I chose an article on Netflix and their struggles in India. I'm not the biggest supporter of Netflix because I think that there i much better alternatives on the market. I hope to learn where they went wrong with the marketing and why they haven't been doing well in such a large market.
Netflix is having trouble with their marketing strategy in India. This is due to substantial price hikes by Indian telecom companies and the content offered is suffering as well. The production has been having issues that has forced Netflix to go in and correct the content in the post production, which has created a bottleneck issue for them. They were able to secure the financials they needed for 2019, but the CEO has reported that they have been unable to gain users in recent months. They also have been losing market share to the Amazon Video streaming service, which is cheaper and offers more attractive features.
Netflix's value proposition has 10 parts to it. These include content library, no ads, on demand consumption, ability to binge watch, simple pricing, convenience and mobility, high quality connection, freemium, personalization, and lastly localization.
The marketing relevance in the article is how Netflix will be able to manage the crisis. They are using cloud computing to streamline the efficiency and keep post production costs down. It will allow them to have better control of the production and avoid future problems. They also will be putting 418 million dollars into creating more original content.
The challenge that the company is facing is trying to streamline the operations in India to keep the costs down and produce better content.
The marketing approach that the company used is unique because it is taking a newer technology (cloud computing) to revamp their production. Especially in a poorer country, it brings a new approach to the streaming service that will make the product more appealing.
If I was the brand manager, my main goal would be to eliminate all the production issues. Then following that, I would try my absolute best to make the price of the service cheaper than Amazon's. If the price is cheaper, more people will be willing the try out the product and once the product is bug free, hopefully they will stick with the company.
I think the marketing solution is good and will help rebrand Netflix as a more complete product. I feel as though a lot of the Indian market will be much more satisfied after the product has been streamlined and it will produce much better results.
I learned that company's need to always have a back up plan in case something goes south. Also, you need to be willing to invest if you want something to work for you.
Link to Article: https://www.fool.com/investing/2020/01/15/netflixs-new-problem-could-prove-costly-in-this-ma.aspx
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