Executive Summary
Apple Inc.’s marvel iPhone has been dominating the smartphones market for a long time. Every time, people behind iPhone strive to make it better in appearance as well as technology. This phone will be focused to appeal a wide range of consumers from different age groups. It is built to cater the needs of all kind of customers be it from a businessman, a student or a retired person. It has all to offer. Apple Inc. has faced some criticism while launching iPhone 6 as it was not up to what people were expecting it to be. To overcome this hurdle iPhone 7 offers immense new characteristics and some major changes in the structure.
Here an elaborate presentation of the comprehensive marketing plan to be executed by Apple Inc. for the launch of iPhone 7. It entails all details regarding the current and future market scenarios as well as a comprehensive evaluation of 4P’s of the market. SWOT analysis are also mentioned. The aims and objective for the following years will also be highlighted.
Marketing Plan for iPhone 7
Apple Inc. is one of the most renowned multinational company, which has America origins. It was initially established in 1976 by two peers named Steve Jobs and Steve Wozniak for sole purpose of selling computer kits that later led to various electronic marvels produced under this banner of Apple Inc.
Current Marketing Situation
Market Description
Amongst these many electronic products of Apple Inc. IPhone is one of the most distinguished in the market of smart phones. ‘Apple has been amongst the top 5 smartphone vendors in the world since 2009. Apple’s market share has varied between 14 to 21 percent over the years. Apple's iPhone sales have consistently increased over the last few years, going from almost 170 million units in 2014 to more than 230 million iPhones sold in 2015 alone’ (Statista 2016).
Product Review
IPhone 7 is set to capture much bigger consumer market than ever before with its mesmerizing new features and the usage of advance technologies to enhance it desirability in the market. With ‘new 4.7-inch and 5.5-inch iPhone models, a larger, improved camera, A10 processor and running IOS 10 IPhone 7 will entail extreme competitive features for its customers’ (Jaffe 2016).
Competitive Review
Samsung takes the lead in holding 20-30% of the total market share of the smart phone being sold worldwide. It is yet the biggest competitor for Apple Inc. when it comes to the selling of smart phones. However, the decline of the market share of Nokia and Rim has given the opportunity to both Apple Inc. and Samsung to grab their customers.
Channels and Logistics Review
The procedure emerges from China, where pallets of iPhones are relocated from factories in anonymous vessels escorted by a safety fleet. The vessels are then transferred to various trucks and distributed through pre-booked airfreight space, also incorporating on old Russian military transports. ‘The expedition terminates in stores where the world’s largest technology company makes continuous amendments based on demand, said people who have worked on Apple’s logistics t’ (Heisler & Ferrari 2013).
SWOT Analysis
Strengths
Since Apple Inc. is one of the leaders of the international smartphones market it means that it has numerous strengths, which can be seen in its products. It has a strong brand image and consumer loyalty, which is supported by a resilient administration and marketing teams. Moreover, IPhone 6 will be reinforced with a rigorous distribution channel. IPhone 7 is backed up with an enormous financial base, which ensure a massive finance for R&D and PR.
Weaknesses
The foremost weakness for IPhone 7 its excessively high price which will make its less competitive as compared to other smart phones in the market. Moreover, since IPhone is only launched yearly it might lose some customers to those companies that are rapidly changing as per demands of the markets. There is not much of a difference in the design or the outlook of IPhone, which may seem monotones to some customers who prefer change.
Opportunities
There is an ever increasing market for telecommunications products in the market as more and more people are converting to smartphones. Apple Inc. has a vast consumer base who are extremely loyal to using IPhones then other smartphones. Apple Inc. has to exploit various new opportunities to upgrade and introduce more high-tech features in IPhone to capture more market.
Threats
It’s a constant market size where they leading companies are fighting to gain the market share. There are extremely less barriers to entry so competitors can enter the smartphones market at any point in time. There is an extreme competition from Android and Windows 8 mobile and since they are upgrading constantly customers might shift to other brands.
Objectives and Issues
First-Year Objectives
First year’s objective will be to exceed the revenue for the previous year. We will focus on rigorous marketing strategy to ensure a wider customer base as compared to iPhone 6.
Second-Year Objectives
Second year’s objectives will entail the policy of cost cutting as well as maintaining the revenues from the sale of iPhone 7 as sales supposedly fall the year after the launch of the product. It will also focus on preparing marketing strategies for the launch of iPhone 7S to maintain sales revenue.
Issues
The major challenges will be faced in the second year of the launch when the sales drop down as most customers tend to buy the new launched iPhone the same year its launched. There is less clientele for the next year as compared to the launching year. Moreover, the technological issues after the launch of iPhone 7 would be faced the launching year as users began to discover glitches in the system if any.
Marketing Strategy
Positioning
Apple Inc. has always believed that the products it produces are not only technologically advanced but also extremely chic. IPhone 7 would be position as a high-tech yet high priced products as compared to the rival products in the market.
Product Strategy
The product would be launched with the same name iPhone. It will entail new and improved features that will include ‘Camera flash LEDs doubled from two to four with warm and cool colors , 3.5mm headphone jack removed Lightning EarPods and a 3.5mm to Lightning headphone adaptor included in the box’ (Kelly , 2016). One of the most prominent will be iPhone 7 being water resistant.
Pricing
IPhone 7 pricing strategy would be based on the value placed by the consumer on the brand name. The new packaging would be much more fancy and extravagant to make it prestigious as well as attractive for the customers. Since iPhone stands for luxury the pricing would be higher than the competitors to make the product a symbol of status and esteem but not too high.
Distribution Strategy
Apple Inc. like always plans to play the exclusivity card when it comes to distribution. Only authorized sellers will be able to sell iPhone 7 and not every common mobile shop. However, keeping up to pace with the iPhone 7 demands, Apple Inc. will also partner with various renowned telecommunication firms in selling of the iPhone 7.
Marketing Communication Strategy
An intensive marketing strategy will be employed before and after the launch of iPhone 7. Before the launch Apple Inc. will focus on various social media channels by circulating a teaser a few weeks before the launch to stir the buzz. Various advertising methods such as billboards in the most crucial locations will be used as well as articles in the leading magazines and journals will be issued. A great hype will be created for the launch event of iPhone 7. After the launch various offers will be provided for the customer during the first few weeks such a weekly give away iPhone 7as well as limited student discount offer.
Marketing Research
Marketing research will be an ongoing phenomenon in order to ensure that any market gap is being looked into and the problems and issues are being sorted out simultaneously. Consumer’s feedback will be conducted through research and implemented for further improvements of the product.
Action Programs
During the first week of August the teaser for iPhone 7 will be launched on the social media websites. From the 1st of September the actual marketing campaign will be started. In mid of October iPhone 7 will be launched in United States of America followed by the worldwide launch the following week. For the following two months’ focus would be on advertising and marketing of iPhone7. Three months into the launch customer feedback would be collected to see if there are any issues in the product and gauge the customer satisfaction.
Budgets
The marketing budget for this launch of iPhone 7 is $1.8 billion for the first year.
Controls
Apple Inc. plans to achieve 82% customer satisfaction rate along with a 3% increase in the total market share for iPhone for the first year of launch.
Citations
Apple iPhone market share 2016 | Statista. (2016). Retrieved September 06, 2016, from http://www.statista.com/statistics/216459/global-market-share-of-apple-iphone/
Heisler, Y., & Ferrari, B. (n.d.). The Logistics Behind Transporting Millions of iPhones from China to Stores Worldwide. Retrieved September 06, 2016, from http://www.supplychain247.com/article/the_logistics_behind_transporting_millions_of_iphones_from_china_to_stores/georgia_tech_supply_chain_and_logistics_institute
Jaffe, J. (2016). The new iPhone 7 will be unveiled on September 7: Here's what to expect. Retrieved September 06, 2016, from http://www.cnet.com/products/apple-iphone-7/
Kelly, G. (2016). Massive iPhone 7 Leak Reveals 15 New Features. Retrieved September 06, 2016, from http://www.forbes.com/sites/gordonkelly/2016/09/05/apple-iphone7-15-new-features/#3c0f12955acd
