Name ID SUBJECT COURSE CODE SUBMITTED TO

Khizer Sikander BBM-F1304-0057 Marketing BM 150 Mr. Suren Dev

TABLE OF CONTENT
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Executive Summery Vision, Mission and Objectives Product Macro-Environment Analysis SWOT Analysis Marketing Objectives Implementation Budget Control References

Executive Summery
The Past Steve Jobs, Steve Wozniak and Ronald Wayne established Apple on April 1, 1976 in order to sell the Apple 1 Computer Kit that was hand built by Steve Wozniak. The Apple 1 was sold as a motherboard (with CPU, RAM and basic textual video chips) less than what is considered a personal computer today. Apple was responsible for creating the desktop publishing market due to their innovative programmers, PageMaker and LaserWriter. Between 1983 and 1996 Apple experimented with a number of failed consumer target products including digital cameras, portable CD players, speakers, video consoles and TV appliances. Market share and stock prices decreased. In 2001, Apple introduced the iPod portable digital audio player. The product was phenomenally successful over 100 million units were sold within 6 years. The Present January 2007, Steve Jobs, the CEO and Co-Founder of Apple, announces that Apple Computer Incorporated would now be known as Apple Inc. He also reveals the long anticipated iPhone, a combination of an Internetenabled smartphone and the iPod. In June 2008, he announces that the iPhone 3G would be released in July 2008, this newer version added support for 3G networking and assisted GPS navigation, among other things. The Future Apple plans on focusing on satisfying personal consumer demands rather than merely fulfilling a demographic requirement as well as, improving performance and stability rather than introducing new features when releasing new versions of any product.

Vision Statement
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the beast personal computing experience to students, educators, creative professional, and consumers around the world through its innovative hardware, software, and Internet offerings.

Mission Statement
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.

Product
The iPhone targets consumers who need to store information and communicate or people who want entertainment on the go. Apples target segments consist of professionals, students, corporate users, entrepreneurs, and health care workers. Currently, the market for high-end phones like the Apple iPhone is small. Few people want Internet, video, and PDA features in one device because of the high price. The smart phone market is still relatively small compared with general phone market. The market will rapidly increase in coming years due to lower prices and greater power.

Macro-Environment Analysis
Political Situation Taxation is something that governments put and Apple should be study this as country by country case to anticipate profitability, and pricing strategy. Importing laws in the world with GATT are in favor of trading. Countries are very variable in stability of, so we should study each country case by case. Economic Situation Economic growth worldwide is in a big recession which need careful manipulation. Potentiality of the market is decreasing but it is higher than any others in the Telecom sector.

Socio-Cultural Situation Population growth leading to expansion of the sector needs for cell phones. People depend more and more on mobile communication everywhere. There is educational growth in the world. Cultures perception of the technological devices is positive worldwide. Literacy & illiteracy level is not affecting using cell phones but affecting high technological cell phones, this fact needs to be considered. Acceptance of imported products in some countries are less if there is local provider. There are different social views that may affect product should be considered (e.g.: Boycotting American products in the Islamic world) Technological Situation Level of technology in the world is increasing. Internet level of awareness & usage for individuals & industrial aspect are increasing worldwide. Fixed phone lines capacity and development attempts. New technologies in the cell phones are increasing. Future plans for technological linkage between cities, universities, colleges, hospitals and other institutes are increasing and can be connected to cell phones. Level of usage of the E- Technology (online bidding, billing, complaints, blogging etc.) are high and trendy. Competition Situation There are 19260 cell phone producer in the world, but there are more than 15 big companies competing at the world level Market.

Environmental Situation The global concern of the Global Warming issue & other pollution effects concerning the packaging material and radiation of the cell phones. The demand of the international environmental approvals is a must (if there is any). Sales Situation Cell phones industries are one of the most profitable industries everywhere and the Market is increasing.

SWOT Analysis
STRENGTHS Innovative The iPhone has an innovative touch screen. It also has many functions of other mobile products all in one device. Compatibility The phone will work with iTunes and with other Mac/Apple products and OS software tools which means limitless potential for upgradeability. Ease-of-Use The all-new touch screen interface recognizes multi-finger gestures, just as the human hand normally behaves. Brand awareness Apple is well known for cool essential gadgets like the iPods along great technological innovations like the original Macintosh. Quality Scratch resistant screen durable and light metallic finish - software suite resistance to computer viruses

OPPORTUNITIES Increasing demand and expansion to a new target segment As technology advances and smart phones get cheaper Apple will attract consumers and get iPod users to upgrade to iPhones. Upgradeable iPhone software allows new exciting features to be brought in which take advantage of the touch screen ability. Future versions will also be hardware upgradeable. Partnerships Apple can collaborate with many powerful global mobile phone companies to flood the market with iPhones, which reduces costs in marketing and increases revenue through long-term agreement deals. WEAKNESSES Image The Apple brand is not targeted towards business people and does not have a reputation as being compatible with the corporate world. Price Apple does not yet offer lower priced models for more cost conscious consumers. User Interface Touch screen interfaces suffer from the problem of gorilla arm. THREATS Increased competition Smart phones are easier to make now more than ever. More companies may enter the market, and competitors or even Apple contractors can maneuver around patents to create similar devices. Downward pricing pressure The iPhone is marketed as a high-end phone, but phone prices are almost certainly going to fall when other companies undercut the price of iPhones. Difficulty expanding into Asian market There is less hype and interest in Asia since smart phones are better known and already widely used. Competition (Palm) - Palm has the longest history in PDA market and has experience-developing software for mobile devices. It is also a well-known brand for businesspeople. Existing software is well established and compatible with many products for this market. The market is familiar with Palm products; significant switching costs are involved in going to an iPhone. Palm can add many similar capabilities to their products that match the iPhone and expand to a wider market through lower cost and higher-power products.

Marketing Objectives
Target Market Differentiate the iPhone from other PDAs on the market. Primary customer targets is the middle-upper income professional to coordinate their busy schedules and communicate with colleagues, friends and family. Secondary consumer targets are high school, college and graduate students who need one portable multifunction device. Primary business target is to partner with: large cell phone service providers, AT&T, Verizon, Sprint and Cellular One large enterprise software firms where information is critical to the end user. Secondary business target is mid-to mid-size corporations that want to help managers and employees stay in communication or access critical data on the go. Market segment will consist of companies with $10-$50 million in annual sales. Positioning Using product differentiation, positioning the iPhone as the versatile, convenient, value-added device for personal and professional use. Focus on the convenience of having one device for communication, but also music, pictures, and video, and full Internet access. The iPhone will be promoted as both professional and hip. MARKETING MIX Product Full year warranty along with an optional three-year Apple Care warranty. Same taste as all other Apple products. Special edition version to be launched (including the iPhone Beatles edition celebrating their 40th anniversary). Launching a cheaper version in 2008 with less advanced features along with a more advanced version for professional use. Adding the following features to the iPhone (large disk storage capacity, lower weight, thinner device, long battery life, 4G wireless, GPS and improved camera).

Price Set the base model at a cheap price of $349. A more advanced model for $399. Special limited edition Beatles iPhone for special prices. Generally lower our prices to ensure we establish market dominance in as short of time as possible. Place Massive rollout worldwide at all reputable major retailers. Massive rollout Online, Showrooms and in all cell phone providers. All Apple Stores the Apple website will dedicate themselves to the iPhone. Eye catching displays will be found at all physical stores featuring the iPhone to make the product stand out from the pack. Apple Stores will have the iPhone on display a full month before its worldwide release. Promotion Integrate Apple message of revolutionary communications and audio/visual experience together in all media advertisements. Differentiate the iPhone against others is the touch screen functionality. Emphasize Apple brand prominently and associate the iPhone with the iPods groundbreaking lineage. Original but tasteful advertisements at the same time. A massive TV campaign is planned before launching the iPhone featuring a soon to be legendary ad to be the talk of the country. Advertising will be appearing on a regular basis to maintain general public awareness. Four age groups will be targeted: 15-20 years, 20-25 years, 2545 years, and 45 years and up. High School and College aged people will demonstrate social uses. The 25-45 years group will be used to determine business application and social/personal use. The 45 years and above will give us a plan to market to more senior well-refined group.

Implementation
Compensation system: Workers $5 incentive pay for every non reject phone they produce. $10 per phone six sigma quality program. Each worker $5000 each year for best practice training. Use control measures to closely monitor quality and customer service satisfaction consumers can contact the main headquarters

about any possible technical problems Apple Customer Service Bar and a customer service phone number stored in the phone book. In case of slow sales Apple offers iPhone to customers who have purchased other Apple products $10 per phone six sigma quality program, which will lead to: demonstrate the product for consumers, it will promote synergy and lure buyers. They develop deep relationships with two very different segments: those who have it and those who aspire.

Budget
Our break-even analysis assumes wholesale revenue of $500 per unit variable cost of $250 per unit and est. fixed cost of $50 million. Based on these assumptions the break-even calculation is $50 million divided by $500 minus $250 equals 200,000 units sold. Break-even calculations indicate that Apple will become profitable after the sales volume exceeds 200k. After the first year Apple will make a profit of 1.25 billion minus 50 million in fixed costs. Recommended price is $350. The markup is 40 percent. It is predicted that sales volume will increase at least 60 percent from this change; this will decrease the impact of fixed costs and improve opportunities to increase our production scale, which will further improve profits in the long run.

Control
The goal of this marketing plan is to outline the strategies, tactics, and programs that will make the sales goals outlined in Apples business plan a reality in the upcoming years. The current actions should be continued with an addition to the qualitative and quantitative data collected in future should be referred to in order to make changes to the product. The CRM should be maintained.

References
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Andrew Roberts (October 15, 2013). "Burberry Designer Bailey to Become CEO as Ahrendts Goes to Apple". Bloomberg. Helft, Miguel (March 2, 2011). "Jobs Returns to Introduce a New iPad". The New York Times. Kahney, Leander. Rebuilding an Apple From the Past, (Wired), (November 19, 2002). Chicago, USA. "World's Most Admired Companies". Fortune. (March 2010) "Apple's Jobs creation". Apple.com. (November 30, 2013). Coventry, Joshua. "Apple III Chaos: What Happened When Apple Tried to Enter the Business Market", Low End Mac. (September 1, 2006). "Apple's '1984' Super Bowl commercial still stands as watershed event". USA Today. (January 28, 2004) "Apple co-founder tells his side of the story". Sydney Morning Herald. (September 28, 2006). "Bloomberg BusinessWeek Profile of Apple Sales International Bloomberg Business Week. Seifert, Dan (June 10, 2013). "Apple announces iOS 7, 'biggest change' since the introduction of the iPhone, coming this fall". The Verge. Vex Media.