Natalya Malyk

1. Ekaterina Geta Natalya Malyk marketing strategy in Russia Aleksey Fedorov StanislavLatyshevskiy

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

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

4. Piracy: changing lanscape 2009 The Ugly: • Internet fraud has increased by30% • 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% Opportunities + Challenges

5. Piracy: solutions • The freebie- loving culture • Terrifying campaign • Tegline“Is it worth risking being the hero of this story?” • Channels: press ,TV (ProgrammeMaksimum, BitvaEkstrasensov) 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

6. 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,

7. 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)

8. 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

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

10. 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: • 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 300RUR than 9 for 0RUR • Lower overall price to 966 RUR (69x14)

11. 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

12. 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 “69 Try it legally”, “69 Turns me on and inspires me”, “Who is 69 today?” – flash mob lavine Question-status: Where/When/With whom are you working on Office today? – “At home, on the table. 69”, “With my secretary. 69”. Photos, viral videos, imaging News updates from Microsoft, Xbox Live achievements