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Apple iPhone Marketing Plan

Sameer Kode

Apple iPhone Marketing Plan


y Executive Summery y Situational Analysis y SWOT Analysis y Marketing Objectives y Marketing Strategy y Implementation y Budget y Control

Apple iPhone Marketing Plan

Executive Summery
The Past Steve Jobs, Steve Wozniak and Ronald Wayne established Apple on April 1, 1976 in order to sell the Apple 1 Computer Kit that was hand built by Steve Wozniak. The Apple 1 was sold as a motherboard (with CPU, RAM and basic textual video chips) less than what is considered a personal computer today. Apple was responsible for creating the desktop publishing market due to their innovative programmes, PageMaker and LaserWriter. Between 1983 and 1996 Apple experimented with a number of failed consumer target products including digital cameras, portable CD players, speakers, video consoles and TV appliances. Market share and stock prices decreased. In 2001, Apple introduced the iPod portable digital audio player. The product was phenomenally successful over 100 million units were sold within 6 years.

Apple iPhone Marketing Plan

Executive Summery
The Present January 2007, Steve Jobs, the CEO and Co-Founder of Apple, announces that Apple Computer Incorporated would now be known as Apple Inc. He also reveals the long anticipated iPhone, a combination of an Internet-enabled smartphone and the iPod. In June 2008, he announces that the iPhone 3G would be released in July 2008, this newer version added support for 3G Networking and assisted GPS navigation, among other things. The Future Apple plans on focusing on satisfying personal consumer demands rather than merely fulfilling a demographic requirement as well as, improving performance and stability rather than introducing new features when releasing new versions of any product.
Think Different

Apple iPhone Marketing Plan

Executive Summery
The iPhone targets consumers who need to store information and communicate or people who want entertainment on the go. Apples target segments consist of professionals, students, corporate users, entrepreneurs, and health care workers. Currently, the market for high-end phones like the Apple iPhone is small. Few people want Internet, video, and PDA features in one device because of the high price. The smart phone market is still relatively small compared with general phone market. The market will rapidly increase in coming years due to lower prices and greater power.

Apple iPhone Marketing Plan

Situational Analysis
Political Situation Taxation is something that governments put and Apple should be study this as country by country case to anticipate profitability, and pricing strategy. Importing laws in the world with GATT are in favor of trading. Countries are very variable in stability of, so we should study each country case by case. Economical Situation Economical growth world wide is in a big recession which need careful manipulation Potentiality of the market is decreasing but it is higher than any others in the Telecom sector.

Apple iPhone Marketing Plan

Situational Analysis
Socio-Cultural Situation Population growth leading to expansion of the sector needs for cell phones. People depend more an more on mobile communication everywhere. There is educational growth in the world. Cultures perception of the technological devices is positive worldwide. Literacy & illiteracy level is not affecting using cell phones but affecting high technological cell phones, this fact needs to be considered. Acceptance of imported products in some countries are less if there is local provider There are different social views that may affect product should be considered (e.g.: Boycotting American products in the Islamic world)

Apple iPhone Marketing Plan

Situational Analysis
Technological Situation Level of technology in the world is increasing. Internet level of awareness & usage for individuals & industrial aspect are increasing worldwide Fixed phone lines capacity and development attempts. New technologies in the cell phones are increasing. Future plans for technological linkage between cities, universities, colleges, hospitals and other institutes are increasing and can be connected to cell phones Level of usage of the E- Technology (online bidding, billing, complaints, blogging etc) are high and trendy.

Apple iPhone Marketing Plan

Situational Analysis
Environmental Situation The global concern of the Global Warming issue & other pollution effects concerning the packaging material and radiation of the cell phones The demand of the international environmental approvals is a must (if there is any)

Apple iPhone Marketing Plan

S/O Analysis
Strengths
Innovative The iPhone has an innovative touch screen. It also has many functions of other mobile products all in one device Compatibility The phone will work with iTunes and with other Mac/Apple products and OS software tools which means limitless potential for upgradeability. Ease-of-Use The all-new touch screen interface recognizes multi finger gestures, just as the human hand normally behaves. Brand awareness Apple is well known for cool essential gadgets like the iPods along great technological innovations like the original Macintosh. Price iPhone would be sold at a reasonable price for its value. Quality Scratch resistant screen durable and light metallic finish - software suite resistance to computer viruses.

Apple iPhone Marketing Plan

S/O Analysis
Opportunities
Increasing demand and expansion to a new target segment As technology advances and smart phones get cheaper Apple will attract consumers and get iPod users to upgrade to iPhones. Upgradeable iPhone software allows new exciting features to be brought in which take advantage of the touch screen ability. Future versions will also be hardware upgradeable. Partnerships Apple can collaborate with many powerful global mobile phone companies to flood the market with iPhones, which reduces costs in marketing and increases revenue through long-term agreement deals.

Apple iPhone Marketing Plan

W/T Analysis
Weaknesses
Image The Apple brand is not targeted towards business people and does not have a reputation as being compatible with the corporate world. Price Apple does not yet offer lower priced models for more cost conscious consumers. User Interface Touch screen interfaces suffer from the problem of gorilla arm.

Apple iPhone Marketing Plan

W/T Analysis
Threats
Increased competition Smart phones are easier to make now more than ever. More companies may enter the market, and competitors or even Apple contractors can maneuver around patents to create similar devices. Downward pricing pressure The iPhone is marketed as a high-end phone, but phone prices are almost certainly going to fall when other companies undercut the price of iPhones. Difficulty expanding into Asian market There is less hype and interest in Asia since smart phones are better known and already widely used.

Apple iPhone Marketing Plan

Marketing Objectives
Set an aggressive buy achievable objective for the first and second years of market : 1. First-year Objectives - We are aiming for a 2 percent share of the U.S and U.K. PDA/Phone market through unit sales volume of 445,000. 2. Second-year Objectives - are to achieve a 10 percent share based on sales. Extend on the Apple brand name and link to the established meaningful positioning. Extend on Apples image of innovation, quality, and value. Measure the awareness and response in order to make adjustments to the marketing campaigns as necessary.

Apple iPhone Marketing Plan

Marketing Objectives
Target Market
Differentiate the iPhone from other PDAs on the market. Primary customer targets is the middle-upper income professional to coordinate their busy schedules and communicate with colleagues, friends and family. Secondary consumer targets are high school, college and graduate students who need one portable multifunction device. Primary business target is to partner with : large cell phone service providers, AT&T, Verizon, Sprint and Cellular One large enterprise software firms where information is critical to the end user.

Apple iPhone Marketing Plan

Marketing Objectives
Target Market (cont.) Secondary business target is mid-to mid-size corporations that want to help managers and employees stay in communication or access critical data on the go. Market segment will consist of companies with $10-$50 million in annual sales. Positioning Using product differentiation, positioning the iPhone as the versatile, convenient, value-added device for personal and professional use. Focus on the convenience of having one device for communication, but also music, pictures, and video, and full Internet access. The iPhone will be promoted as both professional and hip. .

Apple iPhone Marketing Plan

Marketing Mix Strategy


Product
Full year warranty along with an optional three-year Apple Care warranty Same taste as all other Apple products Special edition version to be launched (including the iPhone Beatles edition celebrating their 40th anniversary) Launching a cheaper version in 2008 with less ,advanced features along with a more .advanced version for professional use Adding the following features to the iphone .(large disk storage capacity, lower weight, thinner device, long battery life, 4G wireless, GPS and improved camera)

Apple iPhone Marketing Plan

Marketing Mix Strategy


Price
Set the base model at a cheap price of $349 A more advanced model for $399 Special limited edition Beatles iPhone for special prices Generally lower our prices to ensure we establish market dominance in as short of time as possible

Apple iPhone Marketing Plan

Marketing Mix Strategy


Place
Massive rollout worldwide at all reputable major retailers Massive rollout Online, Showrooms and in all cell phone providers All Apple Stores the Apple website will dedicate themselves to the iPhone Eye catching displays will be found at all physical stores featuring the iPhone to make the product stand out from the pack Apple Stores will have the iPhone on display a full month before its worldwide release

Apple iPhone Marketing Plan

Marketing Mix Strategy


Promotion
Integrate Apple message of revolutionary communications and audio/visual experience together in all media advertisements Differentiate the iPhone against others is the touch screen functionality Emphasize Apple brand prominently and associate the iPhone with the iPods groundbreaking lineage Original but tasteful advertisements at the same time A massive TV campaign is planned before launching the iPhone featuring a soon to be legendary ad to be the talk of the country

Apple iPhone Marketing Plan

Implementation
Compensation system workers $5 incentive pay for every non reject phone they produce $10 per phone six sigma quality program each worker $5000 each year for best practice training use control measures to closely monitor quality and customer service satisfaction consumers can contact the main headquarters about any possible technical problems by using Apple Customer Service Bar and a customer service phone number stored in the phone book In case of slow sales Offer iPhone to customers who have purchased other Apple products $10 per phone six sigma quality program, which will lead to: Demonstrate the product for consumers, it will promote synergy and lure buyers. Develop deep relationships with two very different segments: those who have it and those who aspire

Apple iPhone Marketing Plan

Control
To plan our strategy we will meet monthly with the board of Apple, present our information, and make a proposal for continued marketing efforts. Before each meeting our team will meet in private, with each person presenting their own proposal based on the information they have learned. After the initial proposals, we will vote on the best one or come to a compromise. The final proposal sent before Apple is the result of that meeting.

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