1. Introduction
Netflix was founded by Reed Hastings and Marc Randolph in Scotts Valley, California, in 1997. Today, it boasts over 83 million users and is the leading provider of on-demand video, movies, TV shows, and seasons globally. As an over-the-top (OTT) service provider, Netflix primarily operates a subscription-based streaming platform with a vast library of films and TV series, most of which are produced in-house. Since 2016, Netflix no longer segments its 93 million global users by region, instead treating them as a unified community with similar movie and TV preferences.
Netflix’s subscription model focuses on a unique targeting strategy designed to foster loyal, repeat customers. It positions itself as an easy-to-access, subscription-based video-on-demand service, available anytime, anywhere, on mobile devices, tablets, or TV, offering a high-quality viewing experience to satisfy consumers' digital entertainment desires.
Market Segmentation of Netflix
Netflix’s business community is continuously on the lookout for signals of change, focusing on innovation and shifts in customer behavior. According to a survey by Hannah, it’s estimated that over 2.7 million Australians use Netflix to watch movies and TV shows.
Much like Tesla, whose products are considered too expensive for the average person, Netflix has identified and targeted specific market segments. Tesla’s business model, described by Elon Musk in 2006, involves initially selling high-end sports cars, then using the profits to develop more affordable vehicles, with the ultimate goal of producing even cheaper models for mass adoption.
In the video streaming industry, there are multiple ways to segment the market, but due to the highly diverse nature of consumers—whose preferences evolve based on age, income, location, and viewing habits—there are various segmentation methods. Each division is unique, focusing on different attributes such as price, quality, accessibility, and, most importantly, profitability.
3. Targeting of Netflix
Netflix is the world’s most popular online TV platform, with over 100 million subscribers across 190 countries, who together watch more than 125 million hours of content each day. The service segments its target audience based on demographics, behavioral intents, and psychographics. Its primary target audience includes young adults, teenagers, and low-to-middle-income families. Additionally, Netflix offers a wide range of international films and TV series, appealing to a diverse array of cultural backgrounds.
Netflix employs behavioral segmentation to offer personalized content to its 100 million users daily. Using machine learning algorithms, it learns about users' preferences based on how they interact with the streaming platform. This data is then used to group users by behavior, allowing Netflix to deliver a tailored viewing experience that keeps customers engaged.
4. Positioning of Netflix
In today’s competitive market, emerging industries like electric vehicles (EVs) face significant challenges such as limited driving range and higher prices. Companies in this sector must create value and resolve these issues. The automotive industry is undergoing a technological revolution, with new manufacturers striving to enter the market. Tesla Motors, a leading EV manufacturer, is capitalizing on this transformation by developing electric vehicles and related technology, focusing on sustainability and cutting-edge innovation.
Tesla’s competitive edge lies in its ability to efficiently implement current technologies, which has allowed the company to scale its operations and offer increasingly affordable electric vehicles. CEO Elon Musk has announced plans to introduce a more budget-friendly vehicle by 2017, building on the profits from luxury models to fund this development.
5. Mind Map
Market segmentation involves dividing a consumer market into distinct groups that respond differently to various marketing strategies, such as promotions, pricing, and advertising. Within each segment, there should be minimal differences between buyers, making it easier to implement targeted marketing tactics.
Netflix, even with occasional network limitations, strives to deliver the best possible video quality and superior audiovisual experiences. The platform allows users to track their viewing history, which helps Netflix recommend content based on users’ preferences. This segmentation, targeting, and positioning strategy ensures that Netflix continually offers a highly personalized experience for its audience.
6. Key Takeaways
Netflix is an online TV platform that offers an extensive selection of TV shows and movies for its subscribers, providing unmatched convenience by allowing access from any internet-connected device. Additionally, new members enjoy a free one-month trial. It’s an ideal choice for movie lovers who seek flexibility and convenience.
Netflix’s marketing strategy revolves around low-cost, high-quality films and TV series with a broad appeal to the mass market. Unlike many competitors, Netflix provides an ad-free viewing experience. To encapsulate the company’s segmentation, targeting, and positioning approach, you can easily create a mind map using EdrawMind, which offers pre-made templates to help you get started quickly.
8. References
EdrawMind
AppsEdrawMind Online
