I spent an afternoon this week with one of our teams working on value propositions. While most people know what one is, few are good at writing them. What weakens many value propositions is the failure to successfully articulate your advantage relative to your competition, to clearly state to the customer why you will meet their needs better than the other guy. But when you make the differentiation clear, it can be very powerful.
Case in point: Microsoft.
Apple had their day with their catchy “I’m a Mac” commercials and Microsoft responded with “I’m a PC.” To me that campaign reinforced Apple’s differentiation but didn’t always clearly connect to the needs of the PC user. Now, Microsoft is stealing some thunder with its “Laptop Hunters” campaign, starting with a new ad that’s had everyone talking.
The premise of the campaign is simple — Microsoft’s advertising agency Crispin Porter + Bogusky recruited prospective shoppers in the Los Angeles area with an offer to buy a new laptop in the range of $700 to $2,000. Whatever money they didn’t spend, they get to keep.
In the first commercial, a seemingly average person named Lauren wants to find a laptop that costs no more than $1000 and meets three simple requirements: speed, a comfortable keyboard and a 17-inch screen. Lauren first visits an Apple store, only to leave disappointed because the least expensive laptop is $1,000 and has only a 13-inch screen. “I’m just not cool enough to be a Mac person,” she says as she drives to Best Buy. Once there she surveys the bevy of laptops within her budget and (success!) settles on the HP Pavilion dv7z featuring the AMD Turion™ Ultra X2 processor, priced at $699.
So why does the first “Laptop Hunters” commercial have everyone fired up? Clearly, Microsoft has a successful value proposition that differentiates the PC from the Mac. But what I find more interesting is the campaign’s focus on the user’s needs rather than the technology.
The User Experience
I admire how this commercial captures the typical consumers’ current mindset: low cost, high value ― and how it’s about the experience (speed, comfort, monitor size). Just as Lauren was presented with a challenge to find her perfect laptop at an affordable price, the entire computing industry is currently faced with the challenge of adapting to the changing customer preference for lower cost ― without compromise.
This commercial also speaks to my belief that today’s consumer isn’t interested in “geek speak” or being sold a product with more bells and whistles than he or she needs. It works because it highlights what most consumers do when they are purchasing a new computer — identify the most important features, set a budget and find the best fit. Lauren knew the three things she cared about most, and once she found a PC with those features at the right price, she was ready to cheer excitedly in the parking lot.
Users want simplification and a straightforward way to identify which systems have the features they most care about ― and they want the best value for the money they’re spending.
Value Defined
Value is something AMD has always been committed to in its products. It didn’t take an economic meltdown to open our eyes — we’ve understood this from the debut of our platform for ultrathin notebooks that pack the performance of a pricey ultraportable in a sleek and stylish ― and affordable ― package like the HP Pavilion dv2, to the launch of the triple core AMD Phenom™ II X3 processors that offer an extra core of power for the price of competitive dual-core processors.
We understand that value doesn’t mean “cheap.” It means getting what you want and need, and getting it for the best price. If you’re paying for more than you need (especially if you’re not getting what is most important to you!), then you’re not getting value for your money.
It’s not surprising that Lauren chose the HP Pavilion dv7, 2008 AMD platform for mainstream notebook PCs featuring AMD Turion™ X2 processor and ATI Radeon™ HD Graphics. This system offers great multimedia capabilities, including HD Blu-Ray playback, manages everyday multitasking without hiccups, and demonstrated a battery life of 3 hours and 21 minutes on CNET’s video playback battery drain test (which is a decent metric of real world usage scenarios), and all for under $1,000.
So how do I Get One?
To celebrate the outcome of Lauren’s laptop hunt, we’re giving away two HP Pavilion dv7s so two lucky winners can pump their fists excitedly in a parking lot like Lauren! To enter, become a follower of @AMD_Unprocessed on Twitter and tell us why the HP Pavilion dv7 is just what you want between 4/3 at 12:01 AM ET and 4/19 at 11:59 PM ET using #AMDcontest. Two winners will be selected at random and announced by @AMD_Unprocessed on 4/20. Click here for contest rules.
Good luck to all you laptop hunters. If you don’t win, I suggest you consider the HP dv2 – I managed to secure one and I can assure you it provides a great experience.
Nigel Dessau is senior vice president and chief marketing officer at AMD. His postings are his own opinions and may not represent AMD’s positions, strategies or opinions. Links to third party sites are provided for convenience and unless explicitly stated, AMD is not responsible for the contents of such links sites and no endorsement is implied.


(8 votes, average: 4.00 out of 5)
(4.69 out of 5)
#1 by Gordon Haff - April 3rd, 2009 at 13:02
The somewhat risky thing about the ad is that it does carry this suggestion that if it weren’t for the darn price, the Mac is what Lauren would really have liked. But, in the current climate, value isn’t a bad pitch.
#2 by Nigel Dessau - April 3rd, 2009 at 17:52
I would argue that its just the right message for now and mostly for always.
#3 by wpeltola - April 3rd, 2009 at 13:37
After watching the video (I had not seen it yet) I totally understood what you meant meant when you said the commercial focused on what Laura [i]wanted[/i] instead of perhaps what someone else wanted for her. She got the laptop that she wanted and within the price range that worked within her budget (or would have worked with her budget
)
Microsoft has a good commercial here that may get people thinking more about the point being made. Great post!
#4 by James King - April 3rd, 2009 at 16:48
I’m not certain if the commercial emphasized a “value” proposition so much as a cost one. I purchased PCs until I could afford to buy a Mac… and then I bought FOUR of them rather than one high-end gaming rig. I would say that I got a much better value by purchasing a platform that is easier to use and maintain.
But that’s just me
#5 by Nigel Dessau - April 3rd, 2009 at 17:54
i own both Macs and PCs. I think W7, which runs on my dv2, is much closer to OS X than anything I have seen before.
#6 by Theo Valich - April 3rd, 2009 at 17:22
Watched the video and I was really enthusiastic… but unfortunately, it was discovered that Lauren is actually a hired actress, not a real “accidental shopper”.
http://bit.ly/Lauren
In a way, this dumbed down this excellent message about PCs. This approach by the mkt agency was innovative, but if you’re going to copy MTV’s “What Would You Do for $5, $25, $50″ colllegetainment, you might as well do the full monty, not the “corporate safe” thing.
#7 by Nigel Dessau - April 3rd, 2009 at 17:52
Theo – not sure it changes the point buy they tell me they have ‘real’ people in their ads starting soon. Also – Apple used actors too.
BTW – I was told she got to keep the PC. A dv7 – lucky lady.
#8 by wpeltola - April 5th, 2009 at 12:59
Agreed. They made their point (actress or non-actress) and I think it really hits home when you actually think about it.
That’s neat that she got to keep the dv7. Well earned
#9 by LS - April 5th, 2009 at 21:22
The softwares and OS really make the difference. There are people who install Windows on Macs mainly for the reason that they are using Windows-only applications.
Imagine that if OSX can be installed in any PCs, on AMD/Intel ……
LS
#10 by JamieU - April 15th, 2009 at 21:55
I would be super excited to win this computer! I spend hours upon hours and can definitely use an upgrade.
#11 by JamieU - April 15th, 2009 at 21:57
I’m following you on twitter..PreciousPeas
#12 by susan - April 16th, 2009 at 02:06
I’m a follower of @AMD_Unprocessed on Twitter.
We totally need a laptop and because it seems to have everything an “average” user may want and need the HP Pavilion dv7 is just what I want.
#13 by Kim - April 16th, 2009 at 06:51
this is just what we need bc our pcs are pieces of crap and we lack the funds to replace it!
#14 by Arin - April 16th, 2009 at 12:41
Follower..we need this laptop because we don’t even have one yet and it would be so great for traveling and to be able to work in any room in our house.
#15 by Nate Supplee - April 20th, 2009 at 15:09
When are the winners going to be announced?
#16 by Nigel Dessau - April 21st, 2009 at 11:30
Congrats to laptop hunters @fitzfitsahero and @erik_hanson, winners of two AMD-based HP dv7 notebooks! http://bit.ly/7P0IY
#17 by Erik Hanson - April 21st, 2009 at 18:19
Have I ever mentioned I love AMD!?
So… what now?
#18 by Erik Hanson - May 5th, 2009 at 07:11
I got the laptop! It’s very nice, both in build quality and in feature set. I immediately upgraded it to the Windows 7 beta, and am loving that, too. Pics, in case anyone is interested: http://www.lefte.com/gallery/amd_notebook_contest
#19 by Nigel Dessau - May 5th, 2009 at 09:05
Enjoy!