Market Planning Assignment: iPhone K
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Transcript of Market Planning Assignment: iPhone K
Market Planning Assignment:
iPhone K
Group 2: Carly Jones, Hyunsoo Kim, Ina Koelle, Sarah Hirschmann, and Tyler Darke
BUS 306-01 Fundamentals of MarketingDecember 10, 2013
Agenda1 Market Needs2 Product and Software
Introduction3 Product Position4 Competition5 Target Market and
Segmentation6 Value Proposition7 Finances8 Conclusion and Questions
1976
1976 - 1998
1998 - 2000
2001 - 2007
2007 - Present
Market Needs• Simple solution to parental controls• Ease of use
• Quality, child-appropriate phone• Desirable to children
• Access for children to smartphone features and benefits
• 46.6% of children in the U.S. own a smartphone• Expected to increase to 70.4% by 2016
iPhone K
• Plastic exterior, steel frame interior
• Liquid repellent nano-coating
• Configurations• 16 GB• 32 GB
K
iOS 7K
• Limited internet• Restricted email• Restricted song, app, and video purchase• Monitored or restricted messaging• Incoming and outgoing call restrictions• GPS monitoring
Product Position
• High-end smartphone for children
• Peace of mind for concerned parents
• Bridge between limited-technology
children’s phones and current smartphones
Competition• Kajeet• Software only• Limited to Sprint
phones
• Firefly• Very limited features• Two color options• Not appealing to
children
Target Market
• Parents of children ages 5 – 12
• Mid to high income levels
• Early-adopters
Market Segments
• Geographics• Urban areas
surrounding major cities• Early-adopters• Existing Apple store
locations
Market Segments• Demographics• Parents ages 25 – 50• Likely to have children
ages 5 – 12• Mid to high income levels
• Behavior / Psychographics• Concerned parents• 71% likely to set parental
controls• Dissatisfied with current
options
8%9%
13%
20%
51%
Likelihood of Parents to set Parental Controls on a 5-12 year-old Child's
SmartphoneExtremely UnlikelyUnlikelyNeutralLikelyExtremely Likely
Marketing Mix
• Pricing• Distribution• Apple stores, online,
other licensed retailers
• Marketing Communications• Television commercials,
billboards, social media, mobile service providers
Model No Contract
2-year Contrac
t16 GB $499 $9932 GB $599 $199
Value Proposition• Apple product
• Broad range of features
• Safest children’s phone on the market
• Shares appearance of iPhone 5C
Price
Benefits
More The same Less
More More for more More for the same More for less
The same The same for
less
Less Less for much less
Financial Plan
Expense Year 1 Year 2 Year 3
Advertisements $70,000,000 $78,984,439 $103,891,252
Marketing Travel $20,000,000 $22,566,983 $29,683,215
Promotions $40,000,000 $45,133,965 $59,366,430
Distribution $30,000,000 $33,850,474 $44,524,822
Total $160,000,000 $180,535,860 $237,465,719
Cost Break DownVariable Costs Price per Unit
Materials $174 Manufacturing $60 Transportation $13
Storage $20Total per Unit $267
Fixed Costs Price per Quarter Machinery $300,000
Maintenance $10,000 Rent $190,000
Administrative $50,000Total per Quarter $550,000
Break-Even
- 100,000 200,000 300,000 400,000 500,000 600,000 $-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
Break-Even AnalysisSales Variable Cost Fixed Total Costs BE Units = 174,784
Units Sold Quarterly
Qua
rter
ly R
even
ue
Conclusion
• iPhone K - technologically advanced children’s phone
• Perfect for concerned parents
• Superior to competition
• Key Learnings
K
References• Apple retail stores, united states. (2013). Apple. Retrieved December 5, 2013, from:
http://www.apple.com/retail/storelist/
• Brown, R. (September 4, 2012). The cost of making an iPhone. Investopedia. Retrieved December 1, 2013 from: http:// www.investopedia.com/financial-edge/0912/the-cost-of-making-an-iphone.aspx
• Elmer-DeWitt, P. (October 28, 2009). Apple's 2009 ad budget: Half a billion. CNN Money. Retrieved November 30, 2013 from: http://tech.fortune.cnn.com/2009/10/28/apples-2009-ad-budget-half-a-billion/
• Hodgkins, K. (September 24, 2013). IHS: iPhone 5s component tally reaches $199, iPhone 5c costs $173. Tuaw. Retrieved December 1, 2013 from: http://www.tuaw.com/2013/09/24/ihs-iphone-5s-component-tally-reaches-199- iphone-5c-costs-17/
• iPhone. (2013). Apple. Retrieved October 13, 2013 from: http://www.apple.com/iphone/compare/Median age for u.s. counties map, statistics. (2013). Governing. Retrieved December 5, 2013,from:
http://www.governing.com/gov-data/ census/median-age-county-population-map.html
• Median age for u.s. counties map, statistics. (2013). Governing. Retrieved December 5, 2013,from: http://www.governing.com/ gov-data/census/median-age-county-population-map.html
• Zact. (May 13,2013). Zact mobile report: navigating children's smartphone use. PR Newswire. Retrieved October 10, 2013, from: http://www.prnewswire.com/news-releases/zact-mobile-report--navigating-childrens-smartphone-
use-215817311.html
Questions
iPhone K