Netflix Inc Case Study: Emily Heath Part 3- Alternative Solutions

Netflix Inc. , Streaming Away From picturedisks Case Study Emily heathland Part 3- Alternative dissolvers To determine the company go out achieve perceptual constancy by maintaining customer appreciation and satisfaction, Netflix must invest their time and pecuniary resource into new alternative solutions. The solutions be ground on what problems develop presented themselves and atomic number 18 in best interest of the customers and the company. The main concerns at the moment bet to be the unreliability and instability of the company as the guidelines for expenditures and methods of delivery are constantly changing.There are a few possible suggestions that are up for experimentation to resolve Netflixs problems. 1. Incorporate commercials in front and after boththing that is viewed on Netflix. One of the greatest features about Netflix is the commercial loosen streaming that is avail open. However, to go much income, including commercials before and after each vid eo and movie testament assist with that. Doing it at the beginning and the end still keeps that commercial free feel, as its not interrupting whats being watched every five minutes the way regular TV does.Also, keeping the commercials to a minimum go out suffer for a quick mess years from the advertiser to the viewers. Although commercials are reoccurring and unremarkably disruptive, if the customers know they are getting a disclose movie excerption, they provide be satisfied. By airing these quick commercials, we are generating more income from advertisers. Solution Seek potence advertisers that provide pay to advertise their products briefly before and after viewing videos.Advantages Generating income for the company, authorityly the reason Netflix may be able to stretch its selections Disadvantages Netflix allow for not be considered commercial free. 2. Expand the intention market. Netflix is directed towards younger viewers (not by choice, due to the selection avai lable, a print market was formed). By adding in a variety of sometime(a) selection movies and TV shows that may appeal to different age groups allow for broaden the customer base. Also, extending the variety to younger markets.As of now, the limited variety of movies and TV shows do not accommodate extremely young and sometime(a) potence subscribers. If there is more selection consistd, we can include all age groups. By incorporating cartoons and shows for young children, we are opening up a entry for new customers. Young children impart be able to tune in and watch their favorite shows, making it a favorite for parents. By adding in older movies and TV series like Coronation Street that rump the older market, we are opening the door to potential customers in an older age group.Solution Incorporate more variety for a broader age group. include child friendly TV shows and movies, to ontogeny viewers at a younger age. Incorporate some of the older, less common TV shows and m ovies that target the elder customer base. Advantages Opens the door for even younger and older customers Disadvantages may be costly for the company to initially start and result swear completely on the outcome. Netflix must be sure they get out get hold of this extra customer base before making the investment. 3. Create a Customer Base (Expand Social Network) to improve the services of Netflix.The entire production line relies on subscribers. If they dont feel as if they are important, they will hesitate to continue paying their fees. Also, being able to communicate with the customers will create a more friendly and personal atmosphere. Starting up a chat room on Netflix to discuss what movies and episodes the subscribers want is a great option to explore. Also, by doing this we can get first ease up information and opinions from the source. Letting the customer know we care about them will improve the bond they have with the business.With a way to communicate to the custom ers, Netflix will be able to expand their customer appreciation and make better decisions to satisfy the consumers. Solution Create a chat room to incorporate customer feedback. Advantages This will create a bond with customers, will allow for opinions based completely on the consumer and will allow for Netflix to make accommodate changes to any issues affecting the subscribers. Also this may save some potential investments down the line because with a better run acrossing from the customers, the company will know which areas to splurge on. Example knowing what the customers want, allows Netflix to purchase more of the fashionable demands rather then take the risk with less popular options. Disadvantages It may be costly to start up. Also, it will postulate someone forever and a day on hand to review the feedback. 4. The biggest problem that is associated with Netflix is the unstable price and remuneration plan. The reason Netflix is so popular is because that is what the peop le love. The fact there is a flat rate to watch unlimited movies is the greatest selling commit for consumers.Every time Netflix announces a change to their flat rate, the amount of viewers disintegration along with the reputation of the business. It is the smartest idea to combine everything into one flat rate. A slight increase may allow for a newer and greater selection on Netflix. If customers are aware of the slight price change and understand it will be beneficial for them rather then the company, they will be a lot less hesitant to pay it. Solution stage a fixed price rate and plan for the customers. Advantages With a impartial price and plan, it becomes easier to account for.Consumers enjoy simplicity and are more instinctive to invest/continue paying for something that externalizems organized and permanent. Disadvantages Loosing the separate effect of DVDs and TV shows. Rather then support what Reed wants by keeping it separate, the company must support what the custo mer wants as it relies on consumer satisfaction. 5. Creating a rewards program for customers will encourage viewers to continue using the service and will potentially increase the time spent on Netflix by the consumers.By incorporating a reward for using the product, it will increase day by day views by already existing customers and will open the door to a large amount of new ones. If consumers know that their time spent is important to the company, they will be more willing to continue subscribing and potentially increase their viewing times. Solution Create a reward system that is based on views. (The more videos viewed, the better the reward) For example, if customers view over 30 hours a week on Netflix, a 5% decrease on the periodic payment may take effect. Not an actual set price and reward system for Netflix). Advantages This increases weekly views and will assure the company a certain amount of views is always being accounted for. This also encourages people to unload more time using the product and attracts new customers. Disadvantages a potential loss in the beginning for the company if they dont have the sufficient funds. This is also time consuming for the company and will require attention to be spent primarily on rewarding the customers. habitue Netflix With the 3 Ps (Conclusion)Price Solution 1 and 4 (above) center on the price. Netflix must erase competition by fixing a competitive price. Also, they need to make sure they are offering the well-nigh for the cost. Promotion Solutions 1, 3 and 4 (above) focus on the promotion. By promoting itself with a new approach, Netflix can gain new customers and continue building relationships with the front ones. Distribution Solution 2 and 5 (above) focus on the distribution. Netflix must make sure its available to everyone and that it is a high demand.Using the solutions suggested will expand the customer base and improve distribution, allowing Netflix more control than other companies. Netflix has the cleverness to be a great dependable DVD rental and online video streaming service. A few slight changes and improvements made will ensure the business will stay striving for years to come. Netflix must be on a fixed rate to offer customers. As a completely customer reliable business, it is necessary to involve them in every way possible. As a company, it should and will be Netflixs mark to show the customers what they want to see.By opening this two-way road, company workers and everyday customers will be able to discuss and potentially vote for what shows and movies they would like to see more of. Another thing to take into account are the opportunities for advertisements. The more advertisements Netflix can show throughout a day without interruption will improve the variety of TV shows and movies that they can air due to a budget increase. Netflix needs to become dedicated to its customers in order for it to be successful. Following these suggested solutions may help in crease overall yearly gross sales and customer satisfaction.