brand management assignment on Netflix brand development strategy

Question

Task: How to analysis the brand development strategy used by Netflix usingbrand management assignment research strategies

Answer

1. Introduction
From the brand management assignment, it is clear that creating a position in the competitive business environment has become challenging for organizational leaders. To cope with these challenges, organizational leaders are focusing on developing their brand. The continuous process where the strategies of brand are defined and refined is known as brand development. Brand development also helps in enhancing the quality and value of the firm along with the perception of customers (Mutegi, Wasike&Kiflemariam, 2022).It also helps organizational leaders to expand their businesses. This brand management assignmentreport aims at critically analyzing the brand development strategy that has been adopted by a renowned organization named Netflix.

1.1 Organization overview
Netflix is an America-based firm that is known for providing subscription streaming services to its customers. The organization was established in the year 1997. The aim of the founder is to disrupt the entire entertainment industry. The brand management assignment research depicts the current mission of the firm is to give access to its subscribers a range of web series and movies from different parts of the world (Netflix, 2022). The organization is currently streaming in more than 30 countries. Moreover, currently the organization is known for acquiring universal studios from different parts of the world, producing and streaming movies in different languages.

Fig 1. Netflix Annual revenue and subscribers
Source: Stoll, 2022

2. Brand Development

2.1 Brand Identity
According to American Marketing Association (AMA), brand is an image, symbol or title that demonstrates the activity of a seller or group of sellers (Wimalana&Koswatte, 2021). Moreover, the visible elements of this logo, title or symbol are known as brand identity. Netflix is identified as a symbol but powerful brand. In 2018, the Global Brand Simplicity Index have identified as one of simplest brand in the world (Muldoon, 2018). Users can view, pause, and download Web series and movies without any kind of advertisements or disturbances have made this brand one of the simplest among the list.

2.2 Brand Personality
The framework of a brand that shapes the feeling of people towards the product or service of the company is known as brand personality. Netflix is known for its straightforward as well as engaging personality (Delane, 2022). The primary objective of the organization is to engage its viewers into contents created by creators from different parts of the world. A small description of the Web series or Movie help readers get an unambiguous overview of the content. This makes the entire brand more straightforward and honest which has also been one of the major causes behind the success of the company.

2.3 Brand Image
The perception of a particular brand in the mind of customers is known as brand image. The bright red logo of the brand catches attention of people and helps in creating a strong brand image. However the brand managementassignmentresearch shows that customers often think that Netflix is a brand where cultivated or customized products are not available. People get anything and everything in this platform. Moreover, the competitors of Netflix have said that customers of this company scroll without any purpose. This can be marked as one of the negative portrayals of Netflix’s brand image (Wallenstein, 2019).

Fig 2: Netflix Logo
Source: Netflix, 2022

3. Brand Positioning
3.1 Segmentation
When broad customers are divided into sub-groups it is known as market segmentation (Camilleri, 2018). Netflix is one such company that have ceased geographic segmentation. Customers are observed as monolithic community and customers have access to contents from various parts of the world. The brand management assignment findings shows that, AI is used to provide viewers personalized experiences. However, demographic segmentation helps in providing specific information about people from different parts of the world. Thus, it can often be difficult for the organizational leaders of Netflix to provide authentic experiences to its customers due to lack of geographic segmentation.

3.2 Targeting
When a specific customer segment who share similar characteristics are targeted it is known as targeting (AL-hazmi, 2020). Netflix have targeted users who are young and middle-aged. Moreover, people who uses technology in their daily lives also falls under the customer segment of Netflix. Thus, it can be said that Netflix have adopted differentiated target marketing strategies in order to target customers on the basis of few characteristics. However, the with the increase in competition in the video streaming industry, the organizational leaders of Netflix are finding it difficult to invest in R&D and focus on continuous strategy development.

3.3 Differentiation
When a unique or distinct product or service is offered to the customers to fight in the competitive business environment it is known as differentiation strategy. Netflix is a video streaming platform that has used the firms’ capabilities to eliminate distributors or middle men who were traditionally responsible for distribution of movies in the theatres. Moreover, the organization has made sure to provide unlimited access to content with a certain amount of subscription fee. This has helped the firm to retain its customers which has further impacted the revenue generation of Netflix. This can be marked as an intensive growth technique (Jauhari, 2022).

4. brand management assignment - Brand Equity
4.1 Salience
The factor that has an influence on the choice intentions of new customers identified on this brand management assignment is known as brand salience (Ngo, et.al., 2022). The brand salience of Netflix is powerful. When people talk about video streaming platform, Netflix is the first brand that pops in the mind of customers (Parikh, 2019). The cinematic feel of the logo and the simple yet iconic symbol of the company has helped consumers identify the brand quickly. Moreover, the “ta-dum” sound that comes when any content opens in Netflix, also have a great impact on the mind of consumers. However, the stock of Netflix in recent times is dropping because ads are getting added in the contents of Netflix. This is also having a negative impact on the brand image of the company.

4.2 Meaning
Net means internet and flix is a shorten version of movies. This is the meaning of the brand Netflix. Moreover, the primary mission of Netflix has always revolved around providing amazing contents to people across the world at a lowsubscription price. The organizational leaders of the company have made sure to stick to the mission of the company. However, the subscription price is increasing and this has been one of the major reasons long term customers of Netflix are not renewing their subscription. In recent times Netflix reported that it has lost almost 2,00,000 subscribers (Haslam, 2022). From the brand managementassignment researchit can be said that Netflix is not sticking to the core meaning of the brand, the organization is currently witnessing a decrease in subscribers.

4.3 Responses
Responses that organizations receive from their customers is directly correlated with the sales of the firm. Netflix have received positive responses from its customers because they can access a wide range of content in a single platform. Moreover, Netflix also describes a content briefly before the viewer starts watching it. This has also been one of the major reasons behind positive responses from customers.

4.4 Resonance
Relatability of the brand is known as brand resonance. Love towards the brand increase brand resonance (Kim, Nobi&Kim, 2020). Netflix has become one of the relatable brands because the voice and style of this brand is consistent. This has made it a go-to brand among viewers. The minimalistic nature of the logo resonates with the customers and has related to many.

5. Co-branding
When name of multiple brands is used by a firm as a part of strategic alliance it is known as co-branding. ESPN which is a part of the Walt Disney company planned to provide their services directly to the consumers. So, they decided to broadcast their content in OTT platforms. This resulted in the strategic alliance between Netflix and ESPN (Keys, 2022). Apart from movies and web series, sports are an integral part of entertainment for a wide range of people. With the co-branding strategy identified on this brand management assignment, Netflix can grab the attention of subscribers who are interested in sports.

Fig 3: Co-branding of Netflix and ESPN
Source: Keys, 2022

6. Celebrity Endorsements
When a celebrity acts as a spokesperson on behalf of the brand to increase the reach of the brand it is known as celebrity endorsements. Celebrity endorsements are marked as an important marketing strategy because it is seen as a suggestion coming from an expert (Wise, 2018). Netflix recently collaborated with one of the most power couples in the world. They are Michelle Obama and Barack Obama. This couple decided to share content on behalf of Netflix. This approach of Netflix will bring major awareness among consumers and benefits for the organization. The objective of Netflix is to gain market share and competitive advantage with the help of this grand celebrity endorsement.

7. International strategy of Branding
International branding strategy is also known as global branding. When a brand is managed strategically and efficiently in different parts of the world it is known as global branding. Netflix operates in various parts of the world and it has developed a wide range of personalized branding strategies to attract attention of customers of different parts of the world. Despite this, the organization has made sure to adopt a universal branding strategy that can unite subscribers from various geographic regions. Thus, the company launched a 90-second campaign named “One story away” to unite people from different parts of the world (Adalian, 2020).

8. brand management assignment-Marketing Mix
8.1 Product
The offerings on behalf of an organization are known as product or service. Netflix is known for providing entertainment services to its customers. Moreover, product strategies adopted by Netflix have helped the company to disrupt the entertainment industry. A wide range of movie, documentaries and Web series can be watched in a single platform. The unique feature that differentiates Netflix from another streaming platform is “no-ad.” Viewers can watch the entire content without any ad or interruption. This is one of the major aspects of the product that has helped the company to increase its market share. However, people can view contents in Netflix only based on payment. On the other hand, competitors like Hot star and Voot offer hybrid mode of watching where people can watch content by paying or by not paying.

Fig 4: Netflix product features as compared to other video streaming platforms
Source: Urban Asia, 2019.

8.2 Price
The subscription fees of Netflix vary from country to country. For example, in USA, the price of basic plan is $9.99. the brand management assignmentresearch shows the organization has adopted market penetration strategy while pricing its product. The subscription price is low and it intends to grab attention of subscribers(Wells, 2022). However, it is found that the subscription fee is higher than other competitors operating in the video streaming industry. This resulted in loss of subscribers in the last years.

8.3 Place
The placement of a product to gain the attention of consumers is known as place. Netflix have adopted online distribution strategy. The contents are purchased from the producers and these contents are further streamed in the platform. The digital landscape has been used by the operators of Netflix because it has a power to disrupt the market (Smits&Nikdel, 2019). The digital distribution has further helped the firm to spread their content in various parts of the world.

8.4 Promotion
Campaigns, TV ads, digital marketing, bill boards are several promotional strategies that have adopted by Netflix. This is known as multi-channel promotion. This brand management assignmentpromotional strategy has helped Netflix to distribute their services to many people from different parts of the world and make it a global brand. However, Amazon prime’s promotional strategies are strong and the organizational leaders are finding it difficult to cope up with this challenge.

Fig 5: Billboard
Source: Sandberg, 2020

Fig 6: Social media campaign
Source: Netflix, 2022

9. Conclusion
This brand management assignmentaimed at critically analyzing the brand development strategy adopted by Netflix. The report concludes that the red logo and the “ta-dum” sound while opening any content is unique and has made the identity of the brand strong. Moreover, the organization has adopted multi-channel marketing strategy to attract viewers from different parts of the world. Finally, it can be said that the ad-free content provided by Netflix is its unique strategy. The brand management assignment findings show this feature differentiates the brand from other video streaming platforms and has helped it disrupt the entertainment industry.

References
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Muldoon, M. 2018. Netflix revealed as World’s Simplest Brand, according to annual study from Siegel+Gale. Retrieved from https://www.siegelgale.com/netflix-revealed-worlds-simplest-brand-according-annual-study-siegelgale/ Mutegi, B., Wasike, S., &Kiflemariam, A. (2022). Corporate Social Responsibility and Firms Brand Development: A Case of Equity Group. Journal of Strategic Management, 6(3), 50-61.
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