Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

With 'Droid' branding, Verizon takes platform-dominant position

By | June 14, 2010, 2:10am PDT

Summary: A branding expert says smartphone manufacturers are taking a back seat to the Android platform; customers just want to know, ‘Does it have Droid?’

Motorola Droid

Motorola Droid

Is Verizon Wireless ahead of the curve, by marketing all of its Droid phones as one brand? There’s the Motorola Droid, the HTC Droid Eris, the HTC Droid Incredible and two more Motorola Android phones that Verizon will add to its franchise next month. With so many products, all powered by Google’s Android software, is the strength of each manufacturer’s brand diminished, or is the benefit of joining forces so enormous that it doesn’t matter?

To find out, I talked to branding expert Rob Frankel, who makes his calls on an un-smartphone from Sprint.

What do you think about Verizon’s decision to brand all its Google Android phones “Droid,” regardless of the manufacturer?

I think you’re making a conscious decision to lead with a platform rather than a hardware strategy, which is immediately going to make the Verizon product appear to have wider and broader appeal to market. When you think about it, it makes a lot of sense because there’s a lot of money behind Droid as a platform. Whoever is pushing Droid—if Verizon just piggybacks on that, they’re saving hundreds of millions of dollars to drive home a point. It’s a smart bit of thinking and goes after my own personal style: Why spend your own money when someone else is paying for advertising?

HTC Droid Eris

HTC Droid Eris

Is it a smart idea for Verizon to use multiple devices to create a brand that rivals the iPhone?

They’re creating a platform-dominant position. How many phones can you get the iPhone platform on? Just one. With a Droid offering you can get it on any of these phones. If you are not sold on the iPhone, there’s a whole range of things you can do, and a lot of options. It makes a lot of sense. Of course there are rampant rumors that Verizon will get a CDMA [version of the] iPhone. That will put the nail in the coffin.

What are the downsides for Motorola and HTC—especially since they make other Android-powered phones, both on Verizon and other networks?’

The downside is probably the same for Verizon and the carriers that adopt the strategy—your brand is going to take a back seat to the platform. So the less integral part you play in supporting the platform, the more expendable you will be perceived to be. They become secondary and tertiary brands. Eventually, it will become: “I don’t care if it’s a Motorola chip in there; does it have Droid?”

Does Verizon’s approach fragment the overall Android offering?

From a 100,000-foot view, if you really step back, it’s like when people say, “I need a cell phone.” That’s the first thing they do. Then they look at calling plans and get more granular, and that’s what this is analogous to. Now they say, “I like the Droid platform,” and then there’s a lot of different ways to do Droid. So no, the brand of carrier is dissolving into the wallpaper here. They’re realizing–and iPhone gets a lot of credit for this—that it’s function and user convenience that’s leading the way here.

Also, telecom companies are generally held in the same or lower esteem as used car salesmen. You never hear, “Man, I really love that AT&T.” It may be a real smart move to take second seat from the carrier manufacturer as opposed to the platform.

HTC Droid Incredible

HTC Droid Incredible

Is it financially sound to license the name “Droid” from George Lucas and Lucasfilm Ltd.?

Are you kidding? Of course it is. Here’s what attests to George Lucas’s smarts: To this day, Lucas is the only producer in the business who successfully negotiated with the studios for all the rights to all the Star Wars stuff that he did on the front end. After Star Wars, no one has ever been able to do that. It proved so freakin’ profitable for the guy. There were a lot of really angry and jealous people.

This is a guy who knows what it’s all about. I wouldn’t be surprised—but I have no idea–if he helped them calculate the value of the [Droid] license, because he really knows what he’s doing.

It’s usually a lot more cost effective to license an old brand than create a new one. It’s not the best licensing job I’ve ever seen, but it’s not going to hurt them. I don’t think it will help them as much as they think it would, but they’ve managed to cobble something together that’s pretty appealing for the audience they’re going after, which, from what I’d guess, is way male-skewed.

Images: Verizon Wireless

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Samsung Bada
guihombre 14th Jun 2010
I wonder if Bada will subsume Android?

http://erictric.com/2009/12/18/first-look-samsung-bada-platform-ui/

They're both essentially Linux based platforms, Android Sense UI, X10's swirl essentially are GUIs on the base platform, that support native Android widgets, and I don't think it would take so much for Samsungs Bada platform to morph into an Droid app/widget supporting platform.

I mention this because that Samsung wave is just stunning in real life, but I'm looking for an Android 2.1 or greater not a Bada phone.

http://www.digitaltrends.com/mobile/samsung-wave-will-be-first-bada-phone/
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Samsung Moment
hiraghm@... 14th Jun 2010
@guihombre
If you're willing to switch to Sprint, I'd recommend the Samsung Moment. It has that gorgeous AMOLED screen, and mine came with 2.1 pre-installed. And if you're a new user, Radio Shack is selling them for $50.
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How well the carrier and OEM support the software is important. How good their custom apps for the platform is important.

It may not seem like that now, because this is a new market and people do not have first hand experience as to how well the carriers and OEMs are doing compared to one another. But over time it will become apparent which carriers are more customer friendly when it comes to letting you get the fullest potential from your phone, and which OEMs have the best hardware and overall platform. And there will be winners and losers just like any healthy capitalistic market.
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Ignoring the flip-side of every pro...
techboy_z 14th Jun 2010
For example:

"I think youre making a conscious decision to lead with a platform rather than a hardware strategy, which is immediately going to make the Verizon product appear to have wider and broader appeal to market."

Sure, it looks like a coherent platform with multiple Droid devices. But the downside is the associativeness of that. If one device proves problematic in some way and that garners enough attention, consumers will have a negative association with all same-branded devices.

Please...don't just talk about this cohesive branding as establishing a "dominant platform" without mentioning the downsides to that also!
@techboy_z That could be true....but then again the Droid Eris didn't do all that well I don't believe....or maybe they just didn't market it. But it hasn't dragged down the DROID line. In theory this could happen but I just don't know about it in practice. People buy what the TV tells them to buy.
@storm14k I suspect the Eris was never intended to do that well. Their decision to delay the Motorola Droid so they could release Droid Eris and and Motorola Droid on the same day sounds like them hoping to get people in the door with the Eris and upsell to the Motorola or vice-versa. Classic Marketing technique.
@techboy_z it's actually the opposite. When you have a bad phone, you blame the hardware and point them to the other hardware you have running the same OS that people love. If apple has a problem with the iphone hardware all users are screwed.
@techboy_z i.e. the problem with windows. If windows crashes it's cause of windows and not cause of the $500 laptop they bought (in the customers mind). The brand ends up taking the rap and most people don't even care how crappy the hardware is. BUT look at the money Microsoft is raking in. I think it'll be analogous.
Smart. Very smart.
This allows to advertise a brand rather than a specific model. This way the "poor" handsets are easily weeded and you can introduce new styles wilth minimal negative impact to the overall brand equity.

Smooth move.
@zenwalker - yeh - zenwalker gets it happy
And in a way verizon is already advertising their future droid phones with current ads. As soon as moto comes out with their next 2 droid phones, people are already cognizant of droids. Branding is powerful. You go online and "google" a search rather than yahoo it or bing it. You go to a restaurant and ask for a coke by default. Nobody asks for a dr. pepper.
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@rengek Yes I do, unless they have IBC root beer
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Missing punctuation
tikigawd Updated - 14th Jun 2010
Please proof read and fix all the missed spaces, apostrophes, semicolons, and the like. There are absolutely no apostrophes in the whole article, even where it was obvious you meant to put them, as in "Lucass," where I assume you meant to write "Lucas's."

Maybe the keyboard was broken?

Other than that, I enjoyed the piece.
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Droid is like Blackberry
Timpraetor Updated - 14th Jun 2010
" Now they say, I like the Droid platform, and then there's a lot of different ways to do Droid. So no, the brand of carrier is dissolving into the wallpaper here. "

This is not unlike what Blackberry fans have done for so long. Which Blackberry? Doesn't matter. The fact that it's a RIM device? Doesn't matter. It's a Blackberry.

It'll be the same with Droid. Which Android-based phone? Doesn't matter. HTC or Moto? Doesn't matter. It's a Droid.
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This is all good, IMO
SortedPunchCards 14th Jun 2010
Consider HTC - like HP you get a lot of bang for the buck, but the quality is shoddy. Already the Incredible and the EVO have significant hardware issues, weeks and days after introduction.

People are going to go to Best Buy and say "I want a Droid, but I don't want an HTC" and they will be pointed to Motorola and Samsung. When that starts biting into HTCs bottom line, HTC will look into different manufacturers or a different stance towards build quality, and we all benefit.
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I went into a Verizon store last week to lokk at the ne droid...the only difference is that it doesn't have the putt out key board. I have had to return 3 droids(motorola) one for non functioning, and they made me pay 50.00 for it. The "almost new refurbushed phone they replaced it with got fried by the battery heating up so hot that neither my husband or I could touch it. Back to the store it went and even the manager tried to get t to come on, to no avail. I just sent that one back today . The replacement didn't have the 16 gig card and I ended up buying 2- 8 gb ones in Walmart. Verizon wanted to order me a 16 gig replacement for 150.00......out rageous. While I am here, would anyone be interested in buying a Samsung Omni II windows Phone?
I went into a Verizon store last week to lokk at the the droid...the only difference is that it doesn't have the pull out key board. I have had to return 3 droids(motorola) one for non functioning, and they made me pay 50.00 for the first replacement. The "almost new refurbushed phone they replaced it that night got fried by the battery heating up so hot that neither my husband or I could touch it.(and the phone was off!) Back to the store it went and even the manager tried to get t to come on, to no avail. I just sent that replacement on Friday . The replacement didn't have the 16 gig card and I ended up buying 2- 8 gb ones in Walmart. Verizon wanted to order me a 16 gig replacement for 150.00......out rageous. While I am here, would anyone be interested in buying a Samsung Omni II windows Phone?
thanks for reporting my message as spam. Droid a good phone ever thought have returned 3 of them.
Great!!! thanks for sharing this information to us!
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RE: With 'Droid' branding, Verizon takes platform-dominant position
jackson1984-24316069205748857739440257893812 11th Oct
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best iphone apps of 2012
best iphone apps of 2012 11th May
best iphone apps of 2012

I admire the valuable information you offer in your articles. I will bookmark your blog and have my children check up here often. I am quite sure they will learn lots of new stuff here than anybody else!

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