This marketing plan discusses the objectives and strategies of Apple Inc. for their products. It covers the marketing mix variables and levels of products for Apple's smartwatch Series 4.
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Running Head: APPLE MARKETING PLAN Title Name Institutional Affiliation
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APPLE MARKETING PLAN2 CONTENTS APPLE COMPANY BACKGROUND................................................................................................3 Apple’s 2018 Sales Assessment:........................................................................................................3 1. MARKETING PLAN............................................................................................................................4 Objectives aligned with Potential Strategies....................................................................................4 Price....................................................................................................................................................5 2. BUDGET AND CONTROLS...............................................................................................................7 Brand Positioning..............................................................................................................................7 Budget Allocation..............................................................................................................................7 3. Marketing Mix Variables:....................................................................................................................7 Business Situation and Marketing Mix Strategies..........................................................................8 3. LEVELS OF PRODUCTS....................................................................................................................9 Apple smartwatch Series 4: Product Levels:...................................................................................9 Core Benefit:......................................................................................................................................9 Actual Product:....................................................................................................................................10 Augmented Product:...........................................................................................................................10 PRODUCT PRICING:............................................................................................................................11 Distribution..........................................................................................................................................12 Promotion.............................................................................................................................................13 Action Plan:.........................................................................................................................................14 References................................................................................................................................................15 APPENDIX..............................................................................................................................................17 A)BCG MATRIX.........................................................................................................................17 C)Promotional Budget for Social Media Marketing.................................................................18
APPLE MARKETING PLAN3 APPLE COMPANY BACKGROUND Apple Inc. is an American conglomerate, headquartered in California USA, which is renowned worldwide for its exclusive differentiated products such as iPod, iPhone, smartwatch, iOs, Macintosh, etc. The company was formed by Steve Jobs and Steve Wozniak in 1976. The formation of Apple stated by Boone & Kurtz (2013) was no less than a miracle as it brought a revolution in the then-dilapidated computer industry. The company as of today has more than 504 retail outlets in nearly 24 countries where it is meeting the changing consumer demands of its 1.3 billion users. In 2018 alone, the company's annual revenue reached to breathtaking $US 265.595billion of which $9 billion was generated from the meagre Australian population which constitutes just 0.33% of the total world's population (Khan, Alam & Alam, 2015). Apple’s 2018 Sales Assessment: Apple is a luxury brand. It is generally quoted that an Apple user is always an Apple user. This is because of its high speed iOS operating system which gives a unique user experience to its customers. In 2018, the company recorded its highest profit of which more than 82% was generated from the sales of its iPhones. iPhone sales in 2018 reached around 218 million units, and in Australia, only Apple's profit increased from $255.4million in 2017 to around $396.6 million (Johnson, Li, Phan, Singer & Trinh, 2012).
APPLE MARKETING PLAN4 1. MARKETING PLAN Objectives aligned with Potential Strategies According to Lehman & Hashlam (2013) At the same time that an organisation set up its promotionalmixandbegantounderstanditsfourPsplan:thing,location,cost,and improvement. Apple is to integrate goals and techniques for what it has planned to do and how to achieve the objectives. Apple Inc., pioneer of advertising on the Innovation Showcase, rarely progresses and points out its products, but it is hard. It concerns the movement arrangement to collect and achieve the goals. Product Chen et al. (2016) stated that Apple only produces premium products so that it can sustain the large market share and make a high profit from its premium pricing strategy. Objective 1- Keep on developing breakthrough products. With each product that brings something new and exciting to the world, Apple has made a name for itself to become a trend- setter. Strategy- Apple needs incredible teamwork and a solid, innovative workgroup so as to fabricate noteworthy items (Johnson et al., 2012). A lot of their work will be without benevolence and won't almost certainly limit the future potential for current achievement. Objective 2- The development for future innovation is continually changing to enhance andmanage,andeventhesignificantorganisationscanbedeserted.Thecustomerwill dependably purchase the following huge thing, and it is hard to accomplish brand dedication. Apple should hence keep driving the sergeant in the realm of advancement. Strategy- to excel in the product range the market study is vital for Apple and to also know what the customer wants next while making improvements after getting feedback.
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APPLE MARKETING PLAN5 Place Chen et al. (2016) stated that apple stocks almost in every corner of the world, which is why it is known to be a global business. Therefore the demand should also meet the supply. Objective 1- Extend across the global chain of Apple stores all inclusive. The Apple store represents most of the organisation's sells. In this manner, there must be more stores to expand sells generously. Strategy- Start setting stores in every single vast market and extend outward dependent on populace and request of items. Objective 2- Make items accessible in each other conceivable retail channel, ex. On the web, Big Box retailer. Despite the fact that the Apple store leads in sells, Apple must ensure it's items are available to each shopper since their interest is so high. Strategy- Spot items in each retail location that conveys electronic gadgets, all web-based business sites, and ensure cell phones are included on each expansive portable transporter. Price Chen & Ann, (2016) stated that there's a huge expense with every premium stamped thing. It is not unusual that the huge name indicates that the quality of these products is the most stupid expense. Objective 1- Enter the higher price estimate and continue with it while trying to collect the piece of cake. It will have no difficulty paying for them for whatever period of time that their items are first-line customers. It is important that this trade-off does not all disappear together to support the superior estimate. Strategy- To offset the difference in value, all items are deliberately priced at the highest point of market base cost depending on brand and quality.
APPLE MARKETING PLAN6 Objective 2- Increased revenue generally. Of course, your edges speak to the critical point of time even with a high-or-low idea of the market. In spite of your looks as a consequence of contenders, Apple has unbelievable edges but a low part of the company. Strategy- Continue to cut the cost of making products while at the same time supporting similar market retail costs. Promotion Chen & Ann (2016) stated that Branding could be the toughest test in every corporation. Literally, to start with nothing and make something that influences an enormous number of buyers. Achieving this is not working without brilliant display and progress procedures that Apple has absolutely demonstrated (Heracleous, 2013). Objective 1- Deploy advertising for new and future items to advertise. No advance preferred to get buyers to plan their next discharge. Despite its usefulness depending on the expectations of its past form, the next variant of each extraordinary item will surely be incredible. Strategy- Utilize yearly meetings and occasions before it achieves the market to declare discharges and data on each new item. This permits purchasers, before it ever hits the rack, to construct interest for the item. Objective 2- Maintain and expand the brand name strongly. In the tech world, there are no bigger names, and they can only grow as we move. As we look at phones and tablets, Apple has changed. Whoever says tablet, most connect the device to the iPad. Strategy- Be an innovator before rivalry and enter new things and exchange current things to a standard that is difficult to reach. You will not just shape your picture and guide the
APPLE MARKETING PLAN7 test unless you continue to develop designs, enter new items and take a lot of time to market (Lam, Ahearne, Mullins, Hayati & Schillewaert, 2013). 2. BUDGET AND CONTROLS Brand Positioning According to Lamet al. (2013), it was recently mentioned that the useful benefits of a brand are not the only way of empowering firmness by all means. Organisations are to fulfil the needs of customers with the eagerness to improve their brand awareness. It is also important that methods are chosen to deliberately convey these advantages to the target customers (Boone & Kurtz, 2013) Budget Allocation Most types of publicity and advancement include consuming money, and Apple has different distinctive things which need unambiguous thinking. Apple should, therefore, select the amount it unequivocally distributes to the Apple Watch. A segment of spending should talk about the unexpected, apart from getting ready for web advances and unconscionable advances. At the moment Apple's test should arrange its operations, Apple should be created to change the restricted strategy of its time, and to adjust the repeat of its progress. There is no other opposition in the astute grandstand. To counteract the test, Apple may need to change its message and brand identity. The expenditure that is put into effect most quickly speaks to a unique period of development alone for the Watch. 3. Marketing Mix Variables: a.Value proposition
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APPLE MARKETING PLAN8 Customer Value Proposition: Apple Watch Series, four customer value proposition, is its meaningful built-in speaker. With its 50% louder speakers than the previous series, customers can take calls on the go or talk to Siri with convenience. To reduce echoes while taking calls, the mic is relocated to the opposite side. This feature has redefined how a consumer interacts with a smartwatch incorporating eight complications together while at the same time ensuring 2x speed through its S4 chip and greater power efficiency than other brands. Apple’s CEO Tim Cook rightly calls the Apple Watch,“… the most personal device we have ever created.” Business Situation and Marketing Mix Strategies Apple Watch–Apple Watch does not hesitate to accept deals from loyal customers, despite solid challenges of different brands such as Samsung's wellness watch. For those who put resources into Apple's other product offers the ability to match with different gadgets is a crucial point. For their items, Apple uses premium prices. As a consequence of the advances and innovations in their products, customers agree to pay a higher price, which contrasts with various brands (Jackson & Ahuja, 2014). Apple makes its products better known with advertising and printpromotions,focusingonhowitsproductsareuniquetocompetitors.Business advertisements work if an item is propelled for the first time and printed promotions continue throughout the life of the item. Apple has strict rules on who can (appropriately) sell its items. Apple approves certain stores to sell its products to ensure power over dissemination. That makes the elite that can restrict its reach, but it also strengthens the top image of their objects (Osterwalder, Pigneur, Bernarda & Smith,2014).
APPLE MARKETING PLAN9 3. LEVELS OF PRODUCTS Product Overview: The Apple Watch Series 4 is Apple's most current smartwatch, reported being released on September 12, 2018 occasion in Cupertino, CA. The Series 4 watch incorporates an overhauled structure, with another showcase, a 30% bigger screen, and a dark artistic and sapphire gem back. The new watches additionally incorporate various wellbeing capacities, including pulse notices and the capacity to play out an electrocardiogram (ECG). Apple smartwatch Series 4: Product Levels: Beforetailoringthemarketingmixstrategyforanyproduct,itisimportantto comprehensively dissect its features on the Kotler's three levels of product (Becerra, Santaló & Silva, 2013). The in-depth knowledge of the core, actual and augmented features of the product would help in implementing targeted promotional and marketing strategies. Apple's Series 4 smartwatch, three product levels are enlisted below: Core Benefit: According to McGrath (2012), although the marketing of the product is not based on the core benefit, it offers still it is necessary to know about it. Core benefits don't offer any competitive advantage in marketing s as they are the same for all competitors. For Apple Series 4 smartwatch case its core benefits are the comfort in using a smartphone while travelling, exercising and sleeping. Apple's smartwatch like all other smartwatches helps in maintaining and tracking the health of a person through its calorie intake, calorie burn, and heartbeat monitoring features (Looney, Jacobson & Redding, 2011). The core benefits of Series 4 are most common in all.
APPLE MARKETING PLAN10 Actual Product: The actual product features are what differentiates a product from its market competitors. These are the features which are most highlighted in the marketing strategies. For Apple Series 4 smartwatch the actual product features are discussed below: Display: Series 4 has a 44mm display. Therefore, it is easier to use it because of more legible text, the ability to use more apps at the same time in a better way. Redesign Speaker:Series 4 has enhanced volume due to its redesigned stereo speakers. Almost 50% more than that of previous versions. Electrical Heart Sensor: Ability to determine the heart's electrical pulse to better gauge once overall health. Furthermore, one can take his ECG anytime anywhere simple by placing his finger on the watch's digital crown and can share it with one's physician. Augmented Product: These are the additional features and services offered to prospective customers with the product (Kahn, 2014). We intend to offer our customers 12 months of free after-sales service in order to capture our market target. In addition, there will also be free gift packaging, custom gift message,andfour-monthfinancialoptions.Thishelpscustomerstoeasilypurchasethe AppleSeries 4 smartwatches. The product presentation and packaging are an important selling point for Apple. Given that as described in the first assignment-the company aims to provide a customer who is willing to and able to pay more for the Apple brand and exclusive design, packaging must be presented accordingly. In Apple Watch, this is no exception. A white minimalist box, which has a major commercial role in the brand, gives the customer the feeling that his/her purchase is something special that will distinguish its owner from the multitude. And Apple Watch only includes basic
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APPLE MARKETING PLAN11 accessories as part of Apple's strategy (watch, power and charge cable adapter, bracelet and manual instructions). It allows users who only need the basics to begin using it, and forces others whowanttopurchaseanynecessaryaccessoriesmore.TheAppleWatchisyetagain distinguished from the majority of other smartwatch manufacturers that try to counter Apple by delivering value for money including many accessories such as transportation cases, additional bracelets, etc.. Apple offers even an extra basic product as the second year warranty. Since premium branding is not about the investment of the customer as far as possible, but about individuality and inclusivity. All else has to be purchased individually. PRODUCT PRICING: Although the setting of the value is constantly problematic because of its interest, cost interrelationships and various levels of rivalry, Apple is implementing a reasonable, separated advertising system that focuses on item appreciation, capacity and favourable conditions and allows the organisation to sell the article with edges significantly higher than its competitors. It's not Apple's cost manager(Beccera et al., 2013). The company had never used infiltration valuation to quickly take up the piece of paste, as Apple has learned, despite its almost higher estimate, how to become a pioneer in numerous sections shortly after its passage. What Apple does is some sort of "showcase skimming," or it ends up on the market with something more estimated than the challenge of increasing early adopters ' startup profit. An important difference, however, needs to be drawn here. In general, most companies that use a value skimming system will reduce cost after a while, as customers lose their intrigue or new products appear. Apple recently did it in a few events and with the lowest limits as it learns how to sell its goods at high costs over the majority of the item life cycle. The Apple Watch Edition has been evaluated at € 11.000, making the organisation unheard-of by trying to enter a new area that
APPLE MARKETING PLAN12 organisations without–or not a lot of mechanical foundations have ruled as of not long ago. Apple then becomes the primary mechanical organisation with an item in the watch extravagance section with a strong and innovative foundation, and the smartwatch has been advertised as an extravagant advertisement. In both cases, these distinctions allow Apple to value its articles without essentially having to attach them to the costs of the contenders. It is then clear that separation is also used as a value methodology by the organisation. If its image appears among many others, Apple customers should then be prepared to pay for an object which puts them in a decreased collection of those that have been chosen and taken to the table. Distribution Apple is now looking for a technology to put its items as close as possible to their target customer and the same number of spots. In each of the organisational deals, the Apple Watch can save space. Apple Stores are the immediate channel of business and are intended to convey apple commitment to structure and refinement as an organisation with an unmistakable focus on separation (Hill, 2012). Apple is located in the major urban areas or shopping centres and takes account of the compositional structure with transparent glass stairs or giant glass façades (similar to the one of the Apple Store on Fifth Avenue of New York). These stores can prove to be considerably more selective with the landing of Apple Watch in April 2018. Any customer who considers purchasing the gold Apple Watch edition can easily visit a room that isolated from the rest of the store. A representative of Apple offered him a singular exhortation, and somebody expects to give a potential customer a highly extravagant brand (Rosenbloom, 2012). The Apple shops that are held within the store of an accomplice organisation are also one of Apple's very own offers purposes. They allow the organisation, with a small amount of speculation needed for an apple store, to cover a much wider area.
APPLE MARKETING PLAN13 These areas of the Apple Shop are enhanced by the corporate image of the Apple Stores and offer the customer a similar item experience to the ordinary Apple Store at a little level. They can be found within Saturn or Mediamarkt in Germany. Apple Online Store, where the company offers its full portfolio of items, is one of the most rapidly developing deals, and enables customers to purchase online without paying extra transport costs when a basic request is reached. With the help of important strategic systems. The refurbished Apple Store, through which the organisation sells returned goods at reduced costs that can no longer be sold as new ones or goods from the client claims that have just been fixed, can be another, perhaps less well- known and advertised business channel. Promotion Apple has a large amount of cash to contribute to its items through numerous and varied phases. By agreeing to arrangements with other organisations (Apple Inc. + Nike Inc. to develop theNikeWellnessTracker),onTV,inspecificmagazines,announcements,multiple subterranean notifications, cable cars, and transportation, etc. Apple should reliably scan the right place where any special exercises can have the biggest effect. In item arrangement one of the areas in which the organisation can generally be extremely dynamic (Shankar,Carpenter & Farley,2012). Today there are many renowned shows in the USA in which a Mac, iPhone or more such a large number of characteristics can be seen on a screen. A few acclaimed news stories such as the notorious Apple Macintosh commercial, which numerous people regard as the best Super Bowl business ever, or the video arrangement in which Apple by chance derides Windows discomfort shows Apple's innovative approach to current affairs and its propensity for publicity and advertising with a deep impact on buyers ' assessors. The one of the most useful and
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APPLE MARKETING PLAN14 cheapest menthod of promotion os social media marketing and collaboration with Vloggers and Youtubers. In social media marketing apple can cater a mass audience in a lesser budget and time. A Quarterly social media marketing plan is shown in Appendix c. Action Plan: ActivityTo DosPerson ResponsibleAction Indicator Free SamplingCoordinatewith Vloggers MarketingSigned Contracts Productionof Sports Design Customised Bands Production team Creative team Getdesign fromcreative team Totalunit produced Bundle dealsCoordinate with distributors. OfferBundle pricingwith Iphone Trade Marketing Signed Agreements Roll out retailersDistributorsTotalnumber ofpurchased orders POP DisplaysCoordination with stores MarketingSigned Contracts SettingStalls, HoldingEvents and activities CreativeVisible products Interactive activities
APPLE MARKETING PLAN15 References Becerra, M., Santaló, J. and Silva, R., (2013). Being better vs. being different: Differentiation, competition, and pricing strategies in the Spanish hotel industry.Tourism Management, Vol.34, pp.71-79. Boone, L.E. and Kurtz, D.L., (2013).Contemporary marketing. Cengage Learning. Chen, C.M. and Ann, B.Y., (2016). Efficiencies vs. importance-performance analysis for the leading smartphone brands of Apple, Samsung, and HTC.Total Quality Management & Business Excellence, Vol.27(3-4), pp.227-249. Heracleous, L., (2013). Quantum strategy at apple inc.Organizational Dynamics, Vol.42(2), pp.92-99. Hill, M.E., (2012).Marketing strategy: the thinking involved. Sage. Jackson, G., & Ahuja, V. (2016). Dawn of the digital age and the evolution of the marketing mix.Journal of Direct, Data and Digital Marketing Practice,17(3), 170-186. Johnson, K., Li, Y., Phan, H., Singer, J., & Trinh, H. (2012). The Innovative Success that is Apple, Inc. Kahn, K.B., (2014).Product planning essentials. Routledge. Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of the internal and external environmentofAppleInc.InternationalJournalofEconomics,Commerceand Management,3(6), 955-961. Lam, S.K., Ahearne, M., Mullins, R., Hayati, B. and Schillewaert, N., (2013). Exploring the dynamics of antecedents to the consumer–brand identification with a new brand.Journal of the Academy of Marketing Science, Vol.41(2), pp.234-252.
APPLE MARKETING PLAN16 Lehman, G. and Haslam, C., (2013), December. Accounting for the Apple Inc business model: Corporatevaluecaptureanddysfunctionaleconomicandsocialconsequences.In Accounting forum(Vol. 37, No. 4, pp. 245-248). Taylor & Francis. Looney, H. F., Jacobson, M., & Redding, M. J. (2011).U.S. Patent No. 7,925,549. Washington, DC: U.S. Patent and Trademark Office. McGrath, M.E., (2012).Setting the PACE in product development. Routledge. Mohajan, H. (2017). An Analysis of BCG Growth Sharing Matrix. Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., (2014).Value proposition design: How to create products and services customers want. John Wiley & Sons. Rosenbloom, B. (2012).Marketing channels. Cengage Learning. Shankar, V., Carpenter, G.S. and Farley, J. eds., (2012).Handbook of marketing strategy. Edward Elgar Publishing.
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APPLE MARKETING PLAN17 APPENDIX A)BCG MATRIX Source: (Mohajan, 2017) B)Brand Architecture Source: (Khan, Alam & Alam. 2015)
APPLE MARKETING PLAN18 C)Promotional Budget for Social Media Marketing TOTA L% OF AMOU NT SPENT BUDGET% OF BUDGETQ1 CATEGOR Y BUDG ET BUDG ET TO DATE REMAINI NG REMAINI NGJANFEBMAR Content Creation $ 23,0006%$ 4,050 $ 18,95082%$ 1,800 $ 1,250 $ 1,000 Content Management $ 18,0005%$ 3,300 $ 14,70082%$ 1,100 $ 1,100 $ 1,100 Licensed Content $ 1,2000%$ 200 $ 1,00083%$ 100 $ 100 $ - Human Resources - Cost $ 110,00029%$ 27,375 $ 82,62575%$ 9,125 $ 9,125 $ 9,125 Advertisin g $ 86,00023%$ 22,500 $ 63,50074%$ 7,500 $ 7,500 $ 7,500 Promotion s $ 18,0005%$ 3,300 $ 14,70082%$ 1,100 $ 1,100 $ 1,100 Agency Fees / Retainer $ 26,0007%$ 5,940 $ 20,06077%$ 1,980 $ 1,980 $ 1,980 Hardware$ 14,0004%$ 2,200 $ 11,80084%$ 1,900 $ 300 $ - Software Licenses $ 11,5003%$ 10,000 $ 1,50013% $ 10,00 0 $ - $ - Graphic Design $ 46,00012%$ 7,600 $ 38,40083%$ 2,200 $ 2,600 $ 2,800 Video Production $ 24,0006%$ 13,500 $ 10,50044%$ - $ 6,500 $ 7,000 TOTALS$ 377,700 $ 99,965 $ 277,735 $ 36,80 5 $ 31,55 5 $ 31,60 5
APPLE MARKETING PLAN19 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC $-$10,000$20,000$30,000$40,000 $36,805 $31,555 $31,605 $- $- $- $- $- $- $- $- $- AMOUNT SPENT PER MONTH TO DATE Graphical representation of Amount spent per month to date % OF BUDGET BY CATEGORY Content Creation Content Management Licensed Content Human Resources - Cost Advertising Promotions Agency Fees / Retainer Hardware Software Licenses Graphic Design Video Production Graphical representation of % of budget by category