Entity

Goal15% Windows users purchase/upgrade Windows 9 after it launched one year.

Competence

Core Business

Strengths

No.1 operating system - Windows

Strong brand recognition

Strong revenue growth

Strong distribution channels

Weakness

Mature PC market

Struggled in mobile market

Bing is not worth a bean

Fail in Windows 8

Security issue

Opportunities

Cloud based services

Acquisition and investment

Diversified products

Windows 9

Threats

Intense competition

Open source software

Law/regulation issue

Windows

90.99%

Mac 7%

Linux 2%

Windows 8.1

6%

Windows 8

6%

Windows 7

50%

Windows Vista

3%

Windows XP

25%

55% Revenue from Enterprise

44% Revenue from North America

Revenue from Commercial side: 59.55%

• Microsoft.com support system landing page experience

• IT Pro tracker to encourage active participation

• Paid media with major partner

• Email blasts through CRM systems

• Launch press and media event

• Key conferences for IT professionals

Windows 9 support system

Dedicated to FAQs

Focused on empowering IT Pros

To assist IT Pros in assisting others in their offices and lives.

Videos available for FAQs

Videos available to learn new skills

Posted by Microsoft IT Pros

Provide learning experience

Assistance will be available at the touch of a button to those who have additional questions.

9/30: Windows 9 Announcement

11/11 Windows 9 Release

5/1: Windows 9 Main Push Complete

Post Campaign: Elimination of all programs with the exception of support system

9/1: Digital Strategy Production Kickoff

11/11: Microsoft Support System Launch

1/1: Microsoft Support System Maintenance

9/1: Creative Kickoff

11/1: Paid Media Launch

11/11: Email Blasts Launch

2/1: Paid Media Push Complete

2/15: Email Blasts Maintenance

9/1: Social Engagement Strategy Kickoff

11/11: Social Engagement Launch

1/1: Social Engagement Maintenance

11/10: Windows 9 Launch Event

5/12: MSFT Tech Ed NA

8/24: VM World

11/20: Tech Week LA

1/7: CES

9/1: Event production kickoff

Q1 Cost

(Sept-Nov)

Q2 Cost

(Dec-Feb)

Q3 Cost

(Mar-May)

Q4 Cost

(June-Aug)

Creative & Messaging $245,000 $110,000 $77,000 $77,000

Digital $949,440 $559,440 $419,440 $419,000

Advertising $240,000 $240,000 $190,000 $190,000

Social $210,000 $135,000 $135,000 $135,000

Events $1,500,000 $220,000 $220,000 $220,000

Total Per Quarter $3,144,440 $1,264,440 $1,041,440 $941,440

Total Spend $6,391,760

Number of

Impressions

Number of

Impressions

Purchasing (estimated 20%)

Number of

People

Influenced(estimated 20)

Estimated

Cost of

Purchase($35/ activation)

DigitalEstimated ½% of IT Pros

29,821 5,965 119,300 $4,175,500

AdvertisingEstimated 2% of IT Pros

119,282 23,857 477,140 $16,699,900

SocialEstimated 10% of IT Pros

596,410 113,882 2,277,640 $79,717,400

EventsIncludes media impressions

600,000 120,000 2,400,000 $84,000,000

Total 1,645,513 263,704 5,274,080 $184,592,800

DESCRIPTIONQ1 COST

(Sept - Nov)

Q2 COST

(Dec-Feb)

Q3 COST

(Mar-May)

Q4 COST

(June-Aug)

Windows 9 Launch - Creative & Messaging

Development of a creative look and feel for the Windows 9

Launch Campaign$75,000.00 $0.00 $0.00 $0.00

Creative team to provide graphic banners, email blast headers,

consumer landing experience graphics, social engagement

graphics, etc @ $25,000/ month

$75,000.00 $75,000.00 $50,000.00 $50,000.00

Development of brand messaging for the Windows 9 Launch

Campaign$60,000.00 $0.00 $0.00 $0.00

Messaging team to provide taglines, copy, and CTAs for

landing experience, social engagement, digital strategy, etc. @

$15,000/ month

$35,000.00 $35,000.00 $27,000.00 $27,000.00

TOTAL $245,000.00 $110,000.00 $77,000.00 $77,000.00

DESCRIPTIONQ1 COST

(Sept - Nov)

Q2 COST

(Dec-Feb)

Q3 COST

(Mar-May)

Q4 COST

(June-Aug)

Windows 9 Launch - Digital

Development of a consumer landing experience page on

Microsoft.com:

- Assumes a landing page with at least (4) subsections

with at least (5) subpages stemming from each

- Assumes integration with social media sites for video,

live social updates, etc. $250,000.00 $0.00 $0.00 $0.00

Maintenance of the FAQ subsection of the landing page:

- Assumes a team of professionals answering questions,

posting the most frequent questions to the site with an

associated brand compliant graphic @ $50,000/ month $150,000.00 $150,000.00 $100,000.00 $100,000.00

Video Production:

- Assumes (1) 1:30 video posted per week for the first two

months and (1) 1:30 video posted per month for the

remaining (8) months @ $30,000/ video

- Assumes (5) videos produced in pre-production for

support system launch @ $30,000/ video including post-

production

- Includes production team, extras, lead actor, etc. for (1)

day shoot per video $270,000.00 $180,000.00 $90,000.00 $90,000.00

DESCRIPTIONQ1 COST

(Sept - Nov)

Q2 COST

(Dec-Feb)

Q3 COST

(Mar-May)

Q4 COST

(June-Aug)

Windows 9 Launch - Digital

24 Hour Assist - Personnel Fees:

- Assumes that over a 6 month period 114 million people

worldwide will have installed Windows 9. Because the

US has 4.5% of the worlds population this assumes 5

million activations within the US. The US census shows

that 1.6% of the US population works in an IT capacity.

- Approximately 82,000 IT professionals will have installed

Windows 9 over a (6) month period. If 20% of those use

the 24 hour assist 16,416 customers will call into the

center over a 6 month period.

- If each person uses the help button an average of (2)

times for 20 minutes each the call center will have to

allow for approximately 10,944 hours of call time

@ $20/ hour $109,440.00 $109,440.00 $109,440.00 $109,440.00

24 Hour Assist Call Center:

- Assumes $30,000/ month in call center fees (rent,

workers comp, security, etc) $170,000.00 $120,000.00 $120,000.00 $120,000.00

TOTAL $949,440.00 $559,440.00 $419,440.00 $419,440.00

DESCRIPTIONQ1 COST

(Sept - Nov)

Q2 COST

(Dec-Feb)

Q3 COST

(Mar-May)

Q4 COST

(June-Aug)

Windows 9 Launch - Advertising

Paid Media:

- Assumes utilization of creative and copy from overall

campaign. Will target both channel partner websites and

relevant blogs. $150,000.00 $150,000.00 $100,000.00 $0.00

Email Blasts:

- Input of consumers interacting with the landing

experience into a CRM system and emailing to these

consumers once per week @ $30,000/ month $90,000.00 $90,000.00 $90,000.00 $90,000.00

TOTAL $240,000.00 $240,000.00 $190,000.00 $90,000.00

DESCRIPTIONQ1 COST

(Sept - Nov)

Q2 COST

(Dec-Feb)

Q3 COST

(Mar-May)

Q4 COST

(June-Aug)

Windows 9 Launch - Social

Tracking System Development:

- Includes integration with various social media outlets

and unlimited guest participation $75,000.00 $0.00 $0.00 $0.00

Social Engagement Team:

- Assumes at least (2) engagement activities per week

@ $25,000/ month $75,000.00 $75,000.00 $75,000.00 $75,000.00

Industry Leaders:

- Includes engagement fee of $10,000/ influencer paid to

participate. Assumes (2) participants per month $60,000.00 $60,000.00 $60,000.00 $60,000.00

TOTAL $210,000.00 $135,000.00 $135,000.00 $135,000.00

DESCRIPTIONQ1 COST

(Sept - Nov)

Q2 COST

(Dec-Feb)

Q3 COST

(Mar-May)

Q4 COST

(June-Aug)

Windows 9 Launch - Events

Launch Event:

- Assumes a launch event of 400 people in NYC for (3)

hours. Includes catering, beverages, A-list entertainment,

consumer interaction points, venue fee and AV. $1,200,000.00 $0.00 $0.00 $0.00

Conference Events:

- Assumes participation by about 150 people per event.

Includes staff, catering, beverages, AV, consumer

interaction points for exclusive events @ $200,000/ event$200,000.00 $200,000.00 $200,000.00 $200,000.00

Conference App Development:

- Includes a mobile app for use at multiple events which

will allow guests to hunt for exclusive events onsite. Also

includes updates to the app per event.$100,000.00 $20,000.00 $20,000.00 $20,000.00

TOTAL $1,500,000.00 $220,000.00 $220,000.00 $220,000.00

CAMPAIGN TOTAL $3,144,440.00 $1,264,440.00 $1,041,440.00 $941,440.00

Percentage of IT Pros in the United States

Other Professions IT Pros

Cluster 4 (Prudent Followers)

Cluster 2 (Peer Influenced)Cluster 1 (Innovation Seekers)

Cluster 5 (Cost Focused) Cluster 6 (Change Averse)

Cluster 3 (Vendor Loyal)

• Index high on sr. decision makers.

• Place high emphasis on peer and partner tech recommendations.

• Early adopter mindset and place high priority on new technology categories including cloud, mobile and analytics.

• Actively seek out new technology information and have high cloud understanding.

• More likely than other clusters to include decision makers.

• Work in organizations that embrace the latest technology.

• Place priority on all things cloud and have high brand affinity for Microsoft within public, private and hybrid.

• Organizations are on the forefront of supporting BYOD and new data types.

• More likely to have mid to low level tactical IT Pros.

• Directly involved in implementation of IT priorities.

• Technology decision making emphasizes proven and trusted solutions.

• Conservative on emerging techs and sit in less tech forward industries. Cloud, especially public, is a lower priority.

• Index high on low level IT Pros who want to maintain status quo.

• Do not prioritize new technologies and dis-interested in technology overall.

• Lack of interest in technology career growth and low job satisfaction.

• Index high on mid Level IT Pros.

• Make IT decisions largely on the basis of existing vendor relationships.

• New technology is a moderate priority, although cloud budget momentum is strong.

• Less positive towards Microsoft and most receptive to Amazon and VMware.

Six Distinct IT PRO segments:

• More likely to have mid to low level IT Pros who have lower level of authority and influence, with high number of IT Implementers.

• Emphasize cost first as tech decision factor. “Old school” tech mind-set.

• Cloud laggards with a strong affinity for VMware.

21% 9% 12%

20% 21% 17%

Source: The Next Web / Net Application

Source: National University of Singapore

Source: MicrosoftNews.com

http://www.geekwire.com/2013/microsoft-leading-lagging/

http://www.microsoft.com/en-us/news/press/2001/mar01/03-26winhectabletpcpr.aspx

http://www.britannica.com/EBchecked/topic/380624/Microsoft-Corporation

http://247wallst.com/technology-3/2014/04/05/ten-threats-to-microsofts-success/2/

http://www.microsoft.com/en-us/news/inside_ms.aspx#Segments

http://www.strategicmanagementinsight.com/swot-analyses/microsoft-swot-analysis.html

http://beta.fool.com/fatalx/2012/11/01/microsofts-swot-analysis-what-we-discovered/15592/

http://www.zdnet.com/blog/microsoft/microsoft-we-are-focusing-on-eight-core-businesses/6937

http://microsoft-news.com/microsofts-55-of-revenue-comes-from-enterprise/

http://csimarket.com/stocks/segments.php?code=MSFT

http://marketrealist.com/analysis/stock-analysis/technology/enterprise-software/charts/?featured_post=38081&featured_chart=38085

http://marketrealist.com/2014/01/enterprise-driving-growth-microsoft/

http://gadgets.ndtv.com/laptops/news/windows-81-loses-market-share-for-the-first-time-since-release-report-569295

http://www.winbeta.org/news/windows-81-and-windows-xp-sees-drop-market-share-windows-7-gets-slight-increase

http://appleinsider.com/articles/13/09/02/windows-8-jumps-past-os-x-for-74-market-share

http://www.theregister.co.uk/2014/08/04/windows_8_market_share_stalls_xp_at_record_low/

http://thenextweb.com/microsoft/2014/06/01/windows-8-1-finally-passes-windows-8-market-share-windows-7-climbs-back-50/