Posts Tagged ‘Google brand’
Part 2: How a strong tech brand can help with inevitable mistakes
Last time, we talked about Google and how its huge brand (valued at $32 Billion in 2009) helped it to move into new categories completely separate from search. But a strong brand also helps with when a company makes a mistake, and Google has certainly had their fair share of them.
Here are a few of Google’s notable technical and/or market failures, none of which has damaged its brand.
1. Google X (Mac OS Dock-inspired search bar)
Google X was a project released by Google in March 15, 2005 and was rescinded a day later. It consisted of the traditional Google search bar, but it was made to look like the Dock interface feature of Apple’s Mac OS X operating system. Google never released an official statement as to why the project was shut down.
2. Google Answers (online knowledge market)
Google Answers was an online knowledge market offered by Google that allowed users to post bounties for well researched answers to their queries. Asker-accepted answers cost $2 to $200. Google retained 25% of the researcher’s reward and a 50 cent fee per question. In addition to the researcher’s fees, a client who was satisfied with the answer could also leave a tip of up to $100. In late November 2006, Google reported that it planned to permanently shut down the service, and it was fully closed to new activity by late December 2006, although its archives remain available.
3. Orkut (social media tool)
Although not a failure per se, Google’s Orkut is not a roaring success either, at least in the US. It’s a social networking website designed to help users meet new friends and maintain existing relationships. The website is named after its creator, Google employee Orkut Büyükkökten.
Although Orkut is less popular in the United States than competitors Facebook and MySpace, it is one of the most visited websites in India and Brazil. In fact, as of December 2009, 51.09% of Orkut’s users are from Brazil, followed by India with 20.02% and United States with 17.28%.
Originally announced in 2002 as Froogle, now called Google Product search (please notice the re-branding under the Google masterbrand), is a price comparison service launched by Google Inc. It is currently in beta test stage. It was invented by Craig Nevill-Manning. Its interface provides an HTML form field into which a user can type product queries to return lists of vendors selling a particular product, as well as pricing information. Product Search is only available for selected countries at this point.
Google Product Search is different from most other price comparison services in that it neither charges any fees for listings, nor accepts payment for products to show up first. Also, it makes no commission on sales. Any company can submit individual product information via Google Base or can bulk submit items for inclusion. Google sells advertising through AdWords to be displayed in Product Search results adjacent to the unpaid results.
With all of these missteps, because they are Google, and all they represent, the Google brand can act as Teflon to protect them from the usual damage that strategic missteps can sometimes bring about.
Brand-building has defensive as well as offensive benefits. Toyota’s recent battles over potentially faulty acceleration and shifting features shows that even a strong brand can face devastating blows to its image, however true the allegations and/or perceptions prove to be.
So what’s the lesson in this? Even if you aren’t aiming to launch new products or take over new geographies, it pays to continue to invest in, and prove out, your unique promise to the world. That investment and hard work will be a cache of goodwill and positive associations, ready to help fend off any brand damage that might occur, whether it’s deserved or not.
Do you agree? What do YOU think?
Part 1: How building your brand helps you enter (or bulldoze your way into) new products, categories and geographies.
Why invest your brand? Especially a B2B brand? Because it pays off. Handsomely. Let’s look at Google, a brand worth $32 Billion in 2009 according to BusinessWeek. (Yes, that just the brand, not the hard assets. More on brand valuation in an upcoming Brand Valuation blog piece.) Google started off in 1998 as a search engine, competing with a slew of other search providers: Yahoo, Magellan, InfoSeek, AltaVista and a slew of other now irrelevant search brands. Yahoo is the only remaining search competitor worth mentioning, with 14% share of search as of 2/20/2010. That’s 14% compared to Google’s 78%. As a result, I believe, Yahoo decided to turn its brand and business ship toward “personalizing the internet experience” and away from pure search (watch for an upcoming blog on that soon).
Google’s stated mission from the outset was “to organize the world’s information and make it universally accessible and useful” and it has certainly succeeded. In pursuing that objective, the company held two beliefs they bet their life on: 1) “The user is in charge.” And 2.) “If users come, so will revenue.”
Both of those beliefs served to be right. Google quickly monetized their leadership in the space by starting AdWords, their flagship advertising product and main source of revenue ($23.7 Billion in 2009). And then used the power of their brand and reach to enter (or bulldoze into) new categories.
1. Online productivity software, including email and documents (where Yahoo was the clear leader at the time, and still is: 3.8% share vs. 0.8%)
2. Desktop apps (GoogleWave)
3. The Chrome browser
4. Picasa photo editing and organization
5. GoogleTalk instant messaging
6. SketchUp 3D modeling
7. The incredible and comprehensive GoogleEarth
8. And most recently, mobile phones and operating systems: Google Phone and Android.
I would suggest that these entries would have only a tenth of their current buzz and value if they were coming from an unknown brand, even if that unknown company were better qualified in the category.
So how can Google’s story help you with your business? The first thing it says is to set an inspiring and badly needed vision/mission for your business, however large or small it may be. Make sure people really want what you’re offering them. Then, become better at delivering it than your competitors, because they will try to copy you.
Then, build your brand:
Create a compelling promise that asserts your leadership
Design it beautifully verbally and visually
Work diligently to deliver on your promise. Emphasis on the word “work”. Brands don’t become great because of beautiful design or catchy phrasing. They become great because companies DELIVER great product and service experiences that live up to their brand promise: their cause, you might say.
If you let people down on your promise, you’ll be worse off.
Once you’ve delivered great experiences, you will have earned the right to branch into other categories and geographies. You’ll be afforded product and/or service trial (and even forgiveness if you stumble) where before, you wouldn’t even be considered.
Does this happen overnight? No. Does great branding replace great business strategy and value delivery? No. But it does take great companies to new heights. And gives them a huge club to walk around with.
What do YOU think?
The ongoing news about Google potentially pulling out of the China market has stirred up some very interesting points of view as it relates to sticking to your brand values versus protecting your bottom line. If you read Google’s core principles you can see why so many people are keeping a close eye on their moves as it relates to pulling out of China. It’s not just about money, it’s about principle. It’s about their brand.
When you get a chance, check out the philosophy section of Google’s website, specifically the core principles that guide their actions. Basically they have 10 statements that clearly articulate their thoughts as it relates to conducting behavior and business. I’ve always liked the concept of “clarity” and “consistency” as it relates to a company’s action, but the challenge becomes staying true to what you believe in during tough or challenging circumstances and not bending or shaping the principle to work in your favor.
In the case of Google, they clearly state, “You can make money without doing evil”. Therein lies the dilemma. In January Google outed that the December attacks that hit 34 corporate firms originated in China. Bottom line, it’s all about censorship and privacy, and Google has publically threatened to withdraw its search engine business from the Peoples Republic for these practices. But will they?
Just last Friday at the TED conference, Google co-founder Sergey Brin stated, “I want to find a way to work within the Chinese system to bring information to the people”. Really, even if the government has no intention of stopping censorship or blocking certain sites? Needless to say, there is a fine line between staying true to your brand principles and protecting your brand reputation. Careful what you ask for? Employees, customers and prospects are very savvy and will not put up with posers in this day and age. Google must be very careful to walk the walk if they want to remain one of the most courageous and admired brands of the decade. But that’s’ just my opinion. What’s yours?