International marketing strategy Assignment Sample
Introduction
International sales growth greatly depends upon strategic approaches that organisations undertake to expand themselves in the international market. Based on existing performance and data collected from ongoing market trends, international organisations try to emphasise on putting forward a better approach to internationalise their business so as to get better customer coverage and a wider perspective to generate revenue. Taking case study off Netflix, this study engages into our brief market strategy based on its internal and external factors using pestle and swot analysis. Further, formulation of marketing mix using 4Ps of marketing have also been highlighted in this study to understand marketing strategies that can be used to expand in Germany. A marketing audit conducted for Netflix to expand its international business in Germany mainly includes a detailed analysis of both internal external analysis with a detailed focus on strategies for customer retention. As a part of marketing tactics, Netflix in order to sustain a competitive market and ensure international business expansion in Germany have focused on using marketing mix to promote their sales and come up with more creative content. In order to ensure a long-term relationship with customers in Germany, Netflix has attempted to use its internal strengths to gain opportunities and at same time understand weaknesses to avoid threats. For business expansion in Germany, Netflix has done a critical analysis on customer segments that are predominant in the market and have analysed that Germany customers have a wide demand for anime series according to the 2020 report. Therefore, Netflix as a part of its customer persona is targeting specific young and middle-aged audiences who are anime fans in order to increase their sales in Germany. Along with animal lovers in Germany, Netflix also emphasises on targeting young audiences who have a keen interest for exploring different web series. The main marketing preference that Netflix emphasises on is through using social media and digital platforms. Paid promotions on other applications can help Netflix to reach its target audience in Germany. Based on a marketing audit that has been done using internal external factors, Netflix is expected to have tough competition in Germany with increasing levels of other entertainment sources similar to that of Netflix. Netflix might find it difficult to get hold of a large customer base and therefore morning fixes on marketing strategies and pricing techniques need to be made. These are improvement areas that can help Netflix to get better customer coverage and allow them to increase their sales growth in the internationalising German market. Based on customer preference, Netflix needs to modify their product and service range by incorporating more anime entertainment shows to attract customers and create a loyal customer base. However, on making such customer specific approaches, Netflix has high chances to experience ethical issues in lack of uniformity among customer oriented shows and can often come up with biassed marketing strategies. These ethical standards can create a negative impact on the process of internationalisation thereby affecting Netflix brand image.
Marketing Strategy
In recent times, Netflix marketing strategy incorporates email to increase sales by introducing new users to online streaming platforms. Organisation has focusing on segmentation of groups and offers personalised product recommendation and relevant updates depending on customers’ needs
PESTLE Analysis
| Factors | Aspects | Impacts | |
| Political | The Court of Justice of the European Union has ruled against online streaming industry, dismissing a challenge to online streaming giant to have Germany film subsidy system apply to them (Roxborough, 2018). | Changes in German law force organisations from the online streaming industry to contribute a limited amount of money they earn from services they provided in Germany national subsidy system. Therefore, online steaming giants have to face reduction of their overall profitability while operating in Germany. | Negative |
| Economical | It has been identified that Germany has considerably low inflation within the country compared to other countries. As per reports, in 2022 Germany will have an inflation rate of 5.46%, which is decent for an organisation in operating business (STATISTA, 2022). | Having a lower inflation rate would be effective for online streaming platforms to increase sales. Lower inflation rates in Germany provide the ability to effectively choose a right amount for their services. Therefore, analysis for customer purchasing ability marketing online streaming platforms able to provide effective offers to people from Germany. | Positive |
| Social | Age distribution is an important social factor for online streaming platforms. It has been identified that majority of German population belongs 40 to 59 years old (STATISTA, 2022). Moreover, other age group also available those usually online streaming platforms are required to follow for increasing sales. | Age distribution means organisations are required to understand the preference of customers. Understanding preference would assist online streaming platforms to provide content that would connect with every age group of people. For instance, online platforms were able to create content that are only for adults cannot be accessed by below adults accounts in platform. | Positive |
| Technological | Availability of AI and machine learning within country would provide assistance to online streaming platforms to improve the experience of customers. As mentioned by Holzinger et al. (2019) Artificial Intelligence (AI) would improve the customer experience, which might become a key factor for online streaming platform. | Implementation of technology such as AI and machine learning would be able to provide users more relevant and intuitive recommendations. This technology would effectively be able to identify customer preference using algorithms and provide them similar content in online platforms to improve their experience. | Positive |
| Legal | Using VPN is a legally approved by German government that is a potential risk for online streaming platforms (Meads 2021). Legal approval of VPN technology affects online streaming platforms in increasing user count in platforms. | Availability of VPN provides users the ability to download online content from websites such as torrents. In different country website such as torrent has been banded because it able to provide online streaming content to user without paying money. Therefore, it influencing mindset of user to not subscribe in online platform, which affecting sales of online platform in organisation. | Negative |
| Environmental | Environmental impact assessment Act has been implemented in Germany to provide assistance in maintaining the environment to make country environment friendly (Elspaß and Feldmann 2021). | Following the legislation would be able to improve their sales by promoting environment friendly advertisement services on online platforms. This is an effective initiative to promote the environment within country by making ad related to saving environment. | positive |
Table 1: Pastel Analysis of Germany
(Sources: Influenced by Elspaß and Feldmann, 2021)
SWOT analysis
| Strengths | Weakness |
| Netflix one of the strengths is the originality in their online streaming content. Netflix include many movies and web series that are created by different film industries however, they are also having content such as “money heist” and “Tiger king” that are filmed by them also able to get higher popularity (NETFLIX, 2022). | Netflix has limited copyrights that become its main weakness. Netflix does not own the majority of their content that is available on their online platform. |
| Opportunity | Threats |
| In order to increase sales Netflix has provided an effective mobile streaming option in lower pricing. They provide lower price option for mobile user for a limited time of period. | Competitive pressures have increased for Netflix within countries such as Germany. Country also has streaming platforms such as Amazon and YouTube that create challenges of overall sales. |
Table 2: SWOT Analysis of Netflix
(Sources: NETFLIX, 2022)
4p marketing mix
Figure 1: 4p Marketing Mix
(Sources: Influenced by Karim et al. 2021)
The 4p’s marketing mix is an effective marketing strategy that organisations usually adopt for improvement of their sales and customer retention. As mentioned by Karim et al. (2021), this market mix strategy includes a total of four factors that are place, product, promotion and price. Effectively focusing on each of these factors, online streaming platforms such as Netflix is able to gain better results for their marketing strategies.
Place
Increasing customer retention with places such as Germany, Netflix required focusing on effectively creating content depending on people’s preferences. Germany is considered as an urban country that indicates that majority for German population is able to take online streaming subscriptions. In this case providing different subscription plans would be effective for increment sales in Germany.
Product
Achieving improvement within Germany Netflix required developing quality content that would be able to connect with people. As commented by Gulati (2020), Germany demand for anime series has increased according to 2020 reports. In this case, Netflix has recently started working on creating “One Piece” anime live action adaptation. This would assist to attract amine fans from Germany that might assist in increasing sales.
Price
Having lower inflation rate within Germany provides Netflix the ability to reduce prices of subscriptions for their customers. Increasing competition within the country they were able to provide lower prices such as mobile plans that cost very less to attract customers.
Promotion
In case of promotion, Netflix always focuses on online and offline advertising. However, in recent times digital promotion of their online streaming services would be most effective for organisations. Therefore, effective promotion of content they provide in platform can influence customers’ purchasing decisions in Germany.
Conclusion
This study concludes with the importance of formulating marketing strategies in order to expand business to different countries so as to attract a large number of customers. Taking the case study of Netflix, Germany seems to be a potential market to internationalise their business and ensure a speedy growth in their sales. On this note, Netflix have opted the implementation of marketing mix to promote their sales and ensure customer retention. Based on the internal and external business strategies and factors, Netflix effectively has targeted a specific customer audience in order to sustain their sales growth. On implementing this marketing strategy, Netflix is expected to get the benefit of better customer coverage along with increase in sales. Along with it, market exposure and brand disability in the global market is also expected to enhance as a potential business benefit on using a strategic market mix. Further, based on pestle and swot analysis, Netflix can also come up with strategic approaches so as to ensure a customer centric business innovation in the German market. These internal and external factors help Netflix in determining the most appropriate marketing strategies that can give them better returns on their investment and allow high customer exposure. The main target audience of Netflix in the German market are the young and middle-aged anime lovers who prefer to watch a maximum number of episodes and Web series of anime concepts. On this criteria, marketing strategies in terms of promotion and selection of stories for developing web series need to be done. Customer segmentation makes the marketing strategy more relatable and specific to customers thereby directly hitting on their taste and preferences. However, ethical issues in terms of biassed and forced marketing of Netflix can also be witnessed in order to attract a specific customer range. In Germany, because of high competition, Netflix needs to strategically position their production services in such a way that they get better sales growth along with competitive advantage on their sustainable position.
Potential business benefit to Netflix in the German market to attract a large number of customers would be measured by a gradual increase in sales growth. In this context, it can be stated that Netflix is expected to increase sales growth by 10% in Germany in the first year of its operation. However, it is expected that there will be a gradual increase of additional 5% every year in sales as well as customer coverage. These are the key parameters that would be used to measure the success of these marketing strategies adopted by Netflix. Additionally positive feedback from customers on different social media platforms can also help Netflix to understand the success of their strategies and at the same time ensure further improvements in business processes. Based on the current scenario, Netflix is expected to bring modifications in its entertainment programs thereby increasing their customer coverage to all market segments.
References
Elspaß. M. and Feldmann. F., (2021). Environmental Law and Practice in Germany: Overview. Available at: https://uk.practicallaw.thomsonreuters.com/4-503-0486?transitionType=Default&contextData=(sc.Default)&firstPage=true [Accessed on: 7th October 2022]
Gulati. V., (2020). Top 10 Countries where Anime is Most Popular and Why!. Available at: https://www.epicdope.com/top-10-countries-where-anime-is-most-popular-and-why/ [Accessed on: 7th October 2022]
Holzinger, A., Langs, G., Denk, H., Zatloukal, K. and Müller, H., (2019). Causability and explainability of artificial intelligence in medicine. Wiley Interdisciplinary Reviews: Data Mining and Knowledge Discovery, 9(4), p.e1312.
Meads. R., (2021). Is Streaming in Germany Legal, and What are the Risks? Available at: https://liveworkgermany.com/is-streaming-in-germany-legal/ [Accessed on: 7th October 2022]
NETFLIX (2022). Netflix. Available at: https://www.netflix.com/in/ [Accessed on: 7th October 2022]
Roxborough. S., (2018). European Court Rules Against Netflix in German Film Subsidies Case. Available at: https://www.hollywoodreporter.com/business/business-news/european-court-rules-netflix-contribute-german-film-subsidies-1112391/ [Accessed on: 7th October 2022]
STATISTA (2022). Germany: Inflation rate from 1987 to 2027. Available at: https://www.statista.com/statistics/375207/inflation-rate-in-germany/ [Accessed on: 7th October 2022]
STATISTA (2022). Population of Germany as of December 31, 2021, by age group. Available at: https://www.statista.com/statistics/454349/population-by-age-group-germany/ [Accessed on: 7th October 2022]
Yasar. K., (2021). 4 P’s marketing mix. Available at: https://www.techtarget.com/whatis/definition/Four-Ps [Accessed on: 7th October 2022]
Karim, R., Latip, N.A., Marzuki, A., Haider, S., Nelofar, M. and Muhammad, F., (2021). The impact of 4ps marketing mix in tourism development in the mountain areas: A case study. Int. J. Econ. Bus. Adm. IJEBA, 9, pp.231-245.
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