Apple iPhone Marketing Plan

C.Guru karthick
Suraj Shah
Tanuja
Shradha
 Apple iPhone Marketing Plan
• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Implementation
• Budget
• Control
Executive Summery •
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Executive Summery
Situational Analysis
SWOT Analysis
• Marketing Objectives
Since its foundation in 1976, Apple has grown from a small • Marketing Strategy
business selling computers into one of the most successful and • Marketing Research
• Implementation
valuable brands in the entire world. Consumers everywhere • Budget
perceive the brand as being one of the very best because of • Control
their groundbreaking product lines, their successful marketing
programs, and their ability to differentiate themselves among
other competing brands. These elements and attributes are the
core aspects that make up Apple’s brand equity.
Apple has always been known for releasing innovative, user-
friendly products that have become extremely popular in the
market. They are a dominant force in the market for consumer
electronics, and their merchandise is in extremely high
demand. Secondly, their very successful marketing and
distribution strategies are able create consumer perceptions
that make Apple’s brand a highly reputable icon.
Executive Summery •
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Executive Summery
Situational Analysis
SWOT Analysis
• Marketing Objectives
• Marketing Strategy
The iPhone targets consumers who need to store • Marketing Research
information and communicate or people who want • Implementation
entertainment on the go. Apples target segments • Budget
• Control
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.
Apple iPhone Marketing Plan
Political
situation

Economical
Sales situation
situation

Situation analysis
Environmental Social-cultural
situation situation

Competition Technological
situation situation
 • Executive Summery

Situational Analysis •
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Situational Analysis
SWOT Analysis
Marketing Objectives
• Marketing Strategy
Political Situation •
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Marketing Research
Implementation
• Taxation is something that governments put and Apple should be • Budget
study this as country by country case to anticipate profitability, • Control
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.
 • Executive Summery
• Situational Analysis
Situational Analysis •
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SWOT Analysis
Marketing Objectives
Marketing Strategy
Socio-Cultural Situation •
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Marketing Research
Implementation
• Population growth leading to expansion of the sector needs for • Budget
cell phones. • Control
• People depend more an more on mobile communication
everywhere.
• There is educational growth in the world.
• Culture’s 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)
 •
Situational Analysis •
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Executive Summery
Situational Analysis
SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Technological Situation •
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Marketing Research
Implementation
• Level of technology in the world is increasing. • Budget
• Internet level of awareness & usage for individuals & • Control
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.
 Situational Analysis •
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Executive Summery
Situational Analysis
• SWOT Analysis
• Marketing Objectives
Competition Situation • Marketing Strategy
• There are 19260 cell phone producer in the world, but • Marketing Research
• Implementation
there are more than 15 big companies competing at the • Budget
world level Market. • Control
Situational Analysis •
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Executive Summery
Situational Analysis
SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
Environmental Situation • Implementation
• Budget
• The global concern of the Global Warming issue & other
• Control
pollution effects concerning the packaging material and
radiation of the cell phones
• The demand of the international environmental approvals
is a must (if there is any)

Sales Situation
Cell phones industries are one of the
most profitable industries everywhere
and the Market is increasing
 • Executive Summery
• Situational Analysis

S/O Analysis •
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SWOT Analysis
Marketing Objectives
Marketing Strategy
Strengths •
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Marketing Research
Implementation
Innovative – The iPhone has an innovative touch screen. It •
•
Budget
Control
also has many functions of other mobile products all in one
device

Compatibility –The phone will work with iTunes and with

other Mac/Apple products and OS software tools which means
limitless potential for upgradeability.

Ease-of-Use – The all-new touch screen interface recognizes

multi finger gestures, just as the human hand normally
behaves.
 • Executive Summery

S/O Analysis •
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Situational Analysis
SWOT Analysis
Marketing Objectives
• Marketing Strategy
Strengths •
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Marketing Research
Implementation
Brand awareness – Apple is well known for cool essential • Budget
• Control
gadgets like the iPods along great technological
innovations like the original Macintosh.
 • Executive Summery

S/O Analysis •
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Situational Analysis
SWOT Analysis
Marketing Objectives
• Marketing Strategy
Strengths •
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Marketing Research
Implementation
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Price – iPhone would be sold at a reasonable price for •
Budget
Control
its value.

Quality – Scratch resistant screen – durable and light

metallic finish - software suite resistance to computer
viruses.
 • Executive Summery

S/O Analysis •
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Situational Analysis
SWOT Analysis
Marketing Objectives
• Marketing Strategy
Opportunities •
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Marketing Research
Implementation
Increasing demand and expansion to a new target segment •
•
Budget
Control
– As technology advances and smart phones get cheaper
Apple will attract consumers and get iPod users to
upgrade to iPhones.

Upgradeable – iPhone software allows new exciting

features to be brought in which take advantage of the
touch screen ability. Future versions will also be
hardware upgradeable.
 • Executive Summery

S/O Analysis •
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Situational Analysis
SWOT Analysis
Marketing Objectives
• Marketing Strategy
Opportunities •
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Marketing Research
Implementation
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Partnerships – Apple can collaborate with many powerful •
Budget
Control
global mobile phone companies to flood the market with
iPhones, which reduces costs in marketing and increases
revenue through long-term agreement deals.
W/T Analysis •
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Executive Summery
Situational Analysis
SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Weaknesses •
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Marketing Research
Implementation
Image – The Apple brand is not targeted towards business people •
•
Budget
Control
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 long times as humans are not built
to hold their arms at waist or head-height, making small and precise motions. After 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-factors designers.
W/T Analysis •
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Executive Summery
Situational Analysis
SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Threats •
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Marketing Research
Implementation
Increased competition – Smart phones are easier to make now •
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Budget
Control
more than ever. More companies may enter the market, and
competitors or even Apple contractors can maneuver around
patents to create similar devices.

Downward pricing pressure – The iPhone is marketed as a

high-end phone, but phone prices are almost certainly going to
fall when other companies undercut the price of iPhones.

Difficulty expanding into Asian market – There is less hype

and interest in Asia since smart phones are better known and
already widely used.
 • Executive Summery

W/T Analysis •
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Situational Analysis
SWOT Analysis
Marketing Objectives
• Marketing Strategy
Threats •
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Marketing Research
Implementation
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Competition (Palm) - Palm has the longest history in •
Budget
Control
PDA market and has experience-developing software for
mobile devices. It is also a well-known brand for
businesspeople. Existing software is well established
and compatible with many products for this market.
The market is familiar with Palm products; significant
switching costs are involved in going to an iPhone. Palm
can add many similar capabilities to their products that
match the iPhone and expand to a wider market
through lower cost and higher-power products.
 Marketing Objectives •
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Executive Summery
Situational Analysis
• SWOT Analysis
• Set an aggressive buy achievable objective for the first • Marketing Objectives
and second years of market : • Marketing Strategy
• Marketing Research
1. First-year Objectives - We are aiming for a 2
• Implementation
percent share of the U.S and U.K. PDA/Phone • Budget
market through unit sales volume of 445,000. • Control
2. Second-year Objectives - are to achieve a 10
percent share based on sales.

• Extend on the Apple brand name and link to the

established meaningful positioning.

• Extend on Apples image of innovation, quality, and value.

• Measure the awareness and response in order to make

adjustments to the marketing campaigns as necessary.
Marketing Objectives •
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Executive Summery
Situational Analysis
SWOT Analysis
• Marketing Objectives
Target Market • Marketing Strategy
• Marketing Research
• Implementation
• Differentiate the iPhone from other PDA’s on the market.
• Budget
• Control
• Primary customer targets is the middle-upper income
professional to coordinate their busy schedules and
communicate with colleagues, friends and family.

• Secondary consumer targets are high school, college and

graduate students who need one portable multifunction
device.

• Primary business target is to partner with :

• large cell phone service providers, AT&T,
Verizon, Sprint and Cellular One
• large enterprise software firms where
information is critical to the end user.
Marketing Objectives •
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Executive Summery
Situational Analysis
• SWOT Analysis
Target Market (cont.) • Marketing Objectives
• Marketing Strategy
• Secondary business target is mid-to mid-size corporations • Marketing Research
• Implementation
that want to help managers and employees stay in • Budget
communication or access critical data on the go. • Control

• Market segment will consist of companies with $10-$50

million in annual sales.

Positioning
• Using product differentiation, positioning the iPhone as the
versatile, convenient, value-added device for personal and
professional use.

• Focus on the convenience 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 hip.

.
Marketing Mix Strategy •
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Executive Summary
Situational Analysis
• SWOT Analysis
Product • Marketing Objectives
•Full year warranty along with an optional three-year Apple • Marketing Strategy
• Marketing Research
Care warranty
• Implementation
• Budget
•Same taste as all other Apple products • Control

•Special edition version to be launched (including the 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 storage capacity, lower weight,
thinner device, long battery life, 4G wireless,
GPS and improved camera)
Marketing Mix Strategy •
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Executive Summary
Situational Analysis
• SWOT Analysis
Price •
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Marketing Objectives
Marketing Strategy
•Set the base model at a cheap price of $349 • Marketing Research
• Implementation
• Budget
•A more advanced model for $399 • Control

•Special limited edition Beatles iPhone for special prices

•Generally lower our prices to ensure we establish

market dominance in as short of time as possible
Marketing Mix Strategy •
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Executive Summary
Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Place •
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Marketing Research
Implementation
•Massive rollout worldwide at all reputable major retailers • Budget
• Control
•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

•Apple Stores will have the iPhone on display a full

month before its worldwide release
 Marketing Mix Strategy •
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Executive Summary
Situational Analysis
• SWOT Analysis
Promotion •
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Marketing Objectives
Marketing Strategy
•Integrate Apple message of revolutionary communications • Marketing Research
and audio/visual experience together in all media • Implementation
advertisements • Budget
• Control
•Differentiate the iPhone against others is the touch screen
functionality

•Emphasize Apple brand prominently and associate the

iPhone with the iPod’s groundbreaking lineage

•Original but tasteful advertisements 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 will be appearing on a regular basis to

maintain general public awareness
Marketing Research •
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Executive Summary
Situational Analysis
• SWOT Analysis
• Marketing Objectives
•Four age groups will be targeted: 15-20 years, 20-25 years, • Marketing Strategy
25-45 years, and 45 years and up • Marketing Research
• Implementation
• Budget
•High School and College aged people will demonstrate social • Control
uses

•The 25-45 years group will be used to determine business

application and social/personal use

•The 45 years and above will give us a plan to market to more

senior well-refined group
Marketing Research •
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Executive Summary
Situational Analysis
• SWOT Analysis
• Marketing Objectives
•This research will be done through surveys (via email • Marketing Strategy
• Marketing Research
campaign through portals such as, iTunes and other on-line • Implementation
application developed for the iPhone) and interviews (in • Budget
Apple stores) with the same age groups listed before • Control

•To bring the iPhone to the front of the business world it is

important to research different ways to 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 "business cool".
Marketing Research •
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Executive Summary
Situational Analysis
• SWOT Analysis
• Marketing Objectives
•We will ask for feedback on iPhone features, and implement • Marketing Strategy
• Marketing Research
those changes most important to the end user in the next • Implementation
generation iPhone • Budget
• Control
•We will allow users themselves to design their own ideal
iPhone on-line and use any useful ideas to further refine
future iPhone models

•We will continuously scour the Apple fan websites to

understand what the Mac faithful are saying, as they are our
best customers.
Implementation •
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Executive Summery
Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
Compensation system •
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Marketing Research
Implementation
•workers $5 incentive pay for every non reject phone • Budget
they produce • Control
•$10 per phone six sigma quality program
•each worker $5000 each year for best practice training
use control measures to closely monitor quality and
customer service satisfaction
consumers can contact the main headquarters about any
possible technical problems – by using Apple Customer
Service Bar and a customer service phone number
stored in the phone book
Implementation •
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Executive Summery
Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
In case of slow sales •
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Marketing Research
Implementation
•Offer iPhone to customers who have purchased other • Budget
Apple products $10 per phone six sigma quality • Control
program, which will lead to:

•demonstrate the product for consumers, it will

promote synergy and lure buyers.

•develop deep relationships with two very different

segments: those who have it and those who aspire
Budget •
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Executive Summary
Situational Analysis
• SWOT Analysis
• Marketing Objectives
•Our break-even analysis assumes wholesale revenue of $500 • Marketing Strategy
per unit variable cost of $250 per unit and est. fixed cost of • Marketing Research
$50 million. Based on these assumptions the break-even • Implementation
calculation is $50 million divided by $500 minus $250 equals • Budget
• Control
200,000 units sold.

•Break-even calculations indicate that Apple will become

profitable after the sales volume exceeds 200k. After the first
year Apple will make a profit 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 least 60

percent from this change; this will decrease the impact of fixed
costs and improve opportunities to increase our production
scale, which will further improve profits in the long run
Control •
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Executive Summery
Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
To plan our strategy we will meet monthly with the board of • Implementation
Apple, present our information, and make a proposal for • Budget
continued marketing efforts. Before each meeting our team • Control
will meet in private, with each person presenting their own
proposal based on the information they have learned. After the
initial proposals, we will vote on the best one or come to a
compromise. The final proposal sent before Apple is the result
of that meeting.
Apple iPhone Marketing Plan

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