May 14, 2010

May 14, 2010Nexus One Marketing Planning

Ankan JainJames WadePeter YouSatya Dash

Page 2p

Table of content: Upfront Analysis

Product Overview 5- 7

Industry Analysis 8 – 20

Competitive Analysis 21 – 26

Smartest/Dumbest Competitive Tactics

27 - 41

Past Marketing CampaignsWhat Worked & What Didn’t

42 – 45

Marketing Research 46 – 53

Perceptual Maps 54 – 57

SWOT Analysis 58 - 78

Page 3p

Table of content: Marketing Plan

Brand Positioning Statement

80- 85

Sources of Volume 86 – 91

Product Line Identification 92 – 93

Geography 94 - 95

Seasonality 96– 97

Media 98 - 128

Consumer Promotions 129- 131

Public Relations 132 – 133

Special Events/ Experiential Marketing

134 – 135

Marketing Research Plan 136 - 137

Marketing Metrics 138 – 140

Risks and Hedges 141 – 142

Page 4p

PART 1: UPFRONT ANALYSIS

Page 5p

PRODUCT OVERVIEW

Page 6p

Nexus One

Page 7p

Specification

Powered by Android

Page 8p

INDUSTRY ANALYSIS

Page 9p

Mobile Phone & SmartPhone Market in U.S.

Mill

ions

of p

hone

s sol

dM

arke

t for

new

Sm

artp

hone

eMarketer – SmartPhone sales in North America 2008-2012

Page 10p

M-commerce Market in U.S.

M-c

omm

erce

mar

ket i

n $

billi

ons

eMarketer – US Mobile Advertising and E-Commerce Revenues

Page 11p

3rd Party Apps Take Over

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

Business & consumer mobile applications pendingWorldwide, 2009 – 2010 (billions)

Source: eMarketer 2009 report

Page 12p

Top Five Mobile Content and Services

Slide 12

Page 13p

Trend – Switch from Feature Phones to Smartphones

Slide 13

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

Page 14p

Smartphone Industry Trends

Switch from feature phones to Smartphones

Skyrocketing popularity of 3rd party apps

Shift from business to personal and mixed use

Fierce competition at all levels of industry

Page 15p

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

Page 16p

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

Page 17p

Trends - Social Media Makes SmartPhone a Necessity

Page 18p

Communication Industry Market Structure

Communication

Fox, CNBC, CNN

WirelessWired

Television

Internet

Phone

Comcast, Time Warner

AT&T, MCI

Paging Cellular PCS - Personal Communication

Wireless Phone

VOIP Tablet PCs/eReaders

iPhone, Droid, Palm, LG, Samsung, Google

Vonage, Comcast, Skype, Cox iPad, Kindle, Nook

Page 19p

Wireless Digital Convergence

InternetBook

Reader

Games

Music

MoviesEmail

Chat

VOIP

TV

Phone

Technology is breaking down industry walls. The convergence is creating brand new opportunities.

Page 20p

Market Structure – Eco System

Operating System

Handset Makers

Carriers

Retailers

Consumers

3rd Party App Developers

3rd Party Accessory Makers

One firm may be all 3 or any combination

Apple, RIM, Google, MS, Palm, Nokia

Apple, RIM, HTC, Samsung, LG, Palm, Nokia, Motorola

Verizon, AT&T, T-Mobile, Sprint

Carrier Stores, Web sites, Best Buy, Wal-Mart

Page 21p

COMPETITIVE ANALYSIS

Page 22p

Competition

Other Wireless Media

IndirectDirect

Leader

Emerging

GPS/Cameras Smart Devices Feature Phones Smart Phones

Motorola Droid

Palm

Blackberry

iPhone

LG Samsung

Nokia

iPad

Kindle

Sony camera phone

Garmin nuvi GPS phoneLaptop connect cards

Nintendo DS

Competition Impact on Business Strategy

Page 23pSlide 23

Smart Phone Competitive Landscape

Personal Use Business Use

Nokia

Samsung

LG

PalmDroid

BlackberryiPhone

Page 24p

Market share of Smartphone players

Note: ages 18+; among those who own a smartphone Source: Razorfish, "FEED: Digital Brand Experience Study," Nov10, 2009

Page 25p

Operating System Players

Slide 25

Page 26p

Carriers

Slide 26

Page 27p

SMARTEST & DUMBEST COMPETITIVE MARKETING TACTICS

Page 28p

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.

Page 29p

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.

Page 30p

Smartest – Droid Does what iPhone doesn’t

●Droid positioned itself directly against iPhone.

●Advertised all its features that iPhone doesn’t support.

Motorola Droid

Page 31p

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.

Page 32p

Smartest – Apple Store Invites Trial

●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.

Apple retail store. Come to shop and return to learn.

Got a technical question? Step up to the Genius Bar.

Page 33p

Dumbest – Retail Store Invites Confusion

●General retail stores do a poor product display.

●All phones are given equal importance.

●Nobody answers “why this phone”?

Page 34p

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.

Page 35p

Dumbest – Nice colors, but why?

● Just attractive backgrounds, but doesn’t explain phone features.

●Why this phone?●Who is the target audience?

Page 36p

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.

Page 37p

Smart – Free Publicity

●Blackberry built free publicity out of President Obama’s passion for Blackberry.

●The messaging is clean and powerful.

Page 38p

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.

Page 39p

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.

Page 40p

Not-so-smart – Can you even see it?

Nobody can notice the tiny Palm Pre logo at above 200mph speed.

Page 41p

Not-so-smart – Shoe or Blackberry ad?

Page 42p

WHAT WORKED & WHAT DIDN’T

Page 43p

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

Page 44p

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

Page 45p

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

Page 46p

MARKETING RESEARCH RESULTS

Page 47p

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.

Page 48p

Google features being used by People

Search Google Mail Google Office Google Maps Picasa Other0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% of People Using Google Features

Page 49p

Willingness to pay for Dream Phone

Zero $1 - $100 $101 - $200 $201 - $300 $301 - $400 More than $4000%

5%

10%

15%

20%

25%

30%

35%

40%

Willingness to pay for Dream Phone

Page 50p

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

Page 51p

Wordle – iPhone

Page 52p

Wordle - Blackberry

Page 53p

Wordle - Google

Page 54p

PERCEPTUAL MAPS

Page 55p

GPS Navigation versus Camera

5 Mega Pixel + Flash

2 Mega Pixel + No Flash

iPhone

Palm Pre

Droid Nexus One

Voice Activated GPS Navigation

Blackberry

Maps

Page 56p

Internet Experience versus Search Capabilities

Full Internet Experience

Mobile Browser

iPhoneBlackberry Palm Pre

Droid Nexus One

Search Capabilities (Voice + Camera)

Basic Search Capabilities

Page 57p

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Price versus Number of Google Services (integrated)

iPhone

Blackberry

Palm Pre

Droid

Nexus One

Page 58p

SWOT ANALYSIS

Page 59p

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

Page 60p

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

Page 61p

Strengths (continued)

Source: JP Morgan

Page 62p

Strengths (continued)

Source: JP Morgan

Page 63p

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

Page 64p

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

Page 65p

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

Page 66p

Opportunities (continued)

Source: JP Morgan

Page 67p

Opportunities (continued)

Source: JP Morgan

Page 68p

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

Page 69p

Threats (continued)

Source: JP Morgan

Page 70p

Threats (continued)

Source: JP Morgan

Page 71p

Threats (continued)

Source: JP Morgan

Page 72p

Threats (continued)

Source: JP Morgan

Page 73p

Threats (continued)

Source: JP Morgan

Page 74p

Threats (continued)

Source: JP Morgan

Page 75p

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

Page 76p

Morgan Stanley iPhone Interest Survey, 11/2008 (continued)

Source: JP Morgan

Page 77p

Morgan Stanley iPhone Interest Survey, 11/2008 (continued)

Source: JP Morgan

Page 78p

Cycle of Successful App Marketplace

Source: JP Morgan

Page 79p

PART 2: THE MARKETING PLAN

Page 80p

BRAND POSITIONING

Page 81p

Who are Our Users?N

eed

for S

mar

t Pho

ne

Desire for Smart phone

Low High

High

Low

iPhone Users

Moto Droid Users

Palm Pre Users

Working Moms,Students,

Senior Citizens,

Blackberry

Page 82p

Average Google Phone User

iPhone user 60 mins per day Google Phone user 60 mins per day

% time spent by activity per day

Page 83p83

Our Primary Target

Working

Income < $70,000 per annum

First time switcher to Smart phone

Female Non Gen-x or Gen-Y

Need a smart phone as easyas regular phone

Needs navigation system& camera

Uses phone less for music and games

Estimated market size for this segment in 2011 is 165mn.

Page 84p

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.

Page 85p

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.

Page 86p

SOURCES OF VOLUME

Page 87p

Google Mobile Revenue Forecast

Source: eMarketer

2008 2009 2010 2011 2012Number of Units (in mil l ions) 25.8 32.5 41.9 54.9 67.3Percent Increase YOY 26.00% 28.90% 31.00% 22.60%Google Nexus One Market Share 0.00% 0.00% 2.00% 10.00% 15.00%Google Nexus One Units (in mil l ions) 0 0 0.838 5.49 10.095Google Nexus One Revenue $0 $452 $2,959 $5,441Revenue Business Apps $1,660 $2,960 $5,130 $7,540Revenue Consumer Apps $1,110 $2,070 $3,360 $5,630Total Apps Revenue $2,770 $5,030 $8,490 $13,170Android App Market Percent Increase 2.00% 5.00% 10.00%Android Market App Revenue $12 $100.60 $424.50 $1,317.00

Total Revenue (in Millions USD) $12 $552 $3,384 $6,758

Smart Phones in North America

Page 88pSource: eMarketer

Google Mobile Revenue Forecast

$0$452

$2,959

$5,441

12 101425

1,317

0

1000

2000

3000

4000

5000

6000

2008 2009 2010 2011 2012

Reve

nue

(in M

illio

n U

SD)

Year

Google Mobile Revneue

Google Nexus One Revenue Android Market App Revenue

Page 89p

Google Nexus One Revenue Forecast Breakdown

2011 2012Buyer Breakdown % Revenue % RevenueNo Phone 1% $54,900 1% $101,000Feature Phone Converts 79% $4,337,100 84% $8,484,000Smartphone Switchers 20% $1,098,000 15% $1,515,000

iPhone 5% $274,500 4% $404,000RIM 9% $494,100 7% $707,000

Palm 1% $54,900 1% $101,000Other 3% $164,700 2% $202,000

Android 2% $109,800 1% $101,000

Page 90p

Google Nexus One Revenue Forecast Breakdown

Point of Sale % Revenue % RevenueOnline 60% $3,294,000 65% $6,565,000T-Mobile Store 10% $549,000 10% $1,010,000Other Store 30% $1,647,000 25% $2,525,000Other 0% $0 0% $0

2011 2012

Page 91p

Marketing Spending Split

Page 92p

PRODUCT LINE IDENTIFICATION

Page 93p

Product Line Identification

In the first year, there will be only model. However subsequently we will expand to 4G and other models.

Page 94p

GEOGRAPHY

Page 95p

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.

Page 96p

SEASONALITY

Page 97p

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

J F M A M J J A S O N D

10% 5% 5% 10% 10% 15% 15% 5% 5% 20%

First Half: 30% Back to School: 40% Holidays: 30%

Sales as a % of Annual Total

Page 98p

MEDIA

Page 99p

Key Marketing Efforts

RaiseAwareness

InduceTrial

Remove Barriers to Purchase

Page 100p

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:

Raising Awareness - Branding

phone

Page 101p

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

Page 102p

Raising Awareness – Digital Advertising Example

Page 103p

Raising Awareness – Digital Advertising YouTube

Page 104p

• 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

Raising Awareness – National Television

Page 105p

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

Page 106p

Raising Awareness – Example Print Ad

Your Life

Shopping

available at

Stop by the Nexus One kiosk to borrow a unit for in-store shopping

Page 107p

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

Page 108p

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…)

Page 109p

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

Page 110p

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

Page 111p

Induce Trial – Google / Target

AdAge.com - Walmart, Best Buy, Target, Regional Players Expand, Market Smartly

Target’s Reasons for Partnership

1. Far behind Best Buy, Wal-Mart & Amazon in consumer electronics

2. Exclusive Google Phone offering fits ‘cheap chic’ product strategy

3. Google co-branding adds innovative cachet to Target brand

Page 112p

Induce Trial – Google / Target

Target.com Investor Relations – Summary; Google maps

Google’s Reasons for Partnership

1. Target offering provides best chance for trial among target market

2. Google’s single physical product cannot sustain a dedicated store

3. Target geographic coverage and siting avoids direct confrontation with mall-located Apple Stores

Google Phone Market Average Target Shopper

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

Apple Stores Target Stores

Page 113p

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

Page 114p

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

Page 115p

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.

Page 116p

Remove Barriers – Lower Price

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

Current Nexus One Price: $179.00 w/ T-Mobile

New Google Phone Price: $49.99 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.

Page 117p

Key Marketing Efforts - Summary

RaiseAwareness

InduceTrial

Remove Barriers to Purchase

Rename: Google Phone

Traditional Advertising (TV & Print)

Target mini-storeTarget ScanIt App & in-store Kiosk

Available at Target & T-Mobile Stores

Lower Price: $50

Page 118p

Integrated Marketing Flowchart

J F M A M J J A S O N DMarket Research

Name Change

National TV & Print

Regional TV

Target mini-store

Target ScanIt AppTarget ScanIt

Kiosks

Lower Price

T-Mobile Availability

Digital Advertising

BACK TO SCHOOL HOLIDAYS

ROUND 1

X

DEVELOPMENT BUILD LAUNCH MONITOR & IMPROVE

DEVELOPMENT LAUNCH MONITOR & IMPROVE

DEVELOPMENT BUILD LAUNCH MONITOR & IMPROVE

X

X

ROUND 2

DEVELOPMENT ROUND 1 ROUND 2 ROUND 3

ROUND 3

DEVELOPMENT ROUND 1 ROUND 2

Page 119p

Integrated Marketing Flowchart Budget

J F M A M J J A S O N DMarket Research

Name Change

National TV & Print

Regional TV

Target mini-store

Target ScanIt AppTarget ScanIt

Kiosks

Lower Price

T-Mobile Availability

Digital Advertising

BACK TO SCHOOL HOLIDAYS

$1M

N/A

$1M $1M $5M $1M

$1M $0.5M N/A

$1M $1M $5M $0.5M

N/A

$0.5M

$3M

$1M

$1M $15M $15M $10M

$1M

$2M $10M $10M

Total Budgeted: $83.5M leaving $5.5M for contingencies

Page 120p

DIGITAL MARKETING

Page 121p

SEO

Page 122p

Visits to company websites

Harness Google search engine potential to increase Google Phone brand awareness.

Goal for Google Phone

Page 123p

Search Engine Optimization

Marketing goal for Google phone website direct hit is 20mn unique visitors by end of 2010.

Page 124p

Free Search Paid Search

Leverage both organic and paid search positions

When user is searching for phone, iPhone, droid phones, Google Phone needs to appear on first page.

Page 125p

PARTNERSHIP WITH ONLINE CHANNELS

Page 126p

Partner with Popular Mobile Phone Retailers

30% online shoppers shop phones on dedicated mobile phone retailer websites.

Page 127p

Partner with Carrier Web sites

Sell phones on Carrier Web sites such att.com, verizon.com etc.

Page 128p

Price Comparison Sites– Shopping.com

Make Google Phone appear on top on the price comparison sites.

Page 129p

CONSUMER PROMOTIONS

Page 130p

Promotions by Carriers

Have carriers offer promotion programs such as free phone activation.

Page 131p

Retailers can pass on discounts to consumers

Most of phones on Amazon.com and other retailers sites are available for free.

Page 132p

PUBLIC RELATIONS

Page 133p

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

Page 134p

SPECIAL EVENTS/ EXPERIENTIAL MARKETING

Page 135p

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

Page 136p

MARKETING RESEARCH PLAN

Page 137p

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 research and surveys

Prior to mini store launch

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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

Carrier Adoption Expand subsidized availability through other carriers

Risks Hedges

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