Say Hello To iPhone: What made people really say Hello to iPhone?

Overview: Apple with a new brand…entering a new market… with highly effective marketing effort… redefining the scopes and technologies in a mobile device. In the crowded and overly competitive mobile market ….. How did apple’s marketing crew created and sustained the hype…. What made iPhone a success-story?? The Product: What is iPhone? What's new in this? iPhone combines three products — a revolutionary mobile phone, a widescreen iPod with touch controls, and a breakthrough Internet communications device with desktop-class email, web browsing, maps, and searching — into one small and lightweight handheld device. iPhone also introduces an entirely new user interface based on a large multi-touch display and pioneering new software, letting you control everything with just your fingers. So it ushers in an era of software power and sophistication never before seen in a mobile device, completely redefining what you can do on a mobile phone. Background information: Apple Inc,established in Cupertino, California on April 1, 1976 and incorporated January 3, 1977, the company was called "Apple Computer, Inc." for its first 30 years. On January 9th, 2007, Steve Jobs, renowned CEO of Apple, announced that the company which he founded would no longer be known as Apple Computer, Inc. Its new name would just be Apple Inc,

erasing the word“computer” from the company name[i.e. company identity] to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Apple has about 35,000 employees worldwide and had worldwide annual sales of US$32.48 billion in its fiscal year ending September 29, 2008. For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a unique reputation in the consumer electronics industry.This includes a customer base that is devoted to the company and its brand, particularly in the United States. In 2008, Fortune magazine named Apple the most admired company in the United States. Here we give pictorial representation of landmarks of the company:

Entry into the Mobile Phone Market
The foundations for the development of the iPhone were laid in 2003 when Jobs declared at an executive conference, "D: All Things Digital," that the future of mobile communication and information exchange lay with mobile phone. Analysis of the marketing opportunity: Target Consumers: 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.

Creation of the phenomenon: When Apple wanted to redefine what a cellphone is, it didn’t phoned in yet another clunky “smart-phone” with an Apple logo on it. For over a decade, the incumbents in that industry were satisfied with existing form factors, carrier relationships, revenue models and infinite small-minded product differentiations. Unlike Nokia or Microsoft, Apple didn’t say, “There are too many industry restrictions and technical hurdles for us to redefine this category. It’s way too early.” Apple didn’t leave anything to time or fate. In hardware, software and services, it actively created a space for the iPhone to succeed. Where it was needed, it poured in R&D , invented new things and collected hundreds of patents; gained new expertise in radio technology; bought a company specialized in multi-touch; converted a desktop OS into mobile one; created new global distribution channels; negotiated a ground-breaking arrangement with the largest carrier; and so on. In other words, instead of creating, hoping and predicting that the iPhone would somehow become a killer product, it made sure that all the supporting elements were in place to make sure that it would. While the company announced the iPhone in January, few outside Apple have actually seen the product in action. No one has been able to see anything more than what Apple wanted the world to see. Advertising & hype: When Apple CEO Steve Jobs removed an iPhone from his pocket, officially unveiling the phone/media player/Internet device at Macworld on Jan. 9, Apple did not follow up with a barrage of advertising. Far from it: It ran a mysterious teaser ad during the Academy Awards telecast, six weeks later. The "Hello" spot, featured dozens of clips from

classic movies and TV—actors and actresses answering phones—and ending with a brief look at an iPhone, the word "Hello" and the line "Coming in June." Subsequent ads showed close-ups shots demonstrating what people can do on the phone.It gave the sense to the potential customer that he was actually experiencing the product. What was amazing on launching the i-phone was the SECRECY involved with the product. Before the official launching of the product , not a single Apple-store displayed anything about the product, not even one, protected by a glass box or display. NOTHING. It was just this huge MYSTERY which intrigued people to talk more about it. Within the ensuing information vacuum, the media and the blogosphere engaged in an endless stream of speculation. One of the great things I liked about the iphone campaign was, taking the celebrities out of advertisements (besides the debut commercial) and concentrating on the phone. Good strategy, seems like Apple knows its target audience does not need to see Paris Hilton half naked to buy their merchandise. Apple's less-is-more strategy worked brilliantly, judging by the search activity. Search activity related to the device jumped to more than 1.1 million during the week ended Jan. 14, according to comScore. As Apple's major advertising began in June, searches ramped up again, finally peaking with 1.2 million for the week ended June 24. Over the six months prior to the product’s introduction it was the subject of 14,000 articles, 311,000 blog posts and it generated 69 million hits on Google. Think about any product, which was declared it’s launch before 6 months and lived upto this hype until it was launched.

The iPhone is an outstanding product, 5 years ahead of any competitors in user interface and technology. It has changed the paradigm. However, Apple did a lot of mistakes in marketing the iPhone:

Marketing mistake #1 - reducing the iPhone retail price from $599 to $399 a 33% rebate - after only 3 months from the product launch. This way Apple betrayed the iPhone early adopters - and their most faithful costumers. Mistake #2 – now – lowering the iPhone price even down to $199 – 66% less than the original launch price, just 12 months after. Will the iPhone price be $10 in December 2008? Mistake #3 - Forcing costumers in signing with AT&T as an exclusive carrier. Result: slowing down sales of the iPhone. Mistake #4 – Late launch in European markets. US launch: June 2007. In Nov. 2007 the iPhone was launched in UK, Germany and France. on July 11, 2008 – 1 full year after the first launch - the iPhone gets launched in most of the other European countries: Italy, Spain, Switzerland, Ireland, Denmark, Norway, Sweden, Finland, Netherlands. And in Japan and Australia. Mistake #5 – absurd and jammed pricing of the iPhone and carrier monthly fees in European countries. Result: kills big slices of potential sales of the iPhone in Europe. And making a big favour to Nokia and Motorola. Despite its serious marketing blunders done by Apple, the iPhone has been a huge success. Approximately total of 17.4 million iPhones had been sold worldwide until December 27, 2008. The launch of iphone, which was hailed by some analysts as the most successful launch of a brand ever. While many analysts hailed the innovative marketing strategy followed by Apple and also considered the iPhone to be a category-defying product, others felt that iPhone was over hyped and said that it was never good to over hype any products. Some analysts felt that Apple had a long way to go to realize its ambition of becoming a major player in the mobile phone market considering that the market had some very dominant competitors who had decades of experience behind them.

Some analysts also viewed Apple's foray into this market as a defensive strategy necessitated by the introduction of music phones by some wellknown mobile phone companies. Critics said that the enormous amount of hype surrounding the iPhone had led to the initial success of the brand. The main question, however, was whether Apple would be able to match the initial hype with performance. Some analysts opined that the iPhone might not live up to expectations. Conclusion Over-hyped or not, Apple deserved kudos for coming up with a product idea like the iPhone and also implementing it successfully. The company had made an aggressive entry into the mobile phone market and had managed to attract the attention of the existing competitors. Introduction of the iPhone would prompt its competitors to come out with better phones in the future, thus offering wider choice and better products to customers...