Professional Documents
Culture Documents
Apple Iphone Marketing Plan
Apple Iphone Marketing Plan
Apple Iphone Marketing Plan
Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
The Past – Steve Jobs, Steve Wozniak and Ronald Wayne established Apple • Marketing Strategy
on April 1, 1976 in order to sell the Apple 1 Computer Kit that was hand built • Marketing Research
by Steve Wozniak. The Apple 1 was sold as a motherboard (with CPU, RAM • Implementation
and basic textual video chips) – less than what is considered a personal • Budget
computer today. Apple was responsible for creating the desktop publishing • Control
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
Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
The Present – January 2007, Steve Jobs, the CEO and Co-Founder of Apple, • Marketing Strategy
announces that Apple Computer Incorporated would now be known as Apple • Marketing Research
Inc. He also reveals the long anticipated iPhone, a combination of an • Implementation
Internet-enabled smartphone and the iPod. In June 2008, he announces that • Budget
the iPhone 3G would be released in July 2008, this newer version added • Control
support for 3G Networking and assisted GPS navigation, among other things.
Think Different
Apple iPhone Marketing Plan
• Executive Summery
Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
The iPhone targets consumers who need to store information and • Marketing Strategy
communicate or people who want entertainment on the go. Apples target • Marketing Research
segments consist of professionals, students, corporate users, entrepreneurs, • Implementation
and health care workers. Currently, the market for high-end phones like the • Budget
Apple iPhone is small. Few people want Internet, video, and PDA features in • Control
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
• Executive Summery
Situational Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Political Situation • Marketing Research
• Taxation is something that governments put and Apple should be • Implementation
study this as country by country case to anticipate profitability, • Budget
and pricing strategy. • Control
• 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
• Executive Summery
Situational Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Socio-Cultural Situation • Marketing Research
• Population growth leading to expansion of the sector needs for • Implementation
cell phones. • Budget
• People depend more an more on mobile communication • Control
everywhere.
• There is educational growth in the world.
• Culture’s 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
• Executive Summery
Situational Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Technological Situation • Marketing Research
• Level of technology in the world is increasing. • Implementation
• Internet level of awareness & usage for individuals & industrial • Budget
aspect are increasing worldwide • Control
• 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
• Executive Summery
Situational Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
Competition Situation • Implementation
• There are 19260 cell phone producer in the world, but there are • Budget
more than 15 big companies competing at the world level Market. • Control
Apple iPhone Marketing Plan
• Executive Summery
Situational Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
Environmental Situation • Implementation
• The global concern of the Global Warming issue & other • Budget
pollution effects concerning the packaging material and • Control
radiation of the cell phones
• The demand of the international environmental approvals is a
must (if there is any)
Sales Situation
Cell phones industries are one of the most
profitable industries everywhere and the
Market is increasing
Apple iPhone Marketing Plan
• Executive Summery
S/O Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Strengths • Marketing Research
Innovative – The iPhone has an innovative touch screen. It also has • Implementation
many functions of other mobile products all in one device • Budget
• Control
Compatibility –The phone will work with iTunes and with other
Mac/Apple products and OS software tools which means limitless
potential for upgradeability.
S/O Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Strengths • Marketing Research
Brand awareness – Apple is well known for cool essential • Implementation
gadgets like the iPods along great technological innovations like • Budget
the original Macintosh. • Control
Apple iPhone Marketing Plan
• Executive Summery
S/O Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Strengths • Marketing Research
Price – iPhone would be sold at a reasonable price for its • Implementation
value. • Budget
• Control
S/O Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Opportunities • Marketing Research
Increasing demand and expansion to a new target segment – • Implementation
As technology advances and smart phones get cheaper Apple will • Budget
attract consumers and get iPod users to upgrade to iPhones. • Control
S/O Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Opportunities • Marketing Research
Partnerships – Apple can collaborate with many powerful global • Implementation
mobile phone companies to flood the market with iPhones, which • Budget
reduces costs in marketing and increases revenue through long-term • Control
agreement deals.
Apple iPhone Marketing Plan
• Executive Summery
W/T Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Weaknesses • Marketing Research
Image – The Apple brand is not targeted towards business people • Implementation
and does not have a reputation as being compatible with the corporate • Budget
world. • Control
Price – Apple does not yet offer lower priced models for more cost
conscious consumers.
* Gorilla arm is a side-effect that humans face when using touch screens for long times as humans are not built
to hold their arms at waist or head-height, making small and precise motions. After a short period of time, cramp
may begin to set in, and arm movement becomes painful and clumsy. This is now considered a classic
cautionary tale to human-factors designers.
Apple iPhone Marketing Plan
• Executive Summery
W/T Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Threats • Marketing Research
Increased competition – Smart phones are easier to make now • Implementation
more than ever. More companies may enter the market, and • Budget
competitors or even Apple contractors can maneuver around patents to • Control
create similar devices.
W/T Analysis
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Threats • Marketing Research
Competition (Palm) - Palm has the longest history in PDA market • Implementation
and has experience-developing software for mobile devices. It is also a • Budget
well-known brand for businesspeople. Existing software is well • Control
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 their products that match the iPhone and expand to a
wider market through lower cost and higher-power products.
Apple iPhone Marketing Plan
• Executive Summery
Marketing Objectives
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Set an aggressive buy achievable objective for the first and • Marketing Research
• Implementation
second years of market :
• Budget
1. First-year Objectives - We are aiming for a 2 percent
• Control
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.
Marketing Objectives
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
Target Market • Marketing Strategy
• Marketing Research
• Implementation
• Differentiate the iPhone from other PDA’s on the market. • Budget
• Control
• Primary customer targets is the middle-upper income
professional to coordinate their busy schedules and communicate
with colleagues, friends and family.
Positioning
• Using product differentiation, positioning the iPhone as the versatile,
convenient, value-added device for personal and professional use.
•All Apple Stores the Apple website will dedicate themselves to the
iPhone
Marketing Research •
•
Situational Analysis
SWOT Analysis
• Marketing Objectives
•Four age groups will be targeted: 15-20 years, 20-25 years, 25-45 • Marketing Strategy
years, and 45 years and up • Marketing Research
• Implementation
•High School and College aged people will demonstrate social uses • Budget
• Control
•The 25-45 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 Plan
• Executive Summary
Marketing Research
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
•This research will be done through surveys (via email campaign • Marketing Strategy
through portals such as, iTunes and other on-line application • Marketing Research
developed for the iPhone) and interviews (in Apple stores) with the • Implementation
• Budget
same age groups listed before
• Control
•To bring the iPhone to the 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 product
Marketing Research
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
•We will ask for feedback on iPhone features, and implement those • Marketing Strategy
changes most important to the end user in the next generation iPhone • Marketing Research
• Implementation
• Budget
•We will allow users themselves to design their own ideal iPhone on-
• Control
line and use any useful ideas to further refine future iPhone models
Implementation
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Compensation system • Marketing Research
•workers $5 incentive pay for every non reject phone they produce • Implementation
•$10 per phone six sigma quality program • Budget
•each worker $5000 each year for best practice training • Control
Implementation
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
In case of slow sales • Marketing Research
•Offer iPhone to customers who have purchased other Apple products • Implementation
$10 per phone six sigma quality program, which will lead to: • Budget
• Control
•demonstrate the product for consumers, it will promote synergy
and lure buyers.
Budget
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
•Our break-even analysis assumes wholesale revenue of $500 per unit
• Marketing Strategy
variable cost of $250 per unit and est. fixed cost of $50 million. Based • Marketing Research
on these assumptions the break-even calculation is $50 million • Implementation
divided by $500 minus $250 equals 200,000 units sold. • Budget
• Control
•Break-even calculations indicate that Apple will become profitable
after the sales volume exceeds 200k. After the first year Apple will
make a profit of 1.25 billion minus 50 million in fixed costs.
•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, which will further
improve profits in the long run
Apple iPhone Marketing Plan
• Executive Summery
Control
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
To plan our strategy we will meet monthly with the board of Apple, • Marketing Research
present our information, and make a proposal for continued marketing • Implementation
• Budget
efforts. Before each meeting our team will meet in private, with each
• Control
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.