1. Apple iphone Marketing Plan
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Apple iPhone Marketing Plan
•Executive Summery
•Situational Analysis
•SWOT Analysis
•Marketing Objectives
•Marketing Strategy
•Implementation
•Budget
•Control

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Executive Summery
The Past– Steve Jobs, Steve Wozniak and Ronald Wayne
established Appleon April 1, 1976 in order to sell the Apple 1
Computer Kit that was handbuilt by Steve Wozniak. The Apple
1 was sold as a motherboard (with CPU,RAM and basic textual
video chips) – less than what is considered a personalcomputer
today. Apple was responsible for creating the desktop
publishingmarket due to their innovative programmes,
PageMaker and LaserWriter.Between 1983 and 1996 Apple
experimented with a number of failedconsumer target products
including digital cameras, portable CD players,speakers, video
consoles and TV appliances. Market share and stock
pricesdecreased. In 2001, Apple introduced the iPod portable
digital audio player.The product was phenomenally successful –
over 100 million units were soldwithin 6 years.
The Present
– January 2007, Steve Jobs, the CEO and Co-Founder of
Apple,announces that Apple Computer Incorporated would now
be known as AppleInc. He also reveals the long anticipated
iPhone
, a combination of anInternet-enabled smartphone and the iPod.
In June 2008, he announces thatthe iPhone 3G would be
released in July 2008, this newer version addedsupport for 3G
Networking and assisted GPS navigation, among other things.

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The Future
– Apple 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 featureswhen releasing new
versions of any product.
The iPhone targets consumers who need to store information
andcommunicate or people who want entertainment on the go.
Apples targetsegments consist of professionals, students,
corporate users, entrepreneurs,and health care workers.
Currently, the market for high-end phones like theApple iPhone
is small. Few people want Internet, video, and PDA features
inone device because of the high price. The smart phone market
is still relativelysmall compared with general phone market. The
market will rapidly increase incoming years due to lower prices
and greater power.

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Situational Analysis
Political Situation
•Taxation is something that governments put and Apple should
bestudy this as country by country case to anticipate
profitability, andpricing strategy.
•Importing laws in the world with GATT are in favor of trading.
•Countries are very variable in stability of, so we should study
eachcountry case by case.
Economical Situation
•Economical growth world wide is in a big recession which
needcareful manipulation
•Potentiality of the market is decreasing but it is higher than
anyothers in the Telecom sector.
Socio-Cultural Situation
•Population growth leading to expansion of the sector needs for
cellphones.
•People depend more an more on mobile
communicationeverywhere.
•There is educational growth in the world.
•Culture’s perception of the technological devices is
positiveworldwide.

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•Literacy & illiteracy level is not affecting using cell phones
butaffecting high technological cell phones, this fact needs to
beconsidered.
•Acceptance of imported products in some countries are less if
there is local provider
•There are different social views that may affect product should
beconsidered (e.g.: Boycotting American products in the
Islamicworld)
Technological Situation
•Level of technology in the world is increasing.
•Internet level of awareness & usage for individuals &
industrialaspect are increasing worldwide
•Fixed phone lines 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 beconnected 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
aremore than 15 big companies competing at the world level
Market.

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Environmental Situation
•The global concern of the Global Warming issue & other
pollutioneffects concerning the packaging material and radiation
of the cellphones
•The demand of the international environmental approvals is a
must(if there is any)
Sales Situation
Cell phones industries are one of the mostprofitable industries
everywhere and theMarket is increasing

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S/O Analysis
Strengths
Innovative– The iPhone has an innovative touch screen. It also
hasmany functions of other mobile products all in one device
Compatibility –The phone will work with iTunes and with
otherMac/Apple products and OS software tools which means
limitlesspotential for upgradeability.
Ease-of-Use– The all-new touch screen interface recognizes
multifinger gestures, just as the human hand normally behaves.
Brand awareness–Apple is well known for cool
essentialgadgets like the iPods along great technological
innovations like theoriginal Macintosh.
Price– iPhone would be sold at a reasonable price for itsvalue.
Quality– Scratch resistant screen – durable and lightmetallic
finish - software suite resistance to computer viruses.
Opportunities:
Increasing demand and expansion to a new target segment
– As technology advances and smart phones get cheaper Apple
willattract consumers and get iPod users to upgrade to iPhones.

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Upgradeable– iPhone software allows new exciting features to
be brought in which take advantage of the touch screen ability.
Future versions will also be hardware upgradeable.
Partnerships– Apple can collaborate with many powerful
globalmobile phone companies to flood the market with iPhones,
whichreduces costs in marketing and increases revenue through long-
termagreement deals.
Weaknesses
Image– The Apple brand is not targeted towards business people
anddoes not have a reputation as being compatible with the corporate
world.
Price– Apple does not yet offer lower priced models for more
costconscious consumers.
User Interface– Touch screen interfaces suffer from the problem of
“gorilla arm”*
*Gorilla arm is a side-effect that humans face when using touch screens for long times as
humans are not builtto hold their arms at waist or head-height, making small and precise
motions. After a short period of time, crampmay begin to set in, and arm movement becomes
painful and clumsy. This is now considered a classiccautionary tale to human-factors designers.

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Threats
Increased competition– Smart phones are easier to make now
morethan ever. More companies may enter the market, and
competitors oreven Apple contractors can maneuver around patents to
create similardevices.
Downward pricing pressure– The iPhone is marketed as a high-
end phone, but phone prices are almost certainly going to fall
whenother companies undercut the price of iPhones.
Difficulty expanding into Asian market– There 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 wellestablished and compatible with many products for this market.
Themarket is familiar with Palm products; significant switching
costs areinvolved in going to an iPhone. Palm can add many
similar capabilitiesto their products that match the iPhone and
expand to a wider marketthrough lower cost and higher-power
products.

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Marketing Mix Strategy
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
Beatlesedition celebrating their 40th anniversary)
•Launching a cheaper version in 2008 with lessadvanced features
along with a moreadvanced 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)
Price
•Set the base model at a cheap price of $349
•A more advanced model for $399
•Speciallimited edition Beatles iPhone for special prices
•Generally lower our prices to ensure we establish market
dominancein 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

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•All Apple Stores the Apple website will dedicate themselves to
theiPhone
•Eye catching displays will be found at all physicalstores featuring the
iPhone to make the productstand out from the pack
•Apple Stores will have the iPhone on display a fullmonth before its
worldwide release
Promotion
•Integrate Apple message of revolutionary communications
andaudio/visual experience together in all media advertisements
•Differentiate the iPhone against others is the touch
screenfunctionality
•Emphasize Apple brand prominently and associate theiPhone with
the iPod’s groundbreaking lineage
•Original but tasteful advertisements at the same time
•A massive TV campaign is planned before launching the
iPhonefeaturing a soon to be legendary ad to be the talk of the country
•Advertising will be appearing on a regular basis tomaintain
general public awareness

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Marketing Research
•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
applicationand social/personal use
•The 45 years and above will give us a plan to market to more senior
well-refined group
•This research will be done through surveys (via email
campaignthrough portals such as, iTunes and other on-line
applicationdeveloped for the iPhone) and interviews (in Apple stores)
with thesame age groups listed before
•To bring the iPhone to the front of the business world it is
importantto research different ways to grow the 15-25 year old
group into business uses of the product
•Brand awareness will be an important tool in taking the Apple
brandfrom "social cool" to "business cool".
• We will ask for feedback on iPhone features, and implement
thosechanges most important to the end user in the next
generation iPhone
• We will allow users themselves to design their own ideal
iPhone on-line and use any useful ideas to further refine future
iPhone models
• We will continuously scour the Apple fan websites to understand
what the Mac faithful are saying, as they are our best customers.

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Implementation
Compensation 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 monitorquality and
customer service satisfaction
consumers can contact the main headquartersabout
any possible technical problems– by usingApple
Customer Service Bar and a customer service phone number
stored in the phone book.
In case of slow sales
•Offer 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
synergyand lure buyers.•develop deep relationships with two
very different segments:those who have it and those who aspire

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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.
Basedon these assumptions the break-even calculation is $50
milliondivided by $500 minus $250 equals 200,000 units sold.
•Break-even calculations indicate that Apple will become
profitableafter the sales volume exceeds 200k. After the first year
Apple willmake 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
fromthis change; this will decrease the impact of fixed costs and
improveopportunities to increase our production scale, which
will furtherimprove profits in the long run.
Control
To plan our strategy we will meet monthly with the board of
Apple,present our information, and make a proposal for
continued marketingefforts. Before each meeting our team will
meet in private, with eachperson presenting their own proposal
based on the information theyhave learned. After the initial
proposals, we will vote on the best oneor come to a compromise.
The final proposal sent before Apple is theresult of that meeting.