Group: Apple Product: iPhone

Executive Summary
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 a personal computer today. Apple was responsible for creating the desktop publishing market due to their innovative programmes, 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 considered successful over 100 million units were sold within 6 years. Apple now-a- days known as Apple Inc. Steve Jobs reveals long term anticipated iPhone combination of Internet enabled smartphone and iPod. After launching iPhone he is also planning to launch iPhone 3G in near future. 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. The market will rapidly increase in coming years due to technological advancement the requirement of people also keep on changing.

Situational Analysis
Customers

Apple is well known for cool essential gadgets like the iPods along great technological innovations like the original Macintosh. Due to these reasons Apple is having its own customer base. Currently, the market for high-end phones like the Apple iPhone is growing rapidly.
Number of people people want Internet, video, and PDA features in one device is increasing, Even though some people may reluctant to buy cell phone because of its high prices compared to other cell phones but as market growing through continuous innovation prices may come down and customer base can be further increased.

Competitors Even though Apple is one of the established brands in market in this segment of smart phones Apple faces strong competition from RIM whose Blackberry phones are still popular, Palm was also one of the strong competitors but having limitation in terms of usability and software, deprived the brand from gaining significant position in market. Samsung is coming with new products and gaining in terms of market share. Keeping the potential growing market there might be other few market players like Nokia, HTC, LG, Sony Ericsson etc may come with better products

Company Apple is most valuable consumer facing brand in world. Even though Steve Jobs has take leave for his health reasons, he will still remain involved in major strategic decisions of the company. Apple has surpassed Microsoft in market capitalization. Recently Apple unveiled its new online storage for music, photos, files and software. It has been argued that Apple has achieved such efficiency in

supply their chain that they have something like monopsony(one buyer, many sailors) in that it can dictate terms to suppliers. Context The rapid growth in smartphone market gives apple good opportunity to gain good market share. Apple having good technical base. They are having history of successful products like iPod and MacBook which are having very high ratings in terms of innovation. Launching of product like iPhone may help them to strengthen the brand globally.

Market Opportunities
In March 2011 Berg Insight reported data that showed global smartphone shipment has increased 74% from 2009 to 2011, despite of large market it only makes up 20% of total handset shipments. In US 45.5 million user use smartphones out of 234 million subscribers. UK market expected to grow at 31% in the context of smartphones. Hardware upgradeable iphones may be introduced in future so this can act as good opportunity for Apple. As technology advances and smart phones get cheaper Apple will attract consumer and get iPod users to upgrade iPhones.

Marketing Strategy
OBJECTIVES - We have set an aggressive buy achievable objective for the first and second years of market

First-year Objectives - We are aiming for a significant share of the U.S and U.K. PDA/Phone market through unit sales.

Second-year Objectives - Our second-year objectives are to achieve a 10 percent share based on sales.

An important objective will be to extend on the Apple brand name and link to the established meaningful positioning. Apple has invested heavily on the iPod brand and we plan to capitalize on the brand when marketing the iPhone. We will extend on Apples image of innovation, quality, and value. In addition we will measure the awareness and response in order to make adjustments to our marketing campaigns as necessary.

Target markets
iPhones marketing strategy is to differentiate the iPhone from other PDAs on the market. One of our primary customer targets is the middle-upper income professional that need one portable device to coordinate their busy schedules and communicate with colleagues, friends and family. Our secondary consumer targets are high school, college and graduate students

who need one portable multifunction device. Mainly this market will be replacing their iPod and cell phone with the iPhone.

Our primary business target is to partner with large cell phone service providers, AT&T, Verizon, Sprint and Cellular One; As well as large enterprise software firms where information is critical to the end user. Are 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. This market segment will consist of companies with $10-$50 million in annual sales. These are entrepreneurs and small business owner who need an all-in-one device for work and play.

POSITIONING
The iPhone is beginning to take a chunk of the Smart Phone category away from BlackBerry. Additionally, much of the recent press has been about the competition releasing devices to combat the iPhone and how great the devices are. They will never surpass the iPhone in popularity. I am saying this because it is law. It is part of the laws of Positioning which in marketing-speak is to say that the iPhone has captured the first-mover position in the minds of consumers. In addition to their superior operating system, which the competition cannot copy, they have created the perception of innovation with the iPhone as it relates to what consumers were used to. All that said, the iPhone will most likely never supplant BlackBerry as the number one Smart Phone either and will remain the 2nd in the category. But, the competition will never supplant, the iPhone and what it has done in terms of its market share. The iPhone will however, be the 1st touch screen phone, if it already isnt. Remember when the iPod came out and was subsequently followed by all the iPod killers like the Zune. Wheres the Zune now? Same law is in effect. First mover, combined with innovation, from a company that has the ability to let customers know about new products will always own the mind of the consumer. For the time being users seem to be confused, as they continue to argue about what is iPhone? Is it a mere feature phone, or, perhaps, it can be qualified as an Apple-branded smartphone, or even a communicator, though the latter version doesnt have many followers. Lets take a closer look at this products positioning. Some time ago the iPhone went by the name of apple smartphone. In order to avoid delving deep into queer terms and puns, lets remind ourselves, what the market accepts as a smartphone. Smartphone a handset running on a non-proprietary operating system that allows creation of additional applications by third-party developers, while all tools required for that are provided by the OS developer. In a word, you can install third-party programs, increasing overall functionality. So

happens that smartphones powered by one and the same OS are released by different makers, so here comes another, indirect token more than one manufacturer of such devices.

MARKETING MIX
Apple, Inc originated from the friendship and mutual interests of Steve Wozniak and Steve Jobs. The Two collaborated in the development of the Apple I in the early 1970s. The Apple I was a step ahead of most computers of the time featuring a use of aTV as a display system and a cassette interface for recording programs. After obtaining financing for the development of Apple II, the Apple Computer Company was formed in 1970. As the growth of home computer use grew, Apple grew with it. In 1980 the company issued its initial public offering of investment stock. Apple next introduced the MacIntosh Computer in 1983 during the Super Bowl. The computers desktop publishing features provided the foundation for future innovations that have become standard for the company. Today Apple, Inc has more than 33,000 employees and revenues exceeding 42 million dollars. Product Product Variety iPhone,iPhone4, iPhone3GS, iPhone3G. Features - iPhone has several best features present in it that can make the users happy. iPhone is certainly not the first touch screen phone or the first smart phone in the market. But it is one of the best executed ones up to date. It has been a revolutionary phone having attracted users from all parts of the world. A lot of new features have been added in the latest version of the iPhone, which is the iPhone 4. Some of them are Very Good Integration, Easy Synchronization, iBooks, Face Time Calling,etc. Services Mobile protect insurance, Voice plans, Data plans,etc.

Price The Apple iPhone costs begin at $99. Apples iPad pricing strategy includes the flexibility to lower the prices if consumer response dictates such action. This would be consistent with a similar $200 price cut on the iPhone in 2007.

Place

Apple, Inc Headquarters are located at is located at 1 Infinite Loop, Cupertino, California. The Apple Consultants Network includes independent professional service providers and technology consulting firms that specialize in Apple and third-party solutions. Certified on

Apple technologies, these providers deliver on-site technology services and support to home users and businesses of all sizes.

Apple service providers are certified technicians, who complete regular Apple training and assessments, and offer repair services, and exclusive access to genuine Apple parts.

They are located in Asia/Pacific, Africa, the Middle East Europe and Latin America. Apple has over 200 retail stores worldwide including the US, UK and Canada. Apple recently opened a new retail store in Shanghai China.

Promotion

Apple, Inc offers special discounts on refurbished MacIntosh computers, iPod Nanos, and the 8GB iPod Touch. In each case a 1 year warranty is included on the all products.

Apple, Inc authorized Training Centers are located throughout the U.S. each provides instruction in Mac systems, Mac OS X, and Apples professional applications. A wide range of certification exams and courses offer innovative learning opportunities for IT and creative professionals, educators, and service techniciansdelivered exclusively by Apple Certified Trainers.

The Apple Consultants Network website provides a search tool allowing visitors to locate nearby certified Mac product consultants in the U.S, Canada, and a number of international locations.

The online Apple Store offers free shipping for orders over $50. The online Apple store offers iTunes gift cards. Apple provides a $100 rebate when you purchase a Mac or specific printers from the online store.

Apple has packaged back-to-school offers, including some aimed at college students.

REVIEW & CONTROL

The good: The Apple iPhone has a stunning display, a sleek design, and an innovative multitouch user interface. Its Safari browser makes for a superb Web surfing experience, and it offers easy-to-use apps. As an iPod, it shines. The bad: The Apple iPhone has variable call quality and lacks some basic features found in many cell phones, including stereo Bluetooth support and 3G compatibility. Integrated memory is stingy for an iPod, and you have to sync the iPhone to manage music content.

Despite some important missing features, a slow data network, and call quality that doesn't always deliver, the Apple iPhone sets a new benchmark for an integrated cell phone and MP3 player.