google nexus 7 tablet case - an e-marketing perspective
DESCRIPTION
A case project and analysis of marketing efforts for Google Nexus 7 Tablet and competitor offerings.TRANSCRIPT
Presented by: Group 2Kitty Chan, Amanda Chou, Linda Danskanen, Julien Delmas, Claire Salfrant, Marie-Sib Feyens& Aaron Wang
& the Nexus 7 Tablet
An “E-Marketing” Perspective
Agenda
1. Google • Background• Products & Services• BCG Growth Matrix• SWOT Analysis
2. Product Positioning & Differentiation
• Google Nexus 7• Samsung Note 8• Apple iPad
3. Recommendations
Google Background
• Founded by Larry Page and Sergey Brin in 1998
• The name—a play on the word "googol"
• A global technology company that offers search, advertising, operating systems and platforms, enterprise and hardware products
• Operates in the US, the UK and in several other countries across the world
• Headquartered in Mountain View, California and employed 53,861 people as of December 31, 2012.
Google Key Statistics
• Most revenue generated by search engine
• Amount of monthly Google searches: 12.477 billion (10/16/2013)
• Google’s share of the U.S. search market: 66.9%
• Google’s share of global digital ad revenue: 33.24%
Google Key Statistics
• Number of Android devices: 1 billion (9/3/13)
• Android share of mobile devices: 51.8% (9/6/13)
• Android share of global smartphone shipments: 81.3% (10/31/13)
• Q4 2014
• Revenue was $16.86 billion, +17% compared with a year ago
• Profit was $3.4 billion, +17% compared with a year ago
• Number of paid clicks for Google ads +31% from the year before
Case Details
• Focuses on Google’s mobile wireless devices, specifically the Nexus 7 tablet
• 1. Learn more about Google and its products/services and create a BCG growth-share matrix for this company. On which products and services should Google concentrate its marketing efforts ?
• 2. How is Google positioning the Nexus 7 tablet? Does this product offer significant differentiation from competing offerings so that consumers will perceive it to have higher value?
Google’s Products/Services
• In the case, some Google’s products are mentioned :
Nexus 7
Nexus Q
Google Glass
Google’s Products/Services
SEARCH ADVERTISING OPERATING SYSTEM & PLATFORMS HARDWARE
Google.com
Google Image
Google Books
Google Now
Google Knowledge
AdWork
AdSense
DoubleClick
Android
YouTube
Gmail
Google +, Maps, Docs, Earth, Desktop, TV, Mars
Google Chrome
Tablet
Wireless devices
Smartphone
Laptop
GoogleCar
Google’s BCG Matrix
Google SWOT Analysis
STRENGTHS• Leader in internet search engine (PageRank)• Market shares of 88%• Brand• Android’s success• Increasing cash flow operations• Good financial situation• Diversified products/services
WEAKNESSES• Very dependent on income from advertising –risky• Lack of integration with its other products compared to
Yahoo ( competitive disadvantage)• Weaker strategy in social media advertising space
OPPORTUNITIES• Growing Smartphone and Tablet market• Mobile advertisement estimated to rise • Positive outlook for global online video market• More people use the internet
THREATS• Strong competition (especially on phone and tablet market)• Very dependent on income from advertising –risky• Recession• Social Media• European commission antitrust investigations• PRISM electronic surveillance program
Product Positioning & Differentiation
Competition in the Tablet Market
• Apple, Sony, Samsung, Asus, Acer, Dell, HP, Microsoft, Lenovo, Google, Amazon, Barnes & Noble etc. have all developed at least one tablet
• Industry approaching over-saturation
• Approximately 140 million tablets have been sold
• 4 companies dominate the tablet market
• Expand market with tablet hybrids
Price Quality Comparison
Nexus 7 Tablet
Made for what matters
Google Nexus 7 Features
FEATURES GOOGLE NEXUS 7SD CARD NoINTERNAL MEMORY 16GB or 32 GBOPERATING SYSTEM (OS)
Android 4.4 KitKat
PRICENT$ 7,000 – 10,000
MATERIAL PlasticBATTERY LIFE 9h
CAMERA
5MP (Back)1.2 Megapixels (Front Facing)
CELLULAR VERSION YesWEIGHT 290g
Strengths+ 1080p display+ Wireless charging+ Improved performance
Weaknesses- Shorter battery life span than 1st generation- Limited space
https://www.youtube.com/watch?v=5LysTmwDan8
Google Nexus 7 Positioning
• Target Market: all ages
• High-end device with low-end price
• “Powerful, portable and made for what matters to you”
• “Everything you care about, everywhere you go”
According to some N7 student users:
•Great for carrying around books, documents and lectures in PDF/Powerpoint files, and reading them on the train, metro, everywhere
•Dropbox works fine online and offline
•Useless at taking notes (too small, not good for typing) and everything else
•Can slightly edit files and draw simple diagrams, etc.
•Used more to communicate (email, hangouts, Skype) and web browsing, Youtube, etc.
Competitor:Samsung
Note 8 Tablet
Samsung Galaxy tablets Features
•A4 format for working and reading
•Offline office
•S pen: productivity
•Multi Window: working
•Films, games and books
•Micro SD card + 2 years free 50 GB dropbox
Nexus 7 vs. Note 8
FEATURES GOOGLE NEXUS 7 SAMSUNG NOTE 8
PRICE $229-$349 $329NOTE TAKING typing S pen!
READING: SCREEN SIZE AND RESOLUTION
7”, actually smaller1920x1200 pixels
8”1280x800 pixels
BATTERY LIFE 9-10 hours up to14 hoursMEMORY 2GB, 16/32GB 2GB, 16/32GBPROCESSING SPEED faster slower
ADDITIONAL FEATURESconnects to other Google services
Reading mode, S note
Call function, Micro SD
Competitor:Apple
iPad 4 & iPad Mini Tablets
Apple iPad Features
FEATURESAPPLE IPAD 4
RETINA
USB CONNECTION NoSD CARD No
INTERNAL MEMORY 16 GB
OPERATING SYSTEM (OS) iOS
INTRODUCTORY PRICE NT$ 15,900
MATERIAL AluminumBATTERY LIFE 10h
CAMERA 5 Megapixels
Strengths+ Retina screen+ iOS 7 + Autonomy
Weaknesses- No memory expansion- Price
Apple iPad Positioning
1.Puts customers first
2.Impeccable design
3.Good promotional material
- Newsletter
4.Doesn’t deliver too often
- Usually updates just once a year
5.Only two categories : iPad or iPad Mini
6.Target Market: all ages (user-friendly interface)
iPad 4 (Retina) vs. iPad Mini (Retina)
FEATURESAPPLE IPAD 4
RETINAAPPLE IPAD MINI RETINA
USB CONNECTION No No
SD CARD No No
INTERNAL MEMORY 16 GB 16 GB
OPERATING SYSTEM (OS) iOS iOS
INTRODUCTORY PRICE NT$ 15, 900 NT$ 9, 900
MATERIAL Aluminum Aluminum
BATTERY LIFE 10h 10h
CAMERA 5 Megapixels 5 Megapixels
SCREEN 9.7 in 7.9 in
APPLE IPAD 4 RETINA APPLE IPAD MINI RETINA
Cheaper Smaller iPad
Bigger, faster, stronger
Better for productivity
Better photo/video manipulation
Better at web browsing
Competitive Analysis of Google Nexus 7
•Nexus 7 is unable to clearly differentiate itself from it’s competitors due to the wide variety of tablets available
•Great device in terms of price & quality
•Must find a stronger differentiation to penetrate the market
Strategic MarketingRecommendations
Strategic Marketing Recommendations
Recommendation 1: Keep Focusing on Search Engine
• Google should continue to concentrate its marketing efforts in its search engine process:
• Leader of the global search engine (88% of the market share, more than 20 times its nearest competitor)
• Keep a safety cash cow to be able to invest in the others SBUs
Recommendation 2: Continue Focus on Tablets
• Carry on the marketing efforts in Tablet industry:
• Demand is going to increase (shipment: 282,7 million units by 2016; 172,4 million in 2013)
• Redefining the positioning (high competition, need to find a niche market)
• Innovation to be different
?
Recommendation 3: Invest in Smartphone Market
• Invest massively in the Smartphone market:
• Demand on this market is increasing (shipment: 1,7 billion units by 2017 1 billion in 2013)
• Particularly in emerging country (BRIC) = mainly low-cost mobile phone demand
• Have their own operating system (Android), high competitive advantage (no need of a license & can be used by a wide range of products )
• New technological products (Google ARA and Google Tango 3D)
?
GOOGLE ARA
Video 49s-1.10s
http://www.youtube.com/watch?v=a3i_5mYz900
GOOGLE TANGO 3D
Video 59s-1.23s
http://www.youtube.com/watch?v=Qe10ExwzCqk
Recommendation 4: Foster Innovation
• Find new innovating products & services
• Google X: is a semi-secret facility dedicated to making major technological advancements (100 future projects)
• Ex: Airbone Wind turbines:
• http://www.youtube.com/watch?v=4CH7qmMid5g
“We are only at 1% of what is possible.” - Larry Page
Concluding Thoughts
Recommendations
1. Keep Focusing on Search Engine
2. Continue Focus on Tablets3. Invest in the Smartphone
Market4. Foster Innovation
Bibliographie
• Principles of Marketing, Philip Kotler & Gary Armstrong
• Company Profile, Google Inc., MarketLine, 2013
• Company Profile, Google Inc., Datamonitor, 2008
• http://www.studymode.com/essays/Google's-Bcg-Matrix-482717.html
• http://www.businessinsider.com/the-10-best-google-products-2012-6?op=1#ixzz2v5cPiOHQ
• http://www.reuters.com/finance/stocks/companyProfile?symbol=GOOG.O
• Nakaso, Dan. "Google Fourth-quarter Revenue up 17 Percent." MercuryNews.com. San Jose Mercury News, 30 Jan. 2014. Web. 12 Mar. 2014.
Questions?