1. Apple iWatch
Syndicate 5
Marc Grigoruk Mubin Rahimi Jack Wan Justin Rebbeck
Damien Saulep-Easton Kashif Hayat Vladimir Tikhomandritskiy
2. Agenda
• Introduction
– Apple brand promise
– Smartwatch market
• Data Collection
– Survey, Conjoint, Scree Plot
• Marketing Strategy
– Segmentation, Targeting and Positioning
– Marketing Mix (4 Ps)
– Implementation & Control
• Conclusion
3. Brand Promise
We make it easier to love technology,
so that you can experience the future.
4. Smartwatch Market
2nd ranked smartphone
manufacturer world-wide
Growth rate of 30%
between 2013 and 2018
134 million units by 2018
$14 billion revenue by 2018
5. Age
Survey
On Qualtrics
Education
Income
Profession
Brand
Sensitivity
Preference
Smartphone
Familiarity
Health &
Fitness
Watch
Media Tech
Consumption
The Survey
6. Conjoint Design
•1.8 inch
•2.5 inch
•None
• Standard
•$199
•$299
•$399
•1 Day
•2 Days
•3 Days
Battery
Life
Price
Screen
Size
Biometrics
7. Dendrogram
35,000.00
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
Loss of information - Apple
iWatch
0 2 4 6 8 10
Distance
1 5 3 8 2 6 4 7 9
Cluster ID
29,452.2
15,331.2
11,637.9
6,678.70
6,286.39
3,804.71
3,570.49
3,523.00
9. Segment Targeting
32%
Price
Sensitive
want the
latest
technology
lower
price
37.95
utilities
66% own
iPhones
majority
do not
use
watches
74.52
utilities
42%
Health
Conscious
2nd
ranking
battery
60% own
iPhones
82% brand
loyal
physical
exercise 4+
times per
week
78.49
utilities
26%
Battery
Sensitive
Already
own
iPhones
Brand
loyalty is
important
2nd
ranking
biometrics
23% likely
to buy
iWatch
10. Product Positioning
• A premium iWatch bundle
• 3 day battery, $399, 2.5 inch screen and
biometrics
– Functional Benefits
– Intangible Benefits
– Social Benefits
11. Product Price Place Promotion
Premium pricing Strong integration with lifestyle
Ease of use Familiarity and simplicity of design
15. Implementation & Control
Sales Targets
• Co-purchases: 60% of iWatches purchased with iPhone 6
• Profit in Year 1: $80 million
• Sales volume in year 1: 800,000 units
Product Review
• Apps: more than 10 health apps purchased
• Satisfaction: 95% satisfaction rating
• Uptake by health industry (within 2 years)
Defect Frequency
• Rate: less than 1% defect
• Complaints: complaint reports for less than 5% of sold units
Hinweis der Redaktion
We Estimate that 60% of Iphone users will use the iWatch.
For first year our forecast for profit is $80 mill which is based on 800,000 units sold.
Based on 399 per unit price each $100 is spent on Research, Development , Advertising and Selling leaving 25% as profit.
Product Review:
Active App users – In terms of Activity
Uptake by health industry is of strategic importance and goes hand in hand with the Core strategy of Apple. We want Apple HealthKit and iWatch to be the central hub for health eco system just like we did in music and photos in the shape of iTunes with Ipod, Iphone and Ipad.
Defect Frequency
Conclusions
Imagine a world where I am not a passionate gym guy but extremely health conscious and with iWatch I am able to integrate my physical activity, heart rate monitoring with BMI. Then communicate it with my GP without visiting GP. How Great is that.
We live in an information age and Future demands to be smart, efficient and knowledgable about us particularly health. iWatch just do that for you.