Marketing Plan prepared for Marketing Unit Project at Melbourne Business School. Was launched before the official release of iWatch by Apple

1. Apple iWatch
Syndicate 5
Marc Grigoruk  Mubin Rahimi  Jack Wan  Justin Rebbeck
Damien Saulep-Easton  Kashif Hayat  Vladimir Tikhomandritskiy

2. Agenda
• Introduction
– Apple brand promise
– Smartwatch market
• Data Collection
– Survey, Conjoint, Scree Plot
• Marketing Strategy
– Segmentation, Targeting and Positioning
– Marketing Mix (4 Ps)
– Implementation & Control
• Conclusion

3. Brand Promise
We make it easier to love technology,
so that you can experience the future.

4. Smartwatch Market
2nd ranked smartphone
manufacturer world-wide
Growth rate of 30%
between 2013 and 2018
134 million units by 2018
$14 billion revenue by 2018

5. Age
Survey
On Qualtrics
Education
Income
Profession
Brand
Sensitivity
Preference
Smartphone
Familiarity
Health &
Fitness
Watch
Media Tech
Consumption
The Survey

6. Conjoint Design
•1.8 inch
•2.5 inch
•None
• Standard
•$199
•$299
•$399
•1 Day
•2 Days
•3 Days
Battery
Life
Price
Screen
Size
Biometrics

7. Dendrogram
35,000.00
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
Loss of information - Apple
iWatch
0 2 4 6 8 10
Distance
1 5 3 8 2 6 4 7 9
Cluster ID
29,452.2
15,331.2
11,637.9
6,678.70
6,286.39
3,804.71
3,570.49
3,523.00

8. Segments
Segmentation variable /
Cluster
Overall Cluster 1 Cluster 2 Cluster 3
1 Day 3.51 5.44 5.36 0.897
2 Days 14.9 19.3 8.95 16.6
3 Days 27.9 46.1 19.3 23.1
199 26.4 10.1 49 19.3
299 18.2 10.2 28.9 15.1
399 2.13 6.89 0.5 0.414
1.8 inch 3.1 2.61 5.32 1.72
2.5 inch 7.51 11.7 5.55 6.41
None 2.13 4.17 3.27 0
Std 26.3 13.8 12.6 44.6

9. Segment Targeting
32%
Price
Sensitive
want the
latest
technology
lower
price
37.95
utilities
66% own
iPhones
majority
do not
use
watches
74.52
utilities
42%
Health
Conscious
2nd
ranking
battery
60% own
iPhones
82% brand
loyal
physical
exercise 4+
times per
week
78.49
utilities
26%
Battery
Sensitive
Already
own
iPhones
Brand
loyalty is
important
2nd
ranking
biometrics
23% likely
to buy
iWatch

10. Product Positioning
• A premium iWatch bundle
• 3 day battery, $399, 2.5 inch screen and
biometrics
– Functional Benefits
– Intangible Benefits
– Social Benefits

11. Product Price Place Promotion
Premium pricing Strong integration with lifestyle
Ease of use Familiarity and simplicity of design

12. Product Price Place Promotion
$399

13. Product Price Place Promotion

14. Product Price Place Promotion

15. Implementation & Control
Sales Targets
• Co-purchases: 60% of iWatches purchased with iPhone 6
• Profit in Year 1: $80 million
• Sales volume in year 1: 800,000 units
Product Review
• Apps: more than 10 health apps purchased
• Satisfaction: 95% satisfaction rating
• Uptake by health industry (within 2 years)
Defect Frequency
• Rate: less than 1% defect
• Complaints: complaint reports for less than 5% of sold units