The Failure of the Microsoft Zune - Report Example

Running Head: The Failure of Microsoft Zune The Failure of Microsoft Zune [Institute’s The Failure of Microsoft Zune Task Introduction of Zune: The Microsoft Corporations is easily the best applications and IT Software Company in the world. Founded in 1975 by Bill Gates and Paul Allen, it quickly rose to fame with its exceptionally high quality products (predominantly related to computing). Around 2006, Microsoft officials decided to take on an entirely different market than the ones they had previously targeted. The Apple IPod introduced to the world in early 2001, took consumers by storm with innovative technology and sleek outlook. The Microsoft Corporation thought to overtake Apple’s 70% share in the Music Industry by bringing out its own mobile music software device (Blog critics, 2006). Thus came about the launch of the umbrella brand, Zune. With a history of entering late into a market and even then successfully beating back competition, it was no surprise that Microsoft executive officials confidently claimed to overthrowing the Apple IPod with the launch of their Mp4 player in 2006 (and later in 2007); the Microsoft Zune. Claimed by Microsoft to be the best, Zune contains such distinguishing features that set it apart from the Apple IPod like High Definition Radio, the Zune Social. Contrary to expectations, statistical results showed that consumers were not interested in renting music when they had in fact been enjoying free music for quite a while thanks to Apple’s ITunes software. When the first Microsoft Zune was launched on 14th of November2006, consumers were ecstatic. (Editor Microsoft.com, 2008) Soon after, the Zune became the talk of the town when it failed to come at par with expectations. Sadly, the Microsoft Corporation was forced to acknowledge that in 2008, two years after its launch, Zune was at a net worth of $85 million from initial $185million in 2007. (Macintyre, 2009) Task 2 Reasons for Failure: There were various factors that contributed towards the ultimate failure of the product; including elements such as the less appealing physical appearance of the Zune as compared to the IPod, the faulty sharing of files between Zune devices near to one another, and the software issues this device has with other non-Microsoft applications/programs. Initially, Microsoft focused on providing WI-FI technology and shareware with its Zune device, but what it failed to see was that users did not care very much about sharing music (which they would have to buy in the end anyway – or at least rent, since it did not allow free music like ITunes) when they could simply listen to such music on their desktops. Even though Microsoft has had a legendary journey, it should have realized that it would be difficult to completely turn off the ‘Apple Power’. (Valley wag, 2009). Also, it could only transfer music for three days, which was quite a setback. With a thicker and longer build, the Microsoft Zune is naturally a lot less appealing. Also, the brown colour in which it is available turned off more customers than it incited into buying the product. According to many a user...Aside from a large screen, Zune looks somewhat unremarkable beside the IPOD... (Lindy, 2006) Feedback like this clearly states that Microsoft failed to deliver in key areas of marketing – the packaging and the experience. Simply harping along advertisements never does the trick. Another drawback of this product is its inability to Share, as the Microsoft Corporation claimed it would. The Sharing and the WI-FI capabilities of the Zune were the two major Unique Selling Propositions that the company built its entire marketing campaign on, ruthlessly focusing on trying to convince customers that sharing music was better than keeping it to oneself. According to one consumer, who wants to share? I typically use my IPod to shut out the world – not invite it in an orgy of audio swapping. (Lindy, 2006) However, Microsoft’s new Digital Rights Management system also caused irreparable damage to the brand’s image when music failed to transfer across Zune devices due to a lack of proper organization. Finally, instead of focusing on the experience of providing music to consumers, the Microsoft Corporation focused on technological aspects of the product. This alienated the clientele – which was already thinning due to the higher price of the Zune as compared to the IPod. (Haskin, 2006) Therefore, the issues of Marketing Research that hurt Zune’s Launch include, “the social” aspect, as Microsoft calls it; It did not truly understand that in social networking the users spread the message more than the company, and in Zune’s case the consumers do not want to spread anything but negativity. Instead of focusing on sharing, the market research should have focused on informing more consumers about the product. Finally, the company should have heeded market research and made the product look ‘good enough to be tempting’. Instead of using their own intelligence, the Project heads at Microsoft should have headed the market research pointing to the fact that audiences were not very receptive to Zune. They should have instantaneously taken back the product and worked to make it better for consumers, instead of forcefully pushing it through the market. Task 3 Marketing Research Brief: Background: Founded in 1875, the company has always been one step ahead in the world of Technology and Innovation. Project Rationale: It seems to be a very good idea to indulge our talent in the world of music – one which enthrals a global population and unites people from all kinds of backgrounds. The working name for this product is Zune. Objectives: It is necessary to investigate consumer attitudes towards the free music software and IPod devices. Most customers prefer the sleek look of the IPod, and its ability to download free music. We must keep in mind that attractiveness is a very important feature for consumers. Also, creating Hype that Zune is better than the IPod will only work if it is proved as such – music should not be rented, but should be free. Possible Methodology: The sharing of music between Zunes will be an added bonus if the Zune worked with all kinds of software – and not just Windows. Also, a few bloggers could be paid to pitch favourably about Zune. The price of Zune should be comparatively lesser than that of the IPod, in order to attract the masses and still make the company some profit. (Haskin, 2006) Time Frame: 14 Sept. 2005 – Proposed Deadlines 1 October 2005 – Go-ahead given End of October – Presentation to clients about Zune November 2005 – Annual sales Conference (Introduction to Zune presentation) 14 Sept. 2006 – Launch of the Microsoft Zune Budget: The budget is set at $9 million, and cannot be exceeded – as the advertising budget is very high. Please separate the distinct elements of your proposal in the event that budget constraints do not allow us to commission the entire solution. [Writer’s Name] Market Research Manager Microsoft Corporation Limited Tel: Email: References Drafted, R. (2006). The Microsoft IPod-Killer Myth. Available: http://www.roughlydrafted.com/RD/Home/D2B2568D-4F51-4808-BB9E-07B800E6D44D.html. Last accessed 30th Dec 2010. Gawker. (2007). Zune abandons hostile blogosphere. Available: http://valleywag.gawker.com/tech/microsoft/zune-abandons-hostile-blogosphere-219826.php. Last accessed 30th Dec 2010. Haskin, D. (2006). Why Zune is headed to failure. Available: http://blogs.computerworld.com/node/4158. Last accessed 30th Dec 2010 . Introduction to the failure of Microsoft Zune (2006); Cambridge University Press Lindy . (2006). Zune vs IPod. Available: http://www.slideshare.net/lindy23/zune-vs-ipod. Last accessed 30th Dec 2010 . Market Research; Microsoft Zune 2006-2007 Microsoft. (2006). Zune Launch. Available: http://www.microsoft.com. Last accessed 30th Dec 2010. Winn, P. (2006). Zune - the IPod killer brand. Available: http://blogcritics.org/scitech/article/microsoft-names-zune-as-ipod-killer/. Last accessed 30th Dec 2010 . Editor. (2006). Microsoft to Put Zune Experience in Consumers’ Hands on Nov. 14 Available: http://www.microsoft.com/presspass/press/2006/sep06/09-28zunepricingavailabilitypr.mspx/ Last accessed 30th Dec 2010. Macintyre, Douglas (2009) Microsoft Zune Available: http://www.time.com/time/specials/packages/article/0,28804,1898610_1898625_1898633,00.html/ Last accessed 30th Dec 2010. Read More