A Marketing Plan for Showstop

The current society has advanced past the need to purchase movies and TV shows in the form of DVDs. Today, access to high-speed internet and smart devices such as smart TVs and smartphones, have enabled people to watch films at their convenience. Besides, these devices have enhanced the creativity of filmmakers and directors who may not have the budget to create the “Hollywood” films. Showstop is a platform where the creatives will meet and share ideas before making movies and shows. This strategy prevents incidences of copyright infringement, impersonation, and deceptive practices. Under Showstop, the directors and producers will create and upload movies and TV shows to the site’s server provided they do not violate the company’s community guidelines and policies. Showstop’s customers will enjoy an unlimited variety of latest movies and shows created by producers from their regions. They will have the option of selecting different genres based on their tastes and preferences. Besides, these movies and films will be available at an affordable price; they can also download and watch them while offline. 

Mission Statement: We promise to offer high-quality services to our customers, work closely with suppliers, realize value for the investors through sustainable growth, and treat employees with equity and fairness 

Vision Statement: To become the best entertainment distribution service in the world 

Products and Services: movies, TV shows, and documentaries 

Situation Analysis 

Showstop is an online streaming service that provides customers with high-quality movies, shows, and documentaries. It will target customers from different regions, including Europe, Asia, the North, and South America, and Africa. Showstop’s target audience comprises viewers between 18 and 34 years old. Once they have created an account, they can access Showstop’s services from up to 10 devices. Besides, Showstop will have basic and premium plans charging at $7.5 and $15 per month, respectively. 

Market Analysis 

Showstop will compete with established brands such as Netflix, Hulu, and Amazon Prime. In 2019, market analysts noted that the value of the global video streaming services was $42.60 billion, and they expect a compound annual growth of 20.4% in 2020 (Report Overview, n.d.). This growth will further be boosted by innovations such as Artificial Intelligence (AI) and the blockchain technology, which have enhanced the video quality of movies and shows. For instance, AI has enhanced elements of video production and uploading, including cinematography, scriptwriting, and editing (Report Overview, n.d.). As a result, the popularity of platforms such as Netflix and YouTube has significantly increased. This growth presents an opportunity for Showstop to enter the streaming market. This company will take advantage of the growing popularity of social media sites to brand and market its products and, thus, fuel the growth. In the first year, Showstop expects an annual market growth of 6% due to the high demand for video content in North America and Europe (Report Overview, n.d.). This growth will be further be fueled by the COVID-19, which has forced a significant percentage of the world’s population to stay at home. People will be looking for affordable online streaming and entertainment services. The tables below will present the market segments by age and consumer behavior. 

Table 1: Market Segments by Age 

From the figure above, the highest consumption of Showstop will be among the individuals who are between 25 and 34 years. This population has a stable income, and they can purchase smart devices and pay for Showstop services. Besides, most of them are located in urban centers and enjoy using modern technologies. The least consumption is among the people aged above 35 years since the majority of them do not fancy online streaming services. Part of this generation prefers the traditional methods of watching movies. However, some of them are willing to adapt to modern technologies, and others have family members who enjoy online streaming services. The potential customers aged between 18 and 24 years are expected to be the highest consumers of Showstop services since they enjoy the latest technologies, especially video streaming services and social media apps. However, their consumption level is low due to low-income and dependence on their parents for financial support. Regardless, Showstop will advertise to this group. 

Table 2: Consumer Behavior 

From the table above, the highest consumers of Showstop will come from North America and Asia. These regions consist of individuals with stable incomes and access to modern technologies. Currently, North America holds the largest revenue share due to the growth in cloud-based streaming services (Report Overview, n.d.). Hence, penetrating this market would be possible. Asia is also another notable region with increased demand for video streaming services due to the increased use of smartphones and tablets as well as technological advancements. Potential customers are turning to video streaming services since they are assured of privacy, entertainment, and ease of use (Fernandez-Robin et al., 2019). With the growth of broadband internet connection in homes, the demand for Showstop services will increase even in regions such as Africa. 

Competitive Analysis 

Currently, the video streaming services industry is highly competitive due to the presence of established brands. The following table will present the SWOT analysis for Showstop. 

Table 3: SWOT Analysis of Showstop 

Objectives 

To increase the annual market share by 6% 

To break even by 2021 

Marketing Strategy 

Showstop is introducing video streaming services, and it will use methods such as penetration pricing, extensive advertising, and unique distribution to facilitate growth rate and realize increased revenues. 

Product 

Showstop will indulge the customers in registering and paying to watch documentaries, docuseries, TV shows, and movies. Besides, there will be no advertisements while the customers are watching their favorite shows. Customers will enjoy two months free trial period and later pay for the plan of their choosing; they can cancel the subscription anytime. There will be basic and premium plans that will contain HD videos. However, the later will allow customers to fast forward and select movies from regions outside their locations. 

Price 

Showstop will provide the customers with two months trial period so that they can have an overview of the premium plan. After this period is over, they will be charged $7.5 and $12 for the basic and premium plans. These prices are pocket friendly and are likely to attract more customers, especially the ones from the developing nations. 

Place and Distribution 

Customers will enjoy Showstop services from any place provided that they have a stable internet connection. They can use smartphones, smart TVs, and tablets to watch movies and shows. 

Promotion and Advertising 

Showstop will take advantage of the social media platform to market its products. The primary platforms will be TikTok, Instagram, Snapchat, YouTube, and Twitter since these sites are filled with people aged between 18 and 34 years. Potential customers on these apps will watch the preview of their favorite movies and shows. Showstop will invest $5.6 million in social media advertising in the first year. 

Table 4: Social media marketing 

Buyer Persona 

The target audience will be people aged between 18 and 34. Mostly, women will be the target audience since they are the most active social media users (Fernandez-Robin et al., 2019). Hence, the social media advertising will be customized to preview movie genres such as comedy, romance, and drama. 

Profile 

Values: Social bond and connection, entertainment, long-term dating 

Problems: Busy work schedules, have a hard time interacting with friends and peers, tired of the traditional models of watching movies such as DVDs 

Interests: Dating sites and services, social issues, current events, browsing social media sites 

Development Schedule 

The first two months will be used to design the physical location, hire employees, establish supplier relationships, and obtain a video streaming license. For Showstop to break even, it will need to make at least $60000 a month in revenue. During the third month, there will be a grand opening. Admittedly, the business will be slow during the first two months and hence, the need to assign each employee to a marketing scheme. 

Table 5: Marketing budget for Showstop 

Key Performance Indicators 

Brand Mentions 

Most celebrities have an influence on social media sites, which can translate to user engagement and later product purchases. Thus, a mention and recognition from celebrities with a large following can trigger increased traffic onto Showstop’s platform. Take, for example, Birdbox film on Netflix that attracted the attention of celebrities such as Kim Kardashian West and Christine Teigen who tweeted about it and later it became a leading and trending movie (Beer, 2019). If more people mention the shows and movies from Showstop, then it is likely that it results in user engagement and return on investment. Another indicator can be trending topics. The employees will check if any of the shows or movies from Showstop can trend on social media sites such as Twitter and Instagram. Such user engagement can create social media challenges that can turn into return on investment. 

Email Traffic 

The engagement between the employees and the customers through emails will indicate the potential return on investment. One of the items measured will be the traffic statistics that will highlight the number of clicks in the emails, and the customers who are replying to prompts in their emails. Later, the employees will check the conversion rates by analyzing the number of mails used to access and register accounts on the company’s site. 

Referral Traffic 

Another control measure is the number of customers recommending their friends, peers, and colleagues to open Showstop accounts. Upon registering, the customers will be sent referral links on their emails upon which they will be promised a free monthly subscription if the person they have sent the link to open an account. If there is an increase in the referral traffic, then it means that the marketing strategy is effective. 

Organic Traffic 

In the first six months, the employees in the IT department will check the traffic on the company’s website and mobile application. It will involve checking the number of downloads on the App Store and Google Playstore. If there is an increase in downloads along with positive reviews, then it means that the company has reached out to the target market. Another approach will involve checking the number of clicks on the company’s website. Mainly, the IT experts will investigate the number of clicks that resulted in account creation. 

References 

Beer, J. (2019 February 28). Inside the secretly effective—and underrated—way Netflix keeps its shows and movies at the forefront of pop culture . Fast Company. https://www.fastcompany.com/90309308/by-any-memes-necessary-inside-netflixs-winning-social-media-strategy 

Fernández-Robin, C., McCoy, S., Yáñez, D., & Hernández-Sarpi, R. (2019, July). Netflix, who is watching now? In International Conference on Human-Computer Interaction (pp. 202-216). Springer, Cham. https://link.springer.com/chapter/10.1007/978-3-030-21902-4_15 

Report overview . (n.d.). Grand View Research. https://www.grandviewresearch.com/industry-analysis/video-streaming-market 

Rivera, A. (2019 November 10). Netflix SWOT analysis (internal & external strategic factors). Rancord Society. https://www.rancord.org/netflix-swot-analysis-internal-external-strategic-factors