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P O P HELPS MICROSOFT LAUNCH A HIT

CORONADO, Calif. -- Microsoft used detailed planning, logistics and in-store execution to achieve unprecedented point-of-purchase execution rates for its huge Windows 95 product launch."We had a better than 90% in-store setup rate, covering a total of 10,000 outlets," said Rebecca Kotch, merchandising manager of the U.S. field group for Microsoft Corp., Seattle.Kotch described the key role POP played

CORONADO, Calif. -- Microsoft used detailed planning, logistics and in-store execution to achieve unprecedented point-of-purchase execution rates for its huge Windows 95 product launch.

"We had a better than 90% in-store setup rate, covering a total of 10,000 outlets," said Rebecca Kotch, merchandising manager of the U.S. field group for Microsoft Corp., Seattle.

Kotch described the key role POP played in the Windows 95 launch in a presentation at the Englewood, N.J.-based Point-of-Purchase Advertising Institute Annual Industry Conference here last month. The program was her first major assignment for the company after joining Microsoft 18 months ago.

She added that the Windows 95 displays were erected in club stores, computer stores and mass merchants. A total of 23,000 floor stands and 6,000 pallet displays were placed.

To help ensure that the displays were properly erected, Microsoft employed a third-party merchandising firm, Marketing Force, to execute many in-store setups, Kotch added.

With high demand forecast for the autumn 1995 rollout of the 32-bit computer operating system and associated software applications, she said, "We needed a strategy to provide additional off-shelf display."

Despite Microsoft's powerful position in the computer software category, its prior record in this area had not been good, she said.

"Retail audits showed our track record was that 39% of POP actually got set up in stores. Many retailers discourage vendor-supplied POP. Stores are cluttered. Much is poor quality," she said.

"Our quality was marginal," she added. "I said we had to improve quality and perceived value."

The Windows 95 marketing budget was weighted more heavily toward media advertising and training than in-store merchandising, which created some "pull momentum," Kotch said. In addition, 10 million demo diskettes were handed out to consumers in free trial promotions beginning Aug. 24, 30 days prior to the actual launch. The company also mounted a 22-city tour.

"We wanted to leverage the advertising, but our creative had to be done six months prior to the launch. The ad campaigns were far from ready. So we leveraged the package imagery -- clouds and the Windows flag."

Microsoft distributed a total of 1,200 prelaunch kits for Windows 95, and performed 1.2 million product demos. A separate kit was developed for the launch itself -- a total of 1,600 of these were shipped.

Among the most widely used Windows 95 POP items in-store was an oversized replica box. "It was used everywhere. It was designed to meet the United Parcel Service maximum dimension guidelines [130 total inches]," she said.

Also popular, and definitely considered "stealable" due to its innovative design, was a pyramid-shaped counter card.

Microsoft called upon POP agency Henschel-Steinau, Englewood, N.J., to do the design work, manufacturing and distribution on the displays. James Cusimano, senior vice president of the firm, said the company chose an "off-pack" manufacturing strategy, in which the display units and the products were made separately, then staged and shipped at a third-party facility.

Said Cusimano, "The floorstands had a very small footprint, so they could go into a lot of different locations in a store. They also proved very durable -- some materials were still up through Jan. 1.

Kotch said that the floorstands were mostly intended for smaller retailers, while the pallet displays, which held 392 units, were intended for electronics superstores and clubs. The units employed clear acrylic strips to secure the packages without covering the package copy.

She called the total outcome of the POP effort "amazing." In addition to the high rates of execution and durability of the displays, the retailer feedback was very positive.

"We did follow-up focus groups in four cities, talking with the store staffs. The POP displays got the highest marks."