Google Fiber Case Competition

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Transcript of Google Fiber Case Competition

  • 1

    Market Expansion Strategy

    John Koelliker, Nick Kerr, Jimmy Gillespie, David Mella, Lauren Morris

  • 2

    DAVID MELLAEconomics

    JOHN KOELLIKERInformation Systems

    NICK KERR JIMMY GILLESPIEAccounting

    LAUREN MORRISMarketingInformation Systems

    Intern with the Google Community

    Leaders Program

    Co-founder of Kore Baseball Products

    Future Uber intern

    Experience with small businesses

    such as Event and Prodigix Software

    Knowledge of networking and

    routing technologies

    Experience with technology startups

    and venture capital

    Future intern at Capital Group

    Companies

    Nationally ranked spikeball player

    Social media and marketing intern at

    a nonprofit

    Future intern at Sorenson

    Advertising

    Aspiring economist

    Experience with technology startups

    such as SHOUT

    Gameplay & SEBO

    Marketing

    MEET OUR TEAM

  • 3AGENDA

    12

    34

    5

    EXECUTIVE SUMMARY

    CASE BACKGROUND

    STRATEGY SUMMARY

    GIGABIT CLUB

    CONCLUSION

    Small Business Strategy

    Residential Strategy

    Introducing the Gb Club

    Strategy Overview

    Problem Overview

    Components of a Successful Solution

    Execution

  • 4EXECUTIVE SUMMARY

    THE PROBLEM OUR SOLUTION

    KEY FACTORS OF THE PROBLEM - Google Fiber, despite a widely known and well-liked brand image, has had trouble converting Provo customers from the free version of Google Fiber to the paid, Gigabit-speed tiers. Weve identified three main factors that contribute to this problem: (1) a lack of awareness of the different tiers that Google Fiber offers, (2) low rates of customers who have actually experienced Gigabit speeds and who would know what that means for them, and (3) a low perceived value of the product when compared to the price or competing options.

    COMPONENTS OF A SUCCESSFUL SOLUTION - Any successful solution should directly address the three key factors mentioned above. In addition, a successful solution should also have the following qualities: (1) Delight the customer and go above and beyond their expectations; (2) Maintain the integrity of Googles brand; (3) Scale to other communities and markets; and (4) Put the needs of the customer first. These components will ensure that Google Fiber not only increases its revenue in the short run, but also creates a sustainable business model that will continue to grow for years to come.

    STRATEGY OVERVIEW - Our strategy is built on the foundation of resolving the three key factors of Googles problem: low awareness, lack of experience, and insufficient perceived value. Our strategy will take a customized approach to two main market segments, which are small businesses and residential customers. Introducing: The Gigabit Club.

    GIGABIT CLUB FOR SMALL BUSINESSES - The Gigabit Club seeks to provide enormous value for small businesses while simultaneously improving awareness of Google Fibers paid tiers. Small business will be provided with Gigabit internet speed and high-speed AC routers to provide an excellent experience to their clients who take advantage of their free wireless internet. Gigabit Club mentors will assist small business owners an getting the most out of their high-speed internet.

    GIGABIT CLUB FOR RESIDENTS - The initiative to provide Gigabit speeds to popular small businesses will stimulate growth in the residential market. Residents, having tried the higher speeds, will want to bring that experience to their homes. The Gigabit Club for residents will include benefits that will encourage both customer adoption and customer retention.

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    CASE BACKGROUND

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    Google announces that it will pick a community to install a fiber optic network--making it the first Gigabit Community.

    GIGABIT COMMUNITIES

    The city of Provo and Google strike a deal. iProvo is purchased for $1 on one condition--that every resident in Provo have access to a free version of Google Fiber

    PROVO - THE NEXT GIGABIT CITY

    Google announces a small business package for Google Fiber; expansion announced in SLC.

    SMALL BUSINESS PRODUCT LAUNCH

    Provo residents get the opportunity to have a team install Google Fiber in their homes for a small installation fee.

    SIGNUPS OPEN FOR PROVO RESIDENTS

    BE THE BEST MARKETING COMPANY

    A BRIEF HISTORY: GOOGLE FIBER AND PROVO

    2010

    2013

    2014

    2015

    Mayor of Provo announces the arrival of Google Fiber.

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    THEPROBLEM:

    8/10 people have never experienced Gigabit speeds for themselves, and have no idea what it

    would actually mean for them

    Awareness

    53% of people surveyed are unaware that a paid option exists, or that their free tier offers only a limited sample of Google Fibers full potential

    Experience

    For the customer, the perceived cost of upgrading to Gigabit speeds are greater than the perceived value of the upgrade. On average, consumers are only willing

    to pay $26 for Gigabit speeds as they understand them.

    Perceived Value

    THE PROBLEM: KEY FACTORS

    Many customers are satisfied with the limited bandwidth of the free

    plan, and feel no need to upgrade to the higher-speed, paid plan

  • 8THE PROBLEM: AWARENESS AND EXPERIENCE

    EXPERIENCE

    Most customers have never experienced true Gigabit internet

    speeds, and do not know what these speeds mean in the real world

    Many customers who have experimented with Gigabit Google Fiber

    may have experienced suboptimal speeds due to poor router

    placement, old technology (e.g., not 802.11ac/n enabled), and other

    factors

    This suboptimal experience--or lack of any experience thereof--gives

    many customers pause when deciding whether to switch to the paid

    tiers of Google Fiber

    Awareness

    The first stage of customer adoption for any innovative product is

    product awareness

    Many customers in Provo are aware of the general existence of

    Google Fiber, but may be unaware that there is a paid option that

    offers up to 200x the speed of the free version

    Googles marketing tactics have been very conservative up to this

    point; this has protected the brand image, but it may also contribute

    to the lack of awareness some customers experience

    Experience

  • 9THE PROBLEM: PERCEIVED VALUE

    What influences customer

    purchasing decisions

    At the root of Google Fibers problem is the perceived value

    of its product for consumers in Provo. Though Google Fiber

    has a very positive and strong brand image, the possibility of

    Gigabit speeds remains an abstract concept for many

    consumers. This alone does not provide enough perceived

    value to offset the $70- or $130-per-month cost.

    Maximizing the value-add

    Brand/Image

    Cost

    Product Value

    Actual Value

    Perceived Value

    *This diagram shows the framework we used to brainstorm ideas and ultimately select our strategy.

    We selected a strategy that addresses all areas of this framework, especially the weakest area--

    perceived value.

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    DELIGHT THE CUSTOMER - For Google Fibers long-term success, customers who make

    the switch cant be merely satisfied--they must be delighted. The solution must ensure that

    each customer derives the maximum value from their purchase.

    1

    MAINTAIN BRAND INTEGRITY - Google has always had the intangible Googliness that makes their brand so cool, so well-respected. Whatever the solution, it cant compromise the

    overall integrity of the Google brand.

    2

    HIGH SCALABILITY - Every location is unique in terms of market segmentation and diversity; however, the best solution will work across all locations and across all markets.3

    PUT THE USER FIRST - Along with delighting the customer with its product, Google must ensure that its entire value package is in the customers best interest. A successful solution

    will avoid any predatory or shady tactics used by the other guys.

    4

    Awareness

    Experience

    Perceived Value

    Success:

    COMPONENTS OF A SUCCESSFUL SOLUTION

    In addition to resolving the key issues of low product awareness, lack of experience, and insufficient perceived value, a successful solution must also incorporate the following four Google priorities:

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    STRATEGY SUMMARY

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    SMALL BUSINESS RESIDENTIAL

    VALUEAWARENESS EXPERIENCE

    STRATEGY OVERVIEW

    STRATEGY FOUNDATION - The overall goal of our strategy is to increase

    customer awareness, enhance the perceived value of the product, and improve

    the overall product experience. This is the foundation of our strategy.

    1

    SMALL BUSINESS - Small businesses will be crucial to the success of our strategy, as they will create brand awareness while also providing an environment

    for Provo residents to experience Gb speed internet.

    2

    RESIDENTIAL - As Provo residents become more aware of Gb speed internet and are able to demo these faster speeds, they will be more likely to 3

    GIGABIT CLUB - Our strategy of targeting small businesses and residents will be accomplished through the Gigabit Club - an innovative, inclusive and impactful

    way of experiencing Gb speed internet at an affordable price

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  • 13THE GIGABIT CLUB

    A marketing initiative to provide a sense of community for small businesses and residents that want to enjoy gigabit-speed internet and additional benefits.

    Impactful.Creates a social wave that will benefit Google Fiber, s