Final Marketing Plan and Presentation

Product, Pricing, and Channels

Strategy and Positioning

Overview

Apple Inc. incorporated in 1977. Their business model has been design, production and promotion of personal computers, messaging and communication devices, mobile media, laptops and other portable digital equipment. The company also produces a wide range of associated software applications, secondary merchandise and services; the most well known among these: iPhone, IPod, iPad, Mac Book, IOS and OSX systems. Apple recently purchased a seed company from Silicon Valley that focuses on smartphone applications and sells products and software to government buyers (Reuters, 2014).

Computers have existed for several decades. Essentially, the computer, as we know it, is a very crude substitute for an external brain. No computer on Earth has ever been able to approach the complexity and capacity of the human mind. Technology’s attempts to simulate the complexity of even a small segment of the brain still seem overwhelmingly futile. In light of these limits, one logical solution is to develop a device that will join forces with a user’s mind rather than competing with it. One might assume that the characteristics of such a device would be present too much complexity; however, it may be very simple. Much like a computer or smartphone, the brain runs on electricity.

The chemical reactions that occur when we produce a thought create a reaction within our brain cells (or neurons). This electrical impulse releases chemicals (neurotransmitters) which in turn control the degree of energy of other electrical impulses. It is this impulse which controls the level of release (and type of) neurotransmitter that will influence the next electrical impulse. The psychiatric world commonly refers to this process as neural “firing.” It is common knowledge that these electrical impulses can travel to a set of electrodes when attached to the scalp of a subject. The key to harnessing and controlling how a thought is captured and translated lies within this practice. If a smart phone is able to translate refractory periods, it may be able to decipher thought through an interface.

Controlling machinery with thought involves capturing the thought impulse. Each impulse would travel to a receptor center which developers would model after a neural receptor cell. The idea of communication is to transfer thought to another person. The interface that can send a message directly to another person’s brain might, at some point, circumvent the need for a device (Oxbridge Biotech Roundtable, 2014).

SWOT Analysis

Strengths

Strengths of the Offering.

The biomedical engineering aspect of a prospective device is fairly straightforward. The developer could model the non-invasive device link to the brain after the EEG and neuro-prosthesis mechanisms. The primary goal is to eliminate typing and speech through the smart-phone and either accepting or rejecting the reproduction of the thought, prior to transmitting the message to the recipient. This will enable the user to avoid miscommunication or unintended words or messages. To accomplish this, the built-in receptor would also function as a filter or thought sifter. If this device is intuitive, it may, at some point, develop the capability to “auto-sift” as the program learns what thoughts the user tends to transmit accidentally and what messages he or she wishes to convey in a given circumstance or to a certain contact (Oxbridge Biotech Roundtable, 2014).

Strengths of the Company.

Apple’s strengths lie in its reputation. The company’s marketing and advertizing capabilities are strong, and its production, manufacturing and distribution is available through numerous channels in the United States.

Weaknesses

Weaknesses of the Offering.

The capability and knowledge available in the area of neuro-prosthetics as it relates to electronic based non- invasive technology is not as abundant on the biomedical engineering side. Understandably, devices that are exclusively for medical purposes hold a position of priority in this field of research. The efforts to establish adequate manufacturing and testing might be a challenge (Michigan News University of Michigan, 2014).

Weaknesses of the Company.

The weaknesses of Apple are in their product span, pricing levels and in their delivery conduits in Asia and India. The company also demonstrates limitations in area of product innovation, which this offering might help to remedy. Another of Apple’s major weakness is in system compatibility. Compatibility with software and hardware systems is a major challenge, as is the overall integrative functionality with other operating systems. This weakness may shed light on the company’s heavy dependence on iPhone, iPad and Mac Book sales (Reuters, 2014).

Opportunities

Opportunities of the Offering.

The offering would address the challenge the company has been enduring with regards to innovation and advancement. It would also possibly be a viable alternative to the iPhone and iPad and would offer the market an alternative to these products; thereby diminishing the dependence that the company has on iPad and iPhone demand. The product would be a huge advancement in technology and, if developed well, may eliminate and preclude competition for an indefinite period of time; which would boost profitability and share prices tremendously.

Opportunities of the Company.

Opportunities for Apple are mainly in the areas of acquisition of other similar companies in the market space, mobile payment capability, and clip-on gear. The biggest opportunity for Apple (or any company in its sector) is the discovery and development of a product that, like the iPhone, becomes a product that consumers covet more than any other device. That has always been the ultimate opportunity in this market space.

Threats

Threats to the Offering.

The threats exist mainly in patent claims and resulting lawsuits. There are other companies and research groups who are working on similar technology. Competition threats exist with these same groups. Other companies or developers may seek patents or have already received pending patents on similar technology (Reuters, 2014).

Threats to the Company.

The company is currently “king of the mountain.” Apple has a strong market share and industry position at the top; other companies want to push it down and take its place. The company is perpetually attempting to innovate with the same products. The competition is the biggest threat at the present time. The companies that pose immediate threats are Microsoft, Android, Nokia and Samsung (Reuters, 2014).

Competitive analysis of the organization

It is important for any organization to thrive and succeed in their business markets. It is also vital for these particular firms to develop the need to analyze their competitor’s needs and strategies. Understanding competitor analysis however is important in ascertaining marketing planning strategies and processes. Strong competitors perhaps can hinder best performances of the firm and its general success, and at an advanced stages, it can lead to total failures. Competitive analysis however enables firms to anticipate their close competitor’s actions and that can enable the organization to exploit competitor’s weaknesses. The strategy also enables firms to identify their most unique selling points. The identification of the selling points however can be strengthened trough marketing campaigns. Competitive analysis however enables and aids successful competitors to continuously develop their best marketing strategies in acute response to the changes in the market place.

Based on porter’s five competitive forces, these strategies were developed basically as a framework for assessing and evaluating the business competitive strength and the firm’s business position. This strategy believes in the notion that five forces exist that determines the competitiveness and attractiveness of the market. It also identifies greatly where power lies in a business situation. Porter’s specifications are therefore important in realizing the strengths of the organization current competitive position, and it also predicts the organizational strength in the future. The forces however can be used by strategic analysts at advanced stages to realize if new products or services that prevail in the business environment are potentially profitable.

They can also use it to ascertain the areas that posses more strength, this will help in improving weaknesses and helps to avoid mistakes.

Porters five forces of competitive positions

Supplier power

is the certainty of how suppliers make it easy to drive and raise prices. Normally, supplier power is driven by the number of suppliers for each particular input, the available of their products and services, the strengths supplier posses and the relative cost of switching from one particular supplier to the other. Suppliers posses power when: there are very few suppliers of a particular product, when substitute don’t exist, when the product is extremely important to the potential buyer who cannot do without it and also the degree of differentiation of inputs

Buyer power

Buyer’s posses the potential of lowering prices. This is normally ascertained by the number of buyers existing in the market. It is also related to the individual buyer to the organization. Cost of the buyer that determines the switching from one supplier to the other is also determining factor. Business with few buyers is not productive simply because they often dictate business terms to potential buyers.

Competitive rivalry. For a business to prosper in any given modern society there should be a number and capable competitors in the market. Many competitors however who offer undifferentiated products and services will definitely tend to reduce market attractiveness.

Treat of substitution. Existence of substitute goods and services in the market place may make buyers to develop the mind of switching to alternative responses due to price increases. Buyers at this particular point may prefer lower prices to the higher one. This strategy reduces the supplier power and also market attractiveness will be lower

Treat of new entry

Existence of profitable markets entices and attracts new suppliers. Due to the existence of strong business ethics that governs this site, such as strong and durable barriers to entry, e.g. economies of scale government policies and the capital requirement, could perhaps decline profitability to a competitive rate. There are factors that limit the treat of new entrants also known as barriers to entry. These are high fixed costs, top government restrictions, scarcity of resources, brand equity, capital requirements and also economies of product differences.

Target Market

Releasing new products is uncommon for the Apple organization. Consumers know Apple for its production of computers in the early 2000’s. However, in October of 2001 Apple released the iPod which was their first non-computer product. The iPod was a great idea that took the place of the compact disc player by introducing hard-drive based digital music player. Although this new product was guaranteed to be a great selling product and consumers found the iPod to be amazing, the sales for the IPod were not high. The reason for the low sales of the iPod was because of the pricing. The iPod’s pricing began at 399.00 dollars when it first came out; therefore the target market for the IPod was primarily wealthy consumers. The iPod did make a turnaround in late 2003, because apple made it available for windows computers to download ITunes. ITunes allows consumers to bypass compact disc altogether. Consumers were able to download music from ITunes on to their IPod which made the Apple company over 70 million dollars. With the company making so much money from the transformation, the prices for IPods began to fall. To this day this product has changed the way that the world listens to music through one of Apples product.

Apple understands that there are many trials and errors that come from marketing a new product. This is why coming up with a product that interacts with peoples brains will take time to market but will be a big success (Sanford, 2014).

A product is currently in development that interacts with the human brain. The company can target this product to many types of consumers because of the technology intrigue. However, when this product becomes public, the company would do well to attract the interest of the loyal Apple customers first. The design of the product must be a representation of Apple Inc. The second most important focus of the target market is consumers between the age of 18- 34. People in this age bracket are more likely to buy new technology. The product should not be so expensive that Apple loses some of its target market. It is very important that the target market can afford this product, so there is not a situation similar to 2001 with the introduction of the iPod.

The Needs that Drive Purchase

The Need for the target market to buy this product is apparent because of how much easier life can be for the product’s consumers. Logically, a consumer would want to use this product because it takes hands free to another level. To imagine a product that interacts with one’s mind to accomplish daily tasks (answering emails inconspicuously in the middle of meetings, accessing information without speaking or touching, use while driving a vehicle) it would be very convenient for a consumer to answer phone calls or play music just by thinking of whatever they want. The product would allow consumers to multitask in many different areas whether it be home, business, or leisure.

Industry Category

Apple Inc. is in the technology sector. This product would specifically fall within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sub-sector (Investorguide, 2014).

Solves the Target's Needs

This product will meet specific needs of the typical individual that this industry and market sector targets. It will do so with a massive increase in the speed and effectiveness of communication, multi-tasking, research and access to information. This is just the beginning: the public market will perceive this device as limitless with regards to what it can do and how closely it can assimilate with (and familiarize itself with) the individual user.

Organizations Competition

Samsung is Apple’s primary competitor because of their smart-phone sales. Samsung does not surpass Apple, but a lot of different consumers use their products. Actually, all of the Android smart-phones are competitors to Apple because Apple only sells the iPhone. With Samsung, Windows, LTC, and many other smart-phone companies competing to make the most sales, Apple is forced to come up with new ideas to keep their phone sales high. The Mac-Book is a computer made by Apple the Mac-Book’s competition is the windows computer. When considering overall sales, Windows has sold more computers then Apple.

The last piece of major technology for Apple is the iPad. Although the iPad started the beginning of the android tablets, the tablets are still major competition to the iPad. When Apple releases this new technology, it will not be long before Androids begin making the same product.

What makes the organization different from competitors?

Apple is different from its competition in that Apple is its own brand. For example, one could say that Dell competes with the Mac-Book made by Apple. The Dell computer is made by Dell, but uses windows operating system. Unlike Dell Apple uses its own operating system therefore makes it a unique brand. Apple also ensures that it is close to impossible for their products to catch viruses. The Apple brand also stands apart from it competition because of its individuality consumer get from their products and like most luxury brand names Apple stands apart from the rest. Apple stands apart because other companies really don’t have their own design team and find themselves following behind Apples lead. It is difficult for Apples competition to sale more than apple when the competition is usually copying ideas from Apple (Barjarin, 2014).

Needs Leading to Consumer to Purchase

Logical Needs

Consumers buy smart-phones for convenience and communication freedom. If a business person is on the road frequently, he or she will have access to information and can respond in a timely way. This device will expedite communication well beyond any prior capabilities. Surely this is an evolutionary product. It will become more and more streamlined as it evolves. The limited knowledge that we have and are working with must be used to streamline use and eliminate any glitches, so that the end result is customer satisfaction. The purely logical use for this product is to bridge gaps in communication, time and space while avoiding any overly invasive aspects (Oxbridge Biotech Roundtable, 2014).

Emotional Needs

The human desire for the latest gadget is the primary reason for the massive market share that the cell-smart-phone industry enjoys. Since its introduction to the market, the cell phone has been an increasingly sought after item. It was not as common when it first broke into the market. This may be the reason that people began to covet the latest cell phone or smart phone, as they began to become more available; because at one time, it was an item for which only some people had a use. People generally want what they can’t have, and if the latest device is updated to remain perpetually out of reach, it will keep people reaching.

Product, Pricing, and Channels

The Apple I device integrates and incorporates with the user on a level that no other product has achieved. It is a new product in every way and will eventually take the place of the smart-phone, as the number of users increase. It will effectually phase out the iPhone and iPad, as well all other types of smart-phones.

Product Description and Target

The headset will have electrodes discreetly built into it. The electrodes will detect, transmit and measure the neural activity in the posterior area of the superior temporal gyrus of the dominant hemisphere: specifically, activity that controls the following features: speech, writing, communication, visual and auditory perception. The device simply controls and directs signals traveling from this area to the proper receptors to enable the appropriate functions. So, instead of pressing a button or clicking a mouse, the device harnesses the actual electronic signal which then causes the appropriate response within the device. This device then sends a signal through a wireless network as a smart-phone would do (Vendavo, 2014).

The device will have a “thought filter” function to inhibit any erroneous or otherwise undesirable information from transmitting. The filter will have an intuitive gauge on it, which “learns” the individual user’s typical pathways of transmission to seek out the appropriate preclusion in each message or command. The appropriate target market is the business market that requires communication and eventually, everyone that uses a cell or smart-phone. The “Apple I” will meet the needs of its target market by saving time and, therefore, money. Everything will happen faster. Ideally, business will transact more quickly and efficiently. Communication will become less cumbersome more streamlined and effective (Oxbridge Biotech Roundtable, 2014).

Marketing and the Product Lifecycle

Throughout each phase of the product lifecycle, the marketing approach will adjust to reach the proper number of individuals and companies within its scope of pursuit. The Apple I will phase into the market so the marketing strategies must match the phases appropriately

Introduction Phase

The success of the initial skim pricing strategy will determine the speed at which a competing product evolves into a viable competitor. The distribution will start selectively and will grow with increasing demand levels. The introductory target will be innovative, pioneering technology oriented buyers (Value Management Advisors, 2012).

Growth Phase

The product will maintain its quality with some slight pricing adjustments. Price strategy will adjust to penetrate the market if competition surfaces. Distribution channels will become broader, and the target will become more inclusive (Value Management Advisors, 2012).

Maturity Phase

The company will begin to enhance the product’s features and insight. As the technology develops, the user integration will become more and more effective and specialized. The aptitude of the operating system will continually evolve in its ability to assimilate to the individual user. The distribution channels will be vast, and the pricing strategy will adjust more toward economy pricing levels according to the level of competition at this stage (Value Management Advisors, 2012).

Decline Stage

The Apple I will continue and Apple will add additional features to adapt as the technology becomes more intuitive and intelligent. Unlike the iPhone, this product is not as susceptible to banality. The possibilities for additions and features are endless. The distribution channels can decline slightly, and the target can stay the same (Vendavo, 2014).

Value through Packaging

Apple’s packaging is unique to its own brand. In buying Apple products, a consumer gets a detailed, durable, and unique box that has a picture and a brief description of the product. The iPhone and the iPod are example of how Apple adds value to their packaging. Most MP3 players come in plastic and have the name written between the plastic with paper. Though such packaging doesn’t make the product look cheap, it does make the product seem as if it is generic and anybody could afford it. The iPod packaging however comes in a box that has a sliding top; this makes the product appear to be special, and one could say the product almost seems as if it were gift wrapped by Apple. The IPhone is packaged the exact same way to ensure that consumers immediately recognize the packaging as an Apple product. Apple has set the standard high for its IPhone and iPod product line packaging, and it is imperative that the next product aligns with this packaging standard.

The “Apple I” is the name the company will propose for the product upon distribution. It will have to keep the same classic Apple look, so it does not detract from the Apple brand. However, there must be some changes in order to incorporate this new product. The biggest change proposal is in the altering of the shape of the packaging. The manufacturing team will use circular packaging to give the effect that the product is meant to go on top of the head of the user. The packaging will also have the name and a brief description on the outside of the packaging to ensure consumers begin to know the product, itself, as a brand. The product will come in many different colors so all of the packaging will match the product color. On the inside, the product will be cradled by soft packaging (similar to that of jewelry) to ensure that the product is not harmed, but most importantly, to give the illusion that the product is priceless; like the thoughts and the mind of each individual user. This product needs to keep the essence of Apple’s signature name and brand but must incorporate the new technology in the packaging. The goal is to have consumers look at the product’s packaging and know instantly, that it is an Apple product (Vendavo, 2014).

Pricing Strategy

The skimming strategy for this product is appropriate at launch because the buyers will be those who will be willing to take some risks themselves. The product is not going to need to penetrate the markets initially. Initially, there will be scattered distribution with skim pricing because it is a big jump from the smart-phone to a device that communicates activity from the user’s frontal lobe. There will be a period of adjustment in terms of pricing levels and user compatibility. The product will have to price according to these distribution phases (Value Management Advisors, 2012).

Product Launch

The initial price of $650.00 for the device should be proposed to distribution channels. This price will include all necessary gear. Some users may perceive this price as unaffordable, but the capacity of the product will encompass and, possibly eliminate the need for the Mac and the iPhone.

Understandably, there will be some trepidation and even more curiosity with regards to a product that can essentially read thoughts. It is this fear and curiosity that will be useful for the sale of the product. The product’s functions are the main draw once the buyer overcomes his or her initial curiosity and fear.

Distribution

Online distribution channels will not allow the proper promotion process of initiation with a product like this. The company will need intermediaries to assist with product introduction (Value Management Advisors, 2012).

Channeling Value

A mix of direct and indirect distribution channels would be most effective at launch. This product should be available online directly from Apple, but should also be available through intermediaries such as Radio Shack, Verizon, AT&T, Best Buy, CNet and other online retailers. The product should be made available in retail stores as advertising starts to invoke curiosity (advertising should be aimed directly at buyer curiosity). The majority of the distribution channels should be through retailers that conduct in store “test drives” of the product. The “test drive” will add value in that it will cater to each individual user, immediately. The user will see, firsthand, how the product immediately begins to “understand” him or her and integrate with immediate functional (frontal lobe) activities. Users are going to want to see an immediate unique integration with no invasive characteristics. Once the Apple I achieves this user/device trust level, the functionality can be a multi-level exploration into a world that no one has ever known. A “test drive” should give the user the experience of immediate, “thought to function” transfer and demonstrate a high speed grandiose capability of thought to action processing (Value Management Advisors, 2012).

Conclusion

The Apple I has the potential to change the mobile device market. The method of presentation is going to determine how quickly this will happen. The competition will follow the product through its distribution channels, but this product will lead the market exclusively for a significant period of time. It is during this time period that Apple will focus most on developing and perfect the unique functions of the product. The pricing strategy and distribution phases will extract maximum profitability.

Despite the competition in the global market and new products release, Apple Inc remains to be active. Today, the use of phones is one of the recent technologies that have improved the entire world. Communication and other needs have been simplified by the new communication devices. However, in spite of the numerous products that the Apple Inc. releases into the market, the use of iPhone has been outstanding. The product has more than a few features that much the current generation. Statistics have reviewed the 60% of the world’s population admire the new design of iPhone because it has substantial features. iPhone has incredible features that much most computers. This electronic device can be used as a laptop because it has similar and even enhanced features. The target market of this device was mainly for the new generation. This paper will describe the efficiency of iPhone phone and its impact to the current generation.

In the current world, everything has turned digital. Today, the use of Smartphone has influenced considerable factors that have effectively enhanced communications and other factors. This has influenced a great challenge to the upcoming generation because of the new devices and the course outline they cover in their institutions. However, Apple Inc. created a suitable device that can meet all the need of the current generation. In general, the target market of the iPhone phone is the current and the upcoming generation. Research shows that most youths are attracted to iPhones because their brains are intelligent, and they believe that this is the right device. The device can link several websites and carry out complex problems that the current youths face. Also, the Smartphone has suitable features compared to other phones. This phone is widely used because of its speed and efficiency compared to other handsets (Kourdi, 2009).

All iPhone phones are lightweight weighing approximately 112grams. For instance, the weight of iPhone 5 is based on its thinness unlike the weight of Samsung Galaxy S3. Apple organization executives argues that the handset has many features that make the Smartphone outstanding than most computer systems. Most people claim that when it comes to comfort, they prefer iPhone phones. The phone has a wider screen which has simple settings for operation. The phone offers suitable and quality pictures since the introduction of the high technology by Apple organization. Despite the incredible features of the phone, it is clear that new phases in the current generation continue to improve the effectiveness of the product (Kourdi, 2009).

The marketing efforts of the company have influenced more than a few changes. Some of these changes have increased revenues of the organization. Apple Company has manufactured different types of iPhone phones in order to meet the needs of their target market. This has enabled most youths to afford the phones and use them to solve most of their puzzles. Statistics show that the speed of the phone has assisted many students in collages to have positive attitude in their education. This is a clear indication that the phone is contributing much to what is studied in collages. The company can increase its marketing efforts through advertisement and manufacturing of more iPhones. This will attract different races globally. In general, iPhones are incredible devices that meet the needs of the current generation (Kourdi, 2009).

References

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Michigan News University of Michigan. (2014). New cochlear implant could improve hearing. Retrieved from http://ns.umich.edu/new/releases/101

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