Apple Ipod Marketing Plan

Uploaded by joeydaprof on Jun 12, 2006

Assessment task

Marketing Plan

Apple Ipod

Contents

Executive Summary____________________________________________3
Situation Analysis
-Market Analysis_______________________________________________3
-Product Analysis_______________________________________________4
-SWOT Analysis_______________________________________________ 4
-Competitor Analysis ___________________________________________ 6
Marketing Objectives__________________________________________ 7
Identifying Target Market
-Selecting Target Market_________________________________________7
-Target Market_________________________________________________7
Developing Marketing Strategies
Marketing Mix:
-Product________________________________________________________8
-Price__________________________________________________________8
-Promotion______________________________________________________9
-Place__________________________________________________________9
Implementing the Marketing Plan__________________________________10

Monitoring and Controlling

-Developing a Financial Forecast____________________________________10
-Comparing actual and planned results________________________________11
-Revising the marketing strategies____________________________________11
Appendix ______________________________________________________12
Appendix A_____________________________________________________13
Appendix B_____________________________________________________14
Appendix C_____________________________________________________15

Executive Summary

The focus of this report is on new Apple Ipod product that has created increasing
demands in various outlets.
This product allows consumers to download not only their favourite music but also
books and other literature which can be read and listened to. Additionally this
Ipod can be used in your car and in other mobile settings.
This report is for Apple to give a brief description of this product. Within this
marketing report there is an insight of the situation analysis of this product,
marketing objectives, the target market, marketing strategies that have been used
and the forecasted strategies, monitoring and controlling.

Situation Analysis

Market Analysis
Internal Influences
• Management: Effective management is required for the training and development
of employees for the continue innovation of Apple Ipod and for retraining
sufficient funds during competitor introducing new product.
• Capital Availability: Competition may cause mishap in the cash flow.
Sufficient funds must be available when competitors unpredictably put forward their
product in the market.
• Technological Adoption: Technology must be adopted to improve overall
efficiency. It must be integrated directly into operations (to increase
productivity), as well stay on date with the amounts of Ipod’s ordered, made and
delivered.
External Influences:
• Competitors: Competitors will regulate what, when, how and why strategies
will be adopted. The introduction of new products will greatly influence Apple
Ipod.
• Overseas Influences: The breaking down of barriers between countries can
increase the sales of the new Apple Ipod, as more people are made aware of the
product.
• Demographic Patterns: Males and females from the age of 12years and over will
be in favour of this product because of its new innovation to be able to not only
play music but also books and other literature which would in fact appeal to them.

Product Analysis

Product Lifecycle

X- The stage that Apple Ipod is currently in.

Apple Ipod is currently in the growth stage, where more and more people are aware
and purchasing the product, increasing product demand. Sales are growing rapidly
and profits are rising quickly, however competition is increasing as competitors
are more cognisant of the tactics of Apple Ipod i.e. using new features to market
their product. During this stage there are also opportunities for wider
distribution, which will result in higher sales.

SWOT Analysis

Strengths: Weaknesses:
• There are enough financial resources that are allocated for the operation of
this product.
• Appealing to both males and females
• Good competitive skills
• Past products have had a good reputation
• Advanced key technology
• Product innovation skills • The product has a narrow product line
therefore unable to expand into other markets
• High prices may push potential customers to competitors with affordable
prices
• Introducing a new product, when the niche market is already controlled by
other competitor’s
• Poor use of promotional strategy, as consumers were not properly introduced
on the products significant use.

Opportunities: Threats:

• Opportunity to capitalise financially

• Develop an admirable/exceptional goodwill that can have monetary value in
future
• Opportunity for fast market growth as parents may see this as an educational
device as it is able to read books.
• Growing market trend
• New competitors continually enter the market.
• The threat of not appealing to target market at all therefore generating a
loss as opposed to profit
• Entry of imitators
• Vulnerable to the business cycle
• Tough laws being placed on internet MP3 downloads

Competitor Analysis

Competitor No.1 Competitor No.2

Competitor Name Rio Carbon (5GB) iriver H10
What are the product objectives? Increase sales of this product by 10% by the
next year. To be the leading supplier of MP3 players in all markets in which the
company operates

What is the products current strategy? Sell off the products at competitive and
profitable prices and maintain customer satisfaction To top competitors product
technology by innovating the current product
What are its strengths? Rio Carbon offer their product at affordable prices which
appeal to consumer’s while maintaining strong quality The iriver H10 out
classes the competition in the features that they offer to consumer’s
What are its weaknesses? The Rio Carbon is a new competitor in the competition
and therefore it may be difficult for them to gain market share because of the
unknown brand loyalty The iriver H10 comes at a very costly price which may lead
customer’s to purchase competitor’s products at an affordable price
How does the Apple Ipod match up against the other products? The Apple ipod is
much more popular because the market is aware of their product giving them an
advantage over Rio Carbon although Rio Carbon is a new competitor which may
intimidate Apple Ipod with their associated low costs. The Apple ipod is much
more popular because the market is aware of their product giving them an advantage
over iriver H10 although iriver H10 has been receiving outstanding reviews on their
excellent use of new technology which may be a threat to Apple Ipod’s sales.

Marketing Objectives

The various marketing objectives that will assist in the achievement in the overall
product goal are:

• To be the leading supplier of MP3 players in all markets in which the company
operates
• Increase in sales by 20%
• Increase in revenue by 20%
• Progressively increase market share by at least 15% within the year.
• Expanding distribution to department stores by 10%
• Increasing brand awareness to 60% of potential customers
• To expand existing markets by 10% in the next quarter. A promotion campaign
will be introduced to encourage present buyer to increase the use of the product.

Identify Target Market

Selecting target market

• Apple Ipod is aimed at young adults particularly those between the age of
12-25
• It will appeal to both males and females
• Targeted at the niche market creating product desirability
• Middle/high class
• People who have a passion or interest in music and/or literature
• This is large enough to engender revenues and profits

Target Market Strategies

Apple Ipod has adopted the differentiated market for their products as its products
are characterised in age, gender and desire for image. Apple ipod is used by young
adults and teenagers and for both male and female.

Develop Marketing Strategies

Marketing Mix

Product
This product allows consumer’s to download not only their favourite music but also
books and other literature which can be read and listened to. Additionally this
Ipod can be used in your car and in other mobile settings (refer to appendix A for
product).
Positioning – aimed at the middle to high class, therefore product will be
positioned in department stores associated with prestige products. This will create
a strong, clear and consistent image of the product in the consumer’s mind which is
essential.
Branding – Apple Ipod will give consumer’s one year warranty to assure consumers of
the quality of the product. This will associate a level of quality with the brand
and will not only increase brand loyalty and repeat services, but also sell
products at a premium to competitors.
Packaging – Apple Ipod’s packaging will:
- Have product identification so easily separated from its competitors
- Product differentiation so it is unique
- using the most cost efficient method of packaging
This will make the product both functional and desirable to possible consumers.

Price
Apple Ipod will use cost base method to derive its prices. They will add a 65%
profit margin to the cost of the product to gain efficient revenue.
Price and quality interactions –
- In this way, price creates perception of quality.
- High price attract an image of quality
- This will allow Apple Ipod to increase its market share

Promotion

By promoting the Apple Ipod this will satisfy the needs of the customer’s and
business. Consumers will gain better understanding of the product and how it can
satisfy their needs, but on the other hand will help Apple Ipod increase their
profits and market shares.
Advertising - Apple Ipod will spotlight on a successful advertising campaign
comprising of magazine and television advertisements focusing on (refer to appendix
B for magazine advertisement):
- The target market (teenagers and young adults)
- How often they want the target market to be exposed to the advertisement
- When they want to reach their target market
- Most cost efficient methods to fulfil the above
By doing this Apple Ipod will add value to their product by altering consumer
perceptions

Below-the-line promotions – Apple Ipod will use a direct method to induce customers
to purchase their product by offering any Ipod accessory (refer to appendix C for
accessories) per customer for half the value price with every purchase of a new
Apple Ipod. This will allow the business to directly measure the success of the
campaign by observing the sales rate of the promotional tool.

Place

Distribution channels – Apple Ipod will use indirect distribution where an

intermediary organisation will be involved in the process. The intermediaries will
provide functions such as:
- Fragmenting bulk supplies of inventory
- Give financial services to retailers
- Increase ease of customer purchase
This will assist Apple Ipod as they can concentrate on other areas of the business

Transportation – Apple Ipod will lease trucks in order to transport the inventory
to intermediaries. By leasing the trucks Apple Ipod will accumulate extra funds to
utilize else were.

Warehousing – inventory will be kept in a warehouse close to the intermediaries

which will minimise transport costs.
Implementing, Monitoring and Controlling
Apple Ipod Company will change because of the new added features to the product
range. For its success, Apple Ipod Company must impose several key changes.
Production needs to be on time and meet the quota demanded from wholesalers. It
must also be efficient so as not to build inventory stocks and inventory prices.
The marketing needs to be motivated and knowledgeable about the product. The forms
of promotion such as advertising must be attracting and enticing to the target
market to get the greatest amount of exposure possible for the product. This will
ensure the success of the product in the stores. Distribution of the product must
be efficient. This problem has already been taken care of with convenient transport
routes to commercial areas and transport already being arranged.

Developing a Financial Forecast

• To achieve a healthy and continuous growth in profit.

• To attain a 15% increase in market shares within the annual and achieve
positive growth in the sales of the PRODUCT!
• Minimising distribution cost

Financial forecast- marketing

2005
2006
Revenue $16,800
$16,800

Costs
Fixed costs $9,350
$0
Variable cost $6,670
$6,670
Total costs $16,020
$6,670

Net profit from marketing $780

$10,130
activities
return on marketing investments 5% 152%

Comparing actual and planned results

Financial forecasting - Apple Ipod predicted that there would be a 20% increase in
their level of sales, but sales figures were lower than expected and showed a 10%
increase in sales. It is suggested that Apple Ipod change their strategies to
motivate further sales.
Market share – Apple Ipod predicted that there would be a 15% increase in market
share, but this was due to external factors were there has been a large boost of
competitors in the Mp3 industry threatening Apple Ipod’s market share.
Profitability - Apple Ipod predicted that there would be a 20% increase in revenue,
but sales figures were lower than expected and showed a 10% increase in revenue. It
is suggested that Apple Ipod change their strategies to motivate further sales.

Revising the marketing strategies

After 6 months have elapsed we have found that you need to change your marketing
mix strategies to fix the above problems.
 As mentioned above Apple Ipod received a decrease in sales, it is
suggested that Apple Ipod change one of your marketing strategies to solve this
problem. Apple Ipod should introduce a public relations scheme to improve the
relationship between the company and their markets. Rather than advertising which
is aimed at improving the public image of Apple Ipod, public relations is aimed at
increasing a business’s sales.
 In order for Apple Ipod to gain competitive advantage and increase
market share you must readjust your marketing strategies. It is advised that Apple
Ipod add an extra feature to their current product. A new innovative feature you
may consider is cordless earphones that send the sound via Bluetooth technology.
This will differentiate your product from current competitors and will result in an
increase in market share.

Appendix A

Appendix B

Optional Ipod Accessories

iPod Dock, iPod mini Dock or iPod photo Dock Kit

iPod Camera Connector

iPod Power Adapter

iPod Dock Connector to FireWire Cable

Sony Car Cassette Adapter

Belkin Auto Charger

Griffin iTrip FM Transmitter

Monster iCase Travel Pack

Belkin TuneDok Car Holder

inMotion iM3

Belkin Media Reader

In-Ear Headphones
Griffin iTalk Voice Recorder

iPod Remote and Earbuds

Monster iCarPlay Wireless Plus

iPod Socks

Bang & Olufsen A8 Headphones

Incase Travel Kit

Belkin Battery Pack

20GB/30GB or 40GB/60GB iPod Carrying Case

World Travel Adapter Kit

Bose SoundDock

iPod Stereo Connection Kit

USB 2.0 + FireWire Cable

Appendix C

Submitted by : joeydaprof

Date Submitted : 06/12/2006

Category : Marketing

Views : 119103