Professional Documents
Culture Documents
APPLE IPHONE 4
PLAN BOOK
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Elizabeth Abolt | Eric Guth | Yi Lin |
Zike Cheng | Maureen Schoen | Karen Hays |
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2013 - 12- 16
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Table
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Contents
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Executive Summary3
Situation Analysis & Marketing Background4
Brand Information5
Industry Information.12
External Information.17
Competitor Information..19
Current Users.22
Geographic Emphasis23
Seasonality & Timing24
Consumer & Consumer Decision27
SWOT Analysis.28
Primary Research..29
Target Audience30
Survey.32
Focus Group33
Media Plan.41
Objectives.42
Strategy and Tactics43
Media Vehicle.47
Flow Chart49
Bibliography..50
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Apple is well known for its
Executive modern and trendy technology
Situation Analysis
&
Marketing
Background
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!5
! Brand Information
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Apple
! Availability
!
In July of 1976, Apple released its first ever computer
!entitled Apple 1. From that day onward, Apple has released
!numerous operating systems, computer software programs, and
a wide array of personal electronics. Because Apple has been
!around for 37 years now, the company has had quite a while to
!build, and maintain, a very solid and respectable reputation. The
majority of todays consumers view Apple as a luxury brand that
!challenges the status quo and sets the highest standards in
!technology, innovation and service. Not only do consumers trust
and value the brand, but they also take pride in owning and
!operating Apples products. Having such a highly regarded
!reputation has placed Apple ahead in terms of market
opportunities, general sales, customers willingness to buy,
!consumer loyalty, customer service, and in-store experiences.
!This is a brand that stands out amongst its competitors and is
consistently ranked high in consumer satisfaction. Thus, because
!Apple has been around for such a great deal of time and has built
!aconsumers
solid, trustworthy name for itself over the last 37 years,
are especially loyal to the brand and its products.
!
!6
Success
! of Apple Brand Through its History
!
!
Apple
! iPhone Previous Brand Positioning
! Apple's advertising strategies for iPhone has evolved over the years
just as product has evolved. IPhone was the biggest innovation of its
! during the initial release. The competition at the time tended to
time
offer phones with limited web-use, limited touch screen capabilities,
!
and limited music playing ability. The initial television campaign relied
! showing the product in use during the spot. Typically, the :30 spot
on
started by showing an user doing an activity (playing music, checking
! searching for directions, web surfing) on the phone and then
email,
ended with the phone receiving a call (iPhone commercials).
! !
! Subsequently, the iPhone improved and the advertising reflected
these improvements. However, these ads focused on another iPhone
!
innovation, the app store (Villapaz). This positioned iPhone as the
leader in Smartphone technology creating an unique selling proposition
! competitors who had yet to develop app stores. With another
from
innovation came a new series of ads. This next campaign, for the
iPhone 3Gs, focused on the use of video playback.
!
As the iPhone 4 came out, the marketplace became more
competitive. Therefore, iPhone positioned itself with a campaign
signing off each spot by stating, "If you don't have an iPhone, well, you
don't have an iPhone. Luke Villapaz of International Business Times
says, "The phone's tech aspects were proven; all that was left was to
reinforce the idea that a person's life was less meaningful without it."
!
All of the creative work thus far for iPhone products has been
created by TBWA/Media Arts Lab.
!8
Processor
CPU: Apple A4 (ARM Cortex-A8)
CPU Speed: 800 MHz
The Product Offered FPU: integrated
Register Width: 32-bit
Data Bus Width: 64-bit
! Address Bus Width: 32-bit
! Onboard RAM: 512 MB
! Maximum RAM: 512 MB
Storage Level 1 Cache: 32 kB data, 32 kB
Flash Drive: 16/32 GB instruction
! Level 2 Cache: 512 kB on-
Video processor
Screen: 3.5" multi-touch !
GPU: PowerVR SGX 535 (via A4 Networking
chip) Airport Extreme: included
Max Resolution: 960x640 Bluetooth: 2.1+EDR
("Retina") Cellular:
Video Out: composite, GSM/EDGE (850, 900, 1800,
component (via Dock Connector) 1900 MHz)
Camera: 5 MP back (w/LED UMTS/HSDPA (3.6 & 7.2 Mbps)
flash), VGA front (850, 900, 1900, 2100 MHz)
! Location: GPS, Digital Compass
Input/Output !
USB: via Dock Connector Miscellaneous
Audio Out: stereo 16 bit mini Battery Life:
Speaker: mono Talk 7 hrs (3G)/14 hrs (EDGE)
Microphone: mono Standby 300 hrs
Sensors: Accelerometer, Internet 6 hrs (3G)/10 hrs (Wi-Fi)
Proximity sensor, Ambient light Video 10 hrs
sensor, Three-axis gyro Audio 40 hrs
! Dimensions: 4.5" H x 2.31" W x
0.37" D
Weight: 0.3 lbs.
!10
1970-2000
Mostly in print and television
Brand's Location
After 2001
Mostly in television and digital
1984: Mainstream
a short film titled
launching the magazines:
Pencil Test
Macintosh Newsweek and Time
1984 1988 1995-2000
Before 1985 1990s After
1983 2001
Switch
"Macintosh the "Lemmings" "What's on your iPod and
Introductio commercial PowerBook?" iTunes ads
n" 18-page aired at the campaign "Get a Mac
brochure Super Bowl
Full ads on
www.apple.com
!12
Industry Information
Mobile Penetration Grows
! Industry Information
Mobile Usage and Consumption
! Industry Information
Content Consumption Range
(%)
!15
! Industry Information
Product and Industry Insight
! Industry Information
Smartphone Market
!17
External Information
In the year 2012, there were 5 billion mobile phone users, 1 billion of
whom were smartphone users, which was a 50% increase since 2011
(Meeker 2012). From 2009 to 2012, the number of American adults who
owned tablets or eReaders increased from 2% to 29% (Meeker 2012). Part
of this increase in tablet ownership could be attributed to the fact that, in
2012, 48% of American children (ages 6-12) asked for an iPad for
Christmas (Meeker 2012). The rising demand for smartphones, tablets,
and eReaders in the United States could indicate that more American
consumers were looking for technologies with multi-tasking capabilities,
such as connecting to the Internet while talking on the phone or storing
several books in a small, lightweight device.
!
With regards to education, in 2012, 8% of American adults were
completely satisfied with the quality of education students (kindergarten
through grade 12) received. 36% of adults were somewhat satisfied, 37%
were somewhat dissatisfied, and 16% were completely dissatisfied (Gallup
2013). During the same year, 16% of American adults rated the quality of
education at four-year colleges and universities as excellent; 52% rated it
as good; 22% rated only fair; 8% rated poor; and 2% had no opinion
(Gallup 2013). Additionally, a Gallup poll from October 2013 revealed that
47% of Americans said a degree from a well-respected university is more
important for people to succeed; while 50% said that obtaining
knowledge and skills to do a specific job is more important; 4% had no
opinion (Gallup 2013). These trends in education suggest that the majority
of Americans are not completely satisfied with the quality of education in
the United States, and the majority would rather learn job-specific skills
rather than obtain academic knowledge. As a result, Americans may start
increasingly educating themselves through sources other than academic
institutions.
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External Information
Cont.
! Competitor Information
Direct & Indirect Competition
Competitor Information
A Closer Look at Samsung
! Competitor Information
A Closer Look at Samsung
! Geographic Emphasis
16% 20.5%
24%
39.5%
!24
According to iPhone sales data, sales of the first and fourth quarter of
2008-2010 were generally better than the rest of the year (Seekingalpha
2010). In addition, sales in October, November, and December were much
higher than the other months throughout the year 2008 (Roughlydrafted).
Also, according to iPhone development timeline, new generations of iPhone
usually came out during June-September. Thus, there is correlation between
sales and the launch of a new model of iPhone. Apple is also spending more
of their advertising budget on the following months after releasing a new
model of iPhone. So, our media plan should be more focused on first and
fourth quarter of the year and related to new iPhone generation launch.
!25
*Estimated monthly
sales breakdown based
on official quarterly
reports and announced
milestone shipments.
January and February
2008 are estimated
based on sales rates of
the first two weeks of
January.
Scheduling: Pursuing
Time Period: Continuous but more heavily
on October, November, and December
! Consumers &
Consumer Decision
SWOT Analysis
S W
O T
- Expand into more markets
- Reach new markets through
social media - Competitors similarities
- Target users of older models - Reduced market share
of iPhone - Cheaper substitutes
- Target new smartphone - More durable substitutes
users who are not ready for
the latest model
The iPhone 4 benefits from simple design, innovative technology, and great brand
image. However, its high price and stagnant design growth turns potential customers
away. Externally, the market is available for more growth for iPhone users. There is also
a market for people who want older models or who currently do not have a smartphone.
The iPhone 4 faces the threats of reduced market share, cheaper substitutes, and similar
alternatives.
!29
Primary Research
!30
Target Audience
General Description
! Our target audiences are iPhone's
current users, more specifically
Rationale speaking, young college students aged
According to MRI data, iPhone 's
between 18 to 24 years old. They are
heavy users are young adults aged generally tech savvy and heavily engaged
from 18-24, with education level of in various media platforms, especially
only 5 percent not graduated from television and Internet. Also, they have
high school and 44 percent of them
high education level of graduating from
graduated from college or above. So,
18-24 year old college students are high school and continuing studying in
most appropriate to target on. In college. These college students can be
addition, iPhone users are usually expected to have management and
engaged with management, business
business occupations and decent income
and financial operations, which share
a highest index of 165 among all the level after graduation. However, most of
occupations and an overwhelmingly these college students are living on
high index of 204 directly links to the budget for now to complete their
consumers who own the annual undergraduate education.
income of more than $150,000.
Since college students are receiving
high education, we expected them to
have good occupations and high-level income. Also, in terms of media usage, television and
Internet consumers, who are mostly comprised of young, tech savvy adults, should be mostly
targeted on based on MRI data.
Additionally, based on our secondary research results on iPhones price and industry
trend, because of the launch of iPhone 5 and 5s, the price and potential market size of iPhone
4 has decreased. IPhone 4 now can be free with contract and below $100 contract free. This
can be attractive to college students who dont have much budget to buy expensive phones.
Thus, take both demographic and psychographic information into account, we decided college
students to be our narrow- down target audiences.
!31
Target Audience
With an estimate population of
Scope of Audience 131,704,730 in United States, there is
30,140 in total of U.S. population are aged
A Day In Life (of a target between 18-24 years old. Among them,
audience): 8,327 are high school graduates and 2,716
Amy is a 22-year-old have bachelors degree with all races and
business major senior student at both sexes counted (US census). Thus, the
University of Illinois. A day in
scope of our target audiences would be
Amys life is busy and fast-paced.
Amy spends most of her between 2,716 and 8,327.
weekdays going to classes and
job interviews, hanging out with
friends and participating in organizations activities on campus.
Amy started her day with checking her Gmail account, Facebook updates,
Yahoo news and Wall Street Journal using apps on her iPhone 3G. She found out
the news that the new iPhone 5s was released, which resulted the price of iPhone
4 dropped to free with contract. Since she is a senior seeking for a full-time job
after graduation, Amy spends most of her day and budget on traveling to
interviews in Chicago and other big cities. So, Amy is struggling about whether
she should get a new phone or not. With that in mind, she took a shower with
television on, showing some morning news on Fox channel. Then, she took her
phone and laptop to classes.
In the afternoon, she headed to Chicago for a job interview as an account
manager associate position at Leo-Burnett, an international well-known
marketing agency. On her way, she used her iPhone 3G to browse online and see
some business, corporation news to prepare for the job interview, all the way
thinking that it would be much better to have her iPhone with higher-speed
internet, stronger signal, and better user interface. After successfully
accomplished her interview, Amy got the job with salary of $12,000 a year. At
night, she hanged out with their friends for dinner and movie as celebration for
her new job. At around 10 p.m., Amy was back home and went to bed, while
watching some TV shows and surfing on the Internet. When Amy was browsing
on best buys website, she decided to buy a new iPhone 4 online to replace her old
one. After the phone shopping, Amy went to sleep happily.
So, a typical day of a college student Amy is very busy, fast-paced, tech-
savvy and great TV and online media engagement.
!32
Survey !
A 20-question survey was distributed online to collect information on
the attitudes and beliefs of the target market. Brief demographic information
was also collected at the end of the survey to ensure that the majority of
respondents were members of the target market. An online survey is the ideal
method for gathering this information because the target market is more
reachable online, and the online forms confidentiality encourages more
honest responses.
The survey was distributed during the first two weeks of November
2013. 31 responses were collected, with 71% females, 45% between the ages of
18 and 24, and 87% Caucasians.
The survey was effective in capturing a snapshot of the target markets
psychographic information, particularly with regards to media
consumption. Specifically, it was found that 100% of the
respondents have a profile on at least one social media
platform, and all respondents have a Facebook profile.
There were also trends discovered with regards
to personal beliefs. When asked to rank the
importance of their career, personal life, the
environment, politics, and the media, 84% of
respondents ranked personal life as the most important.
Also, when asked to rate how confident they are in the daily
decisions that they make, 71% gave a 4 out of 5 rating,
which is pretty confident but could still use some
reassurance.
Finally, another trend that stood out in the survey
was iPhone use. 68% of the respondents have owned an
iPhone 4, which confirms that current users is a viable
target market.
!33
Focus Group !
Focus Group !
Results Part 1
Whether
Expected Highest Cellphone
Group Current
Cellphone Price Ideal Cellphone Status
Members Cellphone
Features Affordable Influences
Purchase
Can make phone Internet; flip; camera;
1 Non-smartphone $75 No
calls walkie talkie
Unlocked; 4G/LTE; fast
Galaxy; as long as it
2 HTC $400 processor; longer battery No
works
life
Works fast; Internet
3 iPhone 5 $500 Same as iPhone 5 Yes
connection
Touch screen; longer
4 iPhone 4S Internet connection $200 Yes
battery life
Good camera; longer
High quality of
5 SamSung Galaxy $500 battery life; light weight; Yes
camera
dont break easily
Depends on
6 iPhone 4S Goodlooking how much I Goodlooking No
have
Touch screen; various
7 iPhone 5 Goodlooking $500 apps; high quality of Yes
camera
Touch screen; various
Can send text
8 iPhone 4S $500 apps; high quality of Yes
messages
camera
Focus Group !
Results Part 2
3 Depends on the best deal No fingerprint identity sensor Most expensive one
Focus Group
Results Part 2
- Different occasions where you would deicide to
purchase a new cellphone
Group
Adjectives
Members
1 Outgoing/handsome/social/positive/creative
4 Tech-savvy/avant garde/youthful
5 Computer-savvy/organized/outgoing/connected
6 Smart/fashionable/stylish/social/
7 Girls/high-tech stuff/rich
8 Artistic/busy/rich
9 Technologically savvy/organized/unintelligent/lazy
!37
Focus Group
Results Part 2
- 3-5 words that describe a Smartphone lover
Focus Group
Results Part 2
- Probe (going into more details)
Small Indestru
1 Big phones Razr phones iPhone Android Old
buttons ctbale
Complicat Complex/
3 Outdated The norm Irrelavant 2008 Old
ed futuristic
Good
Home A
4 Korean Hello moto! Android sound Keyboard
button weapon
effect
Playstatio
9 Asian Robot Fruit Letters BBMing Dconcs
n4
!39
Focus Group
Results Part 2
- Name the 1st
nameword pop up associated
of celebrities with
associated specific
with
brands of cellphones
specific brands of cellphones
Focus Group !
Summary
Media Plan
!42
Objectives
Timing & Scheduling Media Mix Statement
Graphics
Graphics
Social Media
Internet Allocations
Allocations
Non-traditional Out-of-home
Radio Allocations Allocations
!47
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Social media will be our primary media
Media Vehicles vehicle due to the fact that it is both
heavily and widely used by individuals
aged 18 to 24. Instagram and Twitter
will be the two social media outlets we
focus in on because they are daily destinations that target in on specific
demographics, interests and social connections. Both platforms have high
engagement figures and most current iPhone 4 users have downloaded Twitter
and Facebook apps on their phones.
Finally, the smallest share of our media will be devoted to out of home media.
More specifically, we will use transit advertising in order to reach our target
audience. Print ads on buses, subways, transit stations and bus shelters demand
attention and cannot be tuned out, unlike other media vehicles. It also reaches
passengers and no matter what website or radio station theyre listening to, and
offers flexibility of advertisement size and location. Additionally, this is a prime
opportunity to reach students and professionals alike.
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Flow Chart
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!50
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!
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!
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!
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!
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