Communications Plan: Netflix Essay example

1421 Words Nov 9th, 2012 6 Pages
Netflix is recovering from one of the worst self-inflicted corporate marketing gaffes in years. After years of offering an excellent value to customers purchasing its unlimited single DVD and streaming services for only $9.99 a month, Netflix unexpectedly announced that it would be completely separating its DVD service from its streaming service, causing a price increasing of 60% to $15.98 for customers who wanted to keep both services. Overnight, Netflix angered many of its very loyal customers and lost over 800,000 of its 24.6 million members due to the debacle [1]. Adding fuel to the fire, Netflix decided to actually create separate brands and separate websites for the two services, keeping the Netflix name for its streaming services …show more content…
This plan should make use of public relations and publicity, promotions, and advertising. On the public relations front, Netflix should continue to e-mail and even consider mailing letters to its customers and former customers thanking them for their current/past business and discussing Netflix’s continued efforts to expand its streaming library (which will one day displace the need for its DVD business). On the promotions front, Netflix should consider offering all of its current streaming customers one free DVD per month (at for some time period) on any title which is not available for streaming. Since most customers prefer streaming anyway and just dislike the limited catalog the streaming service provides, this should show them that Netflix is listening to their concerns even while it is working to aggressively expand its streaming catalog so that customers eventually “never have to” receive physical discs again at some point in the future. Netflix should also reach out to all of its former customers, extending this same offer to them if they come back – there’s a good chance they could regain lost customers by providing this option to them. For new customers who have never done business with Netflix, the company should charge a few

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