Apple Project at HPU. ADPR 3700

ADPR 3700
Apple MAC Campaign

Book 1, Spring 2011
Anne-Louise Frandsen, Ariale Montgomery, Chanel Wayne, Kelli Difazio, Miguel Bjorkqvist, Andreas Pedersen, Hou Ming Chiu Magnus Ryhjell, Petter Eilertsen, Haruna Sugino, Minea Haakans, Valdete Sylaj
2011
Apple MAC Campaign |2
Apple Executives
Founders
Steve Jobs (CEO)
Steve Wozniak
Executives
Peter Oppenheimer Senior Vice President and Chief Financial Advisor
Tim Cook Chief Operating Officer
Philip W. Schiller Senior Vice President Worldwide Product Marketing
Bertrand Serlet Senior Vice President Software Engineering
Bob Mansfield Senior Vice President MAC Hardware Engineering
Jonathan Ive Senior Vice President Industrial Design
Ron Johnson Senior Vice President Retail
Bruce Sewell Senior Vice President and General Counsel
Jeff Williams Senior Vice President of Operations
Denae Panis Market Leader at Apple Retail
Executive Summary
The purpose of the Apple Inc Macbook campaign is to increase the sales of Macbooks amongst small business owners on Oahu by raising awareness of the quality of a Macbook. This campaign intends to emphasize the long term benefits of purchasing a Macbook as well as educate business owners about the user friendly features of Mac computers specifically for business practices. Our primary research gathered through surveys concluded overwhelmingly that the majority of small business owners on Oahu come from the Baby Boomer generation who select their computer equipment based on price and user-friendly qualities. Documented research however, concludes that the Baby Boomer generation chooses to use products that they identify as being a popular product among the younger generations, which is a trait that Apples image already possesses. This campaign will demonstrate to small business owners on Oahu that Macs are quality alternatives where their return on investments is high. Our extensive campaign which includes, print ads, television commercials, Mac Masters events, and direct marketing materials, is centered around the theme Macs Make Sense. Macsimize Your Business to captivate and motivate the target market to engage in purchasing and using Mac computers for their business operations.
Apple Inc. Background

Steve Jobs and Steve Wozniak founded Apple Inc. in California in 1976. After receiving their first order of 50 units, which the two built in a garage, they realized there was an emerging demand for smaller, more portable computers. From the beginning it was the user-friendly look and feel of the product that secured its place on the market. During the years 1978-1980, Apple sales jumped in stock from $7.8 to $117, with 1980 also marking the year when the company went public. In 1983 Steve Wozniak left Apple, leaving Jobs to hire John Sculley as president. Later, Jobs left Apple in 1985 to launch the company NeXT. Apples competition with Microsoft has been a perpetual one dating back to the early 80s. In the late 80s Microsoft launched an operating system, Windows, which was very similar to the graphical interface of Apple. Apple sued but lost their copyright claim in 1992. The 90s were struggling times for Apple. Its sales took drastic falls with the failure of the Newton handheld computer and the workforce was decreased. Apple bought NeXT in 1997, but was forced to downsize further, cancel projects, and trim its research costs. Jobs, however, was reintroduced as CEO of Apple on an interim basis. In 1998, Apple bounced back into the playing field with the colorful line of iMACs, featuring its first server software, the MAC OS X. The Newton handheld computer was discontinued from the product line. In 1999, Apple introduced laptop computers called the iBook. Jobs took the interim out of his title and became CEO. In 2001, Apple introduced upgraded products with faster processors and confirmed rumors of opening nationwide retail stores. Their strategy to position the MACs as digital hubs to peripherals such as cameras was further solidified by the introduction of the iPod in late 2001. In 2001 and 2002, Apple started catering more aggressively to the educational market. In 2005, Apple announced that they would start incorporating the Intel processors, a transition that would be complete in 2006. In 2007, Apple introduced the iPhone and the iPod nano, which was added to the family of iPods, and was further developed with video functions. Apple also reached settlement in a dispute over technology used in digital music players. In recent years, Apple has pursued their efforts in bringing more of their chip productions in-house by purchasing both P.A. Semi (a developer of processors) and Intrinsity, a provider of chip design software.
The Company Analysis

Apples Mission Statement
According to an article written by Ross Gordon in the online website Articlesnatch.com Apple has had two mission statements through the years, the first one composed in 1984 and was written as follows: "To produce high-quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for non-computer experts." (Gordon, 2011) As time went on Apple decided to modify their mission statement to their current mission statement which is: "Apple computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate. We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services. (Gordon, 2011)
Apple Inc. Corporate Culture

Steve Jobs himself describes Apple's culture as that of a startup (Merchant, 2010). A newly started company is driven by passion and entrepreneurship and is eager to innovate and create better products, and this is Apple's corporate culture. Much of this culture is due to Steve Jobs personality and nostalgia, his vision of rebuilding his company with passion, and energy to dominate in the industry. Apple Inc. is the leading technology company in the world when it comes to creating aesthetically pleasing products and most of it is because of the vision of the company's founder Steve Jobs. Jobs has a clear vision of how Apple is going to be governed with an emphasis on cohesion. This view of Jobs means there is cohesion throughout the entire company, from concepts and product to sales. To create this atmosphere of cohesion, Jobs formulated a few concepts that everyone in the company, even the companys management have to follow. Steve Jobs cohesion view is exemplified in these concepts: Belief Belief is a big factor, especially believing in Steve Jobs. Both employees and the stockholders are expected to believe in the company to deliver extraordinary products.
Believe that Apple is the best Apple and Steve Jobs believe that the company is the greatest in the world and it can never fail, and that's the way Apple Inc is going to carry itself. Focus on Design The most important aspect of Apple as a company and its culture's spirit is design. Apple and its employees care about the design of the product more than any company out there and they will not settle. Apple finds out what their customers want and then it goes forth to meet those desires and goes beyond all expectations. Forget everything that came before it Apple does everything different, therefore when new employees come to Apple they are expected to forget everything they ever knew about technology. Takes flaws to heart Apple takes all flaws to heart and responds with a level of venom that can't be measured. Reisinger puts it best in his description of Apple's Corporate Culture when he says After all, what other firm in the space could have taken an antenna issue as bad as the iPhone 4's and turned it on the competition without thinking twice? Apple doesn't like being told that it's wrong. And both its employees and its fans are expected to dislike it, as well. Never admit defeat No matter how bad a product is doing on the market, Apple shall always find a way to pull itself up and dazzle the public once again. Apple is a competitive business that takes risks, while making controversial decisions a common practice. Attention to detail Attention to detail is an extremely important strategy used by Apple. This attention to detail is what distinguishes Apple from the others in the industry. Go the extra mile Go the extra mile has become Apple's primary vision. Apple expects all of its employees to embrace and engage this important component found within their company culture. Secrecy reigns supreme Apple believes that secrecy is the key to success. Apple has a security policy like no other and it takes great measurements to protect its privacy. Apple's security policy extends to blogs, speaking engagements, and even to what the employees talk about with their spouses. Updates rarely leak out and if that happens by mistake, the person is most likely to be expected to leave the company. Domination is everything Steve Jobs has one goal in mind when it comes to technology: domination. He doesn't simply want to beat the competition in all the markets his company competes in, he wants to destroy them. He wants to make it clear to the world that his company can beat them all. Steve Jobs has something to prove to the competition, customers and just about everyone else. He expects his staff to help him achieve that. If they don't, they will find themselves working at Microsoft in no time (Reisinger, 2010).
Financial resources (in 2010):

Apple recorded their income of $42,905 million during the 2009 financial year. It increased 14.4% compared to 2008. The main reason why they succeeded was due to growth in sales of iPhone handsets, and other applications from iTunes Store. The United States of America made up 44% of all the total revenues during the financial year 2009, which was the largest geographic market. 2010 Income Statement Revenue = 76,283 million Net income = 16,639 million EPS from continuing operations = 17.91 EPS, Net income, Diluted = 17.91 Revenue per share = 82.98 (Balance sheet) Total assets = 86,742 million Total liabilities = 32,076 million Shareholders equity = 54,666 million Total assets per share = 94.18 Net assets per share = 59.35 (Cash flows) Cash from operations = 22,587 million Cash from investing = -20,625 million Cash from financing = 1,163 million Capital expenditures = 2,843 million Cash Flow per share = 24.21 Technological resources: Apple has a strong focus on research and development: expenses = $1,333 million 1. Innovative industrial design 2. Further developing its existing MAC line of PCs 3. Application software 4. Investigate in new product areas and technologies in coming years Managerial resources: The organizational structure of Apple contributes to determining a series of issues including task allocation, coordination and supervision. In general, the organizational structure provides two major elements: 1. The foundation on which standard operation procedures and routines rest 2. Determines the chain of command and which individuals get to participate in the decision making processes, and how their views shape the organization and its actions.
Apples managerial resources consist of: - Positioned expertise in each different sections, such as CEO, COO, RAE, to organize the company - Consistent with all the other sections - A hierarchical structure depending heavily on the visions of Steve Jobs - visions that must be lived to the fullest by anyone who works for Apple - Also has a hint of a flat structure where all workers are expected to contribute with creativity and engagement consistent with the mission statement.
A p p l e M A C C a m p a i g n | 10
Apple Sales Trends:
2006-MAC Book Pro and iMAC are put on the market. Quarterly Sales 2007-Present 2007 Q1Apple TV and Steve Jobs announces that Apples official name will change from Apple Computers Inc to Apple Inc due to the rise of other non-related products. Apple shares shoot up to $97.80. Q2iPhone is released and Apple begins selling music on iTunes store after several record labels agreed to drop the DRM. Q4iPod Touch is introduced. 2008 Q1MACBook Air is introduced. Q2Strongest Q2 in Apple history. Q3iPhone 3G is released and the App store began selling third-party applications. Q4Apple becomes the 3rd largest mobile handset supplier in the world. 2009 Q1Financial crisis but is considered the best non-holiday quarter during the recession. Q2iPhone 3Gs, third-generation was released. Q4iMAC and MACBook are updated to become mercury and arsenic free.
2010 Q1iPhone sales skyrocketed because Apple extended the reach of the product by partnering with 17 new carriers. Q2 iPad is launched and surpasses Microsoft with its market cap for the first time since 1989. Q3An updated iPod Nano, iPod Touch, and iPod Shuffle are introduced. Q4Apple updates the MACBook Air laptop and unveiled MAC OS X Lion, the latest installment in their MAC OS X operating system-shares shoot up to $300.
Apple Sales Trends for MACintosh Units
This chart shows 150% total growth with 300% in notebooks and 50% growth in desktop computers.
General Economic Climate

Gross Domestic Product When analyzing the financial status in the world, the most commonly and accepted method to determining the wealth of countries is to use Gross Domestic Product. By that measure it has been estimated that in 2010 the richest country in the world was Qatar and the poorest was Democratic Republic of Congo, while the richest region was Europe, and the poorest was subSaharan Africa.
World Economic Growth in Year 2011 Between the years 2007 and 2010, the world experienced its first global economic crisis due to an excessive amount of borrowing and lending. Now, the world economy is recovering faster than planned, so the evaluation of the global losses in the financial sector during the 2010-2011 crisis has been reduced by 553 billion dollars. First it was assumed that the cancellation of bank assets was worth 2.8 trillion dollars, but economic recovery has reduced this number to 2.28 trillion dollars. Losses in the U.S banking system went down from 1.03 trillion dollars to 885 billion dollars. There was a total decrease of bank loan losses by 13%. Also the developing countries are quickly restoring after the crisis. The Chinese economy will grow 9.9% in 2011, 8.4 % in India, 4.1% in Brazil and 4.5% in Mexico. In Russia the GDP will increase 3.3% in 2011. The United States is recovering from the economic crisis, but it will take time. Thus, the unemployment is likely to stay high for a relatively long period. The financial crisis revealed some weaknesses in the financial market regulation and supervision, the Dodd-Frank financial reform legislation worked to address these weaknesses. The federal government has a big budget deficit and a much higher debt prior to the crisis. The Administrations goal is to reduce the federal budget deficit by 3% (of the GDP) by 2015.
General Climate within the Industry:

More people are becoming interested in what Apple computers can do so their sales continue to increase. This has resulted in an 8 percent market share for Apple. The research firm Gartner supports this fact by saying that Apple was the fifth most-selling PC company as of recently. Apple shipped an amazing 1.4 million MACs in the U.S only to be beaten by HP, Dell, Acer and Toshiba. The PC business (in total) shipped 17.4 billion PCs in the first quarter of 2010, which indicates a 20.2 percent jump from the same period last year. This indicates that the business is consistently increasing. "Although the first quarter is not typically a strong quarter for the consumer market, growth in the consumer segment was strong. We are expecting about 30 percent growth in the US consumer PC market in the first quarter of 2010. The positive economic outlook and affordable system prices drove US consumers to buy more PCs. These purchases either replaced aging PCs or became additions to buyers' households"(Mikako Kitagawa, Gartner).
External Analysis of PC Market in the US

Market value: The United States PCs market shrank by 8.6% in 2009 to reach a value of $45.9 billion. Market value forecast In 2014, the United States PCs market is forecast to have a value of $42.5 billion, a decrease of 7.4% since 2009. Market volume The United States PCs market grew by 7.1% in 2009 to reach a volume of 72 million units. Market volume forecast In 2014, the United States PCs market is forecast to have a volume of 103.2 million units, an increase of 43.4% since 2009. Market segmentation I Mobile PC is the largest segment of the PCs market in the United States, accounting for 60.7% of the market's total volume. Market segmentation II The United States accounts for 30.4% of the global PCs market value. Market rivalry Technological advancements in recent years have seen a significant increase in the threat of substitutes within the PC market in the form of smartphones, other handheld devices such as tablets and next generation game consoles.
Market analysis
The US PCs market has declined in recent years and after a period of steady growth in 2010, decline is expected to continue and last through to the end of the forecast period. The US PCs market had a total revenue of $45.9 billion in 2009, representing a compound annual rate of change (CARC) of -3.8% for the period spanning 2005-2009. In comparison, the European and Asia- Pacific markets grew with compound annual growth rates (CAGRs)
of 0.5% and 3.4% respectively, over the same period, to reach respective values of $46.4 billion and $40.7 billion in 2009. Market consumption volumes increased with a CAGR of 5% between 2005 and 2009, to reach a total of 72 million units in 2009. The market's volume is expected to rise to 103.2 million units by the end of 2014, representing a CAGR of 7.5% for the 2009-2014 period. Mobile PC sales had the highest volume in the US PCs market in 2009, with total sales of 43.7 million units, equivalent to 60.7% of the market's overall volume. In comparison, sales of desktop PCs had a volume of 28.3 million units in 2009, equating to 39.3% of the market total. The performance of the market is forecasted to continue in decline, however, at a slower pace, with an anticipated CARC of -1.5% for the five-year period 2009-2014, which is expected to drive the market to a value of $42.5 billion by the end of 2014.
Market Share
Hewlett Packard--27.5% Dell Inc.--25.4% Acer Inc.--14.7% Apple Inc.--8.1% Other--24.2%
This was the share price table from early this year:
As the table shows, the major drop from the share price on 1/16-21, the share price drops from $348 to $327 since the beginning of the 2011. This was the time that Jobs took a leave, because of his health concern.
Consumer Analysis
Baby Boomers
Who am I?
Male Business Executive
Experienced in the business world Open to new technologies Willing to learn Fair and positive Ethical
Who am I?
Female Business Executive
Determined and Accomplished Knowledgeable Tech savvy Democratic leader Upstanding principles
Who are the consumers?

Boomers like to be asked a lot of questions because that way they can demonstrate what they know, which is important to them. They want to be the experts. Wanting to feel important, bossing them around is counter-productive, they like to be formally addressed even if they are elderly. So, since they refuse to become old, Boomers intend to work well into their retirement and want to be part of inventing the future technology. They want to be part of the new. The way Boomers learn is that they want to be in charge of their own learning. They have a positive attitude. The attitude they share is all about being nice, fair and democratic, to treat each other as equals. Living History. The Baby Boomers are a group of consumers who have lived through definitive moments in Americas history including the first computers. Open to ideologies. This can also be applied to their brand choices. Take pride in being individuals rather than fitting in with the group. Large spending power. This market segment contributes to more than $1 trillion of spending power a year (Lee & Kiley, 2005)
o According to the AARP and Microsoft research by Michael Rogers, Boomers outspend the younger generations by an astonishing $1 trillion dollars in consumer electronics. Largely self-employed. They are particularly viable because the self-employment rate among older Americans is likely to grow as Boomers reach their sixties and discover they cant afford to retire(Mitchell, 242) Stay connected. Williams, Co-Founder of Success IQ University and President of Ray Williams Associates, Inc, writes in Psychology Today that a study conducted by the NPD Group uncovered that 41% of Baby Boomers frequently visit social networks in the form of Facebook and LinkedIn, and that 61% visit websites where you could stream and/or download movies and music. Use technology in daily life. Baby Boomers use technology provided to them at a surprising rate and contrary to popular belief, are quick to learn new products such as smart phones and new computers. o A study sponsored and prepared by AARP and Microsoft and conducted by Michael Rogers, an author, futurist, consultant and former Vice President of the Washington Post's media division shows that Baby Boomers welcome new technology as long as it is simple and easy to use, as one of the subjects in the study reports, Were all smart enough to read instructions just make sure its in English (Rogers, 2009, 2). Embrace Functionality & Practicality. They like to see the products they use to be functional, to have a purpose so to speak because they see no need to use a product if there is no practical application for it. Baby Boomers are not afraid to use new technology and they are often updated on new technology as long as there is something in it for them. Helpful. They often share the information they have about a certain product or technology with each other.
Location Out of home. Baby Boomers work, connect, and communicate from home. Office. Business usage in office. On-the-go. Communication, connections, and business accessible at all times through smartphones and other portable devices. Buying Process According to the book Leisure Programing for Baby Boomers written by Lynda Jeanine Cochran, 76% of Baby Boomers prefer getting information from others regarding different products and services they might buy (Cochran). Baby Boomers typically follow the following 6 of buying:
Made aware of a problem that you may have or that you may need a certain product
Search alternatives to what can fix your "problem"
Decide what brand or solution you want
Compare prices and choose best one
Decide if timing is right for purchase
Make the buy
*These steps can be applied to any consumer no matter the generation.* Baby Boomers have made the leap from a regular store to the online stores and do most of their shopping online. To market and understand what they want in a friendly buying process. The Baby Boomers like the costumer service that takes place face to face. Value the human interaction sometimes even more than the product itself. What motivates them to buy? At this point in their lives, usually Baby Boomers are settled and have money, thus they will take their time when making a purchase and consider the company that makes the product. The company must have:

Ethical Principles in high esteem Upstanding principles Justice and fair play Good Employee and Stockholder care Egalitarian Decision Making Forthright corporate communications An of the people, by the people, and for the people attitude
Motivation factors: Freedom. Boomers' ideals took form in an era when human rights and personal freedoms were main concerns, and Boomers like to apply these ideals to technology as well.
Adaptation. Boomers are motivated to buy technology that adapts to their lives and values they hold dear, instead of they having to adapt to technology. Simplicity. Another motivator is that technology should be easy to use and not have many unnecessary features. Flexibility. If cutting-edge technology is presented to them and clearly meets their needs Boomers are the first to adopt it but it is important that the technology they use is flexible to them as individuals. Security. Boomers also want to have security and privacy when it comes to using technology, especially for the older Boomers. How important is the Product or Service to them? In order to keep up with the times, Boomers must adapt to the fast paced technological advancements, especially in the business world. Everything in business is technology driven, making these products a necessity for success. How do they think or feel when buying a product? Boomers are joyful when they buy a product that they know will enrich their lives in some way. Boomers feel optimistic, delighted and very comfortable to buy a new product. They also feel like they are up-to-date when they buy the product. What do they look for in a product? Simplicity Flexibility Security Support
As the Baby Boomer generation ages out of their busiest life stage, they will look for meaningful leisure pursuits to fill their time (Mitchell, 2005, 415). This means that there will be more Baby Boomers trying to find ways to relate to their grandchildren (Generation Y) and chase the American dream by starting their own business. Clearly technology will become more and more important as Boomers pursue these meaningful leisure pursuits. Boomers blame manufacturers for creating unnecessary complexity (Mitchell, 2005, 415). because they are looking for technology that is easy to use they do not want something that is cutting edge if they cannot understand how to work it. Boomers use their understanding to do a number of things with technology. From sending emails to operating small businesses, Boomers are just as affected by the information age as their Gen X and Gen Y counterparts. For the Boomers who own their own businesses it is critical they stay ahead of the curve and make sure their younger employees find the technology easy to understand and navigate. It is no secret that the tumultuous 1960s has made these consumers rather self oriented and they pride themselves on the things they have accomplished so they want to be as savvy with their technology as their younger employees or grandchildren.
Whats the perception of Apple products? The Baby Boomer generation is either consciously or subconsciously searching for easier technologies to use (For example, the iPads easy to read, touch and use, with a large screen and fonts) However, as an independent group, they do not want to seem incapable. They want to learn new technologies, but often problems arise when manufacturers make that complicated. Most Baby Boomers blame them for making things too complex (Ray, 2010). Once learned, Apple is the most simple operating system there is. Many problems have been faced with searching for files within the hard drive, which MAC computers simplify. This is probably the most appealing factor of Apple products. Visually, you can see exactly where files are saved and located, where as other operating systems have complicated file names and locations. The iPad is one of the most popular products for the Baby Boomers. iPads appeal to Baby Boomers for the reasons listed above. The iPad has personalization settings to make it easier to use. When it comes to businesses, the iPad can be used as a large remote to all computers, taking notes in meetings, etc. With the popularity of the iPad, the consumers of it, are more inclined to purchase desktops and laptops by Apple because of the compatibility. Baby Boomers want technology that fits their lifestyles. If we can convince the Baby Boomers of the simplicity and versatility of the Apple computers (who also are the majority owners of small businesses in Hawaii) then we can attract the consumers of the competitors. How do they look at life? Baby Boomers (people over 50) make up almost one-third of the US population. Thats close to 106 million Americans (according to the US Census) controlling 50 percent of the countrys discretionary spending and outspending younger adults by $1 trillion in 2010. In the coming years, this number is expected to rise, and continue to rise through 2014. Consumers in their fifties show the highest intent to purchase consumer electronics among any age group. The first 77 million Baby Boomers are reaching the age of retirement. With this older age, learning to use new products can be challenging. As the Baby Boomers age, their vision, hearing and mobility becomes a challenge. Although these challenges occur naturally to almost everyone, a lot of the Baby Boomers deny that this is currently affecting them.
Generation X
Who am I?
Successful Buissnessman
Confident Tech Savvy Simplistic Ethical Father
Who am I? Excelling Businesswoman

Personable Adaptive Open to technology Logical Mother
Who are the consumers? As the Baby Boomers over the next few years will head towards retiring from the workforce, Generation-Xers (born between the mid-1960s and the mid-1970s) will be the ones moving into leadership positions. Since our targets are small business owners these are consequently the ones that we ultimately have to sell Apple products to. Value free time away from work Want freedom and creativity in work place Independent Confident Look for simplicity
How do they use the products? For necessity o Mobile/Online banking o Mobile/Online shopping o Email o Basic communication In correlation with lifestyle To save time
The overall use of online and mobile technologies among Generation Xers is constantly increasing. The amount of Generation Xers reading blogs and using social media is certainly rising, but its still much smaller compared to the similar amount of the younger generation. Generation Xers are known for their huge demand for information as well as their adaptability to change. Their greatest strength is said to be their ability to quickly evaluate and assimilate massive quantities of information from several different sources. Constant access to information at work is a must in order to assure that the Generation Xers feel capable and competent. Whats the buying process? Generation X has grown up, watching more television than any earlier generation. Consequently they have also come across more promotion in the form of commercials than any other generation. If finding a commercial anything else than sincere, they will ignore it.
Make decisions based on own judgement Credibility
Can be skeptical to unfamiliar Need dependable comparisons
Prefer getting credible product details Reliable information
Short-lived loyalty
What motivates them to buy?
Buy items they want Need to be reinforced constantly Don't like gimmicks
Generation X never had a unifying force, so if a product is considered popular amongst other Gen Xers, they will purchase the product for a sense of belonging. What do they look for in a product? Gen Xers look to be well informed on a product before buying it. Since we now have Internet and many ways of doing research, Gen Xers want to look at their options before purchasing a product. They also look for products that might provide balance in their life-style such as purchasing a computer in order to work at home and spend extra time with their children.
Whats the perception of Apple products? Gen Xers are technologically inclined since they are the first generation to grow up with computers. They see Apple as the trendy and simple option to technology. Since Apple is quick to innovate, and their products such as tablets and iPhones advance ahead of the competition, Gen Xers are more likely to purchase Apple products first. iPads are appealing for business and pleasure with the large screen and easy-to-use touch screen. How do they look at life? Gen Xers are distrustful of older generations due to most of them coming from a family of divorce and therefore value street smarts over traditional values. They want more than what their parents had and they are the first generation of the Consumption Age. They are least likely of the generations to form brand loyalty because they like to research their options and decide which product is best. Therefore, if a better product comes along they are likely to switch to it. If Apple is able to find a way to market itself as the best option, however, it will grab Generation Xs attention and attract the competitors customers.
Generation Y
Who are the consumers?
Young Professionals
Fastest growing segment of today's work force Confident Ambitious Goal-oriented High Expectations
People born between 1979 and 1995. Willing to trade high pay for fewer billable hours, flexible schedules and a better work and life balance. Categorized as prioritizing family over. Seek out new challenges and are not afraid to question authority. Wants meaningful work and solid learning curve. Value teamwork and seek the input and affirmation of others. Loyal Committed Want to be included and involved. Craves attention in the forms of feedback and guidance. Benefit greatly from mentors who can help, guide and develop their young careers. From the scale of the most trusted 15 brands named by the trendsetters Apple is the top on the list. Through the daily uses of the Generation Y. Apple items have become the most trusted brand to them (especially those between ages 16-32). How do they use the products? Gen Y is plugged-in 24 hours a day, 7 days a week. They prefer to communicate through email and text messaging, rather than face-to-face contact. Gen Y is students and employees who use and need Apple products. They are involved with technology and new ideas and electronic devices are a part of their everyday lives. Student use it to study, conduct research, surf the web or communicate with friends. College students bring their MacBooks to school use the computer in class. Workers from this generation use their Macs for job presentations, programs, or problem solving. GenY are trendsetters that prefer brands that present themselves in a straightforward way, and are more drawn to brands that are presented in simple ways with plain packaging. They grew up with technology and rely on it to perform their jobs, so the product is important to them. Marketing slogans have become part of the young worker lexicon. Live for today and Just Do It defines this group of young workers attitudes, beliefs and behavior, both in lifestyle and at work. MAC and iproducts have a very iconic slogan to attract and attach to
Generation Y. Apple fulfills the stylish and designable products the generation wants in their life. The Values of Generation Y
Self-expression is more important than self-control
Marketing and branding self is important.
Respect must be earned; it is not freely granted based on age, authority, or title.
Fear living poorlythis is related to lifestyle enjoyment, not wealth
Gen Y uses technological products 24-7, so they need quality products. They are extremely brand aware and look for innovative products with new and good designs. They also look for humor, irony, excitement, convenience in their products. Generation Y have a lifestyle of doing whatever they want and do whatever they like. They absolutely believe that miracles are possible. They refuse to work a job that does not bring them a sense of joy. They care about the earth and servicing their community. What Generation Y looks for in their Products Cheap cost Good quality Fast service An experience
Apple created the 99-cent download that took eight seconds to transact, they hit the nail on the head with Gen Y. Music is an experience, the quality is stellar, the cost is low, and the purchase happens instantly. They have been characterized as being brand apathetic, resenting obvious ad campaigns that target their psychological profile. Gen Y covers 32 percent of the consuming population of Apple. Like Allen Olivo (Apples previous senior director for worldwide marketing) said: For this generation, the computers are like a hot rod. Apple was one of the first to reach generation Y, and is now positioned at the top of the Gen Ys list of trusted brands. Now that Gen Y has begun trickling into the marketplace, Apple has the power to influence a majority of technology consumers, a leading edge that no competitor has been able to recreate. Survey of Gen Y Trendsetters Reveals Apple is Most Trusted Brand A recent survey conducted by Outlaw Consulting, a San Francisco research firm, concluded that Generation Y trendsetters are more drawn to brands that speak to them in a straightforward and stripped-down way, use plain packaging, and avoid excess, says Holly Brickley, an Outlaw strategic analyst, Kevin Ransom reports for MediaPost. Outlaw surveyed 100 of what it calls its most forward trendsetter panelists in New York City, Los Angeles, San Francisco and Miami, asking them which companies they most respected, and why, Ransom reports. The sample mostly targeted the first wave of Gen Y consumers, aged 21-27. The goal was to compile a Trust Index of brands that evoke deeply positively feelings among the trendsetters. The Most Trusted 15 Brands Named by the Trendsetters in the Survey Were 1. Apple 2. Trader Joes 3. Jet Blue 4. In-N-Out Burger 5. Ben & Jerrys 6. Whole Foods 7. Adidas 8. American Apparel 9. Target 10. H & M clothing stores 11. Levis 12. Volkswagen 13. Converse 14. Vitamin Water 15. Red Stripe Jamaican beer The survey was conducted in late 2006, before Jet Blue got a load of bad publicity when one of its planes sat on the tarMAC for several hours and wouldnt allow passengers to leave the plane, Ransom reports. The bottom line, concluded the survey, is that any company that is inconvenient or confusing, or that used over-designed imagery, is seen as out of touch and too corporate.
Geographic Analysis
Index
Any Apple
40-58 59-74 75-100 101-110 111-125 126-149
The majority of MAC users tend to be concentrated in urban areas rather than in the country parts of America and approximately 20% of Americans above the age of 18 are in possession of an Apple product.
Geographic Location of MAC Users

1. San Francisco/Oakland/San Jose, CAThis is where Apple has its headquarters so it is not surprising that most of the countrys MAC users and owners are located here. According to the website Edible Apples article, The Density of MAC Users across the US, 49% of the population in this area is more likely than average to use and own Apple products. 2. Boston, MAThis city has 11 MAC stores, which makes it easy to purchase Apple products. The population in Boston is 45% more likely than average to own or use MAC products. Around one in three people over the age of 18 own or use an Apple product. 3. San Diego, CAThe residents in this area are 42% more likely than average to use or own MAC products. This puts San Diego in the third position in this geographical list of Apple users.
4. New York, NYAccording to the Density of MAC users across the US, New York is the home of the iPhone so it is no surprise that this is number four on this list. In this state around 4.9 million out of 16 million people own or use an Apple product. 5. Washington, D.C.39% more likely to own or use an Apple product. 6. Chicago, ILIn Chicago the percentage of residents who use or own an Apple product is 36% more likely than average. 7. Denver, COIn Denver, people are 35% more likely to own or use an Apple product. 8. Monterey-Salinas, CADespite having only one Apple store, people in these parts are 30% more likely to own or use an Apple product. 9. Santa Barbara/Santa Marina/San Luis Obispo, CA30% of the residents in these areas own or use an Apple product and 141,000 adults in this area are Apple users. 10. Las Vegas, NVEven though they are tied with number 9 in this list in Nevada only 104,000 people use Apple products and are 30% more likely to use or own an Apple product.
In January 2008, a map of the United States showing Apples market share by measuring the usage share of all MACintosh operating systems was created by the Internet Usage Trend Analysis Company.
Product Analysis
Apples Consumers
Many of Apples consumers are students, graphic designers, and those who do other creatives. Apple provides a lot of software that features these types of demands. Based on multiple surveys, Apple users are the most satisfied consumers. In 2010, Apple received its highest customer satisfaction score (according to the American Customer Satisfaction IndexACSI). Windows PC makers however, also have a high satisfaction score due to the success of Windows 7. Among the PC leaders:

Apple had a score of 86 on a scale from 0 to 100. That tally was Apples highest ever. Dell, Acer and HP have a three way tie at 77.
Claes Fornell, director of the National Quality research Center at the University of Michigan, said in a commentary:
Many companies, including General Electric, Wells Fargo, Mercedes-Benz and Medtronic, are using Apple iPads in their offices. Tens of millions of iPads will be be used in workplaces in the US by 2015 (New York Times). According to CNN FORTUNE's survey, they asked businesspeople to vote for the companies that they admired most, from any industry, and Apple is awarded to the Worlds Most Admired Company in 2010. With Apples products, people can do multiple tasks, such as buying music, designing advertisements and surfing the Internet wherever people are in the world.
The essence of Apple is largely associated with the youth of the world. Its product line offers a number of small and large gadgets to play music, edit videos, or record a song on top of the other services offered by PC technology. Apple capitalizes on this in their advertising campaigns. On their MAC vs. PC commercials they represent the MAC with a charming young man and an older gentleman with glasses represents the PC. This is an instant representation of how Apple thinks of itself. MACintosh computers are hip and aesthetically pleasing, but they are also useful too. MACintosh professional photographers, music producers, and video editors often consider computers the artists computer because it has so many applications that are used. Thus far, Apples branding strategy has proven to be very successful. Apple is actually known to be one of the worlds leading brands. Its brand is said to be the mere reason for the companys success, survival and the answer to why MAC users are so loyal. Apple is classified as a typical emotional brand, loved by its customers. According to Marketing Minds, half of all computer sales comes from people who are new to the MAC world (2008). Apples brand equity is evident in their products efforts. For example, when the 3G iPhone was launched in July 2008 the buzz resulted in over 1 million units being sold in the first 3 days of its release in over 20 countries around the world (Manning, 1, 2008). In 2001, Apple was awarded Brand of the Year by Brandchannel.com. Also in 2008, Apples brand ranked 24th in the world among the worlds best brands and is now ranked 17 by Interbrand with a value of $21,143 million.
Competitive Analysis
MAC VS. PC
Development and Distribution: Market Reach: MAC PC
MAC OS X is developed and distributed by Apple Inc. Placed to attract higher income demographics iLife, iTunes, Time MAChine, Safari browser MACintosh Operating System; also allows Windows. Higher than an average PC Since MACs are not so popular as compared to PCs, there are fewer viruses written to target MACs. Can open some PC files and can coexist on local networks with PCs.
PCs are manufactured by hundreds of manufacturers. Wide reach to all stratas.
Popular Applications: Software:
MS Office, Internet Explorer
Various versions of Windows operating system. Generally cheaper than MAC. Being the popular desktop choice, most virus writers target Windows systems. Compatible with everything except sometimes with file types specifically for MACs Traditional Intel based microprocessors.
Price: Virus attacks:
Compatibility:
Processors:
Based on the Intel microprocessors now, while PowerPC processors were used earlier. Apple Computers is the only manufacturer of MACintosh computers. Short form for MACintosh and refers to any computer produced by Apple Computer. Price ranges from $600 to $4,000 Apple Support, upgrades have to be done by Apple.
Manufacturer:
Widely produced by companies like IBM, Dell, Compaq, Acer etc. Refers to any computer operating on the Windows Operating System. Price range: $250-$2000 Any knowledgeable person can perform repairs and upgrades.
What is it?:
Cost: Repairs:
A PC generally refers to a computer that runs on the Windows operating system. It is also defined as an IBM-compatible computer, thereby meaning that its architecture is based on the IBM microprocessor. A number of different operating systems are compatible with PCs; the most popular of which is Microsoft Windows. Some others are the UNIX variants, such as Linux, FreeBSD, and Solaris. On the other hand MACintosh, commonly known as MAC, is a brand name which covers several lines of personal computers designed, developed, and marketed by Apple Inc. The MAC is the only computer in the world that can run all the major operating systems, including MAC OS X, Windows XP, and Vista. With software like Parallels Desktop or VMware Fusion they can be run side by side.
Operating System
MAC operating system has traditionally been more stable than Windows. The main reason for this is that since Apple produces both the hardware (MAC computer) and the software (MAC operating system); they have better control over the integration of the entire system. Since the Windows operating system can run on hundreds of different types of computers, variations in hardware configurations within those computers can cause stability problems. Another reason for this is also that since PCs are the more popular choice in the Desktop market most hackers and virus writers target PCs making the MAC OS not a common target for virus attacks. Thereby making it more stable. MACs now ship with the MAC OS X operating system. Since Apple MACs now run on Intel processors, they can run Windows. Apple has also released a software kit called Bootcamp for running Windows on the MAC.
Uses
MAC computers are most widely used in the creative professional market, including journalism and desktop publishing, video editing and audio editing, but have also made inroads into the educative and scientific research sectors. PCs are also used with some of the video and audio editing and research purposes but are found largely as the Home or Office Computer. PCs are also widely used in gaming due to a wider variety of games available for the Windows platform .
Apple
Strengths
Apple has an advantage over the competition with diversity in their products and services not just dealing with technical usage such as printers, servers, and computers, but with entertainment services as well as lifestyle apps in iTunes, for iPads, iPhones and iPods. Strong brand perception Strong brand loyalty Can recruit and retain costomers Simple, attractive design
Weaknesses
Steve Jobs is having problems with his health. Associated with high prices MACs cannot be fixed by just anyone. Weak presence in business sector
Threats Opportunities
Large population of Gen X and Gen Y who are brand conscious Companies not seeing Apple as compatible with their software Microsoft launched Microsoft Vista, Windows 7 which is gaining market share.
Acer
Strengths
Low price which is hard to compete with (Prices found ranging from $250 - $850) Broad product range with matching broad price range Offers reasonable solutions for reasonable prices Operational efficiency tight control on overhead costs Improved economies of scale Fast reactions to market changes after cautious ROI evaluation Aggressive price strategy particularly suitable to a time of economic recession Strong global logistics Strong relationships with suppliers
Weaknesses
Common brand with lower status Even the most expensive model is considered low quality Low brand equity Low profit margins Multiple brands, which increase costs and dilute resource Brand perception as low-cost PC provider Insufficient attention to the Chinese market the second largest in the world Limited product portfolio for midsize business
Opportunities
Economic downturn, which favors low-price products Growth of mobile PCs in homes in emerging markets, where brand preferences are weaker Growth into the Chinese market Growth into midsize-business markets Reaching larger numbers of customers by targeting various segments through multiple brands
Threats
Continued price decline in mobile PCs, due in part to Mini-notebooks, which erodes margins and profitability Excessive reliance on western Europe, which contributed 40% of Acers total mobile-PC revenue in 2008 Dells expansion into indirect sales Samsungs entering into consumer mobile PCs Profit margin squeezed by sales to telecom service provider
What is the companys position in the market? As of 2011, ACER has become second among the PCs following right behind HP, and is expected to even surpass HP this year and become the number one PC distributer. In 2010, HP and Acer switched ranks every other quarter but HP came out on top due to acers slowdown in the consumer mobile PC market, and was also impacted by weak sales in the mini-notebook segment. According to Forbes, Acer is a favorite among those who are cost-concerned and it is attempting to bring its business to the schools. Here, HP, Dell, and Apple still dominate. Acer, however, does already have good standing in small and medium businesses. These types of businesses accounted for 30% of the Acers revenue in 2009. Since Acers branding technique is more tactical rather than strategic, however, Acers brand doesnt make the Top 100 on Interbrands rank of the worlds most recognized brands whereas HPs brand ranked 11. Out of the three top PC brands, Acer is considered the worst when it comes to marketing; and in 2008 it completed a double merger, giving it three brands to manage, making branding more and more complex in comparison to HP. ACERs productivity is a result of its purchase of Gateway Inc in 2007, which allowed Acer to make an impression in the United States. This was the boost that brought Acer to number two. Its growth can also be attributed to its focus on low-cost netbooks. Acers sales of netbooks in quarter one of 2010 accounted for 80% of Acers shipments. Acer has had a long-term success in indirect marketing. As a matter of fact, its known to be the only one among the top brands, which is 100 percent indirect, meaning that they dont sell directly to their customers. Due to Acers focus on global marketing the company has had one of the fastest economic growths among the actors in their market. The successful merger of Acer, Gateway and Packard Bell has strengthened Acers presence in the US and secured its strong position in Europe. The uniting of these also resulted in the creation of a new branding strategy. Their strategy implies a local and a regional market focus, as well as utilization of the positive pieces of knowledge the companies (Acer, Packard Bell, Gateway and eMAChines) have developed over time in order to preserve the individual identities and personalities of each brand. By the introduction of the Aspire line, Acer America took the industry into a new era. The ad budget was increased and their marketing became more aggressive. Traditional and lesstraditional magazines were flooded with the Everything You Aspire To campaign. As a consequence of the effort put on marketing, the Aspire line also got huge play in the likes of Business Week and Forbes.
This chart represents Acers growth between 2009 and 2010 compared with the growth of competing industries in order to demonstrate that Acer has the third highest amount of growth and is thus most likely to surpass its top competitor Hewlett-Packard, whose growth did not reach half as much.
Hewlett Packard
Strengths
Strong marketing position Large amount of cash in hand, ten billion dollars Strong brand name recognition Operating in 170 countries big market Dominate the global printing market 40% of market share (both laser and inkjet) Organized into seven business sections with strong positioning. Customer services, consulting, maintenance and technology services
Weaknesses:
Previous debt which kept HP from investing in different growth opportunities. Touchpads need improvement (they are unreliable and difficult to use because of friction) Weak market segment integration Pay cuts has brought low moral to the employees. Rely on third-party suppliers Financial condition in the world leans heavily on the economy in the company
Opportunities:
Expanding portfolio of imaging and printing solutions Invest in different research activities They have formed Customer Solutions Group (that helps in selling the complete IT solutions, products and services by HP).
Threats:
Many competitors Global economic recession Competitors focus and progress in the printer market Foreign currency exchange rate changes Retaining technical Projected decreases in the IT markets (worldwide spending on IT was predicted to decline by 4% in 2009)
Apple Inc. is comparable with major companies such as Hewlett-Packard, Dell Inc. and Acer Inc. Apple is the company with the least amount of the market share at 8.1%. Hewlett-Packard is the leading holder of shares in the market with a total of 27.5%. It is also one of the leading global providers of technology products, software, solutions and services. Their broad range of customers reaches from individuals to large corporations with small and medium sized businesses. Hewlett-Packards products are offered, developed, and manufactured all across the world including facilities in the US, UK, Israel, Ireland, the Netherlands, China, India, Japan, and Singapore. HP reaches some market segments that Apple does not, such as image printers as well as document printers. However, at the same time HP does not offer the same products and services that Apple does in terms of iTunes, Apps, iPhones, iPods etc. In terms of tablet computers such as the Apple iPad versus the HP Touchpad, Apple is the leader. Over the last five years, HP has become a much more agile company, able to adapt and benefit from changing market conditions. In fiscal 2009, they have gained share in key markets and continued to invest for growth in research and development, acquisitions, and sales coverage. Hewlett-Packard lists Apple Inc. among its top competitors Revenue Comparison The company recorded revenues of $114,552 million during the fiscal year of 2009, a decrease of 3.2% over 2008. The decrease in revenue was mainly due to unfavorable currency impact. In 2009, the US, the company's largest geographic market, accounted for 36.1% of its total revenue. In comparison, Apple recorded revenues of $42,905 million during the fiscal year of 2009, which was an increase of 14.4% over 2008. The rise in revenue was mostly due to the escalation in sales of iPhone handsets, and third-party digital content and applications from the iTunes store. The US accounts for 44% of its total revenue. However, U.S. demand for computers is down, which would usually cause a decrease in revenue for companies (like HPs 3.2 decrease). Apple has shown a 14.4% increase.
Dell
Strengths
Biggest PC maker in the world They deal directly with the customers with no use of a middle man They design the computer to the customer's specifications Their assembly is done at a fairly inexpensive cost They offer their customers the ability to track their delivery They are the number one PC provider for medium and small businesses across the US for 10 straight years They ship around one hundred and forty thousand computers in a day They have very good branding and are one of the most known computers in the world
Weaknesses
Dealing with a large amount of supplies from many different countries can cause a large issue when products are recalled They build computers, not develop them, so design is not a strength Their supply orders are so large that they become limited to dealing with a few supplies that can handle the volume They have weak business relationships with many computer retailers They do not have unique technologies to offer the market
Opportunities
Maintaining the excellent lead that was developed by the founder, Michael Dell will be challenging The introduction of new and enticing products to the customers Branding their lower cost, lower priced computers that are sold anonymously throughout the world to open other avenues of branding opportunities Maintaining and expanding the one stop shopping abilities that are offered to their customers Continuing to market on the internet to gain larger market bases Broadening their scopes in Europe, India and China Expand into government and education markets
Threats
Increasingly popular brand names in the competition Strong relationships that are held between competition and the retailers Competition can basically create the same computers since Dell builds computers, not designs them Fluctuations in the currency markets can make global business operations more open to losses in certain areas of the supply chain Tariff trade barriers affecting their positions in multiple countries Increasingly lower prices for products amount their competitors
Dell has been up and down these past couple of years, but in this last year (2010) Dell has stagnated in the number 2 position.
Dell is the World's largest PC maker. Profits for 3 months in July 2005 were in excess of $1 billion where the US represented a growth of around 28%. For the last couple of years, it has held its position as market leader (it took it from rivals Hewlett-Packard). The Dell brand is one of the best known computer brands in the World. Dell extends network computer lines in order to beat the competitors, including Acer and Apple. Moreover, while keeping the market share in the PC market, Dell also expands in other areas, including mobility products, desktop personal computers, software, networking, services and enterprise software. PC had about 55% of the sales in the 2010 fiscal year. Dell tries to boost its Advanced Infrastructure Manager system, which simplifies data center management using a virtual integrated system of management tools, such as networking (Hoovers, 2010). In addition, Dell provides financing alternatives, asset management services, and other customer financial services for not only consumer customers but also businesses, such as government, healthcare and education accounts. It also markets third-party software and hardware. Dell has a lot of international revenue from developing markets, such as Brazil, China, India, and Russia, so even though its sales in the US have decreased, its annual sales are made up in other numbers..
Problems and Opportunities

Overview:
According to our survey, small business owners in Hawaii perceive MAC computers to be expensive. Therefore, through our campaign efforts, we want to change MACs expensive image to a long-life product with the mentality that MACs will eventually cause their business to MAKE money and save money in other respects. In addition, our TM tends to think of computers as just a tool, so we want to inform and educate them that MACs are not just a tool but an agent. We need to emphasize that if the TM were to choose a MAC, they would be choosing quality over quantity. We need to emphasize that Macs are good business decisions and in the end, they will make their business more profitable than if they had continued using a PC.
Problems
Opportunities
Price
It is expensive with no cheap alternatives in comparison to PC.
To change the focus from "expensive" to durability. Apple Financial Services- leasing computers and get service.
Fear of Change
TM is used to PC and view MACs as harder to use.
Educate people by advertising that Apple does offer free workshops to help those who feel that they lack knowledge about Apple products Develop a campaign where the TM can receive a free printer with the purchase of a new computer.
Compatibility
MACs are not compatible with all devices so if companies switch to MAC, they may have to purchase new printers, projectors, etc. TM does not really have a place to turn to when they have problems with their MAC and have difficulty getting it fixed.
Service Availability
Have a MAC Genius (for example) to come to the companies and have a Business section in stores. Use association words like MAC masters for business owners.
Target Market Analysis

Market Segmentation
Restaurant Retail Service
Qualities and Applications
Graphic Design User Friendly
Microsoft Outlook Data Storage/Server Space
Sound/Graphic design Virus Protection
Primary Use
Taking Orders Payroll
Storing Client Information Research and Development
Research and Development Sound/Graphic Design Data Storage
Before conducting a survey to define our target market, we segmented the types of small businesses into 3 different categories; Restaurant, Retail, and Service. Research led us to choosing these three categories and we left a space for other just in case these categories did not cover all of our target market. We received 50 responses to our survey as well as were able to conduct interviews with 10 small business owners or theyre employees. The results showed that most business owners perceive computers as tools. They only use computers to store information and/or do research. Employees of these small businesses preferred, on average, to be using a MAC and owned at least one of Apples products. Many if the business owners felt the same but do not switch because they perceive MACs as too expensive. Business owners that preferred their PC to a MAC did so because they felt that MACs were too hard to operate and that PCs are more compatible with their company. Lastly, those who preferred MACs felt as if their PCs were doing the job and that they did not have a need to switch to MACs.
Business Owners:
Who are they? What do they spend on? How do they shop?
Baby Boomers/Generation X Straight to the point Brand loyal but dont mind changing if it is good for them. Commonly use PC because of price Dont like when technology challenges them They buy out of necessity (most of the time) Upgrade technology frequently
Health Insurance Computers Television Smartphones Children/Grandchildren
In store or Online Compare prices Spend by necessity
Business Owners in Hawaii:
Who are they?
What do they spend on?
How do they shop?
Baby Boomers Brand loyal but dont mind changing if it is good for them Commonly use PC because of price They buy out of necessity
Health Insurance Computers Television Smartphones Children/Grandchildren
In store or Online Compare prices Spend by necessity
Industry Breakdown
4.10% 10.20% Restaurant 32.70% Retail Service Other
53.10%
Over fifty percent of the people who responded to our survey listed themselves as other. After close examination we found that they were actually service providers such as promotion companies and tour operators. When we looked at our research even closer we found that there were no significant factors that indicated why certain industries prefer PCs, compared to the industries that prefer Apple computers. The industries that preferred Apple computers clearly preferred it because of how user friendly it is and how durable it is in comparison to other computers on the market.
The Reasons Why Companies Purchase Computers

13.60% Most affordable 31.80% 27.30% Easiest to operate Best software Provided by the employer 22.70% Commonly used and preferred within the industry
34.10%
According to our survey, industry preference is the consumers main concern when purchasing a computer. The next deciding factor for purchasing a computer is how user friendly it is. Next business owners consider the software and finally affordability. The other 34% of our research comes from employees who have little to no choice in terms of the technology that they use at work. By making our target market better informed about the product we can capitalize on the fact that they consider affordability least important.
Campaign Objectives
Corporate:
Increase the brand preference among small businesses in Hawaii by 20%.
Marketing: Increase sales in the small business Hawaii market by 3% Increase market share within the target market by 1% Creative/Advertising/PR: Change the attitude/perception of business owners towards MAC by 5% Make the target market see that: MAC is an investment, rather than a tool MACs make sense MACs are simple to operate rather than complicated Apple has always been ahead of the competition as far as development and technology goes, and that if they want to "be there" in the future, Apple (MAC) is the way to go Apple (MAC) has a award-winning support system which will take care of you and stay with you Media: Reach 80-90 % of the target market with TV, Radio, Print Ads, events and flyers by December 31st, 2012 Promo: Reach 30 % of the target market with flyers inviting them to a free workshop/conference Reach 90 % of the target market with offers of a free printer with the purchase of a MAC.
Print Ads
Pros
There are different types of print media Has a loyal readership (especially magazines and news papers) Enables Geographical targeting Offers different sizes and prices Reader can choose when to see the ad and have the ability to return to it Pass along Visual appeal, which Apple is most none for Costly in most cases Shelf life of any print medium is limited Clutter Long planning ahead time.
Cons
Objective:
To increase the awareness of Macs benefits and educate small business owners in Hawaii Overview: Considering this campaign is targeting a very specific market, which is small business owners in Hawaii, it is crucial to reach them through a specialized medium where we actually reach small business owners and not the entire mass. Therefore, the print ads will be published in local monthly magazine Hawaii Business, and the weekly Pacific Business News newspaper. Both have high reach, good credibility, and are demographically appropriate. The ads follow the already well-established image that apple has, which is simple, elegant, and clean. All the ads have a white background and a dominant image element, usually a Mac computer, followed by a short powerful copy. The ads portray the money tree theme and the slogan Macs make sense that is consistent throughout the entire campaign. The money tree symbolizes the investments and growth of the business that follows once incorporating a MAC. Colors are few and clean such as white black and grey. The ads are intended to serve as a reminder but also to create more awareness about Macs being good investments for businesses. Primary research showed that small Hawaii business owners are comprised of Baby Boomers who like technology and want to be
updated. Thus, they are on the internet frequently so online advertising on the KiTV website makes sense for this campaign even though online advertising targets a very broad audience. In overall the print ads are going to entice the business owners to switch their old computers to a Mac for better return, and the second part is to create awareness for the new exclusive Mac Masters club which in fact works towards the former goal.
Print Ads
KITV Online Banner Ad
Media Strategy
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Hawaii Business Magazine Back Cover Full page Color 4 times Hawaii Business Magazine Page, Color 8 times Pacific Business News Page, Color 15 times Pacific Business News Page, Color 15 times #2 #2 #2
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Direct Mail Invitation Brochure
Commercials
Pros Cons
Objective:
Visual appeal Everyone on average owns more than one television Can reach a lot of people Has the ability to reach specific demographic and lifestyle segments. More creative flexibility due to the ability to have sounds and movement. Many people channel surf. High costthere are many fees involved. More and more businesses are choosing this type of medium thus there is clutter.
To create the image of MACs as being a business tool and to increase awareness of the benefits of MACs.
Overview:
A T.V. commercial would be very beneficial to our campaign as it shows the use of MACs in a business atmosphere. T.V. commercials have the benefit of being able to reach specific demographic and lifestyle segments and thus running the commercial during the morning news would be the best execution for this commercial. The commercial is to follow the structure of the already-popular MAC commercials previously used in marketing and also would include the same actors. Justin Long will introduce himself as usual as being a MAC and John Hodgman would then introduce himself as being a PC. The rest will follow with Justin Long subtly hinting the benefits of a MAC and John Hodgman subtly showing the downfalls of a PC. Overall, the commercial is intended to appear as if it is like every other commercial because our primary research showed that our target market, the Baby Boomers, do not like gimmicks and they like feeling young. The same structure of the commercial also serves as a way of keeping the current target market since this structure has already proven to be an effective way to reach them. It also allows adaption if Apple would like to run a similar campaign pending the success of this campaign.
Storyboard
Video Scene 1: *Cut *Long shot Two men standing side-by-side. *3 secs. 2 secs. Background music throughout the commercial Scene 1: Picture Audio Scene 1: Justin Long: Hello, Im a MAC. John Hodgman: and Im a PC.
Video Scene 2: *Long-shot *Cut Justin Long changes into a business suit and walks into a room, holding his Mac, filled with a group of John Hodgmans (dressed in white t-shirts and jeans) working on their PCs. *4 secs Scene 2:
Picture
Audio Scene 2: Noise of people working around the room. *4 secs
A p p l e M A C C a m p a i g n | 55 Video Scene 3: *Medium-shot *Cut *Justin Long puts down his Mac and starts using it for his business. *3 secs Scene 3: Picture Audio Scene 3: Background music
Video Scene 4: *Close-up *Cut As Justin Long starts using his Mac, a tree begins growing and suddenly money starts falling from the tree. *4 secs. Scene 4:
Picture
Audio Scene 4: Tree growing sound track. *2 secs Money dropping sound track. *2 secs
A p p l e M A C C a m p a i g n | 56 Video Scene 5: *Long-shot *cut John Hodgmans starts catching the money from the sky and become happy and start cheering. *3 secs Scene 5: Picture Audio Scene 5: Cheering noise around the room. *3 secs.
Video Scene 6: *Medium-shot *cut As soon as he is done using his Mac, the money tree immediately sucks back into the Mac like a vacuum and disappears. John Hodgmans are sad about the money disappearing. They all ask where did the money go. *5 secs. Scene 6:
Picture
Audio Scene 6: Sound of Tree and money sucking back into the Mac. *2 secs. Whispering amongst themselves where did the money go? *2 secs.
A p p l e M A C C a m p a i g n | 57 Video Scene 7: *Medium-shot *Cut * Justin Long stands up and walks towards the door but he turn back. *3 secs. Picture Audio Scene 7: Justin Long speak Macs Make Sense *1 sec.
Macs Make Sense
Video Scene 8: *Close-up *Cut MAC Products appear on the screen. *1 secs. Scene 8:
Picture
Audio Scene 8: Background music
*1 sec
A p p l e M A C C a m p a i g n | 58 Video Scene 9: *Close-up *Cut *MAC Screen comes up and the slogan comes up *2 secs Scene 9: Picture Audio Scene 9: MACs Make Sense.
Media Strategy
Jan TVCommercial: 2 weeks: (First and second week in the month.) Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Event
The Ws
Mac Masters Club
Mission: Empowering Hawaii business owners through mastery of Apple technology. Who: Small Business owners in Hawaii that exemplify mastery of his or her industry/business What: Members will have access to training courses that teach them how to operate their Mac computers beyond their basic functions. They will also be given exclusive workshops to try out new products and software before they are released. When: The Masters program will begin distributing invitations to the MMC at the end of January 2012 and the first mixer/meeting will be held in early March 2012. Why: The MMC will create exclusivity within the business world among Apple users. We will teach the best business owners how to master Apple products and help them stay a head of their competition.
Timeline
Mac Masters
1. Saturday, March 3, 2012

Where: Purpose: Honolulu Design Center Cupola Theatre Introduce guests to MMC and invite them to join and suggest other members. Giveaway iPad 2 and hear keynote speaker. Keynote Speaker: Topic: Dr. Edward de Bono The importance of Creativity in business and building creative Teams
2. Saturday, June 2, 2012

Where: Purpose: Honolulu Design Center Share best apps and software for businesses to download and use.
3. Saturday, September 1, 2012

Where: Purpose: Honolulu Design Center Running Mac as PC and elect new members for 2013.
4. Saturday, December 1, 2012

Where: Purpose: Kahala Hotel To celebrate the years accomplishments and meet incoming members for 2013.
Press Release
FOR IMMEDIATE RELEASE

Contact: Chanel Wayne Public Relations Executive Chanelwayne@gmail.com 808-904-3679
Apple Selects a Chosen Few in Hawaii to Their Mac Masters Business Convention Honolulu, Hawaii, January 1, 2012- Apple Inc. will launch their first Mac Masters Convention (MMC) at the Honolulu Design Center this coming March. A select number of small businesses in Hawaii will be personally invited. A time and date will only be disclosed to those on the guest list and sources say that this convention is one of four that will occur this year. These exclusive events are designed to provide these businesses with Mac information that will enhance their business operations and technology. The guest list is made up of an estimated 20 people who are at the top of their industries; more specifically business owners who have mastered their industry and are looking to leap ahead of their competition says Denae Panis, Market Leader at Apple Retail. Apple computers will be featured at the event to help guests further acquaint themselves with the products. Each workstation will dedicate itself to a Mac success story or business owner who has already proven themselves as Mac Masters. Along with dinner and an open bar, the selected guests will receive an iPad 2 and hear a presentation by Edward De Bono. The author and creator of the term lateral thinking, will discuss the importance of creativity in business and how to build creative teams in the work place. For more information about the Mac Masters Club, please contact Chanel Wayne at 808-904-3679 or visit www.apple.com/macmastershawaii.
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Invitation
Brochure (Outside)
Brochure (inside)
Budget
PRINT ADS
Hawaii Business (1/month) Target Audience: Business owners and business affiliates Total reach per month: 12,347 + pass along Amount Full color (4th cover, whole page) Full color (1/2 page) Total: $ 5460 $ 2885 Cost per item 4x 8x Total Cost --- $ 21 840 --- $ 23 080 --- $ 44, 920
Pacific Business News (1/week) Target Audience: 49 year old males and females in the high end of business industry (i.e. CEOs) Total reach per week: 12,655 + pass along Circulation: 65,000 Cost per item Amount Total Cost
Full color (1/4 page) Full color (1/2 page) Total:
$ 2279 $ 3584
15 x 15 x
--- $ 34 185 --- $ 53760 --- $ 87, 945
KITV - Online advertising (1/month) Ads on the header banner and/or the sides of the site. Reach: 2-2.5 million per month. At minimun 100,000 impressions (visitors) per month. Target Audience: Everyone Cost per item Amount Total Cost
Any type of Ad Total:
$ 2000
12
--- $ 24000 --- $ 24000
Direct mail + Thank You-letter (event) Direct mail: Mention the number of firms in Hawaii. Out of 30 000 business firms, you have been chosen to Cost per item Amount Total Cost
4 x 6 Postcards Total:
$ 30
1000
--- $ 3000 --- $ 3000
COMMERCIAL
KITV4 News This Morning Runs 6:00-7:00 am Reaches 90% of households in the State of Hawaii Cost per item Amount Total Cost
30 second ad
$ 200/sec
Once 3 times a day 3 times a week 2 weeks a month 4 periods
--- $ 6,000 ---$ 18,000 ---$ 54,000 ---$ 108,000 ---$ 432,000 ---$ 390,000 --- $ 472,000
Production Costs Total:
EVENTS
Seasonal Sales Promo Event (First Quarter) Cost per item Amount Total Cost
Keynote Speaker + Flight + Hotel Apple Genius Invitations
$ 42,000 $ 15 $2
1 hour 30 30
--- $ 42,000 ---$ 450 ---$ 60
Decorations Brochures Goodie Bag (iPad 2) Location (Food Included) Chairs Wired Microphone Microphone Stand Microphone Cable (20) Lighting Tech Support Sound Tech Support
$ 100 $2 $500 $ 3400 $10 $35 $15 $8 $65/hr $85/hr
N/A 30 30 1 60 1 1 1 6 hrs 6 hrs
---$ 100 ---$ 60 ---$ 15,000 ---$ 3,400 ---$ 60 ---$ 35 ---$ 15 ---$ 8 ---$ 390 ---$ 510
Total:
--- $ 62,088
Seasonal Sales Promo Event (Second Quarter) Cost per item Amount Total Cost
Invitations Apple Genius Brochures Decorations Location (Food Included) Chairs Wired Microphone Microphone Stand Microphone Cable (20) Lighting Tech Support
$2 $15 $2 $ 100 $ 3400 $10 $35 $15 $8 $65/hr
30 30 30 N/A 1 60 1 1 1 6 hrs
---$ 60 ---$ 450 ---$ 60 ---$ 100 ---$ 3,400 ---$ 60 ---$ 35 ---$ 15 ---$ 8 ---$ 390
Sound Tech Support
$85/hr
6 hrs
---$ 510
Total:
--- $ 5,088
Seasonal Sales Promo Event (Third Quarter) Cost per item Amount Total Cost
Invitations Brochures Apple Genius Decorations Location (Food Included) Chairs Wired Microphone Microphone Stand Microphone Cable (20) Lighting Tech Support Sound Tech Support
$2 $2 $15 $ 100 $ 3400 $10 $35 $15 $8 $65/hr $85/hr
30 30 30 N/A 1 60 1 1 1 6 hrs 6 hrs
---$ 60 ---$ 60 ---$ 450 ---$ 100 ---$ 3,400 ---$ 60 ---$ 35 ---$ 15 ---$ 8 ---$ 390 ---$ 510
Total:
--- $ 5,088
Seasonal Sales Promo Event (Fourth Quarter) Cost per item Amount Total Cost
Keynote Speaker + Flight + Hotel Decorations Brochures
$ 42,000 $ 100 $2
1 hour N/A 30
--- $ 42,000 ---$ 100 ---$ 60
Apple Genius Goodie Bag (iPad 2) Chairs Wired Microphone Microphone Stand Microphone Cable (20) Lighting Tech Support Sound Tech Support
$15 $500 $10 $35 $15 $8 $65/hr $85/hr
30 30 60 1 1 1 6 hrs 6 hrs
---$ 450 ---$ 15,000 ---$ 60 ---$ 35 ---$ 15 ---$ 8 ---$ 390 ---$ 510
Total:
--- $ 62,088
TOTAL ESTIMATED COST:
$766,217
References
(2005). Gen-X is Getting Older. Cornerstone Business Solutions. Retrieved March 03, 2011, from http://www.cornerstoneresults.com/RefLib/KnlgeBk/mrkt_mr_genx_is_getting_older.htm (2009, January 21). Apple Reports First Quarter Results. Apple Inc. Retrieved from http://www.apple.com/pr/library/2009/01/21results.html (2010, December 10). Apple Description. Businessinsider. Retrieved from http://www.businessinsider.com/blackboard/apple (2011, January 25). Global Recovery Advances but Remains Uneven. IMF Wolrd Economic Lookout. Retrieved February 21, 2011, from http://www.imf.org/external/pubs/ft/weo/2011/update/01/index.htm (2011, January 31). World Economic Growth in Year 2011. MaloMaal. Retrieved February 1, 2011, from http://www.malomaal.com/economics/world-economic-growth-in-year2011/ Aridas , T. The Worlds Richest and Poorest Countries . Global Finance. Retrieved February 24, 2011, from http://www.gfmag.com/tools/global-database/economic-data/10299the-worlds-richest-and-poorest-countries.html#axzz1DbNWrCGx Briand, Paul. (2009, January) Polls Assess Baby BoomerTechnology Use. Examiner.com. Retrieved from http://www.examiner.com/Baby-Boomer-in-national/polls-assessBaby-Boomer-technology-use#ixzz1E4Xj4DSs Bruce Tulgan (2000): Managing Generation X: how to bring out the best in young talent. New York, NY: W.W. Norton & Company, Inc. Retrieved from: http://books.google.com/books?hl=sv&lr=&id=ABOgUxuLwigC&oi=fnd&pg=PA9& dq=%22Managing+generation+X%22&ots=MNOYTaVoFU&sig=cG5omB_Tcimbq1 RqPaCJ0UErdos#v=snippet&q=information&f=false Cochran, Lynda Jeanine, COCHRAN, LYNDA, & Rothschadl, Anne Marie. (2009). Leisure programming for Baby Boomers [ed,1. Ch the steps to the buy pp.41]. (Marketing to Baby Boomers), Retrieved from http://books.google.com/books?id=qDlMvBZ_2jAC&pg=PA41&lpg=PA41&dq=Wha t+is+the+buying+process+for+technology+for+Baby+Boomers&source=bl&ots=HiB FxQgs2d&sig=yqHFcugeJwKB9UI1nKGPUMOUnKY&hl=sv&ei=nI5cTcGBMYX0 tgOLhPTbBQ&sa=X&oi=book_result&ct=result&resnum=3&ved=0CCgQ6AEwAg# v=onepage&q&f=false Delaney, Henry. (2011, January 28). The Importance of Baby Boomers. eCommerce, Retrieved from http://www.efellemedia.com/blog/post/ecommerce-the-importance-ofBaby-Boomers
Economic Survey of the United States 2010. OECD. Retrieved February 24, 2011, from http://www.oecd.org/document/43/0,3746,en_2649_34569_46023275_1_1_1_1,00.ht ml Elmer-DeWitt, P. (2010, April 20). Apple blow-out: Profits up 89.5%. CNNMoney. Retrieved from http://tech.fortune.cnn.com/2010/04/20/apples-profit-jumps-89/ Ferguson, Tim (07.30.2008): Gen Y Is Setting the Tech Agenga. Bloomberg Businessweek. Retrieved from: http://www.businessweek.com/globalbiz/content/jul2008/gb20080730_562367.htm Fields, B. (2011). Marketing to Gen Y: What you can''t afford not to know. Startupnation. Retrieved February 23, 2011, from http://www.startupnation.com/businessarticles/9011/1/marketing-GenY.htm Generation Y [Born 1980-1994]. Generation Y. Retrieved from http://www.valueoptions.com/spotlight_YIW/gen_y.htm Gilbert, S. Apple Reports Positive Q1 2009 Earnings. Metue. Retrieved January 21, 2009, from http://metue.com/01-21-2009/apple-q1-2009-earnings-announcement/ Graham, L. (2008, September 9). The NPD Group: Wired Baby Boomers Going Digital, Visiting Social Networks and Watching Videos on the Web. NPD. Retrieved from http://www.npd.com/press/releases/press_080909.html Green, Brent. (2006). Marketing to leading-edge Baby Boomers: perceptions, principles, practices, predictions. Ithaca, NY: Paramount Market Publishing Inc. Hughes, Neil. (2010, July 07). Appleinsider. Retrieved from http://www.Appleinsider.com/articles/10/07/07former_employees _shed_light_on_Apples_internal_corporate_culture.htm Losyk, B. (1997). Generation X: What they think and What they plan to do. The Futurist, 1215. Manning-Schaffel, V. (2002, December 16). Has Gen X Fallen through the Cracks?. Brandchannel. Retrieved February 22, 2011, from http://www.brandchannel.com/features_effect.asp?pf_id=136 Merchant, N. (2010). Apple's Startup Culture. BusinessWeek.com, 4. Retrieved from: http://search.ebscohost.com.ezproxy.hpu.edu:5000/login.aspx?direct=true&db=buh& AN=51499440&site=ehost-live Mitchell,S.(2005). American Generations: Who They are, How They Live, What They think. Ithaca, NY: New Strategist. Reisinger, D. (2010, September 10). Apple's Corporate Culture: 10 Lessons for Staying in Steve Jobs' Good Graces. eweek.com. Retrieved February 23, 2011, from http://www.eweek.com/c/a/IT-Infrastructure/Apples-Corporate-Culture-10-Lessonsfor-Staying-in-Steve-Jobs-Good-Graces-825505/
Reisinger, Don. (2010, October 08). It and network infrastructure-eweek. Retrieved from: http://www.eweek.com/c/a/IT-Infrastructure/Apples-Corporate-Culture-10-LessonsforRogers, Michael. (2009). Boomers and technology: an extended conversation. NY. Sponsored and prepared by AARP and Microsoft. 1-29. Retrieved from http://www.npd.com/press/releases/press_080909.html Williams, Ray B.(2010, February 7) What Baby Boomers Want in Technology. Psychology Today. Retrieved from: http://www.psychologytoday.com/blog/wired-success/201002/what-Baby-Boomerswant-technology Williams, R. B.. (2010, February 7). Wired for Success. Psychology Today. Retrieved from http://www.psychologytoday.com/blog/wired-success/201002/what-Baby-Boomerswant-technology Wood, N. (2010, January 26). Apple Reports Record Revenue, Profit. TotalTelecom. Retrieved from http://www.totaltele.com/view.aspx?ID=452409 Zaky, A. (2010, July 12). How Apple maintains explosive earnings growth. CNNMoney. Retrieved from http://tech.fortune.cnn.com/2010/07/12/how-apple-maintains-explosive-earningsgrowth/

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Apple MAC Campaign

Apple MAC Campaign |2

Steve Jobs (CEO)

Peter Oppenheimer Senior Vice President and Chief Financial Advisor

Tim Cook Chief Operating Officer

Philip W. Schiller Senior Vice President Worldwide Product Marketing

Bertrand Serlet Senior Vice President Software Engineering

Apple MAC Campaign |3

Bob Mansfield Senior Vice President MAC Hardware Engineering

Jonathan Ive Senior Vice President Industrial Design

Ron Johnson Senior Vice President Retail

Bruce Sewell Senior Vice President and General Counsel

Jeff Williams Senior Vice President of Operations

Denae Panis Market Leader at Apple Retail

Apple MAC Campaign |4

Apple MAC Campaign |5

Apple Inc. Background

Apple MAC Campaign |6

The Company Analysis

Apple Inc. Corporate Culture

Apple MAC Campaign |7

Apple MAC Campaign |8

Financial resources (in 2010):

Apple MAC Campaign |9

Apple Sales Trends:

Apple Sales Trends for MACintosh Units

General Economic Climate

General Climate within the Industry:

External Analysis of PC Market in the US

Hewlett Packard--27.5% Dell Inc.--25.4% Acer Inc.--14.7% Apple Inc.--8.1% Other--24.2%

Who are the consumers?

Search alternatives to what can fix your "problem"

Decide what brand or solution you want

Compare prices and choose best one

Decide if timing is right for purchase

Make the buy

Who am I? Excelling Businesswoman

Make decisions based on own judgement Credibility

Can be skeptical to unfamiliar Need dependable comparisons

Prefer getting credible product details Reliable information

Self-expression is more important than self-control

Marketing and branding self is important.

Fear living poorlythis is related to lifestyle enjoyment, not wealth

Geographic Location of MAC Users

PCs are manufactured by hundreds of manufacturers. Wide reach to all stratas.

Popular Applications: Software:

MS Office, Internet Explorer

Price: Virus attacks:

Problems and Opportunities

It is expensive with no cheap alternatives in comparison to PC.

TM is used to PC and view MACs as harder to use.

Target Market Analysis

Qualities and Applications

Graphic Design User Friendly

Microsoft Outlook Data Storage/Server Space

Sound/Graphic design Virus Protection

Taking Orders Payroll

Storing Client Information Research and Development

Research and Development Sound/Graphic Design Data Storage

Health Insurance Computers Television Smartphones Children/Grandchildren

In store or Online Compare prices Spend by necessity

Business Owners in Hawaii: