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  • 1. Marketing Strategy Industrial Technology Apple iPhone
  • 2. All Resource And Marketing Research Company
  • 3. All Resource And Marketing Research Company
  • 4. • Past Executive Summery• Present• Future The Past • Steve Jobs, Steve Wozniak and Ronald Wayne established Apple on April 1, 1976 in order to sell the Apple 1 Computer Kit that was hand built by Steve Wozniak. • The Apple 1 was sold as a motherboard (with CPU, RAM and basic textual video chips) – less than what is considered a personal computer today. • Apple was responsible for creating the desktop publishing market due to their innovative programmed, PageMaker and LaserWriter. • Between 1983 and 1996 Apple experimented with a number of failed consumer target products including digital cameras, portable CD players, speakers, video consoles and TV appliances. • Market share and stock prices decreased. In 2001, Apple introduced the iPod portable digital audio player. The product was phenomenally successful – over 100 million units were sold within 6 years.
  • 5. • Past Executive Summery• Present• Future The Present • January 2007, Steve Jobs, the CEO and Co-Founder of Apple, announces that Apple Computer Incorporated would now be known as Apple Inc. • He also reveals the long anticipated iPhone, a combination of an Internet-enabled smartphone and the iPod. • In June 2008, he announces that the iPhone 3G would be released in July 2008, this newer version added support for 3G Networking and assisted GPS navigation, among other things. • In July 2009 Another upgrade version the iPhone 3GS was released. The iPhone 3GS added a compass, faster processor, and higher resolution camera, including video • The latest released was in July 2010, iPhone 4 was released in whole world and change a new look from the old version. • The iPhone 4 has two cameras for Face Time video calling and a higher-resolution display
  • 6. • Past Executive Summery• Present• Future The Future Apple plans on focusing on satisfying personal consumer demands rather than merely fulfilling a demographic requirement as well as, improving performance and stability rather than introducing new features when releasing new versions of any product.
  • 7. Company Apple OverviewApple Timeline Jobs back as "interim Jobs became chairman CEO" in 1997 iPhone launched 6/29/2007 IBM released its first PC iPhone 3G hit market Founded (4/1/1976) 7/11/2008 Introduced Macintosh1975 1980 1985 1990 1995 2000 2005 2010 1/1/1977 - incoporated iApple ? Jobs left Apple iTunes unveiled by Steven Jobs & Apple was in trouble Steven Wozniak 1990s iMac released iPod went to life 2001
  • 8. Marketing Strategy Apple iPhone iPhone Profile
  • 9. • 2007 iPhone Profile• 2008• 2009 • 2007 iPhone2G• 2010• 2011 • 2008 iPhone3G • 2009 iPhone3GS
  • 10. • 2007 iPhone Profile• 2008• 2009• 2010 • 2010 iPhone4• 2011 • 2011 iPhone5
  • 11. • Maxis iPhone In Malaysia• DiGi • Maxis Malaysia • DIGI Malaysia
  • 12. • Maxis iPhone In Malaysia• DiGi • Maxis Malaysia
  • 13. • Maxis iPhone In Malaysia• DiGi • DiGi Malaysia
  • 14. Marketing Strategy Apple iPhoneIndustry Analysis
  • 15. Industry Analysis Market Factors Competitive Factors Environmental Factor
  • 16. Market Factors• Size• Growth• Stage in life cycle• Cyclicity• Seasonality• Marketing mix• Profits• Financial ratios
  • 17. • Size • Size• Growth• Stage in life cycle• Cyclicity• Seasonality• Marketing mix• Profits• Financial ratios • Growth  Sold 1 million iPhone 3G in first weekend in 2008  Sold 1 million iPhone 3GS in first weekend in 2009  Sold 1.7 million iPhone 4G in first weekend in 2010
  • 18. • Size • Stage In Life Cycle• Growth  One year• Stage in life cycle• Cyclicity• Seasonality• Marketing mix• Profits • Cyclicity• Financial ratios Source: http://en.wikipedia.org/wiki/IPhone_4
  • 19. • Size • Seasonality• Growth  iPhone will launch every July of the year• Stage in life cycle  Built a culture of iPhone sale• Cyclicity  World expect everytime iPhone launch• Seasonality• Marketing mix• Profits• Financial ratios
  • 20. • Size Marketing Mix - Product• Growth• Stage in life cycle• Cyclicity  Disk Storage• Seasonality • 16GB• Marketing • 32GB Mix• Profits• Financial  Colour ratios • Black • White (Special Launch)
  • 21. • Size Marketing Mix- Price• Growth• Stage in life  Mobile Data Plan cycle  Maxis Data Plan• Cyclicity• Seasonality  DiGi Data Plan• Marketing Mix• Profits  Apple Authorized Reseller Malaysia• Financial  16GB – RM 2849 ratios  32GB – RM 3249
  • 22. • Size Marketing Mix - Price• Growth• Stage in life cycle• Cyclicity• Seasonality• Marketing Mix• Profits• Financial ratios
  • 23. • Size Marketing Mix - Price• Growth• Stage in life cycle• Cyclicity• Seasonality• Marketing Mix• Profits• Financial ratios
  • 24. • Size Marketing Mix - Price• Growth• Stage in life cycle• Cyclicity• Seasonality• Marketing Mix• Profits• Financial ratios
  • 25. • Size Marketing Mix - Price• Growth• Stage in life cycle• Cyclicity• Seasonality• Marketing Mix• Profits• Financial ratios
  • 26. • Size Marketing Mix - Promotion• Growth• Stage in life cycle Commercial TV• Cyclicity • Advertising• Seasonality • Promotion Package• Marketing Mix Internet• Profits• Financial • Official Website ratios • Online Video Newspaper/Magazine • Advertising • Latest News
  • 27. • Size Marketing Mix - Promotion• Growth• Stage in life Commercial TV cycle• Cyclicity • Advertising• Seasonality• Marketing • IT Programme Mix • IT Product Recommend• Profits• Financial ratios ‘This changes everything. Again. ’ iPhone 4G
  • 28. • Size Marketing Mix - Promotion• Growth• Stage in life Internet cycle• Cyclicity • Youtube• Seasonality• Marketing • IT web site Mix • Apple Official web site• Profits• Financial • Online Magazine ratios
  • 29. • Size Marketing Mix - Promotion• Growth• Stage in life Newspaper And Magazine cycle• Cyclicity • Analysis iPhone Function• Seasonality• Marketing • User Behavior Mix • App iPhone• Profits• Financial • Latest Update OS ratios • New product launch • Test iPhone Report
  • 30. • Size Marketing Mix - Promotion• Growth• Stage in life Video iPhone Promotion: cycle• Cyclicity• Seasonality• Marketing Mix• Profits• Financial ratios
  • 31. Competitive Factors• Concentration• Power Of Buyers• Power Of Suppliers• Rivalry• Pressure From Substitutes• Capacity Utilization• Entries and exits
  • 32. • Concentration 4 Largest Market Share Firm• Power Of Buyers• Power Of Suppliers BlackBerry• Rivalry• Pressure From Substitutes• Capacity Utilization• Entries and exits Apple Smartphone Android Window Phone
  • 33. • Concentration Percentages of Market Share 2010• Power Of Buyers• Power Of Suppliers• Rivalry• Pressure From Substitutes• Capacity Utilization• Entries and exits
  • 34. • Concentration Power of Buyers• Power Of Buyers• Power Of Suppliers More powerful – Good Economics• Principle purchasers of the iPhone Rivalry• Pressure From Substitutes• Capacity Susceptible to price sensitivity Utilization• Entries and Alternative choices exits
  • 35. • Concentration Power of Suppliers• Power Of Buyers • Software• Power Of• Suppliers Rivalry • Interact in a compelling way.• Pressure From Substitutes • Barriers to entry• Capacity Utilization • Worry about integration from its• Entries and exits suppliers • Not beholden to the whims of powerful suppliers.
  • 36. • Concentration Rivalry• Power Of Buyers• Power Of Suppliers New Entrants• Rivalry• Pressure From Substitutes• Capacity Utilization• Entries and Bargaining Bargaining exits Power Of Rivalry Within Power Of Suppliers Industry Customers Threat Of Substitutes
  • 37. Environmental Factor• Technological• Economic• Social• Political• Regulatory
  • 38. • Technological• Economic Technological• Social• Political Latest Software• Regulatory • Most advanced mobile operating system Face time • 2 camera 2 view • Video calling is a reality Retina display • Highest-resolution screen Multitasking • Give everything undivided attention HD video recording • Shoot. Edit. Share. All in HD.
  • 39. • Technological• Economic Economic• Social• Political• Regulatory  Sell in the modern countries • high speed network coverage  Target audiences includes: • Young people (20-35 years old) • Affluent teenagers • “Mobile” employees (work outside of the office)
  • 40. • Technological• Economic Social• Social• Political Population growth leading to the expansion• Regulatory of cell phones sectors. People depend more and more on mobile communication everywhere. Social networking • Facebook, Twitter, Blogger and etc. Entertainment – App Store, Game Center, iPod and etc.
  • 41. • Technological• Economic Political• Social• Political All iPhones sold in Malaysia are• Regulatory fully factory unlocked, although iPhones purchased in Malaysia, similar to other countries, are only covered by a local warranty. This is unlike Apples other products such as Mac, iPod and iPad which have international warranties (iPad can only be serviced in countries where they have been officially launched). Apple is also try the best to keep the better living environment
  • 42. • Technological• Economic Regulatory• Social• Political  End user software licience agreement• Regulatory  iTunes Store terms and condition  Sales policies • Apple global online support site (AGOS)  Trademark, Copyright and Intellectual Property  Repair term and condition (AppleCare)
  • 43. Marketing Strategy Apple iPhoneCompetitor Analysis
  • 44. • Product Form Super Premium iPhone Competitors• Product Category Level Of Competition Definition Competition• Generic• Budget Product Form Super Premium BlackBerry Phone Android Phone Window 7 Phone Product Category Mobile Phone Nokia Sony Ericsson Samsung HTC LG Motorola
  • 45. • Product Form Super Premium iPhone Competitors• Product Category Level Of Competition Definition Competition• Generic• Budget Generic Laptop/Desktop HP/Toshiba/Dell PlayStation3 Sony Xbox3 Microsoft Television/Radio TV3/NTV7/Astro PDA/Table PC Samsung/Dell eBook/iPad Apple/Other Budget Pirated Mobile Phone Many Resident Phone Low Quality Mobile Phone IDD Calling Card
  • 46. Budget competition Generic competition Product category competition Product form competition
  • 47. Value Chain Analysis China – Shenzhen Assembly Facility Taiwan – Facilities of camera, circuitry, connectors, stainless casings US – SingaporeFacilities of touch – screen, Facilities of specific CPU, parts processing Source: http://www.shmula.com chips Supply Sales and Operation Distribution Service chain Marketing
  • 48. Comparison TableCriteria iOS - iPhone BlackBerry Window Mobile Android PhoneVideo Call Facetime - WiFi 3G Network 3G Network and 3G Network only MSNBluetooth Same Device All Device All Device All Device OnlyTouchscreen All Some Model All Almost AllEmail All All All AllInternet 3G and WiFi 3G and WiFi 3G and WiFi 3G and WiFiOffice Software View only View only Edit and view View onlyExternal Memory Nope Support Support SupportCard
  • 49. Comparison TableCriteria iOS - iPhone BlackBerry Window Mobile Android PhoneApp The Most Few Few ManyPricing High And Quality High And High And Quality High, Economics Economics And BudgetManufacturing Own Own Samsung, HTC Almost All BrandSupport In MarketSelling Point DiGi And Maxis All All AllSignal No Good Good Good Good
  • 50. Marketing Strategy Apple iPhoneCustomer Analysis
  • 51. Customer Analysis• Who buys and uses the product• What customer buy and how they use it• Where customers buy• When customers buy• How customers choose• Why they prefer a product• How they respond to marketing programs• Will they buy it (again)?
  • 52. Who buys and uses the product• 15-25 years High School and College aged people will demonstrate social uses. Example: Facebook, MSN…• 26-45 years This group will be used to determine business application and social/personal use. Example: Office, E-mail…• 46 years and above This group will give us a plan to market to more senior well-refined group
  • 53. What customer buy and how they use itSource:The Nielsen Company(http://blog.nielsen.com/nielsenwire)
  • 54. Where customers buy• Sale network completed in Malaysia• Quick and easy handover to customer• Sale with package data plan in price low• Control the quality sale service• Large customer in market
  • 55. When customers buy • Starting Year ( Jan – March ) A lot of new products will launch Too many compititor in market • Ending Year ( Oct – Dec ) A lot of product will be low price sale To clear the end year stock
  • 56. How customers chooseSource:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 57. Why they prefer a productSource: http://tech.fortune.cnn.com/2010/03/31/survey-android-surges-iphone-stalls/
  • 58. How they respond to marketingprograms• Good respond with the Maxis and DiGi with great sales iPhone.• Many mutimedia company summit their APP to Apple for iPhone.• Example: iBanking, iNewspaper, iMaxis• 600,000 IPhone 4 Pre-orders in One Day
  • 59. Will they buy it (again)? Source: The Apple iPhone: Successes and Challenges for the Mobile Industry, @2008 Rubison Consulting, Inc.
  • 60. Will they buy it (again)? Source: http://blog.wired.com
  • 61. Marketing Strategy Apple iPhoneMarket Potential And Sales Forecasting
  • 62. Market Potential and SalesForecasting Worldwide Mobile Communications Device Open OS Sales to End Users by OS (Thousands of Units) OS 2010 2011 2012 2015 Symbian 111,577 89,930 32,666 661 Market Share (%) 37.6 19.2 5.2 0.1 Android 67,225 179,873 310,088 539,318 Market Share (%) 22.7 38.5 49.2 48.8 Research In Motion 47,452 62,600 79,335 122,864 Market Share (%) 16 13.4 12.6 11.1 iOS 46,598 90,560 118,848 189,924 Market Share (%) 15.7 19.4 18.9 17.2 Microsoft 12,378 26,346 68,156 215,998 Market Share (%) 4.2 5.6 10.8 19.5 Other Operating Systems 11,417.40 18,392.30 21,383.70 36,133.90 Market Share (%) 3.8 3.9 3.4 3.3 Total Market 296,647 467,701 630,476 1,104,898 Source: Gartner (April 2011) Source: http://www.gartner.com/it/page.jsp?id=1622614
  • 63. Market Potential and Sales Forecasting Source: Garnes August 20116040 Symbian Android Research In Motion iOS20 Microsoft Other Operating Systems0 2010 2011 2012 2015
  • 64. Market Potential and SalesForecasting Source: Garnes August 2011
  • 65. Sales Analysis For iPhone All SeriesSource:http://money.cnn.com/galleries/2011/technology/1101/gallery.apple_sales/2.html
  • 66. Sales Analysis For iPhone All Series Source:Why Apple investors shouldnt sweat Android - Fortune Tech - By http://derrenster.posterous.com/
  • 67. Sales Analysis For iPhone All Series Source:Why Apple investors shouldnt sweat Android - Fortune Tech - By http://derrenster.posterous.com/
  • 68. Production Line For All iPhone
  • 69. Marketing Strategy Apple iPhoneDeveloping Product Strategy
  • 70. Key Of Sucessful Factor Consumer-oriented Factors Technology Marketing Skill and Distribution Capability ------------------- ------------------- ------------------- -------------------- - Internet driven - Well-know and - Value added - A strong network force well-respected (cheaper, faster, of wholesale - Replacing brand name more convenient distributors/ communication than the dealers - Market alternatives) tools segmentation - Fast introduction- Next generation - Design and and application of - Targeting and innovation experience Pricing services expertise effectiveness “This is a difficult industry, part of it is technology; part of it is fashion…”
  • 71. Element Of A Product Strategy • Statement Of Objective • Selection Of Strategic Alternative • Selection Of Customer Targets • Choice Of Competitor Targets • Statement Of The Core Strategy • Description Of Supporting Marketing Mix • Description Of Supporting Functional Programs
  • 72. Statement Of Objective• Our new product will focus in: Everyone can effort a smartphone Complete all function in a smartphone Never let behind the technology Customer First Service in good quality Make the life different Everyone Everyplace Online/Internet
  • 73. Selection Of Strategic Alternative • Follow past competitor experience we find out the local network of sale was the best way • But we will increase our corporate partner to all local company
  • 74. Selection Of Customer Targets• Our Target Market: 18 year old and below Let the smartphone become one of part study All can enjoy fun of internet Get the latest information Simple and easy 19 to 25 year old Easy and carry to online/internet Study or work in easy communication Fastest and easy network
  • 75. Selection Of Strategic Alternative• Our Target Market: 25-55 year old Work Group Need internet and smartphone to help in daily work Email and latest information as a tool to communication Everyway everyplace internet Share data or information Business and security safe network Fastest, quick and easy
  • 76. Selection Of Strategic Alternative• Our Target Market:  55 year old And Above Keep content to each other Get the latest information Easy and simple to use Family In one world
  • 77. Choice Of Competitor Targets
  • 78. Choice Of Competitor Targets• All the brand in market are competitor target• Never look down or miss any new brand into market• Accept any new idea and improve our product• Keep developer future function including only imaging
  • 79. Statement Of The Core Strategy • Cost/Price Strategy No different spec No different price Base from storage memory • Nonprice Strategy Setup APP center Add value for their smartphone by purchase APP
  • 80. Statement Of The Core Strategy• Quality One to one exchange in warranty period• Status and image High customer value• Branding ( 4E ) Easy Experience Economics Everyone
  • 81. Our Product - ePhone
  • 82. Our Product - ePhone
  • 83. Our Product - ePhone
  • 84. Our Product - ePhone
  • 85. Our APP Store• Over 10000 APP online• Every month got 1000 APP summit application• 80% will pass and release in APP Store. Cost register APP USD 9.99• 5 Major APP will been discount: Government Charity Education Research
  • 86. Our APP Store• Entertainment Game Music Video Info• Application  MS Office / Google Doc / Open Office  Flash Player / HTML 5.0  Support All Website
  • 87. Our Marketing Plan Place • All Local Network Price • 1TB – RM 2000 • 0.5TB – RM 1500 Promotion • Multimedia – TV / Newspaper / Magazine / Internet • Structure – Mall / School / Company / University Product • Executive – 1TB • Premium – 0.5TB
  • 88. Marketing Strategy Apple iPhoneSources Of Information
  • 89. Sources Of Information• Secondary Data  Internal Sources  Customer Communications  Consultants  Trade Press  Internet  Promotional Literature  Trade Associations  News Releases  Electronic Databases  Government  Business Press  10Ks  Patent filings  Annual Report  Local Newspaper
  • 90. Secondary Data Figure 1-0Source:Wikipedia, the free encyclopedia(http://en.wikipedia.org/wiki/File:IPhone_sales_per_quarter_simple.svg)
  • 91. Secondary Data Figure 1-1Data and referencesApples fiscal year ends in September.This means that Q1 includes the holiday season, which accounts for jumps in the data.The latest model of the iPhone has been traditionally released at the end of June (Original iPhone iPhone 3GS,iPhone 4)or July (iPhone 3G) each year, which accounts for the increased sales in Q4.For simplicity, the availability of a new model in the last days of Q3 is not shown graphically.1.↑ Apple Inc. (25 July 2007). Apple Reports Third Quarter Results. Press release. Retrieved on 2008-01-23.2.↑ Apple Inc. (22 October 2007). Apple Reports Fourth Quarter Results. Press release. Retrieved on 2008-01-23.3.↑ Apple Inc. (22 January 2008). Apple Reports First Quarter Results. Press release. Retrieved on 2008-01-23.4.↑ Apple Inc. (23 April 2008). Apple Reports Record Second Quarter Results. Press release. Retrieved on 2008-04-23.5.↑ Apple Inc. (21 July 2008). Apple Reports Record Third Quarter Results. Press release. Retrieved on 2008-07-21.6.↑ Apple Inc. (21 October 2008). Apple Reports Record Fourth Quarter Results. Press release. Retrieved on 2008-10-21.7.↑ Apple Inc. (21 January 2009). Apple Reports First Quarter Results. Press release. Retrieved on 2009-01-22.8.↑ Apple Inc. (22 April 2009). Apple Reports Second Quarter Results. Press release. Retrieved on 2009-04-22.9.↑ Apple Inc. (22 July 2009). Apple Reports Third Quarter Results. Press release. Retrieved on 2009-07-21.10.↑ Apple Inc. (19 October 2009). Apple Reports Fourth Quarter Results. Press release. Retrieved on 2009-10-19.11.↑ Apple Inc. (25 January 2010). Apple Reports First Quarter Results. Press release. Retrieved on 2010-01-25.12.↑ Apple Inc. (20 April 2010). Apple Reports Second Quarter Results. Press release. Retrieved on 2010-04-20.13.↑ Apple Inc. (20 July 2010). Apple Reports Third Quarter Results. Press release. Retrieved on 2010-07-20.14.↑ Apple Inc. (18 October 2010). Apple Reports Fourth Quarter Results. Press release. Retrieved on 2010-10-18.15.↑ Apple Inc. (18 January 2011). Apple Reports First Quarter Results. Press release. Retrieved on 2011-01-18.
  • 92. Secondary Data Figure 2-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 93. Secondary Data Figure 3-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 94. Secondary Data Figure 4-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 95. Secondary Data Figure 5-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 96. Secondary Data Figure 6-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 97. Secondary Data Figure 6-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 98. Secondary Data Figure 7-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 99. Secondary Data Figure 8-0Source: Does iPhone change everthing? , Spire Research and Cosulting 2010
  • 100. Secondary Data Figure 9-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 101. Secondary Data Figure 10-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 102. Secondary Data Figure 10-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 103. Secondary Data Figure 10-0• Trade press
  • 104. Secondary Data Figure 10-1
  • 105. Secondary Data Figure 10-0Source:Metrics Highlights, May 2010 By AdMob Mobile Metrics
  • 106. Secondary Data Figure 11-0
  • 107. Secondary Data
  • 108. Secondary Data
  • 109. Reference 1. Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/File:IPhone_sales_per_quarter_simple.svg 2. Copyright Canalys 2000-2011. All rights reserved http://www.canalys.com/pr/2011/r2011013.html 3. AdMob Mobile Metrics Highlights, May 2010 4. The Mobile Web Device Report, Netbiscuits, July 2010 5. The Mobile Web Device Report, Netbiscuits, Edition 1, February 2010 6. Sprire Research and Consulting Pte Ltd, http://www.spireresearch.com 7. Maxis http://www.maxis.com.my/personal/iphone4/landing.asp 8. DiGi http://www.digi.com.my/iphone/index.html
  • 110. The End
  • 111. Secondary Data
  • 112. Title
  • 113. Title
  • 114. Customer Analysis
  • 115. Apple iPhone Marketing Plan• Executive Summery• Situational Analysis• SWOT Analysis• Marketing Objectives• Marketing Strategy• Implementation• Budget• Control
  • 116. Title