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

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

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

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 4

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 Piracy: solutions 5

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

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 7

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 8

Little awareness of Microsoft student offers Solutions 9 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

Students are unwilling to spend 69$ Solutions 10 Directions: 1.Save as it is -Microcredit (Banks, Online, SMS, Web-money, etc) – Office starting at 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 RUR

Resistance to upgrading to Office 2010 Solutions 11 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

Social marketing Campaign 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