Issuu on Google+

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Microsoft ZUNE Marketing Plan Eric Becker, Stuart Malingowski, Erica McNamara, Zak Kasza, Amanda Rhyner

April 29th 2009


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Microsoft Zune Executive Summary Environmental Analysis •

Economic Factors o The projected growth rate of US Gross Domestic Product in 2010 is expected to be 1.9%, a point lower than last year’s rate of 2.9%. o Unemployment in the U.S. rose from 8.1% to 8.5 % nationally, while losses in payroll jobs numbered close 3.3 million over the last 5 months. o Consumer access to credit markets has dried up.

Social Factors o Households are less likely to purchase luxury items and focus on necessities as disposable income becomes scarce. o Americans enjoy a fast paced lifestyle coupled with information being transferred at a high rate and frequency.

Political Factors o A new President was elected in January, bringing possible change over many policies. o $700 billion stimulus package was voted on and passed in Congress to aid in the recession recovery.

Market Analysis: • •

The mp3 market is slowing rapidly Year-to-year growth in spending on standalone players falling from 131% in 2005 to 17% in 2006 and a contraction of -4% in 2007.

Industry Analysis: • •

Threat of entry is high. With Apple Inc. holding a 71% market share, and 3 other competitors vying for the remaining 29%, there is little room for new competitors to enter the market. Product differentiation is high as well. Consumers seem to choose Apple over other competitors. Apple also has the IPhone, which is a standalone product.

1


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Competitive Analysis: •

Apple Inc. (IPod) o 173 million IPod users o 600 million downloads of apple iTunes o Integrated music purchasing software (iTunes) o 65 million registered accounts o Available all over the world o Apple corporate stores

Microsoft Zune S.W.O.T analysis •

Strengths o Zune is produced by Microsoft, the worlds largest software company with global scope and universal brand recognition o Economies of scale

Weaknesses o Competing with a product that already has 71% of the market

Opportunity o Large established customer base of PC users

Threats o Economic conditions lowering discretionary income: leading to lower luxury item purchases

STRATEGIES AND TACTICS •

Strategies o Build brand loyalty through increased customer satisfaction, exceptional product performance, and continue using consumer incentives (e.g. discounts)

Communication Strategies o Push and Pull Strategy

2


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Tactics • Convert IPod users to our product • Lower prices by 5-10% to fit into more consumers price range • Reach our target market through the media plan

Media Plan •

T.V. ad will be aired twice (Beginning and end) per program listed below and heavy up during Christmas

• •

T.V. ad will be aired during - American Idol, X-games, Taking the Stage, Dancing with the stars, Gossip Girls, Baseballs All-star game, Basketball champion ships, Saturday night day, CSI Commercial contest, have users make their own commercial

• •

Web banner advertising Magazine ads will appear in Rolling Stone, Time Magazine, Seventeen

3


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Environmental Analysis:

Economic Factors •

Inflation is expected to rise in the coming months and continue throughout the next few years.

The projected growth rate of US Gross Domestic Product in 2010 is expected to be 1.9%, a point lower than last year’s rate of 2.9%.

U.S. companies are expected to experience little effect on long term economic trends as opposed to foreign companies.

Unemployment in the U.S. rose from 8.1% to 8.5 % nationally, while losses in payroll jobs numbered close 3.3 million over the last 5 months.

Disposable income for American households is steadily decreasing as unemployment continues to rise.

The economic rebound from the current recession is a slow process.

The price of gas has somewhat stabilized, reducing stress on trucking and shipping companies.

Consumer access to credit markets has dried up.

14 % drop in teen spending so far in 2009

4


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Social Factors •

Americans enjoy a fast paced lifestyle coupled with information being transferred at a high rate and frequency.

Do to the economic recession, consumers are force to work more hours than previous points in their career to cope with layoffs and pay cuts.

Consumers may take a price over quality outlook on purchases.

Households are less likely to purchase luxury items and focus on necessities as disposable income becomes scarce.

Political Factors •

A new President was elected in January, bringing possible change over many policies.

$700 billion stimulus package was voted on and passed in Congress to aid in the recession recovery.

5


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Technological Factors •

Apple came out with a device that had the ability to play music and movies/TV shows as well as function as a cell phone with Wi-Fi internet capability.

This device is the first of its kind, sparking a trend for portable media devices to have the ability to access the internet.

The majority of devices have the ability to show video as well as play music.

Some models of cell phones have mp3 capabilities.

6


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Market Analysis: •

The mp3 market is slowing rapidly

Year-to-year growth in spending on standalone players falling from 131% in 2005 to 17% in 2006 and a contraction of -4% in 2007.

Regardless of company spending, market share remains relatively stable and dominated by Apple.

Worldwide PMP/MP3 player shipments will grow to 245 million units in 2012.

By 2012, 21% of global PMP/MP3 player shipments will be Wi-Fi-enabled.

Market revenue for PMP/MP3 players peaked in 2008 at $21.6 billion and will decline annually through 2012.

The market’s growth rate dipped below 10% for the first time since the market’s inception.

7


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Reason for slowing market is a dependency on mobile phones and WI-FI compatibility.

31% of kids 6-10 years old use mp3 players

On digital music players for kids ages 2-14 they contain an avg. of 15 movies, 10 TV shows, and 125 songs.

IPod “hand me downs” are becoming more and more prevalent.

Industry Analysis: •

Threat of entry is low. With Apple Inc. holding a 71% market share, and 3 other competitors vying for the remaining 29%, there is little room for new competitors to enter the market.

Product differentiation is high as well. Consumers seem to choose Apple over other competitors. Apple also has the IPhone, which is a standalone product.

Capital requirements for this product are very high. Large amounts of capital are required to invest in R&D as well as an advertising campaign.

• The buying power for consumers is high. In an age where companies are looking to cut costs, any revenue is coveted. Consumer buying trends can shape the pricing of products.

8


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

• There are many substitute products in this industry. With four main players in the industry, switching costs are nonexistent. Customer loyalty seems to be a focal point of advertising in this industry.

Companies are well entrenched in their positions within the industry. Apple Inc. takes the top spot with a 71% market share, followed by SanDisk at 11%, Microsoft at 4%, and Creative at 2%.

• Mp3 accessories sales topped $1 billion dollars last year. • All players are moving into the WiFi arena.

Competitive Analysis: Current Competitors •

Apple Inc. (IPod) o 173 million IPod users o 600 million downloads of apple iTunes o Integrated music purchasing software (iTunes) o 65 million registered accounts o Available all over the world o Apple corporate stores o Market share: 71% o Positioning 9


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

§

Innovative, Cool, & Easy to Use

§

Positioned as the best on the market

§

Common notion that iPod is the pinnacle of MP3 players

§

New iPod Touch •

Like a mini laptop with WiFi

Applications

o Ad Campaigns §

Began with Silhouette campaign

§ •

Microsoft (Zune) o 3 million Zune owners o 3.5 million downloads of Zune desktop software (similar to iTunes) o Wi-Fi media sharing available between Zune users o Only available in US, Canada, or Online o Raised ad budget, developed a new tag line, and turned to a new ad agency o Zune revenue decreased $100 million or 54% o Market share: 4% o Positioning §

Differentiated based on options and perceived value

§

Positioned as the “Music Discovery Machine”

§

Price cuts have been made recently however

10


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

§

Emphasis on social aspects of the software

§

More customizable options

§

WiFi capabilities

§

Greater availability of music, Unlimited downloads: 14.99 per moth

§

More bang for your buck, 120MB for 249.99

§

Greater overall music experience •

While listening to the radio on the Zune if you like a song you can select an option and it will be automatically added to your library next time you sync

§

More than just MP3 Player •

Pictures, Music, Videos, E-Books, Audio Books, Games

§

Will be integrated with Windows 7 and X-box live

§

Expected to announce 4 gen Zune with HD capabilities and technology rivaling the iPod Touch

o Advertisements §

Recently focused on getting people to download the FREE Zune software

§

Use artists featuring new albums in TV spots

§

Ads emphasize music discovery, unlimited downloads, and social aspect

Creative Labs (Zen)

11


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

o Market share: 2% o Positioning §

Differentiated based on low price ($59.99-279.99)

§

Product features: FM radio, Free podcasts, loud speaker system

§

Variety: 10 different players

§

More customizable and can be used with other Creative products

o Advertisements

§

Aimed at targeting Apple

§

“Find Your Zen” Campaign

§

Features wide array of products

Sandisk (Sansa) o First to offer integrated wireless capabilities o Market share: 11% o Positioning §

Low price (19.99-249.99)

§

Wide variety of players (5 Different kinds each with different sizes)

§

Not as integrated with software as Zune and iPod

o Advertisements §

Directly aimed at Apple

§

“iDon’t” campaign

§

Features products as alternative to dull Apple brand

12


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Apple Inc continues to dominate the market, while the other 3 seem to be playing a never ending game for catch up.

Apple Inc is still reaping the rewards from its first mover advantage. Innovations to its IPod line have fueled a never ending trail of success.

Competitors target customers of varying qualities and buying trends.

Potential Competitors/Substitutes •

Blackberry Smart Phones o Blackberry Storm sold over 500,000 units in first month. o Has both music and wireless media capabilities. o Many mobile phone companies are adding mp3 capability.

3G capable multimedia phones offer mp3 capabilities

Sales, Profits, NMC, & Market Share listed below. All numbers calculated by group using SEC annual reports (form 10-k). Chart created by group.

13


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Performance (millions) Relative Market Share (MP3 Players) Sales Revenue Percent Margin (%) Gross Profit Marketing Performance Marketing & Sales (% Sales) Net Marketing Contribution Marketing ROS (%) Marketing ROI (%) Financial Performance Return on Sales (%) Return on Equity (%)

Microsoft (Zune)

Apple (iPod)

4%

71%

60,420 80.8 48,822

32,479 34.3 11,145

21.6

11.6

SanDisk (Sansa) 11%

Creative (Zen)

Advanta ge

2%

Apple

3,351 1.9 63.087

736 22.2 163.902

MSFT MSFT MSFT

9.8

19

SanDisk

47,381

28,718

3,022.9

596.16

MSFT

78.41 363

88.42 763.6

90.21 920.51

81 426.34

SanDisk SanDisk

29.26 48.73

14.88 23

(61.37) (64.78)

(2.68) (6)

MSFT MSFT

14


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Marketing Performance 100 90 80 70 60

MarketShare

50

% Margin

40

Marketing ROS

30 20 10 0 Microsoft

Apple

SanDisk

Creative

15


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Microsoft Zune S.W.O.T analysis •

Strengths o Zune is produced by Microsoft, the worlds largest software company with global scope and universal brand recognition o Reputation for innovation based on the rapid development of new products and software: including XBOX, XBOX 360 and Windows operations system o Economies of scale o Accesses to channels of distribution: through partnerships with companies like Best Buy, Target and Wal-Mart o Inter-Product compatibility: you can access and share your music from your PC or XBOX 360 o Added social networking tool (Zune Software) o Similar to popular internet radio site Pandora, in that you can access songs before having to pay for them.

16


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Weaknesses o Protested as a result of corporate policy and cut-throat attitudes of Microsoft: leveraging their Monopolistic power to control the market and eliminate competition o Was introduced after Apple’s IPod o Negative social perception of employee treatment at Microsoft o Reputation for poor quality products o Song sharing suffers due to lack of wide spread adaptation o Competing with a product that already has 71% of the market

Opportunity o Large established customer base of PC users o Large market potential: widening middle class

Threats o Apple IPod and increased Mac usage o Economic conditions lowering discretionary income: leading to lower luxury item purchases o Shifting consumer trends and attitudes toward home computer usage o Apple’s growing popularity

17


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Competitive advantage o Economies of scale o Access to many channels of distribution

Microsoft Zune Marketing Objectives •

Sales will be 2,700,000 units by May 1st 2010

Increase Total market by 1.8% by May 1st 2010

Market share will be 30% by May 1st 2010

Consumer awareness will be 76% by May 1st 2010

Corporate net promoter score will be 75 by May 1st 2010

Customer awareness of social network will be 90% by May 1st 2010

18


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Target Market: •

Zune is targeted at young adults ages 15-25 who live in cities and urban areas o

14.2% of total population

o

42,423,538 people

o

90.7% are still in school or graduated from high school

o

Aimed at both males and females

Middle to high class with disposable income o

Median income of age bracket $29,713

People who love music and the sharing experience o

Like social networking §

o •

Competitive advantage over i-tunes

Enjoy the music experience

People who think differently and like going against the crowd

19


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Budget: Microsoft Zune Sale Budget 2009 Sales $468,000,000.00 (Cost of Goods Sold) ($240,000,000.00) Net Profit $228,000,000.00 ($9,360,000.00)

Marketing Expenses Net Marketing Contribution

$218,640,000.00

Microsoft Zune Marketing Expense Forcast Zune Total Revenue

Q4 2008

(In Millions) $117.00

Projected Annual Growth

2009 Projected Yealry Total $468.00 $468.00

(Percent Revenue Increase)

15.00%

Percent of Sales Marketing Budget (In Thousands) 2009 Marketing Expense $93.60 2010 Marketing Expense $107.64 2011 Marketing Expense $123.79 2012 Marketing Expense $142.35

20


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

STRATEGIES AND TACTICS Strategies •

Specifically advertise toward our target market

Use multimedia to promote product through T.V., radio, web and print ads

Build brand loyalty through increased customer satisfaction, exceptional product performance, and continue using consumer incentives (e.g. discounts)

Increase awareness of Zune’s attributes

Introduce consumers to our discounts/promotions

Create a wider variety of products that fit into more consumers’ budgets

Create the opportunity for consumers to test and play with product at store/kiosk

Increase promoters and decrease detractors (Net promoter score)

Implement employee incentive program to increase customer satisfaction

Make consumers aware that Zune is a Microsoft product o Do this by using the umbrella concept

Communication Strategies •

Buy at Zune.com, Best Buy, Target, Wal-Mart

Push and Pull Strategy o Push- motivate channels to carry product – make it more available to consumers and obtain more shelf space at retailers o Pull- coupons, rebates, and promotions to entice consumers

21


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exceptional Quality and Innovative features o Zune pass o Customize your own Zune o Xbox360 streaming ability o File Sharing o Fm Radio

Tactics •

Convert IPod users to our product o Use media plan to emphasize attributes the Zune has and the IPod doesn’t o Have special offers for users who convert o Team up with Bose for new ear phones and speakers to advertise compatibility

Reach our target market through the media plan o Make commercials exiting, colorful, music oriented and appealing o Similar to the style of the ad currently with Common, but add an emphasis on the product and its features o People need to know the product being advertised o Show attributes of the product o Show Pricing o Show where it can be bought o Media plan and calendar listed below

22


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Release statement about the changes they have made for employees o News article- release January 2nd 2009 o Improve consumer attitude towards the company o Create good reputation for the Zune

By using the discount to Microsoft owners this can help us gain market share o Further build Microsoft brand loyalty

Lower prices by 5-10% to fit into more consumers price range o Currently priced similar to the IPod o Lowering prices would set them apart from IPod o Attract consumers currently not able to afford the Zune o Concentrate on quality and attributes offered

Have a Zune representative at the distributors(Best Buy, Target, Wal-Mart)

Zune Certified - offer a class for employees of those distributors to become educated on Zune o Have a more knowledgeable staff able to offer information to consumers

Ad campaign tying all Microsoft’s products together(Zune, Xbox, Windows) and how well they work with one another o Use media plan to communicate this to consumers

Change the Zune pass from how it currently is o If you don’t continuously pay the monthly fee you lose your music o Once your pass is up you are no longer able to access the music you downloaded

23


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

o Allow customers the chance to buy the Pass for a year o Inform customers of the Zune pass and why it costs money to use through a media campaign o Change program so you can reactivate songs that you lost if the pass ran out o Email reminders for Zune pass holders to remind them to pay monthly •

Use viral marketing technique o A consumer to consumer communication which is powerful and credible because the source is non-marketer dominated o The target market as a whole can be reached through this technique o The media plan is not guaranteed to reach everyone o Will also be successful because the message is delivered personally

Add more benefits to our product—consumers tend to buy things to save time or to save money

Focus on the characteristics of our best consumers –analyze those specific consumers and cater the marketing plan to appeal to them

Enhance search engine optimization to ensure consumers are aware and able to readily search the Zune

Create social networks to promote the Zune on Facebook, MySpace, LinkedIn etc—we could create an entire sector to focus purely on this

Create web banners on popular and relevant websites to help promote the Zune o Websites such as sports illustrated, yahoo, Xbox, YouTube, etc

24


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Create a blog providing commentary and news on our product

Product •

Zune and Zune Pass

Price •

Zune - $99.00 to $249.00 depending on memory size

Compared to Apples IPod - $79.00 to $399.00

Zune Pass – $14.99 a month

Promotion •

Buy a Microsoft product and included is a 10% off coupon for Zune o Will be included in the packaging of the Microsoft product

Trial period of Zune pass with the purchase of a Zune o Will be included in the packaging of the Zune

Conversion discount when users switch to the Zune from the IPod o Customers who participate will have to prove IPod purchase with the registration number from apple

25


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Place •

Distributed through the Zune website

Distribute at retailers such as: Target, Best Buy and Wal-Mart o Have models available for consumers to see and touch o Have proper signage stating all attributes of the Zune o Offer accessories associated with the Zune

26


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Discounts •

Coupons o Include 10% off a Zune, with the purchase of a Microsoft product for 6 months and if the coupon is successful we will extend the promotion o Trial of Zune pass for 3 months with purchase of Zune

Events o Summer fest- Zune booth for consumers to test and ask questions about the Zune

Price Discounts o 10% off consumers converting from an IPod to the Zune o Make it easy to transfer iTunes music to Zune friendly media player

Sponsorship o American Idol §

Give final 24 contestants a free Zune and Zune access while the contestants are still on the show

§

Each contestant can customize their own Zune, and copies of the customized Zunes will be for sale on our website

27


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Media Plan •

T.V. ad will be aired twice (Beginning and end) per program listed below and heavy up during Christmas o Use heavy up strategy during summer months and Christmas o Weekends – throughout the day o Weekdays- After high school gets out – 4 to 11

T.V. ad will be aired during - American Idol, X-games, Taking the Stage, Dancing with the stars, Gossip Girls, Baseballs All-star game, Basketball champion ships, Saturday night day, CSI o Advertising on television is still very successful on shows that are live o The shows that aren’t live will still attract new consumers if they have the right amount of energy, color and music.

Commercial contest, have users make their own commercial o upload them to the Zune website and have website visitors vote o

winner can get free Zune pass for 1 year

o Getting customers involved will increase brand loyalty o Low cost T.V. Ad •

Web banner advertising o Post banner ad’s on sites: VH1, MTV, Local radio stations websites, Magazine websites

28


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

o Have links on the banners to the Zune page o Zune banner ad could illustrate all product attributes while being graphically and visually pleasing •

Magazine ads will appear in Rolling Stone, Time Magazine, Seventeen o Ad will be put in these three magazines six times through out the year- every other month o These magazines will reach a variety in our target market o Rolling Stone will reach the music part of the segment o Time Magazine will reach the overall target market o Seventeen Magazine will reach the youth market

29


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Marketing Budget

Item Rolling Stone Full Page American Idol Sponsorship Time Full Page Network TV (Late Night Talk) Billboard Average City* Billboard Large City* Seventeen Full Page MTV Radio Large City* Web Banners

Frequency

Cost per Total Occurrence 6 $65,000.00 $390,000.00 1 6

$3,500,000.00 $3,500,000.00 $85,000.00 $510,000.00

12 3 6 6 112 94 180

$150,000.00 $1,800,000.00 $2,000.00 $6,000.00 $50,000.00 $300,000.00 $65,000.00 $390,000.00 $20,000.00 $2,240,000.00 $2,000.00 $188,000.00 $200.00 $36,000.00

2009 Yearly Total

$9,360,000.00

Rolling Stone Magazine- Full page advertisement to appear in six times in 2009 for a cost of $390,000.00

American Idol Sponsorship- arbitrary fee $3,500,000.00

Time Magazine- Full page advertisement to appear six times in 2009 for a cost of $510,000.00

Network Television- commercial to air twelve times through out the year, heavy up during summer and prior to Christmas for a cost of $1,800,000.00

30


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Billboard – In an average city contract renewed three times for a cost of $6,000.00, in a large city contract renewed six times for $300,000.00

Seventeen Magazine- Full page advertisements to appear six times for a cost of $390,000.00

MTV- commercials to appear 112 times for a cost of $2,240,000.00

Radio – Large city radio advertisement to air 94 times for a cost of $188,000.00

Web banners- 180 banners to appear for a cost of $36,000.00

Total Marketing expense is $9,360,000.00

31


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Calendar •

When the Advertising will be done

January 2009

February

March

April

R, A, B, S , M,Lr,

A , T, B, M, Lr,

R, A ,B,S, M,Lr,

A, T,M, Lr,

May

June

July

August

R, A, S, M, Lr,

A, T, Tv, B, M,Lr,

R, A,B,S, M, Lr,

A, T, Tv, M, Lr,

September

October

November

December

R, A, B, S, M,Lr,

A, T, Tv, B, M,Lr,

R, A, Tv, Tv, B, S,

A , T, Tv, B, M, Lr,

M, Lr,

R = Rolling Stone Magazine Advertisement •

Print add communicating the attributes, specifically the customization option

A = American Idol Sponsorship •

Have contestants talk about and show their customized Zunes that will be available

Have signage on the stage

T = Time Magazine Advertisement

32


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Print ad communicating the American Idol Sponsorship and the Zunes that will be made available

Tv = Television Advertisement •

Have two different Commercials o One will communicate the attributes and customization option o The other will communicate the promotions that the Zune is offering

B = Billboards (Both average and large cities) •

Have a graphically pleasing and eye popping billboard

Have website legible for customers to refer to

S = Seventeen Magazine Advertisement •

Print ad communicating the American Idol Sponsorship and the Zunes that will be made available

M = MTV advertising (9 commercials a month will be aired) •

Use the same commercials listed above

Lr = Large City Radio (7 commercials a month will be aired) •

Communicate attributes

Have music in the background

American Idol winner give testimonial

33


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Works Cited: http://danielle-dlangara.blogspot.com/2008/11/zune-swot.html http://www.bsu.edu/libraries/ahafner/awh-th-swot-ms.html http://en.wikipedia.org/wiki/Zune http://advertising.microsoft.com/zune-advertising?tab=overview http://www.zune.net/en-US/software/default.htm http://www.usatoday.com/tech/columnist/edwardbaig/2008-09-17-zune-itunes_N.htm http://currencythoughts.com/2009/03/09/expected-gdp-growth-in-2010/ http://www.bls.gov/news.release/empsit.nr0.htm http://apple20.blogs.fortune.cnn.com/2008/01/29/beyond-the-incredible-shrinking-ipodmarket/ http://www.electronics.ca/presscenter/articles/1047/1/PMPMP3-Player-Market-GrowthSkids-Due-to-Weak-Economy-and-Maturation-/Page1.html Alice Z Cuneo. . "Microsoft changes its marketing tune for lackluster Zune. " Advertising Age 5 Nov. 2007: 4,39. ABI/INFORM Global. ProQuest. 28 Apr. 2009 http://www.proquest.com/ Beth Snyder Bulik. . "LITTLE EARS ARE BIG BUCKS FOR MUSIC PLAYERS. " Advertising Age 21 Jan. 2008: 10. ABI/INFORM Global. ProQuest. 28 Apr. 2009 http://www.proquest.com/ http://www.piperjaffray.com/2col_largeright.aspx?id=178&releaseid=1274568&title=Ch allenging%20Economy%20and%20Low%20Consumer%20Confidence%20Lead%20to% 2014%20Percent%20Drop%20in%20Teen%20Spending http://sec.gov/Archives/edgar/data/320193/000119312508224958/d10k.htm http://sec.gov/Archives/edgar/data/789019/000119312508162768/d10k.htm http://sec.gov/Archives/edgar/data/1000180/000100018009000011/form_10k.htm http://images.americas.creative.com/docs/fy08.pdf

34


Marketing Analyisis and Advertising Plan