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Marketing Plan: Apple iPlay

Marketing Management

Submitted by: Zoya Farooq

Word Count: 4241

Turnitin similarity score: 0%
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SITUATION ANALYSIS
Apple Inc. which was established in 1976 in Cupertino, California has proved its eminence in the

field of technology owing to its innovative products and elegant designs. After the success of

personal computers called Macs, Apple ventured into the field of music by launching iPods, de-

veloped iPhones having sleek designs which revolutionized the future of smartphones. iPads

were then introduced providing the concept of simple computing, and now the recent release of

Apple Watch has helped Apple Inc. successfully dominate the Smartwatch market as well.

Vision statement of Apple Inc. clearly depicts its aim to dynamically alter the technological

products on the face of this earth, in return providing competitive edge to Apple Inc. in all its

markets. Most of the success that Apple Inc. has achieved is due to its efforts to continually in-

novate the products by strong research and development in the field of IT as well as in engineer-

ing and design. Under the strong leadership of Steve Jobs, Apple Inc. had formed an unconven-

tional culture which helped individuals focus more on the projects than their day to day tasks.

This promoted innovation, and turned Apple Inc. into one of the most dynamic change making

organizations that have existed till date.

Apple Inc. has been continuously growing in its operations due its corporate strategies, which are

mainly focused on growth of the company. Concentration has been done by launching Apple

products in different markets including India now; forward vertical integration has been achieved

by the provision of sales and services by Apple Stores. Backward vertical integration has been

established by building its own software i.e. iOS, iTunes and App Store. Moreover, related di-

versification has been done by creation of products that are all related to technology but having

entirely different markets.

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EXTERNAL ANALYSIS (PESTLE)

“
PEST analysis is used to analyze the external aspects that can affect the business environment

and is necessary in order to understand the changes in strategies that need to be done in order to

adapt to external factors. PEST analysis includes the impact of political, economic, sociocultural

and political factors on the business. To make this analysis more comprehensive two more fac-

tors i.e. legal and environmental aspects are also considered in addition to PEST, thus turning it

into PESTLE analysis.

Political Factors
1. Improvement in free trade policies have opened up new markets for distribution of Apple

products.

2. Risk of terrorism has been great in USA and other base countries in past two decades.

Economic Factors
1. Global recession and changes in European economy have affected the growth of Apple

Inc.

2. Rapid growth of developing countries has opened up new markets for Apple products.

Socio-Cultural Factors
1. Use of smart phones and social media has increased drastically in last one decade.

2. Apple products due to their premium quality have become a social symbol among people.

Technological Factors
1. There is an increased trend of connectivity between devices, like cloud computing. Apple

can focus on developing better connected devices by improving iCloud and AirDrop.
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2. Apple App Store and Android market have been major rivals in terms of apps market.

Apple can get a competitive edge by improving the number and quality of apps in the

App Store.

3. Users have preferred large screen smart phones in last few years; therefore Apple had to

conform in this regard.

Legal Factors
1. The government is imposing new regulations regarding privacy of the users which will

cause Apple to introduce new technologies.

2. US government imposed a ban on some of the parts of Apple products, which was lifted

later on.

3. Piracy is a major problem for Apple due to its continuous innovation.

Environmental Factors
1. Business sustainability is being achieved by recycling of products.

2. Energy efficient products are being produced now which radiate less heat.

3. Apple had to dispose of their electronic junk which caused increased costs.

4. Environmental issues like smog in china have forced the government to take steps which

could lead to added expense for manufacturing companies like Apple.

INTERNAL ANALYSIS
The major internal strengths that Apple Inc has which distinct its products from those of its com-

petitors are:
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Production technologies:
Advanced production techniques lead to high quality products.

Research and Development:

Continuous research & development leads to innovation in design, hardware and the software of

their products.

Organizational Structure:
Apple makes sure it only hires the best talent, and skills of those employees are then used in a

cross functional way for improving innovation.

These factors allow Apple Inc. to have a competitive advantage over their competitors, and they

also create brand loyalty among its consumers due to which they are willing to pay higher prices

for Apple products as compared to those of its competitors.

It is understood that the high-tech products and continuous research and development of Apple

are the most notable features of the company that have helped it maintain the image it has to-

day. Technical advancements in Apple if continued will prove to be the most distinguishing

competencies it has, and the future for such innovations is brilliant when it comes to having an

edge over competitors.

Internal Factor Analysis Summary (IFAS)

The Internal Factor Analysis Summary of Apple studies internal strengths and weaknesses of

the company by giving weightage (in percentage) to each factor based on the significance of

that factor. Rating from 1 to 5 is then done (where one is the lowest score and five the highest)

and weighted score against each factor is calculated. Remarks are also given against each factor

explaining the reasoning behind the rating/score of each factor.

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Internal factors Weight Rating Weighted Remarks

Strengths/Weaknesses Score
Apple has emerged as a power-
Brand Value 13 4 52 ful brand, and it is among the
organizations having highest
brand value at the moment.
Apple has ventured into differ-
Diverse Product 8 2 16 ent markets, and this has re-
Portfolio markably increased its custom-
er base.
The presence of Apple Stores
Distribution 7 3 21 has directly connected Apple
Network with its customers; all the sales
and services are hence provided
by Apple.
Quality of Apple products is
Premium Quality 10 3 30 never compromised on, due to
Products which customers are willing to
pay premium price for them.
Innovation in its designs and
Innovative De- 17 5 85 technology has rendered Apple
signs as most innovative company at
present.
Organizational culture at Apple
Organizational 6 2 12 promotes innovation, employ-
Culture ees are given time to work on
new projects apart from their
daily tasks.
Prices of Apple products are
High Pricing 11 3 33 relatively high as compared to
its competitors due to which its
target market is smaller in size.
Apple products are not compat-
Incompatibility 15 4 60 ible with softwares developed
from Microsoft and other soft-
ware developers, due to which
users have to face issues while
working.
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Repair process of Apple prod-

Cumbersome Re- 8 2 16 ucts is very difficult for coun-
pair Process tries where Apple Stores are not
available.
Apple depends on its suppliers
Dependability on 5 1 5 and has to pay them the price
Suppliers they demand for different parts.

Total 100

PORTER’S FIVE FORCES MODEL

Threat of New Entrants

Medium: This is a high cost indus-
try therefore entry is not easy.

Bargaining Power of Bargaining Power of

Suppliers
High: Suppliers have high
bargaining power because
Apple will buy the compo-
nents at whatever rates
provided to them, to main-
tain the quality and
uniqueness of their prod-
ucts.
Competitive Rivalry
High: There are many com-
petitors in the market. Rivalry
among the competitors is
very high.
Buyers
Low – Bargaining power of
the buyers is negligible. Apple
sells its products at uniform
rates everywhere; any differ-
ence in prices is based solely
on the discretion of retailers.

Threat of Substitution
High: There are many competitors
in the market who can bring substi-
tute products to the market.
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SWOT ANALYSIS

STRENGTHS
Brand value:
No one can undermine the strength of that logo; who in their right mind would have thought the

‘half eaten apple’ would be a prestigious factor. The brand’s value in terms of monetary wealth

can be assessed by the fact that it has been mentioned by some of the giants in the field of publi-

cation as the most valuable one. Forbes magazine states the value of $154.1 billion and Inter-

brand believes it to be worth $170.3 billion (Jurevicius, 2016).

Diverse product portfolio:

Apple has produced everything related to technology. It is a brand that has been a leader in the

category of information technology, telecommunication, music sharing, file storage – you name

it and Apple has it (Khan, et al., 2015).

Distribution network:
Apple is a brand that offers its buyers its products through the internet, owns stores as well as

other dealer outlets; and every single time a new product is launched it gets sold out.

Every Apple store may be seen as a community building experience where customers are not

persuaded to buy a product, rather they are educated to understand why this product is superior

to competitor products. They don’t have a sales force which merely pesters the customers in buy-

ing the product rather they allow every prospective customer with the opportunity to play around

with all the gadgets and figure out what’s the ‘it’ factor in them (Tjosep, 2015) .

Innovative designs:
Apple products are well-known for their innovative designs and appealing looks. They are usual-

ly very easy to use and can be carried around due to their compact designs. All the products that

Apple launched were available in the market with different specifications but due to the sleek
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designs and quality of Apple products, customers were attracted to those products more than the

ones launched by other brands.

Organizational culture:
Organizational culture developed in Apple under the leadership of Steve Jobs promoted innova-

tion more than anything. Employees were given time to work on new projects and developments

apart from the daily tasks that they had to perform. This resulted in great innovations because

employees were keen to work on projects in order to bring improvement in the current products.

WEAKNESSES

High pricing:
Apple has always priced its products on a higher end, which eventually lets competitors capture

the market with their lower price strategies. Everyone cannot afford Apple products due to which

the size of its market gets smaller, while the competitors with their range of low priced products

are able to cater those customers.

Cumbersome repair process:

For the regions where Apple Stores are not available, getting a minor repair becomes a cumber-

some process for the users and they ultimately have to go for third party repairs. As Apple does

not recognize third party repairs, and declines to provide support for such products in future.

Many customers are now choosing products of other brands because their repair processes are

relatively easier to get done.

Incompatibility:
A number of people do find the whole process of doing everything only through the iTunes a

hurdle rather than a facility. Even the products produced by the brand name Apple fail to be in

synced with each other and this is where the compatibility of its products comes into question.
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For those who have to use different softwares for their work often face issues when the software

is not compatible for Apple products.

Dependability on suppliers:
Apple has specific suppliers for its products therefore for maintaining quality of the products,

they have to depend on those suppliers and parts for manufacturing have to be brought on the

prices demanded by the suppliers.

OPPORTUNITIES
Research and development:
Being a technological giant one would wish to see with every new product introduced in the

market, there are innovative features and updates that only bring every product towards im-

provement. Apple has a great potential for R&D, and it can easily adopt or invent new technolo-

gies for its product due to the fact that major portion of its budget is spent on research and devel-

opment.

Rising demand for cloud services:

Cloud services are getting extremely popular among the users, and this area has great potential

for advancement in future. Apple has already ventured into this area, and it can further increase

its services in order to get more customers.

Increased use of technology in emerging markets:

People in emerging markets have increased their use of technology in last one decade and they

are eager to buy new gadgets more than ever before. Apple can extend its business to those mar-

kets in order to capture the customers there, and can enjoy great margins due to large populations

residing in those regions.

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Providing all-in-one boxes:

Apple may consider expanding their product base and maybe selling a box that contains all the

items that are essential and needed by an Apple user. This way the end customer would also be

happy that they don’t need to keep coming to the outlet to buy the hardware they need.

THREATS
Expanding usage of android:
Android is a user friendly platform and the fact that it is available from a wide variety of compa-

nies makes it all the more reasonable, as well as lucrative for customers to opt for varied priced

options. All other companies are using android at present due to which customers find it easy to

use and are usually reluctant to switch to other operating systems.

Law suits:
Apple Inc does have to its name a wide share of law suits which suggests patent infringement as

being a highly crucial fact for Apple. Eventually this results in a bad reputation and loss of

goodwill in the market. This in the long run could aid in drafting out reasons why one shouldn’t

buy any Apple products.

Product replicas:
Apple like all the other businesses out there does realize that there is an abundance of replicas of

every product and brand in the world. A number of people may not be well versed in the field of

technology and development and may end up buying a replica assuming they have bought the

original Apple product.

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MARKETING OBJECTIVES

BRIEF DESCRIPTION

Apple iPlay is a sleek and light weight gaming console which is the ultimate solution for all the

gaming freaks out there. Its portability and compatibility with Apple devices make it a go-to con-

sole to buy. It is introducing the concept of cloud gaming, where the user can access the games

online or download the desired games while playing the initial version. Controller is used for tra-

ditional game lovers as well as camera and inbuilt infrared sensors (optional on/off) for synchro-

nizing the motion of player with that of the character are available. It is compatible with iMac,

Macbook, iPhone and iPad which can be used as output devices and a wireless connection via

AirPlay can be maintained between all the gadgets. This allows the user to be able to move
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around while playing the game and multiplayer gaming on individual screens can also be experi-

enced. Some of the major features of iPlay are as follows:

Specifications:

• Weight: 1.25 kgs

• Dimensions: 9 x 5 x 1.5

• Internal Storage: 256 GB

• Memory: 16 GB

• Input Mechanism: Controller or Camera with Infrared sensors

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• Output Devices: iMac, Macbook, iPhone, iPad (Wireless Connection) or HDTV (Wired)

iPlay SMART OBJECTIVES

Objective for Profitability:

To attain a 20% return on capital by December 2017.

Objective for Market Share:

To achieve 15% market share of gaming consoles by March 2018.

Objective for Growth:

To introduce iPlay in markets other than USA by bringing 60% increase in its operations from

July 2017 to Jan 2018.

Objective for Promotion:

To reach 70% target market (15-30 years) all around the world through different sources by Oc-

tober 2017.

Objective for Branding:

To build iPlay as an ideal gaming brand for young generation in USA and Europe by May 2018.
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MARKETING PLAN

SEGMENTATION OF THE MARKET

Segmentation of target customers of iPlay can be done based on different variables which are as

follows:

GEOGRAPHIC

• Region United States, Europe

• City or metro area

Population between 100,000 – 500,000; 500,001 – 1,000,000
Size
• Urban-rural Urban, suburban

DEMOGRAPHIC

• Income $5,001 - $25,000

• Age 15 – 30

• Gender Male

• Family life cycle Young, single, young-married

• Social class Upper-class, upper-middle

• Education College students, college graduate

• Occupation Students, artists, gamers

PSYCHOGRAPHIC
• Personality Ambitious, strivers
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• Values Excitement, fun in life, sense of accomplishment

BEHAVIORAL

• Benefit desired Online games, 3D gaming, Multiuser access

Semi-heavy user, heavy user

• Buying situation New buy, Straight re-buy

TARGET MARKET

Target market of Apple iPlay mainly consists of teenagers, college and university students, and

young professionals. Male users are more likely to buy iPlay, therefore they are being targeted

more while promoting iPlay. Internet and social media will be used to promote the product

amongst the young generation.

Like all other products, Apple will use single marketing mix to reach all the potential customers

of iPlay around the globe. Its pricing will be same everywhere, distribution system will be simi-

lar and single promotional program will be aimed at the entire target market. This will help in

cost minimization of the marketing mix used.

Product differentiation strategy will be used in order to get a competitive edge over its competi-

tors. New specifications and appealing design will be used in order to attract potential customers.

This will help Apple create the desired positioning in the minds of its customer, and they will be

willing to buy iPlay because of its added features.

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POSITIONING AND DIFFERENTIATION

Positioning:
Brand positioning is the image of the product that is to be achieved in target customer’s mind.

For success of any product, it is necessary that the product is given a personality that customers

can relate to when they think of that product. Apple’s products are popular among the users be-

cause they are able to achieve a unique, credible and sustainable position in the minds of the po-

tential customers.

Like all other Apple products, iPlay aims to build a positioning in the minds of young gamers

which is as follows:

• A console that provides an exceptional multiplayer gaming experience, through superb

user interface and vast variety of games to choose from.

Differentiation:

Apple mainly uses differentiation strategy for marketing of all its products. It differentiates its

products based on the quality and innovative designs, and unique features are also offered in or-

der to differentiate its products from those of the competitors. “

Apple iPlay will also be differentiated from other gaming consoles based on certain aspects some

of which are as follows:

Design

Design of iPlay is very unique; it is light in weight (without a CD ROM), sleek in design, and

very appealing to look at. Its controller is of the same color, and innovative in design.

Cloud Gaming
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Concept of cloud gaming is being introduced through iPlay, using an online cloud service pro-

vided by Apple Inc. Games would be accessed online or downloaded while initial version of the

game is being played.

Compatibility with Apple Products

iPlay is compatible with iMac, Macbook, iPhone and iPad and can have a wireless connection

with multiple gadgets at a time. This allows portability, and individual gaming experience while

playing multiplayer games.

Inbuilt 3D Sensors

Inbuilt camera and infrared sensors are present in iPlay which can allow synchronization of the

motion of user with that of the character.

PERCEPTUAL MAP
EXPENSIVE

iPlay

FAMILY ORIENTED HARDCORE GAMER

OR

INEXPENSIVE
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MARKETING MIX

Product
iPlay is a light weight gaming console, sleek in design which uses the concept of cloud gaming

for providing online gaming experience. It is compatible with other Apple devices for ensuring

portability and for introducing individual screens for multiple gamers. 3D gaming can also be

experienced due to the presence of inbuilt IR sensors in the console, which can synchronize mo-

tion of the user with that of the character. Overall objective of iPlay is to provide users with a

unique multiplayer gaming experience, with variety of games to choose from the cloud gaming

service provided by Apple Inc.

Price

Premium pricing strategy is to be used for Apple iPlay where the price is set on the higher end as

compared to the competitors in order to meet the quality goals. The hardware and user interface

of iPlay will be designed so as to provide the customers value for their money. Competitors will

have low priced consoles in the market, but the unique features provided by iPlay will urge the

customers to prefer it over other products.

Promotion

Like all other Apple products, pull strategy is to be used for Apple iPlay. It will have such fea-

tures that customers will automatically be attracted to it. Apple iPlay will be launched at the an-

nual event ‘keynote’ where press, and developers will be invited and iPlay will be shared live.

YouTube channel of Apple has more than 4 million subscribers and the event will be broadcast-

ed to those subscribers via YouTube.

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Advertisements of iPlay will be broadcasted through television (major source of advertisement

used by Apple Inc) and online sources (YouTube, Apple website). The concept of those ads will

be developed by collaborating with other global brands.

Placement

Apple’s conventional retail strategy is to be used for the placement of iPlay. It will be available

for purchase online on Apple website and through online retailers like Amazon, Ebay. Apple

stores are the major source of distribution for Apple products. Currently there are 495 Apple

stores around the world, which have been opened in the central business districts of major cities.

These stores have been built for enhanced retail representation of the company, and for improv-

ing relationships with the potential customers. Apart from the sales, assistance regarding use of

different Apple products is provided by the experts at these stores. Customers can walk in to the

store and experience variety of Apple products. Apple Inc is also aiming to make their stores a

place for young generation to hang out, where they can use Apple products and spend time with

their peers. Different classes and programming will be introduced on certain days in order to

form a community of Apple users.

In the regions where Apple Stores have not been opened yet, distribution of iPlay is to be done

by authorized resellers of Apple Inc. These retailers have their stores opened in large shopping

malls of big cities where people who want to buy premium products usually go for shopping.
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E-BUSINESS
In today’s era of globalization internet is considered a powerful tool for marketing a new product

and for reaching the desired target market. Big giants like Apple Inc which do not have direct

operations all around the globe still enjoy huge customer base owing to the fact that customers

residing in every region of the world can access their products via Internet.

Apple Website

All apple products are first launched on their website and can be bought online from their web-

site. Apple website has been developed in coherence with the brand image of the company. Once

iPlay has its own page on Apple website, target customers will automatically visit the webpage.

In this way data regarding the target customers can also be collected to further improve the pro-

motion of iPlay.

Online Retailers

Online retailers like Amazon, Ebay also sell Apple products. These online retailers often use

price strategies and promotions to increase their sales. Apple does not directly uses price strate-

gies but those who want to buy Apple products on lower prices can avail these offers to buy

iPlay.

Social Media
Apple has large number of followers on social media platforms like Facebook and YouTube.

iPlay can be easily advertised using these social media channels. Moreover, target audience can

be easily reached using these social media sites which makes them an easy source of online pro-

motion.
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Product Reviews

Different websites and individuals do online reviews of gadgets online which are a great source

of marketing of new products. People before buying any gadget tend to check the online reviews

therefore these reviews can be used in favor of iPlay and can act as a great source of promotion

for the product.

In this way Apple can use online platforms to adopt different strategies of marketing mix (prod-

uct, price, placement, promotion) and reach a greater and global audience without extending its

operations to other regions.

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MARKETING BUDGET

BUDGET BREAKUP

HEADS Total
TV 71.5
Print 38
Magazine 9.4
Internet 11.7
Cable 4.6
Events Sponsorship 8.5
Activation 9.8
POS Material 7.9
OOH & Skin Printing 5.6
Production 13
Grand Total (Figures in Millions) 180

Annual Budget iPlay

7%
3%
TV
4%
Print
5% Magazine
40% Internet
5%
Cable
3% Events Sponsorship
Activation
7%
POS Material
OOH & Skin Printing
5%
Production

21%
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MONTHLY/QUARTELY BUDGET
Heads Jul Aug Sep Qtr-1 Oct Nov Dec Qtr-2 Total
1st Quarter 2nd Quarter
TV 5.7 8.5 5.05 19.25 6.5 7.0 3 16.5 35.75
Print 5 1 3 9 2 3 5 10 19
Magazine - 1.5 1.4 2.9 0.2 0.7 0.9 1.8 4.7
Internet 2 - 0.5 2.5 - 1.55 1.8 3.35 5.85
Cable - 0.4 0.6 1 - 0.7 0.6 1.3 2.3
Events
2 - - 2 - - 2.25 2.25 4.25
Sponsorship
Activation - 1.7 0.7 2.4 - 1.0 1.5 2.5 4.9
POS Mate-
0.4 0.5 0.8 1.7 0.05 1.2 1 2.25 3.95
rial
OOH &
Skin Print- - 0.5 0.5 1.0 0.8 1.0 - 1.8 2.8
ing
Production 0.3 1.2 1.0 2.5 2.0 2.0 - 4.0 6.5
Grand Total
(Top to Bot- 15.4 15.3 13.55 44.25 11.55 18.15 16.05 45.75 90.0
tom)

”
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INTERNET SOURCES
http://panmore.com/apple-mission-statement-vision-statement