Marketing Research Final Presentation

iPhoneAlex Negle

November 31st 2011

Table of Contents

• Overview:– Executive Summary– Purpose– Methods– Findings• Secondary Research• Primary Research

– Qualitative– Quantitative

– Conclusion

Executive Summary

• The iPhone had 80% unaided awareness in the online survey and 90% in the paper survey

• Ease of use was the most important factor when it came to smart phones

• The iPhone’s weakest quality was affordability

Purpose

• Information found while doing this research is used for Marketing Research (BUS 1535)

• The Information was collected to study consumers attitudes towards the iPhone

Methodology

Type of Research• Secondary • Qualitative• Quantitative

Method Used• Online Databases• Personal Interviews,

(5) Focus Group• Online and Paper

Surveys (10)

Findings: Secondary Research

• Headquarters– Cupertino, California

• Top Competitors:– HTC– Research in Motion– Motorola

5 Year Sales TrendsRevenue 2006 2007 2008 2009 2010Industry (mm)

$169,082 181,937 189,474 191,501 196,044

Apple (mm) $19,315 24,578 37,491 42,905 65,225iPhone (mm)

$6,742 13,033 25,179

HTC (mm) $104,816 118,579 152,558 144,880 275,046Android (mm)

$64,694

RIM (mm) $6,009 11,065 14,953Motorola (mm)

$31,810 23,373 17,099 11,050 11,460

Sources: investor.apple.com/financialsIbisworld.com (NAICS Code: 51332 wireless telecommunications carriers in the USHTC.comRIM.comMotorola.com

5 Year Sales Trends

2006 2007 2008 2009 20100

50,000

100,000

150,000

200,000

250,000

300,000

IndustryAppleHTCResearch In MotionMotorola

Sources: investor.apple.com/financialsIbisworld.com (NAICS Code: 51332 wireless telecommunications carriers in the USHTC.comRIM.comMotorola.com

Mean and Median

Apple HTC RIM Motorola Industry0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

37,491

152,558

11,065 17,099

189,474

37,902

158,575

10,67518,958

151,825

MedianMean

Market Share

25%

33%

29%

13%

Market Share

AppleHTCRIMOther

www.ibisworld .com

Qualitative Data: Personal Interview (unaided)

• 4 – iPhone• 1 - Droid

Qualitative Data: Personal Interview

• Summary

– Positives: • Simplicity

– “…because of its simplicty and how its better than every other smart phone.”• Ease of Use

– “its got everything I do electronically in one place.”• Stylish

– “…the difference between the Droid and the iPhone is the quality of the product.”

– Negatives:• High Price

– “Its pretty expensive, I just can’t go out and get one right now.”• High Contract Price

Qualitative Data: Personal Interview

• Reasons to buy the iPhone– Simplicity– Quality of Product– Versatility

• Reasons to not buy the iPhone– Do not already have a smart phone– Price

• What can Apple do to better the product?– Make it more affordable

Qualitative Data: Focus Group• Summary

– Positives:• Easy of use• Celebrity Appeal• Brand Image• Geared for fun

– Negatives:• No 3G hotspots• No BBM• Boring shape• Susceptible to breaking

Qualitative Data: Focus Group

• What would you do to change the product?– Slide out Querty– Fear of breaking screen– Differentiate from Ipod Touch and iPad• “If you have an iPhone why would you buy an iPad, or if

you had an iPad why would you buy an iPhone…”• “I feel like they keep making the same products.”

Quantitative: Traditional and Online Surveys

• Sample Size Estimate– 2010 US population: 220,958,853

• Ages 18 –• Male and Female

– 95% Confidence Interval– +/- 5% Error

• Sample Size Needed: 384

www.census.govCreative Research Systems

Unaided Awareness

Apple Droid Blackberry Samsung0%

10%20%30%40%50%60%70%80%90%

100%90%

70%

50%

5%

Awareness

Awareness

Aided Awareness

iPhone Droid Blackberry92%

93%

94%

95%

96%

97%

98%

99%

100%100% 100%

95%

Percentage

Percentage

Have a Smart Phone

85%

15%

Currently Own a Smart Phone

YesNo

Psychographics

Artistic

Conservative

Use Cell Phones Often

Use Social Media Often

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

3

2.9

4.1

3.7

Average

Average

Constant Sum (Averages)

Constant Sum0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

15.5

32.5

16.5

23

11.5

AttractiveAffordableStylishEase of UseImage

iPhone Perceptions(1 being the highest, 5 being the lowest)

Prefered

Superior

Reasonably Priced

Easier

0 0.5 1 1.5 2 2.5 3 3.5

2.3

3.19

2.7

2.49

Average

Average

Rank Order (1 being the highest, 5 being the lowest)

Blackb

erry Curve

Droid Incre

dible

iPhone 4

Motorola Q

Samsu

ng Gala

xy0123456

3.55

2.36

1.27

4.82

3

Average

Average

The iPhone was the most preferred on paper with mean being 2.3

Average Expected Prices

• iPhone 4– $293.3

• iPhone 3G– $135.1

Brand Differentiator

Price

Ease of Use

Stylish

Fun

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

2.74

3.89

4.18

4.5

3.14

3.53

3.69

4.2

3.5

3.1

3.25

3

BlackberryDroidiPhone

Demographics: Gender & Age

Male Female0

2

4

6

8

10

12

14

16

1816

3

Responses

Responses

19 20 210

1

2

3

4

5

6

7

8

1

2

7

Age

Age

Majors Surveyed

• 2 Education Majors• 4 Business Majors• 1 Geology Major• 2 Engineering Majors• 1 Communications Major

Demographics: Income

0.21

0.31

0.41

Income

Under $15,000$15,000 - $24,999$25,000 - $34,999$50,000 - $74,999$75,000 - $99,999

Product Positioning Map

Conclusions and Implications

• The iPhone has outstanding brand awareness• General attitude is that its too expensive

• Believed price - $293• Actual price - $200

• Ranked significantly Higher in all other category motivators

Appendix

Interview 1 Interview 2 Interview 3

Interview 4 Interview 5 Focus Group

Appendix

• Online Survey– https

://new.qualtrics.com/ControlPanel/?ClientAction=ChangePage&s=UserSurveysSection&ss=&sss

• Smart Phone Survey Results• IRB Consent Form• Online Survey Report

Questions?