Marketing plan for Apple Professor :Rabab Awad Prepared By • 1- Christine Youssef • 2- Khaled Zayed • 3- Ahmed Ismail • 4- Mostafa Ahmed Zein • 5- Mohamed Ahmed Zein Content 1. 2. 3. 4. Executive summary Strategic goals Situation analysis Opportunity identification and posting and targeting 5. SWOT analysis 6. PESTEL analysis 7. Market research 8. Setting goals 9. Marketing Mix 10. Implementation and control 11. Survey 12. Reference Executive summary Apple Inc. is an information technology company with a wide range of products which include cellphones, computers, tablets, television products and wearable devices Executive summary Apple Inc. was established in 1976 as a computer software and hardware company, since then Apple has transitioned into the creation of other technological devices established a chain of retail stores to provide their customers with a better buying experience Apple products are sold through its retail stores, online sites, and third-party wholesaler and retailers. Strategic goals 2.1. Mission, vision & goals Mission and Vision 1. Mission:to bring the best personal computing products and support to students, educators, designers, scientists, engineers, businesspersons and consumers in over 140 countries around the world. 2. Vision:To make the best products on earth, and to leave the world better than we found it Goals • Is to obtain stellar products and services within tight timeframes, at a cost that represents the best possible value to our customers and shareholders. If that sounds like a daunting task, it’s the same one we assign ourselves. Apple is the world's largest technology company by revenue (totaling $274.5 billion in 2020) and, since January 2021, the world's most valuable company. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976 to develop and sell Wozniak's Apple personal computer. In 2007, the company launched the iPhone to critical acclaim and financial success. In 2011, Jobs resigned as CEO due to health complications, and died two months later. He was succeeded by Tim Cook. 2.2. Apple Inc. 2.3.Most Apple Business Partners 1 2 3 4 5 IBM Cisco Sap Deloitte Accenture 1. Brand Strength:Apple was the world’s leading brand in 2017, ahead of Google, Coca-Cola and IBM, according to annual rankings published by brand consultancy firm Interbrand. 2. Innovative Products:Apple has a long-established reputation for innovation and a commitment to developing new products. The company developed the graphical user interface. 3. Strong Integrated Supply Chain:An ecosystem of suppliers, developers and business partners provides Apple with a strong competitive advantage. The company owns chip manufacturers, controls manufacturing, follows extremely strict software standards and operates its own stores. 4. Brand Loyalty:Loyal Apple customers will wait in line to purchase the latest iPhone, download music through iTunes, watch their favorite television shows on Apple TV and play games on their iPads. 2.4. Apple Competitive Advantage Situation analysis 3.1.Market Size and segment (Egypt) 3.1.Market Size and segment (Worldwide) Year Number of Smartphones in Billion Number of phones in Billion Numbers of iPhone in Billion 2021 3.8 4.88 1.1 2020 3.5 4.78 1 2019 3.2 4.68 0.948 2018 2.9 4.57 0.888 2016 2.7 4.43 0.814 2015 2.5 4.3 0.710 3.2.Market Growth in Worldwide Opportunity identification percent Camera 4.1Customer Security Size and Weight • There are some points that the customers are looking in their smartphones which appear in the chart and according to our survey. • Which will help to make our target segment of customers of apple Features Function Price Design Brand Logo 0.00% 10.00% 20.00% 30.00% percent 40.00% 50.00% 60.00% 70.00% Segment to customers Segmentation variable Data Geographic Country Egypt Cities Cairo, Giza Demographic Age 16 and Above Gender Male and Female Income Can afford to buy iPhone Education High educated or above Psychographic Social class Middle and upper classes Behavioral Loyalty Benefits sought Potential users and loyal Efficiency, Speed of service, advanced features and capabilities and premium design. Apple positions itself as a premium brand by keeping the price of its product and service high in order to encourage favorable perceptions among buyers, based solely on the price. Usually, consumers with high purchasing power are the ones likely to buy Apple products because they are expensive. Some middle- and upper-income consumers may stop purchasing Apple products if the company makes its products cheaper. In other words, the fact that Apple products are premium-priced is a reason why some users are associated with the brand. With reference to the perceptual map, Apple products fall within the high quality, high price section Positioning Since Apple products are high-end products, customers of the company’s products are usually financially strong and willing to pay more for user experience. Geographically, Apple’s prime target market includes Americas, Europe, Greater China, Japan and Rest of Asia Pacific. The following are a list Apple’s target market; Middle- and upper-income consumers (Usually consumers with a high purchasing power) Customers who enjoy using technology. These include people who take delight in capturing moments. Students Professionals in media and designs Targeting VRIO of Apple Core Competency V R I O Research & Innovation ✓ ✓ ✓ ✓ Sustainable competitive advantage Marketing ✓ ✓ ✓ ✓ Sustainable competitive advantage Product Line ✓ ✓ ✓ ✓ Sustainable competitive advantage Product quality ✓ ✓ ✓ ✓ Sustainable competitive advantage Talented HR ✓ ✓ ✓ Competitive Parity Brand Equity ✓ ✓ ✓ ✓ Sustainable competitive advantage Global Recognition ✓ ✓ ✓ Competitive Parity Supply Chain ✓ ✓ ✓ Competitive Parity Bargaining Strength ✓ ✓ ✓ Competitive Parity Global sales and Distribution ✓ ✓ ✓ Competitive Parity Competitors and Collaborators Competitors • There are direct competitors like:1. Huawei 2. Xiaomi 3. Samsung • Indirect competitors like:1. Oppo 2. Vivo Collaborators Some warehouse and retail shops it help in Egypt as no entity for them in here like:1. Vodafone 2. Tradeline 3. Orange 4. Etisalat SWOT analysis SWOT analysis Strength Weakness 1. Brand Value 2. Innovative products 3. Wide ranges of products 4. Design & technology 5. Expansion in services 6. Retail stores 7. Consumer focus 1. Expensive products 2. Limited advertising & promotions 3. Limitations 4. Limited product line 5. Tracking allegations 6. Fewer choices in phones’ design 7. Incompatibility SWOT analysis Opportunities Threats 1. Loyal Customers 2. Widespread distribution network 3. Experienced professionals 4. Globalization 5. Employ Artificial intelligence 6. Accessories and gadgets 7. Growing reliance on technology 1. New competitors 2. Lawsuits 3. Technological changes 4. Supply chain disruption 5. Coronavirus outbreak 6. Backdoor protocol 7. Market penetration PESTEL analysis Pestel Analysis Environment and Technological factors Technological factors • • • • • There are several big competitors in the electronics market such as Samsung and Google that offer competitive products. Recently, Google has manufactured a payment app like Android Pay which has the same functioning as Apple Pay. This thing erodes the uniqueness of Apple. Apple’s main revenue generated through specific segments like smartphones and mobile accessories. Its different offerings like Apple TV are not so popular among users. Different android companies are giving tough competition to Apple. The increase in demand for Android tablets and smartphones continuously threatening the sales of Apple. Moreover, Apple is also facing a reduction in the sales of personal computers. As compared to android, Apple’s offering in terms of apps is very limited. That’s why most of the users are moving to android smartphones and tablets. Apple’s system is vulnerable to cybercriminals which can damage the integrity and reputation of Apple. Environment factors • • • • • It is really a big issue for Apple to dispose of its non-working electronic devices. it is difficult to dispose of these devices especially those that contain lithium batteries, and it requires a huge sum. This thing is problematic for Apple, and they are facing criticism from environmental activists over this problem. There are some other factors like pollution and waste also affecting the brand’s name. Due to this problem, they have to face higher manufacturing charges and regulations. This thing can break the image of Apple. So, it is important for the company to address these problems on a priority basis. China is trying to limit fossil fuel and greenhouse gases which directly results in an increase in manufacturing costs due to an increase in electricity rates. This thing can damage the revenue game of Apple. Due to strict climate change rules, this thing can affect the supply chain network of Apple. Increasing electricity prices in China can also break the infrastructure of Apple. Pestel Analysis Economic and Political factors Political factors • • • Due to rising charges of labor in China, this economic factor can disturb the revenue system of Apple and the results is increasing cost of products. The declining income of middle-class people can also create a bad impact on the profitability of Apple. It shrinks the Apple market and market value. The increasing exchange rate of the dollar can also create some trouble for Apple in specific regions including China and Europe. Economic factors • • • • • • Apple has a big opportunity in regions like Africa. They love to use branded products which offers a great opportunity for Apple. They can target these countries in order to enhance their revenue game. In order to derive sales, Apple can attract younger people who love to use new technologies. This kind of strategy helps the company to enhance its profitability. The unconstructive criticism against costly and modern products among users in the Europe and US. The manufacturing plants in China can disappoint the sociallyconscious users in terms of quality. This thing limits the sales of Apple. The strong relation with China can also upset some users and investors in different regions such as Europe and North America. The political unrest with China can also create a bad impact on the sales of Apple. Apple faces huge criticism from big recording stars which can tarnish Apple’s reputation and image globally. Pestel Analysis Legal and Social factors Legal factors • • • • Recently, Apple has entered the extremely regulated financial services through ‘’Apple Pay’’. There is a chance this thing increases the regulations from the government. By providing financial services, there is a possibility that the company could experience increased levels of lawsuits. According to media reports, Apple is planning to enter automobile manufacturing. In this way, they must face regulations and other costs like insurance and court case. Apple is heavily dependent on its software and music platforms because these sectors are highly profitable. But this kind of dependence makes the company weak in case of any emergency or incident. Social factors • • • • • . • Apple has a big opportunity in regions like Africa. They love to use branded products which offers a great opportunity for Apple. They can target these countries in order to enhance their revenue game. In order to derive sales, Apple can attract younger people who love to use new technologies. This kind of strategy helps the company to enhance its profitability. The unconstructive criticism against costly and modern products among users in the Europe and US. The manufacturing plants in China can disappoint the sociallyconscious users in terms of quality. This thing limits the sales of Apple. The strong relation with China can also upset some users and investors in different regions such as Europe and North America. The political unrest with China can also create a bad impact on the sales of Apple. Apple faces huge criticism from big recording stars which can tarnish Apple’s reputation and image globally. Market research • Age Group:- 66.96 % of people who take survey are between 25-34 years. • Education :- 88.6% are finished their education who have bachelor degree or higher. • Residents:- 23.48 % are living in New Cairo and 30.34% in Nasr City. • Smartphones :- 71.93% of people are holding Samsung phones or iPhone and 45.61% of the people are holding iPhone. • Income Range :- 70.71% of people gain more than EGP 5K in the month and 16.67 % of people didn’t want to say which show a large part of people doesn’t feel comfort to tell. • Change their phones:- 30.43% of people to change their smartphones after 3 years. Customer’s profile 1. Punch Hole instead for camera instead of notch. 2. Fingerprint added to face ID as the problem of Covid-19, we are wearing mask that make the face ID isn’t best solution to unlock the mobile. 3. Faster charger even if it is not included in the box but it will minimize the charging time. 4. To have line with lower cost than normal as iPhone lite as most of other companies make to target the middle-income people. 5. The Bluetooth to have to transfer the files with others. 6. Have more applications in the app store. What competitors of Apple give in the Smartphones Setting goals Marketing Mix the company continues to expand its product mix, creating the possibility of adding nonIT-related products in this 4P element. Apple Inc.’s main product lines are as follows: 1.Mac 2.iPhone 3.iPad 4.iPod 5.Apple Watch 6.Apple TV 7.Digital content 8.Software 9.Accessories 10.Cloud services These product lines are associated with human resource utilization and business processes based on product-based divisions. 9.1 Product 1. Apple uses the following pricing strategies: 2. Premium pricing strategy 3. Freemium pricing strategy The premium pricing strategy involves offering products at a premium. In theory, a premium is an amount that is applied in addition to the typical or common price. In this regard, Apple’s use of the premium pricing strategy sets high prices for its products. For example, in general, iPhones are more expensive than Samsung smartphones. Premium pricing maximizes profit margins. the company also uses the freemium pricing strategy. This strategy involves “free” and “premium” pricing combined into a single strategy. In this freemium pricing case, some of Apple Inc.’s products are free, but customers pay to access more, advanced, or better features. For example, the company offers free 5-gigabyte iCloud storage. 9.2 Pricing the company emphasizes the premium brand image and premium quality of its products. The following communications tactics are in Apple’s promotional mix: 1.Advertising 2.Personal Selling 3.Sales Promotion 4.Public Relations Apple marketing mix includes advertising, such as on Google’s digital advertising network and on technology news websites. The company has agreements with various prominent websites to advertise and promote Apple products. In addition, the company uses personal selling in the form of Apple Store employees who provide product-specific information in the aim of convincing store visitors to make a purchase. 9.3 Promotion Apple business case involves company-owned locations, as well as other parties that the company authorizes to distribute its products. The following places are included in Apple’s distribution strategy: 1.Apple Store locations 2.Company-owned website and online stores for desktop and mobile 3.Authorized sellers 4.Telecommunications companies Apple Store is a subsidiary of Apple Inc. that operates physical or brick-and-mortar stores that sell the company’s products, along with related products from other manufacturers. For example, these stores sell MacBook units, as well as peripheral devices from other companies. In addition, customers can buy products through Apple’s website and online stores for desktop and mobile. Customers can buy consumer electronics through the company’s website. 9.4 Place Implementation and control Reference