Iphone Marketing Plan

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Term Project Prepared By:

Amy Farina
Meng-Chun Hung
Sachit Bhjange
George Vit
Dave Pirek

Table of Contents

Page
Introduction………………………………………………………………………………………..…………3

A. Purpose (Sach)
B. Scope (Dave/Amy)
C. Organization of Report (Amy)

Political Environment (George)…………………………………………………………………..………… 4

Legal Environment (Amy)………………………………………………………………………..………… 5

Economic Environment (Dave)………………………………………………………….………..………… 8

Technological Environment (Sach).…………………………………………….………..………..………… 9

Socio-Cultural Environment (Amy)……………..……………………………………………………..……10

Cannibalization and Creative Destruction Issues (Amy)……………………………………………………12

Geography, Climate and Natural Resources Environment (Meng)……………………….………..…………15

Infrastructure Environment (George)…………………………..…………………….…..………..………… 17

Competitive Environment (Meng)..………..…………………..…………………….…..………..………… 18

Porter’s Five Forces Effecting Industry (George)……………………………………………………………20

Global Marketing Mix…...……………………………………..…………………….…..………..………… 23

A. Product Strategy (Meng)
B. Pricing Strategy (Amy)
C. Promotion Strategy (Dave)
D. Distribution Strategy (Sach)

Conclusions and Recommendations (Amy[ph: 1-4];George[ph: 5])….………………..………..………… 32

Appendix………………………………………………………………………………………..…………33

Introduction

A. Purpose

The report is designed to comprehensively document the efforts to market Apple’s iPhone. It will analyze the international marketing environments, Political, Legal, Economic, Technological, Socio-Cultural, Geographical, Infrastructure, and Competitive. The global market mix will also be examined with regards to Product, Pricing, Promotion, and Distribution Strategies.

B. Scope

This report covers comprehensive research necessary for successful product launch of the Apples’ iPhone. In order to simplify the process, the report identifies two major markets to which to focus, that of the United States and the European Union consisting of France, the UK and Germany. Briefly the idea of entering the Chinese market was reviewed, however there were negative factors affecting this decision. Some of those negative issues were: the Chinese consumer preferences with cell phones; Apple has not launched iTunes in China and has no plans to; there are no Apple Stores in China; and the iPhone has a closed architecture limiting Chinese consumer expectation of using 3rd party software on their devices. There are many similarities between the US market and the EU market; however, there are also considerable differences. The differences as well as the marketing approach to these differences is discussed with a view to the economy, consumer preferences, legal ramifications and concerns, along with recommendations for the various elements of the marketing mix.

C. Organization of Report

Organization of the Report was broken down into sections according the various environments that effect global marketing strategies. The first four sections, often referred to as PEST – Political (and Legal), Economic, Socio-Cultural and Technological, provide a framework to evaluate the opportunities or threats that Apple may face and can loosely be said to be outside their totally control. Normally a PEST analysis is an in depth study of these areas and should be done prior to entry and per country or region as a marketing/business strategy tool. They are covered here in the context of how they impact global marketing planning of Apple’s iPhone and not as they impact the company and strategic planning of other products, the business and product development cycle or research.

The Political environment, reviewed in the next section, discusses the concerns for the two target markets we will be focusing on, the US and the EU (France, Germany, UK). The Legal environment reviewed in section two focuses on IP and piracy issues along with current and...
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