Marketing Misfire. Nexus One… Looks Like a Great Phone to Me! The Real Battle Was Positioning and Google Missed It.

Summary:

1. The Situation

  • What’s at Stake
  • Product Features
  • Current Positioning

2. Analysis

  • What’s Right?
  • What’s Wrong

3. Recommendations

  • Connecting the Marketing Dots
  • A 5-Step Plan: What can Google do about it.

Introduction

Recently, before the (in)famous lost iPhone debacle, Apple indirectly made another announcement of perhaps greater import relative to this already proven game changing device, the iPhone. It appears that at long last, Apple is making the big move to create a version capable of running on other carriers, in this case industry-leading Verizon.

As earlier postings on marketing to win attest, Apple needed to make this move or else risk having the product marginalized to niche status if they stayed on ATT exclusively. The risk is magnified especially since Google’s robust mobile, open source  operating system Android in tandem with other devices, notably manufactured by NHT, opens up the market above and beyond any one carrier.

And to make matters worse, it appeared that Google along with manufacturer NHT would be the tools of this destruction with the much heralded launch of it’s Google-branded Nexus One smartphone. Nexus One was designed to be platform-agnostic and besides featuring Android, it exploded the existing sales channel model traditionally controlled by the carriers, and sold direct to customers online through Google itself.

And if that wasn’t enough, customers were also offered both locked and unlocked versions of the device. If you wanted to purchase a subsidized version with a two-year contract, there was a T-Mobile version ready to rock for under $200, and a Verizon-ready model was going to roll this spring as well. Radical indeed.

Before we dive into what was wrong marketing-wise, remember there is much at stake for Google and perhaps NHT as well.

The smartphone is in fact a mobile computing platform and apps that run on these devices are, if I read the tea leaves correctly, potentially disruptive to Google’s online search-based ad model, especially as these platforms take off. I mean who needs search if in fact the app chosen already defines a clear area of interest as defined by the user?

This means that it is well worth Google’s time, talent, management attention and dollars to get in the game and win a real piece of the action, no matter what it takes. Otherwise others (re: Apple) will be in the driver’s seat. Android is one piece. An “iPhone killer” device, a Nexus One… another.

The Good: Feature by Feature… Nexus One Looked Like a Winner!

And what Google/NHT have done on the product level looks real good to me. The more you look at the features of Nexus One next to an iPhone, the better it looks.

It boasts a variety of powerful features including:

  • megapixel camera with a flash, versus the megapixel without flash on the iPhone 3GS,
  • the battery is removable and replaceable, iPhone’s is not,
  • there is a micro SD slot to add up to 32-gigabytes of memory, where with the iPhone, what you buy is what you get
  • apps run simultaneously on Nexus One which the iPhone is famously unable to do at this time
  • and we all know about iPhone’s inability to run applications developed on Adobe’s ubiquitous Flash platform, Nexus One of course runs Flash apps.

Plus Nexus One is the only smartphone to boast the Google nameplate, which is one of the world’s most recognized brands known for leadership in innovation. Add it all up on the product front, this is the good stuff!

The Bad: Positioning Is Where Google Falls Down

Alas, where this all is falling short is in the marketing and positioning arena, which is so essential for success in products of this class.

If there is one lesson we all need to remember and it seems we always forget, it is that product features do not a mainstream marketing strategy make!!!! We were taught this by Geoffrey Moore in his landmark book Crossing the Chasm.

Product features are great for early adopters but are not and don’t work as selling points to mainstream audiences who buy based on herd-like behavior criteria of peer adoption and market leadership.

When going mainstream, it is essential that customers get to feel that others just like them have and love the product, and then that they get to see and feel it for themselves, in order to win them over.

As far as I can tell, this is the whole deal right here on the Nexus One e-commerce and info page, the one that comes up when doing a Google or other search. Based on comments above, the positioning is off base, way off base.

From an e-commerce perspective alone, the presentation itself is simple and clean, just what we’d expect from Google.

From a positioning point of view however, what we see is a product message that by definition is focused on early adopters, not mainstream buyers. OOPS.

You can see it right away by Google tagging the device Web Meets Phone. Product features anyone? This tells us what it is, and if there was no iPhone, this may be necessary… but in an already established, hot product category, no way! Our response is so what?, isn’t that what a smartphone does? Nothing compelling there.

When we look at the rest of the Nexus One page we see the following sections, which also supports the product-focused positioning:

  • Demo
  • News
  • Already a Customer (Customer Service?)
  • Closer Look (including You Tube Channel)
  • And of course, a Buy Now button.

The question is why put the impediment of a Chasm crossing, first winning over early adopters and then mainstream buyers, in front of you when you don’t have to?

Getting the Right Message to the Right Audience

Google is a household name making a play to exploit Apple’s weaknesses and grab a piece of the mobile market. Since this is a competitive land grab type, early adopters are irrelevant here. This is a mainstream marketing move.

The criteria these consumers really care about here are leadership and referenceability. It has always been so. In other words, is the product a leader?, and do my peers have it, and love it?

Google as a brand is a leader, so customers can make the leap of faith to leadership on this level. The question is then, what do our peers think about it? Does it deliver? Is it (the product) “baked”?

Here is where the marketing for this product breaks down.

It is most likely that many potential customers don’t know anyone who has one, and what’s more, if they are interested, they can’t see it for themselves, let alone play with it and internalize the benefits of its many features. This appears to be a result of the Google-facing distribution channel. Because of this radical departure away from carriers, T-Mobile stores, the current existing carrier, don’t have them.

Re-Positioning: Connect the Dots and Take it to the Streets!

Assuming that this won’t or can’t be changed, what then? How can we get this product to the people?

How about testing then deploying some temporary pop-up stores and displays in key markets, key malls, key events, even key warehouse stores like Costco? Consumers can drop by and see, and ask the questions as well as buy… Plus such a temporary approach creates time sensitivity and urgency and also lends itself to deadline driven promotions to induce immediate buy decisions.

Segmentation

Also, so many students today use G-Mail and Google docs. What about more targeted programs, in this case engaging campus reps and offering sales incentives and scholarship-based promotions for sales results? Here is where you could play early adopter card… the rebel, be different card to build traction and gain market share.

Testimonials

One other avenue is to retool the YouTube Channel. Currently the Nexus One channel is all about product info and demos. Keep this content if you must, but also focus on customer testimonials instead. And this can be done strategically, and by that I mean seed it with some key persona or consumer types. Create some promotional incentives to drive submissions, then let it go.

There are plenty of consumer videos out there on the phone, but they are all over the place and you have to dive in to find them. They need to be connected back to the Nexus One page. And content kept on point as much as possible. This is where the incentives and promotions come in. These are necessary to create that peer support that is so essential.

Service?

Lastly, part of the fear factor that holds mainstream buyers back is service. They want and expect a tested service function. They don’t want or accept beta testing done on them. They want a fully baked whole product in place, operational and working. If not, they hold back and do what comes naturally.

They wait.

On the product/marketing side one big issue that can’t be , what happens if I am having issues? Who do I call? Where do I go? Since what is radical here is the “untethered” sales model, we have to know there is a clearly marked place we can go if we need help. Right now I have to figure it out and I don’t have a person to talk to or place to go.

Positioning is all about connecting ALL the dots and at no time is this more important than when mounting an incursion into mainstream markets with an entrenched and powerful leader.

Summary: A 5-Step Plan

To boil things down then, here is a 5-step plan to reposition the Nexus One into a viable competitor to the iPhone (note: there is still time!!!):

1. Re-position the product: Web Meets Phone positioning tag has to go. How about something like Nexus One by Google: The Smarter Phone or something like that.

  • Google. We need Google mentioned for leadership, making the phone not THE but A leading product,
  • “Smarter.” This way you create a qualitative showcase for the features to shine, but talk in the leader/market talk needed in mainstream communications

2. Narrow down to some tighter target segments,
3. Create incentives to drive and organize testimonials,
4. Take the product to the streets so customers can see, touch and buy the product from a person,
5. Re-communicate that Google is there for you relative service

Add it all up, now you have the marketing foundation to communicate a very competitive offering that can grab some market share. Now Google can add a link on the main search page for starters and they can realistically capture a portion of a % of that number to take Nexus One from failed iPhone Killer to a monster hit, with all the benefits of same!

Apple is safe. Or is it? NHT had fantastic earnings for its smartphone offerings through carriers on a global scale. NHT also has the ability to draw upon Google’s Android mobile operating system and Windows too, which will be releasing its new OS momentarily. So as Sherlock Holmes said, “Watson the game’s still afoot” but the battle for mobile superiority may be played out on another field.

Note: As I post this (May 13, 2010) Google/Android/Verizon announced sales in excess of iPhone for the first time. Stay tuned!

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2 Responses to “Marketing Misfire. Nexus One… Looks Like a Great Phone to Me! The Real Battle Was Positioning and Google Missed It.”

  1. more traffic web site Says:

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    Nice Information! Thank you for taking the time to explain everything in such a descriptive and specific manner. This will be of guidance and support in my promotional approaches….

  2. more traffic web site Says:

    Nice Information! Thank you for taking the time to explain everything in such a descriptive and specific manner. This will be of guidance and support in my promotional approaches.

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