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1、Apple iPhone Marketing PlanGroup AssignmentArab Academy for Science, Technology and Maritime TransportationMBA Group HAhmadullah El-Hadidy Basem GaberHany AbdulwahabKareem RaslanMoustafa HanafyTamer YousifApple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing Objectiv
2、esMarketing StrategyImplementationBudgetControlApple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlExecutive SummeryThe Past Steve Jobs, Steve Wozniak and Ronald Wayne established Apple on Apr
3、il 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
4、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 int
5、roduced the iPod portable digital audio player. The product was phenomenally successful over 100 million units were sold within 6 years.Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketingResearchImplementationBudgetControlExecu
6、tive SummeryThe 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 th
7、e 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 Appleplansonfocusingonsatisfyingpersonalconsumerdemandsratherthanmerelyfulfillingademographicrequirementaswellas,improvingperformanceandstabilityr
8、atherthanintroducingnewfeatureswhenreleasingnewversionsofanyproduct. Think DifferentApple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketingResearchImplementationBudgetControlExecutive SummeryThe iPhone targetsconsumerswhoneedtostor
9、einformationandcommunicateorpeoplewhowantentertainmentonthego.Applestargetsegmentsconsistofprofessionals,students,corporateusers,entrepreneurs,andhealthcareworkers.Currently,themarketforhigh-endphonesliketheAppleiPhoneissmall.FewpeoplewantInternet,video,andPDAfeaturesinonedevicebecauseofthehighprice
10、.Thesmartphonemarketisstillrelativelysmallcomparedwithgeneralphonemarket.Themarketwillrapidlyincreaseincomingyearsduetolowerpricesandgreaterpower. Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketingResearchImplementationBudgetC
11、ontrolSituational AnalysisPolitical SituationTaxation 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 o
12、f, so we should study each country case by case.Economical SituationEconomical growth world wide is in a big recession which need careful manipulationPotentiality of the market is decreasing but it is higher than any others in the Telecom sector.Apple iPhone Marketing PlanExecutive SummerySituationa
13、l AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlSituational AnalysisSocio-Cultural SituationPopulation growth leading to expansion of the sector needs for cell phones.People depend more an more on mobile communication everywhere.There is educ
14、ational 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 les
15、s if there is local providerThere are different social views that may affect product should be considered (e.g.: Boycotting American products in the Islamic world)Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImpl
16、ementationBudgetControlSituational AnalysisTechnologicalSituationLevel of technology in the world is increasing.Internet level of awareness & usage for individuals & industrial aspect are increasing worldwideFixed phone lines capacity and development attempts.New technologies in the cell phones are
17、increasing. Future plans for technological linkage between cities, universities, colleges, hospitals and other institutes are increasing and can be connected to cell phonesLevel of usage of the E- Technology (online bidding, billing, complaints, blogging etc) are high and trendy.Apple iPhone Marketi
18、ng PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlSituational AnalysisCompetition SituationThere are 19260 cell phone producer in the world, but there are more than 15 big companies competing at the world level
19、 Market.Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlSituational AnalysisEnvironmental SituationThe global concern of the Global Warming issue & other pollution effects concerning the p
20、ackaging material and radiation of the cell phones The demand of the international environmental approvals is a must (if there is any)Sales SituationCell phones industries are one of the most profitable industries everywhere and the Market is increasingApple iPhone Marketing PlanExecutive SummerySit
21、uational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlS/O AnalysisStrengthsInnovative The iPhone has an innovative touch screen. It also has many functions of other mobile products all in one deviceCompatibility The phone will work with iTun
22、es 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. Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT
23、 AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlS/O AnalysisStrengthsBrand awareness Apple is well known for cool essential gadgets like the iPods along great technological innovations like the original Macintosh.Apple iPhone Marketing PlanExecutive Summer
24、ySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlS/O AnalysisStrengthsPriceiPhonewouldbesoldatareasonablepriceforitsvalue.QualityScratchresistantscreendurableandlightmetallicfinish-softwaresuiteresistancetocomputerviruses.Apple iPho
25、ne Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlS/O AnalysisOpportunitiesIncreasing demand and expansion to a new target segment As technology advances and smart phones get cheaper Apple will attrac
26、t 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. Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT Ana
27、lysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlS/O AnalysisOpportunitiesPartnerships 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-t
28、erm agreement deals.Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlW/T AnalysisWeaknessesImage The Apple brand is not targeted towards business people and does not have a reputation as be
29、ing 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”* Gorillaarmisaside-effectthathumansfacewhenusingtouchscreensforlongtimesashumansarenotbuilttoh
30、oldtheirarmsatwaistorhead-height,makingsmallandprecisemotions.Afterashortperiodoftime,crampmaybegintosetin,andarmmovementbecomespainfulandclumsy.Thisisnowconsideredaclassiccautionarytaletohuman-factorsdesigners.Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing Ob
31、jectivesMarketing StrategyMarketing ResearchImplementationBudgetControlW/T AnalysisThreatsIncreased 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. Do
32、wnward 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 wi
33、dely used.Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlW/T AnalysisThreatsCompetition (Palm) - Palm has the longest history in PDA market and has experience-developing software for mobi
34、le devices. It is also a well-known brand for businesspeople. Existing software is well established and compatible with many products for this market. The market is familiar with Palm products; significant switching costs are involved in going to an iPhone. Palm can add many similar capabilities to
35、their products that match the iPhone and expand to a wider market through lower cost and higher-power products. Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlMarketing ObjectivesSet an a
36、ggressive 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 th
37、e 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 PlanExecutive SummerySituational AnalysisSWOT
38、AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlMarketing ObjectivesTarget MarketDifferentiate 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
39、 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 Onelarge enterprise software firms w
40、here information is critical to the end user.Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlMarketing ObjectivesTarget Market (cont.)Secondary business target is mid-to mid-size corporati
41、ons 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. PositioningUsing product differentiation, positioning the iPhone as the versatile, convenient, value-added device for pe
42、rsonal 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 PlanExecutive SummarySituational AnalysisSWOT AnalysisMarketing
43、ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlMarketing Mix StrategyProductFull year warranty along with an optional three-year Apple Care warrantySame taste as all other Apple productsSpecial edition version to be launched (including the iPhone Beatles edition celebrating
44、 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 cam
45、era)Apple iPhone Marketing PlanExecutive SummarySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlMarketing Mix StrategyPriceSet the base model at a cheap price of $349A more advanced model for $399Speciallimited edition Beatles iPhon
46、e for special pricesGenerally lower our prices to ensure we establish market dominance in as short of time as possible Apple iPhone Marketing PlanExecutive SummarySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlMarketing Mix Strateg
47、yPlaceMassive rollout worldwide at all reputable major retailersMassive rollout Online, Showrooms and in all cell phone providersAll 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 produ
48、ct stand out from the packApple Stores will have the iPhone on display a full month before its worldwide releaseApple iPhone Marketing PlanExecutive SummarySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlMarketing Mix StrategyPromot
49、ionIntegrate 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 lineageOrigin
50、al but tasteful advertisements at the same timeA massive TV campaign is planned before launching the iPhone featuring a soon to be legendary ad to be the talk of the countryAdvertising will be appearing on a regular basis to maintain general public awareness Apple iPhone Marketing PlanExecutive Summ
51、arySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlMarketing ResearchFour age groups will be targeted: 15-20 years, 20-25 years, 25-45 years, and 45 years and upHigh School and College aged people will demonstrate social usesThe 25-
52、45 years group will be used to determine business application and social/personal use The 45 years and above will give us a plan to market to more senior well-refined group Apple iPhone Marketing PlanExecutive SummarySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing Re
53、searchImplementationBudgetControlMarketing ResearchThis research will be done through surveys (via email campaign through portals such as, iTunes and other on-line application developed for the iPhone) and interviews (in Apple stores) with the same age groups listed beforeTo bring the iPhone to the
54、front of the business world it is important to research different ways to grow the 15-25 year old group into business uses of the productBrand awareness will be an important tool in taking the Apple brand from social cool to business cool.Apple iPhone Marketing PlanExecutive SummarySituational Analy
55、sisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlMarketing ResearchWe will ask for feedback on iPhone features, and implement those changes most important to the end user in the next generation iPhoneWe will allow users themselves to design their own
56、 ideal iPhone on-line and use any useful ideas to further refine future iPhone models We will continuously scour the Apple fan websites to understand what the Mac faithful are saying, as they are our best customers.Apple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketin
57、g ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlImplementationCompensation systemworkers$5incentivepayforeverynonrejectphonetheyproduce$10perphonesixsigmaqualityprogrameachworker$5000eachyearforbestpracticetraininguse control measures to closely monitor quality and custome
58、r service satisfactionconsumers can contact the main headquarters about any possible technical problems byusingAppleCustomerServiceBarandacustomerservicephonenumberstoredinthephonebookApple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyM
59、arketing ResearchImplementationBudgetControlImplementationIn case of slow sales OfferiPhonetocustomerswhohavepurchasedotherAppleproducts$10perphonesixsigmaqualityprogram,whichwillleadto:demonstratetheproductforconsumers,itwillpromotesynergyandlurebuyers.developdeeprelationshipswithtwoverydifferentse
60、gments:thosewhohaveitandthosewhoaspireApple iPhone Marketing PlanExecutive SummarySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlBudgetOur break-even analysis assumes wholesale revenue of $500 per unit variable cost of $250 per uni
61、t and est. fixed cost of $50 million. Based on these assumptions the break-even calculation is $50 million divided by $500 minus $250 equals 200,000 units sold.Break-even calculations indicate that Apple will become profitable after the sales volume exceeds 200k. After the first year Apple will make
62、 a profit of 1.25 billion minus 50 million in fixed costs.Recommended price is $350. The markup is 40 percent.It is predicted that sales volume will increase at least 60 percent from this change; this will decrease the impact of fixed costs and improve opportunities to increase our production scale,
63、 which will further improve profits in the long runApple iPhone Marketing PlanExecutive SummerySituational AnalysisSWOT AnalysisMarketing ObjectivesMarketing StrategyMarketing ResearchImplementationBudgetControlControlToplanourstrategywewillmeetmonthlywiththeboardofApple,presentourinformation,andmakeaproposalforcontinuedmarketingefforts.Beforeeachmeetingourteamwillmeetinprivate,witheachpersonpresentingtheirownproposalbasedontheinformationtheyhavelearned.Aftertheinitialproposals,wewillvoteonthebestoneorcometoacompromise.ThefinalproposalsentbeforeAppleistheresultofthatmeeting.
