MKT 571 Week 6 New Product Launch Marketing Plan Phase III

| October 16, 2015

Complete the final phase of your New Product Launch Marketing plan. Using the sample Marketing Plan in Marketing and Management (pp. 60-65), consider your product launch to date, reflect on additional learning, and refine to create a Marketing Plan for your new product. Your plan should be no more than 3,500 words. Be sure to include the following:
Executive summary
Situational analysis
Market growth potential and competitive analysis
Segmentation, target market, and positioning
Pricing and distribution strategies
Marketing communication plan
Financial information(including forecasting demand, break-even, sales, promotional budget, and marketing expense)
Intended marketing objectives for Y1, Y2, and Y3
Implementation milestones
Evaluation and control metrics and methodology to measure performance
Contingency planning
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The Product is Iphone and I only have to complete the highlighted area. I have attached a copy of the New Product Launch Marketing Plan Phase II

Executive Summary
Apple’s IPhone was the creative baby of Steve Jobs in Mid-2007. It was the first mobile phone to have capabilities of a computer, camera, and phone all in one. It quickly gained popularity and became one of the most well-known phone brands of all time. Despite rising competition like Samsung, Motorola, and LG, Apple has developed a revolutionary piece of technology that is continuing to change the way we think, act, and live. Going into a new venture with the latest generation of IPhone, Apple has extended itself to be user-friendly to anyone despite their race, gender, nationality, or age.
Market Summary
Apple knows its market very well and aims to please its customers. This information will be used to understand who the IPhone is targeted to, what their needs are, and how this product can better serve them in their day to day lives. The IPhone has no set demographic. It is designed to be used by anyone. The IPhone provides the mobile technology world a new and exciting way to interact with your phone and with each other wirelessly. The company wants to provide the latest technology and design along with innovative software to bring the most life like experience on your mobile device. The trend of the market is constantly evolving as electronics and technology evolve. IPhone is meeting that evolution head on and breaking barriers by being a trendsetter instead of a follower. With the want and need to have the latest technological advancement, the growth will continuously go up for the product unless so newer form of communication is developed that can rival the cellular phone.
SWOT Analysis
The SWOT Analysis for Apple both domestic and international have great strengths because they have a high increase in gained market shares as demand continues to grow. As one of the leading companies in the markets, Apple has some of the best programmers who continue to improve and offer downloadable software for customers to install and use for free as it is included in the original purchase price of the IPhone.
The software updates can be viewed as a weakness as many consumers do not like mandatory update in order to keep their phone current. With most of the updates, comes changes to a lot of the applications and require separate downloadable patches that fixes bugs caused by the required iso updates. Apple must be careful as it is easy to infringe on other companies patents and proprietary applications. Another weakness that needs to be considered is the lack of updates on software for older model phones which could cause discontinued devises as not all customers want to purchase new iPhones on a regular basis. According to (Scientific America, 2013) “Americans buy new phones, on average, about every 22 months”.
There are many opportunities for Apple as they continue to improve models and have raising sales, they continue to gain market shares by providing better cutting edge products to consumers and expanding throughout the global market. By offering a trade in policy that will allow consumers to trade their current non Apple phone in for a discounted rebate on a new Apple iPhone purchase will expand sales and capture more of the market.
The threats that Apple must be cautious about are ensuring that their new iPhone is appealing to all demographics of consumers. The limitations on designs and software cannot be too confusing to non-technological consumers as there are much cheaper phones for them to purchase that does not require much knowledge or skills to operate. Having too much technology on the devise can be just as damaging to the launching of the new product just as much as not having enough technology.
With modern technology advancement and electronic companies expanding the cell phone competition is fierce. Consumers want the best possible product for the lowest prices. There are many options for consumers to choose from when deciding to purchase or upgrading their cell phone. Besides Apple, some of the options consumers have to choose from are Samsung and Motorola.
Product Offering
Many manufactures have the same type of product and services so it is important for Apple to distinguish themselves apart from competitors. What sets Apple products apart from the other cell phone manufacturing companies is that the new iPhone will offer a 5.5 inch LED-backlit widescreen Multi Touch display with IPS technology and Retina HD display. The phone has a 1920-by-1080-pixel resolution at 401 ppm, Fingerprint-resistant coating on front, support for
Successful Launching
The key to a successful launching of the new iPhone will be getting consumers educated about the different applications and latest technology on the iPhone and showing them the importance of having the ability to do more with their phone compared to the regular cellphone offered by other companies. Apple will need to hire teams that will give demonstrations and allow customers to view, test and see the new iPhone in action to get the full effect of the importance of owning an Apple IPhone compared to other leading brands.
Critical Areas of Interest
Some of the critical areas of interest are ensuring all glitches are worked out on the different applications on the iPhone, make sure all the software is up to date and there are plenty of demonstration sites available that covers a wide range of demographics, targeting all consumers alike. The demonstration sites will also give consumers the ability to preorder the new iPhone and fill out surveys. This will allow Apple to get feedback from customers about what they like and don’t like about the product which will help the development team make improvements to future products and upgrades. Also by allowing preordering, Apple will have statistics as to what the demographics of their customers are and help the marketing team determine where they need to focus that will target potential new customers.
Bringing the world closer together through our technology with giving our users the ability to use applications for almost every task.
Marketing Objectives
Making our products easy to use right out of the box, and having knowledgeable staff to provide customer service to help them understand as to how to use the products, and how to add content and applications to our products. Manufacture the IPhone to meet the needs of the people, and provide enough hard drive space to meet everyone’s personal needs.
Financial Objectives
After the current third quarter of 2015, the Apple Company is looking to improve revenue by an additional 15% for the following years, and a 3% increase by next quarter though the sales of the IPhone. The quarter gave 49.6 billion dollars in revenue as a company with IPhone taking the lead in the amount of revenue made. We are looking to improve all of our products to increase overall revenue as well as the market shares.
While the IPhone will be marketed even in those of the same markets as other competitor’s, the ability to make the phones more user friendly and meet the needs of the customer will help to set us apart from that of the other companies.
The company’s product mix needs to make sure that the products that the company produces are equal to the demand in not just the targeted market, but also in regards to the financial ability of those that live in the communities of using the right marketing tools by which to offer products within each communities price ranges as well.
Marketing Program
Pricing is a necessity to be able to get customers to choose the products over that of the competitors, and coming up with new ways for a customer to be able to purchase the items with a payment plan or an incentive, will draw customers in and boost additional sales. The placement of the products, also need to be taken into consideration as to not just offer them in the areas by which the products sell, but also to bring the product to areas to where the competitor might be taking the market shares of in possibly drawing customers to buying an IPhone.
Marketing Research
The ability of using information from previous model sales, will allow for the company to be able to evaluate the company’s strong and weak points in regards to their sales and their products. It will also allow for the research of making sure whether or not a market is strong enough to continue to offer the products or to create a new product mix in the area. Also, using information of selected locations of the sales of the company’s products and that of the competitors, will help in knowing as to how to improve on design and use and to get an edge over the competitor.
Financial Analysis
The break-even analysis indicates that $9,623,000 will be required in quarterly sales revenue to reach the break-even point.
Break-Even Analysis(Huguet, 2015)

Break-Even Analysis:

Quarterly Units Break-Even
Quarterly Sales Break-Even

Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Quarterly Fixed Costs

Sales Forecast (in billions)

Apple feels that sales will continue to increase with over the next year with the introduction of the IPhone 7 in 2016. Apple has continually increased it marketing budget to be more competitive with Samsung. (Adnan, 2015) Apple is very conservative with only seeking a 15 percent increase for the upcoming years.

Table Sales Forecast

Sales Forecast
2015 2016 2017
207.70 241.15 277.33
Direct Cost of Sales
117.56 123.44 129.61
Gross Income
90.14 117.71 147.72

Marketing Expense Budget

Apple has steadily increased the marketing expense budget to stay competitive. Apple over the last three years has only increased the marketing expense budget by 10% each year. “Apple only spends about 1 percent of total sales on advertising.” (Ovidijus, 2015) This means Apple’s marketing strategy yields a greater return without the necessity of increased spending. (Ovidijus, 2015)

Table Marketing Expense Budget (in Billions)

2015 2016 2017
Total Marketing
1.3 1.4 1.5

Controlled Test Marketing of the iPhone
The company with the new product specifies the number of stores and geographic locations it wants to test (Kotler & Keller, 2012, pg. 596). Apple, Inc. controls iPhones through stores and pricing, positioning, and promotions. This action exposed the iPhones and its features to their smartphones competitor’s for scrutiny.
The five types of marketing controls used by Apple, Inc.
Types Responsibility Purpose Tactics
I. Yearly Top and
Middle management Examine results
Market projections

II. Profits/Losses Controllers Examine profits and losses Profits:

III. Efficiency Controllers and salespersons Evaluate improvements and spending Efficiency of:
Sales force
Sales promotion
IV. Strategy Top management
And auditors Examine opportunities within channels Effectiveness


Test Markets
Apple, Inc. iPhone
Test cities? Five to ten cities
Which cities? Small, medium and large cities
Length of test? Three – twelve months
What information to collect? Consumers brand loyalty. Surveys attitudes and satisfaction
What action to take? Launch iPhones globally

The effective implementation and control of the iPhone provide the marketing plan that defines the progress towards the goals are measured. Managers typically use budgets, schedules, and marketing metrics for monitoring and evaluating results (Kotler & Keller, 2012, pg. A-2). The forecasted measurements concerning the iPhone will be used as a tool for corrections and control of the implementation process.
Marketing Organization
FUNCTIONAL Functional specialists report to the marketing vice president.
GEOGRAPHIC National sales manager, regional sales managers, zone managers, district sales managers, and salespeople.
PRODUCT Long-term goals and strategies.

MARKET Development managers, market and industry specialists.
MATRIX Provide information to top management
Complete organizational leadership throughout Apple, Inc. to the support the iPhone brand and increase revenue for the company. Development of a national strategy.

Contingency Planning
The process of developing such a plan involves convening a team representing all sectors of the organization, identifying critical resources and functions and establishing a plan for recovery based on how long the company can function without specific functions. The plan must be documented and tested until it works effectively.

Difficulties and Risks of iPhone
Worst-Case Risks of iPhone

Financial problems
Problems with iPhones/Recalls

Adnan, M. (2015, October 5). Tech Grape Vine. Retrieved from Iphone 7 Release Date, Features, Price, Rumors, Concepts Images:
Huguet, K. (2015, January 27). Apple Library. Retrieved from
Ovidijus, J. (2015, April 18). Strategic Management Insight. Retrieved from Apple SWOT Analysis 2015:
Kotler, P., & Keller, K. L. (2012). Marketing Management (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Scientific America, (August 20, 2013), Should You Upgrade Your Phone Every Year?—Not Anymore, Scientific, retrieved from:

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4 Questions -No Plagiarism PLEASE read before accepting assignment. Assignment is Due Tomorrow, October 15h by 1pm EST. 300-word count for each question in your own words.

Category: Marketing

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