I’m starting up a new blog (Zune’dOut) based upon one of my branding/product ideas, but it most definitely won’t be a branding blog. I will continue to post on mgmtnow, and hope this will get me posting more often on both.
Focus
I’m super passionate about music in general, and specifically the Zune product Microsoft offers. Unfortunately I think Microsoft has really missed the boat on their marketing strategy for this product, and this is why they’re hovering at 3% market-share.
The Zune’s key differentiator is that it allows you to download unlimited music (so long as it’s on the pass) and keep it until you cancel, in addition you also get 10 songs a month rolled into the deal all for $15 a month. Think of this product as Netflix where they let you keep 1 movie a month.
The Problem
People were used to renting movies; no one is used to renting music. Netflix spent millions and millions on marketing to create an effective brand and get people used to the idea of subscription based renting and mail delivery.
Unfortunately, Microsoft has focused their marketing resources on trying to create a Zune is sexy image, when Apple the purveyors of everything sleek and revolutionary in design are the market leaders. I don’t have the figures but given the subject matter of the tv ads I have seen I can’t imagine the subscription marketing efforts amount to anything more than 25% of advertising budget.
My Solution
One of the biggest challenges in a subscription system is keeping customers engaged. Netflix spent millions to create a profiling recommendation system, including a contest that led to a $1 million payout to a programmer to improve the algorithm.
I think Microsoft should be crowd sourcing their “algorithm”, now I’m not saying they have to get a bunch of programmers to improve the marketplace (not that it wouldn’t help). No I’m talking about encouragement, ecosystem building, and creating more features around music sharing “djing” outside of their current social efforts.
Since I see this as a great way to drive their subscriptions, I decided it would be a good project to undertake and see if I could get any traction behind.
Possible Revenue Streams
The standard AdSense model of revenue generation is obviously one way to go. Another interesting revenue stream may be Zune’s affiliate system, whereby they pay you a set fee for every Zune
If you had asked who was the big winner the day after the Super Bowl I’d have said the Saints, but now we can see the real winners were Snickers and Betty White.
Hungry for a Good Commercial Grab a Snickers
embedded by Embedded Video
YouTube Direkt
Somehow Snickers managed to call out a young man in a commercial for performing like he was an old woman and get everyone to laugh at it. On the face this could be the type of comment that could lead to a backlash against the product itself with certain demographics (specifically women) finding the joke offensive. The inclusion of Betty White set the right tone, and turned this commercial into one that will be remembered for quite some time.
For some context:
Facebook has Spoken
Drew Brees the face of the Saints who defied all odds since coming to New Orleans, and managed to lead his team to victory in the Super Bowl. Yet, Mr. Brees has lost to another improbable face on Facebook.
It’s incredible that Betty White’s write-in campaign has almost 200,000 more fans than Drew Brees, on a site that isn’t even really endorsed or affiliated with the celebrity.
YouTube has Spoken
The most watched video associated with Drew Brees has managed to reach over 909,000 views. The Snickers commercial from the Super Bowl managed close to 1.2 million views.
What’s it All Mean?
There seem to be a lot of engaged potential customers out there for Snickers. The use of a celeb who would likely fall onto the B-list any other week, seems to have been the right choice. The ad campaign seems to have elevated their brand and likely at a pretty manageable cost.
The cost of a Super Bowl commercial is between $2-3 million which gets you in front of 153 million sets of eyes. This large of an audience can’t be ignored, but the impression on the audience is pretty fleeting when you consider they’ve only been served the commercial once alongside dozens of others.
To have the campaign take on legs like it has under the Betty White petition is a wonderful side benefit, that couldn’t have been expected but now can’t be ignored. The question now to marketers everywhere is how can this sort of buzz be replicated without alienating the community it’s feeding off of?
*Disclosure* I worked at Microsoft, but have zero insider knowledge on the features announced today for Windows Phone 7. I don’t know how they work, I’ve never seen them demoed or in any PPT. If you’re looking for a leak, look elsewhere. My commentary on any features is purely speculative and done as a consumer of said product, and where I see each product going. The only insight from my time at Microsoft is tied back to the challenges of working cross orgs.
My thoughts on Microsoft Culture and WP7
From my time at Microsoft I saw huge challenges in taking on projects that crossed over multiple stakeholder groups. This was actually an area in which I really excelled in, but always questioned how well the company did on this.
Well today I woke up to a surprise, a very pleasant surprise….. Windows Mobile Phone 7. I worked in an org. pretty close to MCB (Mobile Communications Business), we had a lot of the same ideas of leveraging Microsoft properties for a winning experience for our customers. Unfortunately, there were a ton of agency issues, getting people on the same page was always a challenge, and integrating conflicting business models was messy at best.
Whether or not Windows Phone 7 hits the ground later this year as an “amazing product”, or even a “commercially viable product”, it is a huge win for Microsoft. It’s the first product I’ve seen break down all the walls that Microsoft has built with their businesses and deliver the extent of the value of integrated services to the consumer, and that’s huge.
Some of the features I saw and what they mean:
Xbox –
Currently:Doesn’t have a mobile market at this juncture, didn’t even have solid Zune integration.
What we’re likely getting:A fully integrated experience with Xbox, Zune, PC, and Phone. Plus online gaming, and services on a mobile device, which is something no one else has…. not Apple…. not Sony …. nor Nintendo.
Zune-
Currently:A model focused around the player, when it’s the service that really makes it standout vs. Apple. An anemic mobile purchasing system hampered by lack of connectivity outside of WiFi.
What we’re likely getting: The best music subscription service available to the phone. Better integration with contacts, and social networking for this product.
Bing-
Currently: Actually probably the best current service of any I’ll list from the WP7 features. Lots of cool features but its very under-utilized.
What we’re likely getting: The best chance for Microsoft to make headway into search. Google owns the desktop and will continue to own that. The mobile search market will eclipse that market though and drive higher revenues as location based search offers way more value to customers and businesses.
Office & Exchange services –
Currently: Not well designed for the phone (except for Exchange). Looks like a child’s finger painting next to the sexy (I can’t believe I just called Office sexy, I may need a girlfriend) Office ribbon interface.
What we’re likely getting:WP7 took the best UI available (from Zune) hopefully they take the best UI in productivity from Office as well. It will also be interesting to see the integration with the online services like SharePoint, and Project.
Why This is Great for Consumers
I’m not an Apple supporter but a fully integrated all up approach of software, services, and hardware is the best way to deliver a consistent pleasant experience to your customers. When you look at Microsoft as a whole they have all the pieces to deliver the experiences that Apple does, but sometimes the organizational structure gets in the way.
Seeing a product cross over these boundaries taking the best of what each group offers is huge, and quite honestly wasn’t what I was expecting. So for today there’s nothing but optimism for the Windows Phone, maybe the rebranding was necessary because this doesn’t look like your same tired Windows Mobile 6x device.
If you want more information on the Windows Phone check Gizmodo, an awesome publication for tech-gossip and research.
So posts have been few and far between since I became unemployed. Part of this is lack of inspiration; part of it is the necessity to pour resources into my next opportunity. There is a necessity in this blogging experience for me though; to share knowledge and enjoy what I’m passionate about business.
Did some thinking and tried to figure out how best to proceed doing what I love, and working it in with what I need to do. I came up with the idea that distracts a bit from the dullness of job-hunting, and it will be the focus of some new content that I’m going to be posting.
The idea: Layout business plans for markets I think would be interesting if I had seed money to do them. It’s fun, light hearted, and who knows could scare up some investors. So I hope you enjoy. Consider these posts a back of the napkin type of planning session, it wasn’t exhaustive, nor is it likely to be grammatically correct.
1st Business Plan
The Market:
High unemployment rates, companies needing to stand out in the masses, and long term job searches for those hit hardest by economic downturn.
The Problem:
Employers – In the 90’s you’d have to throw a Jag at someone to land the best talent, now all you have to do is look through 10,000 resumes good luck with that.
Job seekers – It used to be you apply to a few opportunities and you’d have an interview. Now you’re having a hard time just getting through the pile of resumes and algorithms to even attract a hiring manager’s eye. Additionally, staring at never ending black and white way too long dissertations on the ideal job candidate avoiding the monotony and not dozing off has become the real challenge.
Proposed product solution:
Create a more exciting interaction point for candidate and employer. Focusing on humor, engaging open communication in a manageable amount of information sharing between prospect and prospector. Catch the buzz, become the type of company young people find cutting edge and willing to jump into. Similar to a Personal Ad providing key job requirements in a way that engages and is quick and to the point.
Primary Target Audiences:
Small businesses – typically harder to stand out in the crowd not able to attract the attention in the same way as market leaders and established players.
Young unemployed people – Huge market of the unemployed, like to do things a little different, often mistrusting of corporations.
Revenue streams:
Click based advertising – relevant ads, adsense etc.
Companies paying to post jobs – small businesses pay for serving jobs on the site.
Writing posts for companies – Helping companies adjust posts to fit with the audience they’re targeting “consulting”
Strengths: Completely unique way of looking at the hiring process, targeting segments that are not well served by competitors, cost, better job seeker experience.
Weaknesses: Going against the grain and traditional thinking. Have to be serious while still being hip and fun. Starting from zero. Many competitors who have better funding. No established relationship with companies who need service.
Opportunity: Small and innovative approach. Low start-up cost. Looking at a niche that is untapped currently. Is the type of product that plays well on Web 2.0 type of audience could make marketing and customer loyalty easier.
Threat: Key players like LinkedIn are quick to add to their service when an upstart comes along. Funding. Not being taken seriously. Backlash from core audience (they can be fickle).
Posts have been few and far between since mid November I know. I’ve been busy getting ready for the holidays, looking for new positions, and most importantly just taking some time for me. During one of these excursions I came across the following sign:
My first immediate thought was how hilarious is it to have a venue advertising Manheim Steamroller and Slayer/Megadeath on the same billboard. My second is why I am going to WAMU theatre when they went the way of the dinosaurs.
We’ve seen lately the huge risk that businesses take when there is any kind of endorsement or sponsorship. I’m curious then why there isn’t an appropriate level of consideration and negotiation in determining mutual escape clauses from these sponsorships.
In thinking on this and Tiger Woods recent experiences I would think that it would be both sides who would wish to end these endorsements. When the media juggernaut is getting a hold of a story there’s nothing worse than opening a fresh wound back up by running a campaign utilizing the person who is in question.