Original Article
When it comes to Apple Corporation, I always expect something new, something sensational, something transformational. They made Mac that realized Graphic User Interface before Microsoft’s Windows and actually enabled us to call personal computer from just computer. They made the iPod which not only boost sales and shares of Apple and saved from the crisis but also put Steve Jobs at the center of attention. Facing 35% shares down and softened consumption that probably caused by sub prime mortgage, Can iPhone be killer product for Apple?
I am going to approach iPhone’s marketing plan from the business perspective which I learned from reading chapter 1 in textbook.
Product
“The iPhone is like the Mac for mobile.” says Jakob Nielsen.
Indeed, iPhone’s major appeal might be the function as a tiny Mac computer. iPhone has capability to operate a various software and it has touch screen only interface. People can have videoconference and get the latest information as they wish through the iPhone.
Price
Researching ebay, I found that iPhone 8GB is being sold with around $430. Even though Apple built the premium image and has a number of loyal customers, considering current softened consumption and competition model, Blackberry, the price $430 seems to be way too expensive. I think $370 is proper price point.
Place
You can get iPhone in the AT&T or Apple store. However, I couldn’t find iPhone in Walmart and BestBuy’s web page. They sell iPhone’s accessory but iPhone. However, I don’t think that the limited place to buy iPhone will be a problem. The potential customer groups of iPhone have strong loyalty and bond with Apple which was been built by using Mac and iPod. I believe they are willing to find Apple store as long as they have money.
Promotion
Facing 35 shares down, Apple promotes loyalty to their employees. In Sep 30, 2006, Apple has 17787 full time and 2399 temporary employees. Assuming they sell iPhone with $400 to every single employee, the amount of sales would be around $8 million. Apple also tries to sell companies. However, to increase sales from corporate, as they said up-to-date software, security, corporate level policies, better support should be guaranteed first.
The Value of iPhone
As a tiny computer, iPhone has great value, but currently some controversial issue came. That is how they control the application software for iPhone. There is certain way that potential customers and programmer want, open source. However, Steve Jobs addressed that the application software will be distributed only through the iTunes. In this way, the intrinsic value of iPhone is diminished a little but Apple secures the chances to constantly make the profit providing the latest software.
Student ID :20501034
Reference
Marketing, Grewal and Levy, Mcgraw Hill
http://www.networkworld.com/news/2008/030708-ten-questions-i-still-have.html?page=3
http://en.wikipedia.org/wiki/Apple_Inc.
http://www.walmart.com/
http://www.bestbuy.com/
1 comment:
I tried to join the blog but couldn't, so I attach my post at here;;
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20500356 Jinbyeong Yang
LG cyon phone, can It be the leading brand of cell-phone market?
The worldwide cellphone market is now in rapid change. Apple launched iphone with big issues and Motorola has been thinking about withdrawal from the market. In the circumstance, can LG survive in the cellphone market? I’ll write my post from article about LG’s new cameraphone, by using the concepts from chap.1.
LG started to make cellphone later than others, and its business could hardly make a good result. So LG decided to make a new value of cellphones, of which the strategy called ‘black label’.
That brought a great success to the company. Now lg is earning lots of money from the market, and has became one of major companies of the market. I want to say LG’s cellphones using 4p and the value.
Product
In tradition, the concept to cellphone was just a handheld phone. It was no more than another electric tool that enables people ubiquatas life. It was no long time ago that conversance movement included cellphone mp3, camera, and other multimedia functions.
Lg focused on design. They founded that cellphones could have fashionable values. They launched ‘black label’ phones like Chocolate or Shine, which has great design and figures that could touch consumers emotionally such as touchpad, stainless-shining product.
And they could catch up the trend. In the time of year 2005, RAZR of Motorola had made an incredible success in the market by its design. LG sold 13millions of chocolate. They continuously have done great successes.
Price
One of the reason that Lg’s cellphone had great success is their reasonable price. Their ‘black labeled’ Cellphones had targets to young customers of 10~30s, and the price wasn’t to expensive. It’s because they had another phone targeted the rich users, named PRADA phone. It was over $800, but with the price and branding with prada, the price made their image to their needs.
Place
I couldn’t understand the concept ‘place’, so I didn’t write about that.
Promotion
They gave the consumers not just a cellphone, but an item which could be good accesaries, by which they could do many multimedia activities. But in korea, I think it has not succeed so much. In korea, anycall is the best phone of the market because of its image and the product itself, and lg cyon has not hurdled it up yet. They not have the belief to customers like one of Samsung anycall.
original article address:
http://www.businessweek.com/globalbiz/content/aug2007/gb20070829_110479.htm
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