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IPHONE FINAL PAPER.doc

  1. 1. Executive Summary . Apple’s iPhone competes in the wireless mobile industry, specifically with smart phone touch-pad devices. Its direct competitors are R.I.M’s Blackberry and Nokia’s ‘Nokia E71’, each holding leading positions in the worldwide smart phone market. Currently, Nokia and R.I.M have acquired 43.7% and 16.6% of the market share, respectively.1 Apple’s iPhone positioning in the market represents a meager 8.2% of smart phone sales and we intend to increase iPhone’s share beyond that percentile. Apple’s iPhone also currently lacks a specific target market, which could explain its low percentage in market share. However, a new communications strategy has been designed to penetrate the market within a new target audience. The campaign will be based around the iPhone’s enterprise attributes as we plan to move into the corporate market, a large segment formerly ignored. The objective is to gain mind and market share in the Canadian corporate segment quickly. To increase iPhone’s share within that sector, the ad campaign will focus on its key enterprise features that will appeal to corporate buyers. Situation Analysis . Internal Factors: Product strengths Apple’s iPhone is the most revolutionary multi-touch user interface in the world. Its product attributes include: 3G wireless technology; GPS mapping; support for 1 http://www.palminfocenter.com/news/7026/worldwide-smartphone-sales-grew-37-last-quarter/ 1
  2. 2. enterprise features like Microsoft Exchange; secure access to corporate intranets with Cisco IPSec VPN and the largest wireless voice and data network. iPhone delivers secure access to company-wide resources, corporate intranets, a variety of software, over 25,000 customization applications, a touch-screen-only interface and simple menus. Web Clips give quick, one-tap access from the Home screen to important menus. websites and web applications, while providing the fastest available connection to the web. Applications can be customized to any need, for example, to bring Apple's I-Chat videoconferencing software to the iPhone or to create simple programs so salespeople can get the latest information on every customer they are scheduled to see that day. With its premium price of $633.00, the iPhone’s sufficiently improved handset encourages consumers to upgrade on clever applications, thereby providing consumers with optimal convenience and technological connection. Product Weaknesses Apple’s iPhone has been criticized for having faulty batteries, high prices and too much focus on internal engineering instead of a specific market focus. This could explain why Apple’s iPhone does not hold a strong presence in the corporate sector like Blackberry does. Its enterprise infrastructure that was designed specifically for corporations is not marketed to the business segment effectively. Therefore, Apple recognizes this and intends to change consumer perception by highlighting iPhone’s enterprise-friendly features. Apple believes that this new target market will respond to enterprise-friendly the multi-touch interface as it is the most advanced software platform ever for a mobile and could improve efficiency within corporations. 2
  3. 3. Company Strengths Apple leads the IT industry with its innovativeness and engineering. Apple Inc. designs and manufactures their product assortment, i.e.: personal computers, software, peripherals, networking solutions, music players and iPhones. Their short and long term debt equal zero and their net income for the year from Sept.29/07 to Sept.29/08 was $4,834,000,000.2 Their longevity in the IT industry has set new industry standards in technological advancements. In fact, Apple’s iPhone “shows that most of its smart phone rivals, such as BlackBerry maker Research In Motion, Android maker Google and Microsoft, are still far behind in mobile software.”3 Furthermore, their consistent focus on the future of technology has proven to be a significant advantage for the company and gives competitors something to contend with. Company Weaknesses Apple has been criticized by some environmental organizations for not being a leader in removing toxic chemicals from its new products, and for not aggressively or properly recycling its old products. Stakeholders have criticized the amounts of chemical toxins found in Apple products; therefore the company stated that it will “completely “completely eliminate the use of arsenic in all of its displays by the end of 2008 and plans to reduce and eventually eliminate the use of mercury by transitioning to LED backlighting for all displays when technically and economically feasible.”4 The recycling of old products has only been recently introduced in the past decade, suggesting that the company may not be perceived as environmentally friendly amongst consumers. Apple recognizes these 2 http://finance.yahoo.com/q/is?s=AAPL&annual 3 http://adage.com/digital/article?article_id=135325 4 http://www.apple.com/hotnews/agreenerapple/ 3
  4. 4. issues and plans to apply their talents towards becoming an environmental leader and a ‘greener’ Apple. External Factors: Threats Apple is competing in a highly competitive, fast-moving industry as technological advancements are constantly changing. High product substitutions from competitors (i.e. Blackberry and Nokia) effect demand as Apple’s products are priced at a premium. Therefore, as price rises, consumers are more apt to substitute away from higher priced products, choosing less costly alternatives. These factors could negatively affect Apple, especially during economic downturns or uncertainties. Another issue is how Apple’s iPhone is perceived amongst consumers as certain companies may not see this product companies as being compatible with their software. However, Apple also sees this as an opportunity to demonstrate how the iPhone’s corporate infrastructure can, in fact be compatible with any organization. Opportunities Apple’s iPhone is a unique product relative to other wireless smart phones. Its creative applications leverage the multi-touch user interface with its encrypted access to private corporate networks. The new enterprise features have created a competitive advantage in respect to technological customization and convenience, giving Apple an opportunity to target a new customer base. Recently, Apple has undertaken the initiative to become an environmental leader and become a ‘greener’ Apple. Consequently, a cause-related marketing approach would best facilitate this goal as we plan to partner Apple with the David Suzuki 4
  5. 5. Foundation. Upon the purchase of an iPhone, 5% of monthly sales will go towards this foundation. This partnership will increase iPhone’s sales by aligning Apple with a charitable cause to influence buying decisions amongst the corporate sector, a market that was previously ignored. Communication Tools . Current Apple currently uses many communication tools to target their customers such as buzz, television, internet and print ads. Positive buzz is one of the strongest communication tools that a company could acquire as it creates discussion about the product, i.e.: word of mouth. Comments such as “the latest iPhone 3G phenomenon is definitely a great example of Steve Job’s pioneering vision, and the total package, including the pricing and the developer platform strategy, is very impressive”5 illustrate ideal reviews from consumers as this type of buzz could positively impact buying decisions or generate awareness. Television and internet ads are also very well-known and memorable as they demonstrate the ease of usage; variety of choice; animation technology, large storage and creative applications. Apple also uses catchy indie-rock music to draw attention to applications. iPhone’s colorful features, emphasizing the creativity of the touch-pad device. In addition, online chatter and internet ads for iPhone have dominated in social media. In fact, a social media services provider “measured conversation volumes around 2,000 brands on a variety of social-networking, blogging and micro-blogging sites”6 and the iPhone was the most mentioned brand. Therefore, this form of media has proven to be successful in creating awareness about iPhone’s advanced software. The last 5 http://www.bitsandbuzz.com/article/iphone-3g-1-out-of-3/ 6 http://adage.com/digitalnext/post?article_id=134180 5
  6. 6. form of media used by Apple is print ads, featured in various magazines throughout North America. Future Media tools such as television, print ads, internet and buzz will still be used for future advertising initiatives. However, a new approach will be used to change consumer’s perceived notion of the iPhone. Since our main objective is to increase mind and market share within the corporate sector quickly, advertisements will be more enterprise-friendly to appeal to corporate-tech buyers. The main message conveyed in the ad campaign is “iPhone your business” and “A touch of customization” to emphasize how new enterprise features can cater to any business need. Television commercials will be featured on business networks. Print ads will be featured in various business magazines to reach the target audience. Internet ads will be strategically featured on various business websites that are commonly viewed by corporate employees. Two new types of media are to be included: public relations, which will incorporate Apple’s eco-friendly initiatives and personal selling, which will enhance buyer-seller relations and informative seminars. In using these mediums, the aforementioned positive buzz should also encourage and support the promotional campaign; thereby setting Apple in a better market position that will appeal to corporate buyers. Promotional Opportunity Analysis . Competitive Analysis The Apple 3G iPhone was launched on July 11, 2008; it was brought in to directly compete in the Smartphone class of mobile phones. Since its launch the iPhone has 6
  7. 7. continued to grow, allowing it to compete with Nokia and Blackberry. Nokia began to produce the first line of Smartphone’s in 1966, and the Nokia 9000 dominated the market until Blackberry released the 5810. It was released on March 4, 2002. Ever since, there has been a battle for the market (see Figure A). A comparison of the strengths and weaknesses amongst Apple’s two main competitors in the smart phone industry (i.e.: Nokia and Blackberry) are illustrated below. Figure A 7
  8. 8. Blackberry Storm: Strengths: improved web browser; large memory-enterprise e-mail integration; Microsoft memory- Office document editing capabilities; High Brand Awareness; long lasting battery; high security; more multimedia features. Weaknesses: usability issues; difficulty in typing; many technical problems; lack of Wi-Fi Access; lack of frontal camera. The Blackberry Storm was created to directly take market share away from the Apple iPhone. With better music downloading capabilities, a touch screen, and a movie player, Blackberry realized that they were missing out on a large portion of the Smartphone market as they solely focused on business professionals. The Storm was brought to the market with much hype, even hiring John Krasinski from the hit show The Office to be a spokesperson. This hype however could not be lived up to as the product was seen to be flawed. Many reviewers said it was rushed into production and lacked the technical ability because of the rush. Many glitches were found and these hurt the original sales of the phone. Updates have been issued to fix glitches but the public has still not perceived the product as reliable. In fact, sales have decreased over the past year and Blackberry is currently working on a solution to the problems facing the Storm. Nokia E71 Strengths: slim design; excellent keypad; great connectivity; positive buzz; voted best phone Nokia has made; best D-Pad Weaknesses: poor camera quality; no touch screen; small screen with bad quality; Sluggish Sales; poor style; little outsider recognition. The Nokia E71 is the newest Smartphone to be released by the mobile phone giant. Although all the reviews of this phone were positive, sales in North America have 8
  9. 9. been sluggish with many business people not even considering it as an alternative to the Blackberry. Its main downfall is that it lacks some of the capabilities that the Blackberry and iPhone possess like multimedia functions, touch screen, carrier support and brand recognition. While this phone has huge sales in Asia the transition has been slower in Canada. Nokia is trying to fight this and has invested heavily in marketing to establish themselves as leaders in the industry. Opportunity Analysis Apple iPhone Strengths: ease of use; integrated iPod; high margins; industry favorite; high visibility; customization applications; new enterprise features. Weaknesses: touchy screen; poor camera; newcomer to industry. Opportunities: enter corporate market; market gap in competition; initiative to become an environmental leader in the IT industry; proposition of a partnership with a cause Threats: Direct and indirect competition in the smart phone market; economic uncertainties; recessions; highly competitive & fast-moving industry; high product substitution; price-sensitive consumers. The marketing of Apple’s iPhone is not clearly articulated to a specific target market. When analyzing opportunities, Apple certainly has the potential to name additional benefits that are enterprise-friendly to target the corporate sector. While Blackberry owns the majority of market share in the corporate world, Apple could also be a main competitor in this market by emphasizing one key aspect: customization of over 9
  10. 10. 25,000 applications. Applications could be made for any business venture needed, whether it be tracking sales, following a large number of stocks or storing large files of client’s information. The iPhone offers the most customization of any Smartphone in the market and while it is shown that one can play games or listen to music, it was interesting to note that business customization was not mentioned. The iPhone campaign recognizes this and plans to incorporate the new enterprise features in the overall advertising campaign to appeal to corporate buyers and gain market share within this sector. Target Market Analysis The target market is going to be business people that would benefit from being connected to the office from all over the world; this includes the corporate segment, i.e.: financial institutions, sales representatives, big business, corporate employees, etc) and more specifically, Chief Information Officers, as they decide what technology to buy for corporations. This sector would most benefit from the iPhone’s new enterprise features because the applications can be customized to satisfy any business need; thus marketing initiatives will be focused on the identified target market. The advertisements will be highlighting 3G wireless technology, enterprise features like Microsoft Exchange; secure access to corporate intranets. Apple’s iPhone campaign believes that the transition into the corporate market will be a successful one as the iPhone is compatible with any organization, especially if business users currently operate on Mac’s. The iPhone advertising campaign believes that the ease of use and the customization apps will appeal to corporate-tech buyers and hopes to secure a strong market position in the corporate world. With a new advertising theme focused on customization for organizations, iPhone’s campaign hopes to create positive buzz and 10
  11. 11. consumer preference from corporate buyers and CIO’s in hopes that approve the iPhone for employee usage. Consumer Analysis: Current Consumers Apple’s iPhone current consumers are tech-savvy wireless mobile users who are interested in the newest type of communication that technology has to offer. Most generation Y’s and Z’s purchase these wireless smart phones as these demographics are active consumers who are very connected and technologically inclined. The majority of these demographics are constantly connected through the use of technology, as today’s norm is a world of ubiquitous digital communication connectivity. Current iPhone consumers not only understand the multi-function device, but also consider the product to be ‘cool’ or ‘hip’ with respect to their social groups. Future Consumers The main objective is to increase mind and market share within the corporate sector quickly. Therefore, the iPhone ad campaign will target the corporate segment, i.e.: financial institutions, sales representatives, big business, corporate employees, etc) and more specifically, Chief Information Officers, as they decide what technology to buy for corporations. Since corporate buyers may not be aware of iPhone’s new enterprise features specifically designed for business use, promotional tools and mediums should aid in reaching the target audience. Positioning Analysis 11
  12. 12. The positioning of Apple’s 3.0 iPhones is an aggressive business and marketing strategy designed to continue stimulating consumer investment. The upgrades and applications encourage users to purchase additional applications and clever accessories that are mainly used as a social networking tool, gaming machine, web-browser and/or music player. Both R.I.M and Nokia are competing directly with Apple; however their smart phones are marketed to corporations. Apple’s iPhone is positioned to a more tech- savvy mobile user who is looking for the latest technology that provides optimal connection and convenience. However, the advertising campaign will position the the iPhone to target the corporate sector, an untapped market previously ignored by Apple. Communication Objectives The main communication objective for Apple’s iPhone is to increase market share within the corporate sector quickly. While current consumers consider the iPhone to be technologically ‘hip’ or ‘cool’, we are hoping to change perceived notions by promoting the new, revolutionary enterprise features specifically designed for corporations. Apple is hoping to build credibility with corporate-tech buyers by emphasizing how its model caters to their business needs. In doing so, Apple hopes to be a main competitor in the corporate segment, showing businesses that its company- wide resources and encrypted access applications are compatible with any organization. Apple is planning to focus on this unique product, emphasizing its multi-touch user interface with access to private corporate networks. B2B personal selling will satisfy this goal by emphasizing iPhone’s new enterprise features to the corporate sector. Through personal-selling and informational sessions, Apple believes the iPhone will transfer into the corporate market smoothly. 12
  13. 13. This new annual campaign is projected to increase sales within the corporate sector. As of now, Apple iPhone sales in the last quarter achieved an 88% growth rate, accruing $13.7 million for the year. Therefore, with new promotional initiatives and a new target market, Apple plans to achieve 90% growth rate in the same quarter next year. Apple believes the iPhone will make a successful transition into the corporate market, as optimal growth exists in that segment. Budget Analysis The budget will consist of the monetary outputs on television ads, magazine and newspaper, outdoor, online and personal selling. Print ads featured in magazines are more heavily weighted as they have a higher recall rate, reach the selected target audience and have a longer shelf life. In order to run a vast and efficient ad campaign, we will need a budget of 25 million. This figure is very reasonable, especially since Apple’s total advertising for last year was $483 million. In fact, the iPhone represented a considerable amount of total sales ($13.7 M); therefore it is foreseeable that 25 million could be put towards the iPhone campaign. For a detailed view, refer to Figure A for expenditures. Figure A 13
  14. 14. Primary Marketing Strategy . Target Market The desired target market for this campaign is the corporate segment, i.e.: financial institutions, sales representatives, big business, corporate employees, etc) and more specifically, Chief Information Officers, as they decide what technology to buy for corporations. The focus will be on how iPhone’s new enterprise features can be customized to satisfy any business need and how this touch-pad device is the way of the future. The advertisements will be highlighting 3G wireless technology, enterprise features like Microsoft Exchange; secure access to corporate intranets. Apple’s iPhone campaign believes that the transition into the corporate market will be a successful one as the iPhone is compatible with any organization, especially if business users currently operate on Mac’s. 14
  15. 15. Research proves that current buying trends amongst the corporate sector are more apt to purchase R.I.M’s Blackberry for business use. Therefore, Apple sees an opportunity to grow in this segment as the iPhone’s enterprise-friendly applications are much more compatible to any organization’s needs or wants. Although this move into the corporate segment is a new venture for the company, its new multi-touch interface user has the potential to secure a large portion of the corporate market share as Apple is constantly setting new industry standards. By generating awareness of the enterprise- friendly device, corporate-tech buyers may be more apt to purchase the iPhone for employee usage. Communications Schedule The communications plan will use a continuous and pulsating schedule meaning that it will advertise continuously throughout the campaign, with increased advertising during Apple’s environmental push in April. The campaign acknowledges this peak season to be at the beginning of April, leading up to ‘Earth Day’ on April 22nd. For a preview of the communications schedule, refer to Exhibit 9. During this eco-friendly push, tailored advertisements will be used to link the campaign to Apple’s environmental initiatives. For a preview of Apple’s ‘green’ advertisements, refer to Exhibits 2 and 5. These advertisements will link the enterprise benefits of the iPhone with an overall eco-friendly theme for our target audience during the month of April. Post-‘Earth Day’ advertisements will also have a green theme, linking Apple’s green initiative to our cause-related marketing approach. At the bottom of these ads, details regarding the partnership between Apple with the David Suzuki Foundation will be featured. Upon the purchase of an IPhone, 5% of monthly sales will go towards this foundation. 15
  16. 16. Furthermore, during the unspecified months of iPhone’s campaign, advertisements will continue to run in hopes of increasing sales amongst CIO’s and increasing market share within the corporate segment. Implementation Plan The iPhone campaign plans to run in five specific mediums: print advertisements, television, public relations, personal selling and outdoor advertising. These forms of media are the optimal approach, as various advertisements will be strategically placed to reach the target market. Print advertisements have a higher recall rate and reach the selected target audience much better than television. Therefore, print ads will be weighted more heavily than television for this campaign. In addition, pubic relations will be used to promote Apple’s green movement towards becoming more eco-friendly; while personal selling will offer instructional demonstrations and encourage repeat business through visits to various organizations. Outdoor advertising will be featured on billboards and public transportation. “iPhone Your Business” and “A Touch of Customization” are the two main iPhone slogans that will be displayed on all television and print advertisements. These slogans will create a consistent, sound message throughout; in hopes of obtaining a memorable campaign. Overall, numerous print ads will be produced, two television commercials will be created, PR initiatives will be featured in product packaging, personal selling will occur with CIO’s and eighteen billboards will be produced in large Canadian cities. The theme of the campaign is based on iPhone’s overall message: how the iPhone can customize to any business needs; therefore key product attributes are shown to appeal to corporate buyers. The ads will also include a conative message strategy to induce action and promotional support through Apple’s eco-friendly initiatives. Certain ads are focused on Apple’s ‘green’ movement to support their leadership in 16
  17. 17. removing toxic chemicals from its new products, and properly recycling its old products. This conative message strategy is essential for this campaign as it will promote support for a cause, while also highlighting the benefits of enterprise features. In addition, online advertisements will be featured on the following websites: addition nline ‘Toronto stock exchange’, ‘Chartered Accountants of Canada’, ‘Financial Management’ ‘Chartered and ‘Canadian Professional Sales Association’. These specific websites were chosen as they will reach the corporate segment, (i.e.: financial institutions, sales representatives, big business, corporate employees, etc) and more specifically, Chief Information Officers, as they decide what technology to buy for corporations. Ten million views have been purchased on each aforementioned website, resulting in a total cost of $600,000. Online ads are a valuable part of the advertising campaign as this initiative creates awareness amongst forty million new customers; a small expense for such large exposure. Since these websites are viewed quite frequently, a continuous schedule will be used to advertise the iPhone. The iPhone ads will be strategically placed on the top or sides of the websites, drawing attention to its enterprise-friendly attributes. This form of advertising is cost-effective, quick and is done with ease when introducing or changing new product information. Print Advertisements Apple’s iPhone ad campaign will design and implement numerous print ads. The ads will show iPhone’s customization applications, along with references to using eco- 17
  18. 18. friendly products such as Apple’s. Print ads will be featured in magazines and newspapers, thus having a better chance at reaching our target market of certain business professionals. The chosen magazines are: MacLean’s, Canadian Business and Strategy magazines; mainly because they had the most reach thus being the most effective. Each magazine will include print ads of the iPhone’s customization applications, as well as references to Apple’s approach to becoming more eco-friendly. MacLean’s is quite popular amongst business readers, with a readership of 2.5 million. It is one of the largest magazines in Canada and represents a vast amount of the target audience. The iPhone ads will be featured by region, thus allowing for increased advertising in metropolitan areas, such as Ontario and Alberta. Ads will also be featured in three full sized, color ads, each containing 52 printings for a total of 4,979,520$.7 Refer to Exhibit 1 for an outline on total costs of print ads. The Canadian Business is the secondary source of marketing as it has a readership of 985,000 and also aids in reaching the target market. iPhone print ads will be featured on three full sized color ads, eighteen times a year. Total costs for advertising in this magazine amount to 817,830$. Furthermore, the Strategy Magazine is a third source of advertising as it is a new up and coming magazine focused at young professionals entering the business world. Since this magazine is fairly new, ads are priced much lower at $4,260; while readership is only 500,000. The iPhone campaign will feature 12 publications at three ads per publication, amounting to 153,360$.8 7 Rogers Publishing 8 www.strategymag.com 18
  19. 19. Overall, the total expense of advertising in the aforementioned magazines costs $5,957,010$, which represents 24% of our overall budget and should effectively reach our identified target market. In addition to magazines, print ads will also be featured in newspapers. Eighty- five percent of business professionals (i.e.: target market), reach the business section of at least one newspaper during the course of a week thus providing the perfect platform to advertise iPhone’s key enterprise features. The Newsprint allows for optimal flexibility, giving options on contractual agreements on frequency and location of ad placements. Full color ads in the newspapers of the large cities like Toronto, Montreal etc. run on average 4,500$9 a week; while smaller cities like Halifax and Saint John roughly cost 1,500$10 for the same ads. Furthermore, iPhone’s ads plan to be featured in high profile newspapers, such as The Globe and Mail and the Toronto Sun. For a detailed outline on costs of newspaper ads, refer to Exhibit 1. Television Television advertisements will demonstrate how iPhone’s key enterprise features will benefit and create value for any organization. Estimated production costs for a 30 second TV spot is approximately $100,000. For an outline of specific costs, refer to Exhibit 1. BNN (Business News Network) will be used as our main source of television as it holds a viewership of 760,000/week and is also the largest business station in Canada. Therefore, this is the most ideal network to advertise on as it has an extensive reach to our target market. Advertisements will run during workdays (9am-6pm) as most stock brokers have televisions in their offices to monitor stocks and current economic trends, 9 www.torontosun.com 10 www.telegraphjournal.canadaeast.com 19
  20. 20. therefore these ads would effectively reach this type of corporate employee, as well as Chief Information Officers as they decide what technologies to purchase for corporate use. Details on total expenses for television advertising are outlined in Exhibit 1. Two types of commercials will be produced: one focusing on enterprise features and another focusing on Apple’s eco-friendly movement. The television schedule is on a pulsating agenda, with commercials flighting at peak advertising times. Increased advertising will occur at the beginning of April, leading to April 22nd which is ‘Earth Day’. This coincides with Apple’s ‘green’ movement to support their leadership in removing toxic chemicals from its new products, and properly recycling its old products. Furthermore, the cost of advertising on BNN amounts to approximately 4 million, thus, 40 ads will be placed throughout the annual schedule. Public Relations The strategic partnership with the David Suzuki Foundation helps to bring environmental sustainability to the forefront of public opinion. To accomplish such corporate goal, Apple will donate 5% of monthly sales to the David Suzuki Foundation. Along with the donation, Apple will be placing inserts in the packaging of its product with full details surrounding recycling procedures for their electronics; including where they can be sent to be disposed. These inserts will cost 100,000$. Moreover, this initiative will this be linked to a “Greener Apple” which is Apple’s environmental campaign to promote its push to become more eco-friendly. Furthermore, this type of promotion links Apple with a cause, thereby creating an enhanced brand image which could influence buying decisions amongst potential consumers in the target market. 20
  21. 21. Personal selling B2B personal selling allows for instructional demonstrations and encourages repeat business through visits to various organizations. This type of promotional tool will be used more heavily in the iPhone’s campaign as marketing initiatives are directed to large organizations. B2B personal selling is vital in the campaign as we forecast large sales from big businesses (i.e.: financial institutions, sales representatives, big business, corporate employees, etc). Apple’s field sales people will be able to provide some push on the product’s key enterprise features, while offering companies the choice of a trial purchase. This form of selling will hopefully lead to long-term relationships and continued business that will benefit both parties. Outdoor Ads Additional uses of advertising are public transport banners and billboards. Public transport banners will be featured on busses, subways and taxis; allowing the commuters in our target market to see ads on their way into the heavily populated cities. Prices range depending on size and range, thus $2 million is projected to cover costs and fees for cab companies, public transport companies and subways. The use of billboards is the final aspect in the promotional phase. Billboards will be featured in high profile Canadian cities such as: Toronto, Ottawa, Montreal, Vancouver, Calgary and Edmonton. With an average cost of $100,000 per placement, three billboards per city will be used, totaling $1.8 million dollars. The billboard signs will be placed in high visibility areas in the middle of high traffic routes within the downtown area. This form of advertising will greatly increase visibility amongst downtown 21
  22. 22. commuters, who in fact, represent a large majority of the target market: corporate segment. Evaluation of Implementation Plan The control of implementation is significant to Apple in order to ensure that the iPhone campaign is utilized effectively and efficiently from start to finish. Measurable results can be drawn from P.A.C.T: concept testing, sales response rates and comparison to PR objectives. Multiple measures will be used to allow for more precise evaluation of our ads and overall campaign. A series of these tests will analyze how clear our message is amongst a cluttered marketplace, while also testing consumer interest and attention in developing long-term bonds with key publics and stakeholders. One way of determining which advertisements will be most successful is by using a behavioral measure, such as concept and copy testing. Concept testing will be done prior to ad development by using an outside market research consulting group as this will minimize biases or misleading results. The consulting firm will be responsible for conducting 5 different focus groups that contain ten occupants in each. The members of these groups will be randomly selected from individuals with characteristics similar to that of our target market: corporate segment. The goals of these focus groups will be to determine the effectiveness of the message and its meaning from iPhone’s campaign. Since the iPhone is being sold in a B2B situation, a toll-free number and contact name would be important to provide to help the vendor discover who is performing functions in the buying center. Consequently, a toll-free number provides sales data to determine which marketing program is the best and can also be used to generate valuable consumer information. Knowing what types of corporations or organizations are responding to the iPhone campaign will help Apple better understand its customers. This 22
  23. 23. knowledge will also help in analyzing the best approach to reach the identified target market. The last method involves the PR piece in comparison to Apple’s PR objectives. Evaluation includes developing an index of awareness before Apple’s eco-friendly initiatives in April. Following the environmental push, awareness is measured a second time to see if it actually increased. This evaluation is important as Apple hopes to build a positive image due to past criticism of its lack of environmental concern. The overall goal of this evaluation is to see if Apple’s image changed, and if so, to what degree. Although this approach is time consuming and difficult, Apple feels it is important to address stakeholder concerns. Overall, these methods are based on how effective and efficient iPhone’s advertising campaign is. These key components will help in setting standards and measuring performance, thereby becoming Apple’s model of marketing the iPhone to corporate buyers and CIO’s successfully. Exhibit 1 iPhone Budget 23
  24. 24. Advertising Method Cost Per Ad Total Potential Reach Print Ads MacLean’s 31,920$ 4,979,520$ 2,500,000 Canadian Business 15,145$ 817,830$ 985,000 Strategy Magazine 4,260$ 153,360$ 500,000 Newspapers 1,500-4,500$ 2,600,000$ 7,000,000 Public Relations - 100,000$ Sales of iPhone Television Ads BNN 100,000$ 4,000,000$ 750,000 Online - - - Personal Selling 1,500$ 600,000$ 40,000,000 Outdoor - Public Transport - 2,000,000$ Billboards 100,000$ 1,800,000$ - Total Cost of iPhone Campaign $17,050,710 40,000,000 Exhibit 2 24
  25. 25. Exhibit 3 25
  26. 26. Exhibit 4 26
  27. 27. Exhibit 5 27
  28. 28. Exhibit 6 28
  29. 29. Exhibit 7 29
  30. 30. Exhibit 8 30
  31. 31. 31
  32. 32. Exhibit 9 key: BNN January February March April S M T W S M T W S M T W S M T W T F S T F S T F S T F S 1 2 3 4 1 2 3 4 1 1 2 3 5 6 7 5 6 7 2 3 4 4 5 6 7 8 9 10 11 8 9 10 11 5 6 7 8 8 9 10 12 13 14 12 13 14 9 10 11 11 12 13 14 15 16 17 18 15 16 17 18 12 13 14 15 15 16 17 19 20 21 19 20 21 16 17 18 18 19 20 21 22 23 24 25 22 23 24 25 19 20 21 22 22 23 24 26 27 28 26 27 28 23 24 25 May June July August S M T W S M T W S M T W S M T W T F S T F S T F S T F S 1 2 3 1 1 2 4 5 6 2 3 4 1 3 4 5 6 7 8 9 10 5 6 7 8 2 3 4 5 7 8 9 11 12 13 9 10 11 6 7 8 10 11 12 13 14 15 16 17 12 13 14 15 9 10 11 12 14 15 16 18 19 20 16 17 18 13 14 15 17 18 19 20 21 22 23 24 19 20 21 22 16 17 18 19 21 22 23 25 26 27 23 24 25 20 21 22 September October November December S M T W S M T W S M T W S M T W T F S T F S T F S T F S 1 2 3 4 1 2 1 2 1 2 3 5 6 7 3 4 5 3 4 5 4 5 6 7 8 9 10 11 6 7 8 9 6 7 8 9 8 9 10 12 13 14 10 11 12 10 11 12 11 12 13 14 15 16 17 18 13 14 15 16 13 14 15 16 15 16 17 19 20 21 17 18 19 17 18 19 18 19 20 21 22 23 24 25 20 21 22 23 20 21 22 23 22 23 24 26 27 28 24 25 26 32

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