TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY 2

2.0 COMPANY DESCRIPTION 3
2.1 Vision Statement 4
2.2 Mission Statement 4
3.0 PRODUCT DESCRIPTION 5
4.0 SITUATION ANALYSIS 9
4.1 Industry Analysis 9
4.2 SWOT Analysis 12
4.2.1 Strength 12
4.2.2 Weakness 14
4.2.3 Opportunity 14
4.2.4 Threat 15
4.3 Competitors Environment 16
5.0 MARKETING OBJECTIVE 17
6.0 TARGET MARKET 18
6.1 Segment Identification 18
6.2 Segment Needs 18
6.3 Segment Trends 18
6.4 Size of Segment (Population) 18
7.0 POSITIONING STRATEGY 19
8.0 MARKETING STRATEGY 21
8.1 Product Strategy 21
8.2 Price Strategy 22
8.3 Promotion Strategy 24
8.4 Place Strategy 26

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 EXECUTIVE SUMMARY

The marketing plan includes the fundamental for the introduction of a unique and ingenious
product known as iRing by Apple Inc. The analysis of internal and external of the organisation,
competitive environment enables the team to propose dynamic and constructive strategies for
iRing to fulfil the company’s objectives and strategic mission. The iRing will be introduced as
another innovation of Apple and marketed as mp3 player in portal music player (PMP) sector.
This also will enable Apple Inc to penetrate and dominate the PMP sector and emerge as leader
in innovation of unique products as well as successfully gain market share. The marketing
strategies are outlined to gain market segment size of 100 million (Approx) people of 15-60
years with forecasted sales growth average at 5% (Approx) over next 3. The accomplishment
and success of iRing will be measured with the capture of market share in PMP sector, as well as
penetrating geo-clustering targeted market in across the global.

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1.0 COMPANY DESCRIPTION

Apple Inc. was formed by Steve Jobs and Steve Wojniak in April 1976 and incorporated on
3rd January 1977. The organisation’s headquarter is situated at Cupertino, California. The
current CEO is Steve Jobs. Apple Inc. mainly involved in industry related to computer software,
hardware, and consumer electronics. The organisation mainly design, manufacture and market
product that varies from personal computer, portable digital music players, mobile
communication devices and various related software, services, peripherals, and networking
solutions. The main distribution channels are its online stores, retails stores, direct sales, and
others. Moreover, the customers range from consumers, corporations, small and medium
business, education, enterprise, governments and creative customers. The organisation currently
has 35,100 employees and growth of 62.5%. According to fiscal year ending report of September
2008, Apple Inc. had generated the following revenue and shows growth of 35.5% for one year
growth and about 38.3% of income growth:-

TABLE : Financial Data of Apple Inc. for 2008

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1.1Vision Statement
• iRing product will enable Apple Inc to establish as market leader in
portal music sector.
• Apple Inc can be a revolutionary organisation in providing digital
lifestyle for customers.

1.2Mission Statement

• Apple Inc is committed to provide a futuristic and empowered music

listening experience to the customer through iRing.
• To capture share market of portal music player more than 55% and
dominate the market.

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2.0 PRODUCT DESCRIPTION

‘iRing’ will be future version of iPod product and will be positioned as the bracelet iPod

that available in the market. It will be equipped with 2GB capacity and different sizes to

accommodate customer’s wrist. The product will be able to provide exceptional music

listening experience and have multifunction as mp3 player as well as hand accessory

(bangle). The product also marketed as funky and matchless alternative device for portal

music device and packaged as unisex outlook that be suitable to be worn by men and women.

The product is made of aluminium.

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3.0 SITUATION ANALYSIS

3.1INDUSTRY ANALYSIS

3.1.1 Usage
Apple Inc. has sold 22.1 million iPods during 2008 holiday season
compared to 4580 unit in 2005. The sale of 21.0 million units in Q1 of 2007 also
shows 50% higher than Q1 of 2006. This shows steady growth of iPod since
2005. Moreover, it increased about 383% from 2005. This projects strong value
of brand position in the customers. Therefore, we strongly believe that iRing can
penetrate the usage trend since this is a variant of iPod.

Chart : iPod Unit Sales

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3.1.2 Trends
In 1960, 8-track player was introduced and followed by personal cassette
player in 1979 and later with walkman, walk disc player, until MP3 player and
MP4 player. The taste and trend of portable music players change tremendously
among customers. The factors that influence the evolution in the trends are:-
a. Customer preference to better sound quality
b. The sizes of iPod and mp3 players are more compact and easy to
carry.
c. The storage capacity is bigger and customers can opt for different
sizes compared to other devices.
d. The introduction of storage format like mp3, acc, and wma enable to
customer to store more music compared to earlier version.

The market trend is expected to show prolonged growth and future

products of portable players that have sophisticated design, features and benefits
like iRing can gain customer interest as well as market demand

3.1.3 Profitability & Future

Growth Potential
Apple had gain revenue of
48% from iPod Business Division
in first fiscal of 2007, meanwhile
other music related products
contributed 9% of total profit. We
estimated that growth of average
of 4% in sales based on
forecasting projection by year
2012 and expansion of 18.3% in
population by 2015.

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SWOT ANALYSIS

3.1.4 Strength
3.1.4.1 Brand Position
Apple Inc. is one of the most progressive and established IT brand
in the IT industry. The organisation had managed to create strong brand
value position among its customers. Apple products often associated with
concept of fun, energetic, sophisticated, and quality and it generated loyal
and enthusiastic customers that support Apple brands. The supremacy
loyalty of customers shows that Apple managed to gain customers as well
as sustain them. The sales of 22.1 million iPod show the customers
consumption of Apple products. The customers subscribes to services and
products that offered by Apple and willing to come back for more Apple

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 products lines. This can create opportunities for Apple to market iRing
more proficiently.

3.1.4.2 Financial Strength

Apple Inc have stable and strong financial factor in the IT
industry. The organisation managed to generate net income of USD
4834.0 million in 2008 and USD 2,523,000 of Cash flow. This shows that
the organisation have capabilities to invest sufficient amount to design,
manufacture, and market iRing in the targeted market.

3.1.4.3 Innovation and Improvement

Strengths of Apple are innovation and the capability of
improving its product in diminutive period. This can be seen in the 6
times upgrading of classic iPod models since been introduced. There are 6
generation of ‘Mini/Nano’ model since 2004. This will enable the
organisation to develop iRing and improvised in short time and capture
market demand whenever the opportunities rise.
3.1.5 Weakness
3.1.5.1 Price
The prices of apple products are often expensive and only can be
afforded by certain group. Most of its products are ranges from USD 200
onwards for its Mp3 and Mp4 compared to other brands like Samsung,
Creative. Therefore, many customers from lower income group could
not afford Apple products and opt for other brands.

3.1.5.2 Faulty products

Some of Apple products also face problems such as iPod Nano
faces faulty screen whereby the screen can easily break under impact, and

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 early iPods faced problem with faulty batteries. This had force the
company to replace all the faulty items and had incurred more cost.

3.1.6 Opportunity

Better quality control implementation

The Apple Inc also can increase its quality control sector to be able
to provide more enhanced and quality product to its customers.

Introduction of new products

Apple had been massive designing, and manufacturing new
products for its customers compared to the competitors like Sony,
Samsung. Therefore, Apple can penetrate PMP field with new products
like iRing efficiently.
Brand awareness
The Apple has developed strong brand awareness among
customers and in the international market. Therefore, Apple Inc can create
market opportunity for iRing more efficiently because the customers are
more perceptive and easily accept Apple products compared to other
brands due to brand awareness. Moreover, the recognition of Apple brand
in the international arena also can generate international market
opportunities for iRing .

3.1.7 Threat
Strong Competition
Apple Inc also faced competition in today’s global oligopoly
market since the industry is been influenced by several major competitors
such as Sony, Samsung, HP and others.

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 Financial Crisis
The inconsistency of global financial stability and world stock
market can induce crisis and problems for Apple Inc during introducing
new products to the market. The financial crisis can force customers to
retreat and not support any new products due to personal financial
problems.

Political Unstable
One of major crisis that the organisation will face during launching
iRing is political instability in some countries in the world. This can cause
by few factors such as internal political power struggle, transition of
ruling power and others. These dilemmas can affect launching of iRing
in few countries.

3.2 COMPETITORS ENVIROMENT

Apple Inc.’s main competitors in IT industry are Sony, Samsung, IBM and HP.
However, top competitors that have capabilities and financial strength to produce
similar products with Apple are Sony and Blackberry especially for products like
MP3 and MP4. Sony had been veteran in portal music device circle and later entered
by Apple. Apple managed to capture 50% of marketing share since 2005 but Sony
also progressively gain market share of 20% in 2006 and 30% in 2007. It shows that
Sony has capacity and resources to design, manufacture product that have similarities
with iRing.

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4.0 MARKETING OBJECTIVE

The marketing objectives of iRing for Apple Inc as follows:-

• To establish as market leader in creating and manufacturing innovative

products in IT industry

• To enable Apple Inc to satisfy, fulfil and equipped the consumer’s

personality and lifestyle needs as well to increase Apple popularity as an
icon in digital lifestyle product

• To establish as market leader in portal music player sector by increasing

market share

• To enable Apple Inc to monopoly the portal music device sector share .

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5.0 TARGET MARKET

5.1 Segment Identification

iRing is a version of MP3 player that can be worn to be ln finger launched within
the portable music player (PMP) sector .

5.2 Segment Needs

iRing will be a device that accommodate social needs of customer such as it will
be perceived as one of tools of digital lifestyle, fun and cool device and sense of
belonging within peer group, brand that need to be owned, cultural lifestyle and
others needs. It also cater personal needs such as for customers that want to
experience music without tangled with wires when they performing the daily
activities, luxurious activities such as exercise, jogging, surfing and other activities.

5.3 Segment Trends

The current trend shows transcend from wired and bulky PMP to light, easy,
compact in size, more capacity, less wired or wireless and multifunction players like
MP3 players. The trends also change towards wireless player, brand conscious and
digital lifestyle. Therefore, market opportunity for iRing is far vaster due to trend
transformations.

5.4 Size of Segment (Population)

According to statistics report of CIA, the size of segment 15-64 years old consists
of 100million approx male and female.

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6.0 POSITIONING STRATEGY
Apple has been enable to create and revolutionised the portal music player sector by adapting
to visceral design, and manufacture creative, innovative, and cool products such as iPods.
Moreover, iPod managed to became measurement against any portal music players since its
penetration into the market. Therefore, iRing player will be adapting strategy by being the
ultimate must have mp3 player in the perception of customers.
Apple will be developing unique selling proposition (USP) for iRing by differencing iRing
from other mp3 player through its designs, features, and benefits that shown below:-

• Benefits positioning: listen to music without tangles of wires and

wear it as accessory
• Features: include multi-track touchpad, wireless ear headphones,
customised according to finger size, better music quality, and download music
via Bluetooth.
• Product Positioning: the shape of ring enable customer to wear in
finger, portray cool look, personalised mp3 player (other people might not notice
the player) and the first mp3 player in the world designed as ring.
• User Positioning: iRing as the most suitable and coolest trend for
digital lifestyle oriented customers

Even though iRing main function is mp3 player, it also will be marketed as hand accessory.
Apple has strong brand personality (image differentiation) among its customers and worldwide
can enable them to market iRing to the targeted market more efficiently. The features, benefits,
and unique design of iRing can aid the company to create impression of must have mp3 player in
the cognitive mind of customers. The success of iPod in 2000 as shown below is an example of
people acceptance of Apple products.

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7.0 MARKETING STRATEGY
7.1Product Strategy
7.1.1 The core
iRing is mp3 player that worn in the finger equipped with wireless ear
headphones to listen to music.

7.1.2 The actual product

The design of mp3 player is unique and innovative by Apple and be
worn . It also can function as hand accessory. As for banding, Apple logo
is embedded on the ring and the colour for iRing is silver to cater for
unisex customer as well as to establish as stylish Ring.
The trade name is iRing ™, an Apple product. The brand personality
adapted for this product consist of stylish, cool, trendy, originality and
think different. The iRing also equipped with 1 year warranty and
customer service.

7.1.3 The unique design of iRing will enhance its’ differentiation among
existing portal music players and generate advantages to the product.
Moreover, Apple is known to produce award winning innovative products
.
7.1.4 The other factors that create differentiation for iRing is the Apple
managed to create emotional benefits for its users. Therefore, iRing also
can provide emotional benefit to customers in form of maintaining
simplicity, stylish design, easy to use and constructive customer service.

7.1.5 The iRing also considered ‘green’ product since the main component to
manufacture iRing is aluminium. Aluminium is one of the most recyclable
materials.
7.1.6 The iRing product has another distinguish advantage that is the brand
name of Apple. Apple had become one of the most powerful icons in the
IT industry due to its visceral design, unique products, quality and

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 features. Therefore, branding Apple logo on iRing will increase its value
and perception among the customers.

7.2Price Strategy
The skimming price strategy will be adapted to market iRing to the customers. The
price will be set at USD 399.00 at introduction stage and price will be reviewed at later
stage of product lifecycle.
The organisation also has advantages such there is no substitute or imitation
product like iRing that available currently on the market. However, potential substitutes
produced by competitors is possible, therefore Apple have to establish as market leader
for iRing. This can create market demand for iRing since it has unique characteristics.
One of the examples of successful pricing strategy can be seen in sales of iPod in the
market .

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Promotion Strategy

7.2.1 Objectives
• To create strong awareness about iRing throughout the target
customers (14 to 29years old) as well as parents.
• To penetrate and increase market shares in portal music player sector
and override competitors
One of the promotional important outputs is to portray iRing as ‘the futuristic
mp3 player and the coolest product for everyone’.
The media selection for promoting iRing is varies for the selected customers
group. However, one of the most powerful media is Internet media. Online store also
can boost the sales of iRing.
Moreover, Apple also will be using electronic media as advertisement arena to
launch iRing to the world. Apple is knows for creating innovative, and unique
advertisements to promote their products such as in using slogan ‘Think Different’,
Therefore, unique advertisement such as constant advertisement about iRing at prime
time TV shows, radio shows can create brand awareness among the customers.

Other than that, Apple also will be using idols and international stars to
promote iRing. Apple is planning using teen idol Hannah Montana as teen ambassador
to promote iRing to teenagers group. Furthermore, in order to penetrate the current trend
and culture, iRing will be attached to celebrities such as Beyonce,Robert pattinson.
The product will be worn by these stars in the video clips and photography session for
magazines and events. The personalities from sport arena such as Cristiano Ronaldo,
and David Beckham also will be recruited to promote iRing. The celebrities spotted
with iRing can create brand awareness among customer more massively. Apple will be
running advertisement on iRing during important events like World Cups,Football
League etc. This is to target sport oriented customers.
Apple also will sponsor prime time TV shows. The advertisement of iRing will
be aired during the Showtime to capture young adults’ attention on iRing.

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7.3 Place Strategy
Other than that, the company will be choosing distribution channels such as
a. online stores
b. retail stores
c. direct sales
One of the most established distribution channels is Apple retails stores. Therefore,
iRing will be launched and marketed at all Apple retails stores across the country for
the success of iRing. Apple managed to gain a high amount in 2008 which ensure that
retail store is one of the most successful distribution channels. Moreover, online
stores also another important distribution channel that can aid the sales of iRing and
will be able to penetrate Geo-Clustering segment more proficiently.

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