Apple iPhone Marketing Plan

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

• Group Assignment

Ahmadullah El-Hadidy Basem Gaber Hany
Abdulwahab Kareem Raslan Moustafa Hanafy Tamer
Yousif
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Apple iPhone Marketing Plan

• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Implementation
• Budget
• Control

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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 Wozniak. The Apple 1 was sold as a
motherboard (with CPU, RAM and basic textual
video chips) less than what is considered 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 successful over 100 million units
were sold within 6 years.
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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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 reveals 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 requirement as well as,
improving performance and stability rather than
introducing new features when releasing new
versions of any product.
Think Different
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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Executive Summery
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, 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.
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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Situational Analysis

• Political Situation
• Taxation is something that governments put and
  Apple should be 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.

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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 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)

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Situational Analysis

• 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.

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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.

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Situational Analysis

• Environmental Situation
• The global concern of the Global Warming issue
  other 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
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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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 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.
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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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

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 to
computer viruses.
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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

S/O Analysis
Opportunities Increasing demand and expansion to
a new target segment 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.
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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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

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 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.
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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

W/T Analysis

• Threats
• Increased competition Smart phones are easier
  to make now 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.

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

W/T Analysis

• Threats
• Competition (Palm) - Palm has the longest history
  in 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.

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Marketing Objectives

• Set an aggressive buy achievable objective for
  the first and second years of market
• 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.
• 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.

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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 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, ATT,
  Verizon, Sprint and Cellular One
• large enterprise software firms where information
  is critical to the end user.

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Marketing Objectives

• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

• Target Market (cont.)
• 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.
• 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..

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• Executive Summary
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Marketing Mix Strategy

• Product
• Full year warranty along with an optional
  three-year Apple Care warranty
• Same taste as all other Apple products
• 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)

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• Executive Summary
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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 ensure we establish
  market dominance in as short of time as possible

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• Executive Summary
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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 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

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• Executive Summary
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Marketing Mix Strategy

• Promotion
• Integrate Apple message of revolutionary
  communications and audio/visual experience
  together in all media advertisements
• Differentiate the iPhone against others is the
  touch screen functionality
• Emphasize Apple brand prominently and associate
  the iPhone with the iPods 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

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• Executive Summary
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Marketing Research

• Four age groups will be targeted 15-20 years,
  20-25 years, 25-45 years, and 45 years and up
• High School and College aged people will
  demonstrate social 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

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• Executive Summary
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Marketing Research

• This research will be done through surveys (via
  email campaign through portals such as, iTunes
  and other on-line application developed for the
  iPhone) and interviews (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
  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".

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• Executive Summary
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Marketing Research

• We will ask for feedback on iPhone features, and
  implement those changes most important to the end
  user in the next generation iPhone
• 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.

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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
• 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

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Implementation

• In case of slow sales
• Offer iPhone to customers who have purchased
  other Apple products 10 per phone six sigma
  quality 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

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• Executive Summary
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

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 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

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• Executive Summery
• Situational Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategy
• Marketing Research
• Implementation
• Budget
• Control

Control
To plan our strategy we will meet monthly with
the board of Apple, present our information, and
make a proposal for continued marketing efforts.
Before each meeting our team 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.