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AppleiWatchMarketingPlan1

StrategicMarketingPlanforAppleiWatch
FallSemester201314

AppleiWatchMarketingPlan2

AnthonyWebb:
AnthonyisavarsitybaseballplayerandisthecoolestkidinthehistoryofMerrimack
Valley.HeisMs.Ferrisfavoritestudentever.ShelikesAnthonyevenmorethanEmma.
HeworksatDemoulasMarketBasketonStorrStreetinConcord,NewHampshire.He
worksintheproducedepartmentstockingfruitandvegetableslikeaboss.Asyoucansee
bytheprofilepicture,AnthonyismuchcoolerthanNatewhoyoucanseeinthebackground
ofthepicture.Thiswillbethebestmarketingplanthatyoueverread,BELIEVEME.Enjoy
(:

EmmaHamilton:
EmmaisaseniorattheValleyandlovesbeingheresomuchthatshewishesshe
couldbehereanotheryear.SheworksfourhoursatMarketBasketeverythreemonthsand
isconsistentlybroke.Inherfreetimesheenjoysdevelopingskincancerwhilefakeand
bakinginatanningboothalongwithexcercising.Herfavoritefoodsarepopcornanddark
chocolate.Emmaisalsoaddictedtoicedcoffeeandcannotbelievethatweactually
finishedthismarketingplan.

AppleiWatchMarketingPlan3

PurposeandMissions
PurposeofPlan.4
Mission
Statement4
Vision
Statement4
SituationalAnalysis
CurrentProductAnalysis.4,5,6,7
DescriptionofCurrentDistributor
Network8,9
Competitive
Analysis...9
Financial
Analysis...9
EnvironmentalProblemsand
Opportunities..9
Product/MarketAnalysis(ProductLife
Cycle)....................................................................................................................10
SummaryofCurrent
Situation....10
MarketingStrategyandObjectives
MarketingStrategy.11,12
FinancialObjectives.....13,14,15
Marketing
Objectives.15
Channel
Objectives......16,17,18
TacticalMarketingPrograms
TargetMarketIssues...19
Product....19,20,21,22,23
Promotion..23,24,25
Distribution..25,26
Pricing...26
OtherCustomerService...26
BudgetingandImplementation

AppleiWatchMarketingPlan4

MarketingBudget..27,28
Implementation.29
AdditionalConsiderations29,30
Bibliography2
Appendix...34

AppleiWatchMarketingPlan5

AppleInc.(Apple),incorporatedonJanuary3,1977,designs,manufacturesandmarkets
mobilecommunicationandmediadevices,personalcomputers,andportabledigitalmusic
players,andsellsavarietyofrelatedsoftware,services,peripherals,networkingsolutions,
andthirdpartydigitalcontentandapplications.TheCompany'sproductsandservices
includeiPhone,iPad,Mac,iPod,AppleTV,aportfolioofconsumerandprofessional
softwareapplications,theiOSandOSXoperatingsystems,iCloud,andavarietyof
accessory,serviceandsupportofferings.

PurposeandMission
PurposeoftheMarketingPlan
Thepurposeofthemarketingplanistogiveadetailedexplanationof
thenewiWatchthatwillbereleasedbetweenAprilandJune2014.
ThisplanwillconsistofaSituationalAnalysis,MarketingStrategies
andObjectives,TacticalMarketingPrograms,Budgeting,
PerformanceAnalysisandImplementation,andAdditional
Considerations.Informationwithintheplanwillbeusedasthenew
productisreleasedtoconsumers.

MissionStatement
"Appleiscommittedtobringingthebestpersonalcomputingexperienceto
students,educators,creativeprofessionalsandconsumersaroundtheworld
throughitsinnovativehardware,softwareandInternetofferings."

VisionStatement
Appleasawhole,envisionsitselfasthetopofthelinewhenitcomesto
Wirelessphones,tablets,computersandlaptops.

SituationalAnalysis

AppleiWatchMarketingPlan6

CurrentProductAnalysis:
iPhone
GeneralInfo:
TheiPhonehasthehighestsalesofallcellulardevicesofalltimewithover
421millionunitssoldsinceitsintroductionin2007.TheiPhonewasthe
basisandthebeginningofallsmartphones.Peoplewhoownedthefirst
iPhoneswerethefirstpeopletobeabletoaccesstheinternetforquick
browsing,unlikepriorphonesthatcouldaccesstheinternet,butcouldhad
verylimitedandslowaccess

Pricing:
AssumingyouarepurchasingtheiPhonewithacellularcontractandnot
payingthefullprice,youwillbepaying$199,$299and$399forthe16GB,
32GBand64GBversionsoftheiPhone5s.TheiPhone5cisconsiderably
lessexpensivethanthe5s.For16GByouwillbepayingjust$99andfor
32GByouwillbepaying$199

Distribution:
TheiPhone5sand5careavailableatanySprint,Verizon,AT&Tstoreand
arealsoavailableatApplestoresandonline.

Promotion:
iPhonesarepromotedontelevision,ontheinternetandmostwidely
advertisedforfreebywordofmouth.

Servicesoffered:
Locationservices,TouchID,iSlightCamera,VideoRecording,Facetime
Camera,AudioCalling,AudioPlayback,VideoCalling,TVandVideo,Siri

iPad

AppleiWatchMarketingPlan7

GeneralInfo:
TheiPadwastheworldsfirstwidelyusedtabletdevice.TheoriginaliPad
hada9.7screenandwasmuchslowerandbulkierthantheiPadscurrently
beingreleased.TodaytheiPadAir(newestversion)alsohasa9.7screen
buthasamuchfasterprocessorandismuchthinnerandlighter.
Pricing:
ThenewestiPad,theiPadAircomesinfourmemorysizes.Thereisthe
16GB,32GB,64GBandthelargest,128GBversionsoftheiPadAir.Eachis
pricedat$499.00,$599.00,$699.00and$799.00respectively.Thereis
alsoaversionoftheiPadAirwhichisabletoconnecttocellulardataandis
abitmoreexpensive.Theycomeinthesamesizesand$629.00,$729.00,
$829.00,$929.00respectively.

Promotion:
iPadadvertisementsexplainwhattheiPadhastoofferandshowshowthe
technologythattheiPadhastoofferisfaraheadofitstime.

Servicesoffered:
Wifi,Wifi,FacetimeHDCamera,VideoRecording,iSightCamera,Video
Calling,Facetime,AudioPlayback,TVandVideo

iPod
GeneralInfo:
TheiPodoriginatedin2001withsizesof5and10GB.Itonlyheldmusicand
hadasimplescrollwheel.Today,theiPodtouch(5thgeneration)hasa4
retinadisplaythathasa1136by640resolutionat326pixelsperinch.

AppleiWatchMarketingPlan8

Pricing:
ThenewestinstallmentoftheiPodcomesin3memorysizes,16GB,32GB
and64GB.The16GBversionretailsfor$229.00whilethe32and64GB
sizesretailat$299.99and$399.99respectively

Promotion:
iPodadvertisementsaremostnotablyknowntohavethedancingsilhouettes
whetherontelevision,onposters,inmagazinesandonbillboards.

ServicesOffered:
Bluetooth,Nike+support,maps,FaceDetection,Facetime,Facetime
camera,iSlightCamera,

CurrentTargetMarket:
Appleusesamassmarkettargetmarketapproach.Appleaimstoselltheirproductsto
almosteverypotentialconsumeronthemarket.Whilealsomakingsuretonotuseany
unnecessarymoneytoconsumerswhoarenotinterestedintheproducts.

Gender:
Appledoesnotfocusonsellingproductstoonespecificgender.Apple
productsaremadetonotlookfemininenormasculine.Thoughthenewest
productshavebeendesignedinmultiplecolorsthataregenderspecifictoa
certaindegree.

Income:
Applemakesdifferentmodelsandsizesofproductssotheycanbeas
affordableaspossiblefordifferentlevelsofincome.

Age:

AppleiWatchMarketingPlan9

Appleproductsareappealingtoallages.Fromsmallchildrenwantingto
playgamesandlearntoestablishedbusinessmanagerswantingtheeasiest
possiblewaytoshareanddisplayinformationatmeetingsandthroughother
formsofcommunication.

Occupation:
Appleproductsaredevelopedtobeeasytouseandveryversatileforall
typesofprofessionaloccupations.AppleproductssuchasiPadscanbe
usedtodisplaychartsandotherdatainasimpleandsophisticatedway.
Maccomputersareusedinanofficeduetothefactthattheyarethehighest
levelofdesktopcomputerandarethebestwaytogetthemostprofessional
workdone.

Education:
Appleproductscanbeusedateveryeducationlevel.Theyarenotdesigned
tobecomplicatedtooperate.Appleproductscanbeusedbyanyoneatany
ageoreducationlevel.
GeographicLocation:
Applemakesproductsthatareusableinnearlyallconditions.Apple
productswillworkunderextremetemperatureconditionsandatextremely
highaltitudes.

PurchasingCharacteristics:
Appletargetstechnologyadvocatesandpeoplethatwillpurchasesthe
newestproductsonthemarket.

CurrentDistributorNetwork
Distributors:
CurrentlyAppledistributesitsproductsthroughaverylargedistribution
channel.Applesellsitsproductsthroughitsownwebsiteandauthorized
AppleStoresaswellasthroughauthorizeddistributorwebsitessuchas

AppleiWatchMarketingPlan10

Amazon.com.Applealsosellsitsproductsthroughwirelessphonecarriers:
Verizon,AT&T,TMobile,USCellular,andSprintaswellasmanyother
smallercarriersacrossthecountry.AnotherdistributornetworkAppleusesis
wholesalemarketerssuchasWalmart,TargetandBestBuy.

CompetitiveAnalysis:
Competitors:
CompetitorsoftheiPhoneareSamsung,Blackberry,Windows,Nokia
amongother,lessmajorcompetitors.Themostcloselycompetitivecompany
ApplehasisSamsungforphonesandMicrosoftfortheTabletandcomputer
products.TheSamsungGalaxylineistheiPhoneslargestcompetitor.The
GalaxyactuallyoutsoldtheiPhoneinthe3rdquarterof2013andhadavery
highrateofsalesinthe4thquarterwhentheiPhone5Sand5Cwere
released.TheseratesareabigtalkingpointamongApplesexecutivesas
weareworkingtofindwaystostayaheadofthecurveandcontinuetosell
moreproductsthananyothertechnologycompanyintheworld.(See
AppendixAforGalaxyGearspecifications)

FinancialAnalysisforProduct:
Applehassetaside$50millionforadvertisementandbugfixesfor
themonthsleadinguptoandafterthereleaseoftheiWatch.This
moneywillbedispersedthroughoutthe12monthsof2014

EnvironmentalProblemsandOpportunities:
Problemswithsellingthisproductareinternationalbanson
technologyfromsomecountriesandalsocountriesthatareless
fortunatewillnotbeabletoaffordanyoftheseproducts,sotherewill
benosalesfromcertainpartsoftheworld.

AppleiWatchMarketingPlan11

ProductPositioning:
Positioning:
AppleproductsareatthetopofthemarketwhenitcomestoTablets,
Smartphones,DesktopsandLaptops.Applehassoldmoreproductsthan
anyothertechnologybasedbusinessintheworld.Appleproductsarethego
toitemswhenupgradingtechnologyinanoffice,atschools,andforpersonal
usesuchashomecomputers,phonesandtablets.

CustomerAttitude:
Advanes:
Appleproductsareseenastopofthelineandthemostefficient,
technologicallyadvancingproductsonthemarket.Theyareknowntobethe
mosteasilyunderstandableandmostpowerfulproductsonthemarketwhich
showsthroughthesales.Nearly600millionpeopleor7.5%oftheworlds
populationareiPhoneusersandthisnumberispredictedtoincrease
throughout2014and2015.

Innovation:
TheproductsthatAppleandtheircompetitorsmakearethemostinnovative
andprofessionalcorporationsintheworld.Alwaysfindingwaystoimprove
theirproductovertheircompetition.Thisiswhatdrivestheconstantandvery
rapidimprovementsofproductsonthemarket.AsApplecontinuesto
innovate,competitionisdoingthesame.Thiscompetitionveryattractiveto
theconsumerandmakesthisindustryoneofthemostthrivingmarketplaces
inthebusinessworld.

PurchasingProcess:
Process:
AllagegroupshavetheirwaysofgettingAppleproducts.Theyoungerage

AppleiWatchMarketingPlan12

groupscangettheseproductsasgiftswhilesomecustomerswhogetinto
theirteenswillbeabletogettheseproductsontheirown.

Teenagers:
Appleaimsatsellingproductstoteenagersduetothefactthattheyarethe
mostsocialagegroup.TeenagersuseiPhonesfortextmessaging,phone
calls,socialmediaandanyotherformofcommunicationtheycanfind.
TeenagersalsouseiPodsforsocialmedia,gamesandmusic.Teenagers
areoneofthe,ifnotthemostimportantagegroupforAppletofocuson.
Theyarethenextgenerationofbusinessownersandthenewworkforcesoit
isimportantforAppletogettheinterestofthisagegroupsotheycontinueto
usetheproductsinthefuture.Teenagersarealsothemostinteractiveage
groupsotheywillprovidefreeadvertisingiftheenjoyAppleproducts.
Youngerteenagerswillreceivetheseproductsasgiftsbutastheyagethey
willbeabletopurchasetheirownproducts.Ifwecatchtheirinterestintheir
youngagetheywillpurchaseanAppleproductoveracompetitors.
Decisionsoftheseyoungerteenagersarenotasimportantasthedecisions
oftheirparents.AllAppleproductscomewithawarrantyandaremadeto
enduretheextremeconditionsthatyoungerchildrenmayputtheirApple
productsthrough.Teenagersarethelargestmarketforapple

CollegeStudents:
CollegestudentsareanothertargetmarketforApple.Studentsincollege
useiPads,MacBooksandotherappleproductstotakefastnotesandto
havequickaccesstotheinternetforstudyingandresearch.Collegestudents
areanotherhugemarketforAppleproducts.Collegestudentsneedthebest
technologyforthefastestresearchandtheeasiestwaytotakenotes.Before
college,manystudentswillstartshoppingforaLaptopandnowwithnew
technologywillbelookingattablets.IfApplemarketscorrectlyandefficiently
thanthesenewstudentswilllooktowardsAppleproductsoverthe
competition.Decidingwhichlaptoportablettopurchasecanbeavery
difficultprocess.Decisionscancomedowntosuchthingsasaccessibility,
power,easeofuse,priceandvisualappeal.Pricebeingamajorfactor,
Appledoeseverythingwithinitspowertomaketheirproductsasvaluableas

AppleiWatchMarketingPlan13

possibleforthepricepaid.
BusinessPeople:
Applemakestheirproductsveryeasytouseforcommunicationand
organization.BusinesspeopleenjoyAppleproductsbecausetheyareeasily
portableandmakecommunicationwithcoworkersandclientsveryeasy,
clearandefficient.DecidingwhichAppleproducttopurchasemaybeavery
dauntingtaskforsomeoneinthebusinessworld.Theymaypurchase
multipleproductsforpersonaluseandbusinessrelateduses.Business
peopleviewAppleproductsastheverytopchoicewhenitcomestoeasily
creatingpresentations,sharinginfo,meetingwithclientsanddoingother
formsofwork.
LittleChildren:
ChildrenloveApplesiPadsforthegamesandlearningapplications.
Childrencanbedistractedforhourswhilealsolearningandbeing
entertained.LittleChildrenwillgetAppleproductsthroughtheirparentsor
throughotherfamilymembers.Smallchildrenmayseeadvertisementsfor
gamesandotherappssuchasAngryBirdsonthetelevisionandwantan
appleproducttoplaythesegames.ChildrendonothavetoChildrensee
Appleproductsasagreatwaytohavefunthroughgamesandapps.
Adults:
TheeverydayadultisalsoatargetforAppleproducts.iPhonesareused
commonlyforphonecalls,maps,cameras,internetconnectionandtext
messaging.AmajorityofthetimeanadultwillpurchaseanAppleproductfor
themselves.Theywillseeanadvertisement,hearthroughafriendor
coworkerthathasaproduct.TheaverageadultviewsAppleproductsasan
itemthatmaymakethemfeelalittlebitbetterthantheaverageperson.They
canusetheseproductsforanytaskthattheyneedtowhetheritisphone
calls,writingemails,textmessaging,socialmedia,orinternetresearch.

MarketingStrategyandObjectives
MarketingStrategy

AppleiWatchMarketingPlan14

Wewillcontinueusingthesamepriceschemesthatwehaveusedforevery
otherproductwehaveproduced.ConsumerswillpurchasetheiWatch
becauseourfeaturesandbenefitsarequalitiesthatcannotbematched.Put
forthasmuchtimeandeffortaswedomakingthetechnologyintomaking
thepackaging.Alongwiththiswewillbematchingtheimageontheboxwith
theproducttoensurezerodisappointment.TheiWatchmatters.ForApple,
itismorethanaproductlaunch,itistheopportunitytoputtheshinebackon
thestockandthecompany,andgiveinvestorsconfidencethatApplecan
innovate,marketandsetthestandardsforwhatconsumersmusthave.
UponentrytotheMarket,Applewillhavealreadyproducedapproximately
500,000iWatchessothereisnoshortageslikethereiswithmanyother
hugelypopularAppleproducts.AppleiWatcheswillbesoldontheApple
websiteandauthorizedAppleresellersforthefirstmonthofsalesto
maximizeprofitwithoutlosingmoneytomiddlemen.InAprilandMaywewill
beopeningsales
Launch:

Online+Authorized Uppertechstores
Dealers
Amazon

Retail/Wholestores

January
February
March(Launch)

April

May

June

July

August

September

October

November

AppleiWatchMarketingPlan15

December

FinancialObjectives

CustomerSales

ChannelSales

AppleiWatchMarketingPlan16

WhentheiPhonewasreleasedweanticipatedthefollowingnumbers.Thesesame
numbersarealsoanticipatedfortheiWatch
grossmarginbetween37.5percentand38.5percent
operatingexpensesbetween$3.8billionand$3.9billion
otherincome/(expense)of$350million
taxrateof26%

MarketingObjectives
TargetMarketObjectives
MarketShare
Applestotalmarketshareformobilephones,tabletsandPCswill
growin2014fromunder10%toabove14%.Thereisnointentionof
increasingthechannelduetothecompanynotwantingtofloodthe
market.

Customers
Thereare500millionusersofAppleproductscurrentlyandthe
numberisexpectedtoreach600millionbytheendof2013

Purchases
DependingonhowoftenweupgradetheiWatchwillbepurchasedat
oneforeverycustomerduetoconsumersnotneedingmorethanone
watch.

AppleiWatchMarketingPlan17

PromotionalObjectives
Levelofcompanyawareness
Appleisaworldwideknowncorporationwhichwillincreasesalesfor
thenewproduct

TrafficBuilding
Havingwebsitebannersonsitessuchasmobilephonecarriersand
retailstores(target,walmart,bestbuyandkmart)
ProductTrials

OncewereleasetheiWatchtomobilephonecarrierswecanhavea
promotionwhenyoubuythenewestversionoftheiPhonethewatch
willbeabletobepurchasedatadiscountedrate.Whenconsumers
starttobuythewatchwiththephonetheywillbeabletosharewith
othershowgreatthewatchis,assalesbegintorisewewillcutthe
promotiontoughpeoplewillstillwanttobuyit.
SalesForce

HavingrepresentativesfromAppleselltolargecorporationsand
institutionsthatarelookingtoinvestintheiWatchandpurchaselarge
quantitieswillincreasesales.Sincetheserepresentativeswillbe
knowledgeabletheywillbeabletoanswerquestionsandthen
persuadethecustomerstopurchase.

ChannelObjectives
Dealers
Thereare406authorizeddealersofAppleworldwide.Retained
dealersconsistoftheonesoveronthewestcoastoftheUnited

AppleiWatchMarketingPlan18

Stateswherethecorporationoriginated.Newerdealerswillbeginto
popupmorecommonlyontheeastcoast.
OrderProcessingandDelivery

Appleprocessesdebitandcreditcardsimmediatelyafteranorderis
placedonline.Anemailissenttothecustomerwhentheorderis
beingprocessedandanotheremailforwhentheitem(s)areshipped.
Wehaveanoutstandingontimerateandguaranteeyourproductwill
arrivethedaywepredictunlesssuchthingsasweathergetsinthe
wayofdelivery.

MarketResearchObjectives

AppleiWatchMarketingPlan19

Knowingthereiscustomersatisfactioninourproductsgivesthecompanytheabilityto
makecurrentandnewproductsbuiltwiththesameframework.

ResearchandDevelopment
ProductBugs:Oncereleasingproductstothemarketourcompanyinstantly
seesifconsumershavefoundanybugsorglitchestotheproductthatneeds
updatingandorfixing.Evenhavingemployeesseekoutbugsandglitches
therestillisthepossibilityofonethatwasnotcaught.Wehavesatisfaction
guaranteedwhichresultsindevelopingnewoperatingsystemsforallofthe
technologythatisreleased.Oncebeingabletosupplyourcurrentcustomers
withsatisfactionintheproducttheyhavepurchasedwebegintodevelopan
evenbettertypeofthattechnology.

PartnershipDeveloped
Applelivesinanecosystemanditneedshelpfromotherpartners
itneedstohelpotherpartners.Andrelationshipsthataredestructive
donthelpanybodyinthisindustryasitistoday.Soduringthelast
severalweekswehavelookedatsomeoftherelationships,andone
hasstoodoutasarelationshipthathasntbeengoingsowell,but
thathasthepotential,Ithink,tobegreatforbothcompanies.AndId
liketoannounceoneofourfirstpartnershipstoday,averyvery
meaningfulone.AndthatisonewithMicrosoft.

AppleiWatchMarketingPlan20

TacticalMarketingPrograms

TargetMarketIssue
Noteveryoneineachtargetmarketisequallyfinanciallystable.Somepeople
incertaintargetmarketsareabletoaffordmorethanothers,soApplehasto
takethatintoconsiderationwhendecidingaprofitmargin

TargetMarketDescription
NearlyeveryoneisconsideredtobeatargetmarketforApple
products.HereatApplewetargetteenagers,collegeanduniversity
students,businesspeople,adultsandevenyoungchildren.TheiPad
isusedbychildrenfrequently,whiletheiPhoneisusedbyhigherage
groups.CollegeanduniversitystudentsusetheMacbooksand
businesspeoplehaveadaptedtheuseofaniPadinmeetingsandfor
easyuseoftravelingwithinformation.WiththenewiWatchwewill
plantoalsotargetelderlypeopleastheyoftenwearwatcheswhich
initiatethemtobuyiPhonesaswell.WorldwideAppleproductsare
usedbyjustabouteveryone.Elderlypeoplewanttolearntechnology
andbeuptodatewithsocietyandpeopletheymayknowusingit.By
introducingthemtoAppleandthenewiWatchtheymaypayjustabout
anythingtobetechnologicallyinclinedwiththerestofthepopulation.
Theobjectiveofaslightchangeinthetargetmarketwillbeto
increasethenumberofusersandamountofmoneythatApplewillbe
bringingin.Byhavingfeaturesthatanyoneofanyageandinanypart
oftheworldcanusewillincreaseourtargetmarket.Ournewtarget
marketwillbealloftheaboveindividualsincludeelderlypeople.

ProductPositioning
TheiWatchwillbemoredurable,equippedwithmorefeatures,and
fasterthantheSamsungGalaxyGearSmartWatch.Salesofthe
iWatchwillbehigherduetothesalesofthenewestiPhonebeing
higherthantheGalaxy.Customerswillexperiencehavingtheabilityof
makingcallstocheckingmapsonthego.Therecouldalsobea
pedometerforcountingstepsandothersensorsformonitoringhealth

AppleiWatchMarketingPlan21

data.ManyindustrywatchersbelievethatSiriwillplayalargerolein
theiWatchsoperation.Youwouldbeabletosendtexts,updateyour
socialstatus,findnearbyrestaurantsandmorejustbyusingyour
voice.TheiWatchcouldalsobeusedformobilepaymentsin
combinationwithaPassbookapp,aswellasforredeemingcoupons
andscanningmovieorairlinetickets.Havingpricessethigher
becauseofthequalityofourproductswilleitherhelporhurtus.Ifthe
watchweretonotsellevenwiththepromotionalofferofhavingitset
atalowerpricewiththepurchaseofanewiPhone,wewillthenhave
tolowerthepricecompletelyuntilitsells.Ifusersbecomeunhappy
duetohowthewatchoperatesthenwewillneedtoefficientlyupdate
theoperatingsystemtomakeconsumershappyandtobringinmore
happycustomers.Withourcompetitionbeingthewatchmadeby
Samsung,whichisalreadyonthemarket,mayleadtotheirsales
beinghigherbecausetheyarealreadyaheadofus.Withintentionsof
oursbeinghigherbecauseofhowotherproductshavesucceeded
overSamsungweshouldnothavetoworryaboutthis.Theeasiest
waytochangethepositionofourproductwillbealteringtheprice.As
alwaystherewillbeawaythatwecanchangeandupdatethedevice
thoughitwillbetestedbyvariousindividualswithseveraldifferent
lifestylesbeforeevenreleasedtothemarket.Thedesiredresultisto
havethesalesofourwatchveryhighandpurchasedforandbyallage
groupsthatAppleservesto.

SalesForecast

AppleiWatchMarketingPlan22

Forfiscal2014theaveragerevenueandEPSestimatesare$185billion,
up8%yearoveryear,and$43.71,up9%andalmostmatchingfiscal2012s
result,respectively.Appleshouldalsohaveabout$163innetcashper
share(nottakingadditionaltaxesforoffsharecashtobebroughtbacktothe
U.S.)afterdividendsand$16billioninsharebuybacks.

In2013wesold33.8millioniPhones,arecordfortheSeptemberquarter,
comparedto26.9millionintheyearagoquarter.Applealsosold14.1
millioniPadsduringthequarter,comparedto14millionintheyearago
quarter.TheCompanysold4.6millionMacs,comparedto4.9millioninthe
yearagoquarter.Assalescontinuouslyincreasewithourotherproducts
especiallytheiPhonethatisanonthegotool,theiWatchwillalsohavehigh
salesduetoeasymobility.Whenhavingthepromotionaloptionfor
purchasingthewatchatlowerratewhenbuyinganiPhonesaleswill
increaseforboththephoneandwatch.Forabouteverytenphonesthatare
soldroughlyfourwatcheswillbesoldwithit.Forconsumerswhoalready
haveanuptodateiPhonetheywillalsobepurchasingthewatchseparately.

ProductIssues

iWatchbeingintheelectronicscategorywillofferseveralkey
features.Beingabletoanswercallsfromyourwatchwhichleadsto
theofferingofsiritothisdevice.Alsoyouwillbeabletocontrolyour
music,downloadappsspecificallyforthewatchandtrackdata
throughsensorssuchaspulseandsteps.Notonlydoesthis
technologybenefitduringthedaywhilebeingonthegobutalsois
beneficialforphysicalactivity.Userswiththewatchwillbeableto
checkseveralthingsbelow95%moreduetothewearabledevice.

AppleiWatchMarketingPlan23

Branding

AppleiWatchMarketingPlan24

Applesbrandworthincreasedby129%,from$33billionin2011to
$76billionsignifiesinnovation,thelogooftheappleiswidelyknown
throughoutseveralcountriesandisthecompaniesbrandmark.
Packagingwillbekeptsmallforlessexpensiveshippingifonewere
toorderitonline.Itmayseemlikeasmalldetail,andthatshow
severalcompaniesfeel.HereatAppleweprideineverylastdetailto
ourproducts.Alongwithourotherproductsthepackagingwillremain
elegantandshowadetailedpictureofthewatchonthebox.Labeling
onthewatchwillhavethesamefontandhaveiWatchunderthe
clockitselfinasmallersizewiththeserialnumberandsuchasother
Appleproductshave.Currentlythewatchisreceivingfinishing
touches.Wearefixingbugsandglitcheswhilehavingittestedby
employeesofApple.Withinashorttimewewillbepackaging
preciselyasweplanwereleasethedeviceinMarch.Basedon
consumerfeedbackinlargeamountschangeswillbemade
accordinglytothenextgenerationofthewatch.Itmaybesoftware
issues,comfortability,oraccessibilityissuesthoughwedonotintend
oftherebeingany.Thebatterymayneedupdatingsothatthewatch
laststhroughoutatypicaldayfortheaverageadult.Withinthe
companyweplantoimproveourdistributiontoevenmorecountries
worldwideandstrengthenourprotectionplansforbettersatisfaction.

PromotionIssues

AdvertisinghereatApplehasmaintainedastyleofcontemporaryart
focusingonshowinghowtheproductisusedratherthantelling
consumersabouttheproductwhilealsoincorporatingpopularcultural
referencessincethe1980s.Thefirstpromotionaltoolweuseis
advertising.Investingheavilyintothisarea,Applehasmanagedto
createalargeamountofadvertisementsthatcanbefoundonany
televisionnetwork,inanytechnologymagazine,andalloverthe

AppleiWatchMarketingPlan25

Internet.ThesecondpromotionaltoolthatAppleusesextensivelyis
personalselling.AppleStoresarehometomanyyoungand
knowledgeablesalesrepresentativeswhoaretrainedthoroughlyin
bothproductinformationandcustomerservice.Withthereleaseof
newproductsandupgradesthecompanyproduceseveryfewmonths
orso,itisimportantforsalesrepresentativestostayabreastofthe
latesttechnologiesenteringthemarket.Ourpublicrelationsconsists
ofreleasingpressreleasesformajorproductannouncements,
handingoutexclusivesandloanerunitstoafewselectreportersand
columnists,andoccasionallywesignoffonaninterviewwithoneof
theseniorexecutiveswhenitsuitedthemarketingmessage.We
haveabudgetofonebilliondollarsayeartospendonpromotionof
theproducts.Advertisingpublicizessalesthataretakingplaceto
supportthepromotionsthataregoingon.Itisplannedthatwiththe
increasedbudgetfor2013therewillbemoreuseofbillboardsfor
Appleonhighwayswithmajorcommuters.Havingmoreproducttrials
willsupportoursalespromotionthoughwewillhavetohiremore
peopletodothetrials.Spendingmoneyonindividualsdoingproduct
trialswillsavemajormoneywhenhavingtofixcertaintechnical
issues.Usingmediatoadvertisewillcertainlybeakeycomponent.
Seeingasconsumerswillbeabletopurchasethewatchthroughour
website,wewillbeadvertisingwithadbannersonseveralofthetop
websitessuchasGoogle,Youtube,Facebook,Yahoo,andAmazon.
Oursalespromotionwillalsoaidinadvertisingthenleadingtosales.
Anotherfeaturewillbeinpopularmagazineswherepeoplewillview
thenextbestsmartwatch.

SpendingsonAdvertisement
Total:11Billion
Billboards

ProductTrials

Online

Magazines

1Billion

4Billion

5Billion

1Billion

AppleiWatchMarketingPlan26

Onlineiswhereconsumerswillmostcommonlyviewtheadvertisingresulting
inbasicallyhalfofthebudgetbeingdirectedtoit.Producttrialswillbe
expensivehavingtolettheproductbeoutwithoutsomepurchasingthem.
Billboardsandmagazineswillbeimportantwithlargepicturesandcatchy
phrasesthoughnotaskeyastheonlineandproducttrialadvertisingwillbe.

DistributionIssues

Pricing

OtherAppleProducts

AppleiWatchMarketingPlan27

Other:
CustomerSupportServices
AllApplehardwarecomeswithaoneyearlimitedwarrantyandupto
90daysofcomplimentarytelephonetechnicalsupport.Toextendyour
coveragefurther,purchasetheAppleCareProtectionPlanor
AppleCare+.BecauseApplemakesthehardware,theoperating
system,andmanyapplications,Appleproductsaretrulyintegrated
systems.AndonlyAppleCareproductsgiveyouonestopserviceand
supportfromAppleexperts,somostissuescanberesolvedina
singlecall.

AppleiWatchMarketingPlan28

Part5:Budgeting,PerformanceAnalysisandImplementation
CostofProductionvs.Profit
With50millioninvestedintothebudgetfortheiWatch,Applewillbeableto
usemanytestsintheefforttomaketheiWatchwiththesamesuperiorquality
thatAppleproductsareknowntohave.Themoneywillgointotestingthe
programming,creatingandputtingoutsurveysaswellastestingtheproduct
privatemarkets.AfterthenewlydevelopediWatchisperfectedwewilllaunch
averylargecampaignwiththegoalofsellingaround1,000,000unitsinthe
firsttwomonthsofitslaunch.TheSamsungGalaxyGearwasreleasedand
soldapproximately800,000unitswithinthefirsttwomonthsofreleaseand
withthemuchlargerpurchaseratethanSamsung,Applehasthegoalof
outsellingthe800,000markthattheGalaxyGearset.TheiWatchhasacost
ofabout$100toproducebyandwillbesoldat$249perunitleavingApple
withagrossprofitof$149periWatchbeforetaxesandothercostsare
removed.IfApplesellstheprojected1,000,000units,takinginto
considerationthatthereisabouta30.5%taxrateonAppleInc,therewillbe
roughly$100,000,000comingintothebusiness,thoughmoneywillbetaken
fordistributionandhandlingaswellasfurtheradvertisements.

TheMarketingBudget
Budget:
Applehasputaside$50millionforthelaststagesbeforetherelease
oftheiWatch.Roughly$6.25millionwillbeusedforadvertisementin
the2monthsprecedingthelaunch.Approximately$10millionwillbe
usedindevelopingadditionalfeaturestotheiWatchintheeffortto
makeitasappealingtothemarketaspossiblewhilestillkeepinga
reasonablepricetag.

AppleiWatchMarketingPlan29

Theabovechartshowstheamountofmoneyspentpermonthoutof
thebudget$50millionfortheiWatch.Marchwillbeourlargestmonth
ofspendingbecauseweaimathavingamassgroupofpeopleaware
ofourproductanditsfeatures.Monthtomonthwewilllowerthe
amountspentonadvertisingandbugfixesandgetsettobegin
advertisingforthenextgenerationofSmartWatches.InJanuaryand
FebruarywewillbeginadvertisingfortheiWatchandcontinuea
steadystreamofadvertisementsoverradio,television,internetand
prints.InMarchwewilluse$12.5Millionandnearlydoublethe
advertisementratebutwewillalsobespendingmoreonpublicfound
bugfixes.DuringApril,MayandJunewewillcutthebudgetinhalfto
$6.25Millionandkeepmakingmoreminorbugfixesandcontinue
advertisement.JulyandAugustwewillcutthebudgetinhalfonce
moreto$3.125Million.Inthelast4monthsoftheyear,thebugswill
befixedandthenewversionsofSmartWatcheswillbegettingready
forrelease.

AppleiWatchMarketingPlan30

Implementation:
Thiswillbecarriedoutbyateamcreatedspecificallychosen
tofocusdirectlyontheiWatchanditscompetition.Theteamis
comprisedofApplesmostdedicatedandtalented
employees.Theseemployeesmaingoalistoperfectthe
iWatchandsellittoalargenumberofpeople.TheiWatchis
Applestoppriorityandthisiswhyweonlyselectedthemost
dedicatedandtalentedworkersinthebusinessforthisproject.
Onegroupfromtheteamwillbededicatedtocreatingavery
detailedandinformingadvertisementplan/advertisements
themselves.Asecondgroupwillbeinchargeofthe
technologicalaspect.Theywillbefixingbugsandupdating
appsandotherfunctionsoftheiWatch.
Eachgroupiscomprisedofapproximately100people.James
FosteristheDirectorofEngineeringandisinchargeofthe
technologiesinvolvedintheiWatchandwillmaintainthe
products

Part6:AdditionalConsiderations
InternalFactors
Thereisapossibilitythatwecouldrunintoproductionissues.Withthe
watchbeingsoadvanceditisunknownastohowquicklytheywillbe
produced.TheiPhonewillcontinuetobesuccessfulsothereisnota
concernofthewatchnotsellingwiththephone.Fundingshouldnotbe
anissueeitherasitneverhasbeenforApple.
ExternalFactors
Thecompetitorwillasalwaysbeastrongissue.Samsungwill
continuetobeatbattlewithourproductsandwewillstillcontinueto
trytobebetter.Withtheassumptionthatthewatchwillbesuccessful
wedonotforeseetherebeingandsocietalissues.Thereishopethat
largecorporationswillseethewatchasausefultoolforeasy
communicationsotheywillpurchasethewatchinbulkorders.

AppleiWatchMarketingPlan31

ResearchLimitations
Therewereconcernsthroughouttheresearchthatthewatchwasnot
evengoingtobeexisting,therewereafewresearchlimitations
thoughnothingthatmadeitimpossibleforthereporttobeincomplete.

AppleiWatchMarketingPlan32

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AppleiWatchMarketingPlan33

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Appendix

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