I



APPLE

I. Executive Summary

The Apple Corporation is a very large corporate owned company. Apple sells many different products. A few of their most familiar products are computers, the apple notebook, the ipod, and the iphone. As Apple is such a large company, they have had some difficulties with competing with many other worldwide organizations.

An evaluation of the company’s internal strengths and weaknesses and external opportunities and threats served as the foundation for this strategic analysis and marketing plan. The plan focuses on the company’s growth strategies and suggesting many different ways that it can build on its already existing customer relationships. It also focuses on the development of new products, and improving the products that it already produces. It also focuses on new and improved ways to service its target market.

II. Environmental Analysis

Founded as a large computer manufacturing company, Apple has evolved into a marketer of high quality technologies. Over the many years that Apple has been in business, they have continuously provided a quality product to its consumers, and quality service. They also continue year after year to develop and perfect new and existing products. Apple is and continues to be top runner in the game. ()

A. The Marketing Environment

1. Competitive Forces. The competition of technology (especially computers) is very strong on a local, regional, and national level.

When it comes to the competition that Apple has for its computers, it is a very big playing field. They have to compete with companies such as; Gateway, Dell, PC, and Macintosh. Another big area of competition is the ipod. Most of their competition with the ipod relies with the MP3 players. Although that competition really does not compare in technology, MP3 players are taking sales away from Apple because they are a lot cheaper in price. Now Apple also has competition in the cell phone business. They just recently came out with the iphone, and once again they prove that they are a head of the competition. ()

2. Economic Forces. Nationwide, many companies many companies have produced their overall production budgets as they face the need to cut their expenses, because of our economy. If you turn on your TV, you can see that there are not many advertisements for Apple products as you would think. The reason for that is because they are cutting the costs in the advertising area to same some money. The one area that Apple is not cutting so much in is production. They are still working on the production to perfect not only their old products, but coming up with new ones as well. ()

3. Political Forces. There are no expected political influences or events that could alter the production of Apple products. The only way that politics would be an issue is if hey happened to be handling endorsements for certain political figures. ()

4. Legal and Regulatory Forces. In the past couple years Apple has been promoting itself on many different ways. One if the ways is by e-mails or pop-ups. Most of these ads to any person are considered junk mail, and they just trash them. Although most people react in this way, that does not mean that it shows a negative outlook towards the company. The fact that more companies are diverting their promotion dollars to specialty advertising companies show us indication that most of them do not fear America’s legislation and the minimal impact that it may have. ()

5. Technological Forces. One of Apple’s new technological trends is the iphone. It was designed to pretty much do everything that a computer can do, but can fit into your hand. The iphone can access the internet, they contain it’s very own ipod, and make phone calls all at the same time. As Apple’s trend of growing technology continues, who knows where they will be in the future. ()

6. Sociocultural Forces. In today’s society, consumers have less time to work or leisure. The main sellers of today’s products are convenience and ease of use. In lemons terms, if the product does not save time and is not easy to use, consumers will simply ignore it. The products that Apple makes, such as laptops, iphones, and ipods are definitely very time efficient. The products fit this lifestyle because they can be carted around very easily and accesses at any time. ()

B. Target Markets

By focusing on commitment to service and quality, Apple has effectively implemented a powerful name for their company in a very diverse market place. Apple’s target market consists of many different subgroups. They target to many big business corporations that need technologies, such as computers and phone to function. The computers that they make also target families, and really everyone on the planet. Now days you need a computer or a laptop, or some form of technology to survive in the world. The computers also target many schools around the United States. They also target the younger population with the ipod. The ipods main target market is the younger population, but they target the general population as well. In general, Apple’s target market is really anyone on the planet who needs to live. About 85% of America has at least one laptop, computer, iphone, or ipod. ()

C. Current Marketing Objectives and Performance

Apple’s software is so advanced that the competition in the world by other companies just helps them to grow stronger, and push them to strive. Someone can walk into an Apple store and see a computer, pick it up and buy it. Someone can also order a computer or laptop to certain specifications to fit their individual needs.

Apple markets its products in many different ways. They market by television commercials, magazine articles, and by showing their logo or product in a movie or television show. They also market their products by having them being used by major corporations, and schools. Apple holds about 90% of the vast market of computer and notebook sales. Apple currently holds at least 7% of the actual computer and laptop market. Apple also markets itself

just by using its own name. Over the years Apple has created an extremely big name for itself, and that alone helps Apple stay ahead of the game in sales and technology.

Apple is currently bringing in more money than any other computer software company in the United States. Their goals for the future include increasing their sales by at least 10% over last year, and perfecting their existing products and making new ones to market. These goals will help Apple to continually have high performance levels. ()

III. SWOT Analysis

Strengths: Apple is a powerful company yet very successful. Statistics show Apple iPod music player has dramatically increase and their company second quarter profited to $320 during June 2005. This fashion mp3 player target children as well as adults of all ages which made their profit sky-rocket. Apple is also known for their notebooks. The notebook makes most of Apple income and is very strong in competition. Having products such as the iPod and Apples various notebooks, the company will be successful and opening opportunities to more ideas to come.

Weaknesses: Reportedly, the recent Apple iPod Nano have some major defects. One defect was the weakness of the screen. Apple is replacing all the batch of iPod Nano and fixing the screens. This causes more money being put into the product forcing Apple to lose some money when they could be spending the money on other products. With this situation, Apple is expecting to make profits off their accessories such as battery chargers and different color cases. Products such as this will continue to affect the business if their research isn’t accurate. Having defects on products slow the process of Apple and money are lost at this state.

Opportunities: Apple has the opportunity to expand their knowledge to produce technology that people want. Having alliances such as iTunes can strengthen Apple. They can produce cell phones that meet the demands of the consumers. Apple iTunes music store has developed a phone that can manage the tracks that the user stores on the USB or other memory card. Technology advancement such as this will be a success down the road.

The company can exceed their expectations by having different opinions brought by consumers to know what the demands are. Simple tasks such as handing out surveys can lead to gold mine for Apple. Targeting strategy should be well accurate to fulfill the need of the company. Apple has the opportunity to achieve over their competitors such as Dell and Compaq. They can make their company more broad so it can be reached out to all consumers.

Threats: The biggest threat to Apple as well to all companies is competition. There is a lot of competition in the technology market. Apple attracts many competitors because they are successful and competitors want to overcome that obstacle. Technology such as a MP3 player is very popular in our society today and competitors are working very hard to advance that product. Companies such as Dell, Sony, and Microsoft are just some companies that are competing with Apple. Competition is the main factor that hurts all companies and Apple is advancing their products so they won’t be affected.

IV. Marketing Objectives

Apple Inc. is a company that is the technological business. As they are always coming up with new and inventive ideas, Apple is one of the leading companies in the industry. Building computers, music and video devices, software, and other accessories, Apple is an innovator in the industry. They start new trends in the technology world by coming up with crazy and creative ideas for new products.

People see Apple inc. as a leader in technology as they are always setting the standards for other companies. With their unique products they blow the competition out of the water in most aspects of the tech industry. In saying this, Apple has an objective to keep up the great ideas for new products. Apple has a reputation for being the founders of many new products. When Apple introduced its ipod (mp3 player) it was a breakthrough in the music player world. Everywhere you would look, you would see someone with an ipod. This is what Apple needs to do; they need to keep coming up with these breakthrough ideas to keep this company going strong.

Another objective of Apples should be to keep expanding their company and explore the tech world by going into different segments. So far, Apple is involved in many different segments such as, computers, music and video players, software, computer accessories, and more. Perhaps Apple should try going in a different direction as well. For instance, they could try manufacturing televisions or maybe even DVD players. This company is so far advanced on technology that it should not have any problem adding another product to their line of many high tech gadgets.

Another possible objective is to look at the products and figure out a way to cut costs so that they can cut the selling price for the consumer. Although Apple makes a quality product, it is kind of on the expensive side. These products do offer a lot to the consumer, but if they can somehow figure out a way to make it possible for the lower income family to purchase these products and use these interesting features I think that sales may grow for the company. You may be paying for a better quality product, but on average these products such as computers are sometimes $500-$1000 more than their competitors. On the other hand, other products such as the mp3 players are closer to the range of the other leading companies when comparing “apples to apples.” ()

V. Marketing Strategies

A. Target Markets

Target Market 1: Apple inc. sells a lot of its products to schools and educational institutes to give students a better knowledge of programs such as video processing. ()

Example: In many schools around the country Apple is distributing almost 700 iBook notebook computers to select schools. Schools such as, Skyway Middle School had their seventh graders try out this new product. Along with the students, the teacher got to try these products as well. ()

Target Market 2: Apple has its own unique operating systems and some big businesses decided to go with the Mac OS as opposed to the popular Microsoft Windows OS. ()

Example: Businesses that are involved in video processing and high tech software, may want to go with Apple because of its advanced software that it has to offer. ()

Target Market 3: Apple has found a way to get into the music industry with its fairly new product, the iPod. Along with this mp3 player, Apple has setup a software program where you can purchase songs online for $.99/song to put onto your player. This program is called iTunes. ()

Example: Many people around the whole world listen to music and of those people a majority of them own or have owned an iPod at one point. Everywhere you look people are walking around listening to music on their iPods. For example, at school, at the gym, walking, running, etc. Apple made a good choice by going towards the music market, since so many people listen to music. People will buy the iPod and perhaps down the road purchase another product from Apple if they are happy with the quality. ()

Target Market 4: Apple also distributes its products to government agencies and employees. These government stores are setup to sell Apple products at a special price for federal customers. ()

Example: Government stores such as, Gov connection and CDW Government inc. have special contracts setup with Apple to help these government employees purchase these products at a lower price with their special smart pay card that they are issued. ()

VI. MARKETING IMPLEMENTATION

B. Marketing Organization

1. Once approval has been obtained, we will move swiftly to implement the plan. It is essential that we have an implementation plan and a control plan to ensure success. This global application requires diligence in all areas to ensure success. We will therefore put controls in place to monitor and measure the results of the project to ensure the desired objectives are achieved. The marketing units will be organized by regions. The following chart identifies and titles the target regions:

| | | | |

|North America |Central America |South America |Western Europe |

| | | | |

|Eastern Europe |Australia |Pacific Rim |South East Asia |

| | | | |

|South West Asia |Central/Northern Asia |Africa |India |

2. Decision making authority will reside with each Region Manager. Region Managers will report to the Senior Marketing Manager for Development and Growth (SMMDG). The SMMDG will report to Apple INC Executive Marketing Manager (AIEMM). Management offices will be established in each region as the primary operations office for the region. SMMDGs will establish a communication network that provides regular and reliable daily communications with each region manager. SMMDGs will also schedule and conduct formal and informal face-to-face meetings with all region managers on a periodic basis to maintain comprehensive understanding of regional operations and provide detailed reports to AIEMM on a monthly basis.

3. Regional managers and their immediate subordinates will be empowered to make decisions and execute plans within their Area of Responsibility (AOR). All decisions and executed plans will be reported through the Regional Managers as soon as practical after being incorporated but no later than 48 hours. Regional Managers will notify SMMDGs weekly regarding the details of those decisions and plans. SMMDGs will evaluate those decisions and plans; provide Regional Managers feedback regarding the evaluation, and forward feedback to AIEMM within seven (7) days. We want to stress support for maximum autonomy in decision-making at the regional level while maintaining corporate-level knowledge of ongoing operations. This is an enormous global effort and the need for independence is imperative to ensure that Regional Managers can fully utilize their knowledge of local culture and tradition to best coordinate efforts toward successful implementation.

B. Activities, Responsibilities, and Timetables for Completion

The activities involved in global implementation of the plan are extensive and require firm timelines and management oversight. Overall coordination of the activities rests with AIEMM. Specific responsibilities and timetables are the responsibility of the SMMDG. For the company to capitalize on the time-critical nature of this expansion, and to minimize opportunities for competitor development and introduction of copycat products, it is imperative that implementation begin as quickly as possible. The schedule has been submitted, reviewed and approved by the both responsible managers and is set to begin October 1, 2007, and follows the timeline below:

October 1, 2007: Establish the twelve positions of Regional Manager for the areas identified as target regions and abbreviated titles as follows; Regional Manager North America (RMNA), Regional Manager South America (RMSA), etc.

November 1, 2007: Identify the twelve Regional Managers from qualified pool of current manager/assistant manager positions within the company. Match RMs to knowledge & skills relevant to geographical area to be assigned.

December 1, 2007: RMs makes recommendations for regional office locations and staffing requirements. Develop job descriptions and criteria for staff members and evaluate current pool of candidates from company employee roster where possible. Identify personnel needs outside company as necessary if current employees cannot fill specialty/skill requirements.

January 1, 2008: RMs submits budget requirements to SMMDG covering remainder of fiscal year (January 1-September 30, 2008). Include all travel requirements for establishing regional office, building leases, remodeling expenses, information technology needs, payroll, and all other day-to-day operating costs.

February 1, 2008: SMMDGs review, change and approve budget inputs as applicable. Include retroactive requirements for January, 2008.

March 1, 2008: RMs monitors and supervises office set up including required renovations. Begin moving staff into offices as renovation progress permits.

April 1, 2008: Begin analysis of each regional marketing climate and develop detailed strategies for rapid implementation of expansion plans.

May 1, 2008: Complete and submit detailed implementation plans to SMMDGs for further submission to AIEMM.

June 1, 2008: Complete office staffing and operational set up. Conduct briefing of all staff personnel to advise and instruct on detailed implementation plans. Begin implementation process.

VII. EVALUATION AND CONTROL

C. Performance Standards and Financial Controls

Our second strategy is emphasizing relationships. The tactics are marketing the company (instead of the products), more regular contacts with the customer, and increasing sales per customer. Programs for marketing the company include new sales literature, revised ad strategy, and direct mail. Programs for more regular contacts include call-backs after sales and/or installation, direct mail, and sales management. Programs for increasing sales per customer include upgrade mailings and sales training.

Our value proposition has to be different from the standard box-oriented retail chain. We offer our target customer, who is service seeking and not self reliant, a vendor who acts as a strategic ally, at a premium price that reflects the value of reassurance that systems will work.

Our competitive edge is our positioning as a strategic ally with our clients, who are clients more than customers. By building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they need it. Several critical factors will support this goal:

•Emphasize service and support.

•Build a relationship business.

•Focus on small business and high-end home office as key target markets.

For businesspeople who want to be sure their information and communication systems are always working reliably, we must be the company viewed as a trusted strategic ally who makes sure their systems work, their people are trained, and their down time is minimal. Unlike the chain retail stores, we must know the customer and go to his or her site when needed, and offer proactive support, service, training, and installation.

D. Monitoring Procedures

The final stage is to establish targets (or standards) so that progress can be monitored. Accordingly, it is important to put both quantities and timescales into the marketing objectives. Our objective is to capture 20 per cent by value of the market within two years.

Changes in the environment mean that the forecasts often have to be changed. Along with these, the related plans may well also need to be changed. Continuous monitoring of performance, against predetermined targets, represents a most important aspect of this. However, perhaps even more important is the enforced discipline of a regular formal review. We will conduct quarterly reviews to measure our progress and achievements along with a quarterly rolling review - planning one full year ahead each new quarter. Of course, this does absorb more planning resources; but it also ensures that our plans embody the latest information, and - with attention focused on them so regularly - forces both our plans and their implementation to be realistic.

Most organizations track their sales results or the number of clients. We will track them in terms of 'sales variance' - the deviation from the target figures - which allows a more immediate picture of deviations to become evident. We will also incorporate `micro- analysis', which is another way of saying the normal management process of investigating detailed problems, and investigate the individual elements (individual products, sales territories, customers and so on) which are failing to meet targets.

We cannot afford to lose focus on market share. In some circumstances this may well be a much more important measure. Our sales may still be increasing, in an expanding market, while our share is actually decreasing which speaks badly for future sales when the market eventually starts to drop. We will follow several different aspects including;

•Overall market share

•Segment share - that in the specific, targeted segment

•Relative share -in relation to the market leaders

The key ratio to watch will be “marketing expense to sales ratio,” broken down into other elements including: “advertising to sales,” and “sales administration to sales.”

The bottom line of our marketing effort will be net profit where the emphasis will be to remain within budgeted costs. Each Regional Manager and their team will determine which plans and strategies need to be modified to stay within budget and make periodic recommendations to reduce overall costs without negatively impacting sales.

Recommendation

Apple has its strengths and weaknesses. It has competitions just like any other businesses. It can achieve at their segment competition if they continue to do what consumers want and need. The opportunity is broad for Apple and they take advantage of that opportunity to fulfill their expectations.

Submitted by:

Breana Ciolino

Joe Amato

Hung Le

Duane Dubie

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