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Founded in 1975 by Paul Allen and Bill Gates, Microsoft® Corporation is one of the largest and most influential companies in the Computer industry. Microsoft’s ambitions are anything but small. The world's #1 software company provides a variety of products and services, including its Windows operating systems and Office software suite. The company has expanded into markets such as video game consoles, interactive television, and Internet access. With its core markets maturing, Microsoft® is targeting services for growth, looking to transform its software applications into Web-based services for enterprises and consumers. Its principal activity is to of develop, manufacture, devices. operating license and support a wide range of software products for a multitude products computing scalable The software for include systems
servers, personal computers and intelligent devices; server applications for client or server environments; information business worker solutions productivity applications applications; and software
CURRENT MARKET SCENARIO
Today with technology reaching new heights and breaking barriers that previously existed, newer ideas are revamping the ways of life. Technology has made life more comfortable and convenient. Reading today is no longer limited to the pages of a book. It has moved further and has evolved in the form of eBooks. eBooks are simply one of the best online business ideas that exist today. An eBook can get published without all the barriers of the traditional publishing route. After analyzing the data from the last couple of years regarding technology-aided reading, one can quickly realize that the growth within the eBook industry is enormous.
CORPORATE RESPONSIBILITY (ANTI-PIRACY)
There has been increasing concern from authors and publishing associations over the last decade regarding the feasibility of copyright law in light of the growing illegal book trade. It is during this critical juncture that book piracy of printed is works largely in in developing countries internationally
existence. Violations of copyright laws are just as common and culprits inevitably elude authorities easily. Moreover the eBooks are more secure and less prone to piracy. The In concept this of eBook directly discourages piracy. context, Microsoft®
Corporation is trying to promote the eBook concept which provides users a relatively economical way of reading their favorite books. These low priced eBooks would encourage users to go in for original content than pirated ones.
THE WORLD’S FIRST
Microsoft ® EasyBook ® is a revolutionary
handheld device from Microsoft® Corporation. It is capable of carrying many eBooks on its memory thereby facilitating the users to take their favorite books along with them wherever they go.
Microsoft® technological has taken of into the consideration the
current market scenario and has also kept in mind the trends modern world-“the technological era”, and always catered to the needs of the customer by releasing products that are extremely user-friendly and innovative. Looking at the current tendency of consumers and analyzing the results of the surveys, Microsoft® has come out with the Microsoft® EasyBook® to fulfill the aspirations of the consumers About the size of a hardcover book and with a full-color, screen, the Microsoft® EasyBook® is especially good for reading books, magazines, and other periodicals with lots of photos and graphic images. The Microsoft® EasyBook® also offers powerful electronic features that provide a reading experience beyond that of a traditional book. By simply touching the screen, you can enlarge the text size, bookmark pages, highlight passages, make
notes, search for key words, and look up definitions in the preloaded dictionary. Buying books/content for the Microsoft® EasyBook® is easy, fast, and convenient to your life style and schedule. Users can connect to the eBook Networks like Google Book Search, Amazon.com etc. through a standard Internet connection and choose from thousands of books and the leading magazines and newspapers. Users can also download content to Microsoft® EasyBook® directly by transferring files from a PC. These files may be text files, Ms-office documents, or even pictures. The downloads are convenient, quick and easy. This way, the Microsoft® EasyBook® becomes a portable library, holding thousands of pages of the users’ favorite reading. All the eBooks are stored on the Microsoft® EasyBook® and so they can be read whenever the users want to.
Features of Microsoft® EasyBook®
Large memory - Carry dozens of full-color books, magazines, and newspapers in the 256 MB inbuilt memory with the option of expanding it up to 1 GB.
Long battery life - Read for up to 10 hours without recharging.
Built-in Internet Connectivity – Users can buy and instantly receive the eBooks and periodicals you want to read. You don't need a computer.
Light and Portable – It’s ultra-light and portable at just 1.1 kg. Take it wherever you go!
Full-color, high-resolution display – Users can read electronic books, magazines, and newspapers in vivid, clear color, even in the dark.
Variable text size - Increase the text size for easier reading.
Bookmarks, highlight, search, and make notes Use the touch screen to mark pages and passages, search for key words, and make notes.
The Webster's Pocket Dictionary – Users can look up a word just by accessing the word in the library.
Accessories included - The Microsoft® EasyBook® comes battery, with stylus, Lithium-Ion carrying rechargeable pouch, and power adapter,
quick start guide
• • •
Weight – 1.1 kg Size - 7.5" x 9" x 1.25" Memory - Comes with 256MB, expandable up to 1 GB with SecureDigital Memory Cards
Battery - Rechargeable Lithium-Ion battery lasts up to 10 hours of continuous use
Screen - Back-lit 8.2" diagonal color LCD touch screen
Communications - Internal modem to connect to the Internet. Data Port to connect to a PC
Getting Content for Microsoft® EasyBook®
A user has two options to get content from the Internet. a)Buy-A-Book b)Rent-A-Book Users are presented with the option of either buying the eBooks or renting the eBooks from the available networks. Buy-A-Book and Rent-A-Book has been made
available to the users through tie-ups of Microsoft® with the following eBook networks: - Google Book Search - Amazon.com - EBookMall.com - Other Private Publishers A) Buy-A-Book
connect to a network and buy the eBooks from the Internet. The book purchased by the user gets downloaded to the Microsoft® EasyBook®. • Payments for the book are made over the Internet, through Debit Cards or Credit Cards. • The books available are at highly discounted rates than the books available in markets. Users can get the benefit of downloading certain selected FREE eBooks through the website. Apart from this, users can directly order or pre-order eBooks from the publishers also. • The eBooks available under Buy-A-Book category are available to the customers at a discounted rate of 15% less than the market price of the book. The older the book the higher discount is given. The publishers of the book are compensated for the publishing rights.
B) Rent-A-Book • Through the Rent-A-Book option, the users can rent a eBook from the online networks for a specific period of time. The rent to be paid for the eBook depends upon the popularity of the eBook and the duration for which the eBook is being • rented. The rent to be paid for the eBooks varies from network to network. • Users can avail combo deals wherein they can rent a couple of eBooks for extended periods and can avail them at cheaper rates.
Microsoft®, being well established in terms of the technology has been able to price the Microsoft® EasyBook® at a competitive and lucrative price. Considering the launch of a product and the anticipation of its lifecycle, Microsoft® has taken the decision of pricing it at Rs. 11,999/- on the basis of its early demands and its flexibility towards the future trends.
*The above price is for the Microsoft® EasyBook® for the given specifications mentioned and does not include the cost of features like Buy-A-Book and Rent-A-Book
• Microsoft® has adopted the following channel of distribution customers. • Microsoft® India being is one launching of the the Microsoft® for its EasyBook® worldwide at the same time with countries commercial release. In India, the Microsoft® EasyBook® is being launched in the metropolitan and Cosmopolitan cities like Delhi, Mumbai, Bangalore, Chennai, Calcutta and Hyderabad. for the smooth and efficient distribution of the Microsoft® EasyBook to the
Internet Direct Marketing Retailers
CUSTOME RS PROMOTION
Marketing Objective: “Awareness and Acceptance ” The task ahead is to concentrate on making the cake bigger rather than fighting for a bigger piece of the existing cake.
balance using the
communication following seven
communication vehicles: ADVERTISING PUBLIC RELATIONS TRADE AND SALES PROMOTIONS
CONSUMER PROMOTIONS DIRECT MARKETING EVENT MARKETING INTERNAL EMPLOYEE COMMUNICATIONS
The vehicles mentioned above are shown in break up format below:
Mails would be sent to our target audience. We have an existing strong database of clients, which we developed over a span of time as we had a strong presence in the electronics industry. TIE-UPS WITH CORPORATE EVENT MANAGERS ourselves with top event
Event management is in the boom in India today. Associating management firms like DNA and the like will help us reach a wider market by advertising our company.
PRINT MEDIA & HOARDINGS
Initially we will be advertising in magazines and providing leaf-lets & pamphlets with the city newspapers. We will advertise in magazines like India Today, The Week, PC Quest, and Digit etc. We will also use hoardings in selective locations across the country.
Microsoft® strongly believes in direct marketing through one of its most effective channel of personalized way selling. It and of is a face-to-face the bridge and conversation technique and facilitates in the twocommunication the minds narrows the between consumer
Microsoft®. SALES PROMOTIONS
This is one the vital tools of promotion being adopted by Microsoft® where sales promotions are provided which include demonstrations,
incentives, value added services (VAS), on-thespot promotions etc.
PRODUCT LAUNCH PROCESS New IDEA Development IDEA SCREENING CONCEPT DEVELOPMENT Marketing Strategy Development
Business Analysis Product Development
SEGMENTATION Market Segmentation is an effort to increase a company’s precision marketing. A market consists of a large identifiable group within a market with similar wants, purchasing power, geographical location, buying attitude, or buying habits. We have done the segmentation on the basis of the following variables: DEMOGRAPHIC SEGMENTATION: Age, Income, Social Class & Occupation
PSYCHOGRAPHIC and Personality BEHAVIORAL
Benefits, Usage Rate & Attitude GEOGRAPHICAL SEGMENTATION: Region & city
TARGETING After segmenting the market we are targeting the following segments: INCOME GROUPS: Upper Middle Income Groups and Higher income groups. We also include people with reasonable disposable income. AGE GROUPS: We target people above the age group of 12 years for this particular innovation, and based on the response, shall also diversify into catering to the needs of the population of other age groups.
particular categories like corporate, students graduates graduates, entrepreneurs, professors, and many more.
“E-BOOK for the E-world”
Being the first of its kind, through the launch of a portable library, we intend not to serve markets but create a market. We place ourselves in a distinct position in the minds of the consumer by providing them with the means to satisfy their needs and wants in tandem with the technological era making our way in fulfilling their desires and aspirations. In the context of our product, we enable the consumers to now carry their favorite books along with them anywhere they go. In addition, owing to the presence of Microsoft as our parent company, we also capture a
place in the minds and hearts of the people aiming at their brand loyalty towards Microsoft.
SWOT ANALYSIS STRENGTHS & OPPORTUNITIES:
• Strong financial backup: EasyBook is a product of Microsoft. Microsoft has been one of the major players in the market for many years now. Microsoft thus has a huge financial back up to depend on which would help in expansion and marketing activities. • Latest innovation
Having a highly qualified R&D team has lead us to innovate constantly in the tenure of our existence. The EasyBook- the world’s first portable library is a perfect example.
• Portable: Stressing on the aspect of the product that is the most eye- catching, the portability of the EasyBook makes the art of reading to the consumer not only more pleasurable and convenient, but also keeps him in touch with the latest innovations to hit the market. With the EasyBook, the customer can have his favorite collection of reading material anywhere he may go, whether its travel or just a period of leisure, due to its maximum weight of 1.1 kg. • User friendly:
The EasyBook is an extremely user-friendly device, as the basic purpose of using it is to facilitate the process of reading. If this itself were to be made even slightly complicated, the consumer might be frustrated, and discontinue its usage. Its features such as a built in dictionary for the benefit of the reader, ensure that there is no scope for the customer to be dissatisfied. • Light with a contemporary styling: As mentioned earlier, the EasyBook weighs a mere 1.1 kg, which makes it convenient and easy to carry from place to place, as the name suggests. It is also styled in such a way that the reader may look at it and be satisfied with its looks and styling. • Plethora of features to choose from: The EasyBook has a variety of features to choose from, such as a built in dictionary for
the benefit of a reader, the option to store certain passages or words or portions of the book that the reader considers important, the option to book mark, and many more.
• Consumer attitude: The attitudes and trends of the modern customer dictate that innovations like the EasyBook will be extremely popular with the general public. The tendency of consumers to not hesitate before trying out a new product shows that the demand for our product can only increase. • Brand equity: Having Microsoft as our parent company, a particular level of brand equity or brand loyalty is created, which only strengthens the demand as well as the sales of the EasyBook. • Promotes anti-piracy:
The functioning of the EasyBook also attempts to curb book piracy, which is like a major weapon that is destroying the market for books. Due to its high tech functioning, it leaves no scope for piracy. • Untapped market: The market has never before seen anything like the EasyBook, thus giving us the advantage over any entrants that might enter the market at a later stage.
WEAKNESSES & THREATS
• Affordability One of the few weaknesses of the EasyBook is that it might not be affordable for a person with an average income. The initial launch price of Rs. 11,999/- does not do justice to the fact that not everyone can afford one. • Learning The EasyBook, be although by easy a to handle, with no cannot basic exactly handled person
knowledge of technological innovations. It must thus be ensured that it is only handled, with care.
• Anticipation of future competitors: Another threat that we at Microsoft face is the arrival of new competition, or new players in the same market, as no one is very far behind in terms of technology and advanced innovation.
• Availability: Another weakness that may be mentioned about the EasyBook is in terms of the availability of certain books that the reader may wish to read. In spite of our tie-up with select publishing houses and authors, in addition to GOOGLE BOOK SEARCH, there is a remote possibility of the non-availability of a certain book that the reader may wish to have at that point of time.
CORE MARKETING STRATEGIES Concrete marketing strategies were developed by Microsoft in order to achieve its marketing objectives, which are as follows:
• • • • • • •
Creating brand awareness Increasing the market size Change customer attitude Increased customer traffics Pursue purchase actions Increase turnover Re-purchase
The marketing strategies have been developed after studying the product life cycle the various stages were:
Stage 1 Market research: Microsoft conducted a survey basing the customers’ needs and desires. Also had a thorough check of the current market scenario. Stage 2 In order to launch the product we used extensive advertising and promotional strategies already mentioned in the marketing mix. Stage 3 Once the product becomes familiar amongst the consumer, the advertising and the promotional campaigns will be slowed down according to the market needs. Sudden reminders would appear and seasonal push strategy will be followed.
MARKET ENTERING STRATEGY AND MARKET SURVEY Microsoft EB
The delta strategy is one of the most important consumer attitudes. The equilateral triangle says that
at any point of time the three main pillars as in the Microsoft Easy Book to – Consumer another. – Services The go simultaneous one consumer
experiences satisfaction at the same time when he uses the product. The services and the consumption takes place at the same time.
FUTURE BACK-UP GENERAL ATTACK STRATEGY TO STAND WITH THE COMPETITION
Today’s watch industry is known for its competition hence it was not sufficient to just study the market by just studying the consumer behaviors and about their wants. Understanding the was also the very competition offered by As essential. and the the understanding competition various offers
competition is huge we not only had to attack the competition but also be ready to face their retaliation. Hence in order to overcome the above problem we studied our competition and all its moves and try to
stand in front of our competition. The following attack strategies were undergone:
FRONTAL ATTACK In pure frontal attack, the attacker matches its product, advertising, prices and
distribution. Hence in the initial stage we used the Frontal Attack strategy by standing in front of the completion and ready to face it. FLANK ATTACK The competitor’s weak points become our
targets. Hence by targeting the weak points of the competitor we would grab a huge share. ENCIRCLEMENT ATTACK It involves launching a grand offensive on several fronts. This would not be followed until forced by the competition. BYPASS ATTACK By bypassing the enemy and attacking easier markets to broaden our service. This would be
followed only after a reasonable amount of time keeping in mind competitor’s retaliation.
GUERRILLA WARFARE blitzes move. and This legally will be studying taken all
By offering special promotional offers, intense advertising competitor’s market. once
Microsoft establishes a significant space in the
The following mediums are being used by Microsoft to advertise its products:
• • •
Visual Media Print Media Hoardings
The media schedule is as follows: Visual Media: In the initial stages the other forms of media will be heavily backed by Visual media i.e. T.V. Ads. In terms of Visual ads the company is following a “Front load” strategy in which the visual ads will be shown continuously in the selected time slot in the initial stages and seeing the response Microsoft Easy
Book will start slowing down with its Visual ads and concentrate on hoardings.
Volume of Advertising
Time Period FRONT LOAD STRATEGY Print Media: Microsoft would concentrate on the print media and would advertise on a regular basis through the cities leading newspapers, business magazines, journals, direct mailing as we have a strong customer base, pamphlets, brochures and many more. The most important being that Microsoft has its own private journal, which could educate the consumer about its latest releases as in the Microsoft Easy Book. Hoardings: this is being on of the most upcoming trend of advertising where huge ads as on hoardings in important areas. Here Microsoft has decided to adapt the “Continuous Fighting” strategy. Volume of
Time Period Internet: Internet would be the strongest advertisement tool that Microsoft would target on to promote its EasyBook. As internet is the largest medium of communication in the present ‘Technological Era’ PRODUCT LIFE CYCLE
1: Innovation 2: Growth
3: Maturity 4: Decline
At Innovation: it is the initial stage of the product life cycle where in the product is just launched into the market. At this stage the sales would be very less but the expenditure of the advertisements would be in its peak. The consumers would be reluctant to change and would be thinking twice to try out new things. Microsoft should try and push its products in the right target markets and create the right attitude in the minds of the consumers. Growth: The innovation is then followed by growth where the company witnesses the highest rate of sales of that particular product. Microsoft should still take up an aggressive advertisement campaign and change the minds of the consumer and persuade them and motivate their purchasing action.
Maturity: In this stage, the product is well established in the market. Hence the volume of advertising is reduced to a great extent and the rate of sales remains constant. Microsoft should place a firm stand in the market and withhold the competition with due respect of its attacking strategies.
Decline: This being the final stage of the product life cycle, the company would not invest anything as advertisement expenditure. The sales start falling gradually and the prices go down.
EasyBook, it is vital to give due consideration to its life cycle which helps frame the marketing strategies of the company and benefits its future plans, thereby giving way to future innovations Future innovations may include Audio/Video
integration and other functions into the Microsoft EasyBook.
FINANCIALS ADVERTISEMENT EXPENDITURE FOR 6 MONTHS ADVERTISEMENT EXPENDITURE BREAKUP Visual Media Print Media Hoarding Others Total Rs90,00,000 Rs90,00,000 Rs60,00,000 Rs10,00,000 Rs 2.5 Crores
The above advertisement campaign is meant for the Indian market. Microsoft has followed an aggressive
strategy as it is the initial stage i.e. the launch of the Microsoft EasyBook. Internet being Microsoft’s most powerful tool of promotion, it has a common GLOBAL approach to the market. Preparing and maintaining a Database and network system for extensive Internet Advertising would incur an expenditure of Rs 52 Crores.
The initial launch price of the Microsoft EasyBook being Rs 11,999/- would gradually reduce based on the demand rate. Having a strong Brand Equity and the calculations as per the Finance Department, Microsoft would break even approximately in an around the 1st quarter of the 2nd year for the Microsoft EasyBook.
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