Comprehensive Marketing Plan: Apple Inc. iPhone (UAE)

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This marketing plan report focuses on Apple Inc.'s iPhone product, outlining its strategies and tactics within the competitive IT industry, particularly in the UAE market. It begins with an executive summary, followed by a detailed company background, goals, and objectives. A thorough situational analysis, including a SWOT analysis, examines Apple's strengths, weaknesses, opportunities, and threats. The report then delves into the target market and marketing strategies, covering product, price, place, and promotion strategies. Marketing tactics, financial projections, and an implementation plan with monitoring and control mechanisms are also included. The plan aims to enhance Apple's market position and solidify its leadership in the mobile phone industry.
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Running Head: MARKETING PLAN 1
Marketing Plan: Apple Inc.
Executive Summary
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MARKETING PLAN 2
In today’s competitive business environment, each and every organization needs to create an
effective marketing plan to bring its new products and services to marketplace. It is an important
document of the organization that includes different information about the marketing and
promotion. The major objective of this report is to create a marketing plan for a well-established
organization, i.e. Apple Inc. The company has introduced various products like iPhones, iPod,
iPad, online services, Operating system, hardware, software and personal computers. This
marketing plan is prepared considering the iPhone product of company. Through this product,
the company is targeting different segments such as business professionals, adults, students etc.
The below marketing plan includes marketing strategy and marketing tactics for Apple
Organization. After implanting this plan, the company will be able to improve its position in IT
industry and to become a market leader in mobile phone industry.
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MARKETING PLAN 3
Table of Contents
Introduction......................................................................................................................................4
Company Background.....................................................................................................................4
Goals and Objectives...................................................................................................................5
Situational Analysis.........................................................................................................................5
SWOT Analysis...............................................................................................................................6
Strengths.......................................................................................................................................6
Weaknesses..................................................................................................................................6
Opportunities................................................................................................................................7
Threats..........................................................................................................................................7
Target Market and Marketing Strategy............................................................................................8
Product Strategy...........................................................................................................................8
Price Strategy...............................................................................................................................9
Place Strategy...............................................................................................................................9
Promotion Strategy......................................................................................................................9
Marketing Tactics..........................................................................................................................10
Financial Projections.....................................................................................................................10
Implementation and Controls........................................................................................................12
Implementation Plan..................................................................................................................12
Monitoring and Control.............................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................14
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MARKETING PLAN 4
Introduction
Marketing plan of an organization is a comprehensive document which outlines the marketing
and advertising efforts of company throughout the year. It allows the organizations to comply
with a structure to attain their predetermined goals and objectives. This report includes the
marketing plan for Apple Inc. In this marketing plan, there is the discussion about the marketing
strategies and tactics of Apple Inc. for its iPhone product in United Arab Emirates (UAE). The
organization has introduced this product to target the customers who require to store the data and
communicate and who want entertainment. The report conducts the situational analysis for Apple
by analyzing its internal and external factors i.e. strengths, weaknesses, opportunities and threats.
Furthermore, it includes the financial projections to analyze the performance of company in
smartphone industry. An action plan is created to implement and to monitor the marketing plan
for Apple iPhone in UAE.
Company Background
Apple is an American Multinational Corporation that was established in the year 1976. The
organization has introduced its products and services in the industry of software, hardware,
consumer electronics and digital distribution. In the year 1976, Apple was founded by Steve
Wozniak, Steve Jobs and Ronald Wyne. Currently, the organization is headquartered in
California, United States of America. In the beginning, this organization has started its business
operations with the name of Apple Computer, Inc. to produce and offer the personal computers
only. With the passage of time, it has removed computer from its name. This change indicated
the intention of Apple to expand its operations in other products including consumer electronic
market.
Currently, it has been offering various products and services such as iPhone, iPad, iPod, Smart
Watch, Apple TV etc. Moreover, it is offering some online services iTunes Store, iOS app store,
Apple Music, iCloud and Mac App Store. Apple is running its business operations in different
countries and making significant profits in information technology industry (Apple Inc., 2017).
At Apple, primary product segment is its iPhone smartphones. In the year 2007, the company has
launched the first generation of iPhone with various unique specifications. After its launch, the
firm has experienced a better growth in international market.
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MARKETING PLAN 5
Goals and Objectives
The major goal and objective of Apple Inc. is to keep on expanding their business operations in
current and new country markets. The organization wants to operate its business all over the
world with the strategy of enhancing the technological products. For this, it has introduced
various technological products for its customers by different channels of distribution. It would
like to continue with its current chain of products, for example iMacs and iPhones for their
clients. In the future, the organization wants to introduce more products which will assist Apple
to deal with the competition in the industry. Thus, main emphasis of the company is to focus on
extending its products on international level for personal computers, telecommunication and
technology products (Eason, 2014).
Situational Analysis
Situational Analysis is the process that is used by the organization’s managers to analyze the
internal and external environment of a company, so that they can understand the customers,
business environment and capabilities of organization. To conduct situational analysis, the
managers of an organization can use SWOT analysis that includes different internal and external
dimensions of company like strengths, weaknesses, opportunities and threats. However, Apple is
the strongest player in the smartphone industry but it has some weaknesses and threats which are
affecting the growth of its business (Battistella, 2014). The situational analysis of Apple is stated
below;
SWOT Analysis
Strengths
Modern Technology and Innovation
One of the major strengths of Apple is its innovation and adoption of advanced technology.
Apple Company is manufacturing its products by the use of updated technology and innovation.
IPhones of the company are prepared by including different innovative and unique features. It
has an innovative touch screen and has various functions of other mobile phones all in a single
device. The iPhone works with the iTunes, OS software tools and other Apple products that have
infinite potential for upgradability.
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MARKETING PLAN 6
Strong Brand Image
This organization has strong brand image in Information Technology industry due to the enticing
quality and design of products and services. Currently, the organization has proficiency in
hardware, software and other online services. This is the major reason behind its strong brand
image all over the world (Foo, 2014).
Customer Loyalty
By offering quality and innovative iPhones, this organization is able to make trust among
customers. There are various customers who only love to use iPhones. Thus, company’s brand
quality is able to develop loyalty among customers. Due to this, it has the ability to charge higher
prices for its products.
Weaknesses
Prices of iPhones
One of the major weaknesses of Apple Organization is the prices of its iPhones. The prices of its
smartphones are higher than other competitors like Samsung and Nokia. Still, the company does
not offer lower priced phones for its cost conscious clients. It has reduced the customer base of
Apple iPhones (Jenkins, Ambrosini & Collier, 2016).
User Interface
The products of Apple are not user friendly so people are facing various issues while using the
iPhones. Touch screen interfaces suffer from the issue of gorilla arm. It has affected the response
of customers adversely towards its products and services.
Decrease in Market Share
Market share of Apple Company started to decline in front of its major competitors such as
Microsoft, Samsung etc. Other organizations are offering the products with similar functions and
specifications at comparatively lower prices (Yeung, 2017). It has decreased the market share of
Apple in smartphone and Information Technology industry worldwide.
Opportunities
Strategic Partnerships
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MARKETING PLAN 7
It is one of the best opportunities for Apple in the Information Technology industry. In the
future, Apple can collaborate with several strong mobile phone firms to surge the market with
the iPhones. It will assist the organization in decreasing marketing costs and enhancing the
revenues via long-term deals (Hollensen, 2015).
Business Expansion to a new target segment
In addition to above, the company can reduce the prices of its products, i.e. iPhones and offer its
products to the cost conscious customer segment also. The organization can attract a new
customer segment by adopting technology advancement and reducing the prices of products.
Threats
Intense Competition
The major threat faced by Apple Organization is increased competition in smart phone industry.
Now, smart phones are very easy to make than ever. There are various organizations such as
Samsung, Nokia and Sony etc. which are offering similar products on comparatively lower
prices. There are many players which are planning to enter in this industry. It has an adverse
impact on the business of Apple organization (Weinstein, & Pohlman, 2015).
Downward pricing Pressure
As mentioned above, this organization is offering its iPhones on higher prices than its
competitors. The products of Apple are marketed as high end phone, but its prices are going to
fall when its competitors challenge the prices of iPhones. It has affected the revenues and profits
of organization smartphone industry. In this way, the above analysis indicates that Apple is on
one of the top ranks in the smartphone and information technology sector (Wagner & Eggert,
2016). However, the organization is facing some threats due to its pricing policy and competition
but still it holds a top position in the industry because of its strengths and growth opportunities. It
is competing with other players by using effective marketing strategies and tactics so that it can
stay competitive in mobile phone market.
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MARKETING PLAN 8
Target Market and Marketing Strategy
Before creating its marketing strategies, Apple Inc. will select a market segment to offer its
products and services. For iPhones, the company has divided its targeted audiences in two
segments i.e. primary target market and secondary target market. The company has targeted its
prime customers by considering demographic characteristics i.e. income and age of population.
This target market of the company includes the people of 30 to 55 years old who are from upper
and middle classes. These people are the reason behind the sales of Apple’s iPhones and
increased revenues. Moreover, it is targeting business professionals who utilize iPhones to
communicate with their family, colleagues and friends. Apart from this, the secondary market of
the company is teenagers and young adults (Kotler, 2015). Under this segment, organization
includes the students from high school and college who prefer to buy iPhones for entertainment
and communication purpose. These people purchase the iPhones to show off their social status to
their friends and social groups. To attract the above targeted population, Apple Organization has
adopted various effective strategies which are stated below:
Product Strategy
Under the product development process, Apple Organization is using effective strategy and
conducting market research to know about the needs and demands of customers. Due to this, the
organization is able to manufacture and provide perfect products according to customer needs
(McDonald, & Wilson, 2016). It keeps on enhancing and launching improved products like
iPhone, iPod, Apple TV, iPad, Apple Watch, Mac OS etc. This organization always makes
efforts to attract the public and its customers with its advanced and innovative products. In
addition to this, they are considering competitors’ offerings.
Price Strategy
Apple Organization is setting its prices on the basis of costs of production and manufacturing.
The technology market is becoming very expensive with the passage of time so suppliers sell
their materials at higher prices due to quality and advancement of materials. Apple is considered
as an expensive brand and still its customers are ready to spend their money on Apple iPhones
(Kanagal, 2015). However, the company is charging variable prices for its products according to
their features and functions. The company is able to maintain its brand image using premium
pricing strategy.
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MARKETING PLAN 9
Place Strategy
Apple Inc. has already expanded its business in various countries such as Europe, Asia, America,
Africa etc. It is engaged in enhancing of its stores which are located in Canada, UK and US. For
iPhones, the organization has adopted a strong place and distribution strategy. The company has
established its own stores and showrooms where the people can shop their iPhones. The products
of Apple are available on several e-commerce sites such as Flipkart, Amazon, e-Bay etc. In
addition to this, the organization has tied up with the independent stores. These stores provide
iPhones with other brands’ smart phones. They buy the products from distributors (Luttrell,
2015).
Promotion Strategy
Apple has established a unique and top position in smartphone and information technology
industry worldwide. Every model of iPhones has different tagline that attracts customers towards
this. For example, the tagline for iPhone 6 is “the only thing that has changed is everything”.
Additionally, it is using various modes of advertising to promote its products (Huang, &
Sarigöllü, 2014). To grab the attention of tech savvy customers, the organization is placing ads
on social media sites such as Instagram, Facebook and Twitter. It has been focused on
developing its relationships with targeted people.
Marketing Tactics
In addition to above marketing strategies, Apple Inc. is adopting some marketing tactics to
provide effective customer satisfaction while enhancing thee business to maximize the
promotion of its iPhones. Conducting marketing research is one of the most significant
marketing tactics of Apple iPhone that assisted the organization in reading the minds of
customers. The organization always considers the reviews from customers whether they are
positive or negative and make changes accordingly. It enhances the customer satisfaction
towards the products of Apple (Babin, & Zikmund, 2015). The firm is focused on designing the
customer experience not just a product. Following this thought, Apple has introduced iPhones
and approach of Apple’s interface created a legacy of exclusive experience which is difficult to
get in other mobile phones. Furthermore, Apple is continuously employees in research and
development department to understand their growth. The organization is using different surveys
and feedback system to get response of people towards iPhones.
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MARKETING PLAN 10
Financial Projections
To implement this marketing plan, the company will create a marketing and promotional budget.
This budget will be used to promote the iPhones among targeted population by the use of
different modes (Sedaghat, Sedaghat & Moakher, 2012). This budget for Apple Inc. is given
below:
Apple Inc.
Promotional Techniques Amount
(in $)
Social/Digital Media Marketing
1. Facebook $6,000
2. Twitter $7,000
3. Youtube $4,500
Total Social Media $17,500
E-mail Marketing $20,000
Online ads $6,500
Online promotional Campaigns $27,000
Total Budget for Online Media $53,500
Print Media
1. Newspaper $16,000
2. Magazine $25,000
Total Print Media $41,000
Traditional and Broadcasting Media
1. TV Channels $50,000
2. Hoardings $26,000
Total $76,000
Personal Selling $10,000
Sales Promotion $6,000
Direct Marketing $3,100
Total Budget for Marketing and Promotion $207,100
The break even analysis of Apple is assumed whole sale revenue of $700 per unit, variable costs
of 400 per unit and fixed cost of $60 million. The break even calculations of the company
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MARKETING PLAN 11
indicate that it will become very beneficial after the increase in the sales volume of 250K. It is
estimated that sales volume of the company will increase continuously till the year 2020. In the
year 2020, the operating profit of the company is estimated to $75000 million. The below-graph
shows the financial growth and projections of the company (APPLE, 2018).
The organization has been estimated that sales volume of Apple will be increased with the
introduction of new models of iPhone. It will decline the effect of fixed costs and enhance the
business opportunities to increase the production scale. Ultimately, it will enhance the revenues
and profits of Apple Inc. in long run.
Implementation and Controls
Under any marketing plan, it is one of the most important steps that assist in implementing the
marketing plan in practice. After implementation, Apple organization will evaluate and
implement control to different stages. The implementation and controls for the chosen
organization is stated below;
Implementation Plan
After the development of marketing plan, the organization will be implementing this marketing
plan in the process. In the implementation of this marketing plan, Apple Inc. will conduct a
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MARKETING PLAN 12
market research and analyze the needs and demands of customers towards mobile phones. Under
this activity, research and development department will play an important role. After analyzing
this information, the organization will manufacture the products accordingly (Shimp, 2008). To
offer its new products, it will develop its mission and objectives. In order to achieve a significant
market share, the organization will make efforts for effective implementation of this marketing
plan in practice.
Action Manager Responsible
Department
Time Frame
Conduct
marketing
research to
understand the
needs and
demands of
customers
Middle level
managers
Research and
Development division
3 Months
Analysis of data
gathered from
market research
Research and
development
managers
Research and
Development division
2 Months
Decision
making on new
product
development
(iPhones)
Senior managers Top-level
management
1 month
Establishment
of objectives
and mission
Board of Directors
and Top managers
Senior Management 1 Month
Implementation
of marketing
plan in practice
Marketing Managers Marketing, advertising
and promotion
department
3 Months
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MARKETING PLAN 13
Monitoring and Control
To monitor the effectiveness of marketing plan, senior level managers at Apple Inc. will
supervise all the actions of marketing plan. Before implementation, middle level managers will
take the approval from top managers. The head of marketing division will be responsible for
measuring and controlling the costs and report about needed variations in the plan. The
organization will create a team that will oversee the whole process of marketing plan
implementation. It will be reviewed on a regular basis (Sheth, & Sisodia, 2015). Under
controlling process, the mangers will be meeting with the Board of directors of Apple Inc.,
present the information and formulate the proposal for marketing and advertising efforts. Before
every meeting, the team will meet personally and tell them about the proposal. In this way, the
company can monitor and control the effectiveness of marketing plan.
Conclusion
From the above report, it can be concluded that implementation of marketing plan is an
important process for an organization. An organization can bring its new products and services to
the market by using marketing plan. Apple is one of the most popular organizations in IT and
telecommunications industry worldwide. The company is offering a variety of products and
online services. The above marketing plan shows that Apple is implementing effective marketing
strategies and tactics to promote its products and attract customers towards them. This
organization will be able to stay competitive by the use of this marketing plan.
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MARKETING PLAN 14
References
Apple Inc. (2017). About Apple Inc. Retrieved from https://www.apple.com/in/. (Accessed on 24
March 24, 2018).
APPLE. (2018). Apple (AAPL). Retrieved from
http://www.4-traders.com/APPLE-4849/financials/. (Accessed on 24 March 2018).
Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. UK. Cengage Learning.
Battistella, C. (2014). The organisation of Corporate Foresight: A multiple case study in the
telecommunication industry. Technological Forecasting and Social Change, 87, 60-79.
Eason, K. D. (2014). Information technology and organisational change. US, CRC Press.
Foo, F. (2011). Apple's iPhone leads Australia's huge smartphone growth. Retrieved from
http://www.theaustralian.com.au/business/technology/apples-iphone-leads-australias-
huge-smartphone-growth/news-story/1a34011cb7eba93850480fb9a47eb33f. (Accessed
on 24 March 24, 2018).
Hollensen, S. (2015). Marketing management: A relationship approach. UK. Pearson Education.
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer New York.
Jenkins, M., Ambrosini, V. & Collier, N. (2016). Advanced Strategic Management: A Multi-
Perspective Approach. 3rd ed. London: Palgrave.
Kanagal, N. B. (2015). Innovation and product innovation in marketing strategy. Journal of
Management and marketing research, 18, 1-25.
Kotler, P. (2015). Framework for marketing management. UK. Pearson Education.
Luttrell, R., (2016), Social Media: How to Engage, Share, and Connect. US. Rowman &
Littlefield
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MARKETING PLAN 15
McDonald, M. & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from
them. US. John Wiley & Sons.
Sedaghat, N., Sedaghat, M., & Moakher, A. K. (2012). The impact of promotional mix elements
on brand equity. American Journal of Scientific Research, 43(1).
Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the
future. UK. Routledge.
Shimp, T.A. (2008). Advertising Promotion and Other Aspects of Integrated Marketing
Communications. UK. Cengage Learning.
Wagner, S. M., & Eggert, A. (2016). Co-management of purchasing and marketing: Why, when
and how?. Industrial Marketing Management, 52, 27-36.
Weinstein, A., & Pohlman, R. A. (2015). Customer value: a new paradigm for marketing
management. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual
Conference (pp. 132-133). Germany. Springer, Cham.
Yeung, M. (2017). The marketing strategy of Apple: A concise analysis. Retrieved from
http://www.versiondaily.com/the-marketing-strategy-of-apple-a-concise-analysis.
(Accessed on 24 March 24, 2018).
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