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Marketing Plan Group Assignment

Apple Inc.

iGlass Marketing plan

Vinay Nair

Moe Elsharawy

Leo Oberschmidt
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Table Of Contents

I. Executive Summary ……………………………………………………..4

II. Company Description…………………………………………………...5

III. Strategic Focus And Plan……………………………………………….5

A. Mission Statement………………………………………………….

B. Goals………………………………………………………………...6

C. Core Competency…………………………………………………..

IV. Situational Analysis.……………………………………………………..7

A. SWOT Analysis……………………………………………………...

B. Industry Analysis…………………………………………………..8

C. Company Analysis………………………………………………..9

D. Competitor Analysis………………………………………………..

E. Customer Analysis …………………………………………….10

V. Market-Product Focus………………………………………………..10

A. Target markets …………………………………………………..11

B. Points of difference ……………………………………………….

C. Positioning

VI. Marketing Program …………………………………………………....12

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A. Product strategy…..………………………………………………..

B. Price strategy……………………………………………………..13

C. Place strategy

……………………………………………………...14

D. Promotion strategy ……………………………………………

VII. Financial Data and Projections ……………………………………...15

A. Past sales …………………………………………………………..

B. 5-year projections………………………………………………….

VIII. Organization…………………………………………………………..…16

IX. Implementation Plan………………………………………………...…17

X. Evaluation……………………………………………………………..…18
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Executive Summary

Apple Inc. designs, manufactures, and markets cell phones, PCs, tablets,

watches, and accessories around the world. It likewise sells numerous similar services.

The organization offers iPhone, a line of cell phones; Mac, a line of PCs; iPad, a line of

multi-reason tablets;, and extras containing AirPods, Apple TV, Apple Watch, Beats

items, HomePod, iPod contact, and other Apple accessories. It also has digital content

stores and streaming services; AppleCare support services; and iCloud, a cloud

service, which stores music, photos, contacts, calendars, mail, documents, and others.

In addition they offer other services such as Apple Card, their self-branded credit card;

Apple News+, a subscription news and magazine service; and Apple Pay, a cashless

payment service, as well as licenses its intellectual property, and provides other related

services. The company serves consumers, and small and mid-sized businesses; and

the education, enterprise, and government markets. It sells and delivers third-party

applications for its products through the App Store, Mac App Store, and Watch App

Store. The company also sells its products through its retail and online stores, and

direct sales force; and third-party cellular network carriers, wholesalers, retailers, and

resellers. The company is committed to bringing the best personal computing and

music experience to students, educators, creative professionals, businesses, and

consumers through its innovative hardware, and software services. The company's

business strategy leverages its unique ability, through the design and development of

its own operating system, hardware, and many software applications and technologies,
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to bring to its customers new products and solutions with superior ease-of-use,

seamless integration, and innovative industrial design.

As far as our new product goes we’ll be releasing an all new, state of the art

camera that’ll be in the design of a wearable contact. Our contact camera is worn like

any traditional contact but gives you the ability to record from a true first person point

of view. This technology has endless possibilities but will be primarily marketed

towards professional and college sports teams. These contacts can help coaches do a

better job in terms of coaching as well as for players it can show them what zone they

need to cover or where they need to be in certain plays and lay out an entire playing

field for the players so everyone knows where they need to be and when. Coaches can

use the recordings of previous games to better analyze the players movements and

help them be able to give better feedback to the players.

Strategic Focus and Plan

This section covers the mission, goals, and core competencies of Apple, Inc

Company History

Apple revolutionized personal technology with the introduction of the Macintosh

in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple

Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and

tvOS — provide seamless experiences across all Apple devices and empower people

with breakthrough services including the App Store, Apple Music, Apple Pay and
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iCloud. Apple’s more than 100,000 employees are dedicated to making the best

products on earth, and to leaving the world better than we found it (Tim Cook)

Goals

In the coming future, Apple hopes to overcome recent financial hardship in the

first quarter by accomplishing the following goals :

1. Overcome the financial hardships of the first quarter brought upon by

poor financial conditions in the Asian sector

2. Phase in new financing options to easily trade in phones and finance

phones over time.

3. Exit the quarter with $130 billion in net cash

Core Competency

Apple’s core competencies lie in its hardware integration and how it incorporates

its various services with its ever growing catalogue of devices. The core competencies

of apple includes

● Innovation - they are always increasing their catalogue of new hardware and

software services

● Marketing - Apple, Inc. markets all of its own products to its customer bases

either through strengthening their brand or increasing public awareness with

advertising
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● Quality - All of apple's products are marketed as high quality hardware, all

running on apples own operating systems and using apple’s own services which

are maintained frequently

● Customer service - Apple is well known for its strong customer service,

especially when looking at services they offer like the apple genius bar and their

new practice of phone trade-ins.

● Simplicity - The company tries to innovate all of its products and services while

making sure the interface is easily usable and understandable to their customer

base

● Financial performance - Apple has long been recognized as a financial leader in

the technological industry, often performing in the green even during times of

mass market failure.

Situational Analysis

Swot Analysis

Strengths

● Most valuable brand in the world

● Globally iconic

● Top Technology

● Brand of choice

Weaknesses

● High priced products

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● Limited advertisement and promotion

● Incompatibility with other software

Opportunities

● Consistent customer growth

● Lack of Green Technology

● Smart Wearable Technology

Threats

● CoronaVirus Outbreak

● Increasing Competition

● Market penetration

Industry Analysis

Apple is the second largest smartphone company in the world with 22.09%

global market share. However, it faces a number of powerful competitors in its global

smartphone markets. According to StatCounter (2019), the main competitors and their

global market shares are as follows:Samsung: 31.49%, Huawei: 10.02%, Xiaomi:

7.79%, Oppo: 4.1%, Others: 3.27%

It is worth mentioning that Apple is the market leader in the USA with 54.25%

market share, while Samsung is in the second position with 26.79% market share.

Apple’s other three big competitors in the country are LG, Motorola, and Google with

6.4%, 3.58% and 2.5% market share respectively.Apple is also the market leader in the
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UK with 49.2% market share, and its two nearest competitors are Samsung, and

Huawei with 29.12%, 9.46% market share respectively.

Company Analysis

Apple was founded back in 1976 by Steve Jobs and began to sell solely

computers. Once public they began growing exponentially and hired a team of

designers and a production line. Apple today is one of the biggest technology

companies in the world and leads in design and innovation. We offer a much bigger

product line including iPads, iPhones, iMacs and much more.

Competitor Analysis

The photography industry is estimated to be worth about 10 billion dollars.

However there is a big untapped market and that's in the professional sports industry.

All of our competitors target the casual consumer and very rarely target much bigger

clients such as the professional sports industry. However even when they tap into that

our competitors try to target the recorders that record for third person for those at

home to watch in third person what they leave out though is those who want to get not

only more inclusive footage for their audience but also for head coaches to be able to

help players become better like never before. Not to mention it can help the player

become better by also seeing where they are zoned at. By taking this different

approach it leaves our competitors to very little and allows us for at least the beginning

to have access to the entire market.

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Customer Analysis

Apple has a wide range of customers due to its popularity. From business and

media professionals, gamers/tech enthusiasts, the average middle/upper class

consumers, and everything in between. Their main demographic are young adults.

They sell globally in stores and on their website. Apple has a wide range of products

from the iPhone to the Apple watch that can meet the needs of any consumer, no

matter age or social class.

Market-Product Focus

Apple is an popular brand that is admired by many and truly has been ahead of

the curve for many years in terms of innovation and world changing technology. This

new product has potential to not only innovate and change the world but also help

establish new customers and build more brand loyalty to help grow the company. Our

product is unique and will help to introduce new customers to the Apple brand and

being that it works extremely well with all our other products it will help to get them

more acclimated into the ecosystem.With the new product however we spent a lot of

research and development costs in building it that we will be setting a high initial price

to cover all costs incurred by developing the product but being that there is nothing

else like it in the market we know that the competition is low and so after all previous

costs are covered we can skim the price slightly to be more competitive.
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Target Markets

Knowing that this product is very exclusive and expensive we are aiming for a

target market mainly consisting of college and professional sports teams. College and

pro sports always have a lot of spending money based on the amount they make not

only off of ticket sales but merchandise and also any championships they may win and

so money is no object to them as long as they can find ways to better help their players

not only be safe but perform much better and win more games. Our new contact

lenses can show players where they need to be at in the field at all times, or can show

them what routes they need to take on a specific play and can also help with coaches

being able to replay the games and watch in first person to see where the mistakes are

being made. This is a rippling effect in which this technology can help players perform

much better which helps to generate more fans and more wins which in turn generates

more revenue for the team and so we know this will be a huge success in professional

sports.

Points of differences

Our technology is so new and innovative that really there is nothing else like it

out in the market currently. The only thing that comes close to what we have to offer is

“gopro” since you can strap that on places or wear them and they can record but it

wouldn't be from a true first person point of view. Also gopro cannot be worn during a

professional game which is a huge selling point for our product and also it can pair up
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and work with an app we developed for IOS to be able to save and view live if you wish

right from our other products and so the ecosystem is seamless.

Positioning Map

Marketing program

Product Strategy

Apple is a company that produces high quality products for a high quality price.

There are tons of phones, and tablets that are offered at cheaper prices but

Apple reigns supreme. Our product will be expensive, but it will have more, and

better, things to offer than any other competitor. That is what Apple focuses on.

Apple focuses on quality over quantity. While other manufacturers’ strategy

entails churning out products one after another in a short span of time and having such

a diversified product mix, Apple preferred to stick to what it does best. This means that
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it focuses on selected products and continues enhancing them, instead of branching

out to create other products within the same category. Our product will be top of the

line, always being updated with the best software to make it not only user-friendly, but

the best product a consumer can get. Apple has complete control of its platform,

meaning the best possible operating system for its users.

Price strategy

For the pricing strategy, we will most likely be implementing a skimming pricing

strategy. This product is radically different from any other similar products on the

market, such as the google glass or microsoft holo lens. However, because these

products all incorporate some aspects of virtual reality augmentation through electronic

lenses, we can use these to approximate the price of our contact lenses. The price of

the google glasses are $999 and the microsoft hololens are $3500. The apple contact

lenses however are hardware that would be able to be worn directly on the eye while

also providing additional information based upon certain stimuli that will be

programmed in, such as information about other athletic team members as well as

team plays being transmitted from coaches to their players mid game. With this in

mind, we must charge an additional premium on these apple contacts as they offer

more uses than any other similar product on the market. We also must initially charge a

higher price to recuperate research and development costs and offset initial high

manufacturing costs.
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Place Strategy
For distribution we plan on offering our new contact lenses at all our retail stores

world wide however only keeping few in stores. The price for the product is expensive

and the majority of consumers who purchase them will more than likely be ordering

them hundreds at a time for their players. Our strategy will be to keep them on hand at

our warehouses worldwide and have the majority of them stored there ready for quick

shipment and to have our business teams reach out to potential clients and have their

orders placed. Since the orders placed will likely be hundreds at a time this works to be

able to have us better and more quickly get the product to the teams instead of

spreading them out across all our stores and having to source them. The strategy

however for keeping a few at our retail stores is so if an average consumer who is

interested in them and will likely only be buying a single pair, they can have the ability

to go to their local Apple store and pick it up or at an Apple authorized reseller who will

also carry a few at a time. This way the average but very niche regular consumer isn’t

burdened with having to go online and order it then wait for a shipment if they don’t

want to.

Promotion Strategy

For promoting our new product we will announce our new product during one of

the keynotes that Apple hosts a few times a year to announce new products. Apples

keynotes are extremely popular and effective in getting potential consumers attention.

Also since Apple hosts the keynotes yearly already to announce other products this

form of advertising for our new product won't incur any additional costs. We will also

run a few ads online and on tv just to get more recognition for the product however we
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will be focusing majority of the efforts on having a team that we will send to

professional sports coaches and owners to show them how our new product works

and how it can be used to benefit the players and organization. We also already have

our own business teams in house and available in all our retail stores so if any potential

clients do come to the store to make a big purchase they can sit with our business

teams to help better assist them.

Financial Data and Projections

Apple's sales have always continued to grow year over year and have pretty

consistently hit projections. Through the introduction of new products and services

Apple has continued to grow to become the billion dollar company it is today and has

continued to enter new markets to further grow. In the figure below it shows Apples

past sales revenue and its continued growth.

5 Year Projection

Below is our 5 year projection based on previous growth and on a very steady

growth due to the introduction of new products and tapping into new markets.

Year 1 Year 2 Year 3 Year 4 Year 5

2021 2022 2023 2024 2025
Sales projections
(Billions)
278.88 292.8 307.4 322.8 338.9
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Organizational structure of Apple

Apple uses the traditional hierarchical organizational structure. In this

organizational structure, each department of Apple excluding one will be working under

another department within Apple. Although Apple operates under a hierarchy, with their

New Chief executive officer, Apple's organizational structure has changed since the

days that Steve Jobs was in charge. Although Apple still operates through a hierarchy,

Apple's company is additionally segmented by product lines. Tim Cook has

encouraged inter departmental collaboration during his time in command of apple. The

inter departmental collaboration has been especially useful when considering its

innovation on both hardware and software fronts for its varied product lines. Apple’s

CEO hopes to further improve inter departmental collaboration within the firm as

increasing the communication within the firm would provide a more flexible

organizational structure. Although major decisions in the firm still must go through the

top branches of management, Apple has been operating under a more relaxed

hierarchy with the introduction of this interdepartmental communication.

The product that we seek to introduce would be involved with multiple different

departments. This new product would need to be manufactured by Apple’s two

hardware departments, hardware technologies and hardware engineering. This product

would also need to be additionally supervised by Apple’s software and AI divisions

while still in developement, as the product would need new software to function

properly as a contact and would need AI improvements to be able to identify different

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stimuli and provide interactive information dependent on the stimuli. Finally, once the

product had been completely developed and was able to be manufactured, it would go

to Apple’s department of global marketing and department of retail. Due to the product

having a sports focus in our initial releases, Apple will thankfully have some advantages

due to previous deals it had already struck. Apple already has a current deal with the

NBA as well as an exclusive partnership with soccer team FC Bayern Munich. Due to

Apple’s dealings with these companies, specifically with Apple Music, they already

have their foot in the door when it comes to marketing the product to the target market,

being professional sports teams.

Implementation Plan

Apple has opened over 500 stores in 24 different countries since 2001. They

have already grown to be the most valuable company in the world. Apple Inc. Is

arguably one of the most successful companies in the world, enjoying one of the most

visible brand names in the world. Its launch of new products is usually waited with

heightened anticipation by consumers around the world, and its financial performance

has been exemplary. This success can be attributed to two main factors; the visionary

leadership offered by its immediate former chief executive Steve Job and the strategic

goal of emphasizing on design and the willingness to develop new products by taking

risk of developing new products for the market.

Apple will continue to expand their market to other countries and promote the

use of the product to potential customers and give demos to our market: professional

sports teams. The use of the product will be monitored to assess what they need to
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change to optimize what the consumer’s needs out of the product. They will be in

charge of manufacturing and distributing the product. This will be important for the

success of the product.

Evaluation

Apple will monitor their sales by the success of partnerships with professional teams.

They will monitor how the monthly sales compare to projected or their target sales.

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