Good Sample Slide -iPhone in India-1


2/17

Apple wants to increase the market share in

short term Wharton Prof. Peter Faders hypothesis

Apple to skim the market*

Small loyal customer base in India Full-fledged marketing once a predominant

customer base is built

*http://www.hinduonnet.com/businessline/catalyst/2001/02/08/stories/1908r05a.htm2/17


3/17

India - launch on Aug 18 08 at midnight

2 variants 8GB,16GB for Rs.30500, Rs.36000

Price in US: USD 199, USD 299 + network chargesUSD 99 p.a for 24 months = USD 399 and USD 499

Authorized sellers in India:Airtel, Vodafone, Reliance

Airtel/Vodafone sell at prices set by Apple Reliance iStore (17 stores in 9 Cities) exclusively for

Apple products

3/17


4/17

Multitasking

iBooks

iPod 3MP autofocus camera

Safari for browsing

Maps and Compass App-stores for 100s of 1000s of applications

iTunes

4/17


5/17

Reasons for not owning the iPhone

Highest votes to Pricing Factor

Second voted Not sure about iPhone features

Availability constraint

5/17

46%

25%

17%

8%

2%

price

not sure about product

availability

I dont need

no keypad


6/17

8%

25%

60%

8%

Frequency of mobile change

(15K+)

< year

-2 year

> 2 years

NA

6/17

28%

59%

3%

Income Smart phone users

45000

9%

4%

34%

Age group - Smart phone users

5-22

23-35

>35


7/17

An average age of 15-35 years

Approximate income of Rs.35000

Wants an iPhone for style, social statement People with phone

Priced above Rs.25,000 (or)

Price ~ Rs.15,000 and change it within 2 years Apple customers identify themselves as

young, innovative and successful

First time users of Apple products

7/17


8/17

54%

30%

6%

Did you consider an iPhone while buying?

Yes, but didn't buy

No

Wasn't aware

8/17


9/17

Frequency of target customers visiting

Barista per month

18%

5 %

15%

10%

Less than 3

Between 3 to 8

More than 8

NA

9/17


10/17

Total Barista stores in the country 206*

Average customers per day 400 800

*http://www.barista.co.in/users/storelocatorallstate.aspx10/17

0

5

10

15

20

25

30

Mumbai Delhi Bangalore Hyderabad Kolkatta Chennai


11/17

Age group of customers in Barista7%

13%

41%

18%

21%

35

11/17


12/17

Customers of age group of 15-35 = 72%

0.72 * 600 = 432

Repeat customers = 70%, unique = 30% Total customers

(0.3 * 432) + (0.7 * 432)/4.59 = 195

4 stores will have 195 * 4 = 780 uniquepotential customers a day

4 major metros will have 780 * 4 = 3120

12/17


13/17

Per month targeted unique potential

customers = 30 * 3120 ~ 93600

Cost is Rs.2 lakh/store/month, equal toRs.34.18/potential target

Reasons

Sales of 20,000 till April09 from launch, anaverage of 2,500 per month

Prelaunch registrations for Airtel & Vodafone were2,09,000 each*

*http://www.hinduonnet.com/businessline/catalyst/2001/02/08/stories/1908r05a.htm13/17


14/17

25% of customers meant not sure aboutthe product

Kiosk set-up in Baristas to provide trials Setup at opening time, wound up at closing

time Demo pieces present at the kiosks for trying

the product Campaign run for two month Sales personnel from iStore Lucky draw coupons to visit iStore

14/17


15/17

Delhi Airport 1.91M passengers/month

Mumbai Airport 2.15M passengers/month

Cost of ad/month in IGI Delhi ~ Rs.15L* 90% belong to SEC A => 57,300 SEC A

potential customers

75% of them see billboards=> 42,975 SEC A

potential customers alone/day

71% spend 1 hr or more at the airport

* http://economictimes.indiatimes.com/news/news-by-industry/services/advertising/Airport-ad-rates-touch-the-sky/articleshow/4266118.cms

15/17


16/17

Going the iPod way base version with

upgradable features

16/17

54%38%

8%

Will you buy if more pricing options available?

yes

no

will never buy


17/17

Documents

Good Sample Slide -iPhone in India-1