The ads by Microsoft Corp. ( (NASDAQ: MSFT, HKEX: 4338) include a wide range of configuration choices available for the buyers. The web ads show different combinations available for a certain sum of money by spinning a slot machine.
The point which Microsoft wants to convey to the people in a cash-strived economy is that ‘PCs are cheaper’ option than Macs. However, there is neither any mention of why the generic PCs are cheaper than Macs nor any reference to software expenses. Nonetheless, there seems to be a ready market available for cheaper PCs, at least for now.
Created by Microsoft’s ad agency, Crispin Porter + Bogusky, the first ad in the new campaign shows a woman named Lauren who is seen at a Los Angeles Apple retail outlet. Lauren is looking for a notebook with “speed, a comfortable keyboard and a 17-inch screen” for $1,000 or less. However, she is disappointed because she is unable to find any system except a 13-in screen MacBook by Apple Inc.
“I would have to double my budget, which isn't feasible,” quips Lauren. “I’m just not cool enough to be a Mac person,” exclaims Lauren.
However, she finally settles for a Pavilion DV7-1245DX, for $699 by Hewlett-Packard Co. “This one has all my qualifications. I’m gonna buy this one,” says Lauren. “I got everything for under $1,000!” says a delighted Lauren.
“This is effective advertisement, and I haven't seen many effective advertisements from Microsoft,” feels Ezra Gottheil, an analyst at Technology Business Inc
What appears to be strikingly surprising is that Apple partners feel the ads by Microsoft are likely to benefit Apple more than Microsoft.
“It certainly looks like a lazy campaign in which the primary focus is on price instead of value. Despite the challenging economy, consumers want value, and that's where Microsoft could be hurt in this,” feels Brian Georges, co-owner of MacMedia, an Avondale, Ariz.-based Apple reseller.
“Many PC users have fallen for the 'big spec sheet, low price’ trap, and these ads totally bring Apple into the conversation when computer users are making their purchasing decision,” echoes John Strikwerda, retail manager at Carbon Computing, a Kitchener, Ontario-based Apple reseller.
“Microsoft is drawing out this comparison, but what ends up happening is the ads highlight the value that Macs bring to the table even more,” states Michael Oh, president and founder of Tech Superpowers, a Boston-based Apple partner.
Microsoft’s ad campaigns focused on cheaper hardware are coming at a time to keep its cash registers ringing especially when it had not fared well in marketing its hardware devices. Moreover, the company had failed to make any mark in the market with its MP3 players.
Meanwhile, Gottheil, an analyst at Technology Business Inc. who covers Apple Inc. feels that ads are going to do wonders.
“For sure, Apple has erected a number of barriers at the lowest prices. Microsoft's picked Apple's weakest point to attack,” claimed Gottheil.
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