Más contenido relacionado La actualidad más candente (20) Similar a Netflix Business Plan with SWOT for Spain (20) Netflix Business Plan with SWOT for Spain2. Objective
4.000 members in Barcelona at the end of FY 2011
(€482.000)
Month 1 2 3 4 5 6 7 8 9 10 11 12 Total
Mbrs 0 300 600 800 1.200 1.800 2.500 2.700 3.000 3.500 3.700 4.000 4.000
Revenue € - € 6,000 € 12,000 € 16,000 € 24,000 € 36,000 € 50,000 € 54,000 € 60,000 € 70,000 € 74,000 € 80,000 € 482,000
Benefit € - € 3,750 € 7,500 € 10,000 € 15,000 € 22,500 € 31,250 € 33,750 € 37,500 € 43,750 € 46,250 € 50,000 € 301,250
Members per month, 2011
month
4000
3700
3500
3000
2700
2500
1800
1200
800
600
300
0
1 2 3 4 5 6 7 8 9 10 11 12
2
© 2010 Miriam Clark Dowd
3. Internal Analysis
Company History
p y y
1997 Netflix launches
1998 Online DVD storefront opens
1999 Netflix won’t penalize members with late fees, rather they will pay a fixed fee each month
Recommendation system is launched, Cinewatch
2000
Unlimited DVD rentail available
2001 Netflix reaches a commercial agreement with BestBuy
Netflix goes public (IPO)
2002
DVD players penetrate 50% of homes in the USA
Each user can create an online profile
2005
Walmart and Netflix reach an commercial agreement
Netflix and Tivo join forces to acquire and distribute DVDs
Blockbuster announces it will launch an online storefront similar to that of Netflix
2006
Trailers available on Netflix.com
Netflix reaches 7 subscribers
1 million member opinions are available online
2007
Netflix reaches 75% of market share
Online streaming of videos launches on Netflix.com
2008 Netflix and Microsoft come to an agreement to stream Netflix movies on Xbox Live
2009 Netflix distributes its one-billionth DVD 3
© 2010 Miriam Clark Dowd
4. State of Finances
1,600,000
1 600 000
1,400,000
1,200,000
1,000,000
and
$ Thousa
800,000
600,000
400,000
200,000
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Facturacion Total
Revenue 1,339 5,006 35,894 75,912 152,806 270,410 500,611 682,213 996,660 1,205,34 1,364,66
Total de Gastos
Expenses
p 1,311 4,373 24,861 49,907 79,136 179,010 330,010 464,550 626,985 786,168 910,234
Beneficio Bruto
Benefit 28 633 11,033 26,005 74,670 91,400 170,601 217,663 369,675 419,172 454,427
4
© 2010 Miriam Clark Dowd
6. Value Chain Analysis
Infrastructure
• Effecient and organized infrastructure
• 90 warehouses in USA with the same technology and operating system
Human Resources
• Employees generally very content and enjoy many benefits and rights within the company
Technological Development
• Netflix always looks for new technology that will improve the service, which includes the recommendation
system and storefront
Realización
Internal Logistics & Operations External Logistics Marketing & Sales Services
• Effecient and complete logistics • 95% of users • 41% of operating •24x7 customer service
system receive DVD within 24 expenses go to
• Website storefront more hours in working days marketing •Online help
advanced that what’s available on
the market • 2 millon DVDs • Marketing strategy •Some members are
shipped every day very good and very not happy that new
effective customers seem to
have priority on certain
DVDs (improved with
streaming option)
© 2010 Miriam Clark Dowd
7. Distribution
• 95% of users receive their DVD in
24 working hours
• 2 millon DVDs shipped every day
• In Q3 2008, 42% of members used
streaming to watch at least 15 minutes
of video
• Streaming via: Netflix.com,
Xbox 360, Tivo and Apps
7
© 2010 Miriam Clark Dowd
8. Client ABC
Netflix has 1,000,000 subscribers in the USA
1 000 000 USA,
distributing the product from 90 warehouses across the country
State # Warehouses # Clients
California 7 855,556
855 556
Florida 7 855,556 State # Warehouses # Clients
A New York 6 733,333
Pennsylvania 4 488,889 Alaska, Arizona,
Texas 4 488,889 Arkansas, Colorado,
Total Clientes
Hawaii, Idaho,
3,422,223
, ,
Maine, Maryland,
M i M l d
Michigan,
State # Warehouses # Clients Minnesota,
Mississippi,
Georgia 3 366,667 Montana, Approx.
Kentucky 3 366,667 C Nebraska, New 1 each 122,222 per
Missouri 3 366,667 Hampshire, New facility
f
North Carolina 3 366,667 Jersey, New
Ohio 3 366,667 Mexico, North
Tennessee 3 366,667 Dakota, Oklahoma,
Wisconsin 3 366,667 Oregon, South
Alabama 2 244,444 Carolina, Utah,
B Vermont
Connecticut 2 244,444
Illinois 2 244,444
Indiana 2 244,444 Total Clientes 2,811,111
Iowa 2 244,444
Louisiana 2 244,444
Massachusetts 2 244,444
Nevada 2 244,444
Washington 2 244,444
Total Clientes 1,955,552 8
© 2010 Miriam Clark Dowd
9. Majority of
Client ABC
members are
women No children
No large
difference
between mbr Average salary
age groups > $30k
Majority have
attended
college
9
© 2010 Miriam Clark Dowd
10. Client ABC
Content Streaming
• In Q3 2008, 42% of members used streaming to watch at least 15 minutes
of content.
• Represents an increase of 22% over Q32007
• The majority watched more than 15 minutes
10
© 2010 Miriam Clark Dowd
11. Communication & Advertising
• Online advertising
• Advertising on envelopes
• Direct mail
• Emailing
• Virtual gift cards
• Gift cards
• Radio and TV advertising
• Magazine advertising
• Free streaming offers
• Various contests
• Free Trial
11
© 2010 Miriam Clark Dowd
12. Communication & Advertising
Yearly Marketing Spend
1,600,000
1,400,000
1 400 000
1,200,000
1,000,000
1 000 000
$ Miles
800,000
600,000
400,000
200,000
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Facturacion Total
Revenue 1,339 5,006 35,894 75,912 152,806 270,410 500,611 682,213 996,6601,205,341,364,66
Marketing
Marketing 4,052 14,070 25,727 21,031 35,783 49,949 98,027 141,997 225,436 218,212 199,713
TotalExpenses explotación 11,181 30,664 68,590 62,394 85,447 86,928 151,247 214,647 304457 327,399 332,921
Al l gastos de
12
© 2010 Miriam Clark Dowd
13. Communication & Advertising
Marketing as % of all operating expenses
G&A
10%
Shipping
& Handling
31%
Marketing
41%
Tecnology &
R+D
18%
13
© 2010 Miriam Clark Dowd
14. External Analysis
ñ
DVDs in Cataluña H
Homes i Cataluña
in C t l ñ
% of homes with a DVD player
No DVD
Units:% of all homes
24%
Sou
TOTAL 73,4
73 4
urce: Instituto Na
Home with 1 person 47,6
Home with 2 people 66,5
Home with 3 people DVD
82,2
76%
Home with 4+ people 89,0
acional de Estadís
% of homes that have a DVD player
Units:% of all homes
Both sexes % of homes in Cataluña with DVD
stica, Spain
73,4
73 4
Men 77,2 100
Women 90
67,4
80
Age: Total 73,4 70
Under 25 years 80,1 60
25-44 years 88,4
88 4 50
45-64 years 40
80,4
30
65+ years 41,4 20
Nationality: Total 73,4 10
Spanish 73,2 0
Foreign 75,7 TOTAL < 1 100 De 1 101 De 1 801 > 2 700
1.100 1.101 1.801 2.700 No
From EU country euros a 1.800 a 2.700 euros sabe/no
75,7
euros euros contesta
From country outisde EU 75,7
14
© 2010 Miriam Clark Dowd
15. Demographics of Barcelona
BCN Population Pyramid
• GDP per capita – 23,108 EUR / ~1,900 month
1 octubre 2009
• 1,593,075
1 593 075 residents
96
• Population: 1,615,908 in the metropolitan area 90
84
• Barcelona has 100 km ², with nearly 78
72
15.867 people per km ²
p p p
66
60
• Population density on par with Nueva York & 54
Edad
París 48
42
• 10 Districts 36
• Di t i t1 Ci t t V ll
District1: Ciutat Vella 30
• District2: Eixample. 24
18
• District3: Sants-Montjuic.
12
• District4: Les Corts. . 6
• District5: Sarrià-Sant Gervasi. 0
• District6: Gràcia
Gràcia.
70000 50000 30000 10000 10000 30000 50000 70000
• District7: Horta-Guinardó.
• District8: Nou Barris. Men Women
• District9: Sant Andreu. Millions of people
• District10: Sant Martí de Provençals.
Source: Instituto Nacional de Estadística, Spain
15
© 2010 Miriam Clark Dowd
16. Economic Environment
• The current economic crisis has had a negative impact on
consumer confidence
• The recession period in Europe has caused high
unemployment rates and a decline in personal finances
• The economic situation will be slow in 2009
• Brussels predicts that the paro in Spain will reach 19% in
2010
• The IMF forecasts the GDP of spain to decline, to -2% in
2009
• Totan unemployment in Spain = 3.808.353 people.
• Spanish households have reduced the number of shopping
trips they make by 3,1% and they spend 2,3% less per
family (Nielsen) Source: Instituto Nacional de Estadísticas, Spain
16
© 2010 Miriam Clark Dowd
17. Social and Cultural Environment
• 64% of Spaniards use illegal websites to share and download content on the Internet well
Internet,
above the European average of 56%
• 24% of people are not concerned about internet security online, and 30% rarely check that
their antivirus software is up to date
• For 90% of young people, watching TV is one of their preferred free-time activities
• Moves are the content most preferred by young people (42%), followed far behind by TV
series (13%) and sports programs (13%)
http://baquia.com/
h //b i /
Main Free-Time Weekend Activities
Source: Instituto Naciona de Estadística
Pasear, estar en laacalle
Go for walk
Visit with family
y
Estar con l f
la familia
l
Ver la tele, video, DVD
Watch TV, videos or DVD
Rest, do nothing
Descansar, no hacer nada 11 % Mujeres
% Men
% Hombres
%WWomen
al
Leer
Read
Go Ir de bares, cafes
out for coffee/drinks
Attend cultural events (ie
Asistir especatculos
cinema)
culturales (ie cine)
0 10 20 30 40
17
© 2010 Miriam Clark Dowd
18. Legal and Technological Environment
Legal
Intellectual property rights are most vulnerable in the cultural and past-time sector.
Music and cinema are the most important and they suffer directly from the
consequences of piracy and bad intellectual property policies and laws.
La Federación para la Protección de la Propiedad Intelectual (FAP) is dedicated to
the defense of intellectual property rights governing audiovisual work and
entertainment software.
Technology
The increasing presence of various video formats presents a significant threat
with substitution in the form of pirated DVDs, especially grave for distributors
and brick and mortar shops
shops.
However, continued purchase and use of CDs and DVDs will continue .
18
© 2010 Miriam Clark Dowd
19. Sector Analysis– Music and Video
Sector Characteristics
• Competetition: Strong
• Buyer power: Strong
• Low cost and many options
• Businesses: many, but a few monopolize the sector
• Market entry: Easy
• Brand loyalty: Low
19
© 2010 Miriam Clark Dowd
20. Competitive Analysis
Group 1 Group 2 Group 3
• Digitae • Apple/ iTunes • Rental Kiosks
• MediaXPress Cine • FNAC
• El Corte Ingles • Xbox Zune
• Pirating • PlayStation
• Canal+
• Ono
El Corte Ingles High Price
Canal+
Digitae MediaXPress
Netflix
Show
Fast
Delivery
Kioscs
Ki Delivery
li
Xbox Zune
Pirating
i i
Low Price 20
© 2010 Miriam Clark Dowd
23. MediaXpress Digitae Pirating Xbox Zune Corte Ingles Kioscos Canal+
Level of
Competition
Facturacíón
High – Direct
NA NA
Competitor Analysis
High – Direct High – Direct
136 millones de
High
Microsoft
Medium
17,898
Medium
NA
Low
2,428.61 Eur
2008 euros perdidas en $16.37 billones millones
2007 en Worldwide
W ld id Euros
E
Catalunya
Owner Techfoundries Private with Various Microsoft El Corte Various Prisa
investors Ingles
Markets Spain Spain Global Global Spain Spain Spain & France
Members 6,000 8,000 300 million 1 million Xbox sold 225 locations
downloads, 2009 in Spain
Products DVD DVD Movies, DVD, DVD Movies, Series
6,000 titles >8,000 titles videogames, videogames,
software etc.
Brands Diode, InOutTV The Pirate Bay Varios Varios
(#3), Cinexpress
Churn 10-12% 10-12% N/A N/A N/A N/A N/A
5% for courier
Markeating 20,000 clients Agreement Word of mouth Segmental Advertising, Word of Advertising,
Strategy
St t with MSN
ith Links
Li k incremental growth
i t l th mailings, etc
ili t mouth
th mailings, etc
ili t
Spain , Amena, SEO
Detallistas Online ads
Distribution Single site in Postal 2+ Streaming, Streaming Stores in Street TV / Canal+
Barcelona DVDs in one downloads Spain DVR
envelope
Strenghts Courier by SMS OK website Free Microsoft owned 26% offline Location, HD; at home;
SEO + Share content Zune agreement market quota subscription partially pay for
Advertising $$ Low price not necessary Satellite TV
Weaknesses Correos Cost of DVDs Illegal Late market entry, Location Price
No SEO Correos low offer
Bad website Bad website
Opportunities Improve online Download to No limit to users Increase # of movies Agreement Advertising Offer more HD
ads own VOD; with Digitae movies
Games; Ads or similar Advertising
Threats TV ; SEO Unknown New laws Online streaming High price 23
Low selection Online market
Unknown
24. Market Changes & Advancements
New Technology
• Online video streaming, such as Cuatro Play, Cinexpress & Xbox 360
• DVR technology to record and rewatch
• Xbox 360 offers streaming. Xbox 360 & Playstation offer downloads.
• Market is changing - Bluray will replace DVD soon
Keys t S
K to Success
• Increase number of movies available (incl. HD)
• Accessible price structure
A ibl i t t
• Fast shipping
• Intelligent online order system
I t lli t li d t
24
© 2010 Miriam Clark Dowd
25. Distribution Analysis
Correos of Spain Courier
Not reliable Reliable
Lost discs account for – Lost discs account for <1%
1.5 - 7% of all shipments sf all shipments
Shipping speed not guaranteed
pp g p g Shipping speed guaranteed
pp g p g
1-2 days
3-4 days longer in Summer
Guaranteed delivery but usually
DVDs can be stolen from mail
someone h t receive th DVD
has to i the
Negative user preception SMS orders
# 1 reason users cancel
their
th i subscription
b i ti
25
© 2010 Miriam Clark Dowd
26. Market Analysis
Market Value
New access channels to this type of content, such as pirating, have been the main
reasons that sale and rental of movies have declined so drastically.
Market Value Forecast
In 2013, it’s forecast that the marketing will have a value of 4,529 million, a decline
of 22,9% from 2008.
26
© 2010 Miriam Clark Dowd
28. SWAT
Strengths Weaknesses
• Strong business model • Netflix nknown in market
• Higher value-add than competition • Copyrights in Europe
• Relationship with US distributors • Spanish market unknown to us
• Effective marketing campaigns
• Internal and External logitics
• Website
• Children’s content
•
Opportunities Threats
• High demand for online streaming in HD • Postal serivce not reliable enough
• Increase in online spending • Consumers don’t trust the postal serivce
• Direct competition has poor business • Competition: pirating/streaming
model • Target marketing not aware of posibilities
of business model
• Movie rental market in steep decline
• Many options at a low price
• Easy market entry
28
© 2010 Miriam Clark Dowd
29. Basic Strategies
Targeting y Segmentation
Target Market
Men and women, 25-45 years old in Barcelona who:
25 45
• Rent movies as hobby
• Love movies
• Have access to Internet
• Have a DVD player
• We will try to target people with a busy lifestyle and who are unhappy with video
rental stores/kiosks as well as the quality of streaming / pirating onilne
Target Market
g Men Women
In Catalña 2,506,710 1,291,269 1,215,441
25-45 y/o
9.25% 119,466 112,450
Live in BCN city
19% hombres
Movies Hobby 22,698 24,739
24% mujeres
Have DVD 88.40% 20,065 21,869
Total 20,066 21,869
Total 41,935
29
© 2010 Miriam Clark Dowd
30. Basic Strategies
Positioning Strategy = reliable fast high quality
reliable, fast, high-quality
• Fast and convenient service with a large selection
• HQ streaming
• Rent HD moves
El Corte Ingles High Price
Canal+
Digitae MediaXPress
Netflix
Slow
Fast
Delivery
Kioscos
Ki Delivery
li
Xbox Zune
Pirating
i i
Low Price 30
© 2010 Miriam Clark Dowd
31. Basic Strategies
Competitive Strategy
• Differentiation by reliablity, speed and high quality
• Web technolgoy – more advanced than competition
• Advanced and intelligent ordering system
• Client satisfaction
• Quality of product
• Market recognition (in USA)
Prizes Netflix has won
• Feb 2010 - #1 online retailer in client satisfaction - American Customer
Satisfaction Index
• #1 client satisfaction in online sales websites, from 9/10 surveys – 2005,
ForeSee Results.
• Jan 2007 - Retail Innovator of the Year - National Retail Federation
• Dec 2007 - #1 online retailer - Nielsen Online.
• Dec 2008 - Netflix Player Roku named one of the Top 10 gadgets of the year –
TIME
31
© 2010 Miriam Clark Dowd
32. Product Overview
Packaging, Guarantees,
Product Personality Characteristics design, photo, Warnings
logo
Fun
Ratings,
Ratings recommendations and USA 3 day
3-day shipping
Convenient
DVD the option to share your movie Language: ES Safe website
Up-to-date
list with friends on website Catalán, EN Huge selection
Fast
Fun Immediate
Ratings, recommendations and USA
Convenient High-quality
g q y
Streaming the option to share your movie Language: ES
Up-to-date Safe website
list with friends on website Catalán, EN
Fast
Actions
• No change to packaging
• Same brand colors
• Add “franquicia pagada” to envelope
• Translate wrapper and website t ES
T l t d b it to
32
© 2010 Miriam Clark Dowd
34. Price Overview
Price range Promotions Discounts Price-based Promotions
Half the price of 15 day trial – 3 DVDs &
Ongoing Free Trial promotion None
direct competition unlimited streaming
Higher than
Ongoing Free Trial promotion None 15 day trial – 3 DVDs &
streaming and
unlimited streaming
pirating
• We will aim to offer the most competitive price possible within the market,
but without ever losing reliability or shipping speed (20 EUR/month)
34
© 2010 Miriam Clark Dowd
35. Distribution Overview
Sales points, Canal Strategy
Canal Type Location Transportation, type
location, # PUSH / PULL
Send via F C Courier;
F.C.
Direct Netflix.com Netflix.com PULL
Return by Correos
Streaming to computer or
Directa Netflix.com Netflix.com PULL
Xbox 360
Acciones
• Reach agreement with courier company
• Organize return b f
O i t by franquicia pagada f
i i d from C
Correos ( ti
(national postal service)
l t l i )
35
© 2010 Miriam Clark Dowd
37. Advertising and Communication
Objetives
Brand awareness 4.000 clients in Barcelona (2011)
A simple and efficient advertising and promotion campaign
Advertising - Marketing online
• Social Networking – Netflix Facebook groups
and others de Netflix)
• Invite a friend (like Spotify)
• SEO and SEM
• Apps – USA Netflix App translation
• Online banner advertising in appropriate
websites
*80% of US members heard of Netflix through word of mouth
© 2010 Miriam Clark Dowd
37
38. Advertising and Communication
PR – Press Releases
• Announce launch in Spain
• Send promotional items to bloggers along with invitations for Free Trial
Direct Marketing – email Campaigns
• Three emails offering free trial for 15 days sent to list of people who go to the
movies once per month (purchased/rented)
© 2010 Miriam Clark Dowd
38
39. Advertising and Communication
Actions
• Translate website to ES
• Direct Marketing ecto – Three emails offering free trial for 15 days sent to list of
people who go to the movies once per month (purchased/rented) – 10,000 people
in BCN
• Press Releases – About launch of company and freebies to bloggers
• Online Marketing – iPhone App - translate to ES
• Online Marketing – Banners – online at ServiCaixa, Dooplan, The Pirate Bay and
Alluctv.org
• Social Networking – Netflix Facebook page from USA translate to ES
USA,
© 2010 Miriam Clark Dowd
39