Netflix: Segmentation, Targeting & Positioning


Netflix is the world’s driving Internet TV station with more than 83 million individuals in more than 190 nations getting a charge out of more than 125 million hours of TV appears and motion pictures every day, including unique arrangement, documentaries and highlight movies. Members can look as much as they need, at whatever time, anyplace, on almost any Internet-associated screen. Individuals can play, pause and resume watching, all without commercials or commitments.

If we use STP strategy, a well-recognised method of marketing strategy, it will shows out Netflix marketing plan, it would appear some company insight and it may appear different outcome.

What is STP?

STP is a market strategy, it divided into three steps which include Segmentation (S), Targeting (T), and Positioning (P). STP it is a top to bottom investigation of the present condition of the business sector and the organization. The outcomes are then utilized as an establishment for the brand’s vital promoting and situating, however ‘its value lies in its capacity to make gainful business open doors from comparable business sector circumstances’ (Bossidy, in Weinstein 2004).



Netflix business sector is extremely alert and always showing signs of change in innovation and buyer conduct. According to Hannah (2016) point out a report estimated that there are over 2.7 million Australians are using Netflix to watch films or TV series in 2015.

There are various methods for segmenting the market in video streaming business, however because of very different nature of clients who shifts in age, income, geographic region, and watching preference fluctuate with time. None of the division will be absolutely same property, quantifiable, generous, open, differentiable, noteworthy and above all productive.


Netflix focus on a mass business sector of purchase a membership of TV appears and films expecting to have the greatest piece of the pie with the biggest number of endorsers it can get paying little mind to age, foundations, convictions, inclinations and so forth. In spite of the fact that Netflix focus to enrol mass business sector it concentrates on individual supporters needs keeping in mind the end goal to hold them for quite a while. The higher the quantity of paying supporters the more Netflix can accomplish return on overwhelming interest in substance and innovation in light of the fact that exclusive low costs can be charged because of the way of the business and administration.


Situating Customer’s top need is comfort, reasonableness, speed, personalization of the video spilling and high choice of titles. Netflix go for being the top and decision for its clients by giving a more customized, quick, helpful, high determination but then moderate internet spilling administration than the majority of the contenders.

Perceptual map


Figure1 (Selection/Personalization)


Figure2 (Convenience/Economy)

N: Netflix, H:  Hulu, R: Red-box, A: Amazon, C: Comcast


Figure 3

According to the perceptual map shows that the difference between 5 video streaming business. It will point out where company are and where are their competitors.

According to the figure1 measure between selection and personalization. It can clearly to find out Netflix has high quality selection and high personalization, only Hulu is in the same section with Netflix, which means at this part Hulu would be the most dangerous competitor.

From the figure2 measure between convenience and economy. It points out that there are 3 companies in the high convenience and high economy section which include Netflix, Hulu and Red-box. Amazon and Comcast both are have high economy but inconvenience.

In the light of figure3, provide numbers and description of personalization and convenience. Through the numbers of selection can found out that Netflix has huge number of choices. Additionally Netflix and Hulu have to cost $7.99 per month. However, from these three figure can clearly Netflix is the most affordable choice for client.

Following is a Netflix introduce video:

According to the video, it briefly explain Netflix is an internet TV station, whether TV series or films, it provide huge adventure for members to choose different type of movie and it is pretty convenient for clients because of it can watch on any Internet-associated screen. In addition, join in the membership has a month free offer. Therefore, it definitely would be a wonderful choice for everyone who loves to watch films.

Above of all, Netflix’s marketing strategy for segmentation, targeting and positioning is aim to low value moment motion pictures and TV demonstrates stimulation with the greatest gathering focusing on the mass business sector. Contrasting with different contenders Netflix offers the watching knowledge without interruptions from different adverts.

Reference list

Netflix: Overview, <;

Evelyne O. 2014,’Netflix marketing plan’ <;

Weinstein, A, & Weinstein, as 2004, Handbook of market segmentation: strategic targeting for business and technology firms, New York: Haworth Press, retrieved 8 August 2016.

Hannah F. 2016, ‘The Netflix effect: Australian data consumption grows faster than ever in 2015’, the Sydney morning herald, retrieved 8 August 2016. <;


NETFLIX Commercial<;




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