Netflix Branding Stumbles

Netflix Branding StumblesBrand Management- Individual Assignment

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Reed Hastings

An entrepreneur and a philanthropist.

Works with geniuses (or genii if you are a Grammar Nazi), and gives them their space

Father of Netflix

At this point I should probably mention the parents2

Enter Netflix

Hes American and 19 years old.He has an innovative mind and provides Internet TV network to the needy and destitute

He loves choice and hates TV commercialsLife Mantra Watch what you want, when you want(at affordable price)

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The secret to his successFlawless service delivery + wicked skills to recommend awesome movies/ TV series

He talks with everyone (tries to)

Major events in Netflixs lifeBirth August 29, 1997IPO May 22, 2002Instant Streaming 2007Qwikster 2011 (Well get back on this xD )

The rush of teenage

It was as if Netflix could do no wrong

Life was smooth and Netflix was enjoying the popularity it had amassed with its evil jedi ways8

Netflixs StrategyIt was positioned as a national brand, even though it had international reachThe logo and website were kept the same, however no consistent use of other brand elementsUsed affordable pricing and heavy use of content marketing.

What led to the birth of dumpsterMONEY!!Gross profit margins by mail order and streaming rentals was significant.Qwik

So what did our dear Netflix doCharge separately for DVD by mail and Online StreamingThis decidedly meant increased prices for customers for 24 million customers who wanted to use both services (60% rise)

Source: WebProNews, google images

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Murphys LaW!! not reallyFacebook gets 60,000+ negative commentsMarket cap dropped by 70% and more than 800,000 subscribers unsubscribed

Mistakes of the TEENAGENetflix tried to explain, said he mustve been out of his mindSays it was just a phase and it was out of his system. Literally.That was when Qwikster came out

Lets try to elaborate why Qwikster was a stupid Ludicrous ideaUsers had to create new accounts at different domain namesDifferent credit card statementsDifferent sets of ratings and preferencesUnintentional typos everywhere (Quick, Qvik, Qwick)They added video games as an OPTIONAL upgrade, not included in the standard packageThe twitter handle for Qwikster was already handled by Jason Castillo (loved marijuana, DP pot smoking elmo)THE LIST REALLY GOES ON

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So what should be done(Plan a murder and make it look like a suicide of course)

OCT 2011- After several weeks of outrage, Reed Hastings apology Netflix killed QwiksterIt was terminated even before it was supposed to see a big launchIt was renamed DVD.com

Maturity comes with mistakesand compensation to the consumersNetflix offered more free trials to customers with higher quality of contentPromotional strategy included a plethora of stuff including:theatre tickets, commercial and radio spots banners and popups

Lessons learntListen to the consumer: Netflix had always relied on heavy market research but in this case, it was laxShared product:Social media has significantly changed the product landscape, and since it takes heavy feedback from consumers consumers feel they have a part in the development of the productwhich leads to intense loyalty:In a similar fashion as was in the case of new coke, Netflix users were outraged when they took away their brand name.

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conclusionNetflix correctly predicted the demise and cannibalisation of its DVD segment by live streaming segment but he acted too earlyProper Brand architecture/extension strategy should always be a result of proper planning if we want to avoid a disaster.

Current positionNetflix is the worlds leading Internet television network with over million members in over 86 190 countries

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Future of NetflixBy 2020, there will be over a hundred million non-U.S. Netflix subscribers worldwide (including me).

DisclaimerThe presentation was made by Mayur B. Verma during the PGP Brand Management course taught by Prof. Sameer Mathur at IIM Sirmaur.REFERENCEShttps://en.wikipedia.org/wiki/Netflixhttps://www.netflix.com/https://www.statista.com/topics/842/netflix/https://www.facebook.com/netflix/http://www.nytimes.com/2011/10/25/technology/netflix-lost-800000-members-with-price-rise-and-split-plan.htmlPrice MEME google images, Webpronews

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