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Marketing Project.

Netflix uses segmentation, targeting, and positioning (STP) to understand its customers and release TV shows to attract different groups. It segments customers based on demographics, lifestyle, beliefs, life stage, geography, and benefits sought. It then targets key segments like binge-watchers. Netflix positions itself as providing high-quality, convenient streaming at affordable prices with a large library of shows, positioning it above competitors. STP allows Netflix to understand customers and release content tailored to different segments.

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Rajesh Prajjwal
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2K views

Marketing Project.

Netflix uses segmentation, targeting, and positioning (STP) to understand its customers and release TV shows to attract different groups. It segments customers based on demographics, lifestyle, beliefs, life stage, geography, and benefits sought. It then targets key segments like binge-watchers. Netflix positions itself as providing high-quality, convenient streaming at affordable prices with a large library of shows, positioning it above competitors. STP allows Netflix to understand customers and release content tailored to different segments.

Uploaded by

Rajesh Prajjwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Analysis-

So, after reading the replies of individuals on surveys and interviews taken by our group members
regarding Netflix, we came to understand their different perspectives on Netflix. Firstly, talking
about what majority of them felt was that individuals thought Netflix as a brand therefore
purchasing a subscription gave them high class status. Everyone wants to have its subscription
because of vast variety of TV shows and movies. Secondly, regarding price prices have been kept
as per needs of consumer though might be a bit costly but still people don’t have as such any
problem paying for it. After introduction of newer TV shows i.e. Netflix Originals, Netflix gathered
customer attention which one of its competitor Amazon Prime failed to do since the beginning.
Though now Amazon has also started releasing Amazon Originals, but the number of shows is
still less than that of Netflix. Netflix focused more on Hollywood shows which gathered interests
of all age groups on the other side Prime had only more of Bollywood movies. Apart from this by
paying money customers can get lot of screens i.e. they can simultaneously view movies and TV
shows on mobile, laptop, TV etc. Hence everybody as a whole feel that Netflix is providing a kind
of entertainment i.e. out of the box. Therefore, Netflix will remain on top for providing best
online entertainment service.
Use of STP in Netflix- Netflix uses STP i.e. Segmentation, Targeting and Positioning to identify its
customers and accordingly release TV shows to attract them.
1. Segmentation- Segmentation means identifying the market to be segmented for a
product and dividing customers into segments or groups based on different
characteristics. Segmentation can also vary with time, mood, customer, company etc.
Different factors involved are-:
a. Demographics- On basis of age, gender, income, education level etc. Netflix can
segment its population size and accordingly release its TV shows.
b. Lifestyle- this refers to non-work time activities such as hobbies, recreational pursuits
etc. Netflix can either create their own site or through Instagram, Twitter they can
target small niches very effectively. Here different individuals can interact with each
other to share information about a certain interest or hobby.
c. Religious beliefs and values- So, after identifying different interest areas of different
age groups now Netflix can release its shows accordingly. E.g. Individuals of age group
45+ would like to watch TV shows which are more of religious beliefs and values.
d. Life Stages- Releasing TV shows and movies which can be viewed by all age groups i.e.
for e.g. age group from15-60.
e. Geography- Individuals will also differentiate in watching shows on basis of their
culture, the place or region they are living. So, offering shows as per their interest and
that too in their language will generate more customer attraction.
f. Benefit- To compete in this competitive market Netflix for their own benefit must
release shows earlier than its competitors like Amazon Prime and that too shows in
different fields such as action, romance and most importantly no advertisements etc.
All together this will gain customer satisfaction.
2. Targeting-
Targeting means to break a market into segments and concentrating on few key segments
where customers’ needs, and desires match closely with the product. Users in Netflix are
targeted based on the above segments they correspond to. Mostly Binge-watching
audiences are targeted. So, targeting audience based on one segment is very difficult in
case of Netflix. E.g. In benefit segment Netflix can target millennials by showcasing no
advertisements. People of age group 30-50 can be attracted through high quality
streaming, pricing and the number of screens offered. Apart from this they should mainly
focus on their Binge- watchers or the customers using paid streaming subscription. This
will help in retaining those customers for long time. Like that if number of subscribers will
increase then Netflix can focus more on bringing new content and can invest more on
improving their technology.
3. Positioning-
After Segmentation and Targeting now its time for company to focus on Positioning.
Positioning refers to the spot brand occupies in minds of consumers and how far its better
off than competitor’s product. Top needs of customer are high speed, convenience, low
price, high quality video streaming and number of shows offered. So, Netflix to remain on
top must carry on and provide all these services for its customers that too at affordable
rates and hence can remain an edge over its competitors.

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