Marketing Plan to Launch Windows 7

Presented by:

P Santosh Kumar

Prabal Pr. Singh

Pushkar Kr. Singh

Rajani Singh

Rajeev Kumar

Varun Dhupar

• Launched MS-DOS in Mid – 1980s

• Followed it up by Windows line of Operating systems

• Other offerings are XBOX-360, MSN, MSN-TV, Zune, MSNBC Network.

• The original Microsoft mission was:

“A computer on every desk and in every home, running Microsoft software”

View through the Window• 1986 -> Windows 1.0

• 1989 -> Office with Excel and Work

• 1990 -> Windows 3.0 sold 100,000 copies in 2 weeks

• 1991 -> Windows 3.1 with 1st TV promotional campaign

• 1993 -> Became most used OS in the world

• 1993 -> Awarded most innovative company by forbes

• 1994 -> Where do you want to go today campaign launched

• 1995 -> Windows 95 with start button, sold million copies in 4 days

• 2001 -> XP with interface and both home and professional features

• 2004 -> Tagline changes to “Your potential, Our Passion”

Windows Vista• Started 5 months

before the launch of Windows XP under the name “longhorn”

• Provided more aesthetic and user friendly graphics

• Added new feature of gadgets and authorization window

• Completely restructured the windows architecture

• Focus on security

Windows Vista Release

• Success depended on willingness of user to upgrade from XP

• Vista was very complex and intensive system and only a minor fraction of available PCs could support it

• For the first time multiple options were present depending on the need of the customer

• Price varied from $199 to $399 from basic to ultimate edition.

• More costly in Europe than in US

• Upgrade price range from $99.95 to $259

Windows Vista Editions

Starter

Home Basic

Home Premium

Business Basic

Vista En-terprise

Vista Ultimate

Customer Response

• Despite $500 million “wow” campaign, Vista only sold 100,000 copies in its first week

• Only 5% XP users upgraded to Vista one year after the release

• PC world rated Vista “The biggest Technology Disappointment of 2007”

• Infoworld placed Vista at no. 2 of all the technology flops.

• Despite lowering the price, XP was still winning the race.

• Some people were even downgrading.

• At the end of 2009, Vista Market Share was only 23.42% against 62.85% of XP.

What went wrong?• Computing requirements were too high

• Vista was slower then XP

• Consumer battery about 13 to 15% faster than XP

• Gaming was slower than XP.

• Not compatible with pre-Vista hardware and software

• Unavailability of drivers for older software and hardware

• Newly updated software were highly unstable

• Too many User Access Control prompt messages

• Too expensive

• Naming every PC as Windows Vista Capable

The Strategy Clock: Bowman’s Strategic Options

Differentiation

Low Price

Hybrid

Focused Differentiation

Low PriceLow Added Value

Low Price High

HighLo

wPe

rceiv

ed

Add

ed

Valu

e

Strategies destined for ultimate failure

Windows 7

• Development began just after the release of Vista with focus on improving performance

• Will support all Vista compatible applications

• New XP mode added to support XP compatible application

• New Security features as “Windows Action Center”

• Four level in User Account Control

• New Windows interface: New Taskbar, Quick Launch replaced with pinning, jump lists, preview pane interaction, Aero Shape and Aero Shake features

Pre- Release Response

“Windows 7 is less waiting, fewer clicks and less complexity”

• Beta version was release in Jan 2009 for first 2.5 million downloader's to experience Windows 7 first hand.

• Received favorable reviews from various critics like Gizmodo

• Beats XP and Vista in several key areas, including boot time, opening files and loading documents

• Windows 7 worked miraculously on Netbooks beating XP in terms of performance

COMPETITIVE ANALYSIS

Porter’s five forces Analysis

COMPETETIVE

RIVALRY

Threat of new Entrants

Bargaining power of Suppliers

Threat of substitute products

Bargaining power of Buyers

Apple

• The biggest competition is Apple Computers

• Manufactures both Macintosh computers as well as Mac OS

• Has reputation of being high quality and extremely user friendly

• Is perceived as a “cool” laptop/computer

• Rapidly increasing market share; went from 5% in 2006 to 11% in 2008

• 40% people said that their next purchase will be Mac

• Mac Vs. PC ad campaign

Google Docs

• Microsoft Office is the 2nd largest revenue source and upgradation jumps near the new OS release

• Office costs $300 to $400 dollars

• Google docs allows people to create and save presentations, word documents, excel and forms online

• Google docs is FREE

Netbooks

• Netbooks are small laptops running on atom processor which are becoming increasingly popular.

• They do not have the computation power needed to support Vista.

• Netbooks comes with lighter XP, Linux and Google Android (Acer)

CRUX OF THE MATTER

How could carefully executed advertising, pricing and product decisions enable Microsoft to revive consumer perceptions and realize Windows 7’s potential?

Market development Strategy(Ansoff Matrix)

Market Penetration

S

Diversification

S

Product Development

SMarket

Development

S

Windows Vista, Windows XP Windows7

US and European Markets

Emerging Markets

SWOT ANALYSIS OF WINDOWS 7

Strengths:

• Windows is the most widely used OS in the world.

• Windows 7 performance is better than Vista as well as XP.

• The GUI has many new feature to make it look better and “cool”

• The media suite and improved security features.

• Enhanced User account control and netbook capability

• The beta version has received positive response from users as well as critics.

• XP mode to support XP compatible software and full Vista compatibility

Weaknesses:

• Vista promises were not delivered and Microsoft missed the target

• High number of security threats with respect to any other OS in the world

• High cost of development which results in high price of the software

• Windows is known as unstable software with too many features

• Many anti trust lawsuit have tarnished the image

Opportunities:

• XP is 8 years old and Vista penetration is low so many people are looking for upgradation

• Downgrading to XP is becoming more and more expensive

• Hardware is getting cheaper and high computation PC are now common.

• PC is a lot cheaper than Mac

• Higher number of models in different configurations and colors offer more choices

• Gaming is becoming more and more popular

• Almost all organizations use Windows and will upgrade to Windows 7 if the performance is better

Threats:• The success depends on convincing people

to upgrade

• Perceived cool image of Apple due to Mac vs. PC ads.

• The rate with which market share of Apple in increasing and popularity with students.

• Non – availability or delay of any driver may cause similar backlash against Windows 7

• High cost in Europe

• High popularity of XP

• Linux and Android OS for netbooks are free

MARKETING STRATEGY FOR WINDOWS 7 – 7P’S

Product

• Windows 7 should have 4 versions:

1. Basic for Netbooks

2. Home edition

3. Professional Edition

4. Ultimate Edition

• Microsoft should devise a phasing out plan for Windows Vista and XP should be completely eliminated.

• XP should be completely replaced by Windows 7 in netbooks.

• Windows Enterprise edition will be launched only for Companies having Software Assurance contract with Microsoft.

Price• An upgrade from Vista will result in additional $50

discount from the prices mentioned below.

• Sell the product on about the same price in Europe

• Netbook license to be as cheap as possible like $25.

• Windows 7 Home Premium (Upgrade): $99.99

• Windows 7 Professional (Upgrade): $125.99

• Windows 7 Ultimate (Upgrade): $174.99

• Windows 7 Home Premium (Full): $199.99

• Windows 7 Professional (Full): $224.99

• Windows 7 Ultimate (Full): $274.99

Promotion

• A whole new advertising campaign should be launched using the differentiation approach with more emphasis on enhanced performance.

• The advertising campaign should make use of Print, Television, with major role of social networking sites.

• Open pre-orders online on a discounted price

• Should increase the focus on small business which do not have proper IT facilities by giving a discount.

• This should include all features of Windows7 Home premium + Remote Desktop server, Encrypting File System, XP mode, and Presentation mode

• A new Mac vs. PC as parody series should be launched highlighting the benefits of PC over Mac.

Windows 7 Print Ad

Place

• The distribution strategy should remain the same with Windows 7 being available in electronics stores as well online.

• Microsoft should open exclusive stores where people can buy various Microsoft products excluding laptops.

• Various device drivers should be made available online for free download on Microsoft site.

• Online site can be used to place orders which can be later picked up from the nearest store.

People

• On the lines of Mac Genius, specialized Windows expert should be available in Microsoft exclusive stores to help with customer issues.

• Microsoft should launch a feedback program in which people will be encouraged to give suggestions.

• Monetary reward should be offered for the ideas which get implemented

Process

• To prevent piracy, upgrades and updates will be provided to only registered customers.

• Advance encryption will be used to make registration process automatic and fool proof.

• The Windows expert, in the exclusive Microsoft stores, will provide customized service to small business owner which includes help in getting started to solving the problems related to setting up a local network.

Physical Evidence

• The packaging of the current Vista DVD is bulky and should be more streamlined keeping up the image of Windows 7

• A dedicated 24*7 toll free telephonic support for initial 3 months in order to help people with Windows 7 upgrade issues.

• The web site will have chat option on which the user can chat with an CSR to solve everyday problems can be implemented in the longer run.

Thank You !