Google Voice and Video Chat Advertising Strategy Plans Book

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1 Google Voice and Video Chat Advertising Strategy Plans Book Agency 4 ADV 3001 Fall 2010

2 Google Voice and Video Chat Advertising Strategy Plans Book Agency 4 Allison Agnello Sam Al-Mutawa Michelle Curran Marketa Novakova Araixa Ruiz Justin Simmons

3 Table of Contents Executive Summary... 1 Situation Analysis... 3 Industry Analysis... 3 Company Analysis... 3 Product Analysis... 5 Competitive Analysis... 6 Consumer Profile... 7 Market analysis... 9 Problems & Opportunities Opportunities Recommendation Marketing Objectives Marketing Strategy Target Market Profile Positioning Statement Communication Objectives Communication Strategy Media Strategy Integrated Marketing Communications Tactics Plan for Measurement & Evaluation References Table of Contents

4 Executive Summary Google Voice and Video Chat is a new Voice over Internet Protocol (VoIP) service. The VoIP industry is growing rapidly, however Google Voice and Video Chat is also a major contender in the overarching category of communication technology. Google is one of the most well-known internet companies on the planet and has a very large portfolio of products to show for it. Products such as Gmail, Youtube and Google chrome internet browser are just a few of the ever-growing list of offerings by the company. Google has also made its way into the small-business market with Google Apps, a service which offers a great deal of capabilities to small businesses for a fraction of the cost. Google Voice and Video Chat is amongst competitors such as Skype, but it has distinct advantages over the competitors. The primary current advantage is the price of the service. Primary consumers of Google Voice and Video Chat are young, innovative members of the millennial generation. Educated, and recently joining the workforce, these consumers seek out new products that challenge existing conventions. As primarily members of the ENTP segment of the Myers-Briggs test, these consumers rely heavily on the internet for both communication and work. Current users of VoIP services are primarily located in or around larger cities. The West, Mid-atlantic and Southeast are the most predominant markets. Current Macro environmental conditions include advancing technology and an increased importance of cell phones and the internet. The opportunities for the product lie within Google s brand equity, the decline of landlines, the spread of internet access and arguably the most important the integrations of Google Voice and Video chat within Google s existing products. Some problems for the product include the inability to place emergency calls, international interference and technological issues. As an agency, we recommend setting marketing objectives of a 10 percent increase in software downloads by the target market and retention of 20 percent of target market users after the initial trial period expires. We suggest utilizing primarily traditional advertising, public relation and sales promotion to accomplish these goals. The target market of the campaign is male, late technology adopters, ages These late-adopters are part of the late majority and adopt products after nearly every other segment. They do not actively seek out technology and often become frustrated with technology that they are currently using; however, after price reductions and enough pressure, late-adopters give-in to a new technology. For this target market, we recommend positioning Google Voice and video Chat as a software program that takes the difficulty out of communicating. The target market may use this product as effectively for contacting business partners as they can to contact their aging parents. To reach this market, we recommend setting communication objectives for increased product awareness and top-of-mind, evoked set recall. Page 1

5 Page 2 We suggest that most advertising be accomplished through traditional television and print advertisements. In addition to these, we also recommend utilizing public relations such as event sponsorship and sales promotions. To measure and evaluate the success of the campaign, we recommend utilizing concept testing with the target market prior to the start of the schedule. During the campaign, we suggest employing concurrent testing to ensure that the message is being delivered effectively through the correct media. After the campaign, we suggest survey and focus-group testing to determine the effectiveness of the message and to determine the ultimate outcome of the campaign.

6 Situation Analysis Tab Place-holder

7 Situation Analysis PROBLEM IDENTIFICATION Google wants to build traffic for Google Voice and Video Chat. INDUSTRY ANALYSIS The Voice over Internet protocol (VoIP) industry is comprised of companies which offer phone and messaging services over the Internet, opposed to the previous generation of telephone cables. Google Voice and Video Chat belongs within the VoIP industry, which is comprised of a number of major players. Over 60 percent of 2009 VoIP industry revenue was earned by the four largest companies - three cable companies (Comcast, Time Warner and Cox) and Vonage, a subscription-based VoIP service. The majority of users will come from cable subscribers because cable companies currently have higher quality and saturation (Thormahlen). This year, in 2010, total industry revenue is projected to reach $12.34 billion. The industry revenue has risen steadily by over 50 percent for the past five years. According to IBISWorld, the industry will reach approximately 62 million paying subscribers by Industry growth is a result of increasing Internet usage and a growing tolerance for online products from people of all ages. As technology becomes more reliable and advanced, new consumers are convinced to try and later commit to new products such as Google Voice and Video Chat (Thormahlen). The Internet voice and video chat industry is a relatively new one, but has shown great potential for growth. There was a 55.1 percent growth from , with a projected 18.5% growth for (Ibis). The present regulations in the VoIP industry are very light because the industry is still in its infancy. The lack of regulation will allow new companies to move into the industry and seize additional market share with little concern for government intervention. Though Google currently only holds a.5 percent market share, their current offerings differ from most other industry competitors in that most of Google s services are provided free of charge. The most closely related competitor in the industry is Skype, which holds only a 1.5 percent market share (Thormahlen). COMPANY ANALYSIS Larry Page and Sergey Brin founded Google, Inc. in 1998 with the hope of organizing the world s information and making it universally accessible and useful (Google, Corporate Information). Based in Mountain View, California, Google has expanded to six of the seven continents in the world, with over 21,000 employees ( Yahoo! Finance). The company has a very welcoming and healthy corporate environment. Page 3

8 Page 4 Employees are encouraged to think, act, and even dress out-of-the-box in order to foster a creative environment for developing products. Google, known for its search engine and numerous programs, can be viewed in dozens of different languages, reflecting the widespread use of the company s products. The search engine is Google s primary focus, and the company has based all of its other products upon what it has learned from refining the search experience. Additional Google products supplement the search engine and facilitate Google s goal of making information quick, easy, and universally accessible. Through the popular search engine, users can find almost any information on the Internet. Many Internet sites can even be translated into any language of choice using Google Translate. However, countries such as China are partially blocking Google and its services from citizens. Google can be accessed through or one of more than 150 other Google domains (Google, Corporate Information). Besides being a widely used web search engine, Google has other programs such as Google Chrome, YouTube, Google Maps, Google Earth, Google Analytics, Google Docs, Gmail, Google Video & Chat and dozens more. Users can connect to all of Google s programs and applications using mobile devices, reflecting the company s continuing ability to grow with modern culture and technological advances. Most of Google s income comes from advertising revenue. Google allows advertisers to access the right market in the right place at the right time. In particular, Google Adwords is very popular in the advertising world because it allows advertisers to place advertisements next to relevant keywords. Google has grown tremendously since it was founded. In the last quarter alone, sales increased 23.5%. Revenue recorded December 29th at the end of the 2009 fiscal year totaled over billion dollars. The 2009 income statement showed billion dollars in gross profit and the balance sheet showed billion dollars in cash. These figures are the reason Google is ranked among S&P 500 and 102nd in the Fortune 500 ( Yahoo! Finance). Google constantly adds new programs and applications to help a wide variety of users for example, busy people seeking to organize their schedules or advertisers trying to reach the right audience. Although Google has continually expanded its company by creating new products and taking them in new directions, the company continues to stay dedicated to [its] users and [its] belief in the possibilities of the Internet itself (Google, Corporate Information).

9 PRODUCT ANALYSIS Google offers dozens of products to suit the information and technology needs of a variety of users. The versatility of each Google product allows consumers to adapt the product to their wide spectrum of needs. Products include: Google Earth, Images, Maps, News, Calendar, Docs, Mail, Web Search, YouTube and Android (Google, More Google Products). See Exhibit A for each product s specific function. Product Attributes and Functions -The latest product, Google Voice and Video Chat, allows Google users to video chat each other and make phone calls from a unique phone number, straight from a computer. The service offers many benefits not in competitors products. Google Voice and Video Chat can: block unwanted callers, screen callers before answering, customize which phones ring, make cheap international calls (as low as 2 cents/minute), send and receive SMS online, share voic s with friends, read transcripts of voic s, personalize greetings for different callers, access the mobile app on your phone, conference call with co-workers, forward calls, allow you to choose your phone number and record and/or route calls (Green). Google Voice can be used on iphones and Andriod cell phones, but users cannot dial 911 (Green). Packaging/Distribution Google Voice and Video Chat is distributed through downloads via the Google website. Internet users can download the necessary plug-in from Google.com and begin using the product immediately. The product can be distributed to anyone who creates a new Google account or uses an existing one. Positioning/Brand Personality Google has positioned itself as a cool brand of the 21st century. It strives to be innovative and demonstrate a trendsetting, vivacious personality. As a brand, Google is a trailblazer and a leader that other companies follow after (Google: the brand behind the logo). Marketers at Google position the brand as one that is all about practicality and improving quality of life. They want consumers to see Google as a solution to everyday hassles, problems, and deficiencies (Google, Corporate Information). Promotion Used - Google has emphasized the ease of use and ease of learning/ installing the software. Much of the campaign focuses on convincing current users to add one more Google product to their existing set of tools. The primary medium of promotion has been instructional and educational videos on the Google website that tout the benefits of using Google s voice and video chat software. The simple, streamlined videos are directed at the general, tech-savvy consumers and businesses. Google has also promoted the fact that all of its products are highly integrated, and that adding the new voice and chat software can enhance and complement existing Google products that consumers are already using. Media Spent - Google has mostly advertised its voice and video chat software online by sending s and writing on its blog. The company has kept promotions Page 5

10 Page 6 and advertising on the Web sites of other Google products. Google attributes much of its success to word-of-mouth and positive press, leading to low advertising and media costs. Price - Calls to the U.S. and Canada will be free for at least the rest of the year, and calls to other countries will be billed at very low rates. Video chat is free, but users can only chat with another user of chat in Gmail or chat in igoogle. For a comparison between Google s international call prices and the prices of leading competitors, see Exhibit B (Google, Call Phones from Gmail). COMPETITIVE ANALYSIS In the Voice over Internet Protocol (VoIP) category, in which Google is now a competitor, Skype and Vonage largely dominate the industry (IbisWorld, 2010). Skype, with 1.5% market share, is Google Voice and Video Chat s greatest competitor. An analysis of Internet traffic by an Internet traffic management systems provider found that Skype accounts for 95 percent of all VoIP traffic on the net (Corner). Indirect competition also stems from cell phone companies such as Verizon because the use of cell phones to replace landlines is also on the rise. Google Voice and Video Chat is one of the newest competitors in a relatively new industry. As Google s greatest competitor, Skype competes in both the face-to-face video chatting realm and the VOIP segment of the market. Skype offers similar services as Google Voice and Video Chat, including free user-to-user chatting, inexpensive international calls, instant messaging, and file transfer. Both services are also available through mobile phone applications, as well as through traditional computers (Skype, 2010). While the Skype and Google Voice and Video Chat are similar, Google s offering has several differentiating features that Skype does not offer. Google s product, although still in beta form, has several advantages over its competitors. The primary difference between Google Voice and Video Chat and Skype is that Google doesn t charge for calls to a landline or mobile phone within the United States and Canada, while Skype does. Another competitive advantage for Google includes lower rates for international calls than Skype. (Google, 2010) Additional features of Google Voice and Video Chat that Skype does not offer include call routing, SMS messaging, call screening, conference calling, personalized greeting and phone numbers, transcribed voic s, and the linkage of multiple phone lines. The attributes make Google Voice and Video Chat vastly different from traditional landlines, cell phones and other VoIP services (Google 2010). With Google Voice and Video Chat still unproven in a developing market, uncertainties still exist about precisely where it fits into the grand scheme of the industry. However, based on analysis of competitors as well as projections, Google is positioned to compete predominately with the same target audience as Skype.

11 CONSUMER PROFILE Millennials The typical Internet and video chat consumer is heavily reliant on a technology. These users are members of Generation Y, also known as the Millennials (Kim). Millennials were born in the 1970 s and later, Generation Y legal professionals are in their 20s and 30s and are relatively new to the workforce. With numbers estimated as high as 70 million, Millennials are the fastest growing segment of today s workforce (Armour). Millennials are tech-savvy. They grew up with technology and require it to perform their jobs. They prefer to communicate through and texting as opposed to personal contact. They also prefer webinars and online technology to traditional lecture presentations. As embracers of technology and novel products, they are volatile and change their preferences alongside new technological developments (Kane). The three primary users of Google Voice and Video Chat are people who a) want to keep in touch and need a social medium, b) need a way to make inexpensive international calls, or c) are looking to substitute their cell or home phone with an internet alternative. The Google consumer relies on the Internet for day-to-day purposes, seeks advanced solutions to his/her needs, and desires to be at the forefront of trends (Google, Corporate Information). See Exhibit C for a table showing the age breakdown of Internet users. Personality Segmentation These traits, as outlined by Kane s analysis of Millennials, correspond the Myers Briggs personality type known as ENTP (which stands for Extraversion/Intuition/Thinking/Perceiving). The following are characteristics of ENTPs (Purdue University, 2008): Curious Adaptable Innovative Independent Encouraging Social Improvisers ENTPs set flexible goals that allow them to incorporate new information and accommodate to new circumstances when they come along. As adults, ENTPs take advantage of opportunities. Because of their ability to see relationships and connections between seemingly unrelated things, they are able to realize the potential in many things. ENTPs want their work to be enjoyable, with interesting possibilities for applications. ENTPs prefer to use their skills in interactions with others and have an innovative, versatile, and enterprising approach to work. They view limitations as challenges to be overcome and look for new ways to do things. They take initiative and want to be in situations in which they can take intellectual risks and meet challenges. ENTPs want to exercise their ingenuity in the world of people and things. They are very alert to what is apt to occur next, and always sensitive to possibilities. ENTPs are express interest in many things, and thus are a source of inspiration to others, who find themselves caught Page 7

12 Page 8 up by the ENTPs enthusiasm. They are always on the lookout for new projects, new activities, and new procedures. As a result of this open attitude, they often bring a fresh, new approach. Lifestyle Segmentation Consumers of internet and video chat products tend to fall into one of the following lifestyle groups (Nielsen Claritas): 1. Young Influentials - younger, middle-class singles and couples who are preoccupied with balancing work and leisure pursuits. Recently college graduates. US Households: 1,688,014 (1.472%) Median HH Income: $48, Urbanicity: Suburban Income: Midscale Age Ranges: Age <35 Presence of Kids: None Employment Levels: White Collar Ave Education Levels: College Graduate 2. Urban Achievers - These young singles, couples, and families are typically collegeeducated and ethnically diverse. US Households: 1,716,916 (1.497%) Median HH Income: $35, Urbanicity: Urban Income: Lower-Mid Age Ranges: Age <35 Presence of Kids: Family Mix Employment Levels: White Collar, Service, Mix Education Levels: Some College 3. New Beginnings - Many residents are twenty-something singles and couples starting out on their career paths. Households have modest living standards. US Households: 1,741,778 (1.519%) Median HH Income: $31, Urbanicity: Suburban Income: Downscale Age Ranges: Age <35 Presence of Kids: Family Mix Employment Levels: White Collar, Service, Mix Education Levels: Some College

13 MARKET ANALYSIS Google Voice and Video Chat is only free to consumers in the United States; therefore, America is the predominant market area (Green). The majority of the users are located in or around cities. The Far West is the biggest market with $17.2 million (21.57%), followed by the Mid- Atlantic with $14.0 million (17.48%) percent, and then by the Southeast with $13.1 million (16.35%) of the demand in the United States. Firms targeting these 3 regions can cover 55.4 percent of the latent demand for peer-to-peer VoIP software in the United States (Parker). According to MarketResearch.com, New York City is also the #1 ranked cityregion in the world for peer-to-peer VoIP (Los Angeles and Chicago are ranked #3 and #4 in world city region rankings and account for 8.23 and 7.57% of the U.S. revenues, respectively) % of the country s potential industry earnings. is accounted for by the top 15 city-regions of New York City, Los Angeles, Chicago, Houston, Philadelphia, Dallas, San Jose, San Francisco, San Diego, Detroit, Phoenix, San Antonio, Indianapolis, Baltimore, and Washington D.C (Parker). According to Yankee Group, there are over 9 million households in the U.S. subscribing to a paid VoIP service. Consumer VoIP services have penetrated 9% of all households in the U.S. (Yankee Group). MACROENVIRONMENTAL ANALYSIS The current trend is for a technologically-literate society. The most common form of technology that people keep with them is the cell-phone. With the introduction of advanced phones such as the iphone and Android, cell phones can do much more. There is less use for a landline phone. Now, only 74% of household have a landline, compared to 97% in Cell phones are considered more of a necessity to younger citizens; see Exhibit D (Taylor and Wang). The Internet is another important social trend. A more recent use of the Internet is as a source of entertainment through online TV shows and movies, video games and social networking. In 2000, only 46% used the Internet, up to an impressive 79% of adults in Similarily, more adults think it is very hard to give up the Internet (Taylor and Wang). Right now, the United States is recovering from a recession. The financial crisis ended in June 2009 according to the economists at the National Bureau of Economic Research, meaning that the United States economy is improving, but still damaged. Certain segments have not got better. There is still a lower level of self-employed people and new business creation. There is increased owner pessimism, including less small business expansion. Consumers are less willing to spend money and more frugal (Shane). Page 9

14 Page 10 PROBLEMS AND OPPORTUNITIES Problems With Google Voice and Video chat, users can t dial 911, while direct competitor Vonage and indirect competitor Verizon offers it bundled with the per month service charge (Boutin). That could be a problem because those wanting to replace their landlines for Google Voice and Video might be cautious, since they would be unable to call 911 in the event of an emergency. International Interference Countries such as China have a history of blocking websites, including Google, from citizens. This will become an obstacle for domestic business owners looking to expand or maintain international business, specifically in China, while using Google s software. Technological Issues Many potential users may be discouraged by technological concerns. Some people fear the risk of hacker breach because Google stores personal information, such as cell phone numbers, credit card information. Additionally, aging users may hesitate to abandon their traditional landlines in exchange for VoIP technology that they are unfamiliar and uncomfortable with. Finally, people who have had experience with unreliable Internet connection might hesitate to become dependent on an internetbased product for their communication needs. This will become an obstacle because those with technological issues could stay away from Google Voice and Video. Opportunities Brand Equity - Google Voice and Video Chat has many opportunities to utilize in its quest to build traffic. Google Voice and Video Chat has an advantage because Google already is such a powerful brand and has such enormous brand equity. Google is ranked the world s most valuable brand in 2010 and has won that prestige for the past 4 years in a row (Millward Brown Optimor). This worldwide recognition gives Google credibility that resonates with consumers. To capitalize on this brand equity, Google could use its expertise and success to its advantage. Decline of Landlines Young people are increasingly moving towards making their cell phones their primary phone numbers. Landlines on the decline, due to the fact that individuals in each household acquire their own personal phone number rather than having one for the entire home. The opportunity lies in the growing market that is searching for a new form of communication. Though the users switching from landlines are largely moving towards cell phones, these consumers will be much more likely to try a new communication technology than those retaining their landlines. Google Voice and Video could replace landlines as the main communication device in households. Internet Access In many rural areas, Internet access is more widespread than cell phone signal. Google has the ability to reach these markets by offering the ability to

15 stay in touch with rest of the nation and world without requiring the use of landlines. It is an advantage because those with poor or spotty cell phone coverage could resort to Google Voice and Video chat as a better communication alternative. Android - Google s Android operating system, available on Droid cell phones, provide a platform for users to operate Google Voice and Video Chat from their phones. The compatibility between Andriod and Google Voice is a clear advantage, since the product can now be used on a portable device anywhere. iphone/itouch - Google Voice also has an opportunity to use the iphone/itouch to increase the amount of product users. Google has announced that it now has an iphone app, meaning that the Google Voice and Video Chat has the potential to be carried with the user anywhere. For iphone owners, the app allows for calls to one s Google Voice phone number to be forwarded to the cell phone. For itouch owners, the app allows user to take advantage of the free text messaging, eliminating the need for expensive texting plans. This is an advantage because Google Voice and Video Chat is not only more portable, but is also more useful. Integration - Google Voice and Video Chat is integrated in with the bundle of Google s other services, making it convenient and useful. People who already use Google for Gmail, Calendar, Docs, etc. have minimal-to-no set-up and the learning curve is very small. The addition of voice and video to the Google line of products also makes it the complete communication tool because users can video chat, message and all in one place, and also edit documents, join groups, search topics, read books, translate languages, etc. This complete package means that Google can target its existing customers, while also allowing it to target new customers who are looking for a single brand bundle to satisfy all of their information and communication needs. OPPORTUNITY RECOMENDATION We recommend that Google focus on the integration of Google Voice and Video Chat with the Google s business Apps. These consumers will be the most open to trying and using the product, and will be happy to use a product thet works hand-in-hand with their existing software. By offering the new product to those already using Google Apps, Google Voice and Video Chat will develop a strong market base. Page 11

16 Marketing Tab Place Holder

17 Marketing Marketing Objectives percent increase in software downloads by target market at the end of 12 months. 2. Retain 20 percent of users in target market for at least 3 months of paid product use after initial one-year trial period ends. Marketing Strategy Google Voice and Video Chat is a new competitor in the communication technology market, with free domestic calls, and comparable rates to competitors for international calls. In order to increase downloads of Google Voice and Video Chat among male, late technology adopters by 10 percent in the next 12 months, we recommend that Google use advertising, public relations and specific sales promotions to promote the product to members of the target market. Additionally, the team recommends that the advertising, outlined in-depth further on, is formatted in a manner that informs the target audience of the simple to use features and benefit that come with Google Voice and Video Chat. We also suggest highlighting the competitive advantages both for personal use, in communication with friends and family, as well as its potential business applications. Ultimately, the viewer will be directed to visit the web for a trial download. By explaining the effectiveness of the product to the target market through the marketing campaign, the target will not only be more likely to download the product, but we also believe that this will contribute to 20 percent or more users in the target market will continue their use of Google Voice and Video Chat after the initial free trial period ends. Page 12

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19 Target Market Profile Late Technology Adopters Males age 25-44: Donald White is a 37-year-old businessman who owns a local landscaping business. He is mostly involved with the organization and the day-to-day operations of the company. His company uses Google Apps to keep everyone s work and files organized. He currently has a blackberry but is frustrated by the complexity of the product and prefers simpler items. He attended Northwestern University where he meet his wife Anne and most of his closest friends. He presently has a Facebook to keep up with his college friends. Months ago, he downloaded Skype but he did not like it because he was unfamiliar with the software. He is still in love with his wife Anne, a stay at home mom, and his two children. Donald s hobbies are watching sports, camping, traveling and regularly playing and watching golf. He makes about $70,000 per year. Donald lives in a well established home with three bedrooms and a large backyard in a in a middle-class suburb of Chicago. He jogs twice a week, eats fairly healthy and takes good care of the family dog, Spike. Donald is self-sufficient and good at fixing things around the house. He doesn t spend much time on the computer, but instead likes watching the news and sports with a few close guy friends. He has a daughter in middle school and a son in elementary school. Late Adopters: Donald White, our target market, is the Late Majority, which falls between the 35th and 83rd percentile of adopters. He adopt products after Innovators, Early Adopters, and the Early Majority. He enters the buying process during the maturity phase of the product life cycle. Donald tends to be skeptical and doubtful of Page 13

20 Page 14 the benefits of adopting an innovation. However, once the innovation reaches maturity, the innovation costs less and the social pressure ( because my friends have one ) can be enough to convince him to adopt (Gillard, 2004). Donald has fallen into the late adopter category because he has little time to keep up with new technology and innovations. Statistics for Men Aged (Pew Research Center, 2009) Population: 32 million Median Household Income: $66,901 Marriage Status: Married (65%) Primary Place of Resident: Suburbs (57%) Education: High School (32%), Some College (25%), 4 Years College (31%) Ethnicity: White (61%)

21 POSITIONING STATEMENTS 1. To male, late technology adopters Google Voice and Video Chat is a VoIP alternative that provides a reliable method of voice and video communication over the Internet. Unlike Skype, Google Voice and Video Chat temporarily provides this service free of charge. The brand character is both comforting and professional. The value-based payoff is connectedness. 2. To male, late technology adopters, Google Voice and Video Chat is a software program that provides a variety of integrated communication tools both for friends and family and for business owners over the Internet. Unlike other communication technologies, Google Voice and Video Chat can be integrated with your webmail, calendar and other Google services for convenience and is comparatively easy to use. The brand character is user-friendly and professional. The value-based payoff for the target will be connectedness and simplicity. Page 15 4

22 Page 16 RECOMMENDED POSTIONING STATEMENT To male, late technology adapters, Google Voice and Video Chat is a software program that provides a variety of integrated communication tools both for friends and family and for business owners over the internet. Unlike other communication technologies, Google Voice and Video Chat can be integrated with your webmail, calendar and other Google services for convenience and is comparatively easy to use. The brand character is user-friendly and professional. The value-based payoff for the target will be connectedness and simplicity. We recommend this postitioning statement because members of the target market struggle with learning new technology. By providing the target with a product that he can understand and use effectively to communicate with his loved ones and business associates, Google will be filling a gap that has been overlooked. Because Google Voice and Video Chat is a much more diversified product, we recommend that the product be positioned amongst all communication technologies, including, but certainly not limited to, other VoIP services. As a very targeted and specific approach to solving the target market s concerns, we feel that Google Voice and Video Chat will become a large contender in the race for new communication technologies.

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24 Communication communication objectives 1. Increase product awareness in target market by 20 percent in next 12 months. 2. Increase the percentage of target market who include Google voice and Video chat in top-of-mind evoked set of communication technology by 18 percent in next 12 months. communication strategy Convince male, late technology adopters, that Google Voice and Video Chat is a software program that provides a variety of integrated communication tools both for friends and family and for business owners over the internet. Google Voice and Video Chat can be integrated with your webmail, calendar and other Google services for convenience and is comparatively easy to use. The brand character is user-friendly and professional. The value-based payoff for the target will be connectedness and simplicity. media strategy Advertising: We recommend that Google voice and Video Chat be advertised on a select number of television channels and a number of magazines that will bring Google Voice and Video Chat directly to the target market. Television: To reach our target market, we recommend that Google Voice and Video Chat be advertised throughout the campaign schedule on ESPN, ESPN 2, CNN, MSNBC and Fox News. These channels will be the best means through which Google may reach the target market. For example, ESPN s viewership is composed of 72 percent males. (Comcast) In addition to these networks, we recommend that Google Voice and Video chat be advertised on The Golf Channel and NBC during major PGA tour events and at specific times in the campaign schedule. We suggest that the standard 15-second spot be coupled with an additional 15-second spot to highlight the sponsorship and sweepstakes recomendations outlined further on. These media spot may be purchased for approximately four and three months ahead of the sweepstakes and sponsored event, respectively. Magazine: To reach our target market through print advertisment, we recommend that space be purchased for Google Voice and Video Chat in the following magazines: Sports Illustrated, Field and Stream and Newsweek. These three magazines will provide a media Page 17

25 Page 18 that Google may use to reach a large number of the target market. We recommend purchasing monthly space in these magazines throughout the campaign schedule. In addition to the mentioned magazines, we suggest purchasing space in Golf Digest. This magazine is the primary golf magazine and will provide an opportunity to promote both the product, and the sweepstakes and sponsored event, outlined further on. We suggest purchasing space in the four editions before the sponsored event. We suggest utilizing full-color processes as well as full production bleeds for full visual impact of the purchased spots. Public Relations: To promote the public realtion efforts of the campaign, we suggest press releases distributed on a schedule outlining the efforts made by Google to promote Google Voice and Video chat. For the major public relations events, such as the sponsored event outline further on, we recommend distributing press kits on the same schedule as the magazine advertising. In addition to the press kits, we recommend coupling the standard 15-second television spots with additional 15-second spots explaining and publicizing the issue advocation and sponsoship outlined further on. These may be run on the same schedule as the standard television advertising approximately one month before an event or promotion. Sales Promotions: To promote the individual sales promotions, outlined further on, we suggest coupling 15-second, promotion-specific spots with the existing standard 15-second spot. These additional 15-second spots may be run on the same schedule as the standard ads, during a set time period depending upon the particular promotional schedule. Non-traditional Media: In addition to the media outlined above, we suggest using non-traditional media which will be viewed by the target market. Though there is a nearly infinite amount of possibilities for these media, we have outlined three particular examples below: 1. We suggest that Google utilize social media such as Facebook to promote individual aspects of the campaign. Fan pages and status applications may be incorporated with many aspects of the campaign, especially the buzz campaign, which is illustrated further on. 2. We recommend setting up live streaming Chat Centers between metro and subway stations in the United States. Using webcams, televisions and an internet connection, these displays may illustrate to viewers the power and simplicity of Google

26 Voice and Video Chat. These may be set-up in major stations in Chicago, New York and Washington D.C. Depending upon the success of the displays, it is very simple to expand to other locations across the country. 3. To promote golf-related campaign efforts, Google could produce custom hole-flags to distribute amongst golf courses throughout the United States. Though inexpensive, this is a very targeted method for promoting specific events and promotions to the target market. Google Voice and Video Chat is a hole-in-one! Integrated Marketing Communications Tactics Advertising Tactics: To portray to the target market that Google voice and Video Chat is the easy alternative in the communication technology field, we recommend that the print and television ads reflect the target s frustration with their current technology. While portraying the current technology as frustrating, Google voice and Video chat May be presented as simple and reliable. Print: We recommend that the print advertisments use simple hero shots of broken technology. The technology will clearly be broken in frustration by whom is assumed to be the target market. The advertisments will remain consistent throughout the media, however modifications may be made to those that will run in Golf Digest to promote the sponsored event and sweepstakes sales promotions of the campaign. 8.5 x 11, Four-color printed advertisment with full production bleed: Page 19

27 Page 20 Television: We recomend that the television advertisments be done in a similar fashion of the print ads. The short, 15-second spots may be composed of quick cuts of people breaking their technology in frustration. After the quick shots of broken technology end, a voice-over will announce Google voice and Video Chat and include details about how easy the program is to use as well as additional details about incorporating it into Google Apps for small bussinesses. During certain promotional periods in the campaign, additional 15-second spots may be added, including information about sponsored events, sweepstakes, issue advocation and so on. 15-second television spot storyboard:

28 Public Relations Tactics: 1. As the primary public relations event-marketing effort of the campaign, we recommend sponsoring one event in the PGA Tour. Because a large amount of golf-players falls into the target market, the PGA tour is a prime event to sponsor to communicate with the target. We suggest sponsoring the event in the final quarter of the campaign schedule. This will allow ample time to promote the event and the promotions specific to the event. Sponsoring this event could provide Google with many opportunities for promotion as well as issue advoation efforts, such as those outlined further on. 2. As a product-highlighting public relations effort, we recommend donating hardware and software to select non-profit nursing homes across the country.in addition to providing a perfect opportunity for Google to assist a good cause, it also allows Google to directly expose a portion of the target market to the software. Because a number of the target market have aging parents and family members, with proper instruction they will soon begin contacting each other through the newly provided technology. 3. We suggest that Google team up with 911 Cell Phone Bank ( ) to support donation of old cell phones for emergency use. This organization provides an interesting way of recycling one s old technology for the new and more effective Google Voice and Video Chat. We recommend that Google partner with the Phone Bank to set up donation centers at the potentially sponsored PGA Tour event. Sales promotions Tactics: 1. To recruit non-users to the program, current users will be asked to bring friends to install and chat with them. If a user successfully invites five friends, they will be able to choose from a list of small gifts, such as wine-tools or customized mousepads, as a thankyou. This promotion will run for approximately three months during the last quarter of the campaign, after the majority of our target market has either downloaded the product, or is at least aware of it. 2. To stimulate trial in the target market, we recommend that anyone who downloads the software be entered into a sweepstakes for an all-expense paid trip to the Google-sponsored PGA tour event. This sweepstakes will be incorporated into, and run simultaneously, with the advertisments for the Google-sponsored event. 3. To promote Google Voice and Video Chat while also promoting the company as a whole, we reccomend that Google offer a free webcam for each new Small-Business Google Apps account started during the promotional period. By offering the webcam, potential users are offered a reward for switching their business to Google, as well as having the capabilities to use Google voice and Video Chat. 4. To stimulate downloads of Google Voice and Video Chat while also promoting Page 21

29 Page 22 Google Apps for small businesses, we recomend that Google offer five additional gigabites of space for the google account of each employee that signs up for Google Voice and Video Chat. This will help ensure that the complimentary webcams are put to use with Google s product. Support Media Tactics: 1. As a supplement to the print and televeision ads showcasing our target s frustration with their communication technology, we reccomend that Google begin a buzz-marketing campaign based around a Youtube channel. At the end of each 15-second television spot, viewers could be asked to upload their own videos of their communication-technology-induced frustration for a chance to be shown in the national campaign. This could be a fun and interesting place for people to view other s videos and upload their own. Involving the viewer by showcasing their video in future television spots will also increase viewer interaction in the campaign. 2. As a supplement to the public relations work involving the 911 Cell Phone Bank, Google could begin advertising through other 911 Cell Phone Bank events and on the website. ( Being associated with such issue advocation could bring a positive light onto the campaign as a whole. The audience of the 911 Cell Phone Bank are also looking to giveaway old cell phones, which perhaps opens up an opportunity for considering a new communication technology. Plan for Measurement and Evaluation Before beginning the campaign, in order to assure that the concept is viable to the target market, researchers could first use concept testing. In focus groups, researchers could show campaign themes and ideas to a small group of men representing the target market. Through these focus groups, researchers could judge target market receptiveness to the positioning idea that Google Voice and Video Chat is easy and convenient to use. To follow the concept testing, researchers could use copy testing by showing the focus groups the rough ads and storyboard ads that the creatives had made. Once confident that the campaign theme and positioning appealed to the target market, the primary method of measuring progress of marketing and communication objectives could be through concurrent and post-testing. Concurrent testing will allow the agency to tweak the campaign as it progresses, in order to optimize results. Through post-testing, researchers can then evaluate the behavioral and communication effects of IMC and especially the advertising campaign. To accomplish the marketing objective of increasing trial by 10 percent in the target market, researchers could measure the market penetration in two ways. First, researchers could track increase in downloads each month by males ages

30 Google Voice and Video chat users provide this information when registering for a Google account. Second, in order to get better data that applies only to late technology adopting males in the age group, researchers could utilize surveys. The surveys could be distributed through mall-intercepts and through phone calls to households. The surveys could include questions that established the technology adoption patterns of our target market, so that measurements could not include data from innovators, early adopters, etc. Researchers could then record the percent of the target market that said they had downloaded Google Voice and Video Chat that month. Both of these methods could involve monthly data collection, for 12 months. Another marketing objective was to retain at least 20 percent of users in the target market for at least three months after the initial free trial period ends. To measure this, Google could use analytics based on the individual accounts. To take advantage of this particular set of users, Google could also survey those that are still using the product as paid communication to find out what marketing efforts worked for them. A primary communication objective was to increase product awareness in the target group by 20 percent. To measure this, researchers could utilize surveys with our target market. Researchers could show the Google Voice and Video Chat name, logo, and interface, along with that of Skype, other VOIP competitors, and a few invented VOIP products. Researchers could then measure the monthly increase in recognition of the Google Voice and Video Chat product for 12 months. The surveys could be administered in mall intercepts and in phone interviews with randomly selected households. Another communication objective is to increase the percentage of the target market that includes Google Voice and Video chat in a top-of-mind evoked set of communication technology by 18 percent. In order to track this number, researchers could use focus groups. In the focus groups, researchers could ask the male late technology adopters between 25 and 44 which products they considered using when choosing a method of communication. Through these focus groups, researchers could gauge the success of our campaign ideas. Page 23

31 Place-saver for Appendices tab

32 References Yahoo! Finance. Google Inc. Profile. 24 September Yahoo! Finance. 26 September 2010 < Armour, Stephanie. Generation Y: They ve arrived at work with a new attitude. 6 November October Boutin, Paul. Six Things Google s Free Phone Service Can t Do (and One It Does Very Well). 27 August September Corner, Stuart. 95 percent of VoIP traffic on the net is Skype. 10 December September 2010 < Gilbertson, Scott. Google Chases Skype With New Gmail Video Chat. November September 2010 < gmail_video_chat/>. Google. Call Phones from Gmail October 2010 < compare.html>. Corporate Information Google. 23 September 2010 < corporate/>. More Google Products October 2010 < Green, Robert. Google s Voice. 23 September < GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?SiteName=News&ArticleId=N S AheadOfTheCurve>. Kane, Stephanie. Generation Y. 30 September 2010 < practicetips/a/generationy.htm>. Kim, Ryan. Millennials Rely on Wi-Fi to Maintain Relationships. 20 September October 2010 < Millward Brown Optimor. BrandZ Top Report. 28 April September 2010 < Report.sflb.ashx>. Nielsen Claritas. Lifestyle Segmentation CLR Search. 22 September 2010 < clrsearch.com/rss/findmycrowd>. Nielsen. Internet User Profile By Demographics IT Facts. 20 September 2010 < Parker, Philip M. The Outlook for Peer-To-Peer VoIP Software in the United States. Singapore: ICON Group International, Inc., Purdue University. ENTP Myers Briggs Personality Type Indicator ENTP. 21 September 2010 < Page 24

33 Page 25 Shane, Scott. Recession is Over, But No Recovery Yet for Small Business Economy. October Small Business Trends. 11 October 2010 < Taylor, James and Wendy Wang. The Fading Glory of the Television and Telephone. 19 August Pew Research Center. 6 October 2010 < Thormahlen, Casey. IBISWorld Industry Report 51331a - Voices boom: The industry is developing into a mainstream telecommunications service. June Yankee Group. IT Facts IT Facts. 26 September 2010 < category/voip>. Gillard, Sharlett. Adopter Categories and Characteristics йил 22-October < informingscience.org/proceedings/insite2004/107gilla.pdf>. Pew Research Center. Interactive Graphic: Demographic Portrait of Four Generations йил 23-October. Strategic Business Insights. VALS Types йил 22-October < strategicbusinessinsights.com/vals/ustypes.shtml>. Networks. Comcast Spotlight. Web. 04 Dec < networks>.

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