Marketing Plan for
iPhone 3GS
Raman Gill
Michael Shangguan
Karlo Mercado
Susan Zeng
Ka Yi Lam
Fumi
1
Introduction
An Apple is very successful company and well established. Its first iPhone wan
was introduced in the United States in late June 2007 before marketed worldwide. After
millions had been sold; Time Magazine named iPhone as The Invention of the year in
2007. In 2008, Apple decided to create a much better and faster 3G data system which
was named iPhone 3GS. A year later, It announced its version 3.0 of the I phone
operation system which also can be used for iTouch. The version 3.0 led to a new iPhone
called iPhone 3GS. It was released in Canada, US, and Europe on June 19, 2009. The
iPhone 3GS includes a video operating system and a better quality as well. However,
there are still complications that people have found out on the new iPhone 3GS.
Apple has succeeded with knowing what the customers really want. A good
marketing strategy and a smart distribution made them really successful and at the top in
the world of technology. In this report, we will outline our marketing plan and solutions.
SWOT analysis
Strengths
-
Strong brand image
Robust financial performance
Focus on research and development
Weaknesses
-
Opportunities
-
Smart phones
New Retail Stores
Product recalls
Patent infringement
Threats
-
Intense competition
Uncertain global conditions
Declining pc sales
Dependence on specific supplies
Strengths
Apple’s strong brand image is well known by most consumers. Apple also enjoys a high
level of brand awareness and brand recognition for its products in all its markets.
According to the Interbrand rankings, its brand value has improved from 39 in 2006, 35
in 2007 to 24 in 2008. Also, it is financially doing great. Its revenue for the company
improved from $6,207 million to $32,479 million by 2008. Furthermore, Apple also
focus on research and development. A company is always bringing in new products and
new technology to try out which keeps bringing in new customers.
2
Weaknesses
Apple’s main weaknesses are product recalls and patent infringement. Its products are
always on product recall time to time due to highly complex hardware and software
problems. Also, it is involved with legal issues regarding patent infringement. It has
defended more than 21 cases in 2008 according to the data monitor report.
Opportunities
There is a huge demand for smart phones in coming years. Also, the company has
“opened a total of 247 retail stores, including 205 stores in the US and a total of 42 retail
stores internationally” data monitor report, 2009. It is a way to expand there services.
Furthermore, it’s always tries to find new market to break in.
Threats
It operates in very competitive market. It main competitors are such as Dell and Mac.
Also, PC sales are expected to decline to in coming years due to the recession.
Furthermore, another important threat is uncertain global economic conditions. An
economy is slowing down and people are losing their jobs so, people are on tight budget
on how much they can spend. Final threat is dependence on specific suppliers because we
don’t know if they can meet the demand in the future or their 3rd party supplier
companies will still be around due to the downfall in the economy.
Alternative and Solutions
Now, iPhone is available in 90 countries and will be available in 4 counties soon.
Map of iPhone 3G availability worldwide
The six countries which got the original iPhone, (also got the iPhone 3G in 2008)
Countries where the iPhone 3G is available coming from
http://www.apple.com/iphone/countries/ (2009-02-29)
3
First iPhone was released on June 28, 2007 in the United States. Several months
later, iPhone was officially released in UK, Germany, and France. After some months
later, the first iPhone to be released in Canada was the iPhone 3G. In 2009, iPhone has
been sold in 90 countries and 5,208 million dollars have been made.
Customer relations
In order to achieve good customer relations, they need to maintain better quality
that they distribute to the customers. One way to do this is to have survey about what the
customer really want and what the customer really need on a cellular phone. They also
have to make the customer feel that they are part of this new technology by letting them
customize their own iPhone.
4
Advantages and Disadvantages of iphone 3G
Advantages









Makes the customers feel
overwhelmed.
Makes the customers feel that they are
part of the technology
Opportunity to show their skills in
designing
Built in camera
Music player or iPod
Visual voicemail
E-mail
Local WIFI connection
Web browsing
Disadvantages





Cost a lot of money
May not be as good as original one.
Not enough memory
Battery
Unable to upgrade
Marketing strategy
As iphone’s market share of worldwide smartphone sales has grown from 5.3 percent
in 2008 to 10.8 percent in the first quarter of 2009, we optimistically predict that the
launch of iphone 3GS will help the market share increase to 20 percent at the end of
2009 through unit sales of 10 million.
When marketing iphone 3GS, we will capitalize on the brand that has been perfectly
built by ipod and iphone. Innovation, value and fashion are still the keywords.
The same as iphone, iPhone 3GS’s marketing strategy also based on a positioning of
product differentiation. Apple is positioning iphone 3GS as the update edition of
iphone that will deliver more function, fashion and conveniences than iphone.
The marketing strategy of iPhone 3Gs differs from that of other PDA’s on the market.
We have two major customer targets. One of our major customer targets is the
middle-upper income businessmen who need one portable device to work with their
busy schedules and communicate with colleagues, friends and family. The other
consumer target is students from high schools, colleges and universities who need
one portable multifunction device. Mainly the iphone3Gs market will replace the iPod
and cell phone.
Product strategy
The iphone 3GS will have a two-year warranty that is one-year more than usual and
optional lifetime warranty. The new policy of warranty is to strongly signal customers
that the latest edition of iphone is more reliable than competitive smartphone.
Different features have been endowed to different editions for different target
markets. Three different versions are offered: the most advanced version for
successful business elites with luxury package, the mainstream version for
professionals and less advanced version for students.

The fastest iphone-customers can launch application more quickly than ever.
5





Web pages render is a fraction of time, and it is faster to view email
attachments. Everything customers do on iphone 3Gs is up to two times
faster than the previous edition of iphone.
GPS functionality – with a built-in digital compass and more precise
information on location.
Larger disk storage capacity- up to 32GB storage.
Improved camera and video– For more detailed pictures and high quality
video conferencing.
Longer battery life – can play movies for twice as long, battery should be
easily replaceable.
Packages- tasteful package for mainstream professionals, colorful,
enthusiastic and lively packages for young people.
Pricing strategy
Iphone 3GS will be priced competitively against the main competitors-Blackberry and
Nokia and even cheaper than iphone 3G with more advanced features. The most
advanced version with deluxe package for business elites will be set at $1099, the
mainstream version for middle-upper professionals will be set at $399, and student
version is priced at $299. The pricing strategy will hopefully to help iphone to beat
competitors and dramatically increase its market share from 10 percent to 20
percent in a short period.
Distribution strategy
We are planning worldwide massive rollout at all major retailers online. All Apple
Stores the Apple website will dedicate themselves to the iPhone 3GS and also
provider channel partners by providing product demonstrations. Eye catching
displays will be found at all physical stores featuring the iPhone to make the product
stand out from the pack. Apple Stores will have the iPhone on display a full month
before its worldwide release. This is designed to lure consumers into Apple stores
and see the whole range of products Apple can offer.
As Apple sold 50 percent iphone in North American market in 2008, it sold only 7
percent of iphone to Asian market. It is well known that Asian market has great
potential to discover, especially in a recession facing North America.
Marketing communication strategy
As customer has been familiar with iphone, we will focus on delivering the message
to customer that iphone 3GS shows up with more advanced powerful function and
lower price. We will also emphasize our brand prominently and associated the iPhone
3GS with the iPhone groundbreaking lineage. A massive TV campaign around the
world is planned in August, and also apple will circulate press releases in key cities in
North America and Asia.
Plan of Action
In iphone, An Apple has involved individual product decision and product support
services. In product decision; Product quality, features, style and design are made. It
provides customers’ hotline and online services to its iphone users. Through the selection
process; branding, packaging and labelling, a strong image of the product of Apple is
6
done. It helps it to develop a brand strategy to enhance the market of iphone. As a simple
design, it represents the entire company. Its image impress to customers’ mind.
Apple keeps seeking for better and newest technique to improve its existed products in
order to maintain the market value and be competitive. Users can freely upgrade the
newest from the website or receive new date by I-phone itself. Customers can catch up all
the freshest new.
To meet the customers’ needs, Apple has after-sell service to follow-up the product
effectiveness. Trouble shooting hotlines and online customers support exclusive can add
value to the product with providing assistance.
To understand the customers, a focus group is formed to get feedback. Customers’
complaints questions, surveys are the main sources to analyze the problems occur in its
products. Apple can gauge the extend they need to penetrate each market. Apple has a
very strong marketing reach and the ability to turn a product into a trend. iphone is
introduced to world as a world phone. It is available North America, Asian and Europe.
A strong market for Apple products in these geographical areas would increase the
branding power. Ads designed specifically to each market shall enhance the marketing
campaign and create value for each market.
The iphone, will placed through the product development stages.
Screening > development > test marketing > commercialization to
provide the greatest insight show product will be perceived before it’s launch.
A global release, using Apple’s global distribution and supply chain will allow for full
market distribution at once. Heavy and effective promotion and adjustments to sales
objectives are essential in this implementation plan.
7
Appendix
8