Microsoft pushes Win XP harder in the market

Windows XP is enjoying an unprecedented marketing campaign to make sure it gathers the market share on an accelerated pace. The new campaign is trying to entice the 'lucky' ones to win a Fiat Palio, home theater systems, DVD players, Swatches and many more goodies.

The Win XP Professional comes with gifts such as Beetal sleek personal phone, HP 656C DeskJet printer, Casio PVS 250 pocket viewer or a Compaq iPAQ 3760 pocket PC. The Home edition has goodies ranging from Fabmart gift certificates to Swatch watch or a Casio pocket viewer or a Sony music system and even a Fiat Palio. All these freebies are targeted at multifolding the market acceptance of the not so popular Win XP.

Meanwhile, distributors have decided to play on a single dealer transfer price, result of this is the escalated price tag (four to five percent depending on the edition). Distributors have attributed this price escalation to the dollar exchange price increase and to bring some stability in the volatile market. This move has further weakened the already feeble market share of Win XP.

This is repelling customers as per the channel partners, as they cannot justify this price increase.

In addition, channel partners are not at all happy about the licensing policy of Microsoft and in fact few have backed out of such license sales. One such example is BPB Multimedia, which thinks that such activities just bring grievances from customers. Technical experts' feel that Win XP does not carry the value for money proposition, it comes with few frills attached rather than the technically strong features.

The channel is not enthusiastic about the success of the product; rather it is marginally optimistic about it. There are a lot of factors which are affecting Win XP sales, reasons range from low market sentiments to low acceptance of the product in the price sensitive Indian market, as per them.

The recent marketing campaign is the reminder of the stagnant market share Win XP is enjoying in the market, which it needs to expand as soon as possible. The retail segment is yet to pick up for an expensive commodity like Win XP. The corporate and the government sectors are yet to spend freely and the SOHO and SME segments are non-existing in the present circumstances.

Channel partners think that this is not a product for Indian target audience, with not much of value addition, few takers are there. The push strategy is the only strategy that might work well for Microsoft; there is no pull in the market as per the channels.

Vipul Dutta, Director, Futuresoft, said, "We are doing business and still continuing with the Win XP, this shows that it is doing good enough in the market." But sentiments seem to be not as upbeat as the Win 95 achieved; single attributer for this is the present recession, as per him.

Most of the channel partners feel that the market will pick up and so will the sales of Win XP.

Ashish Aggarwal, Director, Trifin Technologies, said, "Well the market has already accepted the product, it just needs to get into the required momentum. Every product goes through its lifecycle and so is Win XP, home segment is already preferring Win XP to Win ME/2000 editions. But the recent ad campaign seems to have had no effect on the sales."

Some feel that this product is not as technically strong as other comparative products, it comes with frills attached. Ravinath Raj, Business Manager, Sonata, a leading Microsoft distributor, said, "Yes it is a truth that Win XP has not been able to gather the same attention as its predecessors did, but the market sentiments are the major factor. Surely the market needs to be educated more about this product. I am sure this product will gain the required acceptance in the market."

Channel is attributing the present sales figures to the bulk sales, OEM packs and feels that home segment sales are negligent for Win XP.

As per Microsoft, this is a regular marketing campaign that they do every quarter end and the JFM being a crucial quarter they have done such a major promo. Karthik Padmanabhan, Senior Marketing Manager, Microsoft Corporation (India), said, "Well this promo has been able to give us the required momentum in the market, in fact we have overshot our sales estimates by 20 percent."

Commenting on the impetus given to the Home edition, he felt that this is the peak season for home segment to buy commodities. "Indian market now is as tech-savvy as the western world is and I do feel that Win XP is exactly the kind of product that the users would be looking for. It is a technically stable and advanced product."

With huge marketing budgets, Microsoft in the past has been able to create the required momentum in the market for its
products, but what's left to be seen is that how soon Win XP gains acceptance in the already dull market. 

Shweta Khanna

New Delhi