CHANNEL PRICING & PROMOTION STRATEGY

OPPORTUNITY

Sales of Microsoft’s Surface computers have not met expectations.  Accordingly, research was requested to guide development of a new, retailer-specific, pricing and promotions strategy for the brand and its line of laptops and tablets.

METHODOLOGY

DMG conducted an online study among n=2,000 adults, who have purchased a new laptop/tablet computer within the past 12 months.  DMG developed a Discrete Choice Model to assess Microsoft Surface’s  competitive set, key consumer profiles, and pricing and promotion thresholds. DMG also measured the strength of the Surface brand’s equity across a range of customer segments and retail channels.

IMPACT

The study provided Microsoft with an in-depth understanding of the value of the Surface brand and specific pricing strategies to achieve dramatic growth against core competitive brands, by retail channel.  Estimates of share growth and sources of volume were calculated across multiple retail scenarios.