1

Arshad Mahmood

Word Count: 4, 339 (excluding references)Turnitin similarity score: 1% (excluding citation)

SITUATION ANALYSISiPad-2, Apple Inc.s new product made it to the international markets on 25th March 2011 after quite a lot of advertisement hype and wait. This invention easily makes the list of the best products in the last ten years or so. The creation is a testimony of the success of Apple Inc. and is centered more on the use from fingertips than the hand. This sustains the road of progress that Apple has obtained after iPod and iPhone. The Economist made an interesting comment on the cover by saying, The enthusiasm of the Apple faithful may be overdone, but Mr. Jobss record suggests that when he blesses a market, it takes off.It can be inferred that Apple Inc. is doing wonderfully well at the moment. Much of its success can be pointed to the optimization of value exploration, value creation and value delivery. The initial level of value exploration targets the mind of the consumer and also the ability of the company. It also takes into account the resource space as well. On another level, the value creation is centered on getting the profit. Here, the key element includes competency in the paradigm of business and association with business partners. The third level is primarily based on management and is the value delivery. The crux elements include the management of resource, customer relationship and the business partnership.Apple succeeds as a strong company owing to the superior central management. This principle is centered on the management of the inventory, creation of new product, and on how to get and sustain customers. This principle has the effect of unifying the lines of work among the people in the production and distribution sector. This would include the suppliers and the distributors as well. The competing element is not the company but rather the marketing network.When one talks about the planning of the Apple Inc. regarding the market, they would know that it places influence on dynamism. The dynamism is the simple sustenance of the ambitions of the company along with the transition that take place in the market. The entire concept is based on the premise to mould the product into a profit generating commodity that has the capacity to grow. All the levels, in case of Apple Inc are stable and proficient in balance.Next is the strategic planning task which is based on four elements. One of them includes providing the definition of the purpose of the corporate. The next ones include the strategic business units and the process of giving resources to the SBU. This providence is done on the grounds of presence of market desire and the capacity of the business. Apart from that the plans for new business and pruning old ones is also involved.EXTERNAL ANALYSIS (PEST) Political-Legal Forces The variance in the legislation of countries across the globe might encourage the morale of companies or discourage it. Some of the factions that would provide a more than average potential in the market include NAFTA, European Union and other regional trade markets. They allow good opportunities in Europe, Latin America and Asia. Another factor which is hampering the growth of the business sector of the company is political instability, which is greatly influenced by terrorism. Another complication arises in the faction of intellectual property rights, as the company might be in violation of patent rights non-deliberately. This occurs because the patents are from third parties, and not an original patent. The companys repute would be projected in an infamous manner over the Beatles lawsuit. The environment authorities place regulations on the safe disposal and recycling as well, which have to be followed stringently by the company. Socio-Cultural Forces Computer industry can flourish well on the thriving of the computer and internet consumption globally. The literacy rate and the experience in terms of computer based knowledge has increased among customers. The new generations emphasis on education is an integral factor, playing a major role in the business of the company. Economic A shift of growth has been observed during the last few years. Earlier statistics showed a decline in economy and a consequent lowering of money expenditure and investments by consumer. Situations during the current time show some better indications for spending and profit. Economic recession had its effect on education sector in the US, and this has lead to a poor sale result of Apple in the educational sector. Another concept affecting the growth is the exchange rate of currencies, and the effect is further compounded with the presence of trade tariffs. Technology There is an evolution in technology and people are always waiting for the next best thing when it comes to information systems and the appliances associated with them. A good incentive for the company is the access of internet globally and its usage as well. There is a pretty good chance that the conventional desktop might become obsolete owing to technological advancement and better products. Another aspect is the increased usage of latest tech in educational institutes and offices as well.

INTERNAL ANALYSISThe basic area of expertise a company has is defined in their working fundamentals. When speaking of a brand like Apple, their proficiency lies in the following areas: Innovation and engineering excellence: Novelty and high-tech development Creativity and design: Product modeling & extensive marketing HRM policy: The workers and administration of HRM adds to the success of the company

When the main area of expertise of a company features that it is at a better standing as compared to the competitor, they have the upper hand of being a distinctive competency - the factor that allows the business to have competitive costs. As seen in the diagram above, these root from the companys assets and potentials and therefore, mould their tactics, giving the company, a chance to experience economies of scale and having the competitive edge as well. Below is a list of the potentials and assets of Apples distinctive competency; Human Resources: an effective workforce (peoples skills, practiced, informative, ambitious etc) Technological Resources: advanced IT (Communication tools such as Intranet & Extranet) Engineering & technical Development Capabilities: compressed lifecycle theories and producing/implementing new creations Creative capabilities: constructing the computer unit, computer design etc

It is believed that the innovative, constructive and technical advancement of Apple are the most renowned features of the company that help it to maintain the image it has today in the computer industry as it is all about introducing and implementing creations for peoples entertainment. In addition, these advancements in Apple will ultimately result to be one of the most distinctive competencies the company has, as the future for such innovations is bright when it comes to having a competitive edge. Internal Factor Analysis Summary (IFAS)The Internal Factor Analysis Summary (IFAS) includes the advantages and disadvantages Apple has by providing them remarks (analytical), a weight (0-100 each, overall sum of 100) and a rating (from 5 = very significant to 1 = not really significant) and calculating the overall weighted score.Internal factorsStrengthsWeightRatingWeightComments

Comprehensive Techniques3412The tactics are clearly defined and are achievable, comprehensive methods and coherence with the Apples hierarchy and culture

Creativity & design131565Apples brands are not only a product but an exceptional creation (artistic, the way of living)

Innovation16580Known for introducing and inventing new technology and development, engineering excellence

Entertainment Packages248Avant-garde of the digital world, exceptional Products (iPod, iPhone, iPad,iLife, iTunes, etc.)

Adaptability 6318Knows target market, instinctive

Business Tactics And productsUser friendly, advanced graphics and unique designs

Broad area of expertise and competency122Producing a whole new line of products (hardware, software, peripherals, etc.)

Advertising skills5315Extensive marketing, affiliating, renowned brand.

Flexible culture339Supports innovation of new ideas, provide power of autonomy, decentralized responsibilities

Labor Force9436High skilled workers, efficient, Powerful HRM

InformationTechnology4416Head of the internal communication industry, online facilities for customers

Business enforcement,commercializing5420Has trouble in making money out of new inventions, pays little attention on new ideas for business models

Insufficient critical size4312Because of the low market share of PCs, the company finds difficulty in being profitable.

Incompatibility11444Incompatibility with Wintel-standard deters customers and PG producers

Expensive hardware and software 236Highly priced products of Apple than comparable ones. Introduced "reality- distortion-field", Lack of consistency with economic existence

Lack of realism313The economic realities are inconsistent

High maintenance costs8432Expensive marketing, R&D, and production costs as well as they are unique products

Deficient developers224If compared with Windows, Apple has 300,000 developers Whereas Windows has 7 million

Dependability on chosen providers and producers236Circumscribed main suppliers, high customer demand and low productivity (Contract customers)

Low level of Specialization122Market full of competition at different levels and threat from partners as well

Total100

ResourcesCompetenciesCapabilitiesStrategiesCompetitive AdvantageHigh ProfitabilityBuildBuildShape

PORTERS FIVE FORCES MODEL of APPLE

Rivalry among CompetitionHigh: When it comes to the market pie, every one wants the larger share; so there is pretty fierce competition among the established companies.Threat of New EntrantsMedium to High: When one is talking about the aspect of market of PC, a new tech is a threat to the industry. It is important to note that the tech should be cost effective. That being said, there are certain concerns for a new business in the form of companies who are already in the market and the initiation. This is further complied by the presence of a precedent standard as well.Bargaining Power of BuyersLow Customers have a plenty of options to buy in less price taq and the best in quality as in the market there are numbers of major players.Threat of Substitute ProductsHigh: Another aspect that is going to affect the growth of PC companies is the presence of newer and popular gadgets like HDTV and screen phones.Bargaining Power of SuppliersHigh: A key element in the business of companies, particularly like Apple is the presence of the Supplier. The supplier has the capacity to increase the price tag of the components at will. This puts Apple in a tight corner, since its suppliers are limited. Hence, the risk rate in this case is higher.

SWOT ANALYSIS

Strengths: The worlds most successful and most recognizable brand. The worlds 2nd the most highly valued company $6b in profits by the end 2010 Over 30 year existence Brought a lot of changes in the computer industry 58% of the flash player market, Apple held 90% of the hard-disk player market share in the U.S. 9.7% personal computer market in the U.S. Successful online store A competitive advantage with respect to retail because of how the company handled its people. Weaknesses: Top management style drew significant criticism Poor sales support on corporate accounts Industry analysts were skeptical of Apples foray into retailing Apple is concentrating better on its company-operated stores rather than its reseller.

Opportunities: iTunes grew substantially and as new editions will be created, its capabilities will be increased Rapidly increasing Apple stock price Up -gradation of Apples all products and brands Apple is pairing high definition TV with Apple software as an alternative TV set-top box Mapping of product plan including three new promised (yet to reveal) products in 2012. Threats:

Steve Jobs health Increased competition most notably Dell, Hewlett-Packard (HP), Microsoft, Nokia and Sony Resellers are not happy because of Apple retail policy and spending lavishly on its store as consumers pull strategy.

MARKETING OBJECTIVES

iPrint

iPrint Brief Description The Apple iPrint is all-in-one printer, which offers the full scale of handy features for home and office to enjoy. Have you been taking some great photos using your iPhone but haven't bothered to print them out because of the hassle of connecting your phone to the printer? This all-in-one printer solves that problem with ease. The Apple iPrint now provides the facility to print photos wirelessly from any electronic Wi-Fi device. It is the best printer for the professional or amateur creative or for the businessman who needs to print some print or photos from his or her iPad to complete that big presentation.

Worry no more if you want quality of your print task. iPrint offers individual ink wells for high-quality printing. This technology offers a laser-like print quality. This high quality features allows to print high-quality pictures all while saving that ink for regular black and white text files. This feature also lower ink cost, just have to replace the ink that is running low rather than the entire set. This technology also generates less waste in our landfills, which, coupled with the Energy Star badge that this all-in-one printer is toting, makes this printer a great choice for those who are concerned about being "green."

iPrint SMART objectives

Objectives for Profitability To attain a 23% return on capital employed by May 2013. Objectives for Market Share To acquire 5 - 9% of the market for all-in-one printer by December 2013 Objectives for Promotional To amplify trail of iPrint 30% of the target group by January 2014. Objectives for Survival To endure the current economy recession till January 2015. Objectives for Growth To enlarge global availability of iPrint with operational cost from $200,000 in 2012 to $400,000 in 2014. Objectives for Branding To build iPrint brand the ideal brand of home and office executives in North America and Europe, Japan by March 2014.

MARKETING PLAN

Segmentation of the market iPrint market segmentation should be the method of separating the entire market into several smaller, internally homogeneous groups to reap the following benefits of market segmentation. iPrint can compete more effectively by allocating resources efficiently to specifically defined and selected markets. iPrint can grow rapidly by developing strong positions in specialised market segments. iPrint can reach fragmented markets that splintered from once homogeneous mass markets. The process of market segmentation for iPrint can help: Explore the existing want for the current and potential market Explore differentiate among the segments for characteristics Explore the latent of the segments and how fine they are at present being happy. Characteristics of useful segments can also help iPrint to: Be measurable. Be accessible Be a large enough to be profitable. iPrint Ultimate consumers and business users - the first cut. Ultimate Consumersthey buy iPrint for their own personal use Business Usersthey buy iPrint to use in their businessesThese two iPrint markets have distinctively different needs, wants, and buying patterns.iPrint Segmentation BasesSegmentation BasisPossible Market Segmentation

GEOGRAPHIC Region

City or metro area Size

Urban-rural

Climate

United States, Europe, Japan

Population under 25,000; 25,001 100,000; 100,000 500,000;500,001 1,000,000; etc

Urban, suburban, rural

Diverse

DEMOGRAPHIC Income

Age

Gender

Family life cycle

Social class

Education

Occupation

Ethnic background

$25,001 - $50,000

Under 25 50 and over

Male, Female

Young, single, young-married

Upper-middle, upper-lower

College graduate

Business professional, artists, designers, illustrators working in art industry Diverse

PSYCHOGRAPHIC Personality

Lifestyle

Values

Ambitious, self confident, extroverted

Activities (travel, sports); interests ( modern art, reading, documentary, photography, film); opinions ( capitalism)

Self-respect, excitement, fun and enjoyment in life, self-fulfillment, sense of accomplishment, being well-respected.

BEHAVIORAL Benefit desired

Buying situation

Quality prints, impressive reports, inspiring presentationSemi-heavy user, heavy userNew buy, Modified re-buy, Straight re-buy

TARGET MARKET

iPrint recommended target market strategy should be Aggregation strategywhich is also known as mass market strategy, undifferentiated strategy; because iPrint of Apple likes to treat its total market as a single segment and develops a single marketing mix to reach as many of those customers as possible. The total market is the iPrint target as it is for the rest of Apple brands. Therefore, iPrint will develop a single market mix and reach most of the customers in the entire market. Apple is offering a single printer for the target audience it will design one pricing structure and one distribution structure system for iPrint; and it will use single promotional programme aimed at the entire market, which is also known as shotgun approach (one programme to reach a broad target).

An Aggregation strategy has been offered to Apples iPrint because it is evaluated that regardless of differences, the majority of iPrint customers in the total market is expected to respond in very similar fashion to one marketing mix as in case of iTune, iPod, iPhone and iPad.

The strength of a market aggregation strategy for iPrint brand is cost minimization. It enables Apple to produce, distribute, and promote iPrint very efficiently. Producing and marketing iPrint for the entire market means longer production runs at lower unit costs, Inventory cost for iPrint will be minimized because iPrint will be offered in two colours (black and white). Promotion costs will be also minimized because the same message will be transmitted to all customers.

Like always the strategy of market aggregation typically is accompanied by thestrategy of product differentiation in an Apples marketing programme. iPrints product differentiation will be noticed by the customers because it will distinguish iPrint from competition, who are offering their brands to the same aggregate market. Through differentiation Apple will create the perception that iPrint is better than the competitors brands and to create a preference among customers, will help to success to reduce price competition.

Education 20%Creative 45%

Business 25%

Consumer 10%

POSITIONING AND DIFFERENTIATION

Total solutionsOriginality InnovativeStylishQuality

Positioning If one were to explain brands, one could say that the have personalities to them. You can associate adjectives of human personality like trustworthy, exuberant, cognitive, etc to them as well. This very idea of personality is shared between the consumer and the product. You can use this concept of personality to accent the features of your product. One can note that the customer deflection rate in Apple is quite low, and this is owing to the reinforcement charm that they are able to create through the personality of their products. This model results in the lowering of the experience, which leads to higher value. With low cost and high value, the company is able to churn out more profit and be efficient as well.

iPrint positioning is set to be the act of crafting the Apples offering and image to occupy a distinctive place and choice in the mind of the target market. Value Proposition iPrint, Apple An innovative printer that provides the quality and extravagance printing solutions with a joy of originality.

Differentiation Differentiation strategy is always the main focus to Apple in all of its SBUs. The main theme of this strategy to the Apple is to compete in several niche markets by offering diverse but unique products. Apples iPrint will do the same keeping in mind superior quality and innovation, the hallmark of the company.

Apples iPrint like rest of the companys SBUs will be the most beautiful printing machine, which will also get rid of the concept of being only a commodity type product. The iPrint will defiantly to attract Apple Computers biggest segment world-over, creative people working in advertising and media world to create out-of-box big ideas.

iPrint will also attract another Apples segment in the education sector. Apple computers have been classified in the sector as teaching and learning friendly computers because of ease and diversity they provide. Differentiation of iPrint will be based on the same theory to provide ease of operation.

In the consumer market and business sectors Apples iPrint will the protg of Apple computer with tag of innovation with state-of-the-art printing facilities.

Apples iPrint using such strategy will carry greater appeal to consumers psychological desires so the potential customers will feel no hesitation to pay extra for the printer.

Perceptual Map

QualityFunctionalTraditionaliPrint

Innovative

Marketing Mix ProductAn innovative printer that provides the quality and extravagance printing solutions with a joy of originality PriceIt is easy enough to determine the high quality product and its high price nature. This high price nature might be deemed as a barrier to the general population, yet Apples iPrint is able to achieve its target. The reason is the targeted approach towards the education and graphic professional community.

PromotioniPrint like any other Apple SBUs has relied on TV for its primary mode of advertisement. It has planned collaborated with other multi-national global brands to come forward with commercials. The ads with other global brands similarly like Pepsi are for the promotion of its iTunes store and can be seen on the homepage of the Apple website as well. Another approach one can work on is the switch approach, in which the user is encouraged to transfer from one popular printer brand to Apples iPrint. Comparative analysis to be explored to influenced to move to iPrint owing to its user friendly approach.

PlacementiPrint can utilize Apples retail strategy. The retail store step was taken in 2001, and now there are 280 retails stores in 10 countries, with 16 percent total revenue of Apple. An international store was launched in Tokyo, Japan. The idea behind the retail store is to increase the consumer base. The targeted consumer would be people who are using printers for the first time, or those who are switching. Since they own the stores, they regulate it well enough. The lay out of the stores is such to project decent presentation of the product and market it as well. The lay out of the stores are as per the demand of the area they are in. This is a tactic employed to keep the demand in check. The staff on the retail stores is experienced to provide good customer support and feedback as well. The store provides advice/support to customers as well. In order to support their own products, third party products are kept as well.

One can deem these retail stores of Apple as a vehicle for iPrint marketing. The not only have made a niche for themselves in high profile areas, but also developed great corporate marketing and brand awareness as well. The marketing is not shallow, and shows that Apple has more to offer than these tech gizmos and catch adverts. In order to give a material value, one can compare Apple with Gateway, who has similar retail stores. Another faction of marketing targets the experience of improving customer buying at electronic stores. The consumers are given the feeling that this would be a great venture for them. The other feature is that of Direct Selling, which leads to better projection of products at retail stores, and quick customer handling as well. E-BusinessThere is a sense of equality when it comes to the online and offline operations of Apple as a global brand. The website is also very catchy with vibrant colors and user friendly options. Ample emphasis is shown on multimedia with the promotion of movies, new media and QuickTime TV. There is a sense of coherence in the website and the brands as well. So, at the end of the day what you witness is the reinforcement of brand identity and its positioning as well. There is also a sense of congruency in the promotion of products as well. iPrint will very well fit into the iconic SBUs like iPad, iPod, iPhone, and iTune on the Apple official website: www.apple.com. e-Business marketing strategy for iPrint.Market research.1.Visitor trackingiPrint site can gather data about website visits and visitors and relating that data to other information about visitors such as demographics, psychographics, preferences, and consumption data provided by the respondents.2.iPrint can gain the biggest advantage of conducting research on the Internet is the speed with which it can be completed, the comparatively low cost, and the geographic reach.3.ClusteringiPrint site can track the pages visited, amount of time at a page, and items purchased by individuals when they navigate a site, then creates clusters of visitors with similar patterns and characteristics.4.Collaborative filteringiPrint site can allow a site to make recommendations regarding product offerings based on comparisons of visitor selections and the selections of previous visitors. Manufacturer approaches to avoiding internet-related conflict.Use the Web as a lead generator only.Offer different products online.Sell online at retail list price.Involve middlemen in online sales.Target different market segments. Middlemen strategies to address Internet threats.Channel assemblyallows products to be shipped to distributors in semi-assembled form for the intermediary to complete assembly; allows for greater customization and shortened delivery times.Co-locationemployees of distributors are stationed at the manufacturers location to arrange final shipment to customers; product is handled fewer times and delivery times are shortened.Electronic middlemenfirms which make or facilitate transactions through the Internet, but their only investment is a website (i.e., B2B reverse-auction sites).Promotion.Site visits are initiated by visitors and exposure is not incidental or passive.Means of attracting audiences to iPrint websites:Banner ads on other iPrint websitesPortal arrangementsfee-based arrangements for sites to receive prominent positions on search engines.Sponsorshipsfor a sponsorship fee, an advertiser is given a permanent place on a hosts site.Targeted e-maila firm directs e-mail to current or potential customers, inviting them to visit a site; sometimes referred to as electronic junk mail.

MARKETING BUDGET(APRIL - DECEMBER 2011)

Break Up

HEADS Total

TV 22.5

Print 13.1

Magazine 3.1

Internet 3.9

Cable 1.3

Events Sponsorship 1.4

Activation 3.7

POS Material 3

OOH & Skin Printing 4.2

Production 3.8

Grand Total (Figures in PKR Million)60

Monthly/ Quarterly Breakup

Heads Apr May Jun Qtr-1 Jul Aug Sep Qtr-2 Oct Nov Dec Qtr-3 Total

1st Quarter 2nd Quarter 3rd Quarter

TV 5.0 1.5 4.0 10.5 - 8.5 - 8.5 1.5 2.0 - 3.5 22.5

Print - - - - - - 0.3 0.3 - 1.0 - 1.0 1.3

Magazine 0.5 0.2 1.0 1.7 - 1.2 - 1.2 0.2 - - 0.2 3.1

Radio 0.5 - 1.0 1.5 - 1.0 0.4 1.4 - 1.0 - 1.0 3.9

Internet - - - - - - - - - - - - -

Cable 1.0 2.0 1.5 4.5 - 4.0 0.6 4.6 2.0 2.0 - 4.0 13.1

Events Sponsorship - 0.7 - 0.7 - - - - 0.7 - - 0.7 1.4

Activation - - 1.5 1.5 - 0.7 0.5 1.2 - 1.0 - 1.0 3.7

POS Material - 0.3 1.2 1.5 - 0.3 0.3 0.6 0.3 0.6 - 0.9 3.0

OOH & Skin Printing - 0.5 1.2 1.7 - 0.5 0.5 1.0 0.5 1.0 - 1.5 4.2

Production - 1.5 1.0 2.5 0.3 - - 0.3 - 1.0 - 1.0 3.8

Grand Total (Top to Bottom) 7.0 6.7 12.4 26.1 0.3 16.2 2.6 19.1 5.2 9.6 - 14.8 60.0

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INTERNET SOURCES http://www 1.ibm.com/ibm/history/history/decade_1880.html http://www.apple.com http://www.apple.com/about/environment/corporate/corp_ehs_programs/index. http://www.apple.com/about/environment/ http://www.kpmg.com/about/ http://www.macminute.com/2003/08/05/appleshift http://www.macnn.com/news/21787 WSJ http://www.macnn.com/news/23407 NYT http://www.macobserver.com/article/2003/12/30.1.shtml http://www.macworld.co.uk/news/main_news.cfm?NewsID=6342