Answer To The Question No 1: V Value Proposition For Netflix

The document discusses Netflix's VARS framework. It provides details on: 1) Netflix's value proposition which includes their large content library, lack of ads, ability to stream on-demand and binge watch shows, simple pricing plans, and personalized recommendations. 2) Netflix's activities and resources, which are their brand, streaming platform, licensed and original content library, algorithms, technology team, and production studios. 3) Netflix's revenue model, which currently relies over 99% on subscription payments.

Uploaded by

Nahian Sadi

Available Formats

Download as DOCX, PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

15 views

Answer To The Question No 1: V Value Proposition For Netflix

Uploaded by

Nahian Sadi

Available Formats

Download as DOCX, PDF, TXT or read online on Scribd

You are on page 1/ 4

Answer to the question no 1

VARS Framework of Netflix

V= Value proposition for Netflix:

 Content library: They have got a huge content library.

 No ads: No ad interruption only if it's engaging
 On-demand consumption: In contrast to TV, for the following episode, you don't have
to wait one week. Users may always watch.
 Ability to binge watch: You might also watch binge. All episodes of one series season
are accessible simultaneously. This stimulates client support and word of mouth.
 Simple pricing: The use of an infinite flat fee (3 of which you can pick) for unlimited
access, no third parties, no additional premium content, no pay on request,etc.
 Convenience and mobility: Capacity to track each device
 High-quality connection: A baseline to measure connection speed is the Netflix ISP
Speed Index. In non-peak hours, Netflix uses CDNs and other means to get its content
closer to viewers geographically.
 Freemium: Free month to trial – All can be accessed in this era (no premium content,
features, etc. that are excluded)
 Personalization: a recommendation system that takes into account what each person has
already viewed and enjoyed (instead of a static 'if you like that, that could be something
you like')
 Localization: An increase in traffic location (subtilities) is not necessary to ensure that
the meaning gets translated (not just the words). International content creation (not just
pumping out US shows)

A= Activities (Resource and capabilities) of Netflix:

 The Netflix brand: While Netflix promotes mostly their new episodes, through that form
of promotion they are still building a brand. They are among the top 100 brands
worldwide.
 The app / website: the essential resource for providing material and experience
 Content library – licensed content: In Netflix's services, licensed material continues to
play a large role. Many additional distributors of streaming video have declared that they
will cease their Netflix licensing. This can influence up to 20% of the overall content
library of Netflix and is one of the reasons why Netflix invests so much for content.
 Content library – Netflix-owned content: Products (made or bought) can have a longer
lifecycle since after being completely amortized they can be resumed (i.e. generate
income at no cost – every company's desire). You can also license other distribution
companies for content and so generate money
 Algorithms: Constant data analysis based on algorithms and business enhancement,
application, features, etc.
 Technology staff: Technology has made Netflix a streaming provider (beginning as a
DVD-mailing company) and you can see they value their technology employees with
their inventory payment schemes
 Actors, writers, filmmakers: Netflix regularly uses and gives more creative flexibility
to indie and beginners. It will be fascinating to see the change in supply / demand in this
area with many other streaming companies increasing their content creation
 Studios: Netflix began purchasing studios and recruitment personnel to help the creation
of content.

R= Revenue of Netflix: At this moment, more than 99 percent of revenue is derived through
subscription payments. Other types of future revenue are available (incl tiers, premium
content, licensing out, etc.).

S = Scope of the Business:

S = Scope of enterprise.
The will help the enterprise to research, develop their product and distribute then after all of
these things it will be in sales. First of all need to find out the customers and about the service.
Next develop it if they have any lacing or not then distribute it through ads and the sell it
Answer to question no 2
Brand association mainly gives us the knowledge, information and qualities about the brand that
a customer have in their mind. That will be set to the customers memory . If a customer have an
idea about the product in his mind, he won't forget it easily. For example, in this advertisement
of Horlics ,a customer can have a set of mind that Horlics should be mixed up with the milk it
will increase the strength of the milk. As a child is there so it is also showing that it is for
children only.

This advertisement contains brand association with product attributes, customer benefits, who
will be the customer, product category. Frist of all the type of the product, what will you get
and how to have it and how it is going to help you is clearly shown in the ad. Secondly the
benefit of the consumer, as it will increase the strength of the milk so it will also give stronger
growth of the child. How they will be benefitted after having this . Thirdly, the product will be
for the children, two children are ready to play as they need energy so Horlics will also give that
to them. Lastly Product category, what type of product it is , that is also visual for the consumers
in the advertisement. Horlics is going to mixed with the milk than they can have it. In this
circumstances product attribute and consumer benefit will attract the customer to buy the brand .

In the product levels , it is said that how the product will value the customer's need and fulfil it ,
their expectation, customer service and benefits the offerings ,the potential of the product.

In this advertisement we can assume that the product Horlics is going to fulfill the core value and
core needs of the customer which is called the core benefit. Next, the core benefits are delivered
to the customer such as give strength to the customer. Then, the customer might have a
expectation regarding the product and set a benchmark for it. For example the children will get
strong body and play well. And Horlics will also give extra service and benefits to the customer
without the strong body or giving more strength. When Horlics comes up with the idea of strong
body ,after having Horlics then Complan aslo came with the same product and same tag line . So
when the expected product level will increase then the competition will aslo increase. So to set a
mindful approach we need to transform the product offerings and possible augmented products.