MBA Presentation

1. Ibangle (A apple product) - Presentation Transcript Situation Analysis Report

2. Executive Summary The marketing plan includes the fundamental for the introduction of a unique and ingenious product known as iBangle by Apple Inc. The analysis of internal and external of the organisation, competitive environment enables the team to propose dynamic and constructive strategies for iBangle to fulfil the company’s objectives and strategic mission. The iBangle will be introduced as another innovation of Apple and marketed as mp3 player in portal music player (PMP) sector. This also will enable Apple Inc to penetrate and dominate the PMP sector and emerge as leader in innovation of unique products as well as successfully gain market share. The marketing strategies are outlined to gain market segment size of 102,665,043(targeted) male and 103,129,321(targeted) female of 15-64 years with forecasted sales growth average at 4.8% over next 3 years and profit of USD 8,229,000. The accomplishment and success of iBangle will be measured with the capture of market share in PMP sector, as well as penetrating geo-clustering targeted market in across the global.

3. ‘iBangle’ will be future version of iPod product and will be positioned as the bracelet iPod that available in the market.It will be equipped with 2GB capacity and different sizes to accommodate customer’s wrist.TheiBangle features and design as shown below :- The product will be able to provide exceptional music listening experience and have multifunction as mp3 player as well as hand accessory (bangle). The product also marketed as funky and matchless alternative device for portal music device and packaged as unisex outlook that be suitable to be worn by men and women. The product is made of aluminium.

7. Strength Brand Position Apple Inc. is one of the most progressive and established IT brand in the IT industry. The organisation had managed to create strong brand value position among its customers. Apple products often associated with concept of fun, energetic, sophisticated, and quality and it generated loyal and enthusiastic customers that support Apple brands.The supremacy loyalty of customers shows that Apple managed to gain customers as well as sustain them. The sales of 22.1 million iPod show the customers consumption of Apple products. The customers subscribes to services and products that offered by Apple and willing to come back for more Apple products lines. This can create opportunities for Apple to market iBangle more proficiently Financial Strength Apple Inc have stable and strong financial factor in the IT industry. The organisation managed to generate net income of USD 4834.0 million in 2008 and USD 2,523,000 of Cash flow(www.finance.yahoo.com/q/is?s=AAPL&annual). This shows that the organisation have capabilities to invest sufficient amount to design, manufacture, and market iBangle in the targeted market. Innovation and Improvement Opportunity Better quality control implementation The Apple Inc also can increase its quality control sector to be able to provide more enhanced and quality product to its customers. Introduction of new products Apple had been massive designing, and manufacturing new products for its customers compared to the competitors like Sony, Samsung. Therefore, Apple can penetrate PMP field with new products like iBangle efficiently. Brand awareness The Apple has developed strong brand awareness among customers and in the international market. Therefore, Apple Inc can create market opportunity for iBangle more efficiently because the customers are more perceptive and easily accept Apple products compared to other brands due to brand awareness. Moreover, the recognition of Apple brand in the international arena also can generate international market opportunities for iBangle.

8. Threat Strong Competition Apple Inc also faced competition in today’s global oligopoly market since the industry is been influenced by several major competitors such as Sony, Samsung, HP and others. Financial Crisis The inconsistency of global financial stability and world stock market can induce crisis and problems for Apple Inc during introducing new products to the market. The financial crisis can force customers to retreat and not support any new products due to personal financial problems. Political Unstable One of major crisis that the organisation will face during launching iBangle is political instability in some countries in the world. This can cause by few factors such as internal political power struggle, transition of ruling power and others.These dilemmas can affect launching of iBangle in certain countries such as South Africa, Thailand, Philippine, and others even though there is vast market opportunity. COMPETITORS ENVIROMENT Apple Inc.’s main competitors in IT industry are Sony, Samsung, IBM and HP. However, top competitors that have capabilities and financial strength to produce similar products with Apple are Sony and Blackberry especially for products like MP3 and MP4. Sony had been veteran in portal music device circle and later entered by Apple. Apple managed to capture 50% of marketing share since 2005 but Sony also progressively gain market share of 20% in 2006 and 30% in 2007(www.venturacountystart.com/news/2007/nov/26) It shows that Sony has capacity and resources to design, manufacture product that have similarities with iBangle. such as internal political power struggle, transition of ruling power and others.These dilemmas can affect launching of iBangle in certain countries such as South Africa, Thailand, Philippine, and others even though there is vast market opportunity. COMPETITORS ENVIROMENT Apple Inc.’s main competitors in IT industry are Sony, Samsung, IBM and HP. However, top competitors that have capabilities and financial strength to produce similar products with Apple are Sony and Blackberry especially for products like MP3 and MP4. Sony had been veteran in portal music device circle and later entered by Apple. Apple managed to capture 50% of marketing share since 2005 but Sony also progressively gain market share of 20% in 2006 and 30% in 2007(www.venturacountystart.com/news/2007/nov/26) It shows that Sony has capacity and resources to design, manufacture product that have similarities with iBangle.

9. tools of digital lifestyle, fun and cool device and sense of belonging within peer group, brand that need to be owned, cultural lifestyle and others needs. It also cater personal needs such as for customers that want to experience music without tangled with wires when they performing the daily activities, luxurious activities such as exercise, jogging, surfing and others activities. Segment Trends The current trend shows transcend from wired and bulky PMP to light, easy, compact in size, more capacity, less wired or wireless and multifunction players like MP3 players. The trends also change towards wireless player, brand conscious and digital lifestyle. Therefore, market opportunity for iBangle is far vaster due to trend transformations. Segment Growth Potential According to statistic report, the segment growth can be projected increase of 18.3% over next 5 years (2015) for 21 years and above subsets. Meanwhile, the segment for 14-17 years old, anticipated growth is 0.93% and 19-24 years old is about 10.52%. Size of Segment (Population) According to statistics report of CIA, the size of segment 15-64 years old consists of 102,665,043 male and 103,129,321 females. 7.0POSITIONING STRATEGY Apple has been enable to create and revolutionised the portal music player sector by adapting to visceral design, and manufacture creative, innovative, and cool products such as iPods. Moreover, iPod managed to became measurement against any portal music players since its penetration into the market.9 Therefore, iBangle player will be adapting strategy by being the ultimate must have mp3 player in the perception of customers. The organisation will be adapting strategy of product differentiation in marketing iBangle in the market. Moreover, Apple also will be providing quality and excellent customer service for iBangle customers. Apple will be developing unique selling proposition (USP) for iBangle by differencing iBangle from other mp3 player through its designs, features, and benefits that shown below Benefits positioning: listen to music without tangles of wires and wear it as accessory • Features: include multi-track touchpad, wireless ear headphones, customised according to wrist size, better music quality, and download music via Bluetooth • Product Positioning: the shape of bangle enable customer to wear at wrist, portray cool look, personalised mp3 player (other people might not notice the player) and the first mp3 player in the world designed as bangle. • User Positioning: iBangle as the most suitable and coolest trend for digital lifestyle oriented customers Even though iBangle main function is mp3 player, it also will be marketed as hand accessory. Apple has strong brand personality (image differentiation) among its customers and worldwide can enable them to market iBangle to the targeted market more efficiently. The features, benefits, and unique design of iBangle can aid the company to create impression of must have mp3 player in the cognitive mind of customers. The success of iPod in 2000 as shown below is an example of people acceptance of Apple products.

10. MARKETING STRATEGY Product Strategy The core iBangle is mp3 player that worn at wrist equipped with wireless ear headphones to listen to music. The actual product The design of mp3 player is unique and innovative by Apple and be worn wrist. It also can function as hand accessory. As for banding, Apple logo is embedded on the bangle and the colour for iBangle is silver to cater for unisex customer as well as to establish as stylish bangle. The trade name is iBangle™, an Apple product. The brand personality adapted for this product consist ofstylish, cool, trendy, originality and think different. The iBangle also equipped with 1 year warranty and customer service Based on life product life cycle, iBangle is new product to the market and currently no imitation products. Therefore, proactive and comprehensive marketing campaign can enable iBangle to be recognised immediately and sales of the product will be accelerating progressively. The unique design of iBangle will enhance its’ differentiation among existing portal music players and generate advantages to the product. Moreover, Apple is known to produce award winning innovative products as stated below. Apple had worn eight iF (International Forum) Product Design Awards at CeBIT 2008 show in Hanover, Germany for out of nine products that were submitted for consideration. The other factors that create differentiation for iBangle is the Apple managed to create emotional benefits12 for its users. Therefore, iBangle also can provide emotional benefit to customers in form of maintaining simplicity, stylish design, easy to use and constructive customer service The iBangle also considered ‘green’ product since the main component to manufacture iBangle is aluminium. Aluminium is one of the most recyclable materials. This enable iBangle to gain status as ‘eco-friendly product’ and infiltrate environmental concern oriented customers.(www.ezinearticles.com)

11. The iBangle product has another distinguish advantage that is the brand name of Apple. Apple had become one of the most powerful icons in the IT industry due to its visceral design, unique products, quality and features. Therefore, branding Apple logo on iBangle will increase its value and perception among the customers. Price Strategy As for pricing strategy for iBangle, there are several factors should be considered as such consumer demand, product lifecycle and potential substitutes. The price of iBangle will be at USD 390.00. This is because at initial introduction, only 10,000 units will be produced and marketed in U.S.A. The profit margin is 30%. Apple Inc should given important aspect toward customer demand. Since Apple had be able to portray themselves as icon of PMP sector through introduction of iPod generation, iBangle is can create massive demand among customers due to its unique design and features. The skimming price strategy will be adapted to market iBangle to the customers. The price will be set at USD 399.00 at introduction stage and price will be reviewed at later stage of product lifecycle. The organisation also has advantages such there is no substitute or imitation product like iBangle that available currently on the market. However, potential substitutes produced by competitors is possible, therefore Apple have to establish as market leader for iBangle. This can create market demand for iBangle since it has unique characteristics. One of the examples of successful pricing strategy can be seen in sales of iPod Promotion Strategy Objectives • To create strong awareness about iBangle throughout the target customers (14 to 29years old) as well as parents • To penetrate and increase market shares in portal music player sector and override competitors One of the promotional important outputs is to portray iBangle as ‘the futuristic mp3 player and the coolest product for everyone’. The media selection for promoting iBangle is varies for the selected customers group. However, one of the most powerful media is Internet media. The internet usage in United States is about 223 million in 2008 www.cia.gov/library/publication . It shows creative advertisements via online can penetrate the target customer faster and more efficient. Moreover, online store also can boost the sales of iBangle. Moreover, Apple also will be using electronic media as advertisement arena to launch iBangle to the world. Apple is knows for creating innovative, and unique advertisements to promote their products such as in using slogan ‘Think Different’, use famous ‘free thinkers’ like Pablo, John Lennon, Mahatma Gandhi17and others to shows that Apple product is unique and different from others. Therefore, unique advertisement such as constant advertisement about iBangle at prime time TV shows, radio shows can create brand awareness among the customers. Other than that, Apple also will be using idols and international stars to promote iBangle. Apple is planning using teen idol Hannah Montana as teen ambassador to promote iBangle to teenagers group. Furthermore, in order to penetrate the current trend and culture, iBangle will be attached to celebrities such as Beyonce, Missy Elliot, and Jason Marz.The product will be worn by these stars in the video clips and photography session for magazines and events. The personalities from sport arena such as CristianoRonaldo, and S. McGee also will be recruited to promote iBangle. The celebrities spotted with iBangle can create brand awareness among customer more massively. Apple will be running advertisement on iBangle during important events like Super bowl games, NBA, and World League. This is to target sport oriented customers. Apple also will sponsor prime time TV shows like ‘Leverage’ and ‘C.S.I’ to promote iBangle for the young adults customers. The advertisement of iBangle will be aired during the Showtime to capture young adults’ attention on iBangle

12. Place Strategy Other than that, the company will be choosing distribution channels such as a. online stores b. retail stores c. direct sales One of the most established distribution channels is Apple retails stores. Therefore, iBangle will be launched and marketed at all Apple retails stores across the country for the success of iBangle. Apple managed to gain USD 1.45 billion from 208 stores in 2008 www.ejshmidt.com/blog ensure that retail store is one of the most successful distribution channels.Moreover, online stores also another important distribution channel that can aid the sales of iBangle and will be able to penetrategeo-clustering segment more proficiently.

13. Thank You.