IPHONE FINAL PAPER.doc

Executive SummaryExecutive Summary ..

Apple’s iPhone competes in the wireless mobile industry, specifically with smartApple’s iPhone competes in the wireless mobile industry, specifically with smart

phone touch-pad devices. Its direct competitors are R.I.M’s Blackberry and Nokia’sphone touch-pad devices. Its direct competitors are R.I.M’s Blackberry and Nokia’s

‘Nokia E71’, each holding leading positions in the worldwide smart phone market.‘Nokia E71’, each holding leading positions in the worldwide smart phone market.

Currently, Nokia and R.I.M have acquired 43.7% and 16.6% of the market share,Currently, Nokia and R.I.M have acquired 43.7% and 16.6% of the market share,

respectively.respectively.11 Apple’s iPhone positioning in the market represents a meager 8.2% of Apple’s iPhone positioning in the market represents a meager 8.2% of

smart phone sales and we intend to increase iPhone’s share beyond that percentile.smart phone sales and we intend to increase iPhone’s share beyond that percentile.

Apple’s iPhone also currently lacks a specific target market, which could explain its lowApple’s iPhone also currently lacks a specific target market, which could explain its low

percentage in market share. However, a new communications strategy has beenpercentage in market share. However, a new communications strategy has been

designed to penetrate the market within a new target audience. designed to penetrate the market within a new target audience.

The campaign will be based around the iPhone’s enterprise attributes as we planThe campaign will be based around the iPhone’s enterprise attributes as we plan

to move into the corporate market, a large segment formerly ignored. The objective is toto move into the corporate market, a large segment formerly ignored. The objective is to

gain mind and market share in the Canadian corporate segment quickly. To increasegain mind and market share in the Canadian corporate segment quickly. To increase

iPhone’s share within that sector, the ad campaign will focus on its key enterpriseiPhone’s share within that sector, the ad campaign will focus on its key enterprise

features that will appeal to corporate buyers. features that will appeal to corporate buyers.

Situation AnalysisSituation Analysis

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Internal Factors: Internal Factors:

Product strengthsProduct strengths

1 http://www.palminfocenter.com/news/7026/worldwide-smartphone-sales-grew-37-last-quarter/

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Apple’s iPhone is the most revolutionary multi-touch user interface in the world.Apple’s iPhone is the most revolutionary multi-touch user interface in the world.

Its product attributes include: 3G wireless technology; GPS mapping; support forIts product attributes include: 3G wireless technology; GPS mapping; support for

enterprise features like Microsoft Exchange; secure access to corporate intranets withenterprise features like Microsoft Exchange; secure access to corporate intranets with

Cisco IPSec VPN and the largest wireless voice and data network. iPhoneCisco IPSec VPN and the largest wireless voice and data network. iPhone  deliversdelivers

secure access to company-wide resources,secure access to company-wide resources,  corporate intranets, a variety of software,corporate intranets, a variety of software,

over 25,000 customization applications, aover 25,000 customization applications, a touch-screen-only interface and simple touch-screen-only interface and simple

menusmenus. Web Clips give quick, one-tap access from the Home screen to important. Web Clips give quick, one-tap access from the Home screen to important

websites and web applications, while providing the fastest available connection to thewebsites and web applications, while providing the fastest available connection to the

web. Applications can be customized to any need, for example, to web. Applications can be customized to any need, for example, to bring Apple's I-Chatbring Apple's I-Chat

videoconferencing software to the iPhone or to create simple programs so salespeoplevideoconferencing software to the iPhone or to create simple programs so salespeople

can get the latest information on every customer they are scheduled to see that day.can get the latest information on every customer they are scheduled to see that day.

With its premium price of $633.00, the iPhone’s sufficiently improved handsetWith its premium price of $633.00, the iPhone’s sufficiently improved handset

encourages consumers to upgrade on clever applications, thereby providing consumersencourages consumers to upgrade on clever applications, thereby providing consumers

with optimal convenience and technological connection.with optimal convenience and technological connection.

Product WeaknessesProduct Weaknesses

Apple’s iPhone has been criticized for having faulty batteries, high prices and tooApple’s iPhone has been criticized for having faulty batteries, high prices and too

much focus on internal engineering instead of a specific market focus. This could explainmuch focus on internal engineering instead of a specific market focus. This could explain

why Apple’s iPhone does not hold a strong presence in the corporate sector likewhy Apple’s iPhone does not hold a strong presence in the corporate sector like

Blackberry does. Its enterprise infrastructure that was designed specifically forBlackberry does. Its enterprise infrastructure that was designed specifically for

corporations is not marketed to the business segment effectively. Therefore, Applecorporations is not marketed to the business segment effectively. Therefore, Apple

recognizes this and intends to change consumer perception by recognizes this and intends to change consumer perception by highlighting iPhone’shighlighting iPhone’s

enterprise-friendenterprise-friendly features. Apple believes that this new target market will respond toly features. Apple believes that this new target market will respond to

the multi-touch interface as it is the most advanced software platform ever for a mobilethe multi-touch interface as it is the most advanced software platform ever for a mobile

and could improve efficiency within corporations.and could improve efficiency within corporations.

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Company StrengthsCompany Strengths

Apple leads the IT industry with its innovativeness and engineering. Apple Inc.Apple leads the IT industry with its innovativeness and engineering. Apple Inc.

designs and manufactures their product assortment, i.e.: personal computers, software,designs and manufactures their product assortment, i.e.: personal computers, software,

peripherals, networking solutions, music players and iPhones. Their short and long termperipherals, networking solutions, music players and iPhones. Their short and long term

debt equal zero and their net income for the year from Sept.29/07 to Sept.29/08 wasdebt equal zero and their net income for the year from Sept.29/07 to Sept.29/08 was

$4,834,000,000.$4,834,000,000.22 Their longevity in the IT industry has set new industry standards inTheir longevity in the IT industry has set new industry standards in

technological advancements. In fact, technological advancements. In fact, Apple’s iPhone “shows that most of its smart phoneApple’s iPhone “shows that most of its smart phone

rivals, such as BlackBerry maker Research In Motion, Android maker Google andrivals, such as BlackBerry maker Research In Motion, Android maker Google and

Microsoft, are still far behind in mobile software.”Microsoft, are still far behind in mobile software.”33 Furthermore, their consistent focus on Furthermore, their consistent focus on

the future of technology has proven to be a significant advantage for the company andthe future of technology has proven to be a significant advantage for the company and

gives competitors something to contend with. gives competitors something to contend with.

Company WeaknessesCompany Weaknesses

Apple has been criticized by some environmental organizations for not being aApple has been criticized by some environmental organizations for not being a

leader in removing toxic chemicals from its new products, and for not aggressively orleader in removing toxic chemicals from its new products, and for not aggressively or

properly recycling its old products. Stakeholders have criticized the amounts of chemicalproperly recycling its old products. Stakeholders have criticized the amounts of chemical

toxins found in Apple products; therefore the company stated that it will “toxins found in Apple products; therefore the company stated that it will “completelycompletely

eliminate the use of arsenic in all of its displays by the end of 2008 and plans to reduceeliminate the use of arsenic in all of its displays by the end of 2008 and plans to reduce

and eventually eliminate the use of mercury by transitioning to LED backlighting for alland eventually eliminate the use of mercury by transitioning to LED backlighting for all

displays when technically and economically feasible.”displays when technically and economically feasible.”44 The recycling of old products has The recycling of old products has

only been recently introduced in the past decade, suggesting that the company may notonly been recently introduced in the past decade, suggesting that the company may not

2 http://finance.yahoo.com/q/is?s=AAPL&annual 3 http://adage.com/digital/article?article_id=135325 4 http://www.apple.com/hotnews/agreenerapple/

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be perceived as environmentally friendly amongst consumers. Apple recognizes thesebe perceived as environmentally friendly amongst consumers. Apple recognizes these

issues and plans to apply their talents towards becoming an environmental leader and aissues and plans to apply their talents towards becoming an environmental leader and a

‘greener’ Apple. ‘greener’ Apple.

External Factors:External Factors:

ThreatsThreats

Apple is competing in a highly competitive, fast-moving industry as technologicalApple is competing in a highly competitive, fast-moving industry as technological

advancements are constantly changing. High product substitutions from competitors (i.e.advancements are constantly changing. High product substitutions from competitors (i.e.

Blackberry and Nokia) effect demand as Apple’s products are priced at a premium.Blackberry and Nokia) effect demand as Apple’s products are priced at a premium.

Therefore, as price rises, consumers are more apt to substitute away from higher pricedTherefore, as price rises, consumers are more apt to substitute away from higher priced

products, choosing less costly alternatives. These factors could negatively affect Apple,products, choosing less costly alternatives. These factors could negatively affect Apple,

especially during economic downturns or uncertainties. Another issue is how Apple’sespecially during economic downturns or uncertainties. Another issue is how Apple’s

iPhone is perceived amongst consumers as certain ciPhone is perceived amongst consumers as certain companies may not see this productompanies may not see this product

as being compatible with their software. However, Apple also sees this as an opportunityas being compatible with their software. However, Apple also sees this as an opportunity

to demonstrate how the iPhone’s corporate infrastructure can, in fact be compatible withto demonstrate how the iPhone’s corporate infrastructure can, in fact be compatible with

any organization.any organization.

OpportunitiesOpportunities

Apple’s iPhone is a unique product relative to other wireless smart phones. ItsApple’s iPhone is a unique product relative to other wireless smart phones. Its

creative applications leverage the multi-touch user interface with its encrypted access tocreative applications leverage the multi-touch user interface with its encrypted access to

private corporate networks. The new enterprise features have created a competitiveprivate corporate networks. The new enterprise features have created a competitive

advantage in respect to technological customization and convenience, giving Apple anadvantage in respect to technological customization and convenience, giving Apple an

opportunity to target a new customer base. opportunity to target a new customer base.

Recently, Apple has undertaken the initiative to become an environmental leaderRecently, Apple has undertaken the initiative to become an environmental leader

and become a ‘greener’ Apple. Consequently, a cause-related marketing approachand become a ‘greener’ Apple. Consequently, a cause-related marketing approach

would best facilitate this goal as we plan to partner Apple with the David Suzukiwould best facilitate this goal as we plan to partner Apple with the David Suzuki

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Foundation. Upon the purchase of an iPhone, 5% of monthly sales will go towards thisFoundation. Upon the purchase of an iPhone, 5% of monthly sales will go towards this

foundation. This partnership will increase iPhone’s sales by aligning Apple with afoundation. This partnership will increase iPhone’s sales by aligning Apple with a

charitable cause to influence buying decisions amongst the corporate sector, a marketcharitable cause to influence buying decisions amongst the corporate sector, a market

that was previously ignored. that was previously ignored.

Communication Tools Communication Tools ..

Current Current

Apple currently uses many communication tools to target their customers such asApple currently uses many communication tools to target their customers such as

buzz, television, internet and print ads. Positive buzz is one of the strongestbuzz, television, internet and print ads. Positive buzz is one of the strongest

communication tools that a company could acquire as it creates discussion about thecommunication tools that a company could acquire as it creates discussion about the

product, i.e.: word of mouth. Comments such as “the latest iPhone 3G phenomenon isproduct, i.e.: word of mouth. Comments such as “the latest iPhone 3G phenomenon is

definitely a great example of Steve Job’s pioneering vision, and the total package,definitely a great example of Steve Job’s pioneering vision, and the total package,

including the pricing and the developer platform strategy, is very impressive”including the pricing and the developer platform strategy, is very impressive”55 illustrate illustrate

ideal reviews from consumers as this type of buzz could positively impact buyingideal reviews from consumers as this type of buzz could positively impact buying

decisions or generate awareness. decisions or generate awareness.

Television and internet ads are also very well-known and memorable as theyTelevision and internet ads are also very well-known and memorable as they

demonstrate the ease of usage; variety of choice; animation technology, large storagedemonstrate the ease of usage; variety of choice; animation technology, large storage

andand creative applications creative applications. Apple also uses catchy indie-rock music to draw attention to. Apple also uses catchy indie-rock music to draw attention to

iPhone’s colorful features, emphasizing the creativity of the touch-pad device. IniPhone’s colorful features, emphasizing the creativity of the touch-pad device. In

addition, online chatter and internet ads for iPhone have dominated in social media. Inaddition, online chatter and internet ads for iPhone have dominated in social media. In

fact, a social media services provider “measured conversation volumes fact, a social media services provider “measured conversation volumes around 2,000around 2,000

brands on a variety of social-networking, blogging and micro-blogging sites”brands on a variety of social-networking, blogging and micro-blogging sites”66 and the and the

iPhone was the most mentioned brand. Therefore, this form of media has proven toiPhone was the most mentioned brand. Therefore, this form of media has proven to

5 http://www.bitsandbuzz.com/article/iphone-3g-1-out-of-3/ 6 http://adage.com/digitalnext/post?article_id=134180

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be successful in creating awareness about iPhone’s advanced software. The lastbe successful in creating awareness about iPhone’s advanced software. The last

form of media used by Apple is print ads, featured in various magazines throughoutform of media used by Apple is print ads, featured in various magazines throughout

North America. North America.

FutureFuture

Media tools such as television, print ads, internet and buzz will still be used forMedia tools such as television, print ads, internet and buzz will still be used for

future advertising initiatives. However, a new approach will be used to changefuture advertising initiatives. However, a new approach will be used to change

consumer’s perceived notion of the iPhone. Since our main objective is to increase mindconsumer’s perceived notion of the iPhone. Since our main objective is to increase mind

and market share within the corporate sector quickly, advertisements will be moreand market share within the corporate sector quickly, advertisements will be more

enterprise-friendly to appeal to corporate-tech buyers. The main message conveyed inenterprise-friendly to appeal to corporate-tech buyers. The main message conveyed in

the ad campaign is “iPhone your business” and “A touch of customization” to emphasizethe ad campaign is “iPhone your business” and “A touch of customization” to emphasize

how new enterprise features can cater to any business need. how new enterprise features can cater to any business need.

Television commercials will be featured on business networks. Print ads will beTelevision commercials will be featured on business networks. Print ads will be

featured in various business magazines to reach the target audience. Internet ads will befeatured in various business magazines to reach the target audience. Internet ads will be

strategically featured on various business websites that are commonly viewed bystrategically featured on various business websites that are commonly viewed by

corporate employees. Two new types of media are to be included: public relations, whichcorporate employees. Two new types of media are to be included: public relations, which

will incorporate Apple’s eco-friendly initiatives and personal selling, which will enhancewill incorporate Apple’s eco-friendly initiatives and personal selling, which will enhance

buyer-seller relations and informative seminars. In using these mediums, thebuyer-seller relations and informative seminars. In using these mediums, the

aforementioned positive buzz should also encourage and support the promotionalaforementioned positive buzz should also encourage and support the promotional

campaign; thereby setting Apple in a better market position that will appeal to corporatecampaign; thereby setting Apple in a better market position that will appeal to corporate

buyers.buyers.

Promotional Opportunity Analysis Promotional Opportunity Analysis

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Competitive AnalysisCompetitive Analysis

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The Apple 3G iPhone was launched on July 11, 2008; it was brought in to directlyThe Apple 3G iPhone was launched on July 11, 2008; it was brought in to directly

compete in the Smartphone class of mobile phones. Since its launch the iPhone hascompete in the Smartphone class of mobile phones. Since its launch the iPhone has

continued to grow, allowing it to compete with Nokia and Blackberry. Nokia began tocontinued to grow, allowing it to compete with Nokia and Blackberry. Nokia began to

produce the first line of Smartphone’s in 1966, and the produce the first line of Smartphone’s in 1966, and the Nokia 9000Nokia 9000 dominated the dominated the

market until Blackberry released the 5810. It was released on March 4, 2002. Evermarket until Blackberry released the 5810. It was released on March 4, 2002. Ever

since, there has been a battle for the market (see Figure A). A comparison of thesince, there has been a battle for the market (see Figure A). A comparison of the

strengths and weaknesses amongst Apple’s two main competitors in the smart phonestrengths and weaknesses amongst Apple’s two main competitors in the smart phone

industry (i.e.: Nokia and Blackberry) are illustrated below. industry (i.e.: Nokia and Blackberry) are illustrated below.

Figure A

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Blackberry Storm:Blackberry Storm:

Strengths:Strengths: improved web browser; large memory improved web browser; large memory--enterprise e-mail integration;enterprise e-mail integration;

Microsoft Office document editing capabilities; High Brand Awareness; long lastingMicrosoft Office document editing capabilities; High Brand Awareness; long lasting

battery; high security; more multimedia features. battery; high security; more multimedia features.

Weaknesses:Weaknesses: usabilityusability issues; difficulty in typing; many technical problems; lack of issues; difficulty in typing; many technical problems; lack of

Wi-Fi Access; lack of frontal camera.Wi-Fi Access; lack of frontal camera.

The Blackberry Storm was created to directly take market share away from theThe Blackberry Storm was created to directly take market share away from the

Apple iPhone. With better music downloading capabilities, a touch screen, and a movieApple iPhone. With better music downloading capabilities, a touch screen, and a movie

player, Blackberry realized that they were missing out on a large portion of theplayer, Blackberry realized that they were missing out on a large portion of the

Smartphone market as they solely focused on business professionals. The Storm wasSmartphone market as they solely focused on business professionals. The Storm was

brought to the market with much hype, even hiring John Krasinski from the hit show brought to the market with much hype, even hiring John Krasinski from the hit show TheThe

Office Office to be a spokesperson. This hype however could not be lived up to as the productto be a spokesperson. This hype however could not be lived up to as the product

was seen to be flawed. Many reviewers said it was rushed into production and lackedwas seen to be flawed. Many reviewers said it was rushed into production and lacked

the technical ability because of the rush. Many glitches were found and these hurt thethe technical ability because of the rush. Many glitches were found and these hurt the

original sales of the phone. Updates have been issued to fix glitches but the public hasoriginal sales of the phone. Updates have been issued to fix glitches but the public has

still not perceived the product as reliable. In fact, sales have decreased over the paststill not perceived the product as reliable. In fact, sales have decreased over the past

year and Blackberry is currently working on a solution to the problems facing the Storm.year and Blackberry is currently working on a solution to the problems facing the Storm.

Nokia E71 Nokia E71

Strengths:Strengths: slim design; excellent keypad; great connectivity; positive buzz; votedslim design; excellent keypad; great connectivity; positive buzz; voted best phone Nokia has made; best D-Padbest phone Nokia has made; best D-Pad

Weaknesses:Weaknesses: poor camera quality; no touch screen; small screen with bad quality; poor camera quality; no touch screen; small screen with bad quality; Sluggish Sales; poor style; little outsider recognition. Sluggish Sales; poor style; little outsider recognition.

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The Nokia E71 is the newest Smartphone to be released by the mobile phoneThe Nokia E71 is the newest Smartphone to be released by the mobile phone

giant. Although all the reviews of this phone were positive, sales in North America havegiant. Although all the reviews of this phone were positive, sales in North America have

been sluggish with many business people not even considering it as an alternative to thebeen sluggish with many business people not even considering it as an alternative to the

Blackberry. Its main downfall is that it lacks some of the capabilities that the BlackberryBlackberry. Its main downfall is that it lacks some of the capabilities that the Blackberry

and iPhone possess like multimedia functions, touch screen, carrier support and brandand iPhone possess like multimedia functions, touch screen, carrier support and brand

recognition. While this phone has huge sales in Asia the transition has been slower inrecognition. While this phone has huge sales in Asia the transition has been slower in

Canada. Nokia is trying to fight this and has invested heavily in marketing to establishCanada. Nokia is trying to fight this and has invested heavily in marketing to establish

themselves as leaders in the industry.themselves as leaders in the industry.

Opportunity AnalysisOpportunity Analysis

Apple iPhoneApple iPhone

Strengths:Strengths: ease of use; integrated iPod; high margins; industry favorite; highease of use; integrated iPod; high margins; industry favorite; high

visibility; customization applications; new enterprise features. visibility; customization applications; new enterprise features.

Weaknesses:Weaknesses: touchy screen; poor camera; newcomer to industry.touchy screen; poor camera; newcomer to industry.

Opportunities:Opportunities: enter corporate market; market gap in competition; initiative toenter corporate market; market gap in competition; initiative to

become become an environmental leader in the IT industry; proposition of an environmental leader in the IT industry; proposition of

a partnership a partnership with a cause with a cause

Threats:Threats: Direct and indirect competition in the smart phone market; economic Direct and indirect competition in the smart phone market; economic

uncertainties; recessions; highly competitive & fast-moving uncertainties; recessions; highly competitive & fast-moving

industry; industry; high product substitution; price-sensitive consumers. high product substitution; price-sensitive consumers.

The marketing of Apple’s iPhone is not clearly articulated to a specific targetThe marketing of Apple’s iPhone is not clearly articulated to a specific target

market. When analyzing opportunities, Apple certainly has the potential to namemarket. When analyzing opportunities, Apple certainly has the potential to name

additional benefits that are enterprise-friendly to target the corporate sector. Whileadditional benefits that are enterprise-friendly to target the corporate sector. While

Blackberry owns the majority of market share in the corporate world, Apple could also beBlackberry owns the majority of market share in the corporate world, Apple could also be

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a main competitor in this market by emphasizing one key aspect: customization of overa main competitor in this market by emphasizing one key aspect: customization of over

25,000 applications. Applications could be made for any business venture needed,25,000 applications. Applications could be made for any business venture needed,

whether it be tracking sales, following a large number of stocks or storing large files ofwhether it be tracking sales, following a large number of stocks or storing large files of

client’s information. The iPhone offers the most customization of any Smartphone in theclient’s information. The iPhone offers the most customization of any Smartphone in the

market and while it is shown that one can play games or listen to music, it wasmarket and while it is shown that one can play games or listen to music, it was

interesting to note that business customization was not mentioned. The iPhoneinteresting to note that business customization was not mentioned. The iPhone

campaign recognizes this and plans to incorporate the new enterprise features in thecampaign recognizes this and plans to incorporate the new enterprise features in the

overall advertising campaign to appeal to corporate buyers and gain market share withinoverall advertising campaign to appeal to corporate buyers and gain market share within

this sector. this sector.

Target Market AnalysisTarget Market Analysis

The target market is going to be business people that would benefit from beingThe target market is going to be business people that would benefit from being

connected to the office from all over the world; this includes the corporate segment, i.e.:connected to the office from all over the world; this includes the corporate segment, i.e.:

financial institutions, sales representatives, big business, corporate employees, etc) andfinancial institutions, sales representatives, big business, corporate employees, etc) and

more specifically, Chief Information Officers, as they decide what technology to buy formore specifically, Chief Information Officers, as they decide what technology to buy for

corporations. This sector would most benefit from the iPhone’s new enterprise featurescorporations. This sector would most benefit from the iPhone’s new enterprise features

because the applications can be customized to satisfy any business need; thusbecause the applications can be customized to satisfy any business need; thus

marketing initiatives will be focused on the identified target market. marketing initiatives will be focused on the identified target market.

The advertisements will be highlighting 3G wireless technology, enterpriseThe advertisements will be highlighting 3G wireless technology, enterprise

features like Microsoft Exchange; secure access to corporate intranets. Apple’s iPhonefeatures like Microsoft Exchange; secure access to corporate intranets. Apple’s iPhone

campaign believes that the transition into the corporate market will be a successful onecampaign believes that the transition into the corporate market will be a successful one

as the iPhone is compatible with any organization, especially if business users currentlyas the iPhone is compatible with any organization, especially if business users currently

operate on Mac’s. The iPhone advertising campaign believes that the ease of use andoperate on Mac’s. The iPhone advertising campaign believes that the ease of use and

the customization apps will appeal to corporate-tech buyers and hopes to secure athe customization apps will appeal to corporate-tech buyers and hopes to secure a

strong market position in the corporate world. With a new advertising theme focused onstrong market position in the corporate world. With a new advertising theme focused on

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customization for organizations, iPhone’s campaign hopes to create positive buzz andcustomization for organizations, iPhone’s campaign hopes to create positive buzz and

consumer preference from corporate buyers and CIO’s in hopes that approve the iPhoneconsumer preference from corporate buyers and CIO’s in hopes that approve the iPhone

for employee usage.for employee usage.

Consumer Analysis: Consumer Analysis:

Current ConsumersCurrent Consumers

Apple’s iPhone current consumers are tech-savvy wireless mobile users who areApple’s iPhone current consumers are tech-savvy wireless mobile users who are

interested in the newest type of communication that technology has to offer. Mostinterested in the newest type of communication that technology has to offer. Most

generation Y’s and Z’s purchase these wireless smart phones as these demographicsgeneration Y’s and Z’s purchase these wireless smart phones as these demographics

are are active consumers who are very connected and technologically inclined. The majorityactive consumers who are very connected and technologically inclined. The majority

of these demographics are constantly connected through the use of technology, asof these demographics are constantly connected through the use of technology, as

today’s norm is a world of ubiquitous today’s norm is a world of ubiquitous digitaldigital communication connectivity. Current iPhone communication connectivity. Current iPhone

consumers not only understand the multi-function device, but also consider the productconsumers not only understand the multi-function device, but also consider the product

to be ‘cool’ or ‘hip’ with respect to their social groups. to be ‘cool’ or ‘hip’ with respect to their social groups.

FutureFuture ConsumersConsumers

The main objective is to increase mind and market share within the corporate The main objective is to increase mind and market share within the corporate

sector quickly. Therefore, the iPhone ad campaign will target the corporate segment, i.e.:sector quickly. Therefore, the iPhone ad campaign will target the corporate segment, i.e.:

financial institutions, sales representatives, big business, corporate employees, etc) and financial institutions, sales representatives, big business, corporate employees, etc) and

more specifically, Chief Information Officers, as they decide what technology to buy for more specifically, Chief Information Officers, as they decide what technology to buy for

corporations. Since corporate buyers may not be aware of iPhone’s new enterprise corporations. Since corporate buyers may not be aware of iPhone’s new enterprise

features specifically designed for business use, promotional tools and mediums should features specifically designed for business use, promotional tools and mediums should

aid in reaching the target audience.aid in reaching the target audience.

Positioning AnalysisPositioning Analysis

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The positioning of Apple’s 3.0 iPhones is The positioning of Apple’s 3.0 iPhones is an aggressive business and marketingan aggressive business and marketing

strategy designed to continue stimulating consumer investment. The upgrades andstrategy designed to continue stimulating consumer investment. The upgrades and

applications encourage users to purchase additional applications and clever accessoriesapplications encourage users to purchase additional applications and clever accessories

that are mainly used as a social networking tool, gaming machine, web-browser and/orthat are mainly used as a social networking tool, gaming machine, web-browser and/or

music player. Both R.I.M and Nokia are competing directly with Apple; however theirmusic player. Both R.I.M and Nokia are competing directly with Apple; however their

smart phones are marketed to corporations. Apple’s iPhone is positioned to a more tech-smart phones are marketed to corporations. Apple’s iPhone is positioned to a more tech-

savvy mobile user who is looking for the latest technology that provides optimalsavvy mobile user who is looking for the latest technology that provides optimal

connection and convenience. However, tconnection and convenience. However, the advertising campaign will position thehe advertising campaign will position the

iPhone to target the corporate sector, an untapped market previously ignored by Apple. iPhone to target the corporate sector, an untapped market previously ignored by Apple.

Communication ObjectivesCommunication Objectives

The main communication objective for Apple’s iPhone is to increase marketThe main communication objective for Apple’s iPhone is to increase market

share within the corporate sector quickly. While current consumers consider the iPhoneshare within the corporate sector quickly. While current consumers consider the iPhone

to be technologically ‘hip’ or ‘cool’, we are hoping to change perceived notions byto be technologically ‘hip’ or ‘cool’, we are hoping to change perceived notions by

promoting the new, revolutionary enterprise features specifically designed forpromoting the new, revolutionary enterprise features specifically designed for

corporations. Apple is hoping to build credibility with corporate-tech buyers bycorporations. Apple is hoping to build credibility with corporate-tech buyers by

emphasizing how its model caters to their business needs. In doing so, Apple hopes toemphasizing how its model caters to their business needs. In doing so, Apple hopes to

be a main competitor in the corporate segment, showing businesses that its company-be a main competitor in the corporate segment, showing businesses that its company-

wide resources and encrypted access applications are compatible with any organization.wide resources and encrypted access applications are compatible with any organization.

Apple is planning to focus on this unique product, emphasizing its multi-touchApple is planning to focus on this unique product, emphasizing its multi-touch

user interface with access to private corporate networks. B2B personal selling will satisfyuser interface with access to private corporate networks. B2B personal selling will satisfy

this goal by emphasizing iPhone’s new enterprise features to the corporate sector.this goal by emphasizing iPhone’s new enterprise features to the corporate sector.

Through personal-selling and informational sessions, Apple believes the iPhone willThrough personal-selling and informational sessions, Apple believes the iPhone will

transfer into the corporate market smoothly. transfer into the corporate market smoothly.

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This new annual campaign is projected to increase sales within the corporateThis new annual campaign is projected to increase sales within the corporate

sector. As of now, Apple iPhone sales in the last quarter achieved an 88% growth rate,sector. As of now, Apple iPhone sales in the last quarter achieved an 88% growth rate,

accruing $13.7 million for the year. Therefore, with new promotional initiatives and a newaccruing $13.7 million for the year. Therefore, with new promotional initiatives and a new

target market, Apple plans to achieve 90% growth rate in the same quarter next year.target market, Apple plans to achieve 90% growth rate in the same quarter next year.

Apple believes the iPhone will make a successful transition into the corporate market, asApple believes the iPhone will make a successful transition into the corporate market, as

optimal growth exists in that segment. optimal growth exists in that segment.

Budget AnalysisBudget Analysis

The budget will consist of the monetary outputs on television ads, magazine andThe budget will consist of the monetary outputs on television ads, magazine and

newspaper, outdoor, online and personal selling. Print ads featured in magazines arenewspaper, outdoor, online and personal selling. Print ads featured in magazines are

more heavily weighted as they have a higher recall rate, reach the selected targetmore heavily weighted as they have a higher recall rate, reach the selected target

audience and have a longer shelf life. In order to run a vast and efficient ad campaign,audience and have a longer shelf life. In order to run a vast and efficient ad campaign,

we will need a budget of 25 million. This figure is very reasonable, especially sincewe will need a budget of 25 million. This figure is very reasonable, especially since

Apple’s total advertising for last year was $483 million. In fact, the iPhone represented aApple’s total advertising for last year was $483 million. In fact, the iPhone represented a

considerable amount of total sales ($13.7 M); therefore it is foreseeable that 25 millionconsiderable amount of total sales ($13.7 M); therefore it is foreseeable that 25 million

could be put towards the iPhone campaign. For a detailed view, refer to Figure A forcould be put towards the iPhone campaign. For a detailed view, refer to Figure A for

expenditures.expenditures.

Figure AFigure A

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Primary Marketing StrategyPrimary Marketing Strategy ..

Target MarketTarget Market

The desired target market for this campaign is the corporate segment, i.e.:The desired target market for this campaign is the corporate segment, i.e.:

financial institutions, sales representatives, big business, corporate employees, etc) andfinancial institutions, sales representatives, big business, corporate employees, etc) and

more specifically, Chief Information Officers, as they decide what technology to buy formore specifically, Chief Information Officers, as they decide what technology to buy for

corporations. The focus will be on how iPhone’s new enterprise features can becorporations. The focus will be on how iPhone’s new enterprise features can be

customized to satisfy any business need and how this touch-pad device is the way of thecustomized to satisfy any business need and how this touch-pad device is the way of the

future. The advertisements will be highlighting 3G wireless technology, enterprisefuture. The advertisements will be highlighting 3G wireless technology, enterprise

features like Microsoft Exchange; secure access to corporate intranets. Apple’s iPhonefeatures like Microsoft Exchange; secure access to corporate intranets. Apple’s iPhone

campaign believes that the transition into the corporate market will be a successful onecampaign believes that the transition into the corporate market will be a successful one

14

as the iPhone is compatible with any organization, especially if business users currentlyas the iPhone is compatible with any organization, especially if business users currently

operate on Mac’s. operate on Mac’s.

Research proves that current buying trends amongst the corporate sector areResearch proves that current buying trends amongst the corporate sector are

more apt to purchase R.I.M’s Blackberry for business use. Therefore, Apple sees anmore apt to purchase R.I.M’s Blackberry for business use. Therefore, Apple sees an

opportunity to grow in this segment as the iPhone’s enterprise-friendly applications areopportunity to grow in this segment as the iPhone’s enterprise-friendly applications are

much more compatible to any organization’s needs or wants. Although this move into themuch more compatible to any organization’s needs or wants. Although this move into the

corporate segment is a new venture for the company, its new multi-touch interface usercorporate segment is a new venture for the company, its new multi-touch interface user

has the potential to secure a large portion of the corporate market share as Apple ishas the potential to secure a large portion of the corporate market share as Apple is

constantly setting new industry standards. By generating awareness of the enterprise-constantly setting new industry standards. By generating awareness of the enterprise-

friendly device, corporate-tech buyers may be more apt to purchase the iPhone forfriendly device, corporate-tech buyers may be more apt to purchase the iPhone for

employee usage. employee usage.

Communications ScheduleCommunications Schedule

The communications plan will use a continuous and pulsating schedule meaningThe communications plan will use a continuous and pulsating schedule meaning

that it will advertise continuously throughout the campaign, with increased advertisingthat it will advertise continuously throughout the campaign, with increased advertising

during Apple’s environmental push in April. The campaign acknowledges this peakduring Apple’s environmental push in April. The campaign acknowledges this peak

season to be at the beginning of April, leading up to ‘Earth Day’ on April 22season to be at the beginning of April, leading up to ‘Earth Day’ on April 22ndnd. For a. For a

preview of the communications schedule, refer to Exhibit 9.preview of the communications schedule, refer to Exhibit 9.

During this eco-friendly push, tailored advertisements will be used to link theDuring this eco-friendly push, tailored advertisements will be used to link the

campaign to Apple’s environmental initiatives. For a preview of Apple’s ‘green’campaign to Apple’s environmental initiatives. For a preview of Apple’s ‘green’

advertisements, refer to Exhibits 2 and 5. These advertisements will link the enterpriseadvertisements, refer to Exhibits 2 and 5. These advertisements will link the enterprise

benefits of the iPhone with an overall eco-friendly theme for our target audience duringbenefits of the iPhone with an overall eco-friendly theme for our target audience during

the month of April. Post-‘Earth Day’ advertisements will also have a green theme, linkingthe month of April. Post-‘Earth Day’ advertisements will also have a green theme, linking

Apple’s green initiative to our cause-related marketing approach. At the bottom of theseApple’s green initiative to our cause-related marketing approach. At the bottom of these

ads, details regarding the partnership between Apple with the David Suzuki Foundationads, details regarding the partnership between Apple with the David Suzuki Foundation

15

will be featured. Upon the purchase of an IPhone, 5% of monthly sales will go towardswill be featured. Upon the purchase of an IPhone, 5% of monthly sales will go towards

this foundation. this foundation.

Furthermore, during the unspecified months of iPhone’s campaign,Furthermore, during the unspecified months of iPhone’s campaign,

advertisements will continue to run in hopes of increasing sales amongst CIO’s andadvertisements will continue to run in hopes of increasing sales amongst CIO’s and

increasing market share within the corporate segment. increasing market share within the corporate segment.

Implementation PlanImplementation Plan

The iPhone campaign plans to run in five specific mediums: print advertisements,The iPhone campaign plans to run in five specific mediums: print advertisements,

television, public relations, personal selling and outdoor advertising. These forms oftelevision, public relations, personal selling and outdoor advertising. These forms of

media are the optimal approach, as various advertisements will be strategically placed tomedia are the optimal approach, as various advertisements will be strategically placed to

reach the target market. Print advertisements have a higher recall rate and reach thereach the target market. Print advertisements have a higher recall rate and reach the

selected target audience much better than television. Therefore, print ads will beselected target audience much better than television. Therefore, print ads will be

weighted more heavily than television for this campaign. In addition, pubic relations willweighted more heavily than television for this campaign. In addition, pubic relations will

be used to promote Apple’s green movement towards becoming more eco-friendly; whilebe used to promote Apple’s green movement towards becoming more eco-friendly; while

personal selling will offer instructional demonstrations and encourage repeat businesspersonal selling will offer instructional demonstrations and encourage repeat business

through visits to various organizations. Outdoor advertising will be featured on billboardsthrough visits to various organizations. Outdoor advertising will be featured on billboards

and public transportation.and public transportation.

“iPhone Your Business” and “A Touch of Customization” are the two main iPhone“iPhone Your Business” and “A Touch of Customization” are the two main iPhone

slogans that will be displayed on all television and print advertisements. These slogansslogans that will be displayed on all television and print advertisements. These slogans

will create a consistent, sound message throughout; in hopes of obtaining a memorablewill create a consistent, sound message throughout; in hopes of obtaining a memorable

campaign. Overall, numerous print ads will be produced, two television commercials willcampaign. Overall, numerous print ads will be produced, two television commercials will

be created, PR initiatives will be featured in product packaging, personal selling willbe created, PR initiatives will be featured in product packaging, personal selling will

occur with CIO’s and eighteen billboards will be produced in large Canadian cities. occur with CIO’s and eighteen billboards will be produced in large Canadian cities.

The theme of the campaign is based on iPhone’s overall message: how theThe theme of the campaign is based on iPhone’s overall message: how the

iPhone can customize to any business needs; therefore key product attributes areiPhone can customize to any business needs; therefore key product attributes are

16

shown to appeal to corporate buyers. The ads will also include a conative messageshown to appeal to corporate buyers. The ads will also include a conative message

strategy to induce action and promotional support through Apple’s eco-friendly initiatives.strategy to induce action and promotional support through Apple’s eco-friendly initiatives.

Certain ads are focused on Apple’s ‘green’ movement to support their leadership inCertain ads are focused on Apple’s ‘green’ movement to support their leadership in

removing toxic chemicals from its new products, and properly recycling its old products.removing toxic chemicals from its new products, and properly recycling its old products.

This conative message strategy is essential for this campaign as it will promote supportThis conative message strategy is essential for this campaign as it will promote support

for a cause, while also highlighting the benefits of enterprise features. for a cause, while also highlighting the benefits of enterprise features.

In additionIn addition, online advertisements will be featured on the following websites:nline advertisements will be featured on the following websites:

‘Toronto stock exchange’, ‘‘Toronto stock exchange’, ‘Chartered Accountants of Canada’, ‘Financial Management’Chartered Accountants of Canada’, ‘Financial Management’

and ‘Canadian Professional Sales Association’. These specific websites were chosen asand ‘Canadian Professional Sales Association’. These specific websites were chosen as

they will reach the they will reach the corporate segment, (i.e.: financial institutions, sales representatives,corporate segment, (i.e.: financial institutions, sales representatives,

big business, corporate employees, etc) and more specifically, Chief Informationbig business, corporate employees, etc) and more specifically, Chief Information

Officers, as they decide what technology to buy for corporations. Officers, as they decide what technology to buy for corporations.

Ten million views have been purchased on each aforementioned website,Ten million views have been purchased on each aforementioned website,

resulting in a total cost of $600,000. resulting in a total cost of $600,000. Online ads are a valuable part of the advertisingOnline ads are a valuable part of the advertising

campaign as this initiative creates awareness amongst forty million new customers; acampaign as this initiative creates awareness amongst forty million new customers; a

small expense for such large exposure.small expense for such large exposure. Since these websites are viewed quiteSince these websites are viewed quite

frequently, a continuous schedule will be used to advertise the iPhone. The iPhone adsfrequently, a continuous schedule will be used to advertise the iPhone. The iPhone ads

will be strategically placed on the top or sides of the websites, drawing attention to itswill be strategically placed on the top or sides of the websites, drawing attention to its

enterprise-friendly attributes. This form of advertising is cost-effective, quick and is doneenterprise-friendly attributes. This form of advertising is cost-effective, quick and is done

with ease when introducing or changing new product information. with ease when introducing or changing new product information.

17

Print AdvertisementsPrint Advertisements

Apple’s iPhone ad campaign will design and implement numerous print ads. TheApple’s iPhone ad campaign will design and implement numerous print ads. The

ads will show iPhone’s customization applications, along with references to using eco-ads will show iPhone’s customization applications, along with references to using eco-

friendly products such as Apple’s. Print ads will be featured in magazines andfriendly products such as Apple’s. Print ads will be featured in magazines and

newspapers, thus having a better chance at reaching our target market of certainnewspapers, thus having a better chance at reaching our target market of certain

business professionals. The chosen magazines are: MacLean’s, Canadian Business andbusiness professionals. The chosen magazines are: MacLean’s, Canadian Business and

Strategy magazines; mainly because they had the most reach thus being the mostStrategy magazines; mainly because they had the most reach thus being the most

effective. Each magazine will include print ads of the iPhone’s customizationeffective. Each magazine will include print ads of the iPhone’s customization

applications, as well as references to Apple’s approach to becoming more eco-friendly.applications, as well as references to Apple’s approach to becoming more eco-friendly.

MacLean’s is quite popular amongst business readers, with a readership of 2.5MacLean’s is quite popular amongst business readers, with a readership of 2.5

million. It is one of the largest magazines in Canada and represents a vast amount of themillion. It is one of the largest magazines in Canada and represents a vast amount of the

target audience. The iPhone ads will be featured by region, thus allowing for increasedtarget audience. The iPhone ads will be featured by region, thus allowing for increased

advertising in metropolitan areas, such as Ontario and Alberta. Ads will also be featuredadvertising in metropolitan areas, such as Ontario and Alberta. Ads will also be featured

in three full sized, color ads, each containing 52 printings for a total of 4,979,520$.in three full sized, color ads, each containing 52 printings for a total of 4,979,520$. 77

Refer to Exhibit 1 for an outline on total costs of print ads. Refer to Exhibit 1 for an outline on total costs of print ads.

The Canadian Business is the secondary source of marketing as it has aThe Canadian Business is the secondary source of marketing as it has a

readership of 985,000 and also aids in reaching the target market. iPhone print ads willreadership of 985,000 and also aids in reaching the target market. iPhone print ads will

be featured on three full sized color ads, eighteen times a year. Total costs forbe featured on three full sized color ads, eighteen times a year. Total costs for

advertising in this magazine amount to advertising in this magazine amount to 817,830$. Furthermore, the Strategy Magazine is817,830$. Furthermore, the Strategy Magazine is

a third source of advertising as it is a new up and coming magazine focused at younga third source of advertising as it is a new up and coming magazine focused at young

professionals entering the business world. Since this magazine is fairly new, ads areprofessionals entering the business world. Since this magazine is fairly new, ads are

priced much lower at $4,260; while readership is only 500,000. The iPhone campaignpriced much lower at $4,260; while readership is only 500,000. The iPhone campaign

will feature 12 publications at three ads per publication, amounting to 153,360$.will feature 12 publications at three ads per publication, amounting to 153,360$.88

7 Rogers Publishing8 www.strategymag.com

18

Overall, the total expense of advertising in the aforementioned magazines costsOverall, the total expense of advertising in the aforementioned magazines costs

$5,957,010$, which represents 24% of our overall budget and should effectively reach$5,957,010$, which represents 24% of our overall budget and should effectively reach

our identified target market. our identified target market.

In addition to magazines, print ads will also be featured in newspapers. Eighty-In addition to magazines, print ads will also be featured in newspapers. Eighty-

five percent of business professionals (i.e.: target market), reach the business section offive percent of business professionals (i.e.: target market), reach the business section of

at least one newspaper during the course of a week thus providing the perfect platformat least one newspaper during the course of a week thus providing the perfect platform

to advertise iPhone’s key enterprise features.to advertise iPhone’s key enterprise features. The Newsprint allows for optimal flexibility,The Newsprint allows for optimal flexibility,

giving options on contractual agreements on frequency and location of ad placements.giving options on contractual agreements on frequency and location of ad placements.

Full color ads in the newspapers of the large cities like Toronto, Montreal etc. run onFull color ads in the newspapers of the large cities like Toronto, Montreal etc. run on

average 4,500$average 4,500$99 a week; while smaller cities like Halifax and Saint John roughly cost a week; while smaller cities like Halifax and Saint John roughly cost

1,500$1,500$1010 for the same ads. Furthermore, iPhone’s ads plan to be featured in high profile for the same ads. Furthermore, iPhone’s ads plan to be featured in high profile

newspapers, such as The Globe and Mail and the Toronto Sun. For a detailed outline onnewspapers, such as The Globe and Mail and the Toronto Sun. For a detailed outline on

costs of newspaper ads, refer to Exhibit 1. costs of newspaper ads, refer to Exhibit 1.

TelevisionTelevision

Television advertisements will demonstrate how iPhone’s key enterprise featuresTelevision advertisements will demonstrate how iPhone’s key enterprise features

will benefit and create value for any organization. Estimated production costs for a 30will benefit and create value for any organization. Estimated production costs for a 30

second TV spot is approximately $100,000. For an outline of specific costs, refer tosecond TV spot is approximately $100,000. For an outline of specific costs, refer to

Exhibit 1.Exhibit 1.

BNN (Business News Network) will be used as our main source of television asBNN (Business News Network) will be used as our main source of television as

it holds a viewership of 760,000/week and is also the largest business station in Canada.it holds a viewership of 760,000/week and is also the largest business station in Canada.

Therefore, this is the most ideal network to advertise on as it has an extensive reach toTherefore, this is the most ideal network to advertise on as it has an extensive reach to

our target market. Advertisements will run during workdays (9am-6pm) as most stockour target market. Advertisements will run during workdays (9am-6pm) as most stock

9 www.torontosun.com10 www.telegraphjournal.canadaeast.com

19

brokers have televisions in their offices to monitor stocks and current economic trends,brokers have televisions in their offices to monitor stocks and current economic trends,

therefore these ads would effectively reach this type of corporate employee, as well astherefore these ads would effectively reach this type of corporate employee, as well as

Chief Information Officers as they decide what technologies to purchase for corporateChief Information Officers as they decide what technologies to purchase for corporate

use. Details on total expenses for television advertising are outlined in Exhibit 1.use. Details on total expenses for television advertising are outlined in Exhibit 1.

Two types of commercials will be produced: one focusing on enterprise featuresTwo types of commercials will be produced: one focusing on enterprise features

and another focusing on Apple’s eco-friendly movement. The television schedule is on aand another focusing on Apple’s eco-friendly movement. The television schedule is on a

pulsating agenda, with commercials flighting at peak advertising times. Increasedpulsating agenda, with commercials flighting at peak advertising times. Increased

advertising will occur at the beginning of April, leading to April 22advertising will occur at the beginning of April, leading to April 22ndnd which is ‘Earth Day’. which is ‘Earth Day’.

This coincides with Apple’s ‘green’ movement to support their leadership in This coincides with Apple’s ‘green’ movement to support their leadership in removingremoving

toxic chemicals from its new products, and properly recycling its old products.toxic chemicals from its new products, and properly recycling its old products.

Furthermore, Furthermore, the cost of advertising on BNN amounts to approximately 4 million, thus,the cost of advertising on BNN amounts to approximately 4 million, thus,

40 ads will be placed throughout the annual schedule.40 ads will be placed throughout the annual schedule.

Public RelationsPublic Relations

The strategic partnership with the David Suzuki Foundation helps to bringThe strategic partnership with the David Suzuki Foundation helps to bring

environmental sustainability to the forefront of public opinion. To accomplish suchenvironmental sustainability to the forefront of public opinion. To accomplish such

corporate goal, Apple will donate 5% of monthly sales to the David Suzuki Foundation.corporate goal, Apple will donate 5% of monthly sales to the David Suzuki Foundation.

Along with the donation, Apple will be placing inserts in the packaging of its product withAlong with the donation, Apple will be placing inserts in the packaging of its product with

full details surrounding recycling procedures for their electronics; including where theyfull details surrounding recycling procedures for their electronics; including where they

can be sent to be disposed. These inserts will cost 100,000$. Moreover, tcan be sent to be disposed. These inserts will cost 100,000$. Moreover, this initiative willhis initiative will

be linked to a “Greener Apple” which is Apple’s environmental campaign to promote itsbe linked to a “Greener Apple” which is Apple’s environmental campaign to promote its

push to become more eco-friendly. push to become more eco-friendly.

Furthermore, this type of promotion links Apple with a cause, thereby creating anFurthermore, this type of promotion links Apple with a cause, thereby creating an

enhanced brand image which could influence buying decisions amongst potentialenhanced brand image which could influence buying decisions amongst potential

consumers in the target market.consumers in the target market.

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Personal sellingPersonal selling

B2B personal selling allows for instructional demonstrations and encouragesB2B personal selling allows for instructional demonstrations and encourages

repeat business through visits to various organizations. This type of promotional tool willrepeat business through visits to various organizations. This type of promotional tool will

be used more heavily in the iPhone’s campaign as marketing initiatives are directed tobe used more heavily in the iPhone’s campaign as marketing initiatives are directed to

large organizations. B2B personal selling is vital in the campaign as we forecast largelarge organizations. B2B personal selling is vital in the campaign as we forecast large

sales from big businesses (i.e.: financial institutions, sales representatives, big business,sales from big businesses (i.e.: financial institutions, sales representatives, big business,

corporate employees, etc). Apple’s field sales people will be able to provide some pushcorporate employees, etc). Apple’s field sales people will be able to provide some push

on the product’s key enterprise features, while offering companies the choice of a trialon the product’s key enterprise features, while offering companies the choice of a trial

purchase. This form of selling will hopefully lead to long-term relationships and continuedpurchase. This form of selling will hopefully lead to long-term relationships and continued

business that will benefit both parties. business that will benefit both parties.

Outdoor AdsOutdoor Ads

Additional uses of advertising are public transport banners and billboards. PublicAdditional uses of advertising are public transport banners and billboards. Public

transport banners will be featured on busses, subways and taxis; allowing thetransport banners will be featured on busses, subways and taxis; allowing the

commuters in our target market to see ads on their way into the heavily populated cities.commuters in our target market to see ads on their way into the heavily populated cities.

Prices range depending on size and range, thus $2 million is projected to cover costsPrices range depending on size and range, thus $2 million is projected to cover costs

and fees for cab companies, public transport companies and subways. and fees for cab companies, public transport companies and subways.

The use of billboards is the final aspect in the promotional phase. Billboards willThe use of billboards is the final aspect in the promotional phase. Billboards will

be featured in high profile Canadian cities such as: Toronto, Ottawa, Montreal,be featured in high profile Canadian cities such as: Toronto, Ottawa, Montreal,

Vancouver, Calgary and Edmonton. With an average cost of $100,000 per placement,Vancouver, Calgary and Edmonton. With an average cost of $100,000 per placement,

three billboards per city will be used, totaling $1.8 million dollars. The billboard signs willthree billboards per city will be used, totaling $1.8 million dollars. The billboard signs will

be placed in high visibility areas in the middle of high traffic routes within the downtownbe placed in high visibility areas in the middle of high traffic routes within the downtown

area. This form of advertising will greatly increase visibility amongst downtownarea. This form of advertising will greatly increase visibility amongst downtown

21

commuters, who in fact, represent a large majority of the target market: corporatecommuters, who in fact, represent a large majority of the target market: corporate

segment.segment.

Evaluation of Implementation PlanEvaluation of Implementation Plan

The control of implementation is significant to Apple in order to ensure that theThe control of implementation is significant to Apple in order to ensure that the

iPhone campaign is utilized effectively and efficiently from start to finish. MeasurableiPhone campaign is utilized effectively and efficiently from start to finish. Measurable

results can be drawn from P.A.C.T: concept testing, sales response rates andresults can be drawn from P.A.C.T: concept testing, sales response rates and

comparison to PR objectives. Multiple measures will be used to allow for more precisecomparison to PR objectives. Multiple measures will be used to allow for more precise

evaluation of our ads and overall campaign. A series of these tests will analyze howevaluation of our ads and overall campaign. A series of these tests will analyze how

clear our message is amongst a cluttered marketplace, while also testing consumerclear our message is amongst a cluttered marketplace, while also testing consumer

interest and attention in developing long-term bonds with key publics and stakeholders. interest and attention in developing long-term bonds with key publics and stakeholders.

One way of determining which advertisements will be most successful is by usingOne way of determining which advertisements will be most successful is by using

a behavioral measure, such as concept and copy testing. Concept testing will be donea behavioral measure, such as concept and copy testing. Concept testing will be done

prior to ad development by using an outside market research consulting group as thisprior to ad development by using an outside market research consulting group as this

will minimize biases or misleading results. The consulting firm will be responsible forwill minimize biases or misleading results. The consulting firm will be responsible for

conducting 5 different focus groups that contain ten occupants in each. The members ofconducting 5 different focus groups that contain ten occupants in each. The members of

these groups will be randomly selected from individuals with characteristics similar tothese groups will be randomly selected from individuals with characteristics similar to

that of our target market: corporate segment. The goals of these focus groups will be tothat of our target market: corporate segment. The goals of these focus groups will be to

determine the effectiveness of the message and its meaning from iPhone’s campaign. determine the effectiveness of the message and its meaning from iPhone’s campaign.

Since the iPhone is being sold in a B2B situation, a toll-free number and contactSince the iPhone is being sold in a B2B situation, a toll-free number and contact

name would be important to provide to help the vendor discover who is performingname would be important to provide to help the vendor discover who is performing

functions in the buying center. Consequently, a toll-free number provides sales data tofunctions in the buying center. Consequently, a toll-free number provides sales data to

determine which marketing program is the best and can also be used to generatedetermine which marketing program is the best and can also be used to generate

valuable consumer information. Knowing what types of corporations or organizations arevaluable consumer information. Knowing what types of corporations or organizations are

responding to the iPhone campaign will help Apple better understand its customers. Thisresponding to the iPhone campaign will help Apple better understand its customers. This

22

knowledge will also help in analyzing the best approach to reach the identified targetknowledge will also help in analyzing the best approach to reach the identified target

market.market.

The last method involves the PR piece in comparison to Apple’s PR objectives.The last method involves the PR piece in comparison to Apple’s PR objectives.

Evaluation includes developing an index of awareness before Apple’s eco-friendlyEvaluation includes developing an index of awareness before Apple’s eco-friendly

initiatives in April. Following the environmental push, awareness is measured a secondinitiatives in April. Following the environmental push, awareness is measured a second

time to see if it actually increased. This evaluation is important as Apple hopes to build atime to see if it actually increased. This evaluation is important as Apple hopes to build a

positive image due to past criticism of its lack of environmental concern. The overall goalpositive image due to past criticism of its lack of environmental concern. The overall goal

of this evaluation is to see if Apple’s image changed, and if so, to what degree. Althoughof this evaluation is to see if Apple’s image changed, and if so, to what degree. Although

this approach is time consuming and difficult, Apple feels it is important to addressthis approach is time consuming and difficult, Apple feels it is important to address

stakeholder concerns. stakeholder concerns.

Overall, these methods are based on how effective and efficient iPhone’sOverall, these methods are based on how effective and efficient iPhone’s

advertising campaign is. These key components will help in setting standards andadvertising campaign is. These key components will help in setting standards and

measuring performance, thereby becoming Apple’s model of marketing the iPhone tomeasuring performance, thereby becoming Apple’s model of marketing the iPhone to

corporate buyers and CIO’s successfully. corporate buyers and CIO’s successfully.

Exhibit 1

iPhone Budget

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Advertising MethodAdvertising Method Cost PerCost Per AdAd

TotalTotal PotentialPotential ReachReach

Print AdsPrint Ads         

MacLean’sMacLean’s 31,920$31,920$ 4,979,520$4,979,520$ 2,500,0002,500,000

Canadian BusinessCanadian Business 15,145$15,145$ 817,830$817,830$ 985,000985,000

Strategy MagazineStrategy Magazine 4,260$4,260$ 153,360$153,360$ 500,000500,000

NewspapersNewspapers 1,500-1,500-4,500$4,500$ 2,600,000$2,600,000$ 7,000,0007,000,000

Public RelationsPublic Relations -- 100,000$100,000$ Sales of iPhoneSales of iPhone

Television AdsTelevision Ads         

BNNBNN 100,000$100,000$ 4,000,000$4,000,000$ 750,000750,000

OnlineOnline   -- --     --

Personal SellingPersonal Selling 1,500$1,500$ 600,000$600,000$ 40,000,00040,000,000

OutdoorOutdoor    --

Public TransportPublic Transport -- 2,000,000$2,000,000$   

BillboardsBillboards 100,000$100,000$ 1,800,000$1,800,000$ --

Total Cost of iPhone Total Cost of iPhone CampaignCampaign $17,050,710 $17,050,710 40,000,00040,000,000

Exhibit 2

24

Exhibit 3

25

Exhibit 4

26

Exhibit 5

27

Exhibit 6

28

Exhibit 7

29

Exhibit 8

30

Exhibit 9

31

key: BNN

32

JanuaryS M T W

T F S1

2 34 5 6 7

8 9 1011 12 13 14

15 16 1718 19 20 21

22 23 2425 26 27 28

29 30 31

FebruaryS M T W

T F S1 2 3 4

5 6 78 9 10 11

12 13 1415 16 17 18

19 20 2122 23 24 25

26 27 28

MarchS M T W

T F S1 2 3 4

5 6 78 9 10 11

12 13 1415 16 17 18

19 20 2122 23 24 25

26 27 2829 30 31

AprilS M T W

T F S1 2

3 45 6 7 8

9 10 1112 13 14 15

16 17 1819 20 21 22

23 24 2526 27 28 29

30MayS M T W

T F S

1 23 4 5 6

7 8 910 11 12 13

14 15 1617 18 19 20

21 22 2324 25 26 27

28 29 3031

JuneS M T W

T F S1 2 34 5 6

7 8 9 1011 12 13

14 15 16 1718 19 20

21 22 23 2425 26 27

28 29 30

JulyS M T W

T F S1 2

3 45 6 7 8

9 10 1112 13 14 15

16 17 1819 20 21 22

23 24 2526 27 28 29

30 31

AugustS M T W

T F S

12 3 4 5

6 7 89 10 11 12

13 14 1516 17 18 19

20 21 2223 24 25 26

27 28 2930 31

September

S M T WT F S1 2 34 5

6 7 8 910 11 12

13 14 15 1617 18 19

20 21 22 2324 25 26

27 28 29 30

OctoberS M T W

T F S1

2 34 5 6 7

8 9 1011 12 13 14

15 16 1718 19 20 21

22 23 2425 26 27 28

29 30 31

NovemberS M T W

T F S1 2 3 4

5 6 78 9 10 11

12 13 1415 16 17 18

19 20 2122 23 24 25

26 27 2829 30

DecemberS M T W

T F S1 2 34 5

6 7 8 910 11 12

13 14 15 1617 18 19

20 21 22 2324 25 26

27 28 29 3031