marketing plan for apple iphone 5g

7/30/2019 Marketing Plan for Apple iPhone 5G

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Introduction:

Apple iPhone 5G is the stylish popular mobile.it has color screen,high defination camera &

is well equipment for music,video and web access,as well as having communication

e.t.c.ahe Apple I is the first product of apple,was sold asw an assembled,circuit bord and

lacked basic features such as keyboard ,monitor and case.Apple will be competing with

Nokia,Sonic,Research in motion,Motorola and other wellestablished rivals in a crowded.


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Vision and mission:

Our Vision

Our vision is to be the worlds pre-eminent Interior designer/builder of unique,

architectural memorial structures.

Our Mission

The Apple develops alliances with its customers to ensure their complete satisfaction with

the entire Interior design and construction experience. This not only means that Apple will

deliver a high quality Interior, on time and on budget, but that customers will have

complete confidence and peace of mind throughout the process of working with Apple, that

all risks have been managed and all reasonable contingencies planned for. Apple valuesintegrity; our practices are honest, our conduct is legal and ethical. Although we are

motivated by a fair return on our investment, we are always striving for win/win

partnerships with customers who share our desire to design and build memorial Interior

structures, that add value to the communities in which they are built and assist owners in

keeping the promise of perpetuity that they have made to their lot holders.

To this end, we are committed to effectively communicating to our customers the benefits

of the Apple design/build process, and poured-in-place construction methodology. We will

ensure that our customers receive real and measurable value from our years of experienceworking around the world. Our employees are our most important resource in achieving

our mission. At Apple, we focus on recruiting, developing and retaining employees with the

skills and competencies required to maintain a dynamic corporate culture driven by the

values of quality, innovation and safety. We then provide our people with the most effective

tools and technologies required to further ensure our customers are completely satisfied

with every stage of their working partnership with Apple.


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CURRENT MARKET SITUATION:

Apples marketshare of the world PC market has reportedly hit a 15-year high.

The company now holds about 5.2 percent of the worldwide market, growing 24.6 percent

in the past year. Compared with the overall markets 5.3 percent growth in the past year,

that makes Apple look very good, indeed.

Multifunction cell phones, e-mail devices, and wireless communication devices have

become commonplace for both personal and professional use. Research shows that the

United States has 262 million wireless phone subscribers, and 85 percent of the population

owns a cell phone.

Competition is therefore more intense even as demand flattens, industry consolidation

continues , and pricing pressures squeeze profitability worldwide, Nokia is the smart

phone leader, holding 45 percent of the global market. Research in motion, maker of the

black berry is the smart phone runner-up, holding 13 percent of the global market, in the

U.S market black berry is the market leader (with a 42 percent share) and apple, maker of

the iphone ,is the runner-up(with a 20 percent share).To gain market share in this dynamic

environment, apple must carefully target specific segments with feature that deliver

benefits valued by each customer group.


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Figure: current market situation of United State

Market Description:

The iPhone 5G targets consumers who need to store information and communicate orpeople who want entertainment on the go. Apples target segments consist of professionals,students, corporate users, entrepreneurs, and health care workers. Currently, the marketfor high-end phones like the Apple iPhone 5G is small. Few people want Internet, video,and PDA features in one device because of the high price. The smart phone market is stillrelatively small compared with general phone market. The market will rapidly increase in

coming years due to lower prices and greater power.

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nokia black berry apple

Series1


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PRODUCT REVIEW:

Everybody is interested to know about Apple iPhone 5G features, its plus and minuspoints. Everywhere, whether in universities, colleges, caf or clubs etc. topic is the AppleiPhone 5G most favorite one .Apple first product is APPLE I. Apples iPhone 4G launchedcouple of months ago and iPhone 4G is one of the talk of town.

Steve Jobs introduces this new IPhone 5G with nearly hundred of new features. Claimed byGizmodo the epitome of iPhone, this iPhone 5G has some totally new and useful featureswhich are really welcomed by the new generation as fulfilling their need of the hour.

Take a closer look of this iPhone 5G model you will find these characteristics;

Stainless steel body

Glass top
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Time Machine in iPhone 5G

Time machine (is mobile phone instead of watch going to make this myth true???) in aminiature form will be offered to send back an object about a week by transforming. Anunbelievable feature in iPhone 5G, Is it possible??? keep our fingers crossed.

iPhone 5G Scanner

It is also said that an application of scanning would be present in iPhone 5G to facilitate theuser with more advanced feature. The portable scanner is helpful for students and also foroffice work.

Ultrasound Technology in iPhone 5G

It does not give sense but rumors are there that coming iPhone 5G have ultrasoundtechnology to examine.

Video Conferencing in iPhone 5G

There is also the possibility of doing video conference. This iPhone 5G feature is quiteappealing and a helping office tool.
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Other apple product:

iPad:

The iPad is a line oftablet computers designed, developed and marketed by Apple Inc.,

primarily as a platform for audio-visual media including books, periodicals, movies, music,games, and web content. The iPad was introduced on January 27, 2010 by Apple, Its sizeand weight fall between those of contemporary smartphones and laptop computers. TheiPad runs the same operating system as the iPod Touch and iPhoneand can run its ownapplications as well as iPhone applications. Withoutmodification, the iPad will only runprograms approved by Apple and distributed via the Apple App Store.

Ipod:

On October 23, 2001, Apple introduced the iPod digital music player. It has evolved toinclude various models targeting the wants of different users. The iPod is the market leaderin portable music players by a significant margin, with more than 220 million units shipped

as of September 2009.Apple has partnered with Nike to offer the Nike iPod Sports Kitenabling runners to synchronize and monitor their runs with iTunes and the Nike+website. Apple currently sells four variants of the iPod.

iPhone:

At the Macworld Conference & Expo in January 2007, Steve Jobs revealed the long

anticipatediPhone, a convergence of an Internet-enabled smart phone and iPod. The

original iPhone combined a 2.5G quad band GSM and EDGE cellular phone with features

found in hand held devices, running scaled-down versions of Apple's Mac OS X (dubbed

iOS, formerly iPhone OS), with various Mac OS X applications such as Safari and Mail. It also
http://en.wikipedia.org/wiki/Tablet_computerhttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/IOS_(Apple)http://en.wikipedia.org/wiki/IPod_Touchhttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Jailbreak_(iOS)http://en.wikipedia.org/wiki/App_Store_(iOS)http://en.wikipedia.org/wiki/IPodhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Nike%2BiPodhttp://nikeplus.nike.com/nikeplus/http://nikeplus.nike.com/nikeplus/http://en.wikipedia.org/wiki/Macworld_Conference_%26_Expohttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/2.5Ghttp://en.wikipedia.org/wiki/Quad_bandhttp://en.wikipedia.org/wiki/Global_System_for_Mobile_Communicationshttp://en.wikipedia.org/wiki/Enhanced_Data_Rates_for_GSM_Evolutionhttp://en.wikipedia.org/wiki/Safari_(web_browser)http://en.wikipedia.org/wiki/Mail_(software)http://en.wikipedia.org/wiki/Mail_(software)http://en.wikipedia.org/wiki/Safari_(web_browser)http://en.wikipedia.org/wiki/Enhanced_Data_Rates_for_GSM_Evolutionhttp://en.wikipedia.org/wiki/Global_System_for_Mobile_Communicationshttp://en.wikipedia.org/wiki/Quad_bandhttp://en.wikipedia.org/wiki/2.5Ghttp://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Macworld_Conference_%26_Expohttp://nikeplus.nike.com/nikeplus/http://nikeplus.nike.com/nikeplus/http://en.wikipedia.org/wiki/Nike%2BiPodhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/IPodhttp://en.wikipedia.org/wiki/App_Store_(iOS)http://en.wikipedia.org/wiki/Jailbreak_(iOS)http://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/IPod_Touchhttp://en.wikipedia.org/wiki/IOS_(Apple)http://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Tablet_computer


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includes web-based and Dashboard apps such as Google Maps and Weather. The iPhone

features a 3.5-inch (89 mm) touch screen display, 4, 8, or 16 GB of memory, Bluetooth,

and Wi-Fi (both "b" and "g").The iPhone first became available on June 29, 2007 for $499

(4 GB) and $599 (8 GB) with an AT&T contract.

Apple TV :

At the 2007 Macworld conference, Jobs demonstrated the Apple TV , (previously known asthe iTV), a set-top video device intended to bridge the sale of content from iTunes withhigh-definition televisions. The device links up to a user's TV and syncs, either via Wi-Fi ora wired network, with one computer's iTunes library and streams from an additional four.The Apple TV originally incorporated a 40 GB hard drive for storage, includes outputsfor HDMI and component video, and plays video at a maximum resolution of720p.
http://en.wikipedia.org/wiki/Dashboard_(Mac_OS)http://en.wikipedia.org/wiki/Google_Mapshttp://en.wikipedia.org/wiki/Dashboard_(Mac_OS)http://en.wikipedia.org/wiki/Bluetoothhttp://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Apple_TVhttp://en.wikipedia.org/wiki/Apple_TVhttp://en.wikipedia.org/wiki/HDMIhttp://en.wikipedia.org/wiki/Component_videohttp://en.wikipedia.org/wiki/720phttp://en.wikipedia.org/wiki/720phttp://en.wikipedia.org/wiki/Component_videohttp://en.wikipedia.org/wiki/HDMIhttp://en.wikipedia.org/wiki/Apple_TVhttp://en.wikipedia.org/wiki/Apple_TVhttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/Bluetoothhttp://en.wikipedia.org/wiki/Dashboard_(Mac_OS)http://en.wikipedia.org/wiki/Google_Mapshttp://en.wikipedia.org/wiki/Dashboard_(Mac_OS)


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Competitive review:

The purpose of a competitive review is to identify key competitors, describe their market

positions, and brifly discuss their straegies.

Nokia: The market leader in smartphones, Nokia offers a wide range of products forconsumers and professionals. It recently purchased the market of the symbian opareting

system and made it into a separate foundation dedicated to improving and promoting this

mobile software platform. Many of Nokias smartphones offer full keyboard, similar to

research in motion models, but stripped-down models are available for user who do not

require the full keyboard and multimedia capability.

Sonic: Built in dual cell phone .Digital music,three-inc color screen,4 megapixledigital camera,memory 2ogb,internet phone functionality with LinuxOS. It recently

purchased the market of the symbian opareting system and made it into a separate

foundation dedicated to improving and promoting this mobile software platform.

RIM: Research in Motion makes the lightweight BlackBerry wireless multifunctionproducts that are especially populer among corporate user. RIMs continous innovation and

solid customer service support clearly strengthen its competitive standing as it introduces

smartphone with enhanced feature and communication capabilities. RIMs newer

smartphone comeequipped with the BlackBerry OS.

Motorola: Motorola, a global giant, has been losing U.S. market share to Apple andResearch in Motion, in particular, bacause it has slowed the place of new productintroduction. One of its top smartphone models in the slender, lightweight quad-band Q,

which incorporates e-mailand text message functions, photo caller identification, a full

keyboard, camera with flash, removable memory, and more. After rebate, the Q is priced at

$149.99 with a two year AT&T Wireless contact, although the retail price withouta contract

is considerably higher.

Samsung: Value, style, function: Samsung is a strong competitor, offering a varietyof smartphone for consumer and business segment. Some of its smartphones are available

for specific telecommunications carriers and some are unlocked ready for any compatible

telecommunication network. Its instinct is a smartphone with features similer to the

iPhone.

See the table 1.1


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Table 1.1 | Sample of Competitive Products and Pricing.

Competitors

Model Feature Price

Nokia E61i Quad-band for worldwide phone, e-mail, andinternet access, backlit keyboard, corporate andpersonal e-mail integration, 2.8 inch screen, 2megapixel camera, memory card, Symbian OS.

$355withoutphonecontract

Sonic S1000 Digital music,three-inc color screen,4 megapixledigital camera,memory 2ogb,internet phonefunctionality with LinuxOS.

$104withoutphonecontract

RIM BlackBerryCurve

Phone, wireless e-mail and internet access, 2megapixel camera, maps, GPS, audio videorecording, expandable memory, BlackBerry OS

$149.99with rebate,phonecontract

Motorola Q Extremly thin and light, keyboard, quad- bandfunctionality for world wide use, cameraincluding flash, e-mail and texting function,Bluetooth, voice activated dialing, Windows OS.

$449.99withoutphonecontract

Samsung Instinct Phone plus e-mail and speedy internet access,voice guide GPS, 3.1 inch touch screen,expendable memory, 2-megapixel camera, liveTV, FM radio, proprietary OS.

$129.99with rebate,phonecontract

Distribution

AT&T and eventually other major cellular providers like Verizon. Goal is availabilitywith all phone providers.


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Purchasable direct from Apple online, and from major third-party online retailers likeAmazon.com.

Apple stores in U.S., Japan, U.K., Canada, and worldwide. All major electronics retailers: Wal-Mart, Best Buy, Circuit City, etc.

SWOT Analysis of iPhone 5G


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Strengths

Innovative The iPhone 5G has an innovative touch screen that is patented and

unmatched by any other mobile product today. It also has many functions of other mobile

products all in one device.

CompatibilityThe phone will work with iTunes and with other Mac/Apple products like

the new Apple TV, allowing for wireless connectivity to the big screen. The iPhone5G is

also compatible with many Mac OS software tools. Mac OS compatibility means that the

iPhone5G has limitless potential for upgradeability.

Ease-of-Use The all-new touch screen interface making operations extremely intuitive. It

is radically different from those of other phones or PDAs that recognizes multi finger

gestures, just as the human hand normally behaves. The Mac OS X application imbedded

into the iPhone 5G assures users will easily recognize what they can do

Brand awareness Apple is well known for cool essential gadgets like the iPods along

great technological innovations like the original Macintosh.

Price At $600, the iPhone 5G would be sold at a reasonable price for its value. It

outperforms any other PDA or smart phone on the market and the convenience of having

multiple features combined into one-device increases its overall value.

Quality The iPhone 5G has one of the brightest and most scratch resistant screens in the

market. It also has a fine metallic finish that is durable and light. The software suite

included is also unsurpassed with their ease of use and resistance to computer viruses.

Weaknesses:

Image The Apple brand is not targeted towards business people, which most smart

phones have targeted. Doesnthave a reputation as being compatible with the corporate

world.

Price Apple does not yet offer lower priced models for more cost conscious consumers.

User InterfaceTouch screen interfaces suffer from the problem of gorilla arm, in which

long-term use of a flat, solid surface for input becomes uncomfortable.

Opportunities


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Increasing demand and expansion to a new target segment Apple will continue to

target the business productivity market who wants an all in one computing solution. But as

technology advances and smart phones get cheaper companies also have a great

opportunity to target people who want entertainment. Apple will attract these consumers

and get iPod users to upgrade to iPhones 5G.

Upgradeable Since software on the iPhone 5G can be updated, it allows new exciting

features to be brought in which take advantage of the touch screen ability. Future versions

will also be hardware upgradeable.

Partnerships Apple can collaborate with many powerful global mobile phone companies

to flood the market with iPhones 5G , which reduces costs in marketing and increases

revenue through long-term agreement deals.

Threats

Increased competition Smart phones are easier to make now more than ever. More

companies may enter the market, given that there are few barriers to entry other than

patents. Competitors or even Apple contractors can maneuver around patents to create

similar devices.

Downward pricing pressure The iPhone 5G is marketed as a high-end phone, but

phone prices are almost certainly going to fall when other companies undercut the price of

iPhones 5G.

Difficulty expanding into Asian market There is less hype and interest in Asia since

smart phones are better known and already widely used.

OBJECTIVES & ISSUES :


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We have set an aggressive buy achievable objective for the first and second years of market

First-year Objectives during the iphone 5G initial year on the market, we are aimingfor units sales volume of 500000

Second-year Objectives - Our second-year objectives are to sell a combined total of onemillion units of our two models and to achieve breakeven early in this period.

ISSUES: An important objective will be to extend on the Apple brand name and link to the

established meaningful positioning. Apple has invested heavily on the iPod brand and we

plan to capitalize on the brand when marketing the iPhone. We will extend on Apples

image of innovation, quality, and value. In addition we will measure the awareness and

response in order to make adjustments to our marketing campaigns as necessary.

Marketing Strategy :


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Target markets:iPhones 5G marketing strategy is to differentiate the iPhone5G from

other PDAs on the market. One of our primary customer targets is the middle-upper

income professional that need one portable device to coordinate their busy schedules and

communicate with colleagues, friends and family. Our secondary consumer targets are high

school, college and graduate students who need one portable multifunction device. Mainly

this market will be replacing their iPod and cell phone with the iPhone 5G.

Our primary business target is to partner with large cell phone service providers, AT&T,

Verizon, Sprint and Cellular One; As well as large enterprise software firms where

information is critical to the end user. Are secondary business target is mid-to mid-size

corporations that want to help managers and employees stay in communication or access

critical data on the go. This market segment will consist of companies with $10-$50 million

in annual sales. These are entrepreneurs and small business owner who need an all-in-one

device for work and play.

Positioning: Using product differentiation, we are positioning the iPhone5G as the

versatile, convenient, value-added device for personal and professional use. The marketing

strategy will focus on the convenience of having one device for communication, but also

music, pictures, and video, and full Internet access. The iPhone 5G will be promoted as both

professional and hip.

Strategies

Product: The iPhone5G will have a full year warranty along with an optional three-year

Apple Care warranty. We will package the iPhone5G as tastefully as all Apple products are.

Special editions of the iPhone5G will also be introduced including the iPhone5G Beatles

Edition celebrating the 40th anniversary of Sgt Pepper. We will be shipping in 2011 a

cheaper less advanced iPhone 5G along more advanced version of the iPhone5G designed

for professionals with these additional features:

Larger, removable disk storage capacity support for USB memory sticks, digitalcamera memory cards, external hard drives.

Lower weight and thinness should fit into a wallet or become the wallet (withfeatures to act as a credit or debit card).

Significantly longer battery life should play movies for twice as long; battery shouldbe easily replaceable.

5G wirelesses even faster, more incredible speeds than ever offered on this sort ofdevice. This will leapfrog the competition.

GPS functionality more precise information on location. Can link with software toadd even more functionality.


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Peer to peer wireless exchange Zune has this. Lets you easily share your music andpictures.

Improved camera For more detailed pictures and high quality video conferencing.

Other feature of iphone 5G is below:

exceptionally thin

side buttons for volume controls

easily approached sim-tray

camera on front with microphone on the back

top second microphone for noise control

button for sleep or wake mode

headset input.

Pricing: We set our base model 64gb at a low $600 dollars. Larger 8gb models will be

listed at $399 dollars. We will also sale special limited edition Beatles iPhones upon rollout.

These of course are premium versions of the iPhone5G will deluxe packaging and the

entire re-mastered Beatles iTunes catalog already preloaded. We have decided to lower our

prices to ensure we establish market dominance in as short of time as possible.

Distribution: We are aiming for massive rollout worldwide at all reputable major retailers

online and brick n mortar stores along with cellular phone providers. All Apple Stores the

Apple website will dedicate themselves to the iPhone 5G and also provider channel

partners by providing product demonstrations. Eye catching displays will be found at all

physical stores featuring the iPhone5G to make the product stand out from the pack. AppleStores will have the iPhone on display a full month before its worldwide release. This is

designed to lure consumers into Apple stores and see the whole range of products Apple

can offer.

Marketing and Communication: We will integrate our message of revolutionary

communications and audio/visual experience together in all of our media advertisements.

Prominently featured to differentiate our product against others is the touch screen

functionality. We will also emphasize our brand prominently and associated the iPhone5G

with the iPods groundbreaking lineage. Our ads need to be original but tasteful at the sametime. Research about media consumption patterns of our targeted audience will help our

advertising agency choose appropriate media and timing to reach prospects before and

during product introduction. A massive TV campaign is planned for the month of June will

feature a soon to be legendary ad that will remind people of Apples 1984 Super Bowl ad

and be the talk of the country, generating further attention. Thereafter, advertising will be

appearing on a regular basis to maintain general public awareness and communicate


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various differentiation messages to several targeted groups. To attract, retain and motivate

channel partners to push the product, we will send personnel to inform them on how to

market the iPhone5G along with other Apple products.

Marketing Research:

We use a large variety of consumer research in order to further improve the iPhone 5G as

the market changes. Staying close to the end user and listening to the customer will be

paramount to our success. Through the use of focus groups, feedback from consumer

surveys and brand awareness studies to insure we know of the iPhone 5G is view by the

world. Targeting segments will be important in order to extend the iPhone5G reach to

business and a broader professional base. Four age groups will be targeted: 15-20 years,

20-25 years, 25-45 years, and 45 years and up. These groups will give an expansive view of

the study groups to include middle and upper income individuals. High School and College

aged people will demonstrate social uses. The 25-45 years group will be used to determine

business application and social/personal use, and finally the 45 years and above will give

us a plan to market to more senior well-refined group. This research will be done through

surveys (via email campaign through portals such as, iTunes and other on-line application

developed for the iPhone5G and interviews (in Apple stores) with the same age groups

listed above. The surveys will target to not only to current Apple customers but also

consumers not currently using Apple products. It is important to weed out members who

have a bias view to insure non-prejudice data. In order to bring the iPhone5G to the front of

the business world it is important to research different ways to grow the 15-25 year oldgroup into business uses of the product. Brand awareness will be an important tool in

taking the Apple brand from "social cool" to "business cool".

We will also ask for feedback on iPhone5G features, and implement those changes most

important to the end user in the next generation iPhone5G. To ad incentive, and encourage

users to participate we'll offer opportunities to win gift certificates. In addition, we will use

customer satisfaction studies provided by various private third party firms to get a larger

non-biased sampling. We will also allow users themselves to design their own ideal iPhone

5G on-line and use any useful ideas to further refine future iPhone 5G models. Finally, we

will continuously scour the Apple fan websites to understand what the Mac faithful are

saying, as they are our best customers.

Action Programs:


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January: Major market rollout at AT&T and Apple stores begins in earnest at the end of the

month, after finals week for college students. Also available on Apple.com along with select

academic institutions and reputable retail chains with well laid out Apple sections.

Roll out with ambitious ground breaking ads like famous 1984 Apple ad which introduced

the Macintosh slowly over the month as to build anticipation, even to the Mac faithful. The

TV ads will all appear on the highest rated shows. Selectively put print ads in high end and

famous magazines to emphasize the products innovations. Introduce Beatles Edition

rollouts out in select numbers. Steve must appear in numerous special appearances at

Apple stores across the country to ramp up excitement.

February : Back to school special for students in high school and college. Students get a

100-dollar rebate when purchasing a new Mac Book with the iPhone5G. Availability will

expand fully to other mass vendors like Best Buy and Amazon.com. New advertising

campaign also is initiated to refresh consumers on the product after the hype.

march: New ad campaign for the holidays. Price remains the same to increase profitability,

no discounts. Continue to tie the iPhone5G will other Apple products like Apple TV and

Apple Airports.

April: Build buzz for next generation iPhone5G at Macworld. Announce cheaper iPhones

along with more Pro versions at appropriate price levels.

2011: iPhone5G 2nd generation released with another new ad campaign emphasizing the

new features. Low cost, smaller version with more limited features released, called iPhone

5G Nano. High-end professional version called iPhone5G Pro released with greater

memory, battery time, video conferencing and professional application support. The

original iPhone5g will get an incremental upgrade. Promote heavily during the Olympics in

Beijing to further international presence of Apple and the iPhone5g.

2012: iPhone5G gets major technical upgrade with advanced 3D abilities along with a host

of still being developed features.

2013: The entire galaxy of the iPhone5G line will be the leading player in the world of

wireless technology with the goal of at least 50 percent market share.

Budgets:


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Total first year sales revenue for the Apple iPhone 5G is projected at $75 million, with an

average wholesale price of $150 per unit and variable cost of $100 per unit for a unit sale

volume of 500,000. We anticipate a first year loss of up to $8 million on the 5G model.

Break even calculations indicate that the 5G will become profitable after sale volume

exceed 650,000, early in the products second year. Our break even analysis of Apples first

smartphone product assume per unit wholesale revenue of $150 per unit, variable cost of

$100 per unit, and estimated first year fixed costs of $32,500,000. Based on these

assumptions, the break-even calculation is

32,500,000

$150 - $100

= 650,000 unite

Controls


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Implementation

We are going to give workers $5 incentive pay for every non reject phone they produce

(20% of worker total compensation will be incentive pay), $10 per phone six sigma quality

program, and compensate each worker $5000 each year for best practice training. In

addition, we are planning to use control measures to closely monitor quality and customer

service satisfaction. The iPhone5G will include an Apple Customer Service Bar and a

customer service phone number stored in the phone book so that consumers can contact

the main headquarters about any possible technical problems. This will enable us to react

swiftly in correcting any problems that may occur. Other early warning signals that will be

monitored for signs of deviation from the plan include monthly sales (by segment and

channel) and monthly expenses.

In case of slow sales, we will immediately offer rebates of iPhone5G to customers who have

purchased other Apple products. This will promote synergy and lure buyers to buy otherApple products as well. Apple can demonstrate their understanding of the upper-level

consumer for whom style is a key purchasing determinate, and can simultaneously develop

deep relationships with two very different segments: those who have it and those who

aspire. The combination of updating the product and our low price will allow us to build

market share and attract repeat buyers.

Marketing Organization


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Our consulting group of four holds the overall responsibility for the iPhone's marketing

strategy and direction. To better adjust our strategy to both domestic and international

markets, we will need additional Apple Marketing Managers to execute localization

strategy. This is best implemented from the top down. In order to for our strategy to work,

we will need CEO Steve Jobs to dedicate the iPhone5G team of Marketing Managers,

Operations Managers, Design Engineers, Hardware Engineers, Software Engineers, Product

Managers and Business Development Managers. These people will be essential in building

not only the product, but also the relationships necessary for sustained growth.

Apple's Marketing Managers will need to seek ad agencies to implement our promotion.

However, Steve Jobs will be the ultimate media spokesperson. As Marketing Managers

come up with new feature and attributes, Operations and Engineering will need to

implement them quickly to ensure customer satisfaction and loyalty.

Our Process:

To plan our strategy we will meet monthly with the board of Apple, present our

information, and make a proposal for continued marketing efforts. Before each meeting our

team will meet in private, with each person presenting their own proposal based on the

information they have learned. After the initial proposals, we will vote on the best one or

come to a compromise. The final proposal sent before Apple is the result of that meeting.

Conclustion:


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References:

1. Principles of MarketingKotler,Armstrong

13th Edition

2. www.apple.com

marketing plan for apple iphone 5g

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