Marketing Research Final
Presentation
iPhone
Alex Negle
November 31st 2011
Table of Contents
• Overview:
– Executive Summary
– Purpose
– Methods
– Findings
• Secondary Research
• Primary Research
– Qualitative
– Quantitative
– Conclusion
Executive Summary
• The iPhone had 80% unaided awareness in the
online survey and 90% in the paper survey
• Ease of use was the most important factor
when it came to smart phones
• The iPhone’s weakest quality was affordability
Purpose
• Information found while doing this research is
used for Marketing Research (BUS 1535)
• The Information was collected to study
consumers attitudes towards the iPhone
Methodology
Type of Research
• Secondary
• Qualitative
• Quantitative
Method Used
• Online Databases
• Personal Interviews,
(5) Focus Group
• Online and Paper
Surveys (10)
Findings: Secondary Research
• Headquarters
– Cupertino, California
• Top Competitors:
– HTC
– Research in Motion
– Motorola
5 Year Sales Trends
Revenue
2006
2007
2008
2009
2010
Industry
(mm)
$169,082
181,937
189,474
191,501
196,044
Apple (mm)
$19,315
24,578
37,491
42,905
65,225
$6,742
13,033
25,179
152,558
144,880
275,046
iPhone
(mm)
HTC (mm)
$104,816
118,579
Android
(mm)
RIM (mm)
$64,694
$6,009
11,065
14,953
Motorola
$31,810
23,373
17,099
11,050
11,460
(mm)
Sources: investor.apple.com/financials
Ibisworld.com (NAICS Code: 51332 wireless telecommunications carriers in the US
HTC.com
RIM.com
Motorola.com
5 Year Sales Trends
300,000
250,000
Industry
200,000
Apple
150,000
HTC
100,000
Research In Motion
Motorola
50,000
0
2006
2007
2008
2009
2010
Sources: investor.apple.com/financials
Ibisworld.com (NAICS Code: 51332 wireless telecommunications
carriers in the US
HTC.com
RIM.com
Motorola.com
Mean and Median
189,474
200,000
180,000
158,575
152,558
160,000
151,825
140,000
120,000
Median
100,000
Mean
80,000
60,000
40,000
37,902
37,491
18,958
11,065
10,675 17,099
20,000
0
Apple
HTC
RIM
Motorola
Industry
Market Share
Market Share
13%
25%
Apple
29%
HTC
RIM
33%
www.ibisworld .com
Other
Qualitative Data: Personal Interview
(unaided)
• 4 – iPhone
• 1 - Droid
Qualitative Data: Personal Interview
• Summary
– Positives:
• Simplicity
– “…because of its simplicty and how its better than every other smart phone.”
• Ease of Use
– “its got everything I do electronically in one place.”
• Stylish
– “…the difference between the Droid and the iPhone is the quality of the
product.”
– Negatives:
• High Price
– “Its pretty expensive, I just can’t go out and get one right now.”
• High Contract Price
Qualitative Data: Personal Interview
• Reasons to buy the iPhone
– Simplicity
– Quality of Product
– Versatility
• Reasons to not buy the iPhone
– Do not already have a smart phone
– Price
• What can Apple do to better the product?
– Make it more affordable
Qualitative Data: Focus Group
• Summary
– Positives:
•
•
•
•
Easy of use
Celebrity Appeal
Brand Image
Geared for fun
– Negatives:
•
•
•
•
No 3G hotspots
No BBM
Boring shape
Susceptible to breaking
Qualitative Data: Focus Group
• What would you do to change the product?
– Slide out Querty
– Fear of breaking screen
– Differentiate from Ipod Touch and iPad
• “If you have an iPhone why would you buy an iPad, or if
you had an iPad why would you buy an iPhone…”
• “I feel like they keep making the same products.”
Quantitative: Traditional and Online
Surveys
• Sample Size Estimate
– 2010 US population: 220,958,853
• Ages 18 –
• Male and Female
– 95% Confidence Interval
– +/- 5% Error
• Sample Size Needed: 384
www.census.gov
Creative Research Systems
Unaided Awareness
Awareness
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
90%
70%
50%
Awareness
5%
Apple
Droid
Blackberry
Samsung
Aided Awareness
Percentage
100%
100%
100%
99%
98%
97%
96%
95%
95%
94%
93%
92%
iPhone
Droid
Blackberry
Percentage
Have a Smart Phone
Currently Own a Smart Phone
15%
Yes
No
85%
Psychographics
Average
Use Social Media Often
3.7
Use Cell Phones Often
4.1
Average
Conservative
2.9
Artistic
3
0
1
2
3
4
5
Constant Sum (Averages)
100%
90%
80%
11.5
23
70%
60%
Attractive
16.5
50%
Stylish
40%
30%
32.5
20%
10%
Affordable
15.5
0%
Constant Sum
Ease of Use
Image
iPhone Perceptions
(1 being the highest, 5 being the
lowest)
Average
Easier
2.49
Reasonably Priced
2.7
Average
Superior
3.19
Prefered
2.3
0
0.5
1
1.5
2
2.5
3
3.5
Rank Order (1 being the highest, 5
being the lowest)
Average
6
4
3
2
1
0
The iPhone was the
most preferred on
paper with mean
being 2.3
4.82
5
3.55
3
2.36
1.27
Average
Average Expected Prices
• iPhone 4
– $293.3
• iPhone 3G
– $135.1
Brand Differentiator
3
Fun
4.2
3.25
Stylish
3.1
Ease of Use
Price
2.74
0
1
2
3
3.69
4.5
4.18
Blackberry
Droid
3.53
3.89
iPhone
3.5
3.14
4
5
Demographics: Gender & Age
Age
Responses
8
18
7
7
16
6
14
5
12
10
4
Age
3
Responses
8
6
2
2
1
16
4
1
3
2
0
0
19
20
21
Male
Female
Majors Surveyed
•
•
•
•
•
2 Education Majors
4 Business Majors
1 Geology Major
2 Engineering Majors
1 Communications Major
Demographics: Income
Income
0 0
21%
41%
Under $15,000
$15,000 - $24,999
$25,000 - $34,999
31%
$50,000 - $74,999
$75,000 - $99,999
Product Positioning Map
Conclusions and Implications
• The iPhone has outstanding brand awareness
• General attitude is that its too expensive
• Believed price - $293
• Actual price - $200
• Ranked significantly Higher in all other
category motivators
Appendix
Interview 1
Interview 4
Interview 2
Interview 3
Interview 5
Focus Group
Appendix
• Online Survey
– https://new.qualtrics.com/ControlPanel/?ClientAc
tion=ChangePage&s=UserSurveysSection&ss=&sss
• Smart Phone Survey Results
• IRB Consent Form
• Online Survey Report
Questions?