CHANDRAGUPT INSTITUTE OF MANAGEMENT, PATNA

Marketing Management - I

Case Study

Submitted To CIMP

On

“ Google Glass ”

Under the guidance of :- Submitted By :-

Prof. Nilamadhab Mohanty Group–6A Rexters
(PGDM 21-23)
Ankit Kumar 140006
Kumar Prakhar 140016
Kumar Shivam 140017
Piyush Kumar 140026
Shikha 140036
Suraj Prakash 140088

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 INTRODUCTION
This case is basically all about the key issues faced by Google X for its Google Glass and
also aims at providing recommendations and analysis on key issues for Google Glass. It also
presents arguments in support of the recommendations and also highlights the reasons for
rejecting other alternatives of marketing the Google Glass.

The idea behind the innovation was sheer brilliance but the product did not fulfill its
expectations. From price to safety, the product had something or the other to be criticized.

Google concentrated on building up, and publicizing the product to the general mass but did
not bring out the reality and its absence in many aspects. That directed to the biggest failure
of Google Glass.

Key Issues

 Google shall continue selling Google Glass directly to the market

 Google shall adopt a strategy of ‘open platform’ in which any eyeglass frame
manufacturer can develop Glass products.

 Google can indulge in partnership with eyewear manufacturers.

 I recommend that Google X shall pursue with the third option in which the company
shall indulge in a partnership with an eyewear manufacturing company and settle the
deal terms upon which Google X agree with its partner.

 I also recommend that Google X shall partner with the eyewear giant Luxottica for
initial 3 years to understand the nature of growth and the sales for Google Glass.

 I also recommend that if sales and growth are in favour of Google X then it shall
increase the contract for 10 years.

 Google shall pursue with a goal that it has to cater every single individual who wears
eyeglasses and contact lenses and for that, the company shall lower its profit margins
and sell it at an affordable price partnering with Luxottica.

 I recommend that Google shall collect royalties from Luxottica on the basis of 10% of
net sales, but can reduce this ratio when the product starts to full growth after 3 years
of the contract.

  The marketing support from Google shall be given at 10% of net sales at the initial
stage of contract but can reduce at a later stage.

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 Health and safety

There were some significant concerns related to its safety measures that could adversely
affect health. To the people, whether to wear and use it every day was still a question mark
because, according to the description, it stated to radiate carcinogenic radiation very close to
the eyes. That came in direct contact with the skin, unlike other products of the brand.

Privacy

Privacy was also another issue. Google Glass could capture any image at any time, and
concerns were increasing towards the privacy of lives.

Functioning

Establishing the ground rules for what a product resolves is the first step to make a product
successful. One cannot just develop a product in regards to whether people would be
interested or not. It does not work like that! However, this is the functioning of Google Glass.
It had two functions: capture pictures rapidly and browse anything on the internet within
seconds. None of which has any usual or practical usage.

Battery

With Google Glass, the energy consumption was way more than usual. The glass needs to be
charged after every four hours. Yes, a fixed battery limit of four hours, that’s it. There were
no standard charging specifications. Charge it a million times; it would still be down after
some hours. The glass could be discharged, and it could be unknown to the user.

Price
Even with these setbacks pouring in, the glass cost almost $1,500. As highly disappointing as
this product was, Google refrained from minimizing the pricing. The concerns raised were

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not random; they were issues affecting lives. That had to be well-researched, but the price
was still $1,500.

Language and heat

Google Glass only worked well with native English. That means it worked well only with
speakers from the US or UK. Bet nothing more needs to be said here.

If you cannot command using a language known, record a video. But, that becomes another
hassle once the recording elongates for 10-15 minutes. It becomes excessively heated due to
the intensive internal working.

Recommendations

Partnering with Eyewear Manufacturing Company:-

Google shall partner with an eyewear manufacturing company because it has to cater to the
larger market and Google needs someone that can develop the Glass products and as well as
market them. As the market research data reveal that 98% of eyewear products are sold
through retail outlets, whereas, Google had the expertise of selling online eyewear product
which only constitute 2% of the entire sales of eyewear products.

Limited Years Contract:-

Google shall make Luxottica as their partners because they are the giants in manufacturing
eyewear products. However, Google shall focus on undertaking limited year contract of 3
years and shall decipher the growth nature of Google Glass because there has been many
negative reviews regarding the product and other public safety problems.

Mass Customization:-

As Google X received many negative reviews regarding the frames of the product, it is
necessary that the company shall develop frames according to the needs of individuals
because as the data suggest people wear prescription glasses 15 hours a day. Therefore, the
company shall target every individual who wears glasses.

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Royalties from Partners:-

The royalties from Luxottica shall be collected on the basis of net sales because as the data
suggests that Luxottica had net sales of €7.3 billion in 2013. Therefore, Google shall ask for
10% of net sales and shall reduce at a later stage as this strategy would entice Luxottica to put
more emphasis on selling Glass if they need the royalties to decrease.

Marketing Support:-

Google shall provide marketing support on the basis of net sales. At initial stages the
company shall provide 10% of net sales in marketing support in order to develop consumer
awareness, but at the later stage the company shall reduce marketing support ratio.

Rejecting other Alternatives

Continue Selling Google Glass Directly:-

The reason for rejecting this particular option is because Google is currently selling its Glass
products through online channels which comprises about 2% of the market. Many negative
reviews were received by the company because they failed to focus on engineering the
product according to each individual’s comfort and ease of use.

Open Platform Strategy:-

The idea for open platform strategy did appeal Google at first but then the company realized
that this option would not be suitable at the initial stage because of the ‘wait and see’ attitude
of the eyewear frame manufacturers. Google Glass has yet to prove the mass market demand,

therefore it has to work with the giants to get its product successful instead of partnering with
the retailers and eyewear frame manufacturers.

Conclusion

Google X is the company to manufacture Glass products and it faces three distribution
options to market the particular product. Either the company shall continue to directly market
the product, shall develop an open platform strategy....................

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Google concentrated on building up, and publicizing the product to the general mass but did
not bring out the reality and its absence in many aspects. That directed to the biggest failure
of Google Glass.