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