In June 2012, Microsoft announced its first effort to compete

Requirements for Individual Term Project

Summer 2017

I will be selecting a company and providing basic information. This term we will focus on the laptop market, specifically Microsoft’s marketing plans for the Microsoft Surface Laptop in the United States market only in 2018. Following this introduction a Template for the Individual Term Project is provided which provides the detailed set of structured questions that should be addressed as we progress through the course. Basically, this project will help you to understand the course material and marketing strategy alternatives and to apply that knowledge to help the firm develop a more detailed marketing plan. At the end of the course you will use the ASSIGNMENTfeature to submit your complete set of marketing recommendations and insights. In essence, this project will serve in lieu of a final exam for the entire course. It is STRONGLY recommended that you work on this project as you progress through the course and not wait until the end of the term when it is due. This is a major assignment and worth a lot of points. From the painful experience of others, if you wait too long to begin it may become a very daunting task.

In June 2012, Microsoft announced its first effort to compete in the computer hardware market with the introduction of the Microsoft Surface brand. Previously, Microsoft was only a software company and did not manufacture and sell their own computer hardware. Instead they relied on OEM partners like Dell, Lenovo, and HP to include Windows software.

The first computer equipment launch was in the tablet market with the Microsoft Surface Tablet in 2012. In 2015, Microsoft entered the laptop market for the first time with the Microsoft Surface Book. On May 2, 2017 Microsoft announced the addition of the Microsoft Surface Laptop. In addition, the Microsoft Surface brand has been expanded into other specialized devices like the Microsoft Surface Studio and the Microsoft Surface Hub.

In a separate document listed under INFORMATION called “Microsoft Surface Laptop Information” I have summarized a couple of sources information to provide an initial overview of Microsoft’s efforts in the laptop market to get you started. In addition, as a start, you can go to www.microsoft.com/en-us/surface/devices/surface-laptop/overview. You should easily be able to find additional information on laptops, the Microsoft Surface Laptop, competition, market trends, consumer interests, sales forecasts, and etc. on the web to help you with your research efforts. It will be necessary for you to do considerable research in the form of a situational analysis in order to effectively address a number of the questions effectively and in sufficient, situation specific detail.

Individual Term Assignment:

YOU have been hired by Microsoft as a marketing consultant to help provide some strategic insights for Microsoft to consider when the company develops its 2^nd year marketing plans for the Microsoft Surface Laptop in the United States for 2018. As a company objective, Microsoft would like to attain at least a 10% market share in the laptop market by the end of 2018 in the U.S. market. Usually, most businesses will prepare annual marketing plans for each product or service offered. Now that the Microsoft Surface Laptop has been introduced and a market entry strategy is being followed for the first year, it is now time to learn from that experience and prepare a new set of marketing plans for the 2^nd year on the market. Specifically, you are asked to provide a preliminary set of recommendations and insights about the market to Sabrina Ellis, Microsoft Director of Product Management – Computer Hardware Division. Although Microsoft will be marketing its new Microsoft Surface Laptop to markets worldwide, your responsibility is to focus on the domestic market opportunities and marketing recommendations for the United States ONLY.

In this assignment YOU will have the opportunity to be creative and to make decisions about what you think Microsoft should do in 2018. You won’t find any information on the net telling you already what they plan to do in 2018 so with the information you gather regarding what they and other laptop providers are currently doing in 2017, you will have to determine what they should do different, the same, or more of to market the new Microsoft Surface Laptop in the U.S. in 2018. That is where you will have to draw upon your knowledge of marketing strategies and marketing concepts to make many of your own recommendations. The idea is for YOU to come up with some of your own creative marketing ideas that might help Microsoft to grow market share and to market the product successfully.

Template for Individual Term Project

Summer 2017

You should consider EACH of the following questions related to Microsoft and the Microsoft Surface Laptop and either respond to the question or make the necessary decisions and recommendations as necessary. These decisions follow the basic format of the course and that is why you should work on this as you go but not before the material is covered in the class. Except for more specific tactical decisions, this assignment probably illustrates most of the key strategy areas and decisions necessary for the marketing of any product or service. All of your responses and recommendations could certainly be the basis for developing a complete marketing plan. Also, many of these questions are based upon material I present in my lecture notes as well as the text.

In addition to making the decisions or responding to the questions, the critical factor is the support you provide for your answers and decisions. The decisions themselves are often not as important as the support provided and reasons for your decisions. Some of these questions do not have only one right answer. Many of your answers will be dependent upon the decision you made in previous questions. Different marketers might come up with different strategies but some will be more logical and potentially successful than others. Others can be just plain wrong. If you draw upon outside resources, it is important to provide proper citations.

This document should be completed and submitted using the ASSIGNMENT feature no later than Tuesday, August 1st. The ideal format for your term project is to simply respond to each of the questions that follow. Most students simply take this template and insert their responses and recommendations after each question.

You will definitely have to conduct some of your own research to better understand the laptop market and the industry dynamics beyond what I have provided to effectively address some of these questions. This might take considerable time and effort especially in the early stages. Remember that a market analysis focuses on buyers and an industry analysis focuses on sellers.

1. What would you identify as the key competitive products, if any, with regards to the Microsoft Surface Laptop?

2. In your expert opinion, define what product market Microsoft will be competing in with the Microsoft Surface Laptop? Also, what is the relevant market you will be using for marketing planning purposes?

3. In your opinion, what are the distinctive competencies, if any, that Microsoft might have with their Microsoft Surface Laptop over competitors AND do you feel that any of these distinctive competencies are likely to become or remain competitive advantages over time?

4. In your opinion, what are any distinctive competencies that each of Microsoft’s key competitive products, as described in Q1, enjoy in the laptop market and are any of these distinctive competencies likely to become or remain competitive advantages over time?

5. When Microsoft introduced the Microsoft Surface Laptop in May of 2017, which one of the nine corporate growth strategies was Microsoft following? Why?

6. In your opinion, which of Porter’s four Competitive Strategies do you recommend Microsoft follow in 2018 for marketing the Microsoft Surface Laptop product offering? Why?

7. Using your expertise as a marketing consultant, estimate the “industry dollar sales forecast” for the relevant market you compete in, as defined in Q2, for the year 2018? (Even with research you will probably have to make some assumptions and estimations in coming up with an industry forecast for 2018. Be sure to cite any sources and demonstrate how you arrived at a forecast)

8. Recommend, name and describe a set of market segments that divide the entire product market as defined in Q2 in the United States in some logical way? (In essence develop a creative way to segment the entire consumer/commercial market for laptops paying attention to the criteria provided in the lecture notes for effective segmentation)

9. Considering your proposed, possible segments of the laptop market in Q8 above, recommend to Microsoft the specific target market/s that should be pursued in 2018 in the U.S. for the Microsoft Surface Laptop. (This is critical. Which target market or segments, if any, do you recommend they focus on the most in the relevant market they will compete in during 2018?) Why?

10. Based on your target market recommendations in Q9, which of the “Five Patterns of Target Market Selection”, if any, comes closest to reflecting the pattern to be followed by Microsoft for the Microsoft Surface Laptop product offering in 2018? Why this choice?

11. In your opinion as a marketing expert, what are the key needs and wants of customers in your recommended target market or target market segments proposed in Q9 for laptops? (Remember if you target multiple segments they should have different needs or wants otherwise why segment?)

12. For each target market recommended in Q9 prepare a “positioning statement” for the Microsoft Surface Laptop to guide next year’s marketing efforts in 2018 in the U.S.? (Try to keep any statement to around 50 words or less. You can provide support with separate paragraphs)

13. Based upon where you position laptops as a “product class” on the Product Life Cycle, do you recommend that Microsoft focus mostly on primary or selective demand strategies for marketing the Microsoft Surface Laptop in 2018 in the U.S.? Why?

14. Using the Booz, Allen & Hamilton classification of new product strategic alternatives, how would you classify Microsoft’s introduction of the Microsoft Surface Laptop in May 2017? Why?

15. When the Microsoft Surface Laptop was introduced in May 2017, would that product launch be considered a new product category for Microsoft or an additional entry into an existing product category? Why?

16. Although Microsoft named their first internally developed laptop the Microsoft Surface Book, when they introduced the Microsoft Surface Laptop some felt that “Laptop” was a poor choice for part of the product name. Now that the product has been released, do you recommend that Microsoft continue with that brand name in 2018 or do you suggest a re-branding strategy and a re-introduction with a different brand name? If so, what?

17. When Microsoft launched the innovative Microsoft Surface Laptop in May 2017, which of the two market entry strategies, pioneer or follower, was Microsoft following? Why?

18. Based upon the brand name you have recommended for the laptop in Q16, what type of “brand identity strategy” will be followed? Why?

19. When Microsoft introduced the Microsoft Surface Laptop in May 2017, which type of “brand leveraging strategy” was Microsoft following? Why?

20. Recommend your proposed channel strategy for the United States by drawing a channel map and explaining your proposed sales channels that Microsoft should use for the Microsoft Surface Laptop for their marketing efforts in 2018 in the United States?

21. Based upon your channel map in Q20 above, are you proposing that they use direct or indirect channels of distribution or both?

22. Based upon your channel map in Q20, are you suggesting the use of conventional channels, vertical marketing systems, horizontal marketing systems, or some combination of the three? Why?

23. Which “new product pricing strategy” do you believe Microsoft used when they introduced the Microsoft Surface Laptop in the U.S. in May 2017? Why?

24. What is your recommendation for any price changes and the actual price (MSRP) to charge for the Microsoft Surface Laptop for their marketing plans in the U.S. in 2018? (Actual $$ price recommendations should be provided)

25. Do you recommend any Price Adaptation Strategies be used for the Microsoft Surface Laptop in the U.S. in 2018? If so, be specific with your recommendations in terms of dollars or percentages, and etc.

26. As a marketing consultant, develop your estimate of a unit and dollar sales forecast for the company for the Microsoft Surface Laptop product line for 2018 in the United States? (Seeking market information like industry trends and forecasts, market share position, industry forecasts, and etc. might be helpful but don’t be afraid to make assumptions too if necessary. Again, cite any references and demonstrate how you arrived at your best guess of a product forecast)

27. Which of the “promotional mix” alternatives do you recommend Microsoft utilize in 2018 in the U.S. to promote the Microsoft Surface Laptop? (Be sure you think through which promotional mix elements should be used to build an Integrated Communications strategy)

28. For EACH of the “promotional mix” alternatives you recommended using in Q27 for your overall promotional efforts, provide some specific tactical suggestions and creative ideas for how each will be used in the promotion of the Microsoft Surface Laptop in the U.S. in 2018? (try to provide enough specific details for each of your recommended actions so that if someone were asked to implement your plans they would basically know what you wanted them to do)

29. If you were asked how Microsoft could provide additional value to its laptop customers in 2018 compared to 2017 with the next release of the next version of the Microsoft Surface Laptop, what basic value strategy do you suggest and what product, pricing and situation specific recommendations would you make for doing so? (Be sure to address both sides of the value formula to demonstrate how)

30. Which type of market relationship strategy is being used by Microsoft by using Pegatron in China to assemble the Microsoft Surface Book and Microsoft Surface Laptop? Why?