Marketing Asg BBM F1304 0057

8/12/2019 Marketing Asg BBM F1304 0057

1/11

Name Khizer Sikander

ID BBM-F1304-0057

SUBJECT Marketing

COURSE CODE BM 150

SUBMITTED TO Mr. Suren Dev
http://void%280%29/http://void%280%29/http://void%280%29/


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TABLE OF CONTENT

1. Executive Summery

2. Vision, Mission and Objectives

3. Product

4. Macro-Environment Analysis

5. SWOT Analysis

6. Marketing Objectives

7. Implementation

8. Budget

9. Control

10.References


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Executive Summery

The PastSteve 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 andbasic 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 programmers, 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 successfulover 100 million units were sold within 6 years.

The PresentJanuary 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 FutureApple 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.

Vision Statement

Apple ignited the personal computer revolution in the 1970s with the Apple II

and reinvented the personal computer in the 1980s with the Macintosh. Apple

is committed to bringing the beast personal computing experience to students,

educators, creative professional, and consumers around the world through its

innovative hardware, software, and Internet offerings.


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Mission Statement

Apple Computer is committed to protecting the environment, health and

safety of our employees, customers and the global communities where we

operate. We recognize that by integrating sound environmental, health andsafety management practices into all aspects of our business, we can offer

technologically innovative products and services while conserving and

enhancing resources for future generations. Apple strives for continuous

improvement in our environmental, health and safety management systems

and in the environmental quality of our products, processes and services.

Product

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.

Macro-Environment 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.

Economic Situation

Economic growth worldwide 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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Socio-Cultural Situation

Population growth leading to expansion of the sector needs for cell phones.

People depend more and more on mobile communication everywhere. There

is educational growth in the world. Culturesperception 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 phonelines 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.

Competition Situation

There are 19260 cell phone producer in the world, but there are more than 15big companies competing at the world level Market.


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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.

SWOT Analysis

STRENGTHS

InnovativeThe iPhone has an innovative touch screen. It also hasmany

functions of other mobile products all in one device. CompatibilityThe phone

will work with iTunes and with otherMac/Apple products and OS software tools

which means limitless potential for upgradeability. Ease-of-UseThe all-new

touch screen interface recognizes multi-finger gestures, just as the human hand

normally behaves.Brand awarenessApple is well known for cool essential

gadgets like the iPods along great technological innovations like the original

Macintosh.QualityScratch resistant screendurable and lightmetallic finish

- software suite resistance to computer viruses


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OPPORTUNITIES

Increasing demand and expansion to a new target segmentAs technology

advances and smart phones get cheaper Apple will attract consumers and get

iPod users to upgrade to iPhones. UpgradeableiPhone software allows newexciting features to bebrought in which take advantage of the touch screen

ability. Future versions will also be hardware upgradeable.PartnershipsApplecan collaborate with many powerful globalmobile phone companies to flood the

market with iPhones, which reduces costs in marketing and increases revenue

through long-term agreement deals.

WEAKNESSES

ImageThe Apple brand is not targeted towards business people anddoes nothave a reputation as being compatible with the corporate world. PriceApple

does not yet offer lower priced models for more costconscious consumers. User

InterfaceTouch screen interfaces suffer from the problem ofgorilla arm.

THREATS

Increased competitionSmart phones are easier to make now morethan ever.

More companies may enter the market, and competitors or even Apple

contractors can maneuver around patents to create similar devices. Downwardpricing pressureThe 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 marketThere is less hype andinterest

in Asia since smart phones are better known and already widely used.

Competition (Palm) - Palm has the longest history in PDA marketand 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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Marketing Objectives

Target Market

Differentiate the iPhone from other PDAs on the market. Primary customertargets 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.Secondarybusiness target is mid-to mid-size corporations that want to help managers and

employees stay in communication or access critical data on the go. Marketsegment 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

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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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.

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.

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 thecountry. Advertising will be appearing on a regular basis to maintain general

public awareness.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.

ImplementationCompensation 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


10/11

about any possible technical problems Apple Customer Service Bar and a

customer service phone number stored in the phone book. In case of slow sales

Apple offers 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. They develop deep

relationships with two very different segments: those who have it and those who

aspire.

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 $250equals 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

The goal of this marketing plan is to outline the strategies, tactics, and programs

that will make the sales goals outlined in Apples business plan a reality in the

upcoming years. The current actions should be continued with an addition to the

qualitative and quantitative data collected in future should be referred to in order

to make changes to the product. The CRM should be maintained.


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References

1. Andrew Roberts (October 15, 2013). "Burberry Designer Bailey to

Become CEO as Ahrendts Goes to Apple". Bloomberg.

2. Helft, Miguel (March 2, 2011)."Jobs Returns to Introduce a New

iPad".The New York Times.

3. Kahney, Leander. Rebuilding an Apple From the Past, (Wired),

(November 19, 2002). Chicago, USA.

4. "World's Most Admired Companies".Fortune.(March 2010)

5. "Apple's Jobs creation".Apple.com.(November 30, 2013).

6. Coventry, Joshua."Apple III Chaos: What Happened When Apple Tried

to Enter the Business Market",Low End Mac. (September 1, 2006).

7. "Apple's '1984' Super Bowl commercial still stands as watershed

event".USA Today. (January 28, 2004)

8. "Apple co-founder tells his side of the story".Sydney Morning Herald.

(September 28, 2006).

9.

"Bloomberg BusinessWeek Profile of Apple Sales International

Bloomberg Business Week.

10. Seifert, Dan (June 10, 2013)."Apple announces iOS 7, 'biggest change'

since the introduction of the iPhone, coming this fall".The Verge.Vex

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Marketing Asg BBM F1304 0057