Marketing Plan 2011 Ideal Consultants Group Apple Company Table of Contents Executive Summary Executive Summary3 Introduction3 Purpose of the Report3 Unique Feature4 Scope of Report4 Company Profile and Information4 Apple’s Operation4 Apple Sets Singapore Plant5 Mission Statement5 Apple’s Product5 Branding Strategies5 Our Product6 Unique Feature6 Other Main features7 Attributes8 Image of the iDEAL Tab8 External Analysis8 Political Regulatory8 Economic Factors10 Social/Cultural Factors11 Technological Environment12 Industry Overview12 Competitors’ Comparison13
Internal Analysis14 Customer Profile Analysis14 Marketing Segmentation14 Product Positioning16 Marketing Objectives16 Marketing Mix Strategies17 Product Strategy17 Our Product17 Price Strategy21 Place Strategy23 Promotion Strategy24 Implementation26 Budget Expenditure26 Conclusion27 Appendices, Tables and Figures29 References30 Executive Summary Apple will be launching its revolutionary PC Tablet which will take the IT industry by storm, the PC Tablet with a holographic projection system – the iDEAL Tab. Holographic communications are no longer an effect of a movie, or a dream.
Apple has now developed a PC Tablet that is the FIRST holographic projector PC Tablet in the industry. Surveys conducted by Apple have shown that the majority of the PC Tablet users as well as a percentage of non-users have started to show disinterest in the similar functions of the current PC Tablets in the market. The insatiable hunger of consumers for advanced technology will be fulfilled by the iDEAL Tab. The iDEAL Tab satisfies the esteem needs of consumers as it significantly upgrades and boost efficiency in their daily working as well as personal life.
Sense of prestige, fame and attention received is imminent as our product is extremely differentiated when compared to rival products. This product will be extensively marketed for 12 months in Singapore from, April 2011 to March 2012. Our marketing objectives are as follows: * To achieve $35,000,000 in profit in the first year of launching the product. * To gain 5 – 10% of the market share in the PC Tablet sales in Singapore for the first year. * To increase awareness of our product in the market and also to build relationship with our customers. * To increase production from 100,000 units in 2012 to 150,000 units in 2013. To make Apple, the preferred brand of choice of professional corporate executives by 2014. Market-Skimming pricing strategy would be adopted and the price of our product would be $988. 8, and this price is offered to our retailers and distributors. We intend to sell 100,000 units of our product from April 2011 to March 2012 with targeted profit margin of 37. 3% and targeted profit returns of $36,880,000. Apple will work closely with our premium retailers like: Epicentre and NuBox, as well as other retailers like: Courts, Harvey Norman & Best Denki.
We would also be advertising on newspapers, magazines, public transport systems as well as targeting customers from the database for direct mailing advertisements to promote our product. The marketing budget is estimated to be $710,500. Introduction Purpose of the Report Our marketing plan is set for 12 months, which is from April 2011 to March 2012. We propose to introduce our all in one super gadget, which we name iDealTab. It is uniquely packed with 3D features and will be marketed extensively in Singapore due to her high demand for improved technology for great investment.
Our iDealTab will be launched in April 2012. The iDealTab satisfies the Self Esteem needs of Maslow’s theory to the owner and as a result, it: * Gives a feeling of prestige * Upgrades his/her working style * Boost efficiency in his/her daily life * Attention, fame and status are gained The Apple brand creates value by emphasizing on making people’s lives easier through its products and has a genuine connection with its customers by providing reliable staff that serves with calibre and knowledge. Unique Feature Our tablet has a holographic 3D function that allows the user to flash images like a projector.
Without the need to be plugged in, our iDealTab is best for those who demand an innovative working experience. It will be the Tablet PC of choice and it is particularly suited for business purposes. The holographic 3D function being in a PC Tablet that gives you mobility, accessibility and that added winning first impression will be the success factor. With the entire 3D craze since James Cameron’s Hollywood blockbuster Avatar and all its stunning 3D technology, we foresee that the demand for 3D has picked up and will continue to be a potentially successful supercool gadget.
Scope of Report As preparation to launch the new product, our team has devised 3 stages for the marketing plan. Stage 1 Analyze the Marketing environments that have an impact on the iDealTAB. Stage 2 Identify the marketing objectives and develop concepts of the key market strategy for our iDealTAB. Stage 3 Implementation of the plan for the iDealTAB will start from April 2011 to March 2012. A marketing budget would also be suggested. Company Profile and Information Apple’s Operation Apple, a computer company, was started in 1976 by Steven P.
Jobs, who is also the co-founder, the CEO of the company, the architect of many of Apple’s amazing products and the reason for their success. His presentation skill for Apple’s product media events are “electrifying” and revolutionary and motivates his customer, employees, investors and the worldwide computer industry. In the last decade, Apple has expanded into a huge company that specializes more than just computers. It is also one of the most reliable names in the world of technology. Apple Sets Singapore Plant The 1980s was the era of capital-intensive and high-tech industries to Singapore.
Singapore moved into the computer software services and it was known as the second ‘Industrial Revolution ‘for Singapore. Apple Computer began manufacturing PCs in Singapore in 1981. Mission Statement Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. (Source: http://www. oopertutorials. com/business/strategic-management/1952-apple-mission-statement. html ) Apple’s Product For the past several years, Apple has made a concerted effort to be more transparent about the steps they are taking to protect the environment and making their business more sustainable. Apple has come out with ultimate products which provide consumers the best computer experience possible and also endless entertainment. List down are some of the products sold in Singapore: * Tablet PCs (IPAD, IPAD2) * Smartphone (Iphone3G, Iphone4) * IPODs (Shuffle, Nano, Touch, Classic) * Apple TV Laptops and Desktops (MacBook, MacBook Pro, Mac mini, iMac, Mac Pro) Branding Strategies Apple is currently the leading brand among several other highly competitive industries, including: * The computer industry, with its Macintosh computers. * The portable music player industry, with its iPod music player * The smart phone industry, with its iPhone * And lastly, the tablet PC industry, with its iPad. Brand perception of Apple is also one of the most established ; healthy Info-Technology brands of the world. Not only that, Apple also has a very vast amount of loyal customers.
It has not only the capacity and capability to attract new customers through its brand and innovation; it has also the power to retain them. Brand personality of Apple is also very well-received among customers. Apple emphasizes on making people’s lives easier and it is a company with genuine connection with its customers. Customers’ experience also plays a very important role in Apple’s branding strategy. By expanding its retail stores in high-end shopping districts in major cities around the world, Apple is able to offer customers a direct experience of its brand values.
Staffs of Apple’s stores are not only helpful and knowledgeable, they are also not over-enthusiastic. This allows Apple’s staffs to exude a feeling of belonging to the community and allows customers to perceive that the staffs know what good technology should be like and how it adapts to people’s lives. And now, Apple’s brand strength is creating financial success for the company. Sales and margins have been growing rapidly since 2006 and have achieved record breaking quarterly financial results for the past years. Our Product Unique Feature The unique feature in our iDealTAB is that it has 3D Holographic Effect.
This being the first of its kind in Singapore will be especially appealing to high tech-savvy professionals and executives who are prepared to pay a premium price for such useful technology. A Tablet PC that “does it all”, now does even more with our 3D Holographic Effect. Allow us to explain further: Example One: Imagine being a real estate agent in Singapore and you are selling a house located in Australia to a potential buyer. Now imagine presenting that beautiful home with its serene surrounding features to the buyers with the iDealTAB via its 3D Holographic effect – instantly impressing the buyers and ultimately winning you a sale.
Example Two: Imagine you are a creative director with an advertising agency and that you are asked to clinch that mega million dollar deal by giving a knockout presentation. Now, imagine doing it all using our iDealTAB via 3D Holographic Effect capturing the attention of the company with your idea, encapsulating the deal. Example Three: Imagine being a financial wealth manager that deals with managing the wealth of high net worth customers and your duty is to present to your potential clients investment and insurance opportunities that they need and may benefit them and their family.
Now, imagine presenting their financial needs analysis and investment portfolios using our iDealTAB via 3D holographic effect. Where money is concern, nothing is better than a presentation complete with visualization and past performances displayed via holograms. Our holographic projection feature on the iDealTAB brings video conferencing, photo viewing and Internet surfing to a level not yet seen in the tablet PC industry, thus bringing APPLE to be the FIRST in achieving this milestone. Other Main features * * Facetime for conference purpose * Dual-core A5 chip Two cameras with HD video * Wi-Fi + 3G * Bluetooth * Smart covers * Multiple USB port * Adobe Flash, Mails, Safari, iBooks, GPS * iOS 4. 3 mobile operating system (world’s most advanced mobile operating system) To add on, with our iDealTAB, you can personalize email, engage in a power point presentation and create designs and illustration with your own handwritten markings or drawings. It displays professionalism and organization in your presentation. The specification below describes how this amazing tool will upgrade your working style and boost your efficiency.
The iDealTAB is capable of doing everything a normal personal computer does but it just does it more efficiently. Attributes * Height: 241. 2mm, Width: 185. 7mm, Depth: 8. 8mm, Weight: 613g * Storage – 16GB, 32GB, 64GB * Display – 9. 7-inch (diagonal) LED-backlit glossy widescreen Multi-Touch display with IPS technology and 3D touchscreen. * Chip – 1GHz dual-core Apple A5 custom-designed, high-performance, low-power system-on-a-chip * Battery – Up to 10 hours of surfing the web on Wi-Fi, watching video, or listening to music Image of the iDEAL Tab External Analysis Political Regulatory Patents (IPOS)
The Intellectual Property of Singapore (IPOS), a statutory board, is the lead government agency that advises on and administers intellectual property (IP) laws. IP can be an invention or innovation, special names and images used in trade, original designs or an expression of an idea. A Patent is a right given by the government to the owner of the invention/product to enable him to prevent others from using, copying or making the invention without his consent in the country in which he has obtained patent protection. Our iDealTAB will be registered with a patent to protect our market competitiveness. Source: http://www. ipos. gov. sg/leftNav/pat/Introduction+And+Fundamentals. htm ) Consumer Association of Singapore (CASE) The Consumers Association of Singapore (CASE) is a non-profit, non-governmental organization that is committed towards protecting consumers’ interest through information and education, and promoting an environment of fair and ethical trade practices. Our iDealTAB is proved reliable and is able to provide quality assurance to customers as it is Case Trusted and abided by CASE guidelines. (Source: http://www. case. org. sg )
Info-communications Development Authority of Singapore (IDA) Policies and Regulations constitute a large part of IDA’s efforts to create conducive info-comm environment that is both pro-consumer and pro-business. To ensure sustainable growth and competition in a multi-operator, multi-network environment, IDA formulates and develops short- and medium-term info-comm-related policies, as well as standards, codes of practices and advisory guidelines – all of which are enforceable by IDA – pertaining to issues such as licensing, interconnection, resource and competition management (Source: http://www. ida. gov. g/Policies%20and%20Regulation/20060416174257. aspx) Quality Ratings Singapore has the 2nd highest Internet penetration in Asia-Pacific penetrating 181. 6% household broadband. We rank 32nd globally with an AV Connection speed of an average of 2,624 (KBPS). (Source: http://www. contactsingapore. org. sg/why_singapore/rankings/living_conditions/#006) Political Implication and Fiscal policies of the Monetary Association of Singapore (MAS) Singapore’s tax policies, although providing the main source of funding for the government, seek to enhance its economic competitiveness and attract foreign investments to Singapore.
This combination of fair tax policies and prudent expenditure programmes are key reasons for Singapore’s successful fiscal policy over the years, which complemented the monetary policy in promoting sustained and non-inflationary economic growth. As Singapore’s fiscal policy is directed primarily at promoting long-term economic growth, rather than cyclical adjustment or distributing income, the Singapore Government has adopted the following principles in its conduct to meet its objective: (Source http://www. sgs. gov. sg/macro_overview/macrooverview_fiscal. tml) Economic Factors Economic Growth The Ministry of Trade and Industry (MTI) announced on 14th April 2011 that Singapore’s economy continued to grow at a healthy pace in the first quarter of 2011. The economy expanded by 8. 5 per cent on a year-on-year basis, compared to 12. 0 per cent in the previous quarter. On a seasonally-adjusted quarter-on-quarter annualized basis, the economy grew by 23. 5 per cent. This is a strong improvement from the 3. 9 per cent growth in the previous quarter. (Source: http://app. mti. gov. sg/default. asp? d=1 ) Consumer Price Index (CPI) The Consumer Price Index (CPI) measures price changes in a fixed basket of consumption goods and services. The consumer price index in March 2011 rose marginally by 0. 1 per cent over February 2011. The higher costs of housing, clothing ; footwear, and “recreation ; others” were partly offset by the lower cost of transport. Excluding accommodation costs, the consumer price index remained unchanged in March 2011. (Source: http://www. singstat. gov. sg/news/news/cpimar2011. pdf ) Monetary Policies
The MAS manages the Singapore dollar (S$) exchange rate against a trade-weighted basket of currencies of Singapore’s major trading partners and competitors. The composition of this basket is reviewed and revised periodically to take into account changes in Singapore’s trade patterns. This trade-weighted exchange rate is maintained broadly within an undisclosed target band, and is allowed to appreciate or depreciate depending on factors such as the level of world inflation and domestic price pressures. MAS may also intervene in the foreign exchange market to prevent excessive fluctuations in the S$ exchange rate.
Employment Amid the healthy economic expansion, employment creation in the first quarter this year was fairly strong. Preliminary estimates show that total employment grew by 23,700 in the first quarter of 2011. The increase was expectedly lower than the seasonal high of 33,900 in the fourth quarter and the robust 36,500 gains in the first quarter last year, supported then by the strong hiring’s arising from the integrated resorts and the recovery from the 2009 recession. (Source: http://www. mom. gov. sg/Publications/mrsd_Q12011empsit. pdf ) Inflation Rate
Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well-known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. The inflation rate in Singapore was last reported at 5 percent in March of 2011. From 1962 until 2010, the average inflation rate in Singapore was 2. 73 percent reaching an historical high of 34. 00 percent in March of 1974 and a record low of -3. 10 percent in September of 1976. (Source: http://www. radingeconomics. com/singapore/inflation-cpi ) Social/Cultural Factors Quality of Living Apart from being a great place to work, Singapore has the most motivated workforce in Asia and is ranked 3rd in the world. Also known to have the best quality of living in Asia, Singapore is the best location in the world for Asians to live. This allows its people the ability to earn a steady income thus increasing their purchasing power. Dual Income Household With Singapore’s high standard of living and some families even earning dual incomes, this will influence consumer’s buying behavior.
The ability to afford to own a PC is achievable now compared to 10 years ago. Rising Trends in Gaming and changes in Travelling Patterns The rising trends in gaming amongst the youths today will encourage customers to purchase and own a PC Tablet; perhaps gaming with 3D Holographic Effects can further engage a player in his games. For a person who is travels often, either for business or leisure, they may still be able to continue communications without borders, with business associates or family members.
Social Implications “Because dual income families are becoming more common, the decision maker within the family unit is changing” hence allowing the working mother and father shorter quality time spent with their children. This in turn becomes a determining factor where guilt replaces a parent’s idea of covering up time less spent with their child and replacing it with purchasing a product for the child instead. (Source: http://www. udel. edu/alex/chapt6. html) Technological Environment Technological Development
Role of the Internet has helped greatly in building gaps between people, enhancing and improving human communications since its invention. Because there is a demand in technologies, human has come out interesting ideas to create convenience to the society. Nowadays, things are made easier for the consumer and almost everything can be done online, for example, a customer no longer need to spend hours at the mall on their feet when they can instead, scroll amongst hundreds of choices of products in the catalogue found in the mall’s website in the comforts of their own home.
We also, now have thousands of applications which is easily downloaded from the server effectively and allows the user easy accessibility to information that was once before done by flipping the pages of a Yellow pages book. Research and Development Besides this, with rising demand for better and more advanced product, companies are setting aside billions of dollars into research and development – all to produce a much more improved product based on the needs and expectations of today’s customers. Technological Implications Where once there were horse carts, now we have jet planes and automobiles.
The turn of the century has allowed us to witness a technological revolution unlike anything that’s been experienced before since the dawn of time. With newer and faster, smarter machines, communications are easier, travelling is shortened and information is obtainable at the touch of a button. Industry Overview The consumer market for PC Tablets are still in its baby steps, yet speeding fast forward due to multiple and increasing awareness and competition amongst other manufacturers. Already in 2011, we have seen an influx of new PC designs with sleeker and more advanced device capabilities.
Nevertheless, with Apples reputation, we can use this opportunity to our best advantage. Competitors’ Comparison We have categorized our top three competitors’ products from our direct competitors in the market. Direct Competitors Direct Competitors: (Base on Tablet PCs only)| BRAND| Samsung Galaxy Tablet| Hewlett Packard Slate 500| PRODUCT| * Specialty Product * Features: 16GB with additional microSD slot, Android, 7″ Touch screen Active Matrix TFT Color, Flash support, HSDPA network connectivity option * Differentiated Product| * Specialty Product * Features: 1. 86GHz processor Windows 7 PRO, 8. -inch diagonal LED, Multi-touch screen, Bluetooth, 64GB SSD, SD Slot, Two webcams, Wireless connection * Differentiated Product| PRICE| * Target Pricing & Cost-Plus Pricing Approach * Selling Price @ $998 for 16GB| * Target Pricing & Cost-Plus Pricing Approach * Selling Price @ $799 for 16GB| PROMOTION| * Pull Promotion Strategy for both. Promotion Tools: * Print Advertising (Newspaper, Magazines, Brochure) * Online Advertising (Internet, Brand Website) * Outdoor Media Advertising (Bus-stops, Taxi, Plasma Screening at selected electronic outlet. * Customer-Oriented Sales Promotion by Service Provider (i. e. Harvey Norman, Courts) Promotion – Rebates| * Pull Promotion Strategy for both. Promotion Tools: * Print Advertising (Newspaper, Magazines, Brochure) * Online Advertising (Internet, Brand Website) * Outdoor Media Advertising (Bus-stops, Taxi, Plasma Screening at selected electronic outlet) * Customer-Oriented Sales Promotion by Service Provider (i. e.
Harvey Norman, Courts) Promotion – Rebates| PLACE| * Indirect Marketing Channel for both the product * Selective Distribution strategy (All mobile phones and electronic stores, Gadget Shows, Courts Outlet)| * Indirect Marketing Channel for both the product * Selective Distribution strategy (Hewlett Packard Service Centre, Electronic outlets (Courts, Harvey Norman), IT shows)| Table 1. 1 Direct Competitors Based on Tablet PCs only (Source: http://www. tabletpcreview. com) Competitive Findings Singapore has a monopolistically competitive market for the PC Tablet industry.
The competitive level is very high in nature as a result of multiple companies aiming to be at the top of the industry. Competitors are free to enter and exit the industry, and at the same time split the market share by producing products of similar nature. With so many brands for customers to choose from, Apple faces intense competition and must have the capability and capacity to maintain and improve product quality as well as the reputation of our company. Major rivals like, Samsung and Hewlett Packard are also introducing their PC Tablet into the market.
Though their prices are very competitive, we have no concerns for it as we will be adopting the market-skimming pricing strategy, and our unique value surpassed the features of rivals’ products. Apple’s marketing strategy would be focusing on creating greater value so as to capture more customers as well as building strong customers relationships so as to gain customers confidence. Extensive research and market survey would be conducted to identify customers’ feedbacks. Sales promotion and advertising through the media and newspaper will also be conducted to achieve and to create public awareness. Internal Analysis Customer Profile Analysis
Marketing Segmentation Market Segmentation is the identification of portions of the market that are different from one another. We have chosen Demographic Segmentation which consists of dividing the market into groups based on variables such as age, income, occupation, education and generation and also Behavioral Segmentation which includes occasions, benefits, user status, user rates, loyalty status, readiness stage and attitude toward product. Demographic Segmentation Age group As for the targeted age group for our all new iDealTab would range from 20-34yrs old who demand for an innovative learning and working experience Income base
Apple will focus on marketing the product to those who are drawing an annual income from $50,000 to $100,000 which could be from high income earners. Occupation Our product would be appealing to those Corporate Managers who are highly-skilled and organized. Education Our product would also be appealing to college graduates and students aware of the latest and most popular gadgets and are willing to own our iDealTAB for that ultimate education experience. Generation Our targeted market base demands for an innovative learning and working experience. They are mostly in Generation X group Behavioral Segmentation Occasions
As for the occasion’s usage of the iDEAL Tab it would be on a regular basis as it is not only mend for business usage but it comes with many other applications which are suitable for work and play. Benefits It would be a beneficial product for many who are looking into more convenience in their daily life. User Status Our iDEAL Tab will also be an interesting product for potential user as they can identify the need of the product in their daily life. User Rates It would be an super gadget for those heavy user as it will offer them quality in their presentation and magnify the impact of their aim to close the deal will be what interest them.
Loyalty Status It would be easier to attract consumers who are either medium or strongly loyal to the brand. Readiness Stage This product is also for consumers who are informed and interested to own the iDealTAB. Most importantly, we will focus on the consumers who are intending to buy our product. Attitude towards Product We will also target our consumers who has enthusiastic attitude towards the product. Product Positioning Product positioning is one of the many important aspects of marketing a new product. It is what the customer believes about a product’s value, features, and benefits.
It compares to the other available alternatives offered by the competition. These beliefs tend to base on customer experiences and evidences rather than awareness created by advertising or promotion. Our ideal Tab released with differentiated product positioning is bound to make players chase for the technology wave, focusing on the wisdom of smart business people, opening a new realm life. Marketing Objectives Objectives Naming our marketing objectives allows us to set goals and evaluate the progress upon the implementation of our product. We have listed five major objectives and have listed them below.
Figure 1. 2 Marketing Objectives Profitability Objectives: * Target Profit earnings – to achieve $35 million in profit in the first year. Market Share Objectives * To gain 5 – 10% of the market share in PC Tablet sales in Singapore in the first year. Promotional Objectives * To increase awareness of our product in the market and also to build relationship with our customers. Objectives for Growth * To increase production from 100,000 units in 2012 to 150,000 units in 2013 Branding Objectives * To make Apple brand the preferred brand of choice of professional corporate executives by 2014.
Marketing Mix Strategies Product Strategy Our Product As mentioned briefly above, our iDealTab, aimed at Corporate Managers, carries a unique feature of 3D Holographic Effect, is tangible and enhances the user’s day to day life, either for personal use or business use. It is also a durable good which usually lasts over many uses. Given that our product has the first 3D holographic effect in Singapore and provides a convenience in their work presentation, lecture presentation, movie screening and many more usage of our 3D holographic effect.
During the launch stage, we could get customers’ feedback and response on our product and this would be a key element for us to measure, monitor and evaluate how effective our strategies have been. Product Development We will be using the specific sequence of steps to make our iDealTab a ready for market product. The diagram below shows the new-product process, there are seven stages to it, which we will be used to identify business opportunities and convert them into saleable products. 1. New Product strategy Development 2. Idea Generation 3. Screening an Evaluation 4. Business Analysis 5.
Development 6. Market Testing 7. Commercialization Figure 1. 3 Seven Stages of the New Product process Product Life cycle (PLC) Product Life Cycle is the stages of a new product which goes through in the market-place. The concept of PLC describes introduction, growth, maturity and decline. We have to acknowledge the fact that sales of a new product will take a certain trend over a period of time. Our iDealTAB will have a PLC life span of 24months and the following is an analysis of the four stages of product life cycle for our iDealTAB: 2MONTHS 7MONTHS 2MONTHS 1MONTH Figure 1. Product Life Cycle Curve (Source: http://www. soopertutorials. com/business/marketing/2431-product-life-cycle. html ) Introduction Stage (2 months) While our new product enters the market, it needs customers’ awareness and acceptance. Our Marketing budget would be high as we may need to use specialized promotion strategies to market our new product. Our production capacity is underutilize because demand for our new product is low and cost per unit in price is high. We have to push extensive promotion strategy at retail outlets to create awareness and also interest to stimulate the demand for our product.
Growth Stage (7 months) In this stage of sales, our sales will rapidly increase and our product will be accepted. Aggressive promotional strategies are required to position the brand in the mind of customers and let them feel our product presence everywhere. We will capture the value for the product and also build relationship with customers. Price for the product is maintained and support services may be added to gain customer trust. This would be a very important stage and we must continue to pursue product improvement to interest consumers and also position our brand in our customers’ minds.
Maturity Stage (2 months) In this stage, sales will increase at a decreasing rate as few buyers enter the market. We will work towards our product price by cutting our price to defend our market share. This will increase the unit produce and will reduce the cost and benefits. We will also focus on our Marketing Department to adopt an appropriate promotion strategy to pull our customers’ interest. The focus on promotion strategy will also help us to play our part with competitors. Decline Stage (1 month)
This is the critical stage for our product as we may need to take critical decision. In this final stage, our Marketing Department should innovate to change the style of application and shape our product. Our revenue will drop due to new products are launched to the market. In this stage, we also reduce our price and offer discount. We will also focus on looking at other segments to extend if possible chances are given. Finally, we will maintain the product as it should have captured customers’ who are brand loyalty. Classification
Our product is classified is under Shopping Product which is targeted to a significant group of buyers who is in search for and who purchases a PC Tablet due to its unique characteristics and brand identification. Our iDealTab is a fairly expensive gadget for consumers. Our product will be sold on a indirect selective method, giving our customer to purchase it in all mobile phones and electronic stores. Product Packaging Apple design their product using less material, ship wih smaller packaging, free to many toxic substances, and the product will be energy efficient and recyclable as possible.
This would give focus our Apples environmental impact. This shows that Apple is environmental consent. We use specially chosen packaging material and environmentally friendly material for our product to promote Apple’s product and also to keep our loyalty customers in hand. Price Strategy Market-Skimming Pricing Strategy Upon conducting elaborate market studies on the PC tablet industry, and taking the aspects and the unique feature of our new product into consideration. We have decided to adopt the Market-Skimming Pricing Strategy as our product is technologically new, innovative, unique and there are no substitutes available in the market.
Adopting the Market-Skimming Pricing Strategy opens a window of opportunity for the company to maximize profit as there are no competitors nor will there be any new entrants any time soon to split our market share. Due to the uniqueness of our product, in terms of being technologically advanced by a gargantuan margin, when compared with existing market products which offers the same conventional features, and taking the insatiable appetite of Singaporeans for new technology into consideration, customers will be more than willing to pay a higher price for our iDealTAB.
By setting a higher price in the initial introduction, it will be beneficial as our research and development cost would be recovered within a short span of time. And as time goes by, the price would be reduced gradually so as to target and attract the remaining market segment. However, for this strategy to work, we have to adopt the following conditions: * Production and distribution costs must fall as sales volume increases. * Apple’s Marketing Department must maintain strategic interactions with its retailers so as to achieve market awareness and also to simulate sales. Maintaining constant production of high quality and durable products so as to gain customers’ confidence and allowing them to perceive that the product is worth its price. Cost-Plus Pricing Approach Computing costs such as fixed cost, variable costs for production, distribution and selling cost are imperative when deciding on launching the iDealTAB. To achieve that, we would be using the Cost-Based Pricing Approach as this method is straight-forward and simple for a company to determine the price of a product or service. Illustration of Mark-up The illustration of markup is as follows: Variable Costs: $600
Fixed Costs: $2,000,000 Expected unit sales: 100,000 in 1 year iDealTAB unit cost per unit is given by: Unit Cost = Variable + Unit Sales = $600 + ($2,000,000100,000 units) = $620 Apple mark up 44% on sales Mark up price = Unit Costs( 1-Desired Returns on Sales) = $6201-0. 627 = $988. 8 Projected profit per unit for iDealTAB Projected profit per unit = Markup price – Unit Cost = $988. 8 – $620 = $368. 8 (Profit margin of 37. 3%) Project profit for sales of 100,000 units in 1 year Project profit for 100,000 = $368. 8 x 100,000 units = $36,880,000
Place Strategy In order for us to achieve success in maintaining our product, it is important to reach our prospective buyers, either directly or indirectly through channels of distribution, in which case, we engage intermediaries. For Ideal Tab we have decided to go through marketing channel which allow our customer to purchase effectively via intermediaries that performs a transactional function. This channel is most common when a retailer is large and can buy in large quantities. Ideal Tab will be distributing the goods to retailers like ePiCentre and NuBox, who are the main distributors of Apple products.
The diagram below shows the steps of one tier indirect channel: Figure: 1. 5 One Tier Indirect Channels Vertical Marketing System Vertical marketing systems are professionally managed and centrally coordinated marketing channels designed to achieve channel economies and having maximum impact. In defining the above, an administered vertical marketing system suits our plan best as, due to Apple’s reputation, we will be able to obtain cooperation from the retailer in displaying, promoting and pricing our product. The retailer will benefit from this buyer – seller linkage.
To successfully cover the best out of the target market, we need to choose the selective distribution method where only a selected few retailers in a specific geographical area are to carry iDealTab Promotion Strategy Pull Strategy Our iDEAL Tab will be using the Pull Strategy to promote our product. The Pull Strategy will be used to pull the demand from the consumers. With our Pull Strategy, the consumers will demand for our product from various channel members, who will then demand it from the manufacturer. Below is the diagram shown for our Pull Strategy. Pull Promotion Strategies DEMAND DEMAND Figure 1. Pull Strategies Apple will be using three Integrated Marketing Communications tools to gain awareness from customer and also to provide a consistent message across all consumers. We will be coordinating Advertising, Sales promotion and Direct Marketing promotional tools to communicate with our customer. Advertising: Introduction Stage Print Media – Newspaper (The Straits Times) The Straits Times will be used to advertise our iDealTab as newspaper is a very important local medium with excellent reach potential to consumers. The Straits Times provides quality news and is the most-read newspaper in Singapore.
The advertising will focus on our unique feature we have in the iDealTab and this will be publishing during our introduction stage for the product. Our advertising in The Straits Times will reach large numbers of people and it will create brand awareness. Print Media – TODAY We will be also advertising using TODAY paper as it the nation’s second most-read newspaper. This paper will capture our targeted group, working adults who are most using public transport to be at work. TODAY paper will be given out for free in most of the MRT station and bus interchange and this will boost up our product awareness.
We will be using the TODAY paper advertising during the introduction stage of our product for one week. Print Media – Magazine (8 days) We will advertise on 8 DAYS which is consistently Singapore’s best-selling English language magazine. Our iDealTab will be publishing full page on the gadget of the week section. 8 days is a powerful source of advertising as it has high-quality colour and can convey complex information. The readers are mostly young adults who are more onto movies, outing, gadgets, showbiz and lifestyle.
We will be using full colour page advertising bringing out our unique feature and main specifications for 4 weeks from our product launched day. Outdoor Media – MRT Station (Pillar) We will be advertising our iDealTab in MRT Station Pillar concourse level. The launch of our iDealTab will put up at Orchard Station where there is high volume of human traffic. With MRT being the main mode of transport to Orchard Road, shoppers need to access through the station and this will increase our brand awareness with eye-catching advertisements which will catch the attention of target consumers.
Sales Promotion: Maturity Stage Premiums Apple will reward our first 500 customer with a $100 Nubox Voucher when they purchase our iDealTab at the upcoming road show from the one month promotional period. This premiums voucher is given to buyers to give them more savings and value for the purchase. This is a short term one month promotion for our product. Deals We will also work together with our electronic outlets (e. g. Epicentre, Nubox) to promote deals for our iDealTab. This would be in a short-term during our maturity stage.
Our retail outlets will offer the special deal to the first 50 shoppers who spend a minimum of S$300 from its appointed outlet purchasing handset or any accessories will get a chance to grab our 3D IdealTab at 20% discounted rate. Direct Marketing: Growth Stage Groupon Promotion (Tie-up with Citibank) We will Tie-Up with Citibank during the sales promotion exclusively to the first 5,000 Citibank titanium card members. They will get over 30% discounts on Groupon Deals when they pay with Citibank Titanium card. We are tapping with shoppers by publicizing our IdealTab at Citibank Website by using ‘purchase wit purchase’ sales tactics.
This will be a powerful tactic to increase our customers and also to give them savings. The message can be adapted quickly to facilitate customers’ needs in savings. Direct Mail We will target customers from the database for direct mailing. We will be sending out brochures to selected property and in different areas of Singapore with our unique feature. This will help to build customer loyalty and Direct mail enables Apple to target its mailing more effectively, reaching its market segment and buyer profile appropriately for our business. We will distribute 200,000pcs of brochures to our potential buyers. Implementation
Please see Appendix 1 on our Detailed Implementation Plan. Budget Expenditure Our planned budget expenditure is as indicated below. Marketing Budget for the Launch of iDealTab| No. | Channels | Cost ($) | 1| Newspapers: Strait Times & Today| $50,000| 2| Magazine 8 Days | $30,000| 3| SMRT Ad Station Pillar | $280,000| 4| Brochures and Flyers| $20,000| 5| TVC Ads | $350,000| 6| Advertising Agency Fees | $4,000| 7| Professional consultation | $6,000| 8| Events Expenses | $70,000| 9| Groupon Tie-up with Citibank| $20,000| 10| Shooting TV Ad | $20,000| | Sub Total | $850,000| | Contingency (15%) | $139,500| | Total Estimated | $710,500|
Table 1. 2 Budget Expenditure Conclusion The PC Tablet industry in Singapore is highly competitive, especially now in the present as technology for portable devices is at an all time high. In order to target the current generation of Singaporeans as well as to retain our reputation as the most innovative and reliable IT companies, Apple will need to put more emphasis on developing an aggressive and innovative marketing plan that tackles issues like: the level of competition, the costs of manufacturing technologically advanced products, size of the current market and also putting other issues into consideration.
Humans are always pursuing to achieve technology that is advanced to satisfy their insatiable hunger for futuristic products. That’s why Apple will always strive to be the one company that LEADS innovation, which is why the iDEAL Tab was manufactured. We are confident the iDEAL Tab will definitely position itself to be at the top of the PC Tablet industry. We conclude that with our extensive marketing plan, strong emphasis on promotion as well as our unique Holographic Projection feature, we are extremely confident that our targeted consumers will be fascinated to our revolutionary iDEAL Tab.
The strategies we adopt will definitely allow Apple to be at the top when competing against various rival establishments, and achieving our marketing objective. Appendix 3 Detailed Implementation Plan (From April 2011 to April 2013 Appendices, Tables and Figures Appendices 1Technical Specifications (iDealTAB) Appendices 2 Apple’s Full Specification Comparisons of Tablet PCS Appendices 3Implementation Figure Figure 1. 1 Image of the iDealTAB Figure 1. 2 Marketing Objectives Figure 1. 3 Seven Stages of the New Product process Figure 1. 4 Product Life Cycle Curve Figure: 1. 5 One Tier Indirect Channels
Figure 1. 6 Pull Strategies Table Table 1. 1 Direct Competitors Based on Tablet PCs only Table 1. 2 Budget Expenditure References Websites http://apnick330. wikipot. com/background http://macamour. com/blog/2007/04/09/apples-logo-meaning/ http://www. sedb. com/content/edb/sg/en_uk/index/about_edb/our_history/the_1980s http://money. cnn. com/magazines/fortune/mostadmired/2011/index. html http://www. frost. com/prod/servlet/market-insight-top. pag? Src=RSS&docid=225907684 http://www. ipos. gov. sg/leftNav/pat/Introduction+And+Fundamentals. htm http://www. soopertutorials. om/business/strategic-management/1952-apple-mission-statement. html ) http://www. case. org. sg http://www. contactsingapore. org. sg/why_singapore/rankings/living_conditions/#006) http://www. sgs. gov. sg/macro_overview/macrooverview_fiscal. html) http://app. mti. gov. sg/default. asp? id=1 http://www. singstat. gov. sg/news/news/cpimar2011. pdf ) http://www. mom. gov. sg/Publications/mrsd_Q12011empsit. pdf ) http://www. tradingeconomics. com/singapore/inflation-cpi ) http://www. udel. edu/alex/chapt6. html) http://www. tabletpcreview. com) http://www. soopertutorials. com/business/marketing/2431-product-life-cycle. html )