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Mina Loutfalla
Marketing Plan Template Contents
Executive Summary
Company Profile
Market Segmentation & Targeting
Situation and Company Analysis
Ethics and Social Responsibility
Marketing Information and Research
Customer Decision-Making Profile
Positioning and Differentiation
Branding
Marketing Mix (4Ps)
Product Strategy
Pricing Strategy
Place: Distribution Strategy
Promotion: Integrated Marketing Communications Strategy
Budget
Action Plan
Risk Factors
Attributions
Executive Summary
Executive Summary
Apple Inc. is an information technology company with a wide range of products which include cell phones, computers, tablets, television products, and wearable devices. According to AL Jafari (2016), “Apple Inc. was established in 1976 as a computer software and hardware company, since then Apple has transitioned into the creation of other technological devices and has established a chain of retail stores to provide their customers with a better buying experience”. Apple products are sold through its retail stores, online sites, and third-party wholesaler and retailers.
Apple’s mission is committed to providing the best innovations and technologies in the world. The company is also committed to protecting the environment, to ensure the good health and safety of the company’s employees, customers, and the global communities where they are established (Capella, 2011). However, the company is dealing with image issues after attention was drawn to the unsafe working conditions in some of its factories in china (Chong, 2018). Therefore, this report highlights an important marketing plan that will help Apple resolve its management and marketing issues.
Company Description
Company Description
Apple Inc. is a multinational corporation that creates consumer electronics, personal computers, computer software, and commercial servers, and is a digital distributor of media content. Apple is the creator of the iPhone smartphone, iPad tablet computer, iPod portable media players, and Macintosh computer line. Founders Steve Jobs and Steve Wozniak created Apple Computer on April 1, 1976, and incorporated the company on January 3, 1977, in Cupertino, California.
Apple introduced the Macintosh thirty years ago with the promise to put the creative power of technology in everyone’s hands. It launched a generation of innovators who continue to change the world.
Target Segment
Target Segment
Segmentation in the context of Apple is the segregation of existing and potential customers according to some shared characteristics. Targeting is when Apple focuses its products on different segments where maximum profits can be generated.
Segmentation in the context of Apple is the segregation of existing and potential customers according to some shared characteristics. Targeting is when Apple focuses its products on different segments where maximum profits can be generated.
Segmentation based on demography-
Segmentation based on demography-
Age Group: Apple targets people in the age group starting from 5 years old to Adults.
Age Group: Apple targets people in the age group starting from 5 years old to Adults.
Male and Female: Female population in Singapore is attracted more to Apple products than the Male population which makes the female population their target population.
Male and Female: Female population in Singapore is attracted more to Apple products than the Male population which makes the female population their target population.
Income: Upper-class people with high incomes are targeted by Apple in Singapore.
Income: Upper-class people with high incomes are targeted by Apple in Singapore.
Psychographic Segmentation:
Psychographic Segmentation:
Lifestyle: People with a busy lifestyle like working individuals and people involved in businesses are target customers of Apple.
Lifestyle: People with a busy lifestyle like working individuals and people involved in businesses are target customers of Apple.
Eminent People like celebrities and political leaders with high social status contribute to the target market.
Eminent People like celebrities and political leaders with high social status contribute to the target market.
Behavior: Loyal Apple fans like to stick with their Apple products, and they hardly change their brands.
Behavior: Loyal Apple fans like to stick with their Apple products, and they hardly change their brands.
Competitive Advantage
Competitive Advantage
One of the reasons for its competitive advantage over others is its Brand equity. Apple is known for delivering the best quality products and services. It has maintained the trust levels among the customers for years. A brand is how people feel about the company and surely its fans have a lot of positive feelings about it. Apple does a great job of ensuring that its customers get the best experience, be it the way you shop in the stores, the way it handles customer support, and of course the way it feels to unbox a brand-new Apple device. Apple has always been innovative with its products that are a lot different from its rivals. Its customers eagerly await its new products and are ready to pay premium prices for them. Today, Apple is the world’s leading technology brand with a brand value of over $200 Billion.
One of the reasons for its competitive advantage over others is its Brand equity. Apple is known for delivering the best quality products and services. It has maintained the trust levels among the customers for years. A brand is how people feel about the company and surely its fans have a lot of positive feelings about it. Apple does a great job of ensuring that its customers get the best experience, be it the way you shop in the stores, the way it handles customer support, and of course the way it feels to unbox a brand-new Apple device. Apple has always been innovative with its products that are a lot different from its rivals. Its customers eagerly await its new products and are ready to pay premium prices for them. Today, Apple is the world’s leading technology brand with a brand value of over $200 Billion.
Apple knows how to delight its customers beyond simply meeting their expectations and this is what makes its customers fall in love with its brand positioning Statement
Apple knows how to delight its customers beyond simply meeting their expectations and this is what makes its customers fall in love with its brand positioning Statement
Provide the positioning statement your marketing plan will apply to the position of Apple is directly proportional to its Global Image and marketing effort it puts to promote its brand.
Apple falls second place in Singapore with a market share of 22.7% just behind Samsung with a market share of 25.46%.
Apple has been known for marketing with minimal and clear messages. IOS i.e., for Apple operating system users in Singapore is close to 22%.
Marketing Plan Objectives
Marketing Plan Objectives
Apple Inc. is in the business of creating and producing the world’s greatest smartphones. Besides formulating a marketing-oriented and customer-focused mission statement, Apple should establish an objective to achieve cumulative growth in net profit of at least 50 percent over the next five years. At least half of this 50 percent growth should come from the new business-to-business market that is being targeted. To accomplish its marketing objectives, Apple should develop benchmarks to measure progress. Regular reviews of these objectives will provide feedback and possible corrective actions on a timely basis. The major marketing objective is to gain a better understanding of the needs and satisfaction of current customers. Since Apple is benefiting from a 90 percent reorder rate, it must be satisfying its current customers. Apple could use the knowledge of its successes with current clients to market to new customers. To capitalize on its success with current clients, benchmarks should be established to learn how Apple can improve the products it now offers through knowledge of its client’s needs and specific opportunities for new technology and product offerings. These benchmarks should be determined through marketing research and Apple’s marketing information system.
Company Profile
Company Profile
Apple Inc is one of the world's most trusted companies for many of its world-famous products like- iPad/iPhone/MacBook etc. Apple has revolutionized the education sector with the introduction of the iPad and the same is the case with wristwatches - Apple has gained 55% market share in the global smartwatch market (gadgets.ndtc.com). Below we shall see the comprehensive marketing plan and strategy of Apple for its product - the Apple watch series.
Company Name: - Apple Incorporation
Industry: - Consumer Electronics
Major products and/or services (names, types): - iPhone / iPad / MacBook / iMac / iPod / Apple Car Play / Apple Watch
Products and/or services your marketing plan will focus on Apple watch target customers:
Looking at the pricing of the product and the characteristics - target customer for Apple Watch will be a tech-savvy person with knowledge of technology.
The people having a status quo factor concerning their societal presence will be major customers of the Apple watch.
High earners /upper-class and hardcore apple fans will be major customers.
Distribution channel(s): Through online retailers - like - Amazon / Mortar and Bricks stores like - Croma / maple chain / Apple exclusive outlets etc.
Headquarters (city, state, country): Cupertino, California, USA
Year founded: 1976
Number of employees: 137000
Annual revenue (estimated): 260.174 billion USD
Key competitors: Samsung / HP Personal computers / Sony consumer electronics / ASUS / Nokia / Redmi and many Chinese mobile brands link to the Web site: https://www.apple.com
Link to Yahoo! Finance information page (for public companies): https://finance.yahoo.com/quote/AAPL?p=AAPL
Market Segmentation & Targeting
Market Segmentation & Targeting
● Market Segmentation and Targeting for Apple Watch -
● What problem does your product or service solve?
● Apple watches primarily target high earners and tech-savvy people and solve their two major problems - one is the maintaining status quo in the society they live and the second is a new comprehensive smartwatch capable of performing all or most of the tasks that a smartphone can but in a tinier and smarter compact design.
● Describe the total market for your solution: Who are potential customers?
● Potential customers are - High salary earners / Businessmen / Tech savvy people / Senior management of an organization / CXO level personnel. / Newly married couples etc.
● What are the key segments within this market? and description -
● Geographic - US and International market - Apple targets customers from its home market US and international markets like very promising markets like India.
● Demographic - 20 to 45 yrs. of males and females - High salary earners / Businessmen / Tech savvy people / Senior management of an organization / CXO level personnel. / Newly married couples etc.
● Psychologic - Aspiring and explorer kind of lifestyle
● Behavioral - Avid fan of Apple products
● Which segment does this marketing plan focus on, and why? Why do you believe this segment will offer growth and profit opportunities?
● This marketing plan focuses on psychological segments to promote the Apple watch.
● This segment targets the customer based on their psychology to maintain the status of their lifestyle in the society and the group of people they live in.
● Apple watch will appeal to this segment the most.
● As these are most likely to be high spenders - this will prove to be a profitable segment to focus on.
Situation and Company Analysis
Economic Environment
Economic Environment
The segment and the target customer for the Apple watch are majorly well-earning salaried people and businessmen.
So, the segment will have spending power.
Technical Environment
Technical Environment
· The apple watch is a step ahead of all its competitors in terms of technology. The radiation values are top-notch meaning there are no side effects of skin cancer after continuous use of the Apple watch on a wrist.
· The Apple watch has all modern meters to indicate the major factors like - temperature, and altitude. humidity etc.
· Apple Watch gives the exact weather info.
· Apple watch has an inbuilt thermometer which can be extremely helpful in a COVID situation.
Competitive Environment There are many Chinese copies available in the market for the Apple Watch this is one area apple needs to take care of political Environment
Competitive Environment There are many Chinese copies available in the market for the Apple Watch this is one area apple needs to take care of political Environment
· Many countries nowadays have an agenda for no Chinese products - this will be a positive side for Apple watch sales.
· The concern is tough - as the Apple watch partially is assembled in China the make-to-market time can be extended and that can affect the market availability. But the company is already working on alternative manufacturing plant investments - like in India.
SWOT Analysis
SWOT Analysis
HELPFUL Ideas
HARMFUL Concerns
Internal
Strengths
● Apple has many unique products like iPhone 11 the latest one with fasted memory chip as claimed by Apple.
● Apple watch series 5 is also the fasted smartwatch available in the market as claimed by Apple.
● Apple watch has successfully added value to the segment it targets. Psychologic
Weaknesses
● Pricing strategy could have been more competitive for the Apple watch series as the smartwatch market is flooded with Chinese low-cost smartwatches most of which are a copy of Apple watches.
External
Opportunities
● As discussed previously above - developing countries are the opportunity for Apple watch - like India / Bangladesh / Malaysia etc.
● Right pricing strategy can make the Apple watch a source of income in these economies.
Threats
● Chinese copies of products like the Apple watch are major threats to Apple's smartwatch market share and sales.
● Changing the political environment between USA and China can affect the manufacturing of many Apple products. As Apple Watch is manufactured in Kushan China.
Mission, Objectives & Goals
Mission, Objectives & Goals
Apple's mission is to bring the best user experience of technology to the customers through its products using next-level hardware and software engineering.
· Apple Watch Series 5 is the next step that Apple has taken to realize this mission and vision - Apple watches series 5 brings all IT and mobile technology innovations to the wrist of customers right from calling features to advanced stock market analysis apps.
· Integration of Apple Watch with iPhone / iPad /MacBook will take the user experience to next level for customers.
Ethics and Social Responsibility
Ethics and Social Responsibility
Current Status
Current Status
APPLE is a premium quality mobile device. It is in the maturity stage.
To fit a target market, need it needs innovation, exclusivity, and competitive pricing.
The Level of quality is high and premium, and it is consistent with customer expectations.
It has multiple features like a camera, live gallery, processor, etc. New innovative features can be added.
Recommendations
Recommendations
Recommendation is based on high customer sensitivity, high revenue, excellent quality, value, prestige, etc. The company can introduce its products by following a penetration pricing strategy as this will encourage new customers to buy the product. It will also be viewed as a customer's pocket-friendly product. Thus, increasing the goodwill of the firm.
people can use them deep underwater. They can also increase the range of air pod connectivity so that people can have strong Bluetooth connections to longer distance marketing Information and Research Research Question
The important question I would like the answer to and would like to research is for my company Apple. is that what is the most important feature consumers believe is in any iPhone. Keeping it crisper, what is the reason what feature makes the customers prefer iPhone over an Android device? This problem would help meet its goals whereas one could have effective data and knowledge about what features to work on to make the company more prone to customer preferences and determine higher customer satisfaction.
Information Needed to answer that question we need data from the customers. Thus, the information required to meet the answers to that question is the customer database of who is going to the feedback, information about the phone's exclusive features and items taken into consideration, information about the places will conduct our study, the population will determine and finally the information about the right techniques we are using to have the data collected and converted. In short, we will take the information about what features make the people attract most to the iPhone in the feedback analysis method.
Information Needed to answer that question we need data from the customers. Thus, the information required to meet the answers to that question is the customer database of who is going to the feedback, information about the phone's exclusive features and items taken into consideration, information about the places will conduct our study, the population will determine and finally the information about the right techniques we are using to have the data collected and converted. In short, we will take the information about what features make the people attract most to the iPhone in the feedback analysis method.
Research Recommendations
Research Recommendations
We will use the primary research and data by going to our desired population of teens selected in a college and asking them individually to give us feedback in one word or two about which features attract them the most in an iPhone. It would be a Qualitative method of collective as open answers would be entertained and asked. We would recommend open-ended qualitative research because we are looking for What makes the customer attract, not Which. Thus, when the WHAT is taken into consideration, the quality is being asked which can also be determined through using feedback analysis in asking questions in interview form as a Qualitative method.
Customer Decision-Making Profile
Customer Decision-Making Profile
Identifying the Customer and Problem
Identifying the Customer and Problem
To start answering this case let us consider our product as a mobile phone which we can relate to ourselves very easily.
My target population is middle-range customers, irrespective of other demographic factors.
This population primarily looks at mobile phones which are quite affordable, with the most basic features available.
Their buying decisions revolve around price constraints with an equal eye on various other technical aspects, though they may forego a couple of features for the price.
My organization's next step to cater to my target population is to bring into the market such phones which are quite affordable and still able to provide the required specifications. As a solution, my organization may play with other specifications which are not so expected from customers.
Factors Influencing Customer Decisions
Factors Influencing Customer Decisions
My target population will be more concentrated in urban and semi-urban areas.
Demographic characteristics:
A little medium-level income-earning family will fall into this category.
Social characteristics:
An urban to semi-urban kind of lifestyle will be the target audience.
Situational characteristics:
We are targeting individual customers who give thought to some visible details of a product.
Marketing strategies:
1. Integrating and aligning devices as per the latest fad, says having a convenient way of posting selfies on social networks.
2. Smartphones have replaced desktops, as personal devices for many and hence we market our devices as something which can do everything that a desktop does.
3. Campaigning that our device will offer more innovative uses like wearables, scanner, etc.
We are confident these strategies work because, from a user point of view, we guarantee that we are going make their mobile device replace many other electronics at a much more affordable range and greater scope for innovation.
Reaching the CUSTOMER The best marketing strategy or tactic is the promotion of mobile brands, the mobile market is competitive, large, and demanding according to the trend. The advertisement should be a strategy to connect with customers' minds daily in television, digital or print media. When customers will see the advertisement regularly and will connect to the promotional activity they will be influenced. This is the best strategy to target every age group at the same time. The second strategy could be targeting a marketing company or the tie-ups with a company on a large scale, most of the company provide mobile to their employees, especially to the sales and marketing employees who are on the field. The mobile company can set up B2B with them. The best services like active customer care services with some value-added services like exchanging mobile old to new on discounted rates, giving offers, interesting EMI, etc. These factors help a customer to be easily targeted and focused. This helps in retaining a customer and their loyalty when the market is tough so becoming the best with time is the only strategy to survive, making a customer happy and satisfied is a mantra to make business progress.
Reaching the CUSTOMER The best marketing strategy or tactic is the promotion of mobile brands, the mobile market is competitive, large, and demanding according to the trend. The advertisement should be a strategy to connect with customers' minds daily in television, digital or print media. When customers will see the advertisement regularly and will connect to the promotional activity they will be influenced. This is the best strategy to target every age group at the same time. The second strategy could be targeting a marketing company or the tie-ups with a company on a large scale, most of the company provide mobile to their employees, especially to the sales and marketing employees who are on the field. The mobile company can set up B2B with them. The best services like active customer care services with some value-added services like exchanging mobile old to new on discounted rates, giving offers, interesting EMI, etc. These factors help a customer to be easily targeted and focused. This helps in retaining a customer and their loyalty when the market is tough so becoming the best with time is the only strategy to survive, making a customer happy and satisfied is a mantra to make business progress.
Positioning and Differentiation Brand positioning is called a brand positioning strategy or a brand positioning statement.
Positioning and Differentiation Brand positioning is called a brand positioning strategy or a brand positioning statement.
Advertised in Al Rise and Jack Trout’s bestselling Positioning: Battle for Your Mind The idea is to identify and try to own a particular brand for a product or service using a variety of strategies, including promotional value. Distribution of packaging competition. The purpose is to create a distinctive impression in the customer's mind so that customers associate something specific and desired with your brand that is different from other markets.
Repositioning Considerations
Repositioning Considerations
Rise and Trout are positioned as a "system for finding windows in mind." It is based on the idea that communication can only happen at the right time and circumstances. "
Brand branding happens to be how active a company is in developing a position, but if management takes a smart approach forward, it can positively impact the brand positioning of its target customers.
brand promise for this brand is ' think differently '. Apple inspires its customers to think differently with its innovative and technological approach to its products. The brand promise suits its products which are pioneer products launched by Apple. The brand promise needs no change as it is a good fit for the product and as per the aspirations of the consumers of the brand.
Brand Positioning and Strategy
is the process of locating your brand in the opinion of your customers. Brand positioning is called a brand positioning strategy or a brand positioning statement.
Competitive Advantages
Competitive Advantages
Competitive advantages are the unique features, values, or strengths that are delivered by the product, service, or organization and are not matched by any others in the market. The list of the competitive advantages is as follows:
1. Innovative design and quality of the product. It can be identified that Apple always produces a unique design and product quality that creates high value among consumers. It acts as a competitive advantage. Assorted products such as iPhone, and iPad came with designs with supreme quality that can deliver a competitive advantage.
2. Service delivery method. The delivery of services and selected methodology also give a competitive advantage as it can be at the location of the consumers, the use of direct channels, or superior consumer experience.
3. Low price, creating pricing advantage. The low price also creates a competitive advantage when the quality of the product is also maintained. It comes with the economy of scale that delivers the scope of natural monopoly. Examples are power producers, Oil & gas refineries.
4. Talented Human resources. Such human resources in the organization, drive innovation and creativity that gives sustainability to the business. It creates huge value and attracts new talent to the organization.
5. Patent of disruptive technologies. Disruptive technologies are the ones that will replace the existing technology and development of such technological advancements, delivering competitive advantages to organizations. Brand Positioning and Strategy is the process of locating your brand in the opinion of your customers.
BRANDING BRAND Description
BRANDING BRAND Description
Apple is a technology brand and a leader in consumer electronics like smartphones and personal computers. It has created a range of pioneer products like the iPhone, iPad, and iMac that are popular with customers for their premium quality, performance, and features. The consumers find them easy to use, like their performance and uniqueness of the products.
THE Brand Promise is ' think differently '. Apple inspires its customers to think differently with its innovative and technological approach to its products. The brand promise suits its products which are pioneer products launched by Apple. The brand promise needs no change as it is a good fit for the product and as per the aspirations of the consumers of the brand.
THE Brand Promise is ' think differently '. Apple inspires its customers to think differently with its innovative and technological approach to its products. The brand promise suits its products which are pioneer products launched by Apple. The brand promise needs no change as it is a good fit for the product and as per the aspirations of the consumers of the brand.
Brand Voice and PERSONALITY APPEAL have a branding strategy that focuses on emotions. The starting point is how an Apple product experience makes you feel. The Apple brand personality is about lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams, aspirations; and power to the people through technology.
Brand Voice and PERSONALITY APPEAL have a branding strategy that focuses on emotions. The starting point is how an Apple product experience makes you feel. The Apple brand personality is about lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams, aspirations; and power to the people through technology.
The Apple brand personality is also about simplicity and the removal of complexity from people's lives; people-driven product design; and being a humanistic company with a heartfelt connection with its customers. Through these qualities, Apple is positioned as being extremely helpful to people (and businesses) as they strive to achieve their goals.
The Apple brand personality is also about simplicity and the removal of complexity from people's lives; people-driven product design; and being a humanistic company with a heartfelt connection with its customers. Through these qualities, Apple is positioned as being extremely helpful to people (and businesses) as they strive to achieve their goals.
Apple Brand Equity and Apple's Customer Franchise
Apple Brand Equity and Apple's Customer Franchise
The Apple brand is not just intimate with its customers, it's loved, and there is a real sense of community among users of its main product lines.
The Apple brand is not just intimate with its customers, it's loved, and there is a real sense of community among users of its main product lines.
The brand equity and customer franchise which Apple embodies is extremely strong. The preference for Apple products amongst the "Mac community", for instance, not only kept the company alive for much of the '90s (when from a rational economic perspective it looked like a dead duck) but even enables the company to sustain pricing that is at a premium to its competitors.
The brand equity and customer franchise which Apple embodies is extremely strong. The preference for Apple products amongst the "Mac community", for instance, not only kept the company alive for much of the '90s (when from a rational economic perspective it looked like a dead duck) but even enables the company to sustain pricing that is at a premium to its competitors.
It is arguable that without the price premium that the Apple brand sustains in many product areas, the company would have exited the personal computer business decades ago. In recent years, this strength in brand preference has flowed directly to Apple's profits - as the company dramatically improved its manufacturing costs, while still maintaining very strong brand equity.
It is arguable that without the price premium that the Apple brand sustains in many product areas, the company would have exited the personal computer business decades ago. In recent years, this strength in brand preference has flowed directly to Apple's profits - as the company dramatically improved its manufacturing costs, while still maintaining very strong brand equity.
Brand Positioning and Strategy is the process of locating your brand in the opinion of your customers. Brand positioning is called a brand positioning strategy or a brand positioning statement
Brand Positioning and Strategy is the process of locating your brand in the opinion of your customers. Brand positioning is called a brand positioning strategy or a brand positioning statement
Product Strategy
Pricing Strategy
1. Pricing for Apple- It follows MAP (minimum advertised price) strategy. It does not allow dealers or resellers to advertise its products below a certain minimum price. Provides a small number of high-end products in its niche market by prioritizing profits over market share and creating a hello effect in minds of people. It also follows a skimming strategy but in a different manner, not by reducing its price but by increasing its value in minds of people.
2. Its competitors include HP, Dell, Lenovo, etc. They provide products to suit customers' affordability. They provide a wide range of goods and each of them is available at different prices. They are near the breakeven point.
3. Apple can follow penetration pricing. It can set its price initially low to gain market share. This can be done while launching a new product. The price can then be increased once the promotion period ends.
4. Recommendation is based on high customer sensitivity, high revenue, and excellent quality, value, prestige, etc. The company can introduce its products by following a penetration pricing strategy as this will encourage new customers to buy the product. It will also be viewed as a customer's pocket-friendly product. Thus, increasing the goodwill of the firm.
Place: Distribution Strategy
Place: Distribution Strategy
Currently apple follows a distribution strategy like selling their products and services through the reseller channel, here, resellers like wholesalers or retailers have a connection with the Manufacturer –Apple. They procure products from Apple and sell such products and services to the specific target market. For example, Unicorn is a popular reseller of Apple products and services; they provide their services and sell their products in niche markets like the Mumbai area, Pune area, and Bengaluru area.
In the distribution approach, we could find various missed opportunities, such Missed opportunities are like Apple has very limited distribution channels and service centers, they provide off-site service to the clients, here, clients need to travel to the house of the distributor to get their repairs done, their products and services come with huge pricing, they usually follow price skimming strategy to recover the cost for innovations and upgrade, apple could improve their service and they should implement the feedback loop, that could help them to understand the underlying issues that are happening in the market and that are faced by the customers. So, Apple should consider valuable feedback, issues, and pain areas from their customer in a much more effective way that could improve their products and services more user-friendly and that could improve brand loyalty over time.
The best distribution channel that could be applicable for Apple is that they could vertically integrate their reseller they could provide more appropriate service, could control the pricing issues, could become highly reachable to the market. Such direct or vertical integration could help Apple to establish control over its brand, hence, brand loyalty will improve; further, Apple could control the pricing of the products and services that are essential for customers.
If I have a retail outlet, it should be in a zone where there are many technological companies, technological professionals, and Tech-based students, and usually, they will keep their strong enthusiastic behavior for buying such Apple Products. Such a Zone should be a Metro city.
In metro city geographical areas, such Apple products, and services should be available, as here, we could find various technology-based IT and ITES organizations, professional from such organizations could put their interest in such products, and students from IT Backgrounds could also be interested, usually, Metro city has a large population and better business environment.
Promotion: Integrated Marketing Communications Strategy
Promotion: Integrated Marketing Communications Strategy
Apple Inc. uses different communication channels to popularize its iPhones. The objective of using integrated marketing communication is to reach many customers and boost sales volume. The company uses promotional and advertising instruments to draw the attention, desire, and interest of the clients (Holm, 2006). Besides, Apple posts sleek images of iPhones on its website to attract customers.
According to Holm (2006), Apple uses print and broadcast media to market iPhones. Other communication strategies that the company uses include digital media, point-of-purchase, direct marketing, personal selling, sales promotion, and public relations, among others.
Approach
Company name- apple product name- iPhone
Campaign objective- design a promotional and engagement activity to promote the newly launched product by considering the target audience.
The target audience of the campaign will be targeting the younger generations for these iPhones because the younger generation is tech Savvy.
The age group of the target audience - 18 to 25 years
Secondary target audience - 25 to 32 years
Reason- as the product is expensive, young professionals can spend more money on lavish things.
Goal
To create awareness of the newly launched iPhone in the target audience market
· To create Hype in the market for the newly launched iPhone
· Drive the distributors and supply chain partners for the products.
· Call to Action customers call to Action from Market
1. Register and booking of the phones before launch.
2. Updating their social accounts about their phones through the campaign 3. High participation counts in the contest.
Messages
· We will run the social media ad campaign on Twitter Facebook Instagram to target the audience of the above-mentioned age groups.
· Officially announce the contest and lucky Champ winners of the iPhone to create a buzz in the market for the product.
· we will focus more on the maximum number of participations and create motivation to participate in lucky Champ winners.
· we will take celebrity endorsement to advertise the product in the market.
· we will take a newspaper campaign to make Awareness of the product in the market.
Ensuring about SMART GOAL
Our goal of this campaign is very SMART
We will have self-analyzing tools for the campaign.
Promotional Mix and IMC Tools
Public relations: Contact all those who have attended our event in past, inform the existing customer about the new iPhone, and exchange offers,
Digital marketing: Website, event hashtag, rolling hashtag, a tweet box, and social media buttons promoting our conference.
Direct marketing: Email marketing, research out to prior attendees who are already registered asked them to post about plans to attend the upcoming conference, and conduct an email campaign.
Sales Promotion and Digital Marketing: Contest/Give away offer giveaway via social media accounts, trigger entries in the conference, contest giveaway to take place at conference opening session.
KPI
Sales Alignment
This campaign is operating in 1st stage of the sales process (Sales funnel) as most of the activities are related to generating leads of people who can attend promotional events of launch even if I iPhone XS MAX and later they can be sales led to pitch their product.
it can also be considered as operating in stage 2 of the sales process (Sales funnel) as we are trying to connect with all those people who have attended our promotional event in past.
Measurement (KPIs - Key Performance Indicators)
Following are the KPIs that are appropriate to the given campaign.
Number of qualified leads generated - Higher the number of people attending the conference, the higher will the sales lead and so it can be considered as a key performance indicator of the campaign.
Website unique visitor - website unique visitor will imply that more people are getting aware of the Event and which may lead to an increase in the number of unique new registrations.
Number of registration/signups: this is the main KPI to make your campaign successful as the higher the number of registrations for the conference; the higher will be the sales leads after the conference.
Budget
Budget
Corporate ads
Corporate marketing Advertising Model
750,000,00
Online as payment for online advertising
880,000,00
Promotions
Marketing promotions
500,000.00
Marketing vehicle rental for various marketing purpose
360,000.00
Retail Ads
Payment for retailers for various display
600,000.00
Billboards
Purchase billboards and design work for ad display
90,000,000.00
Social media marketing Facebook, Twitter, Instagram
20,000,000.00
Others
Website, TV commercial
6,000,000.00
Total Marketing Budget
119,090,000.00
Apple’s advertising budget is very low when it comes to advertising the iPhone. What Apple does is have other businesses advertise the iPhone for them. Because the iPhone is the best-selling smartphone year after year, other mobile companies like AT&T and Verizon do most of the advertising for them. We will continue to run our ads and make them simplistic as we always do. The goal here is to show the consumer that the iPhone is simple to use, and everyone can use it no matter what age they are. The 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 exceed 200K. After the first year, Apple will make a profit of 1.25 billion minus 50 million in fixed costs. It is predicted that sales volume will increase by at least 60% from this change; this will decrease the impact of fixed costs and improve opportunities to increase our production scale,
Risk Factors
High competition and rapid technological changes keep Apple under pressure.
Consistently stimulating customer demand
Successfully managing frequent product and technology development
Future operation depends on Apple's ability to obtain enough of the rare metals and other components used in production.
The growth of Apple’s retail store could discourage third parties from selling and promoting the company’s products. Although, the market share of Apple is gratifying, especially in mobile communication devices, and portable digital music and video player markets, Apple still needs to confront two major risks in the market. Following the development and global expansion of Apple, the activities related to interest rates and foreign currency increased at an amazing rate. Therefore, the uncertainty of interest rates and foreign poses a material negative effect on the company`s performance.
Firstly, interest rate risk. Because Apple is exposed to interest rate fluctuations in many advanced developed countries, Apple`s interest income and expense are most sensitive to fluctuation in interest rates of these countries. Therefore, these changes directly affect the interest earned on Apple`s cash, securities, and costs related to foreign current hedges.
Secondly, foreign currency exchange rate risk. Generally, Apple is a net receiver of currencies, since then, because of the changes in exchange rates, the net sales and gross margins of Apple as expressed in U.S. dollars would be negatively affected by these changes. Moreover, Apple should adjust the prices of its products to the local market when the exchange rate has changed, usually, the U.S. dollar is strengthening, which hurts sales from the local competition with lower prices. Meanwhile, Apple`s contracts with financial institutes to protect Apple against exchange rate risk led to an increase in the prohibitive economic cost of hedging particular exposures.
Attributions
Flinders Business School Marketing Plan Template. Authored by David Medlow-Smith. Located at: https://archive.org/details/FlindersBusinessSchoolMarketingPlan2. License: CC BY-SA.
ORIGINAL CONTENT
SWOT and Integrated Marketing Communications Templates. Authored by Melissa Barker. License: CC BY: Attribution.
Revision and adaptation. Authored by Lumen Learning. License: CC BY-SA.
Revision and adaptation. Authored by Waymon D. “Wade” Hyde, faculty, El Centro College/Dallas County Community College District. License: CC BY-SA.
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