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Marketing Plan of the Ipad 3

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Marketing Plan of the Ipad 3
Apple Inc.
Table of Contents
1. Executive Summary

Apple Inc., founded in 1977 as Apple Computer Inc. with the introduction of the Apple II microcomputer, 14 is the undisputed leader of personal technology devices and supporting applications. They have continually been the frontrunner of groundbreaking technology. 5 Apple Inc. consistently markets and produces new products. They have been the engineers of many state-of-the-art devices and applications because they stand by their motto, “Think Differently”.6 Apple Inc. understands that spending R & D dollars, currently is an investment that is well worth the cost. When launching the IPad 3 in 2012, Apple Inc. instituted a tiered pricing system based on installed components. Although the company set prestige pricing for IPad 3, as it does for all of its products, because of mass customization, this marketing strategy has been very effective. Another product differentiation of the iPad 3 and Apple Inc. in general, is that the company offers an innumerable amount of complimentary downloads from the iTunes store as well as free training and support for all levels of users.8 Apple Inc. produces a host of electronic devices including the increasingly popular iPad tablet computer. Additional products include personal computers, monitors, all-in-one computers, laptops, software, cell phones, portable digital music players as well as peripheral devices and accessories along with their most recent offering, the Apple TV which is an online viewing device. Apple Inc. also offers a myriad of software applications to compliment the iPad 3 as well as their entire product line.3 In fact they offer more than 200,000 software titles for the iPad 3 to date.16 Apple, Inc. has a wide range of consumers within their target market which includes both private customers and business professionals. They define their market as middle- to upper-income people who are willing to pay a little more for a better experience.9
2. Company Description With the return of former CEO Steve Jobs and reorganization of the company in 1997, Apple Inc. regained its image as a leading provider of personal technology devices.14 With the introduction of the iPad 3 in 2012, the company formed a new tablet niche in which it continues to offer unsurpassed technology. Because of the product differentiation of their entire product line, Apple Inc. has the distinct pleasure of becoming only the second company in history to achieve $600 billion in annual sales/market value.13 At the close of business on May 1, 2012, their stocks sold for $582.13 with a market value of $542,760,548,100.10
3. Strategic Focus and Plan
Mission Statement
“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad”.2
Goals
Apple Inc. has many goals that they plan on achieving over the next five years, examples of some of the goals: * Nonfinancial Goals
1. Continue with intense research and development on current and new products.
2. Strive to maintain their large brand loyalty. * Financial Goals
1. Stabilize their market shares and revenue.
4. Situation Analysis
SWOT Analysis Apple Inc. has become one of the leading organizations that produce and sell personal computers, media devices, and portable digital music players.1 Strength | Weakness | Apple Inc. is highly focused on Research and Development on their current products“Robust financial performance strengthensinvestors' confidence and provides capital”1Strong brand image over their competitors | Other organizations attempting to create counterfeit productsPatent infringement lawsuit could affect Apple’s financial standings11 | Opportunities | Threats | Growth in design and functionality of their Ipad and other products2 | Rapid growth in new competitors such as Google AndroidDependence on a limited number of suppliers7 |

Industry Analysis Apple’s Inc. industry markets are ever growing and rapidly changing with the needs of consumers. As consumer’s needs and wants change companies such as Apple have to begin researching ways to meet their consumer’s needs and stay profitable. The biggest key to success in the electronic market today is being able to produce new products before other companies do so.
Competitor Analysis Since the electronic industry is growing ever so rapidly Apple Inc. has had to compare their competitor’s strengths, weaknesses, opportunities, and threats to their own. Having a competitor analysis gives Apple Inc. the ability to implement changes in order to keep ahead of the game. A competitor analysis also allows financial investors the ability to view competitors’ earnings to their own. Listed below are two competitors SWOT Analysis: Dell Inc. Strength | Weakness | Have a strong brand value | Lower margins compared to peers | Opportunities | Threats | Growing market shares | Intense competition | Acer Inc. Strength | Weakness | Strong portfolio of offerings | Lack of focus on product development | Opportunities | Threats | Increase in demand of tablets | Rising input costs can impact revenue |

5. Market-Product Focus Apple Inc’s. marketing intent is continuously improve the iPad and its large consumer loyalty and brand image.8
Target Markets Apple Inc. has a wide range of consumers within their target market which includes both private customers and business professionals. When selecting their target markets Apple had to ensure that the markets were not to narrow as to make it difficult to succeed, but also that the select market were not too broad.9
Segmentation
Apple Inc. “operates through five operating segments: Americas, Europe, Japan, Asia-Pacific and retail”.1 The segmentation labeled as Americas includes both North and South America. Apple Inc.’s largest geographical market segment was Americas which accounted for nearly 38 percent of their total revenue in 2010. The retail operating segment is located currently in eleven countries to date.1
Positioning
Since introducing the iPad 3 to the tablet market, Apple has conveyed their superior ability to adapt to consumer needs. The reason behind staying ahead of consumer needs is Apple Inc.’s amount of spending annually on development and consumer feedback. Apple also strives to remain one of the leaders in tablet pc resolution and capabilities.

Product Information The iPad 3 has four times more pixels than iPad 2 with razor-sharp text and richer colors.
It has a 5-mega-pixel iSight camera and HD Video recording. iPad can act as a personal hotspot for connecting up to five devices. iCloud stores your music, photos, apps, mail, contacts, calendars, and documents and wirelessly puts them on all of your devices. The iPad also offers dictation, which will write and email, send a text, or search the web all with only your voice instead of typing. Apple also has over 200,000 apps to choose from on the App Store.8
Specifications
The iPad is 9.5inches x 7.31inches x .37inches and weighs 1.44 pounds. It offers three different types of storage; 16GB, 32GB, or 64GB. The display is a retina display with a 9.7 inch LED-backlit glossy widescreen. It has multi-touch display with IPS technology, fingerprint-resistant oleo-phobic coating, support for display with multiple languages and characters simultaneously. The chip is a dual-core Apple A5X custom-designed, high-performance, low-power system-on-a-chip with quad core graphics. It has both Wi-Fi and Bluetooth 4.0 technology. The camera and video recording use a 5-megapixel iSight Camera, autofocus, tap to focus, face detection in still images and face time. It has a built in 42.5 watt-hour rechargeable lithium-polymer battery, up to 10 hours of surfing the web on Wi-Fi, watching videos or listening to music, charging via power adapter or USB to computer system. There is a 30-pin dock connector port, 3.5 mm stereo headphone mini-jack, built in speaker, and microphone. In the box is the iPad, dock connector to USB power adapter, and documentation.8

6. Marketing Program
Product Strategy Apple Inc. has many different product lines in today’s electronic industry. The iPad itself is available in a few different formats. The different formats are the iPad comes in black or white, Wi-Fi, Wi-Fi and 4G, and lastly three different hard drive sizes.8
Price Strategy Apple, Inc. uses a targeted ROI (return on investment) pricing strategy in combination with prestige pricing to meet their objectives. They are able to do so because they consistently offer innovative, new products which are unparalleled in the industry.3 To make the new iPad more affordable to a wider consumer base, Apple Inc. instituted a tiered pricing system based on chosen components.8 In addition, to make the iPad 2 more marketable with competitors, Apple Inc. dropped the price $100.12
Promotion Strategy When Apple, Inc. releases new products or introduces upgrades, they are sure to have the necessary support systems in place prior to the release date. For example, when introducing the iPad 3, they were sure to have updated and new content available for purchase at the iTunes store. They also offer unparalleled technical support via free training classes that target new and experienced users.4
Place (Distribution) Strategy Apple Inc. uses many different forms of distribution to sell their products worldwide. Largely sales of the iPad 3 are from internet sites or from Apple stores located in most cities. Apple Inc. also uses other stores such as Best Buy to distribute their product to as many consumers as possible.15
7. Financial Information
Past Sales Revenues Apple Inc. has continuously showed large financial gains from the sale of the Ipad and its creation in 2010. In 2010, Apple Inc. recorded revenues of $65,225 million at the end of fiscal year 2010, an increase of 52% from 2009.1 The iPad accounts for nearly eight percent of Apple Inc’s. sales in 2010, which amounts to $4,958 million in revenue. The largest product line sales are the iPhone which account for 39% of sales.1
8. Organization Apple Inc. to date has over 20,000 employees, 15 but has a list of key employees that are involved in the marketing, development, research, and customer service. Below is a basic design of Apple Inc’s. organization chart:
Appendix A. Bibliography
(1) Apple Inc. 2012. Retrieved from http://investor.apple.com/faq.cfm?FaqSetID=6
(2) Apple Inc. (n.d): Datamonitor Company Profiles Authority. Web. 18 Apr. 2012
(3) Apple Inc. 2012. Retrieved from https://store.apple.com/us
(4) Apple Inc. 2012. Retrieved from http://www.apple.com/support
(5) Apple’s Branding Strategy. Retrieved by http://www.marketingminds.com.au/branding/apple_branding_strategy.html
(6) Apple’s Core Competency is Innovative Design and Technology. (2009, October 27). Retrieved by http://www.opensurgegroup.com/about/about/news_files/3652aabe5e523d78d8b3f82a12b8723d-6.html
(7) Apple Supplier Responsibility. (January 2012). Retrieved from http://images.apple.com/supplierresponsibility/pdf/Apple_SR_2012_Progress_Report.pdf (8) iPad Features. (2012). Retrieved from http://www.apple.com/ipad/ (9) Kerin, R., et.al. (2011) Marketing the Core, 4th Ed. Market Segmentation, Targeting, and Positioning – Marketing Matters – Technology, pp. 201
(10) NASDAQ. APPL: Stock Quote and Summary Data. (2012). Retrieved from http://www.nasdaq.com/symbol/aapl (11) Q2 FY12Form 10-QI.(2012, April 25). Retrieved by http://investor.apple.com/secfiling.cfm?filingID=1193125-11-282113&CIK=320193
(12) Sloane, G. (2012, March 8) New York Post Online. New iPad Pricing Strategy Targets Cheaper Rivals http://www.nypost.com/p/news/business/tablet_tactics_FwflrZl6yNglzmSJOIcK8J
(13) Svensson, P. (2012, April 10). Apple Market Value hits $600B. Retrieved by http://www.usatoday.com/tech/news/story/2012-04-10/apple-stock-value/54147704/1
(14) The iPod to PC Transfer. (2008). Apple Inc. History. Retrieved by http://www.ipodtopctransfer.com/news/apple-inc.html
(15) Wilcox, J. (2011, May). Beta News. Why is iPad Successful? Retrieved from http://betanews.com/2011/01/25/why-is-ipad-successful/. (16) YouTube – What is the iPad video – 5-12-10 – Alexosh1234 http://www.youtube.com/watch?v=MKZrqiBtUZo

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