Natalya Malyk

Aleksey Fedorov

Stanislav Latyshevskiy

Ekaterina Geta

marketing strategyin Russia

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1. Problems and Opportunities- Piracy- Student Select- Price- Awareness2. Promotion campaign3. Conclusion

Contents

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Piracy:- The freebie- loving culture- High software prices- Easy access to pirated software- Unaware purchasing of pirated software

Problems and opportunities

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2009 The Ugly:• Internet fraud has increased by 30%• PC piracy rose to 43% in 2010• Russia – PC shipmentns dropped 23%

The Good:• Microsoft Mystery Shopper: piracy dropped to 27%• 4% more legal software deployed by consumers• Unlicensed PC software use fall in 49% of the economies, rose in 17%• 59 of 111 countries witnessed decrease in piracy in 2009• PC shipments to consumers rose 17%

Piracy: changing lanscape

Opportunities + Challenges

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1. The freebie- loving culture- Terrifying campaign- Tegline“Is it worth risking being the hero of this story?”- Channels: press ,TV (Programme Maksimum, Bitva Ekstrasensov)2. High software prices- Lowering prices- Easy micro-credit3. Availability of pirated software- Extensive work of Microsoft team- Partnership with authorities4. Unaware use- Microsoft Store- Retail network

Piracy: solutions

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• How to assess the students` awareness and attitudes?

Market research

Survey: 300 students in 5 countries (Russia, Austria, Azerbaijan, France, Norway, Sweden, Finland)

Aged 15-28, active Internet users, Office users

Russia: Vladivostok, Samara, St. Petersburg, Moscow,

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Results:- 50/50 Pirated/legal – Germans use the most pirated

Office (54%)- 5% use Office 2003 or earlier versions- Pre-installed 50%- 10% used student discounts- Students unwilling to pay 129 Euro/3100 RUR for

Home and Student edition- Russians find 69$ tag expensive (Moscow, St.

Petersburg – exceptions)

Market research

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1.Little awareness of Microsoft student offers (Student Select, Microsoft Office Professional Academic Programme)2. Students are unwilling to spend 69$3. Resistance to upgrading to Office 2010

Main problems

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Little awareness of Microsoft student offers

Solutions

Directions:1. Corporate partners2. Retail: Microsoft Store3. Student campaign: survival package, goodies, coffee, branding

Messages:1. 69 campaign2. Best assistant in the fight with exams3. My grown-up life would not be full without Office 2010

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Students are unwilling to spend 69$

Solutions

Directions:1. Save as it is- Microcredit (Banks, Online, SMS, Web-money, etc) – Office starting at 0.69- Active promotion (Campaign 69)

2. Lower the price- Sell separate applications – better to sell one for 300RUR than 9 for 0RUR- Lower overall price to 966 RUR (69x14)

• Ready to pay 1000 RUR for Home and Student edition• Ready to buy separate Office applications 300-500 RUR

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Resistance to upgrading to Office 2010

Solutions

• Unwillingness to change existing patterns• Early on the learning curve for Office 2007• Do not see significant changes

Educate consumersWeb-site more user-friendlyPromotion on social networks

Game

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Social marketing

Campaign 69

• Provocative, quirky, intellectual campaign• Goal: communicate the low price, form a purchase intent• Audience: social networks, active users – broad focus• Specifics: TARGETING, USE OF PROVOCATIVE LOGOS, USE OF OPINION LEADERS

1. “69 Try it legally”, “69 Turns me on and inspires me”, “Who is 69 today?” – flash mob lavine

2. Question-status: Where/When/With whom are you working on Office today? – “At home, on the table. 69”, “With my secretary. 69”.

3. Photos, viral videos, imaging4. News updates from Microsoft, Xbox Live

achievements