Marketing Assignment Team 3_ Microsoft

MICROSFOFT corporation Ida Bagus Rai Satria Dharma (A20BS0101) / Wan Pui Yee ( A20BS0156 ) / Saraswati Subramaniam ( A20BS0119 ) / Nadiahtul Assyiera Binti Nor Azman ( A20BS0072 ) / Shafa Chairunissa ( A20BS5001 )

1. COMPANY BACKGROUND AND MARKET ANALYSIS 1 1. MICROSOFT DESCRIPTION 1 1. MISSION 1 2. VISION 1 3. CORECOMPETENCIES 2 4. BUSINESS PORTFOLIO/SBU 3 2. MICROSOFT BUSINESS AND MARKETING OBJECTIVE 4 3. SWOT ANALYSIS 4 4. MARKET ANALYSIS 6 5. MICROENVIRONMENT ANALYSIS 7 1. COMPANY 7 2. SUPPLIERS 8 3. MARKETING INTERMEDIARIES 9 4. CUSTOMER MARKET 9 5. COMPETITORS 10 6. PUBLIC 10 1. FINANCIAL PUBLIC 10 2. GOVERNMENT PUBLIC 11 3. MEDIA PUBLIC 11 6. MACROENVIRONMENT ANALYSIS 11 1. SOCIAL AND CULTURAL 11 2. ECONOMIC 11 3. TECHNOLOGICAL 11 4. ENVIRONMENTAL 12 7. DEVELOPING STRATEGIES 12 13 2. MARKET SURVEY 13 1. DEMOGRAPHIC 16 2. PRODUCT SURVEY 21 21 3. MARKETING MIX: XBOX 21 1. PRODUCT 21 1. PRODUCT CLASSIFICATIONS 21 1. SPECIALITY PRODUCTS 21 2. PRODUCT ATTRIBUTE 22 1. PRODUCT QUALITY 22 2. PRODUCT FEATURES 23 3. BRANDING 23 4. PACKAGING 23 5. PRODUCT LINE 25 6. PRODUCTLIFECYCLE (PLC) 25 2. PROMOTION 25 3. PLACE 26 1. ONLINE STORE 2. PHYSICALSTORE i

4. PRICE 26 1. FACTORS AFFECT PRICE DECISIONS 27 1. INTERNAL 27 2. EXTERNAL 27 2. PRICE STRATEGIES 27 3. NEW PRODUCT PRICING STRATEGIES 27 4. PRODUCT MIXPRICING STRATEGIES 28 4. EXECUTIVE SUMMARY 28 1. MARKET FACTORS AND TRENDS 28 2. PRODUCT AND SERVICES 28 3. CUSTOMER BASED AND MARKETING ACTIVITIES 29 4. FINANCIAL PLANNINGAND PROJECTIONS 29 • OBJECTIVES AND STRATEGIES 29 ii

1.0 COMPANY BACKGROUND AND MARKET ANALYSIS 1.1 MICROSOFT DESCRIPTION 1.1.1 MISSION “Our mission is to empower every person and every organization on the planet to achieve more.” • According to Gregory (2019), the mission statements show he the benefits and achievement that worldwide users and businesses institutions from the global market can obtain through computer technology provided by Microsoft products. 1.1.2 VISION “to help people and businesses throughout the world realize their full potential.” • Gregory (2019) defines Microsoft vision statements as representing to aid individuals and organizations in the global market by creating an opportunity for them to recognize their business purposes yet achieve it through Microsoft technology products. • According to Microsoft CEO Nadella (2017), Microsoft had new changes to its corporate vision, which is “ Our strategy is to build best-in-class platforms and productivity services for an intelligent cloud and an intelligent edge infused with artificial intelligence (“AI”). In comparison, Microsoft past corporate vision, “Our strategy is to build best-in-class platforms and productivity services for a mobile-first, cloud-first world.”, that is focus on communication and interaction for mobile users through technology and provide, gather, process data through Microsoft cloud storage solution. 1

1.1.3 CORE COMPETENCIES 1. Innovation • Microsoft corporation emphasizes that technology is used to gain benefits. Thus, the company invests in research for various fields that include AI, computer vision, human-computer interaction, security, privacy and cryptography, systems, and networking. 2. Diversity and inclusion • Microsoft develops improvement in an environment by considering opinions from different perspectives, including employees and customers' experiences, strengths, challenges, and thinking skills. 3. Corporate social responsibility • Microsoft is concerned about welfare and well-being communities. It provides a solution, approach, and policies in privacy and cybersecurity, skills for employability, environmental sustainability, and technology for nonprofits. In conjunction with pandemic Covid-19, Microsoft provides job seekers resources for the unemployed andinvests in AI for health. 4. AI • Microsoft invested in AI to better by solving problems in the environment, accessibility, humanitarian issues, cultural heritage, and health. 6. Trustworthy computing • Microsoft ensures the data, privacy, and security is secured during digital transformation and data transaction. President and Chief Legal Officer of Microsoft, Brad Smith, said “ If we can’t protect people, then we don’t deserve their trust.” 2

1.1.4 BUSINESS PORTFOLIO / SBU Business portfolio Microsoft Corporation analyzed based on BCG matrix that involved stars, cash cow, question mark and dogs. Stars Question Mark Market Growth Rate High • Windows Operating • Microsoft Phone hard- ware segment systems • Microsoft Office • Microsoft Lumia and non-Lumia phones Cash cow Dogs Low • Xbox one • None • Xbox 260 High Low Relative Market Share Diagram 1: Business Portfolio of Microsoft Corporation 3

1.2 MICROSOFT BUSINESS AND MARKETING OBJECTIVE 1. Support inclusive economic opportunity • Microsoft guarantees healthy economic growth in society. 2. Protect fundamental rights • Microsoft eliminates injustices in the world to ensure everyone has their own rights. 3. Commit to a sustainable future • Microsoft insisted on taking on taking care of our Earth to have a sustainable future by taking action, including carbon negative and build planetary computing platform to control Earth’s natural system 4. Earn trust • Microsoft ensures that every customer's privacy and security every customer's security are protected, right and beneficial use of AI and transparency. 1.3 SWOT ANALYSIS Strength Weakness 1. Lack of invention 1. Brand reputation leads to higher profit and market • Customer not satisfied towards • Xbox that created by Microsoft and released on 15 Microsoft products such as Xbox. November 2001 still valued by customers till today. 2. Constantly upgrading product qualities to sustain a 2. Low consistency to maintain at high quality and high possibility of place in a crowded market. damage to quality of Xbox due to • Microsoft created Xbox 360, Xbox One, Xbox One S, Microsoft provide low budget for Xbox quality control Xbox One X, Xbox Series S, Xbox Series X that have high market demand 3. Has global nature in field of company's supply chain and strong distribution channel • Xbox has strong presence on social media ( Facebook, Instagram ) • Ensure involvement of product in virtual and physical locations to reach global target market 4. Always maintain company's global business partner • Xbox have large number of customers around the world that enable company obtain extra profit 3. Microsoft products overpriced 4. High employee turnover rate 4

Opportunity 1. Microsoft uses social media such as Facebook, Twitter and Instagram to promote their Xbox, which attract many users and receive feedbacks. • For example, Xbox in which everybody indifferent countries use that product and creates a new marketplace. 2. Microsoft hire skilled labor that able to help reduce training and development cost through internship programs from institutions. 3. Population is a great opportunity to all organizations because they can predict the number of potential customers. • The population has been growing for almost every country, Malaysia's population for 2020 increased 1.51%. • The benefits are the number of target markets for Xbox also will be increased. Threats 1. Increase competitions of Microsoft • For example, some players offer broadband for free for sell Xbox that lead to reduced revenue for Xbox if Microsoft maintain its price. Otherwise, it will cause a loss of market share • For example, Xbox has compared with PlayStation 2, which has high demands. 2. Technology changes • Microsoft kept up with constant technology changes such as training workforce according to technology change. 3. Consumer change • Microsoft do modifications or innovations to their product to fulfil consumer needs • Example, Microsoft keep doing design for Xbox to get the market place such as Xbox360, Xbox One, Xbox One S and X, Xbox Series X and S. 5

1.4 MARKET ANALYSIS Market analysis is a thorough assessment of the current market to have a better understanding of value and volume of the market, potential customer segments,and buying patterns, the competition, barriers to entry, and industry regulations that help you to make a smarter strategy for growing your business A. Industry Overview Microsoft is a company that runs in technology focused on helping people and businesses realize their full potential. Microsoft creates technology that transforms the way people work, play, and communicate across a wide range of computing devices. For examples, Microsoft has an Xbox company that runs an entertainment and gaming company. We generate revenue by developing, licensing, and supporting a wide range of software products and services, including cloud-based services, designing and hardware of sale, and delivering relevant online advertising to a global audience. Our most significant expenses are compensating employees, designing developing, manufacturing, marketing, selling our products and services, and income taxes. B. Target Market SSeeggmmeenntatatitoionnCCrirtieteriraia MMicicrorossooftSftTegTamragregenet ttCuCsutostmomerer TTyyppeeoof fSSeeggmmeenntatatitoionn Global markSeetpglamceent UGrbloabnaalnmd arurkraeltplace Geographic Region Geographic DReengsiiotyn 1U6 rabnadnoladnedr rural Demographic M16alaesnadnodldFeemr ales Demographic ADgeensity Males and Females GAegneder Gender BBaachcehleolrosrtagsetaygoeunygo,suinnggle, single LLifief-ec-yccyleclsetasgteage ppeoepolpelneontolitvliinvginhgomhoeme NcNheilwedwlryelmny amrraierrdiecdoucpoleuypoleunygo, unong, Occupation Fnuoll cnhesitld1reyonungest child nFumulbl ernseixst 1 youngest child Fouvunellrdneersts2ixyoungest child six/ SFtuudlel nntes,setm2pylooyuenegs,est child six poror foevsesironals 6

Behavioral ODcceugpreaetioonf loyalty Hardcore loyal Behavioral Benefits sought SoSfttucdoernetlso,yeaml ployees, Efpfriocifeenscsiyo,naaclcsuracy, PsycPhsoygchraopgrhaipchic Degree of loyalty spHeeadrdcore loyal Personality DSeotefrtmcoirneedloaynald amEbffitiicoieunscy, accuracy, speed Benefits sought NDone-tuesremrsin, ed anpdoatmenbtiitailous PUersseornsatlaityus User status usNerosn, -ufisresrt-s, tipmoetenutsiearl s, users, SoScoicailacl lcalsasss refgiurslat-r timuseeruss,ersa,nrdeguelaxr- users, Lifestyle usaenrds ex- users Lifestyle LoLwoewrecrlacslass,sw, owrokrinkigng class, clamMssiad,im-ndsitdlerdeclaelmacselsar,sasn, adnudpper class upApseprircelarss MSauincsctereedaemder AsEpxirpelor rer Succeeded Explorer Table 1 : Target Market of Microsoft Corporation 1.5 MICROENVIRONMENT ANALYSIS All those micro factors that impact business strategy, decision-making, and efficiency are part of the marketing micro environment. Before the decision-making process, it is important to perform macro environment and micro environment research for company performance as they would affect the corporation's business operations. Business micro-environment variables include the company, suppliers, marketing intermediaries, customer market, competitors, andpublic. 1.5.1 COMPANY In Microsoft Corporation organizations, they work together to achieve the company's objective, whichisto provide superior customer value and relationship. 7

Figure 1: Microsoft Corporation Organization 1.5.2 SUPPLIERS Microsoft created a great program called Microsoft Supplier Program (MSP), which determines how key business-critical and strategic suppliers, including specifications and goals, do business with Microsoft, thus allowing for a direct path to success. Having a chosen supplier makes it easier for Microsoft teams to work with a prequalified group of suppliers globally. The suppliers of Microsoft are compliant, competent, and competitive. They represent a dedication to the diversity of products and services that are the best in class. Upon joining the Microsoft Supplier Program, a supplier becomes eligible for program benefits where they could get; recognition, participation in events, training, and a variety of resources. Un- der Microsoft Supplier Program, there is an Excellence Award Program where suppliers with higher performance, exemplary service, and innovation are rewarded by Microsoft Corporation, thus giving them the recognition, they deserve. 8

1.5.3 MARKETING INTERMEDIARIES Since there is a lot of product produced by Microsoft Corporation, their business typically goes through multiple distribution networks to deliver a finished product to the end customer. The market intermediary acts as the link between the product and the consumer is one of the critical- critical distribution facilitators. Since they are such an essential component of the distribution chain, these intermediaries not only place goods on shelves or directly into the consumer's hands, but they also have brilliant insight into how products can be better advertised. Microsoft also created a reliable platform for its partners to sell Microsoft's products with ease. For example, Microsoft Authorized Device Reseller Program is created to help their partner resell Surface devices to their customers. This program includes benefits for the reseller where Microsoft providesresources like sales tools, marketing campaigns, and training sell Surface devices successfully. Other than that, Microsoft also focused on their online retail much more after the pandemic Covid-19 strike. They retail operations online closed nearly all their physical store and moved their retail operations online, which is called Microsoft Store. This step make it more comfortable for their customers to purchase Surface and X-Box online without having to go out and expose themselves to the virus. 1.5.4 CUSTOMER MARKET Microsoft is can communicate effectively too with their customer because of its strategic marketing plan. They use plenty of communication channels such as personal selling, direct marketing, public relations, experiences and events, sales promotion, and advertising to relay their customers' marketing messages. This strategy ensures of that all of their customers are aware of the latest products and shows that Microsoft has for them. For example, Microsoft product, Windows are used widely around the world since its compatible with many computer devices. They focus on upgrading Windows to fulfil customers' needs, thus luring in new customers with their well-known, trusted brand. Each of Windows updates improves their customers s experiences, whether it's more comfortable to access their new Windows from their lap- top or even the new look that Windows presents computer. Overall, Microsoft keeps on working hard to increase their customer's satisfaction with their products, and they also try to remain superior within this competitive market. 9

1.5.5 COMPETITORS As big as Microsoft Corporation, they still have competitors to look out for. Their primary competitors are the most prominent technology companies in the industry, such as Apple, Google, Oracle. The high number of Microsoft Corporation competitors are much likely because Microsoft not only produces one type of product but also a variety of them. Microsoft not only focuses on their software program but also branched out with other products such as laptops, phones, and even video game console. Thus, this lead to competition of various products produced by Microsoft Corporation with various of other company's products. For example, Apple, which holds the second position in the global operating system market with 9.4 percent of its MAC OS share, is Microsoft's biggest competitor. With Windows, the world's most extensive operating system with 87.7 percent of market share, Microsoft is the undisputed leader in this segment. Created in 1977 by Steve Jobs, Apple has 137,000 employees and reported $260 billion in sales, while Microsoft closed with 14,000 employees and $126 billion in 2019. 1.5.6 PUBLIC The public is any group that has an actual or potential interest in or impact on a company's ability to achieve its goals. They are a few types of the public involved with Microsoft Corporation, such as the financial public, government public, and media public. 1.5.6.1 FINANCIAL PUBLIC Rank Shareholders Name Shares Owned 1 The Vanguard Group, Inc. 614, 100, 233 2 BlackRock Fund Advisors 515, 509, 179 3 SSgA Funds Management, Inc. 299, 126, 371 4 Fidelity Management & Research Co. 222, 257, 473 5 T. Rowe Price Associates, Inc. (Investment Management) 177, 500, 157 6 Geode Capital Management LLC 117, 798, 162 7 Capital World Investors 110, 441, 260 8 Capital Research Global Investors 95, 506, 129 9 Capital International Investors 91, 995, 988 10 Northern Trust Investments, Inc. 91, 215, 100 Table 2: Top 10 Microsoft Corporation Stakeholders 10

1.5.6.2 GOVERNMENT PUBLIC Microsoft Corporation has faced a few legal charges by the government. Since then, they have upgraded their services. To avoid compilations with the government again they have launched Government Security Program in 2003 to assure their customers that their software is secure and free of backdoors. 1.5.6.3 MEDIA PUBLIC Microsoft used to have their magazine calledMicrosoft Developer Network Magazine, which s been guidance to Microsoft developers' community has been a guidance to Microsoft developers' community. Still, it has published its last issue in November 2019 and ended thereafter three decades of publishing 1.6 MACROENVIRONMENT ANALYSIS 1.6.1 SOCIAL AND CULTURAL Factors consist of changing demographics, patterns of employment, lifestyles, and attitudes. More and more people are becoming technology savvy, and the new generations are highly computer literate. A higher percentage of women across the world are employed, increasing the consumer base for computing products. The concept of home computers is well accepted. The aging population of the world may hold adverse effects for the industry in the time to come, as the number of people working will be drastically reduced up to 35% of the population while over 50% will be retired. 1.6.2 ECONOMIC Forces can be noted in the slowdown in the global economy and the increased competition from cheaper sources as India. The turbulent currency markets also affect large-scale global companies as Microsoft, increasing financial risks. The aging population of the world will retire in time to come, leaving a smaller percentage of world population in the workforce. This trend is likely to affect the world economy adversely, slowing down growth and development across the world. 1.6.3 TECHNOLOGICAL Developments include comprehensive the scale use of personal computers, the rapid growth of Internet usage, and information technology integration to drive organizations critical processes. The convergence of multimedia options of audio, video, and data is providing powerful usage options, further expanding product potential. 11

Figure 2: Computer-aided designing and production facilities Figure 3: Decision support system 1.6.4 ENVIRONMENTAL Factors such as scarce natural resources, concertation of ecosystems through recycling, and reduced use of paper promote the concept of the paperless age. These trends have a beneficial impact the on the IT industry, replacing paper modes of communication and data processing & storage with electronic means. Natural disaster as the Asian Tsunami and the series of hurricanes in the US can also adversely affect the organization. 1.7 DEVLOPING STRATEGIES We decide to choose product development because Microsoft still a technological technology company that always develops every year, so the product is not outdated and technological companies always compete to become the most updated company. Microsoft is a big company, so their product already has their own market and people already know about Microsoft, Microsoft no longer needs to put a high effort to make a new product that requires a new market, for example, Xbox products. Since Xbox company is well-known among gamers and sustains a huge market in gaming, Microsoft recognizes products' potential and always makes innovation on them. 12

2.0 MARKET SURVEY 2.1 DEMOGRAPHIC Based on the questionnaire result, 22 respondents are male, and the other 21 are female from 43 respondents. Based on the questionnaire result, 1 respondent is under 18 years old, 37 respondents are 18 – 25 years old, 2 respondents are 26 – 35 years old, and 3 respondents are below 45 years old. Income No income Based on the result of the questionnaire, Level <RM 1000 there is no income for 21 respondents, there are 10 respondents that have less 34 RM 1000 - RM 3000 than RM 1000 income level, there are 5 5 RM 3001 - RM 5000 respondents that have RM 1000 – RM > RM 5000 3000 income level, there are 3 respondents 10 21 that have RM 3001 – RM 5000 income level, and there are 4 respondents that have more than RM 5000 income level. 13

Based on the result of the questionnaire, 32 respondents are students, 1 respondent is unemployed, 2 respondents are self-employed, and 8 respondents are employed full time Based on the questionnaire results, 15 respondents are from Malaysia, 27 respondents are from Indonesia, and 1 respondent is from Qatar. 14

Based on the questionnaire's result, 24 Which residential area do you lives? respondents are from an urban area, 16 3 respondents are from a sub-urban area, and 3 respondents are from a rural area. 16 24 Urban Sub-Urban Rural Based on the questionnaire result, 2 respondents have no formal education, 5 respondents have finished secondary school, 9 respondents have finished Diploma/A-level/ Foundation/ STPM/Matriculation, 22 respondents have completed Undergraduate, 1 respondent have finished a degree, and 4 respondents have completed postgraduate. Based on the M, questionnaire results, 43 respondents have their own Microsoft product, and no respondents who don’t have their own Microsoft product. 15

2.2 PRODUCT SURVEY Based on the questionnaire result, 2 respondents have been used Microsoft products for 6 months – 1 year and 41 respondents have been used Microsoft products for more than 1 year. Based on the questionnaire result, 2 respondents buy Microsoft products monthly, 19 respondents buy Microsoft products once a year, 22 respondents buy Microsoft products more than once a year. 16

Based on the result of the questionnaire, 10 respondents buy Microsoft products from a physical store, 11 respondents buy from Microsoft website, 12 respondents use product key + crack, 21 respondents buy Microsoft product from an online store, 10 respondents buy Microsoft products from the laptop itself, 9 respondents buy Microsoft products from authorized Microsoft partner, and 1 respondent buy Microsoft products from University’s facilities. Based on the result of the questionnaire, 35 respondents typically use Microsoft Office, 21 respondents normally use personal computer or laptop from Microsoft, 6 respondents typically use gaming devices from Microsoft, 10 respondents typically use communication platform from Microsoft, 29 respondents normally use Microsoft Windows, 4 respondents normally use personal computer accessories from Microsoft, and 6 respondents normally use mobile devices from Microsoft. 17

Based on the result of the questionnaire, 11 respondents said Microsoft product is friendly, 11 respondents said they have a various function, 8 respondents said that Microsoft has a high quality, 7 respondents said Microsoft are great performance, 3 respondents said Microsoft is single solution product, 2 respondents said Microsoft has a low price, 1 respondent said Microsoft have an attractivedesign. Based on the questionnaire result, 20 respondents spent RM100 - RM300 on Microsoft products, 15 respondents spent <RM100, 5 respondents spent >RM500, 3 respondents were pay RM301 – RM500. Based on questionnaire’s result, 22 respondents’ first reaction after using Microsoft product is positive, 12 respondents neutral, 8 respondents very positive, 1 respondent very negative 18

Based on the result of the questionnaire, 18 respondents said Microsoft was very well for daily life, 14 respondents said Microsoft was well for everyday life, 10 respondents said Microsoft was neutral for daily life, 1 respondent said not well for daily life. (Not well) 1—2—3—4—5 (Very Well) Based on the result of the questionnaire, 21 respondents said Microsoft was well for daily work- flow, 15 respondents said Microsoft was very well for everydayworkflow, 6 respondents said Microsoft was neutral for daily workflow, 1 respondent said Microsoft was not well for daily workflow. (Not Well) 1—2—3—4—5 (Very Well) Based on the result of the questionnaire, 19 respondents said the main challenges from using Microsoft product is too expensive, 5 respondents said no single solution product, 5 respondents said low data backup and recovery, 4 respondents said short time used product, 3 respondents said too complicated to be operated, 3 respondents said outdated product solution, 2 respondents said poor design, 1 respondent said poor performance, 1 respondent said no any challenges. 19

Based on the result of the questionnaire, 19 respondents would rate the value of money that they have to spend on the Microsoft product-neutral, 17 respondents said good, 4 respondents said excellent,2 respondents said bad, 1 respondentsaid good Based on the result of the questionnaire, 13 respondents said the criteria of product they need from Microsoft is an affordable product, 12 respondents said free version products, 5 respondents said multi- purpose (one-solution for all) products, 4 respondents said more innovative products, 3 respondents said user-friendly products, 3 respondents said creative products design, 2 respondents said faster products, 1 respondent said more features in one product, so it’s easier to use 20

3.0 MARKETING MIX: XBOX 3.1 PRODUCT Product is defined as an association of goods and services offered by a company to the target market to fulfill the needs and wants of customers. Product from XBOX includes both physical products and services. 3.1.1 PRODUCT CLASSIFICATIONS XBOX products are classified as consumer products. Consumer products are goods and services final consumers purchase for personal consumption. Consumer products include convenience products, shopping products, specialty products, and unsought products. 3.1.1.1 SPECIALITY PRODUCTS Specialty products a type of consumer product with exclusive qualities or brand identification for a significant group of potential customers willing to put a special purchase effort. Considered as specialty products, XBOX had a little comparison of brands and low-price sensitivity as the buyers will willing to purchase and pay more for the XBOX products based on their financial ability as long as the products can satisfied them. The price of XBOX products is high, between RM 1 000 to RM 4 000. XBOX products had also provided exclusive distribution in certain outlets per market area, such as shopping mall and authentically distributor websites. 3.1.2 PRODUCT ATTRIBUTE Product attributes the features that the product will offer in terms of noticeable or unnoticeable. Product attribute includes product quality, product features, and product style and design. 3.1.2.1 PRODUCT QUALITY Product quality is the capability of a product to perform in its functions and compete among competitors in the perspective of durability, reliability, precision, ease of operation, and repair. XBOX video games console pays attention toto the product quality in delivering video games console that enables gamers to enjoy gaming experience through high video resolution, 720p, 1080p, and 1440p (XBOX Series S and X). 21

3.1.2.2 PRODUCT FEATURES Product features are a competitive tool for differentiating the company’s product from competitors’ products by developing higher-level models. XBOX tends to differentiate their products from their competitors, such as Sony Entertainment that introduced PSP, PSV, PlayStation, PS2, PS3, PS4, and PS5 in the customer's minds by introduced XBOX video games console that have features that support Windows PC hardware that enable gamers and developers to build and run their games in PC besides playing audio CD and DVD unlike video games console by Sony Entertainment that built-in customize hardware solutions. 3.1.3 BRANDING Branding is defined as a combination of name, term, sign, symbol, and design that purposed to recognize goods or services of one or a group of sellers and differentiate them from their competitors. Branding is essential to increase product value. XBOX using the logo in their products with the words “XBOX” and a round shape on the left of the word “XBOX” and at the same time, there is a “X” inside the round shape. Logo of XBOX from 1999 – 2021 22

3.1.4 PACKAGING The packaging is an idea of device and create a container or wrapper for a product. Besides containing and protecting the product, packaging also plays a critical role in attracting potential customers and improving customers' points of view through beautiful and practical packaging. XBOX package their XBOX video games console in an attractive hardcover box in order to protect their products from any physical damaging and dust during the time display and transportation. The colors for packaging the XBOX video games console are green, white, black. Figure 3: Xbox Packaging 3.1.5 PRODUCT LINE Product line described as a team of closely associated products due to their similar function, delivered to same customer groups, marketed through the identical types of outlet or fall within given price ranges. CCOoNnsSoOleLE GAMES SSEeRrvVicIeCsES SOFTWARE CONTROLLERS Xbox Games Xbox Live Software Controllers Video Games Xbox Family Set- Xbox Controller Xbox 360 Network Games Xbox Games tings App Xbox 360 Con- Xbox Store (Xbox Live troller One Marketplace) Xbox 360 Kinect Xbox Series X Xbox Smart- Xbox One Kinect and S Glass Xbox Series X Xbox Game and S Controller Pass Cloud Gaming Content filter Table 3 : Product Line 23

3.1.6 PRODUCT LIFE CYCLE ( PLC ) Product Life Cycle (PLC) is described as the course of a product’s sales and profits over its lifetime. The product life cycle, product life cycle consists of 6 steps: research and development, introduction, growth maturity, saturation, and decline stage. PLC STAGE PRODUCT CHARACTERISTICS Growth Xbox Game Pass ● Sales increasing from year to year ● Profits increase ● Wider distribution in handhelds and mobile phone PLC Stage Product Characteristics M aturity XXbbooxxgOanmee, Ss:eRrieessiXde, Snt Evil ● Increasing in research and development Research and De- ● ● CGaomntienpuolauyslyanidmnperowvetraaniledr aadrdenleawunched VSyilslategme fSoorfXtwboarxeSeries X velopment tofeaattturarecst amnodrpeeprfootremnatniaclecustomers ● No profit as the product is currently in Saturation Xbox Live development Introduction ● Brand awareness, customer service, and XboxFamily SettingsApp ● dPrifofedruenctisataiorne firneqfeuaetnutrlyesmreoqduifiereddtto Xbox Series S and X Xbox mfual-inftiallincuthsteopmroedruscstatinisftahcetimonarkanetd Mreqanuyireco- mmpeentittors Cloud Gaming ● Slow sales growth ● Decline Xbox ●● APrhicuegiesastmaboiuliznetdoafteloxpweensstes required Xbox 360 ● ttMhoeidcpirsortorsiobdfuuttccetodmaunpedantlaoyudinsesccuhidepes:srotomeolitmioinnattoe Xbox One ● aTte-cthrancitcaploptreonbtlieaml csustomers and Xbox X Xbox One S increase awareness amongthemarket Xbox 360 SmartGlass ● Rreigsainrdginofgntehweteexcihstneonlocegieosfotnheavpirdoedoucts gtharmouesghcosnoscoialel media, fairs, and exhibition Table 4 : Xbox Life Cycle 24

3.2 PROMOTION Promotion in the marketing mix includes advertising, public relations, and sales strategy. The purpose of promoting is to show consumers why they need the promoted product and why they should pay the certain price of the product to purchase them. By taking Microsoft Xbox 360 sales as an example, it can be seen that Microsoft conducted a multitude of promotional activities. Most Xbox advertisements are done through their websites which could be easily accessed by their players worldwide. Besides that, they also broadcasted globally several advertisements globally, leading to their product being widely known. The Xbox 360 was launched on MTV and then at the Electronic Entertainment Expo (E3) with fully detailed information about their product. This approach resulted in that their product successfully sold out upon release. Microsoft also uses other marketing strategies such as advertisements on magazines and banners, and they even do an online contest on their website with exciting rewards for their customers. Next, the Xbox logo itself is one of the promotional marketing strategies. The logo is very distinctive and never changing, which created a stronger brand recall. Not only that, but Xbox 360 also offered several online games that can be played by various individuals across the world, leading to a word of mouth marketing. All these promotional efforts helped keep Xbox sales going. This has concluded the whole Xbox marketing mix. 3.3 PLACE Every company needs to maximize its potential sales to increase sales for the company itself. In this marketing mix, the place is defined as a distribution channel that refers to the location wherea product is available and purchased through the online store or physical store. 3.3.1 ONLINE STORE The online store is where buyers and sellers meetvirtually, so they make transactions online. At first, people don’t like the idea of the online store because they can’t see the product in real life but only the picture of i. Still, as time goes by, some people don’t have time anymore to go to the shopping mall to buy things they want or need, and nowadays people tend to become lazy to go to the store and buy some products. 25

This opportunity is taken by Xbox company to market their products through the virtual or online store Xbox company makes its website to sell its software products that XBOX players need when they want to play a game with it. With regular traffic on its pages, Xbox company has a large number of online sales. The company make a cooperation with e-commerce or another online store such as Flipchart and Amazon, not only collaborate with another online store the corporation establishes a collaboration with several delivery service providers to provide timely deliveries to operate its online operations, so when the XBOX company has an enormous amount of buyer that buy a new product of it, the time taken from the corporation to the client won’t take too much time. 3.3.2 PHYSICAL STORE Physical store is a traditional shopping method where buyers and sellers meet in real life, or they meet face to face even though it’s a conventional method of shopping, people still trust this method to buy products because they can feel the unique experience when shopping in the physical store and physical store can assist customers in decision making so there’s no regret in the future. Xbox products over 500 retailers around the nation have their goods available. It follows an aggressive marketing strategy where it aims to provide as many retailers as possible with its products. This means that its goods in various parts of the world are readily available to customers. Not only retailers. 3.4 PRICE Price is the amount of money charged for a product or service. It is the sum of all the values that consumers give up to gain the benefits of having or using a product or service. 3.4.1 FACTORS AFFECT PRICE DECISIONS Price decision is a company or firm should consider all the cost include fixed and variable cost to produce the product. However, there are other internal and external factor affect the price decision. 26

3.4.1.1 INTERNAL FACTORS Microsoft uses a marketing mix strategy to promote their Xbox in the market. Price is not only a tools Microsoft use, the s to market their Xbox but also coordinated with place, promotion, and product. It can help to market their Xbox effectively. 3.4.1.2 EXTERNAL FACTORS Microsoft use competition strategies and prices for price decision. Competition is one of the important factors for price determination. Microsoft considers the price, value, and strength of competitors for price decisions. 3.4.2 PRICE STRATEGIES Microsoft uses a various pricing strategies such as cost-based pricing, customer value-based pricing, competition-based pricing, and more. Microsoft uses competition based-pricing for Xbox. Microsoft and Sony compete with each other to try to keep their brand which is Xbox and PlayStation, in the market. They advertise their product to stand out in quality and features. Microsoft strategized to release its Xbox 360 in 2005, earlier before the PlayStation 3, which is released in 2006. The Xbox 360 old model was sold at varying prices from RM 1212.86- RM 1940.60, depending on the internal memory size and variant. Along with priceMicrosoft always improve the quality and featuresof the product. For example, Xbox series S and Xbox Series X ,are more powerful and features than Xbox 360, which is released in November 2020 in the US. 3.4.3 NEW PRODUCT PRICING STRATEGIES Microsoft uses market-skimming pricing for Xbox. Price skimming is a pricing strategy in which a firm charges a high initial price and then gradually lowers the price to attract customers. Microsoft set Xbox 360 price less than the cost of making it. The Xbox One was priced higher than the PS4 when it was first released. Microsoft products often start at a high price and continue to decrease until the company finds the best price for the market. 27

3.4.4 PRODUCT MIX PRICING STRATEGIES Product bundle pricing occurs when two or more products and services are combined and priced together. Microsoft uses bundle pricing strategies for Xbox, which combines 19 games include Halo and Project Gotham Racing. Theadvantage of bundle pricing is consumers or customers prefer to buy products in the group. Microsoft uses optional product pricing that sells the base product with low price but sells complementary accessories at is optional product pricing that sells the base product with low price but sells complementary accessories at a high price. This strategic use by Microsoft to market their Xbox. 4.0 EXECUTIVE SUMMARY 4.1 MARKET FACTORS AND TRENDS Our company discovered that culture, marketing, media, technology, and economics would become the major factors in our market trend for the next 10 years. We will start to change our focus from public existence to personal social circles to gain private social trust among customers. Nowadays, tracking and targeting customers become the a challenge due to strict rules and regulations in the country. Hence, we tend to form a friendly platform that allows, us to track and target potential customers different from an advertisement that we did previously. We will combine live streaming services into TV and improve retail search. 4.2 PRODUCT AND SERVICES We’ve launched new services for our customers by introducing Microsoft Advertising Community to ensure marketers have a platform to deliver ideas, ask questions, and obtain information from peers besides provide supports through Microsoft Advertising Specialists. On top of that, we introduced our first wireless earbuds – Surface Earbuds that have 24-hour battery life with high expectation to sustain our place in the market dominated by Apple’s Air Pads. In conjunction with increases the house working, Microsoft introduced new Surface hardware – Surface Go2 and Surface Book 3 as PC usage is increasing and people spend more time at home under the pandemic Covid-19 lockdown. 28

4.3 CUSTOMER BASED AND MARKETING ACTIVITIES Our target market is large IT companies, including IT shops, manufacturers, resellers, and distributors. We do our marketing campaign through direct sales. We provide our products and services through OEM, which set up our software in their devices before resell; big global enterprises and organizations include public-sector institutions through Enterprise Agreements and Enterprise Services contracts, distributors and resellers, Internet service providers, application developers. 4.4 FINANCIAL PLANNING AND PROJECTIONS We earned USD 1 billion for the next four years in new technologies and innovation in the climate solutions. USD 50 million in AI for Earth to speed up innovation by giving AI in the hands of those workingto addresssustainabilitychallengesdirectly.WealsoofferUSD20 milliontoinvestin digital skills. 4.5 OBJECTIVES AND STRATEGIES In conjunction with the world responding to Covid-19, we will perform our responsibilities to ensure our employees' safety, seeking to protect the health and well-being of communities by operating and providing technology and resources to our customers to help them do their best work while remote. 29

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