Blog
Microsoft's $300M Mistake?
By Scott, Wednesday, 05 November 2008
Last week, Apple released another of the infamous Mac vs. PC ads; this one, entitled "Bean Counter" pokes fun at Microsoft's $300M attempt to rescue its image. Microsoft needs to do something... Apple's year-over-year computer shipments are up 29.4%, far outpacing the industry average of 4.6% (representing Windows-based products). In fact, one in three dollars spent on new computers is spent on Apple products—a trend that doesn't bode well for Microsoft in the long-term.
The $300M "I'm a PC" campaign seems to be based on two premises: 1. Microsoft is a highly desirable lifestyle (just like Apple), and 2. A majority of people have adopted this PC lifestyle. The former is a stretch; the latter is certainly true. There are a couple of problems with this approach, though. First, with regard to the lifestyle label, Microsoft is trying in vain to beat Apple at their own game (even going so far as to mimic elements of Apple's advertising). Second, the fact that a majority of people use PC's is not a convincing sales proposition. Apple has succeeded by telling people why their product is better—not by citing market share or flaunting sales statistics.
For years, Microsoft has rested on its market share while Apple has innovated its way to the front of the pack with better products, leveraging the popularity of the iPod and iPhone to sell computers. But it's not just computers Apple is selling. Ultimately, Apple has succeeded by selling an experience—from user-friendly software to aesthetically appealing hardware to award-winning retail stores. The Apple experience gives substance to the company's marketing efforts, which is why PC users are flocking to Apple.
Microsoft would do well to heed the underlying criticism of Apple's "Bean Counter" ad: Invest heavily in the development of products that people want, that are a pleasure to use, and that enrich people's lives. When you've done the hard work of innovation, marketing your product is easier (and a lot less expensive).