Skillshare Strategy Project
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This digital strategy document outlines Netflix's goals of increasing subscriptions by promoting its new exclusive series "Hemlock Grove". The strategy targets both teenagers and their parents. It will engage teenagers on social media to generate buzz about the show. This will influence parents as teenagers nag them to subscribe. The key message is that Netflix provides the best choice in visual entertainment through its expanding catalogue and viewing options on any device. Tactics include social media contests and an AMA with the cast. Success will be measured by growth in social followers, positive reviews, awareness and preference over competitors.
Skillshare Strategy Project
- 1. Creating a Digital Strategy for Final project submission for Digital Strategy skillshare program by Julian Cole Presented By Michael Browne @rontherocket March 2013
- 2. The Business Problem
- 3. Core Consumer Question “How do we boost Netflix subscription numbers by utilizing the release of its new and exclusive series Hemlock Grove”
- 4. 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
- 5. 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).
- 6. 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
- 7. 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
- 8. 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.
- 9. Where it would Soon face Heavyweight Competition
- 12. But NETFLIX had THE JUMP ON EVERYONE ELSE in Online Streaming
- 14. BUT Remember
- 15. IT’S NOT HOW GOOD YOU ARE IT’S HOW GREAT YOU WANT TO BE
- 16. Strategic Goals
- 17. 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.
- 19. We All Know That
- 20. IT S MOM AND DAD THAT MAKE THE DECISIONS
- 21. IT S MOM AND DAD THAT MAKE THE DECISIONS AND CONTROL ALL HOUSEHOLD FINANCES
- 22. IT S MOM AND DAD THAT MAKE THE DECISIONS AND CONTROL ALL HOUSEHOLD FINANCES
- 23. IT S MOM AND DAD THAT MAKE THE DECISIONS AND CONTROL ALL HOUSEHOLD FINANCES HOWEVER…
- 24. HELL induces NO FURY SUCH AS THE NAGGING TEENAGER
- 26. NOT KNOWN TO BE THE GREATEST LISTENERS IN THE WORLD
- 27. NOT KNOWN TO BE THE GREATEST LISTENERS IN THE WORLD TEENAGERS USUALLY GET WHAT THEY WANT
- 28. NOT KNOWN TO BE THE GREATEST LISTENERS IN THE WORLD TEENAGERS USUALLY GET WHAT THEY WANT OR ELSE….
- 29. WOE BETIDE YOU
- 30. Our campaign will therefore have two main targets Teenagers viewers of “Hemlock Grove” and more importantly their parents
- 31. 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
- 32. So what s the best Way of Doing This?
- 34. 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.
- 35. 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
- 36. 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.
- 38. Never underestimate the persuasive power of the annoying teenager Hell bent on Getting what they want!
- 40. Strategic Insights People have are increasingly demanding that 1 their viewing media be more flexible and adaptable to their busy lifestyle 2 Customers ultimately want to have control over their viewing options and watch at a time that suits them. 3 “House of Cards” has displayed positive feedback from consumers in terms of their response to the innovative release of the new series
- 41. Strategic Insights It’s release has helped to differentiate Netflix in two ways 4 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. 5 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.
- 42. The Strategy
- 43. 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.
- 44. If the strategic campaign were to communicate one Message it would be…
- 45. 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.
- 46. And If the campaign were to communicate one Word it would be…
- 47. 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.
- 48. Therefore the Big Idea is…
- 50. We re All About Choice
- 51. 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.
- 52. 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.
- 53. 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.
- 54. Comms Framework Current consumer behavior Desired Response Undecided Parents of teenagers Subscrip:on paying Parents • Buying Facebook Youtube News sites Digital Buzz Google Search Owned Social Tumblr TwiKer Mashable Technology Forums NeClix Site Awareness Considera:on Buying Crea:ve Messaging: NeClix are all Crea:ve Messaging: NeClix invest Crea:ve Messaging: NeClix is compe::vely about providing choice for customers heavily In new programming like priced and has a customer service that is Hemlock Grove second to none Reasons to Believe: Brand name Reputa:on Reasons to Believe: Word of mouth/ Reasons to believe: Industry leader, word of recall from success of House of Cards mouth, Internet search. Published data Media Media Media Rich Media Earned Media NeClix Website Banner Ads Social Adver:sing Owned Social Social Media Ads Banner Adver:sing Search Home Page Takeovers Microsite Social Ads
- 55. Campaign Tactics
- 56. 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
- 57. 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
- 59. Campaign KPI s
- 60. 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 Purchase Increase Subscrip:on numbers by 10 million in twelve months Preference 20% increase in purchase preference 40% recall for Hemlock amongst teen target Consideration 80 million visitors to website and FB page Awareness 150 million page impressions to target audience
- 61. Samples
- 62. exclusive content-Anyway you like it We re All About Choice Welcome Back Michael! Recommended for you! Recommended New Releases Genres Website Michael’s Top 10 With Social Share The Love Media Links Join Us!
- 63. A Netflix exclusive, Anyway You Like it We’re All About Choice
- 64. The Best choice of Titles. Anyway You like it We’re All About Choice
- 65. The Road Ahead
- 66. 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.
- 67. 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.
- 68. Thanks Michael Browne michaeltbrowne@gmail.com @rontherocket