2. 2
DAVID MELLA
Economics
JOHN KOELLIKER
Information Systems
NICK KERR JIMMY GILLESPIE
Accounting
LAUREN MORRIS
MarketingInformation Systems
• Intern with the
Google Community
Leaders Program
• Co-founder of Kore
Baseball Products
• Future Uber intern
• Experience with
small businesses
such as ōEvent and
Prodigix Software
• Knowledge of
networking and
routing technologies
• Experience with
technology startups
and venture capital
• Future intern at
Capital Group
Companies
• Nationally ranked
spikeball player
• Social media and
marketing intern at
a nonprofit
• Future intern at
Sorenson
Advertising
• Aspiring economist
• Experience with
technology startups
such as SHOUT
Gameplay & SEBO
Marketing
MEET OUR TEAM
4. 4
EXECUTIVE SUMMARY
THE PROBLEM OUR SOLUTION
KEY FACTORS OF THE PROBLEM - Google Fiber, despite a widely
known and well-liked brand image, has had trouble converting Provo
customers from the free version of Google Fiber to the paid, Gigabit-speed
tiers. We’ve identified three main factors that contribute to this problem: (1)
a lack of awareness of the different tiers that Google Fiber offers, (2) low
rates of customers who have actually experienced Gigabit speeds and who
would know what that means for them, and (3) a low perceived value of the
product when compared to the price or competing options.
COMPONENTS OF A SUCCESSFUL SOLUTION - Any successful
solution should directly address the three key factors mentioned above. In
addition, a successful solution should also have the following qualities: (1)
Delight the customer and go above and beyond their expectations; (2)
Maintain the integrity of Google’s brand; (3) Scale to other communities
and markets; and (4) Put the needs of the customer first. These
components will ensure that Google Fiber not only increases its revenue in
the short run, but also creates a sustainable business model that will
continue to grow for years to come.
STRATEGY OVERVIEW - Our strategy is built on the foundation of
resolving the three key factors of Google’s problem: low awareness, lack of
experience, and insufficient perceived value. Our strategy will take a
customized approach to two main market segments, which are small
businesses and residential customers. Introducing: The Gigabit Club.
GIGABIT CLUB FOR SMALL BUSINESSES - The Gigabit Club seeks to
provide enormous value for small businesses while simultaneously
improving awareness of Google Fiber’s paid tiers. Small business will be
provided with Gigabit internet speed and high-speed AC routers to provide
an excellent experience to their clients who take advantage of their free
wireless internet. Gigabit Club mentors will assist small business owners
an getting the most out of their high-speed internet.
GIGABIT CLUB FOR RESIDENTS - The initiative to provide Gigabit
speeds to popular small businesses will stimulate growth in the residential
market. Residents, having tried the higher speeds, will want to bring that
experience to their homes. The Gigabit Club for residents will include
benefits that will encourage both customer adoption and customer
retention.
6. 6
Google announces that it will pick a community to install a
fiber optic network--making it the first “Gigabit Community.”
GIGABIT COMMUNITIES
The city of Provo and Google strike a deal. iProvo is purchased
for $1 on one condition--that every resident in Provo have
access to a free version of Google Fiber
PROVO - THE NEXT GIGABIT CITY
Google announces a small business package for Google Fiber;
expansion announced in SLC.
SMALL BUSINESS PRODUCT LAUNCH
Provo residents get the opportunity to have a team install
Google Fiber in their homes for a small installation fee.
SIGNUPS OPEN FOR PROVO RESIDENTS
BE THE BEST MARKETING COMPANY
A BRIEF HISTORY: GOOGLE FIBER AND PROVO
2010
2013
2014
2015
Mayor of Provo announces the arrival of Google Fiber.
7. 7
THE
PROBLEM:
8/10 people have never experienced Gigabit
speeds for themselves, and have no idea what it
would actually mean for them
Awareness
53% of people surveyed are unaware that a paid
option exists, or that their free tier offers only a
limited sample of Google Fiber’s full potential
Experience
For the customer, the perceived cost of upgrading to
Gigabit speeds are greater than the perceived value of
the upgrade. On average, consumers are only willing
to pay $26 for Gigabit speeds as they understand
them.
Perceived Value
THE PROBLEM: KEY FACTORS
Many customers are satisfied with
the limited bandwidth of the free
plan, and feel no need to upgrade to
the higher-speed, paid plan
8. 8
THE PROBLEM: AWARENESS AND EXPERIENCE
EXPERIENCE
Most customers have never experienced true Gigabit internet
speeds, and do not know what these speeds mean in the real world
Many customers who have experimented with Gigabit Google Fiber
may have experienced suboptimal speeds due to poor router
placement, old technology (e.g., not 802.11ac/n enabled), and other
factors
This suboptimal experience--or lack of any experience thereof--gives
many customers pause when deciding whether to switch to the paid
tiers of Google Fiber
Awareness
The first stage of customer adoption for any innovative product is
product awareness
Many customers in Provo are aware of the general existence of
Google Fiber, but may be unaware that there is a paid option that
offers up to 200x the speed of the free version
Google’s marketing tactics have been very conservative up to this
point; this has protected the brand image, but it may also contribute
to the lack of awareness some customers experience
Experience
9. 9
THE PROBLEM: PERCEIVED VALUE
What influences
customer
purchasing
decisions
At the root of Google Fiber’s problem is the perceived value
of its product for consumers in Provo. Though Google Fiber
has a very positive and strong brand image, the possibility of
Gigabit speeds remains an abstract concept for many
consumers. This alone does not provide enough perceived
value to offset the $70- or $130-per-month cost.
Maximizing the value-add
Brand/Image
Cost
Product
Value
Actual
Value
Perceived
Value
*This diagram shows the framework we used to brainstorm ideas and ultimately select our strategy.
We selected a strategy that addresses all areas of this framework, especially the weakest area--
perceived value.
10. 10
DELIGHT THE CUSTOMER - For Google Fiber’s long-term success, customers who make
the switch can’t be merely satisfied--they must be delighted. The solution must ensure that
each customer derives the maximum value from their purchase.
1
MAINTAIN BRAND INTEGRITY - Google has always had the intangible “Googliness” that
makes their brand so cool, so well-respected. Whatever the solution, it can’t compromise the
overall integrity of the Google brand.
2
HIGH SCALABILITY - Every location is unique in terms of market segmentation and
diversity; however, the best solution will work across all locations and across all markets.
3
PUT THE USER FIRST - Along with delighting the customer with its product, Google must
ensure that its entire value package is in the customer’s best interest. A successful solution
will avoid any predatory or shady tactics used by “the other guys.”
4
Awareness
Experience
Perceived Value
Success:
COMPONENTS OF A SUCCESSFUL SOLUTION
In addition to resolving the key issues of low product awareness, lack of experience, and insufficient perceived value, a
successful solution must also incorporate the following four Google priorities:
12. 12
SMALL
BUSINESS
RESIDENTIAL
VALUEAWARENESS EXPERIENCE
STRATEGY OVERVIEW
STRATEGY FOUNDATION - The overall goal of our strategy is to increase
customer awareness, enhance the perceived value of the product, and improve
the overall product experience. This is the foundation of our strategy.
1
SMALL BUSINESS - Small businesses will be crucial to the success of our
strategy, as they will create brand awareness while also providing an environment
for Provo residents to experience Gb speed internet.
2
RESIDENTIAL - As Provo residents become more aware of Gb speed internet
and are able to demo these faster speeds, they will be more likely to
3
GIGABIT CLUB - Our strategy of targeting small businesses and residents will
be accomplished through the Gigabit Club - an innovative, inclusive and impactful
way of experiencing Gb speed internet at an affordable price
4
13. 13
THE GIGABIT CLUB
A marketing initiative to provide a sense of community for small businesses and
residents that want to enjoy gigabit-speed internet and additional benefits.
Impactful.
Creates a social wave that will benefit Google
Fiber, small businesses, and consumers
Innovative.
Provides high-speed internet and
supports the growth of Fiberhoods
Inclusive.
All residents and businesses in a Fiber city
can participate and receive the full benefits
15. 15
Small
Business
Gigabit Club
Package &
Benefits
Competitive Price
First 50 companies to participate in the Gb Club Program and
display Gb Club logo will pay $50 for the first 3 months
Hardware
Small Business will receive a high-speed AC Router upon
signing up; router is included with year long membership in
Gb Club
Gb Speed Internet
Small business will provide Gb speeds for their employees
and for their customers
Gb Club Mentor
To show the company how to get the most out of their Fiber
experience (i.e. router placement, network configuration, etc.)
THE GIGABIT CLUB - SMALL BUSINESS OVERVIEW
Gb Club Prestige
Small businesses that join the Gb Club will receive a sticker
that can be displayed at their business to attract customers
$
16. 16
Google
Fiber
Benefits
$
Brand Awareness
Companies that join the Gb Club will display the Gb Club logo
in their business that will spread the word about the Gb Club
Resident Adoption
After experiencing Gb speed internet in various local
businesses, residents will want to adopt Gb internet at home
Provo Resident Gb Internet Experience
Residents in Provo will now have an opportunity to
experience Gb speed internet in various Provo businesses
Small Business Adoption
The initial wave of Provo businesses adopting Gb speed
internet will create a social movement that encourages other
businesses to join the Gb Club as well
THE GIGABIT CLUB - GOOGLE FIBER BENEFITS
Revenue
The Gb Club will result in many Provo Businesses adopting
the Business Package, driving revenue for Google Fiber
17. 17
THE GIGABIT CLUB - SMALL BUSINESS RISKS
RISKS
1. Router Placement
Businesses don’t place routers in optimal locations, so
customers don’t experience fast, reliable internet
2. Brand Association
Google’s brand will be associated with various local
businesses that might reflect poorly on Google’s image
3. Mentor Competence
An inexperienced or incompetent Gb Club mentor would
prevent customers from enjoying their Fiber experience
4. Product Experience
Much of the Gb speed experience and customer
satisfaction/dismay will be affected by the business and
how they offer the product to their customers
SOLUTIONS
1. Gb Club Mentor
Each business will have a Gb Club mentor that will ensure
proper configuration and setup for their Gb speed internet
2. Gb Club Welcome Packet and Mentor
Each business will receive a welcome packet and mentor
that help the business properly represent the Google brand
3. Mentor Supervisor and Training
As a part of the Gb Club Program, we recommend hiring a
Gb Club mentor supervisor that can train and help mentors
4. Hardware and Gb Club Package
Proper hardware will be provided for businesses to
experience Gb speed, and the Gb Club Package will educate
the businesses so they can better understand the product
19. 19
Residential
Gigabit Club
Package
Competitive Price
Residents will receive a discounted price of $20 per month for the first 3
months
Resident Referral Program
Residents will receive one month free for each new friend brought
signed up for the Gb club as a referral
Gb Speed Internet & Hardware
Residents will have the option to receive a USB Wireless Card and AC
Router (free after year paid/returnable if undamaged) in order to
experience gigabit speed
Gb Club Mentor
To show the resident how to get the most out of their Fiber experience
(i.e. router placement, network configuration, TB storage, etc.)
THE GIGABIT CLUB - RESIDENTIAL PLAN
Google Play Credit
Residents will receive enough credit to stream one movie per month
while in the Gigabit Club
$
20. 20
Google
Fiber
Benefits
$
Brand Enhancement
Residents that join the Gb club will have a positive experience
and will develop a stronger trust in the Google brand
Customer Retention
After experiencing Gb speed internet in ways that are
significant (e.g. streaming movies), customers are likely to
continue paying for the Gb club
Resident Adoption
The discounted price coupled with Google Play Store credit
will increase amount of residents willing to adopt
Referrals
With the referral program, many new customers will be
brought to Fiber
THE GIGABIT CLUB - GOOGLE FIBER BENEFITS
Revenue
The Gb Club will drive more traffic to the Google Play Store,
which will create additional sales for Google
21. 21
THE GIGABIT CLUB - RESIDENTIAL RISKS
EXPERIENCERISKS
1. Hiring Mentors
An undetermined cycle of demand for mentors could
potentially create a problem for HR and recruiting
2. Mentor Competence
An inexperienced or incompetent Gb Club mentor would
prevent customers from enjoying their Fiber experience
3. Trial Period
Customers might take advantage of the trial period by
using its perks without any intention of remaining a
customer after the trial is over
4. Product Experience
If the customer experiments with the trial period and does
not notice any significant improvements, they might cancel
SOLUTIONS
1. Gb Club Mentor Supervisor
A Gb Club Mentor Supervisor will be hired to manage Gb
Club Mentor recruiting, hiring, training, and onboarding
2. Mentor Supervisor and Training
As a part of the Gb Club Program, we recommend hiring a
Gb Club mentor supervisor that can train and help mentors
3. Strategic Discount
The trial period will discount the monthly payment to
$20/month for three months, which will be more than
enough to cover the costs of a customer’s trial period
4. Gb Club Mentor and Hardware
The customer will receive a USB wireless card, an AC
router, and a Gb Club Mentor to maximize their product
experience
23. 23
• Weekly events around
Provo
• Apartment complex
events to create
awareness
• Fiber Space demos
• Door-to-door sales
• Small Businesses will be
displaying the Google
Fiber Gb Club Sticker at
their business with QR
Code that links to Gb Club
link
• Residents of Provo will be
able to experience Gb
Speed internet for free in
many Provo businesses
• Customer awareness
calls to free Google Fiber
subscribers to notify them
of opportunity to
experience Gb speed
internet in many local
businesses
• Residents that benefit
from their membership in
the Gb Club will be
anxious to share their
experiences with friends
• The Resident Referral
Program that provides the
Referrer with a free month
of Gb Speed Internet for
every friend that they get
to join the Gb Club
DISTRIBUTION CHANNELS
Current Channels Small Business Gb Club Awareness Campaign Resident Referral Program
24. 24
2. LAUNCH 3. GROW 4. IMPROVE 5. ENJOY1. PREPARE
GIGABIT CLUB - IMPLEMENTATION TIMELINE
Year 1 Year 2 Year 3 Year 5Year 4
• Finalize Gb Club details (i.
e. mentor logistics,
onboarding process,
sticker design, etc.)
• Create list of target
businesses that would be
ideal candidates
• Use channels of
distribution to increase
customer awareness (e.g.
billboards, commercials,
in-store advertising)
• Finalize Gb Club details
• Begin to contact target
businesses and offer
discounted Gb Club
• Provide a mentor to
businesses to help with
router placement and
network configuration
• Begin awareness
campaign
• Initiate Resident
Referral Program
• Provide mentors to all
residents to ensure
maximized use of
gigabit speeds
• Provide continuous
assistance to
companies/ residents
in the Gb Club
• Ensure that all
participating Gb Club
businesses display
their Gb Club sticker at
their business
• Continue to onboard
companies/residents
that are interested in
joining the Gb Club
• Reflect on the first year
of Gb Club and make
plans for improvement
• Consider adding
additional benefits for
those involved with the
Gb Club including
referral discounts for
businesses and other
value-adds
• Prepare to launch the
Gb Club in other Fiber
cities
• Enjoy the benefits and
prestige associated
with the Gb Club
• Repeat the process in
other Fiber cities and
create a Gb Club
internet experience that
can be found across
the country
Small
Businesses
Residents
25. 25
Fixed Costs Cost per Resident Cost per Small Business
ESTIMATED COSTS OF STRATEGY
• Mentor supervisor
• Training materials
• 3 month trial
• AC Router & USB card
• Free movie streaming
• Cost of mentor visit
• Transportation of mentor
• Gigabit club info box
• 3 month discount
• High-speed AC router
• Info box, gigabit club cards and
stickers
• Google mentor visit (more
intensive)
• Transportation of mentor
$377.00
in additional costs over 5 year period
$43,000
per year over 5 year period
$407.00
in additional costs over 5 year period
27. 27
• Partnering with
different companies
to increase the actual
value of Gb club
membership
• Examples: Vidangel,
WatchEspn, Hotels
• Areas such a local
parks will have small
Fiber hotspots where
Gb club members
can login and access
gigabit speed
internet
• Google will select a
few home offices to
“fiberize” make a
collective video for
use in commercials
• Improves Google
image and connects
with people
• Local citizens will be
able to see on a map
exactly which of their
neighbors have
faster and how much
they pay per megabit
• Seattle example
Local Hotspots “Fiberizing” Homes City-Wide Speed TestsPartnerships
FUTURE IDEAS
28. 28
SUMMARY WALKTHROUGH
Jake saw a billboard for the
Google Fiber Gb Club and
then saw a sticker at
Starbucks. He scanned the
QR code out of curiosity and
learned more about the
residential Gb Club plan.
Awareness
Having only ever used the
free fiber plan, Jake decided
to sign up for the discounted
3 months to see if the gigabit
speed would be worth it.
Adoption
Customer Care
Jake loved the speed of the
free movie stream. He told
his neighbor about the Gb
club and received a free
month when the neighbor
signed up as well.
Growth
Jake chose to include the
new AC router and the
mentor showed him where to
put it and how to get the
fastest speeds. The mentor
also showed Jake how to
upload all of his photos
using the TB of storage.
Meet Jake
31. 31
COST ASSUMPTIONS - RESIDENTS
Residential 3 month Discount $50.00 per month 3 months $150
Gigabit Box $8 1 $8
AC Router $80.00 1 $80.00
USB card $20.00 1 $20.00
Stream Movies*** $1.00 per movie 30 $30.00
Gas per visit** $0.50 1 visit $0.50
Cost per visit* $18.67 1 visit $18.67
Cost per resident $307
*Google Mentors get paid 14$ per hour and
make 6 visits per 8 hours worked.
** Google Mentors drive 100 miles per week
with 20 MPG and $2.00 gas prices
*** Customers stream free movies 6 out of
12 months per year on average, so a total of
30 movies over 5 years.
32. 32
COST ASSUMPTIONS - SMALL BUSINESSES
Robust AC router $100.00 1 $100.00
Small Business 3 month
discount $50.00 per month 3 months $150
Gigabit Box $8 1 $8
*Gas per visit $0.50 1 visit $0.50
**Cost per visit $28.00 1 visit $28.00
Gigabit Cards and Stickers
(advertisment) $24.00 per year 5 year period $120.00
Cost per small business $407
*Google Mentors get paid 14$ per hour and make 4
visits to small businesses per 8 hours worked.
** Google Mentors drive 100 miles per week
with 20 MPG and $2.00 gas prices
33. 33
COST ASSUMPTIONS - FIXED COSTS
Mentor Supervisor $40,000.00 1 $40,000
Training Materials $3,000.00 1 $3,000
Total fixed costs $43,000
*We assume that the awareness campaign, and other tech support is included in the costs that Google Fiber
already has. These fixed costs include additional costs for our strategy besides Google Fiber’s current costs.
34. 34
COST ASSUMPTIONS - REFERRAL PROGRAM
• If we estimate that each
customer refers 1
household or business on
average, then the costs
would be be $377 for a
resident, and $507 per
business.
• Although this would
increase costs, we
estimate an increased
revenue as well.
Resident Referral Program
Year
Augmented cost of
strategy
2016 $43,000
2017 $383,576
2018 $630,572
2019 $976,554
2020 $1,391,504
$377.00
in additional costs over 5 year period
$507.00
in additional costs over 5 year period
Cost per Resident
Cost per Small Business
35. 35
More switch to Fiber More paying residents More paying businesses
BENEFITS OF STRATEGY - ESTIMATES
• With increased awareness of
google Fiber due to the gigabit
club we expect that 50% of
Provo’s 35,000 households* will
have fiber (free or paid) by
2020. (Estimate: 23% of
households in provo use Google
Fiber currently
• Compare this to our estimate
that 41% of homes will have
fiber w/out our strategy.
• We expect that 37% of Fiber
households will pay for the 70$
deal by 2020 with our strategy.
Compare this to an estimated
19% w/out the strategy.
(Estimate: 15% of current Fiber
households have $70 deal)
• We estimate that 20% of Fiber
households will get the 130$
package by 2020 compared to an
estimated 14% w/out our
strategy. (Estimate: 10% of
current Fiber households have
the $130 deal)
• Of the estimated 1,000 small
business in provo who Google
Fiber can target, we expect that
41% will pay for Fiber by 2020.
(Estimate: 10% of small
business currently use Google
Fiber)
• Compare this to and estimated
30% of small businesses who
will adopt google fiber w/out
our strategy
*info about households in provo from http://quickfacts.census.gov/qfd/states/49/4962470.html
