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Challenge: In the fall of 1988, Qualcomm was an unknown company
with an unknown wireless technology tucked into an unknown (technologically
speaking) corner of the world. But its brilliant Chairman/CEO Irwin
Jacobs, previously a professor at MIT, realized that a "spread-spectrum"
approach could revolutionize the cellular industry. Armed with this
elegant technology and little else, Jacobs challenged McQUERTER to
"champion" code division multiple access (CDMA) to the global telecom
community, building industry-wide support for what he hoped would
become a worldwide standard for cell phones.
McQ
Response:
With an annual budget of less than $100,000, McQUERTER went to work
in the spring of 1989. With minimal resources and a formidable marketing
challenge — nothing less than overthrowing the accepted cellular technology
standard and its staunch supporters, the multi-national telcos — McQUERTER
realized it could not adopt a traditional marketing approach. So
the agency took the "high road."
First, we deployed a "public information" campaign.
- We took an informational approach to educate the global telecom
community on the science of the CDMA radio interface. We leveraged
guest editorials, tech panel appearances, third-party testimonial
articles, public service announcements and media advisories to
promote CDMA not as a for-profit product, but as an industry-wide
initiative to build next-generation networks with greater capacity
and heightened security.
- To support this public affairs-based awareness program, we also
wrote technical briefs, white papers and other technical documentation,
and disseminated them to the engineering and technical standards
bodies in the industry.
- The third leg of our awareness platform was to deploy a "news
flash" program to generate high awareness of the successful
field trials that Qualcomm was conducting in concert with large
carriers. Not attainable, McQ's creative team developed a series
of "advanced technology platform" display ads, using paid media
to hammer home the superior attributes of the UTSi approach.
Second,
we simplified the technical advantages, employing everyday metaphors
to explain CDMA.
- From a laundry list of 18 technical features of CDMA, we choose
three compelling advantages: (a) 10X the capacity of current approach,
(b) greatly enhanced call quality and (c) better privacy and security.
Over the next six years, we hammered and hammered away at these
advantages, never wavering from our original strong claims.
- To illustrate how the technology worked, we used examples from
the everyday world: i.e., the ability of the human brain to selectively
"listen in" on one of several overlapping conversations at a cocktail
party, and a child pulling out letters of his alphabet soup to
form a meaningful sentence. Familiarity, in this case, lead to
improved goodwill for Qualcomm.
Third,
we helped QUALCOMM project the image of a world-class, highly successful
telecom enterprise, even before it was one.
Since
we were striving for acceptance of a global standard, we knew we
had to project a "larger-than-life" presence. We took a very gutsy
and aggressive stance in our media relations. We issued a News Release
every two weeks, to maintain "top-of-mind-share" with industry opinion
leaders, analysts and media. We populated industry standards groups
with Qualcomm engineers, maintaining a very high and vocal profile
among the industry technical segment. We positioned Dr. Jacobs as
"the guru in the Rolodex," and placed him on panels, keynote speakerships,
as a guest editor, and as the author of "technical bulletins" distributed
throughout the industry via direct mail.
We also aggressively sought industry awards for technical innovation
and leadership, and competed in dozens of competitions in the industry
and business world at large. We featured Dr. Jacobs as the worldwide
expert in media advisories, in which he commented on wireless trends
including PCS attributes, spectrum auctions, the demise of TDMA,
third-world telecom imperatives, capacity issues in metro areas,
and other topical issues of the day.
Results: The rest of the story is wireless legend.
- The CDMA standard. After ostracizing QUALCOMM for years, carriers and OEM companies were forced to recognize CDMA in the IS-95A standard in 1993. Two years later, Hong Kong Telecom deployed the first CDMA network, followed by Bell Atlantic in the US and BCS Tel in Canada. Today, Qualcomm's CDMA variant, now known as CDMA2000, is the second most deployed air interface in the world, second only to GSM. The standard is now used around the world by an estimated 120-million subscribers, and is poised to play the leading role in the emerging 3G "wideband CDMA" networks now being deployed.
- The company. As for Qualcomm, it has gone on to become one of the most successful tech companies in the world in the last decade. With
one of the fastest rises to Fortune
500 status in history, it has emerged to become a dominant multinational force, in addition to being a sterling example of US advanced know-how, and a Wall Street darling before the current recession.
- The man. Chairman Jacobs has been recognized as an international
business leader and technology statesmen, and has been invited
by the US Dept. of Commerce to attend trade commissions around
the world. He has received the national highest award for scientific
achievement — the National Medal of Technology Award. He has also
received Ernst & Young's Entrepreneur of the Year Award, and AEA's
Medal of Achievement. Qualcomm technology is now on permanent
display at the Technology Pavilion, Smithsonian Institute in Washington,
DC.
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