iPhone Marketing Plan

Presented By: Mohit Mahal 029 Ram Punjani 040 Garima Solanki 013 Tushar Limaje 051 Sunaina Bhatia 055 Karthik K 020 Sree Harsha G N 045 Sunil Arya - 001

Executive Summary
In this presentation we will understand how apple Inc made iPhone a brand. Various aspects of marketing that apple has followed while launching the iPhone.
What unique value this product has created to the customers. Finally we will take a look at the budget constraints and the promotional strategies applied by apple team to make iPhone a hit.

Journey so far
First iPhone was released on June 29, 2007.

The Smartphone was loaded with 3G networking,

GPS Navigation in addition to other general features. The iPhone targeted the consumers who need to store information and communicate or people who want entertainment on the go. Apple launched 5 models of iPhone till date. Viz. iPhone, iPhone3G, iPhone 3GS, iPhone 4 and iPhone 4S.

SWOT Analysis

Strengths
Entire iPhone ecosystem

Perceived to be the most stable and simple OS

Best designed phone in the market resulting in novelty

factor for the phone Excellent branding and marketing Lots of apps and feature

Weakness
Very expensive

Comes without Expandable memory

Battery is Fixed Expensive accessories Lacks features e.g.- Bluetooth transfer FM radio Comes only in one form factor

 Opportunity
o Huge untapped market o More innovation, features and models o Growing demand for Smart-phones.

Threats
o Samsung o Mobile manufacturers using Android OS o Lack of choice for consumers o Threat from cheaper substitutes

PEST ANALYSIS

Political Situation
Taxation is something that governments put and Apple

should 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

Economical Situation
Economical growth world wide 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 an 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.

Market Opportunity
Increasing demand in the market and expansion to a

new target segment

Upgradeable Softwares by which new exciting features

can be brought in the phone

Partnerships with many powerful global mobile phone

companies

Market Issues or Threats

Increased competition from Microsoft, RIM, Palm,

Nokia & Samsung in the market

Downward pricing pressure as iPhone is marketed as a

high-end phone
Difficulty expanding into Asian market as it is better

known and already widely used in Asia

Marketing Objectives

Set an aggressive buy achievable objective for the first and second years of market : 1. First-year Objectives - 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 Objectives - are to achieve a 10 percent share based on sales. Extend on the Apple brand name. Extend on Apples image. Measure the awareness and response. Be the best in innovation and value creation Make Apple iPhone an object of desire.

Marketing Strategy
Target Market
Target audience - young men under the age of 35 Targeted people who did not own an iPod Businessmen and wealthy teenagers initial price of $499 Decreased price later to attract teenagers Cutting Into Android Market Share Differentiate the iPhone from other PDAs on the market.

Positioning
For the individual who needs to be entertained, communicate, do business, and manage their information while being mobile, the iPhone, a single multipurpose handheld device with Internet access and a widescreen audio/video player provides a collection of applications for every purpose. Using product differentiation, Apple positioned the iPhone as the versatile, convenient, value-added device for personal and professional use. Unlike other smart phones, the iPhone possesses an unmatched ultra-friendly and intuitive user interface.

iPhone Marketing Mix

Product
The iPhone combine three amazing products- a mobile

phone, wide screen iPod, and a breakthrough internet device

Full year warranty along with an optional three-year Apple

Care warranty
New products with new features like GPS, improved

camera, 4G etc

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 month before its worldwide release

Apple Stores will have the iPhone on display a full

Price

Price rebate by AT & T in 14 day period before sep 5, 2007

$100 credit on apple purchases

Promotion
Apple Stores had the iPhone on display a full month

before its worldwide release.

The packaging of the iPhone plays a significant role in the

purchasing pattern of the consumers.

A massive TV campaign was planned before launching the

iPhone featuring a soon to be legendary ad to be the talk of the country.

Advertising appeared on a regular basis to

maintain general public awareness