Droid: Challenger to the iPhone?

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Case Details:

Case Code : MKTG245
Case Length : 30 Pages
Period : 2007-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Motorola Inc. / Verizon Wireless
Industry : Consumer Electronics
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Motorola is headquartered in Schaumburg, Illinois, USA. For the nine months ended October 3, 2009, it recorded sales of US$ 16.32 billion. (Refer to Exhibit I for Motorola's financials). Motorola manufactures wireless telephone handsets and designs and sells wireless infrastructure equipment...

Reviving Motorola's Fortunes

In July 2007, Motorola announced reorganization of its business to "better align its operations with the evolving nature of (its) customers and served markets." The company was organized into three divisions - Mobile Devices (including personal devices, PDAs, etc.)...

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Creating the Initial Buzz

In early October 2009, Verizon hired McGarry Bowen to unveil a marketing campaign promoting Droid. On October 18, 2009, Motorola and Verizon released a teaser campaign instead of rolling out a high decibel promotional campaign as was expected of a company making efforts to revive its fortunes...

The Droid Launch

On November 6, 2009, Verizon opened its flagship store in New York at midnight. At the launch event, John Stratton, executive vice president and CMO, Verizon, told the reporters, "We have to demystify the notion that (iPhone's) untouchable. This product can stand up and compete."...

Marketing the Droid

Verizon and Motorola released a TVC on November 9, 2009. The ad showcased Droid as a robot phone that crushes rocks and punches through steel walls. Soon after iPhone like devices were shown like purses in pinks and purples giving a message that iPhone was for women while Droid was targeted at young men...

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