VIDEO CONTENT MARKETING AUDIT
By Abishek Shrestha (0061055948)
MKT 5000
University of Southern Queensland
Date: 15/09/2015
Contents
Executive Summary. 3
1.0 Introduction. 4
2.0 Organizational overview.. 5
3.0 Environmental scan. 6
4.0 Customer, competitor and stakeholder analysis. 8
4.1 Customer analysis. 9
4.2 Competition analysis. 10
4.3 Stakeholder analysis. 11
5.0 Conclusion. 11
6.0 Recommendations. 12
7.0 References. 13
Executive Summary
The video content industry has gone through numerous changes in the last five years. Manypeople have shifted towards video streaming using mobile devices. Statistics indicate that more than twenty percent of the total video streaming happen in mobile devices. Tablets owners top the list of groups using mobile devices to stream video content(Morgan, 2015).
Click is an upcoming company intending to get at the top of video streaming industry by devising ways to remain at the helm of the industry despite the stiff competition. Click understands the ways around Hollywood from an analysis of big players strategies such as Netflix which will help keep it in business. It has an attractive business model that will keep its customers coming back. A reliable business model is one of the factors behind any company success due to readily available information. Click understands the competition tactics in this industry and the way to satisfy customer needs. Click intends to maintain a higher market share in the industry despite the presence of strong competitors in the industry such Netflix and Presto. Click has a customer appealing pricing policy that will keep its customers demanding their products and services.
This report is commenced to give an overview of Video streaming industry and how Click can get at the helm with the presence of a leading player Netflix which is our competition case study. It further gives an analysis of Click’s environmental scan and several essential aspects from Netflix necessary to help in understanding the industry such as the stakeholders, the market and suppliers. It further develops an understanding of the available opportunities for Click venturing along the same line of business despite the giant players. The report demonstrates how the available opportunities can be grasped from a good marketing audit because of the overwhelming number of users joining the video streaming platform using mobile devices (Teece, 2010).
Video Content Marketing Audit
1.0 Introduction
Sources indicate a growth in the number of people using mobile devices. The convenience associated with the gadgets makes them preferable by many. Mobile gadgets such as tablets and phones allow people access to communication and entertainment services at their convenience. Through the mobile gadgets individuals are able to stream videos and other digital content and even share. Video are good because they give the viewers an account of what is happening or had happened before. They help to inform people of what is happening on social platforms and the mainstream media. Because of the urge to be informed, entertained and keep up with the trends on the social platform and mainstream media at all times irrespective of where they are people have embraced the use of mobile gadgets to get the services (Ransohoff, 2010).
The video streaming platforms has attracted marketers and advertising agencies that are in dire need for audience and customers for their businesses. To be a point of interest and a preferable platform which attracts audience, the services offered by a streaming company have to be satisfactory. It is because of this reason that Click Company is working on its marketing strategies as a new venture to ensure survival in this competitive industry. One of the video streaming companies that have had a commendable marketing strategy which has seen it through success in this business is Netflix. Using Netflix as a case study in Click’s marketing analysis would give an account of how a new idea in the industry can be sold out to people, be natured and how to deal with possible challenges (Krishnamurthy & Krause, 2010).
2.0 Organizational overview
Click is an Australian owned company, intending to venture into video streaming industry with operations globally. The company has an impressive businesses model to help it sail to the top of the industry. The drive behind Click’s venture is the vision to see the internet streaming as the most preferred video viewing platform. The company believes that there comes a time when the internet television will be preferred to the traditional television. The resolution is Click’s long term view. This believe by the company is attributed to the high number of internet enabled televisions getting in the market. It also believes that the internet streaming services are an efficient way for information exchange unlike normal television. The rapid changes in technology have resulted to more flexible and faster channels than those that previously existed (Ilin & Raiko, 2010).
Click intends to offer efficient and reliable services in the video streaming industry. It has an objective of ensuring customer satisfaction and being the most preferable company this competitive industry.
Click recognizes that the journey to the top of video streaming industry is not an easy one. It requires dedication, passion, persistence coupled with investment. Click intends to use considerable amount of money to market itself out there to increase the sales for its products. Click intends to use about 500 million United States dollars in marketing and an additional 400 million for promotion of its online services an amount that is slightly above what the leading player in the industry uses. Click will offer original content to its customers, constantly work to better services and ensure client satisfaction. Click will work for a higher customer rating in service provision with the belief of making the industry better through innovativeness and advanced technology. Click will formulate its strategic plan based on consumers’ demands and preferences (Healy, 2010).
The company recognizes the presence of competition in the industry. It will always work to come up with strategies that grant a competitive advantage.
3.0 Environmental scan
Environmental factors form an essential aspect of Click operations and strategy formulation. A detailed account into the strengths, weaknesses, opportunities and threats the company is exposed to in its operations is essential in establishing the environmental aspect of Click. Click’s intended strategic operation in the competitive market and how it will handle competitors is also necessary in establishing a good environmental scan (Handman, 2010).
The table below demonstrates a SWOT analysis from Click’s projected operational activities.
| Strengths | Weaknesses | Opportunities | Threats |
| Strong brandBoth batch and in-stream mode.
Live feeds. Lightweight connection. Natural language processing system. |
Physical media( DVD’s and blue ray discs) | Growing need for internet television | Strong competition |
| A wide range of services | Delivering services | In-house programming | Biased regulation |
| Many subscribers | Global expansion |
The company’s plan to offer original content and in-house programming will ensure customer satisfaction due to content that is not manipulated. Click will offer both batch and in-stream modes, together with lightweight connection to allow for easy connection to any form of data. The idea will earn Click customer loyalty and appeal. The other opportunity for the company is its global coverage intentions which will expose it to a wide market scope both locally and internationally. The in-house operation aspect will save the company of high operational cost it would have incurred for outsourcing the service. The company will seek several technological advancements to improve it’s in- house programming service. The international market coverage will increase the demographic subscription of the company which will see it record a high number of social media followers creating a good marketing and customer interaction platform (Prescott, 2014).
Building on the opportunities by the company means it will improve on its expansion, have wide market coverage together with a good competitive advantage in the industry. The legal restriction and the general economic aspects are some of the major threats to the operations of Click. The legal restriction may arise from the control of the internet service providers by the regulating authorities. It is believed that the company might face discriminatory regulations. Click has also other forms of threats in its operations which include the competitors in the industry. Some of the established video streaming companies such Dish Network and Netflix are the players that Click is prepared to compete with by understanding their business and marketing strategies. Click intends to embrace diversification to spread the risk of loss due to high competition (Trautman, 2015).
Click intends to work on gaining a big number of subscribers by creating a strong brand globally, offering a wide range of products and making them available for customers to choose from.
Some of the projected strengths for Click include creating a strong brand both nationally and internationally. Through a strong brand, the company will enjoy clients’ loyalty and a global coverage to help in gaining a competitive advantage.
The physical media to be owned by Click is a component of the weaknesses. This is attributed to the Blue-ray discs reduction. To counter this Click will seek other means to sustain its operations such as engaging in partnership deals and expanding the streaming business.
4.0 Customer, competitor and stakeholder analysis
The company has a wider market target because of its intended diverse ventures in different regions globally. It aims at having subscribers widely spread around the world in more than fifty countries, by making its services easy to use for all adults even to those with low education levels but can afford. Click intends have about ten to fifteen percent of its total subscribers from the local Australian market. The primary market group is aged between 24 to 33years and believed to have an average income of about 50,000 Australian dollars and can access the internet. The company believes that the primary market target group has at least good internet knowledge and maybe a bachelor degree and a family (Dess, Lumpkin & Eisner, 2010).
Statistics indicates that both the married and single video viewers in this primary market target group have a preference for DVDs. The other market that Click targets in its operations are the people aged above 34 years but below 55 years. The estimated income level for this group is believed to be more than that of the primary market group. This target market income level is approximately 75,000 Australian dollars. This target market group is believed to have access and knowledge to use internet, they may have university education and better off financially than the primary market target group.
Click will also be targeting the international market with demography of between 25 years to 55 years. This target in the international market is also believed to have access and knowledge on internet use, they may have acquired university education or not but can afford the company services. All the target market groups by Click are believed demand the services and products of a video streaming company so as to get entertained either as individuals or with other family members. Click services guarantee ease of use and procedures for subscription that even an individual with high school education can easily navigate through. Video streaming market research indicates that the international subscribers prefer internet streaming when it comes to international and Hollywood movies. Click will adopt a translation aspect in the streaming services to enable international subscribers get services in their native languages. Because of the large number of people turning to mobile devices in the international market, the market shows signs of future growth which makes it suitable for new venture companies such as Click (Dawar, Debruyne & Pijakova, 2011).
4.1 Customer analysis
There is a big market potential in the international market; this is attributed to the increased number of people that companies are likely to reach in addition to what they serve locally. Europe is a good market region for the video streaming services for people aged between 25 and 55 years. The reason for this is because the target group forms the largest population in this region. The target group is believed to have a relatively stable income and can access the internet. European countries have commendable economies and the target market bracket is believed to be working. The group seeks the services of Netflix for self or family entertainment when they are home from work. However, Netflix has not fully entered this market which gives Click an opportunity to capture the market.
The target age bracket in the European and international market would certainly chose discs and other storable content that can be watched later when they have time because of their busy schedules.
Click’s strategy in this case would be designing products that can be kept for future viewing to suit the target group busy schedules. This would be a commendable move by the Company because strategy is built on customer preferences and behaviors (Cha, Kwak, Rodriguez, Ahn & Moon, 2009).
4.2 Competition analysis
Netflix has enjoyed several years of attractive revenue and prosperity in the video streaming industry. This success of the company saw other players join the industry which has led to increased competition. Click Company recognizes the presence of stiff competition in this industry. The increase in market share by Netflix at a decreasing rate suggests that other companies are eating into this giant player market share. For Click to avoid such trends in market share, it will work to ensure customer loyalty. Click is tasked with the responsibility to tackle direct and indirect competition in the market. One of the top indirect competitors in the video streaming industry is YouTube. Together with other sites that are known for piracy such bear share have eaten into the market previously controlled by Netflix.
These sites and websites entice customers with freebies and allow streaming without subscription. As a result those people who cannot afford the subscription charges opt for free videos from pirating sites. On the other hand, there are direct competitors for subscribers that Click is prepared to face in the industry, the direct competitors pose a great threat than the pirating sites. Companies such Netflix andAmazon pose a big direct competition threat to Click Company. However, providing people with low cost services and a commendable streaming speed will keep Click at the top of the competition with the direct competitors and the piracy sites (Madrigal, 2014).
Offering free services such as free shipping will earn Click a competitive advantage. Click intends to use the low but standard prices strategy and establishing healthy relationship with media houses to earn more business. Click intends to prioritize internet channel of distribution while at the same time offering options for motor and brick channels for a different customer experience to gain competitive advantage.
4.3 Stakeholder analysis
The company will work to ensure value of all the stakeholders, developing a good market strategy will helps keep the company in business which is the way to increased value for stakeholders. The business model is formulated to allow adjustments to include additional stakeholders. Click will work in establishing good partnership deals with companies, media houses, movie stars and other renowned personalities in the entertainment industry. This will be central in the operations of Click. Click will seek for a variety of stakeholders ranging from studios, their distributors and investors who are critical in moving the business to the helm of the industry. To add on the value of stakeholders, the company will embrace diversification to gain more revenue and spread any risk that might lead to losses. Click will work to have an internet television service which is a commendable move to increase its revenues and stakeholders value because many players have not invaded this line of service in large scale (Artero, 2010).
5.0 Conclusion
Having a mission, vision and set objectives are important aspects for the growth and expansion of any company. Business environment and competitor analysis are essential in company operations. There is also the need for establishment of a target market, understanding their preferences and behaviors which help in development of business strategy. Diversification and innovativeness should be at the center of any company wishing to beat stiff competition and continue growing in the video streaming industry.
6.0 Recommendations
Building on strengths and opportunities, coupling it with innovativeness and good strategy can help a new company sail to the top of the video streaming business industry despite stiff competition. The international markets remain a good venture for video content especially those of Europe because of large economies with a relatively stable income. Both market and product research remains a critical party for any video streaming companies. Research forms the basis for elaborate competitive strategies, coupled with innovative products and services form essential tools for any new ventures (Adhikari, Guo, Hao, Varvello, Hilt, Steiner & Zhang, 2012).
7.0 References
- Adhikari, V. K., Guo, Y., Hao, F., Varvello, M., Hilt, V., Steiner, M., & Zhang, Z. L. 2012, March. Unreeling Netflix: Understanding and improving multi-cdn movie delivery. InINFOCOM, 2012 Proceedings IEEE (pp. 1620-1628). IEEE.
- Artero, J. P. 2010. Online video business models: YouTube vs. Hulu.Palabra Clave, 13(1), 111-123.
- Cha, M., Kwak, H., Rodriguez, P., Ahn, Y. Y., & Moon, S. 2009. Analyzing the video popularity characteristics of large-scale user generated content systems.IEEE/ACM Transactions on Networking (TON), 17(5), 1357-1370.
- Dawar, N., Debruyne, M., & Pijakova, L. 2011. The Big Picture: A new source of competitive.
- Dess, G. G., Lumpkin, G. T., & Eisner, A. B. 2010. Strategic management: Text and cases.
- Prescott, M. 2014. Big data and competitive advantage at Nielsen.Management Decision,52(3), 573-601.
- Handman, G. 2010. License to look: evolving models for library video acquisition and access.Library Trends, 58(3), 324-334.
- Healy, C. 2010. Netflix in an academic library: A personal case study.Library Trends, 58(3), 402-411.
- Ilin, A., & Raiko, T. 2010. Practical approaches to principal component analysis in the presence of missing values. The Journal of Machine Learning Research, 11, 1957-
- Krishnamurthy, S., & Krause, T. 2010. Interactive technologies and retailing strategy: a review, conceptual framework and future research directions.Journal of InteractiveMarketing, 24(2), 96-110.
- Madrigal, A, 2014, How Netflix Reverse Engineered Hollywood, The Atlantic, January 2,
- Morgan, S, 2015, Competition forces Netflix to spend $1.5B on content this year, New York Post, March 17
- Ransohoff, D. F. 2010. Proteomics Research to Discover Markers: What Can We Learn from Netflix®?. Clinical chemistry, 56(2), 172-176.
- Teece, D. J. 2010. Business models, business strategy and innovation.Long range planning, 43(2), 172-194.
- Trautman, e, 2015, 5 online video trends to look for in 2015, Forbes Magazine,
Marking criteria for assignment 1 MKT5000 Abishek Shrestha
| Criteria | Does not meet minimum standard required (fail).0 – 19 marks | Work is of minimum standard (pass)20 – 26 marks | Exceeds Minimum standards (distinction)27 – 33 marks | Work is of a high achievement standard.34 – 40 marks |
| Learning objective 1 – problem solving and analysis.The audit has shown understanding of the internal and external factors relevant to the organisation that will impact the development of a marketing strategy.
It has demonstrated clear problem solving and critical thinking in the analysis and choice of theory. Total Mark
20/40 |
Students who are awarded a mark in this section have done one or more of the following:· Discussion of key points and themes has failed to demonstrate a clear understanding of theory and the characteristics of the target market chosen.
· The marketing issues (either internal or external or both) relevant to the product and the company have not been adequately identified and included in the analysis. · The tools for analysis have not been correctly used and the results have been incorporated into the conclusions in a manner that shows logical integration of theory and other sources of information.
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Students who are awarded a mark in this section have done one or more of the following:· The discussion of key points and themes which has demonstrated an adequate understanding of theory and the characteristics of the product. More detailed and deeper analysis would have resulted in a better score for these criteria.
· The marketing issues relevant to the product and the company have been adequately identified and included in the analysis · The tools for analysis have been correctly used and whilst the results have been incorporated into the conclusions there are some inconsistencies with the integration of theory and other sources of information.
|
Students who are awarded a mark in this section have done one or more of the following:· The discussion of key points and themes has demonstrated a solid understanding of theory and the characteristics of the product.
· Analysis was clear and well-constructed with some questions and inconsistencies. · The marketing issues relevant to the product and the company, clearly identified and included in the analysis. · The tools for analysis have been correctly used and results have been incorporated into the conclusions. · Some inconsistencies exist with integration of theory and other sources of information. Further information and analysis would have improved the work. |
Students who are awarded a mark in this section have done one or more of the following:· The discussion of key points and themes which has demonstrated a superior understanding of theory and the characteristics of the product.
· Analysis was detailed and included appropriate additional sources of information. · The marketing issues relevant to the product and the company have been clearly and thoroughly identified and included in the analysis. · The tools for analysis have been correctly used and the results have been incorporated into the conclusions. · There are no inconsistencies with the integration of theory and other sources of information. |
| Criteria | Does not meet minimum standard required (fail).0 – 9 marks | Work is of minimum standard (pass)10 – 13 marks | Exceeds Minimum standards (distinction)14 – 16 marks | Work is of a high achievement standard.17 – 20 marks |
| Learning objective 2 – Professional Communication and academic literacyThe work is well written, uses language and style appropriate for a professional marketer.
The work is appropriately supported with relevant theory and referencing style reflects academic and professional requirements. Total mark
10/20 |
Students who are awarded a mark in this section have done one or more of the following:· Failed to correctly cite relevant sources of information to support their conclusions and discussions
· Failed to use correct Harvard AGPS referencing style. · Failed to submit the assessment in the required report format · Submission has grammatical and/or spelling errors. · Have failed to use the required analysis tools (SWOT, TOWS, PESTEL, customer, stakeholder analysis, and competitor analysis) and/or have provided only cursory analysis with limited understanding of the tools used and the context of the analysis. · Failed to provide a report that shows logical presentation of information and synthesis of material is shallow and superficial in its analysis of information and largely lacks coherence for conclusions. |
Students who are awarded a mark in this section have done one or more of the following:· Generally cited relevant sources of information to support their conclusions and discussions using the correct Harvard AGPS referencing style and in report format.
· Many analysis tools (SWOT, TOWS, PESTEL, customer, stakeholder analysis, and competitor analysis) used – not all, but largely failed to conduct a deep and meaningful analysis with limited understanding of the tools used. · Have provided a report that shows some attempt to provide a logical presentation of information and synthesis of material. Analysis is somewhat superficial and there are some problems in terms of the coherence of discussion and conclusions. |
Students who are awarded a mark in this section have done one or more of the following:· Consistently cited relevant sources of information to support conclusions and discussions using Harvard AGPS referencing style and in the required report format.
· Have consistently utilised the appropriate analysis tools and have conducted a deep and meaningful analysis which shows a good understanding of the tools used and context for the analysis. · Report shows logical presentation of information and synthesis of material, demonstrating a sound understanding of the analysis of information and a coherence of discussion and conclusions. |
Students who are awarded a mark in this section have done one or more of the following:· Provided exemplary referenced support for their work correctly cited using Harvard AGPS referencing style and in the required report format.
· Have utilised the required analysis tools and have included information and/or analysis that exceeds the requirements for this assessment task. · Have conducted a detailed and thorough analysis of the information using referenced evidence and other sources to demonstrate a deep understanding of the tools used and have presented a synthesis and analysis of material that shows considerable coherence and depth of discussion and conclusions. |
| Criteria | Does not meet minimum standard required (fail).0 – 19 marks | Work is of minimum standard (pass)20 – 26 marks | Exceeds Minimum standards (distinction)27 – 33 marks | Work is of a high achievement standard.34 – 40 marks |
| Learning objective 3 The work shows an understanding of the environmental and contextual issues in marketing and provides a creative presentation of conclusions.
Total Mark
20/40. |
Students who are awarded a mark in this section have done one or more of the following:· Incorrectly identified or failed to identify the key environmental and contextual issues relevant for the product and target market of their choice.
· The assignment lacks a demonstrated understanding of marketing strategy. · There is an inadequate analysis and consideration of competitors and market opportunities · Conclusions do not link logically to the discussion and analysis
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Students who are awarded a mark in this section have done one or more of the following:· The key environmental and contextual issues relevant for the product and market chosen have generally been identified in the report.
· The proposal shows a superficial understanding of marketing strategy · The analysis and consideration of competitors and market opportunities is adequate but would benefit from a greater understanding of theory and work collecting data. · Conclusions link logically to the discussion and analysis but are somewhat superficial in nature. |
Students who are awarded a mark in this section have done one or more of the following:· The key environmental and contextual issues relevant for the product and market chosen have been clearly identified in the report.
· The proposal shows a sound understanding of marketing strategy · The analysis and consideration of competitors and market opportunities is sound but would benefit from a more incorporation of theory and other data. · Conclusions link logically to the discussion and analysis. |
Students who are awarded a mark in this section have done one or more of the following:· The key environmental and contextual issues relevant for the product and market chosen have been clearly and thoroughly identified in the report.
· The proposal shows a detailed and well-reasoned understanding of marketing strategy · The analysis and consideration of competitors and market opportunities is thorough and demonstrates a detailed understanding of theory and data. · Conclusions link logically and consistently to the discussion and analysis and show a solid understanding of the material covered. |
| Final mark 50/100 | ||||
Final Comments:
Please refer to comment/feedback in your assignment 1.
Demonstrated skills of secondary research! Demonstrated understanding and application of some key marketing theories! However, you need to include specific and current industry/market info to support your description and discussion.
There is still room for improvement. A good effort!
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