Orange Envelopes | Small Business Optimized Marketing > By Design

The Palm Pre was one of the most highly anticipated smartphone launches this year. They primed the media for months with photos and detailed specs of the unit, ensuring reams of coverage for their iPhone-killer.

On June 6th, Palm released the phone to collections of eager fans who could have all assembled in the lobby of their local Sprint store without disturbing the regular patrons just there to complain about their monthly bill.

Without an established collection of Pre fanboys committed to camp out for hours in front of every Sprint store, the groundswell of Pre passion seemed rather demure and underwhelming.

No matter. Palm announced that they realized record sales nearing 500,000 units during their first weekend, dampened only by Apple’s release of their own new 3GS iPhone, which sold over one million units in its first weekend.

Now that the smartphone dust has settled, it appears that Palm’s Pre will never become the iPhone killer they had hoped. Total sales for this year will finally settle between 1 and 1.5 million units, compared to Apple’s total iPhone installed base of over 40 million. Not much of a comparison really.

So, what went wrong? Why didn’t the technical tour de force that is the Pre stumble so badly? In a word: marketing. Or, to be more precise, lousy marketing.

Palm ran a series of ads introducing the Pre that have been universally panned, frequently eliciting adjectives including creepy, eerie and confusing. Great adjectives if you’re Rob Zombie, introducing Halloween 2. Not so great descriptions for a cutting edge smartphone trying to gain traction in a market dominated by Apple and RIM’s Blackberry.

Take a look for yourself at YouTube. Creepy, right? And nowhere in any of the ads does Palm provide a single reason why you need a Pre. What does it do? How is it better? How will it improve my personal/professional/sex life?

Come on, people, these are the fundamentals.

When Apple released the iPhone, their simple visuals set against a plain white backdrop focused all the viewer’s attention on the phone and its remarkable touchscreen. They showed precisely what you could do with the touch of a finger. They conveyed a Wow! factor that generated interest and desire bordering on lust. In contrast, the Pre ad suggests that if I have their phone, I may encounter nothing but green lights on my way to work. Really? That’s your pitch?

The truly disappointing factor is that the Pre is a remarkably innovative phone. It’s the only touchscreen device capable of genuine multi-taking. But Palm never tells me why I need to multitask. What can I do with a Pre that I can’t do with my iPhone or Blackberry? Besides making concentric circles of orange-clad Asian men dance in unison?

Don’t make the same mistake Palm made. Understand what makes your product/service essential and then clearly communicate your distinct value. Sure it’s fundamental, but even the big guys forget to focus on the blocking and tackling sometimes. Like Palm.