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Thank You For…
An Integrated Marketing Communications and Public Relations Campaign
Alpha Marketing Consultants
12/12/2019
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Executive Summary
The current media landscape of streaming services and other aggregators is causing an influx in
competition for Netflix. As more companies jump into the streaming race, they are cordoning off
content into a wider array of exclusivity silos. There is now an increase in individual packages
forcing subscribers to hunt among a myriad of streaming services to search for specific content.
This subscription fatigue may likely worsen by a slate of more high-quality original programming
appearing on various aggregators. This rise in exclusive content is pushing consumers back
towards piracy whether they are using someone else’s account or illegally streaming content. This
integrated marketing and public relations campaign suggests way in which to deter piracy using
positive messaging to consumers.
Company Analysis
Netflix, Inc. is an American media provider and production company that was founded in 1997 by
Reed Hastings and Marc Randolph. Currently headquartered in Los Gatos, California, Netflix’s
primary market is subscription-based film and television program streaming, including in-house
productions. The company’s initial services included both DVD sales and rentals by mail. In 2010,
Netflix expanded its business endeavors with the introduction of streaming media in additional to
DVD and Blu-ray rentals. Netflix expanded internationally by offering services in Canada, Latin
America, and the Caribbean. The company entered the content-production industry in 2012 with
the debut of its first original series, Lilyhammer (Pogue, 2007). By January 2016, Netflix operated
in more than 190 countries world-wide and released more than 126 original series and films.
Netflix currently has more than 30 million streaming members, making Netflix the world's leading
internet subscription service for media programming (Minyaya, 2016).
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Company Objectives
Netflix’s core strategy is to expand the streaming subscription business both domestically and
globally. The company focuses on enhancing user interface while staying within the parameters of
consolidated net income and operating segment contribution profit targets. Netflix promises its
customers stellar service, suppliers a valuable partner, investors the prospects of sustained
profitable growth, and employees the allure of huge impact by:
1. Becoming the best global entertainment distribution service;
2. Licensing entertainment content around the world;
3. Creating markets that are accessible to film makers;
4. Helping content creators around the world to find a global audience.
Marketing/Public Relations Objectives
After revolutionizing the television landscape with its streaming service, Netflix began unveiling
its own original shows in 2012. The Netflix Original library is now a key component of the total
Netflix library list that viewers can carefully craft towards their next binge session. Research
suggests that recent surges in piracy are jeopardizing the viewing experience that only Netflix can
offer. The current media landscape of streaming services and other aggregators is causing an influx
in competition for Netflix. As more companies jump into the streaming race, they are cordoning
off content into a wider array of exclusivity silos. There is now an increase in individual packages
forcing subscribers to hunt among a myriad of streaming services to search for specific content.
This subscription fatigue may likely worsen by a slate of more high-quality original programming
appearing on various aggregators. This rise in exclusive content is pushing consumers back
3
towards piracy whether they are using someone else’s account or illegally streaming content. Our
research suggests ways to counteract this.
Netflix’s marketing and public relations objectives are to increase revenue from Netflix Originals
by:
1. Promoting Netflix as an inexpensive alternative to cable and a staple of the streaming
industry and;
2. Cultivating an anti-piracy message centered around these Netflix Original works to protect
quality of content.
Company Resources
Netflix currently possess top-quality streaming IT infrastructure, warehouses, offices, storage
facilities and machinery to conduct their services. Additionally, Netflix employs over 3,700
individuals that assist in daily operations of business. To protect the brand, Netflix also utilizes a
combination of trademarks and patents to protect their brand. Netflix also tied its increase in
programmatic spend to its goal to improve the ability to do individualized marketing and public
relations at scale. Lastly, this campaign allows for the budget of $250,000 in overall spending. The
use of Netflix's own actors, personnel, and filming capabilities will also be utilized as a major
resource during this campaign.
Marketing/Public Relations Program
This campaign is aimed to deter piracy while simultaneously allowing us to gather new customers
and keep our existing ones by promoting Netflix as a necessity. It is necessary to remind users that
piracy is not a victimless crime. We suggest running a campaign that will feature not only actors,
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but all personnel that assists in creating Original content. While we are combating a negative aspect
of the industry, we do not want to come across as negative to our audience. We will instead run
several commercials on our website that thank our audience for not pirating. Additionally, we will
run this message before the beginning of an episode or movie featured on Netflix. The thank you
campaign will also be aimed at current and new members to thank them for using our services. We
also suggest promoting exclusive deals for Netflix users as an additional way to thank them.
Marketing/Public Relations Collaborators
For this campaign, we will primarily be partnering with our in-house personnel, such as our writers,
directors, hair and make-up department, costume designers, and the like. We will also be
collaborating with Spotify and Universal Studios to promote this campaign.
Product – Market
The cable television industry began in the 1950s and became an entertainment staple for the next
half century. In the 1990s, Programming evolved from basic to digital cable, offering up better
picture quality for viewers. Within the last decade, traditional cable television subscribers began
to dwindle. One notable issue consumers found with cable television is paying high prices for
excessive amounts of viewing content. According to eMarketer, nearly 25% of US households will
drop traditional TV by 2022. Streaming has taken the media landscape by storm over the last
decade, posing a serious threat to the end of traditional cable television. With the advancement of
broadband internet and adequate streaming technology, major media conglomerates have made
viewing movies and television shows far more accessible than ever before. In 2005, Netflix began
providing “on-demand” television or video streaming services, promoting the freedom to watch at
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the customers’ convenience. The provides consumers with the power to watch media programming
on any screen, whether it be a mobile device, laptop, or television set—all while having a
personalized experience (Perez, 2017).
The global video streaming market size was valued at $36.64 billion in 2018 and is anticipated to
expand at a CAGR of 19.6 percent between 2019 to 2025. Additions such a block-chain technology
and Artificial Intelligence (AI) are anticipated to increase revenue by improving video quality in
the market. Currently in the streaming service provider industry, AI is creating a vital role in
editing, scoring, cinematography, voice-overs, scriptwriting and other aspects of video production.
Various providers use AI to improve content quality. The popularity of online streaming is
predicted to continue rising over the next few years with rapid adoption of social media platforms
and other digital media that is currently fueling content marketing. Growing adoption of cloud-
based video streaming solutions for increasing the reach of video content is positively influencing
the market growth. This trend is majorly observed in numerous parts of North America and Asia
Pacific and allows for more potential consumers to reached. High adoption of digital technology
across various verticals has led to the inclination of the U.S. population toward various streaming
solutions and services (“Video Streaming Market Size”, 2019). A 2018 study from Sandvine’s
Global Internet Phenomena report offers an understanding of streaming consumers and their
internet usage. One relevant insight into their study is that Netflix alone comprises 15 percent of
all internet downstream data consumed (Sandvine, 2019).
Demographic Data on Target Market
With consideration to our previous research, “Piracy and Preferences: The Streaming Habits of
Netflix Users,” our proposed target market for this campaign are millennials (and older members
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of generation Z) who have access to the internet. According to Pew Research Center, Millennials
are people between the ages of 21 and 36 who were born between 1981-1996. Millennials are
today’s largest living generation whose population totals over 92 million. Their collective buying
power estimated at $200 billion. In comparison to its counterparts, this generation is well-known
for its adoption of new technology and rejection of traditional advertising. Hispanics largest ethnic
minority among millennials. According to the research, Millennials are (Mediakix):
 Well-Educated: percent of millennial females and 26 percent of millennial males have a
bachelor degree.
 Single: 57 percent have never been married.
 Parents: One in four Millennials are parents.
 Minorities: Millennials are more likely to be racial or ethnic minorities.
 City-Dwelling: 88 percent of Millennials live in metro areas
Customer Needs – Perceptual Map
Our perceptual map is based upon the staring prices of each individual streaming service provider
in the market. The placement of the following companies is based on the monthly subscription
price of the service in relation to available content and customization. The starting subscription
price per month (rounded to the nearest dollar) of each provider is listed below (Honorof, 2019):
 Netflix: $9.00
 Hulu: $6.00
 Amazon Prime Video: $9.00
 Sling TV: $25.00
 Crackle: Free
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 HBO GO: $15.00
 Disney Plus: $7.00
Qualifying and Determining Dimensions
Qualifying dimensions are those core features determined to be necessary for all segments of a
market. The qualifying dimensions in the streaming service provider market include access to the
internet and a device that can support the provider’s platform. Determining dimensions are those
features specific to each market segment. The determining dimensions for this market are content
options, customization and usability, and price.
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In-Depth Description of Target Market
Millennials were born into a generation of options and the ever-expanding world of choice. This
group is often referred to as the “digital natives” as they are the first generation to experience the
digital world since birth. Thus, they are naturally comfortable with technology and are the
innovators and earl adopters of society. According to a study by the McCarthy Group, 47 percent
of respondents among this age range mentioned that they internet was the one thing that they were
unable to live without. To successfully market to this audience, brands must be able to leverage
the power of digital channels (“Defining your target audience,” 2016).
Millennials are focused on saving. In spite of the buying power than most millennials demonstrate,
this target earns 20 percent less than their parents did at the same age. The average salary of
someone that is between the age of 25 to 34 is approximately $40,000 (Animalz, 2018). This group
also owns less property than older generations. Renting and ride-sharing are more prevalent
options for someone in the target. Millennials are savings-driven with one in six individuals having
saved more than $100,000 in their lifetime thus far. Brands should speak to Millennials frugalness
when marketing to them. Advertising and sales people are ranked the lowest in trust for millennials
and they consult with others before making any purchases. A staggering 91 percent of millennials
buy based on recommendations from friends (Annex Cloud). Millennials are not impulse-
shoppers. Word-of-mouth both on and offline are the most successful forms of building brand
awareness and trust for this target. Approximately 35 percent of respondents from the survey stated
that consult websites to gather information before making a purchase. They want to make sure
they’re getting the best price for an item, so they leverage a lot of channels in order to find this
information.
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Ipsos Research discovered that 64 percent of millennials follow that brands that they are interested
in on social media. This target market is looking for holistic experiences from companies they are
interested in purchasing from with identities that align to their values. Almost 49 percent of
millennials see shopping more as a social activity than an errand (Olya, 2018). Millennials who
shop online are interested in the user experience more than buying products, and those who shop
in stores enjoy browsing through stores, grabbing lunch, and spending time with friends. The social
and engaging aspects of shopping mean that 78 percent of millennials would rather spend their
money on experiences than coveted goods (Anders, 2014). Millennials seek entertainment,
customization, and making sure that their feedback is heard when building relationships with
brands. In fact, two-thirds of this audience cite that companies should offer more options to share
their opinions online, according to a study conducted by Bazaarvoice.
Key Personas
According to Campaign Creators, there are six types of millennials that brands should consider in
order to successfully market to this target (Afsari). For this campaign we will focus on the
“Hippennials” as well as the “Clean and Green Millennials” because they are most relevant to
fulfilling our objectives. The following personas are listed below:
1. Hippennials: “I can make the world a better place.”
 Cautious consumer, global, charitable, and information hungry
 Greatest user of social media, but does not push/contribute content, looking for
entertainment
 Female dominated, below average employment due to students and homemakers.
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2. Clean and Green Millennial: “I take care of myself and the world around me.”
 Impressionable, cause driven, healthy, green, and positive
 Greatest contributor of content, usually cause related
 Male dominated, above average
 Hispanic and full time student, youngest segment
Competitor Analysis
The market for streaming service providers is increasingly crowded, with no competition entering
the playing field frequently. Netflix currently has many competitors, with the recent launch of
Disney+ being the newest on the market. What audiences are watching and how they choose to
watch is constantly changing in this media landscape. According to Nielsen's Total Audience
Report from the first quarter of 2019, consumers are using their television sets even less than last
year, opting towards apps and web-based streaming on smartphones and tablets instead (Neilsen,
2019).
Netflix is one of the biggest contributors to the cord-cutting phenomenon in the last decade as it
provides quality original content at an affordable price (Delventhal, 2018). Netflix is also easily
accessible, as its platform spans its own application, smart televisions, gaming consoles, streaming
media players, and of course online. In the second quarter of 2019, Netflix had about 158 million
subscribers across the globe, making it the highest grossing streaming service. Netflix offers a
range of different viewing options across various countries. The company is consistently cycling
through titles each month, allowing the most popular titles to stay. Netflix encompasses various
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genres to watch for viewing on its platform, such as feature films, documentaries, anime, television
shows including Netflix Originals, and much more (Moskowitz, 2019). The subscription packages
of Netflix are as follows:
 The Basic Plan: This is $8.99 per month and comes with very few features. Subscribers
can only stream on one device at a time, and it's restricted to standard definition (SD).
 The Standard Plan: At $12.99 a month, this increases viewing to high definition (HD) on
two different screens.
 The Premium Plan: This plan is the highest one at $15.99 per month, allowing subscribers
to stream on four different screens simultaneously in HD.
There are several different competitors that threaten to chip away at market share from Netflix,
including Amazon, Hulu, and Disney+, as well as some of the cable channels' subscription
services. The following analysis will focus on Netflix’s three main competitors:
Amazon Prime Video
The biggest competitive threat to Netflix is Amazon Prime Video. Currently, Amazon Prime Video
has roughly 97 million subscribers. Amazon’s unique selling proposition here is that its
membership to Amazon Prime not only includes free two-day shipping, but its streaming services
as well. The cost for this membership is $119 per year or $12.99 if monthly. The subscription cost
for a student is $59 per year or $6.49 per month. Amazon Prime Video is also available on its own
for $8.99 per month which rivals Netflix’s basic plan (Seth,2019). Amazon Prime Video, much
like Netflix, offers thousands of titles to subscribers ranging from feature films, documentaries,
and television shows, including its own original content. Users can access the platform form in the
same ways they can access Netflix.
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Hulu
Hulu is similar to Netflix in the fact that they too started off as a DVD rental service that paved its
way into the streaming subscription industry. According to Forbes, Hulu has fewer subscribers
than Netflix and Amazon with around 79 million paid subscriptions. The unique selling
proposition for Hulu is its ability to access direct television shows that are currently on the air.
Hulu, much like its competitors, also boasts its own successful original content and is available
across multiple access points, like Netflix. Hulu uses a hybrid subscription and advertising model,
which can make it much more affordable than the competition (Levy, 2019). Consumers pay $5.99
each month for the first year for the basic service. This package comes with ads. Subscribers who
don't care for commercials can opt to go for the more expensive package at $11.99 every month.
Disney
Disney+ is a recently launched on-demand, commercial-free service whose unique selling
proposition is housing the entire library of Disney movies along with original television series that
are exclusively owned by Disney. Included in the library are titles from Pixar, Marvel, features
from the Star Wars enterprise, as well as National Geographic options. Additionally, every season
of The Simpsons and select 21st Century Fox films. Unlike other streaming subscriptions, Disney+
does not currently have a cap on how many users can have access to one paid subscription.
Subscribers are slated to get unlimited downloads to watch wherever and whenever they choose.
Currently, Disney+ is $6.99 per month or $69.99for an entire year.
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SWOT Analysis
Throughout the course of this campaign, we will keep in mind this SWOT analysis for Netflix as
a company. This will serve as a reminder of what is and is not working throughout this campaign
and what aspects of the campaign may need additional focus. The SWOT analysis is as follows:
Specific (SMART) Objective
The two primary objectives for this campaign are to promote Netflix is a staple in the streaming
service industry while simultaneously deterring piracy of content from occurring. The basis if this
campaign is to thank new and future subscribers for their continued patronage and lawfulness. The
specific, measurable, attainable, realistic, and time-bound objectives for this campaign are to
increase Netflix Original series viewership by ten percent with a deadline of December 31, 2020.
Differentiation and Positioning
At the beginning of the decade (and even as recent as several years ago), Netflix was the primary
streaming service provider in the market. While the company first started out as DVD mailing
service, it has since evolved its unique selling proposition to streaming third-party content, original
Strengths:
• High brand
equity of
Netflix
• Large platform
of content
producers and
consumers
• Capacity for
original content
creation
Weaknesses:
• Imitable
business model
and emerging
competitors
• Dependence on
content
producers
• Dependence on
Internet service
providers
Opportunities:
• Growth
through
expansion of
product mix
• Penetration in
new markets
• Business
diversification
into other
industries or
markets
Threats:
• Competition
and imitation
• Entertainment
media/content
piracy
• Cybercrime
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series, movies, and more. However, as the landscape of streaming services has changed and
become increasingly saturated, more options have become available to consumers.(Welch, 2019).
HBO Now gives users the benefit of accessing content only available on HBO Servers. Disney+
hosts a library of Marvel, Star Wars, Disney Animated Classics, and more. Hulu is known for
housing currently airing programming and Amazon Prime Video is backed by the Prime
subscription services.
Netflix created a sustainable, competitive advantage that spanned well over a decade. Netflix's
commissioning of quality original programming, combined with premium content deals is offering
a compelling and differentiated value proposition to online audiences. However, Netflix has
reached its maturity stage in the industry that it pioneered. During the maturity stage, sales will
peak as the product reaches market saturation, and competition will grow increasingly fierce.
Netflix is currently experiencing just that: stagnation due to oversaturation. What will keep Netflix
at an advantage above its competitors is its Netflix Original content and access to titles that can
only be found on its platform. It is important to continue to promote these differentiating factors
throughout the campaign as they become one of the primary reasons to continue using Netflix’s
services.
Netflix positioning has remained consistent and clear throughout its operation. The platform is
easily accessible from anywhere anytime, providing rich experience and broadcast quality video
ultimately meant to fulfill the digital consumption desire of its audience. Netflix can use its current
maturity stage as an advantage over their competitors. As a staple of the streaming industry, Netflix
perpetuates a culture like no other as it reemphasizes excitement and creates a conversation over
those who view its content. For millennials, Netflix is an imperative part of culture that delivers
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unique, customized content to consumers. The phrase “Netflix and Chill” has become a
commonplace idiom amongst our target audience that is not found in relation to our competitors.
With the current market saturation, it is important that Netflix maintain its current position while
adjusting its tactics to be more customer-centric in order to thrive.
Marketing/Public Relations Strategy
For the purpose of this campaign, we are focusing on two target demographics which will enable
our proposed action plans to better meet the company’s bottom line: noncustomers and present or
returning customers. The goal of this campaign is to reposition Netflix as a staple of the streaming
industry and a necessary expense for customers. Additionally, the strategies and tactics to reach
this goal must be coupled with a message to deter consumers from pirating content exclusively
found on Netflix. Below are the strategies that will be utilized in this campaign:
Target Market 1: Noncustomers
The theme of the campaign is thanking consumers for their patronage and lawful use of
Netflix content. This campaign will extend a one-month free trial to noncustomers in effort
to persuade them to join once the trial period is over. The campaign will enable messaging
that will thank this market for giving Netflix a chance to curry their favor as a streaming
service. Once the one-month free trial period has ended, consumers will be presented with
purchase plan options, including a one-time lower priced basic package subscription that
will be locked in for one year as an additional thanks for joining Netflix. This package is
normally valued at $8.99 per month, but will be available to those who complete the free
trial for $7.99 per month. Paid advertisements will promote this campaign across various
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social media platforms such as Twitter, Instagram, and Facebook. Additionally, this offer
will be available on Netflix as well to encourage those who using another individual’s
account to take the risk-free opportunity to try their own. A hyperlink will be available
from all advertisements that will link to a sign-up page for the free trial.
Target Market 2: Present or Returning Customers
In partnership with the previous tactic, this promotion will also incorporate a message of
gratitude for current and returning customers. This campaign will allow this target to take
advantage of a limited time promotion to receive one free month of viewing with their
current plan or entice returning customers to renew their Netflix subscription. In relation
to the promotion of new customers, this target market will also be allowed to renew their
subscription at a lower price for one day only on Thanksgiving day. Additionally, Netflix
will partner with Spotify to create a new bundled package that will be available for $10.99
monthly with a one-year subscription for new and returning customers as another limited
time promotion to thank these customers for their continued subscription to Netflix. The
advertisements targeted to this group will include actors from Netflix Original series that
will promote this bundled package while thanking the customer for keeping content
exclusive to Netflix. During this time, the campaign will also air the testimonials of actors
and how they are thankful to their audience. Paid advertisements will promote this
campaign across various social media platforms such as Twitter, Instagram, and Facebook
and hyperlink to the subscription page. These testimonials will also be featured before each
episode of a Netflix Original series.
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Implementation and Control
The implementation and control of this integrated marketing communications and public relations
campaign serves to ensure the achievement of the strategic objectives stated earlier in this plan.
The following will provide a comprehensive list of activities to be performed, responsibilities of
personnel, and needed resources. This section will also feature timing of implementation, budget,
and contingency plans.
Implementation Problems to Overcome
Research has determined several factors to consider in regards to implementing this
communication plan effectively to the target markets listed earlier:
1. Saturation: The streaming service provider ecosystem is constantly evolving. New
competitors are entering the market yearly. With the recent addition of Disney+, many
streaming service providers have introduced promotions to gain market share. Netflix
will differentiate itself from competitors by implementing the “Thank You For…”
campaign to create a dialogue and start a conversation with the target market. This
campaign will create a narrative for consumers which current competitors are lacking.
2. Awareness: It is vital to the success of this campaign to ensure that potential customers
are aware of future and current promotions in this oversaturated industry. Research
suggests that the target market (Millennials) are avid social media users. This
communications plan will implement several social media campaigns from January 1,
2020 to December 31, 2020 to increase awareness of any promotions that take place
during length of this campaign.
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3. Supply and Demand: One tactic this campaign will utilize is the issuing of discounted
and/or free services with subscriptions. As the overall bottom line of the campaign is
to meet and exceed profit margins, this campaign is committed to generating long-term
revenue by using a customer-centric approach. To ensure only necessary losses are
incurred, Netflix will promote campaigns that are time-sensitive. Additionally, any free
services are gifted with purchase of contracted, subscription-based plans that will
continue to generate revenue once the free-trial period has ended.
Controls
The main objective for controls is the monitoring and evaluation of the marketing activities
implemented throughout the campaign. This plan suggests recording and reporting all marketing
efforts and deviations to the intended personnel. The following controls are necessary for the
successful implementation of strategies and tactics listed earlier in this campaign by:
 Monitoring the success of the social media campaigns implemented throughout the plan by
running monthly sales reports
 Creating focus groups to evaluate the content created throughout the campaign before
publishing
 Adhering to SMART goals listed earlier in the campaign and setting Key Performance
Indicators to meet throughout the campaign
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Budget, Sales, and Forecasting
A budget is one of the most integral pieces of a marketing plan and vital to the overall success of
the campaign. Few brands have the fortitude to run marketing on their own without much reliance
on advertising agencies, but Netflix is an exception (Chen, 2019). This campaign will be run
completely in-house, assisting in minimizing the overall use of the budget. Promotional efforts for
this campaign will be made over social media, using Facebook, Twitter, and Instagram. Social
media sites continue to gain popularity, and they are extremely effective for marketing. Social
media possess he ability to connect with current and potential customers. It also allows companies
and organizations to develop relationships that encourage consumers to purchase products and
service while determining how much a company will spend upfront. The total budget for this
campaign will be $250,000.00. Social media buys for the campaign will be budgeted at $5,000.00
per month or $60,000.00 total. The remaining budget will total no more than $140,000.00 and be
used for paying actors, staff and personnel, and equipment expenses. As Netflix possess all of
these services in-house, an approximate spend is not applicable as many of these tactics can be
factored into contracts with Netflix’s employees, actors, and partnership with Spotify. The reaming
$50,000.00 will be used in the contingency plan if needed. This campaign will span one full year
from January 1, 2020 until December 31, 2020.
Contingency Plan
As Disney+, Apple and other streaming threats continue to emerge, Netflix has begun to put
together contingency plans to stay ahead of the curve while reducing its mounting debt. Netflix
will set aside $50,000.00 of its $250,000.00 budget for unexpected expenses. The following table
is the condensed contingency plan for this campaign:
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Risk Preparation Response
Network and/or Platform
Failure
Backup servers on standby Report issues immediately,
issue apology to customers,
utilize backup servers
Advertisements Fail to
Resonate with Target
Market
Research key markets Stop all paid advertising, use
contingency budget to
revamp campaign
Spotify Partnership Fails Contract, with option to
cancel or buyout
Move forward with penalty-
free cancelation of
partnership
Lack of Funds Create a contingency budget Pull from budget if needed
Misplaced/Stolen/Destruction
of Advertising Content
The Cloud/backup storage Recover lost content from
server
Data Breach Prepared legal team and
encryption
Issue apology, create press
release, create timeline for
updates
Actors and Personnel Contract, with option to
cancel or buyout
Move forward with penalty-
free cancelation of
employment
Overload of Promotion Only offer for a limited time Immediately pull
subscription link from
website, stop advertising
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Capstone Project

  • 1. Thank You For… An Integrated Marketing Communications and Public Relations Campaign Alpha Marketing Consultants 12/12/2019
  • 2. 1 Executive Summary The current media landscape of streaming services and other aggregators is causing an influx in competition for Netflix. As more companies jump into the streaming race, they are cordoning off content into a wider array of exclusivity silos. There is now an increase in individual packages forcing subscribers to hunt among a myriad of streaming services to search for specific content. This subscription fatigue may likely worsen by a slate of more high-quality original programming appearing on various aggregators. This rise in exclusive content is pushing consumers back towards piracy whether they are using someone else’s account or illegally streaming content. This integrated marketing and public relations campaign suggests way in which to deter piracy using positive messaging to consumers. Company Analysis Netflix, Inc. is an American media provider and production company that was founded in 1997 by Reed Hastings and Marc Randolph. Currently headquartered in Los Gatos, California, Netflix’s primary market is subscription-based film and television program streaming, including in-house productions. The company’s initial services included both DVD sales and rentals by mail. In 2010, Netflix expanded its business endeavors with the introduction of streaming media in additional to DVD and Blu-ray rentals. Netflix expanded internationally by offering services in Canada, Latin America, and the Caribbean. The company entered the content-production industry in 2012 with the debut of its first original series, Lilyhammer (Pogue, 2007). By January 2016, Netflix operated in more than 190 countries world-wide and released more than 126 original series and films. Netflix currently has more than 30 million streaming members, making Netflix the world's leading internet subscription service for media programming (Minyaya, 2016).
  • 3. 2 Company Objectives Netflix’s core strategy is to expand the streaming subscription business both domestically and globally. The company focuses on enhancing user interface while staying within the parameters of consolidated net income and operating segment contribution profit targets. Netflix promises its customers stellar service, suppliers a valuable partner, investors the prospects of sustained profitable growth, and employees the allure of huge impact by: 1. Becoming the best global entertainment distribution service; 2. Licensing entertainment content around the world; 3. Creating markets that are accessible to film makers; 4. Helping content creators around the world to find a global audience. Marketing/Public Relations Objectives After revolutionizing the television landscape with its streaming service, Netflix began unveiling its own original shows in 2012. The Netflix Original library is now a key component of the total Netflix library list that viewers can carefully craft towards their next binge session. Research suggests that recent surges in piracy are jeopardizing the viewing experience that only Netflix can offer. The current media landscape of streaming services and other aggregators is causing an influx in competition for Netflix. As more companies jump into the streaming race, they are cordoning off content into a wider array of exclusivity silos. There is now an increase in individual packages forcing subscribers to hunt among a myriad of streaming services to search for specific content. This subscription fatigue may likely worsen by a slate of more high-quality original programming appearing on various aggregators. This rise in exclusive content is pushing consumers back
  • 4. 3 towards piracy whether they are using someone else’s account or illegally streaming content. Our research suggests ways to counteract this. Netflix’s marketing and public relations objectives are to increase revenue from Netflix Originals by: 1. Promoting Netflix as an inexpensive alternative to cable and a staple of the streaming industry and; 2. Cultivating an anti-piracy message centered around these Netflix Original works to protect quality of content. Company Resources Netflix currently possess top-quality streaming IT infrastructure, warehouses, offices, storage facilities and machinery to conduct their services. Additionally, Netflix employs over 3,700 individuals that assist in daily operations of business. To protect the brand, Netflix also utilizes a combination of trademarks and patents to protect their brand. Netflix also tied its increase in programmatic spend to its goal to improve the ability to do individualized marketing and public relations at scale. Lastly, this campaign allows for the budget of $250,000 in overall spending. The use of Netflix's own actors, personnel, and filming capabilities will also be utilized as a major resource during this campaign. Marketing/Public Relations Program This campaign is aimed to deter piracy while simultaneously allowing us to gather new customers and keep our existing ones by promoting Netflix as a necessity. It is necessary to remind users that piracy is not a victimless crime. We suggest running a campaign that will feature not only actors,
  • 5. 4 but all personnel that assists in creating Original content. While we are combating a negative aspect of the industry, we do not want to come across as negative to our audience. We will instead run several commercials on our website that thank our audience for not pirating. Additionally, we will run this message before the beginning of an episode or movie featured on Netflix. The thank you campaign will also be aimed at current and new members to thank them for using our services. We also suggest promoting exclusive deals for Netflix users as an additional way to thank them. Marketing/Public Relations Collaborators For this campaign, we will primarily be partnering with our in-house personnel, such as our writers, directors, hair and make-up department, costume designers, and the like. We will also be collaborating with Spotify and Universal Studios to promote this campaign. Product – Market The cable television industry began in the 1950s and became an entertainment staple for the next half century. In the 1990s, Programming evolved from basic to digital cable, offering up better picture quality for viewers. Within the last decade, traditional cable television subscribers began to dwindle. One notable issue consumers found with cable television is paying high prices for excessive amounts of viewing content. According to eMarketer, nearly 25% of US households will drop traditional TV by 2022. Streaming has taken the media landscape by storm over the last decade, posing a serious threat to the end of traditional cable television. With the advancement of broadband internet and adequate streaming technology, major media conglomerates have made viewing movies and television shows far more accessible than ever before. In 2005, Netflix began providing “on-demand” television or video streaming services, promoting the freedom to watch at
  • 6. 5 the customers’ convenience. The provides consumers with the power to watch media programming on any screen, whether it be a mobile device, laptop, or television set—all while having a personalized experience (Perez, 2017). The global video streaming market size was valued at $36.64 billion in 2018 and is anticipated to expand at a CAGR of 19.6 percent between 2019 to 2025. Additions such a block-chain technology and Artificial Intelligence (AI) are anticipated to increase revenue by improving video quality in the market. Currently in the streaming service provider industry, AI is creating a vital role in editing, scoring, cinematography, voice-overs, scriptwriting and other aspects of video production. Various providers use AI to improve content quality. The popularity of online streaming is predicted to continue rising over the next few years with rapid adoption of social media platforms and other digital media that is currently fueling content marketing. Growing adoption of cloud- based video streaming solutions for increasing the reach of video content is positively influencing the market growth. This trend is majorly observed in numerous parts of North America and Asia Pacific and allows for more potential consumers to reached. High adoption of digital technology across various verticals has led to the inclination of the U.S. population toward various streaming solutions and services (“Video Streaming Market Size”, 2019). A 2018 study from Sandvine’s Global Internet Phenomena report offers an understanding of streaming consumers and their internet usage. One relevant insight into their study is that Netflix alone comprises 15 percent of all internet downstream data consumed (Sandvine, 2019). Demographic Data on Target Market With consideration to our previous research, “Piracy and Preferences: The Streaming Habits of Netflix Users,” our proposed target market for this campaign are millennials (and older members
  • 7. 6 of generation Z) who have access to the internet. According to Pew Research Center, Millennials are people between the ages of 21 and 36 who were born between 1981-1996. Millennials are today’s largest living generation whose population totals over 92 million. Their collective buying power estimated at $200 billion. In comparison to its counterparts, this generation is well-known for its adoption of new technology and rejection of traditional advertising. Hispanics largest ethnic minority among millennials. According to the research, Millennials are (Mediakix):  Well-Educated: percent of millennial females and 26 percent of millennial males have a bachelor degree.  Single: 57 percent have never been married.  Parents: One in four Millennials are parents.  Minorities: Millennials are more likely to be racial or ethnic minorities.  City-Dwelling: 88 percent of Millennials live in metro areas Customer Needs – Perceptual Map Our perceptual map is based upon the staring prices of each individual streaming service provider in the market. The placement of the following companies is based on the monthly subscription price of the service in relation to available content and customization. The starting subscription price per month (rounded to the nearest dollar) of each provider is listed below (Honorof, 2019):  Netflix: $9.00  Hulu: $6.00  Amazon Prime Video: $9.00  Sling TV: $25.00  Crackle: Free
  • 8. 7  HBO GO: $15.00  Disney Plus: $7.00 Qualifying and Determining Dimensions Qualifying dimensions are those core features determined to be necessary for all segments of a market. The qualifying dimensions in the streaming service provider market include access to the internet and a device that can support the provider’s platform. Determining dimensions are those features specific to each market segment. The determining dimensions for this market are content options, customization and usability, and price.
  • 9. 8 In-Depth Description of Target Market Millennials were born into a generation of options and the ever-expanding world of choice. This group is often referred to as the “digital natives” as they are the first generation to experience the digital world since birth. Thus, they are naturally comfortable with technology and are the innovators and earl adopters of society. According to a study by the McCarthy Group, 47 percent of respondents among this age range mentioned that they internet was the one thing that they were unable to live without. To successfully market to this audience, brands must be able to leverage the power of digital channels (“Defining your target audience,” 2016). Millennials are focused on saving. In spite of the buying power than most millennials demonstrate, this target earns 20 percent less than their parents did at the same age. The average salary of someone that is between the age of 25 to 34 is approximately $40,000 (Animalz, 2018). This group also owns less property than older generations. Renting and ride-sharing are more prevalent options for someone in the target. Millennials are savings-driven with one in six individuals having saved more than $100,000 in their lifetime thus far. Brands should speak to Millennials frugalness when marketing to them. Advertising and sales people are ranked the lowest in trust for millennials and they consult with others before making any purchases. A staggering 91 percent of millennials buy based on recommendations from friends (Annex Cloud). Millennials are not impulse- shoppers. Word-of-mouth both on and offline are the most successful forms of building brand awareness and trust for this target. Approximately 35 percent of respondents from the survey stated that consult websites to gather information before making a purchase. They want to make sure they’re getting the best price for an item, so they leverage a lot of channels in order to find this information.
  • 10. 9 Ipsos Research discovered that 64 percent of millennials follow that brands that they are interested in on social media. This target market is looking for holistic experiences from companies they are interested in purchasing from with identities that align to their values. Almost 49 percent of millennials see shopping more as a social activity than an errand (Olya, 2018). Millennials who shop online are interested in the user experience more than buying products, and those who shop in stores enjoy browsing through stores, grabbing lunch, and spending time with friends. The social and engaging aspects of shopping mean that 78 percent of millennials would rather spend their money on experiences than coveted goods (Anders, 2014). Millennials seek entertainment, customization, and making sure that their feedback is heard when building relationships with brands. In fact, two-thirds of this audience cite that companies should offer more options to share their opinions online, according to a study conducted by Bazaarvoice. Key Personas According to Campaign Creators, there are six types of millennials that brands should consider in order to successfully market to this target (Afsari). For this campaign we will focus on the “Hippennials” as well as the “Clean and Green Millennials” because they are most relevant to fulfilling our objectives. The following personas are listed below: 1. Hippennials: “I can make the world a better place.”  Cautious consumer, global, charitable, and information hungry  Greatest user of social media, but does not push/contribute content, looking for entertainment  Female dominated, below average employment due to students and homemakers.
  • 11. 10 2. Clean and Green Millennial: “I take care of myself and the world around me.”  Impressionable, cause driven, healthy, green, and positive  Greatest contributor of content, usually cause related  Male dominated, above average  Hispanic and full time student, youngest segment Competitor Analysis The market for streaming service providers is increasingly crowded, with no competition entering the playing field frequently. Netflix currently has many competitors, with the recent launch of Disney+ being the newest on the market. What audiences are watching and how they choose to watch is constantly changing in this media landscape. According to Nielsen's Total Audience Report from the first quarter of 2019, consumers are using their television sets even less than last year, opting towards apps and web-based streaming on smartphones and tablets instead (Neilsen, 2019). Netflix is one of the biggest contributors to the cord-cutting phenomenon in the last decade as it provides quality original content at an affordable price (Delventhal, 2018). Netflix is also easily accessible, as its platform spans its own application, smart televisions, gaming consoles, streaming media players, and of course online. In the second quarter of 2019, Netflix had about 158 million subscribers across the globe, making it the highest grossing streaming service. Netflix offers a range of different viewing options across various countries. The company is consistently cycling through titles each month, allowing the most popular titles to stay. Netflix encompasses various
  • 12. 11 genres to watch for viewing on its platform, such as feature films, documentaries, anime, television shows including Netflix Originals, and much more (Moskowitz, 2019). The subscription packages of Netflix are as follows:  The Basic Plan: This is $8.99 per month and comes with very few features. Subscribers can only stream on one device at a time, and it's restricted to standard definition (SD).  The Standard Plan: At $12.99 a month, this increases viewing to high definition (HD) on two different screens.  The Premium Plan: This plan is the highest one at $15.99 per month, allowing subscribers to stream on four different screens simultaneously in HD. There are several different competitors that threaten to chip away at market share from Netflix, including Amazon, Hulu, and Disney+, as well as some of the cable channels' subscription services. The following analysis will focus on Netflix’s three main competitors: Amazon Prime Video The biggest competitive threat to Netflix is Amazon Prime Video. Currently, Amazon Prime Video has roughly 97 million subscribers. Amazon’s unique selling proposition here is that its membership to Amazon Prime not only includes free two-day shipping, but its streaming services as well. The cost for this membership is $119 per year or $12.99 if monthly. The subscription cost for a student is $59 per year or $6.49 per month. Amazon Prime Video is also available on its own for $8.99 per month which rivals Netflix’s basic plan (Seth,2019). Amazon Prime Video, much like Netflix, offers thousands of titles to subscribers ranging from feature films, documentaries, and television shows, including its own original content. Users can access the platform form in the same ways they can access Netflix.
  • 13. 12 Hulu Hulu is similar to Netflix in the fact that they too started off as a DVD rental service that paved its way into the streaming subscription industry. According to Forbes, Hulu has fewer subscribers than Netflix and Amazon with around 79 million paid subscriptions. The unique selling proposition for Hulu is its ability to access direct television shows that are currently on the air. Hulu, much like its competitors, also boasts its own successful original content and is available across multiple access points, like Netflix. Hulu uses a hybrid subscription and advertising model, which can make it much more affordable than the competition (Levy, 2019). Consumers pay $5.99 each month for the first year for the basic service. This package comes with ads. Subscribers who don't care for commercials can opt to go for the more expensive package at $11.99 every month. Disney Disney+ is a recently launched on-demand, commercial-free service whose unique selling proposition is housing the entire library of Disney movies along with original television series that are exclusively owned by Disney. Included in the library are titles from Pixar, Marvel, features from the Star Wars enterprise, as well as National Geographic options. Additionally, every season of The Simpsons and select 21st Century Fox films. Unlike other streaming subscriptions, Disney+ does not currently have a cap on how many users can have access to one paid subscription. Subscribers are slated to get unlimited downloads to watch wherever and whenever they choose. Currently, Disney+ is $6.99 per month or $69.99for an entire year.
  • 14. 13 SWOT Analysis Throughout the course of this campaign, we will keep in mind this SWOT analysis for Netflix as a company. This will serve as a reminder of what is and is not working throughout this campaign and what aspects of the campaign may need additional focus. The SWOT analysis is as follows: Specific (SMART) Objective The two primary objectives for this campaign are to promote Netflix is a staple in the streaming service industry while simultaneously deterring piracy of content from occurring. The basis if this campaign is to thank new and future subscribers for their continued patronage and lawfulness. The specific, measurable, attainable, realistic, and time-bound objectives for this campaign are to increase Netflix Original series viewership by ten percent with a deadline of December 31, 2020. Differentiation and Positioning At the beginning of the decade (and even as recent as several years ago), Netflix was the primary streaming service provider in the market. While the company first started out as DVD mailing service, it has since evolved its unique selling proposition to streaming third-party content, original Strengths: • High brand equity of Netflix • Large platform of content producers and consumers • Capacity for original content creation Weaknesses: • Imitable business model and emerging competitors • Dependence on content producers • Dependence on Internet service providers Opportunities: • Growth through expansion of product mix • Penetration in new markets • Business diversification into other industries or markets Threats: • Competition and imitation • Entertainment media/content piracy • Cybercrime
  • 15. 14 series, movies, and more. However, as the landscape of streaming services has changed and become increasingly saturated, more options have become available to consumers.(Welch, 2019). HBO Now gives users the benefit of accessing content only available on HBO Servers. Disney+ hosts a library of Marvel, Star Wars, Disney Animated Classics, and more. Hulu is known for housing currently airing programming and Amazon Prime Video is backed by the Prime subscription services. Netflix created a sustainable, competitive advantage that spanned well over a decade. Netflix's commissioning of quality original programming, combined with premium content deals is offering a compelling and differentiated value proposition to online audiences. However, Netflix has reached its maturity stage in the industry that it pioneered. During the maturity stage, sales will peak as the product reaches market saturation, and competition will grow increasingly fierce. Netflix is currently experiencing just that: stagnation due to oversaturation. What will keep Netflix at an advantage above its competitors is its Netflix Original content and access to titles that can only be found on its platform. It is important to continue to promote these differentiating factors throughout the campaign as they become one of the primary reasons to continue using Netflix’s services. Netflix positioning has remained consistent and clear throughout its operation. The platform is easily accessible from anywhere anytime, providing rich experience and broadcast quality video ultimately meant to fulfill the digital consumption desire of its audience. Netflix can use its current maturity stage as an advantage over their competitors. As a staple of the streaming industry, Netflix perpetuates a culture like no other as it reemphasizes excitement and creates a conversation over those who view its content. For millennials, Netflix is an imperative part of culture that delivers
  • 16. 15 unique, customized content to consumers. The phrase “Netflix and Chill” has become a commonplace idiom amongst our target audience that is not found in relation to our competitors. With the current market saturation, it is important that Netflix maintain its current position while adjusting its tactics to be more customer-centric in order to thrive. Marketing/Public Relations Strategy For the purpose of this campaign, we are focusing on two target demographics which will enable our proposed action plans to better meet the company’s bottom line: noncustomers and present or returning customers. The goal of this campaign is to reposition Netflix as a staple of the streaming industry and a necessary expense for customers. Additionally, the strategies and tactics to reach this goal must be coupled with a message to deter consumers from pirating content exclusively found on Netflix. Below are the strategies that will be utilized in this campaign: Target Market 1: Noncustomers The theme of the campaign is thanking consumers for their patronage and lawful use of Netflix content. This campaign will extend a one-month free trial to noncustomers in effort to persuade them to join once the trial period is over. The campaign will enable messaging that will thank this market for giving Netflix a chance to curry their favor as a streaming service. Once the one-month free trial period has ended, consumers will be presented with purchase plan options, including a one-time lower priced basic package subscription that will be locked in for one year as an additional thanks for joining Netflix. This package is normally valued at $8.99 per month, but will be available to those who complete the free trial for $7.99 per month. Paid advertisements will promote this campaign across various
  • 17. 16 social media platforms such as Twitter, Instagram, and Facebook. Additionally, this offer will be available on Netflix as well to encourage those who using another individual’s account to take the risk-free opportunity to try their own. A hyperlink will be available from all advertisements that will link to a sign-up page for the free trial. Target Market 2: Present or Returning Customers In partnership with the previous tactic, this promotion will also incorporate a message of gratitude for current and returning customers. This campaign will allow this target to take advantage of a limited time promotion to receive one free month of viewing with their current plan or entice returning customers to renew their Netflix subscription. In relation to the promotion of new customers, this target market will also be allowed to renew their subscription at a lower price for one day only on Thanksgiving day. Additionally, Netflix will partner with Spotify to create a new bundled package that will be available for $10.99 monthly with a one-year subscription for new and returning customers as another limited time promotion to thank these customers for their continued subscription to Netflix. The advertisements targeted to this group will include actors from Netflix Original series that will promote this bundled package while thanking the customer for keeping content exclusive to Netflix. During this time, the campaign will also air the testimonials of actors and how they are thankful to their audience. Paid advertisements will promote this campaign across various social media platforms such as Twitter, Instagram, and Facebook and hyperlink to the subscription page. These testimonials will also be featured before each episode of a Netflix Original series.
  • 18. 17 Implementation and Control The implementation and control of this integrated marketing communications and public relations campaign serves to ensure the achievement of the strategic objectives stated earlier in this plan. The following will provide a comprehensive list of activities to be performed, responsibilities of personnel, and needed resources. This section will also feature timing of implementation, budget, and contingency plans. Implementation Problems to Overcome Research has determined several factors to consider in regards to implementing this communication plan effectively to the target markets listed earlier: 1. Saturation: The streaming service provider ecosystem is constantly evolving. New competitors are entering the market yearly. With the recent addition of Disney+, many streaming service providers have introduced promotions to gain market share. Netflix will differentiate itself from competitors by implementing the “Thank You For…” campaign to create a dialogue and start a conversation with the target market. This campaign will create a narrative for consumers which current competitors are lacking. 2. Awareness: It is vital to the success of this campaign to ensure that potential customers are aware of future and current promotions in this oversaturated industry. Research suggests that the target market (Millennials) are avid social media users. This communications plan will implement several social media campaigns from January 1, 2020 to December 31, 2020 to increase awareness of any promotions that take place during length of this campaign.
  • 19. 18 3. Supply and Demand: One tactic this campaign will utilize is the issuing of discounted and/or free services with subscriptions. As the overall bottom line of the campaign is to meet and exceed profit margins, this campaign is committed to generating long-term revenue by using a customer-centric approach. To ensure only necessary losses are incurred, Netflix will promote campaigns that are time-sensitive. Additionally, any free services are gifted with purchase of contracted, subscription-based plans that will continue to generate revenue once the free-trial period has ended. Controls The main objective for controls is the monitoring and evaluation of the marketing activities implemented throughout the campaign. This plan suggests recording and reporting all marketing efforts and deviations to the intended personnel. The following controls are necessary for the successful implementation of strategies and tactics listed earlier in this campaign by:  Monitoring the success of the social media campaigns implemented throughout the plan by running monthly sales reports  Creating focus groups to evaluate the content created throughout the campaign before publishing  Adhering to SMART goals listed earlier in the campaign and setting Key Performance Indicators to meet throughout the campaign
  • 20. 19 Budget, Sales, and Forecasting A budget is one of the most integral pieces of a marketing plan and vital to the overall success of the campaign. Few brands have the fortitude to run marketing on their own without much reliance on advertising agencies, but Netflix is an exception (Chen, 2019). This campaign will be run completely in-house, assisting in minimizing the overall use of the budget. Promotional efforts for this campaign will be made over social media, using Facebook, Twitter, and Instagram. Social media sites continue to gain popularity, and they are extremely effective for marketing. Social media possess he ability to connect with current and potential customers. It also allows companies and organizations to develop relationships that encourage consumers to purchase products and service while determining how much a company will spend upfront. The total budget for this campaign will be $250,000.00. Social media buys for the campaign will be budgeted at $5,000.00 per month or $60,000.00 total. The remaining budget will total no more than $140,000.00 and be used for paying actors, staff and personnel, and equipment expenses. As Netflix possess all of these services in-house, an approximate spend is not applicable as many of these tactics can be factored into contracts with Netflix’s employees, actors, and partnership with Spotify. The reaming $50,000.00 will be used in the contingency plan if needed. This campaign will span one full year from January 1, 2020 until December 31, 2020. Contingency Plan As Disney+, Apple and other streaming threats continue to emerge, Netflix has begun to put together contingency plans to stay ahead of the curve while reducing its mounting debt. Netflix will set aside $50,000.00 of its $250,000.00 budget for unexpected expenses. The following table is the condensed contingency plan for this campaign:
  • 21. 20 Risk Preparation Response Network and/or Platform Failure Backup servers on standby Report issues immediately, issue apology to customers, utilize backup servers Advertisements Fail to Resonate with Target Market Research key markets Stop all paid advertising, use contingency budget to revamp campaign Spotify Partnership Fails Contract, with option to cancel or buyout Move forward with penalty- free cancelation of partnership Lack of Funds Create a contingency budget Pull from budget if needed Misplaced/Stolen/Destruction of Advertising Content The Cloud/backup storage Recover lost content from server Data Breach Prepared legal team and encryption Issue apology, create press release, create timeline for updates Actors and Personnel Contract, with option to cancel or buyout Move forward with penalty- free cancelation of employment Overload of Promotion Only offer for a limited time Immediately pull subscription link from website, stop advertising
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