Student ID: 1014955

Module Name: MNGT 7902

Assignment Title: Final

Eective Number of Words Used: 2743 (Excluding Tables, Bibliography and Appendix) I conrm that I have read the University regulations on plagiarism, and that this assignment is my own work.

In Let My People Go Surng, Patagonia's Yvon Chouinard describes how he started his sustainable venture and all the elements that contribute to its triple bottom line. Now it's your turn. For your nal assignment, create an original SUSTAINABLE marketing plan for the same organization that you analyzed in your midterm. In the midterm, you completed the rst part of a marketing plan: the analysis of the existing market. Now, you will complete the marketing plan by setting goals, repositioning the brand, and creating a marketing mix all to make your company sustainable or to promote your company's sustainability. You will use the frameworks and theories from class readings and discussions, and support all of your ideas with research. If you analyzed a very large organization, particularly one with operations in many countries, you should create a small plan for either one division or a small, specic market. Do not try to create a marketing plan for an entire multinational corporation. MAKE SURE THIS IS A PLAN, NOT A REPORT. As an MBA, you're expected to lead and generate ideas. You don't have to be a creative wizard, but you should be able to make decisions and recommendations. DO NOT SUBMIT A BUSINESS PLAN. Indeed, do not copy from your entrepreneurship class plan or any other paper. You may use the same ideas, but write new text. Also, do not discuss your company nances or operations here unless they directly relate to marketing. MAKE SURE THAT THE PLAN PROMOTES SUSTAINABILITY. No attempts at greenwashing please. PAPER OUTLINE Write your paper in the following order. Create separate sections, not a continuous essay. I. Cover Sheet + Table of Contents. Does not count toward word total. Note: do NOT put your name anywhere in your paper. II. Introduction + Goals (20 points). Approximately 500 words. 1. BRIEFLY describe your organization. It must be the same one from your midterm. Please limit this to key information; do not provide the corporate history. 2. Describe the TARGET MARKET. This could be any of the stakeholder categories from your midterm, though most likely it will be the CUSTOMERS. If you want to target a different customer segment, explain your change. (If you're targeting just one part of the organization's total market, explain why.) 3. Describe your GOALS for this marketing campaign in terms of BOTH the 3B's (Brand, Buzz, and Behavior) and the 3BL (People, Planet, Prots). Be sure that the goals are specic, qualitative, and quantitative. What should your plan achieve by the time it's completed? III. Marketing Mix (20 points). Approximately 2000 words. Based on your goals and analysis, create a marketing mix. Again, this is not a report. Demonstrate your original thinking here. Be sure to explain all your decisions (the WHY) and justify your decisions with research. (A boss or client would likely ask you to support your changes to current practices.) Product:What is the company's current product? (I recommend that you pick just one if the company has many products and services.) What will you change about it? How is your product different or better than the competition? What makes it sustainable? Price: What is the company's current pricing strategy? What will be your new pricing strategy, and why? Show the old price, the new price AND competitive price. (That's 3 different numbers.) Place: What is the product's current distribution? How would you change that distribution and why? How will your distribution compare to the competition? Promotion: This should address what YOU will do in the FUTURE.
1

1. What is the company doing now in terms of promotion? (Keep this very brief.) 2. List all of your planned promotional activities and media. (Minimum 3 media types.) 3. Describe just ONE of your new promotions: o WHEN and WHERE it will run o WHAT it will look like and say o HOW MUCH it will cost o WHAT STAGE(S) OF AIDA it will serve. o HOW you will measure this promotion's effectiveness. (Use one of the metrics strategies we discussed in class.) IV. Repositioning + Map (20 points). Approximately 100 words. You analyzed your organization's current position on the midterm. Now describe its NEW desired position that will result from this plan. Create a POSITIONING MAP featuring 2 criteria, your brand in its new position, your target segment, and at least 1 competitor. V. Marketing Budget & Implementation Calendar (20 points). Approximately 400 words. 1. Create a detailed OBJECTIVE-AND-TASK MARKETING BUDGET. Do NOT include ordinary operational expenses, such as ofce space, salaries or cost of materials. Rather, your budget should show just marketing expenses, including all promotions. You must research and use actual costs. Remember, in order for it to be an objective-and-task-based budget, you need to show how each marketing expense will contribute to your goal. For example, a $100,000 website will attract 25,000 visitors who will produce $1 million in sales. 2. Create a timeline of specic dates and activities. VI. Reference Notes + Bibliography (20 points). Does not count toward word total. Include reference notes in the body of the document. Support all of your data and arguments using respected sources (no Wikipedia)! In addition, list ALL of your sources again in the bibliography. Your bibliography format should treat websites like publications, with complete title, author and publication information.

Introduction and Goals

Description

Apple Inc. is an American based company founded by Steve Jobs and Steve Vozniak that designs and manufactures computer hardware, software, consumer electronics (iPads, iPhones, iPods) and resells thirdparty digital content (iTunes and App Stores). As of 2012, Apple has also 395 Apple Stores worldwide providing additional services such as the Genius bars in additional to sales of Apple products as well as accessories and software.

Target Market

The target market for Apple products are consumers with the purchasing power of the middle and upper classes. Apple targets people and not markets as Asay (2010) explained. There is no clear target dened such as gender, age group or other specics. The cost of purchasing any Apple product is commonly high; as such, the target market for Apple are consumers that are not sensitive to price (Arvidson, 2011), we are talking about the purchasing power or the middle and upper class.

Goals

The demands and growth in small consumer electronics have grown exponentially since the introduction of the rst iPod in October 2001. Ever since all the releases have been focused on the most recent features. Often during Keynote presentations there has been reference to Energy Star qualications and some other environmental friendly features but without true emphasis. Apple may not be a highly sustainable company or completely environmentally friendly, but efforts have been done in the recent years and the public should be made aware of it as well as encouraged to take an active part in that process. The goal is to promote the sustainability measures taken by Apple by ensuring that all the environmentally friendly steps and features Apple has taken over time are put to the forefront. This will allow the creation of and awareness campaign, as well as attract environmentally conscious consumers, that may have disregarded Apple in the past. 3Bs: Brand: This Campaign will add another dimension for Apple of being environmentally conscious and sustainable in addition to it being technologically forward and innovative. it will dene Apple as a sustainable technology company but also as a pioneer in its market to address and possibly educate on sustainability and the impact on the environment of evolving technology. Buzz: Apple users have always been faithful to the brand. The products have become over the years bigger (iMac), thinner (iPad), lighter (iPhone), Apple has always explained the thought put in the achievement of these improvements. As users marvel usually at those changes, very few are aware of the impact these changes have on the tally of the total carbon footprint. The excitement created by this knowledge and openness by Apple to explain will very surely well received and demonstrate that Apple is conscious of the issues at hand and dedicated to contribute to the best of its ability. By being at the forefront, this will allow other companies to take the same direction and all them to become more sustainable in the future. Behavior: The expected behavior will be: 1. To increase visits to the Apple and Environment Pages on the website 2. Increase usage of the Apple Recycling Program 3. Consistent decrease of the Apple Total Carbon Footprint 4. Engage the community and users at large to contribute ideas and suggestions to the campaign/program. Before the launch of the campaign, data will be collected on current website visits (click-through) to the Environmental and Recycling pages on the Apple website, on the current trends of these relevant topics in the support and community sites as well the press and social media trends and activity.
3

Following the launch of the campaign, data will be collected and measured after 1 month, 3 months, 6 months and yearly after the rst year. Behavior 1 will be measured by usual website trafc analysis Behavior 2 will be measured by monitoring increased requests for recycling compared to the previous years as the baseline data collected prior to launch. Behavior 3 will take a longer time to measure as the impact in spread across all the business units from conception to the nal product being nally sold. Behavior 4 will be measured by monitoring press and social media for impact as well as feedback and surveys from staff and consumers on Apple Support and Community sites. TBL: People: Apple is an Equal Employment Opportunity and Afrmative Action Employer (Apple Inc., 2012b); it even is committed to diversity by being an Equal Opportunities employers (Apple Inc., 2012a). Planet: Apple has been previously accused of not being environmentally friendly. In A Greener Apple, Steve Jobs (2010) explained that Apples mistake was that in their communications, Apple usually tends to focus on current accomplishments. He admitted that Apple had neglected sharing with its Stakeholders the information on how Apple was becoming greener. Jobs then provided in detail the plan for removing toxic chemicals from products as well as further details on the ongoing recycling program started in 1994. Prot: in August 2012 Apple became the most valuable company in History (Benzinga, 2012). With the company continuously innovating, and being ahead of competitors with products like the iPad; Apple has had nancial success. By keeping the product lines simple the company is able to cut the spending on materials and costs thus being sustainable.

Marketing Mix
Product The iPad is a tablet (Apple, 2012c) looking like a larger iPhone or iPod Touch and uses the touch screen ability to use it. Some of its basic features include: internet browsing, email, music and video purchasing and viewing and many other applications that can be used in the iPhone already. Since its launch in 2010, the iPad has seen four generations released: 1. iPad in 2010 2. iPad 2 in 2011 3. The New iPad 2012 (March) 4. iPad Mini 2012 (October) All these iPads have come with the same 2 memory sizes (16, 32 or 64GB) and two connectivity possibilities (wi only and wi + 3G) However, the iPads evolution has also had an impact on the size and weight of the product in addition to the material used to produce it. The rst generation iPad weighted for the Wi model 680 grams and the latest mini generation has a total wight of 310 grams making it lighter by a little more than half, which also indicates that less material has been used to its production. In addition, the total greenhouse gas emission for the rst iPad is of 130kg CO2e (Apple, 2012d) compared to the recent mini generation generating only 95 kg CO2e (Apple, 2012e). Stated on both Environmental Reports the features to reduce environmental impact (Apple, 2012e) such as: Arsenic-free display glass Mercury-free LED-backlit display Brominated ame retardant-free

 PVC Free Recyclable aluminum enclosure Power adapter that outperforms strictest global energy efciency standards. The iPad line has been evolving naturally with the environment and the impact created in mind. As such, there is no need to change the product as it is environmentally conscious. However, by looking into other tablet manufacturers such as Samsung, there is a large contrast in the presentation and ease of use to nd the relevant information pertaining to Green measures. Having checked on their recent product the Galaxy Tab 2 7.0, the website unlike Apples does not have an Environmental page. If they do, it is not displayed in any of the header or footer of the site where it can easily found or accessed. On the Apple website, the Apple and the Environment page may also not be in the forefront but it is quite easily found, which is a clear positive in comparison to Samsung. In addition, even a simple Google search of the Galaxys Environmental Impact did not render any usable results. As such, Apple is already much better than the Samsung competition in that regard. What makes Apple and the iPad more sustainable in terms of comparison with Samsung, is the clear conscious effort to reduce and abandon usage of materials with a negative environmental impact. However, the change needed here, is to have the Environmental Report (Exhibit A) part of the product and informational documentation present in every product sold. Price The pricing for the latest iPad mini remains in the same model as the previous generations. The factors are memory size as well connectivity.
Black or White Wi Wi and Cellular 16 GB $329 $459 32 GB $429 $559 64 GB $529 $659

Table 1: Current iPad Mini Pricing

In the United States, users can purchase the cellular data plans from 3 companies: AT&T, Sprint and Verizon (Apple, 2012f). In keeping with Apples usual high pricing strategy, there is no surprise to the high price tag attached to the new smaller model. However, Apple offers discounts through the Education Store and other educational promotions throughout the year. For this campaign, I would recommend lowering the price of the iPad Mini model Wi only, by offering a discount of $50 for the entire wi only line as seen in Table 2:

Black or White Wi

16 GB $279

32 GB $379

64 GB $479

Table 2: iPad Mini Campaign Prices Based on the assumptions of journalists and bloggers prior to the release of iPad mini, the competitive price line would be as shown in Table 3:
Black or White Wi 16 GB $249 32 GB $349 64 GB $449

Table 3: iPad Mini Competitive Pricing

At this rate, Bajarin (2012) explained that journalists and bloggers believes Apple would take on tablets readily available on the market that are priced at $199 or less.

The Campaign Pricing for the Wi only iPad mini is situated in between what would have been the Competitive pricing and Apples current pricing. Even though it is higher than competitors such as the Amazon Kindle Fire HD priced at $199, it is of a much higher standard than any other tablet of its size. Place iPads and all Apple products are sold online, in Apple Stores and other retailers across the globe. However, for this Campaign, I would recommend selling the repriced iPad mini ONLY in Apple Stores and the Online Apple Store. The limitation in sales locations could be seen as a negative, however as we are promoting sustainability and being environmentally proactive the reduction in Transportation needs will result is an immediate reduction in the carbon footprint. This also directs the focus on the goal at hand which is to promote Sustainable behaviors within the business and the users. By explaining clearly the reasoning behind those steps, there should be no negative impact or reaction. Apple has a history of making video interviews always oating on the website to explain new products or features. The same would be applied to the campaign at hand by using those proven methods. No other similar company has dedicated stores like Apple does with the Apple Stores. They rely on online sales and well as other retailers to sell and promote their products. As such, it would be quite difcult for Apples competitors to be able to behave in the same manner and restrict sales of their products in one location only. Of course, there is the possibility of working closely with one retailer; however retailers in general collaborate with hundred if not thousands of brands and it would difcult to dedicate complete attention to one project at hand. Whereas Apple has everything already set and it would require staff training and making the campaign material available and ready for use. Promotion Currently Apple uses various methods for Promotions such as: Public (PR) Announcements Email newsletters Various Tv Spots Printed Advertising

For the Campaign, the promotion will be displayed in the following media: Apple Newsletter Email Apple Website Modication Public (PR) Announcements The New Promotion will start in March 2013 to coincide with the usual iPad release and announcement schedule. It will run on the Apple website in an introductory phase before being released on other media. In memory of Steve Jobs and the letter A Greener Apple that he wrote in 2010, the Promotion name will use this denomination. The promotion will be located in the United States.

Title: A Greener Apple Description: Because Apple is not only about Technology, we are about the people. Because we care, we have implemented for the past years measures to reduce the carbon footprint and now we want you to join us in our journey. Apple is a marketing machine and has never shied away from marketing costs. The cost involved in the refurbishing of the site will be mostly calculated in man-hours. As the creative staff and webmasters are already employees of the company. Two stages of AIDA will be covered: Interest: the major purpose of the promotion is to create awareness and distinguish Apple products from its competitors by offering what they are not which is Environmental awareness. Action: the reduced price of the iPad mini associated with the promotion is the cherry on the cake. The click to buy the promotional iPad mini is important from a protability point of view, but in the spirit of creating awareness and being educational, any click to the Environment and recycling pages would also be wanted actions. Under the Campaign header, the Apple website will be remodeled as such: Homepage: Central Banner of the Campaign and clear link to the Apple and Environment Page and the link of the Recycling Page. Homepage Footer to now include the recycling as part of the permanent site. Each Apple product in the Online Store will display the Environmental Report attached to it in the same spirit of the Technical Specications. In the Cart and the Check Out Pages, an additional element will be added to the Recycling Program and encourage buyers to recycle their older models if they are no longer useful. Every Apple product purchased will contain within its packaging the Environmental Report as well as the Recycling information needed with links to the relevant pages on the Apple website. Measuring the success of the promotion will be accomplished by obtaining: Sales Figures of the re-priced iPad Mini. Website Trafc Analysis of the relevant pages (such as Google Analytics) Increased usage in the recycling program (comparison with base data from previous years).

Repositioning Map
High Quality

iPad Mini

Kindle Fire HD High Price

Map: Position of the Promotional iPad Mini

7

Currently, the iPad mini is labeled as a high quality and a high priced tablet. With the promotion, the quality of the iPad will not be affected in any way, but the price reduction will make it closer with the competition of the Kindle Fire HD. Even with the slightly higher price tag, the amazing quality of the iPad can easily justify the extra dollars associated with its cost.

Marketing Budget and Implementation Calendar

In 2013 the iPad mini is expected to account for half of the potential 100 Million iPad total sales (Crothers, 2012). Out of the 50 million iPad mini sales, the target of the promotion is to actually contribute to the sales of 10 million units. Apple is not leaning heavily on advertisements to sells products (Edwards, 2012). Unit Sales Price $279.00 Targeted Unit Sales 10,000,000.00 Total Sales $2,790,000,000 Table 1: Targeted Total Sales Revenues Apple 2012 Annual Report (Apple, 2012g) states that the marketing budget for 2012 was of $1.0 billion dollars and with 58,310,000 iPads sold in total. Preparation Public PR Announcement Email Newsletter TV Spot Videos Retail Store Website Refurbishment Copy and Graphic Layout Environmental Reports per product Sta Training $2,500 $10,000 $5,000 $30,000 $657,000 $704,500 At Launch $5,000 $2,000 $500,000 $100,000 $50,000 Total

Total Costs $47,500 Table 2: Projected Costs for the Promotion The Total ROI is: Total Sales Total Costs Total ROI Table 3: Total ROI 2,790,000,000 $704,500 3959 1/4

The implementation timeline is as follow: Q4 2012 Dec-11 Project and Budget Approval Preparation of all Apple products Environmental Reports Preparation of Environmental Reports brochures to be added to Apple products. Beta version of Apple Website prepared for approval Graphic Design Completed Copy Completed Apple Store Promo Material Ready Sta Training Environmental Reports Added to Apple Products Announcement of Promotion Start of Promotion New Website and Online Store Launch Campaign Data Measure 1 Campaign Data Measure 2 Table 4: Implementation Plan Q1 and Q2 2013. Jan-13 Q1 2013 Feb-13 Mar-13 Apr-13 Q2 2013 May-13 Jun-13

As stated above, monitoring measures will still be held at 6 months and one year to allow modication in the Campaign if necessary and allow to publish results.

Bibliography
Apple Inc. (2012a).Jobs at Apple. [ONLINE] Available at: http://www.apple.com/jobs/us/accomodation_drugfree.html. [Last Accessed 1 November 2012]. Apple Inc. (2012b).Jobs at Apple. [ONLINE] Available at: http://www.apple.com/jobs/us/. [Last Accessed 1 November 2012]. Apple Inc. (2012c). iPad. [ONLINE] Available at: http://www.apple.com/ipad/specs/. [Last Accessed December 10, 2012]. Apple Inc. (2010d). iPad Environmental Report. [ONLINE] Available at: http://images.apple.com/environment/reports/docs/iPad_Environmental_Report.pdf. [Last Accessed December 11, 2012]. Apple Inc. (2012e). iPad mini Environmental Report. [ONLINE] Available at: iPad mini Environmental Report. [Last Accessed December 10, 2012]. Apple Inc. (2012f). iPad Mini Apple Store. [ONLINE] Available at: http://store.apple.com/us/buy/home/shop_ipad/family/ipad_mini. [Last Accessed December 10, 2012]. Apple Inc. (2012g). Form 10K for Apple Inc.. [ONLINE] Available at: http://les.shareholder.com/downloads/AAPL/2225563288x0x610219/112dd7d2-e33a-44ad-b4ea-8870c5d d9281/AAPL_10K_FY12_10.31.12.pdf. [Last Accessed December 1, 2012]. Arvidson, E. (2011).eHow tech. [ONLINE] Available at: http://www.ehow.com/info_8737092_target-audience-mac-apple-computers.html. [Last Accessed 1 November 2012]. Asay, M. (2010). Apple Doesn't Target Markets It Targets People. [ONLINE] Available at: http://gigaom.com/2010/08/26/apple-doesnt-target-markets-it-targets-people/. [Last Accessed December 1, 2012]. Bajarin, T. (2012). Why the iPad Mini Is Priced at $329. [ONLINE] Available at: http://techland.time.com/2012/11/05/why-the-ipad-mini-is-priced-at-329/. [Last Accessed December 10, 2012]. Crothers, B. (2012). Apple iPad Mini sales set to eclipse new iPad. [ONLINE] Available at: http://www.cbsnews.com/8301-205_162-57559231/apple-ipad-mini-sales-set-to-eclipse-new-ipad/. [Last Accessed December 14, 2012]. Edwards, J. (2012). Apple Has Doubled Its Ad Budget To $1 Billion A Year. [ONLINE] Available at: http://www.businessinsider.com/apple-has-doubled-its-ad-budget-to-1-billion-a-year-2012-11. [Last Accessed December 10, 2012]. Jobs, S. (2010).A Greener Apple. [ONLINE] Available at: http://www.apple.com/hotnews/agreenerapple/. [Last Accessed 1 November 2012]. Kahney, L. (2002). Apple: It's All About the Brand. [ONLINE] Available at: http://www.wired.com/gadgets/mac/commentary/cultofmac/2002/12/56677. [Last Accessed December 10, 2012]. Samsung (2012). GALAXY Tab 2 7.0. [ONLINE] Available at: http://www.samsung.com/hk_en/consumer/mobile/mobile-phones/mobile-tablet/GT-P3110ZWATGY-spec. [Last Accessed December 1, 2012].

10

Exhibit A

11

12

13

14