Executive Summary
The plan by Microsoft to enter into the United Kingdom through retail stores will be faced with strong competition from Apple. United Kingdom market has potential for growth given the current economic growth trends.
To ensure success of these retail shops it will be important to communicate this plan to the target market. This will involve using marketing communication strategies such as advertisement, promotions and public relations. These strategies will increase awareness and build trust among customers.
Pricing strategy can be useful for the Company in reaching the target market. Pricing and product positioning will enable customers to choose from a wide variety of products and services hence satisfying their diverse needs. According to the research findings, most individuals are not aware of Microsoft products compared to Apple’s. This can be attributed to the aggressive marketing strategies applied by Apple Company.
Introduction
Microsoft is an information technology corporate that has its headquarters in Washington. Microsoft is a globally recognized multinational with affiliates in most states and a market capital of 213 billion. Microsoft is widely recognized for development of computing products and service provision.
Currently, Microsoft owns retail stores operating in the United States. In order to increase its market share significantly it is important to venture into new markets with investments in retail stores (Blau 2006).
The Company has considered venturing into the United Kingdom market to increase its market share. The United Kingdom is among the top ranked countries in economic growth. The existence of trade Unions such as the European Union facilitates stability of the United Kingdom market.
United Kingdom is a flexible state that can promote stability for a product growth. Since Apple, has entered the United Kingdom markets with its products, it is critical for Microsoft to take into consideration market communications (Naik 2003).
Market and Literature Review
Situational analysis
Current Market Analysis
One of the globally recognized products offered by this Company includes the windows operating system. This Company has also conquered the office group through the provision Microsoft office. Microsoft also offers products such as Pc accessories that have not largely entered the global market. Previously, Microsoft used to sell their products over the internet and in various selected stores.
Due to globalization and social issues, the Company is currently selling their products in selected Microsoft retail stores branded by their name (Spinello 2002).
This approach has triggered establishment of new retail shops to increase effective distribution of these brands and significantly increase the market share. Recently, Microsoft has opened over 14 stores within the United States selling computers and phones with Microsoft operating system (Fill 2009).
The plan by the management to increase its retail operations by expanding to the United Kingdom requires competitive strategies to facilitate success. European market has rapidly reported growth in Pc’s with estimated increases of up to 4.8% anticipated in 2010-1014.
This can be attributed to the capability of the Companies within the market environment to persuade potential customers (Spulber 2008). Apple Company has aggressively used strategies such as promotions and other incentives to capture potential buyers in the European market.
The aggressive promotions are attributed to increase the computing industry in the next few years due to dynamic changes in customer’s tastes and preferences (Fill 2002).
Positioning
As an Information Technology Company, it is essential to consider customer demands by providing quality brands. Majority of the people interviewed preferred Apple product because of their quality. Product positioning is valued by most Pc manufacturing Companies. This strategy is mostly used by Apple to increase customer base for its products (Conrad 2004).
Pricing
Microsoft pricing for its products in retail stores has enabled it to expand markets in the United States. This strategy has been used by Apple Company to compete aggressively in most stable markets. This is an important component of the marketing mix in an information technology Company.
Most customers are driven the value for their money. The value for money can well be described by Apple’s strategy to develop different products that have been termed unique by their customers. Having this in mind, it will be important for Microsoft retail stores to offer products that are of good quality and value (Copley 2004).
Product mix approach through differentiation of product price provides a good opportunity for the Company to capture new markets. This is where different retail stores can sell a wide variety of brands at differentiated prices. To satisfy customers, the quality of the product is essential since it builds customer trust.
This can be done through provision of after sale services such as warranties to purchasers of Microsoft products. Customer satisfaction can be also overlooked through provision of optional accessories for Microsoft Pc’s (Fill 2001).
Product
Apple Company provides a wide variety of products ranging from hardware’s to software’s. Apple also provides services such as distribution of digital electronics. Microsoft aims at competing with Apple in hardware and software provision within the United Kingdom computing environment.
Since the customer base for Apple Company is strong, it is crucial for Microsoft retail stores to develop competitive strategies. These may include provision of after sale services to meet customer satisfaction (Black 2004).
After sale services such as warranty provision to products purchased benefits the Company in attracting and retaining loyal customers. This can enable Microsoft to compete profitably and productively against the rival competitor.
Since Apple’s 10th version of operating system is the most advanced product, Microsoft’s windows 7 can be the most appropriate product for these retail stores to cope with competition. This will offer customers with a quality product that is considered as innovative hence increasing chances for success (Schultz 2004).
Competition
As stated above, the major competitor for Microsoft’s products in the United Sates is Apple Company. Microsoft began Competing with Apple after introducing its operations in North American market. Due to brand positioning and promotion strategy, the Company has managed to open approximately 14 stores within the United States (Ouwersloot & Duncan 2008).
Microsoft’s plan to enter the United Kingdom market requires good awareness of the product in the market. This can be done through improved after sale services such as installations and long term services for the products.
Another strategy that can be used to increase awareness is through the use of advertising mediums such as newspapers and televisions. Currently Microsoft products are facing great competition in the United Kingdom market (Methe 2001).
Direct Marketing
Directing marketing strategies such as advertising, public relations, and sales promotions can be used to reach to target market. These strategies are globally used by most organization to reach potential markets.
Communicating to the target market by providing information regarding products and services offered by the retail stores will create strong awareness. For Microsoft to enter the United Kingdom market, it will be fundamental to apply these approaches to gain a significant percentage of the market share (Heines 2000).
Advertisement
Advertisement is important for Microsoft to introduce its retail stores in United Kingdom. Regardless of the medium of advertisement used, Microsoft must ensure that it catches the target audience. This can include provision of information regarding the services and products offered by retail stores.
This advertisement should be aggressive enough to pull down the rival competitors. The advertisement should focus on the services offered by the retail shops such as usage training and guaranteed repairs incase of technical defaults (Duncan 2002).
Microsoft can also consider alternative channels of communication not commonly used by their rivals but known by majority of the target market. Apple is a good example of a corporate that has extensively benefited from aggressive advertisement. For example, Apple has built critics through advertisement by showing inefficiency of Pc’s running with windows operating systems (Kenneth 2007).
Public Relations
Public relation is a strategy that the rival competitor has used extensively. Apple advertises it products on its websites in order to reach a wide range of geographical market. Through the use of public relations, Microsoft will be capable of enhancing its brand image and facilitate consumer feedback. Public relations promote the reputation of the Company which may effective in entrance to a new market.
This should include the use of Microsoft website to publicize the entrance of retail stores in the United Kingdom market. Through the website, the Company is capable of getting possible information from the public that may facilitate improvements (Shimp 2008).
Public relations facilitate provision of feedback concerning the retail stores hence building trust among the customers. This is because customers are motivated to purchase products from dealers that they perceive as operating within the legal means. Adherence to the legal rules and procedures enables a Company to build a good reputation (Linton & Morley 2001).
Sales Promotion
Sales promotion is critical for a Company planning to venture into a new market. To ensure efficient distribution of the products offered by the retail store, it will be important for Microsoft to append value to the products.
Microsoft can use either pull or push strategies to promote their products. Pull strategy involves stocking of specific products to increase demand for more. On the other hand, push involves stocking a variety of products on the shelves to allow customers to select from those displayed (Kotler 2003).
Objectives and effectiveness of training retail stores employees in promotion
Training employees of the retail stores will also be critical in promotion of the Company products. Training these employees will enable the Company to have a reliable and skilled workforce that can handle customer issues.
This approach shall facilitate good customer relations hence reducing conflicts that may affect the reputation of the Company. It also facilitates creation of awareness of the services and products offered by the Company in those stores. As a result, Microsoft can promote business ethics through adherence to legal rules and procedures (Shimp 2010).
Research Methods
Primary Research Method
Questionnaires have been very useful in analysis of this data. Out of the 45 people interviewed, 75 percent are aware that Microsoft operates retail stores in the United States. The questionnaires offered respondents with an opportunity to give their opinions by incorporating both open ended and close ended questions.
The questionnaires were distributed randomly to various sample groups and the data collected was generalized. This is basically because the response given by a certain market segment is assumed to provide views of the entire region.
Source: (Orr 2007).
The other method used to collect primary data was through interviews. Most individuals were aware of Apple products compared to Microsoft products. Out of the 50 people interviewed through interview method 72 percent preferred Apple operating system. This is basically because of the powerful and aggressive advertising practiced by the Company. Approximately 18 percent preferred Microsoft products.
Source: (Monye 2000).
These methods of primary data collections had limitations such as covering a larger geographical distance. These methods were exposed to provision of information that was influenced by personal feelings. The methods also limited the number of individuals interviewed of their costs.
Analysis, discussion and Conclusion
Based on the secondary data collected most customers are satisfied by after sale services provided by the Company. This includes providing support staff to ensure that any issues arising from the use of the Companies are resolved. This will increase trust and sharing of fundamental information from the customers.
The brand features should be communicated effectively enabling customers to compare the best that fits their needs (Rogers 2001). The unique services of Microsoft retail shops will enable the Company to gain a significant customer base in addition to the current one.
To satisfy customers on the quality of the product it is important to build customer trust. This can be done through provision of after sale services such as warranties to purchasers of Microsoft products. Customer satisfaction can be overlooked through provision of optional accessories for Microsoft Pc’s (Fill 2009).
Another pricing strategy that can be useful for the Company is segment pricing. This includes grouping the products into the most and least expensive as per capacity. This strategy is fundamental to enable the Company products to be affordable by majority of the target market. Pricing will enable the customers to choose from a wide variety of products and services hence satisfying their diverse needs (Kitchen & Pelsmacker 2000).
To increase awareness of the retail stores and Microsoft products, there will be need for effective advertisements. Through advertisement, Microsoft will be capable of reminding their customers of the existence of the products and development of new stores where they are easily accessible.
Advertisements enable customers to get the right information hence avoiding reception of distorted messages from third parties. Advertisements will facilitate fair competition within the business environment by assuring customers that Microsoft products are of good quality despite misinformation by the rival competitors (Graham 2000).
Public relations shall facilitate provision of feedback concerning the retail stores hence building trust among the customers. This is because customers are motivated to purchase products from dealers that they perceive as operating within the legal means. Adherence to the legal rules and procedures enables a Company to build a good reputation (Tuckwell 2007).
Given the fact that the rival competitor relates well with the public, it will be important for Microsoft to employ public relations strategy in the retail stores. To gain a competitive edge it is important for Microsoft to consider all these strategies in implementing the retail stores in United Kingdom. This will increase awareness and improve customers to business relations (Kurtz 2010).
Customer satisfaction should be a major consideration for the Company to gain a competitive edge in the market environment. Advertisements can play a major role in creating awareness regarding entrance of retail stores in United Kingdom market. Therefore, all the components of integrated marketing communications will be fundamental for the business to success in United Kingdom market (Adcock 2000).
Recommendations
There will be need for extensive publicizing of the retail stores to create awareness of the target segments in United Kingdom. Since customers will require proper information of the products and services offered by the retail stores, the Company should train all the staff that will be hired to work in the stores. To cope with Apple’s competition in the market environment aggressive marketing is elementary to gain a strong customer base.
The retail stores should be located in accessible geographical locations to increase accessibility. A feedback system should be provided to increase interactivity with the customers and build trust.
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