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Arab Academy for Science, Technology and Maritime Transportation MBA Group H Apple iPhone Marketing Plan Group

Assignment Ahmadullah El-Hadidy Basem Gaber Hany Abdulwahab Kareem Raslan Moustafa Hanafy T amer Yousif

Apple iPhone Marketing Plan Executive Summery Situational Analysis SWOT Analysis Marketing Objectives M ing Strategy Implementation Budget Control

Apple iPhone Marketing Plan 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 Wo zniak. The Apple 1 was sold as a motherboard (with CPU, RAM and basic textual vi deo chips) less than what is considered a personal computer today. Apple was res ponsible for creating the desktop publishing market due to their innovative prog rammes, 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 play er. The product was phenomenally successful over 100 million units were sold wit hin 6 years. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Executive Summery 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 revea ls the long anticipated iPhone, a combination of an Internet-enabled 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 requireme nt as well as, improving performance and stability rather than introducing new f eatures when releasing new versions of any product. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control Think Different

Apple iPhone Marketing Plan Executive Summery The iPhone targets consumers who need to store information and communicate or pe ople who want entertainment on the go. Apples target segments consist of profess ionals, students, corporate users, entrepreneurs, and health care workers. Curre ntly, 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 mar ket. The market will rapidly increase in coming years due to lower prices and gr eater power. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Situational Analysis Political Situation Taxation is something try by country case to laws in the world with in stability of, so we Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control Economical Situation Economical growth world wide is in a big recession which need careful manipulatio n Potentiality of the market is decreasing but it is higher than any others in th e Telecom sector.

that governments put and Apple should be study this as coun anticipate profitability, and pricing strategy. Importing GATT are in favor of trading. Countries are very variable should study each country case by case.

Apple iPhone Marketing Plan Situational Analysis Socio-Cultural Situation Population growth leading to expansion of the sector needs for cell phones. People depend more an more on mobile communication everywhere. There is educational gro wth in the world. Cultures perception of the technological devices is positive wor ldwide. Literacy & illiteracy level is not affecting using cell phones but affect ing 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) Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Situational Analysis Technological Situation Level of technology in the world is increasing. Internet level of awareness & usag e for individuals & industrial aspect are increasing worldwide Fixed phone lines capacity and development attempts. New technologies in the cell phones are increa sing. Future plans for technological linkage between cities, universities, colleg es, hospitals and other institutes are increasing and can be connected to cell p hones Level of usage of the E- Technology (online bidding, billing, complaints, b logging etc) are high and trendy. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Situational Analysis 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. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Situational Analysis Environmental Situation The global concern of the Global Warming issue & other pollution effects concerni ng the packaging material and radiation of the cell phones The demand of the inte rnational environmental approvals is a must (if there is any) Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control Sales Situation Cell phones industries are one of the most profitable industries everywhere and the Market is increasing

Apple iPhone Marketing Plan S/O 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 wit h iTunes and with other Mac/Apple products and OS software tools which means lim itless potential for upgradeability. Ease-of-Use The all-new touch screen interf ace recognizes multi . finger gestures, just as the human hand normally behaves Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan S/O Analysis Strengths Brand awareness Apple is well known for cool essential gadgets like the iPods al ong great technological innovations like the original Macintosh. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan S/O Analysis Strengths Price iPhone would be sold at a reasonable price for its value. Quality Scratch resistant screen durable and light metallic finish - software suite resistance t o computer viruses. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan S/O Analysis Opportunities Increasing demand and expansion to a new target segment As technology advances a nd smart phones get cheaper Apple will attract consumers and get iPod users to u pgrade to iPhones. Upgradeable iPhone software allows new exciting features to b e brought in which take advantage of the touch screen ability. Future versions w ill also be hardware upgradeable. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan S/O Analysis Opportunities Partnerships Apple can collaborate with many powerful global mobile phone compan ies to flood the market with iPhones, which reduces costs in marketing and incre ases revenue through long-term agreement deals. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan W/T Analysis 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* * Gorilla arm is a side-effect that humans face when using touch screens for lon g times as humans are not built Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control to hold their arms at waist or head-height, making small and precise motions. Af ter a short period of time, cramp may begin to set in, and arm movement becomes painful and clumsy. This is now considered a classic cautionary tale to human-fa ctors designers.

Apple iPhone Marketing Plan W/T Analysis Threats Increased competition Smart phones are easier to make now more than ever. More c ompanies may enter the market, and competitors or even Apple contractors can man euver around patents to create similar devices. Downward pricing pressure The iP hone is marketed as a highend phone, but phone prices are almost certainly going to fall when other companies undercut the price of iPhones. Difficulty expandin g into Asian market There is less hype and interest in Asia since smart phones a re better known and already widely used. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan W/T Analysis Threats Competition (Palm) - Palm has the longest history in PDA market and has experien ce-developing software for mobile devices. It is also a well-known brand for bus inesspeople. Existing software is well established and compatible with many prod ucts for this market. The market is familiar with Palm products; significant swi tching costs are involved in going to an iPhone. Palm can add many similar capab ilities to their products that match the iPhone and expand to a wider market thr ough lower cost and higher-power products. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Marketing Objectives Set an aggressive buy achievable objective for the first and second years of mar ket : 1. First-year Objectives - We are aiming for a 2 percent share of the U.S and U.K. PDA/Phone market through unit sales volume of 445,000. 2. Second-year O bjectives - are to achieve a 10 percent share based on sales. Extend on the Appl e brand name and link to the established meaningful positioning. Extend on Apple s image of innovation, quality, and value. Measure the awareness and response in order to make adjustments to the marketing campaigns as necessary. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan 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 c ommunicate with colleagues, friends and family. Secondary consumer targets are h igh school, college and graduate students who need one portable multifunction de vice. Primary business target is to partner with : large cell phone service prov iders, AT&T, Verizon, Sprint and Cellular One large enterprise software firms wh ere information is critical to the end user. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Marketing Objectives Target Market (cont.) Secondary business target is mid-to mid-size corporations that want to help mana gers and employees stay in communication or access critical data on the go. Mark et segment will consist of companies with $10-$50 million in annual sales. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control Positioning Using product differentiation, positioning the iPhone as the versatile, convenie nt, value-added device for personal and professional use. Focus on the convenien ce 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 h ip. .

Apple iPhone Marketing Plan Marketing Mix Strategy Product Full year warranty along with an optional three-year Apple Care warranty Same tast e as all other Apple products Special edition version to be launched (including t he 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 stor age capacity, lower weight, thinner device, long battery life, 4G wireless, GPS and improved camera) Executive Summary Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Marketing Mix Strategy 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 e nsure we establish market dominance in as short of time as possible Executive Summary Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Marketing Mix Strategy 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 wil l dedicate themselves to the iPhone Eye catching displays will be found at all ph ysical stores featuring the iPhone to make the product stand out from the pack Ap ple Stores will have the iPhone on display a full month before its worldwide rel ease Executive Summary Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Marketing Mix Strategy Promotion Integrate Apple message of revolutionary communications and audio/visual experien ce together in all media advertisements Differentiate the iPhone against others i s the touch screen functionality Emphasize Apple brand prominently and associate the iPhone with the iPods groundbreaking lineage Original but tasteful advertiseme nts 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 wi ll be appearing on a regular basis to maintain general public awareness Executive Summary Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Marketing Research Four age groups will be targeted: 15-20 years, 20-25 years, 25-45 years, and 45 y ears and up High School and College aged people will demonstrate social uses The 2 5-45 years group will be used to determine business application and social/perso nal use The 45 years and above will give us a plan to market to more senior wellrefined group Executive Summary Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Marketing Research This research will be done through surveys (via email campaign through portals su ch as, iTunes and other on-line application developed for the iPhone) and interv iews (in Apple stores) with the same age groups listed before To bring the iPhone to the front of the business world it is important to research different ways t o grow the 15-25 year old group into business uses of the product Brand awareness will be an important tool in taking the Apple brand from "social cool" to "busi ness cool". Executive Summary Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Marketing Research We will ask for feedback on iPhone features, and implement those changes most imp ortant to the end user in the next generation iPhone We will allow users themselv es to design their own ideal iPhone online and use any useful ideas to further r efine future iPhone models We will continuously scour the Apple fan websites to u nderstand what the Mac faithful are saying, as they are our best customers. Executive Summary Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan 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 Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control use control measures to closely monitor quality and customer service satisfactio n consumers can contact the main headquarters about any possible technical probl ems by using Apple Customer Service Bar and a customer service phone number stored in the pho ne book

Apple iPhone Marketing Plan Implementation In case of slow sales Offer iPhone to customers who have purchased other Apple products $10 per phone s ix sigma quality program, which will lead to: demonstrate the product for consume rs, it will promote synergy and lure buyers. develop deep relationships with two very different segments: those who have it and those who aspire Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan 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 profitabl e after the sales volume exceeds 200k. After the first year Apple will make a pr ofit 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 leas t 60 percent from this change; this will decrease the impact of fixed costs and improve opportunities to increase our production scale, which will further impro ve profits in the long run Executive Summary Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

Apple iPhone Marketing Plan Control To plan our strategy we will meet monthly with the board of Apple, present our i nformation, and make a proposal for continued marketing efforts. Before each mee ting our team will meet in private, with each person presenting their own propos al based on the information they have learned. After the initial proposals, we w ill vote on the best one or come to a compromise. The final proposal sent before Apple is the result of that meeting. Executive Summery Situational Analysis SWOT Analysis Marketing Objectives Market ing Strategy Marketing Research Implementation Budget Control

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