Pages

Subscribe


Links

Is Google stretching the limits of brand credibility with the launch of its phone?

The first Google phone which hits the market next week is actually the sum of three parts: Google software, HTC hardware and, for now, T-Mobile’s network. Trying to grasp this concept is a bit less difficult than trying to grasp what a commodity derivative is, but that still doesn’t convince me that Google’s foray into the mobile phone business is a great way to leverage its powerful brand name. In fact, I think the super-brand might be stretching the limits of what made it a super brand to begin with; a simple promise to be the best source of information on the planet. Can the brand that built its credibility on being a content provider of mind-blowing proportion also be perceived as a credible purveyor of hardware? Should the brand that’s gained undying loyalty and admiration from answer seekers everywhere try to cross the line and compete in Sony’s, Motorola’s, Panasonic’s, or even Apple’s technology space? These questions are actually similar to those addressed by Disney’s Robert Iger during a conference at which he spoke about the company’s short-lived efforts in the phone business. Consumers just couldn’t connect the magical idea of Mickey Mouse and Sleeping Beauty with telephones.

The Google brand is associated with content, not stuff. And the odd thing is that any Google phone applications that have to do with content, like music or photos or video-downloading, aren’t as fluid and intuitive to use as other mobile choices, most importantly, its assumptive major competitor, the iPhone. Just as I wouldn’t think about buying a plasma TV from NBC, or a bunch of movies from Panasonic, the jury’s out on whether Google would be top of mind when it came to buying a new mobile phone service. Don’t get me wrong. I love the Google brand. But my love is associated with being able to get answers to questions in a New York second, with being able to see my house from outer space, with being able to compare and contrast content from advertisers and information sources in the blink of an eye. The Google brand is hardwired into people’s minds as a content brand. In its attempt to move into the hardware universe, I hope it doesn’t get its brand equity wires crossed.

3 Responses to “Is Google stretching the limits of brand credibility with the launch of its phone?”

  1. dieljph Says:

    Great subject. Often brand extensions that are not consistent with the business model are causing dilution and jeopardizing the brand image.

    The only thing I would say is I think you are getting Google’s brand slightly wrong. Google is not really in the content business. Google does not only make content, Google is about searching, organising, facilitating, presenting and delivering content. Therefore if suddenly you are in the content delivery business then it makes great business sense to partner with mobile manufacturers to ensure content is delivered all the way to mobile users.
    Note as well that there is more than one manufacturer working on the Android platform so you cannot say that Google is tied up with one hardware. This is an OS similar to Symbian or Windows mobile. Plus it is based on a linux core and is open source.

    I think calling it the Google phone is a good stretch that will provide the device with instant awareness and a fast adoption curve.

    Mobile content and mobile searches is another important field where google operates.

    All in all I do think this is a great move and will provide greater growth potential to google.

    Regards,

    JPh @ brandmania – http://concept2creation.blogspot.com

  2. Allen Adamson Says:

    Fair point about Google not being in content biz- but searching content. Still brand equity not linked to hardware.
    We will see if it proves to be a growth platform for them.
    Allen

  3. GabrielRossi Says:

    Great Article Allen!

    I think Google will inevitably fall into the extension trap. Too bad because brand extensions tend to serve the company and not the customer.

    It’s amazing how the pressure from stock markets to always be growing causes good business to over extend and fail. GPhone is coming out of their core strength in cloud based software. Though a $299 phone is less viral than free search.

    Even if the brand was ‘extensible’ enough , GPhone wouldn’t necessarily be succesful against first move competition, economies of scale etc…

    My conclusion: Even the strongest brands need a family doctor!

    Cheers

    Gabriel Rossi- Brazil

Leave a Reply

You must be logged in to post a comment.