Netflix Marketing Plan

Essay by HYPERSDTA+, November 2008

download word file, 19 pages 5.0

Netflix Marketing PlanMarketing plans play a vital role in the creation of new products or services. Whether it is a new organization or an existing one looking to add a new product or service a marketing plan is needed to help insure effective, efficient, and prosperous results. This can be seen in the development of the new video game rental service offered by Netflix.

NetflixNetflix is the world's largest online DVD movie rental service, offering more than 4 million members access to 55,000 titles. Their appeal and success is built on providing the most expansive selection of DVDs; an easy way to choose movies; and fast, free delivery (Netflix, 2006). Netflix is headquartered in Los Gatos, California, and has 37 shipping centers nationwide. At Netflix, members have the choice of eight subscription plans, starting at $9.99 per month for unlimited rentals with one DVD out at a time. With the most popular plan of $17.99

a month, members rent as many DVDs as they want and keep them as long as they want, with three movies out at a time. Members enjoy fast and free delivery, which reaches more than 90 percent of members with generally one business-day delivery and free, prepaid return envelopes are provided. With no commitments, members can cancel anytime, and with no late fees and no due dates their online movie rental model has eliminated the hassle involved in choosing, renting, and returning movies.

New ServiceAlthough Netflix works hard to provide a convenient, fast, and affordable service they are still missing a part of their target market. With the goal of replacing local video stores Netflix must match all services that are provided, and this should include video game rentals. With an effective DVD rental system already in place, the new game rental system will be...