Netflix – Strategic Marketing Plan
A. Goals (Measurable):
Goal #1: Consistent Growth of Subscribers
Reed Hastings stated the following in 2002: "We have set a long-term goal to acquire 5 million subscribers in the U.S., or 5 percent of the U.S. TV households over the next four to seven years." According to the 2003 Annual Report, that goal was on its way to being achieved: Netflix added 630,000 net subscribers in 2003, bringing the total subscriber count to 1,487,000, an increase of 74% year over year. At the end of 2009 it counted 12.3 million subscribers. The company is continuously growing the target for subscribers will be going from 15.5 million to 16.3 million.
Goal #2: Consistent Growth of Revenue
Rising subscription rates will naturally result in rising corporate income. However, that can only be translated into increased profit if costs do not also rise. That appears to be happening. Netflix has become not only one of the very few dot-com success stories but also a highly profitable one, growing substantially in the face of increasingly strong competition. Their 2003 Annual Report provides more details of their success in increasing corporate revenue: a 78% increase in revenue to $272.2 million for net profit of $6.5 million. More recently, the Netflix.com press room provided data that showed continued improvement through the first quarter of 2009: End of 2009 the estimated target presented revenue of 1.67 billion dollars with an increase of 22% year on year. The company is continuously growing and, for 2010, it has a revenue target that goes from $2.05 billion to $2.11 billion.
Goal #3: Category Leadership
Netflix has taken good advantage of their position as a first-mover and pioneer of the online movie subscription business model. At year-end 2010, we believe Netflix will have approximately 95% of the fast-growing market for online DVD movie rentals.
Goal #4: Deep Title Selection
Offering the largest possible movie title...