Marketing Plan

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THE MARKETING PLAN PROJECT

Kristina Zaporozhetc

Centennial College

Marketing Plan

Table of Contents

1. Marketing program............................................................................................................. 2

Product ................................................................................................................................. 2

Brand positioning................................................................................................................ 2

Price....................................................................................................................................10

Place...................................................................................................................................13

Promotion ..........................................................................................................................15

2. Financial Statements .......................................................................................................16

Consolidated Statements of Operations .......................................................................16

Stock Price ........................................................................................................................17

3. Organization .....................................................................................................................18

Executive profi les .............................................................................................................18

Board of Directors ............................................................................................................19

4. Implementation .................................................................................................................20

Apple's Intergraded Marketing Communications. .......................................................21

References ............................................................................................................................23

Marketing Plan

1. Marketing program

Product Apple products are what Apple Inc. is all about. There are a huge amount of aspects

in creating Apple products. Apple Inc. designs, manufactures, and markets personal

computers, mobile communication devices, media devices personal computers, and

portable digital music players, and sells various related software, services,

peripherals and networking solutions. (Saini, 2014)

Brand positioning Apple’s net sales keep climbing, as the tech giant continues to sell more iPhones

and digital content. But the company faces pressure in the smartphone business, as

Android phones grow increasingly dominant. (Fortune, 2014)

Rank 5

Previous Rank 6

NASDAQ 101,39 (+37%)

Apple Watch, iPad, iPhone & iOS

Apple watch

Apple Watch – personal watch that has the following features:

• New Digital Crown that lets zoom, scroll and select without covering the

screen;

• New Watch OS from the wrist up;

• Home screen lets quickly find favourite apps;

• The custom font is easy to read at arm’s length;

• The force-sensitive Retina display puts more functionality at your fingertip;

• Ability to keep unfailingly accurate time, it can automatically adjust to the local

time when you travel;

• Ability to connect with favorite people;

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• It gives you a more complete picture of your all-day physical activity because

it measures more than just the quantity of your movement; such as the

number of steps person takes;

• It can use what it learns about the way you move to suggest personalized

daily fitness goals and encourage you to achieve them. (Apple, 2014)

iPad

iPad mini with Retina Display- a tablet that has 79-inch Retina display, 2048*1536

resolution and 326 pixels per inch, iOS 8.

iPad Air – a tablet 7,5 millimeters and weighs 1 pound, up to 2 faster Wi-Fi, 2

antennas. (Apple, 2014)

iPhone

iPhone has different genertions from iPhone 1 (2007), iPhone 3G (2008), iPhone

3GS (2009), iPhone 4 (2010), iPhone 4S (2011), iPhone 5 (2012), iPhone 5C/S

(2013), iPhone 6, 6+ (2014).

iPhone 6 – a 4,7 inches phone with a smooth metal surface that seamlessly meets

the new Retina HD display, 6,9mm, 1334*759 resolution, hugely powerful, iSight

camea has a new sensor with Focus Pixels and new video features, time-lapse

video mode, 3x faster spees Wi-Fi, Touch ID technology lets you securely access

the iPhone with the fingerprint. (Apple, 2014)

iOS

iOS – the world’s most advanced operating system. Its easy-to-use interface,

amazing features, and rock-solid stability are built into every iPhone, iPad, and iPod

touch. And it continues to get better with every iOS update. (Apple, 2014)

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Mac

MacBook Pro with Retina display

A stunning high-resolution display, an amazing thin and light design, and the latest

technology to power through the most demanding projects. (Apple, 2014)

MacBook Air

All day battery life, fourth generation Intel Core processors with faster graphics,

802.11ac Wi-Fi and flash storage that is up to 45 percent faster than the previous

generation. (Apple, 2014)

iMac

The all-new iMac packs high-performance processors into an aluminum and glass

enclosure with up to 40 percent less volume than its predecessor and an edge that

measures just 5 mm thin. (Apple, 2014)

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Mac Pro

Designed around a revolutionary unified thermal core, the Mac Pro introduces a

completely new pro desktop architecture and design that is optimized for

performance inside and out. (Apple, 2014)

MacBook Pro

MacBook Pro features the latest dual-core and quad-core processors, and faster

graphics to deliver the perfect combination of pro performance and extreme

portability. And whether you’re using the 13-inch or 15-inch MacBook Pro, you’re

guaranteed to get battery life that lasts as long your typical work day (or longer).

(Apple, 2014)

Mac mini

With its sleek aluminum design, a removable bottom panel for easy access to

memory, and a space-saving built-in power supply, Mac mini is pretty incredible. It

features high-performance graphics that make it up to two times faster than before.

And it’s the most energy-efficient desktop computer ever, using less than 10 watts of

power when idle. (Apple, 2014)

Displays

The 27-inch Apple LED Cinema Display supersizes your view with an incredible

2560-by-1440 resolution. The LED Cinema Display features a universal MagSafe

connector that charges your notebook, a Mini DisplayPort cable for easy

connectivity, and three USB 2.0 ports. There’s also a built-in iSight camera,

microphone, and 49-watt speaker system for a true desktop experience. (Apple,

2014)

AirPort Extreme

Featuring 802.11ac Wi-Fi for up to three times faster performance. (Apple, 2014)

AirPort Time Capsule

Featuring 802.11ac Wi-Fi for up to three times faster performance. (Apple, 2014)

AirPort Express

With simultaneous dual band 802.11n, the affordable AirPort Express is powerful

enough to run a home Wi-Fi network. Connect up to 10 users to share your wireless

network. Print documents, photos, and more from any room in the house to one

central printer. And stream your iTunes music through your stereo or powered

speakers using AirPlay. (Apple, 2014)

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Magic Trackpad

The same smooth, all-glass Multi-Touch trackpad found on every Mac notebook is

available for your Mac desktop. So you can bring the full gesture experience to your

iMac, Mac mini, or Mac Pro. (Apple, 2014)

Magic Mouse

The same Multi-Touch technology first introduced on iPhone comes to the mouse.

Click anywhere, scroll in any direction, and swipe through images on its smooth,

seamless top shell. Magic Mouse works wirelessly using Bluetooth wireless

technology, so you don’t have to worry about cables or adapters cluttering your

workspace. And built-in software lets you configure it any way you want. (Apple,

2014)

Apple Keyboard

The incredibly thin Apple Wireless Keyboard sits on your desk surrounded by

nothing but glorious space. It’s cable-free, so you’re free to type wherever you like.

And it only uses two AA batteries. The Apple Wireless Keyboard come standard with

iMac, but it’s perfect for any Mac with Bluetooth wireless technology. If you’re a

traditionalist, choose the wired Apple Keyboard with Numeric Keypad. (Apple, 2014)

Apple Battery Charger

The first battery charger designed by Apple, featuring a power-efficient charger and

six high-performance AA NiHM batteries. (Apple, 2014)

Software

OS X

Built on a rock-solid UNIX foundation, OS X is engineered to take full advantage of

the technologies in every new Mac. And to deliver the most intuitive and integrated

computer experience. (Apple, 2014)

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iLife

Do more with photos, movies, and music than you ever thought possible. (Apple,

2014)

iWork

iWork is the easiest way to create great-looking documents, spreadsheets, and

presentations. Writing and page layout are easy using Pages. Numbers gives you

simple ways to make sense of your data. Cinematic animations, transitions, and

effects in Keynote will keep your audience captivated. And iWork is compatible with

Microsoft Office, so sharing your work is even easier. (Apple, 2014)

Logic Pro X

Logic Pro X, the most advanced version of Logic Pro to date, with a new interface

designed for pros, powerful new creative tools for musicians and an expanded

collection of instruments and effects. (Apple, 2014)

Final Cut Pro X

A revolutionary new version of the world’s most popular Pro video editing software

which completely reinvents video editing. (Apple, 2014)

Aperture

With more than 200 new features and enhancements, Aperture is the perfect choice

if you're ready to take your photography to the next level. Migrate your photos from

iPhoto to Aperture seamlessly. Manage large photo libraries with ease. Use

powerful new tools to refine your images. And present your work like a pro with

beautiful prints, hardcover books, websites, and stunning multimedia slideshows.

(Apple, 2014)

iPod & iTunes.

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Apple TV

Featuring 1080p programming including iTunes movies and TV shows, Netflix,

Vimeo, photos and more in HD. (Apple, 2014)

iPod nano

The thinnest iPod ever featuring a 2.5-inch Multi-Touch display; convenient

navigation buttons; built-in Bluetooth for wireless listening; and the iPod nano comes in seven gorgeous colors. (Apple, 2014) iPod shuffle

Crafted from a single piece of aluminium and polished to a beautiful shine, iPod

shuffle feels solid, sleek and durable. Its 2GB of storage capacity lets you take

hundreds of songs with you anywhere. Big, clickable buttons give you an easy way

to play your music. Press the new VoiceOver button to hear the song title, playlist

name or battery status. And sync different playlists and Genius mixes for just the

right mood. Clip it on and rock out. (Apple, 2014)

iPod touch

Featuring a brilliant 4-inch Retina display; a 5-megapixel iSight camera with 1080p

HD video recording; Apple's A5 chip; Siri, the intelligent assistant; and iOS 7, the

world's most advanced mobile operating system.

iTunes

A free application for your Mac or PC, iTunes organizes and plays your digital music

and video on your computer. It keeps all your content in sync. And it’s a store on

your computer, iPod touch, iPhone, and iPad, that has everything you need to be

entertained. Anywhere. Anytime. (Apple, 2014)

iCloud & Apple Pay

iCloud

A breakthrough set of free new cloud services that work seamlessly with

applications on your iPhone®, iPad®, iPod touch®, Mac® or PC to automatically

and wirelessly store your content in iCloud and automatically and wirelessly push it

to all your devices. (Apple, 2014)

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Apple Pay

A new category of service that will transform mobile payments with an easy, secure

and private way to pay. (Apple, 2014)

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Price Apple CEO Tim Cook: “We never had an objective to sell a low-cost phone. Our

primary objective is to sell a great phone and provide a great experience, and we

figured out a way to do it at a lower cost.” (Nair, 2014)

Cook’s predecessor, Steve Jobs, suggested the strategy for Apple that is consists of

four components:

1. Offer a small number of products

2. Focus on the high end

3. Give priority to profits over market share

4. Create a halo effect that makes people starve for new Apple products. (Nair,

2014)

Graph 1 - Smartphone Average Selling Price (ASP) by Market Type, USD ($), 2012 - 2017

Product Differentiation.

Despite high competition, Apple has succeeded in creating demand for its products,

giving the company power over prices through product differentiation, innovative

advertising, ensured brand loyalty, and hype around the launch of new products.

Apple uses a retail strategy called “minimum advertised price” (or MAP). Minimum

advertised pricing policies prohibit resellers or dealers from advertising a

manufacturer’s products below a certain minimum price.

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Apple maintains the popularity of its high-priced products by only offering retailers

such as Wal-Mart or Best Buy a marginal wholesale discount. This small percentage

in savings isn’t enough of a profit margin for retailers to offer big discounts on

Apple’s products, which means customers end up paying a price close to the

manufacturer suggested retail price (or MSRP). However, a retailer could give up

this small profit margin and offer products at a discount to attract more customers.

Apple prevents this scenario by offering monetary incenti ves to retailers to sell

goods at the MAPs fixed by the company.

Premium Prices.

Jobs’ vision for Apple was always to create a premier product and charge a

premium price. Apple’s cheapest products are usually priced in the mid range, but

they ensure a high-quality user experience with their features.

There are prices for Apple’s products in table 1. There is no doubt, Apple’s products

are expensive, but it is worth. High quality and modern technology. That is Apple.

Table 1 – Price for Apple’s product by 2014 year.

Product Price

Apple Watch Coming early 2015

iPad From $499

iPhone From $649

AirPort Express $99

AirPort Extreme $199

Apple Keyboard $69

Displays

iMac From $1099

MacBook Air From $899

MacBook Pro From $1099

MacBook Pro with Retina display From $1299

Mac Mini $499

Mac Pro From $2999

Magic Mouse $69

Airport Time Capsule From $299

Magic Trackpad $69

Apple Battery Charger $29

OS X From $19,99

Apple TV $99

iPod nano $149

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iPod classic From $249

iPod shuffle $49

iPod touch From $199

iTunes Songs costs 69 cents, 99 cents or

$1.29.

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Place Apple, Inc Headquarters are located at is located at 1 Infinite Loop, Cupertino,

California.

Apple service providers are certified technicians, who complete regular Apple

training and assessments, and offer repair services, and exclusive access to

genuine Apple parts.

International Apple Stores

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While substantially all of the Company’s hardware products are currently

manufactured by outsourcing partners that are located primarily in Asia, the

Company also performs final assembly of certain products at its manufacturing

facility in Ireland. The supply and manufacture of a number of components is

performed by sole- sourced outsourcing partners in the U.S., Asia and Europe.

Margins on sales of the Company’s products in foreign countries, and on sales of

products that include components obtained from foreign suppliers, can be adversely

affected by foreign currency exchange rate fluctuations and by international trade

regulations, including tariffs and antidumping penalties. Information regarding

concentration in the available sources of supply of materials and products is set

forth in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial

Statements in Note 10, “Commitments and Contingencies.”

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Promotion

Apple, Inc offers special discounts on refurbished MacIntosh computers, iPod

Nanos, and the 8GB iPod Touch. In each case a 1 year warranty is included on the

all products.

Apple, Inc authorized Training Centers are located throughout the U.S. each

provides instruction in Mac systems, Mac OS X, and Apple’s professional

applications. A wide range of certification exams and courses offer innovative

learning opportunities for IT and creative professionals, educators, and service

technicians—delivered exclusively by Apple Certified Trainers.

The Apple Consultants Network website provides a search tool allowing visitors to

locate nearby certified Mac product consultants in the U.S, Canada, and a number

of international locations.

The online Apple Store offers free shipping for orders over $50.

The online Apple store offers iTunes gift cards.

Apple provides a $100 rebate when you purchase a Mac or specific printers from the

online store.

Apple has packaged back-to-school offers, including some aimed at college

students.

Apple has the recycling program. For example, you can bring your old iPod to an

Apple Retail Store and receive a 10 percent discount on the purchase of a new

iPod. (Friesner, 2014)

Example of past offers in Apple.

Get a $100 Apple Store Gift Card when you buy a Mac for college from Apple by

September 9, 2014. Or a $50 gift card when you buy an iPad or iPhone.

Get a $100 gift card for apps when you buy a Mac for college from an Apple

Authorized Campus Store by September 9, 2014. Or a $50 gift card when you buy

an iPad.

Buy Apple TV by March 5, 2014, and get a $25 iTunes Gift Card. See the offer and

terms and conditions. (Apple, 2014)

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2. Financial Statements

Consolidated Statements of Operations

(In millions, except number of shares, which are reflected in thousands and per share amounts)

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Stock Price

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3. Organization

Executive profiles

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Board of Directors Arthur D. Levinson, Ph. D. Chairman of the Board, Apple Chairman and former CEO

Genentech

Tim Cook CEO Apple

Millard Drexler Chairman and CEO J. Crew

Albert Gore Jr. Former Vice President of the United States

Robert A. Iger Chairman and CEO The Walt Disney Company

Andrea Jung President and CEO Grameen America, Inc.

Ronald D. Sugar, Ph. D. Former Chairman and CEO Northrop Grumman

Susan L. Wagner Co-founder and Director BlackRock

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4. Implementation

The implementation plan shows how a company will turn an Intergraded Marketing

Communications (IMC) plan into results. To implement an effective IMC plan successfully

managers must first establish detailed information on the 4P’s (Product, Price, Place and

Promotion) – the elements of the marketing mix. This will able Apple to identify the most

appropriate and effective method for communicating and building strong customer

relationship and long-term brand and shareholder value.

The Company believes that sales of its innovative and differentiated products are

enhanced by knowledgeable salespersons who can convey the value of the hardware

and software integration, and demonstrate the unique solutions that are available on its

products. The Company further believes providing direct contact with its targeted

customers is an effective way to demonstrate the advantages of its products over those

of its competitors and providing a high-quality sales and after-sales support experience is

critical to attracting new and retaining existing customers. (United States Securities and

Exchange Commission. Washington, D.C. 20549, 2014)

To ensure a high-quality buying experience for its products in which service and

education are emphasized, the Company continues to expand and improve its

distribution capabilities by expanding the number of its own retail stores worldwide. The

Company’s retail stores are typically located at high-traffic locations in quality shopping

malls and urban shopping districts. By operating its own stores and locating them in

desirable high-traffic locations the Company is better positioned to ensure a high quality

customer buying experience and attract new customers. The stores are designed to

simplify and enhance the presentation and marketing of the Company’s products and

related solutions. The retail stores employ experienced and knowledgeable personnel

who provide product advice, service and training and offer a wide selection of third -party

hardware, software, and other accessories and peripherals that complement the

Company’s products.

The Company is committed to delivering solutions to help educators teach and students

learn. The Company believes effective integration of technology into classroom

instruction can result in higher levels of student achievement and has designed a range

of products, services and programs to address the needs of education customers. The

Company also supports mobile learning and real-time distribution of, and access to,

education related materials through iTunes U®, a platform that allows students and

teachers to share and distribute educational media online. The Company sells its

products to the education market through its direct sales force, select third-party resellers

and its online and retail stores.

No single customer accounted for more than 10% of net sales in 2013, 2012 or 2011.

(United States Securities and Exchange Commission. Washington, D.C. 20549, 2014)

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Apple's Intergraded Marketing Communications. Online Marketing.

This is an area in which Apple is highly effective. With a simple Google search, a mass

amount of hits come back linking to Apple’s website, Apple news, and so much more.

The company’s website, in and of itself, is a huge marketing tool and resource for Apple.

It relays information to customers about the latest products, video tutorials on how to use

your new gadgets, customer service contact information, etc. This is a primary spot for

customers to read up on a product before they buy it, ask questions, and even schedule

appointments to meet with the Apple “geniuses” in the store. Largely, Apple’s online

marketing strategies are the quickest ways for customers to learn about products before

the information even hit television and print advertisements. But that said, anyone who

has access to a television has probably seen the company’s sleek commercials.

Television Brand Integration.

It means that if you watch the latest movie, there is no doubt that you will see an iPhone

or MacBook Air there. For example, a movie ‘Wolf from Wall Street”. This tactic is a great

way to expose Apple products and increase the brand’s popularity. Since i t was part of

the storyline, it was most likely an unpaid product mention, but the mention alone is sure

to create a desire for the product among the show’s viewers since it is unofficially being

backed by a major celebrity.

Buzz marketing.

Additionally, buzz marketing is a tactic companies use to advertise products. It is often

done by choosing a celebrity endorser to “set the trend.” Coincidentally, Zooey

Deschanel took on this role for Apple to advertise the “Siri” feature on the new iPhone. As

a popular singer-songwriter and actress, her status could definitely do the job of

persuading an audience in favor of a particular product.

Infomercials.

It is another great marketing tool. Frequently, when the company releases a new product or make updates to software, it also releases videos to promote and explain

the changes. Song placements.

As far as song placements, the musicians featured in Apple marketing strategies may

actually benefit more from the partnership than if Apple was to be mentioned in a song.

But nonetheless, Apple benefits from such musical partnerships by choosing songs that

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display a hip and trendy image to consumers. This is well planned since Apple always

strives to be ahead of the times. Many underground bands have made it big as a result of

their exposure with Apple, especially in the company’s earlier iTunes commercials.

(Price, 2013)

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References

1. Apple. (2014). From http://www.apple.com/recycling/

2. Apple. (2014). Product Images & Info. From Apple:

https://www.apple.com/pr/products/

3. Fortune. (2014, Oct 10). Apple - Fortune 500 2014. From Fortune:

http://fortune.com/fortune500/apple-inc-5/

4. Friesner, T. (2014). Apple Marketing Mix. From Marketing Teacher:

http://www.marketingteacher.com/apple-marketing-mix/

5. Nair, S. (2014, January 28). Apple's premium pricing startegy and product

differentiation. From Yahoo Finance: http://finance.yahoo.com/news/apple-

premium-pricing-strategy-product-191247308.html

6. Price, A. (2013). Insight 10: Integrated Marketing Communication . From

http://abigailcomm306.wordpress.com/2013/06/12/insight-10-integrated-

marketing-communication/

7. Saini, J. (2014). Products. From Apple Inc. Case Study:

http://appleinccasestudy.weebly.com/apple-products.html

8. United States Securities and Exchange Commission. Washington, D.C. 20549. (2014).

From Apple:

http://files.shareholder.com/downloads/AAPL/3525201213x0x701402/A406AD58 -

6BDE-4190-96A1-4CC2D0D67986/AAPL_FY13_10K_10.30.13.pdf