Marketing Plan Apple Incorporated in United Kingdom Market - Essay Example

?Running Head: Marketing Plan Marketing Plan Inserts His/her Introduction Apple launched its I Phone in 2008 and since then the cell phone has become famous all over the world. Unique design and features that I Phone offers is the main reason why the cell phone is extremely famous globally. In this report we will present a comprehensive marketing plan for Apple I Phone 4 in United Kingdom. The marketing plan will include pricing, promotion, and distribution strategy. The plan will also talk about product strategy, target market and differentiation and positing strategy. The plan will also accompany environmental analysis, customer and competitor analysis along side with opportunities and threats. Company and Product Review Apple is a well known company all over the world and it’s famous for its cells phones, laptops, desktop computers and innovative technology gadgets. The company sells its products all over the world. Its cell phone series known as the I Phone has become extremely famous. I Phone became famous among teenagers and business people because of the services it offered. The touch screen feature of I Phone was something that attracted people towards Apple’s I Phone. The latest version of I Phone is known as I Phone 4 and was launched in 2010. I Phone 4 is considered as the smartest cell phone available in the market (Morris, C. 2010). There are some amazing features in the cell phone and it is already a hit. I Phone 4 design is also different from other cell phones in the market so this also is a reason for its huge success. Overall the I Phone 4 can be considered as a greatest cell phone made by Apple and no competitor is even near Apple in the cell phone industry. Environmental Trend Analysis United Kingdom market is a sophisticated market where buyers are well aware of the gadgets that come out in the market. Apple is a big name in United Kingdom too so people are well aware of it. Because of the sophisticated market users also judge cell phones on quality rather than on price. They are willing to pay more for quality products so pricing is not important for them. The trend is also towards cell phones that offer innovative features. The market of United Kingdom is huge because almost every adult use cell phones to communicate. The users are also technology friendly and aware. The environmental of the country is also secure in terms of politics. There is no chance of any major political shift in the country. Politically stable country is vital for any business and sales of I Phone 4 are in no danger. Economically United Kingdom is not an ideal market because they have not recovered well after the financial crisis of 2008. Government is increasing taxes on people and they are not happy about it. People are also economically weak which means that sales can get affected because of this. Protests are now often on the streets of United Kingdom (BBC, 2010) and this is a very important aspect of the environment for the sales of I Phone 4. Customer Analysis The customer of I Phone models are very loyal (Golvin, C. 2010).The main clientele of I Phone 4 is the young generation who are tech savvy. People within the age bracket of 14 to 26 are the main customers of I Phone 4. These are the customers who wait for the launch of the cell phone anxiously. Apple makes major junk of its sales to young people therefore marketing should also be focused on this target market. Alongside with younger generation corporate customers are also buyers of I Phone 4. The cell phone offers amazing features and with its sleek design satisfies the business class needs. This is the second most important target market of Apple. Corporate customer will also buy I Phone 4 because of the services it offers for the business community. This target market however have lots of competitors like Black Berry and Samsung. This is why corporate customers are second most important customers of I Phone 4. Competitor Analysis Apple has a lot of competitors to face in cell phone industry. Many new companies like Google have entered in the cell phone industry and is attracting customers. Companies like Nokia, Samsung, and HTC have been in the market for a long time and they have a very loyal customer base. These companies are also innovating and offer many models to customers. Blackberry which is designed by Research in Motion (RIM) is also a major force in the market and offer good services. The main disadvantage for Apple is that it is offering only one model I Phone 4 to its customers. All the other companies are offering a variety of cell phones to the customers. In this way they are able to cater to a variety of target markets. Middle age people are not used to touch screen technology and prefer conventional button keypads. They will never buy I Phone 4 and Apple misses upon a whole group of such customers. Models that are providing tough competition to I Phone 4 are HTC Evo 4G and HTC Droid Incredible (Komando, K. 2010). These models are enjoying tremendous sales and are giving Apple a tough fight. HTC is a large company with global sales and a large number of models. This is why it can cater to a large number of customers. Google is also coming up with new models and this is also a threat for the dominance of I Phone 4. The brand name of Google will attract more customers because it is well known all over the world. Microsoft is also looking to enter into the cell phone industry and this can seriously affect sales of I Phone 4. Opportunities and Threat Apple can extend its sales to emerging markets like India, Bangladesh, Pakistan and China. The customer base of these countries is tremendous therefore Apple has an amazing opportunity to market its product. Due to modern means of communication Apple is a well known name all over the globe so it will not be a big problem to attract customers. Apple can sell I Phone 4 in developing countries through local companies. In this way I Phone 4 can be launched at low costs in these countries. Another opportunity for Apple is to focus on old age people. This target market has been neglected by many companies and Apple can capitalize on that. They can market I Phone 4 in old age group people by telling them how it will make their life easy. This market is also significant because they need cell phones to communicate with their sons and grandsons and daughters. The main threat for Apple is the weak financial positions of major economies of the world. United Kingdom is also not doing very well and therefore sales of I Phone 4 can get affected. People are getting unemployed and families are curbing their expenses. In such a situation I Phone 4 is a luxury and people can live without it. This can lower profits of the Apple in the long term. Another threat to I Phone 4 is the cheap models that are being made by Chinese companies. These look like I Phone 4 but lack many features. These copies are very cheap therefore people are opting for it in developing countries. This can be a serious threat for I Phone 4 because they are missing on the possible markets. Apple is not earning revenues from such sales. These copies can also reach developed countries and this will causes serious problems for the company. Recommendation on Market Strategy In this section we will include suggestions for the marketing strategy of Apple I Phone 4. Target market, differentiation and positioning, product strategy, pricing strategy, distribution strategy and promotion strategy will be discussed with regards to I Phone 4 in United Kingdom. Target Market The main target market of I Phone 4 is the younger generation (Latif, L. 2010). These are the people who wait for new cell phones and are technology savvy. Apple should target these customers mainly in their marketing campaigns. Young people should be informed about the features of I Phone 4 and this can attract them towards the cell phone. The other target market that Apple should target is the corporate customers. These clients can be attracted by focusing on the looks and the features of the cell phone in advertisements. Corporate customers like fast internet services and decent designs. These two features should be advertised in commercials. Corporate customers should also be informed about the business related software of the cell phone. Differentiation and Positioning The main differentiation point of I Phone 4 is that it has been named as the smartest cell phone of the world. This is an achievement like no other and is itself a great differentiation factor. I Phone 4 is a thinnest smart phone of the world so this is enough reason for customers to choose I Phone 4 over other cell phones present in the market. Another differentiation factor is the success of its previous versions. Previous models of I Phone have been a huge success therefore the expectations from the latest model are also high. Teaser campaigns can help in creating awareness for the new models. The brand positioning of I Phone 4 can be done by increasing the awareness of the cell phones. Internet can be used to create hype for the new model. Teaser campaigns can work in a great way because they make customers anxious about the upcoming model. Positioning of the brand has already been done in the target market so it is enough that customers are aware that nre model in coming in the market. Pricing Strategy The pricing strategy that should be followed by Apple with regards to I Phone 4 is that of medium level pricing. The prices of I Phone 4 should be set at medium levels. The main target market of the cell phone is the young generation and they cannot afford high prices. Also I Phone 4 is aiming a large number of customers therefore they cannot charge very high prices from customers. The target market of the cell phone is also not corporate clients only so high prices cannot be charged. But at the same time very low prices are not necessary to make wide sales. Apple has a strategy to reward its loyal customers (Miller, Ziegler, & Patel. 2010) and this practice should continue with I Phone 4 model as well. Promotion Strategy The promotion strategy of I Phone 4 should be aimed at youth. Media of internet should be used to target youth because they use internet on a regular basis. Moreover television advertisements should also be used in between shows and sitcoms that are regularly watched by young people. Apple has used simple, intriguing and clever promotion strategy for its previous models and this should continue with the I Phone 4 as well (Vertygo Team, 2011). Product and Distribution Strategy The product strategy of I Phone 4 should not be very different from the previous models. Product design has not been changed and has been made thinner. The new specifications should be informed to the users. Distribution strategy is also important. Apple should place its sales centres in areas which are visited by young people. Sales network is very important and it plays a major role in sales of a product. Young people should have easy access to the sales centres of I Phone 4. Sales centres should also remain open at times when universities and colleges are closing. This is the time when students will come and shop. At these times stores should be open. Conclusion Apple is a well known company all over the world and its cell phone model I Phone has attracted a large number of customers. Its latest model I Phone 4 has been named as the smartest cell phone available today. The main target audience of I Phone 4 is the younger generation. Young people are technology oriented and like I Phone 4 due to its unique design and features. Promotion strategy of I Phone 4should be aimed at this target market. The major competitors of Apple in the cell phone industry are Nokia, Samsung and Google. References Apple Marketing Strategy. (2011). Vertygo Team. Retrieved from http://www.vertygoteam.com/apple_marketing_strategy.php Golvin, C. (2010). I Phone 4 Will Reinforce The Differentiating Power Of Software In Phones, Forrester. Retrieved from http://blogs.forrester.com/charles_golvin/10-06-07-iphone_4_will_reinforce_differentiating_power_software_phones Komando, K. (2010). The I Phone 4 faces stiff competition. USA Today. Retrieved from http://www.usatoday.com/tech/columnist/kimkomando/2010-06-17-komando-smartphones_N.htm Latif, L. (2010). Apple's I Phone 4 will trounce it’s I pad. The Inquirer. Retrieved from http://www.theinquirer.net/inquirer/feature/1653355/apple-iphone-trounce-ipad Morris, C. (2010). I Phone 4 Review: The Best Smartphone Ever? Fox News. Retrieved from http://www.foxnews.com/scitech/2010/06/24/iphone-review-best-smartphone-on-market/ Topolsky, J. (2010). I Phone 4 guide: preview, pricing, availability. Engadget.com. Retrieved from http://www.engadget.com/2010/06/08/iphone-4-guide-preview-pricing-availability-and-more/ Top shop’s flagship London store hit by tax protest. (2010). BBC News UK. Retrieved from http://www.bbc.co.uk/news/uk-11918873 Read More