Course: Planning Marketing Programs
Group Project: iPhone 5s, September 2014
Table of Contents:
1. Executive Summary ……………………………………………… 2
2. Situational Analysis ……………………………………………… 3
3. SWOT Analysis …………………………………………………...7
4. Objectives ……………………………………………… ………...8
5. Strategy (segmentation, targeting and positioning) ……………… 9
6. Action Program (the operational marketing plan itself for the period under review) ……………………………………………… 10
7. Controls ……………………………………………… 11
1) Excusive summary:
iPhone targets consumers who need to store any kind of
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Given the rate at which smartphone are penetrating the market and component prices are declining by 2015 there will be, at least, 2 billion smart mobile devices in use globally. (Kenney, 2011).
Smartphone sales will be driven by two main factors, BI Intelligence says:
Replacement of nearly 5 billion "dumb phones" with smartphones (smartphones currently make up only 10% of handsets worldwide)
Price declines. The average price of a smartphone will drop from about $315 last year to $200 over the next several years
This will obviously have a huge impact on the mobile Internet economy, which is already exploding from the growth of smartphone penetration in the past few years.
Some other highlights from the report:
Smartphone unit sales will grow at nearly a 30% compound annual growth rate over the next five years
Smartphones will represent about two-thirds of all mobile phone purchases by 2016,
Smartphones will be a $320 billion market by 2016.
Competition Situation
At the time Apple recognized the need for a handheld mobile device the market players were a few and mainly business users. This explains the strong market share RIM had. Palm on its hand also was also somewhat popular but having limitations in terms of usability and software, deprived the brand from gaining significant position. Most of the devices present at the market later were more
As noted in the case, “the growth in the apps market is closely tied to the growth in the market for mobile devices, both smartphones and tablet computers that are connected to cell phone networks.” Revenues from mobile apps have been on the rise and forecasts indicate a continual increase. Forecasts were made for revenue from mobile
Joseph Palenchar (2013) noted that “the old days saw BlackBerry’s market share in global smartphone shipments peak in 2009 at 20% and fall to 5% in 2012, marking the company’s lowest level since 2003.” (para. 3) “Increase the chances that BlackBerry can regain some of its lost market share during the make-or-break year of 2013” (para. 9) Revenue is declining because the market is becoming smaller. With Apple, Samsung’s products are growing deeply in customers’ impression, BlackBerry is standing in the behind position compare with those two brands. BlackBerry is not enough strong to attract those Apple and Samsung’s customers to choose its products even they produce the new products.
The smart phone has become more than that of just an accessory only to be seen among the rich and wealthy it has become a social standard were ones personality can be understood by one’s phone. Now a day it appears as though almost every one owns a mobile phone and the teachers can tell. The smart phone can access the web from almost any location and there special phone that are used only for social media. Speaking of social media the ability for one to communicate with a far away relative was never more of a dream until recently. Well it was just in the late 90s when phone were the size of dinosaurs, extremely expensive and the only thing they could do was call. Now they are smaller than the computers back, ten times stronger and at a quarter of their size. It is safe to say that phones are going to be as common as
In the article “Apple Forecasts First Sales Drop Since 2003 on iPhone Slowdown” by Adam Satariano he discusses many factors contributing to Apple’s first sales decline in over 13 years and what steps they plan to take to recover. Apple’s revenue was expected to produce $55.5 billion this quarter but the company believes it will be $50-$53 billion dollars (Satariano, “Apple Forecast”). This decreased is believed to show signs of saturation in the smart phone market. Along with iPhones, Apple also had a pause in its iPad and Mac sales last quarter (Satariano, “Apple Forecast”). Apple is still overwhelmingly profitable but they cannot rely on the adoption of smart phones to carry the iPhone sales anymore.
Worldwide demand for Smartphones was robust as a result of the availability of high-speed wireless networks, mobile access to corporate intranets, and the broad acceptance of e-mail and text messaging for both business and personal communications. The Smartphone industry was projected to grow from 10 percent of the global mobile market to 30 percent over five years. The growth is clear when considering in 2007 that the US enjoyed a 100% increase in user numbers with a 53% increase worldwide. Sales of units are predicted to be 500 million for 2008 and 2009 globally.
In the most recent market analysis from the NPD Group, iOS has assumed control of 43 percent of smartphone sales. The analysis further shows the market for basic phones has dwindled and that the cell phone market is fast becoming a smartphone market. The demand for anything other than smartphones is evaporating. This push toward high-end smartphones is helping not only Apple, but also Google and Samsung, which are benefiting from the desire of consumers to carry these all-powerful ‘mini’ computers in their pockets. With the connectivity these smartphones present, users are never left ‘out of
The U.S. cell phone industry quietly launched in 1983 as an exclusive product targeting affluent professionals with $3,995 of disposable income to spend on a cell phone (Wolpin, 2014). While sales exceeded the industry’s initial projections due to an unanticipated ‘cool factor’ associated with having a cell phone, sales were pedestrian due to a limited number of cell phone providers selling the service in major metropolitan areas. Therefore, the industry slowly grew to 340,000 subscribers by 1985 (CTIA, 2016). In 1992, with the advent of 2 year service contracts, cell phone service providers began selling cell phones for a penny to accelerate adoption of the technology. Subsequently, by the end of 1995, the number of cell phone subscribers
Apple created more headline news by releasing the iPhone 5 on September 21, 2012. The iPhone 5 wows customers with its new sleek design, 8 mega pixel “iSight” camera, 4-inch Retina display and its ultra-processor. The iPhone 5 has an A6 chip that Apple says is powerful but not hungry. Apple claims its new product includes speed, durability, and extraordinary convenience for its consumers. Gizmo-Bird.com reported that the IPhone 5 sold 5 million unit sales in just 3 days. Every year or over a period of time its seems like apple reconstructs the iPhone forcing consumers to be in with the new and out with the old. It seems as though you can predict when
Lastly one of the most important issues between the two phones is cost. Lately you see cell phones on the market for over $100. iPhone 4’s range anywhere between $200-$400 dollars depending on gigabytes, as for the android, the company ranges from about the same amount in price depending on the amount of gigabytes in the phone making price of the similarities between android and iPhones. Throughout many differences between the Android and iPhone are the most obvious the touch screen capabilities. This is the
In today’s society cellular devices are not only popular in the United States, but in many other countries worldwide. Not only do cell phones contribute to one’s personal life, but business use as well. Most people have hectic lives, and using a device to help schedule appointments, send out mass text messages, or even remind you to call back your boss, is unimaginably convenient. Cell phones within the past five years have reached mile stones compared to the phones used back when cell phones were first invented. Even though there is still a diverse range for cell phones on the market, the two most popular brands seem to create an argument on choosing the right phone, Apple and Android. Each with impressively fast processors, and new
With the iPhone, unlike the iPod, Apple is not creating a new market it is “muscling the mobile market” (BBC). In fact in the UK, more than 80% of the households have already a mobile phone; however the mobile market is changing so the customers are not only buying a mobile phone for its functionality but also for the other features that it can provide such as the design for example. Since, there is an established market; there will be two main types of competition: one against the distributor and another one against the product.
A slow economy or financial slowdown could have a major impact on iPhone business and profits.
In this report I will include all the positive areas and Recommend for market development for the iPhone to get maximum shares in smartphone market.
The smart market is expanding at an exponential rate. As of 2010, an estimated 270 million smartphones have been sold. In
Tremendous growth in the smart phone can be observed in the recent years ,There is no doubt that smart phones establish a significant leap in science and technological applications, the smartphone market is growing exponentially , And highlights the importance of phone applications, which contributed greatly to change our perception and the way we deal with mobile devices. It is becoming a key factor in changing our contemporary reality, and provide services to various sectors of society, whether medical, educational, engineering, etc.