Apple, Inc.

David MacArthur Advertising Management Spring 2013

Table of Contents
Company Overview Situation Analysis SWOT Analysis ....................................................................................................................................................... 4 ........................................................................................................................................................ 4 ....................................................................................................................................................... .. 8

Marketing Strategy ..................................................................................................................................................... ...... 9 Advertising Strategy ........................................................................................................................................................ 11 Media Strategy ....................................................................................................................................................... 12

Social Media Strategy ........................................................................................................................................................ 14 Creative Brief Creative Strategy Radio Script Billboard Print Television ............................................................................................................................................... .......... 15 ................................................................................................................................. ........................ 15-16 .......................................................................................................................................................... 17 .......................................................................................................................................................... 18 .......................................................................................................................................................... 19 .......................................................................................................................................................... 20

Company Overview
Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computing devices, and portable digital music players and also sell a variety of related software, services, networking solutions, and third-party digital content and applications. The companys products and services include: iPhone, iPad, Mac, iPod, Apple TV, iOS and OS X operating systems, iCloud, as well as a number of accessory, service and support offerings. Apple sells its products worldwide through its retail stores, online stores, and direct sales force. These items are also sold through cellular network carriers (such as Verizon and AT&T) and retailers (such as Best Buy).1 Steve Jobs, Steve Wozniak, and Ronald Wayne founded the company on April 1, 1976, but it was not until 2001 that the corporation began to grow exponentially. Today, Apple is one of the biggest companies in the world, generating annual revenue of over $100 billion.

Situation Analysis
Over the past ten years, California-based Apple Inc. has become one of the most profitable companies in the world. The company has created an entire culture of consumers, having revolutionized how the world views technology with products such as the iPod and the iPhone. Their line of personal computers, known as Macs, is very popular and very costly. Following the widespread success of the iPod in 2001 and the iPhone in 2006, Apple has been at the top of the market with their portable music players, personal computers, and mobile phones. As these markets have continued to grow, so too has the brand. With regards to portable computers, Apple has increased its sales over the past three years, generating total revenue of about $17 million in 2012.2 However, because of the companys success and brand loyalty, the prices of Macbooks have remained inflated. Currently, the most affordable laptop starts at $999.

1 2

Reuters Apple Inc. Company Profile: http://www.reuters.com/finance/stocks/companyProfile?symbol=AAPL.O Apple Inc. annual report: http://investor.apple.com/secfiling.cfm?filingID=1193125-12-444068

The technology industry is currently undergoing a major revolution. The introduction of tablets has developed a new, competitive market. Laptops are becoming thinner, lighter, and more transportable in order to compete with these popular new products, and some companies have gone so far as to combine the two devices. Apple Inc. has had a great deal of success in both areas of the market, but as the economy continues to struggle, the importance of affordability cannot be understated. Apples introduction of the iPad mini is a prime example of companies offering reasonably priced products. This smaller product provides consumers with the same innovative technology found in the iPad but with a cheaper price tag. It is important for the organization to continue this practice by offering a more affordable laptopspecifically, a netbook computer.

Three popular netbooks currently available are the HP Mini 1103, the ASUS Eee PC 1215N, and the Acer Aspire One D260. These computers have been met with a great deal of acclaim for their compact size, large keyboards, fast processing speeds, battery life, quality graphics, and most importantly, their low prices.3 While the Macbook Air is incredibly thin, it is neither as compact nor as inexpensive as the netbooks offered by competing companies.

Laptop Mag- The Five Best Netbooks: http://www.laptopmag.com/review/laptops/the-five-best-netbooks.aspx

The netbook industry is beginning to decline due to the introduction and popularity of tablets. The first area where netbook sales began falling was the US market, where the iPad has had a great deal of success. However, an iPad cost more than a netbook and seemingly does less. Microsoft Office is not available, which is an important tool for many people, but the tablet is more portable and has a much better battery life.4 Despite the fact that netbook sales are down, I believe this is the right time for Apple to release a smaller and more affordable

Apple is a company known for its innovation, and while the netbook has been available for a number of years, Apples take on the small computer could once again revolutionize how the world uses technology. The functionality of a physical keyboard will be relevant for years to come, and important tools such as word processors as well as spreadsheets will continue to be an everyday function of most working men and women. Apples netbook will provide consumers with the same functions as a full-size computer at half the cost.

Apple Inc. will continue to retain their current customers by producing the same line of products, regardless of cost. However, in order for the company to further expand and grow, they must reach a different group of consumers; they must target those buyers who cannot afford the more expensive computers. It is imperative for Apple to release a line of affordable netbooks designed with many of the same features seen in the more costly Macbook Pro. Doing so will cause a shift in sales, allowing lower-income buyers to become satisfied Apple customers.

The Guardian- Sayonara Netbooks by Chalres Arthur: http://www.guardian.co.uk/technology/2012/dec/31/netbooks-dead-2013

SWOT Analysis
Strengths Most profitable company in the world (valued at over $500 billion) Brand loyalty Innovative technology Recognizable brand Diverse/varied product line within portable electronics industry Weaknesses Price of products Competitive industry with similar products that cost less Recent death of Steve Jobs, founder and CEO Apple/Foxconn scandal involving Chinese workers Opportunities Growing industry with new products constantly being developed New/updated items constantly released, including new iPhones, iPads, Macbooks, iPods, etc. iPad Mini introduced Apple to the small tablet market Chance for Apple to reach lower-income consumers Threats Highly competitive industry Major competitors include: Microsoft, Samsung, Hewlett-Packard, Motorola, Prices of competitors products As the leader of technology, others want to overtake your number one spot

Marketing Strategy
Apple, Inc. is known to offer some of the most innovative technology on the market. The Macbook is a highly rated computer with unique features and a user-friendly interface. However, this product also has a reputation for being expensive, a detail which competitors have exploited over the last few years. Customers are hesitant to spend $1400 on a laptop when there are other options for half the cost. It is my goal to reposition Apple as a company that offers affordable products. The iPad mini was the first step toward this goal, but it is important to continue offering alternative options to already popular products. Apple will release a new product called the Macbook micro, a laptop computer with many of the features found in a full size Macbook but without the hefty price tag. The micro will start at $499, the same starting price as the iPad. It is imperative to target both current Apple customers as well as new customers with a smaller budget. The company must reach out to lower-income consumers who are fans of the product but cannot necessarily afford to purchase one. Apple must also target individuals who rely heavily on keyboardswith the growth in popularity of tablets, there are those who find typing long messages on touch screens to be laborious and time consuming. Consumers who send lengthy emails or edit long documents require a physical keyboard, and the Macbook micro will provide that important feature.

To coincide with back to school sales, Apple will offer a special promotion during the months of August and September. During this time, any student who purchases the Macbook Net can receive a discounted iPod Nano. The typical Back to School Macbook promotion allows customers to save on the laptop itself; however, since the Macbook Net is already at an affordable price, Apple will offer these customers their thinnest iPod yet.

The promotion will run from August 1 through September 15. Customers who purchase their micro during this promotion period will receive the iPod nano for half the original price. Additionally, Apple will include a free $50 iTunes gift card with any combined purchase of the Macbook micro and nano. These low prices and free gift card will entice customers to buy the products while changing Apples image. It is my intent to make reshape Apples image by providing more affordable products for consumers. This advertising campaign will be evaluated by a number of measurable goals and objectives. The main objective will be to sell the product, which will occur when the advertising is done effectively. This, in turn, will help accomplish another goal: to reposition Apple as a provider of affordable, quality products while changing the publics opinion of the company. Surveys will be given out to collect data on consumers opinion; have perceptions changed regarding the cost of the companys products? Finally, social media response will be used to determine how effective the product and the advertisements are. Facebook will be used to generate a response from Apple fans about the Macbook micro, and the computer will also be given a hashtag (#micro) in order to follow its trend on Twitter. Since Apples social networking presence is almost nonexistent (they joined Facebook in July of 2011), a social media strategy is in place to assist the company.

10

Advertising Strategy
Over the past few years, Apple Inc. has advertised their products through a variety of mediums. Each ad has a similar theme and tone; they feature a white backdrop with the product at the center. These ads coincide with Apples emphasis on simplicity, which has been a driving factor in branding the company. The ads are easily recognizable, which will help promote the new Macbook micro. Emphasis will be placed on television and print ads. Early adopters are visually stimulated and will respond more readily to ads that they see versus ones that they hear. For this reason, very few radio commercials will be produced; additionally, the current generation is not inclined to purchase or read newspapers. For this reason, I will not place ads in this medium. Instead, Apple will focus their attention on visually appealing, eye-catching print and TV commercials. Television is an imperative part of the marketing strategy as many consumers can be reached at one time. It also allows the viewer to experience the product through the art of storytelling. The commercials will relate the micro to the consumer while highlighting the features of the computer including its stunning display. The ads must be simple yet engaging, and they must relate to the target markets. Above all, the television commercials will connect the viewer to the brand. Print ads are effective in the following ways: they are tangible, which means they can stay in houses or offices for long periods of time. Online ads can quickly disappear at any time. Prints ads are also credible; with the countless pop-up and banner ads we are exposed to daily, we have become cautious about the Internets virus-infused advertisements. Yet print is safe, and it does not pose any immediate threats. These ads can also be targeted toward specific markets, which can effectively reach niche audiences. Finally, print ads are an effective way to brand an organization and solidify its identity. Similar colors, images, and themes can appear throughout a series of print ads to help shape the campaign.5

Forbes- Print is Dead? Not So Fast: http://www.forbes.com/sites/thesba/2012/06/28/print-is-dead-not-so-fast/

11

Billboards, both digital and print, are effective ways to reach countless commuters and drivers. A well-placed, eye-catching billboard can make a lasting impression on consumers. Other forms of outdoor advertising include mobile ads where the image is found on the side of a vehicle (i.e. buses, trains/subways, taxis, etc). Similarly, repetitious bus shelter advertising and rail station advertising can increase brand recognition. These outdoor ads will be used to reinforce the visual appeal of the new Macbook micro.

Media Strategy
Various forms of media will be used to promote the new Apple Macbook micro. Well-placed, targeted media is essential to any advertising campaign. The target audiences are lower-income Americans including women and families, college students and high school students, as well as tech-savvy individuals. The goal is to promote the economical price of the micro to people who cannot afford the more costly laptops. Portability will be a secondary factor in selling the computer, especially to college and high school students who move from class to class and do not want to carry a full-size laptop. These audiences will be reached through mostly traditional media such as television, magazines, and out-of-home. Some non-traditional media will be used to stay relevant with technology-savvy consumers; this medium will include social media so that the younger generation can stay informed on all Apple products, especially the Macbook micro. The media mix will vary throughout the year, but more ads will run during back-to-school months (July through September) and the holiday season (November-December). Apples student and teacher promotions run at the end of the summer, making that time period crucial for advertising the netbook. In addition, the holiday season is considered the most demanding time of the year for electronics sales. Promoting the Macbook micro during the months of November and December is equally important, and the amount of advertising should increase during this time. During this back-to-school period, more advertising pressure will be placed on teachers and students as they look for deals on computers. More emphasis will be placed on television and print advertising because they are the most visually stimulating mediums and will be seen most by the target markets.

12

TV commercials are an effective medium to reach a broad audience. The ads can be placed on different networks to appeal to different groups. For the Macbook micro, ads will run on major networks such as CBS, NBC, and ABC. This will cover daytime soap opera viewers as well as primetime show followers at night. It will also appear on drama networks such as TNT, USA, and AMC in addition to comedy networks such as TBS and Comedy Central. This will cover a wide range of audiences, from college students who regularly watch South Park to fans of the Law and Order installments. Commercials for the micro will appear on these networks depending on the time of daywomen will be targeted during the late mornings and afternoons, college and high school students will be targeted during the late afternoon and early evening hours, and men and families will see the commercials in the evening during primetime television.

The print ads found in major magazines will allow consumers to become familiar with the product because the ad can be viewed numerous times. The ads will feature in technology magazines such as Smart Computing, PC Magazine, Macworld, and Wired, which is known to feature as many ads as articles. These publications are geared toward the tech-savvy consumers. To target women and families, print ads will be placed in Good Housekeeping, Family Circle, and Better Homes and Gardens. Entertainment and gaming magazines such as Entertainment Weekly and Game Informer as well as a sports magazine such as Sports Illustrated will attract high school and college-aged males. Finally, People, Cosmopolitan, and Glamour magazine will feature advertisements to reach high school and college-aged females.

13

14

Social Media Strategy

Apples social media presence is nearly non-existent. It is important for the company to stay relevant as the social media craze continues to grow. Facebook and Twitter are the most important platforms on which to focus; Apple does have a Facebook page, but since its inception in July of 2011, it has zero posts. The corporation is completely absent from Twitter and would benefit from creating and updating an account. Both social media websites will help promote the new Macbook micro.

Facebook
Fans of the Apple Facebook page will receive updates about special events happening throughout the year. Giveaways, promotional events, and other engaging activities (centered around the Macbook micro) will attract people to the technology as well as the brand. An event will be organized for consumers to test the new computer at their nearest retail store, which draws customers to the store to purchase other items. Facebook will also be used to interact with the Apple community; questions about the micro will be posted to generate a response from consumers. Finally, Apple can use Facebook as a hub for photos, videos, events, and other networking features. For example, old iPhone commercials can be posted on the page as well as photos from important events. The reach of Apples Facebook can be measured by Likes, Shares, Comments, and fans of the page. Social media is an effective way to communicate and build a relationship online, which is an important aspect to selling the micro and repositioning Apple.

Twitter
Similar to Facebook, followers of the Apple Twitter account will receive updates about special events that happen throughout the year; this includes giveaways and promotional events and sales. Apple can measure their outreach by the following: number of followers, retweets (includes quoted tweets), favorites, replies and trends. A hashtag (#micro) will be used to keep track of how often consumers are talking about the Macbook micro. Breaking news about products, services and other Apple-related interests will be located on the companys Twitter.

15

Creative Brief
Apple is one of the most prominent and recognizable companies in the world, but their products cost more on average than their leading competitors. It is my goal to reposition them as a cost-friendly producer of portable electronics in order to reach a broader audience. The creative aspect of this advertising campaign will aim to attract a select target market. Because the company already has such a strong following, I will focus on lower to middle-class families who can afford to spend between $500 and $800 on a laptop. This audience will be reached through television, print, and out-of-home advertisements. The time of these ads will take place sporadically throughout the year but more specifically during back-toschool months (July, August, September) as well as the holiday season (November and December). Apples primary theme of simplicity will remain present in order to maintain a consistency within the brand. This means that the new product will be set against a plain, all-white background. Customers will recognize these ads because they have the same look and feel as current ads, which will reassure the consumer that they are receiving the same quality product from Apple.

Creative Strategy
For years, Apple has attracted consumers with their television, print, and out-of-home ads. It is my belief that similar advertising must be used in order to entice current brand loyalists as well as new customers. The simplicity in which these ads have been produced is an important idea to continue while running an advertising campaign for the Macbook micro. The main theme of these advertisements must be centered on Apples new focus on cost effectivenessthe price of the computer will be the driving factor throughout the creative part of the campaign. A second theme will focus on the micros physical keyboard, an important feature that will draw many consumers to buy the computer. The tagline Return to the keyboard will be used throughout the campaign to attract customers to this important feature. I believe that television commercials, outstanding print ads, and eye-catching out-of-home advertisements are the best way to convey this message. Television commercials will be the primary focus. Past Apple product commercials have been met with a great deal of success, especially the Get a Mac campaign. TV ads reach a significant number of people while effectively relaying the message to future customers. My intent is to promote both the cost of the new product and the likeness between the micro and the rest of the Macbook family. The commercials will explain the similar features in a straightforward and simple manner.

16

Print ads will be vibrant and have an effective balance between color, the white background, and copy to attract consumers to the micro. They must display the computers screen to show that this line of netbooks is on par with the graphics of other Macbooks. Additionally, out-of-home ads will be utilized to attract commuters and other people passing by. These advertisements will take the form of billboards and public transportation ads such as the ones found on buses and subways. They must be eye-catching but simple enough to read and take-in quickly.

17

Radio
Macbook Micro Radio Spot (30 seconds) SFX: ANNOUNCER: (pause) MUSIC: Take a Walk by Passion Pit (:2 sec) (Total Time: 2 sec) At Apple, we strive to bring you the best in innovation (:4) (Total Time: 6 sec) (:2 sec) (Total Time: 8 sec) Introducing the all-new Macbook micro (:3) (Total Time: 11 sec) With all the same features as a Macbook Air at half the price (:4) (Total Time: 15 sec) (pause) (:2) (Total Time: 17 sec) A smaller-size Macbook for a bigger-size wallet (:3) (Total Time: 20 sec) Visit your local Apple Retail Store, or go online at apple.com for more details (:6) (Total Time: 26 sec) (pause) (:1) (Total Time: 27 sec) The Macbook micro. Return the keyboard (:3) (Total Time: 30)

18

Billboard

19

Print

20

Television
Apple Macbook micro Television Commercial
Basic Idea: Macbook micro at center of shot against white background

Video
Camera medium Side view - Macbook micro closed Finger opens micro as camera rotates (:5) Presses space bar - camera on screen (:1) Scene from colorful animated movie plays (:4) Finger hits space bar to pause movie (:2)

Audio
Cups (Pitch Perfect's "When I'm Gone") [Pop version] by Anna Kendrick

(v/o) Introducing the new Macbook micro Screen switches to Word Processor Hands type/edit long document (:4) (v/o) The capabilities of the Mac meets the size of the iPad.

Screen switches to Video Editing software Edits videos (:3) Screen swtiches to Spreadsheet Hands edit spreadsheet

(:4)

(v/o) With a stunning display and the comfort of a keyboard, you can finally have the best of both worlds.

Screen switches to Slide Show presenter Hands type/edit presentation (:3) Fade to end of song Screen switches back to animated movie Finger presses space bar to play movie (:3) Cut to copy: Macbook micro Add: Return to the keyboard Cut to: Apple logo End (:1) (:1) End Total Time: 32 seconds (:1)

21