1. Scott Butler Min Choi Nick Shaver Charles Sims
Microsoft Hotmail
Scott Butler
Min Choi
Nick Shaver
Charles Sims

2. Microsoft vs. Google And Webmail Hotmail vs Gmail
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
Slide 1 engage
“Clash of Titans” Micro and Gmail wanting to do the same thing (keep old slide)
microsoft know for this, google known for this… in the end they’re both doing the same thing (google apps office, gmail hotmail, bing google, IE chrome) show how each started as opposites and are doing the same now
Microsoft vs. Google
Source: Bing Image Search (composed by Min)

3. Background Communications is 35% of all time spent online
Social Networking penetration is growing fast and taking share from Instant Messaging
remains a primary communication vehicle with steady share
Slide 2 backstory
What changes are you seeing over time
is the a primary use on the internet (time spent online pie graph from Paul)
Hotmail is our brand has a vast consumer base… good
Focus on what people do online, paint picture of what people do online
Background
Source: ComScore Media Matrix Inc.

4. Microsoft Online Services Business
Hotmail
Microsoft Online Services Business
Windows live Hotmail
MSN
Bing
Gmail
Slide 3 build tension
keep graph of current market
Bring in Hotmail is big and healthy, not growing like Gmail but not declining like AOL… Growth rate of gmail is going to take over hotmail by = WHEN?
Everything above shows the reasoning behind focusing on engine that drives these other pieces of business (phones, search engines etc… everything is becoming universal)
Out of the 350 million users over 80 percent use Microsoft relate products including MSN search. (Hotmail is still big and healthy idea)
In the market, Hotmail holds the #2 spot below Yahoo. Google’s Gmail has rapidly moved up and has just passed AOL to take the #3 spot. At current growth rates, Google will surpass Hotmail by the end of 2010.
By becoming the largest free provider Microsoft will see increases in customer’s use of Microsoft’s other products including MSN search and Windows
Microsoft Online Services Business
(In millions, except percentages)
2009
2008
2007
% Change
09 vs 08
% Change 08 vs 07
Revenue
$3,088
$3,214
$2,434
(4)%
32%
Operating loss
$(2,253)
$(1,222)
$(604)
(84)%
(102)%
Current Market
Source: ComScore Media Matrix Inc.

5. Focus Group Conclusions
Early Free Large Storage
Strong Link To Other Free Services
Easy to use and aesthetically pleasing interface
Gmail Changed Market
Hotmail lost popularity in Transitioner Market
Hotmail = Dial up; Gmail = Broadband
Hotmail is primarily used for spam accounts
Weak Hotmail-Microsoft recognition
Hotmail Brand Perception Problem
Slide 4 bring it to a boil
Brand perception problem… focus group
Gmail changed market (huge memory etc)
Hotmail used to be big time, became joke server where people sent spam, dial up
Focus Group Conclusions
Source: Microsoft Inc. annual report

6. What are we going to do for Hotmail?
No additional costs to improve/change Hotmail.
Hotmail will continue to suffer loss of market share and slowly die out.
Leave it
as-is.
Many users equate Hotmail with the age of Dial-up, while Gmail is seen as a modern, broadband .
Confusion and dilution of Microsoft’s service (Live, MSN, Hotmail…)
Switching Brand
Microsoft is well positioned to extend strong connection of productivity on the desktop to online services like free .
Microsoft fights an uphill battle to change perception of Hotmail’s weak brand.
Rebranding Hotmail
Slide 5 offer choices
kill it, keep it, change it
Tables on tag lines and new busy
Gmail did great at positioning toward a specific audience
What are we going to do for Hotmail?

7. Rebranding Hotmail.. How?
Slide six provide resolution
Why we decided to reposition
Repositioning: New busy makes sense (survey work)
Hotmail strong in tagline category, something there
Rebranding Hotmail.. How?
Source: Leeds Business School Project Management Group(Microsoft Group)

8. Rebranding Hotmail.. How?
Source: Leeds Business School Project Management Group(Microsoft Group)

9. Rebranding Hotmail.. How?
Source: Leeds Business School Project Management Group(Microsoft Group)

10. Rebranding Hotmail.. How?
Source: Leeds Business School Project Management Group(Microsoft Group)

11. SWOT Analysis 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)
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 market
Homogeneous free 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
Threats
Other large 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
Slide seven set up the sequel
how make the new busy stick
specifics campaigns
SWOT Analysis

12. SWOT Analysis 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

13. 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 market
Homogeneous free product
Weak link between Hotmail and Microsoft
SWOT Analysis

14. 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

15. Threats
Other large 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

16. How to make the “New Busy” stick
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.”
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How to make the “New Busy” stick