Marketing Management of Google Pixel in Australia

The report gives an overview of marketing management of Google Australia in purview of the mobile phone industry. The report commences with an introduction of Google, its products and the consumers. The report also conducts an analysis of the industry and the market trends and its impact on the brand of the company, Google Pixel. One can also find a PEST analysis of the mobile industry of Australia. The report also provides an insight into the competitor and the segmentation analysis. Through the segmentation analysis, one can locate the primary and the secondary market of Google Pixel. The report also puts forward a discussion on the level of involvement and the relation it bears with the decision making process. There report also presents a perpetual map that highlights the positioning of Google Pixel.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The report gives an overview of marketing management of Google Australia in purview of
the mobile phone industry. The report commences with an introduction of Google, its
products and the consumers. The report also conducts an analysis of the industry and the
market trends and its impact on the brand of the company, Google Pixel. One can also find a
PEST analysis of the mobile industry of Australia. The report also provides an insight into the
competitor and the segmentation analysis. Through the segmentation analysis, one can locate
the primary and the secondary market of Google Pixel. The report also puts forward a
discussion on the level of involvement and the relation it bears with the decision making
process. There report also presents a perpetual map that highlights the positioning of Google
Pixel.

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Table of Contents
1. Introduction............................................................................................................................3
1.1 Company:.............................................................................................................................3
1.2 Product:................................................................................................................................3
1.3 Consumers:...........................................................................................................................3
2. Industry Analysis and Market Trends....................................................................................4
3. PEST Analysis.......................................................................................................................7
4. Competitor Analysis...............................................................................................................8
5. Segmentation Analysis.........................................................................................................10
5.1 Major Market Segment......................................................................................................11
5.2 Primary and Secondary Market..........................................................................................12
6. Level of Involvement and its Relation to Decision Making Process and Implications.......12
7. Perpetual Map......................................................................................................................13
8. Conclusion:..........................................................................................................................14
References:...............................................................................................................................15

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1. Introduction
1.1 Company:
The report aims at providing an insight into the marketing management of Google
Australia in context of mobile phone industry. The company has its headquarters in Sydney.
The Google office in Australia has a compact structure comprising of collaborative spaces,
desks and the reception area, decorated with Google’s trademark colour that includes red,
blue, green and yellow (Biggs, 2018). There is an auditorium built on stairs and back dropped
by a lively moss wall that resembled square grid of the blocks that makes up the city.
1.2 Product:
The product represents the Google Pixel phone. It has a display of 5 inch and has 1.6
Hz quad core processor. The resolution of Google Pixel stands at 1080 x 1920 pixels with a 4
GB random access memory (RAM) and storage of 32 GB. The rear camera of the phone is
12.3 megapixels and has a battery capacity of 2770 mAh (Sulleyman, 2017). It is however
available in two models Pixel 2 and Pixel 2XL.
1.3 Consumers:
Google Pixel is targeted towards the student and the youth consumers. Most people
are of the view that the phone has best of camera that can even give the high-end smart
phones a run for money (consumerreports.org, 2018). The consumers however rate the
Smartphone based on handset capabilities, camera and the battery life. The handset
capabilities of Google Pixel include versatility in term performance, WLAN tethering and
performance. The Smartphone has an immense battery life up to 7 hours and is one of its

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kinds in terms of display, data and voice display. Google Pixel also ensures quality image via
its camera in terms of the resolution, colour, accuracy and the dynamic range.
2. Industry Analysis and Market Trends
Smartphone has dominated the mobile industry of Australia in the recent years. The
advancement of technology has donated advanced features to the Smartphone than before.
There has also been an increasing consumption of Smartphone and it grew at an equal pace
along with the advancements taking place in the industry. According to estimates, the users of
Smartphone would reach 3 million globally by the year 2020 (Cecere, Corrocher & Battaglia,
2015).
Figure 1: Smartphone Users in Australia from 2015 to 2022 (in millions)
Source: (statista.com, 2018)

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Australians do have an affinity for Smartphone and use them while watching other
media. They also keep them in hand at all the times while they are in office. According to the
Technology, Media and the Telecommunications Prediction Report put forward by Deloitte
in the year 2018, it is observed that Australia will surpass global trend in the usage of
Smartphone with statistics portraying 90 percent of Smartphone penetration by the end of the
year 2018(deloitte.com, 2018). However, the predictions for such penetration are expected
around 2023 for the rest of the world.
Australians also worry about too much usage of the Smart phones. According to
forecast put forward by Deloitte, Australia will exceed global prediction that predicts only 45
percent of the adult Smart phone users’ worries about too much usage of the phone
(deloitte.com, 2016). This is because the present figure stands at close to 41 percent. The
present figures also comprises of the young who worries immensely about the usage of their
Smartphone. Innovations such Artificial Intelligence (AI) chips and better connectivity and
battery life have increased the usage of the Smartphone.

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Figure 2: Percentage of Smart Phone Users Using Phones during Different Activities
Source: (Poushter, 2016)
According to the global study reports, close to two thirds of young consumers
between the age group of 18 to 24 hours have a feeling that they undertake too much usage of
their Smart phones while the adults seems happy with the phones even when they have to
constantly check their devices (smh.com.au, 2017). It was found that the percentage of the
adults addicted to their phones accounted for only 3 percent.
Australia also stands high on data usage. According to the reports put forward by the
Australian Communications and Media Authority (ACMA), the data consumption in
Australia stood at 43 percent in the year June 2017(acma.gov.au, 2016). Studies put forward

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by Deloitte however portrayed that the Australians exceed the monthly limits of the mobile
data on a regular basis. The short expectation included reduction of the broadband prices by
the renowned firms. In long term, there however exists a possibility of a population powered
by the mobile data due to presence of the unlimited data plans that enters and competes
within the market. In addition, the introduction of 5G and presence of newer technologies like
mobile wave will make fixed wireless a viable option against broadband connections and
operate in areas having lack of fiber connectivity.
The increasing demand for Smartphone led to a warm greeting of Google Pixel since
its debut with glowing reviews. The brand also earned huge acclaim that led to the sales of
1.5 million units that doubled in the year 2017 with figures going up from 1.8 percent to 2.8
percent (Poushter, 2016).
3. PEST Analysis
Political
 Liberal capitalist democracy
 Government influence on the tax policies and the
trading agreements in Australia
Economic  Largest capitalist economy dominated by service sector
 Economic growth determined by agricultural and
mining sector.
Social
 Diverse people residing in a young society
 Higher level of education
Technological  They include technological aspects like automation,
R&D activity, technology incentives and rate of the
technological change.
 Technological shifts influences quality and cost and

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leads to innovation.
Figure 3: Table Representing the PEST Analysis
Source: (Gamble, Thompson & Peteraf, 2013)
Australia received the highest ranks in terms of the political stability. The country has
a federal parliamentary democracy based on democratic values like religious tolerance and
the freedom of association and speech (James et al., 2013). Thus, the strength and stability of
the open government with an ideal tax system and competitive cost of the business provides
an ideal platform for the mobile industry to flourish. The Australian economy is the largest
mixed market economy across the world a GDP close to AUD$1.69 trillion. It ranks second
in term of the wealth per person and total wealth of Australia stood at AUD$8.9 million in
2016 (Plumb, Kent & Bishop, 2013).
The mobile industry therefore has the scope for constant economic growth under a
stable and strong financial system. Moreover, the country also offers an open market with
minimum amount of restrictions. In terms of the social factors, Australia represents a multi
faith and multicultural society of mutual respect and inclusion. It is found that there are 26.1
percent Anglicon, 26 percent Roman Catholic and 24.3 percent other Christian, 11 percent
non-Christian and 12.6 percent representing others (Bhatia, 2014). English acts as the key
language of Australia. These factors act as a boost for the growth of the mobile industry in
Australia. The country contributes immensely towards technological innovations with over
$30 billion gross expenditure. Australia also has funding programs and innumerable number
of government grants that enables businesses within the mobile industry in commercializing
and developing their Internet Protocol (IP). Some of these include Innovation Investment

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Fund (IIF), grant for the development of export market and tax incentive for the research and
development.
4. Competitor Analysis
The prime directive of Google Pixel lay in shifting the focus of the people from an
iPhone to an Android. Google phones were available in two models, Pixel and Pixel XL.
Both the iPhone and Google Pixel had great looks with special features that drew the
attention of the people thereby forcing them to take notice. Therefore, a comparative analysis
between the iPhone and the Google Pixel is drawn based on certain criterion that includes
price, color, screen, resolution, camera, Bluetooth, finger sensor, water resistance and
Random Access Memory (RAM).
Characteristics Google Pixel Apple iPhone
Price $650 $650
Color Silver, Black and Blue Black, Jet Black, Silver, Rose Gold and Gold
Screen 5 Inch Active-matrix
Organic Light-emitting
Diode (AMOLED)
4.7 Inch backlit screen with Retina HD
display
Resolution 1080 x 1920 pixels
(441 ppi)
1334 x 750 pixels (326 ppi)
Camera 8 Mega pixel (MP) 7 Megan Pixel (MP) front and 12 MP rear

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front and 12.3 MP rear
Bluetooth Version 4.2 Version 4.2
Battery 2770 mAh 1960 mAh
Finger Sensor Available Available
Water Resistance IP53 rated IP67 rated
RAM 4 GB 2 GB
Figure 4: Competitive Analysis of Google Pixel and Apple iPhone
Source: (Gibbs, 2016)
In terms of performance, Google Pixel is smooth and fast due to the optimization of
its impressive software that is also the strength of iPhone. This puts both the brands on an
even playing ground in terms of the usability, feel and performance. Google Pixel comes with
an internal storage of 32 GB or 128 GB with a slot for MicroSD. On this note, iPhone 7 adds
256 GB. For consumers with a requirement of mass storage, the Apple phone acts as an
advantage. As far as design its concerned, Google Pixel cannot match the class of iPhone that
not only has a premium build and in hand comfort but also has a lighter body and is available
in a wide range of colors. However, in terms of battery and audio capacity, Google Pixel
stands out as a winner with 1960mAh battery capacity, faster charging and a socket for
headphone. Google Pixel is also a winner in terms of display as it has 5-inch AMOLED
panel, 1920 x 1080-pixel resolution and 2.5 D protective gorilla glass that provides
exceptional view angle without any decrease in brightness. When compared in terms of

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external camera, camera testers provided a rating of 89 to Google and 86 to Apple phones
thereby resulting in draw. Nevertheless, Apple stands apart in terms of durability since
iPhone meets IP67 standards that makes it resistant to dust, water and splash compared to
Pixel that follows the basic IP 53 standards. The choice of software brings both the brands at
the level playing field with Pixel using the latest version of operating system (OS), Android
7.1 and iPhone using the latest iOS 10. The feature of price and availability makes iPhone
stand out as a brand compared to Pixel due to wider carrier options and availability.
Therefore, it is claimed that Google Pixel competes against a market leader.
5. Segmentation Analysis
5.1 Major Market Segment
Google represented a brand that aimed at attracting a larger audience towards its
products. The primary brand that led to the creation of hype has been the Smartphone series.
The company launched Google Pixel in October 2017. This Smartphone series had various
functions along with the enhanced features like better performance, design, storage, camera
quality and durability. Google segmented the target market based on the demography and the
behaviour of the consumers.
Customer Market Segment based on Demography
Demographic segmentation refers to the market segmentation based on the audience
characteristics that includes age, ethnicity, gender, race, religion, income, education,
occupations and the marital status (Hamka et al., 2014). This type of segmentation has easier
implementation and is quite useful. Google classifies the customers into two different
segments. The first segment represents the customers who belongs to higher income groups
and will remain loyal to the brand. This segment of the customers prefers the company and

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will therefore prefer the brand offered by the company. Moreover, they remain aware of the
features of the product offered and are always ready for paying a higher price. The other
segment of the classification targets consumers with middle and the higher-class income
since they remain in a position of purchasing the new product as soon as they are launched in
the market. The number of such customers is higher and they prefer in purchasing products
that gives higher quality. Thus, this type of segmentation is effective when companies like
Google aims at targeting the multiple segments at a single go.
Customer Market Segment based on Behaviour
Behavioural segmentation refers to the division of the consumers in groups based on
the attributes of loyalty, usage, knowledge, awareness, purchase patterns and locations
(Ailawadi et al., 2014). This type of segmentation allows marketers like Google in delivering
relevant messages that resonates with the target market. Thus, this segment of customers
depends on the orientation of the social acceptance. The customers belonging to this group
are mostly status and style conscious. It is obvious that the products offered by Google with
apparently be expensive that cannot be afforded by the people belonging to the lower income
groups. Therefore, people with a higher disposable income can purchase Google Pixel
thereby highlighting it as a status symbol. These consumers also believe that their purchasing
attitudes will segregate them amongst the others and enhance their confidence.
5.2 Primary and Secondary Market
Google divided its market into primary and secondary sections for targeting the
customers. The primary market represented people having affinity for the latest techniques
and always mostly prefers branded products (Berry & Schleser, 2014). They are even termed
as the premium target market. The secondary target market represents the youth who prefers

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purchasing and using the latest gadgets as a mark of fashion and style. Nevertheless, both the
segments can include customers with middle or higher income who possess an interest in the
latest techniques.
6. Level of Involvement and its Relation to Decision Making Process and Implications
According to market segmentation, the primary target market of Google represents
those remaining loyal to the brand or prefers purchasing branded products. In addition, the
customer belonging to this segment prefers high-end features in their purchased products.
This affects the decision of the company. Here, there is also an enhanced involvement of the
consumers. In these situations, an organization needs to have more focus towards
implementing better features compared to its competitive counterparts (Bloomberg, 2014). At
the same time, it is also vital for the organization to be not only creative but also innovative
thereby resulting in thereby resulting in newer products. This objective will enable the
research and development team of Google in conducting a market study for collecting more
information based on the needs and demands of the customer. This is a necessary for the
company as it helps it in developing a base for the company for making a decision about the
launching of newer series of phones according to the client needs. However, by focusing on
the customer demand and need Google can focus more on the attainment of larger customer
base. Further, it also results helps in providing better outcomes by enhancing the number of
loyal customers.
7. Perpetual Map High Price
Samsung Galaxy
Apple iPhoneGoogle Pixel

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Figure 5: Positioning Map of Google Pixel
Source: (Porter & Heppelmann, 2015)
The positioning map of Google Pixel shows the company’s presence in the higher
price and the higher quality market. The figure also shows the Samsung Galaxy, Windows
phone and Apple iPhone as the competitors of Google Pixel. This portrays that the firm
operates within a competitive environment since the rival firms remain positioned at similar
position. Google Pixel focused on the primary segment that represents consumers who
prefers branded items with high-end features regardless of the price that made the company
lay enhanced focus on quality and innovation. This resulted in positioning the firm a higher
level compared the rival firms.
Low Price
High QualityLow Price
Windows Phone

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8. Conclusion:
The report ends by throwing a light on the market segmentation of Google Pixel and
the strategy of decision making of the company. The report also provides an insight into how
Google focused on the customers who are not only brand conscious but at the same time
quality conscious. One can also find, how based on the cited venture, Google launches its
products based on the customer demands. The report also portrays how the company focused
on quality maintenance and delivery of the enhanced features. This strategy helped the
company in driving higher number of customers.

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