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Google marketing case

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Google, Google marketing case, Google financials,

Google, Google marketing case, Google financials,

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  • 1.  
  • 2. Problem Statement
    • Google’s future growth strategy?
    • How is Google going to deal with growing competition?
    • How is Google going to manage innovation in the future?
  • 3. Google Inc.
    • Mission:
    • Organize the world's information and make it universally accessible and useful.
    • Google Inc. – Founded 1998
      • Sergey Brin and Larry Page
      • PageRank
    • IPO in August 2004
  • 4. Situation Analysis
    • Industry
      • Massive internet industry with many competitors
      • Major competitors include Yahoo!, MSN, and eBay—all well known internet portals.
      • Huge opportunity for Google by offering paid listings and advertisement opportunities
    • Google – Q3 2005
      • 37% of U.S. search traffic
      • 68% of International search traffic
      • 60% of U.S. search-related revenue
  • 5. Core Competence
    • PageRank technology to index information based upon relevance
    • Google’s brand strength
    • Google’s innovative culture and employees
  • 6. Business Model
    • Two initial opportunities for generating revenue:
      • Search services
      • Advertising
    • Advertising products that generate majority of revenues:
      • Google AdWords
      • Google AdSense
    • Business solutions starting to grow:
      • Google Apps provide powerful tools for organizations
      • Google Search Appliance
    • Unconventional approaches for managing innovation:
      • New areas are explored, and ideas are prototyped
  • 7. Target Market
    • Advertisers
      • “ Google AdWords” drives qualified traffic to advertisers’ sites
    • Site Owners
      • “ Google AdSense” delivers ads targeted to relevant search results on publishing partners’ sites.
    • Businesses
      • “ Google Apps” provides simple, powerful tools for organizations without the usual hassle and cost.
      • Google Search Appliance is a scalable and secure appliance that delivers accurate search results across intranets.
  • 8. Products – Internet Customers
  • 9. Products – Business Solutions
  • 10. Pricing
    • Revenue is dependent on four factors:
      • Listing’s coverage rate
      • Click-through rate
      • Average cost per click
      • Revenue split (sharing)
    • In late 2003, cost per click (CPC):
      • Overture’s average estimated to be $0.40
      • Google’s average was $0.30
  • 11. Place & Promotion
    • Predominantly web based applications, tools, and services
    • Some downloadable desktop products like Picasa, Google Earth, Google Toolbar, and Web accelerator
    • Word of mouth from satisfied users
    • Cross-promotion strategy in some areas
  • 12. Strengths
    • The most efficient search engine on the Internet
    • Brand equity - most recognized brand of 2003
    • Default search engine for many
    • Innovative culture
    • Comprehensive product mix
  • 13. Weaknesses
    • Eccentric practices confuse and anger investors
    • Produces less relevant hits than subject-specific subscription databases
    • Poor product marketing
    • Not focusing core competency on core customers - advertisers
  • 14. Opportunities
    • Computer literacy is on the rise
    • U.S trend towards telecommuting and at-home-businesses
    • Increasing demand for information
    • International market
    • Expand profits with diversification
  • 15. Threats
    • Legal challenges
    • Specialized search engines (Gale, Lexis-Nexis, ProQuest)
    • Multi industry competition
    • Click fraud
  • 16. Main Competitor – Yahoo! Inc.
    • Founded in February 1994 by David Filo and Jerry Yang
    • Acronym “Yet Another Hierarchical Officious Oracle”
    • Reached 1 millionth hit in fall of 1994
    • March 1995, Filo and Yang incorporated Yahoo!
    • IPO in April 1996 with 49 employees
    • Yahoo! now services more than 345 million users
  • 17. Yahoo!
    • Google’s PageRank software used by Yahoo!
    • $5.3 billion and has 300 million monthly visitors
    • Offers many current products that rival Google’s
    • Ranks lower in market share compared to Google
    • Yahoo! is a portal, Google is not
  • 18. SPM – Google Inc. (in millions)
  • 19. Alternative 1: Market Penetration
    • Improve search engines
    • Partnerships to increase exposure
      • Higher number of paid listings (CPCs)
      • Higher CPC rates
    • Positives
      • Capitalize on core competencies in a known market
    • Negatives
      • Google’s large market share limits growth
  • 20. Alternative 2: Market Development
    • Partner or acquire other companies to enter new markets
    • License search engine to desktop applications
    • Positives
      • Additional areas for growth
    • Negatives
      • How to monetize?
  • 21. Alternative 3: Diversification
    • Portal – i Google
    • E-commerce
    • “ Web-ized” desktop applications
    • Positive
      • New markets for growing core products
    • Negative
      • New products = high risk
      • Could hurt Google’s reputation
  • 22. Recommendation: Integrated Strategy
    • Integrate core competencies into new markets and products without deviating from the mission which increases its revenue through search engine and also through Ads.
    • Positive
      • Increased exposure of core products
      • Utilize existing paid listing model
    • Negative
      • New product = risks
      • Over-exposure or under-performance
  • 23. Got We’ve got
  • 24. Google Today
    • “ We’re not competing with newspapers , we’re not competing with television stations , and we’re not competing with the Viacoms of the world, we are trying to partner with them. ”
    • Eric E. Schmidt, CEO Google
    • Business Week Magazine 2007
  • 25. Google Today
    • Offers many new products
      • Google Documents
      • Images, videos, news, maps, mail, calendar, blogger, orkut, products
    • New initiatives:
      • Acquired YouTube for $1.65 billion in late 2006
      • Acquired DoubleClick for $3.1 billion in April 2007—offers more marketing and advertising opportunities
      • Google OpenSocial code (LinkedIn, Myspace and more)
      • Google Open Handset Alliance (ANDROID)
  • 26. Google Today
    • Partnerships :
      • EchoStar and Astound Cable on a TV Ads
      • Clear Channel and New support for Google AdSense for radio ads
      • Working with Salesforce.com to give companies better tools to build their business online .
      • Partnered with Four US states (CA, Utha, AZ, Va) in bringing all the government web sites under one roof
  • 27. Google Today Source: