Case Study: Marketing Mix of Google Pixel 3 and Pixel 3 XL Smartphones

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Case Study
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This case study provides a comprehensive analysis of the marketing strategies employed for Google Pixel 3 and Pixel 3 XL smartphones within the Australian market. It begins by introducing the concept of value-driven marketing, emphasizing how Google aims to create and deliver value to its target consumers. The study then delves into the integrated marketing mix, examining the product features (such as camera capabilities and software), pricing strategies (niche pricing), distribution channels (online and retail), and promotional activities. The analysis covers the competitive landscape, particularly against rivals like Apple and Samsung, and how Google positions its products to gain a competitive advantage. The case study explores consumer purchase decisions and concludes with a summary of the key marketing concepts and strategies discussed. The study is based on secondary research from various sources and highlights the importance of understanding the marketing environment and target market for effective product promotion.
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Running head: PIXEL 3 AND PIXEL 3 XL MARKETING MIX
Pixel 3 and Pixel 3 XL Marketing Mix
Name of the Student
Name of the University
Author Notes:
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1PIXEL 3 AND PIXEL 3 XL MARKETING MIX
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Value driven Marketing...............................................................................................................2
Integrated Marketing Mix............................................................................................................4
Product.....................................................................................................................................4
Price.........................................................................................................................................5
Place.........................................................................................................................................6
Promotion................................................................................................................................7
Consumer Purchase decision.......................................................................................................8
Conclusion.......................................................................................................................................8
REFERENCES..............................................................................................................................10
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2PIXEL 3 AND PIXEL 3 XL MARKETING MIX
Introduction
The popularity of smartphones across all the age group have resulted in competition in
the smartphone industry. The smartphone segment has been subject to high degree of
competition over the past decade (Dwivedi 2015). The market has witnessed the development of
various products at differentiated price segments. The biggest players in the Smartphone industry
includes the likes of Apple, Samsung and One Plus (Cecere, Corrocher and Battaglia 2015). It
has been found that the most popular operating system other than that the iOS is Android. Thus,
the creators of android that is, Google have also been able to capture considerable portion of the
market. The entered the market with the Google Nexus (Kaur and Sharma 2014). The company
has modified over time and have been responsible for the creation of the latest and greatest Pixel
line of smartphones. The latter has been targeting the niche customers as a result and have been
carrying out value driven marketing. The aim of the paper is to develop a marketing for the
operation and marketing of Google Pixel 3 and the Google Pixel 3 XL.
Discussion
Value driven Marketing
It has been found out that rationality and actual need for consumption or purchase might
not be the only reason why people purchase a product. Value proposition is one of the key
aspects that the companies needs to focus on while supplying or creating a product in the highly
competitive business environment. Value proposition refers to the value that the customer
community derives from consumption or purchase of a product or service (Baldassarre et al.
2017). Hence, it has been one of the main components that has been researched over the years to
determine the most efficient way to deliver products to the customer community. It is perceived
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that every customer is a utilitarian and hence it is the main goal of every company regardless of
the nature of operation of the latter to provide utility to the customers (Andajani 2015). There are
various types of utility that the customers are subject to. Form, time, place and ownership utility
are the different types of utility that the customer can be on the receiving end of (Williamson, T.,
Imbroscio, D. and Alperovitz 2014).
The industry is characterised by consumers who are deemed to un-loyal to a product or
service provider. Although it is the utility that determines the degree of satisfaction of the
consumers, however, it comes down to the nature of relationship that the companies have been
able to build with the consumer community that determines the success of the company in
retaining and catering to a group of customers. Value based marketing is a concept that is
characterised by a process that involves creating, communicating and providing utility or value
to the customers (Gummerus 2013). The purpose of the latter concept is to build relationships
with the consumer community that is deemed to be strong (Kalajdzic and Zabkar 2015). It
involves building and managing relations with the consumers as a result of which the company
can cater to the needs of the external as well as that of the external stakeholders of the company.
Google Pixel 3 and Google Pixel 3 XL is to provide value to the consumers. The effective
marketers at Google have been able to create a base of value by strategic value creation
technique. The marker of the company have to first define the target customers and the market
and understand the value proposition of the customers by carrying out effective market research.
After the value proposition of the customers has been determined, it is the role of the markers
and the company as a whole to deliver value to the customers. It is followed by monitoring the
value that the identified customer base is receiving from the products or services of the company.
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4PIXEL 3 AND PIXEL 3 XL MARKETING MIX
The same has been followed by Google as a result of which they have been able to maintain a
base of customers based on the value they provide to the customers.
Integrated Marketing Mix
It can be said that the integrated marketing mix is the base of operation of every business
that deals with products and services (Naeem, Bilal and Naz 2013). It is the assimilation of
elements such as the price of the product or service, the product strategy, the place and the
promotion mix (Huang and Sarigöllü 2014). These factors have a combined impact that they
make on the marketing tactic that is taken by a company as a whole. The following section will
be used to enumerate the marketing mix that was devised by Google Inc. in order to effectively
market the Google Pixel 3 and Google Pixel 3 XL.
Product
Google believes in providing its consumers with the best possible products by using
which the consumers can derive utility. With established products such as Apple’s iPhone X, the
Samsung Galaxy S10+ and the One Plus 6T, the competition that will be experienced by the
Google Pixel 3 is evident (Forbes.com 2019). The smartphone industry has been subject to high
degree of competition as a result of which the big players in the industry come up with improved
versions of smartphones every year. The recent trend in the market has witnesses a considerable
increase in the size of the displays of the screens (Rädle et al. 2014). Furthermore, the primary
memory that is the RAM and the secondary memory offered by the companies has been rising.
Furthermore, new application being constantly developed, the software requirements have
considerably climbed. The latter resulted in creation of newer and more stable operating systems.
Both the Google Pixel 3 and the Google Pixel 3 XL have incorporated the same into their
smartphones. The smartphones run the latest version of Android that is Android 9 Pie and the
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5PIXEL 3 AND PIXEL 3 XL MARKETING MIX
consumers are assured that they will be on the receiving end of every OS and software that will
be released by the company (Google.com 2019). The software industry has seen a recent trend in
rise of ‘Notches’ in the smartphones that help to increase the amount of screen space that the
customers are subject to. The same has been incorporated into the Google Pixel 3 XL, the display
and secondary memory capacity of which is higher than that of the Google Pixel 3 (Google.com
2019). One of the most important features that people look in smartphones currently, other than
the performance and smooth hindrance free usage is the Camera. The camera of both the Google
Pixel 3 and the Google Pixel 3 XL is one of the most noticeable features found on the device.
The device incorporates as dual 12.2-megapixel camera in the rear as well as two 8-megapixel
dual cameras for the selfies (Google.com 2019). The camera has been accredited as the best
camera in that is currently present in the market (Express.co.uk 2019). The camera that is
provided in the Google Pixel 3 and the Google Pixel 3 XL are the best the line cameras equipped
with a notable feature known as the night mode, were the user can take high quality images due
to the hardware embedded into the powerful camera of the phone (Google.com 2019).
Furthermore, seamless performance is provided in the smartphones with the help of the Sock or
pure Android experience which also has a feature known as Google Daydream VR (Google.com
2019). This allows the users to use Android as the way it has been created by Google. Hence, the
Google Pixel 3 and Google Pixel 3 XL are considered complete package of a smartphone.
Price
The pricing strategy that is carried out by the company is similar to that of a niche pricing
strategy. The pricing strategy that is used by a company determines one of the main criterions
which determines the success of a company in catering to the needs of the consumer community
(Li, Xu and Li 2013). The price at which the products are offered to the consumers also
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determine the efficacy of companies in attracting customer towards the direction of their
company. It can be said that the price at which a product is offered determines the segmentation
that is carried out by the company. It is known that the spending capacity of people in a market
differs. While a penetration pricing strategy can be used to attract the mass market, a niche
pricing strategy is used to attract the cream customers towards the company. The Google Pixel 3
and Google Pixel 3 XL fall in the niche price segments and they are positioned in the market as
flagship devices or top of the line products. Thus, the company faces stiff competition from
iPhone, Galaxy S10+ and the One Plus 6T. These companies offer their products in similar price
segments. However, the value proposition of Google Pixel 3 and Google Pixel 3 XL are said to
be perfectly aligned to help Google achieve competitive advantage in the market that they are
operating. The price is one of the most notable factors that are associated with the concerned
market segment (Wilkinson 2013). Even if the consumers of the segment are not price sensitive,
it is the aim of a rational consumer to curtail their spending on a smartphone that will come in
the market with a new version every year. Thus, the Google Pixel 3 and Google Pixel 3 XL are
offered to the consumers at prices that are lower than that of the iPhone and the Samsung Galaxy
S10+. By offering the products at lower price points, yet which deliver higher value to the
consumers gives the company an ability to gain competitive even in the market were the
consumers are willing to pay huge sums of money to pay for the flagship device.
Place
Place refers to the physical place and the channel through which a company offers their
products in the market (Fan, Lau and Zhao 2015). There are different forms of distribution
channels that exists. Products can be distributed in the market directly from the manufacturer to
the consumer, it can be from the manufacturer to the retailer and then to the consumers or it can
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go through a channel that involves transfer of ownership of the products from the manufacturer
to the wholesaler to the retailer and finally to the consumers (Qiang et al. 2013). This can be
further segregated into marketing channels that involves selling the product directly to the
consumers, selling through intermediaries, selling the products through dual distribution
strategies and the selling through a reverse channel (Verhoef, Kannan and Inman 2015). Exertis
has been recognised as a company who have formulated a partnership with Google in aim of
supplying the products to the consumers. All of the aforementioned tactics of distribution are
carried out by the company in catering to the needs of the consumers apart from the channel that
incorporates the wholesalers. Google sell their flagship phones through online third party
retailers, they have their exclusive Pixel retail outlets that sells only Google products. The
Google Pixel 3 and Google Pixel 3 XL are the main products that are marketed in exclusive retail
retailers. Google Pixel 3 and Google Pixel 3 XL are available for consumption of the customer
through all kinds of retail outlets including departmental stores and licences smartphone sellers.
Promotion
The types of promotional activities determine the success of a company in terms of
getting the awareness of the customers. The promotional tools that are used by companies in
catering to the needs of the company in terms getting the attention of the customers determine
the effectiveness of the company in gaining chances of maximising the sales (Ashraf et al. 2014).
The types of promotional tools used by the company includes tactics such as advertising through
commercial and print advertisements on newspapers, magazines and billboards and bus shelter
advertisements, direct marketing and digital marketing. The company is seen to be paying
special attention to digital marketing and marketing through social media. Social media
marketing has been recognised as one the cheapest marketing tools that a company can use to
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pitch its products to the customers. Google has dedicated social media pages on Instagram,
Facebook, Twitter, Pinterest and YouTube which helps the company in their engaging the
customers. Furthermore, Android is a medium through which the Google Pixel 3 and Google
Pixel 3 XL are marketed by the company. Google ads, Google ad sense provide the basic
marketing amenities that are needed by the company to communicate their motives to the
company.
Consumer Purchase decision
The final purchase decision that is made by the consumers determines the inflow of
revenue of the company. There are various aspects that are looked into by the consumers when
they make a purchase decision (Karimi, Papamichail and Holland 2015). As discussed above, the
value that the consumer derives from the product determines the formulation of the purchase
decision. Factors such as price of the product, the specifications and the value proposition of the
products is coupled with influence from peers and family members before arriving at the final
purchase decision. The Google Pixel 3 and Google Pixel 3 XL have cater to all the needs of the
consumers. Features such as minimal price even in the niche sectors, the features and the
customizability provided by the products, the effective marketing and the convenience that is
provided to the consumers in purchasing the products determines the effectiveness of the product
in catering to the needs of the consumers and helps them arrive at the point of purchase. Hence, it
can be said that the company are perfectly aligned towards the achievement of competitive
advantage in the market that they are operating in.
Conclusion
On a concluding note it can be said that the Google offers the Google Pixel 3 and Google
Pixel 3 XL in the market with a unique value proposition through which they aim to derive
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acceptance from the customers along with generation of a considerable amount of revenue that
will help the company in satiating the needs of the stakeholders. The latter have used an effective
marketing mix to their advantage with a product that offers value to its customers, an effective
price in the niche segment backed up with the value that is generated by the company, along with
a favourable distribution channel and effective promotional strategy. The company has been able
to incorporate the components of the marketing mix to their advantage that is supposedly aligned
to motivate the customers to arrive at their purchase decision. Even, if a great deal of competition
in the segment is faced by the company in the form of the iPhone, Galaxy S10+, One Plus and
others, they have been able to use their effective supply chain in deliver the best quality products
to the consumers that has given them an opportunity to attract maximum number of customers
through which they are likely to derive the competitive advantage in the highly competitive
market that they are operating in. It can be recommended that the company should invest in
research and development in order to come up with higher amount of innovation in the segment
that they are operating in. The company is blessed with efficacy in every functional division as
result of their brand efficacy. The latter should constantly carry out market research as that will
supposedly help them in serving the customers more effectively while proving the maximum
amount of utility that they offer to the consumer community.
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REFERENCES
Andajani, E., 2015. Understanding customer experience management in retailing. Procedia-
Social and Behavioral Sciences, 211, pp.629-633.
Arslanagic-Kalajdzic, M. and Zabkar, V., 2015. The external effect of marketing accountability
in business relationships: Exploring the role of customer perceived value. Industrial marketing
management, 46, pp.83-97.
Ashraf, M.G., Rizwan, M., Iqbal, A. and Khan, A.M., 2014. The promotional tools and
situational factors’ impact on consumer buying behaviour and sales promotion. Journal of public
administration and governance, 4(2), pp.179-201.
Baldassarre, B., Calabretta, G., Bocken, N.M.P. and Jaskiewicz, T., 2017. Bridging sustainable
business model innovation and user-driven innovation: A process for sustainable value
proposition design. Journal of Cleaner Production, 147, pp.175-186.
Cecere, G., Corrocher, N. and Battaglia, R.D., 2015. Innovation and competition in the
smartphone industry: Is there a dominant design?. Telecommunications Policy, 39(3-4), pp.162-
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Dwivedi, A., 2015. A higher-order model of consumer brand engagement and its impact on
loyalty intentions. Journal of Retailing and Consumer Services, 24, pp.100-109.
Express.co.uk, 2019. Google Pixel 3 vs Canon DSLR camera comparison - Can the best
smartphone camera compete?. [online] Express.co.uk. Available at:
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DSLR-camera-comparison-smartphone-review [Accessed 20 May 2019]..
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Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business intelligence
through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Forbes.com, 2019. Forget Your iPhone XR, Ignore The Samsung Galaxy And Pixel 3 XL, This Is
My Smartphone Of 2018. [online] Forbes.com. Available at:
https://www.forbes.com/sites/ewanspence/2018/12/31/iphone-xr-galaxy-s9-pixel-3xl-oneplus6-
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Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
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Karimi, S., Papamichail, K.N. and Holland, C.P., 2015. The effect of prior knowledge and
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