Leaked Look Into Future Microsoft Stores

A source has provided the Gizmodo Web site with a design firm’s Powerpoint presentation that showcases a proposed layout, design and marketing strategy for the future Microsoft retail stores, including live wall graphics, a “Guru Bar” and rear-of-store theater. The full document also sets out Microsoft’s goals for the stores, including creating “inclusive exuberance” among its customers. Microsoft has confirmed they will open an unknown number of retail stores by year’s end, and that some of them will be adjacent to Apple’s locations. In the slide presentation by the firm Lipponcott and dated July 7, 2009, Microsoft’s stores will share an amazing number of similarities with Apple’s stores: wall-mounted display tables, center-located display tables, a service counter towards the rear of the space with customer seating, and hand-held point-of-sale computers. The space will be organized into areas, labeled in the slide presentation as PCTV, Windows 7, Smart Phone, Personalization. The sidewalls will be stocked with laptops running various Windows-based applications. According to one slide, the overall purpose of the four major areas is to “Engage, Educate and Excite.” Perhaps most interesting is a wall-sized video display that allows customers to preview software applications with an “Xbox style menu” before copying their purchased software to a “distinctive Microsoft USB flash drive.” Like the Apple stores, the Microsoft stores will feature a schedule of free events, including group training, tech presentations, live music events, and even “community events.”

Update: Late today Microsoft said the leaked document was genuine, but represents “early thinking.” However, the presentation is dated just two weeks ago and is titled an “update.”

Download (pdf) the Lippnecott presentation for all the images and strategy details.

On the strategy side, much of the Lippincott material seems to parallel Apple’s strategy. Among the “framework of guiding principles” for the stores is:

• A differentiated in-store customer experience with a primary focus on lifestyle benefits and solutions that are relevant, engaging and fun; turning needs into wants
• Reconsideration of the Microsoft brand by consumer (with emphasis on attracting and engaging female customers) by showing casing a unique experience, value and selection
• World class training and education of Microsoft software across multiple OEMs and operating systems
• Enhanced retail distribution and positive ROI for the company business groups and partners

Throughout the presentation, Lippincott uses “Emily” as the prototype customer, representing a “Basic Communicator,” “Productive Connector” or “Escapist.” She appears several times to help demonstrate how a customer would move through the store and interact with the displays and products.

The presentation provides comparisons of several competitors, using five criteria:

• emotional / experiental branding elements
• visual identity system and signage
• merchandising and offers
• fixture / materials
• staffing

Lippincott’s presentation says that Nike stores are generally well done, but the staff “lack the sort of customer service skills shoppers expect from a premium brand like Nike.” AT&T stores received a passing grade, and Nokia fixtures were described as “museum like,” and the staff as “attired more like fashion models to appeal to customers. The Sony stores staff “can be overly aggressive or uninformed,” Lippincott said, and the fixtures are made of “relatively inexpensive materials.”

As for Apple, Lippincott’s competitive analysis found the flagship stores “have become social spots and city landmarks,” and the visual system is “consistent, strike and powerful.” They described the stores as “overstaffed with young, energetic employees trained to facilitate the exchange at each state of the customer journey.”

Like Apple, Lippincott’s strategy focuses on “the experience,” and sets out simple goals for each point in the store. For example, the entrance should elicit a customer to say, “I want to know more,” while the “Answers Bar” would spark, “I’m empowered.” The various stages would evoke, “Wow, improves my life,” while the check-out counter would generate, “I’ll be back for more.”

The presentation also provides more detailed goals and objectives for each point in the store. The storefront and window merchandising, for example, would have seasonal themes, “stimulate the senses with visually exciting and VI consistent presentation,” and align with product launches.

A key element of the design is the “digital media wall,” which can be programmed to show images on one or the entire length-of-store screen. Lippincott describes it as, “creating a magical, environmental image that magically transform (sic) the store environment for moments of ‘Inclusive Exhuberance’ in the store (i.e., globabl landscapes).”

The theater will be used to deliver the “three main pillars” of Windows 7 value proposition: sismplifies everyday tasks, makes new things possible and works the way you want.” The presentation provides several screen shots of the slides that would be show to store visitors explaining Windows 7 benefits.

The “PCTV” capabilities are prominently marketed inside the stores–watching television on your computer. The store’s demonstration area shows how “Emily” can watch TV while checking her mail or performing other Internet tasks.

The “Mobility” area focuses on laptops and smartphones. Again, the objective is to “engage, educate and excite.” The in-store demonstration shows “Emily” using the products in her everyday life.

The “Personalization” area spotlights “paint, engraving and decals,” according to Lippincott’s proposal. Several products are shown that a customer can customize, including the Zune, a PC, Xbox and netbook.

On several of the presentation’s slides, wood tables and acrylics are depicted in renderings, both very similar to Apple’s interior design.

Perhaps most interesting is the “Software” area of the store, where “Emily” is show standing at a podium, selecting software to display and run on the large wall video screen. According to one slide, “Her smart card triggers the large screen to display software she might like based on her profile and interests.” Software that she wants to purchase is immediately “burned,” the presentation says, but at another point says it’s copied to a USB flash drive.

The “primary objective and key take-away” for the Software section is stated as, “Recognized as the trusted advisor in providing an informed choice of software titles; innovative selection and purchase process optimizes merchandising and B.O.H (back-of-house) efficiencies.”

The stores will have a “Childrens PC” section, along with an area devoted to accessories.

On another slide, the purchase process is detailed: the customer previews the software, adds it to the shopping cart, and optionally saves the cart (with a link e-mailed to the customer). If the customer decides upon an in-store purchase, Lippincott says, “A store associate will be dispatched to process sales transaction with hand-held unit.” The customer can receive a printed receipt or have it e-mailed to them.

Emphasizing the “customer journey” goal of the stores, “a celebratory message welcoming Emily to the PC community is broadcast across the store.”

Lastly, the stores will have an “Answer ‘Bar,’” which in images is also called a “Guru Bar.” Lippincott put the word “Bar” in quotes in the text, apparently to differentiate it from a place where liquor is sold.

The primary objective and take-away for the Answer Bar is, “Build and restore customer relationshiop; shift perception and drive preference of the Microsoft brand with knowledgeable experts.” Images of the bar show a large wall with colorful images on it, and stools with square seats. Oddly, accompanying the rendered image is a photograph of a customer and Genius at an Apple Genius Bar.

Like a Genius Bar, the Answer Bar wall-mounted screen will display “brand messages, as well as queue status and announcements welcoming new PC users (after a sale).” The appointment process isn’t described, but those the ficticious “Emily” will receive a reminder e-mail, and also “real-time…notifications…of her place in line.”

This is a diagram included in the Lippincott presentation that shows the layout of the proposed Microsoft store. Compare this floorplan with the one immediately below, showing a typical Apple store floorplan.

This diagram below shows a typical Apple store floorplan. In some cases the tables are turned by 90 degrees.

Notice how the display table acrylics very closely resemble the ones that Apple recently installed at its stores.

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