Think About This The Next Time You Pooh-Pooh A Promotional Coffee Mug
Note: This article was originally published by Imprint Magazine (now out of publication) in September 2004
Computer giant Microsoft Corp. ran a campaign that pitted it against its arch rival, Oracle Corp. The contest took place in Las Vegas and a promotional product held the spotlight.
Microsoft and Oracle were used to tussling with each other. Oracle had been touting the price, speed and quality of the products it markets in the database market.
The way a coffee mug got to be in the center of the dust-up was a combination of accident and inspiration. Frank Shaw, senior vice president of Microsoft’s PR firm, had been meeting with Microsoft officials.
He recalled, “One of them said, ‘One of the things that I’ve noticed is that when we go in and we talk to customers, even if we don’t end up getting the order, we save the customer money because we’ll give them a coffee mug or something else with the logo on it. The next time the Oracle sales guy’s in there, he sees the mug, he knows they ’re going to have to compete and [they] drop their prices.’”
Shaw thought it over. “Two days later, ” he said, “I literally woke up in the middle of the night and felt ‘There’s an idea here.’ A standard installation for a company for a database product would be something like $5 million on average. If Microsoft could actually do it for a 20% discount from what Oracle was charging, that’s a million-dollar mug.”
And so the seven-figure ceramic piece was born. Microsoft put its logo in black on one side. On the reverse side, in blue ink, were the words:
“Instructions for usage:
1. Place mug prominently on your desk.
2. When Oracle salesman pitches $5 million of overpriced software, glance down at mug.
3. Oracle salesman spots mug, offers 20% discount.
4. Skip steps 2 and 3 and call Microsoft instead. Save millions and get the industry’s highest performance enterprise solution – with no bitter aftertaste!”
The mug also directed recipients to a Web site designed for the promotion.
The Tactic
Microsoft chose the biggest computer show of all, Comdex, held in Las Vegas. Oracle had a large presence there, and CEO Larry Ellison gave a keynote address. Microsoft ordered 2,000 mugs and had temps give them to people going to the keynote.
The real brilliance, however came in the distribution. Microsoft chose the biggest computer show of all, Comdex, held in Las Vegas. Oracle had a large presence there, and CEO Larry Ellison gave a keynote address. Microsoft ordered 2,000 mugs and had temps give them to people going to the keynote.
After being tossed by security the temps stood outside and handed mugs to people getting out of cabs. One of the mugs even made its way to Ellison, who brandished – and denounced – it from his podium.
Shaw reported the promotion generated over a million dollars worth of free publicity. It was picked up by trade journals, Wall Street Journal and New York Times. He even saw articles in publications as far away as London. Since Comdex, Microsoft ordered an additional 10,000 mugs to give out during sales calls.
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