MKTM033: Apple iPhone Business Plan Report, 2018/2019

This business plan analyzes Apple's iPhone, focusing on its marketing and sales strategies, financial feasibility, and operational plans. The plan examines the nature of the product, customer segments, pricing policies, and promotional strategies. It also includes customer analysis, communication methods, and distribution channels. The financial feasibility section covers funding, break-even analysis, and operational plans, including Porter's Value Chain analysis. The report delves into inbound and outbound logistics, marketing, sales channels, and customer service. Key people involved in the business and their roles are also outlined, along with quality management strategies. The plan aims to provide a comprehensive overview of Apple's business operations and strategic planning for the iPhone.

Running Head: Business Plan 0
Apple
Business Plan
11/14/2018

Business Plan 1
Executive Summary
Apple is the most popular and unique electronic brand in the world based in Cupertino,
California. Their products range from smartphones to personal computer to the operating
system to music players is all of the high quality, simplistic and innovative. It is one of our
most growing and most popular products are the Apple iPhone. The Apple iPhone, first
initiated on June 29, 2007, was the first cellular phone of its time to use a touchscreen to
cooperate with a computer tablet. The mission statement of Apple is mainly about its
products and technology and focuses on more factors i.e. fulfill social responsibility of the
society, serve to the people and deliver performance and value through technology. Their
vision statement is to enhance product quality, innovation, deep collaboration, and product
excellence. Their main objective is to become a market leader in the technology market,
expand sales to consumers, attain profit and maintain large market share as well as high-
profit margin. They should invest in the business as technology is changing rapidly and even
the biggest companies in the world. In the following, an effort has been made to discuss the
marketing and sales plan, financial feasibility, operational and action plan.
Marketing and sales plan
Nature of the products and mode of promotion
Apple iPhone is the only smartphone that has the only ability and capability to pay and
sustain in the market. Apple has numerous innovative features in one phone such as a 5 MP
camera with full HD video recording, wireless and 3G technology, video support, sensor and
location tracking. In addition, there are new features, which have enhanced the product such
as video recognition framework as Siri and iCloud. The hardware is improved to be
compatible with new applications being added, presents a package of values for business
specialists to regular phone consumer and gaming enthusiasts (Munoz, 2017).
The customer segments are students and middle age up to age approximately 50 including
both men and woman internationally. The main reason behind reaching a mass population is
their innovative features and services that connect with different people. The iPhone product
has “something for everybody”. It is noted that young adults are targeted who are willing to
pay on such items and enjoy having luxuries as it can hold the interest of consumers by
constantly upgrading the technology. They should promote its product through digital

Business Plan 2
marketing strategy as it can encourage customers by attractive promotional offers. It utilizes
innovative strategies such as online, mobile app, and social media in order to enhance
reputation in the market (Hansson and Mattsson, 2017).
Customer analysis and pricing policy
The customers chosen for the product are the repeat buyers, which are named as loyal Apple
users, as well as first-time users who lastly end up being Apple iPhone, loyal customers. They
are technology freak customers, which are ready to shell out extra money and replace the
older phones with the new phone having the latest technology and features. It will continue to
increase expectation and demand to attract consumers as technology is upgrading and
smartphones get cheaper, it will provide a great opportunity to induce them. The anticipated
sales over the first year would be 878 million which can be lead in the smartphone market.
Sales can be increased in festivals such as Diwali in which customers purchase more and
advantage can be gained (Giachetti, 2018). They should utilize a market skimming strategy
for the iPhone folding with the storage capacity of 64 GB is priced at $1491, which is $100-
200 more than the previous with more technology that is advanced and features. It enhances
the product line of generation of iPhone and gains a lot of respect and recognition from
customers to drive the sales of the products. It is an improved and upgraded version than the
previous iPhone generation, which is profitable for the company (Wagner, 2017).
Mode of communication
The communication medium to interact and connect with a customer should be paid
advertising which would be trade specific for the target audience. It could “Be smart and get
the iPhone, a product like no other”. Digital marketing advertising is anticipated to have an
immense growth period and they should use Integrated Marketing Communication Strategy
as a major source to reach its customers. Market intelligence can be maintained by doing
market research to enter into a new market or invest further into the existing market. They
should generate revenue by achieving a higher level of awareness of iPhone folding among
the targeted users so that market shares are higher in the entire global market can be
achieved. They should provide special offers to customers as in Diwali Mega Challenge
coupons can be given to them. They should provide a high-level service and suit the
customers’ needs and preferences. They should make online advertising by describing the
product feature and make customers fall in love with products by being memorable and
entertaining. They should advertise on magazines with some beautiful captions to display the

Business Plan 3
HD quality with an excellent camera. They should permit customers to imagine and think
while wondering what more can iPhone do (Reichhart, 2014).
Promotional Strategy
The iPhone folding is being distributed through the way of level of two and three channels. In
the initial stage, Apple distributes them in its own retail store with many of its other Apple
products. Then, they distribute the iPhone folding to other retail stores like Wal-Mart,
Amazon, and Flipkart etc. After that, customers are capable to make purchases online through
its digital store, Apple.com. This gives customers the ability and capability to buy products
online and make purchases digitally. The various combinations of distribution channels
enhance the exposure of revenue generation and product sales. The best sort of promotional
strategy can be used is product placement which induces customers to buy products
effectively. An integrated promotional strategy should be embraced to have an effective
promotion for the iPhone. They should especially target one single segment by which they
can generate sales and profit from all ages and income status. The only way for Apple to
reach to their customers is through their known customers and loyal customers, which can
increase sales and profit. They should give emphasis to the brand importantly, which connect
to the iPhone groundbreaking advantage and maintain on a regular basis to generate public
awareness (Zhou and Gupta, 2018).
Key people
The business plan should involve the key people who will work in the business are marketing
officer, finance officer, and operating officer. These people can help in managing a business,
building the brand, and attain profits for the future success. They should advance their
business idea, synchronize the department, and work according to that. They should build a
network and association, which can give benefit to the organization long-term future success
and development. They should capable to promote the products and services effectively and
efficiently. They should always deliver good customer service, which will help to generate
revenue and sales effectively. Communication and negotiation should be properly done with
potential investors, employees, suppliers, and customers. It will reflect the positive image in
the minds of the customers. They should motivate and lead the staff that will help to build a
good relationship and enhances productivity. They should maintain good networking and
effectively manage skills and capabilities to achieve the goals and objectives, which will
contribute to the success of the organization. They should collaborate and teamwork to

Business Plan 4
accomplish the objectives and possess the skills and capabilities to promote the product in the
market and satisfy the customer needs (Liu, Zhai and Chen, 2018).
Financial Feasibility
Equity, bank loan, and the financial institution will fund the company, which helps to raise
capital through the sales of shares in an organization. Equity financing helps to raise funds to
meet the liquidity requirement of an organization. Loans from banks can be opted for stock
inventory and providing credit to users. Banks and financial institution deliver financial
assistance to the organization at all stages of their life cycle (Du et al., 2018).
Break-even analysis
fixed cost $ 28,59,416
variable cost $ 350
sales price $ 425
break even units 38126
(Duncan and Whittington, 2018)
The break-even analysis is an important tool of profit planning of the new product
development in the organization. It helps to determine whether the new product sustains in
the market. If sales would be less than 38126 units than the organization suffers losses and if
sales are greater than 38126 than profit will be attained by the organization (Whitlow et al.,
2014).
Further details has been mentioned in Appendix
Operational Plan
Porter’s Value chain analysis
The components of the production process include inputs, which involves raw material,
components, and other material needed for the manufacturing of iPhone folding. Then, the
next component is the conversion process, which includes operations that converts inputs into
outputs. It also involves supporting activities comprises of purchase of raw material,
production planning, testing if iPhone folding product as all parts are properly working,
quality control, and storage of material. The last component is output, which involves
finished product as the manufacturing and processing have been done of iPhone folding
(Burgers, 2016).

Business Plan 5
Administrative finance infrastructure Legal, Accounting
Human Resource
Management Training, staff planning, personnel
Product and technology
Development R&D, process design, market testing
Procurement Supplier management, specification, funding
Value
Inbound Operation Outbound Sales & Servicing added
logistics logistics marketing less
Examples: Supply Examples: Examples: Examples: Examples: cost=
Schedules, Quality Maintenance, Delivery of Customer Education and profit
Control and packaging finished goods, management and training, and margin
And Invoicing Market research warranty
(Aggarwal et al., 2016)
Inbound Logistics
The Apple iPhone folding inbound logistics works with thousands of suppliers internationally
maintains a highly cultured supply chain management and fulfills the commitment of the
customers. Their main aim behind this is to improve economies of scale, maintain a
relationship with suppliers and scale of business operations (Khan, Alam and Alam, 2015).
Operations
Apple iPhone folding operation covers all segments and 123,000 employees, which involves-
Support
activities
Primary
activities

Business Plan 6
 Japan
 Europe: the Middle East, India, Africa, and other European countries
 Americas: South and North America
 Greater China: Hong Kong, Taiwan, and China
 It also involves the rest of the Asian Pacific: Australian and other countries (Shaw et
al., 2016).
Outbound Logistics
The outbound logistics includes distribution and warehousing of Apple iPhone folding
produced and manufactured by the company. E-commerce sales are progressively
administered by the organization as a massive source in respect of inbound logistics because
e-commerce is more cost effective as compared to sales (Funk, 2017).
Marketing & Sales
Apple iPhone folding sells and promotes its product through its seven sales channels, which
involves:
 Apple iPhone folding retail stores
 Apple iPhone folding online stores
 Wholesalers
 Retailers
 Direct communication network
 Third-party association
 Value-added resellers
Servicing
They should deliver exceptional quality of customer service during all the three stages, which
includes pre-purchase, during the purchase, and post-purchase. The organization should
maintain its service centers in major cities around the world where anyone can use its
products to become convinced about the quality (Boyd, 2015).
Manage Quality
The organization is well equipped with the best staff and personnel who guarantee continuous
production and manufacturing of quality and unique products. The quality of the iPhone
folding is depending upon the value chain. It is imperative that raw material can enhance the

Business Plan 7
quality by meeting market demands and increased production level. The quality can be
improved by understanding the customer needs and preferences and maintains
communication with the customers. It is important to meet the demand to enhance the
product’s quality perception. The quality is not defined by its tangible features but also by
intangible features as the demand is managed and maintained to keep the product more
fashionable. They should provide after sales service to users to keep their customers
connected and enhance customer satisfaction (Hunsaker and Thomas, 2017).
Outsourcing can benefit a new venture in maintaining profitability and success in the long-
term. It lowers the cost of production and manufacturing by redesigning the porter’s value
chain framework of the organization. The iPhone folding is a unique and innovative device,
which has a virtual distribution of data needed to have an outer prescriptive. They need to
ensure that raw material and components reach to their final consumers and all the orders are
delivered in a timely manner to their customers. Outsourcing can benefit in a manner that it
innovate the products and meets and exceed the expectations of the customers. It focuses on
customer service and a long mission and vision to achieve success in the organization (Froud
et al., 2014).

Business Plan 8
Management of financial record
The General Data Protection Regulation (GDPR), 2018 is a regulation in EU rules and law on
data privacy and protection for all people within the European Union. It also addresses the
distribution of personal data outside the European Union. The GDPR primary objective is to
provide control to people over their personal data. They need to collect data on individuals in
European Union countries and need to comply with strict rules and regulations around
safeguarding customer data. It is a code of conduct which let us know the way in which
businesses need to protect the data of their customers and clients because any breach of
financial and other qualitative data can lead to such issues which can be unhealthy for the
organization. As in developing a management information system, it needs to take care of the
data protection act. The software’s are not developed which cannot be easily accessible by
everyone. They have to build a local network by which data can be protected and maintained.
In the future development, privacy is the most effective and important factor which needs to
be taken care. It provides privacy laws with each administration and people have small
ownership of their online data, which permits the large organization to fulfill the customers’
needs and preferences. It makes it easier for customers to take a proactive role in retaining
and getting the correct information (O'Leary, 2015).

Business Plan 9
Action plan
Activity Time period (in
months)
Authority Objective of
Growth
Concerned
Department
Business plan
Initiation
2 month Marketing
Manager
The main
objective is to
maintain
profitability and
enhance the
number of the
product of the
company. There
is an increase of
productivity and
good customer
service, which is
a primary goal
towards success
and growth of the
company
(Hofmann and
Rüsch, 2017).
Marketing
Department
Market
Feasibility
15 days Research
manager
The main
objective is to do
a market research
and analyze
whether the
product is going
to sustain in the
market. Analyze
the demand and
compete in the
market that it is
feasible enough
to estimate the
market
conditions.
Research and
development
department

Business Plan 10
Financial
feasibility
15 days Financial
Manager
The main
objective is to
decide if the new
business line or
business venture
is possible. They
have to look at
their market
demographics to
decide if there is
actually a market
out there for the
new product
(Eicker and
Cilliers, 2017).
Finance Department
The hiring of
workforce and
experts
1 month Manager of HR The main
objective is to
hiring human
specialists for the
new product in
managing and
maintaining the
most important
asset of the
organization,
which can
improve and
enhance the
capabilities
(Peng and Liang,
2016).
Human Resource
Department
Planning of
Budget
2 month Financial
Manager
The main
objective is to
analyze the
financial
requirement for
Finance Department

Business Plan 11
the new product
and allocation of
resources in a
better and
effective manner.
This can enhance
the amount of
money each
department needs
to spend (Blenko
et al., 2016).
Start of the
production
process
2 month Head of the
production
The main
objective is to
provide the best
quality and
specialty
products to each
customer. It is
best to enhance
plans to
maximize
productivity and
monitor the
progress to make
a necessary
evaluation
(Mertens, 2018).
Production and
Manufacturing
Department
Purchase of
Equipment
2 month Production
manager
The main
objective is to
assemble the tools
and machinery
required to make
and innovate the
new product in
the organization.
It can improve
inventory control,
Production
Department