Marketing Research Final Presentation
iPhoneAlex Negle
November 31st 2011
Table of Contents
• Overview:– Executive Summary– Purpose– Methods– Findings• Secondary Research• Primary Research
– Qualitative– Quantitative
– Conclusion
Executive Summary
• The iPhone had 80% unaided awareness in the online survey and 90% in the paper survey
• Ease of use was the most important factor when it came to smart phones
• The iPhone’s weakest quality was affordability
Purpose
• Information found while doing this research is used for Marketing Research (BUS 1535)
• The Information was collected to study consumers attitudes towards the iPhone
Methodology
Type of Research• Secondary • Qualitative• Quantitative
Method Used• Online Databases• Personal Interviews,
(5) Focus Group• Online and Paper
Surveys (10)
Findings: Secondary Research
• Headquarters– Cupertino, California
• Top Competitors:– HTC– Research in Motion– Motorola
5 Year Sales TrendsRevenue 2006 2007 2008 2009 2010Industry (mm)
$169,082 181,937 189,474 191,501 196,044
Apple (mm) $19,315 24,578 37,491 42,905 65,225iPhone (mm)
$6,742 13,033 25,179
HTC (mm) $104,816 118,579 152,558 144,880 275,046Android (mm)
$64,694
RIM (mm) $6,009 11,065 14,953Motorola (mm)
$31,810 23,373 17,099 11,050 11,460
Sources: investor.apple.com/financialsIbisworld.com (NAICS Code: 51332 wireless telecommunications carriers in the USHTC.comRIM.comMotorola.com
5 Year Sales Trends
2006 2007 2008 2009 20100
50,000
100,000
150,000
200,000
250,000
300,000
IndustryAppleHTCResearch In MotionMotorola
Sources: investor.apple.com/financialsIbisworld.com (NAICS Code: 51332 wireless telecommunications carriers in the USHTC.comRIM.comMotorola.com
Mean and Median
Apple HTC RIM Motorola Industry0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
37,491
152,558
11,065 17,099
189,474
37,902
158,575
10,67518,958
151,825
MedianMean
Market Share
25%
33%
29%
13%
Market Share
AppleHTCRIMOther
www.ibisworld .com
Qualitative Data: Personal Interview (unaided)
• 4 – iPhone• 1 - Droid
Qualitative Data: Personal Interview
• Summary
– Positives: • Simplicity
– “…because of its simplicty and how its better than every other smart phone.”• Ease of Use
– “its got everything I do electronically in one place.”• Stylish
– “…the difference between the Droid and the iPhone is the quality of the product.”
– Negatives:• High Price
– “Its pretty expensive, I just can’t go out and get one right now.”• High Contract Price
Qualitative Data: Personal Interview
• Reasons to buy the iPhone– Simplicity– Quality of Product– Versatility
• Reasons to not buy the iPhone– Do not already have a smart phone– Price
• What can Apple do to better the product?– Make it more affordable
Qualitative Data: Focus Group• Summary
– Positives:• Easy of use• Celebrity Appeal• Brand Image• Geared for fun
– Negatives:• No 3G hotspots• No BBM• Boring shape• Susceptible to breaking
Qualitative Data: Focus Group
• What would you do to change the product?– Slide out Querty– Fear of breaking screen– Differentiate from Ipod Touch and iPad• “If you have an iPhone why would you buy an iPad, or if
you had an iPad why would you buy an iPhone…”• “I feel like they keep making the same products.”
Quantitative: Traditional and Online Surveys
• Sample Size Estimate– 2010 US population: 220,958,853
• Ages 18 –• Male and Female
– 95% Confidence Interval– +/- 5% Error
• Sample Size Needed: 384
www.census.govCreative Research Systems
Unaided Awareness
Apple Droid Blackberry Samsung0%
10%20%30%40%50%60%70%80%90%
100%90%
70%
50%
5%
Awareness
Awareness
Aided Awareness
iPhone Droid Blackberry92%
93%
94%
95%
96%
97%
98%
99%
100%100% 100%
95%
Percentage
Percentage
Have a Smart Phone
85%
15%
Currently Own a Smart Phone
YesNo
Psychographics
Artistic
Conservative
Use Cell Phones Often
Use Social Media Often
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
3
2.9
4.1
3.7
Average
Average
Constant Sum (Averages)
Constant Sum0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
15.5
32.5
16.5
23
11.5
AttractiveAffordableStylishEase of UseImage
iPhone Perceptions(1 being the highest, 5 being the lowest)
Prefered
Superior
Reasonably Priced
Easier
0 0.5 1 1.5 2 2.5 3 3.5
2.3
3.19
2.7
2.49
Average
Average
Rank Order (1 being the highest, 5 being the lowest)
Blackb
erry Curve
Droid Incre
dible
iPhone 4
Motorola Q
Samsu
ng Gala
xy0123456
3.55
2.36
1.27
4.82
3
Average
Average
The iPhone was the most preferred on paper with mean being 2.3
Average Expected Prices
• iPhone 4– $293.3
• iPhone 3G– $135.1
Brand Differentiator
Price
Ease of Use
Stylish
Fun
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
2.74
3.89
4.18
4.5
3.14
3.53
3.69
4.2
3.5
3.1
3.25
3
BlackberryDroidiPhone
Demographics: Gender & Age
Male Female0
2
4
6
8
10
12
14
16
1816
3
Responses
Responses
19 20 210
1
2
3
4
5
6
7
8
1
2
7
Age
Age
Majors Surveyed
• 2 Education Majors• 4 Business Majors• 1 Geology Major• 2 Engineering Majors• 1 Communications Major
Demographics: Income
0.21
0.31
0.41
Income
Under $15,000$15,000 - $24,999$25,000 - $34,999$50,000 - $74,999$75,000 - $99,999
Product Positioning Map
Conclusions and Implications
• The iPhone has outstanding brand awareness• General attitude is that its too expensive
• Believed price - $293• Actual price - $200
• Ranked significantly Higher in all other category motivators
Appendix
Interview 1 Interview 2 Interview 3
Interview 4 Interview 5 Focus Group
Appendix
• Online Survey– https
://new.qualtrics.com/ControlPanel/?ClientAction=ChangePage&s=UserSurveysSection&ss=&sss
• Smart Phone Survey Results• IRB Consent Form• Online Survey Report
Questions?