The paper "Marketing Management - Netflix" is an outstanding example of a marketing case study. As the business environment becomes competitive, modern managers must seek to get the best strategies to use in the market to sustain competition. Companies have re-drafted their marketing plan and replaced ineffective objectives with new ones that are realistic, achievable and measurable so as to improve the efficiency of their operations (Steel 2014). In the period from early to mid-2000, Netflix was not doing well and even its collapse was predicted by market analysts.
Some of the analyses such as Michael Pachter thought that Amazon, Blockbuster and Wal-Mart which had a large customer base and economies of scale at that time could simply wipe Netflix out of the market. Mullins, Walker and Boyd (2010) contended that the changing business environment characterized by poor leadership, communication failure and objective failure was blamed for the company’ s poor performance. Eight years later, the company gained the top position in the market, with the stock-raising to 200% and S& P 500 increasing to 7% under the leadership of Chief Executive Officer Reed Hastings (Krengel 2013).
Netflix Company had been prompted to change their marketing plan and objectives to transform from a less performing to a giant provider of internet TV. Therefore, this report evaluates the marketing plan of Netflix Company and discusses how it provides the company’ s effectiveness. In the report, Netflix objectives will be discussed while showing how each of the marketing mix elements (the 4 Ps) will contribute to the achievement of such objectives. 2.0 Marketing Plan 2.1 Growth potential and market size Netflix’ s market has grown consistently in recent years, indicating a trend of improved sales.
Trefis Team (2013) opined that the company began its operations, especially production and marketing in 1997 with less than 100000 subscribers. The number rose to over 40.29 million subscribers streaming internet and videos after three years. Netflix (2015) stated by mid-2013, Netflix had invested in physical DVD and had 7.51 million mail subscribers in this product category.
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