Microsoft Surface Retail strategy in Australia is broken.

If you walk into a retail store such as Harvey Norman, Dick Smith or JB HIFI in Australia with the sole intent on buying a Microsoft Surface then you will be probably shocked to learn that it is likely to be buried amongst the “laptop meets tablet” mutations.

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The Surface Tablet is hidden amongst an array of competing brands that are usually higher in price whilst being presented as a “laptop” in its initial resting “display” setting. Is there an attempt to highlight its form factor? No and more to the point there is absolutely no attempt to profile the branding of “Microsoft Surface” other than a strange font, which is 10%, compared to the price tag that is clearly the most important focal point.

To me the entire Microsoft Surface marketing campaign in Australia seems to be a broken situation whereby it appears Microsoft Australia are clearly metric / goaled around “impressions” and less about “conversions”. I say that as if the two metrics were linked then getting people into the “stores” would be 30% of the battle as once they are in, soliciting the potential consumers into a purchase would be where the real energy needed to be spent.

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Today, in these same stores if you were to walk in and buy an Apple product you would immediately notice that they are separated from the horde of random brands but all accessories that are officially owned by Apple’s brand machine are also within reach. That is to say they are clearly spending a small sum of their retail channel delivery budget(s) on ensuring that resellers such as these brands are retaining the brand(s) needs (Meyer’s in Australia also acts as a conduit to Apple’s branding).

However, why should Microsoft spend on securing the Microsoft Surface segregation?

Microsoft should and needs to put pressure on retail chains like this to have Microsoft Surface separated from the horde for the following reasons.

  • Price pressure. Clearly, the other brands are opting for the Microsoft Surface Pro approach to tablet & Windows 8 bundling with a high “laptop-centric” price tag attached. That’s fine but in reality if Microsoft wants to invoke change in the OEM channels around price and industrial design then having the beacon of example (Surface) separated ensures that these guys have to compete harder to win hearts/minds more. If Microsoft can put pressure on price models with a “lead by example” model, they can in turn regain some much lost control over this entire cluster f***k of tablet/laptop sales pipeline.
  • Differentiation. Right now, the whole Surface RT in Australia is all you can buy so there is minimal confusion around what the brand “Microsoft Surface” represents. It is only after you introduce Microsoft Surface Pro into the mix that the confusion will start to fester, especially when retail chains like the one mentioned seemed to be preoccupied with price. Having a clear definitive marquee / in-store controlled visualizations of the matrix would help clear up potential buyer’s remorse going forward.Furthermore it would again encourage put pressure on other OEM providers to consider the RT route but I highly doubt that will occur given the current failings of RT today (perception and execution wise).

In Summary, the question in the room still remains unanswered, why did Microsoft enter the tablet space as a hardware provider & not just software. I have read and heard multiple accounts as to why, to which me distills down into simply the “lead by example” formula.

If Microsoft wishes to lead by example then they need to in my opinion work harder to continue to put pressure on hardware brands like Dell, HP, ASUS, and Samsung etc. in a way that forces the consumer to start to consider an actual comparison between the brands and Microsoft’s “best of breed”.

In doing this they would also start to build some muscle & discipline in helping hardware companies focus more on the industrial design of the said device(s) as opposed to just re-using patterns they have formed whilst making Laptops (i.e. look at Android’s screen resolution issues to date and avoid that from spilling over into Windows).

Simply put, I think the overall marketing / delivery service that’s in play today puts strong indicators around the fact that not only is Microsoft lacking hardware leadership they are really living and likely to die by their previous Zune strategies (Good idea, just badly executed).