To Dr. Morton:

Attached you will find a copy of our secondary research findings and opportunities recommendations for Band. These findings and recommendations will increase the target audience’s awareness and market share in the wearable technology market.

Should you have any questions or concerns, please contact us [email protected].

We will gladly follow up with you in two weeks to ensure that our recommendations were well received.

Sincerely, squAD

Alicia Zurita

Jessica Mandel

Kristen Peebles

Kim Sapp

Sean Palmieri

Avinash Bhikha

Brianna Cryar

Table of Contents

Executive Summary………………………………………………………….....1 Problem Statement……………………………………………………………...3 Industry Analysis………………………………………………………………..3 Company Analysis………………………………………………………………4 Product/Brand Analysis………………………………………………………..7 Competitor Analysis……………………………………………………………8 Consumer Analysis……………………………………………………………10 Macro-Environmental Analysis……………………………………………...11 Market Analysis………………………………………………………………...13 Problems and Opportunities Analysis……………………………………..14 Opportunities Recommendation…………………………………………….16 Marketing Objectives…………………………………………………………..16 Recommended Marketing Strategy…………………………………………17 Target Market Profile…………………………………………………………..19 Profile……………………………………………………………………..20 Branding Positioning Statement……………………………………………..21 Communication Objectives…………………………………………………...22 Communication Strategy……………………………………………………...23 Media Strategy…………………………………………………………………..23 IMC Tactics……………………………………………………………………….24 Measurement and Evaluation Plan…………………………………………..30 Creative Brief…………………………………………………………………….31 Bibliography……………………………………………………………………..33

Executive Summary

Our client, The Microsoft Band, is seeking to increase their market share in the wearable fitness technology market. We, the squAD agency, created a strategy campaign and a creative brief that will allow for Microsoft to increase product awareness.

Our team started by reviewing secondary research, in an effort to gain insight about the wearable fitness technology market. We began by gathering information about: the industry as a whole, current trends, environmental factors, product analysis and competitors within the market. The information gathered during secondary research allowed for our team to determine the problems and opportunities the brand is facing and provide recommendations.

We recommend that the Microsoft Band emphasize the features of the

Band that inspire the user to lead a more fitness-oriented lifestyle. This trend is called, “Help Me Help Myself” (Mintel).

Based on our research, we decided the best target market for the Band would be a female business professionals between the ages of 30 and 40. We created a fictional character who embodies the characteristics and values of the target market. Our first-person account was Angela, a business professional and mother, who leads a health conscious lifestyle. After establishing the factors that motivate the target market, we created two positioning statements. These statements allowed us to create a proposition statement featuring the desired attributes for fitness wearables. Utilizing prior research and analysis of the target

1 market, we established our communication objectives and the strategy we would implement to communicate with the intended audience. Next, we created a media strategy with integrated marketing communication tactics, which would help us create a successful campaign. To ensure success, we established tools to measure and evaluate the effectiveness of the campaign.

Our last step was writing a creative brief. The brief outlines the most important information from our campaign to help the creative team understand how to best impact and reach the audience when developing advertisements.

2 Problem Statement

The challenge Microsoft faces is to increase Microsoft Band’s market share in the wearable fitness technology market.

Industry Analysis

Industry

The most relevant and applicable industry for the Microsoft Band is wearable fitness technology. However, according to the Standard Industrial

Classification System, the Microsoft Band is relevant to Electronic Computers,

3571, and Physical Fitness Facilities, 7991 (OSHA).

Of the wearable technology market, fitness and activity trackers make up

31.3 percent of the market, smart watches make up 43.2 percent, heart rate monitors at 20 percent followed by 5.5 percent for smart glasses (Tek Carta).

Trends

Trends that define this industry include the desire for activity-tracking devices in which personal health and exercise data can be collected. In 2012, the most commonly owned fitness device was a pedometer at 31 percent. In addition, in 2013, medical devices capable of transmitting data had the highest consumer interest (Statista). The importance of health and wellness has lead to the creation of apps that offer insight, help track progress and maintain goals while offering accessibility through integration across devices such as , laptops, tablets and wearable technology.

3 Other trends include maintaining connectivity on various social platforms such as social media sites, text messages and emails at all times. The importance of the individual with these new technological advancements focused on solving challenges of particular niche markets has become prominent in this industry too.

Projections

Industry growth projections for the wearable technology market are more than $30.2 billion in 2018 with a compound annual growth rate of 43.4 percent; the consumer market is expected to reach $22.1 billion (BCC Research). As well, the market volume is anticipated to reach 134 million units by 2018. It is also projected that in 2017 56.2 million units of fitness gadgets will be shipped globally

(Statista). Sales in this industry are expected to flourish with one in five U.S. adults discussing their intent to purchase a wearable device within the next 12 months (Ipsos).

Company Analysis

Mission

Microsoft’s mission is to “empower every person and every organization on the planet to achieve more.” Microsoft has ambitions to “reinvent productivity and business processes, build the intelligent cloud platform, create more personal computing” (Microsoft).

4 Brief History

Microsoft was founded in 1975 by and in

Albuquerque, New Mexico with the purpose of implementing their program language BASIC for Micro Instrumentation and Telemetry’s (MITS) microcomputers. A few years later, 1980, Microsoft partnered with IBM to write the for its computers. However, in 1985, Microsoft launched

Windows, their very own operating system. By the mid 1990s, 90 percent of the personal computer market share had been captured by Microsoft (Britannica).

Today, Microsoft is the world’s largest software maker that offers various software products and services in relations to computing. With the release of the

Microsoft Band, Microsoft is also incorporating an emphasis on fitness and wellness into their technology.

Principal People

Key people within the company of Microsoft Corporation include Bill

Gates, the Founder and Technology Advisor and the President, Maria Klawe. As well, Terri List-Stoll is the Executive Vice President. The Chief Financial Officer and President is G. Mason Morfit. and Charles Scharf are Chief

Executive Officers; both John Stanton and John Thompson are chairmen

(Microsoft).

5 Product Line

With products in correlation to computing, Microsoft offers Windows operating systems for personal computers, servers, phones, etc. As well, , Outlook e-mail, Skype, Cloud, online services, hardware and multimedia such as the Microsoft Band, and Surface are offered.

Others among their product offerings include servers, developer tools, internet browsers such as Bing and MSN, business solutions, games/ entertainment and virus and security support (Microsoft). Microsoft’s total assets are $176.22 billion

(Hoovers).

Sales

Microsoft has annual sales of $93 billion and an operating profit of $17 billion (Avention). As of the fiscal year of June 2015, Microsoft’s net revenue was

$93.58 billion with a growth of 8 percent and a net income of $12.19 billion

(Microsoft).

Market Share

Since its release in 2014, the Microsoft Band is still trying to penetrate the market. , Jawbone and Nike have 97 percent of the market share of wearable fitness technology. The remaining three percent is deemed other in which Microsoft is accounted for (Mobi Health News). Therefore, at this time,

Microsoft has below three percent of the market share.

6 Product/Brand Analysis

Brand

Microsoft as a brand is one of the most valuable brands (Forbes, 2015).

Microsoft’s strength is its brand ubiquity and cross-generational appeal. They are known for their software. Microsoft’s software can be found on their competitor’s hardware. For example, many Apple computers have Microsoft Office installed.

Because of their strong presence and brand loyalty, Microsoft is able to focus more on what the software and what can the Microsoft Band do for the consumer than the Band itself.

History

The Microsoft band was announced in October of 2014 and was officially released in November of 2014. The Microsoft Band is a form of wearable technology but it associates itself more as fitness band than a “.”

Product Specifications

The Microsoft Band measures 1.4 inches diagonally and weighs 10.6 ounces.

The Microsoft Band has 10 sensors built into it. These sensors measure metrics like skin temperature, calories burned, number of steps and sleep. It also has a

UV sensor that provides the user with information on the weather. For example, if he or she needs to apply sunscreen or stay inside. The galvanic skin response sensor allows the Microsoft Band to adjust to the user’s skin conductivity. The

Microsoft Band comes with two lithium ion batteries that power through 48 hours of “normal” use (Newstex).

7 Software

The Microsoft Band comes installed Windows 10. Features include , the personal digital assistant. Cortana helps the user set reminders; respond to messages and send emails all from the Microsoft Band. The Microsoft Band also comes with several of apps for the user to download. Microsoft has even partnered with brands like Starbucks, Uber, , and My Fitness

Pal to create apps for the Microsoft Band. The Microsoft Band is cross compatible with iPhone, Andriod and the .

Place and Promotion

The Microsoft Band can currently be purchased at the , retail stores like Target and and online retailers like . Most of the

Microsoft Band’s promotions is online. The Microsoft Band’s current retail price is

$249. The earlier version of the Microsoft Band price range is from $99 to $149.

Competitor Analysis

In the wearable fitness band market, FitBit, Jawbone and Nike, account for 97 percent of the sales. FitBit accounted 68 percent of those sales. Microsoft Band and other brands accounted for the remaining three percent.

8 History

James Park and Eric Freeman founded FitBit in 2007. The company is currently privately-held and engaged in the provision of health and fitness products such as activity trackers and wireless-enabled wearable fitness bands. FitBit operates in the and is headquartered in San Francisco, California. Their current CEO is James Park (Marketline). Their mission is to “empower and inspire individuals to live a healthier, more active life.” (FitBit)

Product

FitBit offers a line of different fitness bands that come in three different sizes

(small. medium or large). Their four products are the Flex, the Charge (as well as the Charge HR), the Zip and the One. Each band is made for a different level of activity and performance. The Charge HR fitness band is the closest competitor to the Microsoft Band.

The Charge HR

Based on similarities and the capabilities of each fitness band, the Charge HR is

Microsoft Band’s closest competitor. Instead of tackling FitBit as a whole, it is more efficient to pinpoint strengths and weaknesses, as well as problems and opportunities, when the competition is narrowed down. Microsoft Band entering the market does not necessarily have to compete with every FitBit fitness band.

The Charge HR is fits wrist 6.2"-7.6"w .83” (a large size).

9 Consumer Analysis

Consumers are purchasing the Microsoft Band to either track how they are exercising or as motivational means to get fit (Mintel). The price point of the

Microsoft Band appeals to those with a lower budget or who are more aware of their spending. However, according to Mintel, discretionary spending is starting to increase as the economy stabilizes.

According to Mintel, retailers need to work on reminding consumers to workout (Mintel). This is then emphasized within the Microsoft Band through its inclusion of programs and workouts that are built right into the Band

(Wearable).

The consumer uses the Microsoft Band to track personal information such as heart rate and skin temperature. The built-in GPS allows consumers to run/ exercise without using their cellphone, also. If a consumer has a Windows phone, the Cortana feature, an interactive feature included on all Windows phones, can be used which includes texts, stocks, email, weather, and alerts

(Wearable).

Reviews from both critics and users show that the largest downfall in the

Microsoft band is the “Design and Form Factor”, according to engadget. A direct quote from a critic review is as follows, “It’s bulky, uncomfortable, and has disappointing battery life.” This reviewer compared the Microsoft Band to a prototype rather than a consumer device (Engadget). On the other hand, the reviews totaled for a high approval of the “Ease of Use” category (Engadget).

10 In comparison to the brand loyalty of other large competitors like Samsung and Apple, Microsoft Band’s loyalty is not as strong.

The consumer is looking at life as having obstacles to working out and looking towards the fitness wearables, such as the Microsoft Band, as ways to move past these obstacles (Mintel).

The Microsoft Band’s initial release was in the United States, since then the brand and it’s consumers have spread across the globe.

Macro-environmental Analysis

In order to stay relevant in the marketplace, Microsoft understands that while they can not control macro environmental trends, they need to be aware of them. This includes social, legal, economic, political, and technological trends.

Social

As the Huffington Post points out, there is a new social trend sweeping the nation: fitness. It’s more than just being physically fit, the new trend is to appear to be fit head to toe. This can be seen from the increasing lines of fashionable fitness clothing such as Fabletics, and Lululemon (Mintel). Another way to appear and be fit is through wearable technology such as the Microsoft Band that keep track of one’s fitness levels. Some prominent wearable technology includes the FitBit, JawBone, and FuelBand. To add to this, many of these wearables are getting makeovers to be sleeker, and as the consumer hopes, more information to keep them interested (Huffington). According to Mintel, this trend is called

11 “Help Me Help Myself” and it is about how consumers are learning new ways to hold themselves accountable to better lifestyle habits (Mintel).

Technological

Technology aimed at fitness or an active lifestyle first began with the

GoPro in 2004 and has since erupted into a huge market. The first smartwatch, the ’s Kickstarter, was released in 2012. In this same year, Nike released its Nike+Fuelband (Wearable). To continue, separations and differences exist within the wearable technology field between the smartwatch and the fitness band. This can be seen by looking at the , which is classified as a smartwatch. This watch is branded as a sleek yet sophisticated watch that can blend into the user’s everyday life (Apple). The Microsoft Band, on the other hand, is designed to focus on gaining results for a user’s active lifestyle

(Wearable).

Legal

A legal trend taking place, according to an article in Forbes, is that lawyers are starting to use data collected from fitness bands in the courtroom. This is especially pertinent in personal injury lawsuits in which information on the plaintiff’s activity levels can be used as evidence (Forbes). However, the use of wearable technology as evidence can be used further with the Microsoft Band due to its GPS tracking capabilities (Wearable). The fitness band can be used in the court in the same way that a mobile phone can be presented for evidence in any case.

12 Market Analysis

According to an MRI report that relates to the criteria that is supported by the Microsoft Band, Microsoft has the potential to grow sales by targeting adults age 18-34 with a household income of 75,000 and up* (MRI+).

The majority of users of the Microsoft Band are from the Western region of the United States, according to the MRI report. However, there is also a large group of users in the Northeast region of the United States. Geographic locations on the East and West coasts of the United States are more likely to use this fitness wearable. People in the midwest tend to be less likely to purchase it

(MRI+). Part of the trend is due to the large populations located near the east and west coast, which provide a larger user base for Microsoft Band.

The brand development index profile is 25% based on Microsoft’s total sales and market region population(Marketing Binder). This was calculated using data from the total revenue compared to the market revenue (Hoovers).

13 Problems and Opportunities Analysis

Problems

• The Microsoft Band lacks variety in sizes of fitness bands, which causes

consumers to choose competitors with wider range of sizing options.

• The Microsoft Band is unable to offer several options matching price with

need.

• The Microsoft Band is uncomfortable to wear, so customers will be more

inclined to buy a similar product that is more comfortable and less irritating

than the Microsoft Band.

• Other well-known competitors dominate the market share, while the

Microsoft Band only makes up three percent. This means customers are

more likely to shop competitors.

• The Microsoft Band has just begun to penetrate the market and is still

trying to build a following, making it harder for Microsoft to establish a

brand loyal fanbase.

• Competition has already built a loyal customer base, which makes it

challenging for Microsoft to appeal to the same target market audience.

• Since the Microsoft Band has such a minute market share, this product

could potentially distract from the core business and reputation Microsoft

has built.

14 • The Microsoft Band lacks appeal in the Midwest; consumers tend to

purchase the band more on the East and West coasts in the United

States.

Opportunities

• The Microsoft Band has a low price point compared to competitors, giving

Microsoft the opportunity to reach a new segment of consumers.

• The wearable technology market is growing substantially, allowing for the

Microsoft Band to appeal to new users who are more cost conscious and

experimental with wearable technology.

• The fitness lifestyle trend is growing substantially, this growth has the

potential to lead to higher sales for products such as the Microsoft Band

and other fitness-motivating products.

• Microsoft has a greater opportunity for sales due to its extensive global

reach that many competitors do not have.

• The Microsoft Band has the ability to transform the mindsets of consumers

from thinking of Microsoft as solely an application technology brand to a

company that focuses on fitness as well.

15 Opportunities Recommendation

Microsoft is known to be one of the most successful technology companies in the world, and is currently sitting in front of an opportunity to expand its technology into the fitness industry. The Microsoft Band allows consumers to feel motivated and confident in the data and features that the wearable can provide. The wearable industry is currently growing just as fast as the fitness industry is on a global scale, which makes taking advantage of this growing fitness lifestyle trend optimal for Microsoft.

To make the most of the opportunities in the current market, Microsoft should emphasize the features that empower the user to lead a more fitness- oriented lifestyle. Creating a campaign, which orients itself around the concept of daily fitness and empowerment, will allow the Microsoft Band to appeal to its primary users and also fit Microsoft’s mission to “empower every person and every organization on the planet to achieve more.”

* Referring to the MRI+ report. We included both segments into one due to the high index score that the both had. Index score of 261 for a household income of $150,000+ and an index score of 169 for a household income of $75,000- 149,999.

Marketing Objectives

To increase market share of fitness wearables by 10 percent in the next 12 months.

16 According to Mobi Health News, Microsoft currently holds less than a three percent share within the marketplace for fitness bands (Dolan). In order for the

Microsoft Band to be successful, their market share holding will need to increase.

Twelve months is a sufficient amount of time to acquire 10 percent of the market share since Microsoft has a strong brand image and loyal fanbase. Gaining a greater market share will allow for Microsoft to increase its total sales of the

Microsoft Band.

To increase sales of the Microsoft Band nationwide by 15 percent over the course of 12 months.

The focus on personal health and fitness is a current trend in the United States that makes the Microsoft Band a desirable product. In order to increase sales nationwide, Microsoft should first focus on the region most likely to purchase the band, the West Coast. According to the MRI data, the West Coast region has a large population of individuals who view physical fitness as a major priority. Thus far, Microsoft has been very successful at targeting this geographic segment, yet the company still has a great opportunity to expand sales nationwide by continuing to raise product awareness. Twelve months is a sufficient amount of time for Microsoft Band to increase their nationwide sales by 15 percent because the fitness wearable market is fairly new with many unsaturated regions.

17 Recommended marketing strategy

Price Strategy

The Microsoft Band creates a competitive advantage over the FitBit Charge HR by offering it at a lower price point. The FitBit Charge HR is sold for $149 while the Microsoft Band is sold at $129 - $249. This price range includes the new and old versions of the Microsoft Band. It’s recommended that Microsoft Band switch to a competitive/parity pricing strategy to demonstrate to prospective users that they are comparable to other fitness wearables on the market.

Product Strategy

Microsoft emphasizes that the Band is user-friendly and compatible with other types of technology (e.g., cell phones). The Microsoft software is able to be utilized on multiple platforms, while easily being integrated into daily life. A unique selling point for the Microsoft Band is the built in GPS feature that allows users to stay connected while exercising and exploring without being constrained to their cellular device. Users are able to receive email, text, and calendar alerts to their wrist, instantly. Another important feature that separates the Microsoft

Band from competitors is the personal digital assistant, Cortana. This application allows users to track their fitness level progress while providing incentives to users. Other applications available on the fitness band such as Starbucks, Uber and MyFitnessPal allow users to further connect with every aspect of their life, thus proving the versatility and adaptability of the Microsoft Band.

18 Distribution Strategy

Microsoft Band has a selective distribution strategy including online and brick and mortar offerings. This is apparent by their placement of the product within their own storefront and online through third party retailers such as Best Buy, Amazon, and Target.

Promotion Strategy

This strategy will be explained in-depth in the following sections.

Target Market Profile

Target market general features

According to our research, the target demographics for the Microsoft Band are females who are 30-40 years old. Based on a study done by Pew Research, approximately 56% of Internet users who search the web for information about exercise and health are women (Pew Research, 2009). Of those Internet users,

30- to 40-year-olds made up the second largest demographic for searching for health related information. Based off of this statistic, we concluded that our target market profile would be female business professionals between the ages of 30 and 40. The study also found that 60% of the individuals who use the Internet to gather information about physical fitness had a household income over $75,000

(Pew Research, 2008). On a psychographic level, our users are motivated to become fit, productive and efficient in their daily lives. They aspire to maximize their time, whether in the office or while running. The ongoing trend in the

19 industry is showing that wearables are becoming more relevant and effective in achieving weight loss and fitness goals (TechTarget, 2014).

Profile

My name is Angela, I am a 32-year-old woman and I am currently married to my husband John. We have two boys, Kevin who is eight years old, and Nate who is six years old. We reside in Cypress, California, where we spend our weekends either paddle boarding on the beach or taking hikes at Turnbull

Canyon. John is currently an associate at a law firm, and I am a chief marketing officer at a non-profit organization. I received a MBA from the University of

California in 2009. My family and I are very health-conscious. We try our best to stay active and maintain healthy eating habits. Having my Microsoft Band enables me to run without my phone because of its GPS capabilities. It also

20 encourages me to stay motivated when running errands because I can always depend on the step and calorie burning trackers to keep me updated on my progress throughout the day. We especially like the fact that the Microsoft Band is compatible across multiple platforms.

Branding Positioning Statement

Alternative 1

To health-conscious professionals, 30-40, who need to maintain active lifestyles,

Microsoft Band is the fitness wearable that provides an empowering, user- friendly technology that allows users to achieve their health and fitness goals.

The reason is because the Microsoft Band has sensors that measure activity metrics that keep the consumer engaged in their fitness progress. The value based pay-off is motivation. The brand character is practical and adaptable.

Alternative 2

To business professionals, 30-40, who needs constant connectivity with their technology, Microsoft Band is the wearable technology that provides reliable software while increasing user efficiency. The reason is because the Microsoft

Band possesses cross-compatible software including the application, Cortana: a personal digital assistant. The value based pay-off is that Microsoft Band provides the user with technology that increases the level of productivity. The brand character is precision and versatility.

21 Recommended Alternative: Alternative 1

We decided to proceed with the first alternative. The purpose of the first alternative brand positioning statement is to create an emotional appeal with the target market. The first statement portrays the Microsoft Band as a source of empowerment and motivation to live a healthy lifestyle, while the second positioning statement focuses more on the technology of the Band and it’s ability to increase productivity. The first proposition highlights track fitness progress in the first alternative it promotes the value based pay-off of motivation and showcases the brand’s character. It creates more of an emotional appeal and connection with our target market than the second proposition. The second one highlights more of the technology than how the Band can improve your health or lifestyle.

Communication Objectives

Our recommended time frame for our first objective is six months because

Microsoft Band needs to increase awareness before it is able to create a desire for purchase as a competitor in the fitness wearable market.

Objective 1: To increase awareness of the Microsoft Band in the fitness wearable market to the target audience.

Objective 2: To increase interest by 30% in the Microsoft Band’s attributes of adaptability and versatility to each individual.

22 Communication Strategy:

To convince female business professionals aged 30-40 who need to maintain active lifestyles that the Microsoft Band has the ability to aide in productivity while motivating them to reach fitness goals because its applications are practical and adaptable.

Media Strategy:

Tactic 1: We will create native advertisements through online sources frequently visited by the target market. The frequency of these advertisements will be once a month and will feature the Microsoft Band. Throughout the fiscal year the native advertisements will be implemented into popular online sources to maximize reach.

Rationale: As business professionals, our target market checks the Internet for news and current event updates. The target only interacts with online mediums that distribute native advertising and creative content in their spare time. For this reason, it is important for the articles to be available at all times of the day. It is also imperative to consider which sites the content is being placed on. Is it a trustworthy source? Does the site have a lot of traffic from individuals within the target market?

23 Tactic 2: We will place a television advertisement twice a day between the hours of 6-10 p.m. on a network popular with the target market in the evening. The start of the fiscal year July 1, 2016 until June 30, 2017.

Rationale: Since target market includes business professionals, the ideal times to send messages through television stations would be between 6-10 p.m., when individuals within the target market will be arriving home from work. It is also vital to determine the channels that the target market frequently watches. Word choice must also be taken into account to ensure that the audience will correctly interpret the message. The tone of the ad needs to match the personality of the

Band. Therefore, the ad should be empowering, energetic and motivational.

IMC Tactics

Advertising Tactics

1. Create native advertisements through online sources frequently visited by

the target market. We recommend a healthy lifestyle article sponsored by

Microsoft Band.

Explanation: The target market refers to the internet the most for health related questions, topics and research. A Buzzfeed article would be able to grab the attention of the target market and motivate them to live a healthier lifestyle. By mentioning the Microsoft Band at the end of the article, readers would be more likely to consider purchasing and researching details about the fitness wearable.

24 Buzzfeed articles also have the ability to be shared on various mediums. This feature would allow Microsoft to increase product awareness.

2. Place a television advertisement on a popular evening network for our

target market. We recommend placing a 30-second commercial on the

ABC network.

Explanation: We chose to use television as an avenue for distributing advertisements because it is an effective way to reach a lot of the target market in a short amount of time. Our reasoning behind the network choice has to do with the evening shows that the target market enjoys to watch during this time.

We recommend alternating the station playing the commercial between ABC and other popular networks such as TBS, FX, CNN, and Fox. By displaying the features of the Band and demonstrating its versatility, the ad will create a strong desire for viewers to purchase the device. It would be beneficial for Microsoft to release the ad later in the campaign after product awareness has been established. We recommend airing it in July of 2016.

Digital/Social Media Tactics:

Objective 1: Develop a hashtag

Explanation: By developing a hashtag, users will be able to share and curate content on various social media platforms with ease. The hashtag we are suggesting for Microsoft to implement is “#BandTogether”. This will allow the

25 Microsoft Band to access user’s content from several platforms including Twitter,

Instagram and Facebook. Designing a hashtag is a great way to increase sales and build excitement about the product. Creating a hashtag enables Microsoft to gather intel about the ways consumers use and think about the Band

Social Media Platform Optimal Posting Time

Twitter 1 - 3 p.m.

Facebook 1 - 4 p.m.

Instagram 5 - 6 p.m.

Objective 2: Social Media Contests

Explanation: Partaking in a social media contest increases user engagement with the product and the brand. The suggested social media contest coincide with the use of the hashtag as well. The following contests, if implemented, would increase awareness and excitement about the Microsoft Band.

Cortana & You Contest

The purpose of this contest will be for users to post and share their

Cortana progress on Twitter and hashtag their tweet with

“#BandTogether”. The user with the most likes and retweets would win a

prize and shout out from the Microsoft Band. The contest will encourage

users to interact with the Band more often and increase the number of

times users will check-in online.

26

Opt Outside Contest

The purpose of this contest will be for users to post and share photos of

them exercising outside on Instagram with the same hashtag,

“#BandTogether”. The top five users with the most likes will go on to the

final round where the Microsoft Band Instagram account will share their

photo and a little blurb about the user. The photo with the most likes will

receive a prize package from Microsoft. This contest will increase user

engagement and audience reach.

Objective 3: Video Content

Explanation: We recommend making weekly video content that can be shared on various platforms. Videos will consist of tips for working out, personal stories about how others use their Band, tips for efficient Band usage, address of beautiful locations to workout in, etc. The videos will be uploaded to YouTube but can be shared on Facebook and Instagram. The purpose of the videos is to increase the amount of user activity with the Band and create a competitive advantage by offering more personalized and interactive features, in an attempt to grow market share and increase sales.

27 Sales Promotions Tactics:

Brand Consciousness

To give very popular opinion leaders on social media a Microsoft Band, so they can share their experience with their online followers and convince others to buy one.

Explanation: The first of four sales promotions activities begin with giving

opinion leaders a Microsoft Band to use and analyze. These individuals

are usually well known for being on Youtube, Vine, Instagram, etc. Their

influence and exposure to followers help build brand consciousness and

product recognition for the Microsoft Band.

Brand Consciousness

Event Sponsorships

Explanation: The next tactic is to utilize sponsored events to promote the

Microsoft Band. Free giveaways and other contests help build the brand’s

name and product recognition.

Generate interest

Have a contest for users to post stories on social media about how the Microsoft

Band’s technology has improved their life with the use of #BandTogether.

Explanation: The third tactic is primarily trying to generate interest in the

product through a social media marketing campaign. The campaign

28 focuses on users sharing their stories revealing how they “BandTogether”

to empower their lives.

Build sales

Product partnership

• Tervis Tumblr

Explanation: The fourth tactic is to build sales by partnering with the

Tervis Tumbler drinkware company. This provides an added value for the

product without discounting the price and compromising our positioning.

Support Media Tactics:

Sponsored Events

The first support media tactic that will be implemented is sponsored events.

Triathlons and obstacle races are becoming more popular, as society focuses more on health and fitness. By setting up booths and banners at these events,

Microsoft has the opportunity to establish the Microsoft Band as the ideal fitness wearable for individuals who are trying to lead a more active and healthy lifestyle.

These events should involve physical fitness such as triathlons and obstacle races, which can incorporate issue advocacy such as talks about obesity or diabetes. We recommend hosting three sponsored events within the fiscal year, depending on what’s going on in the community.

29

Cyber Marketing

The second support media tactic is cyber marketing, where banner ads should be placed on popular fitness and health websites. We also recommend giving the band out to ten opinion leaders, such as people who are well known for product reviews or people who have a large scale of social media followers. In addition to giving Bands to opinion leaders, giving some to a few well-known business professionals and asking them to share how the Band empowers their life can generate more interest in the product. Throughout their time with the Band, they should create content and share their experience with everyone they know. This content can be shared on blogs, showing daily use of the Band, reaching fitness goals, and interactions with Cortana.

With cyber marketing as a tactic, banner ads will be used, as well as taking advantage of opinion leaders. This should be conducted within the first six months, January 2016 - June 2016, in order to increase brand awareness before the TV ads are released.

The Measurement and Evaluation Plan

Pre-Testing

Test the copy for the tactics using a focus group in order to make sure that the target market will respond to the messages.

Survey: testing brand awareness and product recognition (Qualtrics)

30 Post-Testing

Survey: Test for brand awareness and product recognition. Additionally, testing which tactic was utilized for brand awareness and customer satisfaction.

(Qualtrics)

Observe the social media interaction based on native advertising and hashtags.

Creative Brief

1. Product/ Service: Microsoft Band

2. Objective: To increase Microsoft Band’s market share in the wearable

fitness technology market.

3. Target Market: Female business professionals who are 30-49 years old

4. Strategy: By capitalizing on the empowering, user friendly technology that

allows users to efficiently reach fitness goals of the Microsoft Band which

will help them successfully increase their market share.

5. Proposition: The perfect fitness companion

6. Support:

• The target market wants to be reminded and motivated to workout.

o The Microsoft Band features applications such as Cortana and

preset workouts.

• The target market wants to be able to track personal information, progress

and their location.

31 o The Microsoft Band offers tools that monitor heart rate, skin

temperature, miles achieved and GPS location.

• The target market wants a user-friendly wearable device.

o The Microsoft Band reviews show that its largest assets are its

ease of use, versatility and cross platform compatibility.

7. Competition: Other fitness wearables that monitor heart rate and other fitness activities such as the Charger HR FitBit.

8. Mandatory: The Microsoft name and logo, price of the Band, product visual, hashtag #BandTogether

9. Tone of Voice: Motivational, friendly and confident

10. Desired Consumer Response: “The Microsoft Band seamlessly fit into my lifestyle with its user friendly technology. It’s reliable applications and versatility perfect fitness companion.” The desired consumer response is a combination of Think and Do. To think about an increased fitness level and how the Microsoft Band can help them achieve it. Do to choose to purchase the band to improve their health and fitness.

Media Requirements: Digital and televised advertisements

32 Bibliography

6 Fitness Trends for 2015 That Have the Experts Buzzing. (n.d.). Retrieved

October 1, 2015, from http://www.huffingtonpost.com/burnthis/6-fitness-trends- for-2015_b_6148676.html

A brief history of wearable tech. (n.d.). Retrieved October 7, 2015, from http://www.wareable.com/wearable-tech/a-brief-history-of-wearables

About Microsoft. (n.d.). Retrieved October 12, 2015, from http://www.microsoft.com/en-us/about

Basic/smart wearable device shipments worldwide 2014-2019 | Statistic. (2015,

June 1). Retrieved October 12, 2015, from http://www.statista.com/statistics/296565/wearables-worldwide-shipments/

Bishop, T. (2015, March 17). Microsoft Band expanding to Amazon, Target and

Best Buy, launching in UK, with increased supply - GeekWire. Retrieved October

1, 2015, from http://www.geekwire.com/2015/microsoft-band-expanding-to- amazon-target-and-best-buy-launching-in-u-k-with-promise-of-increased-supply/

33 Dolan, B. (2014, January 15). MobiHealthNews. Retrieved October 1, 2015, from http://mobihealthnews.com/28825/fitbit-jawbone-nike-had-97-percent-of-fitness- tracker-retail-sales-in-2013/

Facts About Microsoft. (2014, October 23). Retrieved October 10, 2015, from http://news.microsoft.com/facts-about-microsoft/

Fit for Motivation, If Not Precision. (n.d.). Retrieved October 1, 2015, from http://www.wsj.com/articles/wearable-fitness-gadgets-fall-short-on-accuracy-but- theyre-good-cheerleaders-1420820247

Fitbit Data in the Courtroom - Chicago Personal Injury Lawyer. (2015, July 20).

Retrieved October 10, 2015, from http://www.chicagolawyer.com/fitbit-data-in- the-courtroom/

Fitbit Inc. MarketLine (2015, October 28). Retrieved November 10, 2015, from http://advantage.marketline.com.lp.hscl.ufl.edu/Product?pid=C99AC062-6607-

4CD9-BAA0-A5B1FA69F3EE

Fitbit, Jawbone, Nike had 97 percent of fitness tracker retail sales in 2013. (2014,

January 15). Retrieved October 1, 2015, from

34 http://mobihealthnews.com/28825/fitbit-jawbone-nike-had-97-percent-of-fitness- tracker-retail-sales-in-2013/

Fitness devices owned by U.S. consumers in 2012 | Survey. (2013). Retrieved

October 1, 2015, from http://www.statista.com/statistics/259844/fitness-devices- owned-by-us-consumers/

Fitness gadget shipment 2013-2017. (2013, May 1). Retrieved October 11, 2015, from http://www.statista.com.lp.hscl.ufl.edu/statistics/259597/fitness-gadget- shipments-forecast/

Fox, S., & Jones, S. (2009, June 10). Exercise or fitness. Retrieved October 1,

2015, from http://www.pewinternet.org/2009/06/11/exercise-or-fitness/

Fox, S., & Duggan, M. (2013, January 27). Tracking for Health. Retrieved

October 1, 2015, from http://www.pewinternet.org/2013/01/28/tracking-for-health/

Fox, S. (2014, January 8). Few Americans track their weight, diet or exercise online. Retrieved October 1, 2015, from http://www.pewresearch.org/fact- tank/2014/01/08/few-americans-track-their-weight-diet-or-exercise-online/

35 Hands on with Microsoft Band: It's awkward and inaccurate, but stuffed with features. (n.d.). Retrieved October 1, 2015, from http://www.pcworld.com/article/2841785/hands-on-with-microsoft-band-it-s- awkward-and-inaccurate-but-stuffed-with-features.html

Intelligence, B. (2015, May 21). THE WEARABLES REPORT: Growth trends, consumer attitudes, and why will dominate. Retrieved October 10,

2015, from http://www.businessinsider.com/the-wearable-computing-market- report-2014-10

Microsoft. (n.d.). Retrieved October 1, 2015, from http://www.forbes.com/companies/microsoft/

Microsoft Band review. (n.d.). Retrieved October 1, 2015, from http://www.wareable.com/microsoft/microsoft-band-review

Microsoft Band review. (n.d.). Retrieved October 1, 2015, from http://www.engadget.com/products/microsoft/band/

Microsoft Corporation | American company. (n.d.). Retrieved October 1, 2015, from http://www.britannica.com/topic/Microsoft-Corporation

36 Microsoft Corporation. MarketLine (2015, September 04). Retrieved September

15, 2015, from http://advantage.marketline.com.lp.hscl.ufl.edu/Product?pid=8ABE78BB-0732-

4ACA-A41D-3012EBB1334D

Microsoft Corporation. Hoover’s. Retrieved October 7, 2015. http://subscriber.hoovers.com/H/company360/overview.html?companyId=141200

00000000

Microsoft Health. (n.d.). Retrieved October 7, 2015, from http://www.microsoft.com/microsoft-health/en-us

Mobile Tech Giants' Ecosystems Expand with Wearable Devices | Ipsos. (2014,

December 17). Retrieved October 1, 2015, from http://ipsos-na.com/news- polls/pressrelease.aspx?id=6704

Olson, P. (2014, November 16). Fitbit Data Now Being Used In The Courtroom.

Retrieved October 12, 2015, from http://www.forbes.com/sites/parmyolson/2014/11/16/fitbit-data-court-room- personal-injury-claim/

37 Pew Research Center (2013, February 12). The Internet and Health. Retrieved

October 12, 2015, from http://www.pewinternet.org/2013/02/12/the-internet-and- health/

Smartwatch timeline: The devices that paved the way for the Apple Watch. (n.d.).

Retrieved October 10, 2015, from http://www.wareable.com/smartwatches/smartwatch-timeline-history-watches

Standard Industrial Classification (SIC) System Search. (n.d.). Retrieved October

10, 2015, from https://www.osha.gov/pls/imis/sicsearch.html?p_sic=3571&p_search=

The Demographic Divide: Fitness Trackers and Smartwatches Attracting Very

Different Segments of the Market, According to The NPD Group. (2015, January

6). Retrieved October 12, 2015, from https://www.npd.com/wps/portal/npd/us/news/press-releases/2015/the- demographic-divide-fitness-trackers-and-smartwatches-attracting-very-different- segments-of-the-market-according-to-the-npd-group/

The watch reimagined. (n.d.). Retrieved October 7, 2015, from http://www.apple.com/watch/watch-reimagined/

38

The wear, why and how. (2015, March 14). Retrieved October 10, 2015, from http://www.economist.com/news/business/21646225-smartwatches-and-other- wearable-devices-become-mainstream-products-will-take-more

There's a Fitbit product for everyone. (n.d.). Retrieved October 1, 2015, from https://www.fitbit.com

Trend Application. (2014, December 1). Retrieved December 7, 2015, from http://academic.mintel.com/display/725076/?highlight#hit1

Wearable Computing: Technologies, Applications and Global Markets. Bcc

Research (2014, February). Retrieved October 12, 2015, from http://www.bccresearch.com.lp.hscl.ufl.edu/market-research/information- technology/wearable-computing-ift107a.html

Wearable Technology. (n.d.). Retrieved October 10, 2015, from http://www.generatorresearch.com/tekcarta/market-forecasts/wearable- technology/wearable-technology-share-of-unit-shipments-by-device-worldwide/

39 Wearable technology worldwide shipments. (2013, May 1). Retrieved October

12, 2015, from http://www.statista.com.lp.hscl.ufl.edu/statistics/302500/wearable- technology-worldwide-unit-shipments/

Wingfield, N. (2014, October 29). Microsoft Jumps Into the Growing Market for

Wearable Fitness Technology. Retrieved October 1, 2015, from http://www.nytimes.com/2014/10/30/business/microsoft-jumps-into-the-growing- market-for-wearable-fitness-technology.html?ref=bits

U.S. consumer interest in wearable computing devices in 2013, by product |

Survey. (2013, May 1). Retrieved October 12, 2015, from http://www.statista.com/statistics/259386/us-consumer-interest-in-wearable- computing-devices/

40