Marketing Plan for Ipad - Case Study Example

Table of Contents Contents Page Cover page 1 Table of contents 2 1.1 Executive summary 3 1.2 Mission statement 3 1.3 Vision 3 1.4 Objectives 1.5 Core values 4 2.0 Situational analysis 4 3.0 Marketing strategy 6 4.0 Implementation and control strategy 9 Reference List 14 1.1 Executive summary In this marketing plan of Ipad Company which is to be launched late this year, the first part gives the mission statement, vision, objectives and core values of the company; they are the blue print and also the guiding principles to be followed during the implementation of this plan. Second part deals with the SWOT analysis of the Ipad product, the situational analysis strength and weaknesses of the product, opportunities to be exploited and threats to be avoided in order for the product to stay in the market. It also gives the competitors’ analysis of the product. The third section discusses the marketing strategies to be used in order for the product to capture a substantial market share, advertising strategies, and means and medium to be used. Also discussed in this section are the price skimming and the marketing mix. Lastly is the outlined plan and the schedule of each activity, when they should be done and how they should be done and by who, controlled measures to be used during the implementation process so that we do not deviate from the plan. In conclusion, the illustrative tables and graphs are given to show the budget, breakeven calculation and the projected sales monthly after launch of the product. 1.2 Mission statement The mission statement for Ipad is to be the world class leader in producing computer tablets for audio and visual media such which meets customer needs and preferences. 1.3 Vision World class leader in technological innovation 1.4 Objective The main objective of this marketing plan is to meet sales target of over 750,000 units of Ipad within the first year of the launch and reach the breakeven point within the first quarter of the second year in the market while maintaining customer satisfaction. 1.5 Core values Integrity Quality product Customer satisfaction Accountability and Transparency 2.0 Situational analysis (SWOT Analysis) 2.1 Strength The Ipad computer tablet is one of the most lucrative and innovative product which has ever been brought into both computer and mobile market by Ipad company. It is the most easily portable smart phones in the market and also laptop and net book computer sizes. One of the most attractive features of Ipad is that it is in a position of running its own application and also those applications developed for smart phones without any modification done on it. Ipad is also controlled by what is known as multi-touch display which is also used by iPhones and other smart phones. Unlike old computer tablets which rely majorly on pressure triggered stylus for internet connection, Ipad uses 3G mobile and Wi-Fi which is of high technology. Generally, Ipad is of superior features compared to old computer tablets which are in market. 2.2 Weaknesses Although Ipad works on the same operating system as iPod and iPhone its version is older compared with the current Iphone versions in the market and this makes it less competitive in the phone market. Another weakness which can also double as strength is that it can only run those programs which are approved by Apple online marketing store hence limiting users only to specific programs produced by Apple Company (Erick, 2010). But this also can help in cubing online piracy of product and software hence a hidden strength. 2.3 Opportunities Changes in technology have transformed the way businesses are being managed. The increase demand of high end technology accessories have created market for Ipad which needs to be exploited. Research by Ma Huimin and Antonio (2011) shows that the rate at which the demand for Smartphone’s, computer items, and Ipads is growing is higher than the rate at which they are being produced. Education sectors are moving from classroom to online tutorial, business are nowadays being managed online, the governments have changed from manual government to e-government hence endless need for Ipad product. As a company, we intend to target education institutions, government institution like parastatals and business entities with our product. 2.4 Threats The struggle for market share in the technology industry has increased with more companies entering into the market; this has lead to tremendous change in technology and the product which are being offered, as a result the product life cycle as reduced with a product life cycle not lasting more than five years in the market. This trend has exerted a lot of pressures on the company so that they can be more innovative and add more features to Ipad in order for the product to remain in the market. Otherwise, if they fail to do so, the Ipad will become obsolete in the market. Pressure has also been high on this product as most competitors lower price in order to penetrate into the market; this has downward trends in pricing of electronic and computer accessories hence threat to the Ipad. 3.0 Marketing strategy The marketing strategy to be used will aim at creating product awareness by introducing it to customers. The customers will be educated on the use of the product, its benefits over the competing product and some of its short comings. 3.1 Market segmentation In order to market Ipad, the segmentation is going to be geographical, age of the client and income of the potential customers. On geographical segmentation, the market will be divided into regions and the focus will be into four regions classified as America, Asian countries, Africa and Europe countries. In all these regions, the company will set up branches which will deal with product distribution, market research and identification of opportunities for the product. The main aim of geographical segmentation is to expand the market from North America to other parts of the world. Population distribution will be the major determinant in selecting these regions. Segmentation by Age: The target of Ipad will be based on medium aged and youths. The medium aged will target majorly business community where we will produce a product which will be business utility product and the Ipad for youths will be majorly entertainment oriented product and also young professionals will be targeted. Income segmentation: The target here will be high and medium income level as the product will be of high status commodity. Lower income earners will not be targeted. 3.2 Marketing mix a. Promotion: The promotion methods to be used include advertisement, public relation, sales promotion, giving out sales catalogs and bronchus, online marketing. b. Advertisement: Ipad will be advertised in major daily newspapers which will help in creating awareness about the product; this will target literate and working class of young professionals who in most cases spend most of their time reading newspaper. Television advertisement during prime hour will also help in boosting awareness of the Ipad. The massage here will be about the features of Ipad. Major international radio channels will also be used in advertising Ipad. Apart from media advertisement, we will use social media like facebook, twitter, and Google search to reach young population. The research by Kottler and Garry (2009) state that most multimillion companies have changed from using old media to current media of advertisement which are in a position to reach large population within a short time. c. Public relation: This will include corporate social responsibility where the Apple Company will be assisting the less fortunate children in the society hence creating good relationship with the potential customers. This will also be done through giving out one year warranty to buyers of our product. d. Sales Promotion: This will be through giving free software and after sale services will be employed to attract customers and potential buyers so as to boost our sales. Road shows will be done in major streets to educate people on the product and for the public to see the sample of the Ipad product. e. Product: Some of the product of Ipad multi-touch tablets multimedia formats includes eBooks, photos, spreadsheets, surfing internet, video games, word processing documents, magazines and others. These various products will be integrated together and any person having Ipad can be able to enjoy them all at ago. This will give us competitive advantage over our competitors as the Ipad will be more superior in terms of product range. f. Place: The product will be readily available in different places including online stores or direct channels form the manufacturers and retailers where customers can get the product. Distribution will be done through distribution channels whereby the company will use channels like chain stores, retail outlets and online distribution channels. This will allow easy accessibility of the product to customers. g. Price: The Company will deploy various pricing strategy in reaching the target audience and also to counteract its competitors. Some of the pricing strategies include; Price skimming: Due to fashion and technological changes, customers are not sensitive to price more so in the early stages of the product life cycle. In this case, the company will charge high price to target innovators and early adapters. By charging high prices, the customers will also be convinced that the Ipad product is of superior quality compared to other competing product in the market. The advantage of using price skimming as a strategy is because of quick recovery of the initial cost invested in the product early stages like the cost of research, development, and advertisement. Secondly, when the initial prices of the product are set high and the demand is high, the business will be lucrative and in turn attract many players in the same market. At this point, the Ipad Company will be in a position to lower the price slightly to keep off the competitors hence maintaining market lead. Thirdly, using price skimming will help the company to automatically segment market according to the income and at the same time price can be lowered to fit other market segment as the product life cycle is moving towards maturity when demand decreases. By lowering prices, new markets are discovered which translates into sales increase hence high profits to the Apple Company. The demerit of using price skimming is that it attracts competitors into the market and can only work best when the price is inelastic. 3.3 Competitors Analysis There are several competitors firms of the Ipad tablets which are struggling to gain market share hence market leadership. They include Joo Joo with a four GB memory and a twelve inches, Hewlet Packard, Archos seven and Dell just to mention a few. All these companies are potential competitors and their presence in the market affect our market penetration hence must be given full attention and their activities closely monitored and appropriate respond taken. 4.0 Implementation strategy Ipad product will be introduced in market on December 3rd where sales promotion will be launched by the chief executive officer. The total cost of the sales promotion will be $350,000. The main objective of this promotion first is to create awareness of the product to our potential customers, second is to educate the channel distributors and other agents on the product; samples will be given out to some celebrities who will accompany the promotion caravans to attract other potential buyers. The advantages and disadvantages of the product will be explained during the promotion period. In January, the Ipad will embark on Television and Radio promotions in which the product will be advertised during the prime time; that is during news hours and other popular show times. This promotion will go up to mid March 2013. In April, we will embark on the advertisement using the bill boards and newspaper; the bill board will be erected in major road junction running for two months. While in June to August, the company will use social networks in advertisement campaign so as to reach young population. The company will use blogs, facebooks, twitters and others like emails. This will boost awareness thus increasing market penetration. September the company will roll out social corporate responsibilities to where we will give sponsorship to less fortune student to colleges. This will be the first public relationship strategies to be rolled out to help in marketing the product. By the end of the first trading period, Ipad projects sales revenue to be $90 million, the whole sale price is given at $ 120a unit while cost per unit of Ipad will be $90. The total units sold or sales volume is estimated to be 750,000. The fixed cost is not included in the cost per unit. The total loss for the first year is estimated to be $ 5million. From the calculation of the breakeven analysis, it is clear that the breakeven point will be reached after selling 1,167,500 units. This target will be attainable early in the second trading year of the product ceteris paribus. 4.1 Control measures The chief marketing officer of the company will be given the sole responsibility of implementing this marketing plan. Measures will be taken on the customer satisfaction by controlling the quality of the product getting into the market. This will ensure only product of high quality and recommended standard are sold to customers. The marketing department will work closely with the production team whereby the over production and under production will be properly managed since excess supply or undersupply will affect the market equilibrium. The marketing department will be charged with the market research where they will assist in gathering market information concerning customer taste and preferences. The department will also assist in giving information on the market trends, new technologies entering the market and the new opportunities available to be exploited. Quick response measures will be implemented to counteract competitors’ move in the market so that the company can maintain its market share. The level of implementation will be reviewed after each and every three months, the variation in the planned budget and actual budget will be noted and appropriate measures will be taken to address the variation. Marketing budget Items cost in US dollars personnel and administration 100,000 Television Adverts 15,000 Newspaper Adverts 8,000 Bill board 30,000 Bronchus and Catalogue 9,000 Online Marketing 7,500 Sales promotion Gifts 40,000 CSR 150,000 Total 359,500 Table 1.1 Fig 1.0 Projected sales revenue graphically presented Fig. 1.1 Table 1.2 Referencing Lists Eric, L. (2010) Apple iPad Versus Netbook: Features Compared. PC Advisor, United Kingdom, Ma, H, and Jose, A.H., (2011) School of Management, Wuhan University of Technology, Wuhan, P.R.China Philip, K. and Gary, A. (2009) Principles of Marketing Pearson Education Inc Prentice Hall, Read More