Chelsea Martin & Susanne Rattay, March 2012

IMC Plan• Executive Summary• Situational Analysis• 4 P’s Brand Extension iKey• Product + SWOT Analysis • Price & Place• Promotion

• Objectives• Promotional Mix + Strategies

• Budget• Future suggestions• Implementation + Control

Apple Inc.Executive Summary:PAST: Founded April 1976 by Steve Jobs, Steve

Wozniak & Ronald WayneSold hand built Apple 1 Computer Kit2001 the first iPod

Apple Inc.PRESENT: iPod holds 70% market share

Stock up almost 500% in last 10 years“the P.C alternative”Post Steve Jobs, CEO Tim Cook = increase

in charitable donationsEnd of 2012 = highest iPhone/iPad sales

ever

Apple Inc.FUTURE: Apple’s product compatibility and

design superiority have created a loyal customer base

Aim of new product maintain core customers grow customerbase

Situational AnalysisPolitical

Taxation lawsEurope’s universal charger regulations (2011)

EconomicGFC Immerging Markets (BRICS as of 2011, Mac iOS had less than 2% market share)

Situational AnalysisSocio-Cultural

Immerging nation markets Increasing technology demand (80% world population have a mobile phone) Over 75% of SP (smart phone) users will email, text or browse the web each day

Target customers Home users, small/medium business, students,

younger generation, creative “Mac users”

Situational AnalysisProfound Customer Profile

Wheel of Consumer Analysis• Affect & Cognition• Behaviour• Environment decision process

Identify characteristics, buying patterns, influential factors on a country-by-country basis for different target groups and general market situations

Situational AnalysisInternal Apple Inc

• Review past (strategies + success)• Re-evaluate collaboration with ad agencies• Assess overall promotional capabilities• Maintain Brand Image throughout promotion

iKeyTouch, share, live. In a whole new way.

ProductIntroducing the Apple iKey

‘A revolutionary device that allows you to do, see and share in a whole new way’

Amazing innovationMinor product extension (peripheral)Product compatibility = core customersVersatile = broad target audience

Product• Appearence • Dimensions 10 cm x 5 cm• Colors (black, silver, white)• Weight 100 grams

• QWERTY layout + Screen Projection• Lifespan > 5-10 years• Battery charge via devices• Laser + light technology : translates finger

movement into keystrokes

Product

(Park, Milberg & Lawson, 2001)

7 pitfalls (Quelch & Kenny, 2000)

3 argumentsConvenienceHealthSustainability

Why product?

Convenience

• Portability• Multiple gadget use• Multifunctional• Input (keyboard + mouse• Screen (movies + pictures)• Decoration

Promising Outlooks

Health & SustainabilityConventional keyboards = toxic (Five Winds International, 2001)

• Brominated flame-retardants• PVC (Poly Vinyl Chloride)

E-Waste: incineration forms dioxins

Health & SustainabilityConventional keyboards = toxic (Five Winds International, 2001)

• Brominated flame-retardants• PVC (Poly Vinyl Chloride)

E-Waste: incineration forms dioxinsIncrease in multiple-user PC areas• Lack of hygiene• Transfer of potentially pathogenic bacteriaMain target (students): (Anderson & Palombo, 2009)

100 % PC access, 91,2% regular internet use 73,3% regular e-mail use

SWOT AnalysisStrengths

• Innovative• Multifunctional• Consumer-oriented

(convenience, ease-of-use)• Compatibility + diversification• User Interface enhancement PDAs (word processing + spreadsheet use)

• Differentiation

SWOT AnalysisWeaknesses

• Immature technology• Increased production costs• High market/consumer research• Mere Apple compatibility• Inflexibility (USB plug-in) + battery• Premium price• No groundbreaking device + adjustment period

but: huge practicability

SWOT AnalysisOpportunities

Launch New Technology (projection)Home cinema movementEncourage Apple device purchasePartnerships (collaboration)Multiple-user computer areas

(universities, companies, hospitals)

SWOT AnalysisThreats

Laser technologyNew field (projection technology)Movie theatresDownward pricing pressureDifficulty market expansionCompetition

Competitive AnalysisProducts• Wireless keyboards, fold-up keyboards, thumb

boards, virtual keyboards

Competitive AnalysisMajor companies• Experience in projection technology

Competitive AnalysisMinor companies• Experience in projection technology

Competitive Analysis• In-depth examination• Primary competitors (Samsung, Google)

Strengths + Weaknesses• Segmentation• Targets• Strategies (positioning + promotional)

• Contemplation of partnerships• Major or minor companies

Competitive AnalysisVirtual Keyboards

VKB Inc

Canesta

Virtek

DifferentiationSo far… • Laser only• Simplistic

(Keyboard + mouse)• One size, simple sound• Battery recharge (240 min.)

• Universal connectivity (Bluetooth, Wifi)

• Inconvenience (errors)

Differentiation… Aim• laser + light combination• Keyboard PLUS

(Screening)• Size + sound regulation• No charging time• Exclusive connectivity

(Apple Socket)• Convenience (error-free)

So far… • Laser only• Simplistic

(Keyboard + mouse)• One size, simple sound• Battery recharge (240 min.)

• Universal connectivity (Bluetooth, Wifi, USB)

• Inconvenience (errors)

Product – Branded House

Does the Master Brand Contribute to the Offering?

Associations Enhancing the Value PropositionHaving the Apple logo and “i” product linkage would make the product more appealingCustomers would associate positives of other Apple products with the new product (e.g. quality and compatibility)

Visibility Apple product launches given worldwide press coverage

Product - Brand ExtensionBenefits:

low risk (already have the customers)cheaper than a new brandnew product has mutual benefits with

existing productsin line with past brand extensions (minor

extension – peripheral product)

PriceUS$150 (€120)*optimum of perceived customer valuein line with current pricing schedules

*subject to production cost fluctuations.

PlaceiKey will be stocked in

Apple storesApple online storesApproved resellers

Know your aim Brand Positioning toolLink the brand to the slogan RepetitionAlways use slogans Creativity

Reinforces Brand ImageEncourages Brand Loyalty

Consistency Brand ConceptBrand Link

a la coeur.

bis zum kern.

hasta el corazón

Objectives• Marketing

Sales, profits, market share, margins

Objectives• Marketing

Sales, profits, market share, margins

• IMCAwareness, belief, perceptions, behavior change,

positioning, image purchase decision

Objectives• Marketing

Sales, profits, market share, margins

• IMCAwareness, belief, perceptions, behavior change,

positioning, image purchase decision

• MediaBroad reach + frequency

Objectives• Marketing

Sales, profits, market share, margins

• IMCAwareness, belief, perceptions, behavior change,

positioning, image purchase decision

• MediaBroad reach + frequency

Promotional Mix

Promotion

Advertising

che

Soccer specific ads during FIFA World Cup international coverage less adverts but with more impact run competitions to win iKey in conjunction with another sponsor (Coca-cola, McDonalds etc)

(cheaper and broader audience than the super bowl)

Target audience: working people

house parentsfamilieschildren“fat-finger-syndrome” people

Why TV: medium allows expression of time/place/emotionbase for other mediums

TV Templates• Pictorial Analogy:

Replacement Version

• Interactiveexperiment

• Extreme Consequence

Specific target

follows conventionparticular magazines

Why print: large reachlower cost

can be targeted

Billboard

Why billboard: very cost effectiveno

customer buy-in

broadest reception

constant exposure (24/7)

Vivistitial doesn’t interrupt the customer

Model: Pure Affect - Feel

Model: Pure Affect - Feel

Values (Pollay, 1983)

• Practicality• Family• Modern• Unique• Technological• Productivity• Leisure• Youth• Security

PR/Publicity• Internet Network explosion effect

• Website + special online advertising• Press Conferences• News/Press Releases

• Product Placement• Pixars• Upcoming movies

• Secondary Sources: Things• Sponsorships (e.g. health-related)• Special events (e.g. Soccer World Cup 2014)

Sales Promotion• Consumer-oriented

Create incentives• Student discounts• Packages• Christmas promotions

Sampling

Use Consumer Sensitivity to promotional deals

Personal Selling• Direct contact• Special occasions (exclusive)• Feedback opportunities

• In store initiative communication flexibility (tailor message)

Model: Low-involvement

CEA : Think Do Feel

Brand leveraging

• Genius Bar• Celebrities• Health Experts

• Country (Origin)• Apple Store• Internet

• Events: Soccer World Cup 2014

• Sponsorships

• Alliances(Infocus, Benq, etc.)

• Co-branding? (Apple + Samsung)

Time FrameProduct to launch June 2nd 2014

2 weeks of minimal advertising (media buzz)

launch full scale advertising between June 12th & July 13th – FIFA Cup

mix iKey back into accessory advertising after July 20th

BudgetCampaign: in the last four years Apple has spent less than

1% of profits on advertising.In 2012 Apple spent $1billion on advertising.Plan for iKey: 10% of advertising budget

Television: 50%during FIFA cup: 25%normal prime time: 25%

Print Adverts: 25% Outdoor Ads: 15% Product Placement: 10%

BudgetSpending: Fixed Costs: Product:

production (1. salary/employees 2. material 3. facilities)testing (of product)packaging

Market Research: (1. Customer surveys 2. focus groups)Media:

advertising (1. TV 2. billboard 3. print)IMC tools (PR, Internet etc)

Savings:brand placementmedia buzz

CostsResearch and Development (R&D):Annual R&D Budget overview

2009 2010 2011 20120

2

4

6

8

10

12

AppleGoogleMicrosoft

Apple R&Dless than half of competitors budgetat least 40% of budget spent on iPhone developments

iKey suggestion is 12% of budgetsecondary device (other products required)

Future suggestions• PR expansion• Gradually decrease reliance on stealth approach

• Sponsorships• Address children• Target elderly• International expansion• Asia• Developing Countries

ImplementationCustomer Care:

closely monitor customer responses24/7 phone lines/online communicationprovide promotions to core customer areas (e.g. student receive a half price iKey when they purchase a iPad valued over $500)

Control: We will come together once a month until one month before launch (and then once a week for the following three months) to discuss issues, evaluate and strategise.

ControThank you for hearing our presentation

Does anybody have a question or comment?