Microsoft's Strategy for Small Businesses (B): Marketing MS Office Live
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Case Details:
Case Code : MKTG168
Case Length : 18 Pages
Period : 2005-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : Microsoft Corporation
Industry : Computers and Information Technology
Countries : Europe, USA
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"Small businesses are the most technologically underserved
segment of the market, and we believe that Microsoft software has a lot to offer
to them. Companies with 10 or less employees typically lack in-house technical
resources or a dedicated IT budget. Office Live can bring them all the
productivity and efficiency benefits of our software that larger organizations
tend to have."1
- Rajesh Jha, Corporate Vice President for Microsoft Office
Live, in 2006.
"We are absolutely making a strategic push to small
business. We are looking for new and innovative ways to reach the target
audiences."2
- Michael Schultz, US Business and Marketing lead for
Microsoft Office Live, in 2006.
"Especially delivering it [online services and
applications] to the customer at essentially no cost is significant.
Microsoft and Google and other companies will continue to deliver
these kinds of functions. They all do have longer-term aspirations."3
- Michael Gartenberg, Jupiter Research4
Analyst, in 2006.
Getting Behind Small Businesses
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In December 2006, Microsoft Corporation (Microsoft), the world's largest
software company, launched an online ad campaign to support the launch of its
Internet-based services package, Microsoft Office Live (Office Live). Office
Live which had been in the beta5 test
phase since February 15, 2006, was finally launched in the market on November
15, 2006. With the launch of Office Live, Microsoft targeted small businesses
that hardly used any software in their business operations. With Office Live,
small businesses could establish a presence on the Internet and also market
their business online. Microsoft was providing the entry-level software, Office
Live Basics for free, while two other versions were available on a subscription
basis.
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The promotional ad for Office Live was created with Rovion Inc.'s6
InPerson technology, which had, of late, attracted many online publishers
and advertisers. This technology enabled the client to show video images of
people who looked as if they were directly interacting with the website's
visitor.
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The image was without any borders (as was typical of
other video ads) and seemed to seamlessly integrate with the contents of
the Web page. The ad was aired on websites frequented by the target
audience.
Michael Schultz (Schultz), US Business and Marketing Lead for Office
Live, said, "We're always searching for new ways to explain how easy and
affordable Microsoft Office Live is for small businesses. By using Rovion
technology, we'll be able to target customers in a more engaging way
about how they can use Office Live to attract new customers and generate
repeat business by establishing a professional Web presence."7 |
Microsoft's Strategy for Small Businesses (B): Marketing MS Office Live
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