Google Fiber Case Competition
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Transcript of Google Fiber Case Competition
Market Expansion Strategy
John Koelliker, Nick Kerr, Jimmy Gillespie, David Mella, Lauren Morris
JOHN KOELLIKERInformation Systems
NICK KERR JIMMY GILLESPIEAccounting
LAUREN MORRISMarketingInformation Systems
Intern with the Google Community
Co-founder of Kore Baseball Products
Future Uber intern
Experience with small businesses
such as Event and Prodigix Software
Knowledge of networking and
Experience with technology startups
and venture capital
Future intern at Capital Group
Nationally ranked spikeball player
Social media and marketing intern at
Future intern at Sorenson
Experience with technology startups
such as SHOUT
Gameplay & SEBO
MEET OUR TEAM
Small Business Strategy
Introducing the Gb Club
Components of a Successful Solution
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.
Google announces that it will pick a community to install a fiber optic network--making it the first Gigabit Community.
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
Mayor of Provo announces the arrival of Google Fiber.
8/10 people have never experienced Gigabit speeds for themselves, and have no idea what it
would actually mean for them
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
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.
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
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
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
The first stage of customer adoption for any innovative product is
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
9THE PROBLEM: PERCEIVED VALUE
What influences customer
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
*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--
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.
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.
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.
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:
SMALL BUSINESS RESIDENTIAL
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.
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.
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
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