brand extensions
Posted by Stephanie Startz on October 29, 2009 05:00 PM
It’s a phone, it’s an iPhone killer, it’s a brand! Wait, a brand?
After officially announcing the launch of the Motorola Droid yesterday, news is circulating that Verizon will release additional Android smart phones under the Droid brand. The wireless provider is set to release the Droid Eris (by Taiwan's up-and-comer HTC) on the same day as the Motorola Droid, November 6.
Instead of simply creating a "killer phone," Verizon has created the "killer brand." Verizon's novel approach integrates Google's Android brand into their own identifiable brand, the Droid. They may have even cornered the market.
Shortly, you will be able to purchase an Android phone anywhere, but only at Verizon can you find a Droid. Consumers can procure a Droid at numerous price points, with the HTC Droid Eris set to retail for $99 -- considerably lower than the Motorola Droid, retailing at $199 post-rebate.
The Droid brand allows Verizon to consolidate their marketing efforts, saving money and effort. As Verizon prepares to launch its biggest ad campaign, and increase total spending 5% to 10% from the last quarter, they can market the Motorola Droid and Droid Eris while slowly introducing new phones to the market.
Verizon isn't just hitching its wagon to a star. As GigaOm notes, by offering the Android OS, Verizon is executing "an important strategic about-face...[after] consistent [attempts] to 'own the customer' by closely regulating third-party apps and preventing outside brands from approaching its subscribers.”
While Android's OS may take center stage, the Droid boosts Verizons brand.