Running Head: iPhone 5sp Market Plan



Marketing Plan iPhone 5sp the Solar Powered PhoneLaMarcus BaileyKyle GeorgeSuzi TullisCalifornia State University, Monterey BayBus 306-90May 4, 2014ContentsExecutive SummarySituation AnalysisMarket SummaryMarket AnalysisDemographicsGeographicsPsychographicsThe MarketMarket NeedsMarket TrendsMarket GrowthSWOT AnalysisStrengthsWeaknessesOpportunitiesThreatsCompetitionProduct OfferingKeys to SuccessCritical IssueMarketing StrategyValue PropositionMissionMarketing ObjectivesFinancial ObjectivesTarget MarketsDemographicsPositioningStrategiesMarketing MixMarketing ResearchFinancialsBreak-even AnalysisSales ForecastExpense ForecastControlsImplementationMarketing OrganizationContingency PlanReferencesList of Tables and FiguresExecutive SummarySuzi needs to do (Can’t do until the rest of the paper is written)Marketing AnalysisSituation AnalysisOn June 17, 1946 the first mobile phone call was made. In the 68 years since that time there has been an exponential amount of growth and a growing dependence on cell phones. The growing dependence on cell phones has made battery life an extremely important aspect of design. The iPhone 5sp will have an integrated solar powered battery. This will enable users to forget about the conventional methods of cell phone charging and constantly have a fully charged cell phone. Market SummaryThere are currently a multitude of solar chargers on the market. These charges range in price from $20-$150 and offer a variety of features including, light weight design, durability, and varying levels of performance. None of the current solar chargers on the market are integrated in a cell phone.Customers want a charged cell phone and convenience. There are many alternative (non-solar) cell phone chargers available currently. One such option is the mophie juice pack. The mophie Juice pack ranges in price from $79 to $118. It encases the iPhone and protects it from bumping around; it also carries a backup rechargeable battery. Another alternative charger is the bootcase hybrid power case. This case costs $99 and has mixed consumer reviews. Both of these examples are expense and require the consumer to carry around an extra piece of equipment. The convenience offered by an integrated solar battery charger would appeal to consumers who are willing to spend a little extra money for a constantly charged battery.Label, Title, Brief Explanation, CitationNeed to insert a graph incorporating the raw data from LaMarcus’s researchTarget MarketDemographicsOutdoor enthusiasts are likely to be interested in the iPhone 5s due to its use of the sun as its power source. Outdoor enthusiast spend $646 billion dollars annually in the United States, in California alone this group spends $85.4 billion dollars annually (Outdoor Recreation Economy). The average age of a cell phone user is 13 years old; this creates a huge market of young consumers. Young adults have an average annual spending power equaling $183 billion (Vivion, 2014) Young adults who enjoy outdoor activities, and have an annual income of more than $50,000, are the main target audience for the iPhone 5sp.GeographicsStudies show that 20% of the world’s population does not have access to electricity (The World Bank). The people without access to electricity live in developing countries with the highest concentration being in Africa and India. While most of these individuals that do not have access to electricity are not concerned with cell phones, a cell phone with an integrated solar battery would still be useful in these regions. This is why the initial target market for the iPhone 5sp will be travelers, outdoor enthusiast and athletes. Imagine how useful an integrated solar battery charger would be to a National Geographic photographer spending months in the safari. There will be a large demand for the iPhone 5sp because of the large portion of the world still living off the grid. PsychographicsInitially the iPhone 5sp will target members of the upper middle class. The iPhone 5sp is going to have a starting price of $649 and will therefore not be obtainable by members of every social class. The iPhone 5sp is aimed at individuals who spend a good amount of time outdoors and/or away from conventional power sources. The iPhone 5sp will appeal most to outdoor enthusiasts, athletes and travelers. The specific athletes that the iPhone 5sp is going to target are bicyclists, backpackers, and hikers. Travelers are often concerned with carrying around the least amount possible. With restrictions on weight and size of baggage, travelers do not want to have extra pieces of equipment in their bags. The MarketMarket NeedsThe smart phone market is in need of a solution that can keep up with the active and busy lifestyle of today’s consumers. Smart Phones are becoming the default mode of access to information, services, data collection and internet browsing. One of the biggest challenges cell phone users face today is how to keep their cell phone charged while constantly on the go. There is a direct correlation to the amount of features built into a cell phone and the phones battery life. This is an ongoing concern for cell phone companies, there is a need in the marketplace for a solar powered smart phone. A survey was conducted to assess the potential success of the iPhone 5sp. Of the people surveyed, 59% currently own an iPhone. Of those surveyed, 90% said that they would be interested in purchasing a smart phone with an integrated solar charger. The oldest person involved in this survey was 65 years old, the youngest was 18. The Average age of those surveyed was 22. From this survey and other research it can be concluded that young adults who already use Apple products are likely to be interested in buying the iPhone 5sp. (LaMarcus Bailey, Survey, March 2014)The average smart phone user uses their phone for a variety of everyday tasks. In many cases the smart phone is replacing the necessity of a desktop or laptop computer. A smart phone allows its user to connect to the internet and creates an element of convenience in everyday tasks. Studies of market trends among smart phone users show that there are key needs and wants that are not being met. Apple has created a new product – one that fulfills previously ignored aspects of the user experience. This iPhone 5sp is thoughtful, intelligent, and efficient by design. One of the biggest priorities in this new design was to remove the necessity of using excess cables. This new and improved iPhone will have a mini solar panel built into its screen and will have a backup battery. The phone will be completely powered by the solar panel and will never have a low battery life. The backup battery will come in useful when the phone does not have solar energy for charging. Market TrendsThe first 40 years cell phones were around saw very slow progression. The first mobile phone call was placed on June 17, 1946. It wasn’t until 1973, 27 years later, that a call was placed from the first mobile phone not connected to a car. Ten years later, in 1983, the Federal Communications Commission (FCC) approved the mobile phone for commercial use. In 1999 Nokia introduced the internet onto cell phones; this is the time when rapid improvements in cell phone technology started to take place. Today’s consumers are accustomed to fast, easy to use technology. To meet the demands of consumers cell phone companies have made a point of constantly introducing new aspects into the cell phone design. With today’s cell phone technologies it is effortless to connect to the internet, use GPS, or communicate using one’s smart phone. The industry has also been progressing in reference to speed. Increasing the performance of the smart phone is a must in order to keep up with the high demand of performance. This includes increasing bandwidth, applications, software, and more efficient operating systems. All of these enchantments require more power consumption furthermore establishing the need for solar power which is on the go. (Yarrow, 2012) As cell phones get more advanced it becomes harder to keep them charged, an integrated solar charger would eliminate this problem. Label, Title, Brief Explanation, CitationMarket GrowthThe potential for growth with the solar powered cell phone battery is nearly limitless. No such product currently exists and consumers are growing more interested in solar power. “The demand for solar energy has grown by 30% per annum over the past 15 years. The strong push for renewable energy in 2009, photovoltaic (PV) installations grew by 20%. Revenues in 2009 for the PV industry also increased, reaching $38.5 billion” (Gandhi, 2013)The market for solar powered technology is currently booming and is a very attractive market to enter into. The global solar industry has grown 849% over the past eight years, from an installed capacity of 877 MW in 2000 to 8,325 MW at the end of 2007. That breaks down to a compounded annual growth rate (CAGR) of 37.9% for the same period (Hodge, 2008).With the expansion of the solar industry and increased investment, “PV solar energy has made great strides in the last five years as solar technology has become more efficient and costs of production have decreased” (DOE, 2008). In her article “U.S. Solar Market” Ucilia Wang states that the solar equipment market grew nearly 76% in 2012. (Wang, 2014) The solar market has been experiencing a vast amount of growth. This growth is opening the doors to new technologies, such as the integrated solar battery charger available in the iPhone 5sp.SWOT AnalysisSTRENGHTSWEAKNESSESNever ending battery lifeLess Cables = More ConvenienceReliability of iPhone, Strong Brand NameLonger battery life = More ProductivityRequires Frequent Exposure to SunlightCell Phone Covers May Block Solar PanelCostPossibly Not Appealing in All Locations GeographicallyOpportunitiesTHREATSIncrease Apple’s Market Share of Cell PhonesConvert UsersFirst to Introduce New TechnologyHigh Revenues in Sunny LocationsChange in Market TrendsMay not Charge as Fast as Conventional MethodsCompetition Quickly Releasing Similar ProductsNot Applicable in Locations Lacking Adequate SunlightCompetitionThere are currently a variety of alternative charges on the market. None of these are integrated into a cell phone and none are known for being overly efficient or convenient. Some of the most popular solar battery chargers include the Concept Green Solar (CGS) 1250, CGS 3500, and the JOOS Orange. The CGS 1250 runs at about $20 per unit, the battery capacity is only 1250 mAH and cannot fully charge a battery. It is lightweight, small and relatively durable. Some reviewers found the CGS1250 to be a good product for the price paid, while others found it to be a heap of junk.The CGS3500 runs at about $50 per unit, it is small, lightweight, and relatively durable. The battery capacity of the CGS3500 is 3500 mAH. Consumers really like this product but find the charging process to take too long. The JOOS Orange solar charger has a price tag of $150 per unit with a battery capacity of 5400 mAH. The JOOS Orange can survive a wide range of temperature conditions and is water proof. It takes 12 hours to get a full charge, but one hour of sunlight results in two hours of talk time. The JOOS Orange is built for those on the go, who spend long spans of time away from traditional power sources. The JOOS may be heavy and bulky but it can withstand a multitude of situations making these attributes well worth it. The JOOS orange does not have to be directly angled toward the sun in order to receive a charge and can even charge on a cloudy day. Reviews are relatively positive for the JOOS Orange, with weight being the biggest complaint among consumers. It is essential to look not only at alternative chargers but also other cell phone producers in order to get a clear picture of who the completion for the iPhone 5sp is. Label, Title, Brief Explanation, CitationFigure …. Provides a graphical look at the cell phone market for quarter three of 2013 (CNET, 2013). The iOS operating system has the second largest market share with 12.9%. Android has the largest market share with 81.0%. The biggest competitors that the iPhone 5sp faces are the Samsung Galaxy S5, the Lenovo Vibe Z, and the LG-G Flex.We need to include place and price in these strageties. See the note she put on our graded first draft.Samsung’s StrategyAlthough Samsung put top of the line adapters and drivers into the Galaxy S5, they are taking the quality of life approach to market their new phone. In the Official introduction video for the Galaxy S5, Samsung opens up with the quote, “Innovation is not just about technology, It’s about how it improves every-day life”. Samsung has realized that the average phone consumer does not know enough about high performance processors, video rendering cards, and Memory, but is more concerned with the simple things like a camera that can “capture meaningful moments instantly” and being able to “stay fit and more active” (Samsung Mobile 2014). Samsung is also aware that there is still a part of their consumers that is interested in their phones for the cutting edge technology they put inside of it. With a 2.5GHz quad-core processor, 2GB of RAM, and a battery that can last for hours on end, the Samsung has created a machine that is more powerful than the average computer of 5 years ago. These specs keep phone and tech enthusiasts coming back for the newest Galaxy product (Samsung 2014).Lenovo’s StrategyLenovo’s model for the vibe is “for those who do”. Lenovo is focusing on the social aspect of a cellphone, with the ad trying to appeal to a younger, more active audience. Lenovo touts qualities such as the Vibe Z’s dual high resolution cameras and 4G speed because they know that the active youth want to capture their unforgettable moments, and share them as fast as possible. The Vibe Z is also no slouch in the technical department. It features a 2.2GHz quad-core processor, 2GB of ram and I high resolution 5.5” screen (Lenovo 2014). LG Electronics’ StrategyLG Electronics focuses on the innovation, sleekness, and durability of its G Flex model. LG uses clever slogans such as “shape your experience” due to the G Flex’s unique curved shape. This shape is not only for looks, it also adds high durability to the phone. In one commercial for the G Flex, LG continues to add more and more weight on the phone only to prove that it can withstand high pressure and will always return back to its original form. Even with its unique shape, the G Flex still has high quality technology to power itself. It uses a 2.26 quad-core processor, 2GB of ram, and 1080p full HD camera (LG Electronics 2014).Product Offering Label, Title, Brief Explanation, CitationThis image is a breakdown of our product, the iPhone 5sp. The iPhone 5sp features solar power technology, full 1080p HD display, fingerprint recognition, HD front facing camera, 30pin Apple USB, and an HD eight mega pixel camera. The iPhone 5sp has a layer below the surface of the phone, surrounding the screen, of solar panels. These solar panels are directly connected to the phone’s battery station and, when in light, will continuously feed the battery energy. This can be done while the phone is in use, or while the phone is off. While the phone is in use, the phone will experience a much longer battery life on a full charge. While the current model iPhone 5s can only hold a charge in use for around 10 hours, the iPhone 5sp can maintain use for over 25 hours in sunlight. While the solar panels cannot provide enough power to charge the phone above its current state while it is in use, it is able to feed enough energy to the phone to increase energy efficiency above 100%. While the phone is on standby or off, the phone is put into charge mode. This mode will charge the battery of the phone, although a full charge may take up to six hours (Apple, 2014). The phone features technology that makes the solar panels available to receive sunlight without the negative effects to the sleek look of the phone. This is done with a patented one way mirror type technology. This technology allows the solar energy to be received by the panels, but does not allow the user to be distracted by the solar panels surrounding the screen. The phone is available for coverage from Apple care. Apple care will fix or replace damaged solar panels and any problems the phone may be having with the battery.Keys to SuccessThe key to the iPhone 5sp’s success will be:Apple market share growthLifestyle changesCompetitor incompetenceApple market share growth would greatly accelerate the progress of the iPhone 5sp. As we have shown in the competition portion of this report, Apple is a far second, behind Samsung, in the cellular market. If Apple were to gain some ground and increase the percentage of people using iPhone, this would create more publicity for our product. Apple users have very high customer loyalty, meaning their next phone will most likely be an Apple product. If more people have iPhones, they will most likely upgrade to the newest model, which will be the iPhone 5sp.Lifestyle changes would also accelerate the progress of the iPhone 5sp. The iPhone 5sp is useful for people of all walks of life, but will be especially useful for very active users. Active users refers to people who like to maintain an active lifestyle by doing activities such as hiking, running, biking, rock climbing, hunting, bird watching, etc. These people will have more incentive to purchase a phone that can last longer/charge in the sun, where they will be for most of their time. If we see an increase in these types of lifestyles, we may also see an increase in the amount of phones petitor incompetence refers to our biggest competitor, Samsung, not being able to live up to expectations on their Galaxy S5. If Samsung’s “next big thing” is a flop, they will lose some of their hold on the cellular market share. If Apple can take advantage of those dissatisfied customers and convert them to iPhone users, they are most likely to purchase the newest iPhone model series which includes the iPhone 5sp.Critical IssueCritical issues for the iPhone 5sp will be:Hardware SpecsCostDurabilityHardware Specs are on growing in importance when it comes to what customers are looking for when shopping for a phone. Apple is notorious for being skimpy with the amount of hardware they put in their products. An Apple laptop with $300 worth of hardware can cost a consumer well over $1000. In order to keep up with other cellphone manufactures, who supply their phones with quad core processors and large amounts of RAM, Apple must follow suit and upgrade the hardware specifications.Cost will be an issue for the iPhone 5sp. iPhones are not cheap and solar panels are not cheap. The iPhone 5sp is a combination of both and will therefore not be cheap. Not only will it be expensive to purchase, but also to manufacture. It is essential to find an achievable cost of goods in order for Apple to continue making a profit. If the price of the iPhone 5sp is substantially higher than that of the iPhone 5s it could potentially scare off customers. Durability will be crucial to the iPhone 5sp. Cellphones are used to seeing all types of abuse, from being sat on to being dropped on concrete, but the iPhone 5sp will have an extra thing to worry about with the solar panels. If one drop can shatter a screen, one drop can also shatter solar panels. Apple must make the phone durable enough to withstand the impact of a fall or else consumer perception will fall. If people think the main selling point of the iPhone 5sp will break too easily, they will not purchase it. Marketing StrategyValue PropositionThe iPhone 5sp disconnects the cell phone from the power outlet, opening up a world of freedom for the user. The iPhone 5sp is an iPhone with an integrated solar panel to charge the battery. The iPhone 5sp is always there for you when you need it, out of site but constantly working. Our customers are athletic and always on the go, they expect convenient, dependable technology. The integrated solar panel cell phone battery allows the user to stop worrying about the cell phone. Bringing life to your phone to equip you with the tools you need to thrive. MissionWe excel at offering cutting edge technology. Through innovation and open channels of communication we are able to provide the customer with the products they are asking for. We are in business so we can have a positive impact on the lives of those we provide products to. By offering style, functionality, and new technologies we prove to ourselves, and to our customers that we are the best of class.Marketing ObjectivesThe purpose of the iPhone 5sp is to allow users the freedom associated with a constantly charged cell phone battery. Through a survey of 51 respondents it was found that 90% would be interested in purchasing a cell phone with an integrated solar panel cell phone charger. It is expected that once this battery is proved to be successful in maintaining a full charge, it will be desired by all cell phone users. Financial ObjectivesWhen looking at the production costs of making an iPhone 5sp, we must first look at the production costs of making an iPhone 5s. On a strictly hardware and manufacturing level, the iPhone 5s costs approximately $199 to produce (Wall St. Cheat Sheet 2013). This price may vary due to components being outdated or discontinued, but for the purposes of this report we will assume the production price of $199. Apple sold the iPhone 5s for $649 at launch, bringing in a crude profit of $450 (this does not include software, licensing, royalties or any other expenditures).The iPhone 5sp will have a similar price. Although the solar panels will add an additional $5 to $20 to produce, depending on the type of panels and the cost of integration, it will be possible to keep costs down using similar methods as the iPhone 5c. This means the iPhone 5sp will have to sacrifice luxuries such as the more powerful processor and the fingerprint scanner. These lost features will not affect the iPhone 5sp because its purpose is battery life not computing power, which usually comes at the expense of battery life. By dropping such luxuries, the iPhone 5c has kept its manufacturing costs down to $173 (Cnet, 2013). It will be possible to achieve manufacturing costs less than that of the iPhone 5s using the iPhone 5c specs. The additional cost of the solar panels will result in a manufacturing cost of $193 per phone. This will bring in a crude profit of $456.For opening weekend it is estimated that the iPhone 5 sales figures will be surpassed. The iPhone 5 sold 5 million units during its launch weekend. The iPhone 5s and the iPhone 5c sold 9 million combined units during their launch weekend. The iPhone 5c and iPhone 5s were released in a dual launch; those sales figures are not obtainable for a single launch of the iPhone 5sp. Selling 5 million units will bring in approximately $3.24 billion in revenue and $2.28 billion in crude profits. Target MarketsIn the market analysis portion of this report the target market was touched on briefly in terms of demographics, geographics, and psychographics. DemographicsThe target market has been chosen based on who the iPhone 5sp will benefit the most. Single, active, young adults are the primary target market. Single people will be more compelled to spend a significant amount of money on advanced technology because they do not have anyone else to worry about financially supporting. Young adults are tend to be more active and will therefore be spending more time away from home. This will result in the iPhone 5sp having a perceived value that may not be present in other demographics. GeographicsThe iPhone 5sp will be marketed in the United States initially, with potential for an immediate launch in Europe and Asia. These three regions have the highest purchasing power (Country Comparison, 2014) and are likely to see the highest sales. PsychographicsSuzi needs to doOutdoor EnthusiastsThe iPhone 5sp can be used for a wide variety of things including, as a GPS, as a camera, and as a music player. All of these applications can be useful during long periods spent outdoors. Unfortunately they also all drain battery life failry quickly. The iPhone 5sp will appeal to outdoor enthusiasts for this reason.PositioningThe cell phone industries major product attributes are:User FriendlyComputing PowerSimplicityCostOther iPhone models and competitors have already positioned themselves to fit these attributes. The iPhone is positioned as a user friendly phone. It boasts its simple, yet effective, user interface (UI), ease to use camera, and huge variety of apps.The Samsung Galaxy series has positioned itself as a power packed mobile phone. The Galaxy series is always a leader in top-of-the-line processors, detailed cameras, and display.Simplicity is a position which usually belongs to the elderly or the technologically impaired. The most successful mobile phone manufactures have abandoned this position in order to put more resources into manufacturing modern phones, however, some companies embrace this position and continue to build simple phones with buttons and hardly any UI. The Jitterbug is a cell phone that has very large buttons and only has the ability to send and receive calls. The iPhone 5sp will create a new niche in the market positioning toward battery life and convenience. Currently people do not take battery life much into their decision of buying a new phone; this does not mean it is a trait they do not want. As has been shown through research, battery life is a problem the majority of cell phone users have and something they want a solution for. One of the reasons it is not something cell phone users take into consideration when purchasing a new phone, is because it is an issue cell phone manufactures have not addressed yet. It is a problem that up until this point has been left for third party accessories to address. By combining the phone and a battery life solution, it is possible to offer a phone with a long lasting battery and the convenience associated with it. StrategiesKyle needs to doMarketing Mix:PricingPricing the newly innovative Apple iPhone involved deep consideration of certain key factors, including identifying the target market, tracking how much competitors are charging, and understanding the relationship between quality and price. The price for the iPhone 5sp was decided based off of competitors pricing of similar products and previous set prices from Apples latest products. The recently launched iPhone 5 had an initial selling price of $649 when launched on January 25, 2013. Apple sold roughly 5,150,000 iPhone 5s within the first two months on the market. A majority of these sales, 83%, came from loyal Apple fans who previously owned the iPhone 4. The iPhone 5sp will be priced at $649, to stay on track with previously successful prices. A price skimming and premium pricing strategy will be implemented. This pricing strategy will give Apple the flexibility to lower the price of the iPhone 5sp to meet the demands of the market and their response to the initial set price. DistributionApple products are currently available through multiple channels, such as the Apple store, distributors, and online retailers. The most successful channel for iPhone sales are through distributors such as AT&T and Verizon. Through these distributors people have the ability to link their cell phone plan with the iPhone. The iPhone 5sp will be available in all the places people already have access to Apple products, this will add convenience and familiarity. The iPhone 5sp will initially be launched in the United States, and will later be launched in the other two geographic segments that Apple operates within. With time the iPhone 5sp will be sold at an international level through all reputable retailers. Market CommunicationsAdvertising, public relations, sales promotions, and personal selling will be the major communications tools utilized.AdvertisingThe goal of the iPhone 5sp campaign is to integrate Apples current message of “revolutionary communications and audio/visual experience” with solar technology. This is in quotations marks, should it have a sourche Is it a direct quote? Why is it in quotes? The iPhone 5sp will differentiate itself from its competitors through its solar technology. A.T.V campaing (What is this? What does A.T.V stand for? It needs to be explained) Advertisements will appear heavily on television with the intention of making people aware of the new technology and its benefits. The innovative distinctions found on the iPhone 5sp, such as the reduced need for recharging the battery, will be emphasized in all advertisement techniques used. Public RelationsPublic relations will be established through sponsorships with popular sports players and/or public stars who will endorse the iPhone 5sp. This sponsorship will reflect positively on Apple and the new technology by making it visible at sporting events and on public media. Building good relationships with those sponsored will give Apple favorable publicity and build an attractive corporate image. Personal SellingThe associates that work in Apple stores are very knowledgeable and tech savvy. These representatives are trained thoroughly in both product information and customer service. When the iPhone 5sp is released, all staff will be trained to effectively help customers with any questions or problems associated with the iPhone 5sp. Marketing ResearchPrimary research was conducted through surveys intended to foresee potential interest and success of the iPhone 5sp. The results showed that the target market would have interest in a cell phone with an integrated solar charged battery. It also showed that people would be willing to pay more for a technology that would add convenience and make it easier to keep up with busy lifestyles. Secondary research was done through various internet sites that allowed multiple statistics and Apple facts to be used when necessary. There was much discussion and research done to figure out who the biggest competitors to Apple are, and the most effective way to launch a new product. The primary and secondary research was utilized to better understand the target market, how to effectively place the iPhone 5sp, an adequate price, and where to place emphasis on selling.FinancialsBreak-even AnalysisSuzi needs to doSales ForecastBelow are charts showing the iPhone 5sp’s projected sales. The past few generations of the iPhone have been released in September, the last month of the third quarter (Q3). This release time is so that sales do not dwindle from a lack of relevancy during the holiday season. Q3 of 2014 yields high sales even though the phone will be released at the end of the quarter. This is due to the fact that iPhones have extremely successful launch dates. Many units will be sold during the first weekend because Apple has a very loyal fan base and is known to build up hype around the release of a new product. Q4 of 2014 will see relatively high revenues due to the holiday season and the newness of the phone. The first two quarters of 2015 will see sales similar to those of 2014. Apple releases a new model of cell phone almost every year, this will result in a decrease in sales for the iPhone 5sp in the second two quarters of 2015 as customers anticipate a new release. 2014 will see higher revenues than 2015 even though the iPhone 5sp was only available for four months during 2014.Expense ForecastLaMarcus needs to doControlsFour key segments of business will be analyzed in order to measure the success of the iPhone 5sp. These are:Financial: revenue and profitabilityMarketing: sales velocity and market shareProduct Level: time, quality of product, and budget to salesCustomers: satisfaction, awareness, imageThe selling price of the iPhone 5sp will be constantly measured and evaluated. The revenues and profits received off of these sales will then be derived and recorded. These records will be evaluated on a monthly and annual basis. Prosperous returns are anticipated due to successful product launches of the iPhone4 and 5; which sold roughly 5 million units within the first two months at a stable market price. The market price of $649 is expressed within the reputable Apple name and is ultimately what consumers will pay for an Apple product. The number of units sold will be measured on a weekly, monthly, and annual basis. Customer surveys will additionally help Apple monitor the progress and success of the iPhone 5sp. These surveys will provide detailed information about how the consumers perceive the product. These perceptions may reflect: pricing, quality assurance, known issues with the product. The questions will be relative to the four drivers stated above and will be focused questions in regard to the short and long term goals established. ImplementationKyle needs to doMarketing OrganizationLaMarcus needs to doContingency PlanningAs previously mentioned in the critical issues section of this report, the difficulties the iPhone 5sp is facing are: hardware specs, cost, and durability. There is not a phone on the market that can withstand every major impact, the iPhone is no exception to this. The addition of a solar panel will ultimately make the phone more susceptible to damage upon impact. The solar panel will be located on the front of the phone, allowing the use of protective casings. The worst case scenario would be that the solar panel breaks easily upon impact. This would give the iPhone 5sp a bad reputation and could ultimately tarnish Apples brand image. This situation would be handled by addressing the issue immediately and supplying the customers with free repairs and a better protective case. Going forward it would be necessary to reconstruct the protective bearing around the solar panel and provide better support.The cost of an iPhone and solar technology are not cheap, combining the two will result in an extremely expensive cell phone to manufacture. The survey indicated that people are willing to pay more in order to have the convenience a solar charged phone would offer. It is likely, however, that there is a ceiling to how much people are willing to pay for such a convenience. It would be extremely unfortunate to realize that the money spent on manpower, time, and materials would not see a return on investment (ROI). In this situation it would be wise to partner with a successful solar panel company in order to keep costs down. This could include an agreement where Apple provides the company with cell phones, and the phone then supplies Apple with solar panels. The logo of the solar company would then be engraved on the back of all iPhone 5sp’s to provide the solar company with additional advertisement. Apple is notorious for supplying minimal product at maximum prices. Apple is able to do this because they have been able to differentiate themselves and offer products unlike those offered by the competitors. Apple products do not require anti-virus protection, yet do not get viruses. Apple products are more durable than those of competitors in terms of everyday wear and tear. Apple products are also made to very high standards and have a very loyal fan base. If a competitor were able to discover how Apple produces their products to the standards they do it could prove very detrimental. This would take away Apples competitive advantage and require them to strategize the business plan. In order to stay one step ahead of the competitor Apple must find an innovative genius that could keep the company on the path that Steve Jobs laid out. ReferencesCountry Comparison?::?GDP (purchasing power parity). (n.d.). Retrieved May 1, 2014, from ................
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