google fiber
Post on 13-Apr-2017
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Cade McGary, Ryan Lynch, Dan Coenen, Hayden Carter
Google fiber
Not enough people in Provo are signing up for Gigabit internet.
How do you get people off of Free? In this Strategy we will demonstrate what Google Fiber
needs to do to get people to see the need for Gigabit internet speeds.
Introduction
We based our Strategy plan off of the Addiction Recovery Program
A plan to direct Families (non students) to see the need for Gigabit Internet
A plan to help students see the need of for Gigabit internet
Executive SummaryMethodology
Non Students
Students
Direct Paraphrase
“How do you get people off heroine?” - Devin Baer
Realize that Google Fiber Free does not meet current consumption
needs.
Figure Out Why Google Fiber Gigabit, Gigabit+TV.
Get Support. Peer-to-peer marketing
Maintain continued customer
satisfaction.
Build a New Life. Form
new product-based habits with Gigabit.
Introducing: The Free Google fiber Addiction Recovery Program
Realize Figure Out Why
Get Support Maintain Build A
New Life
Realize that Google Fiber Free does not meet current consumption needs.
Focus group of 8 students, 4 male and 4 female As we began the focus group everyone seemed essentially
content with the internet they were getting. They knew it wasn’t the greatest, but there wasn’t a lot of underlying pain in what they were getting out of their internet. However, as time went on and they began to list off things that would be better with faster internet speeds they started to become increasingly dissatisfied with their current internet.
We found students were willing to pay $15-20 per month for gigabit internet once they understood what it was. Apartment bill bundling was the most appealing pricing model.
Student Primary Research
Survey administered to 42 students Out of those surveyed nearly all rated high data usage
activities as their most time consuming internet activities.
78% of students were moderately to extremely likely to switch for extremely higher speeds.
61% of participants were unaware of the difference between Google Fiber offerings.
Student Primary Research Continued
60% of college students reported being regular or occasional gamers according to PEW Research Center.
Although college students have access to many settings that can accommodate gaming, including campus computer labs and dormitories, they tend to make their home the primary gaming environment.
College students love to watch TV. But instead of watching on the traditional big screen, they’re more likely to tune into movies and shows on tablets, smartphones and laptops. In fact, millennials spend 57 percent of their time watching TV on their devices.
Secondary Research on Students
What would you change about your internet service? “Speed, and that it doesn’t reboot itself” “Fixing problems of it cutting out occasionally” “The connection is really spotty when using FaceTime” “The connection. It’s horrible. It cuts out and is super
slow when you need it most.”
• Non Student Questionnaire
Consumer’s Perceptions of Google Fiber
People deal with the slower speeds until they realize how faster speeds affect their day to day life. These slow speeds are a pain point they fail to resolve. A marketing strategy that highlights the difference and drives change is necessary.
What's the Point?
Realize Figure Out Why
Get Support Maintain Build a
New Life
Figure Out Why Google fiber Gigabit
Overall Strategy College Strategy Family Strategy
“Internet as fast as your lifestyle”
Marketing that Drives Change
Youtube Ads: Target Provo residents with short ads highlighting the Gigabit difference.
Direct Mailers: Show the pain of buffering and list quantifiable support of Gigabit speeds and how they effect streaming, downloads, and videocalls.
Sponsor a booth at Roots Tech in Salt Lake City showing research speeds with gigabit internet.
Overall Tactics
BYU football demonstration: Have a race between a BYU Gigabit speed track star and a standard internet walker.
Posters that show a buffering video streaming and pristine video streaming side by side.
Homecoming week: Sponsor a true blue foam Gigabit cannon compared to a standard speed cannon.
College Marketing Strategy
Goal: Reach the 10,627 households with individuals under 18 through the Provo School District and Community Events-Easter Egg Hunt: Kids chase after candy while parents compete to catch the Google Fiber Gigabit bunny to win Gigabit Internet and TV for a year.-Read a thon: Challenge kids to read a Gigabit (1000 pages) for a fun assembly. -Souvenir Drop: At high school football games drop 5 sunglasses at standard speed and 1000 sunglasses at Gigabit speed.
Family Strategy
Strategy: Create contractual agreements with apartment complex owners and homeowners associations, in order to mandate Gigabit speeds for all residents at a discounted rate for residents, increasing overall usage, and driving up revenue for Google Fiber.
Student Strategy: Gigabit speeds for all apartment complexes
Map of apartments that have Google fiber (blue) installed or it is coming soon (pink). Only 4 complexes (as a whole) pay for the gigabit.
Basic Apartment Complex ModelGeneric Apartment Complex Model
Number of apartments: 50Tenants/apartment: 6Rate apartment pays: $70/monthRate/student/month: ≈ $12/monthProperty Owner receives: $20/month/apartmentGoogle Fiber receives: $50/month/apartment
Total: $2,500/monthBottom Line: $30,000/yr/complex
Scaleability: 65 Complexes Advertised in BYU OCH Guide
Large Complexes:
Condominiums:
Redstone Residential Management, a successful property management company, has a non-optional "Communications Fee" for its tenants of $18/month. With continuous success in the renting industry, Redstone Management demonstrates that a contractual tie to internet services via the property does not conflict with tenant expectations.
Real-Life Example: Redstone Management
$30,000 x 65 BYU Off-Campus Apartment Complexes = $1,950,000/year
Google Fiber has the incentive to participate, as it drives revenue up into the millions, while property owners have the incentive to participate, because as a complex owner they will receive a cut ($12,000/yr in this generic model) for only changing contractual obligations.
Google Fiber brand is not compromised, as students stated they were willing to pay for higher speeds at a price of $15 - $20 (Student Focus Group Response). They will receive it for even less.
Scaleable Potential
The same model
Scaleable Non-Student Potential
HOA Model
Number of houses: 60HOA House Rate $60/monthHOA Receives: $5/month/houseGoogle Fiber receives: $55/house/month
Total: $3,300Bottom Line: $39,600/HOA/year
By simply changing contractual obligations, all parties benefit:
Google Fiber sees a large spike in revenue Property owners receive an increase in personal income Residents receive high-quality internet at an affordable
price. All parties benefit, and the brand is not only not compromised, but peer-to-peer marketing increases, due to increased overall usage.
Contract Changes Summary
Realize Figure Out Why
Get Support Maintain Build a
New Life
Get Support: Peer-to-peer marketing
Referral Program: Benefits and Risks
• Pervades potential markets that other forms of advertising may not reach
• No initial costs• Marketing from
peers better protects company image
• Fake referrals• Insufficient referral-
to-contract ratio to justify lost revenue
Benefits
Risks
Promoter Discount
Contractor Discount
Discount for
Referral
Google fiber Gigabit Referral Program
Google fiber Gigabit customers can refer at least five friends by email or through Facebook to receive one free month of Gigabit internet
Google fiber Gigabit customers will receive one free month of Gigabit internet for each friend that signs a one-year contract
Each friend that is referred will receive a 50% discount on the first three months of their one-year contract
Zero friends accept One friend accepts Five friends
acceptRevenue lost to
Promoter Discount ($70) ($70) ($70)
Revenue lost to Contractor Discount $0 ($70) ($350)
Revenue lost to Referred Friend
Discount$0 ($105) ($525)
First year revenue from one-year
contract(s)$0 $840 $4200
Net Revenue ($70) $595 $3255
Referral-to-contract ratio needed for net
positive revenueN/A 42.5:1 46.5:1
Google fiber Gigabit Referral Program
Ad campaigns optimized to reach the most people saw a 70% higher return on investment than those that did not.
99% of people who saw a Facebook ad, and then bought a product in the store, didn’t click on the ad.
Local Advertising Campaign
Realize Figure Out Why
Get Support Maintain Build a
New Life
Maintain continued customer satisfaction.
• People need to see that there is a need for 1 Gig Internet
• Most people don't need that much internet
• How does Google Create that Need?
Creating a Need
"If you aren't pirating movies and music all day or hosting your own media server, you'll likely not even notice the difference" ProvoBuzz.com
Demonstrate that 1 gig is a need and not a want
Continue to create a Google environment In Provo
Internal Focus Plan
The US invented the Internet, but only ranks eighth in the world in terms of access speeds. Google Fiber hopes to change that" Google Fiber's Jenna
Wandres
In connection with the Provo families, they need to see that 1 gig is worth the money. As the young families in Provo continue to grow more and more kids will be using technology with their schooling.
The Why behind the process
89 percent of high schools students have access to Internet-connected smart phones, while 50 percent of students in grades 3 through 5 have access to the same type of devices. (Riedel 10 Major Technology Trends)
Sixty percent of students are using mobile devices for anytime research, 43 percent for educational games and 40 percent for collaboration with their peers. Thirty-three percent of students surveyed use mobile devices for reminders and alerts related to their academic lives, 24 percent for taking photos of their assignments, and 18 percent for in-class polling. (Riedel 10 Major Technology Trends)
As the trend of technology increases, the need for faster internet will become more and more apparent. For the families as well as the students, the 1 gig internet plan is the option to carry them forward with the trend. As Google Fiber shows the need of faster internet with the increase of technology through events and other activities, the community will see the need.
Seeing the Need
Realize Figure Out Why
Get Support Maintain Build a
New Life
Live the #Fiberlife
Internet as fast as your lifestyle #fiberlife
The reasons for changing are 1000 to 1 #fiberlife
Once you change, you can’t live without it #fiberlife
#Fiberlife
1. Google Fiber Info Events2. Contracted Gigabit Speeds for Apartments/HOAs3. Gigabit Referral program (Peer-to-peer marketing)4. Facebook Local Advertising Campaign
Summary of Strategies
http://provo.edu/statistical-reports/ https://www.sandvine.com/downloads/gene
ral/global-internet-phenomena/2014/2h-2014-global-internet-phenomena-report.pdf
http://provo.edu/provo-foundation/ http://www.city-data.com/city/Austin-Texas.
html#ixzz40OFmetVF
Read more: http://www.city-data.com/city/Kansas-City-Missouri.html#ixzz40OG2lQrQ
http://quickfacts.census.gov/qfd/states/49/4962470.html
http://www.entrepreneur.com/article/241953
https://thejournal.com/articles/2014/02/03/10-major-technology-trends-in-education.aspx
https://fiber.google.com/cities/provo/apartments/neighborhoods/?neighborhood=all neighborhoods
http://www.fastcompany.com/3036659/elasticity/lessons-from-googles-first-rollout-of-google-fiber
http://www.fastcompany.com/3036659/elasticity/lessons-from-googles-first-rollout-of-google-fiber
http://www.fastcompany.com/3036659/elasticity/lessons-from-googles-first-rollout-of-google-fiber
http://www.foxnews.com/tech/2014/01/24/google-fiber-why-need-to-get-online-100-times-faster.html
http://www.wsj.com/articles/the-future-of-the-internet-is-flow-1443796858
http://www.pcworld.com/article/260013/google_fiber_pros_and_cons.html
http://www.pcmech.com/article/google-fiber-worth-hype/
http://www.city-data.com/city/Provo-Utah.html
https://www.facebook.com/business/a/local-awareness-ads
http://maps2.utahcounty.gov/ParcelMap/ParcelMap.html
http://maps2.utahcountyonline.org/PropertyNotification/PropertyNotification.htm
https://fiber.google.com/about/ http://och.byu.edu/
Sources:
Realize that Google Fiber Free does not meet current consumption
needs.
Figure Out Why Google Fiber Gigabit, Gigabit+TV.
Get Support. Peer-to-peer marketing
Maintain continued customer
satisfaction.
Build a New Life. Form
new product-based habits with Gigabit.
The Free Google fiber Addiction Recovery Program
#fiberlife
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