skillshare strategy project

Creating a Digital Strategy for

Final project submission for Digital Strategy skillshare program by Julian Cole

Presented By Michael Browne @rontherocket

March 2013

The Business Problem

Core Consumer Question

“How do we boost Netflix subscription numbers by utilizing the release of its

new and exclusive series Hemlock Grove”

Before we begin our strategic analysis. Lets start by taking a brief look at the History of this innovative organization Netflix and how, within a short time, it has come from relative obscurity to become a leading player in the battle for our viewing entertainment

Established in 1997, the company is headquartered in Los Gatos, California. Netflix started life as a subscription based DVD distributor in 1999 (which it still operates today).

This new business model changed industry norms in home entertainment and Netflix were in direct competition with long established bricks and mortar retailers with proven pedigree And considerable financial resources

Undaunted by intense competition Netflix began to stamp its mark on the industry and by 2009 it offered a catalogue of over 100,000 titles on DVD and had surpassed the 10 million subscribers mark. In February 25, 2007, Netflix announced its billionth DVD delivery

Although highly profitable Netflix realized that the business landscape was changing. DVD’s were and aging technology and the new war ultimately was to be waged online. Because of its success in the DVD industry Netflix was able to harness the power of its brand name and expertise helping it quickly diversify into the online entertainment market.

Where it would Soon face Heavyweight Competition

FROM THE LIKES OF

But NETFLIX had THE JUMP ON EVERYONE ELSE in Online Streaming

Giving IT FIRST MOVER ADVANTAGE Over competitors

Remember BUT

IT’S NOT HOW GOOD YOU ARE IT’S HOW GREAT YOU WANT TO BE

Strategic Goals

Strategic Goals

To increase the overall number of subscribers to Netflix

To sell Netflix as an innovative streaming platform by utilizing digital channels and social media in a way that will differentiate it from its competitors.

To promote “Hemlock Grove” as part of its expanding exclusive content offerings that provides new viewing options to viewers

To highlight Netflix as the number one streaming service, unrivalled in terms of its viewing catalogue, viewing options and customer service.

To use digital and social media channels to promote Hemlock Grove and to engage its teenage audience forming a two-way dialogue with them.

The Target Market

We All Know

That

IT’S MOM AND DAD THAT MAKE THE DECISIONS


AND CONTROL ALL HOUSEHOLD FINANCES


AND CONTROL ALL HOUSEHOLD FINANCES

HOWEVER…

HELL induces NO FURY SUCH AS THE NAGGING

TEENAGER

NOT KNOWN TO BE THE GREATEST LISTENERS IN THE WORLD

TEENAGERS USUALLY GET WHAT THEY WANT


TEENAGERS USUALLY GET WHAT THEY WANT

OR ELSE….


WOE BETIDE YOU

Our campaign will therefore have two main targets Teenagers viewers of “Hemlock Grove” and more importantly their parents

If Netflix is to be successful in capturing the teen audience it needs to appeal to them by engaging with them, on their terms, in their environment

So what’s the best Way of Doing This?

Netflix needs to generate conversation amongst teens getting them to talk about what they watched, how they watched it and what they thought about it. Positive sentiment will get them to spread the good word about the show and the service to friends and peers as well as influencers who are not yet subscribed.

If Netflix can capture the hearts and minds of the teen audience getting them to act as ambassadors for the brand they are much more likely to be successful in converting undecided parents to subscribe to the service

By winning favor with teenagers through engagement Netflix will already be half way to getting parents to subscribe to the service. The final push to win over parents will be showing them that the service has the broadest viewing catalogue of family entertainment. That it is committed to investing in the best new and exclusive series and that it has built its reputation by delivering outstanding customer service.

Remember The Golden Rule!

Never underestimate the persuasive power of the annoying teenager Hell bent on Getting what they want!

Strategic Insights

People have are increasingly demanding that their viewing media be more flexible and adaptable to their busy lifestyle Customers ultimately want to have control over their viewing options and watch at a time that suits them. “House of Cards” has displayed positive feedback from consumers in terms of their response to the innovative release of the new series

1

2

3

Strategic Insights

It’s release has helped to differentiate Netflix in two ways A) as a streaming service committed to investing large resources in the production of new and exclusive programming. B) As a company that is dedicated to innovation by giving its customers more viewing options for its exclusive content.

With it’s block release of new programming Netflix has broken a sixty-year old television broadcasting tradition of releasing series incrementally. This is a high-risk strategy for the company but proves they are willing to take calculated risks to win the hearts and minds of existing and new customers.

4

5

Strategic Insights

The Strategy

We want to communicate the idea that Netflix is a dynamic organization dedicated to providing its customers with premium and exclusive entertainment in multiple formats across multiple devices. We want our customers to know that Netflix are committed to constantly finding new ways of exceeding their expectations.

If the strategic campaign were to communicate one

Message it would be…

Single Minded Proposition

Netflix provides the best in visual entertainment by providing our customers with the highest levels of choice and service. Choice for us represents not simply title selection but also format and platform choice, as well as the power to choose what to watch, when to watch and how to watch, anyway you want.

And If the campaign were to communicate one Word it would be…

Single Minded Proposi:on

Netflix provides the best in visual entertainment by providing our customers with the highest levels of choice and service. Choice for us represents not simply title selection but also format and platform choice, as well as the power to choose what to watch and how to watch, anyway you want.

Therefore

the Big Idea

is…

“We’re All About Choice”

Reasons To Believe

Netflix have been the leaders in visual entertainment innovation initially with its DVD postal ordering service and since 2007 with instant online streaming service. Its reputation has been built on providing it customers with wider choice and better options.

Reasons To Believe

Now with the release of House of Cards and Hemlock Grove, Netflix it is once again redefining the rules, breaking traditional convention and proving its commitment to providing its customers with even more control in their viewing options.

Reasons To Believe

By block releasing new exclusive programming Netflix is once again putting power back in consumer hands. They choose how they watch. They can go the traditional skinny diet of one episode at a time or dive right in and watch the entire series in one sitting.

Comms Framework

•  Buying Current consumer behavior Undecided Parents of teenagers

Desired Response Subscrip:on paying Parents

Awareness Considera:on Buying

Media Media Media

Owned Social

NeClix Site

Facebook Search Youtube News sites Google

TwiKer Tumblr Technology Forums

Mashable

Rich Media Banner Ads Social Media Ads Home Page Takeovers

Earned Media Social Adver:sing Banner Adver:sing Microsite

NeClix Website Owned Social Search Social Ads

Crea:ve Messaging: NeClix are all about providing choice for customers

Reasons to Believe: Brand name Reputa:on

Crea:ve Messaging: NeClix invest heavily In new programming like Hemlock Grove

Reasons to Believe: Word of mouth/recall from success of House of Cards

Reasons to believe: Industry leader, word of mouth, Internet search. Published data

Crea:ve Messaging: NeClix is compe::vely priced and has a customer service that is second to none

Digital Buzz

Campaign Tactics

Facebook Tactics

Time Out Competition The idea is that Netflix FB fan (whose family are subscribers) watch the series of Hemlock Grove and answer a number of questions based on various parts of the show. A maximum of five members in any group allowed four of which are not Netflix subscribers. Once started teams have a maximum of 24 hrs to complete the quiz. Prizes awarded to winner

Prizes given to Netflix FB fans who enlist 5 people from their Facebook friends list to subscribe to Netflix

Twitter Tactics

The starring cast of the Hemlock Grove series, including producer Eli Roth, participate in a fan Q&A session via twitter. The cast also shows their involvement and commitment to fans by favouriting their preferred fan tweets under the Hemlock Grove hash tag. Prizes awarded to fan that writes “Tweet of the Day”

So What Will Success Look Like

Campaign KPI’s

Awareness

Consideration

Preference

Purchase

Retention

Increase FB Likes from 3.7 to 5 million

Increase TwiKer connec:ons from 284,000 to half a million

Aim for 70% 5 star product reviews in Technology websites and blogs

Aim for 80% posi:ve sen:ment about brand from web ac:vity

Increase Subscrip:on numbers by 10 million in twelve months

80 million visitors to website and FB page

20% increase in purchase preference

40% recall for Hemlock amongst teen target

150 million page impressions to target audience

Samples

Share The Love Join Us!

We’re All About Choice

Welcome Back Michael! Recommended for you!

exclusive content-Anyway you like it

New Releases

Genres

Recommended

Michael’s Top 10

Website With Social Media Links


A Netflix exclusive, Anyway You Like it

The Best choice of Titles. Anyway You like it


The Road Ahead

Moving Forward

In order to build customer subscriptions Netflix must

It must continue its one-month free trail as part of its promotional strategy

Netflix must be leaders in customer service. High customer satisfaction leads to greater customer retention and a reputation that sells itself. Netflix should capitalize on this long term.

It must place a high priority on social media activities as a vehicle towards achieving high customer satisfaction levels and retention.

Moving Forward

In order to build customer subscriptions Netflix must

It must continue to invest heavily in top quality content either through commissioning exclusive production or buying in from outside production sources.

It must never cease to be innovative and constantly strive to bring its customers the highest levels of choice and viewing options at a competitive price.

Thanks Michael Browne

[email protected]

@rontherocket