description of the product and the changes it aspired to make in the local streaming industry increased consumers desire to welcome it in the market. Stan launching was also made a very huge and important event in Australia. The service was initially planned to be launched on February of 2015. However, this was changed and the launching was done during one of the most important Australian public holiday on January. This ensured that the service launch received similar attention as the Australian Day. Thus, Stan is considered a national affair, an aspect that ensured that the product is well known to all Australians in details (Hanssens et al., 2009). During the launch, StreamCo leased more details regarding the service. This includes the fact that it will be offering more than 750 titles. Others included available shows and TV stations, devices in which the service can be accessed, cost and future improvements. This national broadcasting made it easier to create service awareness to the targeted consumers, who in this case was entire Australian community (Smith & Zook, 2011). StreamCo ensured product penetration in the market by employing pricing strategies. The company ensured that Stan is streamed to its consumers at a cheap price as compared to that of its equivalent international competitor and also as compared to that of it comprehensive package for its local competitors. Therefore, Stan is currently the most cost effective streaming service in Australia. This strategy will ensure that the company has managed to draw customers from all over, including the transfer of customers from other local and international streaming companies in the country to Stan. The fair price and extensive content give Stan a higher competitive advantage in this market (Varadarajan, 2010). StreamCo other marketing strategy is provision of a lengthy trial period. This is the period where consumers have to use the product without making any payment. Stan offers a free trial period of 30 days and a monthly charge of $10. This is contrary to Presto which offers the same free trial period at a monthly charge of $14.99, Quickflix that offers 14 days trial period at a monthly charge of $9.99 and Netflix which does not offer any free trial period with its cheapest package going at monthly charge of $8.99 for single stream (Burgess, 2015). Other packages that have the ability to compete with Stan based on content ranges between $11 and $15. Therefore, Stand stands a chance of winning customers from all over the Australia due to the cost advantage, long trial period, and extensive content. Cost of a service is very important to the consumers. Stan provides consumers with a service that gives more value to their money. Therefore, it appears as the best option for consumers of all categories; those who prefer local and international content (Burgess, 2015). Employment of Element of Marketing Mix in Stan Marketing Techniques Marketing mix is a marketing strategy that involves four main elements which include product or service, price, place and promotion. StreamCo employed this marketing strategy while producing and marketing its new product. To determine the best products and services to offer to the consumers, StreamCo evaluated the streaming market in Australia comprehensively (Zeithaml et al., 2006). The company realized the need for a streaming service comprising of extensive range of content which incorporate both local and international programs targeting different audience. In this regard, the company settled on offering Australians with Stan. Based on the company analysis, this service was extensively needed in the entire nation (Hawkins & Mothersbaugh, 2009). Therefore, their provision was targeting the entire Australia. The service was to be distributed via internet and everyone could access it as long as one had internet services and the right devices as defined above. The service is highly available online and one just needs to make an account in the company's website and enjoy 30 days free trial period provided by the company (Wesley & Barczak, 2010). StreamCo also identified that one of the major hindrance to the Australians access to this service from other companies was the high cost involved. In this regard, the company offered its service as a cheaper cost as compared to all other three competitors. This low cost assisted in the penetration of the product in the market (Udell, 2014). The company also employed one of the major promotion strategies which involved the provision of a longer free trial period. This made it easier for most individuals to adopt provision in the future after having a whole month of comfort and excitement for the wide range of programs and films provided by the Stan (Baraskina & Rivza, 2010). Competitors Recommendation to Counter Stan Marketing Move To counter the Stan move, the two local competitors: Quickflix and Presto should consider lowering their prices for a single stream and also for more streams (Kidman, 2015). For instance Quickflix DVD delivery service is quite expensive as compared to Neflix and Stan, especially when combined with the normal stream. To maintain its customers, Quickflix should consider reducing its prices at considerable percentage (Cravens & Piercy, 2008). In addition, Quickflix and Presto should consider adding their content to ensure extensive content. This may give them an advantage of maintaining a considerable number of their customers. Another strategy that they can employ is by identifying programs that Stan does not produce and that are of great interest to Australians and stream them. This may give them an advantage of maintaining consumers who love those programs. Presto should also consider improving its standard definition of streaming to a high streaming definition (Grant, 2008). Neflix on the other hand should consider launching its services officially in Australia. This will give the company a chance to have freedom of streaming all content as defined by the communication ministry of Australia. Neflix high prices and lack of free trial period can be associated with monopoly it was enjoying for being the only streaming company that could provide extensive content in Australia (Kotler & Armstrong, 2010). However, the company is currently facing stiff competition from Stan. Stan major advantage over Neflix is that Stan is a local company and thus, it has higher chances of winning users trust as compared to Neflix. Also its prices are considerably low and thus, creating a huge threat for Neflix. To counter this, Neflix should consider lowering its costs and introducing a free trial period which is proportional to its product costs. It should also consider maximizing on unique programs that are preferred by Australians and that are not provided by Stan. This will give the company the ability to maintain a good number of its customers (David, 2007). Conclusion Stan is a StreamCo service provided with intention of addressing Australian's need for a more extensive streaming service with more content. The launching of this service introduced a new competition to two local streaming companies and one international company that was highly embraced due to its extensive content. However, the three available streaming companies are too expensive, with local companies offering limited content and others substandard services. This made it easy for Stan to enter into the market and to penetrate far and wide. Stan preference is also supported by the company marketing strategies that promoted the product awareness long before its launching and its pricing strategy that promoted the service penetration in the market. References Baraskina, I., & Rivza, B. (2010). The effect of competition forces and competition strategy in the market of organic products. European Integration Studies, 4, 133-140. Barrett, D. (2015, 26th Jan). Fairfax and nine's streaming service, Stan, launches ahead of Netflix arrival. Retrieved from < http://www.theguardian.com/tv-and-radio/2015/jan/26/fairfax-and-nines-streaming-service-stan-launches-ahead-of-netflix-arrival> Boyle, F. (2015, 7 Jan). Australia's new TV streaming service Stan now has a price tag. 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