Hulu Brand Audit (December 2015)

Running Head: HULU: BRAND AUDIT 1
Hulu: A Brand Audit
Ashley N. Peterson
West Virginia University
IMC 613
December 21, 2015

HULU: BRAND AUDIT 2

TABLE OF CONTENTS
Executive Summary 3
Background 4
Brand Inventory 8
Service Offerings 8
Brand Meaning 9
Brand Elements 11
Brand Associations 18
Marketing Support Programs 18
Competitive Environment 20
Brand Exploratory 23
Consumer Product Knowledge 23
Consumer Attitudes & Perceptions 24
Brand Meaning 24
Brand Elements 26
Brand Associations 29
Marketing Support Programs 29
Competitive Environment Attitudes & Perceptions 31
Brand Recommendations 34
Brand Recommendations 1-4 34
Brand Results 36
References 37

HULU: BRAND AUDIT 3

EXECUTIVE SUMMARY
In 2008, Hulu was launched to bring consumers a streaming subscription service that
uniquely focused on delivering content revolving around current television and full seasons of hit
television shows. In a time where retrieving content on your own time is important to today’s
consumers, especially the younger generations, Hulu has been able to make a name for itself,
but continues to lag behind the more popular Netflix and Amazon Prime Instant Video services
that consumers tend to gravitate towards.
Through an analysis of the brand from the perspective of the company itself as well as
the general public, it has been found that Hulu just isn’t doing enough to promote itself and its
offerings, starting as simple as leaning on the meaning of the name all the way to only modestly
sharing what is coming next in an industry that is already full of change. With current marketing
campaigns focused around content – new, old, and exclusive – consumers are missing out on
what makes the service truly unique in comparison to other streaming options.
In the streaming video on demand industry, players in the space all bring different
benefits to their subscribers and, instead of fighting to be the one that is chosen over the others,
they often just need to fight for a seat at the table, or, more fittingly, a place on a viewer’s
devices. By leveraging the definition of Hulu, reinforcing the benefits of subscription, increasing
interaction with its target market, and communicating future plans for the service, Hulu has very
high potential to rightfully take their seat at the table and increase its market share amongst its
competitors as consumers continue to subscribe to one, two, and three, or more streaming
services. The following brand audit will provide insight into how Hulu sees itself in the
brand inventory, how consumers see Hulu in the brand exploratory, and what is
recommended to ensure that Hulu becomes at least one of the services that today’s on-
demand subscribers decide to pay for each month.

HULU: BRAND AUDIT 4

BACKGROUND
Hulu, launched in 2008, describes itself as "a premium streaming TV destination
that offers hundreds of thousands of hours of the best of current season programming,
premium original content, films and full seasons of hit series to subscribers" (Hulu,
2015). Subscribers to the paid version are given the choice of paying $7.99 per month
for limited commercial interruption or $11.99 per month for commercial-free, with the
exception of any shows subject to streaming rights, to view this programming on
internet-connected TVs, personal computers, set top boxes, mobile devices, and game
consoles (Hulu, 2015). In the ever-growing streaming environment, Hulu serves as one
option of many for consumers wishing to consume content on their own time.
Hulu’s Current Brand Position
Hulu is competing in the streaming video industry. Streaming video, in general, is
considered as "content sent in compressed form over the Internet and displayed by the
viewer in real time. With streaming video or streaming media, a Web user does not
have to wait to download a file to play it. Instead, the media is sent in a continuous
stream of data and is played as it arrives" (Rouse, n.d.). In the infographic below shared
by Richter (2014), one can see the other companies in which Hulu is competing with in
this industry, categorized by the amount of internet traffic that they take up, also
providing a directional view of the share of the market that each of these services. With
direct competitors Amazon Prime Instant Video and Netflix, Hulu’s share based on
online traffic is very small.

HULU: BRAND AUDIT 5

In looking from another perspective, consumer preference, the same story
applies: Hulu is not the top choice in streaming video. In the chart of responses below,
even though majority of consumers wish to view videos online for free utilizing
YouTube, Netflix still leads the pack with Hulu and Amazon Prime accounting for very
small percentages within the online streaming community.

HULU: BRAND AUDIT 6

Source: Statista
No matter the view that is taken on online streaming, Hulu, while a relevant
competitor in the industry, does not serve as the top choice for today’s consumer. For
this reason, Hulu is considered a challenger brand in the streaming video space.
Hulu as a Challenger Brand
A challenger brand is any brand that is competing against a leading brand in its
category or industry. It is up to challenger brands to discover what is important to
consumers and emphasize those factors in its offerings, whether it be the product,

HULU: BRAND AUDIT 7

positioning, or price, to, what Haxthausen (2004) considers, “change the rules of the
game”. In their recent “Total Audience Report”, Nielsen showed in the chart below that
illustrates market share, with Netflix in the lead amongst the top streaming video
services. Amazon Prime and Hulu serve as those challengers that need to change the
rules of the game to increase their penetration.
Source: GeekWire

HULU: BRAND AUDIT 8

BRAND INVENTORY
Service Offerings
Basic Streaming Services
As shared earlier, Hulu is "a premium streaming TV destination that offers
hundreds of thousands of hours of the best of current season programming, premium
original content, films and full seasons of hit series to subscribers" (Hulu, 2015). The
streaming service options offered by Hulu are split into three categories: free, paid with
commercials, and paid with no commercials. The free version gives non-subscribers
access to limited content on computers and select mobile devices. The paid with
commercials service requires subscribers to pay $7.99 per month for access to all
content on Internet-connected devices. The newest option, paid with no commercials,
launched in September allowing subscribers to pay $11.99 per month to access the
content without commercials, with the exception of certain shows subject to licensing
rights (Steel, 2015).
Premium Add-Ons
In addition to the basic subscription options, Hulu also offers premium add-on
services to its subscribers. The first add-on option launched in the summer of 2015,
allowing Hulu subscribers to pay an additional $8.99 per month to access Showtime’s
standalone streaming service. With the service on its own costing $10.99, Hulu
subscribers now get a special deal to access Showtime’s “catalog of original series,
movies, documentaries and sports, along with live East and West Coast streams of

HULU: BRAND AUDIT 9

popular shows like Homeland, all without the need for a cable or satellite subscription”
(Palermino, 2015).
Brand Meaning
Brand Imagery
Hulu sees itself as a service that can be described as simple, convenient, and a
provider of “more”. On its website, Hulu provides a one-minute overview for potential
subscribers describing why they should subscribe. The ad shows a variety of viewers of
all ages in various in-home and out-of-home settings using the service, intertwined with
available programing with the following text overlays: “You Don’t Have To Wait To
Hulu Streaming
Options
Free
(Limited Content)
$0.00
Paid:
Limited Commercials
$7.99
W/ Showtime Add-On
$16.98
Paid:
No Commercials
$11.99
W/ Showtime Add-On
$20.98

HULU: BRAND AUDIT 10

Watch Your Favorite Shows…Your Choice of Plans… Premium Add-ons… Current
Season TV… More Classic Series… More Episodes… Exclusives… Original Series…
All In One Place” (“Why subscribe?”, 2015). The ad also focuses on the variety of
platforms in which it could be accessed, with the scenes showing different devices
being used and with one character leveraging one device to queue his favorite episode
of “Seinfeld” on his computer then accessing the episode from the comfort of his couch
on his television. To summarize the video, Hulu shares, “With a Hulu subscription, all
you need is an account, a supported device and an internet connection to start watching
your favorite shows!” (“Why subscribe?”, 2015)
Brand Performance
Hulu (2015) believes that, since it launched in 2008, it has been “at the forefront
of entertainment and technology” and “continues to redefine TV”. It even shares the
following statistics about the success of the service to date on the corporate website.
Source: Hulu


Hulu CEO Mike Hopkins confidently shared his outlook on the future of Hulu,
stating that “2015 is the year that Hulu will break out”, at a conference in April when the
announcement was made that the streaming service has reached 9 million subscribers
(Kastrenakes, 2015). With a forward focus on investing in content and more
personalized experience through new technology, Hulu is looking to attract more and
more subscribers – with a 50% year-over-year lift from 2014 to 2015 as its content
increased by 30% (Kastrenakes, 2015).
Brand Personality
Mitchell (2002) shared that employees are “the very people who can make the
brand come alive for your customers”. Hulu has presented how they build their brand
from the inside out using its six core values: Viewers First, Think Big, Better Ways, One
Team, Character Matters, and Embrace Fun. Hulu exists “to captivate and connect
people with stories they love by creating amazing experiences” and holds the vision to
“be a must-have entertainment & technology brand that is celebrated for continuing to
redefine TV” (“What Defines Hulu”, 2015). Hulu is proud of the culture that they have
built and desire to leverage it to continuously redefine TV for today’s world with the help
of the values and vision that they are driving internally (“What Defines Hulu”, 2015).
Brand Elements
Name
Hulu’s CEO at launch, Jason Kilar, shared that the name Hulu came out of
lengthy name brainstorming session with his then leadership team. The word Hulu was


recommended by his Chief Technology Officer who had considered it for his own
startup in China, explaining that it has two meanings in Mandarin. Its primary meaning is
“holder of precious things” and its secondary meaning is “interactive recording” – both
meanings that Kilar saw as highly relevant to the mission of Hulu (Kilar, 2008). With
Hulu being a unique name in the streaming video industry, it has great potential to be
memorable and likable and, by using just Hulu, brand extensions can be built off of the
basic name. But, with the lesser-known meaning of the word coming from a foreign
language, its ability to be meaningful decreases and, given its potential popularity as a
brand name choice in China, the brand must ensure that it remains protected over time.
Logo
Source: Hulu
Hulu lists two logo variations in its brand assets, the transparent background as
its primary and green background as its secondary. Both logos directly represent the
brand by using the full name. This use of the full name promotes memorability as well
as transferability as it is used on the various platforms in which the service can be
accessed. The clean, simple design also makes it likable by consumers and adaptable
as the brand evolves.


URL
The Hulu URL – www.hulu.com - is also direct representation of the brand, using
the Hulu name alone. With this direct use of the brand name, it is memorable for
subscribers looking to access the service from the web as well as transferrable and
adaptable as the brand expands in the future.
Competitive Pricing
Hulu promotes an available one-month free trial and shares the table below to
provide potential subscribers with an overview of what they would get by signing up for
one of Hulu’s paid options.


Source: Hulu
Similar to Hulu, Netflix promotes subscribers’ ability to get their first month free
and, following this trial, three service levels: Basic, Standard, and Premium. In
comparison to Hulu, these three levels provide subscribers with the ability to watch
content using one Netflix account on multiple screens at once (“Pick your price”, 2015).


Source: Netflix
Lastly, Amazon Prime, which is $99 per year or $8.25 per month, remains in the
average cost of competing services (Amazon, 2015). With costs around the same as its
competitors, Hulu can remain protected from a competitive standpoint in the streaming
video industry.
Strategic Alliances
Hulu’s ability to provide subscribers with current content is highly dependent on
the partnerships that it makes in the media industry. With these alliances, Hulu remains
protected in a competitive sense, but also adds to the memorability and likability of the
brand due to the content it can provide that others cannot.


Customer Service Program
Hulu leverages its website to drive its customer service program for its current
and potential subscribers. Just like its content, the Hulu Help Center serves as an on-
demand customer service destination for Hulu visitors. As shown below, the Help
Center directs visitors to assistance with various aspects of their subscription. Within
each of these help topics, visitors are given step-by-step instructions with screenshot
visuals, where applicable.
Source: Hulu
If further assistance is needed, visitors are able to input their phone number as a
way to request that a helpdesk representative call them, or they can send an email, as
shown in the two screen captures below. This interactive help service provides an
additional aspect of likability through its ease of use and meaningfulness, allowing


customers to navigate on their own what the brand can bring to them as a subscriber
and get their questions answered quickly and easily.
Source: Hulu


Brand Associations
The Hulu brand is positively associated with the content it provides, whether it is
hit series brought to the service through its partnerships or original content. Most
recently, Hulu announced that it renewed and extended its partnership with media giant
Viacom. “The multi-year agreement makes Hulu the exclusive SVOD home to past
seasons and future seasons of certain popular titles” that come from Nickelodeon,
Comedy Central and MTV, adding to content already available from the large family of
networks (“Hulu and Viacom”, 2015). Hulu’s partnerships also include South Park
Studios, Paramount, Lionsgate and MGM (“Hulu and Viacom”, 2015).
Marketing Support Programs
Product
Hulu’s streaming selections have evolved over time in order for the service to
remain competitive. These selections have mostly been focused around bringing current
content to its subscribers.
Place
As mentioned previously, with the exception of the free streaming option, Hulu’s
content is available on any Internet-connected device, either through browsers or
device-specific applications.
Price
As shared earlier, Hulu promotes a relatively average monthly cost for the
content it provides, recently adding the no commercial feature for a few dollars more per


month. The pricing structure allows subscribers to have a choice of how they want to
experience the content.
Promotion
Hulu mostly uses social media to promote its services. For a service that is
based online, Hulu is reaching its customers where they are to promote new content
and provide reminders about current content. Hulu’s Facebook, Twitter, and Instagram
are constantly updated with 1.95M likes, 206k followers, and 34.3k followers,
respectively. Hulu also hosts a Tumblr, YouTube channel (560k subscribers), and
Google+ (2.3M followers).
Hulu also leverages paid media through commercials on select channels
including FX and FOX Sports, aired during shows that can be found on the service. The
TV advertisement, which can be found on Hulu’s YouTube page, is focused around
promoting the option for a free trial, new seasons becoming available and, most
recently, the new commercial-free product (iSpot.TV, 2015).
Strengths & Weaknesses
Hulu’s marketing program as a whole is relatively strong given its position in the
streaming industry. Hulu believes that, with its current and original content, it is
providing comparable content selections at a reasonable price in comparison to its
biggest competitors. With promotion that is focused on its target market, specifically
reaching them online or during shows that they could watch via the streaming service as
well, Hulu is focused on drawing in additional subscribers who are looking to view their
favorite shows anytime they want. With an increased focus on original content to


supplement its current series moving forward, Hulu hopes to better compete with the
likes of Netflix and Amazon Prime, its main competitors.
Competitive Environment
Netflix
Netflix (2015) describes itself as the “world’s leading Internet television network”
with 69 million subscribers across 60 countries - over half residing in the US - watching
over 100 million hours of content each day. By paying $7.99 per month, subscribers
have access to a host of original series, documentaries, and feature films that they can
watch on their own time via any Internet-connected screen without commercials or
commitments (“Overview”, 2015).
Amazon Prime
Amazon Prime Instant Video is an add-on benefit to subscribers to the Amazon
Prime service. The annual subscription fee for Amazon Prime is $99 and also includes
free two-day shipping and access to the Kindle Owners’ Lending Library, an online
book-borrowing service (Amazon, 2015). The subscription provides users with access to


“Prime TV”, which is a collection of TV shows, movies, and documentaries, as well as
exclusives labeled as “Prime Member Exclusive: Not on Netflix”, as shown below in a
screen clip of the Prime category.
Points-of-Parity
When putting Hulu, Netflix, and Amazon Prime Instant Video side-by-side, there
are a few points-of-parity that are generally identified in the brands across the streaming
video industry.
• Wide Content Selection: As shown in the description of each of the streaming
competitors, subscribers to each have access to hundreds of thousands of hours
of content that is constantly growing, also including original content released by
the particular service.
• Relatively Low Cost: In comparison to cable and satellite options, streaming
services provide tons of content including movies and TV shows, at a very low
monthly price, as shared earlier.
• Multiple Platform Availability: Each of these services can be accessed on any
Internet-connected device, allowing subscribers to access the content anywhere
that they are able to access the Internet.
• External Partnerships: The content available on each of these services are
available due to partnerships that the services have made with various media
partners to have rights to the movies, shows, and other content that is added to
the service for consumption.


Points-of-Difference
When comparing Hulu to its competitors in the streaming video industry, there
are some aspects of the service that allow the brand to stand out amongst the others.
• Current Content: With its strategic media partnerships, Hulu has become the
only streaming service providing current season content from 5 of the 6 largest
US broadcast networks. This allows its subscribers to have access to their
favorite shows currently on TV in addition to the films, full series and original
programming included in the service's content (“About us”, 2015).
• Content-Based Subscription Options: With the free, limited commercial, and
no commercial options, as well as the premium add-ons services, Hulu provides
its subscribers with a choice of how they want to view the content. While Netflix
provides options as well, the options are limited to the amount of screens that
can be watched at once instead of whether or not commercials are included.
With rumors of Netflix testing pre- and post-roll ads earlier this year as a potential
way for them to remain profitable down the line, this difference for Hulu may push
it ahead given that it currently sits at a similar price point with pre-ad Netflix
(Armstrong, 2015).


BRAND EXPLORATORY
Consumer Product Knowledge
As stated earlier, Hulu offers three separate streaming service options: Free,
Paid with Limited Commercials, and the recently introduced Paid with No Commercials.
In the current wave of “cord-cutting” and consumers’ overall desire to minimize
expenses, many articles have been shared about which service options consumers
should select based on their wants and needs. In a 2015 study by iModerate, 14% of
participants could not identify one benefit of the Hulu service, mainly because many
users head to the service to watch a specific show instead of browsing for other
potential content. This study also uncovered that consumers were disappointed in the
lack of original content and found the ads unacceptable given ad-less experiences
provided by other services such as Netflix (Lynch, 2015). These results drive one to
question what consumers actually know about the service, especially in the wake of
recent changes.
In a survey of 12 participants of varying demographics enrolled in the WVU
Integrated Marketing Communications Program, the knowledge of Hulu was relatively
basic, with responses across the board consistently stating that they know it is a
streaming service but, beyond that, knowledge of additional aspects of the brand
differed. Some were aware that it must have close ties to networks due to its ability to
stream a wide variety of current TV shows and some knew of the original content that
was available. Interestingly enough, it was often described in direct comparison to
Netflix, specifically citing that it is “like Netflix” or “an alternative for Netflix”.


Consumer Attitude & Perceptions
Brand Meaning
Brand Imagery
Hulu has a strong identity of being a simple, convenient provider of “more”. In
various competitor comparisons, Hulu continuously wins in its quick release date of
episodes and mobile application performance, but comes up short in interface and ease
of use, price, audio and video quality, amount of content, and original content. Because
each of the streaming services have their own unique benefits based on what potential
subscribers are looking to view, it is important for Hulu to be more outward in sharing
what providing “more” means so that subscribers can see the true value as related to
the content they are looking for (Waniata, 2015).
Brand Performance
Even though Hulu can celebrate its success, especially its extreme growth in the
past couple of years, consumers’ general lack of awareness of what is driving this
growth stunts additional success that it could be achieving. With CEO Mike Hopkins
declaring 2015 as the service’s breakout year and announcing an increased focus on
technology and original content moving forward, Hulu lacks the top priority to keep the
general public in the know of its progress (Kastrenakes, 2015). Currently, advertising
and website content focus on the present, which, as shared previously, is unfortunately
not a clear picture for consumers either.
Brand Personality
Out of its advertising, consumers are not proactively exposed to the culture that
Hulu has worked to develop internally, which ultimately drives its outward perception by


the general public. Current advertising is highly focused around the content and,
specifically, the new commercial-free option, instead of focusing around the true
purpose behind the Hulu service being driven by its employees, or Hulugans. As Walker
(2014) shared, “If you commit to a purpose that will truly benefit the world in some way,
you are on your way to defining your brand’s role in people’s lives, and the way you
communicate with them. It is within this dialogue between brand and consumer that we
can find solutions, innovate and challenge the status quo”. As a brand focused on
“continuing to redefine TV” with solid internal culture to support this goal, this
communication of purpose amongst consumers can take it great lengths in its industry.
The perceptual map below summarizes Hulu’s brand meaning from the
perspective of the consumer.
Imagery
•  Current TV
•  Quick Release
Dates
•  Uncertainty of
unique benefits
Performance
•  New Commercial
Free Option
•  Successful Media
Partnerships
Personality
•  Brand purpose
generally unknown


Brand Elements
Name
With the definitions of Hulu including “holder of precious things” and “interactive
recording” coming from the Mandarin language, there must be a lower expectation set
around the average consumers’ knowledge of the definition. In the survey mentioned
earlier, 2 of the 12 participants correctly defined the term using the first definition while
others had no idea what it meant, never thought about it, or were instantly reminded of
the Hula Hoop. Ultimately, this shows that, while consumers may enjoy the service,
current and potential subscribers alike may not hold any level of meaningfulness in
relation to this brand name because the sheer lack of knowledge of what it means.
One positive move that Hulu made recently was to remove the “Plus” from the
name of its paid subscription option. While the tiered options still exist, the removal of
“Plus” to separate the paid version of the brand from the free version decreased
confusion about what was being offered. In explaining the new branding focus, CEO
Mike Hopkins shared, "Research and tracking convinced us that people were confused.
Rather than trying to explain the difference, we want to explain what we have and why
you should subscribe. We thought we could do a better job without the poor old Plus"
(Fretts, 2015).
Logo
Similar to the name – once having a Hulu and Hulu Plus versions – the logo is
now simplified to only have two versions, both reflecting the name Hulu, but utilizing the
two primary brand colors. From a consumer standpoint, this drives memorability and


likeability as current and potential subscribers become more exposed to the benefits of
the brand in Hulu’s new advertising focus.
URL
No matter the brand name versions reflected in the logo in the past, the URL –
www.hulu.com - always remained the same. With the shift to use only Hulu to reflect the
brand, this URL is now more memorable no matter what version of the service a
subscriber has. Also, no matter what the brand does in the future, this simple base URL
can easily be identified using a backslash extension as needed, for example, depending
on how Hulu may continue to adjust its service in the future. This flexibility makes the
URL both transferrable and adaptable in the eyes of consumers.
Competitive Pricing
Prior to the addition of the commercial-free option, Hulu remained in the average
streaming service cost below $10, but the ability to enjoy content without ads at this
price was missing. Now, with the commercial-free option being $11.99 per month, it is
perceived as costly given the need to focus on greater benefits-based marketing,
including key features of the current service as well as its future to draw consumers in.
This higher price may negatively affect the likability of the brand if consumers are not
fully aware of what they are getting for the cost.


Strategic Alliances
Hulu’s media partnerships drive its unique ability to attract subscribers who want
to view their favorite current TV shows, also exposing them to other content, whether
original or those that Hulu has the exclusive rights to, such as Seinfeld. While
consumers generally understand the partnerships that Hulu must have created to bring
in current and exclusive content, it is not always clear what that means to the service
and how it drives an added benefit for subscribers. In the discussion of consumers’ view
of Hulu so far, it is obvious that there are knowledge gaps between what Hulu has to
offer and what consumers perceive.
Customer Service Program
Just as Hulu brands itself to be a simple and convenient, its Help Center reflects
this brand attribute by providing a do-it-yourself assistance option with an easy to use
“contact us” feature. Ultimately, this Help Center helps to communicate the total benefits
of subscription and, with further promotion, can assist in driving likability to the brand if
consumers know that they can browse the center for easy to understand answers. Also,
consumers have a better experience given that they do not need to sit on hold for a call
center rep and, instead, can request an outbound call be made to them when they can
be served. One of the main pet peeves of consumers with call center servicing is being
kept on hold when they need an answer immediately (Clark, 2011). Hulu prevents this
with their customer service program, bringing an increasingly positive experience to its
subscribers.


Brand Associations
For those consumers familiar with the Hulu streaming service, one association
sticks out: current television. What remains generally a question of consumers, as
evidenced in the WVU survey, is that consumers are not really sure exactly how Hulu
comes to bring this current content to the service. Hulu is proud of its strong media
partnerships, sharing press releases in its newsroom but, with the typical consumer
simply looking to find a service that works for them, this information may not be
considered depending on where one can find it. For those consumers unaware of what
the service has to offer, understanding the connection it has to some of their favorite
networks may create the desire to do further investigation into the option, especially
amongst consumers who understand Netflix and its delayed gratification model when it
comes to current TV.
Marketing Support Programs
Target Market
With online streaming services focused on delivering content to Internet-
connected devices, the target market of Hulu and its competitors lies in both Millennials
and the younger Gen Z, loosely defined as those currently 20 and younger. Both of
these groups are Internet-savvy and mobile-focused, with Gen Z being raised in an
Internet-connected world, therefore being more attracted to any brand that is Internet-
based. As buying power increases amongst Gen Z, there is a greater focus on attracting
this younger demographic but, with 82 million and 83 million in population, respectively,
both Gen Z and Millennials represent the largest portion of the total U.S. population and,


thus, both having a desire for constant connectedness that online-based services
provide (Geller, 2015).
Product
By recently acting on the need to add a commercial-free option, Hulu provides
consumers with options on how they would like to view their content. The target market
for streaming services is made up of populations that grew up with choices and desire
that from brands, as long as it is not too much choice. In the aforementioned small
survey, there were multiple mentions of Millennial audiences being aware of the service,
some being subscribers, whether it was the respondents themselves or someone that
they knew. This identification by younger audiences shows that the product provided is
attracting its intended target and, with just three streaming options, gives a choice of
how the subscriber wants to experience wide array of content without option overload.
Place
With Hulu being available on any Internet-connected device, it is easily
accessible by the digital natives that make up its target market, as long as they are
aware of the service.
Price
By adding the commercial free option, Hulu does not instantly reflect the
cheapest streaming option when Netflix and Amazon provide commercial-free
streaming at lower prices. In terms of getting consumers’ attention, Hulu’s potential


subscribers must understand the full benefits of subscription so that price is not
perceived as a downside to the service that is already being overshadowed by its
competitors. As consumers look to minimize expenses, particularly in a realm where
there are multiple options, price is an important aspect when selecting a service.
Promotion
Similar to one’s ability to access Hulu from any Internet-connected device, Hulu’s
Internet- and social-media focused advertising strategy also reaches its target market
where they are. Additionally, by promoting the service during shows that are also
available on the service, Hulu is attracting potential subscribers that they know would be
interested in at least some of their content based on what they are watching on live
television.
Strengths & Weaknesses
Relative to its younger target market, Hulu’s marketing program is very strong in
terms of what it brings to the market but, in the shadow of Netflix, Hulu continuously has
the opportunity to further expand on its brand identity using its unique offerings. Its
largest weakness is driving awareness around the added benefits that consumers have
already identified, either with the help of marketing or higher usage, in its competition.
Competitive Environment Attitudes & Perceptions
When understanding how consumers see Hulu in comparison to its top
competitors, Netflix and Amazon Prime, one can reference the many articles that


summarize the pros and cons of each service to assist consumers in choosing one or
more services based on their needs. These articles reflect the perception of each
service based on advanced knowledge, driving one to assume that the typical consumer
may not be aware of each of these benefits or pitfalls and rely on others’ knowledge to
make a decision. In the summer of 2015, prior to the release of the commercial free
option, Marshall Honorof (2015) summarized the pros and cons of each service, sharing
what can be found in most articles comparing the services. Honorof (2015) named
Netflix the “Best Overall Streaming Service”, Hulu the “Best For Network TV”, and
Amazon Prime the “Best For Families”. The breakdown of each can be found below.


Source: Tom’s Guide
In addition to the simple comparison of pros and cons that help drive consumers’
perceptions of each of these services, the perception map below also helps to identify
each services’ place amongst its competitors based on its performance in the industry
and strength in brand identity. With Hulu seeming to take a position close to the center
of the axes when this analysis was done in the summer of 2015, it can be expected that
greater focus on the brand meaning and promotion of its new focal points can help to
drive its position further into the second quadrant alongside Netflix.
Source: AdWeek


BRAND RECOMMENDATIONS
Based on the information shared in the brand inventory and exploratory,
identifying the perception of the brand by the company itself and consumers, the
following recommendations are being proposed with the goal of increasing Hulu’s
market share in the streaming video on demand industry.
Recommendation #1: Leverage The Definition of Hulu
Objective: Increase brand awareness by 35% amongst target market in 12 months.
Strategy: Leverage the definition of Hulu to drive greater meaningfulness amongst
current and future subscribers.
Tactics:
• Create brand imagery that reflects the primary meaning of “holder of precious
things” and its secondary meaning of “interactive recording”
• Develop a fresh marketing campaign revolving around the primary and
secondary definitions of “Hulu” in relation to the overall service and its content
• Periodically highlight the definitions in social media and blog posts when
applicable
Recommendation #2: Reinforce Subscription Benefits
Objective: Increase market share by 8.5% in 12 months.
Strategy: Market the subscription-based product using the core benefits of the service to
introduce and reinforce what users get by becoming a subscriber.


Tactics:
• Leverage proposed marketing campaign focused around brand definition to
reinforce the benefits
• Rebrand portions of the Help Center to create a “Why Hulu?” landing page with
all relevant benefits-focused content
Recommendation #3: Increase Interaction with Target Market
Objective: Maintain at least 95% of current subscriber base in 2016.
Strategy: Utilize online media to increase brand interaction with target market, which
has been defined as a highly connected population.
Tactics:
• Promote Hulu blog posts on social media channels to drive traffic to the blog,
which focuses more on the benefits that drive the brand such as content
acquisition, media partnerships, and future plans
• Create a social media campaign driven by user-generated content to drive peer-
to-peer influence between current and potential subscribers
• Give an inside look into Hulu and its employees using social media channels
Recommendation #4: Leverage Future Plans
Objective: Increase subscriber base by 60% in 12 months.
Strategy: Strengthen Hulu’s brand perception in the market by leveraging the future
plans for the service as communicated by the CEO.


Tactics:
• Develop a PR campaign focused around sharing breaking stories about new
breakthroughs of Hulu
• Create a blog-focused series called “Hulu of the Future” to drive awareness
around the unique forthcoming features of the service
Brand Results
In the streaming video on demand industry, depending on what a consumer is
interested in watching, it is not always a decision of what service to choose over the
others, but it is often a decision of whether or not to add an additional subscription to
what they already have. In revisiting Nielsen’s Total Audience Report, Netflix is in the
lead with 36% market share, Amazon with 13%, and Hulu trailing with just 6.5%. By
leveraging these brand recommendations, Hulu should surpass Amazon to gain 15%
market share by 2017 as they continue to embark on updates to the service and utilize
their marketing strategies to ensure that current and potential subscribers establish and
maintain a connection to the brand and welcome it into their streaming service mix.


REFERENCES
Amazon. (2015). About the Amazon Prime membership charge. Retrieved from
https://www.amazon.com/gp/help/customer/display.html?nodeId=200966690
Armstrong, O. (2015, Jun. 1). Uh-Oh, is Netflix experimenting with commercials?
Retrieved from http://decider.com/2015/06/01/netflix-experimenting-with-
advertising/
Clark, C. (2011, Oct. 6). Customers' top five call center pet peeves and how to resolve
them. Retrieved from
http://www.1to1media.com/weblog/2011/10/customers_top_five_call_center.html
Fretts, B. (2015, Jun. 15). Inside Hulu's bold plan to lure new viewers. Retrieved from
http://www.fastcompany.com/3046885/innovation-agents/inside-hulus-bold-plan-
to-lure-new-viewers
Geller, J. (2015, Sept. 1). Move over, millennials. Gen Z is new target audience.
Retrieved from https://www.bostonglobe.com/business/2015/08/31/brands-turn-
attention-towards-gen/wV99rNryDEEEhd06UjioFN/story.html
Honorof, M. (2015, Jun. 19). Best streaming video services 2015. Retrieved from
http://www.tomsguide.com/us/best-streaming-video-services,review-2625.html
Hulu. (2015). About us. Retrieved from http://www.hulu.com/about
Hulu. (2015). Help center [Online image]. Retrieved from http://www.hulu.com/help


Hulu. (2015, Oct. 6). Hulu and Viacom expand content partnership in robust, new multi-
year agreement. Retrieved from http://www.hulu.com/press/posts/hulu-and-
viacom-expand-content-partnership-in-robust-new-multi-year-agreement
Hulu. (2015) What defines Hulu? Retrieved from
http://www.hulu.com/jobs/what_defines_hulu
Hulu. (2015). Why subscribe? [Online video]. Retrieved from
http://www.hulu.com/help/articles/26164956
iSpot.TV. (2015). Hulu TV commercials. Retrieved from
http://www.ispot.tv/brands/IqZ/hulu
Kastrenakes, J. (2015, Apr. 29). Hulu hits 9 million subscribers as TV and mobile
viewing takes off. Retrieved from
http://www.theverge.com/2015/4/29/8513147/hulu-9-million-subscribers
Keller, K. (2013). Strategic brand management (4th ed.). Upper Saddle River, NJ:
Prentice Hall. ISBN: 0132664259.
Kilar, J. (2008, May 13). What’s in a name? [Weblog]. Retrieved from
http://blog.hulu.com/2008/05/13/meaning-of-hulu/
Lynch, J. (2015, Jun. 24). Here's why consumers love Netflix more than Amazon and
Hulu. Retrieved from http://www.adweek.com/news/television/here-s-why-
consumers-love-netflix-more-amazon-and-hulu-165547
Mitchell, C. (2002). Selling the brand inside. Retrieved from
https://hbr.org/2002/01/selling-the-brand-inside
Netflix. (2015). Overview. Retrieved from http://ir.netflix.com/
Netflix. (2015). Pick your price. Retrieved from www.netflix.com


Palermino, C.L. (2015, Jun. 23). Hulu subscribers will get $2 off Showtime’s stand-alone
monthly service. Retrieved from http://www.digitaltrends.com/home-theater/hulu-
showtime-premium-discounted-bundle-9-per-month
Steel, E. (2015, Sept. 2). Hulu starts a commercial-free option to rival Netflix and
Amazon. Retrieved from
http://www.nytimes.com/2015/09/03/business/media/hulu-starts-a-commercial-
free-option-to-rival-netflix-and-amazon.html
Walker, A. (2014, Feb. 24). Brands need to know their purpose and what they aspire to
be. Retrieved from http://www.adweek.com/news/advertising-branding/brands-
need-know-their-purpose-and-what-they-aspire-be-155875
Waniata, R. (2015, Sept. 12). Battle of the streaming giants: Which streaming service is
best for you? Retrieved from http://www.digitaltrends.com/home-theater/netflix-
hulu-plus-amazon-instant-video

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