MKT600 Assessment 2: In-Depth Apple Inc. Marketing Plan

This report provides a detailed analysis of Apple Inc.'s marketing plan, focusing on the company's background, sales assessment, and strategic objectives. It explores various marketing plan elements, including product, place, price, and promotion strategies, aligning them with potential objectives. The report delves into Apple's brand positioning, budget allocation, and marketing mix variables, examining the business situation and corresponding strategies. It also analyzes the product levels of the Apple Watch Series 4, covering core benefits, actual product features, and augmented product aspects. Furthermore, the report addresses product pricing, distribution, promotion, and action plans, offering a comprehensive overview of Apple's marketing approach. The analysis incorporates SWOT and PESTEL frameworks to evaluate internal strengths and weaknesses, as well as external opportunities and threats. The report also includes sections on the BCG matrix and promotional budget for social media marketing.

Running Head: APPLE MARKETING PLAN
Title
Name
Institutional Affiliation

APPLE MARKETING PLAN 2
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 PLAN 3
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
265.595 billion 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 PLAN 4
1. MARKETING PLAN
Objectives aligned with Potential Strategies
According to Lehman & Hashlam (2013) At the same time that an organisation set up its
promotional mix and began to understand its four Ps plan: 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
and manage, and even the significant organisations can be deserted. The customer will
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.

APPLE MARKETING PLAN 5
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 PLAN 6
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 PLAN 7
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 Lam et 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

APPLE MARKETING PLAN 8
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
print promotions, focusing on how its products are unique to competitors. 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 PLAN 9
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:
Before tailoring the marketing mix strategy for any product, it is important to
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 PLAN 10
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, and four-month financial options. This helps customers to easily purchase the
Apple Series 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

APPLE MARKETING PLAN 11
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
who want to purchase any necessary accessories more. The Apple Watch is yet again
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 PLAN 12
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 PLAN 13
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
the Nike Wellness Tracker), on TV, in specific magazines, 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

APPLE MARKETING PLAN 14
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:
Activity To Dos Person Responsible Action Indicator
Free Sampling Coordinate with
Vloggers
Marketing Signed Contracts
 Production of
Sports Design
 Customised
Bands
 Production
team
 Creative team
 Get design
from creative
team
 Total unit
produced
Bundle deals  Coordinate with
distributors.
 Offer Bundle
pricing with
Iphone
 Trade
Marketing
 Signed
Agreements
 Roll out retailers  Distributors  Total number
of purchased
orders
POP Displays  Coordination
with stores
 Marketing  Signed
Contracts
 Setting Stalls ,
Holding Events
and activities
 Creative  Visible
products
 Interactive
activities

APPLE MARKETING PLAN 15
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
environment of Apple Inc. International Journal of Economics, Commerce and
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 PLAN 16
Lehman, G. and Haslam, C., (2013), December. Accounting for the Apple Inc business model:
Corporate value capture and dysfunctional economic and social consequences. 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.

APPLE MARKETING PLAN 17
APPENDIX
A) BCG MATRIX
Source: (Mohajan, 2017)
B) Brand Architecture
Source: (Khan, Alam & Alam. 2015)

APPLE MARKETING PLAN 18
C) Promotional Budget for Social Media Marketing
TOTA
L % OF
AMOU
NT
SPENT
BUDGET % OF
BUDGET Q1
CATEGOR
Y
BUDG
ET
BUDG
ET
TO
DATE
REMAINI
NG
REMAINI
NG JAN FEB MAR
Content
Creation
$
23,000 6% $
4,050
$
18,950 82% $
1,800
$
1,250
$
1,000
Content
Management
$
18,000 5% $
3,300
$
14,700 82% $
1,100
$
1,100
$
1,100
Licensed
Content
$
1,200 0% $
200
$
1,000 83% $
100
$
100
$
-
Human
Resources -
Cost
$
110,000 29% $
27,375
$
82,625 75% $
9,125
$
9,125
$
9,125
Advertisin
g
$
86,000 23% $
22,500
$
63,500 74% $
7,500
$
7,500
$
7,500
Promotion
s
$
18,000 5% $
3,300
$
14,700 82% $
1,100
$
1,100
$
1,100
Agency
Fees /
Retainer
$
26,000 7% $
5,940
$
20,060 77% $
1,980
$
1,980
$
1,980
Hardware $
14,000 4% $
2,200
$
11,800 84% $
1,900
$
300
$
-
Software
Licenses
$
11,500 3% $
10,000
$
1,500 13%
$
10,00
0
$
-
$
-
Graphic
Design
$
46,000 12% $
7,600
$
38,400 83% $
2,200
$
2,600
$
2,800
Video
Production
$
24,000 6% $
13,500
$
10,500 44% $
-
$
6,500
$
7,000
TOTALS $
377,700
$
99,965
$
277,735
$
36,80
5
$
31,55
5
$
31,60
5

APPLE MARKETING PLAN 19
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