Ekaterina Geta Natalya Malyk marketing strategy in Russia

Ekaterina Geta Natalya Malyk marketing strategy in Russia Aleksey Fedorov Stanislav Latyshevskiy

Contents 1. Problems and Opportunities - Piracy - Student Select - Price - Awareness 2. Promotion campaign 3. Conclusion 2

Problems and opportunities Piracy: - The freebie- loving culture - High software prices - Easy access to pirated software - Unaware purchasing of pirated software 3

Piracy: changing lanscape 2009 The Ugly: • Internet fraud has increased by 30% • PC piracy rose to 43% in 2010 • Russia – PC shipmentns dropped 23% Opportunities + Challenges 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% 4

Piracy: solutions 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-credit 3. Availability of pirated software - Extensive work of Microsoft team - Partnership with authorities 4. Unaware use - Microsoft Store - Retail network 5

Market research • How to assess the students` awareness and attitudes? 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, 6

Market research 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) 7

Main problems 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 8

Solutions Little awareness of Microsoft student offers Directions: 1. Corporate partners 2. Retail: Microsoft Store 3. Student campaign: survival package, goodies, coffee, branding Messages: 1. 69 campaign 2. Best assistant in the fight with exams 3. My grown-up life would not be full without Office 2010 9

Solutions Students are unwilling to spend 69$ • Ready to pay 1000 RUR for Home and Student edition • Ready to buy separate Office applications 300 -500 RUR 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 300 RUR than 9 for 0 RUR - Lower overall price to 966 RUR (69 x 14) 10

Solutions Resistance to upgrading to Office 2010 • Unwillingness to change existing patterns • Early on the learning curve for Office 2007 • Do not see significant changes Educate consumers Web-site more user-friendly Promotion on social networks Game 11

Campaign 69 Social marketing • • 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, imaging 4. News updates from Microsoft, Xbox Live achievements 12