Marketing AnalysisApple Match

Executive SummaryApples business leverage is a unique ability to develop and design its own operating systems, hardware, application software, and services to provide with its customers completely new products and solutions with superior ease-of-use, logical integration, and innovative and creative designs. However, the necessity of a competitive marketing strategy is always kept in mind of any Apples business operation even though it has been approaching the blue ocean strategy in American marketplace at the beginning and extending to wide world in a few years now. Base on what the Mapple team understands about Apple, we choose Apple Watch (iWatch) that is a new product line of Apple for applied marketing report. We represent Apple to bring out the key recommendations for Apple Watch are:Situation Analysis that include market summary, SWOT analysis, competition analysis, product offering options, distribution analysis, and other key facts.Marketing Objectives that mention about what we are going to accomplish such as sales revenue, unites sold so on.Marketing strategies that include product, pricing, distribution, marketing communications, and integration (diagram) that is in the end of this paper. Marketing research that mention about how elements, especially distribution and communications, coordinate.Tactics that are specifics of how each element will be implementedBy doing those, we have a comprehensive analysis that will be well performed to evaluate all the factors in every business operations of Apple that might be facing when launching Apple watch new products or services in the market.

Situation AnalysisMarket SummaryAs our Apple Watch will be released in early 2015, for our marketing strategies, we basically will continue using the same price schemes that we have used for every other product we have produced. Consumers will purchase the iWatch because our features and benefits are qualities that cannot be matched. Put forth as much time and effort as we do making the technology into making the packaging. Along with this we will be matching the image on the box with the product to ensure zero disappointment. The iWatch matters. For Apple, it is more than a product launch; it is the opportunity to put the shine back on the stock and the company, and give investors confidence that Apple can innovate, market and set the standards for what consumers must have.SWOT AnalysisStrengthsWeaknesses

Many fans of the AppleHigh techHigh priceHigh cost of service

OpportunitiesThreats

Smart Watch is a great potential marketCompetitors like Samsung, LG, and Motorola

Strengths:1. Apple products have a large number of users and fans, and these people are young generations, white-collar workers and college-based. Therefore, it has considerable purchasing power, strong potential consumers for iWatch listing provided.2. iWatch positioned as high-end digital technology products, leading the new trend of electronic technology in wearable device, which also adhering to a consistent style of Apple products; the potential consumer objects have a stronger appeal.Weaknesses: Apple products always take the "high-value, high-price, high-end image" of the "three high" marketing strategy, but not perfect after-sales service, and replacement parts costs are generally higher, some lower purchasing power of consumers is difficult to accept, it will lose these objects and potential consumer market.Opportunities: Smart Watch has a great potential market. Survey results show that about 55% of the world's population still wears watches. Therefore, even if only a small part of the users who wears traditional watch upgrade to a smart watch, this will be a huge market, it will provide unlimited opportunities for smart watches manufacturers.Threats: With Samsung's rise and the emergence of LG, Pebble, and Motorola, Apple iWatch listing has adversely affected.Competition AnalysisSamsungGear LiveLGG WatchPebble SteelMotorolaMoto 360

$199$229$249$249

In the Smartwatch device market today, Samsung, LG, Pebble, and Motorola are the four main competitors to again with the Apple iWatch.Samsung: Along with the LG G Watch, the Gear Live was featured at theGoogle I/O conferenceAndroid Wear reveals, gaining valuable exposure. The Samsung Gear Live is designed to be paired with Samsungs smartphones like the Galaxy S5, making this smart watch the natural fit for Androids largest customer base. The price is now $199.99, making it one of the least expensive smart watch options.LG: One of the first two Android Wear Smartwatches released and probably the better looking of the two the LG G Watchis also one of the first Smartwatches to specifically target women in its advertising. While the $229 G Watch offers all the functionality of Android Wear and is offered in a traditional Black Titan case, LG is marketing the Smartwatchs slim design and place among fashionable accessories. Its also available in a white-and-gold case, and was made to be compatible with standard replacement watchstraps.Pebble: A new, more grown up-looking version of Smartwatch priced at $249. The popular features includes its thriving app store, weeklong battery life (most smartwatch competitors last just a day), a display thats easy to read in full sunlight, and compatibility with both Android and iOS.Motorola: To date, almost all smartwatch entries have been square or rectangular in shape. The Moto 360 takes full advantage of Android Wears support for circular displays to offer a high-tech wearable that could pass as a traditional wristwatch. With pricing expected to be in the $249 ballpark, the Moto 360 could be a hot seller and real competition for Apples iWatch. (Moon, 2014)Product Offering OptionsA device you wear is vastly different from one you keep on a desk or carry in your pocket. Its more than a tool. Its a very personal expression. So we designed AppleWatch to reflect a wide range of stylistic preferences. And weve curated three distinctive collections to help you find the watch thats right foryou.

Apple Watch: The AppleWatch collection features highly polished stainless steel and space black stainless steel cases. The display is protected by sapphirecrystal. And theres a choice of three different leather bands, a link bracelet, a Milanese loop, and a band made from high-performancefluoroelastomer. 18 models in this collection will be presented to various customers.Apple Watch Sport: The Sport collection cases are made from lightweight anodized aluminum in silver and space gray. The display is protected by strengthened Ion-X glass. And the matching fluoroelastomer band comes in five differentcolors: white, blue, green, pink, and black. 10 models in this collection will be presented to sport lovers.Apple Watch Edition: The Edition collection features six uniquely elegant expressions of AppleWatch. Each has a watchcase crafted from 18-karat gold that our metallurgists have developed to be up to twice as hard as standard gold. The display is protected by polished sapphire crystal. And an exquisitely designed band provides a strikingcomplement.Distribution AnalysisThe iWatch will be accessed by major Apple distribution channels which includes:Apple online store: Our website has been well established and maintained to create the best shopping experience for customers around the world; therefore the online store is the most directly place for customers to easily access products info, the price, delivery method, etc. Apple retail stores: All the iWatch will be launched in all Apple retail stores in the U.S. where promotion and sales campaigns will be hold simultaneously. Any technical support and customer services will also be provided by our Genius.Apple premium reseller: We will continue signing contracts with our leading third parties both online and offline retailers to promote sales; for instance, Amazon, eBay, Target, Wal-Mart, etc.Major wireless companies: AT&T, T-Mobile, Verizon, and Sprint will be another important resellers to promote the iWatch with other compatible Apple devices.Other Key FactsDemographic: For Apple Watch demographic capture, the company is very ambitious that this iWatch is going to attract attention from diverse group of consumer. Apple has claimed that Theres an Apple Watch for everyone by planning introducing a device that is vastly different from regular watch that people keep on a desk or carry in their pocket. According to Apple, with the aim to reflect the wide range of stylistic preferences, three distinctive collections have been designed to meet different needs in its target age group: Apple Watch, Apple Watch Sport, and Apple Watch Edition. The three distinct collections normal, sport, luxury obviously involve taking aim at different demographics. Significantly, the Watch Edition definitely targets in luxury fashion customers. This is undoubtedly a new fashion brand move of Apple. On the other hand, the Apple Watch Sport aims at teenagers and young adults with its cool design while the Apple Watch introduce the ultimate Apple lifestyle that primarily appeals to a mature, successful, and technological literate adult.Socio-Cultural Environmental Factors: With the innovation of the iWatch, Apple is going to redefine the individuals modern lifestyle that the overall socio-cultural environment will be changed simultaneously such as the iWatch will definitely change peoples behaviors on using regular watches that lots of new features and functions will reshape the way between people using their watches and portable electronic devices. Moreover, the lunch of the iWatch is not only represents Apples innovation of the high-tech product but also help link the high-tech and peoples lives more closely.Technological Environment: Buy using high technology to target to every other genders, Apple gain much more advantage in two sides are internal and external environment. Indeed, many previous products, which have helped creating Apples value, have continued maintaining and developing in customers eyes. Moreover, Apple intends using technology development to human beings health, so iWatch is considered as Apples new image with some different functions. According to Aamoth (2014), Features apparently include a curved, rectangular screen made of impact-resistant sapphire crystal, tap-to-pay functionality, eight gigabytes of storage, health-tracking sensors and two screen sizes. Consequently, many expect that iWatch could help to track an individuals health and fitness metrics. Apple launch iWatch products that could face with other competitors such as Samsung or Nike, but iWatch always have its own power is that the Bluetooth-enabled device would feature a 1.5-inch organic LED screen and be able to communicate with other Apple devices. Besides this, iWatch features are email and text capabilities, to receive incoming calls, GPS and maps integration, and WiFi technology and weather updates (Eddy, 2013).Economic Environment: In order to deal with some financial and global economic problems, last year Apple gave more choices for its consumers by creating iWatch. As the result, Apple has increased its U.S smartwatch share after problem of iPhone 5C that arrived on September 2013. In addition, demand could also differ materially from the firms expectations and may be affected by currency fluctuations since Apple generally raises prices on goods and services sold outside the country to correspond with the effect of strengthening of the U.S. dollar. Moreover, other macroeconomic factors could affect the consumer demand for Apples products such as increasing in fuel and energy costs, conditions in mortgage markets, labor and healthcare costs, access to credit, consumer confidence (Apple Inc., 2014). Marketing ObjectivesTarget Market Objectives: Market Share: Apples total market share for mobile phones, tablets and PCs will grow in 2015 from under 10% to above 14%. There is no intention of increasing the channel due to the company not wanting to flood the market. Customers: There are 500 million users of Apple products currently and the number is expected to reach 600 million by the end of 2014. Purchases: Depending on how often we upgrade the iWatch will be purchased at one for every customer due to consumers not needing more than one watch.Promotional Objectives:Level of Company Awareness: Apple is a worldwide known corporation, which will increase sales for the new product.Traffic Building: Having website banners on sites such as mobile phone carriers and retail stores (Target, Wal-Mart, Best Buy and K-mart). Product Trials: Once we release the iWatch to mobile phone carriers we can have a promotion when customer buy the newest version of the iPhone or iPad; the watch will be able to be purchased at a discounted rate. When consumers start to buy the watch with the phone they will be able to share with others how great the watch is, as sales begin to rise we will cut the promotion tough people will still want to buy it. Sales Force: Having representatives from Apple sell to large corporations and institutions that are looking to invest in the iWatch and purchase large quantities will increase sales. Since these representatives will be knowledgeable they will be able to answer questions and then persuade the customers to purchase.Channel Objectives: Dealers: There are more than 400 authorized dealers of Apple worldwide. Retained dealers consist of the ones over on the West coast of the United States where the corporation originated. Newer dealers will begin to pop up more commonly on the East coast. Order Processing and Delivery: Apple processes debit and credit cards immediately after an order is placed online. An email is sent to the customer when the order is being processed and another email for when the item(s) are shipped. We have an outstanding on time rate and guarantee your product will arrive the day we predict unless such things as weather gets in the way of delivery.Marketing StrategiesTarget MarketBased on evaluating the market segments, Apple has made decisions to design and release its new Smart Watch. Frist of all, Apple is considered as a matured company with many current loyal customers that always support its different products. Second, evaluating the segmentation variable that based on all ages of teen to young adults, which means from 15 to 50 years old, evaluating customers income that ranged between $25,000 and $100,000 annually, evaluating high school and college educated consumers, evaluating social class that is from middle to high class is concerned for Apple development, evaluating volume usage that is 24 days a week worldwide, and evaluating benefits such as portable, connect to the phones, and easily accessible.Third, Apple focus on specific target markets, and in fact is that Apples target is to tend to processionals for businesses, travelers, and Athletes because Apple believe that iwatch products will become much more convenience for business and travel users into portable technology, or be useful for athletes such as runners, walkers, music, or joggers. Relevant market segmentsEven though Apple has always created value for its image by science and technology, target market need to create variables in order to maintain and develop that image. In fact, Apple has succeeded in a few years now on many different product line extension. Especially, iWatch is considered as one of new products that make companys success. According to Frank (2014), The iWatch is of particular interest to those who are prepared to pay well in excess of 1,000 Euro for a watch. Seven percent ofthose willing to invest between 1,000 and 2,500 Euro for a watch make up the core target group for the iWatch, increasing to twelve and sixteen percent of those willing to spend 2,500 to 5,000 Euro and more than 10,000 Euro respectively. However, Apple face with other competitors such as Samsung, Nike, or Google that has released its android powered devices. It could be said that Apple and its competitors will always create many differences in the marketplace. Hence, Apple will have to make its own target market to become a top of innovation Company in both technology and business.PositioningApple has been building up a quite strong brand image around the world. Everybody agrees that Apple is related with fashionable design, advanced innovation, better quality, being different, etc. Innovation and quality are often associated with high price, and on the other hand a high price somehow guarantees the consumers are buying an excellent device. This is a psychological strategy as well as a typical business model. People usually hold the view that a higher price indicates a better product. Therefore, if someday Apples price becomes much lower than today, its loyal fans may not want to buy the products because it would not make them feel special anymore. Thus, the price war would hurt Apples brand more than the potential increasing sales from lower price.According to Apple (2001), Again, since our products such as iPod, iPhone, iPad, and Mac computers continue releasing from 2001(par 2, 2001), the Apple product line has gradually formed as a unique culture and system in the smart-device market. The Apple lovers are always waiting for the new product release every year, and the consumer habit of the technology lovers have also changed from price-driven to quality-driven that makes the Apple products market shares is always leading the industry especially the iPhone series. As a result, we strongly believe that the iWatch will definitely bring the personal device into a new era especially on the advantages of connecting to our other Apple products and software. With the innovation of the iWatch, Apple is going to redefine the individuals modern lifestyle that the smart-device market will be changed simultaneously such as the iWatch will definitely change peoples behaviors on using regular watches that lots of new features and functions will reshape the way between people using their watches andStrategiesProduct: As a marketing team from Apple, we aim to market the Watch, which is already given from production process. We will have no recommendation on its design or put up any function. We merely create a plan to market the Watch, a given product. Apple Watch will be considered the most personal device from Apple so far. Following the success of the iPhone and combating with competitors in the technology battle, Apple continues launching out innovative product. This time, it is the Apple watch, which is both personal and accessible. 1. Innovation: Apple Watch combines a series of remarkable feats of engineering into a singular, entirely new experience. The watch is set with new Digital Crown - a multifunctional input device lets users zoom, scroll, and select without covering the screen. The new Watch OS is also built up. The Home screen lets users quickly find their favorite apps. The custom font is easy to read at arms length. And the Retina display puts more functionality at the fingertip.2. Design: Selecting a watch is very personal. Thus, the watch is designed to reflect a wide range of stylistic preferences. We aim at creating watch with certain styles for everyone. Apple Watch is created from custom alloys of stainless steel and aluminum each in two finishes as well as unique formulations of 18-karat yellow and rose gold. All were specially developed not only to look great, but also to stand up to the physical demands of daily wear. A full range of bands in a variety of materials is offered together with a variety of faces. The watchs faces vary from traditional to playful designs and most of them can be customizable in colors, design elements, and functionality. In general, there will be three collections of cases and bands to help customers choose the expression that suits them the best Apple Watch, Apple Watch Sport, and Apple Watch Edition.3. Features: The watch is not only a watch but can be also a device which users can text messages, make a phone call, check mailbox, and use a number of apps. Pricing: Apple Watch is priced starting at $349. Pricing strategy is helping to increase revenue and keep relationship with customers. When setting the price, we have to consider factors such as competition, market share, product identity and customers perceived value of the product. With all these factors, we are ambitious that this price can meet real demand compared to other smart watches.

(Source: gizmag.com)

Distribution1. Apple Store: We will continue to exploit our Apple Store to be the places for selling the Watch because they are all well-established and well-known by the target audience and Apple lovers. As of September 2012, we had 250 active Apple Retail Stores located in the U.S. compared to 140 international locations. That figure is impressive enough to help us to distribute the product through out U.S. to serve customers. Generally there is always big queue when new iPhone is availabe. Sometimes more than hundred people sleeping days before the store actually opens. Thus, this will be a big advantage for launching the watch. The most important thing is that we can easily put sale and promotion campaigns at the stores so that customers can have directly real shopping experience. Therefore, we continue to launch the watch at those stores. 2. Reseller: We will continue signing contracts with our leading third parties both online and offline retailers to promote sales. For instance, we have Amazon, eBay, Target, Wal-Mart, etc. We keep signing contracts with those resellers because they fulfill high standards in service and uniform store design as well as marketing and advertisement practice. They can also have a substantial customer base which we can take advantage of without spending money on opening new stores. Marketing communicationAdvertising, publicity is an important information tool to promote our products to market. We can make an effective sell our iWatch by using advertising. Therefore, we will issue effective advertising to inform, persuade, or remind people about our product, in order to increase sales and enhance.Advertising and media tactics:For Advertising, our will appear in traditional media includes national broadcast TV, local broadcast TV, local cable TV, network radio, local radio, newspaper, magazines, banner advertising, Facebook campaigns, and mobile advertising. Through these ads, our objective is to show people a market signal. Arouse consumers' attention and interests stimulate potential consumers. Compared with other brands of smart watches, increase the market share of iWatch. In this way, our iWatch can draw more consumers early in the market season. On the contrary, without a proper promotion plan, we will hardly attract potential customers even though iWatch has fine products and competitive price.For publicity, Conducted a press conference by the media is very necessary. So we will be a press conference as the primary means. Press conference included market position, product analysis. Because our products are focused on the younger age groups, the press conference will be released in some stations, websites, blog and so on which are popular among young people group. In the conference, we will mention some of the topics of interest to young people. For example, the dynamic elements of iWatch, such as design, function, contact with other products. Promotion, such as student discounts codes, trial products and so on. Such a conference can give people a strong market signal, while allowing consumers a more comprehensive understanding of our products, make full preparations for the future of the market.In website, we will put iWatch online in the company website apple.com together with other leading products such as iPhone, iPod, Mac and iPad. By this way, we will promote the necessary info about the product including design, features, price, and collection so that customers can access all the needed info they might have before proceeding purchasing a watch. Website is also a shopping tool where people can buy the watch without going to retail stores.Execution:We will spend about $150 million per month in these tactics. Spent five main areas: 1) Television advertising2) Magazines: science and technology magazine, watch magazine, National Geographic, aviation magazines3) Online advertising: company website, face book, the major review sites, forums4) Advertising wall: Bus Exterior Advertising, mall advertising wall5) Mobile advertising: mobile phone software advertising. In addition, we will choose to cooperate with some of the more well known advertising agency to design our products advertise.Marketing researchSince 2012 Google has released Google glasses, the time of wearable device has come. After two years of technological development, smart wearable devices have been common in the market. Including glasses, bracelets, shoes, clothing and so on. 87% of the wearable device is the wrist product. A statistical report shows that shipments of smart watch are 5,000,000 in 2014, it is 10 times of shipments in 2013, and even it is reached 15 times of shipments in 2012. This reflects the development prospects of the smart watch. Therefore, an iWatch market research is necessary.1. Purpose of research:Researching on cognition of iWatch from clients, the demand of iWatch in the market.2. Target of research:a) Young peopleb) Business peoplec) High-income peopled) People who are interested in new things3. Project of research:a) Customer classificationb) Customer preferencesc) Demands and wishes for iWatchd) Improvements of existing iWatch4. Ways and means of researcha) Questionnairesb) Home interviewsc) Internet posting on the opinions of solicitation5. Data compilation and analysis methodsa) Internet searches, comprehensive search for information, and then choose and together useful information.b) In some companies have developed smart watches official online tracking information. Such as Samsung, Nokia, Google, based on their user feedback information to select the consumer experience of feeling judged and deeper needs.c) According to the group sent out and back to the design of the questionnaire information. Tactics PromotionAs iWatch is a latest innovation product that will add into the Apples product line along with the iPhone, iPad, and Mac computers to maximize its performance, it is expected that not only the current Apple users will be attracted but also new market shares will be taken in the future.Execution: Basically, our tactics in price will continue using the same price scheme that we have used for every other product we have produced and sold in the market. For example, the iWatch will be sold in the Apple stores, official website, and authorized dealers such as major wireless companies (AT&T, T-Mobile, Verizon, and Sprint) and retailers (Amazon, Best Buy, Wal-Mart, Target, and so forth). However, the design of the iWatch is to connect with the iPhone, iPad, or even the Mac computer to maximize its performance and usage; thus, in pricing the iWatch, the bundle options will be considered as well. As our iWatch price is set from $349(different models may vary); with different distribution channels, there are different prices for different groups of consumers. Basically, the price will be divided into two main categories: original price and bundle prices:Original PricePurchase with iPhonePurchase with iPad

$349$249$249

In current market, for comparison, Android Wears cheaper options are the Samsung Gear Live at $200, LG G Watch at $230, and Motorola Moto 360 at $249. An important reason we believe the consumers will purchase the iWatch because our features and benefits are qualities that cannot be matched; therefore, we will not fall into the price competition and will concentrate on quality as our competitive advantage.ProductProduct development:The iWatch will release in the early of 2015; afterwards, the iWatch will continue update to better and increase its performance and reliability. Consumers can update the iWatch software regularly with no fees and even extend the warranty by purchasing the Apple Care to get the ultimate support on their favorite iWatch. There is no time limit for updating the iWatch and the expense to develop the iWatch will be estimated at least 10% of the total sales.To develop market penetration in the U.S. market, besides the product improvements, different strategies will be applied in the future to take sales from the competitors such as price adjustment, various promotions, more purchasing options, more distribution channels, customer education and so forth. Integration (diagram):

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