Strategic Plan Part I Proposal of a New Division

Strategic Plan Part I: Proposal of a New Division

Shady Rizkalla


May 18th, 2017

Corinne Martin


With all the social media and the technology, we have today it made it easier for people to save time and spend less effort to get what they need. Netflix made it easier for people to watch and stream movies anywhere with internet access such as at home, at work, in the car, or on the phone which made it easier and time saving rather than driving to the video store. Movie rental industry has been out for a long time but as technology gets better the easier it becomes. The founder of Netflix is Reed Hasting. He made it easier for a lot of us by sending DVD’s right in the mail box rather than driving to a video rental store. Keep in mind that Netflix had a huge impact on big rental companies such as Blockbuster, and the other big names out there. When Netflix first founded the only option was to ship DVD’s to your mail box but as of 2007 Netflix started to stream movies, T.V shows via the internet. Long time ago before Netflix was founded, people who wanted to watch a movie or rent a movie had the struggle of driving to a video rental store and had to stand in a long waiting line with the chance of not finding the movie they were looking for because back in the day these big stores were limited and didn’t had a big selection. The only way people would get the movie they want if it wasn’t available at the time was by putting their names on the waiting list. Netflix made it easy for people that why it became one of the huge successful movies businesses and on top of the others (Wang, Ucilia, 2014).

New Product

Netflix decided to develop a new product for the company to keep the company on top of the other competitors. The new product is going to be all the new movies in the movie theaters to be available to subscribers online or through a DVD in the mail. They idea is to save people money and time. So, for example if a new movie is in the theater at the same time Netflix will have that movie available for subscribers online or on a DVD. This way people who would want to watch a new movie that in the theater can watch it while at the comfort zone at home either online with their membership which is $7.99 or by the DVD mail service that Netflix offers. Now a day to watch a movie in the theater you must drive to the theater get a ticket for the movie, order snacks and drinks so the average person would somehow pay around $20. But witch Netflix you cut save time instead of driving to the movie theater, order snacks and spend more money. You can watch the new movie online anywhere in the world as long you have the membership or at home and in the same time you are saving money. Keep in mind that not everyone likes to go to the movie theater also when a new movie is in the movie theater not everyone is available to go watch it. After a new movie is out for a little bit it becomes at the retail stores to be sold on the shelves for at least $25 and not everyone can afford that. Netflix makes it easier and cheaper to watch new movie for the same price of the membership and anywhere.

Division Addresses

Netflix’s target market is always families with teens and adult that ranges between the age of 18-50 years. There are all kind of movies and some of the movies are not for kids or teens also many parent choose not to take their kids to the movie theaters due to their age. Due to a study people who goes more to the movie theaters are young adults. Sometimes young adults can’t to the movie theater due to work or school or they in need to save the money they are going to spend in the movie theater to watch a new movie. As the new movie hit the theater at the same time Netflix would have it available online.

Business Model

Demographic: includes age, gender. Netflix’s team can look up the users from the past to determine if age and gender are willing to pay more for the new service or not.

Geographic: depends on the locations by doing a survey Netflix team can determine which locations or country has more subscribers. By determining the most users in different countries or locations Netflix can put out their most marketing plan and that would be the best for their target market.

Psychographic: who is willing to pay more for the new service if offered? To try this out Netflix would have like a small trial for customers to try out the new service and if they like it then Netflix can charge customer an extra small fee.

Behavioral: where is Netflix in today’s market, how many people watch Netflix, and how often they watch Netflix? If Netflix put out the new service are customers willing to try it. Netflix would put out the new service in the most places where most customers watch Netflix first then on to the less watchers.

Company’s Mission

Development of new product:


  • Add New movies that are in the movie theater on the online streaming or on a DVD
  • Analysis: is adding the product to the service would it have any difference in the views or selling. How the company will benefit of putting out this new product would they sell and would they make more money or not.
  • Idea planning:
    • Team member will discuss the new product
    • How many video streaming companies have the same product

    Evaluation is from internal and external; internal would be asking employees and team work about what they think about the new product. If they think like if it is a good Idea or not. External would be customers if they would want to try this new product, have a new promotion.

    Business analysis:

    Consists of demand, project costs, and competitors. Do subscribers want to try the new product, are they going to like it or not. Cost will be to calculate how much would it cost for the company to have that new product. Do competitors offer the same idea or a similar one.


    Netflix will develop the product and try it out for their selves first then test it out with customers. Market testing:

    Make new offers and trials for customers to try out the new product and upon that Netflix will be able to see if the new product is a good idea or not.


    Netflix’s new product would save customers time and money to watch their new favorite movie anytime and anywhere with their subscription fee at no extra cost. Forget about the plenty of effort to drive to the movie theater or if you are busy and can’t go to the movie theater. Netflix would offer new movies at the comfort zone of home and no extra charge.


    Innovation Coach. (2016). Retrieved from

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    Kerin, R. A., Hartley, S. W., & Rudelius, W. (2015). Marketing (12th ed.). New York, New York: McGraw-Hill Education.

    Wang, Ucilia. “How the Netflix Model Impacts the Environment, Economy and Society.” The Guardian. Guardian News and Media, 06 Feb. 2014. Web. 29 Mar. 2016.