While it had a strong Nov. 14th launch, Microsoft’s Zune has failed to maintain the momentum it created that week. Information Week reported Tuesday that Zune had 9% of unit sales and 13% of revenue during its launch week, but that it was still far behind iPod sales, which accounted for 63% of unit sales and 72.5% of revenue that same week. Zune also failed to touch the iPod on Amazon’s top sellers list - it rarely made the list at all this holiday season.

The buzz Zune created in the market has been largely around its potential to be the ‘iPod killer.’ Zune rarely earned exclusive coverage and has been evaluated, in most news articles, based on how it compares to the industry-standard iPod. This is typical for a new entrant to a market with such an entrenched leader, but it means that establishing its own identity will take time. The chart below shows only a small blip of exclusive coverage for Zune (not shared with the iPod) during its launch week.

Microsoft will have to change the public’s concept of a portable media player to beat the iPod in the long run. But, in the short term, it will first have to prove that it’s an equal substitute. This may be why Microsoft officials have said they are satisfied with initial results of Zune sales that seem to only scratch the surface of the market.

Beating the iPod also means that Microsoft will have to beat iTunes. MediaPost covered a Hitwise report today showing a 413% increase in iTunes store visits on Christmas Day. This represented a 110% percent increase over the previous year and placed iTunes fourth on the Hitwise retail index. Zune Marketplace was nowhere to be found. This is likely due to the relatively low amount of coverage it received compared to iTunes.

Does this mean that Zune and Zune Marketplace are destined to meet the fate of others who have tried to knock Apple off its digital music throne? Not necessarily. But it does suggest that if it happens, it won’t be a quick hit, but rather a slow etching away of its market share. All of the players in the space lose points in eyes of consumers for issues like digital rights management (DRM) that limit the way someone can access and share music. Until one provider develops a digital music solution that allows anytime, anywhere access to music on consumers’ terms, the playing field could still change.

For more analysis on Microsoft Zune, please click here to visit our Industry Reports section.

On July 13, 2006, Unilever launched their Sunsilk hair care brand in the U.S. with a twist – it’s using three gay men to sell the idea of “Hairapyâ€? (three hair products that act as therapy) to women in a $200 million marketing campaign. According to AdWeek, as much as 15 percent or $30 million of the ad budget is going to non-traditional media, such as mall displays with audio, a MySpace profile and 3-D displays in bars.

Unilever is no stranger to out-of-the-box thinking, its Dove brand “Real Beauty� campaign generated buzz in June 2006 with ads featuring “real� women instead of traditional models. What’s interesting is that the Real Beauty campaign is getting more media attention today, a year later, than the Sunsilk launch.

Media Coverage (% of Marketplace)
7/1/2006-8/23/2006

NOTE: This chart shows media coverage for Dove’s Real Beauty campaign (total = 48), Sunsilk (total = 42) and specific mentions of “Hairapy” (total = 10) from July 1, 2006 through August 23, 2006. The coverage is shown as a percentage of overall coverage for Dove, Pantene and Sunsilk combined and does not include mentions of the Sunsilk launch in recent Unilever earnings coverage.

Is the implication here that using real women to sell products to women gets a bigger reaction than using gay men? Not necessarily. The Dove press release is much more explicit about its approach than the Hairapy press release, which doesn’t outright say the spokesmen are gay (it uses phrases like “coming out party� to make the suggestion). In fact, words like “gay,� “queer� and “homosexual� appear in less than 20 percent of Sunsilk’s launch coverage, which suggests an equal amount of reluctance on the part of the media to state the obvious.

Sunsilk’s messaging was slightly different on its MySpace profile created for the launch – “Three gay guy girlfriends who give it to you straight.� Did Sunsilk lack the conviction to give it to the media “straight�? Maybe, but leaving the message open to interpretation for the broader media on a potentially hot-button issue, some of whom might disagree with the tactic, and delivering the overt message directly to your target audience through MySpace might just be smart marketing.

The MySpace crowd seems to agree. GetHairapy had 5,569 friends when I checked today. There’s also a higher percentage of discussion about Sunsilk among bloggers.

Blog Coverage (% of Marketplace)
7/1/2006-8/23/2006

NOTE: This chart shows blog posts for Sunsilk (total = 781), Dove’s Real Beauty campaign (total = 160) and specific mentions of “Hairapy” (total = 57) from July 1, 2006 through August 23, 2006. The posts are shown as a percentage of overall posts for Dove, Pantene and Sunsilk combined and does not include mentions of the Sunsilk launch in Unilever earnings discussions.

The branding of “Hairapy” on the other hand still needs a little work, but the message is clear - tailor your message to your audience. And then take that message directly to them.