Lahore School of Economics

Master of Business Administration

for Professionals

Marketing Management

Project

SBU
Google Smart Contact Lens

Khuram Manzoor Anwar

khuram.manzoor1063@gmail.com

Executive Summary

Google was started by Larry Page and Sergey Bin in 1996 at Stanford University as "a new approach
to online search". It has been evolved into world's top internet destination with market share of 64%. It is
presently run by Chairman and CEO Dr. Eric Schmidt on its mission "to organize the world's information and
make it universally accessible and useful". (Google, 2015)
It generates revenue by relevant online advertising on websites and affiliated websites. It has 30% of US
online market with competitors Yahoo! and Microsoft with over several hundred thousand of other clients
worldwide. It generates simple ads which is text based rather than rich media ads or graphics which
differentiates its products from competitors, specially its search engine. It uses its search engine to generate
traffic, improving user friendly applications and search technology. More relevant sites are being placed at top
search results by Google's Page Rank technology. Due to its huge user data base with cost effective system of
per-click, advertisers pay for ads only to Google, so this allows advertisers to do businesses of different sizes.
Google offers many products displaying ads featuring simple design, user friendly interface, open platforms
and no pop-ups, like email, Google maps, Instant messaging, online comparison shopping and videos.
(Business School Perspective, 2007)
Google is using consistent technology strategy with 4 guiding principles (1) focusing on quality of Internet
search and keep on improving algorithms; (2) continue to introduce new products to broaden advertising
reach; (3) increase advertising revenue via acquisitions and alliances; and (4) horizontal expansion into other
forms of advertising such as print, video and radio via acquisitions and alliances. The users and advertisers are
being attracted to this due to its search engine and user-friendly products and making it worldwide as industry
leader. Its future success is depending on whether it can settle-on operating corporate strategy for forwardthinking mainly on innovation in this dynamic age. (Essays, 2015)

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External Analysis (PEST)

What is PEST Analysis?
This is a useful analysis for the socio-cultural, economical, and technological factors of any
organization. These factors affects their environment, performances and activities. Using PEST analysis by
researching Google followings were concluded.
Political Factors:
Government stability is the major aspects of Google's strategy. Governments help the businesses if
market is steady and results in more advertising on Google, benefiting the company. Many governments have
no laws for online sharing of information, so giving the opportunity to Google to manipulate this. According
to UKessays, China launched Golden shield to monitor use of internet by civilians by adding regulations on
Google that forbid it from operating on their own terms. (Google Launched A Chinese Language Marketing
Essay, 2013)
One thing is, there are many political factors that negligibly affects Google, like employment laws,
environment and taxation policies etc.
Economic Factors:
GDP has been on increasing from very long time annually at average rate of 3.2% to 17.1% at times.
Many countries like UK, China, India and Africa have got increase in their GDP every year since 70's, which
is a positive factor on Google. Google's external and internal investments will be more in numbers with stable
and continuous growth of such countries. More advertisements are being put on Google's search engines when
users search more. Such countries of large users data base have strong impact on Google. A strong positive
can led Google to enhanced and improved services and products for users as economic strength.
Google relies on investments, which means if interest rates increases in any country, it benefits Google. the
average interest rates set to about in USA is 6.1%, in India at 6.6%, in China 6.4 %, in South Africa 13.3%
and in UK is at8.02%. It means that firms or companies in these countries can get investment and loans to
benefit themselves, by getting more money and spending on advertisements may be through Google. (Interest
Rate, 2015)
The inflation rate has always been a problem for both buyers or customers. In above mentioned countries the
inflation rate have been recorded on average increase of 2.5-9.5% per annum. This increase results in price of

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products of companies, more cash which benefits Google , by online advertisements, number of clicks per ad
profiting from such countries.

Technological Factors:
The new key aspects to technological factors are new researches and developments, technological
change, infrastructure, new discoveries, technological legislations, technological incentives and access to
latest technology. Google is a technological company which keeps on innovating and improving the world by
new developments. Google provides not only a search engine but different tools, services and products freely.
Its IT infrastructure is guarded secretly. It has more than 800,000 servers at different locations using Linux
OS. Key success of Google is because of its simple concepts and newest technologies like Pagerank
technology, Google maps, G-mail, Google Earth, Google gear, Google groups, Google talk, Picasa, Google
desktop, Google froogle, Adsense program, Google spreadsheets and Android OS for latest mobiles. Google is
providing all these services for almost free to users, with a purpose to make life efficient, entertaining,
practical and easier. Google has purchases many companies of different fields like shopping, file sharing,
advertising, security, mobile technology etc.
Socio-Cultural Factors:
The world has been connected globally by internet and search giants like Google makes people
navigable easily. The internet usage has increased to all age groups among all cultures, becoming more
dependent on internet, using latest mobile phones capable of internet. People are using such phones to locate
restaurants, hospitals, hotels, driving directions, quick searches, download anything etc. Google benefits from
this with more queries by enabling more services to people. Therefore Google has launched its android OS
phones with millions of apps free of charge and these apps may also be downloaded on other platforms like
Apple iPhone.
Google is organizing world's information and making it easily accessible to everyone. It is not limited to
demographic population. It has no restrictions on any culture or income distribution, which gives more
advantages in the market. It is offering free access to everyone at everywhere with a single finger tap. This can
be a positive and negative aspect for Google, because any information provided can be useful for one and
offensive to others. Google may store entered data of users, like personnel information and selling such
information to advertising companies, storing user's habits or tends. Privacy International Association has
highly criticized Google on harmful acts due to people's privacy. In today's world everyone wants privacy, and

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may be people are accepting privacy violation but it is the biggest threat for survival of Google in the future.
(Fahad Sultan, 2013)

SWOT ANALYSIS
Strengths:
Google's brand value has reached to $56.6 billion as of 2014 starting from $37.4 billion in 2006.
(Google Brand Value, 2015). It holds market share of 67.7 % as of 2014. Google stands at market cap of
$382.47 billion as of 2014 (Forbes, 2015). As "Google's mission is to organize the world's information and
make it universally accessible and useful." (Google, 2015). So it is an open source of products and services
making people's life easier, gives them a strong strength as brand image. Its financial position attracts
investors, which strengthen Google's image. We can see revenue growth between 2003 and 2007 of Google by
following graph (Fahad Sultan, 2013).

Graph 1: Googles Revenue Growth

Google has become number one search engine which has established a brand name. It is very fast,
reliable and dependable. It has got a mouth publicity, so needs very little marketing at end user. It gives
comprehensive results without confusing using simple interface with low operation cost by using UNIX web
servers for accessing WebPages in millions on internet. Google is working to enhance search algorithms by
hiring PhDs who are working very hard to make search efficient and faster. It is providing an interface to more
than 70 languages making comfortable to search for users in different countries (News, 2015). It provides
search called "search by location" which attracts users to find products, vendors and services in their areas.
Google has got culture of innovation by providing services like many unique products.
Weaknesses:

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Google's revenue highly depends on online advertisements for more than 90% of its revenue. Google
is facing falling ad rates resulting in decline of revenue. This may be from ongoing global economic
slowdown as online advertisement is always driven by emerging economies.. Google has many unprofitable
products and services adding very little to its profits. (Ovidijus Jurevicius, 2013). It's a world of social
networking, and Google has weak presence in this area.
Opportunities:
It has an opportunity to form a better platform for displaying ads to mobile users due to growing users
of mobile internet. Google acquired Motorola obtaining patents from business. Its a good way to make strong
patents portfolio. Google should obtain more to grow (Motorola, 2015). Google has launched driverless cars
in Nevada, US (Google Driverless Car, 2015). This technology could may be used in future model, so would
be huge technological advancement. However Google has no plans of manufacturing of cars in future but can
sell its licenses using their technology and IP. Google has grown into electronic industry by introducing some
of notebooks, smart phones and tablets. If Google introduces more products, it can strengthen its entry into
electronic industry focusing more customers. Google launched its fiber cables that starts with connection with
100 times more speed than today's any broadband connection which is a wise investment by the company
(Anon., 2015). By now Google has become direct competitor to Apple and Samsung by launching Android
OS for smart phones, tablets. The introduction of Google glasses and Google play could be a game changer
for Google in the market
Threats
As Google depends majorly on online advertisements and a very less revenue comes from its products
and services. Only few of them earn some profit. Recently Google has been accused by EU laws for using its
position as dominating in search results. (Jim Edwards, 2014) Google is also being investigated by Russia's
competition watchdog after a complaint filed by Yandex regarding the violation of anti-monopoly regulation
(MARIA KISELYOVA, 2015). If all this proven guilt, Google may would have to pay fines lowering firms
profit. Microsoft has launched its Windows 8 OS for smart devices to penetrate into market and is gaining
market share playing important role against Google as biggest threat and challenging to take away potential
revenues from the market. The major competitors Yahoo! and Microsoft are traditional in advertisements.
Google is facing many treats due to privacy issues in many countries. The social networking sites like
Facebook and Twitter has also seriously threatened Google's dominance in internet world.

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MARKETING

OBJECTIVES

Google Smart Contact

Lens

Brief Description
It's a smart contact lens for purpose to help people to fight with diabetes by estimating glucose levels
in tears constantly. (Nicholas M. Farandos, 2014) It can measures glucose levels in tears using mini sensor of
glucose and tiny electronic chip embedded between 2 soft layers of lens material by generating one reading
per second with warning for wearer by using tiny LED. It will help to have check on above and below certain
threshold of glucose levels. It will be a new way of managing with diabetes as it is very huge and emergent
problem. This disease is affecting every 1 of 19 person. People have to fight with this disease by struggling on
daily basis and trying to keep blood sugar levels balanced. Uncontrolled sugar levels in the blood can led to a
person to serious complications may be short term or a long term. It can led to damage their heart, kidneys or
even eyes leading to death. Managing diabetes is like job because glucose level on blood changes with normal
activity like eating, exercising and sweating. Unexpected spikes and precipitous drops are not uncommon and
very dangerous. It requires regular monitoring round the clock. So diabetes people used to wear glucose
monitors with embedded sensors under skin or prick their finger. The drops of blood then used for glucose
monitoring. It's painful and disruptive. Therefore most diabetes don't check their blood sugar but they should.
(Brian Otis and Babak Parviz, 2014)

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For the couple of decades many researchers found different body fluids like tears, hoping to find easier ways
to check sugar level for the people. Tears are hard to collect and study. So by using miniaturized electronics
like sensors and chips so tiny with antenna almost 1000 times thinner as compared to human hair, that might
be a way to disclose the mystery of glucose in tear with higher precision. (Leo King, 2014)
As we know that Google is dominating company in digital advertising business and increasing day by day
with most catching up competitor Facebook. Google's entry in wearable technology and other areas of internet
things is very beneficial for long term investors of Google. If looking into company's product in this
technology NEST thermostat has price of $250, Google glass $1500 and supposed product price of lens $100.
This is an example that how can Google develop and earn revenue in the future. (Alcaraz Equity Research,
2014) It is a small step by the Google to enter into wearable computing for the diabetes. I think this will give
huge advantage over other startups in this industry and might be Google buy these other startups to strengthen
its position in this industry. It's a huge market and will go to $12billion by 2018.

Graph 2: Wearable Market

MARKETING PLAN
Market Analysis
If looking from revenue perspective, this product will give huge benefit to Google by generating huge revenue
and also will benefit to Google investors. The company will surely be on large revenue by wearable tech
market. The main thing is about the technology of this product that is unlikely many other wearable techs, this

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product is classified in search to solve the problems and medical treatments by effecting hundreds of millions
of diabetes patients. (Tony Rizzo, 2014)
According to different reports that there were 700 thousands Type I diabetes patients and 1.2 million of Type
II. The market for diabetes devices was $325 million in 1999 in USA that increased from $208 by 1997. This
growth was increased by availability of different devices of diabetes. In Pakistan, there were 5.2 million
patients in 2000 and will increase up to 13.9 million by 2030 according to a report by World Health
Organization. (Sarah Wild, 2004) In Europe market was valued about $409 million in 2000. There are higher
rates of diabetes among elderly patients. The patients on Medicare representing diabetes are 12-17 % in USA.
In USA the cost of diabetes patients is about one quarter of Medicare expense or about $70 billion. As
population is increasing resulting in prevalence of diabetes. So it is obvious that a massive market exists for
such proposed product of Google.
Market Segmentation
This lens will target the diabetes patients who use other devices to keep in check on their blood sugar in the
entire world. Its ability to have on glucose level using tears of wearer will bring radical change in health
market. It will not only target the diabetes market but eye care market. According to a report the worldwide
market for devices of glucose monitoring will increase more than $26 billion by 2020. So Google can
dominate this market segment resulting in huge growth in revenue. By using this device patient can have track
of its sugar level. He will be able to monitor and adjust the dosage of insulin. (Daris Abraham, 2014)
Target Market
As being a newly invention it is very important to understand the markets which Google will target. So this
why market of USA and Japan as well is very important having variety of groups. Initially this product will
be supplied to hospitals and patients as free sample in order to get into the market. This will benefit this
product giving attraction to the consumers. The main focus of this product will be young diabetic
professionals like athletes. But on start market of USA will be targeted. In USA it is estimated that diabetes
was 7th major cause of death in 2006. It's a huge market in USA for diabetes health care. The diabetes
problem is more significant in North Carolina. The direct and indirect costs of diabetes is estimated to be $292
billion in USA in 2007. After this different countries of Europe and Asia will be targeted where diabetes is the
significant higher. This will be mass marketing. Every age group will be targeted and there will be increasing
need for this proposed product as this product is also capable of improving eye vision. People will get rid of
wearing glasses. It will target the market of eye care of every age group.
Positioning and Differentiation

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Most of the health care firms struggle by putting their assets to compete in varying environments.
Conventionally different organization have maximized their products to expertise individual market strategies.
If moving forward different pressure as technological changes, financial and health care development create
discrete positions in their markets.
The core vision is one of integration, growth, quality, low cost or may be other aims. So specific strategies
must have to be under taken to achieve vision by organizations. I believe these strategies can be divided into
different categories.
Demographic: Demographical analysis describes how these organizations are putting their efforts to serve
markets, communities and concerned patients of populations. The patients are being segmented on
geographical and demographical factors, while other being equal. I do believe it must have to select healthcare
fundamentally on the basis to access to healthcare as divergent to expertise. So accessing elements can be
differentiation point like simple to use and good service for healthcare organizations. (Luke Peterson and Kate
Lovrien, 2010)
Competitive: As being pioneer of this product in the market, Google will have no competitors in the market.
But it must have to have competitive strategy for future to distinguish its product or to keep its asset to
compete because soon there will be competitors in the market. So by looking at both ends of spectrum it must
have to put emphasize on focused competitions in future. By capturing market initially it can advance the
product and company towards the both extreme ends of scale. (Luke Peterson and Kate Lovrien, 2010)
Physicians: This product can touch top physicians and hospitals in the healthcare markets. To be successful
physicians help to build strong, tight and trusting relationships within markets providing care delivery and
change. These partnerships can occur in different forms but must be fabricated by aligning the healthcare
firms and physicians to achieve economic, market presence, operations, vision and quality initiatives.
Financial: Estimating financial structure consists of profitability of every service internally like cost centers
and service lines and reliance on basis of revenue, expense, profits and profitability formation of organization.
The future viability of an organization depends on how they administers the returns.
These strategies must be provided to have strong positioning n the market by differentiation the product. By
choosing which areas to be accessed can led to higher differentiated position and better compete with changes
in health care environments. (Luke Peterson and Kate Lovrien, 2010)

Marketing Mix
Product Strategy:
If this product is launched it could fit into wide array of pharmaceuticals, surgical and eye care products. The
product will be developed by establishing primarily of endocrinology and educating diabetes patients with

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secondary option of pharmacies and other health care organizations. This product will have limited life in
market. The expectation of demand will be higher because of increasing public's knowledge an awareness
about Google Smart Contact lenses. The most developed countries where dependence on technology is higher
than the other will be the most potentially higher for the product like in Japan.
Price Strategy:
According to report of International Diabetes Federation in 2013 there were 382 million diabetes patients.
These number are projected to be 592 million till 2035. (Tony Rizzo, 2014) So this product has huge potential
market. The USA, China, Brazil, Russia and Pakistan has 24.5 million, 98.4 million, 24.4 million, 10.92
million, 65.08 million and 18.5 million respectively by 2035. As it is simple eyewear for glucose monitoring
assuming to have whole price of $100 each giving significant revenue. Let suppose if Google sell initially 10
million of this product on the first year of its commercial release, Google will get $ 1 billion. A single product
of Google can generate $1 billion of revenue without going into the whole market.

Graph 3: Diabetes Patients in the world by IDF

Placement Strategy:
As I have mentioned that this product will be initially placed in USA and Japan. The environment of these
countries have got higher potential because people are most advanced in the field of technology. As the
investors of Japanese technology are said to be more conservative but after Kick-starter US based campaign

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derived the Japanese investors to step on board. Now in wearable devices has huge potential market in Japan.
The product will target the every possible age group specially adults and teens. The people will like it either
using it as fashion by different colours of lenses, as vision enhancement and glucose monitoring device as
well. (Akash Singh, 2014)
Promotional Strategy:
As we know Google is a giant in advertising industry. So the promotion of this product won't be so difficult to
launch. The product will be promoted through different pharmaceutical giants like Novartis, Abbot,
Glaxosmithkline (GSK) etc. The major key aspect of promotion will be establishment of name recognition as
already Google has it. It will be result oriented by increasing market accessible to minority populations, new
patients, physicians and community awareness. The promotion can be more effective by newsletters online,
special discount offers and also hosting a launch event. Different types of advertisement media will be used
for promotion like in eye care through magazines, radio, TVc and billboards. As being largest advertising
agency online advertisement will be biggest edge. The E-newsletters through emails will be very cost effective
way. The discount offers at start-up will be promotional campaign, by cutting profits for increasing sale to get
deeper into potential markets. It will lead to more effective to strengthen the product.
One thing by true definition of marketing: identifying and satisfying customer's needs and wants. Google has
to meet needs and wants of diabetes patients and other users of contact lenses by satisfying in cost effective
manner to make product a massive. (Neil B. Gailmard, 2008)
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