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cNB SW Mrd : Apple compete. Scott Menscher Software Product Marketing 11/5/10. Topics. Summary Opportunity Solution Overview Solution “Is/Is Not” Customer Experience Solution Overview Apple Compete SKU Schedule and Milestones GTM Plans Stakeholder Alignment. Summary. What is it?
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cNB SW Mrd:Apple compete Scott Menscher Software Product Marketing 11/5/10
Topics • Summary • Opportunity • Solution Overview • Solution “Is/Is Not” • Customer Experience • Solution Overview • Apple Compete SKU • Schedule and Milestones • GTM Plans • Stakeholder Alignment
Summary • What is it? • The purpose of the Apple Compete project, in collaboration with MSFT, is to create products that can compete favorably head-to-head with Apple’s 13” MacBook and 13” MacBook Pro, respectively, and prevent would-be Apple switchers from leaving the PC camp. • Meet or surpass the Apple UX while providing a much better value • Includes the end-to-end experience, from product to GTM to POS • Platforms: Pavilion dv4 (Zidane 2.0) and ENVY14 (Juliet 1.0) • Launch date: 2c11 • Focus on US, Canada, Australia, UK, France, and Germany • Who’s it for? • The Apple Compete SKUs are targeted at students purchasing a notebook for college in the 2c11 timeframe • SKUs will thus be called “Student Edition”
Summary • How do we define success? • Gain assortment of Apple Compete SKU(s) in retail • Reduce Apple’s market share for the 2c11 timeframe by TBD amount • Retailer anecdotal info of customers purchasing SKUs over MacBooks • Market and create buzz/awareness of Apple Compete SKU(s) • Sell TBD volume of Apple Compete SKUs
Summary • Why is it important? • Apple is winning in the premium PC space ($800+) • HP has lost share in the premium PC YoY while Apple makes gains
Summary • Why is it important? • Apple showing dramatic gains with students
Summary • Why is it important? • Apple risk is high across markets • About 7.7M premium PC units ($800+) are at risk in FY11
Summary • Why is it important? • Apple gaining market share WW
Opportunity • HP’s opportunity • Stop Apple Considerers from switching to Macs • Improve the Windows experience with the help of MSFT • Improvements can then be leveraged by all HP notebooks • Help uplift HP ASPs • Build brand value • Fix GTM efforts (currently “broken”) • Create buzz for HP products (with backing from MSFT)
CUSTOMER EXPERIENCE • Key Apple Compete Experiences • Simplified image (leverage MS Signature image) • Remove BtB “crapware” • Tweaking Windows • Windows Live • WiDi • HD conferencing • OOBE/Setup optimization • OOBE time goal: 5 minutes • Velocity optimization • Boot time goal: 30 seconds • Office 2010 – full version (Professional) • Student discount – requires the customer to authenticate student status • Hardware bundles that students value (XBOX, Zune, printer, backpack, etc.)
CUSTOMER EXPERIENCE • Changing Windows UX: Engineering “asks” • OOBE • Remove/simplify EULA prompt • Create usertile picture with webcam • Offer wet migration options during OOBE • Post OOBE • Reduce MS Security Essentials first-run delay • Remove MSE EULA prompt • Remove MSE UAC prompt • Remove MSE first-run scan on pre-installs • Delay Windows updates to avoid first-run reboot • Remove rarely used applications • Remove duplicate entries • Allow extensive pinning • Simplify autoplay experience for external storage devices • Allow OEM applets to override Windows applets
SOLUTION OVERVIEW: DV4 (ZIDANE 2) • Notes: • $799 price • Assuming all BtB SW taken off • 11.6% GM
SOLUTION OVERVIEW: ENVY14 (JULIET) Notes: $1,199 price Assuming all BtB SW taken off 9.8% GM
Apple compete sku: DV4 Green text = HP advantage Red text = Apple advantage
Apple compete sku: ENVY14 Green text = HP advantage Red text = Apple advantage
Solution: “is/is not” Is Is Not “Lipstick on a pig” Simplified image… yet the “crapware” still remains Aimed at Apple loyalists Microsoft Pavilion/ENVY • Matches the MacBook in UX • Simplified image; one way to do things • Aimed at potential Apple switchers • HP Pavilion/ENVY
Schedule and Milestones • Lockdown HW: Mid November • 2c11 Cycle POR: 10/29/10 • RC bits: 12/24/10 • GM bits: 2/18/11 • Marcom due: 1/14/11 • PLD: 3/4/11 • FCS: 5/6/11
GTM Plans • Platform rollout • 2c11 HP Pavilion/ENVY platforms • Pavilion: Zidane 2.0 • ENVY: Juliet 1.0 • Localizations • US BTO • Canada • Australia • UK • France • Germany
Stakeholder Alignment * Sign off – means these stakeholders have reviewed the MRD and provided input. Sign off is not related to portfolio priority or budget approval. Reconciling those issues are the responsibility of the project leads in collaboration with their management chain and the project sponsors.
StudentResearch(Incomplete) HP CONFIDENTIAL
HP laptops have plenty of room for improvement. The company should concentrate on improving its reported weaknesses, which include battery life, weight, and durability. HP’s customer satisfaction in the student market is below the average for PC brands. Improving reliability will have the biggest positive impact on students’ overall satisfaction. Research Findings • Rice MBA Study (5/12/10) • Webcam is essential; limited interest in HD or low-light webcam • Screen display is a top driver for overall satisfaction and has a significant impact on repeat purchase behavior. • Students continue to desire longer battery lives and lower weights in their laptops. • HDMI ports should be included in new laptop models for students. • Most students say they will not pay extra for 3D or a fingerprint reader. • Students are more concerned with reliability than cutting edge features. Just 28% of the students surveyed focus on the latest feature offerings. The majority of students would prefer a high performing laptop with proven reliability. • HP should concentrate on improving its reported weaknesses, which include battery life, weight, and durability. HP’s customer satisfaction in the student market is below the average for PC brands. Improving reliability will have the biggest positive impact. • All five Mac users has strong positive feelings toward the brand and extolled the virus immunity, user friendly OS, and long battery lives. • Some students complained of heat and one used a laptop sleeve as a heat shield. • HP owners were less satisfied than other PC owners with pre-installed software (13% less) and reliability (10% less). However, HP owners were 11% more satisfied than other PC owners on design-look and feel. HP CONFIDENTIAL
HP laptops have plenty of room for improvement. The company should concentrate on improving its reported weaknesses, which include battery life, weight, and durability. HP’s customer satisfaction in the student market is below the average for PC brands. Improving reliability will have the biggest positive impact on students’ overall satisfaction. Research Findings Rice MBA Study (5/12/10)
HP laptops have plenty of room for improvement. The company should concentrate on improving its reported weaknesses, which include battery life, weight, and durability. HP’s customer satisfaction in the student market is below the average for PC brands. Improving reliability will have the biggest positive impact on students’ overall satisfaction. Research Findings Rice MBA Study (5/12/10) HP CONFIDENTIAL
HP laptops have plenty of room for improvement. The company should concentrate on improving its reported weaknesses, which include battery life, weight, and durability. HP’s customer satisfaction in the student market is below the average for PC brands. Improving reliability will have the biggest positive impact on students’ overall satisfaction. Research Findings US Forrester Study: 18-24 demographic results (11/5/10) HP CONFIDENTIAL
HP laptops have plenty of room for improvement. The company should concentrate on improving its reported weaknesses, which include battery life, weight, and durability. HP’s customer satisfaction in the student market is below the average for PC brands. Improving reliability will have the biggest positive impact on students’ overall satisfaction. Research Findings US Forrester Study: 18-24 demographic results (11/5/10) HP CONFIDENTIAL
HP laptops have plenty of room for improvement. The company should concentrate on improving its reported weaknesses, which include battery life, weight, and durability. HP’s customer satisfaction in the student market is below the average for PC brands. Improving reliability will have the biggest positive impact on students’ overall satisfaction. Research Findings US Forrester Study: 18-24 demographic results (11/5/10) HP CONFIDENTIAL
HP laptops have plenty of room for improvement. The company should concentrate on improving its reported weaknesses, which include battery life, weight, and durability. HP’s customer satisfaction in the student market is below the average for PC brands. Improving reliability will have the biggest positive impact on students’ overall satisfaction. Research Findings Microsoft Optimum PC Research: Creating the Ideal Student PC
HP laptops have plenty of room for improvement. The company should concentrate on improving its reported weaknesses, which include battery life, weight, and durability. HP’s customer satisfaction in the student market is below the average for PC brands. Improving reliability will have the biggest positive impact on students’ overall satisfaction. Research Findings Microsoft Optimum PC Research: Creating the Ideal Student PC
HP laptops have plenty of room for improvement. The company should concentrate on improving its reported weaknesses, which include battery life, weight, and durability. HP’s customer satisfaction in the student market is below the average for PC brands. Improving reliability will have the biggest positive impact on students’ overall satisfaction. Research Findings Microsoft Optimum PC Research: Creating the Ideal Student PC