Microsoft SurfaceIMC Strategy

By: Luis Sierra, Jackie Zhu, Paul Layton, Juan Penagos, Tim Jones

Industry Background• Ownership

– About 1/3 of Americans own a tablet– Tablet ownership has nearly doubled from ‘12-’13– 217% growth of ownership in 2011-2012

slowed down to 79% growth– Growth is expected to

continue as 11% say they plan topurchase within 6 months

• Projections– 60% of online consumers

will own tablet by 2017 and 905 million people worldwide

• Market Share 2013– Apple is leader at 30%

(Down from 40%)– Samsung gaining momentum at 20%– Microsoft is at 1%

Product Review • Surface Pro: Intel Core i5, USB 3.0, kickstand, 64GB up to 512 GB, 4/8GB system

memory

• Sales history: +$853m, - $898m ads, -$900m RT inventory adjustment

Strengths:

Multi-taskMicrosoft officeFull keyboard attachmentUSB port/Memory Card Slot

Weaknesses: Lower screen resolution than iPad and some AndroidsMore expensive than most tabletsBattery life

Opportunities:Demand of tablet industry 80% of software platforms at work are WindowsTabTop industry will be created

Threats: Apple has dominated market and has high loyaltyAndroid tablet sales are increasingHigh saturation and competition

SWOT

Competitive Review

Competitive Review

Price

PPI

Ratings

Battery LifeProcessor

Weight

OS

0.0

5.0

10.0

Attributes

Surface Pro iPad 4 Galaxy Note 10.1

Survey Results

1.Educate Target Market of Featuresa

2.Increase Product Awareness

IMC Core Objectives

Our Target Objective

DEMOGRAPHICS• Age: 35-55 Working Professional• Sex: Mostly Male • Marital Status: Married• Education: Collegue Degree• Ethnic origin: Anybody

PSYCHOGRAPHICS• Personality:

Concerned with work efficiency Busy, on-the-move lifestyle Constantly seeking up-to-the-minute news Family oriented

• Way to capture a younger audience• Household income

At least US60.000

80% of corporate world works with PCs

Advertising Recommendation - TV Spot 1

Advertising Recommendation - TV Spot 2

Print• Targeting Business professionals,

35-55, in Urban Areas

• Primarily in magazines– Business week– Entrepreneur– Forbes– Fortune– The Economist

• What we want to communicate:– The Around the Clock #TabTop– Work - Watch - Play– The #TabTop that does everything

Outdoor Recommendations• #TabTop in all ads• Highway/mass transit billboards

featuring Surface in various situations: – Scheduling: First of the year to

generate buzz – Goal: to generate social media

buzz and show functionality

Outdoor RecommendationsLarge-scale Surface on highly-visible buildings

– Scheduling: Start of 2Q 2014– Goal: Attract eye of travelers

Customer-Oriented Sales Promotion

Customer-oriented sales promotion• Activation: Grand Central Station (NYC), Union Station (Chicago), Union

Station (D.C.)– Spacious, eye-catching area with large video board and at least 20 devices

available for travelers to use– Live demonstrations on big screen– Signage promoting device’s key details– Customer service representatives to answer questions or process orders– Give-aways, trivia competitions, various other activities

• Business class air/train travel

Trade-Oriented Sale Promotion• Surface department store sales training – 87• Slotting allowance:

Trade-Orientated Sale Promotion• Expo: major presence in Q1 2014 at technology-related events

and targeted business segments.

• Major highlight events:– Consumer Electronics Show: Las Vegas, January.– IPC Apex Expo: Las Vegas, March.– International Wireless Communications Expo: Las Vegas, March.– Optical Fiber Communication Conference: San Francisco, March.– Interop: Last Vegas, March

• Will re-evaluate after Q1 2014 and determine future events.

Skype, Facebook, YouTube, LinkedIn

Obj

ectiv

es

Brand Awareness

In-depth Information

PR, Sales Promotion

Facebook, YouTube

Twitter, Facebook

Social Media Promotions

• #TabTop

• USA contest to win 2000 Surface for a school

• Incorporate with other events

• Album: introducing Surface’s versatile features

• Status: news and value

Social Media Promotions

• #TabTop

• Customer feedback

• Immediate problem solving

• Incorporate with Facebook/YouTube

Social Media Promotions

• #TabTop.

• Sync all the commercial on TV.

• Videos introducing Surface’s versatile feature.

• Virus Marketing - using celebrities as Ashton Kutcher.

Social Media Promotions

Social Media Promotions

We will put the product in all the video calls that people make for free. (business person use Skype to call their families while the are traveling) and their most influential social circles as well.

PR Recommendations• Community Involvement– School giveaways, fundraising etc.

• Press Releases on software updates, Interview with the media.– Have an approachable face of upper management

• Active reactions to negative complaints– Via Twitter, Facebook, etc.

• Empower Surface proponents, get feedback.

Budget Summary

40%

15%5%

10%

15%

5%

10%

SURFACE BUDGET 2014

Media

Print

Internet

Consumer Promo

Outdoor

Public Relations

Trade Promo

US: 900 Million

Measurement/Evaluation

• Market survey already taken– Re-distribute quarterly

• Monitor sales– Especially corporate sales

• Social media buzz– #TabTop and Surface mentions– Youtube hits on #TabTop commercial series

• Customer feedback/reviews

Conclusion

Focus on features

Increase brand

recognition

Gain market share