Transcript Final Binder v7

Nexus One Marketing Planning
May 14, 2010
Ankan Jain
James Wade
Peter You
Satya Dash
Table of content: Upfront Analysis
Product Overview
5- 7
Past Marketing Campaigns
What Worked &
What Didn’t
42 – 45
Industry Analysis
8 – 20
Marketing Research
46 – 53
Competitive Analysis
21 – 26
Perceptual Maps
54 – 57
Smartest/Dumbest
Competitive Tactics
27 - 41
SWOT Analysis
58 - 78
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Table of content: Marketing Plan
Brand Positioning
Statement
80- 85
Consumer Promotions
129- 131
Sources of Volume
86 – 91
Public Relations
132 – 133
Product Line Identification
92 – 93
Special Events/
Experiential Marketing
134 – 135
Geography
94 - 95
Marketing Research Plan
136 - 137
Seasonality
96– 97
Marketing Metrics
138 – 140
Media
98 - 128
Risks and Hedges
141 – 142
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PART 1: UPFRONT ANALYSIS
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PRODUCT OVERVIEW
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Nexus One
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Specification
Powered by Android
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INDUSTRY ANALYSIS
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Millions of phones sold
Market for new Smartphone
Mobile Phone & SmartPhone Market in U.S.
eMarketer – SmartPhone sales in North America 2008-2012
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M-commerce market in $ billions
M-commerce Market in U.S.
eMarketer – US Mobile Advertising and E-Commerce Revenues
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3rd Party Apps Take Over
Business & consumer mobile applications pending
Worldwide, 2009 – 2010 (billions)
 Since launch of iTunes App
Store, 3rd party applications have
skyrocketed in popularity
 Creates additional revenue
stream for app developers and
OS developers
 VoIP apps threaten to disrupt
market structure by competing
with carriers
Source: eMarketer 2009 report
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Top Five Mobile Content and Services
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Trend – Switch from Feature Phones to Smartphones
 Since launch of iPhone in 2007,
consumers are increasingly
moving from feature phones to
Smartphones
 Shipments of Smartphones are
projected to exceed feature
phones in 2012
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Smartphone Industry Trends
Switch from feature phones
to Smartphones
Skyrocketing popularity of 3rd
party apps
Fierce competition at all
levels of industry
Shift from business to
personal and mixed use
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Trend – Shift from Business to Personal Use
● Smartphones were originally used
mostly for business applications
such as constant e-mail access
● Since launch of iPhone and iTunes
App Store, biggest growth has
been in phones for personal use
● Many consumers use Smartphones
for both business and personal use
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Trend – Ferocious Competition and Innovation
● Just since February 2010, handset and OS makers have announced the
following new products:
● Palm Pre Plus and Pixi Plus
●Can create mini-hotspots to connect other WiFi devices to 3G
● Microsoft Windows Phone 7 Series
●Completely redeveloped OS from Microsoft
● HTC Evo 4G
●4.3” screen
●Wi-Max 4G service
●8 MP camera
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Trends - Social Media Makes SmartPhone a Necessity
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Communication Industry Market Structure
Communication
Wireless
Wired
Television
Paging
Cellular
PCS - Personal
Communication
Fox, CNBC, CNN
Internet
Comcast, Time Warner
Phone
Wireless
Phone
VOIP
Tablet PCs/
eReaders
iPhone, Droid,
Palm, LG,
Samsung, Google
Vonage, Comcast,
Skype, Cox
iPad, Kindle, Nook
AT&T, MCI
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Wireless Digital Convergence
Internet
Phone
Book
Reader
TV
Games
VOIP
Music
Chat
Movies
Email
Technology is breaking down industry walls. The convergence is creating brand new opportunities.
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Market Structure – Eco System
Operating System
Apple, RIM, Google, MS, Palm, Nokia
Handset Makers
Apple, RIM, HTC, Samsung, LG, Palm, Nokia,
Motorola
Carriers
Verizon, AT&T, T-Mobile, Sprint
Retailers
One firm may
be all 3 or any
combination
Carrier Stores, Web sites, Best Buy, WalMart
Consumers
3rd Party
Accessory Makers
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3rd Party
App Developers
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COMPETITIVE ANALYSIS
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Competition
Leader
Motorola Droid
Nintendo DS
iPhone
Nokia
Blackberry
iPad
Palm
Sony camera phone
Direct
Indirect
Kindle
LG
Garmin nuvi GPS phone
Laptop connect cards
Samsung
Emerging
Other Wireless Media
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GPS/Cameras
Smart Devices
Feature Phones
Competition Impact on Business Strategy
Smart Phones
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Smart Phone Competitive Landscape
Nokia
Palm
Droid
Samsung
Business Use
Personal Use
Blackberry
iPhone
LG
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Market share of Smartphone players
Note: ages 18+; among those who own a smartphone Source: Razorfish, "FEED: Digital Brand Experience Study," Nov10, 2009
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Operating System Players
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Carriers
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SMARTEST & DUMBEST COMPETITIVE
MARKETING TACTICS
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Smartest – Apple iPhone Hype Cycle
● Months of rumors and
speculation.
● Jan 2007 – Steve Jobs
announces the iPhone.
● The hype built up even
more between Jan and Jun
2007.
● Thousands of people
waited anxiously for
iPhone premiere.
● Endless line on day of
launch – Jun 27 2007.
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Smartest – iPhone Network Externality
● iPhone has a huge positive
externality effect.
● Apple advertises that only
iPhone has 100,000+ apps.
● More buy iPhone because
of apps.
● More developers develop
apps only for iPhone.
● And more people buy
iPhone.
● Apple marketing has
expanded Smartphone
market.
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Smartest – Droid Does what iPhone doesn’t
● Droid positioned
itself directly
against iPhone.
● Advertised all its
features that
iPhone doesn’t
support.
Motorola Droid
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Dumbest – Rage? 802.1x Authentication?
● Too technical for users.
● Doesn’t explain benefits.
● No call for action.
● Not necessarily clear why
only Palm can have these
features.
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Smartest – Apple Store Invites Trial
Apple retail store. Come to shop and return to learn.
● Apple in-store trial is a
unique experience for
customers.
● Customer experience
results in repeat
customers.
● Customers drop by just to
hang out.
● Genius bar for hands-on
technical support.
● High customer satisfaction
results in very high brand
loyalty.
Got a technical question? Step up to the Genius Bar.
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Dumbest – Retail Store Invites Confusion
● General retail stores do a
poor product display.
● All phones are given equal
importance.
● Nobody answers “why this
phone”?
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Dumbest – Palm Rests on an Old Apple core
● An indirect shot at
iPhone, but doesn’t call
out why Palm Pre is more
attractive.
● Target audience is not
clear.
● No call for action.
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Dumbest – Nice colors, but why?
● Just attractive backgrounds, but doesn’t explain phone
features.
● Why this phone?
● Who is the target audience?
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Dumbest – Subtle Approach
● Droid promotions
appeared on Google
search results.
● Bad placement as it
doesn’t even say that
Droid is a phone.
● No targeted message.
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Smart – Free Publicity
● Blackberry built free
publicity out of President
Obama’s passion for
Blackberry.
● The messaging is clean
and powerful.
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Not-so-smart – Why Palm?
● Doesn’t explain why you
could organize your life
only with Palm.
● Doesn’t call out Palm’s
features.
● No targeted message.
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Not-so-smart – Is it a phone advertisement?
● Cingular, Windows
Mobile and Phone have
same visual importance.
● Phone features are not
highlighted anywhere.
● The spokesperson
doesn’t even use phone
in the picture.
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Not-so-smart – Can you even see it?
Nobody can notice the tiny Palm Pre logo at above 200mph speed.
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Not-so-smart – Shoe or Blackberry ad?
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WHAT WORKED & WHAT DIDN’T
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What has worked for Nexus so far?
● Google BRAND.
● Partnership with T-Mobile.
Those who prefer T-mobile
carrier now have a better
phone choice.
● Effective online
advertisements.
http://www.youtube.com/watch?v=I6COwgigJ-g
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What has not worked so well?
● Is sold ONLY on Google
website.
● Carriers rejected such
partnership. Verizon and
Sprint didn’t want to offer
Nexus phone.
● No mainstream
advertisement
● Conflicts-of-interest with
open source Android
platform development.
● Very low product recognition
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Nexus One Sales Flop
 Nexus One receives excellent reviews in most publications
 Analysts report very low sales in comparison to iPhone and to another Android-based
phone – Motorola Droid
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MARKETING RESEARCH RESULTS
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Mobile phones used today
● Kinds of phone used today
● 100% of people use a cell phone.
● 30% of people use a land line
● 19% of people use Skype phone
● Kind of cell phone used
● 94% of people use a cell phone with advanced features: text, camera, internet
and video
● 6% of people use a cell phone without advanced features.
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Google features being used by People
% of People Using Google Features
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Search
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Google Mail
Google Office
Google Maps
Picasa
Other
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Willingness to pay for Dream Phone
Willingness to pay for Dream Phone
40%
35%
30%
25%
20%
15%
10%
5%
0%
Zero
$1 - $100
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$101 - $200
$201 - $300
$301 - $400
More than $400
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Insights from Market Research
● 78% of people would like to test drive a phone in the store before buying it.
● 64% of people would like to pay subsidized price for their phone instead of
full price.
●51% of people have never heard of Nexus One smart phone
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Wordle – iPhone
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Wordle - Blackberry
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Wordle - Google
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PERCEPTUAL MAPS
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GPS Navigation versus Camera
Voice Activated GPS Navigation
Droid
2 Mega Pixel +
No Flash
Blackberry
Nexus One
5 Mega Pixel +
Flash
iPhone
Palm Pre
Maps
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Internet Experience versus Search Capabilities
Search Capabilities (Voice + Camera)
Droid Nexus One
Mobile
Browser
Full Internet
Experience
Blackberry
Palm Pre
iPhone
Basic Search Capabilities
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Price versus Number of Google Services (integrated)
Nexus One
iPhone
Blackberry
Qui ck Ti me™and a
decompre ss or
are needed to s ee th i s pi c tu re.
Droid
Quick Time™and a
decompre ss or
are needed to s ee th is pic tu re.
Qui ck Ti me™and a
decompre ss or
are needed to s ee th i s pi c tu re.
Palm Pre
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SWOT ANALYSIS
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Strengths
● Google recognition and dominance in internet searches
● iPhone / Android Gaining Mobile Internet Usage Share - Symbian (Nokia) +
RIM + Windows Mobile Losing Share
● Processor speed (1 GHz)
● Available on multiple mobile carrier networks
● 7 Hr Battery life
● Camera resolution (5 MP)
● Expandable Memory
● Open-Source Smartphone Platform-of- Choice
● Most robust open-source alternative to iPhone platform with incentivized partners
● Free software for device manufacturers / carriers
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Strengths (continued)
● Second Most Vibrant Developer Community
● 10K+ apps in Android Market, second only to iPhone App Store
● Least restrictive application approval policies + flexible revenue sharing with carriers
● Easy alternative
● Potential Scalability from Beyond Smartphones
● iTunes App Store benefitted tremendously from iTouch users; Android is making
inroads on media devices
● Storage: 4 Gb
● Standby time: 250 Hrs
● Multitasking
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Strengths (continued)
Source: JP Morgan
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Strengths (continued)
Source: JP Morgan
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Weaknesses
● New entrant into mobile phone industry
● Sub-Optimal User Experience
● Device manufacturers complain about Google’s lack of technical support when it
comes to developing new Android Smartphones
● Pricing
– iPhone available for $99
● Market share
● Fewer applications
● Fewer accessories
● No physical keyboard
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Opportunities
● Long term, Google Android’s open / free operating system (combined with
clever device manufacturers), standardization of more powerful mobile
web browsers, emerging markets competition and carrier limitations may
pose challenges to Apple’s market share upside.
● RIM may maintain enterprise lead owing to installed base, but long-term
outlook is challenged.
● RIM BlackBerry may maintain enterprise lead for foreseeable future, but long-term
outlook is challenged – consumer offerings likely to prove increasingly uncompetitive
owing to software / application disadvantages.
● Open mobile web potentially more attractive to developers / consumers –
Google / Opera leading transformation of mobile browsers into development platforms. Apple
‘walled garden’ approach somewhat constrained by Apple’s approval process + carrier
capacity.
● Highest Handset Vendor Operating Margins at High End of Market – 20%+
for Smartphones vs. 8% for Low-End Vendors
● Highest for iPhone over Motorola, Sony Erickson, Nokie, LG, Samsung and RIMM
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Opportunities (continued)
● Growing Android app marketplace
● Exclusive carrier deals could limit Apple’s market share upside – AT&T
● Insufficient battery capacity could continue to prevent effective
multitasking
● In Technology, Products with Most / Best Apps Usually Win – In Mobile,
Apple is Clear Leader and Newcomer Android Has Quickly Surpassed the
Old Guard
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Opportunities (continued)
Source: JP Morgan
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Opportunities (continued)
Source: JP Morgan
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Threats
● Network Effects
● Apple
●Near term, Apple is driving the platform change to mobile computing and leading in user
experience. Its mobile ecosystem (iPhone + iTouch + iTunes + accessories + services) market
share / impact should surprise on upside for at least the next 1-2 years.
●Revenue opportunities for developers
● Decreasing cost of manufacturing
● Other Smartphone manufacturers will experience decreased bill-of-materials
●Lower BOM (Bill-Of-Material) Costs + Prices Stimulate Smartphone Demand – iPhone 3G Price
to $99 from $199 = 89% Demand Increase
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Threats (continued)
Source: JP Morgan
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Threats (continued)
Source: JP Morgan
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Threats (continued)
Source: JP Morgan
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Threats (continued)
Source: JP Morgan
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Threats (continued)
Source: JP Morgan
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Threats (continued)
Source: JP Morgan
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Morgan Stanley iPhone Interest Survey, 11/2008 (Top 3 barriers)
● #1 Purchase Barrier = Monthly Plan Cost ($95) – 55% of interested
respondents cited service costs as reason for not purchasing
● #2 Purchase Barrier = Device Price ($199 / $299) – High iPhone price kept
53% of interested respondents from purchasing; price reduction to $100
increases unit demand 89% among respondents
● Apple has eliminated this barrier
● #3 Purchase Barrier = Carrier Exclusivity (AT&T) – 41% of interested
respondents would not purchase iPhone due to carrier exclusivity – citing
coverage / pricing issues with AT&T + switching costs from existing carriers
● Nexus One currently available on multiple networks
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Morgan Stanley iPhone Interest Survey, 11/2008 (continued)
Source: JP Morgan
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Morgan Stanley iPhone Interest Survey, 11/2008 (continued)
Source: JP Morgan
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Cycle of Successful App Marketplace
Source: JP Morgan
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PART 2: THE MARKETING PLAN
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BRAND POSITIONING
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Who are Our Users?
High
Working Moms,
Students,
Senior Citizens,
Moto Droid Users
Blackberry
Palm Pre Users
Low
Need for Smart Phone
iPhone Users
Low
High
Desire for Smart phone
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Average Google Phone User
% time spent by activity per day
iPhone user 60 mins per day
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Google Phone user 60 mins per day
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Our Primary Target
First time switcher to Smart phone
Female
Non Gen-x or Gen-Y
Need a smart phone as easy
as regular phone
Working
Income < $70,000 per annum
Needs navigation system
& camera
Uses phone less for music and games
Estimated market size for this segment in 2011 is 165mn.
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The Frame
•Target Audience: Men & women between ages of 35 and 64,
who are first time smart phone users, are relatively less wealthy
and need the benefits of a smart phone at an affordable price.
•Frame of reference: Other smart phones in market.
•Point of difference: Integrated voice search, navigation system,
5 MP camera and other Google applications at an affordable
price.
•End Benefit: Can replace camera and GPS and convenience of
all Google applications in one device.
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Brand Positioning Statement
FOR first-time smart phone users
Google Phone IS A web phone
WHICH PROVIDES
all that you care about – camera, navigation, voice
search, internet, email, chat and book reading in one
device at a price of regular phone.
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SOURCES OF VOLUME
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Google Mobile Revenue Forecast
Number of Units (in millions)
Percent Increase YOY
Google Nexus One Market Share
Google Nexus One Units (in millions)
Google Nexus One Revenue
Revenue Business Apps
Revenue Consumer Apps
Total Apps Revenue
Android App Market Percent Increase
Android Market App Revenue
Total Revenue (in Millions USD)
Smart Phones in North America
2008
2009
25.8
32.5
26.00%
0.00%
0.00%
0
0
$0
$1,660
$1,110
$2,770
$12
$12
2010
41.9
28.90%
2.00%
0.838
$452
$2,960
$2,070
$5,030
2.00%
$100.60
$552
2011
54.9
31.00%
10.00%
5.49
$2,959
$5,130
$3,360
$8,490
5.00%
$424.50
$3,384
2012
67.3
22.60%
15.00%
10.095
$5,441
$7,540
$5,630
$13,170
10.00%
$1,317.00
$6,758
Source: eMarketer
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Google Mobile Revenue Forecast
Google Mobile Revneue
Revenue (in Million USD)
6000
$5,441
5000
4000
$2,959
3000
2000
1,317
1000
$452
$0
12
425
101
0
2008
2009
Google Nexus One Revenue
2010
Year
2011
2012
Android Market App Revenue
Source: eMarketer
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Google Nexus One Revenue Forecast Breakdown
2011
Buyer Breakdown
%
No Phone
Feature Phone Converts
Smartphone Switchers
iPhone
RIM
Palm
Other
Android
p
2012
1%
79%
20%
5%
9%
1%
3%
2%
Revenue
%
$54,900
$4,337,100
$1,098,000
$274,500
$494,100
$54,900
$164,700
$109,800
1%
84%
15%
4%
7%
1%
2%
1%
Revenue
$101,000
$8,484,000
$1,515,000
$404,000
$707,000
$101,000
$202,000
$101,000
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Google Nexus One Revenue Forecast Breakdown
Point of Sale
Online
T-Mobile Store
Other Store
Other
p
%
2011
Revenue
%
60%
$3,294,000
10%
$549,000
30%
$1,647,000
0%
$0
2012
Revenue
65%
$6,565,000
10%
$1,010,000
25%
$2,525,000
0%
$0
Page 90
Marketing Spending Split
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PRODUCT LINE IDENTIFICATION
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Product Line Identification
In the first year, there will be only model. However
subsequently we will expand to 4G and other models.
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GEOGRAPHY
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Verizon wireless coverage
● Given iPhone’s exclusive relationship with AT&T, we
recommend Google to forge partnership with Verizon.
● Google phone can be sold where-ever Verizon has
network coverage.
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SEASONALITY
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Seasonality – Fall & Winter Dominate
• Smartphone sales see steady baseline demand throughout the year
with heavy spikes in the Fall Back-to-School period and at the end of
year holidays
• Demand is weakest just after the holiday period
Sales as a % of Annual Total
J
F
M
10%
A
M
J
J
A
S
O
N
D
5%
5%
10%
10%
15%
15%
5%
5%
20%
First Half: 30%
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Back to School: 40%
Holidays: 30%
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MEDIA
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Key Marketing Efforts
Raise
Awareness
Induce
Trial
Remove Barriers to
Purchase
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Raising Awareness - Branding
 Raise Awareness & Leverage Google Brand
 Google has one of the most widely recognized brand names in
existence
 “Google” brand has very positive connotations with innovation,
search and convenience
 Google products have recognizable naming scheme
 Rename nexus one to leverage these strengths:
phone
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Raising Awareness – Digital Advertising
• Digital Advertising is currently Google’s sole promotional method
• Current digital ads are well done
• Show benefits and features with little superfluous information
• Banner ads appear on many tech-oriented websites
• Ads are not strongly targeted to any demographic
• Digital Advertising will not be significantly altered
• Provides baseline awareness and information across all target
demographics
• www.google.com/phone will be referenced in all visual adsCC
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Raising Awareness – Digital Advertising Example
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Raising Awareness – Digital Advertising YouTube
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Raising Awareness – National Television
• Begin national television advertising campaign
• Ads based off of Google’s existing web-only video ads
• Keeps development costs low and spending focused on ad
placement
• Ads are not narrowly focused at any single target market
• Provide baseline awareness across demographics
• Placement biased towards programs popular with working moms
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Raising Awareness – National Print
• Begin national print advertising campaign
• Ads focused on simple explanations of benefits, especially 3rd
party apps
• Ads show integration of Google services including search, Gmail,
navigation and photo sharing
• More demographically targeted than national TV ads
• Placement biased towards publications popular with working moms
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Raising Awareness – Example Print Ad
Shopping
available at
Stop by the Nexus One kiosk
to borrow a unit for in-store
shopping
Your Life
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Raising Awareness – Regional Television
• Begin regional television advertising campaign
• Newly developed ads used to tell a story showing the benefits of
Google Phone in real world use
• Narrowly focused on working moms using a smartphone for the
first time
• Delivers the message that the Google Phone helps make your life
less hectic in every facet
• Placement in second tier cities with low CDI for smartphones but
significant coverage with Target stores
• Mostly Midwest and Southeast cities and exurbs
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Raising Awareness – TV Ad Storyboard
• Female main character uses Google Voice Navigation to find her way
to a friend’s get together
• Visual shows turn-by-turn directions with voice commands and street
view images
(continued…)
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Raising Awareness – TV Ad Storyboard
• At the address, she uses Google Goggles to see what’s inside each
building, then immediately see that business’s website
• At the store, she uses Google Shopper and the Google Phone’s 5MP
camera to find the best price on a gift for her friend
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Induce Trial – Google / Target
 Google & Target Partnership
 Complementary Brands
 Google: Innovation
 Target: Everyday Design, Value
 Complementary Assets
 Google: Exclusive Smartphone, Web Presence
 Target: Bricks & Mortar, Customers
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Induce Trial – Google / Target
Target’s Reasons for Partnership
1. Far behind Best Buy, WalMart & Amazon in consumer
electronics
2. Exclusive Google Phone
offering fits ‘cheap chic’
product strategy
3. Google co-branding adds
innovative cachet to Target
brand
AdAge.com - Walmart, Best Buy, Target, Regional Players Expand, Market Smartly
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Induce Trial – Google / Target
Google’s Reasons for Partnership
Google Phone Market
Average Target Shopper
1. Target offering provides best
Older than Gen X
42 years old
49% below $70k
$60k median income
43% have children
33% have children
36% college educated
51% college educated
chance for trial among target
market
2. Google’s single physical
product cannot sustain a
dedicated store
Apple Stores
Target Stores
3. Target geographic coverage
and siting avoids direct
confrontation with malllocated Apple Stores
Target.com Investor Relations – Summary; Google maps
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Induce Trial – Target mini-Store
 Google-branded mini-store in Target
electronics department
 Pre-configured, usable phones
 Active internet connections
 Layout similar to Apple Store
 Tables, not racks
 Discreet cables and sales staff
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Induce Trial – Target ScanIt App & Kiosk
 Target Scan-It App & In-store Kiosk
 Use Google Phone w/ pre-installed
Target App for barcode scanning
 App available separately in Android
Market
 Scan and bag as you go
 Running total and exclusive offers
while shopping
 Fast checkout
 Provides instant, detailed metrics for
both Target and Google
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Remove Barriers – T-Mobile Availability
 Bricks & Mortar Availability
 T-Mobile Stores
Functioning handsets will be available
in T-Mobile stores nationwide.
Potential customers brought in from
digital and nationwide ads can trial
the phones in any T-Mobile store.
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Remove Barriers – Lower Price
Current Nexus One Price: $179.00 w/ T-Mobile
Current price is above market
expectations. Only Apple charges
more for a smartphone and even
then only for the top 3GS model.
Refurb iPhones are available for
$50. Google cannot compete
with iPhone or even other
Android phones at current pricing.
Company
Model
Carrier
Price
Apple
iPhone 3G (s)
AT&T
$199 – 16GB
$299 – 32GB
Apple
iPhone 3G
AT&T
$99 – 8GB
RIM
Blackberry
Various
Free or up to $50
Palm
Palm Pre Plus
Verizon
$49.99
Palm
Palm Pixi Plus
Verizon
$29.99
Motorola
Droid
Verizon
$19.99
New Google Phone Price: $49.99 w/ T-Mobile
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Key Marketing Efforts - Summary
Raise
Awareness
Induce
Trial
Remove Barriers to
Purchase
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 Rename: Google Phone
 Traditional Advertising (TV & Print)
 Target mini-store
 Target ScanIt App & in-store Kiosk
 Available at Target & T-Mobile Stores
 Lower Price: $50
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Integrated Marketing Flowchart
BACK TO SCHOOL
J
Market Research
Name Change
National TV & Print
F
M
A
M
ROUND 1
J
S
O
N
D
ROUND 3
X
DEVELOPMENT
ROUND 1
ROUND 2
DEVELOPMENT
DEVELOPMENT
Target ScanIt App
Target ScanIt Kiosks
A
ROUND 2
Regional TV
Target mini-store
J
HOLIDAYS
BUILD
ROUND 1
LAUNCH
DEVELOPMENT
DEVELOPMENT
Lower Price
X
T-Mobile Availability
X
BUILD
ROUND 3
ROUND 2
MONITOR & IMPROVE
LAUNCH
MONITOR & IMPROVE
LAUNCH
MONITOR & IMPROVE
Digital Advertising
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Integrated Marketing Flowchart Budget
BACK TO SCHOOL
J
Market Research
Name Change
National TV & Print
F
M
A
$1M
M
J
J
$1M
$1M
$15M
$1M
N
$15M
D
$5M
$1M
$1M
Lower Price
N/A
T-Mobile Availability
$0.5M
$10M
$10M
$1M
Target ScanIt App
Digital Advertising
O
$1M
$2M
Target ScanIt Kiosks
S
N/A
Regional TV
Target mini-store
A
HOLIDAYS
$1M
$10M
$1M
$0.5M
N/A
$5M
$0.5M
$3M
Total Budgeted: $83.5M leaving $5.5M for contingencies
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DIGITAL MARKETING
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SEO
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Visits to company websites
Goal for Google Phone
Harness Google search engine potential to increase Google Phone brand awareness.
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Search Engine Optimization
Marketing goal for Google phone website direct hit is 20mn unique visitors by end of 2010.
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Leverage both organic and paid search positions
Free Search
Paid Search
When user is searching for phone, iPhone, droid phones, Google Phone needs to appear on first page.
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PARTNERSHIP WITH ONLINE CHANNELS
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Partner with Popular Mobile Phone Retailers
30% online shoppers shop phones on dedicated mobile phone retailer websites.
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Partner with Carrier Web sites
Sell phones on Carrier Web sites such att.com, verizon.com etc.
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Price Comparison Sites– Shopping.com
Make Google Phone appear on top on the price comparison sites.
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CONSUMER PROMOTIONS
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Promotions by Carriers
Have carriers offer promotion programs such as free phone activation.
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Retailers can pass on discounts to consumers
Most of phones on Amazon.com and other retailers sites are available for free.
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PUBLIC RELATIONS
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Public relations plan
● Facebook Page/ Twitter
● Software and app updates
● Disaster Relief
● Provide free Nexus Ones for people affected by natural disasters with
apps for documenting and submitting insurance losses as well as
updates on federal support efforts
● Promotion:
● “How do you Google Your Life?”
•Creative videos showing customers using the Nexus One
•Prizes for video with highest votes
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SPECIAL EVENTS/
EXPERIENTIAL MARKETING
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Buzz/Viral/Stealth Marketing Plan
• Video: Navigate a plane using the voice search and
satellite view navigation
• Google Goggles: Photo-to-voice “tour guides”
– A “tourist” goes around giving people information using
Google Goggles
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MARKETING RESEARCH PLAN
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Marketing Research Plan
Issues to be Researched
Costs
Timing
Target – Google relationship. Google mini
store is the creative element of our
marketing success plan. If the relationship
works, then Google mini store can be rolled
out in other popular retail stores. The
conversion rate and user experience needs
to be researched further.
Development of
survey, in store data
collection and
analysis at 50 Target
stores will cost
approx. $500k.
Needs to be done 4 times
first year to study the
improvements and
increased level of customer
satisfaction. The frequency
can be slowed down later.
Smart phone switcher expectations.
Thought we have collected data on a brand
new smart phone user, we need to dive
deep to understand user needs. It will help
us define our segment better.
50 focus group
Prior to mini store launch
research and surveys
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MARKETING METRICS
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Metrics for Overall Campaign
In order of importance…
• Unit Sales through each channel (web, T-Mobile, Target)
• Quantity and Value of app downloads to Google Phone and all
Android phones
• Hits and time spent on google.com/phone
• Nationwide product awareness before and after each round of
national print and TV advertising
• Customer visits to T-Mobile stores
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Metrics for Google / Target Partnership
In order of importance…
• Regional product awareness before and after launch of Target
partnership and related advertising
• # of Target stores participating
• Downloads and usage of ScanIt app
• Value of Target advertising featuring Google Phone
• Conversion of ScanIt Kiosk users to Google Phone purchasers
• Unit Sales through Target
• Customer traffic change in participating Target electronics
departments
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RISKS AND HEDGES
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Risks & Hedges
Risks
Hedges
Carrier Adoption
Expand subsidized availability through
other carriers
Competition - Other manufacturers
advertise heavily
Google Nexus One's overreaching creative
message utilizing the integrated marketing
plan
Product Differentiation - HTC & Android
phones
Remove HTC branding on the Nexus One;
market Google's applications with
seamless integration
Limited Technical Product support
Develop customer support line in addition
to the online option
Promotion
Increase marketing budget and utilize the
suggested integrated marketing plan
Competition - Other manufacturers
advertise Heavily
Google Nexus One's overreaching creative
message utilizing the integrated marketing
plan
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THANK YOU
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