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Apple 4K TV
I. Executive Summary
a. Synopsis
The Apple TV overall has a strong presence in the market of streaming devices.
Since Apple first began, they have been a leader among companies in the technology
industry. In everything that Apple does, they try to differentiate their products and brand
from the competition. The same can be said for its product the Apple TV. The Apple TV
and now the Apple TV 4K have pushed apple to the top of the media streaming device
leaderboard. With the large quantity of video services offered, connectivity to all Apple
devices, and the use of Siri, Apple has created a product that is loved by many.
While the Apple TV is a successful product, it has its weaknesses and threats as well. The
majority of the threats it faces come from competing products and services. Products such
as the Chromecast and Amazon Fire TV Stick and services such as Comcast and DirecTV
bite into its market share in terms of streaming. However, under the direction of CEO
Tim Cook, Apple has consistently been able to innovate using technologies such as
Looking forward, Apple will need to focus on integration and connectivity in its
marketing and product efforts. In todays world, everyone wants all of their devices to be
connected and work seamlessly. Through the use of a successful IoT strategy that
connects all of Apples products, as well as the products to the business unit, Apple can
continue to see great profits. As they continue to release new products, it will be crucial
One key aspect of Apples marketing efforts will be its focus on brand loyalists.
Targeting this group is essential for Apple. A great majority of their sales come from
people who are loyal to the Apple brand and purchase other Apple products on a regular
basis. If they can maintain the demand for this product within this target market then they
will be able to put a stranglehold on the rest of the competitive market when it comes to
streaming devices. This group of people is growing rapidly and it is a market that could
make Apple very successful if they take control of it. Streaming devices are becoming
more and more popular to the younger generations and they are shying away from cable
due to the high prices and the ability to receive cable channels on a streaming device,
Speaking on the product strategy, Apples biggest downfall when it comes to the
Apple TV right now is the content. Competitively, the content on the Apple TV does not
compare to the Fire Stick or the Roku. With a heavier emphasis on bringing in better
content that is attractive to the average consumer, Apple can sell more Apple TVs than
previously before. Overall, the Apple TV is a pioneer in the streaming device world, and
through continued innovation and connectivity, it will remain a leader in the market.
a. Company Profile
The product that we chose to focus on for the Internet of Things project is the new
Apple TV. Apple is considered as one of the most powerful and well-known brands in the
entire world. Founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976, the
initial goal of Apple was to develop and sell personal computers. Apple enjoyed a large
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breakthrough in the company when they released the Macintosh computer. This was
preceded by what many people consider the greatest commercial of all time that aired
during the 1984 Super Bowl. The Macintosh was the first personal computer sold without
a programming language. Through the years, Apple had their ups and downs however in
the last fifteen years they have seen sustained success by shifting their products to not
just computers. They released the iPod, which was groundbreaking, and in the last ten
years they have had extreme success releasing mobile devices like the iPhone, iPad, and
Apple Watch. They also released the Apple TV, which is a streaming device similar to
other products in their competitive market such as Google Chromecast, Roku, and most
b. Industry Profile
The industry for streaming services is a growing market. More and more
households are staying away from cable and heading towards streaming services more
than ever before. This growth and desire for streaming services is due to the increasing
popularity of on-demand entertainment. The streaming services market falls under the
Over-The-Top devices and services industry. In 2016 this industry was estimated at 35.22
billion USD. Over-The-Top is a global industry, however the North America regional
market accounts for the largest revenue share and is expected to remain that way.
International players are lagging in content offerings, quality, price, and features. The key
competitors dominating in this industry include Apple Inc., Google Inc., Netflix,
Amazon, Hulu, and Roku. Many of these companies are innovating new technologies for
online platforms that allow downloading of music and entertainment. These technologies
include mobile devices, computers, smart TVs, set-top boxes, and gaming consoles, but it
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is the increasing demand for smart TV and streaming devices is what is projecting the
c. Product Profile
The Apple TV is a staple of the changes that Apple has made in the last decade.
The latest release of the Apple TV is the Apple TV 4K, which lets you watch movies and
shows in 4K high definition quality, meaning the picture is using four times more pixels
than standard HD. Through Apple TV you are able to stream live sports and news, and
can watch your favorite movies and shows through downloadable apps. It introduced a
feature that many believed was the one thing that they were lacking on this product; an
app store. Another strong new feature is the Siri Remote. This makes it extremely easy to
search for a particular app or channel that you may be looking for as you can now just
speak into the remote and it recognizes what you are trying to find. You can simply ask
Siri, as you would on any other Apple device, about a movie, show, actor, song, and so
on, and she will show you exactly what you want. The Apple TV also has an app that is
downloadable on your iPhone and iPad as well, so it works across all devices. Apple has
always had innovative ideas and has been able to improve their already successful
Since Apple first began, they have been a leader among companies in the
technology industry. This can be attributed to their ever-changing and fast paced
environment in which they operate. Some even call Apple a tech version of Wonkas
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factory, an enigmatic but enchanted place that produces wonderful items they cant get
enough of. The environment has been described as a brutal and unforgiving place, where
clearly from the top, at least this is how it was under long-time CEO Steve Jobs. Under
Jobs, simplicity and specialization were key factors in Apples organizational structure.
There was never any confusion in responsibilities and employees never strayed from their
area of expertise. The success of this company is directly linked to the leadership of the
late Steve jobs, however after his passing new CEO Tim Cook changed the dynamic of
Under Cook, he made changes to suit the market and industry demands. This has
allowed Apple to continue innovating rapidly. Like many traditional businesses Apple
follows an organizational hierarchy, however this hierarchy looks slightly different under
Cook than it did Jobs. Under Cook, there has been allotted more room for creative
collaboration whereas under Jobs, everything went through him. He always had the final
decision. Now employees work in teams rather than individuals. At the upper level of
management, there are still traditional functional roles. Every Vice President under cook
is responsible for a particular business function. Below them, there are Vice Presidents
based on different product groups. For example, there is a VP for iOS apps, a VP for the
iPad, and so on. Under this hierarchy, Apple has a strong control within the
organizational structure. The various VP positions for functions and product categories
ensure that all areas of the organization processes are being taken care of. Though their
organization may have strong control and allows for more collaboration, there is limited
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flexibility. Lower levels in a hierarchy typically lack the flexibility to respond to business
competitors. They have been able to do this through a competitive advantage, brand
loyalty, and maintaining a positive brand image. Apple has developed their competitive
advantage through its marketing strategy and wide array of products. Their products
provide a superior user experience due to its innovative features and simple design.
Products like the iPhone and iPad have revolutionized the mobile and consumer
electronic industry. Brand loyalty was built through these products because they are all
complimentary of each other. The iPhone syncs up with a Macbook, Apple Watch, iPad,
and all other Apple products. Apple is seen as a luxury brand through their pricing
immerse themselves in Apple technology. This is because people believe that expense
will give them status and exceptional quality. This generic strategy is what places them
Committed to providing a quality product and service, Apple has built one of the
largest consumer bases in a widely competitive market not only in the U.S. but around
the world as well. Apples target market consists of consumers of all ages, most of whom
tend to be younger and wealthier. In 2013 one third of Apples sales were to consumers
who were making more than $100,000 a year, where as only 20% of their sales went to
consumers making under $30,000 a year. Samsung beats out Apple in the lower income
market. Millennials seem to be the preferred target market of Apple these days.
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Millennials are fixated with technology and exploit all the benefits that Apple products
have to offer. Consumers buy Apple products not only for consumers personal use, but
for business use as well. Businesses can use Apple products and information systems to
their advantage. Apple has such a wide variety of users and continues to produce a
product that pleases them. Being able to understand the wants and needs of their
consumers is a strength for Apple. In this highly competitive and continuously changing
market, Apple thrives by putting out products that are innovative and exceptional.
Sony, Dell, Amazon, Microsoft and much more. The rivalry has significantly
Price competition will ultimately drive the competition in the market until
high-priced products, it could be disastrous for the brand. However, Apple has
built such a loyal base with their consumers that they almost seem unphased
purchase Apples next big thing. Apple operates independently of the other
competitors in the market through its loyal customer base and differentiated
product.
2. Economic Forces. Economic factors could directly affect Apple and their
countries and the stable economies of developed countries. This allows for
3. Political Forces. The most important political factors for Apple to be aware of
are improving free trade policies and stable political landscapes in developed
countries. Improving free trade policies allow Apple to distribute more of their
4. Legal Forces. The biggest legal issue that has time and time again been
Apples biggest problem is privacy and security. More and more consumers
are feeling that their security and privacy is being compromised through the
innovation of our technology. This proves to be a major threat, but can also be
development to come out with the next big thing. But how far can this
innovation go? With the recent release of Apples iPhone X, analysts and
consumers are saying the mobile products have peaked. There is not much
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more they can put into the products. This can be a threat to Apple, as they will
6. Sociocultural Forces. Changes and trends in consumer wants and needs will
affect Apple in the future. These changes could include a decrease in the
a. Strengths
Gaming possibilities
b. Weaknesses
c. Opportunities
d. Threats
Smart TVs
1. Strengths and Weaknesses. When looking at the Apple TV and its strengths
Apples unreal amount of customer loyalty, Apple lovers are prone to buy the
connect to the Apple TV. Plus, when you add in the large amount of services
that the Apple TV offers, as well as the potential of the newest Apple TV to
offer 4k quality, you can draw in customers looking for the highest quality-
streaming device. However, with Siri still being an issue with the Apple TV,
as well as an absence of full innovation, this product still has plenty of room
to improve.
2. Opportunities and Threats. One of the hottest topics in all of technology is the
companies are moving viscously to try and integrate AI into their products.
Apple is no different than any other technology company and have the
ecosystems become more popular, fully integrating the Apple TV with the
HomePod will become crucial for the company. As for the threats to the
Chromecast and Fire Stick, Apple is in for a fight in the war for market share.
Product: Apple TV 4K - Apple TV 4K lets you watch movies and shows in amazing 4K
HDR quality. Consumers are able to stream live sports and news, and can watch content
from downloadable apps like Netflix, Hulu, and ESPN. The Apple TV app lets you
browse content from over 60 video services without switching from one app to the next.
Youll find movies, shows, and handpicked recommendations. The Apple TV app is
already on iPhone, iPad, and Apple TV so you can watch at home or wherever you
go.
Promotion - With the rollout of the Apple TV 4K, Apple has begun to increase its
advertising of the product. While 4K TVs are still at the beginning of the hype cycle, it
Place - The Apple 4K TV can be bought online at Apple.com/tv, as well as any Apple
store. Furthermore, the Apple TV 4K can be bought at retailers such as Target and Best
Buy.
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Product: A streaming device that plugs into your TV's HDMI port, Chromecast Ultra
provides fast, reliable performance with minimal buffering and smooth streaming. Use
your iPhone, iPad, Android device or laptop to stream from thousands of Cast-
enabled apps.
Promotion: While Google is a dominant leader within the industry, the Chromecast Ultra
has not seen the same success of the Apple TV. However, with an increased demand for
the products, you can see Google increase their marketing to increase their market share.
Place: The Chromecast Ultra can be bought online at the Google store as well as retailers
Product: All-new, streamlined Fire TV with 4K Ultra HD and HDR support. Includes
HDMI output, micro USB for power or purchase optional Amazon Ethernet Adapter to
take advantage of the speed and reliability of wired Internet. Experience true-to-life
picture quality and sound with access to vivid 4K Ultra HD up to 60 fps, HDR, and
Dolby Atmos audio. Enjoy tens of thousands of channels, apps, and Alexa skills with
access to over 500,000 movies and TV episodes from Netflix, Prime Video, YouTube,
Promotion: With the release of various Alexa products, Amazon has been able to promote
their Fire TV by showing its ability connect to Alexa-run devices. While Apple TV is still
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the dominant player, Amazon is quickly showing promise with their innovative
technology.
Place: The All-New Fire TV can be bought at Amazon.com and retailers such as Best
In terms of Apples strategic focus for the Apple TV, we believe it will come
down to integration. As Google and Amazon ramp up their efforts to connect home
ecosystems with virtually every piece of technology in ones home, it will be crucial for
Apple to do the same. According to Gartner, CIOs must take the lead to incrementally
deploy an Internet of Things framework that emphasizes business priorities across the
enterprise, ensuring scalability, extensibility and flexibility. This means that Apples
CIO will need to deploy an IoT strategy that connects the entire business unit in order for
their products to be flexible. Furthermore, Apple will need to continue its implementation
of AI into its Apple TV as the race to understand AIs full capabilities moves forward.
a. Marketing Goals
The financial results for Apples fiscal 2017 fourth quarter were impressive as
they posted revenue of $52.6 billion, which is a 12% increase from their fourth quarter a
year ago. International sales accounted for around 62% of their revenue and their diluted
quarterly share price was up 24% from a year ago. Even though they have shown
continued success, they have multiple new products that they are releasing for the holiday
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season so their expectations are even higher for their fiscal 2018 first quarter. Their goals
are as follows:
b. Marketing Objectives
year. They are preparing for the release of multiple new products that are expected to
change the way we think of Apple and the market in general. Apple is planning to
release the iPhone 8 and 8s along with the Apple Watch series 3 and the new Apple TV
4K. Not only are they releasing the iPhone 8 and 8s but their launch of the revolutionary
iPhone X is currently underway. After having their best quarter ever for Services, they
are looking to make a wave in the fiscal 2018 first quarter. Their overall objectives are
pretty simple for this quarter and this year, they want to revolutionize the market and
a. Target Market(s)
Targeting this group is essential for Apple. A great majority of their sales come
from people who are loyal to the Apple brand and purchase other Apple products on a
regular basis. If they can maintain the demand for this product within this target market
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then they will be able to put a stranglehold on the rest of the competitive market when it
comes to streaming devices. This is especially significant with the Apple 4K TV due to
the seamless integration with other Apple products by being able to download and control
This group of people is growing rapidly and it is a market that could make Apple
very successful if they take control of it. Streaming devices are becoming more and more
popular to the younger generations and they are shying away from cable due to the high
prices and the ability to receive cable channels on a streaming device, along with being
Apple is one of the most valuable tech companies in the world. This is due to their
incredible branding strategy. Companies like Apple build ecosystems around their
consumers by providing a set of products and services that are relevant and doing it in a
way that is connected, and the longer you are involved the more value you receive as a
customer. Apple interacts with their customer in an integrated and consistent manner
through their hardware, software, and retail stores. It is no secret that Apple has been able
to build this cult like following because of the integration of their products, creating a
switching cost for consumers. There is a sense of community with Apple consumers. As
Apple continues to throw everything they have into research and development, this
community will only strengthen. As new products come out, their brand will continue to
grow and thrive in the market, provided that they keep up with their competitors.
c. Product Strategy
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Apple 4k TV is the latest version of the original Apple TV. It allows users to
stream live sports and news, watch movies and shows through downloadable apps, listen
to music, all in 4k high definition quality. Some new features were added to this product
versus the original including the higher resolution in quality, the app, and a remote
function allowing customers to talk to Siri. The app is the greatest addition to this product
because now consumers can seamlessly control their Apple TV across any of their Apple
products. By adding Siri to the Apple TV makes it easier for customers to search for
movies and other things they may be looking for. Apple is constantly innovating their
Looking into the future, there is more that Apple can improve with the Apple TV,
and will need to do to remain competitive in the market. Apple wants to offer more
exclusive streaming content, which could include Apple producing content. They have
already begun building relationships with networks and studios, and have even begun
producing mini series such as Carpool Karaoke. They are interested in providing
television content through Apple Music, instead of creating a new app, and those who
subscribe would be able to watch original content that Apple creates. This will create an
advantage and will be an important factor in selling Apple TVs. Apples services
contributes to a big portion of Apples revenues, and this provides them with a reason to
d. Pricing Strategy
Throughout Apples existence they have had the same strategy when it comes to
pricing. Steve Jobs created it and Tim Cook has carried the torch for the last several
d. Create a halo effect that makes people starve for new Apple products
that they believe their product has a competitive advantage over other products in the
market. This way of thinking has kept Apple at the top of the technology industry due to
the fact that their loyal customers believe the same thing; Apples advantages over their
competitors are reason to price their products a little bit higher. For example, the new
Apple TVs are priced significantly higher than Amazons Firestick, Googles
Chromecast, and the Roku, however Apple loyalists believe that the benefit they receive
from the Apple TV and Apple products in general far outweighs the premium price and
will happily pay more for what they believe to be the superior product and brand.
e. Distribution Strategy
Apple has created an extremely efficient distribution strategy through three main
channels; Apple Stores, authorized retailers, and e-commerce. The most prominent and
visible distribution facilities are the Apple Stores. These stores have a sleek exterior and
the inside is always clean and pristine making them aesthetically pleasing to all
customers and window shoppers. The stores themselves give off the same feeling as their
products do which is very technologically sound and almost futuristic. In a way, these
stores market the Apple brand all by themselves. Consumers can also find the Apple 4K
TV at local Walmarts and Targets, which have been selling Apple products for years
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now. Online shopping is one of the easier ways to buy products like the Apple TV, you
can either buy online from Apples website or from other online retailers like Amazon.
loyalty and the important of customer satisfaction. They use a simplistic approach in the
design of their products and do the same for brand image when communicating its
strategy. Commercials are simple, eye catching, with close attention to detail and a
experience as well. Products start up with step-by-step instructions making them fairly
easy to use, and as they are continually being updated making them easier to use. Apple
stores are loaded with highly trained employees who know exactly how to talk to
customers and are knowledgeable about the products they are dealing with. Apple stores
also have the same look that their products do, all white and silver with a modern and
technological feel. Not to mention the use of the Apple logo is demonstrated in all forms
marketing, which is important for any brand to ensure that their audience is being reached
a. Structural Issues
the commitment of the employees of Apple will be crucial to successfully marketing the
Apple TV. According to the textbook, employees implement marketing strategies, not
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organizations. This is important because while the organization Apple can come out
with a plan to market the Apple TV, it is up to the employees to execute on that plan. In
order for Apple to avoid structural issues when implementing the marketing strategy,
b. Tactical Marketing
A few of the specific marketing activities that will be done in order to advertise
the Apple TV will be through commercials, emails, and social media. Furthermore, these
activities will be done through successful teamwork between business units. While
organization working together to achieve marketing success. These activities will happen
year-round with a stronger effort leading up to the holiday season. The people responsible
for the completion of these activities are the marketing managers and ultimately the CEO
& CMO. The completion of these activities will be monitored through the use of a
timeline. As each part of the activity is completed, it will be marked on a timeline and
checked over by senior marketing managers. These activities will cost in the millions of
dollars range.
In order to control and evaluate the marketing program, Apple will need to
establish performance standards, and then assessing actual performance by comparing the
tied back to the objectives stated earlier in the plan. These standards can be based on
such as brand name recognition or recall. Furthermore, in order for these standards to be
fair, they must be agreed on by all of senior management. Moreover, the analysis of the
financial side of the plan is extremely important to its success. According to the textbook,
estimates of costs, sales, and revenues determine financial projections. This means that
all costs must be taken into consideration in order for an accurate financial projection to
be made. Lastly, if the marketing plan does not live up to the expectations, changes can
be made. One thing that can be done is a marketing audit and this can find weaknesses in
the plan that can be improved in order to make the marketing plan work.
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