iRing Marketing Plan

8/8/2019 iRing Marketing Plan

1/18

- 1 -

TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY 2

2.0 COMPANY DESCRIPTION

2.1 Vision Statement

2.2 Mission Statement

3

4

4

3.0 PRODUCT DESCRIPTION 5

4.0 SITUATION ANALYSIS

4.1 Industry Analysis

4.2 SWOT Analysis

4.2.1 Strength

4.2.2 Weakness

4.2.3 Opportunity

4.2.4 Threat

4.3 Competitors Environment

9

9

12

12

14

14

15

16

5.0 MARKETING OBJECTIVE 17

6.0 TARGET MARKET

6.1 Segment Identification

6.2 Segment Needs

6.3 Segment Trends

6.4 Size of Segment (Population)

18

18

18

18

187.0 POSITIONING STRATEGY 19

8.0 MARKETING STRATEGY

8.1 Product Strategy

8.2 Price Strategy

8.3 Promotion Strategy

8.4 Place Strategy

21

21

22

24

26


2/18

EXECUTIVE SUMMARY

The marketing plan includes the fundamental for the introduction of a unique and ingenious

product known as iRing by Apple Inc. The analysis of internal and external of the organisation,

competitive environment enables the team to propose dynamic and constructive strategies for

iRing to fulfil the companys objectives and strategic mission. The iRing will be introduced as

another innovation of Apple and marketed as mp3 player in portal music player (PMP) sector.

This also will enable Apple Inc to penetrate and dominate the PMP sector and emerge as leader

in innovation of unique products as well as successfully gain market share. The marketing

strategies are outlined to gain market segment size of 100 million (Approx) people of 15-60

years with forecasted sales growth average at 5% (Approx) over next 3. The accomplishment

and success of iRing will be measured with the capture of market share in PMP sector, as well as

penetrating geo-clustering targeted market in across the global.

- 2 -


3/18

1.0 COMPANY DESCRIPTION

Apple Inc. was formed by Steve Jobs and Steve Wojniak in April 1976 and incorporated on3rd January 1977. The organisations headquarter is situated at Cupertino, California. The

current CEO is Steve Jobs. Apple Inc. mainly involved in industry related to computer software,

hardware, and consumer electronics. The organisation mainly design, manufacture and market

product that varies from personal computer, portable digital music players, mobile

communication devices and various related software, services, peripherals, and networking

solutions. The main distribution channels are its online stores, retails stores, direct sales, and

others. Moreover, the customers range from consumers, corporations, small and medium

business, education, enterprise, governments and creative customers. The organisation currently

has 35,100 employees and growth of 62.5%. According to fiscal year ending report of September

2008, Apple Inc. had generated the following revenue and shows growth of 35.5% for one year

growth and about 38.3% of income growth:-

TABLE : Financial Data of Apple Inc. for 2008

- 3 -


4/18

1.1Vision Statement

1.2Mission Statement

- 4 -

iRing product will enable Apple Inc to establish as market leader in

portal music sector.

Apple Inc can be a revolutionary organisation in providing digital

lifestyle for customers.

Apple Inc is committed to provide a futuristic and empowered music

listening experience to the customer through iRing.

To capture share market of portal music player more than 55% and

dominate the market.


5/18

2.0 PRODUCT DESCRIPTION

iRing will be future version of iPod product and will be positioned as the bracelet iPod

that available in the market. It will be equipped with 2GB capacity and different sizes to

accommodate customers wrist. The product will be able to provide exceptional music

listening experience and have multifunction as mp3 player as well as hand accessory

(bangle). The product also marketed as funky and matchless alternative device for portal

music device and packaged as unisex outlook that be suitable to be worn by men and women.

The product is made of aluminium.

- 5 -


6/18

3.0 SITUATION ANALYSIS

3.1INDUSTRY ANALYSIS

3.1.1 Usage

Apple Inc. has sold 22.1 million iPods during 2008 holiday season

compared to 4580 unit in 2005. The sale of 21.0 million units in Q1 of 2007 also

shows 50% higher than Q1 of 2006. This shows steady growth of iPod since

2005. Moreover, it increased about 383% from 2005. This projects strong value

of brand position in the customers. Therefore, we strongly believe that iRing can

penetrate the usage trend since this is a variant of iPod.

Chart : iPod Unit Sales

- 6 -


7/18

3.1.2 Trends

In 1960, 8-track player was introduced and followed by personal cassette

player in 1979 and later with walkman, walk disc player, until MP3 player and

MP4 player. The taste and trend of portable music players change tremendously

among customers. The factors that influence the evolution in the trends are:-

a. Customer preference to better sound quality

b. The sizes of iPod and mp3 players are more compact and easy to

carry.

c. The storage capacity is bigger and customers can opt for different

sizes compared to other devices.

d. The introduction of storage format like mp3, acc, and wma enable to

customer to store more music compared to earlier version.

The market trend is expected to show prolonged growth and future

products of portable players that have sophisticated design, features and benefits

like iRing can gain customer interest as well as market demand

3.1.3 Profitability & Future

Growth Potential

Apple had gain revenue of

48% from iPod Business Division

in first fiscal of 2007, meanwhile

other music related products

contributed 9% of total profit. We

estimated that growth of average

of 4% in sales based on

forecasting projection by year

2012 and expansion of 18.3% in

population by 2015.

- 7 -


8/18

SWOT ANALYSIS

3.1.4 Strength

3.1.4.1 Brand Position

Apple Inc. is one of the most progressive and established IT brand

in the IT industry. The organisation had managed to create strong brand

value position among its customers. Apple products often associated with

concept offun, energetic, sophisticated, and quality and it generated loyal

and enthusiastic customers that support Apple brands. The supremacy

loyalty of customers shows that Apple managed to gain customers as well

as sustain them. The sales of 22.1 million iPod show the customers

consumption of Apple products. The customers subscribes to services and

products that offered by Apple and willing to come back for more Apple

- 8 -


9/18

products lines. This can create opportunities for Apple to market iRing

more proficiently.

3.1.4.2 Financial Strength

Apple Inc have stable and strong financial factor in the IT

industry. The organisation managed to generate net income of USD

4834.0 million in 2008 and USD 2,523,000 of Cash flow. This shows that

the organisation have capabilities to invest sufficient amount to design,

manufacture, and market iRing in the targeted market.

3.1.4.3 Innovation and Improvement

Strengths of Apple are innovation and the capability of

improving its product in diminutive period. This can be seen in the 6

times upgrading of classic iPod models since been introduced. There are 6

generation of Mini/Nano model since 2004. This will enable the

organisation to develop iRing and improvised in short time and capture

market demand whenever the opportunities rise.

3.1.5 Weakness

3.1.5.1 Price

The prices of apple products are often expensive and only can be

afforded by certain group. Most of its products are ranges from USD 200

onwards for its Mp3 and Mp4 compared to other brands like Samsung,

Creative. Therefore, many customers from lower income group could

not afford Apple products and opt for other brands.

3.1.5.2 Faulty products

Some of Apple products also face problems such as iPod Nano

faces faulty screen whereby the screen can easily break under impact, and

- 9 -


10/18

early iPods faced problem with faulty batteries. This had force the

company to replace all the faulty items and had incurred more cost.

3.1.6 Opportunity

Better quality control implementation

The Apple Inc also can increase its quality control sector to be able

to provide more enhanced and quality product to its customers.

Introduction of new products

Apple had been massive designing, and manufacturing new

products for its customers compared to the competitors like Sony,

Samsung. Therefore, Apple can penetrate PMP field with new products

like iRing efficiently.

Brand awareness

The Apple has developed strong brand awareness among

customers and in the international market. Therefore, Apple Inc can create

market opportunity for iRing more efficiently because the customers are

more perceptive and easily accept Apple products compared to other

brands due to brand awareness. Moreover, the recognition of Apple brand

in the international arena also can generate international market

opportunities for iRing .

3.1.7 Threat

Strong Competition

Apple Inc also faced competition in todays global oligopoly

market since the industry is been influenced by several major competitors

such as Sony, Samsung, HP and others.

- 10 -


11/18

Financial Crisis

The inconsistency of global financial stability and world stock

market can induce crisis and problems for Apple Inc during introducing

new products to the market. The financial crisis can force customers to

retreat and not support any new products due to personal financial

problems.

Political Unstable

One of major crisis that the organisation will face during launching

iRing is political instability in some countries in the world. This can cause

by few factors such as internal political power struggle, transition of

ruling power and others. These dilemmas can affect launchingof iRing

in few countries.

3.2 COMPETITORS ENVIROMENT

Apple Inc.s main competitors in IT industry are Sony, Samsung, IBM and HP.

However, top competitors that have capabilities and financial strength to produce

similar products with Apple are Sony and Blackberry especially for products like

MP3 and MP4. Sony had been veteran in portal music device circle and later enteredby Apple. Apple managed to capture 50% of marketing share since 2005 but Sony

also progressively gain market share of 20% in 2006 and 30% in 2007. It shows that

Sony has capacity and resources to design, manufacture product that have similarities

with iRing.

- 11 -


12/18

4.0 MARKETING OBJECTIVE

The marketing objectives of iRing for Apple Inc as follows:-

To establish as market leader in creating and manufacturing innovative

products in IT industry

To enable Apple Inc to satisfy, fulfil and equipped the consumers

personality and lifestyle needs as well to increase Apple popularity as an

icon in digital lifestyle product

To establish as market leader in portal music player sector by increasing

market share

To enable Apple Inc to monopoly the portal music device sector share .

- 12 -


13/18

5.0 TARGET MARKET

5.1 Segment Identification

iRing is a version of MP3 player that can be worn to be ln finger launched within

the portable music player (PMP) sector .

5.2 Segment Needs

iRing will be a device that accommodate social needs of customer such as it will

be perceived as one of tools of digital lifestyle, fun and cool device and sense of

belonging within peer group, brand that need to be owned, cultural lifestyle and

others needs. It also cater personal needs such as for customers that want toexperience music without tangled with wires when they performing the daily

activities, luxurious activities such as exercise, jogging, surfing and other activities.

5.3 Segment Trends

The current trend shows transcend from wired and bulky PMP to light, easy,

compact in size, more capacity, less wired or wireless and multifunction players like

MP3 players. The trends also change towards wireless player, brand conscious and

digital lifestyle. Therefore, market opportunity for iRing is far vaster due to trend

transformations.

5.4 Size of Segment (Population)

According to statistics report of CIA, the size of segment 15-64 years old consists

of 100million approx male and female.

- 13 -


14/18

6.0 POSITIONING STRATEGY

Apple has been enable to create and revolutionised the portal music player sector by adapting

to visceral design, and manufacture creative, innovative, and cool products such as iPods.Moreover, iPod managed to became measurement against any portal music players since its

penetration into the market. Therefore, iRing player will be adapting strategy by being the

ultimate must have mp3 playerin the perception of customers.

Apple will be developing unique selling proposition (USP) for iRing by differencing iRing

from other mp3 player through its designs, features, and benefits that shown below:-

Even though iRing main function is mp3 player, it also will be marketed as hand accessory.

Apple hasstrong brand personality (image differentiation) among its customers and worldwide

can enable them to market iRing to the targeted market more efficiently . The features, benefits,

and unique design of iRing can aid the company to create impression of must have mp3 player in

the cognitive mind of customers. The success of iPod in 2000 as shown below is an example of

people acceptance of Apple products.

- 14 -

Benefits positioning: listen to music without tangles of wires and

wear it as accessory

Features: include multi-track touchpad, wireless ear headphones,

customised according to finger size, better music quality, and download music

via Bluetooth.

Product Positioning: the shape of ring enable customer to wear in

finger, portray cool look, personalised mp3 player (other people might not notice

the player) and the first mp3 player in the world designed as ring.

User Positioning: iRing as the most suitable and coolest trend for


15/18

7.0 MARKETING STRATEGY

7.1Product Strategy

7.1.1 The core

iRing is mp3 player that worn in the finger equipped with wireless ear

headphones to listen to music.

7.1.2 The actual product

The design of mp3 player is unique and innovative by Apple and be

worn . It also can function as hand accessory. As for banding, Apple logo

is embedded on the ring and the colour for iRing is silver to cater for

unisex customer as well as to establish as stylish Ring.

The trade name is iRing , an Apple product. The brand personality

adapted for this product consist of stylish, cool, trendy, originality and

think different. The iRing also equipped with 1 year warranty and

customer service.

7.1.3 The unique design of iRing will enhance its differentiation among

existing portal music players and generate advantages to the product.

Moreover, Apple is known to produce award winning innovative products

.

7.1.4 The other factors that create differentiation for iRing is the Apple

managed to create emotional benefits for its users. Therefore, iRing also

can provide emotional benefit to customers in form of maintaining

simplicity, stylish design, easy to use and constructive customer service.

7.1.5 The iRing also considered green product since the main component tomanufacture iRing is aluminium. Aluminium is one of the most recyclable

materials.

7.1.6 The iRing product has another distinguish advantage that is the brand

name of Apple. Apple had become one of the most powerful icons in the

IT industry due to its visceral design, unique products, quality and

- 15 -


16/18

features. Therefore, branding Apple logo on iRing will increase its value

and perception among the customers.

7.2Price Strategy

The skimming price strategy will be adapted to market iRing to the customers. The

price will be set at USD 399.00 at introduction stage and price will be reviewed at later

stage of product lifecycle.

The organisation also has advantages such there is no substitute or imitation

product like iRing that available currently on the market. However, potential substitutes

produced by competitors is possible, therefore Apple have to establish as market leader

for iRing. This can create market demand for iRing since it has unique characteristics.

One of the examples of successful pricing strategy can be seen in sales of iPod in the

market .

- 16 -


17/18

Promotion Strategy

7.2.1 Objectives To create strong awareness about iRing throughout the target

customers (14 to 29years old) as well as parents.

To penetrate and increase market shares in portal music player sector

and override competitors

One of the promotional important outputs is to portray iRing as the futuristic

mp3 player and the coolest product for everyone.

The media selection for promoting iRing is varies for the selected customers

group. However, one of the most powerful media is Internet media. Online store also

can boost the sales of iRing.

Moreover, Apple also will be using electronic media as advertisement arena to

launch iRing to the world. Apple is knows for creating innovative, and unique

advertisements to promote their products such as in using slogan Think Different,

Therefore, unique advertisement such as constant advertisement about iRing at prime

time TV shows, radio shows can create brand awareness among the customers.

Other than that, Apple also will be using idols and international stars to

promote iRing. Apple is planning using teen idol Hannah Montana as teen ambassador

to promote iRing to teenagers group. Furthermore, in order to penetrate the current trend

and culture, iRing will be attached to celebrities such as Beyonce,Robert pattinson.

The product will be worn by these stars in the video clips and photography session for

magazines and events. The personalities from sport arena such as Cristiano Ronaldo,

and David Beckham also will be recruited to promote iRing. The celebrities spottedwith iRing can create brand awareness among customer more massively. Apple will be

running advertisement on iRing during important events like World Cups,Football

League etc. This is to target sport oriented customers.

Apple also will sponsor prime time TV shows. The advertisement of iRing will

be aired during the Showtime to capture young adults attention on iRing.

- 17 -


18/18

7.3 Place Strategy

Other than that, the company will be choosing distribution channels such as

a. online stores

b. retail stores

c. direct sales

One of the most established distribution channels is Apple retails stores. Therefore,

iRing will be launched and marketed at all Apple retails stores across the country for

the success of iRing. Apple managed to gain a high amount in 2008 which ensure that

retail store is one of the most successful distribution channels. Moreover, online

stores also another important distribution channel that can aid the sales of iRing and

will be able to penetrate Geo-Clusteringsegment more proficiently.

- 18 -

Documents

iRing Marketing Plan