Final dissertation: Bing integrated marketing communications plan

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Final dissertation: Bing integrated marketing communications plan

  1. 1. Taking Bing to the next level in the UKIncreasing Bing awareness and market share through an integrated marketing communications campaign 4MMC7A9 CAMPAIGN PLANNING PROJECT Module leader: Anne Barker Supervisor: Nigel Bradley Juan Mejia 13549275 September 2012 1
  2. 2. Table of ContentsExecutive Summary....................................................................................................................................... 5Introduction .................................................................................................................................................. 7Campaign Rationale .................................................................................................................................... 12 Macro Analysis ........................................................................................................................................ 12 PESTEL Analysis ....................................................................................................................................... 12 SWOT Analysis......................................................................................................................................... 12 Micro (internal) Analysis ......................................................................................................................... 13 Market and industry definition and parameters .................................................................................... 15 Market dynamics and trends .................................................................................................................. 15 Competitor evaluation ............................................................................................................................ 16 About Microsoft ...................................................................................................................................... 17 The Microsoft brand ............................................................................................................................... 18 Microsoft’s Marketing Communications ................................................................................................ 19 Marketing and brand analysis ................................................................................................................. 19 Marketing comparison chart .................................................................................................................. 21 Financial Analysis .................................................................................................................................... 22 Microsoft Online services division financial information ....................................................................... 23 Financial performance by company ........................................................................................................ 23The brand opportunity for Microsoft ......................................................................................................... 26 Strategic Context of the proposition ...................................................................................................... 26 Business Objective .................................................................................................................................. 27 Marketing Objectives .............................................................................................................................. 27 The role of Integrated Marketing Communications in this campaign .................................................... 29Marketing Communications Objectives ...................................................................................................... 36Understanding the target audience and background ................................................................................. 38 Market size.............................................................................................................................................. 39Target market ............................................................................................................................................. 41 Consumer profiles ................................................................................................................................... 41 Branding issues ....................................................................................................................................... 41 Brand aura personality, essence, strength ............................................................................................. 42 2
  3. 3. Positioning changes proposed and consumer implications.................................................................... 42The Campaign Delivery Recommendations summary of agency proposals ............................................... 44 The insight ............................................................................................................................................... 44 A summary of the trends ........................................................................................................................ 44 Implications for this campaign ................................................................................................................ 46Strategic approach ...................................................................................................................................... 48 Public relations Strategy and Tactics ...................................................................................................... 49 Advertising strategy ................................................................................................................................ 51 Direct and interactive marketing - experiential advertising ................................................................... 56 Public transport spaces to communicate on the go ........................................................................... 56 Static bus adverts ................................................................................................................................ 57 Interactive screens in tube stations .................................................................................................... 57 Large interactive boards in tube stations ........................................................................................... 58 Projection in tube stations .................................................................................................................. 58 Shopping and entertainment experience ........................................................................................... 59 Direct and interactive marketing - Online advertising............................................................................ 60 Direct and interactive marketing - Social media..................................................................................... 63 Direct and interactive marketing - SMS .................................................................................................. 63 Direct and interactive marketing - email ................................................................................................ 64 Club Bing - a loyalty program .................................................................................................................. 64 Viral video ............................................................................................................................................... 65 Events strategy and tactics ..................................................................................................................... 66Measuring results across interactive media ............................................................................................... 67 Horizontal integration ............................................................................................................................. 68 Vertical integration ................................................................................................................................. 68Activities by month ..................................................................................................................................... 69Budget ......................................................................................................................................................... 70 Media plan and budget ........................................................................................................................... 72Evaluation ................................................................................................................................................... 74Appendixes.................................................................................................................................................. 75Appendix 1: Analysis models ...................................................................................................................... 76 PESTEL ..................................................................................................................................................... 76 3
  4. 4. SWOT Analysis......................................................................................................................................... 77Appendix 2: Consumer profiles ................................................................................................................... 78 Background information about Technology target groups .................................................................... 78 The mobile world .................................................................................................................................... 80 Data specifics from the target audience ................................................................................................. 82Appendix 3: insights and background for strategy ..................................................................................... 89 The smartphone boom and access across platforms ............................................................................. 89 Smartphones are an important means of accessing the Internet .......................................................... 91 Most popular websites ........................................................................................................................... 91 Access of content in smartphones .......................................................................................................... 93Appendix 4: Mosaic descriptions ................................................................................................................ 96 Group O: Liberal Opinions....................................................................................................................... 96 Group H: New Homemakers ................................................................................................................... 97 ACORN Groups ........................................................................................................................................ 99References and bibliography .................................................................................................................... 100Word count: 14,264 4
  5. 5. Executive SummaryDespite Microsoft being one of the leading brands in the world, Bing -its search engine-, struggles to geta significant market share in the UK. Google currently dominates more than 92% of the searches in theUK, and this has been a stable trend through the past years, where it has maintained its dominance.Despite Bing developing a series of campaigns since its launch in 2008, they havent been able to achievea clear proposition and dont have a clear USP in the UK. With a market that invests over £2.6 billion ayear in online advertising, and search being the largest proportion of this investment, Bing has tourgently increase their market share.Despite high barriers of entry, other companies such as Apple have already moved into the maps serviceand Bing needs to establish itself before others come into this market.The following document intends to analyse the opportunities for Bing in the UK market, takingadvantage of the move of users towards accessing the Internet in their smartphones, the increase use ofmultiple devices, and capitalizing on some other trends that will change the market in the following 12months.We have selected a specific target audience called the Tech Enthusiasts, which is technologically savvyand they are very good multipliers of their knowledge. Furthermore, they represent 39% of the UKmarket.Based on this, we will develop a national campaign based on capitalizing on the touch points of thistarget, with a major emphasis in media that are across their daily lives journey. With an averageinvestment of £15.8 million, the campaign will aim to drive an increase of 2.1 million unique new usersand take the search market share from 4.9% to 10%. The following chart (shown in the top next page)shows the distribution of the investment of the campaign in the different channels. 5
  6. 6. The integrated marketing communications campaign includes advertising (outdoor, free tabloids anddigital, corporate and product public relations, direct and interactive marketing (SMS, email, socialmedia and a loyalty program), with events, in order to create an experience around the Bing brand.Lastly, the campaign develops around a communication platform that aims to communicate the aspectsthat the analysis identified as trends to capitalize on: mobility (smartphones, tablets and navigationacross devices), the spare time of users during their commute and the importance of social networks inthe UK. The campaign creative concept and brand essence that captures all this in a phrase is "Bing, oursearch mate on the go".This campaign will have duration of three months, from September to the end of November in 2012,and will be measured through specific objectives, but will also be supported by qualitative andquantitative research to ensure that the best outcomes are delivered.Finally, the campaign will be measure with a pre tracking study of brand awareness and another onedeveloped after the campaign. In terms of other evaluation metrics, there are a series of stated metricsin each of the direct marketing channels, but also a series of qualitative sessions will be developed totest message effectiveness, copy, ads, etc. 6
  7. 7. IntroductionThe purpose of the following document is to present the opportunity that Microsoft has in the UK tobecome a leading brand, strengthening its marketing communications and winning in the consumermarket around one of its flagship services and revenue creators: Bing. The aim of this project is to builda brand and relationship between Microsoft and the consumers in the UK, building a platform to sell theBing as an entry point to the consumers’ life, and as a result increase the positioning of the consumerbrand which according the Consumer Superbrands report of 2012 in the UK, is in 45th position of theranking.Despite Microsoft having a very important profitability ratio and a continuous annual growth in revenue,the Online Services division continues to lose money every year, which means it cannot be sustainablefor a long time. An integrated marketing communications plan is required to leverage all the strengthsthat Microsoft has with Bing, but that has not been able to fully exploit, and to achieve Microsoft’sbusiness objective of using Bing as an interaction platform with consumers.The following chart shows the search engine share by engine in the UK, as of July 2012, where you canclearly observe Google’s dominance in the local market.Search Engine Market ShareJuly, 2012 (Geographic and Demographic Filter: Country = United Kingdom)Search Engine Total Market ShareGoogle - Global 88.64%Bing 5.27%Yahoo - Global 3.07%Ask - Global 2.15%AOL - Global 0.56%Source: Netmarketshare.com July 2012 7
  8. 8. For Bing to be able to be able to increase their market share in the UK market, they need to takeadvantage of one of the major opportunities in the current environment: smartphones and mobileplatforms.According to UKOM (2012) report “in 2011, expenditure on mobile advertising rose to £203m, morethan double that of 2010, and representing like-for-like growth of 157%88. Since 2008, mobileadvertising revenues have grown seven-fold and in the same time the proportion of adults using theirmobile phone to access the Internet has doubled (20% to 39%).”Furthermore “the UK Communications Market Report 2011 highlighted the rise of the mobile Internetand the likelihood that smartphone take-up was the primary driver of the increasing use of data servicesavailable on mobile phones89. It is also likely that smartphone take-up is the driver behind the growthof mobile advertising. Smartphones appear to facilitate the use of the mobile Internet, increasing themobile Internet audience and making the platform a more attractive proposition for advertisers.Furthermore, the technological capabilities of today’s smartphones, such as touchscreens, large high-definition displays, high-speed processors, and operating systems capable of installing apps, present awider range of creative opportunities for advertisers.” 8
  9. 9. And the advertising income and investment is not increasing for just any reason. Advertising investmentfollows consumers and what they do. As the following chart shows, the ownership of portable devices inthe UK is very high and is due to get as high as that of PCs and laptops.Furthermore, the use of data services from mobile devices has increased rapidly and is due to continuegrowing significantly as consumers upgrade into devices like smartphones and tablets, which allow usersto user data services wherever they are. 9
  10. 10. Currently, Google is clearly the leader in the search market in the UK, with Bing only getting 4.9 percentof the real unique audience. But the truth is that even though all the other categories (Social Networks,Online Shopping and News and Information) have already made a big entrance in the mobile arena,none of the search engines has done so. Both Google and Bing have currently mobile apps and mobilesites which offer the same functionality as their websites, but none has really explored this as acommunication approach to try to capture their mobile audiences in a more compelling way.According to UKOM (2012) “Search on desktop and laptop computers seems to be levelling off. Therehas been little growth in the unique audiences of search engines on desktop and laptop computers.Between March 2011 and March 2012 Google Search remained the most popular search engine in theUK. The average number of unique visitors per month was 31.9 million. In the same period Google’scompetitor search engines Yahoo! Search (6.1 million unique visitors per month on average) and BingWeb (6.1 million) attracted less than a fifth as many visitors, while Google Image Search hadapproximately twice their unique audience (11.9 million). Yahoo! Search and Bing Web experienceddeclines in unique audience of 32% (to 5.1 million) and 40% to (4.9 million) respectively between March 10
  11. 11. 2011 and March 2012. Competitor Google’s search and image search have not obviously benefitted,with both also declining slightly, by 3% and 12% respectively. ““Possibly in a bid to mitigate these respective declines, Yahoo! Search has been entirely powered byBing Web since October 2011 and there is a revenue-sharing deal on search advertising in placebetween Yahoo! and Microsoft. The top-level measure of total search reflects the trend, seen acrossYahoo!, Bing and Google, of growth apparently levelling off on desktop and laptop computers. This couldbe due in part to search transferring to mobile devices. In PC and Mobile UK Internet Trends H2 2011,Enders Analysis claims that while there are still fewer search engine page views on mobile, the intensityof use is now greater than on desktop and laptop computers. In the UK in December 2011, 5.1 pageviews per hour were the average on mobile, compared to 4.1 on desktop and laptop computers.98However, Figure 4.48 below also suggests that social networking might be beginning to rival searchengines in terms of directing web traffic.”This means that the market is shaking and even though Google remains as the overall leader, the mobileplatform could be a game changer that would make a difference in the market share in the next year.Furthermore, the UKOM report says that “nearly two-thirds of the entire online audience in the UK areon Facebook. Facebook is the most popular social networking site in the UK, with a unique audience forMarch 2012 of 25.7 million. In that month, 64% of the entire online audience went on Facebook.Globally, Facebook had 901 million active users by the end of March 2012. That is equivalent to nearlyhalf of the two billion people currently online in the world. Therefore, Facebook’s popularity is moreconcentrated in the UK. Twitter (6.2 million unique visitors per month), LinkedIn (4.0 million), Google+(2.5 million), Myspace (1.5 million) and Friends Reunited (0.7 million) are much smaller socialnetworking sites in comparison.”This is an important opportunity for Bing, as Facebook signed a deal for Bing to be the provider of all ofits searches, which is something that the brand needs to capitalize on and communicate further. 11
  12. 12. Campaign RationaleMacro AnalysisAs we have seen, there are certain opportunities to be explored as this is a very dynamic market thatchanges in less than a year. The following sections, will explore different issues that of the Macroenvironment where Microsoft can capitalize with Bing and win in the medium term.PESTEL AnalysisThe following analysis summarizes the current situation of the competitive landscape for Bing andMicrosoft in the UK. Further thoughts about the opportunities and in depth views of the implications areexplored in the following section.According to the PESTLE analysis, there is an opportunity for Bing due to the end of the search servicesprovided by Yahoo, and due to the dominant position of Google that is currently being under questionby the EU. Another opportunity is the move of people accessing the Internet from mobile devices,where Google hasn’t made much emphasis. The alliance of Bing with Facebook provides a platform totake advantage of the social sharing trend. Price is the same for all competing products. Importance ofexploring and taking advantage of the trend of mobile search while shopping. For the full developmentof the PESTEL analysis, refer to Appendix 1.SWOT AnalysisAccording to the SWOT analysis, Microsoft has a lot of strengths that it has to leverage to be able to winin the search engine category. Although the market share of Google is dominant, the technologylandscape is changing rapidly and this could imply that there could be a new winner in a short term.Other companies with the technological capabilities and financial strength, such as Apple and Oracle, 12
  13. 13. could easily enter this market if Google continues to be the only significant player, as online advertisingrevenues continue to soar, these companies might find it an interesting business.Therefore, the opportunity for Microsoft is now and it has to leverage all their existing assets for Bing interms of mobile sites, inter platform resources and enhanced technology with Facebook interaction, toposition itself in the search business and gain market share.In summary, from the SWOT Analysis, Microsoft still has a strong brand, but very its position is very lowin the UK. The change of names in its search engine has made difficult the positioning and the currentpenetration of this service is very low (around 3%). In terms of interesting opportunities, the mobiledevices trend provide great opportunity to leverage the Bing app due to an increase share insmartphones and Internet usage on the go. People looking to search on the go for comparing products isa major trend to be exploited. To see the entire development of the SWOT analysis, please refer toAppendix 1.Micro (internal) AnalysisThe search industry on the global basis is quite small. There are very few competitors with a globalreach, as the needs, costs and infrastructure to support search in different countries, languages and todevelop a global reach, is not an easy task to do. The main players in this industry are Microsoft, Yahooand Google.Much has been analysed in terms of the differences between search engines, with the overall conclusionis that they perform very similarly and each one specifically has some strong points and some weakpoints.The nature of the business behind this service is paid advertising. Nevertheless, it must be said that theusage of the search services are free for users. Therefore, the advertisers invest in placing their 13
  14. 14. messages in the search engine depending on the amount of users and specifically from their targetaudience, that the specific search engine can reach.For this reason, advertising buyers (media agencies and clients) are currently more concentratedtowards Google because of their large share of the UK searches. Google has a dominant position in theUK of more than 90% of the searches and a brand which is also very important in the UK (Best ConsumerSuperbrands in the UK, 2011)Even though, as we mentioned, there are definitely important barriers of entry for local and smallerplayers, some of the largest companies with established brands and the technology capabilities could doit (ie. Apple, Oracle). One recent example of this, is how Apple decided to end their relationship withGoogle as their maps provider, and acquired a smaller company to develop the capabilities to launch anew maps service for all its platforms. 14
  15. 15. Market and industry definition and parametersMicrosoft is a global company that operates in a lot of different segments. For the purpose of thisproject, we will only focus on Bing, Microsoft’s search engine which was once called MSN and Live.com,and has tried to compete with the growth of Google, but still struggled to succeed as a brand.In this industry which includes several major players, the most important companies that compete withMicrosoft in the search engine market. These brands are: Google and Yahoo. Despite Microsoft beingthe longest standing company in this industry, the proposition of its search engine in the UK hasn’t beenvery good, with Google now having over 90% of the search in the country.Market dynamics and trendsThe technology consumer market is very dynamic, and has changed a lot during the past ten years.Microsoft enjoyed a market leadership in the 1980s and 1990s, but in the past decade new players havetaken a front scene and threatened the position of the brand. Specially Google has strengthened itsbrand during the past five years getting to a position where it is now in the list of the ten most valuablebrands in 2011 (Interbrands, 2012).The opportunity remains to be immense as Microsoft still owns the major portion of the market share ofpersonal PCs (laptops and desktops), there are still more than 50% of people in the UK (Mintel, 2012)that don’t own a smartphone (which is great opportunity for the new windows mobile operatingsystem), and for the web services there is still room for a lot of growth. The Xbox has become numbertwo in number of consoles in the UK market and the Kinect is the most desirable accessory in the market(Mintel, 2012). As all these different entry points of digital interaction, Bing becomes the most naturalentry service and a way to enhance the consumer experience of all the other platforms. 15
  16. 16. Competitor evaluationAs mentioned before, for the purpose of this project we will work on the analysis of the maincompetitors of Microsoft in the search engine space. For this reason, the competitor analysis will focuson Google and Yahoo. The global search engine business remains based on this three major playersexcept for some specific competitors in local markets in China, India, etc. But, for the purpose of thisproject, which will be based on UK, only these three search engines dominate the market.Google is the youngest brand in the group but the fastest in catching up. In the Superbrands report,Google is the number 3 brand and way ahead of all of its competitors. In terms of global brand value,Brandz places Google in position number 2 with a brand value of 111,498 million dollars, and Interbrandranks it in position 4 and with a brand value of 55,317 million and a 27% increase over last year. AsInterbrand describes it, “Google’s position as one of the world’s pre-eminent brands is growing andnothing seems to stop it.Finally, Yahoo was the first and most popular search engine, but it failed to keep up with the growth ofits competitors. Currently, Yahoo is more focused on its content creating strategy capabilities than insearch. Due to this business decision, in 2009 they made a deal with Microsoft to get Bing to power theYahoo search engine and therefore focus on the content development area. Yahoo has had a couple ofvery tough years with a series of CEO stepping down and with not much stability. From 2007 to 2011,revenues fell 37%, although they have managed to increase their profit by 93%. Perhaps, the focus ofYahoo in their content business has lead them to compete in another market, aware of the power ofGoogle and Microsoft in the search engine space. Yahoo currently holds position 169 in the Superbrandsconsumer report 2012. 16
  17. 17. About MicrosoftAccording to the Microsoft corporate website (2012) "our mission and values are to help people andbusinesses throughout the world realize their full potential".Bing is Microsoft’s search engine which was originally named Live Search, and then changed to WindowsLive Search and MSN Search. Bing was officially launched on May 28, 2009 and started working in Juneof that same year. Bing currently provides search services for information, news, images, videos,shopping and maps. Its offer is comparable to that of Google search engine.In 2009, Bing agreed with Yahoo to power their search engine. By 2012, all search users of Yahoo willmigrate to Bing. Also, Bing is supposed to be working towards becoming the most effective searchengine with new index serving technology. Finally, Microsoft has developed an alliance with Facebook,to provide an enhanced search experience that is supported by your friend’s recommendations andfeedback. This allows Bing to become part of an online community with more than 900 million users andbecome a relevant brand for search.According to the Microsoft’s shareholder letter in their 2011 annual review, “Bing made strong stridesthis year. Its redefining the way people find information and make decisions – Bing Internet searchshare grew over 30% in the United States during fiscal 2011, to 14.4 percent. It has also played a key rolein making other products better like Windows, Windows Phone and soon Xbox. […]During the fall of2010, we completed the integration of Yahoo! search with Bing, and by the close of fiscal year 2011,Bing and Yahoo! together powered more than one-quarter of all U.S. searches. In May, we announced anew partnership with Facebook that enables us to deliver personalized search results that are based onfriends opinions. This data helps people make decisions more quickly and easily based onrecommendations that are personal, more relevant, and reflect the wisdom and experience of knownand trusted friends.” 17
  18. 18. Furthermore, in terms of plans, the company establishes as their future strategic plans that “forconsumers, were focused on Skype, Bing, Windows Live and Xbox Live. [---]Bing will have a broadimpact beyond search as we apply its understanding of the worlds people and knowledge to scenariosthat help individuals accomplish a task. Imagine that instead of trying to print a boarding pass by findinga website and typing in a confirmation code you could simply say "print my boarding pass." There are somany opportunities to fundamentally improve how we interact with the range of devices and services bypushing the capabilities of natural user interfaces.”The Microsoft brandAccording to Interbrand, Microsoft has position 3 in the global brand ranking with a brand value of59,087 million dollars and a decrease of 3% compared with the previous year. The report says that “Anew partnership with Nokia is likely to shine bright light on Microsofts mobile software, which has had atough history with both consumers and providers. This, along with the recent acclaim for the XboxKinect, the Windows Phone Mango OS, and a tablet-ready Windows 8 designs, indicates that Microsofthas all the pieces in place to build a strong consumer business.”Despite having the needed innovation and good products, the competitors have done a better job inbuilding their brand with marketing communications. In the UK, Microsoft ranks on position 45, withGoogle being 3rd, and Yahoo is number 169. In the search arena, Google dominates more than 90%according to Comscore report as of May 2012 (See Table) and Microsoft has only a 3.86% of the marketin the UK.Source: Digital strategy consulting (2012) 18
  19. 19. Microsoft’s Marketing CommunicationsDespite being one of the most valuable brands in the world, and because of its market leadership,Microsoft has not done a good marketing communications approach in the past few years. The largestcompetitors (Apple and Google) have built differentiation through their brand positioning, making itattractive for the consumer market. Microsoft’s strategy has been very defensive (as with the campaignresponding to the Mac vs. PC of Apple), or very product oriented such as Xbox, losing the ultimateconnection of the consumers with the Microsoft brand, although almost all people have a dailyinteraction with a Microsoft product. Recently, the focus of Microsoft has been in the Windows Mobileplatform, but still fails to connect the brand with the consumer overall.The strategy with Bing has not quite been successful. This product has been renamed four times andeven with its current name, it doesn’t have a clear brand proposition. The functionalities and servicesprovided by both search engines Google and Bing, are almost the same, and according to several ITreviewers, the performance and search results are very similar. For these reasons, the marketingcommunications of Bing needs to build clear differentiation determining a specific segmentation andtargeting, a strong brand essence and proposition, and a straightforward proposal to the user. Bing hasto give consumers a reason to change from Google, otherwise it will be difficult to win any market sharefrom that 90% that Google currently has.Marketing and brand analysisThe three technology brands unfortunately don’t have a lot of marketing tradition. Microsoft´s strengthwith other products has always been through a good management of partners, channels anddevelopers. Google has built a brand around its functionality and with little advertising spend hasbecome one of the most global valuable brands. One of its signature brand icons are the doodles, whichare the images they display on their main search site every day and that is based on an event, topic, or 19
  20. 20. specific issue happening on that day. This has been a major asset for the brand within the users but itstruggles now to surprise as consumers get used to it.As the following chart shows, there is little differentiation across all the Marketing areas in the threecompanies. Clearly Yahoo! Has made their content focus their own differentiator and this allows themto target clearly their consumers and have a very determined offering for them. The three companiesseem to have varied results in Social Media, with none of them having a significant presence in the UK.In terms of advertising, none of the three has a structured long term brand building approach. Bing hashad more than 5 different disconnected campaigns during the past year with no consistent positioningor message. Google has had two different campaigns oriented to specific products and issuesmanagement previous to their cookies policy being launched. Yahoo has not developed anything major,other than a specific campaign with Visit Britain to promote their travel sites, oriented to a specificportal and target.None of the three brands have a clear brand essence and positioning, but definitely Google has themajor awareness. Different sources say its because they were the first to make it all around search andthat their usability allow them to capture people, and since then people are just used to Google. With noother portal with a specific offering, people just go to Google by default.Finally, even though this industry has always relied upon a PR plan to multiply their releases, news andbrands, I found no structured evidence of a consistent management for the search engines product interms of journalists, bloggers, analysts and media in the UK. 20
  21. 21. Marketing comparison chart Marketing Area Microsoft Google Yahoo Search engine Yahoo includes search for information, news, images, videos, maps and shopping Search engine Google includes Search engine Bing includes search (soon will be powered by search for information, news, Product for information, news, images, Bing) images, videos, maps and videos, maps and shopping shopping Now focused on content development portals by topics: Style, finance, etc. Place Internet, mobile, Xbox, apps Internet, mobile, apps Internet, mobile, apps Price Free Free Free Promoted with PR, online forums Promoted with PR, online Promoted with PR, online Promotion: PR and experts forums and experts forums and experts Rudolph campaign for Internet safety "Good Christmas to know" Help your Britain campaign Promotion: for supporting charities Visit Britain Advertising Putting people first "Google Google+ TV ads attack" campaign JayZ decoded campaign Bing is for doing UK Facebook fans: 287,000 (in different users Facebook fans: 9,700 UK Facebook fans: 250 ie. Yahoo Finance, Movies, etc)Promotion: Social Global Facebook fans: 2.6 Global Facebook fans: Global Facebook fans: media million 9.7 million 9.4 million Global Twitter followers: Global Twitter Global Twitter followers: 242.000 followers: 4.7 million 361,000 UK Twitter followers: UK Twitter followers: 2.662 UK Twitter followers: 5 2,200Promotion: Direct No structured No structured No structured MarketingAs we can see in the chart, the Product that Bing offers to the consumers in basically the same as thecompetitors, with not much difference in terms of characteristics. In terms of place, Bing provides anextra functionality that hasn’t been exploited: it supports a connection with Xbox and Facebook. Interms of promotion, Bing has had several campaigns during the past year, but no clear USP or brandpositioning, Google has also had campaigns oriented to security and features. In terms of social mediaoutreach, we can see that Bing has had a moderate social media presence in the UK, and Googlemanages their social media on a global basis, which has a most impactful reach, but less customizedlocal messages. 21
  22. 22. Financial AnalysisEven though Microsoft is a very profitable and a growing company, its Online Services division whichincludes Bing is in serious problems. The following chart shows the current situation of this area, whereMicrosoft is almost losing the same money that it’s creating. The financial information of the threecompanies doesn’t have a breakdown per countries, but it is believed that this situation is consistentwith what is happening in the UK, where Google retains more than 90% of the searches of the country,and this is reflected in their financial data. Bing, on the other hand, only has a 4% share of the UKsearches, which is a very small proportion.According to IAB and PwC (Ad Spend study 2011) Online ad spend grows to £4.784 billion in 2011., anincrease 0f 14.4% in like to like period. Furthermore, the report highlights that it is now 27% of themedia spend budget of companies in the UK. Also, it highlights that the paid for search accounts for57% of this investment, with a spend of £2,767.2 billion, an increase of 17.5% towards the previousperiod .If we know that the overall advertising revenue in the UK is £2,767.2 billion, and we know that Bing hasa 5.27% of the search engine market in the UK, we could infer that the current revenue for Bing isaround £145.5 million. In this regards, to be able to achieve a substantial market share increase,Microsoft UK should do a significant investment to obtain at least an additional 10% market share, 22
  23. 23. which will take its revenues to £422.5 million. The recommendation is to develop a campaign of £50million that will ensure high impact and deliver the expected results. This investment will correspond toapproximately 12% of the estimated total revenue.The Ad Spend study report also highlights the prospects for growth in the online advertising business asthe following chart shows:Source: Mintel (2012)Microsoft Online services division financial information Indicator 2009 2010 2011 Net revenue (millions USD) $ 2.110 $ 2.200 $ 2.528 Income (loss) -1749 -2410 -2638 Profit ratio -83% -110% -104%Financial performance by companyWhen comparing the three main players we have described as relevant for these purposes, we can seethat Microsoft is definitely the largest one and has a profit ratio of 33% in the past year. If the OnlineServices division was not losing the amount of money it has been, probably Microsoft’s profitabilitywould be much higher. 23
  24. 24. The following charts display the financial analysis of the four key players in the industry, showing howthe position of Microsoft is threatened by the other players.As the chart shows, Yahoo has had a flat revenue growth during the past few years, while Microsoft andGoogle have rocketed. Furthermore, Microsoft has been the leader in profit ratio every year from 2007-2011, while Google has grown more in revenue (138% in the same period), while maintaining an averageprofitability ratio of 25, 4%.The following tables summarize the financial history of the three players, showing the dominance ofMicrosoft and Google in the category, with a highlighted rapid growth of Google in this period, and dueto the market share they currently have, its likely to continue to grow exponentially. Indicator 2007 2008 2009 2010 2011 Growth/Average 2007-2010Microsoft Net revenue $51.122 $60.420 $58.437 $62.484 $69.943 37%Yahoo Net revenue $6.969 $7.208 $6.460 $6.324 $4.381 -37%Google Net revenue $16.593 $21.796 $23.651 $29.321 $37.905 128%Microsoft Net income $14.065 $17.681 $14.569 $18.760 $23.150 65%Yahoo Net income $639 $419 $598 $1.231 $1.049 64%Google Net income $4.203 $4.227 $6.520 $8.505 $9.737 132%Microsoft Profit ratio 28% 29% 25% 30% 33% 29%Yahoo Profit ratio 9% 6% 9% 19% 24% 14%Google Profit ratio 25% 19% 28% 29% 26% 25% 24
  25. 25. 25
  26. 26. The brand opportunity for MicrosoftAs a consequence of the analysis developed in Section A of this paper, the recommended path forMicrosoft is to develop an Integrated Marketing Communications program over the next six months thatcapitalizes in the change of the consumer behavior towards mobile devices. This will allow them tocapitalize on all the strengths and opportunities, achieving them an increase in the users of the Bingsearch engine, and therefore incrementing the revenues invested by advertisers in the MicrosoftAdvertising services.Strategic Context of the propositionAnalysing the strategic context of Microsoft currently, we found that based on the Ansoff matrix, Bingshould clearly aim at the consolidation phase (existing product in existing market) in the UK. This is dueto the low percentage of the UK search market, and it clearly needs to be geared towards achieiving alarger market share in order to be able to develop other things.Furthermore, in terms of Porter’s generic strategies, Bing should choose differentiation to achieve awider market scope, but differentiating from Google through a proposition of device integration andmultiple platforms available. This is especially important bearing in mind that product differentiation isvery little, and Google is already the default search brand for most people in the UK. For this reason, youneed to focus on some other assets that Bing can differentiate such as multiple platforms and mobileapps.Finally, it is critical that Microsoft invests largely in positioning itself as the leader in mobile search, asthere are other companies that have shown they have the capabilities and funds to enter this market.With Apple already in the Maps business, it is not very far from the search business, and this is followingthe advertisers spend in mobile which is increasing at a very high rate. 26
  27. 27. Business ObjectiveMicrosoft has confirmed in the Stakeholder letter of their last fiscal year that they will continue todevelop Bing as a platform to grow their interaction with consumers. This may be due to the greatadvertising revenue potential of this business, where it makes real sense to increase the user base, to beable to create further advertising income, which is the backbone of this industry.Marketing ObjectivesBased on the understanding of Microsoft’s overall objectives, the market circumstances and the industryparameters, the following objectives have been outlined based on the SMART methodology. Increase the market share of online searches from 4.9% to 10% over a period of 8 months. According to latest reports, Google has over 92% of the UK searches, and therefore they account for the revenues. Nevertheless, as the technology market is usually changing, and with the new trend of people searching in smartphones and tablets, Bing could double their market share in a short period of time taking advantage of all the people buying new smartphones and the high usage of apps in these devices. Create revenue growth in the advertising business by providing an increase in the unique monthly users of Bing from 4.9 million to 7 million. As we mentioned at the beginning of the report, advertising revenues follow the users. There is only so much media agencies can do to convince their clients if the user numbers and the share of searches of Bing is not good for the advertiser’s purposes. Therefore, we believe that with the successful implementation of this campaign, Bing could obtain 2.1 million extra users. This is also based on the overall market share points. It has to be clear that when you talk about UK searches, that include all the times that a search is performed, regardless if one user searches once and another searches every day of the month. Therefore, the number of users and the 27
  28. 28. market share is different. We believe that the increase of unique users by 43% is achievable,even though it is ambitious, it takes advantage of an opportunity not capitalized by Google andthat at the moment leaves a large enough gap to take a large piece of the market.Create loyalty amongst new and existing users, ensuring the return of at least 25% of all newunique visitors.Google and other search services have never really capitalized on the retention and loyalty oftheir users. This is especially important as the advertising revenues depend on them. Breakingthe type of relationship that users have with a established brand such as Google, and offeringthem benefits for using another search service may be the best approach to trying to capture allthe users that just use Google because it’s the one in their top of mind, and further develop aconnection around things that are important for them.Develop a database of 2.5 million users that can be used to develop the loyalty program.In order to be able to achieve a successful loyalty program, you have to understand the peoplewho are interested in being part. This campaign promotes that people need to sign in with theirMicrosoft account (ie. Hotmail, MSN, etc.). This information, together with their behavior andanalytics of the items they search will help shape people’s interests and therefore a much moreeffective segmentation that could group the loyalty program subscribers into different groups.In this way, you can more easily communicate with them with relevant messages and benefits.Based on the estimates that currently Bing has 4.9 Million unique visitors per month, the targetof this database is only aiming to get around 50% of the current base, without considering theextra 2 million delivered through the campaign, which should be more interested in adhering tothe program as they are the target of the communications. 28
  29. 29. The role of Integrated Marketing Communications in this campaignAccording to Shimp (2010, p.30) “The primary forms of marketing communications include traditionalmass media advertising (TV, magazines, etc.); online advertising (Web sites, opt-in e-mail messages, textmessaging, etc.); sales promotions (samples, coupons, rebates, premium items, etc.); store signage andpoint-of-purchase communications; direct-mail literature; public relations and publicity releases;sponsorships of events and causes; presentations by salespeople; and various collateral forms ofcommunication devices.”The mix of these tools has been largely discussed over the past decades towards B2B and B2Corganisations, and mass media advertising has been the predominant tool in terms of investment andusage. Nevertheless, the last decade has brought a series of changes in the availability and nature ofmedia, driving a media explosion. As Belch (2003, p.2) explains, “in todays world there are a myriad ofmedia outlets—print, radio, cable and satellite TV, and the Internet—competing for consumersattention. Marketers are looking beyond the traditional media to find new and better ways tocommunicate with their customers. They no longer accept on faith the value of conventional advertisingplaced in traditional media.”Also, the pressure of the circumstances of the economy during the past years have forced MarketingCommunications managers to find “new ways to communicate, but are having to do so on reducedbudgets and they must account for their communication spend” (Fill, 2009)Furthermore, due to the large media diversification and access, the consumer is being bombarded withadvertising messages and information, making it more difficult to gather its attention. For this reason,Shimp (2010, p-9) states that “IMC is a goal worth pursuing because using multiple communication toolsin conjunction with one another can produce greater results than tools used individually and in an 29
  30. 30. uncoordinated fashion”. And it is not only because of the media diversification and the disperseattention of consumers, but also because it creates synergy and increases results.The Integrated Marketing Communications (IMC) approach recognizes that there is much more than theproduct or the service. “Corporate branding is now recognised as an integral part of the overallcommunication effort.” (Fill, p.24) The consumer is no longer only concerned about what the product isand does for him, but also about who the producer is and what it stands for. Furthermore, the globalmarket has put competitors from all over the world at the reach of any consumer, making easy tocompare and decide. This is where Microsoft can capitalize on having a brand that is very close to theconsumers and their families, and with important ambassadors in the world like Bill Gates.As a result, Fill (2009, p.24) says that this all “leads to a new form and role for marketingcommunications and a vision that an organisations entire marketing communications should beplanned, coherent and consistent. This word consistency applies to internal policies and strategies, tomessages to and from internal and external stakeholders, consistency with the values of their customersand with the relationships they forge with key suppliers and distributors.”Taking this into consideration, Shimp (2009, p.30) states that “IMC is a communications process thatentails the planning, creation, integration, and implementation of diverse forms of marcom(advertisements, sales promotions, publicity releases, events, etc.) that are delivered over time to abrands targeted customers and prospects. The goal of IMC is ultimately to influence or directly affectthe behavior of the targeted audience. IMC considers all touch points, or sources of contact, that acustomer/prospect has with the brand as potential delivery channels for messages and makes use of allcommunications methods that are relevant to customers/prospects. IMC requires that all of a brandscommunication media deliver a consistent message. The IMC process further necessitates that thecustomer/prospect is the starting point for determining the types of messages and media that will servebest to inform, persuade, and induce action.” 30
  31. 31. Nevertheless, it is not only a communication issue. Regarding this, Belch (2003, p.16) says that“however, the promotional program must be part of a viable marketing strategy and be coordinatedwith other marketing activities. A firm can spend large sums on advertising or sales promotion, but itstands little chance of success if the product is of poor quality, is priced improperly, or does not haveadequate distribution to consumers. Marketers have long recognized the importance of combining theelements of the marketing mix into a cohesive marketing strategy.”The best current approach for marketers and companies is to develop IMC programs, Belch (2003, p.17)says that “Consumers perceptions of a company and/or its various brands are a synthesis of the bundleof messages they receive or contacts they have, such as media advertisements, price, package design,direct-marketing efforts, publicity, sales promotions, websites, point-of-purchase displays, and even thetype of store where a product or service is sold. The integrated marketing communications approachseeks to have all.”Furthermore, Belch (2003) says that there are five steps to developing effective IMC programs, whichinclude understanding and determining who the customer or prospect is; develop multiple relevantcontacts or touch points; manage all your communications through a “single voice”; focus on developingrelationships with the consumers; and finally seek to have a direct effect on behavior.In the current context, as Belch (2003, p.18) explains “Consumers not only passively receive Marcommessages, but now they are active participants in creating messages via consumer-generated mediasuch as those noted immediately above [Internet, social media, etc.].” Besides this, “Television and radioprograms and magazine and newspaper pages (collectively, the mass media) are not always the mostengaging contexts in which to place marketing messages.” And finally, he also explains that “it is widelyacknowledged that marketing communications are governed by a key reality: The consumer increasinglywants to be in control! Marcom practitioners must accept the fact that marketing communications must 31
  32. 32. be consumer-centric interactivity is changing the way organisations choose to communicate with targetaudiences and is also changing the way audiences choose to interact with brands.”But this is not only a challenge for marketers, it is also an opportunity. As Fill (2009, p.42) adds,“consumers are now willing, motivated and able to contribute to marketing communications”. This is amajor reason why IMC is a determining factor in the current landscape, as the engagement of theconsumers through the integration of different tools, may achieve a higher involvement and theirrelationship with the brand, leading to recommendation, social sharing, etc.The opportunities for IMC are stronger now as “many marketing communicators now realize thatcommunication outlets other than the mass media often better serve the needs of their brands.”(Shimp, 2010, p.32). Furthermore, the new tools allow for “interactivity [which] means that consumersare devising and delivering content through the messages they create.” (Fill, 2009, p.42) But even morecritical, the IMC approach allows “adaptation by marketers to a changing environment, particularly withrespect to consumers, technology, and media.”In the current economic, technological and social landscape, “the objective is to contact customers andprospects effectively using touch points that reach them where, when, and how they wish to becontacted. […] Mass media advertising is not always the most effective or cost-efficient avenue foraccomplishing this objective.” (Shimp, 2009, p.32) According to Fill (2009, p.32), all these trends havecombined and as a result it means that “the marketing communication mix has evolved to the point thatit can be said to consist of three main elements: tools, media and messages.”Regarding the new reality for marketer, Belch (2003) says that there are a series of trends that areaffecting the way IMC works, including a major emphasis in consumer and trade sales promotions; lessuse of mass media because of high costs and lack of effectiveness; the use of more targeted tools likeevent marketing, sponsorships, direct main, and Internet as part of their IMC mix; an increasing powerof retailers pressing a major investment in large promotional fees; technology tracking tools that allow 32
  33. 33. retailers to analyse the behavior of each brand’s promotions; and the increasing use of very completeconsumers databases that allow further understanding of the target audiences.Moreover, Fill (2009, p.42) says that “the move to integrated marketing communications also reflects anadaptation by marketers to a changing environment, particularly with respect to consumers, technology,and media. Major changes have occurred among consumers with respect to demographics, lifestyles,media use, and buying and shopping patterns.”As a background to all the IMC framework, Fill (2009, p.43) describes it as “a basic level marketingcommunications, or promotion as it was originally known, is used to communicate elements of anorganisations offering to a target audience. […] This offer might refer to a product, a service or theorganisation itself as it tries to build its reputation.”As Fill (2009, p.44) explains, “planned marketing communications incorporates three key elements:tools, media and messages. The main communication tools are advertising, sales promotion, publicrelations, direct marketing, personal selling and added-value approaches such as sponsorship. Messagescan be primarily informative or emotional but are usually a subtle blend of both dimensions reflectingthe preferences and needs of the target audience. To help get these messages through to their 33
  34. 34. audiences, organisations use two main types of media. One refers to traditional media such as print andbroadcast, cinema and outdoor. The other refers to the increasing use of digital media and the Internetin particular, in order to listen to and converse with their audiences.”With the consumer as the center of the model, according to Belch (2003, p.82) “a successful IMCprogram requires that marketers find the right combination of communication tools and techniques,define their role and the extent to which they can or should be used, and coordinate their use. […] Indeveloping an integrated marketing communications strategy, a company combines the promotional-mix elements, balancing the strengths and weaknesses of each, to produce an effective promotionalcampaign. Promotional management involves coordinating the promotional-mix elements to develop acontrolled, integrated program of effective marketing communications.” Furthermore, Shimp (2009,p.35) says that “IMC practitioners need to be receptive to using all forms of touch points, or contacts, aspotential message delivery channels, […and] the challenge and related opportunity are to select thosecommunication tools that are best at accomplishing the specific objective that has been established forthe brand at a particular point in time.”The IMC approach reinforces the element of understanding the consumers and stakeholders of thebrand and organisation to plan integrated strategies. All of this is achieved through a comprehensiveand thorough analysis that includes an internal analysis (products, services, firm), capabilities andabilities to implement promotion programs, the current image of the firm in the market, relativestrengths and weaknesses of the products or service (advantages, disadvantages, USP, packaging, price,etc.); and an external analysis, that includes profile of the customers, consumer attitudes andbehaviours, market segments, positioning strategies and competitors. (Belch, 2003)For these reasons, the recommended approach for Microsoft’s campaign for Bing is an IntegratedMarketing Communications Plan. This has proven to be a very effective model in terms of managing theenvironment (understanding, controlling, monitoring and planning for it), increasing the impact (through 34
  35. 35. a coordinated approach to tools, messages and effective targeting based on understanding theconsumers) and maximizing the results for companies and brands (creating a single positioning to allstakeholders, making efficient investment of resources and achieving business goals). 35
  36. 36. Marketing Communications ObjectivesFor achieving the goal of increasing the market share and user base of Bing in the UK, we will develop anintegrated marketing communications plan that will achieve a consistent and high impact brandproposition for the consumers in the UK, furthermore, it will allow to effectively develop a targetingstrategy that allows Bing to concentrate in segments of the market and be more successful. This planshould also communicate the new capabilities of Bing and increase usage on different platforms,specifically on mobile devices and it should engage with the target audience to create a brandexperience and acquire new users.Based on the Marketing objectives, we have determined five key SMART objectives that will measurethe effectiveness of the integrated campaign tools: 1. Achieve 1 million downloads of the Bing app in different devices in the period from September to December 2012. The aim of this objective is to measure the effectiveness of the advertising campaign, the digital campaign and the overall experience with the messaging platform. 2. Achieve 1 million user Likes in Facebook of the Bing UK page in the period from September to December 2012. This objective will allow measuring the user engagement and the approach to developing loyalty within the target reached in the campaign. 3. Obtain 5 million monthly additional searches in Bing in the period from September to December 2012. This is the key objective of this campaign as we are aiming to increase market share in UK searches. The results achieved in this specific objective should reflect the effectiveness of managing an integrated approach of the Marketing Communication channels and capitalizing on the touchpoints. 36
  37. 37. 4. Ensure the return of 700,000 of the new unique visitors achieved through the campaign, from September to December 2012. This specific objective relates to how much are we able to deliver on the loyalty program and ensure that people keep interested and have the desired behavior.5. Increase the usage of Bing across all its platforms in 10% of the overall unique monthly visitors (700,000). This objective related to having a high loyalty with at least 70,000 unique users that will be part of the target and that become the platform to get new users engaged. This will ensure measurement on the engagement of this group, especially measuring the results of the Facebook private group for Club Bing users only. 37
  38. 38. Understanding the target audience and backgroundAfter a deep research in consumer behavior based on secondary sources, we have selected to focus onthe group of Tech Enthusiasts in the age group of people in all the UK from 20-34 as they are the oneswho have greater ownership of mobiles, spend more time online and have the profile that we want tomake this campaign more successful. Also, this group has one important characteristic and is that theybecome preachers of new technology amongst their friends and family, being one key element offurther results with this campaign.Based on this research, we have decided to focus on the segment called the Tech Enthusiasts, whichMintel says they “like to keep up with technology and – as younger, wealthier consumers – are able topurchase on impulse. These consumers will be looking to own high-end, innovative products which theyconsider worth the price. Enthusiasts use the Internet for a combination of functional andentertainment purposes, but engage with their products more, reflecting their enjoyment of exploringthe devices they own to the full.”Furthermore, Tech Enthusiasts “like to keep up with technology and – as younger, wealthier consumers– are able to purchase on impulse. These consumers will be looking to own high-end, innovativeproducts which they consider worth the price. Enthusiasts use the Internet for a combination offunctional and entertainment purposes, but engage with their products more, reflecting their enjoymentof exploring the devices they own to the full.”To see further information about segments, the research done to support this choice and some othermarket statistics, please refer to Appendix 2. 38
  39. 39. Market sizeIn terms of market size, we have based on the previous age definition to quantify the amount of peoplein this group. Nevertheless, the even though this gives a reference number, the target market definitionis more focused on lifestyle and approach to technology products as the previous section and Appendix2 explain.For the purposed of quantification of the segment, we have consulted the latest data available.According to the statistics of the ONS (2012), there were 12.5 million people in the segment of 20-34across Great Britain in 2011 (Refer to attached table). This will be our overall target audience.Nevertheless, as the Mintel (2012) report states, the Tech Enthusiasts represent around 39% of the UKpopulation, which is around 23 million people. For the purposes of this campaign, we have decided totake an average of both, considering that even though the main target is 20-34, we are basing ourcampaign around a message that is directed to this segment, but that could appeal to people of otherages that belong to the Tech Enthusiasts group.Population projections by the Office for National StatisticsGreat BritainPERSONS, thousands Projected populations at mid-years by age last birthday in five-year age groups Ages 2010 2011 2012 2013 2014 2015 2016 2017 2018 ———— ———— ———— ———— ———— ———— ———— ———— ———— ———— 0- 4 3.734 3.810 3.881 3.932 3.990 4.037 4.068 4.079 4.074 5- 9 3.334 3.401 3.491 3.594 3.669 3.747 3.822 3.893 3.943 10-14 3.446 3.389 3.326 3.301 3.310 3.348 3.415 3.504 3.606 15-19 3.789 3.715 3.665 3.620 3.572 3.524 3.466 3.402 3.376 20-24 4.180 4.228 4.260 4.244 4.224 4.169 4.094 4.037 3.986 25-29 4.122 4.211 4.326 4.439 4.509 4.554 4.601 4.623 4.598 30-34 3.774 3.869 3.971 4.079 4.179 4.275 4.363 4.470 4.578 35-39 4.080 3.948 3.823 3.753 3.760 3.821 3.913 4.011 4.115 40-44 4.503 4.461 4.394 4.306 4.188 4.081 3.949 3.822 3.750 45-49 4.438 4.502 4.548 4.549 4.528 4.471 4.429 4.362 4.274 50-54 3.868 3.978 4.083 4.186 4.293 4.397 4.460 4.506 4.507 55-59 3.481 3.498 3.547 3.620 3.693 3.784 3.893 3.998 4.100 60-64 3.670 3.673 3.520 3.413 3.372 3.351 3.369 3.418 3.490 65-69 2.852 2.975 3.215 3.362 3.432 3.469 3.472 3.330 3.230 70-74 2.404 2.397 2.412 2.470 2.546 2.633 2.751 2.979 3.120 75-79 1.951 1.969 1.998 2.039 2.082 2.110 2.110 2.129 2.188 80-84 1.456 1.480 1.503 1.525 1.540 1.562 1.588 1.622 1.665 85-89 914 913 921 933 953 979 1.009 1.036 1.064 90-94 358 394 422 443 458 466 473 485 498 95-99 97 100 101 101 107 120 137 149 157 100 & over 12 13 14 15 17 18 19 20 21Source: Office of National Statistics 39
  40. 40. In summary, we will take a total market size which is an average of age and other characteristicsassociated to the Tech Enthusiast group. Therefore, the total market size is of 17.75 million peopleacross all the UK. 40
  41. 41. Target marketAs we explained, we will be focusing on the age range from 20-34 from all Great Britain. In terms ofsocial class, we will be oriented to ABC1, males and females. According to statistics, of this group 77%have a smartphone already.Consumer profilesAccording to the information introduced previously, we will focus on Tech Enthusiasts on this group of20-34. These are people with a medium to high economic income, they are mostly employed, theyalready have a smartphone and tablet (or are planning to buy one soon), and some have a gamingconsole and access the Internet across different platforms.Most of this group is people that don’t have much time and have busy lives, they use public transportmostly on a daily basis to go to work and they live on the go. For this reason, they search and access webon the go, and also uses their smartphone to access coupons, discounts and compares prices.This group tends to spend a lot of time in social media and their main shopping activities are for clothes,electronics and food. In terms of Mosaic groups, we will focus specifically Group O: Liberal Opinions andGroup H: New Homemakers. For ACORN classification, we will focus on Wealthy achievers (Flourishingfamilies), Urban prosperity (Prosperous Professionals, Educated urbanities and Aspiring singles) and inComfortably off (Starting out, Secure Families). For more information about these classifications, pleaserefer to Appendix 2.Branding issuesIn terms of brand, Bing has not had a very clear USP and positioning. Furthermore, the search engine hashad three names during the past twelve years: Live Search, Windows Live Search, and MSN Search. Thename Bing was introduced by Microsoft in 2009 with a very important brand campaign mostly in the US. 41
  42. 42. This was aimed at getting better results in the overall market share of search. Even though the campaignin the US was successful and the market share in that country is much better, the brand in the UK hasnot had any clear communications platform. As mentioned in Section A, they have had severalcampaigns during the past year but with no clear message or proposition for the consumer.Brand aura personality, essence, strengthThe current brand wheel for Bing is just around being a search engine. There is no clear personality asthey haven’t had a consistent campaign and the benefits and values are not clearly stated.The only difference current of Bing with Google is that they have a different daily image as a backgroundin their site. They try to make some differentiation with this, but with no clear meaning behind it.In terms of the new proposed brand essence: Search anything, anywhere. In terms of Benefits we wantto communicate that Bing is useful, easy, fast, and reliable. Regarding Attributes, we want to say that itis your search engine that can be used on the go, on mobile and in multiple devices. We also want to saythat it is an enhanced search with social interaction with Facebook. The Values that we want to have arethat Bing makes you feel more efficient (because you can use it on the go), it fits your needs andsupports your lifestyle. Finally, in terms of Personality, we want to communicate that Bing is smart,efficient, active, modern and trendy.Positioning changes proposed and consumer implicationsThe challenge with this integrated marketing communications plan is to establish a clear positioningaround Bing. As we saw in previous sections, this doesn’t have a clear USP, so we propose that the newpositioning is based around the following concepts.The first concept we want to communicate is that Bing is the best search engine for mobile, trying topromote the use of the mobile app everywhere. The second positioning message is that Bing gets more 42
  43. 43. intelligent and it improves your search results when you use it for searching across all your devices: PC,tablet, smartphone (anywhere).To make this effective, as we saw in the IMC section, the consumer needs to experience the new brandthrough different touch points. This will require a campaign that aims at reducing the barriers ofservices, specifically at Tangibility and Inseparability.Finally, we want to create a loyalty program that rewards behaviours of users in the short, mid and longterm, so that we ensure that users return and keep using Bing services across platforms and as theirpermanent search engine. 43
  44. 44. The Campaign Delivery Recommendations summary of agency proposalsThe insightBased on the research we have developed about the consumer profiles, lifestyle trends and activities,we have identified a series of different things that need to be explored as the macro concept for thiscampaign. The following section summarizes some of these trends and will analyse their importance inthe campaign development. All of these issues will be used as insights to input into the messaging,choice of media and strategy, in order to capitalize on the opportunity that lies in the market forMicrosoft.A summary of the trendsAccording to Mintel (2012) the smartphone industry is to continue growing over the next months,achieving a high penetration across all ages in the UK. A high amount of users plan to upgrade in thisperiod. Furthermore, the report explains that increasingly, users are using their smartphone to surf theweb and it’s quickly catching up with the Internet access in traditional devices like PCs.But this report also explains that users are using different devices to access the Internet searches, fordifferent moments, places and purposes. Also, the availability of different devices has driven users touse more the Internet than before. Furthermore, the Mintel consumer research says that “the threemost developed online activities are checking emails (99%), using a search engine (95%), and shoppingonline (89%).”In addition to this, the UKOM (2012) says that "More than four in ten smartphone users (42%) agreewith the statement: “my phone is more important to me for accessing the Internet than any otherdevice”. This demonstrates the increasing importance that smartphones are gaining in the Internetaccess for people. 44
  45. 45. In terms of web properties, according to comScore (Mintel, 2012), “Google remains the top webproperty with 91% of UK Internet users visiting websites operated by Google during the month of April2012. In March 2012, Google, which includes the likes of YouTube, gained an audience reach of 92%.”On the other hand, “the second most visited web property is Microsoft, which includes the searchengine Bing, MSN and email client Hotmail. Microsoft saw 86% of UK Internet users visit in April 2012, aslight fall of 3 percentage points compared to March 2012.”Nevertheless, Bing is the less popular on this property, being the MSN portal and Hotmail the mostrelevant to the public. According to the UKOM (2012) report, “the three most popular search brands inthe UK are Google, Yahoo! and Microsoft. However, each of these brands offers a range of servicesbesides search, including web-based email, maps, news, instant messaging, social networking, andcommunities for sharing pictures, videos and music. […]For Microsoft, Windows Live Hotmail (12.5million unique visitors per month), Windows Live Messenger (11.4 million) and the MSN homepage (6.8million) are all more popular than Bing Web (4.9 million). Again, Bing Web is embedded within the MSNHomepage. In contrast, Google Search is, by a considerable margin, the most popular of Google’s search,email and reference services (31.2 million unique visitors per month), and this popularity extends toother search-based services such as Google Maps (17.1 million) and Google Image Search (12.2 million).”Furthermore, according to the facts shown above, smartphones are becoming one of the mostimportant ways to access and consume content for the Internet. Nevertheless, as the Mintel reportexplains “the constant development of mobile applications and mobile platforms helps to make otherfunctions of phones become more interesting or easier to use. For example, the mobile applicationInstagram, which allows users to take a picture, choose a filter and then share it on social networks, hasjust been released on the Android platform in addition to iOS. After a day on Google Play, the app hadbeen downloaded 1 million times and reached 10 million downloads after 22 days. [And] As morewebsites and browsers become optimised for mobile, the amount of surfing the web on mobile devices 45
  46. 46. will naturally increase, while new, more powerful devices with larger screens will also encourage moreweb browsing.”In conclusion, there are four key trends to be capitalized: the rise of smartphone penetration, the use ofthe smartphone as a device to access the Internet, the increase of use of multiple devices to access theInternet (including tablets and video game consoles) and the high proportion of users that already useMicrosoft sites and services, as well as services like Skype, Yahoo and Facebook (search powered byBing). For further information about this trends, please refer to Appendix 3.Implications for this campaignWe want to build a campaign that reflects the characteristics of the consumer behavior, but that alsocapitalizes on the changes that are happening in the environment. For that reason, we will summarizethe implications of these trends for the Bing strategy.Over the next six months, a significant amount of people will acquire a smartphone. With currentpenetration around 50%, this will probably peak by the end of 2012 with a total of around 70%. As thestatistics show, search is now done on the go more than ever before, and with the new wifi access in allthe tube stations of central London, this will continue to increase.Furthermore, another trend suggests that people access the Internet across different devices. Thismeans that on the go they search, but they also search at home, in their tablet, in their laptop, and evenin Xbox. Taking into consideration that one of the strengths of Bing is the multiple devices it can workon, this is something really important to capitalize on. Another thing that becomes a really importantselling point is that the Bing search engine becomes better as people use it more. For this to happen,they have to sign in, and the search engine captures data across all your devices.The third trend to capitalize on is the high penetration of the Microsoft websites and their traffic in theUK. Even though Bing powers the search of these pages and the ones for Yahoo, which is a great 46
  47. 47. advantage. Bing also powers the search engine for Facebook. Nevertheless, people don’t use Bing asmuch or even realize about this. For this reason, we are proposing to develop a more prominentbranding across these sites.Finally, we consider that due to the large user base and engagement of people in the UK with Facebook,and considering that Bing is their search engine, we need to capitalize on this and develop a massivecampaign where Facebook is the central point of interaction. 47
  48. 48. Strategic approachThe strategy for this campaign is to focus on the mobile component of Bing and its functionality acrossdifferent platforms. The center of all the communication will be to show how the Bing apps allow you tosearch on the go, easier, better and it connects across all your platforms.This concept of mobility, will be developed across all the different IMC channels, allowing to build anexperience for the user and obtain the awareness required to achieve the objectives.With a clear communications platform around the creative concept “Bing, your search mate on the go”we aim to relate to each person specifically, it reflects that they are usually on the go, and the wordmate (which is used in all the British context to talk about friends) gives it a local flavor and relatesclosely with each individual, reflecting the message that friends learn more about you as you interactwith them. The different IMC channels will maximize the impact through the different approaches to thesame message.The following section will outline the strategy in each of the IMC channels and how it matches the entirecampaign. 48
  49. 49. Public relations Strategy and TacticsIn terms of public relations, we will have a combined approach through two different campaigns thatwork to a single objective: Position Bing as mobile search engine and as a Microsoft product. Thiscombined approach will achieve a connection in the minds of the consumers, positioning Bing as aleading product, but also supporting it by the corporation behind it, which has a lot of good brandassets.In Corporate PR, we propose to develop a campaign to promote some of the significant inputs fromMicrosoft in the global market and in the UK. This will be developed around the following activities: Interviews of the UK CEO of Microsoft talking about the prospects of the company, outlook, number of people working for the company in the UK, revenue, social responsibility programs, etc. A series of articles highlighting the role and works of Bill Gates, his foundation, his vision of the world, etc. Profiles of UK Microsoft employees that have been involved in different important projects in the company. Articles summarizing the views of Microsoft of the future and how the company is working to improve the lives of humanity. In terms of Product PR, we are proposing in develop a strategy very much based around the activities of the campaign. The PR campaign will aim to support the general message of mobility and cross platforms. The following activities are planned to support this: Launch event for the campaign for the media and important stakeholders. In this event, the Microsoft UK CEO will demonstrate the Bing app, how it works across platforms and will also launch the public searchboards. 49
  50. 50. Press releases will be issued talking about the functionalities of the Bing search app, thecross platform connection, the public search boards, and finally the rewards program.We will engage with a series of identified bloggers in the UK to get them to try the apps andshare their experiences. Different profiles of bloggers will be selected so we show theversatility of the app: from fashion, to city activities, specific hobbies, etc. 50
  51. 51. Advertising strategyOur advertising strategy will be focused on touching points of people on the go. Taking intoconsideration that people from the Tech Enthusiasts are always on the go, and we want to have animpact of the activities they develop whilst this happens, one of the key things is to understand keytouchpoints throughout the day. Also, the campaign focuses on reaching the largest amount of peoplewhile they are around their cities, so the choice of media is based more on having the numbers ofreaders from the target audience, to capitalizing in the behavior of people on the move in their everydaylives.The following chart from IPA touchpoints technology shows that our target audience is particularly“doing nothing specific” during the early morning and at the end of working hours. This may probably bethe time when people are actually commuting.Furthermore, we can see that they are usually in shopping mode at the end of the working day, which isa great opportunity to exploit in terms of offering the search app which is a tool to find what they want.The campaign concept, as explained before will be around “Bing, your search mate on the go” will bethe overarching theme throughout the three months of the campaign. Nevertheless, we have several 51
  52. 52. messages we want to communicate and we believe they can give dynamism to the campaign flow duringthis period.This campaign is based on the new brand wheel that we have created for Bing, differentiating it fromthe competitors and having a clear USP.We will maintain a look and feel that will give consistency across the campaign so people relate thedifferent messages, but we will evolve the message across the span of the campaign. The followingpieces show some examples of the print and static advertising concept. The advertising has verystraightforward messages, the Bing logo on a black background, and the icons of a smartphone and atablet, so people associate Bing with mobile platforms.Based on all the insights and research about the mobile trends, the following messages have beendeveloped. These are thought as ways to cut-through and challenge users to take an action. Theyprovide a question to the everyday activities of the Tech Enthusiasts group and provides an answergiven by Bing. 52

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