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Marketing Management

Marketing plan of Mozilla Corporation

Firefox

Project team members:

Riccardo Bettinelli

Gim Chuan Goh

Agnieszka Czecior

Jakob Marovt

Carolina K. Ruggiero

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Table of Contents

Companys profile ........................................................................................................................... 4

Mission ............................................................................................................................................ 4

Our focus ......................................................................................................................................... 5

Opportunities/Issue Analysis - PEEST analysis ................................................................................ 6

Technology - New technologies ......................................................................................... 6

Social - Lifestyle changes ................................................................................................... 6

Political - Monopoly control .............................................................................................. 8

Conclusion .......................................................................................................................... 8

SWOT analysis ................................................................................................................................. 9

Strengths ............................................................................................................................. 9

Weaknesses......................................................................................................................... 9

Opportunities .................................................................................................................... 10

Threats .............................................................................................................................. 10

Conclusion ........................................................................................................................ 11

Research Proposal .........................................................................................................................11

Increase of market share ................................................................................................... 12

Mobile Platform................................................................................................................ 14

Conclusion ........................................................................................................................ 15

Porter`s five forces anlysis ............................................................................................................16

Threat of new entrants ...................................................................................................... 16

Power of costumers .......................................................................................................... 17

Competitive rivalry........................................................................................................... 17

Substitutes&suppliers ....................................................................................................... 18

Conclusion ........................................................................................................................ 18

Market segmentation ...................................................................................................................19

Conclusion ........................................................................................................................ 20

Marketing mix ...............................................................................................................................21

Product.............................................................................................................................. 22

Placement ......................................................................................................................... 22

Promotion ......................................................................................................................... 23

Conclusions ...................................................................................................................... 24

References ....................................................................................................................................25

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Appendix .......................................................................................................................................26

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Companys profile

Mozilla organization is a global community of thousands who sincerely believe in the power

of technology to enrich peoples lives. Were a public benefit organization dedicated not to

making money but to improving the way people everywhere experience the Internet. At the

same time, were anopen source software project whose code has been used as a platform for

some of the Internets most innovative projects.

Mozillas technology and products belong to everyone. Not only are our products freely

available, but also our entire code base is a shared public resource. Many other projects use

Mozilla technology as the foundation for their own products, both free and commercial.

In the end, the Mozilla community, organization and technology are all focused on a single

goal: making the Internet better for everyone.

The Firefox project began as an experimental branch of the Mozilla project by Dave Hyatt,Joe Hewitt and Blake Ross. They believed the commercial requirements ofNetscape's spon-sorship and developer-driven feature creep compromised the utility of the Mozilla browser.To combat what they saw as the Mozilla Suite's software bloat, they created a stand-alonebrowser, with which they intended to replace the Mozilla Suite. On April 3, 2003, the MozillaOrganization announced that they planned to change their focus from the Mozilla Suite to

Firefox and Thunderbird.

The Firefox project has undergone several name changes. Originally titled Phoenix, it wasrenamed because of trademark problems with Phoenix Technologies. The replacement name,Firebird, provoked an intense response from the Firebird free database software project. Inresponse, the Mozilla Foundation stated that the browser should always bear the name Mozil-la Firebird to avoid confusion with the database software. After further pressure from the da-tabase server's development community, on February 9, 2004, Mozilla Firebird becameMozilla Firefox often referred to as simply Firefox. Mozilla prefers that Firefox be abbreviat-ed as Fx or fx, though it is often abbreviated as FF. The Firefox project went through manyversions before version 1.0 was released on November 9, 2004.

Mission

To develop, deploy and promote:

Free Mozilla software; Mozillas by-product; Mozillas related projects.

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To articulate a vision for the Internet that Mozilla participants want the Mozilla Foundation to

pursue.

To make Mozillas contributors proud of our achievement.

Providing a framework for people to improve the current internet.

Reaching out to people with and without technical background.

Our focus

We have decided to focus on Mozilla Firefoxfree, open-source internet browser. The

browser has been engaged in a big marketing battle alongside its main competitors (Mi-

crosoft`s Internet Explorer, Apple`s Safari, Google`s Chrome and Opera).

We will try to provide an extensive marketing plan to further spread the word about this great

internet browser and eventually try to overcome our main competitors. Also our big aim is to

point out Firefox`s unique features and consequently broaden its influence, gain even more

publicity, develop and enable unique user features that will make our browser even more out-

standing.

Our additional focus will be on entering new markets (e.g. mobile platform). We will try to

find out which are the most popular mobile platforms and what types of features of desktop

browser users would like to use on mobile phones.

The final thing that we will focus on will be the environmental impact on our future success:

political aspect, lifestyle changes, possible alliances with OEM manufacturers and dependen-

cy on our big B2B customers (e.g. Google).

Global browser market share

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Opportunities/Issue Analysis - PEEST analysis

PEEST analysis is a simple, useful and widely used tool that helps you understand the "big

picture" of your Political, Economic, Socio-Cultural and Technological environment. As such,

it is used by business leaders worldwide to build their vision of the future.

Technology - New technologiesWe cannot live a day without computers. A few hours without mobile and internet is hard to

go by for some and we can see the reliance of man on computers. Not only so, we can see the

craze when a new IT product is launched and people will spend hours or even days waiting in

the queue just to be the first to witness its ability. This can be seen from the iPhone launched

in Hong Kong and Playstation 3 in Japan whereby some gamers at the back of the queue were

turned away even before the shop open due to limited stocks. Also, online web browsing has

invaded the mobile phones sector. More consumers are using their mobile phone as an alter-

native to computer for performing internet activity. From these, we can see that internet is so

important nowadays that people requires it on-the-go. This is surely one of the new possible

emerging markets with unlimited prospect. Mozilla is currently in progress for this new

challenge and a mobile platform browser is in development.

Mozilla seeks to get ahead of others, be a leader and innovator in the aspect of providing bet-

ter online services. What makes Mozilla proud is the open source community that allows de-

velopers from all over the world, whoever they are to participate in the development. The

Mozilla Developer Centre (MDC), started in early 2005, is the official Mozilla Foundation

website for development documentation and news about Firefox, Thunderbird, and other

Mozilla Foundation projects.

Mozilla and our developers see the need for constant upgrading. On average, a major version

release is done annually and a minor one almost daily. In comparison to our competitors, the

frequency is much slower. From year 2006 to 2007, Research and Development (R&D) ex-

penses nearly doubled from 11 million to 20 million. This inevitably shows the importance of

new technologies from Mozilla`s point of view.

Social - Lifestyle changes

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Media advertisement growth

Social factors include the cultural aspects and include health consciousness, population

growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors

affect the demand for a company's products and how that company operates. For example, an

ageing population may imply a smaller and less-

willing workforce. Furthermore, companies may

change various management strategies to adapt to the-

se social trends.

Consumers are increasingly calling the shots in todays

converged media environment. They use Apple iPods

to make their own music playlists. Personal video re-

corders allow them to customize television line-ups.

Satellite radios pump commercial-free music into their

cars. They come together in online communities, gen-

erate their own content, mix it, and share it on a grow-

ing number of social networks. No longer a captive,

mass media audience, todays media consumer is unique, demanding, and engaged. Content

and services are overflowing, while consumer time and attention remain limited. A new ap-

proach that helps consumers maximize their limited time and attention to create a rich, per-sonalized, and social media environment is needed. PricewaterhouseCoopers calls this ap-

proach lifestyle media. (As illustrated in a 2006

report: The rise of lifestyle media)

It is the combination of a person-

alized media experience with a

social context for participation.

At the same time, we see that ad-

vertising budgets will continue to

be shifted out of television, news-

papers, and magazines into inter-

net advertising. The convention

way of marketing will be abol-

ished as convergence towards IT

and internet takes effect in the

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near future.

Political - Monopoly controlPolitical factor is defined as to what degree a government intervenes in the economy. Specifi-

cally, political factors include areas such as tax policy, labour law, environmental law, traderestrictions, tariffs, and political stability. Political factors may also include goods and ser-

vices which the government wants to provide or be provided and those that the government

does not want to be provided. Furthermore, governments have great influence on the health,

education, and infrastructure of a nation.

The United States Department of Justice filled civil actions against Microsoft in 1998, alleged

that Microsoft abused monopoly power in its handling of operating system sales and web

browser sales. Underlying these disputes were questions over whether Microsoft altered or

manipulated its application programming interfaces to favour Internet Explorer over third

party web browsers.

Many of the tactics Microsoft employed have also harmed consumers indirectly by unjustifi-

ably distorting competition. Consumers were prevented from having more choices and inno-

vation. Judge further concluded that Microsoft made it difficult for PC manufacturers to offer

Netscape Communications' rival Navigator browser preinstalled on PCs as they left the facto-

ry.

In January 2009 the European Commission confirmed that it had sent a statement of objec-

tions to Microsoft about the tying of Internet Explorer to the Windows operating system,

which it said "harms competition between web browsers, undermines product innovation and

ultimately reduces consumer choice. Mozilla's Mitchell Baker weighed in, saying, "Mi-

crosoft's business practices have fundamentally diminished competition, choice and innova-

tion in how people access the Internet."

ConclusionWe have deduced that the most important factors affecting the Mozilla cooperation are the

constant changes to technology (Technological), lifestyle changes (Social) and monopoly

status of IE (Political). The IT industry is sensitive to changes around it and through greater

understanding of each component in PEEST, Mozilla will be able to progress in the right di-

rection.

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SWOT analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities and Threats involved in a project or in a business venture.

Strengths: attributes of the organization that are helpful to achieving the objective Weaknesses: attributes of the organization that are harmful to achieving the objective Opportunities: external conditions that are helpful to achieving the objective Threats:external conditions which could do damage to the businesss performance.

A SWOT analysis must first start with defining a desired end state or objective. Identification

of SWOTs is essential because subsequent steps in the process of planning for achievementof the selected objective may be derived from the SWOTs. The decision makers have to de-

termine whether the objective is attainable, given the SWOTs. If it is not a different objective

must be selected and the process repeated.

StrengthsOne of our biggest strengths is that we are an open source community so the code is availa-

ble to the general public and in this way everyone could improve it. We also posses the larg-

est 3

rd

party plug-in community with hundreds of useful add-ons at disposal of the users.

Regarding some technical figures we can say that the page loading time is faster than the

one of our major competitor, Internet Explorer, and we are the most efficient browser of all

regarding the memory usage. We also respect internet standardization stated by the World

Wide Web Consortium (W3C) and web developers are happier because of this as in respect-

ing them, there is no problem in the visualization of the page, as it can happens with Internet

Explorer.

WeaknessesOur biggest weakness is that we have a very limited branding and marketing budget (6,5

million $ in 2007) in comparison to our major competitors who can rely on the big budgets of

big companies like Microsoft, Google and Apple.

Another weakness is that we are not focusing on a single main feature that would distin-

guish the browser from all the others, but we are offering the similar product as the other,

with differences that can be easily recognized only by expert users and not by mass users.

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As stated before, we are an open source community and so we have a lot of external develop-

ers and their loyalty to our products is crucial for our life. If they found a more interesting

web browser to develop it would be difficult for us to avoid their switching to the more at-

tractive one. Adding to that fact there is the fact that we have a small internal team with only

100 employees in the company and not all of them are developers.

OpportunitiesOne opportunity is related to new market possibilities - in fact we are going to develop a

mobile platform browser hoping that will enable us to reach a great number of users and to

gain a market share in this emerging market.

Another opportunity is the rise of the lifestyle media: as stated in a report of Pricewater-

houseCoopers, the worlds largest professional services firm, traditional non-interactive me-

dia market share is decreasing. Media consumer is becoming unique, demanding,

engaged, he wants to have all the information he needs in the minimum time possible and the

web is the easiest way to obtain this result.

The best opportunity we are facing is that European Union is charging Microsoft with anti-

competitive behaviour concerning its Internet Explorer web browser as stated before in the

PEEST analysis and if there will be a nice conclusion to this fact it could have a huge impact

on the market, as Internet Explorer wouldnt be able to be the default browser anymore.

ThreatsWe are revenue-dependent on Google as almost 91% percent of our income comes from the

search royalties of the search engine provider, so if something will happen to Google it will

have consequences on our revenues. The biggest threat, related also to this fact, is that

Google is developing Chrome, its own browser, and the contract we have with them expires

in 2011, so if in this three years they will be able to create a web-browser that will attract

more users than ours they could not renew the contract and well lose a lot of revenue.

Another threat is the problem about the users that download the browser, but dont use it.

As stated in IMPACT mozilla, an open contest, Mozilla conducted a big marketing challenge

related to this in order to find a plan to overcome the problem of dead users.

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ConclusionAdvertising budgets will continue to be shifted out of old media into internet advertising

making the use of Internet more and more common giving us a possibility to increase our

revenue.

Analysing our company, we can see that we are very affected by external factors in com-

parison to internal factors and we are in a position of disadvantages as the other three major

players in the same fields (Microsoft, Google and Apple) has (almost) unlimited resources,

making it difficult for us to compete at their level.

Luckily the future is not so grey as we are studying the possibility of attracting new develop-

ers and splitting development teams among different new rising platforms.

After having discovered opportunities and threats from the SWOT analysis we should have to

investigate deeply in them for having a better understanding of how and whether the opportu-

nities can be embraced and the threats disposed or removed. Market researches are good tools

for reaching these objectives.

STRENGTHS WEAKNESSES

- open source community - limited branding & marketing budget

- the largest 3rd party plugin community - not focusing on a single main feature- faster than IE, most efficient browser in

memory usage- dependent on loyalty of external de-

velopers- respect for internet standardization

(W3C) - small internal team

OPPORTUNITIES THREATS

- mobile platform browser - dependent on Google

- rise of lifestyle media - Google is developing its own browser- EU is charging Microsoft concerning

its IE web browser- users do not see differences between

browsers- users downloading browser, but not

using it

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Research Proposal

For a complete analysis of Mozilla Firefox, a Research Proposal is needed: problem formula-

tion and collecting information give us the possibility to design a more complete Marketing

Plan. A Marketing Research clarifies customers' behaviour and decisions, helps to understand

real business problems, analysis in a scientific way personal opinions and choices' criteria.

This brings to an improvement of the company.

In our marketing research we will determine, first, the real problem. After this, we will carry

on the appropriate research that will lead to its execution and development. At the end, results

will be shown. The research proposal contains: questions, methods of survey (how we are go-

ing to collect data) and type of sample (defined group of customers).

Increase of market share

Initial Contact:

Mozilla Firefox has 21.77% (February 2009) of usage share of browsers' market. Our main

competitor is Internet Explorer (67.51%). Minor competitors are: Safari with 8.00%, Google

Chrome (1.15%) and Opera (0.71%).

Our main goal is to increase Firefox's percentage of market share.

Research Brief:

We believe that the small percentage of Firefox's browsers market share is due to people's

fear of changing the default browser (that is Internet Explorer). Customers do not see big dif-

ferences between browsers: "standard" Internet users seem not to care about special features

(e.g. bookmarks, downloads, password managing, auto-updating, privacy mode, image for-

mat supports, type of navigation, HTML support keys...). Only technical-skilled users can

appreciate some internal differences between browsers.

In our opinion, this is a problem: we would like to know which are the features that can make

the difference. After the marketing research, we will concentrate on these characteristics.

Research proposal:

Research Question #1: Which are the favourite features/characteristics of current Fire-fox users?

Survey method: online surveys, pop-up messages, questions on Firefox Home Page.Type of sample: current Firefox heavy and moderate users.

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Current users know what they like. From this question we can understand our strengths. After,

we can focus on the improvement and development of customers' favourite features. Firefox's

characteristics are connected with many aspects of users' "Internet life". They deal with pri-

vacy (anti-phishing, anti-virus, anti-malware, pop-up blocker, parental control, private data

clearing, instant ID, password manager), comfort (smart search bar, tags, one-click bookmark,

smart bookmark folders, library of visited websites), customization (add-ons, toolbar prefer-

ences, browser look), download (pause and resume option), search (hundred of different en-

gines, keywords and suggestions, integrated web search), tabs (instead of windows), standard

and performances (memory, graphics, support).

Research Question #2: Which are the favourite features/characteristics of our maincompetitors (IE, Safari, Opera)?

Survey method: online surveys, watching purchasing behaviour (through social medi-as).

Type of sample: heavy, moderate and light internet users.This question is an analysis of strengths and weaknesses of our competitors and their prod-

ucts. This information will be useful for developing the right "attack strategy". For collecting

the answers, online surveys will be used. Furthermore, we will watch purchasing behaviour

through researches made in the social media world. Type of sample is wide and mixed. Userscan be asked about general qualitative features (add-ons, search methods, privacy and acces-

sibility, options) or performances (speed, number of languages available, web support, mo-

bile support).

Research Question #3: Why are people afraid of trying/using different browsers thanthe default one (usually Internet Explorer)?

Survey method: online surveys, focus groups, psychology research through social me-dia (analysing purchasing behaviour).

Type of sample: moderate and light Internet users.We believe that Internet Explorer has the largest part of market share because it is Microsoft's

official default browser. But why people do not switch quickly to Mozilla Firefox (or other

browsers)? This question is about people's psychology: we are going to use focus groups as

well as online surveys and researches about purchasing behaviour. Internet users (our sample)

will be asked about their reasons for not trying better browsers.

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Research Question #4: Why do people download Mozilla Firefox and not use it aftersome time?

Survey method: internal data, pop-up messages.

Type of sample: Firefox downloaders.

"Tens of millions of people have downloaded Firefox, but dont continue to use it today. How

do we get these past users back? And how do we keep future users active once they've down-

loaded Firefox?" This question faces one of the main topics of the Impact Mozilla Competi-

tion (deadline: December 2009). The sample is simple: non-active users. We can easily dis-

cover if Firefox browser is not running. After 3-6 months of non usage, a pop up message

will appear asking reasons and tying to solve possible problems. Researches can be made also

through internal records and data.

Mobile Platform

Initial Contact:

Mozilla is developing a mobile version for Firefox. The code name of this project is "Fennec"

(that is a small fox). Fennec is a browser for mobile phones. It is considered a "new experi-

ence" that uses Firefox's design, features and add-ons. At the moment an "alpha" version is

available, and our developers are working on a "beta" version.

Overall goals are:

Grow the Mozilla community in the mobile space.Provide tools and documentation to help developers develop, debug and deploy web

applications.

Do all of this work in the shared Mozilla source repositories so all platforms, desktopand mobile, benefit each other.

Research Brief:

We believe that developing the mobile version of Firefox would be a great opportunity for

the future of Mozilla. We would like to obtain information about both developers and cus-

tomers.

Research proposal:

Research Question #1: Which mobile platform (Java, iPhone, Symbian, etc.) would bethe most popular?

Survey method: interviews, sales analysis.

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Type of sample: experts, mobile carriers data.Firefox Mobile is now available for Windows Mobile, Symbian and Linux, which are the

most common platforms. It is still illegal to install Firefox Mobile on iPhone, since it has a

Javascript, that crashes with Apple Licence. We would like to know what platform will be

the most popular in the future in order to focus our developers' attentions on that platform. In-

formation about users' preferences will be obtained through consultations with experts.

Watching purchasing behaviour and analysing the number of sales of mobile carriers will al-

so help to build the customers' choices scenario.

Research Question #2: Which features of internet version of browser should we in-clude in the mobile version?

Survey method: online, phone, paper surveys, watching purchasing behaviour (socialmedias).

Type of sample: mobile phones users, experts.Last but not least, we have to focus on our customers: what do they want in the new product?

Since Firefox Mobile is born as a mobile version of Mozilla Firefox, it has to keep its main

features. In addition to these, there are many other choices to be done. Main topics are: secu-

rity (of websites), touch/non-touch screens, zoom and scrolling pages, layout, applications,

saving contents ... This is a traditional marketing question for general public.

ConclusionMozilla is an online company: whenever it is possible, we will use online surveys.

We have a very limited budget for marketing researches: online surveys are cheap and can

reach a very large number of users.

We have to be very conscious about different groups of customers (market segments): a

first marketing segmentation has to be done between Internet users and non-Internet users.

Then we concentrate on Firefox users and non-Firefox users. Next segmentation is about us-

ers technical skills: there are basic, standard and experienced users.

We could motivate people to participate in our surveys by giving away small merchandise

prizes (e.g. cups, caps, T-shirts). This guarantees a wider range of users answering our ques-

tions.

IT world is developing very quickly that means that the time frame of our research is verylimited.

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Porter`s five forces analysis

The analysis refers to the competitive environment of a company and is used as the

initial stage of formulating competitive strategies. It is based on the model of five

interrelated factors that affect on each other, which occur in every economics

sector.

Threat of new entrantsThere is not a big threat of new entrants in internet browser market. Our team has pointed out

several different reasons for such a statement:

Switching costs for customers depend on their knowledge and usage of a browser. More ex-

perienced the user is, lower the switching costs are, because heavy users usually seek for the

best performance&features combination and do not have trouble switching between different

browsers. On the other hand new, inexperienced light users are afraid of changes and do not

switch browsers so easily and as the world internet usage is still growing we predict that, in

the world, the majority of users are light users so there is not a big threat of switching.

Capital requirements for a new entrant are huge. Established internet browsers have been

in the game for at least 2 years and have put tens of millions into development of their

products. In this market there are 3 companies with revenue bigger than 20 billion $, which

makes it almost impossible for new entrants to be competitive.

As we have mentioned earlier there are 3 huge brands (Internet Explorer, Safari, Chrome)

competing in our market along with us (Firefox) and Opera; it makes it thus really hard and

expensive to establish a competitive brand identity.

Distribution is an important factor in our business. Big, strong internet IT companies have

better access to distribution lines as small companies; Google is able to place links and ban-

ners driving people to their Chrome download site everywhere (YouTube, GoogleDocs,),

Apple has special download pop-ups offering to download Safari along traditional programs

like iTunes and Quicktime.

We think that maybe the biggest possibility for a small, new entrant lies in the government

policies, more exactly on EU`s and USA`s fight against Microsoft to end their monopoly

over default browser on newly installed Windows being Internet Explorer. If Microsoft will

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be eventually forced to offer a free choice of default browser smaller companies will slightly

better starting possibilities to penetrate this market.

Power of costumers

We are greatly dependent on Google`s search royalties deal that actually forms around 91%our revenues. Consequently they have very strong bargaining power and there is high degree

of dependency from our side.

Our main buyer is previously mentioned Google to whom Firefox drives a lot of traffic

through search bar, so buyer profits from this deal are big as our market share is currently

almost 25%.

Also one of advantages is lack ofavailable substitute products.

Firefox is also very dependent on number of usersour bargaining arguments with potential

customers would be lowered if our market share fell as we would not be able to drive so

much traffic to external providers (Google, Amazon, EBay, etc.) as we do now.

Competitive rivalryAs we mentioned in our focus- Firefox possess ca. 22 % of all market shares. The most dan-

gerous competitors for us are Internet Explorer (in fact he own approx. 67 % of market) and

Safari (which has ca. 8 %). In this situation Firefox place itself on second position and is con-

stantly gaining support from the users, what we are showing on the chart below.

In the market also exist two smaller competitors: Google Chrome and Opera which together

gather 2 % of market shares. We think that there is a high degree of competition between

Firefox, Internet Explorer and Safari. The market is constantly growing and will provide

great revenues in future, so competition will still grow. Also the thing worth mentioning is

that IE`s market share is constantly decreasing, so this could also be a proof of high degree of

competition, even though the theory says that there is not such severe competition if the mar-

ket leader is well established and there are just a few competitors.

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Possibility ofdifferentiation exists in applying new features but it is very limited as other

companies with big development teams are able to quickly adapt new great features of com-

petitors.

As previously mentioned switching costs depend on different types of consumers.

Distribution channels are quite a big opportunity as there are many possible emerging mar-

kets (e.g. mobile, Wii, e-readers, etc.).

Growth of our market is immense300% in last 8 years and around 10% estimated growth

rate for next years makes it one of the most profitable and influential markets in the future.

We would also like to point out that differentiate development culture (open-source, small

passionate internal team, devoted community) is probably Firefox`s biggest advantage over

rivals.

Substitutes&suppliersSubstitute products are not a big threat for our industry. Internet browsers will not be extinct

at least in the near future. There may be some potential products as interactive television,

operating system integrated desktop applications that use internet sources (e.g. Adobe AIR,

etc.) that will maybe cut a piece of market share from internet browser market but it is still

too early to talk about it.

Also it is hard to talk about the force of suppliers on our industryas a company that pro-

duces software we do not have material or big service suppliers, actually our only suppliers,

if we may call them that, are our external open-source developers and the whole community

itself that contribute to our product with ideas, programming and knowledge base and we are

consequently very dependent on their willingness to help developing Firefox.

ConclusionInternet browser industry is a bit specific in terms of suppliers and substitute products in

comparison to other, more traditional industries. We see an awkward relationship between

Google and Mozilla Firefox as Google is both the biggest costumer and a competitor. In-

crease of Google Chrome`s market share would be a big threat for Firefox as it would lower

its bargaining power in negotiations with Google for next search royalties contract (current

one expires in 2011). Going further we see Google and also our other big competitors as the

main force affecting our market position and Firefox will have a lot trouble trying to developas quickly as competition and also differentiate from them. However there is one quite posi-

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tive conclusion from the Porter`s analysisentrance barrier for new entrants is enormous and

we do not expect more competitors in the near future as we are able to see that even quite

good, established competitors as Opera are not able to attract big market share (Opera has

0,71% of market share).

Market segmentation

The objective of any segmentation research project is to identify distinct sub-groups that ex-

hibit different behaviors, attitudes and perceptions than other segments. In the case of the web

browser market, we essentially wanted to take a snapshot of the entire Internet population at a

moment in time to see what segments exist, how big they are (population size), online usage

patterns and most importantly what are the differences between them. We have also taken in-to account the knowledge that we have gathered from previously made market analysis.

We helped ourselves segmenting the market with the extensive marketing research campaign,

which was conducted in the last quarter of year 2008 for internal use of Mozilla Corporation

(conducted by comScore).

As we think that in our industry Psychographic (Who?) and Profile (Where?) characteristics

the research we have used focused on following behavioural (How?) characteristics of users:

Avg. Usage daysAvg. Page ViewsAvg. MinutesAvg. Browser sessions

Such (behavioural) characteristics are usually very hard to determine and measure but, as

mentioned, we were lucky to find an adequate and reliable marketing research and a bit of

segmentation that has been done by Mozilla.

The research has been done on USA pattern of about 1 million users and has been focusing

on determine behavioural patterns of different user groups. The only comment that we have

on it is that we are not sure whether an USA pattern is reliable in showing a quite good pi c-

ture of the whole world. Actually the penetration level of internet in USA is very high and

internet has there been widely present for several years so maybe the percentages of usage by

minutes is different from the whole world where there are quite a few growing markets with a

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lot of light users. But still, any information about market and its behavioural patterns is very

useful and we can make some conclusions from it.

The result is seven different user segments, here we will just describe three, which we are fo-

cusing on (for others look at appendix section):

Primary retention: Firefox users, heavy browser usage, 10% of all minutes online, 3%of all userssegment that represents our most passionate existing users; segment that is

worth focusing on because we already have advantage over competitors and probably

does not need much funds, users of this segment are mostly influenced by social net-

works (blogs, twitter, etc.)

Increase engagement (primary): Dual browser users, that do not use Firefox as theirprimary browser, instead they spend much of their online time using Internet Explorer,

segment represents 7% of all minutes online and 2% of all users; quite interesting seg-

ment in terms of market share and fact that they already have Firefox installed on their

computers, so marketing would not have to be very aggressive and expensive

Primary acquisition: segment that represents non-Firefox heavy browser users, 52% ofall minutes online and 15% of all users; very attractive market segment, heavy users areeasier to reach and switching costs for them are very low, which makes it a bit easier

for us to attract themthey are keen on unique features of browsers and technical char-

acteristics of browser (page-loading speeds, RAM usage, etc.)

ConclusionWe have put together two tables with approximate calculations of market attractiveness and

competitive position (check appendix section) of each specified market segment. From those

calculations we are then able to position our segments in the global attractiveness matrix

(Low:0-4, Moderate:4-7, High:7-10).

GLOBAL ATTRACTIVENESS MATRIX

MA/CP Low (1-4) Moderate (4-7) High (7-10)

High (7-10) PA, IEP PR

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Moderate (4-7) SR, IES, SA

Low (1-4) LU

We have decided that the best

choice would be to focus on

three segments that are posi-

tioned in the green part of

above matrix (Primary Reten-

tion, Increase Engagement

primary and Primary Acquisi-

tion). The reasons for our de-

cision lie in our very limited

marketing budget (slightly

above 6 mio $ in 2007) and

small internal marketing team.

In the process of choosing the right target marketing strategy we found out that even

though we will use a variation offocus marketing strategy, our key three focus segments dif-

ferentiate from each other in many characteristics. We are not able, for example, to target

Primary Retention market segment with the same marketing methods as Primary Acquisition.

Primary Retention market users are already established Firefox users and are obviously quite

fond of it, in comparison to Primary Acquisition segment users that are heavy internet users,

but obviously do not think that Firefox is the best browser for their use and will probably

have to be more aggressively targeted as the retention segment. And because of such reasons,

we finally decided to use differentiated marketing strategy and thus target limited number of

segments with different marketing approaches.

Marketing mix

A "Marketing Mix" is the set of controllable, tactical marketing tools that work together to

achieve company's objectives, they are: product, price, promotion and place. Broadly defined,

optimizing the marketing mix is the primary responsibility of marketing. By offering the

product with the right combination of the four Ps marketers can improve their results and

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marketing effectiveness. Making small changes in the marketing mix is typically considered

to be a tactical change. Making large changes in any of the four Ps can be considered strate-

gic. Upon the previous made thorough market analysis and its segmentation we will therefore

be able to outline the basis of Mozilla Firefox marketing mix.

ProductThe Mozilla Firefox brand is already a well established and known brand. It comprises a cool

logo and a rememberable name. Actually, it is has been voted among top ten brands in 2005

survey made on Brandchannel.com, beating such names as Sony and eBay. Even though the

survey has not been made among normal consumers, it is still a prove of Mozilla`s right d i-

rection in positioning the Firefox brand with its community marketing strategy.

The product is also flexible in a way that it suits perfectly to custom needs of individual and

we think that Mozilla should emphasise this even more; the consumer is able to completely

change the skin, add hundreds of add-ons, personalize menus, etc. Actually this kind of fea-

tures are aimed at heavy users, which we, as the market segmentation proved, are primarily

targeting. Some additional features aiming at these segments are: smart search bar, password

manager, integrated anti-virus support, live user support, etc.

PlacementMozilla Firefox is a desktop computer software product with only one main direct distribu-

tion channelinternet. Thus the main distribution place is their official website mozilla.com,

especially for PC (Windows) and Mac platform systems. Regarding the Linux platform sys-

tems, the main distributors are companies and organisations creating Linux distributions (e.g.

Red Hat, Novell/SuSE, Debian, etc.).

We decided to separate distribution places in three groups: the first one targeting our primary

retention and increase engagement segments (both comprising of current Firefox users), the

second one targeting our primary acquisition segment and the third one distributing our future

mobile version of browserFennec (currently in beta version):

1.group: browser download option (possibility of downloading new versions within thebrowser)

2.group: default browser installation option within Windows (lookup: political aspect inPEEST analysis) and Linux distributions, minor download sites (e.g. Softpedia, CNet,

etc.), through other Mozilla products (Thunderbird, Bugzilla, etc.),

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3.group: Primary distribution channels in the beginning of Mozilla Fennec`s life shouldbe preinstalled versions of the application on mobile phones (partnerships with mobile

carriers and/or mobile phone producers). The other and probably (at least) in the very

beginning the only distribution medium will be internet (download options on primary

Mozilla.com site and other minor sites).

PromotionIn our promotion activities we are focusing on three main parts as already mentioned in the

placement section and are of course using internet as our primary direct marketing medium:

1.group: we will try to establish and promote our existing Campus representatives cam-paign engaging student volunteer promoters at campuses. Viral marketing activities

(word of mouth techniques through social media, bloggers, etc.) are of course of great

importance, because it is a cheap and possibly very effective way of promotion, espe-

cially in our case, where we are trying to get attention of heavy browser users which

are most likely to use modern social services and are thus influenced by a subset of in-

ternet influencers. Organizing plenty of events (road shows, conferences, etc.) has al-

ways been a part of Mozilla`s spirit so we think, that they should continue in this direc-

tion and even try to widen their promotion activities throughout the world with help

from local representatives. Trying to promote Firefox through partnerships withschools (default installed browser, guest promotion lectures) is maybe another possi-

ble option of gaining some of the younger audiences, which are actually using internet

and consequently browsers a lot, but are maybe not aware of different browser possi-

bilities. Special launch promotions like the world-famous Guiness World record for the

most software downloads per day on the launch of Firefox version 3 in May 2008 are

another examples of great promotion activities, that actually prove Mozilla`s right di-

rection in attracting specified market segment.

2.group: As we are very devoted to our passionate community and know that the goodword coming from them helps us spreading our market share and influence, we will

engage and motivate them even more through our Mozilla web-site network (main site

Mozilla.com, Spreadfirefox site, mozillaWiki, etc.), good publicity in the traditional

and ever-growing new media and organize special events (above mentioned launch

events, developers conferences), give out some free merchandise goods (stickers, t-

shirt, cups, usb-sticks, etc.) as a neat and affordable sales promotion technique ...

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3.group: Spreading Firefox for mobiles will be a great challenge for the Mozilla teamand we think that initially the promotion activities should focus on marketing the new

mobile possibility through the existing distribution channels; the desktop version of

Firefox (small banners on opening page) could be a great way to stimulate and inform

our current desktop users to try the mobile version of their beloved browser. Promotion

should also be focused in viral marketing campaigns (e.g. small cartoons featuring fox

and fennec mascots) and small advertisements on popular mobile-related internet sites

(banners) and magazines.

ConclusionsOur Marketing Mix doesn't deal with the third "P" (Pricing), clearly because Firefox is a free

product. As we have mentioned throughout the marketing plan, Firefox revenue is based on

its search royalties deal with Google and so we are not able to specify any pricing possibility.

Since we have a limited budget for marketing, we are forced (and proud) to use non-

traditional marketing strategies: viral, guerrilla and organic, that are actually all based on the

passion and engagement of our community.

Placing and Promotion of Firefox are strictly connected: distribution channels (mostly web-

sites) are also promotion channels (events are shown and organized through our web pages).

As a conclusion, Mozilla Corporation is almost totally based on modern e-marketing tech-

niques.

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References

BookJobber, D., & Fahy, J. (2006). Foundations of marketing. Berkshire: McGraw-Hill Education.

Web sourceshttp://www.mozilla.com

http://www.mozilla-europe.org/en/firefox

http://blog.mozilla.com

http://www.quickmba.com/strategy/pest/

http://www.mindtools.com/pages/article/newTMC_09.htm

http://en.wikipedia.org/wiki/PEST_analysis

http://www.marketingteacher.com/Lessons/lesson_PEST.htm

http://www.impactmozilla.com

http://blog.lizardwrangler.com/2009/02/06/the-european-commission-and-microsoft/

http://en.wikipedia.org/wiki/SWOT_analysis

http://www.pwc.com/extweb/pwcpublications.nsf/docid/09FC84CC497D1569852570F80072

3E7A

http://www.w3schools.com/browsers/browsers_stats.asp

http://marketshare.hitslink.com

https://wiki.mozilla.org/Mobile

https://wiki.mozilla.org/Fennec

Understanding the other 80% http://dbottoms.net/2008/12/30/other-80/

http://www.interbrand.com/best_global_brands.aspx?year=2005&langid=1000

http://www.spreadfirefox.com/campusreps

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Appendix

Market segmentationSpotted market segments, which are not described in the main section:

Secondary retention: quite similar to above segment, main difference is in theamount of usage, segment represents 2% of all minutes online and also the same per-

centage of all users; not so interesting segment for us

Increase engagement (secondary): segment, that is very similar to the above one,main difference in less browser usage, represents 2% of all internet minutes and 1% of

all internet users; not attractive segment

Light users: Firefox and non-Firefox users are a part of this segment, consists of us-ers that do not browser very much14% of all minutes online in comparison to 65%

market share by user count; big segment, but very difficult to target and also probably

too expensive for our limited budget, possibility of targeting in the future if Microsoft

will be obliged to let users choose browser during installation of OS (in this case

Windows system)

Secondary acquisition: similar segment, again with lower browser usage (heavy-moderate) than above one, represents 13% of all minutes online and 12% of all users;

fairly attractive segment with quite high market share, but maybe a little to expensive

to focus on

MARKET ATTRACTIVENESS

WEIGHT PR SR IEP IES LU PA SA

Customer needs andbehavior

0.5 8 7 7 7 2 7 7

Segment size andgrowth

0.3 7 4 7.5 5 6 8 6

Macro trends 0.2 7 6 7 5 5 8 6

TOTAL 7.5 5.9 7.15 6 3.8 7.5 6.5

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COMPETITIVE POSITION

WEIGHT PR SR IEP IES LU PA SA

Opportunity for com-

petitive advantage

0.6 8 8 7 7 6 7 7

Capabilities & re-

sources

0.2 6 6 6 6 5 6 6

Industry attractiveness 0.2 7 5 6 5 7 8 6

TOTAL 7.2 6.8 6.5 6.3 5.9 6.9 6.5