QUESTION

Marketing Plan

Length: Please note, as will be discussed in class, there is some flexibility in word limit.

Generally less than 5000 words

Value: 50 marks

You are required to analyse the marketing strategies of an organisation and provide

recommendations, utilising theory and literature to support your argument

SOLUTION

Executive summary

Any product launch is backed by a marketing strategy. The marketing strategy is the backbone of a successful and profitable product. Even if the product has excellent features, still a proper marketing is necessary to make the consumers buy the product and thus earning profits for its organization.

The current report analyses the marketing strategies of Apple Inc. for the launch of their latest iPad2 in the Australian market. The base of the marketing strategy is defined by its goals and objectives, which aim towards making the product a market leader in its segment. These goals and objectives are set in a scientific manner using SMART technique. The next step is to identify the unique features of iPad2 that can make huge impact in the market. As iPad2 was launched in six versions, so it is easy to analyse these versions in relation to each other to compare the features along with their price points.

The market environment study analyses various technology issues, cultural trends and legal factors. They play a crucial role in determining the marketing strategy for different markets.

The next analysis is carried out to identify competition. This is done at three levels as- Brand competition, Product competition and generic competition. Samsung emerges out to be the strongest competitor along with players like LG, Vodafone and RIM.

The customer analysis is recommended to be done through customer surveys and conjoint analysis which focus on consumers’ behaviour and their expectations from the product. With these results in hand, the customer segmentation is done as per the segments- Technology enthusiasts, corporate clients, Repeat buyers and First time buyers.

Finally, the marketing strategies are suggested for each customer segment along with the budget heads for the marketing plan.

The overall marketing strategy is focused on its objectives and the customer satisfaction.

Introduction

Apple Inc. launched it very famous iPad2 in Australia in March 2011. Although the prices in Australia for different models are expensive when compared with US markets, yet there was a great response from the Australian customers.

As a practice, Apple Inc. sought online orders from the customers before its launch. The response was great and Apple Inc. forecasted a strong potential for the product in the Australian market. In addition to the online orders, selected stores were identified to sell iPad2. The product was launched in different versions with price ranging from $579 to $949. In all, six models were launched at different prices. There were distinguishing features in each of those models and they were targeted to different set of customers.

In the digital market, there were several players who posed big competition to iPad2. The strongest of them was Samsung which had also launched its Galaxy tab with similar features. Apple Inc. followed various market strategies in order to increase its market share in the Australian market. The strategies were in accordance with the external competitive environment as well as the customer behaviour and country’s regulatory environment.

The market plan presents various marketing strategies that were or that could be adopted by Apple Inc. to make its product successful in Australian market. Like any other marketing strategy, the core of the marketing plan is the ‘Australian customer’. Based on the preferences and shopping habits of Australian customers, the strategies have been underlined for different customers segments.

Situation Analysis

Based on the market dynamics, customer behaviour and iPad’s features, Apple can set its aggressive marketing plan. Some of the major aspects to be considered are discussed below.

Marketing objectives and goals

The basis of any marketing plan is its goals and the objectives of the organization. Apple Inc. has been known to follow disruptive marketing by launching its products highlighting the most innovative features in the markets. The customer expectations are very high and the exclusivity factor plays a very important role in instigating purchase.

Some of the goals that fit into Apple Inc. marketing strategy can be cited as below:

1. To provide customer satisfaction by giving them the products according to their utility, preferences and expectations
2. To maintain competitive advantage in all customer segments chosen
3. To upheld the Apple brand name in the market

These goals are defined to set the competitive quantitative objectives in the market. In terms of numbers, iPad’s share of tablet traffic is more than 90% in all developed markets. In Australia, it is close to 98% (comScore Research survey, 2011). Thus, following quantitative objectives would fit into iPad2 marketing plan:

1. To aim for an overall market share of more than 95% in the tablet market
2. To expand market share in other segments such as laptops and smartphones

Justification of goals and objectives (SMART goals)

(Hooley, 2011)

The goals set should be very exhaustive as well as realistic. SMART framework identifies these goals as below.

Specific goals:

These goals and objectives are deemed to be very specific in the current market context. As mentioned, Apple Inc. main focus is customer satisfaction. It means that the product fulfils the expectations of the customers. Normally, customers’ expectations are very high when it comes to brand like iPad. There is a sense of exclusivity which a user gets when he owns any Apple product. The customers never expect redundant features to be added in Apple products and they want to experience an extremely user friendly interface. The other primary goal as well as objective is, to maintain a leadership in tablet market. Since, there is no big player in Australian tablet market apart from few like Apple and Samsung, it definitely is very important to aim for the major chunk of customers. And eventually, iPad2 stands for Apple brand name, which is associated with innovation. Each marketing campaign must focus on positioning iPad2 as an innovative product. Hence, the product version or model launched for a particular customer segment can very specifically focus on the goals and objectives associated with that segment.

Measurable goals

The quantitative objectives set in terms of intended market share are very well measurable through various market research surveys. The company can also track the profile of the customers through these surveys. Moreover, a more comprehensive data is available through online orders which form the major portion of the overall orders. Hence, the quantitative targets can be tracked. The timely milestones can also be set to check the seasonality of the market demand. This will also give an insight of how competition will affect Apple’s market share.

Attainable

Apple Inc. is one organization that had followed disruptive marketing strategy successfully over the years. The organization has sufficient resources to reach the goals set. Of all 4 P’s of marketing, iPad2 enjoys popularity as a ‘Product’, rest all P’s (Price, Place and Promotion) follow it. The brand equity is such high that customers are willing to buy it at premium price too.

Realistic goals

These goals and objectives are very realistic and can be justified. Apple iPads have enjoyed more than 95% market shares in the markets of Japan, U.K, France, Spain, Germany and U.S. Considering the technology penetration in Australia is similar to these countries, Apple can expect a similar market share in Australia as well. The tablet market is dominated by Apple and few other players like Samsung, which recently entered into the tablet arena. Moreover, six models launched for six different segments would cover almost entire market and hence each segment will eventually grow and contribute to these goals and objectives.

Timely goals

Although the sales targets are set for every quarter, there is no time frame set for above goals as Apple launches different versions at different times. Sometimes there is neck to neck competition among the two apple products. Hence, Apple would not like to set timelines for the targets for a particular product i.e. iPad2.

Apple’s iPad2 features

(Flynn, 2011)

As mentioned above, the product is the major strength for marketing brand Apple. iPad2 was launched in six versions at different prices catering to different customer segments. Major customers of iPad are business travellers. Most of them might already own an iPad or similar product. The intent of marketing strategy should be to encourage them to switch to this better option. The six versions that were launched as mentioned below:

• Wi-Fi 16GB priced at $579
• Wi-Fi 32GB priced at $689
• Wi-Fi 64GB priced at $799
• 3G+Wi-Fi 16GB priced at $729
• 3G+Wi-Fi 32GB priced at $839
• 3G+Wi-Fi 64GB priced at $949

For customers who already avail 3G facilities on their smartphones might not switch to 3G versions and would like to understand the features of only Wi-Fi versions.

Some of the features in iPad2 that could attract customers were:

ü  It weighs almost 100 grams lesser than previous iPad versions making it more portable for frequent travellers

ü  It is thinner with thickness as 8.6 mm, making it an easy to carry product for businessmen

ü  Its ‘video mirroring’ features is an ideal tool for making business presentations and presenting them on larger projectors. It can be connected to flat-screen televisions and hence a great presentation tool

ü  Its ‘Facetime’ feature gives it a high resolution webcam which can become handy on the go

ü  Its improved RAM and graphics processor provides option to run high quality games on it

ü  Backwards compatibility with all previous iPad versions

Hence, some indispensible features give iPad2 a definite competitive edge in the market and hence allow its marketing team to set premium prices.

The market environment

Once, the product versions have been defined for the market, the next consideration should be given to the external market conditions. Some of the issues that might creep up owing to external factors are as below:

1. Technology Issues:

Technology in the tablet market is advancing at a very fast pace. The features which look indispensible today may become obsolete in the coming future. The tech-savvy customers are the innovators of the market; they are the risk takers who try different products at very fast pace and thus setting trends in the market. Hence technology improvements in this industry primarily deal with- improving product characteristics and features that are according to the utility of the users. The characteristics that influence the utilities of the product are Weight, Design, applications and upcoming features provided by similar products. It is therefore imperative for Apple to keep a track on technological advancements and incorporate them in new iPad2 versions from time to time.

1. Cultural Trends

Australians have now become cautious about the environment impact of the products. Apple should highlight the features in terms of battery consumption, monitor resolution and mitigation of other health hazards which may occur when similar products are used.

1. Legal factors

Though the legal compliances to be followed in Australia are very business friendly, still Apple should ensure that it complies with various regulations mentioned in various laws like- Competition and Consumer Act 2010 (CCA) for fair consumer practices; Trade Practices Act for legally correct publicity and advertisements; and various cyber laws to conduct its business online.

Competitor analysis

(Dockrill, 2011)

The closest competitor of Apple in Australian market is Samsung, which launched its Galaxy tablet. The other players in the market that are ramping up are Vodafone, Motorola with its ‘Xoom’, LG with its ‘G-slate model’ and RIM with its Playbook.

In order to analyse the competition, Apple should examine three levels of competition. They are described as below:

1. 1.     Brand Competition

As far as brand name is considered, Apple has got its legacy of innovations. iPad series have been a breakthrough product series in tablets market. In fact, brand Apple has become synonymous in tablets industry. The brand personification of Apple lies in its user friendly products with innovative features which associate themselves to the core of consumers’ hearts. Apple is believed to be a quality conscious brand in the market. While compared to other brands, Samsung plays on the compatibility with the latest software in the market i.e. Android. Brand ‘Samsung’ is known for its robustness and updated technological features. Samsung, with its Galaxy tab has been trying to match with the brand equity of Apple. The other brands are not very known brands in the tablet market.

1. 2.     Product Competition

Apple has done a smart move by launching six versions of iPad2. It has therefore made is presence felt across all customer segments. The way the features have been demarcated, every version can compete with almost every product of its kind in each segment. In terms of product competition, there is no match for Apple, as other competitors like LG, RIM or Samsung have limited versions of their products with each version containing a mix of features which may or may not be required by the targeted customer. The pricing points have given multiple options for consumers and may also help in cross-selling of existing Apple products in market.

1. 3.     Generic Competition

Only thing Apple has to worry about is meeting the demand of the customers. It has been seen that the demand for Apple iPads always exceed the production done by the company. Although, lot of buzz is created in online market space where Apple sells majority of iPads, various offline distributors must also be considered. Samsung plays on its good distribution network and so does Vodafone. A careful analysis of shopping habits of customers in different segments should be done to choose stored for different versions of iPad.

Customer Analysis

Apple always designs its product keeping in mind the customers’ expectations and their purchasing pattern. It is therefore imperative to perform a thorough customer research on iPad2. Some of the points that need to be pondered in this regards are described below:

Consumer behaviour

(Solomon, 2011)

The consumer psychology plays a crucial role in determining the success of a product. Some of the points to be considered under consumer behaviour are:

1. 1.     Customer characteristics and expectations from the products

In order to understand the customer characteristics and product expectations, a market research study should be conducted. Various marketing agencies are there which Apple can collaborate with.

The market research study should start with gauging the knowledge about the features of iPad2 among the users. The questions must be asked regarding the top of mind recall for brands in tablet market. The customers must be asked about the features they liked in Apple products and what do they expect to see in iPad2 or its different versions. They must be asked about the unique features they think are there in iPad2 as compared to other products.

The further probing should be done to understand the user friendliness of Apple’s products and iPad2 (from users who are using it).  The customers must be asked if they like the simplicity of features in iPads. Since, Samsung and other competitors are on Android platform, customers should be asked about their preference of operating systems and the reasons behind the same.

The other features like portability and aesthetics must also be gauged from the customer study. This will help in customer segmentation.

The most important factor is to understand the price sensitivity. If possible, a conjoint study must be conducted to understand the price which customers are willing to pay to get different features. Since, six versions are launched at six different price points; the correlation analysis should be done to see if the features match the price expectations of the customers. The pricing study must also be done in relation to the competitor’s products to get a better idea of price sensitivity among the customers.

The corporate clients of iPad2 would be more focused on business friendly features and the long term usability aspects.

1. 2.     Purchasing habits

The technology enthusiasts, who were anticipating the iPad2 launch, had placed their orders online before the launch, so as to get their piece of the gadget. However, after the grand launch success, Apple’s focus should be to penetrate deep into market across different sets of customers. In order to do this more effectively, it needs to strengthen its distribution and service channels. Apple stores have been the major channel of distribution and reaching out to the customers. Apple should expand its networks of Apple stores across the country through distributors and franchisees.

In addition to Apple stores, various other retail stores of different type’s like- department stores where computer based products are sold for multiple brands or mass merchandisers where all sorts of electronic items are sold. This is also necessary to increase the brand awareness of the product.

It must be ensured that customer service at every stored should be in line with the brand Apple. Apple experts should be assigned at the stores where premium customers are expected. Corporate clients must be served personally. The after sales service is a big factor where competitors like Samsung may take a lead since Apple accessories and experts handling Mac OS are available in limited numbers. Samsung being on android platform can find its experts easily. Customer complaints and further demand of accessories should be met as per the customers’ expectations. So, a customer research study should address the difficulties faced by consumers while using the apple products and their view on the customer service of Apple as compared to other competitors.

1. 3.     Brand loyalty

Apple being the market leader in tablets segment, it will have repeat buyers who are currently using older versions of iPad and may want to switch to the latest products. These customers may also consider other brands which have somewhat similar features as compared to iPad. These customers must be asked about their likelihood of switching the brand and the reasons thereof.

Segmentation, Targeting and Positioning

Based upon the customer analysis done above, heterogeneous customer groups can be identified for iPad2 and marketing strategies can be tailored for each segment. Some of the segments that can be identified are described below along with the positioning expected for them:

1. 1.     Technology enthusiasts

These are the customers who like to purchase innovative products which are launched in the market. They may or may not be loyal to a specific brand. In case of iPad2, most of these customers must have purchased the latest iPad2 as an when it was launched in the country. These customers should be treated as trend setters in the market. They are not very price sensitive and prefer to pay premium for better features. These customers can be very effectively targeted through online marketing. They are the ones who would have placed online orders just at the launch of iPad2 so that they become the first one to use the product. They focus on the features that are exclusive and which the company claims as its USP. They are the first ones to write reviews about the product.

The positioning for these customers must be in terms of unique features that come along with the latest iPad2. They would be happy to pay premium price for better features. Hence, high end versions can be targeted for these customers.

1. 2.     Corporate clients

These are the business houses which might be the new but major market for iPads. The main focus of business houses would be on the business applications and the customer service. Their main focus is on business continuity and would expect an instant customer service when required. Features like extended warranty or insurance should be the key considerations. They would not be price sensitive and would prefer long term association with the brand.

The positioning in this case must focus on the customer service experience of brand Apple and unique business features related to business presentations and word applications. High end versions can be targeted for this segment.

1. 3.     Repeat buyers

These customers are the ones who have used similar products earlier. They might be looking for more features or the features which may complement their existing products. A simple example may be the user who has an iPhone; so he may not want the 3G version of iPad. Such customers are price sensitive and may not be loyal to any brand. They just want their functional requirements to be fulfilled.

The positioning for these customers should highlight the compatibility of iPad with other products. They may present an opportunity for cross selling of Apple products and thus adding to the brand equity.

1. 4.     First time buyers

These are the ones who are attracted by the brand image. They have very specific requirements and budget according to it. They may or may not be brand loyalists, but they sure are price sensitive. They are the ones who tend to compare the features and prices of different products available in the market. They are the ones who may eventually end up being loyal customers.

The positioning in this segment must present a comparative view of superiority of iPad2 over other products in the market.

Recommended marketing strategies

Based on the above sections, it is now possible to device some concrete marketing strategies for Apple Inc. to achieve the set goals and objectives. These strategies are mostly based on the segmentation done for the customers. For each segment, promotion, pricing and distribution strategies are defined.

1. 1.     Strategies for technology enthusiasts

As mentioned, these would be the breakthrough customers. The objective is to make them purchase and use the products. If satisfied, they are expected to generate automatic publicity.

The promotion for this segment should be done aggressively through online marketing. Apple has its official online forum ‘MacTalk’ (http://www.mactalk.com.au/content/), where such users must be invited for their first hand reviews. Various other online media like social networking websites, blogs and technology forums must be utilised to promote iPad2 among technology enthusiasts. They must be encouraged to give valuable suggestions regarding the product. Apple may launch some contests to engage with such users. Apart from online marketing, offline marketing must be done through various seminars and press conferences.

Pricing points have already been defined by Apple. However, these users must be targeted for the high end versions. The logic behind it is that the high end versions contain all features which low-end versions have and above that, these customers are not price sensitive. So, objective to penetrate into market should be fulfilled if these enthusiasts are happy with the product features.

The distribution channels for such customers are mainly online stores and some selected apple stores where Mac experts are available to answer every technical query these people have.

1. 2.     Strategies for corporate clients

The corporate clients would be more interested in after sales and customer service.

The promotional strategies to attract more corporate clients would be through online webinars and product presentations. A seminar could be conducted inviting representatives from all the prospective corporate houses to showcase the product. Offline pamphlets and catalogues cam complement the above strategies. The message delivered to these businesses should focus on the business applications and the brand reliability in long term. Corporate offers or bulk deals may also be introduced in terms of features bundled with the product like an extended warranty or long term insurance.

The distribution channels for these customers may be online or offline. Online orders should be allowed to expedite the distribution process. Personal selling is the best way to get a good corporate deal. It is advisable to send a Mac Expert who can present the product and showcase its benefits. The order can be taken on the spot and direct delivery can be done through any other distribution channel.

Since, they are more focussed on features rather than price, high end versions should be promoted among these customers.

1. 3.     Strategies for repeat buyers

The promotional media for these buyers should be through online forums where they can discuss the specific features they require. They should be engaged in discussion forums to clarify their queries and look for the version that addresses their requirements. The brand name of Apple as well its compatibility with various technologies should be highlighted. Besides this, they may be encouraged to visit the apple stores and get their concerns cleared.

The distribution channel for these customers should be apple stores. In these stores, they are free to take trials and hence would be able to make better choice.

The pricing is dependent upon the requirements. Personal selling through apple stores could help in offering them best priced version available.

1. 4.     Strategies for first time buyers

The promotion should focus on Apple’s brand name. They are the mass market, hence online media; mass media advertising; and print media should be focussed upon. Mass users must be invited on online forums to promote the product and make them aware about the unique features. Promotional online contests could help in gathering masses. Besides that, mass email and SMS campaigns can also be utilised. On mass media side, TV advertisements must be the main focus. Print media can be utilized through various magazines, especially the ones which focus of electronic gadgets. Newspaper advertisements increase the penetration, so they must also be used.

The pricing is dependent upon the requirements. Personal selling through apple stores could help in offering them best priced version available.

Budget for the marketing plan

Number of activities has been suggested above. In order to implement them, a rough budget must be calculated so as to gauge the return on investment. While preparing the budget, it is assumed that the budget is for activities carried out in next six months. It is also assumed that budget excludes the expenses incurred for setting up of infrastructure like retail stores etc. The budget is strictly for the marketing activities.

Tentative budget heads are shown in the table below. The exact price for each item depends upon the expectations from the outcome of the activity. For example: Expenses on any advertising depends upon the frequency of ad, the air time and the media. A further market study should be done to get the best possible deal for conducting the activities shown in the budget table.

References

Solomon, Michael, R.; 2011; Consumer Behaviour: Buying, Having, and Being

Hooley, Graham, J.; 2011; Marketing Strategy and Competitive Positioning

Sengupta, Subroto; 2005; Brand Positioning: Strategies for Competitive

Apple Australia; viewed 27 October 2011;

<http://www.apple.com/au/ipad/features/>

Australian Competition & Consumer Commission; 2011; viewed 27 October 2011; <http://www.accc.gov.au/content/index.phtml/itemId/815390>

ComScore Research Survey, 2011; viewed 27 October 2011;

<http://www.iapps.net.au/ipad-owns-98-marketshare-of-tablet-computing-in-australia/>

Flynn, David; Apple iPad 2 launches in Australia this Friday, 2011; viewed 27 October 2011; <http://www.ausbt.com.au/apple-ipad-2-launches-in-australia-this-friday-prices-from-579-to-949>

MacTalk; viewed 27 October 2011;

<http://www.mactalk.com.au/content/>

 GI86

But you can order it from our service and receive complete high-quality custom paper.  Our service offers “Marketing” essay sample that was written by professional writer. If you like one, you have an opportunity to buy a similar paper. Any of the academic papers will be written from scratch, according to all customers’ specifications, expectations and highest standards.”