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Apple Ipod Marketing Plan ----------------------------------Assessment task Marketing Plan Apple Ipod Contents Executive Summary____________________________________________3 Situation Analysis

-Market Analysis_______________________________________________3 -Product Analysis_______________________________________________4 -SWOT Analysis_______________________________________________ 4 -Competitor Analysis ___________________________________________ 6 Marketing Objectives__________________________________________ 7 Identifying Target Market -Selecting Target Market_________________________________________7 -Target Market_________________________________________________7 Developing Marketing Strategies Marketing Mix: -Product________________________________________________________8 -Price__________________________________________________________8 -Promotion______________________________________________________9 -Place__________________________________________________________9 Implementing the Marketing Plan__________________________________10 Monitoring and Controlling -Developing a Financial Forecast____________________________________10 -Comparing actual and planned results________________________________11 -Revising the marketing strategies____________________________________11 Appendix ______________________________________________________12 Appendix A_____________________________________________________13 Appendix B_____________________________________________________14 Appendix C_____________________________________________________15

Executive Summary The focus of this report is on new Apple Ipod product that has created increasing demands in various outlets. This product allows consumers to download not only their favourite music but also books and other literature which can be read and listened to. Additionally this Ipod can be used in your car and in other mobile settings. This report is for Apple to give a brief description of this product. Within this marketing report there is an insight of the situation analysis of this product, marketing objectives, the target market, marketing strategies that have been used and the forecasted strategies, monitoring and controlling. Situation Analysis Market Analysis Internal Influences Management: Effective management is required for the training and development of employees for the continue innovation of Apple Ipod and for retraining sufficient funds during competitor introducing new product. Capital Availability: Competition may cause mishap in the cash flow. Sufficient funds must be available when competitors unpredictably put forward their product in the market. Technological Adoption: Technology must be adopted to improve overall efficiency. It must be integrated directly into operations (to increase productivity), as well stay on date with the amounts of Ipods ordered, made and delivered. External Influences:

Competitors: Competitors will regulate what, when, how and why strategies will be adopted. The introduction of new products will greatly influence Apple Ipod. Overseas Influences: The breaking down of barriers between countries can increase the sales of the new Apple Ipod, as more people are made aware of the product. Demographic Patterns: Males and females from the age of 12years and over will be in favour of this product because of its new innovation to be able to not only play music but also books and other literature which would in fact appeal to them.

Product Analysis

Product Lifecycle

X- The stage that Apple Ipod is currently in.

Apple Ipod is currently in the growth stage, where more and more people are aware and purchasing the product, increasing product demand. Sales are growing rapidly and profits are rising quickly, however competition is increasing as competitors are more cognisant of the tactics of Apple Ipod i.e. using new features to market their product. During this stage there are also opportunities for wider distribution, which will result in higher sales.

SWOT Analysis

Strengths: Weaknesses: There are enough financial resources that are allocated for the operation of this product. Appealing to both males and females Good competitive skills Past products have had a good reputation Advanced key technology Product innovation skills The product has a narrow product line therefore unable to expand into other markets High prices may push potential customers to competitors with affordable prices Introducing a new product, when the niche market is already controlled by other competitors Poor use of promotional strategy, as consumers were not properly introduced on the products significant use. Opportunities: Threats:

Opportunity to capitalize financially Develop an admirable/exceptional goodwill that can have monetary value in future Opportunity for fast market growth as parents may see this as an educational device as it is able to read books. Growing market trend New competitors continually enter the market. The threat of not appealing to target market at all therefore generating a loss as opposed to profit Entry of imitators Vulnerable to the business cycle Tough laws being placed on internet MP3 downloads

Competitor Analysis

Competitor No.1 Competitor No.2 Competitor Name Rio Carbon (5GB) iriver H10 What are the product objectives? Increase sales of this product by 10% by the next year. MP3 players in all markets in which the company operates

To be the leading supplier of

What is the products current strategy? Sell off the products at competitive and profitable prices and maintain customer satisfaction To top competitors product technology by innovating the current product What are its strengths? Rio Carbon offer their product at affordable prices which appeal to consumers while maintaining strong quality The iriver H10 out classes the competition in the features that they offer to consumers What are its weaknesses? The Rio Carbon is a new competitor in the competition and therefore it may be difficult for them to gain market share because of the unknown brand loyalty The iriver H10 comes at a very costly price which may lead customers to purchase competitors products at an affordable price How does the Apple Ipod match up against the other products? The Apple ipod is much more popular because the market is aware of their product giving them an advantage over Rio Carbon although Rio Carbon is a new competitor which may intimidate Apple Ipod with their associated low costs. The Apple ipod is much more popular because the market is aware of their product giving them an advantage over iriver H10 although iriver H10 has been receiving outstanding reviews on their excellent use of new technology which may be a threat to Apple Ipods sales.

Marketing Objectives The various marketing objectives that will assist in the achievement in the overall product goal are: To be the leading supplier of MP3 players in all markets in which the company operates Increase in sales by 20% Increase in revenue by 20% Progressively increase market share by at least 15% within the year. Expanding distribution to department stores by 10% Increasing brand awareness to 60% of potential customers To expand existing markets by 10% in the next quarter. A promotion campaign will be introduced to encourage present buyer to increase the use of the product.

Identify Target Market Selecting target market Apple Ipod is aimed at young adults particularly those between the age of 12-25 It will appeal to both males and females Targeted at the niche market creating product desirability Middle/high class People who have a passion or interest in music and/or literature This is large enough to engender revenues and profits

Target Market Strategies Apple Ipod has adopted the differentiated market for their products as its products are characterised in age, gender and desire for image. Apple ipod is used by young adults and teenagers and for both male and female.

Develop Marketing Strategies Marketing Mix

Product This product allows consumers to download not only their favourite music but also books and other literature which can be read and listened to. Additionally this Ipod can be used in your car and in other mobile settings (refer to appendix A for product). Positioning aimed at the middle to high class, therefore product will be positioned in department stores associated with prestige products. This will create a strong, clear and consistent image of the product in the consumers mind which is essential. Branding Apple Ipod will give consumers one year warranty to assure consumers of the quality of the product. This will associate a level of quality with the brand and will not only increase brand loyalty and repeat services, but also sell products at a premium to competitors. Packaging Apple Ipods packaging will: Have product identification so easily separated from its competitors Product differentiation so it is unique using the most cost efficient method of packaging This will make the product both functional and desirable to possible consumers.

Price Apple Ipod will use cost base method to derive its prices. They will add a 65% profit margin to the cost of the product to gain efficient revenue. Price and quality interactions In this way, price creates perception of quality. High price attract an image of quality This will allow Apple Ipod to increase its market share

Promotion By promoting the Apple Ipod this will satisfy the needs of the customers and business. Consumers will gain better understanding of the product and how it can satisfy their needs, but on the other hand will help Apple Ipod increase their profits and market shares. Advertising - Apple Ipod will spotlight on a successful advertising campaign comprising of magazine and television advertisements focusing on (refer to appendix B for magazine advertisement): The target market (teenagers and young adults) How often they want the target market to be exposed to the advertisement When they want to reach their target market Most cost efficient methods to fulfil the above By doing this Apple Ipod will add value to their product by altering consumer perceptions Below-the-line promotions Apple Ipod will use a direct method to induce customers to purchase their product by offering any Ipod accessory (refer to appendix C for accessories) per customer for half the value price with every purchase of a new Apple Ipod. This will allow the business to directly measure the success of the campaign by observing the sales rate of the promotional tool. Place Distribution channels Apple Ipod will use indirect distribution where an intermediary organisation will be involved in the process. The intermediaries will provide functions such as: Fragmenting bulk supplies of inventory Give financial services to retailers Increase ease of customer purchase This will assist Apple Ipod as they can concentrate on other areas of the business Transportation Apple Ipod will lease trucks in order to transport the inventory to intermediaries. By leasing the trucks Apple Ipod will accumulate extra funds to utilize else were. Warehousing inventory will be kept in a warehouse close to the intermediaries which will minimise transport costs. Implementing, Monitoring and Controlling

Apple Ipod Company will change because of the new added features to the product range. For its success, Apple Ipod Company must impose several key changes. Production needs to be on time and meet the quota demanded from wholesalers. It must also be efficient so as not to build inventory stocks and inventory prices. The marketing needs to be motivated and knowledgeable about the product. The forms of promotion such as advertising must be attracting and enticing to the target market to get the greatest amount of exposure possible for the product. This will ensure the success of the product in the stores. Distribution of the product must be efficient. This problem has already been taken care of with convenient transport routes to commercial areas and transport already being arranged. Developing a Financial Forecast To achieve a healthy and continuous growth in profit. To attain a 15% increase in market shares within the annual and achieve positive growth in the sales of the PRODUCT! Minimising distribution cost

Financial forecast- marketing Revenue Costs Fixed costs Variable cost Total costs Net profit from marketing activities return on marketing investments 2005 $16,800 2006 $16,800

$9,350 $6,670 $16,020 $780 5%

$0 $6,670 $6,670 $10,130 152%

Comparing actual and planned results Financial forecasting - Apple Ipod predicted that there would be a 20% increase in their level of sales, but sales figures were lower than expected and showed a 10% increase in sales. It is suggested that Apple Ipod change their strategies to motivate further sales. Market share Apple Ipod predicted that there would be a 15% increase in market share, but this was due to external factors were there has been a large boost of competitors in the Mp3 industry threatening Apple Ipods market share. Profitability - Apple Ipod predicted that there would be a 20% increase in revenue, but sales figures were lower than expected and showed a 10% increase in revenue. It is suggested that Apple Ipod change their strategies to motivate further sales.

Revising the marketing strategies After 6 months have elapsed we have found that you need to change your marketing mix strategies to fix the above problems.  As mentioned above Apple Ipod received a decrease in sales, it is suggested that Apple Ipod change one of your marketing strategies to solve this problem. Apple Ipod should introduce a public relations scheme to improve the relationship between the company and their markets. Rather than advertising which is aimed at improving the public image of Apple Ipod, public relations is aimed at increasing a businesss sales.  In order for Apple Ipod to gain competitive advantage and increase market share you must readjust your marketing strategies. It is advised that Apple Ipod add an extra feature to their current product. A new innovative feature you may consider is cordless earphones that send the sound via Bluetooth technology. This will differentiate your product from current competitors and will result in an increase in market share.

Appendix A

Appendix B Optional Ipod Accessories iPod Dock, iPod mini Dock or iPod photo Dock Kit iPod Camera Connector iPod Power Adapter

iPod Dock Connector to FireWire Cable Sony Car Cassette Adapter Belkin Auto Charger

Griffin iTrip FM Transmitter Monster iCase Travel Pack Belkin TuneDok Car Holder

inMotion iM3 Belkin Media Reader In-Ear Headphones

Griffin iTalk Voice Recorder iPod Remote and Earbuds Monster iCarPlay Wireless Plus

iPod Socks Bang & Olufsen A8 Headphones Incase Travel Kit

Belkin Battery Pack 20GB/30GB or 40GB/60GB iPod Carrying Case World Travel Adapter Kit

Bose SoundDock iPod Stereo Connection Kit

USB 2.0 + FireWire Cable

Appendix C