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Chelsea Martin & Susanne Rattay, March 2012
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IMC Plan• Executive Summary• Situational Analysis• 4 P’s Brand Extension iKey• Product + SWOT Analysis • Price & Place• Promotion
• Objectives• Promotional Mix + Strategies
• Budget• Future suggestions• Implementation + Control
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Apple Inc.
Executive Summary:PAST: Founded April 1976 by Steve Jobs, Steve
Wozniak & Ronald WayneSold hand built Apple 1 Computer Kit2001 the first iPod
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Apple Inc.
PRESENT: iPod holds 70% market share Stock up almost 500% in last 10 years“the P.C alternative”Post Steve Jobs, CEO Tim Cook = increase
in charitable donationsEnd of 2012 = highest iPhone/iPad sales
ever
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Apple Inc.
FUTURE: Apple’s product compatibility and design superiority have created a loyal customer base
Aim of new product maintain core customers grow customerbase
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Situational Analysis
PoliticalTaxation lawsEurope’s universal charger regulations
(2011)
EconomicGFC Immerging Markets (BRICS as of 2011, Mac
iOS had less than 2% market share)
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Situational Analysis
Socio-Cultural Immerging nation markets Increasing technology demand (80% world population have a mobile phone) Over 75% of SP (smart phone) users will email, text or browse the web each day
Target customers Home users, small/medium business, students,
younger generation, creative “Mac users”
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Situational Analysis
Profound Customer Profile
Wheel of Consumer Analysis• Affect & Cognition• Behaviour• Environment decision process
Identify characteristics, buying patterns, influential factors on a country-by-country basis for different target groups and general market situations
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Situational Analysis
Internal Apple Inc
• Review past (strategies + success)• Re-evaluate collaboration with ad agencies• Assess overall promotional capabilities• Maintain Brand Image throughout promotion
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iKey
Touch, share, live. In a whole new way.
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Product
Introducing the Apple iKey‘A revolutionary device that allows you to do, see and share in a whole new way’
Amazing innovationMinor product extension (peripheral)Product compatibility = core customersVersatile = broad target audience
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Product
• Appearence • Dimensions 10 cm x 5 cm• Colors (black, silver, white)• Weight 100 grams
• QWERTY layout + Screen Projection• Lifespan > 5-10 years• Battery charge via devices• Laser + light technology : translates finger
movement into keystrokes
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Product
(Park, Milberg & Lawson, 2001)
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7 pitfalls (Quelch & Kenny, 2000)
3 argumentsConvenienceHealthSustainability
Why product?
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Convenience
• Portability• Multiple gadget use• Multifunctional• Input (keyboard + mouse• Screen (movies + pictures)• Decoration
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Promising Outlooks
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Health & Sustainability
Conventional keyboards = toxic (Five Winds International, 2001)
• Brominated flame-retardants• PVC (Poly Vinyl Chloride)
E-Waste: incineration forms dioxins
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Health & Sustainability
Conventional keyboards = toxic (Five Winds International, 2001)
• Brominated flame-retardants• PVC (Poly Vinyl Chloride)
E-Waste: incineration forms dioxins
Increase in multiple-user PC areas• Lack of hygiene• Transfer of potentially pathogenic bacteriaMain target (students): (Anderson & Palombo, 2009)
100 % PC access, 91,2% regular internet use 73,3% regular e-mail use
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SWOT Analysis
Strengths• Innovative• Multifunctional• Consumer-oriented
(convenience, ease-of-use)• Compatibility + diversification• User Interface enhancement PDAs (word processing + spreadsheet use)
• Differentiation
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SWOT Analysis
Weaknesses• Immature technology• Increased production costs• High market/consumer research• Mere Apple compatibility• Inflexibility (USB plug-in) + battery• Premium price• No groundbreaking device + adjustment period
but: huge practicability
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SWOT Analysis
OpportunitiesLaunch New Technology (projection)Home cinema movementEncourage Apple device purchasePartnerships (collaboration)Multiple-user computer areas
(universities, companies, hospitals)
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SWOT Analysis
ThreatsLaser technologyNew field (projection technology)Movie theatresDownward pricing pressureDifficulty market expansionCompetition
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Competitive Analysis
Products• Wireless keyboards, fold-up keyboards, thumb
boards, virtual keyboards
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Competitive Analysis
Major companies• Experience in projection technology
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Competitive Analysis
Minor companies• Experience in projection technology
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Competitive Analysis
• In-depth examination• Primary competitors (Samsung, Google)
Strengths + Weaknesses
• Segmentation• Targets• Strategies (positioning + promotional)
• Contemplation of partnerships• Major or minor companies
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Competitive Analysis
Virtual Keyboards
VKB Inc
Canesta
Virtek
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Differentiation
So far… • Laser only• Simplistic
(Keyboard + mouse)• One size, simple sound• Battery recharge (240 min.)
• Universal connectivity (Bluetooth, Wifi)
• Inconvenience (errors)
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Differentiation
… Aim• laser + light combination• Keyboard PLUS
(Screening)• Size + sound regulation• No charging time• Exclusive connectivity
(Apple Socket)• Convenience (error-free)
So far… • Laser only• Simplistic
(Keyboard + mouse)• One size, simple sound• Battery recharge (240 min.)
• Universal connectivity (Bluetooth, Wifi, USB)
• Inconvenience (errors)
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Product – Branded House
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Does the Master Brand Contribute to the Offering?
Associations Enhancing the Value PropositionHaving the Apple logo and “i” product linkage would make the product more appealingCustomers would associate positives of other Apple products with the new product (e.g. quality and compatibility)
Visibility Apple product launches given worldwide press coverage
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Product - Brand Extension
Benefits:low risk (already have the customers)cheaper than a new brandnew product has mutual benefits with
existing productsin line with past brand extensions (minor
extension – peripheral product)
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Price
US$150 (€120)*optimum of perceived customer valuein line with current pricing schedules
*subject to production cost fluctuations.
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Place
iKey will be stocked inApple storesApple online storesApproved resellers
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Know your aim Brand Positioning toolLink the brand to the slogan RepetitionAlways use slogans Creativity
Reinforces Brand ImageEncourages Brand Loyalty
Consistency Brand ConceptBrand Link
a la coeur.
bis zum kern.
hasta el corazón
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Objectives
• Marketing Sales, profits, market share, margins
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Objectives
• Marketing Sales, profits, market share, margins
• IMCAwareness, belief, perceptions, behavior change,
positioning, image purchase decision
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Objectives
• Marketing Sales, profits, market share, margins
• IMCAwareness, belief, perceptions, behavior change,
positioning, image purchase decision
• MediaBroad reach + frequency
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Objectives
• Marketing Sales, profits, market share, margins
• IMCAwareness, belief, perceptions, behavior change,
positioning, image purchase decision
• MediaBroad reach + frequency
Promotional Mix
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Promotion
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Advertising
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che
Soccer specific ads during FIFA World Cup international coverage less adverts but with more impact run competitions to win iKey in conjunction with another sponsor (Coca-cola, McDonalds etc)
(cheaper and broader audience than the super bowl)
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Target audience: working peoplehouse parentsfamilieschildren“fat-finger-syndrome” people
Why TV: medium allows expression of time/place/emotion
base for other mediums
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TV Templates
• Pictorial Analogy: Replacement Version
• Interactiveexperiment
• Extreme Consequence
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Specific targetfollows conventionparticular magazines
Why print: large reachlower cost
can be targeted
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Billboard
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Why billboard: very cost effectiveno
customer buy-in
broadest reception
constant exposure (24/7)
Vivistitial doesn’t interrupt the customer
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Model: Pure Affect - Feel
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Model: Pure Affect - Feel
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Values (Pollay, 1983)
• Practicality• Family• Modern• Unique• Technological• Productivity• Leisure• Youth• Security
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PR/Publicity
• Internet Network explosion effect
• Website + special online advertising• Press Conferences• News/Press Releases
• Product Placement• Pixars• Upcoming movies
• Secondary Sources: Things• Sponsorships (e.g. health-related)• Special events (e.g. Soccer World Cup 2014)
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Sales Promotion
• Consumer-oriented Create incentives• Student discounts• Packages• Christmas promotions
Sampling
Use Consumer Sensitivity to promotional deals
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Personal Selling
• Direct contact• Special occasions (exclusive)• Feedback opportunities
• In store initiative communication flexibility (tailor message)
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Model: Low-involvement
CEA : Think Do Feel
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Brand leveraging
• Genius Bar• Celebrities• Health Experts
• Country (Origin)• Apple Store• Internet
• Events: Soccer World Cup 2014
• Sponsorships
• Alliances(Infocus, Benq, etc.)
• Co-branding? (Apple + Samsung)
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Time Frame
Product to launch June 2nd 2014 2 weeks of minimal advertising (media
buzz) launch full scale advertising between
June 12th & July 13th – FIFA Cup
mix iKey back into accessory advertising after July 20th
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Budget
Campaign: in the last four years Apple has spent less than 1% of profits on advertising.
In 2012 Apple spent $1billion on advertising.Plan for iKey: 10% of advertising budget
Television: 50%during FIFA cup: 25%normal prime time: 25%
Print Adverts: 25% Outdoor Ads: 15% Product Placement: 10%
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Budget
Spending: Fixed Costs: Product:
production (1. salary/employees 2. material 3. facilities)testing (of product)packaging
Market Research: (1. Customer surveys 2. focus groups)Media:
advertising (1. TV 2. billboard 3. print)IMC tools (PR, Internet etc)
Savings:brand placementmedia buzz
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Costs
Research and Development (R&D):Annual R&D Budget overview
2009 2010 2011 20120
2
4
6
8
10
12
AppleGoogleMicrosoft
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Apple R&D
less than half of competitors budgetat least 40% of budget spent on iPhone
developments
iKey suggestion is 12% of budgetsecondary device (other products required)
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Future suggestions
• PR expansion• Gradually decrease reliance on stealth approach
• Sponsorships• Address children• Target elderly• International expansion• Asia• Developing Countries
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Implementation
Customer Care:closely monitor customer responses24/7 phone lines/online communicationprovide promotions to core customer areas (e.g.
student receive a half price iKey when they purchase a iPad valued over $500)
Control: We will come together once a month until one month before launch (and then once a week for the following three months) to discuss issues, evaluate and strategise.
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ControThank you for hearing our presentation
Does anybody have a question or comment?