Fall iProjector Group 6 Marketing Plan Part 1 October 20, 2013 13 Marketing Analysis: iProjector 2 Table of Contents Marketing Analysis………………………………………………………………………………… Situation Analysis………………………………………………………………………….. Market Summary…………………………………………………………………………... Target Market………………………………………………………………………………………. Geographics………………………………………………………………………………... Demographics…………………………………………………………………………….... Behavioral and Psychographic Factors…………………………………………………….. The Market…………………………………………………………………………………………. Market Needs………………………………………………………………………………. Market Trends……………………………………………………………………………… Market Growth……………………………………………………………………………... SWOT Analysis……………………………………………………………………………………. Strengths…………………………………………………………………………………… Weaknesses………………………………………………………………………………… Opportunities……………………………………………………………………………….. Threats…………………………………………………………………………………….... Competition………………………………………………………………………………………… The Product: A Built-In Projector Feature…………………………………………………………. Product Offering…………………………………………………………………………… Keys to Success…………………………………………………………………………….. Critical Issues………………………………………………………………………………. Marketing Analysis: iProjector 3 Marketing Analysis Situation Analysis Living in a technology driven world, consumers are constantly given improvements to their everyday lives through technological advances. Sharing information is a common function of the technology that consumers utilize. Many obstacles occur for consumers with the current means of sharing information. Several consumers do not feel comfortable allowing others to handle their information sharing products or they need to share information in a hands free manner. Standard projection features or tools are not ideal for the impatient and easily distracted consumer. The iProjector built in feature will satisfy the customers’ needs, as well as simplify their daily lives. Market Summary Nearly every individual today has a smartphone or tablet that is used to share information with others. Several issues are present when sharing information using these devices: Limits the audience Someone else must handle your device Challenge of using a device during hands on activities People use the devices to relay information to others. Sharing resources on your phone or tablet can limit the amount of people able to look at the information at one time. In order for every individual to view and understand the information being shared, one person must hold the device at a time. Sharing information in this manner means that personal devices must be handed to acquaintances, and even strangers in some circumstances. When preforming hands on activities, it can be challenging to use your device as a reference, which can prevent others from viewing necessary data. In order to solve these issues, Apple created the iProjector that will be installed in every iPhone and Ipad. The current state of the market for smartphones with projection features is increasing, but still not bright. Incorporating a built in projection feature to a smartphone comes with a great deal of costs, as seen in the current competitors products. For example, the Samsung Galaxy Beam is a phone that merges a “unique beam projector capability with powerful smartphone performance” (Samsung, 2012). Although the competitor is already created and produced, it is only available to the public on websites such as EBay or Amazon for astronomical prices close to $600. In terms of the smartphone market as a whole in our society, Anshul Gupta, who is the Marketing Analysis: iProjector 4 principal research analyst at Gartner Research, “smartphones accounted for 51.8 percent of mobile phone sales in the second quarter of 2013, resulting in smartphone sales surpassing feature phone sales for the first time” (Gartner, 2013). With the implementation of an affordable built-in projection feature, Apple will be able to take hold of the growing smartphone market and remain the dominant leader that it has been in the past. Our built in projection feature will be useful to anyone in need to share information with an iPhone or iPad. We will specifically target: Businesses Public and private schools University and state colleges iPhone or iPad owners We will market to businesses that have the need to share their information quickly. Whether it is an email, project proposal, data, or a picture. Every school or college needs to transmit information and knowledge between teachers and students. We will target all learning environments to help improve their way of communicating. Another group we will promote our product to is the millennial age group because of their desire to share information with their friends, family, and others. Marketing Analysis: iProjector 5 Target Market Geographics Apple products are available to consumers throughout the world (Apple Inc., 2013). Since the product consists of a projector built in to an iPhone or iPad, it will be offered in every city, state, country, and nation. Due to the diversity of Apples offerings, geographic segmentation will not have a role in defining the target market. Demographics An iPhone with the iProjector feature will be beneficial for technologically savvy consumers, consumers wanting to share information to others, people in a professional and technical field, and lastly, consumers from multiple age segments. Based on demographic information from the Neilsen PRIZM, we can further identify our consumers through segmentation. Our target age group ranges from 17 years to 50 years. Within that group there is one life stage group, defined by the Neilsen PRIZM, that we are going to specifically target: the younger years. The younger years include both the younger males and females, either just starting their career life or are already successful in their careers at a young age. These individuals generally do not have children and live in highly populated, destination cities throughout the nation. The majority of the population in the younger years is made up individuals who are college educated (Neilsen PRIZM, 2013). Within the younger years, three sub categories will be included in our target market: the young influentials, executive suites, and urban achievers. The young influentials fulfill the age group of 35 and younger. This group is characterized as tech savvy, which is who will benefit the most from our product. The individuals have funds and think they have more disposable income than they do. The young influential are still young enough to not truly know the importance and difference between needs and wants. It is important for these consumers to keep up with trends and be included in the millennial generation. The executive suites are the older, 55 and younger, more successful age group. They do not have children, allotting them more disposable income to spend on new technology. These individuals usually have white-collar jobs where our technology will be useful. This life stage group also includes the millennial generation while touching on the end of the baby boomer generation. Lastly for the younger years are the urban achievers. This group segment ages 35 and younger, which include the millennial generation. Marketing Analysis: iProjector 6 They are young singles, couples, and families who are typically college-educated and ethnically diverse. This is a large range of diversity for our product (Neilsen PRIZM, 2013). Behavioral and Psychographic Factors The first target group will be those with the need to share information and do not feel comfortable with others handling their device. Based on a survey conducted, 49.57 percent of smartphone users do not feel comfortable with others handling their phone. These people will benefit from a built in projection feature in an iPhone or iPad. It will allow the user to communicate by displaying material on a nearby surface for others to receive. (Broderick, L., Cox, A., Eledge, E., Keller, K. Rosario, D., survey, October 2013) Another consumer group will consist of regular users of the product, potential users, and nonusers. Apple will promote the feature to regular consumers who already have Apple products. 55.26 percent of existing Apple users surveyed would be more inclined to upgrade their iPhone to one that offers a built in projector, than one without (Broderick, L., Cox, A., Eledge, E., Keller, K.Rosario, D., survey, October 2013). iProjector will attract a numerous amount of potential Apple product users and nonusers to purchase iPhones and iPads. Responders of the survey said that they would use a projection feature on their smartphones Marketing Analysis: iProjector 7 (Broderick, L., Cox, A., Eledge, E., Keller, K. Rosario, D., survey, October 2013). Apple has a strong reputation in producing state of the art, high quality products, with great customer service for consumers. These factors are why buyers continue to make their purchases through Apple and become loyal to the brand. The iProjector will give loyal customers the satisfaction of new features within Apple devices. We will also target consumers who sometimes purchase Apple products but also purchase other brands. Installing the iProjector will attract these consumers to purchasing only a iPhone or iPad, instead of another brand because Apple will be the only one to offer this feature built into their devices. Having the iProjector will not only keep existing customers loyal and insure the purchase of an Apple product over another brand, it will attract users of other brands. With their current brand not offering a built in projection feature making it easier to share information easier, they will seek out an iPhone or iPad as their next device. Marketing Analysis: iProjector 8 (Broderick, L., Cox, A., Eledge, E., Keller, K. Rosario, D., survey, October 2013) When dealing with the psychographic segment for our consumer market, we will focus on social class. iProjector will be aimed towards those in the social classes ranging from the working class to the upper-uppers. This target group will have the funds and demand for a phone or tablet with the iProjector feature. The social class that will determine our success will be the middle class. “Consumers of this class tend to be well educated, hold post-secondary degrees and have highpaying, white-collar positions” (Alhanati, 2012). The middle class has an income of $100,000 or more annually which is enough to stay at the top one-third of all U.S. incomes; therefore, having the extra income to spend. The Market Market Needs Sharing information through iPhones and iPads can be difficult. Presenting information on a personal Apple iPhone or iPad requires handing the device over to multiple people, which for some creates an uneasy feeling. Even with handing over the device, it is difficult to show the information to more than one person at a time. The new iOS7 software includes the airdrop sharing feature but this only works between iPhones and iPads, with Wi-Fi and Bluetooth accessibility. There is no quick and easy way to share or show information to multiple people from a personal apple device. A built in projection feature will allow for easy sharing of information to others and take away the uneasy feeling of having to handoff the device. Marketing Analysis: iProjector In a survey conducted by iProjector, the decision to produce an iPhone or iPad with a built-in projection feature was decided upon based on consumer input. The survey found that over 95 percent of people surveyed share information using their phone and over half of those surveyed were not comfortable with others handling their device. As displayed below in Figure 1, 76 percent of those surveyed would use a built in projection feature. Further more, 61 percent of those surveyed would prefer an iPhone with the projection feature than one without which is shown in Figure 2 below. (Broderick, L., Cox, A., Eledge, E., Keller, K. Rosario, D., survey, October 2013) Figure 1 (Broderick, L., Cox, A., Eledge, E., Keller, K. Rosario, D., survey, October 2013) 9 Marketing Analysis: iProjector 10 Figure 2 (Broderick, L., Cox, A., Eledge, E., Keller, K. Rosario, D., survey, October 2013) Market Trends In today’s marketplace Apple has proven to be a powerhouse. With many new and improved upgrades, people from all target markets will be attracted to the Apple devices that contain a built in projection feature. In today’s marketplace, everyday trends continue to change. The benefit of having our iProjection feature in Apple products is limitless. With today’s technology and entertainment based society, the iProjection will make information more visible and easily accessible for more users to see. This is essential if you want to share information, watch a movie, or anything that is intended for multiple viewers, without passing around your cellular device. Apple understands that customers have concerns with dropping and scratching their devices, but has yet to create a solution that will suppress those concerns. Outproduct is not only beneficial to all the entertainment fiends, but to the consumers who need the capability in a professional environment. The new Apple iProjection feature built into the iPhone and iPads can also be useful in the work environment. Having this mobile device helps when one is in a rush; giving them the capability to view and display your information wherever necessary. The projection feature will make viewing any video or image, a fun and exciting experience. Marketing Analysis: iProjector 11 Market Growth The market for Apple products will continue to grow with the installation of the iProjection feature in all iPhones and iPads. With our iProjection feature in these select products, it begins a frenzy of what future phones could create. Secondly, Apple as a company has one of the best customer loyalty in the business, which encourages further industry growth. With new iPhones and Apple products being released with our iProjection feature, the potential to beat out the past products sales is our goal. Not even a month ago in late September Apple hit a company milestone, selling 9 million iPhones; including the iPhone 5s and 5c. (Apple Press, 2013.) When one iPhone is released, Apple loyal customers around the world are excited for the newest upgraded model. Third, there is a growing trend of individuals breaking or scratching their Apple products incidentally. With people incidentally breaking their phones, they will be inclined to repurchase or upgrade to the newest model, due to our brand loyalty. Lastly, people of all ages are likely to own a cell phone throughout their life. We as a company feel that our quality product will bring you more than just a phone, but a relationship with Apple. With Apples wide range of variety for its customers it offers options for any day or activity. Apple products come in all different sizes, and assorted fun colors for those who are interested. As a company, Apple will continue to be a huge success with its excellent quality and genius creativity. SWOT Analysis Strengths Apple has many positive attributes that will be beneficial when creating iProjector. Major strengths are: Available funds Access to resources Reputation In 2013, Apples quarterly revenue is $35 billion (Apple Inc., 2013). Having a large capital gives us the ability to create, implement, and market the product successfully. The availability of funds gives us access to needed resources. Being able to utilize resources will allow us to obtain needed materials and use engineers to implement the iProjector into the iPhone. Consumers are always questionable about a new product when it enters a market. With Apple having a high Marketing Analysis: iProjector 12 reputation by producing reliable and high quality products that satisfy customer needs, it will be east to gain the consumers trust in the iProjector. Weaknesses Where there are strengths, there are always weaknesses. When observing the product, we found three weaknesses with the iProjector: Being a new product Quality of the projector Battery life Being a new product, customers might be skeptical to buy it right away. They might feel that this new projection feature will have problems and want to wait to purchase a new Apple product. This product will also have some weaknesses when it comes to the actual quality of the projector. The iProjector can only project a clear image from a distance of four to six feet. Customers who want to project important information to a large audience might consider this a problem with the product. This feature on the iPhone and iPad will also decrease the battery life of a device faster than usual. When projecting information, images, or videos, the projector is using a lot of light and draining the battery. Opportunities Opportunities for Apple to produce iProjector are surfacing because of growing popularity in certain trends. The amount of information continues to grow, along with peoples need to share it with each other. The iProjector gives Apple the opportunity to become the world’s leading information sharing innovator. Another popular trend is the want and need to have information easily accessible. Having the iProjector built into Apple devices gives consumers the ability to access information and share it with the touch of a button. Threats There are possible threats that could hinder the potential and success of iProjector. The greatest worry within the company is our competition. In the past companies have tried to implement Apples features and services to keep up with the market demand. Competing phone and projector companies might try and apply a projector into their smartphones or making projectors easily accessible to stay competitive. This could potentially harm Apples profit by consumers purchasing similar products offered by their competitors. Marketing Analysis: iProjector 13 Competition With technology being as advanced as it is today, it is hard to think that a projection feature in a smartphone or tablet does not exist, but it does. The Samsung Galaxy Beam is a phone that merges a “unique bean projector capability with powerful smartphone performance” (Samsung, 2012). This phone’s projection feature allows consumer to create a home theater practically anywhere, project live games on to the sealing or dorm room wall, and can show pictures that have been taken on the phone. The phone’s projection features are 15 Lumen Digital Light Projection, with HD resolution (640x360), an ambience mode, and an OHP mode (Samsung, 2012). The Galaxy Beam is made by Samsung and is featured on a website powered by Samsung. Through this website, viewers are only allowed to see the features this phone has. When trying to purchase it, you can only do so on websites like Amazon and EBay for about $600. None of the retailer stores such as AT&T, Sprint, or T Mobile carry this phone. The Galaxy Beam cannot even be purchased on Samsung’s official website. The only marketing about this phone is on the Samsung Galaxy Bean website and a few videos that have been placed on YouTube (Samsung, 2012). Some other competitors are the HDMI Pocket Projector and the Pocket Projector for IPhone 4 (Projector Central, 2013). These both can be purchased at the specialty retailer store Brookstone store or online at the Brookstone website. The pocket projector is a projector that is built into an iPhone 4 phone case (Projector Central, 2013). It displays a beautiful 50 inch image onto any surface desired. It also doubles as a charger for your iPhone. This Pocket Projector projects images up to 50” at 15 lumens. The Pocket Projector for iPhone 4 can be purchased for about $130 (Brookstone, 2012). The HDMI Pocket Projector is compatible with smartphones, tablets, laptops, and weighs about five pounds. The Pocket Projector projects bright, sharp images up to 85 lumens for up to two hours on a single charge. In order for this projector to work with iPhones, an Apple Digital AV Adaptor is required and is not sold with the projector. The HDMI Pocket Projector can be purchased for about $300 (Brookstone, 2012). Brookstone markets their products through their catalogs, e-mail and affiliate marketing, and through their online site. Customers can always purchase merchandise at one of their many retail and airport stores (Brookstone, 2012). Marketing Analysis: iProjector 14 The Product: A Built-In Projector Feature Product Offering Our product is an internally based projection feature in iPhones and iPads. The projector will follow the basic projection construction and operations and will be located inside the Apple device. Internally, a powerful white light source will emit light onto two small dichroic mirrors and three small standard mirrors; this process creates a prism of light. After the light is dissected into the three basic colors (red, blue, and green) through the prism, the individual colors will travel through a liquid crystal display (LCD). The LCD will then transmit the beans of colored light through a dichroic prism. A dichroic prism is a combination of four triangular prisms that will gather the red, blue, and green light and combined them into the original image. The original image will be transmitted onto the desired surface through a projector lens located at the top of the desired Apple device, next to the Power button (Lamb, 2012). Rather than creating a specific app that needs to be downloaded and installed, the iProjector app will come standard on the generations of Apple products that have the built-in projection feature. Similar to the current Camera App, the iProjector App will not able to be deleted or erased from the device. Upon finding information to be projected, like a recipe or video tutorial for example, the user will be able to engage the projection feature by sliding the small protective cover off of the projector lens on the top of the device, similar to the Volume Control Switch on the side of the device. The user will then point their device towards the desired surface and their image will be projected for them to show others or use for a personal convenience in a hands-free manner. The warranties allocated to the iProjector feature will be consistent with the warranties within the company of Apple. Apple has created a One (1) Year Limited Warranty on products such as an Apple product and cannot stand alone, the Apple one year warranty will serve as coverage for mishaps that consumers may encounter. Because our product, the iProjector built-in feature, is a feature within Apple, “every iPhone comes with one year of hardware repair coverage through its limited warranty and up to 90 days of complimentary support” (AppleSupport-iPhone, 2013). In addition to the standard warranty that is included in the purchase of an Apple product, consumers are also given the option to purchase AppleCare+ for their desired product for a separate cost. AppleCare+ acts as an extended warranty that protects the consumers Marketing Analysis: iProjector 15 from future problems; the specific warranty depends upon the product that it is being purchased for and expires two years after the purchase date. Keys to Success The Apple Company is highly focusing on four key elements that will help the iProjector to become successful. Price Easily accessible Customer loyalty First phone retailer to sell phone with projector When purchasing an iPhone or iPad in a retail store, the price will range at a range from $199 to $299 depending on gigabytes the customer wants. By having a projection feature available on an iPhone, this allows customers easy access to sharing information by projecting it onto any type of surface. Since Apple is a highly recognized business, we plan to use our customer loyalty to buy the phone with the new feature. Our product would also be the first phone that is available to buy at a phone retailer. All of these would work in favor for our product. Critical Issues With the strengths of a projection feature built into an apple device, there are critical issues that can prevent the success of the product. A leading problem is, customer loyalty to other brands. Consumers who purchase other smartphones from Samsung, HTC, Windows, and other competitors may not be willing to make their next purchase through Apple. This may be due to another concern, people not having a need for a built in projection feature within their devices. Another serious issue is, the capability of the projection feature. Problems that may arise with the projector are quality, distance, size, and battery life of the phone after using the feature. Marketing Analysis: iProjector 16 References Alhanati, J. (2012, September 27). Which income class are you? Retrieved October 15, 2013, from Investopedia: http://www.investopedia.com/financial-edge/0912/which-incomeclass-are-you.aspx Apple Inc. Apple reports third quarter results, 2013. Web. 16 Oct. 2013. http://www.apple.com/pr/library/2013/07/23Apple-Reports-Third-Quarter-Results.html Apple Inc. Choose your country or region, 2013. Web. 14 Oct. 2013. www.apple.com/chooseyour-country/ Brewer, T. (2013, September 23). Apple - press info - first weekend iPhone sales top nine million, sets new record. apple. Retrieved October 15, 2013, from http://www.apple.com/pr/library/2013/09/23First-Weekend-iPhone-Sales-Top-NineMillion-Sets-New-Record.html Brookstone. (2012). About brookstone. Retrieved from Brookstone: http://www.brookstone.com/static/customerService.jsp?panelId=600017 Brookstone. (2012). Pocket projector for iPhone4 and 4S devices. Retrieved from Brookstone: http://www.brookstone.com/pocket-projector-for-iphone4?bkiid=SearchResults|CategoryProductList|755165p Brookstone. (2012). Pocket projector mobile, 85-lumen. Retrieved from Brookstone: http://www.brookstone.com/hdmi-pocketprojector?bkiid=SearchResults|CategoryProductList|801143p Gupta, A. (2013, August 14). Gartner says smartphone sales grew 46.5 percent in second quarter of 2013 and exceeded feature phone sales for first time. Retrieved from http://www.gartner.com/newsroom/id/2573415 Nielsen PRIZM. (2013). Segment explorer. The nielsen company. Retrieved from http://www.claritas.com/MyBestSegments/Default.jsp?ID=30&pageName=Segme nt%2BExplorer Projector Central. (2013, October 13). Top 10 Pico Projectors. Retrieved from Projector Central: http://www.projectorcentral.com/popular-pico-projectors.html Samsung. (2012). Samsung galaxy beam. Retrieved from Samsung: http://www.samsung.com/global/microsite/galaxybeam/feature.html