Examining This Season’s Dark Horse: How Motorola Used Its Perceived Weaknesses to Its Advantage with the Droid

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Examining This Season’s Dark Horse: How Motorola Used Its Perceived Weaknesses to Its Advantage with the Droid
MOBILE DEVICES

AND PLATFORMS

Examining This Season’s Dark Horse: How Motorola

Used Its Perceived Weaknesses to Its Advantage with

the Droid









Lead Analyst

Desirée Davis



Contributing Analysts

Michael Gartenberg

Elaine B. Coleman, Ph.D.

Kira Deutch

Jason Lau









An Interpret Syndicated Research Service subscription is $10,000 per year and includes twelve research reports and unlimited analyst inquiry.

For subscription inquiries, email sales@interpretllc.com or call (310) 255-0590.

Reproduction by any method or unauthorized circulation is strictly prohibited. Interpret’s syndicated research reports are intended for the sole

use of clients. All opinions and projections are based on Interpret’s judgment at the time of publication and are subject to change.

Published November 2009. © 2009 Interpret, LLC

Examining This Season’s Dark Horse: How Motorola Used Its Perceived

Weaknesses to Its Advantage with the Droid

Catalyst: The initial launch and subsequent commotion of the Motorola Droid surprised the industry at

large. Its strong awareness and reception from smartphone buyers suggests that the revived brand took

a unique approach to establishing itself in a new market beyond the extensive marketing campaign.



Core Questions:

1) What key consumer preferences allowed the Droid to thrive within the Verizon customer base?

2) How did Motorola leverage conflicting perceptions of its brand to best position the Droid?

3) To what extent should vendors partner with carriers when planning the product portfolio?



Interpret Insight: According to Interpret’s MobileTrax report, Motorola balanced its perceived

advantages and detractions to effectively launch its signature handset, the Droid. The device appealed

to a Verizon audience that cared less about an attractive phone (36%) and associated Motorola most

prominently with practicality (34%) and simplicity (32%).



“Attractiveness” carries different weight among the top four carriers’ subscribers.

During the second quarter of 2009, the respective launches of the Palm Pre and Apple iPhone 3GS

mesmerized both the mobile phone industry and the public at large. In particular, the Pre was the first

phone to potentially rival the functionality and critical acclaim of the iPhone. With all the media

attention and consumer interest, the Pre significantly heightened expectations. First, it firmly

established that any phone hoping to rival the industry leader needed to bring an additional capability to

the market that uniquely improved the user experience (with their “Deck of Cards” multi-tasking

interface). Second, it quietly emphasized that the phone must have a striking design.

Both smartphone handsets emphasized style and functionality, but there was particular focus on how

the newest entrant (the Pre) was a highly polished, smooth and pocketable device. However, out of all

the carriers, Verizon’s subscribers attributed the least amount of importance to having an “attractive-

looking” phone. With Sprint and AT&T having already created exclusive partnerships with their more

sophisticated handsets, it was Verizon’s choice to offer a phone of equal allure or reject the notion

altogether.



Leveraging a mobile brand’s perceived weaknesses and turning them into strengths.









Motorola practically launched the handset market for Americans with its definitive RAZR brand, but

among smartphone intenders it showed relatively low traction in key markers such as stylishness and

power. Among Verizon smartphone intenders, Apple and RIM’s BlackBerry were rated the highest for

giving off an impression of sophistication, power and style. In comparison, Motorola’s key strengths

were its practic

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