MARKETING PLAN
Short Description
sample of marketing plan for a new product to be launched in the market. Benefits for marketing course....
Description
Marketing In Practice
Marketing Plan iBangle
TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY 2.0 COMPANY DESCRIPTION
2 3
2.1 Vision Statement
4
2.2 Mission Statement 3.0 PRODUCT DESCRIPTION 4.0 SITUATION ANALYSIS
4 5 9
4.1 Industry Analysis
9
4.2 SWOT Analysis
12
4.2.1
Strength
12
4.2.2
Weakness
14
4.2.3
Opportunity
14
4.2.4
Threat
15
4.3 Competitors Environment 5.0 MARKETING OBJECTIVE 6.0 TARGET MARKET
16 17 18
6.1 Segment Identification
18
6.2 Segment Needs
18
6.3 Segment Trends
18
6.4 Segment Growth Potential
18
6.5 Size of Segment (Population) 7.0 POSITIONING STRATEGY 8.0 MARKETING STRATEGY
18 19 21
8.1 Product Strategy
21
8.2 Price Strategy
22
8.3 Promotion Strategy
24
8.4 Place Strategy 9.0 FINANCIAL PROJECTION & EVALUATION 10.0IMPLEMENTATION PLAN
26 27 33
1.0EXECUTIVE 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
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Marketing In Practice
Marketing Plan iBangle
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.
2.0COMPANY DESCRIPTION Apple Inc. was formed by Steve Jobs and Steve Wojniak in April 1976 and incorporated on 3rd January 1977. The organisation’s headquarter is situated at Cupertino,
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Marketing In Practice
Marketing Plan iBangle
California. The current CEO is Steve Jobs. Apple Inc. mainly involved in industry related to computer software, hardware, and consumer electronics. The organisation mainly design, manufacture and market product that varies from personal computer, portable digital music players, mobile communication devices and various related software, services, peripherals, and networking solutions. The main distribution channels are its online stores, retails stores, direct sales, and others. Moreover, the customers range from consumers, corporations, small and medium business, education, enterprise, governments and creative customers. The organisation currently has 35,100 employees and growth of 62.5%. According to fiscal year ending report of September 2008, Apple Inc. had generated the following revenue and shows growth of 35.5% for one year growth and about 38.3% of income growth:TABLE 1: Financial Data of Apple Inc. for 20081
2.1Vision Statement •
iBangle product will enable Apple Inc to establish as market leader in portal music sector
•
Apple Inc can be a revolutionary organisation in providing digital lifestyle for customers
1
Abstracted from http://finance.yahoo.com/q/is?s=AAPL&annual
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Marketing In Practice
Marketing Plan iBangle
2.2Mission Statement •
Apple Inc is committed to provide a futuristic and empowered music listening experience to the customer through iBangle.
•
To capture share market of portal music player more than 55% and dominate the market.
3.0 PRODUCT
DESCRIPTION
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Marketing In Practice
Marketing Plan iBangle
‘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. The iBangle features and design as shown below2:-
2
Extracted from http://www.yankodesign.com/2008/10/21/this-ipod-is-full-of-air/
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Marketing Plan iBangle
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Marketing Plan iBangle
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Marketing In Practice
Marketing Plan iBangle
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.
4.0SITUATION ANALYSIS 4.1INDUSTRY ANALYSIS
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Marketing In Practice 4.1.1
Marketing Plan iBangle Usage Apple Inc. has sold 22.1 million iPods during 2008 holiday season
compared to 4580 unit in 2005. The sale of 21.0 million units in Q1 of 2007 also shows 50% higher than Q1 of 2006. This shows steady growth of iPod since 2005. Moreover, it increased about 383% from 2005. This projects strong value of brand position in the customers. Therefore, we strongly believe that iBangle can penetrate the usage trend since this is a variant of iPod. Chart 1: iPod Unit Sales3
4.1.2
Trends In 1960, 8-track player was introduced and followed by personal
cassette player in 1979 and later with walkman, walk disc player, until MP3 player and MP4 player. The taste and trend of portable music players
3
Extracted from http://www.macworld.com/article/131874/2008/01/ipodsales.html
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Marketing Plan iBangle
change tremendously among customers. The factors that influence the evolution in the trends are:a. Customer preference to better sound quality b. The sizes of iPod and mp3 players are more compact and easy to carry. c. The storage capacity is bigger and customers can opt for different sizes compared to other devices. d. The introduction of storage format like mp3, acc, and wma enable to customer to store more music compared to earlier version. The market trend is expected to show prolonged growth and future products of portable players that have sophisticated design, features and benefits like iBangle can gain customer interest as well as market demand
4.1.3
Profitability & Future Growth Potential Apple had gain revenue of 48% from iPod Business Division in
first fiscal of 20074, meanwhile other music related products contributed 4
Extracted from http://www.scribd.com/doc/26711/Apple-sold-100-million-Ipods-How-much-did-theymake
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Marketing Plan iBangle
9% of total profit. We estimated that growth of average of 4% in sales based on forecasting projection by year 2012 and expansion of 18.3% in population by 2015. 5
4.2 SWOT ANALYSIS
5
Extracted from http://blogs.eweek.com/applewatch/content/corporate/apple_q2_2008_by_the_numbers.html
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Marketing In Practice
4.2.1
Marketing Plan iBangle
Strength 4.2.1.1 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. 4.2.1.2 Financial Strength
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Marketing In Practice
Marketing Plan iBangle 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 flow6. This shows that the organisation have capabilities to invest sufficient amount to design, manufacture, and market iBangle in the targeted market. 4.2.1.3 Innovation and Improvement Strengths of Apple are innovation and the capability of improving its product in diminutive period. This can be seen in the 6 times upgrading of classic iPod models since been introduced. There are 6 generation of ‘Mini/Nano’ model since 2004. This will enable the organisation to develop iBangle and improvised in short time and capture market demand whenever the opportunities rise. 4.2.1.4 Product diversification Apple Inc also managed to manufacture and market products that varies from PCs, personal notebook, mobile communication, hardware, software, portable music players to peripheral devices. This has enabled them to penetrate wider market. Therefore, it also contributed to revenue of Apple. This can help Apple to launch and market iBangle in all level of market without compromising the revenue much.
4.2.2
Weakness 4.2.2.1 Price The prices of apple products are often expensive and only can be afforded by certain group. Most of its products are ranges from USD 200 onwards for its Mp3 and Mp4 compared to other
6
Source: http://finance.yahoo.com/q/is?s=AAPL&annual
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Marketing In Practice
Marketing Plan iBangle brands like Samsung, Creative. Therefore, many customers from lower income group could not afford Apple products and opt for other brands. 4.2.2.2 Faulty products Some of Apple products also face problems such as iPod Nano faces faulty screen whereby the screen can easily break under impact, and early iPods faced problem with faulty batteries. This had force the company to replace all the faulty items and had incurred more cost. 4.2.2.3 Lack of quality Control The products like iPod Nano faced problems and shows that Apple Inc had faced lack of quality control.
4.2.3
Opportunity 4.2.3.1 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. 4.2.3.2 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. 4.2.3.3 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
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Marketing In Practice
Marketing Plan iBangle 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.
4.2.4
Threat 4.2.4.1 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. 4.2.4.2 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. 4.2.4.3 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.
4.3 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
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Marketing In Practice
Marketing Plan iBangle
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 20077. It shows that Sony has capacity and resources to design, manufacture product that have similarities with iBangle.
5.0 MARKETING OBJECTIVE The marketing objectives of iBangle for Apple Inc as follows:-
7
Source from http://www.venturacountystar.com/news/2007/nov/26/sony-is-trying-to-bite-into-applesipod-market/
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Marketing In Practice •
Marketing Plan iBangle
To establish as market leader in creating and manufacturing innovative products in IT industry
•
To enable Apple Inc to satisfy, fulfil and equipped the consumer’s personality and lifestyle needs as well to increase Apple popularity as an icon in digital lifestyle product
•
To establish as market leader in portal music player sector by increasing market share
•
To enable Apple Inc to monopoly the portal music device sector share by 75% by year 2012
•
To enable the Apple Inc revenue from iPod Business Division to increase to 63% by year 2015
6.0TARGET MARKET 6.1 Segment Identification iBangle is a version of MP3 player that can be worn on wrist to be launched within the portable music player (PMP) sector in U.S.
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Marketing In Practice
Marketing Plan iBangle
6.2 Segment Needs iBangle will be a device that accommodate social needs of customer such as it will be perceived as one of 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. 6.3 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. 6.4 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%.8 6.5 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 femalei.
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 8
Refer to Appendix 2,
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Marketing In Practice
Marketing Plan iBangle
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 products10.
9
Source : http://www.scribd.com/doc/8688101/Cultural-Marketing-Analysis-Why-iPod-A-Case-Study Source: http://www.tuftsdaily.com/2.5512/ipod-nation-1.599109
10
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Marketing In Practice
Marketing Plan iBangle
8.0MARKETING STRATEGY 8.1 Product Strategy 8.1.1
The core iBangle is mp3 player that worn at wrist equipped with wireless ear headphones to listen to music.
8.1.2
The actual product - 20 -
Marketing In Practice
Marketing Plan iBangle 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 of stylish, cool, trendy, originality and think different. The iBangle also equipped with 1 year warranty and customer service.
8.1.3
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.
8.1.4
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 below11. Apple had worn eight iF (International Forum) Product Design Awards at CeBIT
13
2008 show in Hanover, Germany for out of nine products
that were submitted for consideration. 8.1.5
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.
11 12
Source : http://www.scribd.com/doc/3936101/A-study-of-ipods-product-design Source: : http://www.scribd.com/doc/8688101/Cultural-Marketing-Analysis-Why-iPod-A-Case-Study
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Marketing In Practice 8.1.6
Marketing Plan iBangle The iBangle also considered ‘green’ product since the main component to manufacture iBangle is aluminium. Aluminium is one of the most recyclable materials.13 This enable iBangle to gain status as ‘eco-friendly product’ and infiltrate environmental concern oriented customers.
8.1.7
The iBangle product has another distinguish advantage that is the brand name of Apple. Apple had become one of the most powerful icons14 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.
8.2 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 13 14
Source: http://ezinearticles.com/?Why-is-Aluminum-So-Recyclable?&id=2277133 Source: http://www.scribd.com/doc/8688101/Cultural-Marketing-Analysis-Why-iPod-A-Case-Study
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Marketing In Practice
Marketing Plan iBangle
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 in the market and it shown in Chart 215.
8.3 Promotion Strategy 8.3.1
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
15
Extracted from http://www.scribd.com/doc/26711/Apple-sold-100-million-Ipods-How-much-did-theymake
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Marketing In Practice
Marketing Plan iBangle
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 200816. 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 Gandhi
17
and 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 Cristiano Ronaldo, 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. 16 17
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/us.html#Econ Source: http://www.scribd.com/doc/2648710/iPod-The-Marketing-of-an-Idea
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Marketing In Practice
Marketing Plan iBangle
Table 2 shows the selection of media that used for iBangle promotion
8.4 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
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Marketing In Practice
Marketing Plan iBangle
across the country for the success of iBangle. Apple managed to gain USD 1.45 billion from 208 stores in 200818 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 penetrate geo-clustering segment more proficiently.
18
Source : http://ejschmidt.com/blog/apple-success-design-distribution/
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Marketing In Practice
9.0 FINANCIAL
Marketing Plan iBangle
PROJECTION & EVALUATION
Average-Cost Pricing A. Calculation of Planned Profit if items Are Sold Calculation of Costs: Fixed overhead expenses Labor and materials Total costs "Planned" profit Total costs and planned profit Calculation of profit (or loss): Actual unit sales x price (below) Minus: total costs Profit (loss) Calculation of "reasonable" price: Expected total costs and planned profit Planned number of items to be sold "Reasonable" price
B. Calculation of Actual Profit if Only items Are Sold
10,000
$200,000 700,000 $900,000 3,000,000 $3,900,000 $3,990,000 900,000 $3,090,000
Calculation of Costs: Fixed overhead expenses Labor and materials Total costs
Calculation of profit (or loss): Actual unit sales x price (below) Minus: total costs Profit (loss)
10,000
$200,000 700,000 $900,000
$3,900,000 900,000 $3,000,000
$3,900,000 10,000 $390.00
.
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Marketing In Practice
Marketing Plan iBangle
TABLE 4: Cost for iBangle Production Cost Classifications for an iBangle Components Total cost
Variable
Fixed
$180,000 50,000 150,000 110,000 0
$0 0 0 0 85,000
$490,000
$85,000
$0 0 0 0 0 0 0 50,000 0
$35,000 20,000 15,000 15,000 20,000 50,000 20,000 20,000 50,000
Operating expenses Direct labor Direct supervision Social Security Materials Operations overhead Subtotal Non operating expenses Advertising Promotion Field sales Product management Marketing management Product development Marketing research Customer service Testing General & administrative
$180,00 0 50,000 20,000 110,000 0 $360,00 0 $35,000 20,000 15,000 15,000 20,000 50,000 20,000 70,000 50,000
0
30,000
Subtotal
$295,00 0
$50,000
$275,000
Total
$655,00 0
$540,000
$360,000
Based on Table 3 and Table 4, the price of iBangle for introduction stage will be USD 390.00 will margin profit of 35%.
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Marketing In Practice
Marketing Plan iBangle
TABLE 5: Contribution Margin Statement for iBangle Product: iBangle Income Statement 31-Dec-10 Revenues (no. of units x price)
$3,900,000
Variable costs Direct labor Direct supervision/clerical
$180,000 50,000
Social Security
150,000
Sales force commissions
100,000
Customer service Materials Operations overhead (plant, etc.)
70,000 110,000 75,000
Total variable costs Contribution margin rate (percent)
$735,000 30%
Contribution margin amount
$1,170,000
Fixed costs Operations overhead
$10,000
Advertising
35,000
Promotion
20,000
Field sales
15,000
Product management
50,000
Marketing management
20,000
Product development
15,000
Marketing research
20,000
Customer service
50,000
Testing
50,000
General & administrative
30,000
Total fixed costs
$315,000
Operating profit (loss)
$855,000
Based on Table 5, projection profit contribution of Ibangle Based on Table 5, projection of profit margin is 30% and iBangle profit contribution to Apple revenue by 2010 is USD855, 000.
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Marketing In Practice
Marketing Plan iBangle
Break-Even Analysis $2,000,000
$1,500,000
TFC TVC TC Sales Profit
$1,000,000
$500,000
$0 0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
3,600
4,000
($500,000) Break-Even Point (units) = 1,071 Total Fixed Costs Variable Cost per Unit Sales Price per Unit
TFC = VCU = SPU =
Break-Even Point ($'s) = $417,857
$360,000 $54.00 $390.00
Formulas: BEP (units) = TFC/(SPU-VCU) BEP ($'s) = BEP (units) * SPU
© Copyright, 2009, Jaxworks, All Rights Reserved. Unit Increment x-axis
400
Graph Data: Total Units 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000
TFC 360000 360000 360000 360000 360000 360000 360000 360000 360000 360000 360000
TVC 0 21600 43200 64800 86400 108000 129600 151200 172800 194400 216000
TC 360000 381600 403200 424800 446400 468000 489600 511200 532800 554400 576000
Sales 0 156000 312000 468000 624000 780000 936000 1092000 1248000 1404000 1560000
Profit -360000 -225600 -91200 43200 177600 312000 446400 580800 715200 849600 984000
Based on break even analysis projection, the sales force need to sale minimum 1071 units of iBangle and gain break even at USD 417,857.
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Marketing In Practice
Marketing Plan iBangle
INCOME STATEMENT
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Marketing Plan iBangle
10.0IMPLEMENTATION PLAN
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Marketing In Practice
Marketing Plan iBangle
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Marketing Plan iBangle
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Marketing Plan iBangle
11.0CONTROL MECHANISM AND EVALUTION OF EFFECTIVENESS Moreover, the marketing team also have to implement effective control mechanism and evolution of effectiveness method in order to ascertain the launch of iBangle is successful; the marketing strategies are efficient and progress constructively according to projection especially in sales and penetrating targeted market. The suggested apparatus had been designed to aid the department to evaluate the effectiveness of iBangle marketing plan and objectives are shown below:a. Constant market survey and research such as questionnaire method, observation on consumer behaviourism will be implemented in order to evaluate the acceptance of iBangle among its customers. b. Quality Control mechanism also will be introduced in order to monitor the quality of iBangle since this is the debut to the market. This will enable the team to capture any defects, faulty parts that can occur after the customer purchase and use the product. c. Customer Service and technical support team will be established to aid the customers regarding any problems, defects, technical problems and others. This can ensure the quality of iBangle will not be compromised. d. The department also will generate and implement comprehensive plan to monitor the sales of iBangle, the re-evaluate the market needs, and prepare marketing strategies to gain more customers in the future. e. The department will conduct customer survey to obtain report on the customer’s satisfaction toward iBangle to gather suggestion improvements that might be needed to enhance the second generation of iBangle in the future.
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Marketing In Practice
Marketing Plan iBangle
12.0REFERENCE KOTLER,
P.,
1997,
Marketing
Management,9th
Edition,
New
Jersey,
Simon&Schuster Co., HEYMAN, J., H.,2008, All You Need is A Good Idea, New Jersey, John Wiley & Sons, Inc. J. PAUL PETER, ,JAMES H. DONNELLY, JR , A Preface to Marketing Management, MA, Irwin, NICKELS, W., MCHUGH,J., & MCHUGH,S., 1999, Understanding Business,5th Edition, MA, The McGrw-Hill Companies,Inc., RIES, AL., TROUT, J.,2001, Positioning: The Battle for your Mind, MA, The McGrw-Hill Companies ,Inc MARKETING MINDS, 2008, Apple Branding Strategy[online], Sydney, Marketing
Minds,
Available
from
http://www.marketingminds.com.au/branding/apple_branding_strategy.html
[Accessed
20th May 2009] YAMADA, T.,2008, This ipod is full of Air[online], Yanko Design, Available from http://www.yankodesign.com/2008/10/21/this-ipod-is-full-of-air/ [Accessed 20th May 2009] JAIN,M.,2008,A study of i-pods products design[online], Scribd, Available from http://www.scribd.com/doc/3936101/A-study-of-ipods-product-design
[Accessed
23rd
May 2009] MOREN,D.,2008, Analysis: Inside Apple’s iPod Sales Figure[online], San Francisco,
Mac
Publishing
LLC,
Available
from
http://www.macworld.com/article/131874/2008/01/ipodsales.html [Accessed 25th May 2009] ELMER-DEWITT, P.,2008, Analyst: Apple’s U.S. consumer market share now 21 percent[online],
Cable
News
Network.
Available
from
http://apple20.blogs.fortune.cnn.com/2008/04/01/analyst-apples-us-consumer-marketshare-now-21-percent/ [Accessed 25th May 2009]
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MULLER, T.,2008, Analyzing Apple's iPod Business[online], California, MrSwing.com,
Available
from
http://www.mrswing.com/articles/Analyzing_Apple_s_iPod_Business.html [Accessed 8th May 2009] DALRYMPLE,MICHAELS, COHEN, J.,P.,P.,2008, Apple reports $1.58 billion profit[online],San
Francisco,
Mac
Publishing
LLC,
Available
from
http://www.macworld.com/article/131754/appleearnings.html?loomia_ow=t0:s0:a38:g2 6:r3:c0.001788:b21014037 [Accessed on 8th May 2009] DALRYMPLE,J.,2006, Apple scores high marks in customer satisfaction[online], San
Francisco,
Mac
Publishing
LLC,
Available
from
http://www.macworld.com/article/51765/satisfaction.html?loomia_ow=t0:s0:a38:g26:r9 :c0.000319:b21014037 [Accessed 8th May 2009] LARSSON, NORSTROM, 2004,Cultural Marketing Analysis: Why iPod? - A Case Study [online], Scribd, Available from http://www.scribd.com/doc/8688101/CulturalMarketing-Analysis-Why-iPod-A-Case-Study [Accessed 10th May 2009] GRUBER,J.,2008, Apple First Quarter 20008 Results[online], Daring Fireball, Available from http://daringfireball.net/2008/01/aapl_q1_2008 [Accessed 10th May 2009] NetMBA, 2007, Market Segmentation[online], NetMBA, Available from http://www.netmba.com/marketing/market/segmentation/ [Accessed 10th May 2009] NetMBA,
2007,
Pricing
Strategy[online],
NetMBA,
Available
from
http://www.netmba.com/marketing/pricing/ [Accessed 10th May 2009] NetMBA, 2007, Product Life Cycle [online], NetMBA, Available from http://www.netmba.com/marketing/product/lifecycle/ [Accessed 10th May 2009] KUROKAWA,S.,2007, Sony is trying to bite into Apple's iPod market share[online],Camarillo,
The
E.W.
Scripps
Co.,
Available
from
http://www.venturacountystar.com/news/2007/nov/26/sony-is-trying-to-bite-into-applesipod-market/ [Accessed 15th May 2009] WILCOX,J.,2008, Apple Q2 2008 by the Numbers[online], Ziff Davis Enterprise Holdings
Inc.,
Available
from
- 37 -
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http://blogs.eweek.com/applewatch/content/corporate/apple_q2_2008_by_the_numbers. html [Accessed 15th May 2009] BAKER.A.,2004, iPod nation?[online],Boston, The Tuffs Daily, Available from http://www.tuftsdaily.com/2.5512/ipod-nation-1.599109 [Accessed 20th May 2009] CIA THE WORLD FACT BOOK, 2009, United States[online],Washington, Central Intelligence Agency, Available from https://www.cia.gov/library/publications/theworld-factbook/geos/us.html#Econ [Accessed on 25th May 2009] US CENSUS Bureau,2007, 2005-2007 American Community Survey 3-Year Estimates[online]
,
Washington,
Available
from
http://factfinder.census.gov/servlet/ACSSAFFFacts?_submenuId=factsheet_1&_sse=on [Accessed 25th May 2009]
13.0APPENDIX - 38 -
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APPENDIX 1
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APPENDIX 219
19
Extracted from http://www.census.gov/population/projections/SummaryTabB1.pdf
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APPENDIX 3 Median income levels
Households
All households
$46,326
Persons, age 25 or older with earnings
Dual Per earner household Males households member $67,348
$23,535 $39,403
Females
$26,507
Both sexes
$32,140
Household income by race
Asian
White, nonHispanic
$57,518 $48,977
Hispanic
$34,241
Black
$30,134
Median personal income by educational attainment
Some High Measure School
High Bachelor's Some Associate's Bachelor's Master's Professional Doctorate school degree or college degree degree degree degree degree graduate higher
Persons, age 25+ w/ earnings
$20,321
$26,505 $31,054
$35,009
$49,303
$43,143 $52,390
$82,473
$70,853
Male, age 25+ w/ earnings
$24,192
$32,085 $39,150
$42,382
$60,493
$52,265 $67,123
$100,000
$78,324
Female, age 25+ w/ earnings
$15,073
$21,117 $25,185
$29,510
$40,483
$36,532 $45,730
$66,055
$54,666
Persons, age 25+, employed full-time
$25,039
$31,539 $37,135
$40,588
$56,078
$50,944 $61,273
$100,000
$79,401
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Household
$22,718
Marketing Plan iBangle
$36,835 $45,854
$51,970
$73,446
$68,728 $78,541
$100,000
$96,830
Household income distribution Bottom 10%
$0 to $10,500
Bottom 20%
Bottom 25%
$0 to $18,500
$0 to $22,500
Middle 33%
Middle 20%
$30,000 $35,000 to to $55,000 $62,500
Top 25%
$77,500 and up
Top 20% Top 5%
Top 1.5%
Top 1%
$92,000 $167,000 $250,000 and $350,000 and up and up up and up
Source: US Census Bureau, 2006; income statistics for the year 2005
Appendix 4
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Academic Class Models
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Dennis Gilbert, 2002
Class
Typical characteristics
Marketing Plan iBangle
William Thompson & Joseph Hickey, 2005
Class
Typical characteristics
Leonard Beeghley, 2004
Class
Typical characteristics
Multi-millionaires whose incomes commonly exceed The super$350,000; includes celebrities rich Top-level and powerful (0.9%) Top-level executives, executives/politicians. Ivy executives, highcelebrities, heirs; League education common. Capitalist rung politicians, Upper income of class (1%) heirs. Ivy League class 1% $500,000+ education common. Ivy Households with net worth of common. league education $1 million or more; largely in common. The Rich the form of home equity. (5%) Generally have college degrees.
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Highly educated Highly educated (often with (often with graduate degrees) graduate degrees), professionals & Upper most commonly Upper managers with middle salaried, middle household class [1] professionals and class [1] incomes varying (15%) middle (15%) from the high 5management with figure range to large work commonly above autonomy $100,000
Lower middle class (30%)
Semiprofessionals and craftsmen with a roughly average standard of living. Most have some college education and are white collar.
College educated workers with Middle incomes considerably aboveclass average incomes and (plurality/ compensation; a man making Semi- majority?; $57,000 and a woman making professionals and ca. 46%) $40,000 may be typical. craftsman with some work Lower autonomy; middle household class incomes (32%) commonly range from $35,000 to $75,000. Typically, some college education.
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Marketing In Practice
Working class (30%)
Working poor (13%)
Marketing Plan iBangle
Clerical and most blue collar workers whose work is highly routinized. Standard of living varies depending on number of Clerical, pink and income earners, blue collar but is commonly workers with just adequate. often low job High school Working security; common class education. household (32%) incomes range Blue collar workers and those from $16,000 to whose jobs are highly $30,000. High Working Service, low-rung routinized with low economic school education. clerical and some class security; a man making blue collar (ca. 40% $40,000 and a woman making workers. High 45%) $26,000 may be typical. High economic school education. insecurity and risk of poverty. Some high school education.
Lower class (ca. 14% 20%)
Those who occupy poorlypaid positions or rely on government transfers. Some high school education.
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Marketing In Practice
Underclass (12%)
Those with limited or no participation in the labor force. Reliant on government transfers. Some high school education.
Marketing Plan iBangle
Those living below the poverty line with limited to no The poor participation in the labor force; (ca. 12%) a household income of $18,000 may be typical. Some high school education.
References: Gilbert, D. (2002) The American Class Structure: In An Age of Growing Inequality. Belmont, CA: Wadsworth; Thompson, W. & Hickey, J. (2005). Society in Focus. Boston, MA: Pearson, Allyn & Bacon; Beeghley, L. (2004). The Structure of Social Stratification in the United States. Boston, MA: Pearson, Allyn & Bacon. 1
The upper middle class may also be referred to as "Professional class" Ehrenreich, B. (1989). The Inner Life of the Middle Class. NY, NY: Harper-Colins
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APPENDIX 5
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Income Statement of APPLE INC
View: Annual Data | Quarterly Data
All numbers in thousands
27-Sep-08
PERIOD ENDING
29-Sep-07
30-Sep-06
Total Revenue
32,479,000
24,006,000
19,315,000
Cost of Revenue
21,334,000
15,852,000
13,717,000
Gross Profit
11,145,000
8,154,000
5,598,000
Research Development
1,109,000
782,000
712,000
Selling General and Administrative
3,761,000
2,963,000
2,433,000
Non Recurring
-
-
-
Others
-
-
-
Total Operating Expenses
-
-
-
6,275,000
4,409,000
2,453,000
620,000
599,000
365,000
6,895,000
5,008,000
2,818,000
-
-
-
Income Before Tax
6,895,000
5,008,000
2,818,000
Income Tax Expense
2,061,000
1,512,000
829,000
-
-
-
4,834,000
3,496,000
1,989,000
Discontinued Operations
-
-
-
Extraordinary Items
-
-
-
Effect Of Accounting Changes
-
-
-
Other Items
-
-
-
4,834,000
3,496,000
1,989,000
-
-
$4,834,000
$3,496,000
Operating Expenses
Operating Income or Loss
Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense
Minority Interest
Net Income From Continuing Ops
Non-recurring Events
Net Income Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares
- - 50
$1,989,000
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APPENDIX 6 Balance Sheet of APPLE INC
View: Annual Data | Quarterly Data
All numbers in thousands
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27-Sep-08
PERIOD ENDING
29-Sep-07
30-Sep-06
Assets Current Assets Cash And Cash Equivalents
11,875,000
9,352,000
6,392,000
Short Term Investments
12,615,000
6,034,000
3,718,000
Net Receivables
6,151,000
4,811,000
3,452,000
509,000
346,000
270,000
3,540,000
1,413,000
677,000
34,690,000
21,956,000
14,509,000
-
-
-
2,455,000
1,832,000
1,281,000
Goodwill
207,000
38,000
38,000
Intangible Assets
352,000
382,000
160,000
-
-
-
641,000
1,051,000
1,217,000
Deferred Long Term Asset Charges
1,227,000
88,000
-
Total Assets
39,572,000
25,347,000
17,205,000
8,558,000
6,230,000
6,471,000
-
-
-
5,534,000
3,069,000
-
14,092,000
9,299,000
6,471,000
Long Term Debt
-
-
-
Other Liabilities
746,000
67,000
14,000
3,704,000
1,449,000
736,000
Minority Interest
-
-
-
Negative Goodwill
-
-
-
18,542,000
10,815,000
7,221,000
Inventory Other Current Assets
Total Current Assets Long Term Investments Property Plant and Equipment
Accumulated Amortization Other Assets
Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities
Total Current Liabilities
Deferred Long Term Liability Charges
Total Liabilities
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APPENDIX 7 Cash Flow APPLE INC
View: Annual Data | Quarterly Data
All numbers in thousands
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PERIOD ENDING
Net Income
27-Sep-08
29-Sep-07
30-Sep-06
4,834,000
3,496,000
1,989,000
Operating Activities, Cash Flows Provided By or Used In Depreciation
473,000
317,000
225,000
Adjustments To Net Income
170,000
332,000
227,000
Changes In Accounts Receivables
(785,000)
(385,000)
(357,000)
Changes In Liabilities Changes In Inventories
7,517,000
3,245,000
2,907,000
(163,000)
(76,000)
(105,000)
Changes In Other Operating Activities
(2,450,000)
(1,459,000)
(2,666,000)
Total Cash Flow From Operating Activities
9,596,000
5,470,000
2,220,000
Investing Activities, Cash Flows Provided By or Used In Capital Expenditures
(1,091,000)
(735,000)
Investments
(6,760,000)
(2,312,000)
(338,000)
(202,000)
(8,189,000)
(3,249,000)
Other Cashflows from Investing Activities
Total Cash Flows From Investing Activities
(657,000) 1,032,000 (18,000)
357,000
Financing Activities, Cash Flows Provided By or Used In Dividends Paid Sale Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities
Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes
Change In Cash and Cash Equivalents
-
-
-
483,000
362,000
-
-
-
633,000
377,000
361,000
1,116,000
739,000
324,000
-
-
-
$2,523,000
$2,960,000
$2,901,000
(37,000)
APPENDIX 8
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APPENDIX 9 APPENDIX 9
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APPENDIX 10 Wednesday, April 23, 2008 6:30 PM/EST
Apple Q2 2008 by the Numbers News Analysis. Apple continued to deliver strong results, posting its strongest fiscal
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second-quarter revenue and earnings ever. How's 43 percent revenue growth? If there is a U.S. economic crisis, Apple isn't yet feeling it. Fiscal second-quarter revenue reached $7.51 billion, up from $5.26 billion a year earlier. Net profit jumped from $770 million a year earlier to $1.05 billion, or 87 cents and $1.16 earnings per share, respectively. Looking ahead, Apple predicted fiscal third-quarter revenue of $7.2 billion, up 33 percent year over year, and $1.00 earnings per share. During the second quarter, Mac sales grew 51 percent year over year, the strongest Apple has seen in two decades. Apple sold 2.289 million Macs, with 1.43 million being portables. Mac revenue grew 54 percent year over year—61 percent for portables. Mac inventory increased about 60,000 units during the quarter, in part because of MacBook Air.
As expected, iPod units marginally gained year over year (1 percent) and declined sequentially (52 percent). Apple shipped 10.64 million iPods during the quarter. Shuffle sales declined, but bumped up following price cuts. Based on analyst numbers, Apple claims 73 percent of the U.S. MP3 market share. The company ended the quarter with four to six weeks of iPod inventory. Related: Apple ended the quarter with about 50 million iTunes customers.
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Apple shipped 1.73 million iPhones during the quarter, but didn't realize all the revenue. Apple won't realize revenue or product cost on iPhones sold after March 6 until the release of iPhone 2.0 software, which is now expected at the end of June. The decision is one of those accounting things, related to Apple offering the software update for free. Apple announced iPhone 2.0 on March 6.
Apple claims that more than 200,000 developers have signed up for the iPhone SDK. One-third of Fortune 500 companies and 400 educational institutions have signed up for the iPhone Enterprise Beta program. Clearly somebody is interested in connecting the iPhone to Microsoft Exchange Server. While iPhone sales declined 26 percent sequentially, Apple couldn't meet demand, particularly among its company stores. "We expected iPhone to decline more sequentially than it did," said Apple Chief Operating Officer Tim Cook on Apple's earnings conference call. He acknowledged inventory as being "low" in Europe and the United States. Despite the shortages, Apple executives expressed confidence that the company would sell 10 million iPhones by the end of the calendar year. People have been buying phones from Apple stores with the intention of activating them later, Cook said. He described the shortages as a "proxy for the worldwide demand of the phone." That could be construed to mean that phones bought in the United States are ending up elsewhere, even unlocked. Cook wouldn't quantify the number of unlocked phones but acknowledged that it is "significant."
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Apple retail stores posted a shockingly strong quarter. Direct sales, whether in-store or online, were 53 percent, up from 49 percent a year earlier. Retail store revenue rose 74 percent. Apple stores sold 458,000 Macs, a 67 percent year-over-year increase. Average in-store sales increased 48 percent. Apple stores had 33.7 million visitors during the quarter, up 57 percent year over year. The company claimed that 50 percent of customers were new to Mac. Be careful: That doesn't mean all those customers bought Macs. Apple ended the quarter with 208 stores, 27 outside the United States. Apple plans to have opened 45 new stores during fiscal 2008. New stores are coming to Australia and China, among other countries. Overseas Apple retail stores appeared to have little impact on broader international sales, which sequentially declined slightly to 44 percent of the quarter's revenue. That said, sales were strong in all Apple's geographies, in unit shipments up 45 percent or more year over year in every region.
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Apple's Best Buy expansion briskly continued to 400 stores at quarter's end. Apple expects to be in 600 of Best Buy's nearly 1,300 stores by summer. Education sales were up by 35 percent year over year in the United States, the strongest growth Apple has seen in eight years. Cook observed that the growth results come well ahead of the traditional educational buying cycle. Apple's gross margins for the quarter were better than expected, 32.9 percent, but still down from 35.1 percent a year earlier. Apple generated $1 billion in cash during its fiscal second quarter, ending the quarter with $19.4 billion. Posted by Joe Wilcox on April 23, 2008 6:30 PM
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i
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/us.html#Econ
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