Post on 29-Dec-2015
transcript
Market Planning Assignment:
iPhone K
Group 2: Carly Jones, Hyunsoo Kim, Ina Koelle, Sarah
Hirschmann, and Tyler Darke
BUS 306-01 Fundamentals of Marketing
December 10, 2013
Agenda1 Market Needs
2 Product and Software Introduction
3 Product Position
4 Competition
5 Target Market and Segmentation
6 Value Proposition
7 Finances
8 Conclusion and Questions
1976
1976 - 1998
1998 - 2000
2001 - 2007
2007 - Present
Market Needs
• Simple solution to parental controls• Ease of use
• Quality, child-appropriate phone• Desirable to children
• Access for children to smartphone features and benefits
• 46.6% of children in the U.S. own a smartphone• Expected to increase to 70.4% by 2016
iPhone K
• Plastic exterior, steel frame interior
• Liquid repellent nano-coating
• Configurations• 16 GB• 32 GB
K
iOS 7K
• Limited internet
• Restricted email
• Restricted song, app, and video purchase
• Monitored or restricted messaging
• Incoming and outgoing call restrictions
• GPS monitoring
Product Position
• High-end smartphone for children
• Peace of mind for concerned parents
• Bridge between limited-technology
children’s phones and current
smartphones
Competition
• Kajeet
• Software only
• Limited to Sprint
phones
• Firefly
• Very limited features
• Two color options
• Not appealing to
children
Market Segments
• Geographics
• Urban areas
surrounding major
cities
• Early-adopters
• Existing Apple store
locations
Market Segments
• Demographics• Parents ages 25 – 50• Likely to have children
ages 5 – 12
• Mid to high income levels
• Behavior / Psychographics• Concerned parents• 71% likely to set parental
controls
• Dissatisfied with current options
8%9%
13%
20%
51%
Likelihood of Parents to set Parental Controls on a 5-12 year-old Child's
Smartphone
Extremely UnlikelyUnlikelyNeutralLikelyExtremely Likely
Marketing Mix
• Pricing
• Distribution• Apple stores, online,
other licensed retailers
• Marketing Communications• Television commercials,
billboards, social media, mobile service providers
Model No Contract
2-year Contrac
t
16 GB $499 $99
32 GB $599 $199
Value Proposition
• Apple product
• Broad range of
features
• Safest children’s
phone on the
market
• Shares appearance
of iPhone 5C
Price
Benefits
More The same Less
More More for moreMore for the
same More for less
The same
The same for less
Less Less for much
less
Financial Plan
Expense Year 1 Year 2 Year 3
Advertisements $70,000,000 $78,984,439 $103,891,252
Marketing Travel $20,000,000 $22,566,983 $29,683,215
Promotions $40,000,000 $45,133,965 $59,366,430
Distribution $30,000,000 $33,850,474 $44,524,822
Total $160,000,000 $180,535,860 $237,465,719
Cost Break DownVariable Costs Price per Unit
Materials $174
Manufacturing $60
Transportation $13
Storage $20
Total per Unit $267
Fixed Costs Price per Quarter
Machinery $300,000
Maintenance $10,000
Rent $190,000
Administrative $50,000
Total per Quarter $550,000
Break-Even
- 100,000 200,000 300,000 400,000 500,000 600,000 $-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
Break-Even AnalysisSales Variable Cost Fixed Total Costs BE Units = 174,784
Units Sold Quarterly
Quart
erl
y R
evenue
Conclusion
• iPhone K - technologically advanced children’s phone
• Perfect for concerned parents
• Superior to competition
• Key Learnings
K
References• Apple retail stores, united states. (2013). Apple. Retrieved December 5, 2013, from:
http://www.apple.com/retail/storelist/
• Brown, R. (September 4, 2012). The cost of making an iPhone. Investopedia. Retrieved December 1, 2013 from: http:// www.investopedia.com/financial-edge/0912/the-cost-of-making-an-iphone.aspx
• Elmer-DeWitt, P. (October 28, 2009). Apple's 2009 ad budget: Half a billion. CNN Money. Retrieved November 30, 2013 from: http://tech.fortune.cnn.com/2009/10/28/apples-2009-ad-budget-half-a-billion/
• Hodgkins, K. (September 24, 2013). IHS: iPhone 5s component tally reaches $199, iPhone 5c costs $173. Tuaw. Retrieved December 1, 2013 from: http://www.tuaw.com/2013/09/24/ihs-iphone-5s-component-tally-reaches-199-
iphone-5c-costs-17/
• iPhone. (2013). Apple. Retrieved October 13, 2013 from: http://www.apple.com/iphone/compare/Median age for u.s. counties map, statistics. (2013). Governing. Retrieved December 5, 2013,from: http://www.governing.com/gov-data/ census/median-age-county-population-map.html
• Median age for u.s. counties map, statistics. (2013). Governing. Retrieved December 5, 2013,from: http://www.governing.com/ gov-data/census/median-age-county-population-map.html
• Zact. (May 13,2013). Zact mobile report: navigating children's smartphone use. PR Newswire. Retrieved October 10, 2013, from: http://www.prnewswire.com/news-releases/zact-mobile-report--navigating-childrens-smartphone- use-215817311.html