Download Microsoft Hotmail

Microsoft Hotmail
Scott Butler
Min Choi
Nick Shaver
Charles Sims

Microsoft and Google are
competing in many fields.
◦ Search engine
◦ Productivity software
(Office products)
◦ Web browser
◦ Operating System
◦ Web applications
◦ Mobile applications and
operating systems
◦ etc, etc, etc.

◦ And Webmail
Hotmail vs Gmail
Microsoft vs. Google
Source: Bing Image Search (composed by Min)
Communications is 35% of all time spent online
• Social Networking penetration is growing fast and taking share
from Instant Messaging
• E-mail remains a primary communication vehicle with steady
share
Consumer Time Online – 2008 H1
Content
Email
12%
32%
Communications
IM
9%
33%
Other
12%
Search,
Commerce
33%
Background
Other
3%
Source: ComScore Media Matrix Inc.
Hotmail
Windows
live
Hotmail
Gmail
Microsoft
Online
Services
Business
Unique visitors per month
growth rate
Bing
MSN
106.1 m
47.1 m
36.9 m
3%
46%
Microsoft Online Services Business
(In millions, exc
ept percentages
)
11%
Revenue
Hotmail
Yahoo
Gmail
Operating
loss
2009
2008
2007
% Change
09 vs 08
% Change
08 vs 07
$3,088
$3,214
$2,434
(4)%
32%
$(2,253)
$(1,222)
$(604)
(84)%
(102)%
Current Email Market
Source: ComScore Media Matrix Inc.
Gmail Changed Email Market
• Early Free Large Email Storage
• Strong Link To Other Free Services
• Easy to use and aesthetically pleasing
interface
Hotmail Brand Perception Problem
• Hotmail lost popularity in Transitioner Market
• Hotmail = Dial up; Gmail = Broadband
• Hotmail is primarily used for spam accounts
• Weak Hotmail-Microsoft recognition
Focus Group Conclusions
Source: Microsoft Inc. annual report
Rebranding
Hotmail
Switching
Brand
Leave it
as-is.
No additional costs
to improve/change
Hotmail.
Hotmail will
continue to suffer
loss of market
share and slowly
die out.
Many users equate
Hotmail with the
age of Dial-up,
while Gmail is seen
as a modern,
broadband email.
Confusion and
dilution of
Microsoft’s email
service (Live, MSN,
Hotmail…)
Microsoft is well
positioned to
extend strong
connection of
productivity on the
desktop to online
services like free
email.
Microsoft fights an
uphill battle to
change perception
of Hotmail’s weak
brand.
What are we going to do for Hotmail?
Hotmail Buzzwords
200
180
160
140
120
100
80
60
40
20
0
Tag Lines
250
200
Likeability
Uniqueness
150
Believability
100
Powerful free
email with
security by
Microsoft
Free, Fast and
Social email
Experience
Believability
Trusted email
Your email and
with Powerful More On-the-Go
Spam Protection
50
Uniqueness
Likeability
The concept of New Busy
0
140
120
-50
100
Hotmail :
Powerful free
email with
security by
Microsoft
Gmail: A
Google
approach to
email
80
Accuracy
60
Yahoo! Mail:
AOL Mail: The
Now you can
same secure
fire up a more email that AOL
powerful email members have
depended on
for years is now
free for
everyone
-100
Resonance
40
-150
20
0
Yes
No
Rebranding Hotmail.. How?
Source: Leeds Business School Project Management Group(Microsoft Group)
Hotmail Buzzwords
200
180
160
140
120
100
Likeability
80
Uniqueness
60
Believability
40
20
0
Powerful free
email with
security by
Microsoft
Free, Fast and
Social email
Experience
Trusted email Your email and
with Powerful More On-the-Go
Spam
Protection
Rebranding Hotmail.. How?
Source: Leeds Business School Project Management Group(Microsoft Group)
The concept of New Busy
140
120
100
80
Accuracy
60
Resonance
40
20
0
Yes
No
Rebranding Hotmail.. How?
Source: Leeds Business School Project Management Group(Microsoft Group)
250
Tag Lines
200
Believability
150
Uniqueness
100
Likeability
50
0
-50
-100
-150
Hotmail : Powerful
free email with
security by Microsoft
Gmail: A Google
approach to email
Yahoo! Mail: Now you AOL Mail: The same
can fire up a more secure email that AOL
powerful email
members have
depended on for
years is now free for
everyone
Rebranding Hotmail.. How?
Source: Leeds Business School Project Management Group(Microsoft Group)
Strengths
Weaknesses
• New busy is accurate in this era
• Hotmail is still leader in active accounts
(350 Million)
• Recent Microsoft success have bolstered
Microsoft brand (Windows 7, Bing)
• Although accurate, “New Busy”
doesn’t resonate emotionally
• Hotmail is a step behind Gmail
• Current perception of Hotmail is
negative
• Few barriers to entry in free email
market
• Homogeneous free email product
• Weak link between Hotmail and
Microsoft
Opportunities
• Hotmail taglines tested well, meaning
consumers are open to a Hotmail
rebranding
• Accuracy numbers indicate there is an
open window for marketing to
emotionally connect consumer with
“New Busy” with new marketing
concept
• Microsoft has opportunity to play
underdog (Google = evil empire)
• Room to grow Hotmail/Microsoft
connection
SWOT Analysis
Threats
• Other large email services (Gmail,
Yahoo) can get to it first
• Customers don’t want to be labeled
• Small group of strong competitors
• Google/Gmail connection much
stronger than Microsoft/Hotmail
Strengths
•New busy is accurate in this era
•Hotmail is still leader in active
accounts (350 Million)
•Recent Microsoft success have
bolstered Microsoft brand (Windows 7,
Bing)
SWOT Analysis
Weaknesses
•Although accurate, “New Busy” doesn’t
resonate emotionally
•Hotmail is a step behind Gmail
•Current perception of Hotmail is negative
•Few barriers to entry in free email market
•Homogeneous free email product
•Weak link between Hotmail and Microsoft
SWOT Analysis
Opportunities
•Hotmail taglines tested well, meaning consumers are
open to a Hotmail rebranding
•Accuracy numbers indicate there is an open window
for marketing to emotionally connect consumer with
“New Busy” with new marketing concept
•Microsoft has opportunity to play underdog
(Google = evil empire)
•Room to grow Hotmail/Microsoft connection
SWOT Analysis
Threats
•Other large email services (Gmail, Yahoo) can
get to it first
•Customers don’t want to be labeled
•Small group of strong competitors
•Google/Gmail connection much stronger than
Microsoft/Hotmail
SWOT Analysis
Top Recommendations
• Develop a marketing plan that makes
stronger connection between Hotmail
and Microsoft
• Convey the mobile perception of
Hotmail sticking with the idea of New
Busy
• “Windows Live Hotmail: A click away
from Windows® to the new world.”
How to make the “New Busy” stick