Chelsea Martin & Susanne Rattay, March 2012
IMC Plan
• Executive Summary
• Situational Analysis
• 4 P’s Brand Extension iKey
• Product + SWOT Analysis
• Price & Place
• Promotion
• Objectives
• Promotional Mix + Strategies
• Budget
• Future suggestions
• Implementation + Control
Apple Inc.
Executive Summary:
PAST: Founded April 1976 by Steve Jobs, Steve
Wozniak & Ronald Wayne
Sold hand built Apple 1 Computer Kit
2001 the first iPod
Apple Inc.
PRESENT: iPod holds 70% market share
Stock up almost 500% in last 10 years
“the P.C alternative”
Post Steve Jobs, CEO Tim Cook = increase in
charitable donations
End of 2012 = highest iPhone/iPad sales ever
Apple Inc.
FUTURE: Apple’s product compatibility and
design superiority have created a loyal
customer base
Aim of new product
maintain core customers
grow customer
base
Situational Analysis
Political
Taxation laws
Europe’s universal charger regulations (2011)
Economic
GFC
Immerging Markets (BRICS as of 2011, Mac
iOS had less than 2% market share)
Situational Analysis
Socio-Cultural
Immerging nation markets
Increasing technology demand (80% world
population have a mobile phone)
Over 75% of SP (smart phone) users will
email, text or browse the web each day
Target customers
Home users, small/medium business, students,
younger generation, creative “Mac users”
Situational Analysis
Profound Customer Profile
Wheel of Consumer Analysis
• Affect & Cognition
• Behaviour
• Environment  decision process
Identify characteristics, buying patterns, influential
factors on a country-by-country basis for different
target groups and general market situations
Situational Analysis
Internal Apple Inc
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Review past (strategies + success)
Re-evaluate collaboration with ad agencies
Assess overall promotional capabilities
Maintain Brand Image throughout promotion
iKey
Touch, share, live. In a whole new way.
Product
Introducing the Apple iKey
‘A revolutionary device that allows you to do, see and share in a whole new way’
Amazing innovation
Minor product extension (peripheral)
Product compatibility = core customers
Versatile = broad target audience
Product
• Appearence
• Dimensions 10 cm x 5 cm
• Colors (black, silver, white)
• Weight 100 grams
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QWERTY layout + Screen Projection
Lifespan > 5-10 years
Battery charge via devices
Laser + light technology : translates finger
movement into keystrokes
Product
(Park, Milberg & Lawson, 2001)
Why product?
7 pitfalls (Quelch & Kenny, 2000)
3 arguments
Convenience
Health
Sustainability
Convenience
• Portability
• Multiple gadget use
• Multifunctional
• Input (keyboard + mouse
• Screen (movies + pictures)
• Decoration
Promising Outlooks
Health & Sustainability
Conventional keyboards = toxic
(Five Winds International, 2001)
• Brominated flame-retardants
• PVC (Poly Vinyl Chloride)
E-Waste: incineration forms dioxins
Health & Sustainability
Conventional keyboards = toxic
(Five Winds International, 2001)
• Brominated flame-retardants
• PVC (Poly Vinyl Chloride)
E-Waste: incineration forms dioxins
Increase in multiple-user PC areas
• Lack of hygiene
• Transfer of potentially pathogenic bacteria
Main target (students): (Anderson & Palombo, 2009)
100 % PC access,
91,2% regular internet use
73,3% regular e-mail use
SWOT Analysis
Strengths
• Innovative
• Multifunctional
• Consumer-oriented
(convenience, ease-of-use)
• Compatibility + diversification
• User Interface enhancement
 PDAs (word processing + spreadsheet use)
• Differentiation
SWOT Analysis
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Weaknesses
Immature technology
Increased production costs
High market/consumer research
Mere Apple compatibility
Inflexibility (USB plug-in) + battery
Premium price
No groundbreaking device + adjustment period
but: huge practicability
SWOT Analysis
Opportunities
Launch New Technology (projection)
Home cinema movement
Encourage Apple device purchase
Partnerships (collaboration)
Multiple-user computer areas
(universities, companies, hospitals)
SWOT Analysis
Threats
Laser technology
New field (projection technology)
Movie theatres
Downward pricing pressure
Difficulty market expansion
Competition
Competitive Analysis
Products
• Wireless keyboards, fold-up keyboards, thumb
boards, virtual keyboards
Competitive Analysis
Major companies
• Experience in projection technology
Competitive Analysis
Minor companies
• Experience in projection technology
Competitive Analysis
• In-depth examination
• Primary competitors (Samsung, Google)
 Strengths + Weaknesses
• Segmentation
• Targets
• Strategies (positioning + promotional)
• Contemplation of partnerships
• Major or minor companies
Competitive Analysis
Virtual Keyboards
VKB Inc
Canesta
Virtek
Differentiation
So far…
• Laser only
• Simplistic
(Keyboard + mouse)
• One size, simple sound
• Battery recharge (240 min.)
• Universal connectivity
(Bluetooth, Wifi)
• Inconvenience (errors)
Differentiation
So far…
• Laser only
• Simplistic
(Keyboard + mouse)
• One size, simple sound
• Battery recharge (240 min.)
• Universal connectivity
(Bluetooth, Wifi, USB)
• Inconvenience (errors)
… Aim
• laser + light combination
• Keyboard PLUS
(Screening)
• Size + sound regulation
• No charging time
• Exclusive connectivity
(Apple Socket)
• Convenience (error-free)
Product – Branded House
Apple
• Corporate
Brand
Apple
• Master
Brand
iKey
• Product
Brand
Does the Master Brand Contribute to
the Offering?
Associations Enhancing the Value Proposition
Having the Apple logo and “i” product linkage
would make the product more appealing
Customers would associate positives of other
Apple products with the new product (e.g.
quality and compatibility)
Visibility
Apple product launches given worldwide
press coverage
Product - Brand Extension
Benefits:
low risk (already have the customers)
cheaper than a new brand
new product has mutual benefits with
existing products
in line with past brand extensions (minor
extension – peripheral product)
Price
US$150 (€120)*
optimum of perceived customer value
in line with current pricing schedules
*subject to production cost fluctuations.
Place
iKey will be stocked in
Apple stores
Apple online stores
Approved resellers
Know your aim
Link the brand to the slogan
Always use slogans
Brand Positioning tool
Repetition
Creativity
Reinforces Brand Image
Encourages Brand Loyalty
Consistency Brand Concept
Brand Link
a la coeur.
bis zum kern.
hasta el corazón
Objectives
• Marketing
Sales, profits, market share, margins
Objectives
• Marketing
Sales, profits, market share, margins
• IMC
Awareness, belief, perceptions, behavior change,
positioning, image  purchase decision
Objectives
• Marketing
Sales, profits, market share, margins
• IMC
Awareness, belief, perceptions, behavior change,
positioning, image  purchase decision
• Media
Broad reach + frequency
Objectives
• Marketing
Sales, profits, market share, margins
• IMC
Awareness, belief, perceptions, behavior change,
positioning, image  purchase decision
• Media
Broad reach + frequency
Promotional Mix
Promotion
Promotional Mix
PR/Publicity
Advertising
Sales
Promotion
Personal
Selling
Promotion
PR/Publicity
Advertising
Sales
Promotion
Personal
Selling
Advertising
• Prime time
• Event
focused
TV
Print
Billboard
• Magazine
• Newspapers
• Outdoor
advertising
che
Soccer specific ads during FIFA World Cup
international coverage
less adverts but with more impact
run competitions to win iKey in
conjunction with another sponsor
(Coca-cola, McDonalds etc)
(cheaper and broader audience than
the super bowl)
Target audience: working people
house parents
families
children
“fat-finger-syndrome” people
Why TV: medium allows expression of
time/place/emotion
base for other mediums
TV Templates
• Pictorial Analogy:
Replacement Version
• Interactive
experiment
• Extreme Consequence
Specific target
follows convention
particular magazines
Why print: large reach
lower cost
can be targeted
Billboard
Why billboard: very cost effective
no customer buy-in
broadest reception
constant exposure (24/7)
Vivistitial
doesn’t interrupt the customer
Model: Pure Affect - Feel
Model: Pure Affect - Feel
Values (Pollay, 1983)
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Practicality
Family
Modern
Unique
Technological
Productivity
Leisure
Youth
Security
Promotion
PR/Publicity
Advertising
Sales
Promotion
Personal
Selling
PR/Publicity
• Internet  Network explosion effect
• Website + special online advertising
• Press Conferences
• News/Press Releases
• Product Placement
• Pixars
• Upcoming movies
• Secondary Sources: Things
• Sponsorships (e.g. health-related)
• Special events (e.g. Soccer World Cup 2014)
Promotion
PR/Publicity
Advertising
Sales
Promotion
Personal
Selling
Sales Promotion
• Consumer-oriented
 Create incentives
• Student discounts
• Packages
• Christmas promotions
 Sampling
Use Consumer Sensitivity to promotional deals
Promotion
PR/Publicity
Advertising
Sales
Promotion
Personal
Selling
Personal Selling
• Direct contact
• Special occasions (exclusive)
• Feedback opportunities
• In store initiative
 communication flexibility
(tailor message)
Model: Low-involvement
CEA : Think  Do  Feel
Brand leveraging
Other
Brands
• Genius Bar
• Celebrities
• Health Experts
People
Promotional
Associations
Things
• Alliances
(Infocus, Benq, etc.)
• Co-branding?
(Apple + Samsung)
Places
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Country (Origin)
Apple Store
Internet
• Events:
Soccer World Cup 2014
• Sponsorships
Time Frame
Product to launch June 2nd 2014
2 weeks of minimal advertising (media buzz)
launch full scale advertising between June
12th & July 13th – FIFA Cup
mix iKey back into accessory advertising after
July 20th
Budget
Campaign: in the last four years Apple has spent
less than 1% of profits on advertising.
In 2012 Apple spent $1billion on advertising.
Plan for iKey: 10% of advertising budget
Television: 50%
during FIFA cup: 25%
normal prime time: 25%
Print Adverts: 25%
Outdoor Ads: 15%
Product Placement: 10%
Budget
Spending: Fixed Costs:
Product:
production (1. salary/employees 2. material 3. facilities)
testing (of product)
packaging
Market Research: (1. Customer surveys 2. focus groups)
Media:
advertising (1. TV 2. billboard 3. print)
IMC tools (PR, Internet etc)
Savings:
brand placement
media buzz
Costs
Research and Development (R&D):
Annual R&D Budget overview
12
10
8
Apple
6
Google
4
Microsoft
2
0
2009
2010
2011
2012
Apple R&D
less than half of competitors budget
at least 40% of budget spent on iPhone
developments
iKey suggestion is 12% of budget
secondary device (other products required)
Future suggestions
• PR expansion
• Gradually decrease reliance on stealth approach
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Sponsorships
Address children
Target elderly
International expansion
• Asia
• Developing Countries
Implementation
Customer Care:
closely monitor customer responses
24/7 phone lines/online communication
provide promotions to core customer areas (e.g.
student receive a half price iKey when they purchase a
iPad valued over $500)
Control: We will come together once a month until one
month before launch (and then once a week for the
following three months) to discuss issues, evaluate and
strategise.
Contro
Thank you for hearing our presentation
Does anybody have a question or comment?