Microsoft Group 2: Peter Fontana Kelly Wilson George Lazar Hsin-Yi Tai
Case for MS B2B Extension <ul><li>Extending Microsoft Small Business software from desktop to portal software   </li></ul>
Microsoft the Brand <ul><li>1975 Bill Gates & Paul Allen found MS, release MS Basic </li></ul><ul><li>1980 forms partnersh...
Brand Management: 1995 <ul><li>MS Brand Strategy </li></ul><ul><ul><li>Set industry standards.  </li></ul></ul><ul><ul><li...
Recurring MS Brand Strategy <ul><li>Mimicking </li></ul><ul><ul><li>Apple OS, Windows </li></ul></ul><ul><ul><li>Apple iPo...
Original Positioning <ul><li>The creator intended… </li></ul><ul><li>Bill Gates's MS vision &quot;to get a workstation run...
Modern MS, 1995-2000 <ul><li>1995 MSN.com launches as a competitor to AOL </li></ul><ul><li>1996 MSNBC cable channel launc...
Modern MS, 2000-2007 <ul><li>2000 releases Windows 2000, Windows Millennium </li></ul><ul><li>2000 Bill & Melinda Gates Fo...
Brand Management: 2007 <ul><li>MS faces tough times </li></ul><ul><ul><li>Lawsuit </li></ul></ul><ul><ul><li>Pirates Movie...
Current Positioning <ul><li>The creator intends… </li></ul><ul><li>“ At Microsoft, our mission and values are to help peop...
Going to Market <ul><li>Distribution </li></ul><ul><ul><li>Licensing deals with businesses, </li></ul></ul><ul><ul><li>har...
Going to Market <ul><li>Print </li></ul><ul><ul><li>Benefits: Niche publication for targeting specific products </li></ul>...
MS Office Bundles <ul><li>Licensing $475 per license </li></ul>
Initial Solution <ul><li>MS Office for Small Business was… </li></ul><ul><li>A comprehensive software package </li></ul><u...
Timeliness & Timelessness 1990 <ul><li>Timeliness </li></ul><ul><li>Shift in offices to technology </li></ul><ul><li>Compe...
2007 Threats <ul><li>Initial Competition </li></ul><ul><ul><li>Lotus </li></ul></ul><ul><ul><li>Netscape </li></ul></ul><u...
The MS Branding Question <ul><li>Where to from here? </li></ul><ul><li>Options: </li></ul><ul><ul><li>Remain offline softw...
Assessment: Needs <ul><li>The business market needs… </li></ul><ul><li>An increasingly mobile workforce </li></ul><ul><li>...
Foundation: Opportunity <ul><li>Creator’s Insight </li></ul><ul><li>MS invented the wheel </li></ul><ul><li>Experience wit...
Extension: MS Office Online <ul><li>Naming Strategy </li></ul><ul><li>Features     Need Fulfilled </li></ul><ul><ul><li>P...
Altered Positioning <ul><li>MS Brand effect on Office </li></ul><ul><ul><li>Lawsuit Fallout </li></ul></ul><ul><ul><li>Pro...
Brand Relevance <ul><li>MS Office Small Business is relevant </li></ul><ul><ul><li>Business customers need a familiar soft...
Timeliness & Timelessness 2007 <ul><li>Timeliness </li></ul><ul><li>Emerging competition </li></ul><ul><li>Online offering...
Brand Extension Channels <ul><li>Distribution </li></ul><ul><ul><li>MSN website </li></ul></ul><ul><ul><li>Hotmail, MSN Me...
Public Messages <ul><li>Leverage MS Brand Equity </li></ul><ul><ul><li>Office for Small Business familiarity, functionalit...
Summary <ul><li>Amid failed extensions, enter the portal software business </li></ul><ul><li>Continue MS branding strategi...
Questions, Comments? <ul><li>Group 2: </li></ul><ul><li>Peter Fontana </li></ul><ul><li>Kelly Wilson </li></ul><ul><li>Geo...
MISC. <ul><li>How are we better than Google? </li></ul><ul><li>No intend required </li></ul><ul><li>More functionality </l...
Timeliness Reference Slide <ul><li>Specify Timeliness and timely issues of the situation then and now (when product was la...
Positioning Today <ul><li>From MS website: </li></ul><ul><li>As a company, and as individuals, we value integrity, honesty...
Opposition <ul><li>History and present use of Mar-Comm Tools </li></ul><ul><li>Insert TV, print ads thru time </li></ul>
Timelessness Reference Slide <ul><li>Specify Timeliness and timely issues of the situation then and now (when product was ...
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  • Microsoft 12 6

    1. 1. Microsoft Group 2: Peter Fontana Kelly Wilson George Lazar Hsin-Yi Tai
    2. 2. Case for MS B2B Extension <ul><li>Extending Microsoft Small Business software from desktop to portal software </li></ul>
    3. 3. Microsoft the Brand <ul><li>1975 Bill Gates & Paul Allen found MS, release MS Basic </li></ul><ul><li>1980 forms partnership with IBM: MS-DOS </li></ul><ul><li>1983 releases Word </li></ul><ul><li>1985 releases Excel (for Mac), Windows OS </li></ul><ul><li>1990 releases Office, Windows 3.0 </li></ul><ul><li>1993 releases Office bundled 4.0 software </li></ul><ul><li>1995 releases Windows 95 bundled with Internet Explorer </li></ul>
    4. 4. Brand Management: 1995 <ul><li>MS Brand Strategy </li></ul><ul><ul><li>Set industry standards. </li></ul></ul><ul><ul><li>Upgrade </li></ul></ul><ul><ul><li>Push volume sales, exclusive contracts </li></ul></ul><ul><ul><li>Leverage industry standard position with new products </li></ul></ul><ul><ul><li>Integrate, extent, and simplify products </li></ul></ul><ul><li>Slogan during 1995 </li></ul>
    5. 5. Recurring MS Brand Strategy <ul><li>Mimicking </li></ul><ul><ul><li>Apple OS, Windows </li></ul></ul><ul><ul><li>Apple iPod, Zune MP3 player </li></ul></ul><ul><ul><li>Sony Playstation, XBox </li></ul></ul><ul><ul><li>Lotus 1-2-3, MS Office </li></ul></ul><ul><li>Bundling Brand Strategy </li></ul><ul><ul><li>Bundling Office quashed competitors Word Perfect, Lotus 1-2-3 </li></ul></ul><ul><ul><li>Perceived value with more software </li></ul></ul><ul><ul><li>“ 80% of users used less than 20% of features” </li></ul></ul><ul><ul><li>Bundling IE / Windows quashes competitors (Netscape, AOL) </li></ul></ul>
    6. 6. Original Positioning <ul><li>The creator intended… </li></ul><ul><li>Bill Gates's MS vision &quot;to get a workstation running our software onto every desk and eventually in every home“ </li></ul><ul><li>Buisness customer positioning… </li></ul><ul><li>Microsoft is the industry standard </li></ul>
    7. 7. Modern MS, 1995-2000 <ul><li>1995 MSN.com launches as a competitor to AOL </li></ul><ul><li>1996 MSNBC cable channel launches </li></ul><ul><li>1997 buys Hotmail, email website </li></ul><ul><li>1997 Government sues for anti-competitive practices </li></ul><ul><li>1997 MS invests $150m in Apple; in return </li></ul><ul><li>Apple ships MS software on Macs </li></ul><ul><li>1998 releases Windows 98 </li></ul><ul><li>1999 releases MSN Instant Messenger </li></ul><ul><li>1999 TNT movie “Pirates of Silicon Valley” </li></ul><ul><li>2000 Decision in US Vs Microsoft </li></ul><ul><ul><li>Forced to split into two units: </li></ul></ul><ul><ul><li>OS, other software components </li></ul></ul>
    8. 8. Modern MS, 2000-2007 <ul><li>2000 releases Windows 2000, Windows Millennium </li></ul><ul><li>2000 Bill & Melinda Gates Foundation founded </li></ul><ul><li>2001 releases Windows XP, XBox </li></ul><ul><li>2002 MS reorganizes, 3 parts </li></ul><ul><ul><li>Platform Products & Services; Business; Entertainment & Devices </li></ul></ul><ul><li>2004-2006 MS Consumer Product Extensions </li></ul><ul><li>2006 Apple launches “Get a Mac” anti-MS campaign </li></ul><ul><li>2006 Google launches Documents </li></ul><ul><li>2007 releases Vista and Office 2007 </li></ul><ul><li>MS is among the world’s Top 3 </li></ul><ul><li>Most Recognized Brand Names </li></ul><ul><li>-Business Week </li></ul>
    9. 9. Brand Management: 2007 <ul><li>MS faces tough times </li></ul><ul><ul><li>Lawsuit </li></ul></ul><ul><ul><li>Pirates Movie </li></ul></ul><ul><ul><li>Rise of Apple, iPod </li></ul></ul><ul><ul><li>Rise of Google </li></ul></ul><ul><ul><li>Vista/Office ‘07 Early Flop </li></ul></ul><ul><ul><li>Open Source </li></ul></ul><ul><li>Brand leverage, ext </li></ul><ul><ul><li>XBox (2001) </li></ul></ul><ul><ul><li>Smart Watch (2004) </li></ul></ul><ul><ul><li>Zune MP3 Player (2006) </li></ul></ul><ul><li>Dot Net Hesitation </li></ul>
    10. 10. Current Positioning <ul><li>The creator intends… </li></ul><ul><li>“ At Microsoft, our mission and values are to help people and businesses throughout the world to realize their full potential.” </li></ul><ul><li>Buisness customer positioning… </li></ul><ul><li>Though a monopoly and with consideration for emerging alternative software, Microsoft is still the industry standard in business software </li></ul>
    11. 11. Going to Market <ul><li>Distribution </li></ul><ul><ul><li>Licensing deals with businesses, </li></ul></ul><ul><ul><li>hardware distributors </li></ul></ul><ul><ul><li>Consumer outlets, online </li></ul></ul><ul><li>Speaking, Conferences </li></ul><ul><ul><li>Comdex, IT exhibition </li></ul></ul><ul><ul><li>Product Launches </li></ul></ul><ul><ul><li>Benefits: leadership in technology, presence in business, press </li></ul></ul><ul><li>Television: </li></ul><ul><ul><li>MS Brand Commercial </li></ul></ul><ul><ul><li>Achieve Your Potential Ad, small biz </li></ul></ul><ul><ul><li>Benefits: Mass media channel to announce new products, profiling customers and use of MS products </li></ul></ul>
    12. 12. Going to Market <ul><li>Print </li></ul><ul><ul><li>Benefits: Niche publication for targeting specific products </li></ul></ul><ul><li>Promotion </li></ul><ul><ul><li>Outdoor, web (MSN, Hotmail, Messenger) </li></ul></ul><ul><ul><li>Benefits: Mass audience, clever placement </li></ul></ul>
    13. 13. MS Office Bundles <ul><li>Licensing $475 per license </li></ul>
    14. 14. Initial Solution <ul><li>MS Office for Small Business was… </li></ul><ul><li>A comprehensive software package </li></ul><ul><ul><li>Word Processing </li></ul></ul><ul><ul><li>Presentations </li></ul></ul><ul><ul><li>Spreadsheets </li></ul></ul><ul><ul><li>Email </li></ul></ul><ul><li>An industry standard </li></ul><ul><ul><li>Skills job-to-job </li></ul></ul><ul><ul><li>Data transfer </li></ul></ul><ul><li>Periodically updated </li></ul>
    15. 15. Timeliness & Timelessness 1990 <ul><li>Timeliness </li></ul><ul><li>Shift in offices to technology </li></ul><ul><li>Competition in PC software </li></ul><ul><li>Component Packaging </li></ul><ul><li>Timelessness </li></ul><ul><li>Electronic archiving </li></ul><ul><li>Cost-effective </li></ul><ul><li>Space saving </li></ul><ul><li>Efficiency </li></ul><ul><li>Word processing, presentation, spreadsheets </li></ul>
    16. 16. 2007 Threats <ul><li>Initial Competition </li></ul><ul><ul><li>Lotus </li></ul></ul><ul><ul><li>Netscape </li></ul></ul><ul><ul><li>Apple </li></ul></ul><ul><li>Emerging Competition </li></ul><ul><ul><li>Google Documents Portal Software </li></ul></ul><ul><ul><ul><li>Mimicked MS Office: Word, Excel, PowerPoint </li></ul></ul></ul><ul><ul><ul><li>Targets Consumers </li></ul></ul></ul><ul><ul><ul><li>Free, plus storage </li></ul></ul></ul>
    17. 17. The MS Branding Question <ul><li>Where to from here? </li></ul><ul><li>Options: </li></ul><ul><ul><li>Remain offline software provider </li></ul></ul><ul><ul><ul><li>Retain Market Share </li></ul></ul></ul><ul><ul><ul><li>Continue to extend, mimic, beat by bundling </li></ul></ul></ul><ul><ul><li>Enter portal software market </li></ul></ul><ul><ul><ul><li>Combat emerging threats </li></ul></ul></ul><ul><ul><ul><li>Translate mimicking and bundling strategies </li></ul></ul></ul>
    18. 18. Assessment: Needs <ul><li>The business market needs… </li></ul><ul><li>An increasingly mobile workforce </li></ul><ul><li>Cost-effective software solutions, global </li></ul><ul><li>A reason not to switch from Microsoft </li></ul><ul><li>Emerging alternatives </li></ul><ul><li>Efficient software </li></ul><ul><li>Files in a universal format </li></ul><ul><li>A familiar look/feel to software </li></ul><ul><li>Convenient software updates </li></ul>
    19. 19. Foundation: Opportunity <ul><li>Creator’s Insight </li></ul><ul><li>MS invented the wheel </li></ul><ul><li>Experience with small business software </li></ul><ul><li>Competitor Doppelgangers </li></ul><ul><li>Brand Value Opportunity </li></ul><ul><li>Mobility </li></ul><ul><li>Own small business market share </li></ul><ul><li>Proprietary functionality </li></ul><ul><li>Bandwidth increases </li></ul><ul><li>Isolate competitive threats </li></ul><ul><li>Offer both desktop and portal solution </li></ul>
    20. 20. Extension: MS Office Online <ul><li>Naming Strategy </li></ul><ul><li>Features  Need Fulfilled </li></ul><ul><ul><li>Portal Software  Mobility </li></ul></ul><ul><ul><li>Free  Cheap Software Solution </li></ul></ul><ul><ul><li>Limited function  “Good enough” theory </li></ul></ul><ul><ul><li>Online bundle  Familiar </li></ul></ul>
    21. 21. Altered Positioning <ul><li>MS Brand effect on Office </li></ul><ul><ul><li>Lawsuit Fallout </li></ul></ul><ul><ul><li>Product Extensions </li></ul></ul><ul><ul><li>Gates Foundation </li></ul></ul><ul><ul><li>Vista, Office ’07 </li></ul></ul><ul><ul><li>.Net Decision </li></ul></ul><ul><li>Brand strategy going forward… </li></ul><ul><li>Microsoft should leverage its leadership status in offline technologies to emerging technologies </li></ul><ul><li>Business customer positioning going forward… </li></ul><ul><li>Microsoft is the industry leader in emerging business technologies </li></ul>
    22. 22. Brand Relevance <ul><li>MS Office Small Business is relevant </li></ul><ul><ul><li>Business customers need a familiar software bundle </li></ul></ul><ul><ul><li>Software has evolved to match changing needs </li></ul></ul><ul><li>Online extension is relevant </li></ul><ul><ul><li>Mobile Work Environment </li></ul></ul><ul><ul><li>Wi-Fi, Smart Phone mobile devices </li></ul></ul><ul><li>Extension is relevant to MS Brand </li></ul><ul><ul><li>Remain market leader for small business </li></ul></ul><ul><ul><li>Enter portal software market </li></ul></ul><ul><ul><li>Leverage mimicking, bundling strategies with innovation </li></ul></ul>
    23. 23. Timeliness & Timelessness 2007 <ul><li>Timeliness </li></ul><ul><li>Emerging competition </li></ul><ul><li>Online offerings </li></ul><ul><li>Mobile workforce </li></ul><ul><li>Cost-conscious business startups </li></ul><ul><li>Value-adding competitive strategy </li></ul><ul><li>Timelessness </li></ul><ul><li>Efficiency </li></ul><ul><li>Convenience </li></ul><ul><li>Universal business file format </li></ul><ul><li>Cost-effective software solution </li></ul><ul><li>Familiar functionality </li></ul>
    24. 24. Brand Extension Channels <ul><li>Distribution </li></ul><ul><ul><li>MSN website </li></ul></ul><ul><ul><li>Hotmail, MSN Messenger </li></ul></ul><ul><ul><li>Desktop Icon bundled with Windows, Office </li></ul></ul><ul><ul><li>Small Business Hardware Distributors </li></ul></ul><ul><li>Public Messages & Promotion </li></ul><ul><ul><li>Online </li></ul></ul><ul><ul><li>Continue existing media campaigns </li></ul></ul><ul><ul><ul><li>TV, Print, & Conferences targeting small business </li></ul></ul></ul><ul><ul><ul><li>Provoke Google into advertising </li></ul></ul></ul>
    25. 25. Public Messages <ul><li>Leverage MS Brand Equity </li></ul><ul><ul><li>Office for Small Business familiarity, functionality </li></ul></ul><ul><ul><li>MS reputation for integration, simplicity </li></ul></ul><ul><ul><li>Perceived value bundling with desktop software </li></ul></ul><ul><ul><li>Target business; consumers will follow </li></ul></ul>
    26. 26. Summary <ul><li>Amid failed extensions, enter the portal software business </li></ul><ul><li>Continue MS branding strategies: bundling, mimicking </li></ul><ul><li>Leverage Brand Equity </li></ul><ul><li>Utilize web-based products for distribution </li></ul><ul><li>Protect core business </li></ul>
    27. 27. Questions, Comments? <ul><li>Group 2: </li></ul><ul><li>Peter Fontana </li></ul><ul><li>Kelly Wilson </li></ul><ul><li>George Lazar </li></ul><ul><li>Hsin-Yi Tai </li></ul>
    28. 28. MISC. <ul><li>How are we better than Google? </li></ul><ul><li>No intend required </li></ul><ul><li>More functionality </li></ul><ul><li>Point of Reference / Comfort / Intuitive </li></ul><ul><li>In Software package: </li></ul><ul><li>Accounting express 2007 </li></ul><ul><li>Excel </li></ul><ul><li>Outlook / entourage </li></ul><ul><li>Ppt </li></ul><ul><li>Publisher </li></ul><ul><li>Word (83) </li></ul><ul><li>Nice to have: Sync between Outlook and hotmail </li></ul>
    29. 29. Timeliness Reference Slide <ul><li>Specify Timeliness and timely issues of the situation then and now (when product was launched and now) </li></ul><ul><ul><li>THEN (1990) </li></ul></ul><ul><li>Shift from word process off PC to ON </li></ul><ul><li>Competition by other PC software --> Word Perfect / Lotus </li></ul><ul><li>Component Packaging with OS </li></ul><ul><ul><li>NOW </li></ul></ul><ul><li>Emerging Competition Google and online platfors </li></ul><ul><li>Need for Software/File Access Mobility </li></ul><ul><li>Need for Free Software Solution for domestic Business Biz Stat-Ups and int’l biz (price prohibitive) </li></ul><ul><li>Maintaining Relationships with MS Customers (add Value to product) in light of emerging alt’s </li></ul>
    30. 30. Positioning Today <ul><li>From MS website: </li></ul><ul><li>As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self-criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality. </li></ul><ul><li>MS Small Business provides an intuitive product to equip workstations with the tools that fulfill the software technology needs of businesses. </li></ul><ul><li>Slogan Today </li></ul><ul><li>“ At Microsoft, our mission and values are to help people and businesses throughout the world to realize their full potential.” </li></ul>
    31. 31. Opposition <ul><li>History and present use of Mar-Comm Tools </li></ul><ul><li>Insert TV, print ads thru time </li></ul>
    32. 32. Timelessness Reference Slide <ul><li>Specify Timeliness and timely issues of the situation then and now (when product was launched and now) </li></ul><ul><ul><li>THEN </li></ul></ul><ul><li>Need for Word Processing/other </li></ul><ul><li>Need for Electronic Archiving and doc’s etc. </li></ul><ul><li>Cost effective </li></ul><ul><li>Need for Efficiency </li></ul><ul><ul><li>NOW </li></ul></ul><ul><li>Need for Efficiency in online world </li></ul><ul><li>Consistent Formatting Universal Language </li></ul><ul><li>Cheap Software Solution </li></ul><ul><li>Familiar Software Look/Feel </li></ul>
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