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 2nd 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 2nd
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?
