CART B. presents

Strategy PlansbookFall 2015

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Table of Contents:

Executive Summary……………………………………………….……………………3

Business Challenge……………………………………………………………………..4

Situation Analysis…………………………………………………………….…………4

Problems and Opportunities Analysis……………………………………………….16

Opportunities Recommendation……………………………………………………..18

Marketing Objectives………………………………………………………………….19

Marketing Strategy Recommendations……………………………………………..19

Target Market Profile………………………………………………………………….22

Product Positioning Statement……………………………………………………….25

Positioning Statement Justification…………………………………………………..26

Communication Objectives…………………………………………………………...27

Communication Strategy……………………………………………………………...27

Media Strategy…………………………………………………………………………27

Tactics…………………………………………………………………………………..30

Measurement and Evaluation………………………………………………………...35

Creative Brief…………………………………………………………………………..39

References……………………………………………………………………………..40

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Executive Summary

Microsoft is a well-established company that has a great deal of opportunities to

break through the fitness wearable industry with the Microsoft Band. Our group was

tasked with developing a strategy and creative brief for the Microsoft Band to help

expand its share in the fitness wearable market. To get an idea of where we are at, we

began by collecting information about the brand, product, market, and competitors.

Next, we expanded on our research by exploring the problems and opportunities for the

Microsoft Band. We decided to capitalize on young, athletic professional men between

the ages of 18-34 as our target market. Our team delved into the lifestyle habits of this

target market and what they are looking for in a fitness wearable.

We recommended that the Microsoft Band would benefit from separating itself

from other fitness wearables and smartwatches in this industry by showcasing its high

functionality. We believe that the Band could appeal to consumers who want to work out

but need motivation and direction, which the Band is capable of providing. Therefore we

hope to develop a brand character that is determined, resourceful, and supportive, with

a value based payoff of synergy and achievement.

We believe that stimulating trial purchase of the Microsoft Band and increasing

the target market’s preference for the Band will lead to growth in its market share in the

wearable technology market. We look to accomplish this through television advertising,

social media campaigns, store demonstrations, and numerous other tactics. We

developed a measurement and evaluation plan to gauge our progress, as well as a

creative brief to make sure our strategy remains consistent.

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Business Challenge

Microsoft Band’s business challenge is to grow its market share in the wearable

technology market.

Situation Analysis:

Industry Analysis

The Microsoft Band competes in the wearable technology, fitness accessory, and

smart device industries, but the most relevant is the wearable technology industry. The

wearable technology industry has been defined in the last few years by the world

witnessing a rapid growth in the global wearable medical technology market primarily

because of technological innovation, increasing health consciousness and globally

rising aging population (Transparency Market Research). The year 2014 was titled the

“Year of the Wearable,” which encouraged a plethora of new wearable products. Also,

compared to previous years, the market grew more quickly (Statista, 2015). The private

consumer market has just recently started to feature items such as smart glasses,

smartwatches, hearables, fitness and health trackers, or even smart jewelry and smart

fashion (Statista, 2015).

The potential of the industry can be determined by the fact that both - the big

established companies and small start-ups have up their stakes in the wearable

technology market (PR Newswire, 2013). The wearable electronics industry was worth

$2.7 billion in 2012 and is projected to be worth $8.3 billion in 2018. Its compound

annual growth rate is estimated to be 17.71% from 2013 to 2018 (PR Newswire, 2013).

This market research estimates that by 2016, wearable device shipments will surpass

140 Million, will account for nearly $30 Billion in revenue and wearable technology

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market is further expected to grow at a compound annual growth rate of 30 percent over

the next five years (PR Newswire, 2013).

This is a highly competitive industry in which media companies face competition

from a variety of different sources (Hoovers). The industry’s top players are Fitbit,

Xiaomi, Garmin, Samsung, Jawbone and Apple. As of the second quarter of 2015,

Fitbit’s share is 24.3%, Xiaomi’s is 17.1%, Garmin’s is 3.9%, Samsung’s is 3.3% and

Jawbone’s is 19.9% (Statista, 2015).

Because consumer tastes are constantly changing, Microsoft Band competes in

an industry that is saturated with technology for the sake of innovation. In addition, price

is a short term barrier as the wearables market becomes more saturated and

competitive. The industry is not completely saturated, as retail revenue for smart

wearable devices is projected at 53.2 billion dollars in 2019 (Statista).

According to a Statista Dossier on (smart) wearables, social trends go to show us

that 48% of people are likely to use smartwatches for health/fitness.

Additionally, a 2013 statistic that asked consumers what they viewed as the most

important smart phone applications were got 30% share of respondents to vote for

fitness applications, with communications tailing behind with 21% and social media with

13%.

According to a survey conducted by Statista in early 2014 (before the

announcement of the Apple Watch), consumers were asked how likely they were to

purchase certain wearable technology in the following 12 months. 45% of consumers

said a fitness band compared to the 35% who said a smart watch. This is an important

trend to capitalize on because Microsoft Band is positioned as a fitness band, whereas

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one of its leading competitors is Apple Watch (which is a smart watch, not a fitness

wearable).

Company Analysis

Microsoft Inc. is a public company whose mission is to “Empower every person

and every organization on the planet to achieve more,” with a strategy to “Build best-in-

class platforms and productivity service for a mobile-first, cloud-first world.” Microsoft

plans to “Reinvent productivity & business processes, build the intelligent cloud

platform, and create more personal computing.” The company started in 1975 when Bill

Gates and Paul Allen wrote BASIC, a computer-programming language, then sold it to a

computer maker in Albuquerque. It is the world’s #1 software company and it operates

in more than 100 countries, however more than half of its sales are from the U.S.

(Hoovers). Although, in June of 1981 the Gates-Allen partnership was officially created

as Microsoft Inc. Later stock became public for $21 per share and went up to $28 by the

end of the day in 1986. Of Microsoft’s achievements and advances some notable

moments are in 2009 when Microsoft launched Bing, in 2012 when the Windows Phone

8 was unveiled, and in 2014 when the Microsoft Band device was announced and later

released in 2015. Additionally, Microsoft’s home base is in Redmond, Washington even

though it has many other host operation centers all over the world (Microsoft Inc.) The

company owns over 100 Microsoft Specialty Stores in the United States. In addition to

selling Microsoft products, these retail locations host in-store events, offer personal

training and provide personal shopping assistants to enhance the customer’s

experience (Microsoft Inc.).

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In 2015 Microsoft had $93.58 billion in sales, a 7.7% one-year sales growth, and

an estimated global brand value of $115.5 billion. Microsoft also has a market value of

333,524.8 million and a net worth of $80 billion (Statista, 2015). As of August 28th, 2015

the price for a share was $43.93 (Avention). The company also has many assets that

are currently worth a total of $176.22 billion (Hoovers, 2015).

Microsoft Inc.’s products comprise of computer software, service and devices,

desktop applications, and enterprise software. Some of its products include Xbox, Bing,

Word, Excel, Outlook, Skype, Minecraft and the Microsoft band (Hoovers). The founder

Bill Gates currently works as the Technology Advisory. Currently, Satya Nadella is the

chief executive officer and Amy Hood is the chief financial officer (Microsoft Inc.).

Brand/Product Analysis

The Microsoft Band is one of the newest additions to the wearable competitive

market and was released at a retail price of $199.99. The Microsoft Band is linked to the

Microsoft Health platform and is compatible with Windows, Apple and Android operating

systems. Compared to the Fitbit, it is primarily promoted as a cross-platform compatible

wearable device that increases productivity by tracking your body metrics and keeping

you updated with its connection to your phone.

According to windowscentral.com, “Microsoft has positioned itself to be a partner

with the multitude of players in Wearables.,, It has acted as the tool to introduce an

ecosystem of health services, sensor technology and functional form factor to a growing

industry of fitness trackers and health-focused smart wearables.” The Band is

positioned to beat out competitors, not because of what it is, but because of what it can

achieve. Its targeting users who are not looking for a smartwatch, but rather a fitness

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tracker. As theverge.com put it, Microsoft’s users “want powerful, accurate data, which

is one of the great promises of Health,” Microsoft’s cloud service that analyzes data

collected from its Band to give users a better idea of their health and activity levels

(cheatsheet.com).

The Microsoft Band’s initial distribution was limited to the US during its October

30th, 2014 release, but eventually expanded to the UK on April 15, 2015. Microsoft uses

an intensive distribution strategy to sell the product to consumers. The product can be

purchased in store or online from various retailers. The Microsoft Band is stocked in

specialty and discount stores such as Best Buy and Target. It is also sold in Microsoft

Specialty Stores in the US using a brick-and-mortar placement strategy (Microsoft Inc.).

Since its release, around $675,000 has been spent in the last calendar year on

advertising and promoting the release of this product in the wearable technology

industry (Ad$pender). Each product that is distributed comes in a box that includes a

Microsoft Band, USB magnetic connector cable, Safety and Warranty document, and

Quick-Start Guide.

Features of the product include the ability to check email, set events on a

calendar, set timers/alarms, receive guided workouts, track heart rate, access GPS

maps, and track sleep. With a 1.4” TFT (thin-film transistor) full color display size of

11mm x 33mm, the Microsoft Band’s screen interface is larger than that of the Fitbit. Its

sensors include an Optical heart rate sensor, 3- axis accelerometer, gyrometer, GPS,

skin temperature sensor, UV sensor, capacitive sensor, and even a microphone. In

order to enhance consumer experience, Microsoft has partnered up with Starbucks,

Gold’s Gym, MyFitnessPal, RunKeeper, HealthVault, MapMyFitness, Strava,

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MapMyRide, and TaylorMade. These partnerships exist to promote the Microsoft Band

and maximize the consumer’s productivity.

Promotional activities have been targeted towards a variety of audiences, but all

focus on one message-- the Microsoft Band will allow you to live a healthier

lifestyle. The advertisement that was first released on Youtube by Microsoft

(https://www.youtube.com/watch?v=CEvjulEJH9w) put significant emphasis of “making

the most of every moment. This advertisement particularly focuses on how the

Microsoft Band allows you to never miss a single text or “moment”, as they call it, if you

are using their newest addition to the wearable technology market. Overall, the

advertisements all help to position the brand in the consumer's mind of helping them

achieve and maintain a healthier lifestyle.

Recently, there has been significant buzz about the release of a new Microsoft

Band. The Microsoft Band 2 is likely to be officially debuted at a company event this fall.

According to Windows Central, the new fitness wearable will have a more attractive,

curved display. Reports also reveal the device will feature improved sensors (Windows

Central). As a result of the Microsoft Band 2 announcement, the Microsoft online store

has started offering the original Microsoft Band at a reduced price of $129.99 (Buy

Microsoft Band - Microsoft Store).

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Competitive Analysis (Fitbit)

Smart wearables are categorized in a highly competitive market, a domain that is

already quite crowded. The direct competition for Microsoft Band would be the most

successful fitness trackers produced thus far by Nike, Fitbit, and Jawbone. Indirect

competition comes from the leaders in smart watches, such as Samsung, Pebble,

Apple, and Sony (Statista).

What must be noted when recognizing the direct competitor is looking at the

leader in fitness tracking smart wearable, not the leading smart watch brand. That being

said, Fitbit is the leader in fitness tracking wearables, holding 69% of the fitness-tracker

market, according to NPD Group (WSJ via KantarMedia). According to Hoover, the

company sales total was $745.43 million in 2014, with a profit of $131.78 million.

Fitbit’s mission is “to empower and inspire you to live a healthier, more active life.

We design products and experiences that fit seamlessly into your life so you can

achieve your health and fitness goals, whatever they may be” (fitbit.com).

The company offers a variety of wearable fitness trackers, as well as a Fitbit

Premium membership service that serves as an around the clock virtual personal trainer

delivered to users through any Web browser (fitbit.com).

Fitbit was the leading spender in wearable fitness advertising, spending $21.6

million in 2014 on media such as television, magazines, and the web (WSJ via

KantarMedia). According to AdAge.com, Fitbit ran its first campaign in Fall 2014. A

seven-year-old brand by this point, it didn’t need to be advertised anymore than through

its usual digital and PR activity, holding more than half the share of in the activity-

trackers market, as mentioned before (adage.com). As the category started to look

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more competitive, it released a campaign to showcase its brand and new products,

including the Fitbit Surge, across all media.

Of all of Fitbit’s products, the most direct competitor to Microsoft Band is the Fitbit

Surge. Selling for $249.95; this watch’s attributes include: GPS tracking, PurePulse

Heart Rate, All-Day Activity, Multi-Sport recording features, Long Battery Life (7 days),

Notifications and Music, Auto Sleep and Alarms, and Wireless Syncing (fitbit.com).

Unlike most of Fitbit’s “everyday fitness” line, the Fitbit Surge is designed to appeal to

more serious fitness and performance athletes, a similar audience as the Microsoft

Band.

Fitbit products are sold through multiple distributors, including its own website

Fitbit.com; cellphone companies such as AT&T and Verizon; sporting retailers like

Dick’s and Sports Authority; and stores like Walmart and Target (fitbit.com/retailers).

Consumer Analysis

Consumers of the Microsoft Band are fitness-focused individuals interested in

new and efficient technology. These consumers are concerned with personal health and

physical fitness. They value cheaper alternatives to costly electronics that saturate the

athletic accessory market. The targeted consumer has considerably low brand loyalty to

any specific sports wearable provider, making them susceptible to investing in Microsoft

(Wall St. Cheat Sheet).

Consumers that invest in the Microsoft Band are from households making

$75,000 to $99,900 per year. Those included in this range of income are more likely to

generate interest in smaller electronic categories such as athletic wearables. The

Microsoft Band is more likely to attract men aged 18 to 34. Focusing on this age and

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gender group will increase the growth of the Microsoft Band considering that men aged

18 to 34 have been reported twice as likely purchase wearables than women of the

same age range (Mintel). Individuals in this age segment are also more likely to

incorporate fitness tools into their workouts. Mintel reports 32% of men aged 18-34 are

interested in working with innovative technology such as wearable athletic trackers or

mobile apps to enhance their fitness experience, while 42% of men aged 18-34 favor

efficient workout routines to complement their busy schedules (Mintel). Therefore,

Microsoft Band’s consumers appreciate the values of efficiency and adaptability that the

Band will add to their complex lifestyles.

Microsoft Band consumers appreciate cross-platform technology that fits

comfortably in their active lifestyles (Rothman). For example, consumers that enjoy

running can use the GPS radio feature on the Microsoft Band to track routes and

exercise progress without having to carry the paired smartphone (Wall St. Cheat Sheet).

These consumers have an on-the-go mindset and value the product’s 48-hour battery

life as well as its practical interface (Ward-Bailey). Based on the Microsoft Band

consumer’s personality profile, these individuals are located in metropolitan areas and

spend time at electronic stores or gyms; more specifically, at Gold's Gym, “the world's

leading authority on health and fitness.” Gold’s Gym members can access a 12-week

fitness plan using the Microsoft Band to collaborate between both brands (Microsoft

Taps Gold’s…). All in all, the typical Microsoft Band consumer is an innovative thinker

and athlete focused on functionality over fashion (Wall St. Cheat Sheet).

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Market Analysis

The U.S. regions with the highest concentration of smartphone users, who would

be purchasing fitness wearables, are the South and the West. According to Mintel, the

average age of the US population is increasing and those aged 65+ are expected to

make up around 16% of the population by 2019. This is important for the smart

wearables market because their heaviest consumers are 25- to 34-year-old men,

followed by 35- to 44-year-old men and 18- to 34-year-old women.

Hispanic, Black and Asian populations are projected to increase in the U.S. over

the next five years. In the past year, Hispanics bought 15% of the smartwatches market.

By anticipating increasing populations of these ethnic groups, Microsoft can cater to

them as well.

As of May 2015, nearly one in four respondents of Baird’s survey planned to buy

a fitness band. According to Mintel, U.S. consumers spent a total of $4.36 million dollars

on mobile phone accessories, a 35% increase from 2012 reports.

Macroenvironmental Analysis

There have been concerns about the invasive nature of wearable technology

increasing stress in its users. Constant connectivity may get in the way of how people

separate work from life. Wearable technology has the potential to help its users work

flexibly and productively but may also extend the work day in a treadmill effect

stemming from negative working patterns (Mintel).

Owning fitness clothing helps people feel empowered, having an accessory that

reminds you to be healthy affects your motivation. About 26% of consumers purchased

NikeFuel to motivate themselves to exercise more often. Additionally, 53% of

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consumers who are working out less say they have trouble getting motivated to

exercise, 23% lack the time to exercise, and 21% get bored with their routines and lose

interest (Mintel).

Brands that can “go beyond clothing” and direct consumers’ lifestyle choices

achieve more success in the fitness market. To accomplish this they must be available

where and when customers are searching for health or fitness information and offer

real-life coaching tools and services, while weaving in social elements (Mintel).

Consumers are buying products that provide small “pick-me-up” moments. Thus,

29% of consumers purchase fitness clothing to treat themselves. Exercising can lead to

a feeling of being fit and a more positive state of mind. People are buying fitness

clothing because it gives them a sense of wellbeing. Two-thirds of those who purchase

fitness clothing say that clothing should be comfortable to wear. Trends also point to

wearable technology having to become more stylish, capable of being worn in the gym

or casually in the streets (Mintel).

Wearable fitness technology could impact the fitness center industry by

improving attendance as people are made more aware of their fitness levels. Fitness

technology can’t substitute the equipment or personal counseling a fitness center offers.

There’s an opportunity for possible partnerships with fitness centers in the future as the

fitness wearable industry grows. (Mintel)

Vivametrica and Sensorup have an exclusive partnership to collect, standardize

and integrate data from wearable devices for application in healthcare environments.

Sensorup standardizes and calibrates the data that will integrate into Vivametrica's

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analytics platform, resulting in more accurate assessments for consumers, businesses,

and healthcare organizations.

Richard Hu, the founder of Vivametrica has called for an industry-wide standard

for data management to be developed in order to ensure the validity of the personal

data collected from health tracking devices. This partnership will affect the future of data

collection and interpretation in the wearable technology industry (Vivametrica).

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Problems and Opportunities Analysis Problems:

1. The Microsoft Band faces competition in the fitness wearable industry as the

established players have more visibility and several product lines in the market.

2. Distribution of the Microsoft Band has been limited, not meeting initial or

international consumer demand due to selling out upon release.

3. Consumer tastes are constantly changing in the smart wearables market which is

already saturated with fitness accessories that are constantly innovating. The

Microsoft Band may struggle to stay relevant.

4. Microsoft didn’t expend enough resources to promote the Microsoft Band. This

lack of exposure to the product had consumers misunderstand the Microsoft

Band’s positioning among smart wearables.

5. The average age of the US population is increasing and those aged 65+ are

expected to make up around 16% of the population by 2019, meaning there will

be a smaller percentage of the population that will make up Microsoft’s target

market in the coming years.

Opportunities:

1. There has been substantial growth in the wearable technology industry in recent

years and this growth is projected to continue; Microsoft Band can capitalize on

this growth if it establishes itself as a key player in this industry.

2. Consumers in the U.S. market are growing increasingly health conscious and

could depend more on developing fitness accessories, like the Microsoft Band

and its Microsoft Health platform, to motivate them to live a healthier lifestyle.

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3. The Microsoft Band’s cross-platform connectivity and partnership with several

established brands could help the Microsoft Band position itself as the most

compatible wearable technology in the market.

4. Men aged 18 to 34 are more likely to buy smart wearables than women and they

are buying based on functionality which is a main selling point of the Microsoft

Band.

5. With the partnership of Vivametrica and Sensorup, the data collected from smart

wearables is being optimized to deliver more accurate and usable results. This

could positively impact the Microsoft Health platform which will increase the

functionality of the Microsoft Band.

6. Microsoft has sports partnerships that make it easier to target athletes and enter

into the athletic wear market. With these partnerships Microsoft could reinforce

the Band’s positioning in consumers’ minds as a fitness wearable rather than a

lifestyle one.

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Opportunities Recommendation:

For the Microsoft Band to increase its market share in the smart wearables

market, they would benefit from positioning themselves as the go-to fitness accessory

for young men. Since men aged 18 to 34 are reported to be twice as likely to buy smart

wearables as women of the same age group, Microsoft would be smart to make an

effort to target this gender and age group with the Band.

Despite the large projected growth of the wearable technology industry, it is

already saturated with fitness wearables. The Microsoft Band would benefit from

separating itself from other fitness wearables and smartwatches in this industry.

Microsoft can position the Band ahead of competitors by showcasing its high

functionality. The Microsoft Band’s cross-platform compatibility and Microsoft Health

platform can be capitalized on as the main selling point of the product. It can also

appeal to the consumers who want to work out but need determination and direction by

showcasing its reminder system as motivation to exercise along with its database of

workout routines powered by Microsoft Health.

Due to Microsoft’s partnerships with Gold’s Gym and other established fitness

brands, it would be best if the company capitalized on these partnerships to sell the

Band to athletes. Because of Vivametrica and Sensorups partnership to optimize data

collected from smart wearables, the Microsoft Health platform can appeal to athletes by

delivering more usable results.

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Marketing Objectives

To increase sales of the Microsoft Band in the target market by 20% within the

next 12 month period after the campaign’s release.

To increase traffic to the Microsoft Band website by 30% over the first 12 months

of the campaign.

Marketing Strategy Recommendations Product - The Microsoft Band is a fitness tracker situated in the wearable

technology market. Made with a 1.4” thin-film transistor and full color display size of

11mm x 33mm, the Band functions as a workout guide and personal assistant.

Microsoft Band’s features include an optical heart rate sensor, 3- axis accelerometer,

gyrometer, GPS, skin temperature sensor, UV sensor, capacitive sensor, and a

microphone. Users can check email, schedule events on a mobile calendar, set timers

or alarms on a digital clock, access guided workouts, track heart rate, use GPS maps,

and even track sleeping schedules. Linked to the Microsoft Health app, Microsoft Band

is compatible with mobile devices that analyze the user’s fitness data in vibrant charts

and graphs on an online dashboard. As an introductory product to the wearable

technology market, there is an advantage in continuing to promote the same attributes

of the Microsoft Band to the prospective target market. Based on macroeconomic and

consumer trends, the features of the first generation Microsoft Band will remain

consistent with the needs of the growing target market.

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Pricing - Since its introduction to the wearable technology market, the Microsoft

Band has retained a competitive pricing strategy. The Band was offered at a retail price

of $199.99 upon its original release date. Other competitors in the market, such as

Fitbit, have released similar products for higher prices. Although the product offered

similar attributes to the Microsoft Band, the Fitbit Surge initially sold for $249.99.

However, Fitbit has leverage to keep product prices high because of its experience as a

fitness wearable provider. In comparison to the Fitbit Surge, the Microsoft Band is

offered at the lower end of the same price range. Over time, Microsoft Band has

decreased its price due to the release of the second generation Microsoft Band -

Microsoft Band 2. The Microsoft Band now retails for $129.99, and the Microsoft Band 2

retails for $249.99. Based on activity in the wearable technology marketplace, there is

an advantage in retaining the competitive pricing strategy for the Microsoft Band. This

product category is still in development as new competition moves into the market with

minimal barriers to entry. Suggested by the information gathered, the Microsoft Band

would benefit from pricing competitively rather than pricing at the everyday-low pricing

strategy or penetration pricing strategy.

Distribution - Microsoft uses an intensive distribution strategy to sell the

Microsoft Band to consumers. The product can be purchased in store or online from

various retailers or distributors. The Microsoft Band is stocked in the majority of outlets

such as specialty and discount stores. These include retailers like Best Buy and Target.

The Microsoft Band is positioned within the electronics department among direct and

indirect competitors, more specifically, the Fitbit Surge and the Apple Watch. Microsoft

is a brick-and-mortar business owning over 100 Microsoft Specialty Stores all around

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the United States. In addition to selling the Microsoft Band, these brand retail locations

host in-store events, offer personal training and provide personal shopping assistants.

In regard to online sales, the Microsoft Band can be purchased through the Microsoft

website - the brand’s most reliable distribution platform. According to consumer

responses, there are benefits in maintaining an intensive distribution strategy for the

Microsoft Band. The Band is positioned as an accessible product for a fitness conscious

consumer; therefore, there is an advantage in saturating the wearable technology

market where awareness is increasing and audiences are growing.

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Target Market Profile There is advantage in targeting the Microsoft Band to a young athletic

professionals market. Based off of the situation analysis, this market consists primarily

of men, especially within the ages of 18-34. This market is located mostly in the South

and West regions of the United States, areas that have the highest concentration of

smartphone users. This is an important contribution to the market because it aligns with

the fact that fitness-focused individuals are interested in new and innovative technology,

also looking for such technology to be incorporated into their workouts. These people

also have the income to afford the Band’s competitive price. This market also has an

“on-the-go” mindset, which correlates to their metropolitan location. They are innovative

thinkers, engaged in a professional career that requires intelligence.

This market is already engaged in exercising as a daily routine and would be

looking for assistance and support through the Microsoft Band, not necessarily needing

it as a tool for motivation. That being said, although there is a bigger percentage of

consumers who lack motivation to exercise (53%), the Band could target the smaller

niche of consumers who already exercise but get bored with their routines and lose

interest (21%) (Macroenvironmental Analysis, Mintel). The Band is much more

engaging with its user because of its multiple technical features and sensors, as well as

its many partnerships. For example, the Band has already realized that fitness

technology cannot take the place of equipment or personal trainers and has therefore

partnered up with Gold’s Gym fitness center. Because of these features the Band has,

this product would work best for a market of people who are already motivated to

exercise and consider it a vital aspect to their life.

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First Person Profile

“Hello, I’m Josh Harding. I work as a junior investment banker for Goldman

Sachs where I make $84,000 a year. I’m 28 years old and living in an apartment in

downtown Atlanta, Georgia. I come from an upper-middle class background and I

graduated from the Emory College of Business. I was on the men’s outdoor track and

field team and I played intramural Ultimate Frisbee. I tend to buy my groceries at Whole

Foods (I love their Lobster Bisque) because of their organic and healthy alternatives,

but when I’m in a rush I don’t mind stopping at the grocery store closest to my

apartment. I drive an Acura that I’ve owned for three years now and I take good care of.

I work out every morning, except on the weekends, rotating between running around my

neighborhood or going to Gold’s Gym. I like going out with my friends whenever as I can

for Thursday Night Football, either to dinner or a bar in Downtown where we chill with

crafted beers. I like to be updated with local news so I frequently read the Wall Street

Journal and Businessweek, as well as follow multiple news outlets on my Twitter

account. My iPhone is my right hand man, organizing everything from my work life to my

social life. I’m in a serious relationship with my girlfriend, and I hope to settle down and

have a family in the future. I read The Verge, Primer Magazine, and GQ to stay on top

of the latest trends, so I tend to be the first in line to buy new gadgets. I value

organization, so I am quite the planner. I’m ambitious and goal-oriented, which,

thankfully, is how I got to where I am today. I am mindful of where and how I use my

money, so I do appreciate quality over quantity. I don’t consider myself a frivolous

spender, but I will splurge on things in line with my personal lifestyle that are worth the

investment.”

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Product Positioning Statement Alternatives

Alternative #1: To busy, health conscious men who want to incorporate a

consistent exercise routine into their tightly scheduled lives. Microsoft Band is the

fitness wearable that is geared towards individuals who wish to facilitate

productivity. The reason is because it provides a personal assistant and receives

cell phone notifications, in addition to the guided workouts and personal tracking

capabilities. The value-based payoff is proactivity and utility. The brand character

is functional, supportive, and organized.

Alternative #2: To young athletic professionals who want an exercise assistant

that organizes and tracks their lifestyles. Microsoft Band is the fitness wearable

that assists athletic individuals in their everyday lifestyles and exercise habits.

The reason is because it provides guided workouts and monitors an individual’s

heart rate, calories burned, and sleep quality. The brand character is determined,

resourceful, and supportive. The value based payoff is synergy and achievement.

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Justification for Proposition Statement #2

Alternative #1 emphasizes the resourcefulness of the Microsoft Band. This

proposition focuses on integrating the Band into the user’s everyday lifestyle

rather than solely using it as a tool to monitor fitness progress over time. This

alternative also describes the integrated capabilities with users’ phones and

cellular notifications, which facilitates a more digitally connected style of living.

These users value the Band for its reliability in following their complicated

schedules.

Alternative #2 works better for the target market because exercise is already an

integral aspect of their lives. With the Microsoft Band, users will reach their

fitness goals and maintain healthy lifestyles. These individuals do not need

motivation to exercise, but rather an assistant that will create a greater combined

effect on their lifestyle. The Microsoft Band offers users a chance to improve their

lives through its multiple benefits. The synergetic qualities allow users to easily

integrate the Band into their everyday life.

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Communication Objectives

To stimulate trial purchase of the Microsoft Band by 15% over a 6 month period

after the campaign’s release.

To increase the target market’s preference for the Band among fitness tracker

competitors by 25% within a fiscal year.

Communication Strategy

Convince young athletic professionals who want an exercise assistant that

organizes and tracks their lifestyles

That the Microsoft Band is the fitness wearable that assists athletic individuals in

their everyday lifestyles and exercise habits

Because it provides guided workouts and monitors an individual’s heart rate,

calories burned, and sleep quality.

Media Strategy

1. In order to accomplish our first communication objective, which is to stimulate

trial purchase, we plan on hosting sales promotions through a social media

campaign.

Frequency: Post a submission once a week on Monday. Contests last

Monday through Sunday, for the months of February and March. June,

July and August would have bi-weekly giveaways.

Time of year: Spring to Summer, capitalizing on Spring Break and the

Summer Olympics

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2. In order to accomplish our second communication objective, which is to increase

the target market’s preference for the Band, we plan on developing a television

commercial campaign.

Frequency: Twice every hour during prime-time, two nights a week, on the

Big Three networks, for the winter season. For the summer, before the

Olympics begin: commercials will play during the early-morning day part,

once an hour. When the Olympics begin: commercials will play once per

Olympic event.

Time of year: We will launch a series of commercials during the winter

season, where individuals are purchasing gifts for the holidays, as well as

making new lifestyle changes with the new year. We will also release a similar

series at the beginning of summer 2016, while the Summer Olympics are

approaching.

3. In order to accomplish our second communication objective, which is to increase

the target market’s preference for the Band, we plan on creating a print

advertisement campaign using fitness magazines.

Frequency: One full-page advertisement featured in one fitness magazine

per month.

Time of year: This tactic will take place during the first fiscal year of the

Microsoft Band’s campaign.

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4. In order to accomplish our first communication objective, which is to stimulate

trial purchase, we plan on having Microsoft stores provide demonstrations of the

Microsoft Band.

Frequency: On a bimonthly basis throughout Microsoft stores.

Time of year: During the months leading up to the new Microsoft Band

launch, throughout the holiday season and new year, and the summer

months.

5. In order to accomplish our second communication objective, which is to increase

the target market’s preference for the Band, we plan on having Microsoft sponsor

marathons across the nation.

Frequency: Three marathons a year with hopes of sponsoring ones that

appeal directly to our target market.

Time of year: During the spring season, when most marathons are held.

6. In order to accomplish our second communication objective, which is to increase

the target market’s preference for the Band, we plan on establishing a strong

digital presence to create a brand and client relationship with the consumer.

Frequency: Maintaining social media accounts on a daily basis.

Time of year: Strong presence during the first fiscal year of Microsoft

Band’s campaign.

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Tactics

Digital/Social Media Tactics

1. Instagram promotion

Summary - Encourage people to take pictures of themselves with the Microsoft

Band engaging in physical activity or casually in their everyday lives. Microsoft will

select the best pictures to be showcased for promotions and the consumers are sent

goods from Microsoft and Microsoft’s partners.

Justification for stimulating trial purchase - Prominent Instagram users may

purchase the band to submit pictures for this campaign, promoting the Microsoft Band

to their audience.

2. Youtube promotion

Summary - The Microsoft Band will be distributed to content creators that

resonate with the target audience the Microsoft Band is attempting to reach. They will

be given a Microsoft Band and asked to create content that promotes aspects of the

Microsoft Band along with a quota of videos to fill within the promotion period.

Justification for stimulating trial purchase - Since the audience of the content

creators will also be the audience for the Microsoft Band, seeing video content

showcasing the benefits and features of Microsoft Band will stimulate trial of the

product.

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3. Twitter promotion

Summary - Encourage followers to Retweet and Like content and engage with

Microsoft Band as a Twitter user. This enables followers to stay connected with

Microsoft as a brand through the exchange of quick messages, retweets, and likes.

Justification for stimulating trial purchase - Because it’s a microblogging

social platform, Microsoft Band users are more likely to use Twitter to keep up with

current sporting events. More exposure to Microsoft Band’s content on this platform will

stimulate trial of the product.

Advertising Tactics

4. Big Three TV commercial

Summary - Air the commercial during a show that our target market is watching.

Justification for increasing target market preference for the Band - The

audience will see the Microsoft Band positioned with a show that resonates with their

lifestyle and be encouraged to look into it.

5. NBC & Olympic affiliate commercials

Summary - Air the commercial with a sport that our target market is watching.

Justification for increasing target market preference for the Band - The

audience will see the Microsoft Band positioned next to sports and other feats of

athleticism. The audience will be encouraged to try the Microsoft Band as a device that

promotes healthy living and as a fitness tracker.

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6. Fitness magazine print advertisement

Summary - Print Advertisement will be displayed on one fitness magazine such

as Men’s Health or Men’s Fitness. The full-page advertisement will position the Band as

a primary fitness wearable.

Justification for increasing target market preference for the Band - By

positioning the Microsoft Band as a functional fitness tracker and exercise assistant,

product recognition for the product will increase.

Sales Promotion Tactics

7. Microsoft Store demonstration

Summary - Bi-monthly store demonstrations will be held during peak business

hours of the day (in select locations) and customers will be offered a discount if they buy

the Band immediately after demonstration.

Justification for stimulating trial purchase - Having a store demonstration and

concurrent discounts on the product should stimulate trial purchase because the

demonstration will generate interest and the limited-time offer will put pressure on

individuals to buy at that moment ultimately building sales among the target market.

8. Twitter sales promotion

Summary - Sales promotions will be used through Twitter by offering giveaways

and contests.

Justification for increasing target market preference for the Band -

Giveaways and contests will generate interest in the Microsoft Band by stimulating

conversations around the Band and incorporate a hashtag.

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9. Instagram sales promotion

Summary - As well as with Twitter, giveaways and contests will be distributed

through Microsoft’s Instagram. Additionally the first 500 followers of the Instagram

account will receive a discount on the Band.

Justification for increasing target market preference for the Band - By

utilizing an Instagram account for many of Microsoft’s products, the Band can help build

brand consciousness by posting about the variety of products that Microsoft has to offer

and incorporating the Band in a way that promotes the Band and and builds brand

consciousness.

10. Free Microsoft Band promotional merchandise at marathon booths

Summary - Free promotional merchandise bearing the Microsoft logo will be

provided to participants at the Microsoft booth at various marathons. These promotional

items will include water bottles, sweat towels, drawstring backpacks, and rubber

bracelets.

Justification for increasing target market preference for the Band - By

supplying free promotional merchandise to marathon participants, individuals will be

able to recall the brand’s name and logo on the gifts, which will gradually build brand

consciousness among young athletic professionals. The availability of free merchandise

at the Microsoft booth will also give Microsoft representatives the opportunity to start a

conversation with marathon participants about the Microsoft Band or the brand itself.

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Support Media Tactics

11. Microsoft Band booths at marathons

Summary - Booths that have free promotional merchandise, such as water

bottles, sweat towels, drawstring backpacks, and rubber bracelets. Booths will also

have Microsoft representatives that offer participants information about the event as well

as the Microsoft Band.

Justification for increasing target market preference for the Band - By

providing potential consumers with an immersive experience, this event could help

establish Microsoft’s brand credibility.

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Measurement and Evaluation

Digital/Social Media Tactics

1. Instagram promotion

Concept testing: We propose doing a concept test for the Instagram promotion,

which will allow us to make sure the content promotions are consistent and that there is

an audience for the promotion.

Concurrent testing: We propose doing further testing midway through the

promotion to evaluate how it has affected brand awareness, purchase intent and

product trials.

2. Youtube promotion

Copy testing: We propose doing a trial with a few of the content creators to

review the kind of videos they will make and see if our target audience sample responds

favorably to them.

Concurrent testing: We propose doing further testing midway through the

promotion period in order to see what kind of results we’re getting and how we should

proceed moving forward.

3. Twitter promotion

Copy testing: We propose doing a trial of creative content to post on Twitter and

gauge initial feedback from the audience.

Concurrent testing: We propose doing further testing midway through the

promotion to assess how it has affected brand awareness, purchase intent and product

trials.

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Advertising Tactics

4. Big Three TV commercial

Concept testing: We propose doing a concept test for the commercial, where

we evaluate if the commercial is in-line with our brand and the message comes across

to our target audience.

Concurrent testing: We propose doing a test midway through the commercial’s

promotional run to check on how it has affected brand awareness, purchase intent and

product trial.

5. NBC & Olympic affiliate commercials

Concept testing: We propose doing a concept test for the commercial, where

we evaluate if the commercial is in-line with our brand and the message comes across

to our target audience.

Post-testing: We propose doing a post-test that involves garnering initial public

reaction to the commercial along with testing how brand awareness and purchase intent

were affected.

6. Fitness magazine print advertisement:

Copy testing: We propose doing pre-testing of target market preference for the

Band over other competitors and product interest.

Post-testing: We propose doing a post-testing to measure target market

preference and product interest to see if the product and brand are correctly positioned

in the public’s mind as the fitness wearable that acts as a personal assistant.

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Sales Promotion Tactics

7. Microsoft Store demonstration

Concurrent testing: We propose measurement for store demonstration

effectiveness be done by counting all of the sales of the Band within the allotted time

after demonstration. In other words, all sales that have the special “store demonstration

discount” will be counted and evaluated of effectiveness by comparing sales in this time

versus sales at the same location on days the “store demonstration discount” does not

apply. Testing will be taking concurrently.

8. Twitter sales promotion

Post-testing: We propose post testing by looking through the hashtag that

people are asked to tag in their posts about the Band. Therefore, Microsoft can see

exactly what the public is saying about their product and generate substantial feedback

on success or areas that need improvement.

9. Instagram sales promotion

Concurrent testing: We propose testing the Instagram sales promotions for

building brand consciousness by sending a survey to all customers of the Microsoft

Band who give their email at point of purchase.

10. Free Microsoft Band promotional merchandise at marathon booths

Concurrent testing: We propose keeping inventory of all the promotional gifts

offered at each Microsoft booth through an online spreadsheet. Microsoft

representatives will take inventory throughout the event while documenting the

demographics of the individuals using the merchandise.

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Support Media Tactics

11. Microsoft Band booths at marathons

Post-testing: We propose conducting an online survey to marathon participants

after the event in order to grasp individuals’ attitudes toward the brand, recall of the

brand, and brand consciousness based on the interactions between Microsoft

representatives and marathon participants.

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Microsoft Band Creative Brief

1. Product/Service: Microsoft Band

2. Objective: To grow the Microsoft Band’s market share in the wearable technology

market.

3. Target Market: Young athletic professionals who want an exercise assistant that

organizes and tracks their lifestyles.

4. Strategy: By engaging with the social networks (Instagram and Youtube) that the

target market is on, the Microsoft Band positions itself with a certain lifestyle. This

engagement will increase awareness and trial of the product which will increase

market share.

5. Proposition: The Microsoft Band is the go-to fitness wearable for those who live a

disciplined lifestyle and are passionate about knowing their body metrics.

6. Support:

a. Our target market is concerned with getting a device that integrates

with their lifestyle - the Microsoft Band’s high functionality, many

partnerships, and cross-platform compatibility makes it a good fit for

any health-conscious lifestyle.

b. Vivametrica and Sensorup’s partnership will make the data

collected from smart wearables more accurate - increasing the

functionality of the Microsoft Health platform through better body

metrics.

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c. Targeting social media and television that our target market is

watching - will position the Microsoft Band with the lifestyle that our

target market leads.

7. Competition: Other fitness wearables made by Nike, Fitbit, and Jawbone.

8. Mandatory: Microsoft Logo, Image of the Microsoft Band, Olympic Logo,

#663399 the purple of the original Microsoft Band

9. Tone of Voice: Functional, disciplined, and fulfilling

10. Desired Consumer Response: “That seems like the kind of device that will

complement my active lifestyle by tracking my body metrics while also

functioning as a personal assistant.” - The desired consumer response is for the

target market to “think” that the Microsoft Band fits well into their lifestyle, the “do”

of the desired consumer response being to purchase a Microsoft Band.

11. Media Requirement: Digital Advertisements, Print Media

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