Youblisher.com-805157-IWatch Strategic Marketing Plan

Apple iWatch Marketing Plan 1

Strategic Marketing Plan for Apple iWatchFall Semester 201314


Anthony Webb:Anthony is a varsity baseball player and is the coolest kid in the history of Merrimack

Valley. He is Ms. Ferris’ favorite student ever. She likes Anthony even more than Emma.He works at Demoulas Market Basket on Storr Street in Concord, New Hampshire. Heworks in the produce department stocking fruit and vegetables like a boss. As you can seeby the profile picture, Anthony is much cooler than Nate who you can see in the backgroundof the picture. This will be the best marketing plan that you ever read, BELIEVE ME. Enjoy(:

Emma Hamilton:Emma is a senior at the Valley and loves being here so much that she wishes she

could be here another year. She works four hours at Market Basket every three months andis consistently broke. In her free time she enjoys developing skin cancer while fake andbaking in a tanning booth along with excercising. Her favorite foods are popcorn and darkchocolate. Emma is also addicted to iced coffee and cannot believe that we actuallyfinished this marketing plan.


Purpose and Missions Purpose of Plan…………………………………………………………………. 4 Mission

Statement…………………………………………………………………………4 Vision

Statement…………………………………………………………………………4

Situational Analysis Current Product Analysis………………………………………………….4,5,6,7 Description of Current Distributor

Network…………………………………………………………………………8,9 Competitive

Analysis…………………………………………………………………………...9 Financial

Analysis…………………………………………………………………………...9 Environmental Problems and

Opportunities……………………………………………………………………..9 Product / Market Analysis (Product Life

Cycle)....................................................................................................................10 Summary of Current

Situation………………………………………….……………………………...10

Marketing Strategy and Objectives Marketing Strategy………………………………………………….………11,12 Financial Objectives………………………………………………..…...13,14,15 Marketing

Objectives……………………………………………………………………….15 Channel

Objectives…………………………………………………………...…...16,17,18

Tactical Marketing Programs Target Market Issues………………………………………….………………..19 Product…………………………………………………………....19,20,21,22,23 Promotion………………………………………………………………..23,24,25 Distribution…………………………………………………………………..25,26 Pricing……………………………………………………………………….…..26 Other Customer Service……………………………………………………...26

Budgeting and Implementation


Marketing Budget……………..……………………………………………27, 28 Implementation………………………………………………………………….29

Additional Considerations…………………………………………………………29, 30 Bibliography………………………………………………………………………………2 Appendix………………………………………………………………………………...34


“Apple Inc. (Apple), incorporated on January 3, 1977, designs, manufactures and marketsmobile communication and media devices, personal computers, and portable digital musicplayers, and sells a variety of related software, services, peripherals, networking solutions,and thirdparty digital content and applications. The Company's products and servicesinclude iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professionalsoftware applications, the iOS and OS X operating systems, iCloud, and a variety ofaccessory, service and support offerings.”

Purpose and Mission

Purpose of the Marketing Plan

The purpose of the marketing plan is to give a detailed explanation ofthe new iWatch that will be released between April and June 2014.This plan will consist of a Situational Analysis, Marketing Strategiesand Objectives, Tactical Marketing Programs, Budgeting,Performance Analysis and Implementation, and AdditionalConsiderations. Information within the plan will be used as the newproduct is released to consumers.

Mission Statement

"Apple is committed to bringing the best personal computing experience tostudents, educators, creative professionals and consumers around the worldthrough its innovative hardware, software and Internet offerings."

Vision Statement

“Apple as a whole, envisions itself as the top of the line when it comes toWireless phones, tablets, computers and laptops.”

Situational Analysis


Current Product Analysis:

iPhone

General Info:

The iPhone has the highest sales of all cellular devices of all time with over421 million units sold since its introduction in 2007. The iPhone was thebasis and the beginning of all smartphones. People who owned the firstiPhones were the first people to be able to access the internet for quickbrowsing, unlike prior phones that could access the internet, but could hadvery limited and slow access

Pricing:

Assuming you are purchasing the iPhone with a cellular contract and notpaying the full price, you will be paying $199, $299 and $399 for the 16GB,32GB and 64GB versions of the iPhone 5s. The iPhone 5c is considerablyless expensive than the 5s. For 16GB you will be paying just $99 and for32GB you will be paying $199

Distribution:

The iPhone 5s and 5c are available at any Sprint, Verizon, AT&T store andare also available at Apple stores and online.

Promotion:

iPhones are promoted on television, on the internet and most widelyadvertised for free by word of mouth.

Services offered:

Location services, Touch ID, iSlight Camera, Video Recording, FacetimeCamera, Audio Calling, Audio Playback, Video Calling, TV and Video, Siri

iPad


General Info:

The iPad was the world’s first widely used tablet device. The original iPadhad a 9.7” screen and was much slower and bulkier than the iPads currentlybeing released. Today the iPad Air (newest version) also has a 9.7” screenbut has a much faster processor and is much thinner and lighter.

Pricing:

The newest iPad, the iPad Air comes in four memory sizes. There is the16GB, 32GB, 64GB and the largest, 128GB versions of the iPad Air. Each ispriced at $499.00, $599.00, $699.00 and $799.00 respectively. There isalso a version of the iPad Air which is able to connect to cellular data and isa bit more expensive. They come in the same sizes and $629.00, $729.00,$829.00, $929.00 respectively.

Promotion:

iPad advertisements explain what the iPad has to offer and shows how thetechnology that the iPad has to offer is far ahead of its time.

Services offered:

Wifi, Wifi, Facetime HD Camera, Video Recording, iSight Camera, VideoCalling, Facetime, Audio Playback, TV and Video

iPod

General Info:

The iPod originated in 2001 with sizes of 5 and 10 GB. It only held music andhad a simple scroll wheel. Today, the iPod touch (5th generation) has a 4”retina display that has a 1136by640 resolution at 326 pixels per inch.


Pricing:

The newest installment of the iPod comes in 3 memory sizes, 16GB, 32GBand 64GB. The 16GB version retails for $229.00 while the 32 and 64GBsizes retail at $299.99 and $399.99 respectively

Promotion:

iPod advertisements are most notably known to have the dancing silhouetteswhether on television, on posters, in magazines and on billboards.

Services Offered:

Bluetooth, Nike+ support, maps, Face Detection, Facetime, Facetimecamera, iSlight Camera,

Current Target Market:

Apple uses a mass market target market approach. Apple aims to sell their products toalmost every potential consumer on the market. While also making sure to not use anyunnecessary money to consumers who are not interested in the products.

Gender:

Apple does not focus on selling products to one specific gender. Appleproducts are made to not look feminine nor masculine. Though the newestproducts have been designed in multiple colors that are gender specific to acertain degree.

Income:

Apple makes different models and sizes of products so they can be asaffordable as possible for different levels of income.

Age:


Apple products are appealing to all ages. From small children wanting toplay games and learn to established business managers wanting the easiestpossible way to share and display information at meetings and through otherforms of communication.

Occupation:

Apple products are developed to be easy to use and very versatile for alltypes of professional occupations. Apple products such as iPads can beused to display charts and other data in a simple and sophisticated way.Mac computers are used in an office due to the fact that they are the highestlevel of desktop computer and are the best way to get the most professionalwork done.

Education:

Apple products can be used at every education level. They are not designedto be complicated to operate. Apple products can be used by anyone at anyage or education level.

Geographic Location:

Apple makes products that are usable in nearly all conditions. Appleproducts will work under extreme temperature conditions and at extremelyhigh altitudes.

Purchasing Characteristics:

Apple targets technology advocates and people that will purchases thenewest products on the market.

Current Distributor Network

Distributors: Currently Apple distributes its products through a very large distribution

channel. Apple sells its products through its own website and authorizedApple Stores as well as through authorized distributor websites such as


Amazon.com. Apple also sells its products through wireless phone carriers:Verizon, AT&T, TMobile, US Cellular, and Sprint as well as many othersmaller carriers across the country. Another distributor network Apple uses iswholesale marketers such as Walmart, Target and Best Buy.

Competitive Analysis:

Competitors:

Competitors of the iPhone are Samsung, Blackberry, Windows, Nokiaamong other, less major competitors. The most closely competitive companyApple has is Samsung for phones and Microsoft for the Tablet and computerproducts. The Samsung Galaxy line is the iPhone’s largest competitor. TheGalaxy actually outsold the iPhone in the 3rd quarter of 2013 and had a veryhigh rate of sales in the 4th quarter when the iPhone 5S and 5C werereleased. These rates are a big talking point among Apple’s executives aswe are working to find ways to stay ahead of the curve and continue to sellmore products than any other technology company in the world. (SeeAppendix A for Galaxy Gear specifications)

Financial Analysis for Product:

Apple has set aside $50 million for advertisement and bug fixes forthe months leading up to and after the release of the iWatch. Thismoney will be dispersed throughout the 12 months of 2014

Environmental Problems and Opportunities:

Problems with selling this product are international bans ontechnology from some countries and also countries that are lessfortunate will not be able to afford any of these products, so there willbe no sales from certain parts of the world.


Product Positioning:

Positioning:

Apple products are at the top of the market when it comes to Tablets,Smartphones, Desktops and Laptops. Apple has sold more products thanany other technology based business in the world. Apple products are the goto items when upgrading technology in an office, at schools, and for personaluse such as home computers, phones and tablets.

Customer Attitude:

Advanes:

Apple products are seen as top of the line and the most efficient,technologically advancing products on the market. They are known to be themost easily understandable and most powerful products on the market whichshows through the sales. Nearly 600 million people or 7.5% of the world’spopulation are iPhone users and this number is predicted to increasethroughout 2014 and 2015.

Innovation:

The products that Apple and their competitors make are the most innovativeand professional corporations in the world. Always finding ways to improvetheir product over their competition. This is what drives the constant and veryrapid improvements of products on the market. As Apple continues toinnovate, competition is doing the same. This competition very attractive tothe consumer and makes this industry one of the most thriving marketplacesin the business world.

Purchasing Process:

Process:

All age groups have their ways of getting Apple products. The younger age


groups can get these products as gifts while some customers who get intotheir teens will be able to get these products on their own.

Teenagers:

Apple aims at selling products to teenagers due to the fact that they are themost social age group. Teenagers use iPhones for text messaging, phonecalls, social media and any other form of communication they can find.Teenagers also use iPods for social media, games and music. Teenagersare one of the, if not the most important age group for Apple to focus on.They are the next generation of business owners and the new workforce so itis important for Apple to get the interest of this age group so they continue touse the products in the future. Teenagers are also the most interactive agegroup so they will provide free advertising if the enjoy Apple products.Younger teenagers will receive these products as gifts but as they age theywill be able to purchase their own products. If we catch their interest in theiryoung age they will purchase an Apple product over a competitors.Decisions of these younger teenagers are not as important as the decisionsof their parents. All Apple products come with a warranty and are made toendure the extreme conditions that younger children may put their Appleproducts through. Teenagers are the largest market for apple

College Students:

College students are another target market for Apple. Students in collegeuse iPads, MacBooks and other apple products to take fast notes and tohave quick access to the internet for studying and research. College studentsare another huge market for Apple products. College students need the besttechnology for the fastest research and the easiest way to take notes. Beforecollege, many students will start shopping for a Laptop and now with newtechnology will be looking at tablets. If Apple markets correctly and efficientlythan these new students will look towards Apple products over thecompetition. Deciding which laptop or tablet to purchase can be a verydifficult process. Decisions can come down to such things as accessibility,power, ease of use, price and visual appeal. Price being a major factor,Apple does everything within its power to make their products as valuable as


possible for the price paid.

Business People:

Apple makes their products very easy to use for communication andorganization. Business people enjoy Apple products because they are easilyportable and make communication with coworkers and clients very easy,clear and efficient. Deciding which Apple product to purchase may be a verydaunting task for someone in the business world. They may purchasemultiple products for personal use and business related uses. Businesspeople view Apple products as the very top choice when it comes to easilycreating presentations, sharing info, meeting with clients and doing otherforms of work.

Little Children:

Children love Apple’s iPads for the games and learning applications.Children can be distracted for hours while also learning and beingentertained. Little Children will get Apple products through their parents orthrough other family members. Small children may see advertisements forgames and other apps such as Angry Birds on the television and want anapple product to play these games. Children do not have to Children seeApple products as a great way to have fun through games and apps.

Adults:

The everyday adult is also a target for Apple products. iPhones are usedcommonly for phone calls, maps, cameras, internet connection and textmessaging. A majority of the time an adult will purchase an Apple product forthemselves. They will see an advertisement, hear through a friend orcoworker that has a product. The average adult views Apple products as anitem that may make them feel a little bit better than the average person. Theycan use these products for any task that they need to whether it is phonecalls, writing emails, text messaging, social media, or internet research.

Marketing Strategy and Objectives

Marketing Strategy


We will continue using the same price schemes that we have used for everyother product we have produced. Consumers will purchase the iWatchbecause our features and benefits are qualities that cannot be matched. Putforth as much time and effort as we do making the technology into makingthe packaging. Along with this we will be matching the image on the box withthe product to ensure zero disappointment. “The iWatch matters. For Apple,it is more than a product launch, it is the opportunity to put the shine back onthe stock and the company, and give investors confidence that Apple caninnovate, market and set the standards for what consumers “must have.””

Upon entry to the Market, Apple will have already produced approximately500,000 iWatches so there is no shortages like there is with many otherhugely popular Apple products. Apple iWatches will be sold on the Applewebsite and authorized Apple resellers for the first month of sales tomaximize profit without losing money to “middlemen”. In April and May we willbe opening sales

Launch: Online + AuthorizedDealers

Upper tech storesAmazon

Retail/ Wholestores

January

February

March (Launch) x

April x

May x x

June x x

July x x

August x x x

September x x x

October x x x

November x x x


December x x x

Financial Objectives

Customer Sales

Channel Sales


When the iPhone was released we anticipated the following numbers. These samenumbers are also anticipated for the iWatch

gross margin between 37.5 percent and 38.5 percent operating expenses between $3.8 billion and $3.9 billion other income/(expense) of $350 million tax rate of 26%

Marketing Objectives

Target Market Objectives

Market Share

Apple’s total market share for mobile phones, tablets and PC’s willgrow in 2014 from under 10% to above 14%. There is no intention ofincreasing the channel due to the company not wanting to flood themarket.

Customers

There are 500 million users of Apple products currently and thenumber is expected to reach 600 million by the end of 2013

Purchases Depending on how often we upgrade the iWatch will be purchased at

one for every customer due to consumers not needing more than onewatch.


Promotional Objectives

Level of company awareness

Apple is a worldwide known corporation which will increase sales forthe new product

Traffic Building

Having website banners on sites such as mobile phone carriers andretail stores (target, walmart, best buy and kmart)

Product Trials

Once we release the iWatch to mobile phone carriers we can have apromotion when you buy the newest version of the iPhone the watchwill be able to be purchased at a discounted rate. When consumersstart to buy the watch with the phone they will be able to share withothers how great the watch is, as sales begin to rise we will cut thepromotion tough people will still want to buy it.

Sales Force

Having representatives from Apple sell to large corporations andinstitutions that are looking to invest in the iWatch and purchase largequantities will increase sales. Since these representatives will beknowledgeable they will be able to answer questions and thenpersuade the customers to purchase.

Channel Objectives

Dealers

There are 406 authorized dealers of Apple worldwide. Retaineddealers consist of the ones over on the west coast of the United


States where the corporation originated. Newer dealers will begin topop up more commonly on the east coast.

Order Processing and Delivery

Apple processes debit and credit cards immediately after an order isplaced online. An email is sent to the customer when the order isbeing processed and another email for when the item(s) are shipped.We have an outstanding on time rate and guarantee your product willarrive the day we predict unless such things as weather gets in theway of delivery.

Market Research Objectives


Knowing there is customer satisfaction in our products gives the company the ability tomake current and new products built with the same framework.

Research and Development

Product Bugs: Once releasing products to the market our company instantlysees if consumers have found any bugs or glitches to the product that needsupdating and or fixing. Even having employees seek out bugs and glitchesthere still is the possibility of one that was not caught. We have satisfactionguaranteed which results in developing new operating systems for all of thetechnology that is released. Once being able to supply our current customerswith satisfaction in the product they have purchased we begin to develop aneven better type of that technology.

Partnership Developed

“Apple lives in an ecosystem and it needs help from other partners;it needs to help other partners. And relationships that are destructivedon’t help anybody in this industry as it is today. So during the lastseveral weeks we have looked at some of the relationships, and onehas stood out as a relationship that hasn’t been going so well, butthat has the potential, I think, to be great for both companies. And I’dlike to announce one of our first partnerships today, a very verymeaningful one. And that is one with Microsoft.”


Tactical Marketing Programs

Target Market Issue Not everyone in each target market is equally financially stable. Some people

in certain target markets are able to afford more than others, so Apple has totake that into consideration when deciding a profit margin

Target Market Description

Nearly everyone is considered to be a target market for Appleproducts. Here at Apple we target teenagers, college and universitystudents, business people, adults and even young children. The iPadis used by children frequently, while the iPhone is used by higher agegroups. College and university students use the Macbooks andbusiness people have adapted the use of an iPad in meetings and foreasy use of traveling with information. With the new iWatch we willplan to also target elderly people as they often wear watches whichinitiate them to buy iPhones as well. Worldwide Apple products areused by just about everyone. Elderly people want to learn technologyand be up to date with society and people they may know using it. Byintroducing them to Apple and the new iWatch they may pay just aboutanything to be technologically inclined with the rest of the population.The objective of a slight change in the target market will be toincrease the number of users and amount of money that Apple will bebringing in. By having features that anyone of any age and in any partof the world can use will increase our target market. Our new targetmarket will be all of the above individuals include elderly people.

Product Positioning

The iWatch will be more durable, equipped with more features, andfaster than the Samsung Galaxy Gear Smart Watch. Sales of theiWatch will be higher due to the sales of the newest iPhone beinghigher than the Galaxy. Customers will experience having the ability of“making calls to checking maps on the go. There could also be apedometer for counting steps and other sensors for monitoring health


data. Many industry watchers believe that Siri will play a large role inthe iWatch’s operation. You would be able to send texts, update yoursocial status, find nearby restaurants and more just by using yourvoice. The iWatch could also be used for mobile payments incombination with a Passbook app, as well as for redeeming couponsand scanning movie or airline tickets”. Having prices set higherbecause of the quality of our products will either help or hurt us. If thewatch were to not sell even with the promotional offer of having it setat a lower price with the purchase of a new iPhone, we will then haveto lower the price completely until it sells. If users become unhappydue to how the watch operates then we will need to efficiently updatethe operating system to make consumers happy and to bring in morehappy customers. With our competition being the watch made bySamsung, which is already on the market, may lead to their salesbeing higher because they are already ahead of us. With intentions ofours being higher because of how other products have succeededover Samsung we should not have to worry about this. The easiestway to change the position of our product will be altering the price. Asalways there will be a way that we can change and update the devicethough it will be tested by various individuals with several differentlifestyles before even released to the market. The desired result is tohave the sales of our watch very high and purchased for and by all agegroups that Apple serves to.

Sales Forecast


“For fiscal 2014 the average revenue and EPS estimates are $185 billion,up 8% year over year, and $43.71, up 9% and almost matching fiscal 2012’sresult, respectively. Apple should also have about $163 in net cash pershare (not taking additional taxes for offshare cash to be brought back to theU.S.) after dividends and $16 billion in share buybacks”.

In 2013 we “sold 33.8 million iPhones, a record for the September quarter,compared to 26.9 million in the yearago quarter. Apple also sold 14.1million iPads during the quarter, compared to 14 million in the yearagoquarter. The Company sold 4.6 million Macs, compared to 4.9 million in theyearago quarter”. As sales continuously increase with our other productsespecially the iPhone that is an on the go tool, the iWatch will also have highsales due to easy mobility. When having the promotional option forpurchasing the watch at lower rate when buying an iPhone sales willincrease for both the phone and watch. For about every ten phones that aresold roughly four watches will be sold with it. For consumers who alreadyhave an up to date iPhone they will also be purchasing the watch separately.

Product Issues

iWatch being in the electronics category will offer several keyfeatures. Being able to answer calls from your watch which leads tothe offering of siri to this device. Also you will be able to control yourmusic, download apps specifically for the watch and track datathrough sensors such as pulse and steps. Not only does thistechnology benefit during the day while being on the go but also isbeneficial for physical activity. Users with the watch will be able tocheck several things below 95% more due to the wearable device.


Branding


Apple’s brand worth increased by 129%, from $33 billion in 2011 to$76 billion signifies innovation, the logo of the apple is widely knownthroughout several countries and is the companies brandmark.Packaging will be kept small for less expensive shipping if one wereto order it online. It may seem like a small detail, and thats howseveral companies feel. Here at Apple we pride in every last detail toour products. Along with our other products the packaging will remainelegant and show a detailed picture of the watch on the box. Labelingon the watch will have the same font and have “iWatch” under theclock itself in a smaller size with the serial number and such as otherApple products have. Currently the watch is receiving finishingtouches. We are fixing bugs and glitches while having it tested byemployees of Apple. Within a short time we will be packagingprecisely as we plan we release the device in March. Based onconsumer feedback in large amounts changes will be madeaccordingly to the next generation of the watch. It may be softwareissues, comfortability, or accessibility issues though we do not intendof there being any. The battery may need updating so that the watchlasts throughout a typical day for the average adult. Within thecompany we plan to improve our distribution to even more countriesworldwide and strengthen our protection plans for better satisfaction.

Promotion Issues

Advertising here at Apple has maintained a style of contemporary artfocusing on showing how the product is used rather than tellingconsumers about the product while also incorporating popular culturalreferences since the 1980’s. “The first promotional tool we use isadvertising. Investing heavily into this area, Apple has managed tocreate a large amount of advertisements that can be found on anytelevision network, in any technology magazine, and all over the


Internet”. “The second promotional tool that Apple uses extensively ispersonal selling. Apple Stores are home to many young andknowledgeable sales representatives who are trained thoroughly inboth product information and customer service. With the release ofnew products and upgrades the company produces every few monthsor so, it is important for sales representatives to stay abreast of thelatest technologies entering the market”. Our public relations consistsof “releasing press releases for major product announcements,handing out exclusives and loaner units to a few select reporters andcolumnists, and occasionally we sign off on an interview with one ofthe senior executives when it suited the marketing message.” Wehave a budget of one billion dollars a year to spend on promotion ofthe products. Advertising publicizes sales that are taking place tosupport the promotions that are going on. It is planned that with theincreased budget for 2013 there will be more use of billboards forApple on highways with major commuters. Having more product trialswill support our sales promotion though we will have to hire morepeople to do the trials. Spending money on individuals doing producttrials will save major money when having to fix certain technicalissues. Using media to advertise will certainly be a key component.Seeing as consumers will be able to purchase the watch through ourwebsite, we will be advertising with ad banners on several of the topwebsites such as Google, Youtube, Facebook, Yahoo, and Amazon.Our sales promotion will also aid in advertising then leading to sales.Another feature will be in popular magazines where people will viewthe next best smartwatch.

Spendings on Advertisement

Total: 11 Billion

Billboards Product Trials Online Magazines

1 Billion 4 Billion 5 Billion 1 Billion


Online is where consumers will most commonly view the advertising resultingin basically half of the budget being directed to it. Product trials will beexpensive having to let the product be out without some purchasing them.Billboards and magazines will be important with large pictures and catchyphrases though not as key as the online and product trial advertising will be.

Distribution Issues

Pricing

Other Apple Products


Other:

Customer Support Services “All Apple hardware comes with a oneyear limited warranty and up to

90 days of complimentary telephone technical support. To extend yourcoverage further, purchase the AppleCare Protection Plan orAppleCare+. Because Apple makes the hardware, the operatingsystem, and many applications, Apple products are truly integratedsystems. And only AppleCare products give you onestop service andsupport from Apple experts, so most issues can be resolved in asingle call.”


Part 5: Budgeting, Performance Analysis and Implementation

Cost of Production vs. Profit

With 50 million invested into the budget for the iWatch, Apple will be able touse many tests in the effort to make the iWatch with the same superior qualitythat Apple products are known to have. The money will go into testing theprogramming, creating and putting out surveys as well as testing the productprivate markets. After the newly developed iWatch is perfected we will launcha very large campaign with the goal of selling around 1,000,000 units in thefirst two months of its launch. The Samsung Galaxy Gear was released andsold approximately 800,000 units within the first two months of release andwith the much larger purchase rate than Samsung, Apple has the goal ofoutselling the 800,000 mark that the Galaxy Gear set. The iWatch has a costof about $100 to produce by and will be sold at $249 per unit leaving Applewith a gross profit of $149 per iWatch before taxes and other costs areremoved. If Apple sells the projected 1,000,000 units, taking intoconsideration that there is about a 30.5% tax rate on Apple Inc, there will beroughly $100,000,000 coming into the business, though money will be takenfor distribution and handling as well as further advertisements.

The Marketing Budget

Budget:

Apple has put aside $50 million for the last stages before the releaseof the iWatch. Roughly $6.25 million will be used for advertisement inthe 2 months preceding the launch. Approximately $10 million will beused in developing additional features to the iWatch in the effort tomake it as appealing to the market as possible while still keeping areasonable price tag.


The above chart shows the amount of money spent per month out ofthe budget $50 million for the iWatch. March will be our largest monthof spending because we aim at having a mass group of people awareof our product and its features. Month to month we will lower theamount spent on advertising and bug fixes and get set to beginadvertising for the next generation of SmartWatches. In January andFebruary we will begin advertising for the iWatch and continue asteady stream of advertisements over radio, television, internet andprints. In March we will use $12.5 Million and nearly double theadvertisement rate but we will also be spending more on public foundbug fixes. During April, May and June we will cut the budget in half to$6.25 Million and keep making more minor bug fixes and continueadvertisement. July and August we will cut the budget in half oncemore to $3.125 Million. In the last 4 months of the year, the bugs willbe fixed and the new versions of Smart Watches will be getting readyfor release.


Implementation:

This will be carried out by a team created specifically chosento focus directly on the iWatch and its competition. The team iscomprised of Apple’s most dedicated and talentedemployees. These employees’ main goal is to perfect theiWatch and sell it to a large number of people. The iWatch isApple’s top priority and this is why we only selected the mostdedicated and talented workers in the business for this project.

One group from the team will be dedicated to creating a verydetailed and informing advertisement plan/ advertisementsthemselves. A second group will be in charge of thetechnological aspect. They will be fixing bugs and updatingapps and other functions of the iWatch.

Each group is comprised of approximately 100 people. JamesFoster is the Director of Engineering and is in charge of thetechnologies involved in the iWatch and will maintain theproduct’s

Part 6: Additional Considerations

Internal Factors There is a possibility that we could run into production issues. With the

watch being so advanced it is unknown as to how quickly they will beproduced. The iPhone will continue to be successful so there is not aconcern of the watch not selling with the phone. Funding should not bean issue either as it never has been for Apple.

External Factors The competitor will as always be a strong issue. Samsung will

continue to be at battle with our products and we will still continue totry to be better. With the assumption that the watch will be successfulwe do not foresee there being and societal issues. There is hope thatlarge corporations will see the watch as a useful tool for easycommunication so they will purchase the watch in bulk orders.


Research Limitations There were concerns throughout the research that the watch was not

even going to be existing, there were a few research limitationsthough nothing that made it impossible for the report to be incomplete.


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Appendix

Youblisher.com-805157-IWatch Strategic Marketing Plan

Documents

bibliography2 appendix