Brand Synergy: Partnering with Windows Mobile. 2Windows Mobile Brand Synergy “At Microsoft, we believe that people fundamentally want to stay connected

Brand Synergy:Partnering with Windows Mobile

Windows Mobile Brand Synergy 2

“At Microsoft, we believe that people fundamentally want to stay connected with the information and people that matter to them. Our vision for Windows Mobile software is to empower people with new ways to improve their work, personal productivity, and access to entertainment while on the go, through familiar and rich interfaces. Whether it’s the mobile professional who needs to stay connected to the office, the college student wanting their music library at their fingertips, or the developer looking to build new and unique mobile applications, Windows Mobile provides the consistent experience and capabilities to exceed their needs.”

Pieter Knook Senior VP, Mobile and Embedded DevicesMicrosoft Corporation


When you partner with the Windows Mobile brand, the benefits are clear

Customer knowledgeThe wants and needs of mobile people are at the heart of our platform. As you will see throughout this document, we took the time to get the right insights, with a research program that spanned five years, hundreds of interviews, and the analysis of many major global markets. We did more than just get to know the people who rely on mobile devices – we designed our platform to meet their evolving needs.

Familiar experienceWhile the future of mobile devices may not be crystal clear, one thing is certain: they are more powerful and more software-driven than ever before. By adding Windows Mobile to your brand, we can both succeed while giving customers what they want: an all-in-one device that includes phone, e-mail, Web, messaging, and pocket versions of their most essential Microsoft applications – all on a platform that will automatically synchronize with their desktop PCs.

Measurable resultsOur research is clear: when our partners co-brand and integrate with Windows Mobile, they achieve higher returns. Regardless of whether the purchase is hardware or services, customers see Windows Mobile as a valuable asset, and are willing to pay more for its presence.

Long-term stabilityMarket volatility. Fickle customers. Relentless competition. These are just a few of the risks we all face, and that can be lessened by the right partnerships. In fact, successful partnerships benefit everyone – from customers to every key player in the ecosystem.


We immersed ourselves in the mobile market

In 1999, we launched a comprehensive, global research program focused on people who use mobile devices. Our goal? To truly understand the wants and needs of today’s mobile user. To hear their challenges. Identify their frustrations. And listen to their hopes for the future.

We wanted insights on people…• Who is most likely to use mobile devices and why?• What are their needs when they’re mobile?• Which segments offer the greatest opportunity for

smart devices?

We wanted feedback on technology…• What mobile device features and services are most

desired?• How do they want to use those features and

services?• How can our platform help them get what they need

both today and in the future?

We wanted a perspective on brands…• What brands do mobile users value?• What is their response to the Windows Mobile

brand?• Does the Windows Mobile brand add value to other

brands?


Our market opportunity? 270 million people…and growing

According to a recent McKinsey study, the number of people who rely on smart devices is growing dramatically. Their research states that by the year 2005 there will be approximately 270 million mobile device users who will have high data needs and be willing to pay as much as $225 for their device.

While our market opportunity is large, the people within this population vary greatly in terms of their goals and mobile activities. Therefore, our next step was to subdivide our target market into audience segments that shared common traits. Within this subset, we identified five audience segments whose needs can best be met by Windows Mobile-based smart devices.

These five targets, shown here, were chosen not only because they are likely to buy such devices, but also because the messages and value propositions developed for them have proven to resonate with a broader audience as well – allowing Windows Mobile and our partners to be well positioned for future growth.

These audiences tend to place a high value on the following four attributes:

Collaboration and Sharing: Calendar (Outlook), Web (Internet Explorer), Photos and Music, Video, TV (Windows Media® Player)

Communication: Phone, E-mail (Outlook, Hotmail®), Instant Messaging (MSN Messenger), SMS

Access to Information: Web (Internet Explorer), Files (Office System), Calendar and Address Book (Outlook)

Affinity to PC: Synchronized access to the desktop or server (Windows, Office System, Exchange Server, other applications)


Business ExecutivesStrategic managers with broad but specialized responsibilities. Typical positions are vice president or director; key goals and activities include boosting profitability, communicating strategies, managing growth and budgets, and influencing resource allocation.Communication – Very HighCollaboration and Sharing – Very High Access to Information – High Affinity to PC – High

Our market opportunity? 270 million people…and growing

AchieversPeople who seek success, recognition, and influence. Achievers are engaged in life and have many pursuits; in addition to success, they want to have fun and be entertained, and are independent, creative, and in control.Communication – Very HighCollaboration and Sharing – HighAccess to Information – High Affinity to PC – High

ConsultantsPeople who gather, analyze, and report information. Typical positions are analyst, accountant, or engineer; key goals and activities include collecting, recording, relating, and/or analyzing information.Very High in all categories

SocialsPeople who value being social and connected with others. Socials enjoy being with friends, being successful in school and in life, doing things for themselves, having fun, and constantly being on the go.Communication – Very HighCollaboration and Sharing – High Access to information – Moderate Affinity to PC – High

SalespeopleFocused on selling or meeting sales objectives. Typical position is sales representative; key goals and activities include making sales quotas, increasing sales, and customer satisfaction.Very High in all categories, EXCEPT: Affinity to PC – Moderate


Here’s what customers want…and how we responded

I want to keep up…I want to be responsive to customers and co-workers. I want to be within reach of family and friends.Windows Mobile allows you to send and receive phone calls, e-mail, and text messages when you’re on the go so you can stay in touch, do business, or share ideas.

…and slow downI don’t want to work every minute. I look forward to those in-between times when I can relax.Windows Mobile lets you listen to music and play video clips directly from your handset. Plus, removable storage cards make it easy to swap out and organize files.

I can’t always anticipate what I’ll need . . . I know I need access to my information, but I can’t predict the specific data or files I’ll want. Windows Mobile allows you to access the latest information, and automatically synchronizes anything new – like e-mail or appointments – between your devices, desktop, and server.

…but I’ll know it when I see itBeing able to access the Internet is so convenient – to get a quick fact or check on an event. Windows Mobile lets you search the Web or your company intranet now, so you can get the information you need – whether it’s a stock quote, a sports score, or driving directions.

I want a handset that looks good . . . I care about the look and feel of my device. I want a handset that reflects my personality.Windows Mobile is available on the best hardware from your favorite operator, so you can get the style and substance you want.

…and is as spontaneous as I amI’m constantly on the go. Seeing new places, but always sharing the experience with friends and family.Windows Mobile lets you capture pictures or video so you can record and share events as they happen.


I know and trust Microsoft…Our research, and that of others, shows that Microsoft is one of the strongest, most well-regarded brands in the world (Source: Interbrand, 2003). Millions of people look to Microsoft to provide their computing foundation, both at work and at play.

Here’s what customers told us about brands

I can trust Windows Mobile too…One of our research goals was to understand how Windows Mobile is perceived in the mobile devices market. We were happy to discover that the brand is viewed quite favorably. In fact, when paired with most offerings – from handsets to service plans – its presence increased perceived value. For instance:• Customers are willing to pay up to $40 more for a

handset with the Windows Mobile brand.• The Windows Mobile brand has proven it can

increase mobile operators’ market share when combined with industry- leading handsets.

• After price, the Windows Mobile brand and e-mail capability are the most powerful drivers of handset choice.

• The Windows Mobile brand increases demand for mobile operator services.

• The likelihood of purchasing music downloads increased up to 14%

• The likelihood of purchasing data services increased up to 20%

I know and trust Windows…Customers describe Windows® as “familiar and easy to use,” “a brand I trust,” and “a tool that helps me be more productive.” Windows is the most frequently mentioned brand among PC users, and consistently drives up the value of hardware and services.


Here’s what the industry is saying…

“What you need to know about the software is that somehow they’ve stuffed an amazing number of Pocket PC essentials into one very small cellular phone. There’s Pocket Outlook, Pocket Internet Explorer, Windows Media Player 9, MSN Messenger, and Active Sync for allowing the phone to become an active part of your desktop computer or your company’s server.”

Gary KrakowMSNBC

“The first two Windows Mobile-powered smart phones for the U.S. are finally here: the Samsung SCH-i600 ($499 with a two-year contract) available from Verizon Wireless and the Motorola MPx200 ($299) from AT&T Wireless. Our verdict: It was worth the wait.”

Mark SpoonauerLaptop Magazine

“Driven by the expanding demand for converged mobile devices, the worldwide smart handheld device market will experience greater than 50% growth in 2004. Throughout the end of the forecast period in 2008, converged mobile devices will continue to resonate with buyers interested in highly functional mobile telephony solutions, driving the smart handheld device markets in Western Europe and the United States beyond 49 million and 39 million units, respectively.”

Worldwide Smart Handheld Device 2004-2008 Forecast and Analysis IDC ReportApril 2004

“From 2003 to 2007, the EMEA mobile device market is likely to grow on average at over 60% per year.”

Chris JonesDirector and Sr. Analyst, Canalys


Device makers: Do you want to offer a leading platform?

Microsoft has partnered with hardware makers for as long as we’ve been in business. In turn, some of these same companies have come to appreciate the value that Windows Mobile offers in terms of its technology and its brand recognition. In short, Microsoft has a long history of creating successful partnerships with both small and large manufacturers all over the world.

Current partners:

“Our operator channel and enterprise customers demand robust mobile office solutions. Therefore, the Motorola family of products, built on the MOTOPro Innovation Platform, chose to partner with Windows Mobile software so we could deliver seamless connectivity to the office desktop with uncompromising design, features, and performance.”

Michael Tatelman Vice President and General Manager of MOTOPro Products, Motorola, Inc.

“HTC is very committed on the leading edge and innovative smart handheld products. We had been challenging ourselves and now achieving very compelling products. HTC‘s cutting-edge devices with Windows Mobile software succeed in helping operators to expand their wireless data business, improving users‘ mobility, and getting high recognition from customers.”

Peter ChouPresident, High Tech Computer Corp.

“The long and successful relationship between HP and Windows Mobile has helped us deliver products that win awards as well as the trust and respect of customers, positioning HP as the leader in personal mobile devices.”

Trey LiteliPAQ Consumer Product MarketingHewlett-Packard Company


Mobile operators: Are you looking to maximize services?

By choosing Windows Mobile, mobile operators realize powerful benefits. They add value to their offerings via a proven platform and powerful software. They improve their ability to deliver robust services, support, and applications to customers. And through these offerings, they are able to attract and maintain customers who, on average, yield more revenue.

Current partners:

“The aim at hand for U.S. providers shouldn’t be simply establishing connectivity or even grabbing the ever-shrinking number of potential subscribers. Rather, the U.S. wireless industry is dependent on its ability to advance the current infrastructure to support a deeper and more useful menu of services and products. Such gains will form the critical bedrock for encouraging use and driving margins higher, which will ensure the industry’s stability.”

Orange)

“Windows Mobile gives people the closest experience to what they have on their PCs. They are valuable partners.”

AT&T Wireless

“The joining of Microsoft in the CDMA value chain will help China Unicom in mobile data services.”

China Unicom Officials(Beijing Times, April 24, 2004)


Developers: Do you expect the best tools and support?

We provide a rich software platform, development tools, programs, and resources to help developers build and deliver innovative applications for Windows Mobile-based devices.

Microsoft’s Mobile2Market program, the largest developer program of its kind, helps ISVs build and market innovative applications quickly and with comprehensive technical and marketing support.

In the interest of all our partners, Microsoft also offers the Mobility Partner Advisory Council (MPAC), a unique program developed by Microsoft both to serve as a feedback mechanism for Microsoft mobility platform development and to provide support and tools to companies making significant investments and inroads in the mobility space. Established in February 2002, MPAC is thriving, with more than 70 partners.

Current partners:

“With our focus on creating great software solutions for mobile devices, Windows Mobile proves to be a great platform by allowing us to leverage our Windows development experience to target the Windows Mobile-based Pocket PC and Smartphone devices. The power and flexibility of the platform and development tools allow us to create very powerful solutions and also deliver to our customers a familiar feel with the user interface. Other key benefits to us in developing for Windows Mobile are that we can typically co-develop a lot of functionality for the desktop and easily move that to the Pocket PC and Smartphone when we are ready.”

John PsuikDeveloper One Mobile Software

“At Pharos, our goal is to empower people with real-time location-centric information via GPS/LBS technology and wireless Internet innovation. It only makes sense that we would want to partner with Windows Mobile, the software that keeps people connected to important information whenever and wherever they are. By aligning the Pharos and Windows Mobile brands, our customers are assured of high quality, reliability, and innovation as we bring these unique products and services to market.”

James Oyang, Ph.D.President, Pharos Science & Applications, Inc.


Our brands

Better togetherTogether, we have a tremendous opportunity to marry compelling software and services with innovative devices and reliable networks, to improve customer satisfaction, to win new markets, and to increase revenues.

Partnering with Windows Mobile offers a wide range of potential benefits, including:• Attract new, high-yield customers• Capitalize on a significant growth market• Answer customer needs for useful and familiar

applications• Sell more sophisticated hardware and services

For more information, please visit www.microsoft.com/windowsmobile


Stefan DelmarcoSales Representative, Contoso, Inc.

David HamiltonCEO, Contoso, Inc. an athletic footwear company

Roya AsbariDemand Planner, Contoso, Inc.

Follow the journey of three mobile people who exemplify our research participants – individuals who rely on mobile devices to make the most of their time, both personally and professionally.

The example companies, organizations, products, domain names, e-mail addresses, logos, people, places, and events depicted herein are fictitious. No association with any real company, organization, product, domain name, e-mail address, logo, person, place, or event is intended or should be inferred.


David HamiltonCEO, Contoso, Inc. an athletic footwear company

Location: Washington Dulles International Airport, Washington D.C.

Checks voice mail and e-mail (via Outlook®) upon return from Taiwan. Receives e-mail from Roya Asbari, a Contoso Demand Planner who is still in Taiwan, with material cost estimates. Approves purchase with an e-mail reply, and asks for a revised budget. Checks schedule and heads to the office.


Location: Washington

Receives call from Roya. Communicates his positive outlook on sales. Downloads and updates the budget/Excel file before sending it to David. Uses Outlook to schedule an in-person meeting with Roya and David.


Location: Wide World Importers, Taiwan

Receives e-mail approval from David. Forwards his budget request to Stefan Delmarco, a Contoso sales rep. Attaches her most recent version, an Excel file. Calls Stefan. Discusses higher material costs and sales estimates.

Johnfriend of Stefan

Location: Baltimore, Maryland

Uses Outlook and MSN® Media Player to e-mail Stefan a video clip from a recent mountain bike trip. Asks Stefan when he’s free to ride again.


David HamiltonCEO, Contoso, Inc.

Location: Taxi, Washington D.C.

Receives e-mail and updated budget/Excel file from Stefan via Outlook. Opens the file and quickly reviews the numbers. Receives and accepts Stefan’s meeting request. Finds a business card in his pocket and enters that person’s data into his Outlook contacts, and then synchronizes the new information with his desktop computer.


Location: Metrorail, Washington, D.C.

Receives a call from David, who has a change of plans and will be out of town for the meeting with Stefan and Roya. After the call, Stefan e-mails a dial-up conference call number to both David and Roya. Before his stop, Stefan sends a text message to his friend John: “can ride sat, call u ltr.”


Location: Fairfax, Virginia

En route to meet a new vendor, Roya realizes she’s left driving directions at the office. She calls the vendor, but can’t get through. Using Internet Explorer, she logs on and gets directions via the Web. On her way, she calls Michael, her boyfriend, to let him know she’s running late but can meet him at 7 pm.

Michaelgraduate student

Location: Georgetown University, Washington, D.C.

While walking and listening to music via Windows Media Player, Michael receives Roya’s call. He phones a nearby restaurant to make a dinner reservation.


David HamiltonCEO, Contoso, Inc.

Location: Hotel lobby, Boston, Massachusetts

Checks Outlook for conference call dial-up number. Calls in and talks with Stefan and Roya. The three make several critical decisions about the fall line of shoes. David gives Roya the go-ahead to make several major material purchases and move into production.


Location: Restaurant, Washington, D.C.

After closing a deal with a new partner, Stefan quickly revises the earlier budget in Excel and resends it to Roya and David. Makes a few phone calls and checks his schedule and e-mail inbox.

Location: Contoso Board of Directors meeting, Washington, D.C.

Sees Stefan’s e-mail and updated budget forecast. Reports this information to the board, prompting a board decision to pursue additional geographical markets.


Location: Fourth Coffee Café, Washington, D.C.

After the conference call with David and Stefan, Roya calls three of her vendors and places orders. With one, she learns that her quick decision ensured Contoso will get the very last of a much-needed fabric. Roya e-mails David and Stefan the good news.


Research Bibliography

Cheskin, “Microsoft Mobile Entertainment Report,” December 2003

MSI International, “Windows Mobile Brand Value Report,” December 2003

Millward Brown IntelliQuest, “Windows Mobile Pre Wave Topline,” December 2003

Marketing & Planning Systems, “Microsoft Brand Equity Tracking,” November 2003

www.microsoft.com/windowsmobile

©2004 Microsoft Corporation. All rights reserved. Microsoft, Windows and Windows Mobile are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. Other brands and names are property of their respective owners.

Cheskin, “Microsoft Mobile Messaging Report,” April 2003

MSI International, “Mobile Personal Segmentation,” July 2002

Cheskin, “Mobile Personal Exploration and Profile,” 2001

MSI International, “Mobile Worker Segmentation,” 1999

Cheskin, “Mobile Worker Exploration and Profile,” 1989

Documents

Brand Synergy: Partnering with Windows Mobile. 2Windows Mobile Brand Synergy “At Microsoft, we believe that people fundamentally want to stay connected