Netflix’s Market Research Strategy
Discuss About The Organization Use Strategiess To Conduct Market Research.
The aim of conducting marketing research is to understand consumer needs and identify changing trends within the consumer segments. It is essential for organizations to keep a track of changing consumer needs in order to fulfill these needs in an effective manner. Various organizations use different strategies to conduct market research. These strategies and tools include data collection followed by data analysis. This data analysis helps brands in effectively targeting customers and positioning the brand.
Streaming giant Netflix gathers data from viewers by seeking the genres that interests them. Post which, the brand carefully stores customer data including the history of the content viewed by the customers. Based on thorough analysis of the same, Netflix targets its customers effectively by suggesting them a carefully curated content that has been established after a thorough market research. It is the market research strategies adopted by the brand that has helped the streaming giant in gaining over 90 million subscribers across the globe (The conversation, 2017). Netflix efficiently displays its consumers the shows that they have ‘recently viewed’ as well as ‘suggestions for you’. This allows viewers with access to the most appropriate content leading to increased viewership and hence increased revenues for the brand. This strategy has also garnered a fierce loyalty to the brand.
Source 1: Netflix
Competition is an inevitable part of every industry that exists today. There are leading brands that are consistently competing with each other. Organizations aim to gain a competitive advantage over other businesses by attempting to differentiate themselves in terms of their offerings, pricing strategy, geographical location or promotion strategies.
Olay is a leading skincare brand that offers creams, lotions, sunscreens and skin tones. The brand has been specializing in resolving anti-aging problems and targets women over 50 years of age. management, with the increasing competition in the industry, it became essential for the brand to expand its target market and cater to the needs of women above 30 years of age. In order to do this, Olay started a new campaign ‘fight the seven signs of aging’ and targeted women in their mid-thirties (AdAge India, 2017). The idea behind targeting this particular market segment was that the overall disposable income for women above 50 was not very high and with the increasing competition from Lakme and L’Oreal, a price war was about to emerge. Therefore, in order to hedge an unforeseen loss, Olay defined this new target market. Olay is a renowned brand that consistently fought the competition that exists in the industry. Various new brands have entered the industry making the beauty industry a red ocean. However, Olay continues to hold the same market position and the brand image that have defined the brand since its inception.
Olay’s Market Research Strategy
Source 2: Souq
PESTLE analysis is a strategic marketing tool that helps businesses in understanding the industries that they operate in. Every time a new product or service is launched into the market or an existing brand enters a new market, PESTLE analysis helps the business in conducting a thorough analysis of the new geographic area where the business would enter. PESTLE analysis aims to throw light at the political, economic, social, technological, legal and environmental factors that dominate the new market.
Amazon Inc. is one of the largest growing Ecommerce business that has created a platform for buyers and sellers from different parts of the world. At present, Amazon services exist in the entire world except five countries. Every time Amazon enters a new country, the brand conducts a PESTLE analysis to understand various facets of the country that are important for the brand.
Political and legal requirements of the new country help Amazon with the legalities that the firm needs to fulfill before entering. Economic factors impacting the country help the brand in understanding income trends in the country and can hence help the brand in adopting the right pricing strategy. Social factors help Amazon in identifying the most appropriate promotion strategies.
The brand which exists in almost every part of the world and caters to many million customers across the globe, Amazon has itself banned 90% of its services to Iran (Techrasa, 2017). This is because after thorough analysis, the brand has identified that the lack of payment structures and access to credit cards or international payment options make it difficult for Amazon to receive payments. The political rivalry between US and Iran also make it difficult for the brand to operate effectively in Iran along with maintaining productive relationships in the US (CNN Money, 2017). Therefore, the services to this country are banned.
SWOT analysis of an organization throws light on the strengths and weaknesses of the business. This analysis helps marketers in conducting an internal and external analysis of the environment within which the organization functions. Leading businesses conduct SWOT analysis in order to understand the threats that are posed to the brand as well as opportunities that are presented.
Airbnb is a renowned name that has changed the shape of hospitality industry across the globe. Airbnb has adopted a unique business model by creating a bridge between travelers and tourists who need accommodation facilities for short durations and property owners who are willing to rent their properties for short durations in order to earn some extra money.
Amazon’s PESTLE Analysis
Source 3: Marketing Matters
Airbnb’s biggest strength is the large number of guests and hosts that are registered with the brand. The business ensures that it maintains and establishes long term relationships with these guests and hosts and follows a highly customer centric strategy. Despite being a massive player in the real estate business, Airbnb has never owned a single piece of property which makes the brand’s business model truly unique. Airbnb does not over promise and asks the hosts to share real pictures of the facilities. This has helped the brand in building trust among its consumers (. Airbnb started as a small business but saw a massive opportunity to dominate the market and immediately grabbed the same. This has been possible owing to a thorough analysis of the strengths of the brand and the ability to make the most of opportunities presented.
Segmentation is the process of dividing a market on the basis of various segments. These segments divide the customers on the basis of their lifestyles, age, caste, income groups or geographic locations. Once the market has been divided into these segments, businesses select the set of customers from these segments that the business aims to target. This group of customers forms the target market of the group. On the other hand, every brand holds a certain image in the minds of its consumers. This image is better known as brand positioning.
Starbucks is a perfect example of effective targeting and positioning. Starbucks target customers who are fond of coffee, need a quick snack but most importantly for people who are looking for a third place between their work and their homes. Starbucks has positioned itself as that third place and predominantly as a comfortable place with good food. The ambience of the outlets is suitable to hang out with friends and family as well as to conduct official meetings.
Source 4: Slideshare
Starbucks is a major success story by ensuring that the brand focuses on good quality coffee and an overall experience that is delivered to customers (LinkedIn, 2016). Since the inception, the leaders of the business had a clear vision about exactly what would the coffee chain become. There are various coffee shops that are competing with the brand at the moment, but it is the unique positioning strategy and the quality of the customer experience that the brand delivers which has allowed the brand to sustain the market in the long run.
Airbnb’s SWOT Analysis
There are various products that are launched in the market every other day. But only a few of them become successful owing to various internal and external factors that impact the product. UK based startup Cornerstone launched a new service in the beginning of 2013. The aim of the brand is to deliver the shaving needs of men across the country at their doorstep in an effective manner. The website seeks details of shaving practices of customers and their addresses. Based upon this data, the brand creates a customized package for the customer and delivers it. Customers say it is as easy as buying a gym subscription (Independent UK, 2017). The service has garnered immense acceptance and appreciation in the whole of UK. The brand has a large number of customers. The startup was also able to raise over 3.5 million and has plans to expand to newer products like toiletries including shampoos, vitamins and deodorants (Business Insider, 2017).
Source 5: Male grooming review
The success of a new product is also a result of extensive promotion strategies adopted by the brand. Cornerstone promotes itself as the one stop shop for all the shaving needs of men. Moreover, during Valentine ’s Day, Cornerstone targeted women by asking them to gift their better halves better shaving services. The business idea is unique to the brand. This idea coupled with the brand’s excellent customer service and promotion strategies are leading factors that have helped the service become a success.
There are numerous products that enter the industry and rarely see the light of the day. One such product that was assumed to be a massive failure even before it could reach many consumers was Watermelon Oreo (Logical FMCG, 2017). Many customer cringed at the idea of the product and refused to buy it. It is one of the lesser known examples of failed product launches.
Source 6: GPB News
There are many factors (both internal and external) that lead to the success or failure of products. In this is case, it was the wrong planning, fault ideation and misguided need analysis of customers that was conducted by the brand. Other flavors of Oreo have garnered immense acceptance in the market but this only goes to show that even if a product is coming from a leading brand, it is not essential that the product would be accepted. The product was launched with an aim to target the same audience that predominantly includes children. But the product turned out to be a failure for children as well as adults. The brand Nabisco is also known as the cookies wizard owing to the massive acceptance that the previous products of the brand received. But none of the products launched by the brand have ever been as weird as ‘Watermelon Oreo’. It was a limited edition product and is currently discontinued (Cheat Sheet, 2017).
References
AdAge India, 2017, ‘How legacy brands are competing with disruptors’, https://www.adageindia.in/agency/agency-news-viewpoint/how-legacy-brands-are-competing-with-the-disruptors/articleshow/60883265.cms, retrieved on 6 May, 2018.
Business Insider, 2017, ‘Cornerstone fundraise’, Available at https://www.businessinsider.in/cornerstone-fundraise-vitamins-toothpaste-shampoo-deodorant-harrys-2017-8?r=UK&IR=T, retrieved on 6 May, 2018.
Cheat Sheet, 2017, ‘Worst product flops’, Available at https://www.cheatsheet.com/money-career/worst-product-failures-flops.html/?a=viewall, retrieved on 5 May, 2017.
CNN Money, 2017, ‘Amazon Iran Sanctions’, Available at https://money.cnn.com/2017/08/01/news/companies/amazon-iran-sanctions-investigation/index.html, retrieved on 6 May, 2018.
Inc., 2017, ‘Four business strategies from Airbnb’, Available at https://www.inc.com/kayla-matthews/you-should-steal-these-4-business-strategies-from-airbnb.html, retrieved on 6 May, 2018.
Independent UK, 2017, ‘Cornerstone: The shaving subscription’, Available at https://www.independent.co.uk/news/business/news/cornerstone-shaving-subscription-service-razor-blades-club-boots-mens-aisle-balm-cream-gel-scrub-a7825346.html, retrieved on 6 May, 2018.
LinkedIn, 2016, ‘Starbucks strategic brand positioning’, Available at https://www.inc.com/kayla-matthews/you-should-steal-these-4-business-strategies-from-airbnb.html, retrieved on 6 May, 2018.
Logical FMCG, 2017, ‘Top 20 food and drink fails of all time’, Available at https://logicalfmcg.co.uk/2017/07/19/top-20-food-and-drink-fails-of-all-time/, retrieved on 6 May, 2018.
Tech Rasa, 2017, ‘Amazon has banned 90% of its services to Iran’, Available at https://techrasa.com/2017/10/15/amazon-has-banned-90-services-to-iranians/, retrieved on 6 May, 2018.
The conversation, 2017, ‘the unique strategy Netflix deployed to reach 90 million worldwide subscribers’, Available at https://theconversation.com/the-unique-strategy-netflix-deployed-to-reach-90-million-worldwide-subscribers-74885, retrieved on 6 May, 2018.
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