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					                   Strategic Planning of Marketing
                                                   Presented by:
                            Management             Rene de Olivieira
                                                   Maria Fernanda Diaz
                                                          Steven Mastrodomenico
Source:                                                   Marcelo Sakai
http://www.howardmodels.com/                              Fernando Vicenzo Berto
                 Table of Contents
• Chapter 1 – Introduction and Brief History

• Chapter 2 – Environmental Analysis

• Chapter 3 – Analysis of the Company and Competitors

• Chapter 4 – Establishing the Objectives

• Chapter 5 – Strategies for Achieving the Goals

• Chapter 6 – Decisions of Products, Services, Brands, and Packages

• Chapter 7 – Decisions in Communication
                   Table of Contents
• Chapter 8 – Decisions of Channel in Distribution

• Chapter 9 – Decisions in Sales Force

• Chapter 10 – Decisions of Prices

• Chapter 11 - Budget and Investment Analysis

• Chapter 12 - Management and Control of Strategic Planning of Marketing
                 Management

• Bibliography
Chapter 1
Introduction




                                                      Source:
       http://www.appleipadapplications.org/apple-ipad-event/
1.1
                     Apple’s Headquarter
      • Located in Silicon Valley, California
        since 1993
          – The city for leading hub for high-
            tech innovation and development
          – Accounts for 1/3 of all of
            the venture capital investment in
            the United States
      • Has 6 buildings that total
        850,000 square feet
      • One of the largest companies in the
        world
      • The most valuable technology
        company in the world, having
        surpassed Microsoft
                                                                              Source:
                                                 http://www.hellocompany.org/page/70
1.2
                         Company’s History
      • April 1, 1976:
         – Steve Jobs and Steve Wozniak created Apple Computer
      • January 3, 1977:
         – The release of the Apple I, and incorporated the company
      • April 16 & 17, 1977:
         – Apple II had its first West Coast Computer Faire
         – Jobs introduced Apple II to a Japanese chemist named Toshio
           Mizushima, who became the first authorized Apple dealer in Japan.
      • December 12, 1980:
         – Apple launched the Initial Public Offering of its stock to the investing
           public
      • October 1983:
         – Macintosh 128k was announced to the press
      • 1999:
         – Apple introduced the Power Mac G4
                Company’s History
• 2001:
   – Apple introduced Mac OS X
• May 2001:
   – Announced the opening of a line of Apple retail stores
• October 2001:
   – Introduced its first iPod, portable digital audio player.
• 2004:
   – Introduction of the iPod Video, then the iPod Classic, and
      eventually the iPod touch and iPhone
• July 19, 2010:
   – Introduction of iPad
• March 1, 2011:
   – Introduction of iPad 2
Timeline of Apple Products




                                                                 Source:
            http://en.wikipedia.org/wiki/Timeline_of_Apple_Inc._products
1.3
      Expansion of Market




                                                    Source:
                      http://www.apple.com/retail/storelist/
                Expansion of Market
• Late 2003:
   – Apple opened its first Apple Store abroad, in Tokyo's Ginza district
• August 2004:
   – Followed by a store in Osaka, Japan
• November 2004:
   – Apple's first European store opened in London and is currently the
     largest store
• 2005:
   – Opened stores in Nagoya, the Shibuya district of Tokyo, Fukuoka,
     and Sendai
• April 2005:
   – Apple store introduced in the Bullring shopping center in Birmingham
               Expansion of Market
• June 2005:
   – Opened its first store in Canada at the Yorkdal Shopping
     Center in North York, Toronto
• July 2005:
   – Bluewater Shopping Center in Kent opened
• Later on 2005:
   – Apple opened the Meadow hall Store in Sheffield and the Trafford
     Centre Store in Manchester (UK)
• January 2006:
   – Recent additions in the London area include the Brent Cross Apple
     Store
• 2006:
   – Continuation of opening stores in Japan in the city of Sapporo
• September 2008:
   – Apple Store in Westfield in Shepherd's Bush
1.4
           Driven Marketing Strategy
      • Launch of Apple 1983
        – http://www.youtube.com/watch?v=lSiQA6KKyJo&
          playnext=1&list=PL89CED0D07364D761
      • Launch of Iphone
        – http://www.youtube.com/watch?v=ftf4riVJyqw&f
          eature=BF&list=FLEVDcUVUZAN8&index=1



                                                                                               Source:
                  http://www.koupoukis.gr/computer/apple/the-unofficial-steve-jobs-life-timeline-apple
                                      http://www.gsmarena.com/apple_iphone_3g-pictures-2424.php
1.5
                    Product Line

 MacBook         iMac                    Mac mini       Mac Pro     Mac OS X




  iPod Shuffle   iPod Nano            iPod Classic   iPod Touch      Apple TV




                                                                        Source:
                             iPhone                   iPad        www.apple.com
1.6
                   Apple’s Manufacturer
      • Foxconn Technology Group
         – World's largest maker of electronic components



      • Hon Hai Precision Industry Co., Ltd.
         – Won the Apple franchise in China

         – Walled factory city of 270,000 employees




                                                                                              Source:
                                   http://www.allnewsmac.com/2010/08/18/apples-major-manufacturer-
                                                    in-china-foxconn-to-hire-400000-workers-next-year/
 Software and design             Apple                USA
      Assembly                  Foxconn             Taiwan
   TFT-LCD Screen          Sanyo Epson, Sharp,       Japan
                                  TMD
 Video processor chip           Samsung              Korea
 Touch screen overlay             Balda             Germany
    Bluetooth chip       Cambridge Silicon Radio      UK
  Chip Manufacturer            TSMC, UMC             Taiwan
     Baseband IC          Infineon Technology       Germany
       WIFI Chip                 Marvell              USA
 Touch screen control           Broadcom              USA
         chip
      CMOS chip                 Micron               USA
    NOR Flash ICs        National Semi, Novatek     US, TW
Case, Mechanical parts   Catcher, Foxconn Tech      Taiwan
    Camera lens              Largan Precision       Taiwan
   Camera module         Altus-Tech, Primax, Lite   Taiwan
                                   on
   Battery Charger          Delta Electronics       Taiwan
    Timing Crystal                 TXC              Taiwan
 Passive components              Cyntec             Taiwan
 Connector & cables         Cheng Uei, Entery       Taiwan
                                                                           Source:
                                                              www.apple.com/iphone
     Chapter 2
ENVIRONMENTAL ANALYSIS




                                                     Source:
                 http://movingtosiliconvalley.wordpress.com/
2.1
      Geographical Structure for
          Apple Computer




                                         Source:
                                   www.apple.com
2.2
         Apple’s Network & its Variables
                                               Flow of products, Services and marketing communications

                                                     Flow of Information, Financial flow and orders


                                                                        PEST

        Provider’s Network                                    Company                                       Distribution Network

                                                       Other companies of the
                                                                                                                                                    F
              Design                                                                                                          Authorized
                                                              network                                                          Retailers
                                                                                                                                                    I
                                                                                                        N.A.                                        N
      Producers of Processors                                                                         Wholesaler                                    A
                                                                                                                              Direct Sales          L
        Producers of Chips                                                                                                    apple.com
                                                    Buying         Logistic      H.R
                                                                                                        L.A.
       Producers of Batteries                                                                         Wholesaler
                                                                                                                        Apple call center           C
      Producers of the Screen                                                                                                                       O
                                                                                                       Europe                                       N
      Producers of Connectors                                    Marketing                            Wholesaler                                    S
                                                    Production                Finance                                      Own Stores
                                                                                                                                                    U
              Cables                                                                                    Asia                                        M
                                                                                                      Wholesaler              Web Sales             E
            Assemblers                                       Competitors                                                                            R



                                                              Business Facilitators
                                Supply Chain                                                             Marketing Channels

                                                                                                                                             Figure 2.1
2.3

              Structure of Apple’s Model

      • Three broad industry categories:



         – Software Engineering

         – Hardware Manufacturing

         – Retail




                                                                       Source:
                                           http://pix-soft.com/Industries.html
2.3.1
                    Software Engineering

        • The core of the Apple genius

        • Set the technological pace for functionality and the end-user
           experience

        • Focuses its developmental skills on a target




                                                                                    Source:
                                            http://www.theappleloop.com/Home/monograph.html
2.3.2
             Hardware Manufacturing
   • Apple design and creativity attracts



   • Built-in functionality is greater



   • Interoperability with the Operating System is tighter and easier




                                                                                                Source:
                            http://www.devicenation.com/apple-iphone-4-still-not-being-recommended-by-
                                                                                      consumer-reports/
2.3.3
                                    Retail
    • Direct Contact with Consumers by establishing Apple Stores
         – Assuring technology is introduced properly



    • Flashy, boutique-like, with trained staff and plenty of opportunity to
        touch, test and try




                                                                                      Source:
                                                    http://www.apple.com/retail/fifthavenue/
2.4
      Participation of Countries in the
                   Market




                                                                       Source:
                      http://www.itechcity.org/tag/apple-pc-market-share-graph
2.5
      Apple Revenues




                                                                   Source:
         http://www.macworld.com/article/140162/2009/04/appleearnings.html
2.6
      iPod Market Share




                                                                      Source:
           http://www.crunchgear.com/2007/10/12/apples-growth-leading-to-bad-
                                                           customer-service/
2.7
      iPhone Market Share




                                                                Source:
              http://www.socialmedianews.com.au/category/google/android
2.8
      MacBook Market Share




                                                        Source:
                 http://www.ltjmanagement.com/post.cfm?PostID=8
2.9
      Worldwide Total PC Shipments




                                                                             Source:
                http://www.fasterpony.com/apple-worlds-largest-pc-manufacturer-ipad/
2.10
       Brand Awareness Analysis
       Apple is well known for their innovative devices




                                                                               Source:
                        http://www.scribd.com/doc/21275028/Apple-iPhone-Marketing-Plan
2.11
                                           PEST Analysis
                     Political & Legal                                           SocioCultural

 •   Legislative Policy        •   Tariff Barriers         •   Values ​and consumer     •   Influence of children in
     (Labor)                   •   Regulation of Foreign       habits                       the buying process
 •   Technical Norms               Trade                   •   Fashion & media          •   Women in the labor
 •   Political Interest        •   Power Unions            •   Lifestyles                   market
 •   Tax Policy                                            •   Social mobility          •   Population in large cities
 •   Exchange Policy                                       •   Consumer behavior        •   Demography
 •   Protectionist Policy                                  •   Income distribution      •   Levels of education

                          Economical                                             Technological
 •   Concentration of suppliers & shoppers                 •   Level of investment of industries and universities in
 •   Business Life Cycle                                       research & development
 •   Domestic & International Competition                  •   Life cycle of products
 •   Inflation, Interest, and Exchange Rate                •   Fluctuation in the costs of technology
 •   Availability of Capital & Financing                   •   Improvement & maintenance on the equipment
 •   Economic Integration                                  •   New Solution to technology
 •   Trading Blocs                                         •   Search of innovation                      Chart 2.3
2.12                                           Driver Change
                               Political & Legal                                                    SocioCultural

              Impacts/                              Actions                       Impacts/                           Actions
             Opportunity                                                         Opportunity
       • Technical Norms                  • Adapt to new technical         • Fashion, & media             • Maintain the satisfaction of
                                            standards                              o Lifestyles               consumers’ needs, with
                                                                                   o Consumer behavior        innovation


       • Legislative Policy (Labor)       • Reinforce US union forces in   • Influence of children in     • Diversification of product line
                                            the Chinese labor                 the buying process


       • Reduced protectionist policies   • Increase in China’s            • Population in large cities   • Availability of product
                                            importation, but take                  o   Demography         • Sustainable production
                                            advantage of low cost in                                          and sustainability labels
                                            production with high quality                                  • Communication that reaches
                                            standards                                                         the consumer directly


                                                                           • Levels of education          •   Educational communication
                                                                                                              to parents & children



                                                                                                                                  Chart 2.4
                                      Driver Change
                       Economical                                                     Technological

        Impacts/                             Actions                        Impacts/                              Actions
       Opportunity                                                         Opportunity
•   Concentration of suppliers   • Productive alliances in           • Level of investment of           • Maintain the high intensity of
                                    the domestic & international       industries and universities in     investment on research &
                                    market                             research and development           development in Silicon Valley.
                                                                                                        • Innovating new technology
•   Concentration of shoppers    • Implement different               • New Solution to technology         that creates efficiency to the
                                    strategies for pricing                                                consumers’ lives.
                                                                                                        • Personalization on the
• Domestic & International       • Joint actions with the                                                 products by adding value
    Competition                     government to increase
        o Economic Integration      political support for
        o Trading Blocs             export and import restrictions




                                                                                                                              Chart 2.4
2.13                                                      Consolidation
                                                                                                     Projects & Actions


               •   Similarity of products at lower cost                       •   Aggressive marketing with implementation of Marketing 3.0
               •   Ease of Imitation (Chinese products)                       •   Product & service differentiation with innovation of value to
Threats




               •   Increase cost of labor, raw materials and equipment            avoid competition by cost

               •   Fluctuations in income and employment                      •   Partnerships with suppliers to develop new materials
                                                                                  and equipment




               •   Technological New Age
                                                                              • Investment in communication channels being directly and
               •   Laziness on the consumer like to depend on smart devices
                                                                                  investment in Apple Retail Stores in South America to
Oportunities




               •   Increased income and consumption                               increased consumption
               •   Women in the labor market

               •   Reduction in cost because of existing technologies &       • New searches must continue for the hunt of
                   globalization                                                  new technologies with Silicon Valley and form new
                                                                                  partnerships with universities like MIT for research centers
                                                                                  suppliers



                                                                                                                                   Figure 2.2
2.14
                         Determinants of the
                       Intensity of Competition
                                                     Suppliers

                                    • Diverse market with high quality
                                      employees and lower cost production
                                      suppliers
                                    • Low bargaining
                                      power of suppliers of materials
                                                                              Competition from substitutes

                                                                             • The technogical market(computer,
          New Entrants                    Competition in the industry          cell phone, and portable player) do
                                                                               not have replacement
  • Threat of imitation from the      • Competition for price and quality,
    Chinese Market                      design, and brand strength           • Substitution is among the model
  • Threat of similarity in the                                                with new implementation or
    competition with lower cost       • Differentiation in the design,         consolidation
                                        colors, sizes, and models
                                                                             • High brand value in
                                                                               some products minimizes the
                                                                               substitution factors
                                                   Buyer power
                                   • Price sensitivity (depending on line)
                                     Bargaining power of retail stores
                                   • Greater competition increases
                                     bargaining power of buyers.                                       Figure 2.3
2.15
            Process of Shopping Decision
   Processing Stage      Occurring of the              Ideas to Use           Questions to Ask
                             Stage
 Recognition of Need   Necessity, fashion, and    Strong and direct         Frequency of purchase?
       to Buy          positioning to a special   advertising which         Motives?
                       social group               impacts the consumers’    Seasonal?
                                                  lives                     Brand Image &
                                                                            Awareness?

        Looking for    Use of internal sources Improve external             Attributes observed
       Information     (Silicon Valley), external sources (party houses,    during the choice?
                       sources (social groups, campaigns, and media)
                       blogs)                                               Perception of the brand?


       Evaluation of   Take account of the        Innovation on the         How to differentiate?
       Alternatives    size, weight, comfort,     comfortability & travel
                       durability, quality, and   usage of the consumer     Reaching different
                       price                                                customers & market?




                                                                                            Chart 2.5
      Process of Shopping Decision
Processing Stage      Occurring of the            Ideas to Use             Questions to Ask
                          Stage


Shopping Decision   Individual decision      Enforce excellent           Working attributes to
                    making in the store,     customer assistance         influence the purchase
                    based of comparison      and set more Apple          of the product instead
                    with other brands that   retail stores to            of competing?
                    offer similar product.   emphasize to the
                                             customer the service        Reaching directly to the
                                             being offered directly to   consumers?
                                             them.


 Post-Purchase      Create the fidelity of   Customer service            What is the
   Behavior         the consumer and have    assistance 24/7             level of satisfaction?
                    him spread the brand     International Warranty,
                    loyalty.                 and Personal Training       Where is there better
                                                                         service being offered?



                                                                                           Chart 2.5
2.16
           Analysis of Shopping Decision Process
  Processing Stage                 How is the Process                      Existing Opportunities
                     Positioning to a social group, which is the    Create the motive to select and
 Recognition of Need target market considering the                  consume more of your product line
       to Buy        necessity, and what is in style.               and service.
                       Use of internal sources (Silicon             Strengthen the brand in consumers'
        Looking for    Valley), external sources (social groups,    minds by creating a one-to-one
       Information     blogs)                                       relationship with the consumers,.

                       Take account of the size, weight, comfort,   Customers are looking for portable
    Evaluation of      durability, quality, and price.              devices that are beneficial for their
    Alternatives                                                    usage.


                       Individual decision making in the            Differentiate the product / brand,
                       store, based on comparison with other        from the communication to the
  Shopping Decision    brands that offer similar product.           point of sale. One must be
                                                                    innovative, creative by being
                                                                    animate and informative.
    Post-Purchase      Create the fidelity of the consumer and      Customers are in need of having
      Behavior         have him spread the brand loyalty.           brand loyalty. Seek into making the
                                                                    client feel part of the family.

                                                                                                  Chart 2.6
2.17
                               Collective Actions
         Collective Actions      Collective Actions        Collective Actions      Collective Actions
          with Suppliers          with channels             with facilitators      with competitors


       Participation in the    Orientation & training    Implement a policy     Joining forces to tax
       design and production   to technicians and        of to reduce productio cuts, raising
       of the product with     sales representative      n cost.                barriers to imports an
       comfortability and      from the retail stores.                          d export subsidies
       innovative tools



       Regulation system       Hold house parties,       Alliances to reduce    Market Research
       assuring the            events, show              transportation cost
       excellence & quality    cases, and innovative     and storage
       development on the      welcoming at their
       products                stores



                                                                                              Chart 2.7
              Chapter 3
ANALYSIS OF THE COMPANY AND COMPETITORS




                                            Source:
                                    www.apple.com
                                 www.blackberry.com
                                  www.microsfot.com
3.1
                        Customer Orientation
                                       Accomplished Activities

                                        Marketing                                               Ranking 0 to 10

      1. Listens and considers the needs and desires of the customers in a well                       9
         defined market segments.
      2. Distributes marketing efforts in accordance with the profit of a                             9
         potential long-term targeted segments.
                                                                                                      9
      3. Creates winning bids for the target segment.
      4. Evaluates continuously the company's image and customer satisfaction.                        10
      5. Collects and evaluates continuously ideas for new products and improving
         existing products and services to meet customer needs.                                       10
      6. Influences all departments and employees of the company to consider
                                                                                                      10
         the customer in everything they think and practice.
      7. Strives to offer the customers the "best solution".                                          10
      8. Only make promises that they can deliver.
                                                                                                      10


                                    Ranking:                                                              Chart 3.1
                                    0= Does not develop anything in relation to this activity
                                    10= Employs many efforts in this activity
                  Customer Orientation
                                 Accomplished Activities
                                  Marketing                                                     Ranking 0 to 10

9. Transmits the needs and customers' ideas to those responsible for product                          9
   development.

10. Serve the same customers for a long period of time.                                               10

11. Sets a high standard of time for customer service, able to answer
    their questions, address their complaints and solve their problems very                           10
    quickly and satisfactorily.

12. Disclose favorable news about the company and "damage control" of
    unfavorable.                                                                                      9

13. Acts as an internal customer and an advocate of the public in
    order to improve the policies and practices of the company.                                       9


                                    Ranking:                                                              Chart 3.1
                                    0= Does not develop anything in relation to this activity
                                    10= Employs many efforts in this activity
               Customer Orientation
                            Accomplished Activities
                      Research & Development                                               Ranking 0 to 10

1. Be attentive to global innovations, through web and others.                                  10

2. Devotes time to meet with customers and hear their problems.                                 10

3. Accepts the involvement of marketing and production, among
   others, in each new project.                                                                 10

4. Tests and evaluates competitors' products.
                                                                                                10
5. Seeks to know the reactions of customers and asks for                                         9
   suggestions.

6. Improves and enhances continuously, the product based                                         9
   on market feedback.
                               Ranking:                                                              Chart 3.1
                               0= Does not develop anything in relation to this activity
                               10= Employs many efforts in this activity
                      Customer Orientation
                                       Accomplished Activities
                               Shopping and Production                                                   Ranking 0 to 10


1.   Stimulate innovation that continues in the suppliers, not letting them accommodate.                       10

2.   Proactively seeks the best suppliers, rather than choose only among those who seek                        9
     them.
3.   Seeking to reduce transaction costs of long relationships duration with a smaller                         10
     number of reliable suppliers and high quality.
                                                                                                               9
4.   Does not make concessions on quality to save on price.
5.   Invites customers to visit and learn about their company.                                                 3

6.   They are always striving to produce goods faster and / or a                                               7
     lower cost.
7.   Improve continuously the quality of the product, trying to                                                10
     achieve a zero rate of defects.
8.   Meet customer requirements "personalization, "when it                                                     10
     can be done profitably.
                                             Ranking:
                                             0= Does not develop anything in relation to this activity
                                                                                                                   Chart 3.1
                                             10= Employs many efforts in this activity
                        Customer Orientation
                                         Accomplished Activities
                                  Accounting & Finance                                                        Ranking 0 to 10


1.   Prepare, periodically, reports of "profitability" by product market segment,                                   9

     geographic areas (regions, sales territories), order size and individual clients.
2.   Prepare invoices appropriately to customer needs and answer their questions quickly
                                                                                                                    10
     and courteously.
3.   Understand and support the marketing investments (ex., institutional
                                                                                                                    10
     advertising) that produces preference and customer loyalty in the long term.
4.   Adequacy of the financial package of the financial needs of the customers.                                     8



5.   Take quick decisions about the client's ability to meet its financial commitments.                             6




                 Other employees that have contact with customers                                             Ranking 0 to 10
Competitive, caring, cheerful, reliable and responsive.                                                              10

                                                  Ranking:                                                               Chart 3.1
                                                  0= Does not develop anything in relation to this activity
                                                  10= Employs many efforts in this activity
3.2                         Direct and Indirect
                            Major Competitors
      Large companies with strong performance in domestic market

  •     Microsoft (computer software & handheld operating system)
  •     Hewlett Packard (computer manufacturer)
  •     Sony (computer manufacturer)
  •     Dell (computer manufacturer)
  •     Blackberry (cell phone manufacturer)
  •     HTC (cell phone manufacturer)
  •     Samsung (cell phone manufacturer)
  •     Nokia (cell phone manufacturer)

      Imitation Products                                      Retailers
      • Chinesse portable players                         •    Best Buy
      • Chinesse cell phones                              •    Micro Center
                                                          •    Walmart
                                                          •    Radio Shack
                                                          •    Amazon
3.3
      Information about the Competitor
                                  Survey Information on Competitor – Microsoft
 1. Market                                 4. Communication                                 7. Finance
 Considered a monopolistic in the          Increased communication                          Assets were valued at $41 billion in
 licensing of the software.                in various media channels associated             February 2011.
                                           with educational sponsorships, and
 2. Buyers                                 direct communication at the                      8. Administration
 A very common computer software           point of sales strengthening the                 Technological capacitated, innovative
 that is affordable to grand majority of   company’s brands.                                and stable company, self-sufficient
 social status.                                                                             productive, vertically integrated
                                           5. Distribution Channel                          operations control and a motivated
 3. Products, Services, Brands and         Individually distributed where it can be         team. High investments in research,
 Symbols                                   bought online at Microsoft stores or any of      and development.
                                           their online distributors, retail store, or
 Commercialization of computer
                                           Microsoft donation
 software with 5 divisions (Windows &
 Windows Live Division, Server and
                                           6. Sales Force
 Tools, Online Services Division,          Sales representatives, and distributors at
 Microsoft Business Division, and          the online Microsoft store or retailer stores.
 Entertainment and Devices Division).
 Products has brand awareness since
 1984 with continuous innovation.
 Brands: Windows and Office




                                                                                                                      Chart 3.2
3.4
      Description of Principal Competitors
                                    Microsoft                Blackberry
                              80% of the Market Share   Mayor Competitor in the
            Principal          in computer software.      cell phone Industry
          Characteristics




                                 Microsoft Original     Research In Motion Ltd.
         Principal Supplier
                              Equipment Manufacturer




             Principal         Computer & Software            Cell Phones
             Segment


                                                                                  Figure 3.3
Description of Principal Competitors
                            Microsoft               Blackberry




                      Sales representatives & Sales representatives &
      Sales Force &
                      distributors worldwide. distributors worldwide.
      Compensation



                      In 2002 formed a        Innovation of
                      strategic agreement     Operating System with
                      with High Tech          blackberry messenger,
                      Computer (HTC) a        which enables the user
       Strategic      smartphone              to send & receive
      Movememnts      manufacturer to         messages through data
                      distribute Windows      plan.
                      Mobile Operating
                      system.

                                                                        Figure 3.3
3.5    Comparison between the
      Company and its Competitor
           Evaluation Factors     Apple   Microsoft   Blackberry
                Quality            10         8           8
                 Style             10         8           8
                Brands             10        10          10
                 Cost              7         10           8
            Level of Price         7          9           8
              Publicity            7          7           7
            Personal Sales         10         7           9
             Promotion             8          8           6
           Advertisement           8          8           7
        Channel of Distribution    10        10          10
       Coverage of the Channels    10        10          10
             Localization          10        10          10
        Transportation System      8          8           8
            Effectiveness          10       10           10
              Efficiency           10       10           10
         Capacity Utilization      9         9            9
                TOTAL             144       142          138       Chart 3.3
3.6                Classification of Company’s
                             Resources
                                    Relevant                                                    Evaluation of the
      Tangible Resources                                             Key Indicators
                                  Characteristics                                                  Company
                             Estimated every 20 days their     •    Equity                             9
                             inventory is turned in to cash.   •    Cash Flow                          9
       Financial Resources   This is a very high inventory     •    Tax Credit                         6
                             turn over.


                                                               Market value of fixed assets.           8
                             Has their production in China
                             with low cost and now             Depreciation of
                             expanded their production also    equipment.
                             to Brazil.                                                                9
                                                               Scale production of the
                             Important Notes:                  factories.
       Physical Resources                                                                              9
                             Know how on software &            Flexibilities of fixed assets.
                             design plus chip.
                             Size, location, hi-tech           Use of strategic alliances in           9
                             equipment.                        production.
                                                                                                       10




                                                                                                            Chart 3.4
         Classification of Company’s
                   Resources
 Intangible                                                                                 Evaluation of the
                  Relevant Characteristics                      Key Indicators
 Resources                                                                                     Company
                                                        •   Number of patents (563)                10
                Intellectual property,
                portfolio of patents,
Technological   copyrights, trade secrets.
  Resources     Research & Development in               •   Percentage of their Operating
                                                            Income in R&D (34%)                    10



                Brand reputation among                  •   Brand recognition                      10
                consumers.
                Company's reputation for                •   Brand value                            10
                relation to quantity and
                reliability of their                    •   Percentage of repeating                 9
                products and services.                      purchases
 Reputation     Reputation with
                providers, agencies                     •   Objective measures of                  9
                government, banks and the                   performance products
                Community.                                  comparative research on the
                                                            reputation of the
                                                            organization.
                Values​​, traditions and social norms   •   Organizational Climate                 10
  Culture

                                                                                                        Chart 3.4
           Classification of Company’s
                     Resources
                                                                                             Evaluation of the
Human Resource     Relevant Characteristics                        Key Indicators
                                                                                                Company

                 Education, training and                    Educational qualifications,             10
                 experience of employees.                   technical and professional
                 Skills available to the company.           employees.

                 Adaptability of employees                  Remuneration for the                    10
                 and contribution to the flexibility of     industry.
                 organizational strategy.
                                                                                                    2
                 Collaborative and social skills of offic   Percentage of days
      RH         ials determine the company's ability       lost with the suspension of
                 to transform human                         work or industrial disputes.
                 resources in organizational                                                        10
                 capabilities.                              Way they talk, admire and have
                                                            affection for the company.
                 Commitment and loyalty of
                 officials determine the company's          Employees with pay consistent
                 ability to achieve and maintain a          with the market                         10
                 competitive advantage.



                 Innovation of products, process and        Advances in R&D.                        10
   Creativity    form of work.                              Number of innovative launches           10


                                                                                                         Chart 3.4
3.7
        Analysis Critical Factors for Success
                                                Prerequisites for the success of
                                                        the company

            Who does the client want?                                   How does the company succeeds the
                                                                                   competition?
                Analysis of Demand

      The clients are in search of high quality                            Analysis of Competitors
      product that offers comfortability
      matching       the      expectation    of
      differentiation in design and style.                        Competitive advantage is very important
                                                                  where      it    involves   innovation      and
                                                                  differentiation on the products. Their is being
                                                                  high investment in R&D to match the
                                                                  consumers’ needs and create desire and needs
                                                                  to them. In addition, creating hi-tech,
                    Critical Factors For Success                  designing product at an approachable price.
                  •Innovation in design & raw materials
                    •Differentiation in style & models
                                  •Value
                      •Customer Service Excellence



                                                                                                          Figure 3.6
3.8   Comparison and Ponderation of
        Critical Factors of Success
       Critical Factors of
                             Weight   Apple   Grade   Microsoft Grade Blackberry Grade
             Sucess

            Quality           30       10     300        8      300       8      240

            Design            20       10     200        8      160       8      160

             Brand            15       10     150        10     150      10      150

             Price            10       7       70        10     100       8       80

      Distribution Channel
                              10       10     100        10     100      10      100


         Post-Behavior        15       10     150        8      120       8      120

             Total            100             970
                                               970              930              850


                                                                                       Chart 3.5
3.9                                              Consolidation
                                                                             Actions & Projects

                          Large Scale of Production
                          Up-to-Date Technology with efficient  1. The prices of “Apple products” may
      Strong Points




                          machinery                                not be reduced so much because
                          Creative Design with well known brand    their product represents quality and
                          Top leader Research & Development        efficiency with top rated customer
                          Marketing 3.0                            service.
                          Excellent Post-Behavior               2. The United States customer service
                                                                     must offer bilingual service, it can
      Points to Improve




                                                                     not just offer english speaking
                                                                     service.
                          Expand their market in Retail Stores    3. The Research & Development must
                          especially Latin America                   expand their institution considering
                                                                     MIT and other centers in the world.


                                                                                                  Figure 3.7
      Chapter 4
Establishing the Objectives




                                                               Source:
           http://www.geekpedia.com/icon58_Ruler-Pencil-and-Paper.html
4.1   Objective of Strategic Planning of
          Marketing Management
  • Continue their leading innovation and designs in the markets
    consumer electronics, computer software, and personal computers.

  • Reaching the final consumer through a direct channel of
    communication, were the client is well informed & instructed on the
    beneficial usage of their product.

  • Expand their market expansion to South America on behalf of their
    retail stores at a strategic location.
   Objective of Strategic Planning of
       Marketing Management
• Increase the market share of the U.S and U.K. aiming at a 7% in the
  computer market plus the PDA/Phone market at least 2% with the
  launch of iPhone 4 and iPad 2.

• Extend on the Apple brand name and link to the established
  meaningful positioning.

• Enlarge on Apples image of innovation, quality, and value.

• Measure the awareness and response in order to make adjustments to
  the marketing campaigns as necessary.
  Objective of Strategic Planning of
      Marketing Management
      Criteria                   2011            2012                 2013                2014


     Revenue               $97,837.50         $ 111,966.02         $137,718.21         $192,805.48



    NET PROFIT             $23,121 .45         $31,117.04          $51.654.28          $87,812.27



   Sales Margin                  24%              28%                 38%                  46%

Financial data in U.S. Dollars                                                              Chart 4.2
Values in Millions




                                                                                                        Source:
                         http://www.workitmom.com/bloggers/corneredoffice/category/like-talking-but-with-more-
                                                                           typing/page/3/?wpvar=1&wpvar=1
           Chapter 5
Strategies for Achieving the Goals




                                                                            Source:
        http://www.psychologytoday.com/blog/dont-delay/200902/approaching-success-
                                       avoiding-the-undesired-does-goal-type-matter
5.1

           Generic Business Strategies
      • The generic strategy implemented by Apple is Diversification

      • Focus on brand management and creation of a strong Brand
        Equity

      • The value creation is the main strength

      • The great quality and brand image makes customers less price
        sensitive

      • Thanks to innovation in their products, they have very few
        competitors at the same level
5.2
             Matrix of Strategic Alternatives
            Leadership sought by the                         Advantages of this alternative strategy
                company today
•     Leadership based on innovation and           •          The strengthening of the brand allows
      differentiation                                         entry into new markets.
•     Pioneers and leading brand                   •          Innovation creates new needs for
•     Perceived value for customers: less price               consumers and therefore wishes to obtain a
      sensitive, more quality interested                      product.
•     Best-known products (iPod, iPhone, Mac Book) •          The added value perceived by customers is
                                                              an excellent word of mouth (recommendation).
      What is the best alternative today ?                   Why the first alternative is not viable ?
     Apple must maintain their same philosophy of             In this case, the first alternative is viable because
      being leaders in research & development to               Apple is one of the top leaders in each of their
    maintain their leadership for their growth in the       segments. In this case, they must be sustainable with
     market. In addition, penetrate strongly on the                    their strategies and keep growing.
               operating system for Mac.
           New alternative in 5 years                           Advantage of the future alternative
•     Acquisition of small competitors around the       •     Increase the market share
      world                                             •     More authorized retailer stores around the world
                                                        •     Better distribution channels
                                                                                                          Chart 5.2
5.3
               Matrix of Segmentation

  T
  a     Big
  r
  g
  e
  t   Medium

  M
  a
  r    Small
  k
  e
  t
                    High     Medium   Low


                           Return           Figure 5.3
5.4
                       Options of Differentiation
       Type of
                                      Concept                                             Ideas
      Strategies

                                                                    •   Product innovation and product line
      Products/    Features of the products they do best in             extension
       Quality     terms of reliability, durability and performance •   Using the best raw materials to ensure
                                                                        the best quality products


                                                                    •   Attractive and distinguishable packages,
                   Offer something really different and unique.         that calls all customers attention
       Design      Include: design, production, visual symbols and•     Unique products with a distinct design
                   brand identification                           •     Brand identification based on product
                                                                        design



                   An image is created for the product and are•         Deliver the company’s image to consumers in a
                   those differences in a product that does             special way so that Apple is perceived as a
       Image       not involve enhancing of performance in an           company that gives technology, simplicity and
                   intrinsic way                                        innovation through all of its products


                                                                                                                 Chart 5.4
        Options of Differentiation
  Type of
                                  Concept                                               Ideas
 Strategies

                                                                   •   Intensify distribution and authorized
              It is the basis of a parallel differentiation of the     retailers stores around the world
              product,      a     based      support     services.•    Sales staff willing to help, well trained and
 Services     Basis for reaching other substantial form of             with personality that match the company’s
              differentiation: support and services                    profile (Ex. Attend using an Apple product)
                                                                   •   Stands for demonstration of products.




                                                          •            Training sales staff in all the stores, where
              By hiring and training the people better so              the products are sold, creating brand equity
              they are more qualified than their
              competitors.                                •            Support and trained people for technological
  Talent                                                               events
Management                                                    •        Encourage sales staff to emphasize on the
              This way they improve the characteristics of             brand when they are selling
              competence, courtesy, credibility, reliability,
              responsibility and communication.               •        Search for innovative and creative
                                                                       professionals


                                                                                                            Chart 5.4
5.5

                   Market Positioning

      Without a doubt Apple is …


                        THE MARKET LEADER


                    •   Excellent offer
        WHY ?       •   Recognition
                    •   Superior distribution
                    •   Resources
                    •   Competition relatively weak                                Source:
                                                      http://www.nqlogic.com/2010/01/ipa
                                                       d-or-apples-ultimate-connected.html
5.6

                  Type of Growth




      Intensive         Integrated                        Diversified




                                                                                        Source:
                    http://www.blahblahtech.com/2008/07/apples-benign-digital-dictatorship.html
5.6.1
                           Strategies for Growth
   Type of Strategy for
                               How can it be achieved?                                 Ideas
         growth
                           •   Stimulate current consumers to
                               buy larger quantities               •   Increased the authorized retailer stores to
          Increased        •   Making communications and               be closer to the customers
                               disseminating the benefits of the   •   For those technology-lovers, show details
        participation in       products                                of the innovation and benefits of the
        today's market     •   Attract consumers from                  products.
                           •   competitors                         •   Increased advertising
                           •   Convert non-users into users

                           •   New markets for existing            •   International expansion
                               products
                                                                   •   Development of new products
                           •   New groups of potential
                               customers in its area of            •   Strengthening the communication
          Developing           operation                               channels and image abroad.
         new markets       •    Distribution channels in its       •   Allow testing experience when
                               current markets                     •   customers are in store
                           •   Expansion of operation to other
                               regions

                                                                                                        Chart 5.6
                       Strategies for Growth
Type of Strategy for
                           How can it be achieved?                               Ideas
      growth
                                                              •   Greater diversification of models
                       •   New products for current markets   •   New accessories products. Ex: screen
     Product           •   Different models                       savers, computer bags, cases for cell
   Development         •   Different quality levels               phone, and chargers
                       •   Innovations                        •   New value association for the products
                                                                  (pioneers and environmental friendly)

   Concentric                                                 •   Creation of a complete line of
                       •   New products or opportunities
  Diversification                                                 accessories for all products
                       •   Synergies in marketing and
                                                              •   Focus on a new market, segmented by
                           technology with current products
                                                                  age. Ex: Kids (Future loyal buyers)

                       •   New and different products that
                       •    meet the same segment of          •   Development and Diversification of the
   Horizontal          •   current consumers                      variety of products, entering other
                                                                  markets
  Diversification      •   Products are not technologically
                       •   related to the current product     •   New line of television products
                           lines

                                                                                                   Chart 5.6
                       Strategies for Growth
Type of Strategy for
                           How can be achieved?                                       Ideas
      growth
                                                                  •   Entry into new markets, especially of
                                                                      accessories products
  Conglomerate         New businesses that are not
                                                                  •   Business expansion taking advantage of
                       related to its technology,
  Diversification                                                     the raw materials and know-how
                       products and current markets
                                                                  •   Design and produce their own package in
                                                                      an innovative way
      Vertical
                       The company acquires a supplier as a       •   Acquire one of the suppliers factory on
 Integration going     growth strategy                                China
       back
                                                                  •   Expansion of authorized retailer stores
                                                                  •   License around the world to the sale of
Vertical Integration   Acquisition of distributor as a strategy       their products
  going Forward        to go forward in the chain.                •   Create a “experimental store” where
                                                                      customers go and learn how to use the
                                                                      products

                                                                  •   Purchase small competitors around the
     Horizontal
                       Purchase of competitors                        world to create new factories and have
    Integration                                                       different place of productions

                                                                                                        Chart 5.6
5.7
               Motives for Differentiation
      Reason to seek
                          How it can be done, or what are   Alternatives for obtaining
      a diversification
                            the incentives in search of?  benefits without diversification
          strategy

                          •   Attract the most qualified, creative,
       Management             forward thinking and innovate              •   Focus     on     achieving      higher
         Issues               employees and executives, to give              status and salary level
                              them big challenges


                                                                         •   Shareholders can diversify their
                          •   Diversification of product line                portfolio of shares in other
      Risk Reduction      •   Diversification of market segments             companies
                          •   Diversification of distribution channels   •   Resources     may be     cheaper
                                                                             in another source


                          •   Launching     new  products    with
                                                                         •   Search larger market scale and
        Profitability         high     returns  (New     business
                                                                             greater profitability
                              attractiveness)

                                                                                                          Chart 5.7
        Motives for Differentiation
Reason to seek
                    How it can be done, or what are   Alternatives for obtaining
a diversification
                      the incentives in search of?  benefits without diversification
    strategy
                                                             •   Contracts, Joint Ventures,
                                                                 Licensing, Strategic
                                                                 Alliances and Franchising can
                    •   Increase the purchase made by the
 Market power           company
                                                                 provide these benefits

                                                             •   Opt for cooperative activities
                                                                 and associations
                                                             •   Contracts, Joint Ventures, Licensing,
                                                                 Strategic Alliances and
                    •   Share research costs (firms in
                                                                 Franchising can provide these
                        other industries)
Economy of scope    •   Share distribution centers
                                                                 benefits
                        (improves negotiation channels)
                                                             •   Opt for cooperative activities
                                                                 and associations

                                                             •   Outsourcing of services that are
Synergy between     •   Conduct joint strategic management
                                                                 not related to value-generating
  business units        for all business units
                                                                 activities of the brand

                                                                                             Chart 5.7
5.8
                        Matrix BCG
           iPod                       *MacBook



                    iPhone

               iPad




      *Note: MacBook was one of the question mark of Apple, but thanks
                 to investment it is now turning into a start                    Figure 5.4
                                                                                    Source:
                                                http://www.maxi-pedia.com/BCG+matrix+model
5.9
                                 Matrix of Market Attractiveness
                                                       COMPETITIVE POSITION
                                             High                 Medium                   Low
                                       Protect the position     Invest to grow        Grow selectively
      MARKET ATTRACTIVENESS



                                             iPod                MacBook
                              High




                                        Grow selectively         Selectivity /      Limited expansion or
                              Medium




                                           iPhone               Focus on profit         deceleration

                                             iPad
                                       Protect and refocus    Protect and refocus        Abandon
                              Low




                                                                                                 Figure 5.5
                                                              GR/McKinsey
5.10     Actions for Creating and Sustaining
              Competitive Advantage
   Ways of creating
                               How to create and sustain that advantage in your business?
 competitive advantage
                          •   Combine the experience curve with company’s technology to increased productivity
 Take advantage of the
                          •   Using more contact with clients
   experience curve
                          •   Create Brand Awareness
       Create network     •   Great events when launching a new product
         externality      •   Associate products with important people of the technology world
                          •   Promote the brand as a pioneer, focusing on innovation
   Create reputation      •   Improve sales staff and distribution channels
         Create legal     •   Search for new products with patents
                          •   Register product designs, brands, logos, and software
         restrictions
                          •   Maintain good relationships with suppliers and long-term relationships
       Create superior    •   Association with others to ensure a presence in distribution channels
          approach        •   Greater control of suppliers

   Create economies       •   Focus heavily on product innovation creating barriers to entry for new competitors
        of scale
                          •   Show customers how simple is to use your product and how complicated is the one
       Create customer
                              of your competitor.
        switching costs   •   Show your strengths                                                Chart 5.8
             Chapter 6
              Decisions of
Products, Services, Brands and Packages




                                            Source:
                                      www.apple.com
6.1
                   Product Decisions
      • Apple’s benefit of why consumer should choose
        their product:

        ― Apple position its products in high standard
          quality with innovating design and functions

        ― Offers international warranty with renewal of
          gap coverage

        ― Provides consumers with personalized technical
          support
6.2
                              Product Analysis
          Performance                                         Satisfaction

            Features          Initiates innovating products with efficient functions

         Characteristics      High quality processor , high speed network, sustainable battery life and
                              the best software applications for consumers.

           Reliability        100% international warranty covering hardware & software and
                              personalized technical support
         Comfortability       Light weight product that fits in a small bag and pocket devices.

           Durability         Lifetime products with extended warranty for any defects.
            Services          Personalized technical support in repairing the device or teaching the
                              consumer how to operate the device.

             Design           Innovating pocket devices that is very appealing to the consumers as a
                              luxury product.
      Perception of Quality   Creation of brand image of being a sophisticated brand with the best
                              quality standards in design and function

                                                                                                        Source:
                                                                                                  Garvin (1987)
6.3
         Decisions on the Product Line
      • Apple covers the sectors:
        – Portable Computer & Desktop
        – Portable Music Device
        – Portable Mobile Phone
        – Television
      • Strategy over the products
        – Satisfies consumers’ needs and desires and also
          creating new necessity to the consumers
6.3.1
         Analysis of the Products’ Line
             Product      Volume(u)           Sales        Gross margin       Gross profit
         5 Macbook         8.000.000   $ 2.400.000.000,00          20%    $     480.000.000,00
         6     Imac       10.000.000   $ 5.000.000.000,00          25%    $   1.250.000.000,00
         4 Mac mini        1.500.000   $     75.000.000,00         20%    $      15.000.000,00
         3 Mac pro         1.000.000   $     50.000.000,00         20%    $      10.000.000,00
         1 Mac OS X        1.000.000   $     40.000.000,00         15%    $       6.000.000,00
         2 Ipod Shuffle    3.000.000   $     90.000.000,00         17%    $      15.300.000,00
         9 Ipod Nano       7.000.000   $ 350.000.000,00            28%    $      98.000.000,00
         7 Ipod Classic    4.000.000   $ 240.000.000,00            25%    $      60.000.000,00
         8 Ipod touch      5.000.000   $ 200.000.000,00            27%    $      54.000.000,00
        10 Apple TV        1.000.000   $ 100.000.000,00            30%    $      30.000.000,00
        12 Iphone         16.500.000   $ 2.475.000.000,00          35%    $     866.250.000,00
        11     Ipad       10.500.000   $ 2.100.000.000,00          30%    $     630.000.000,00
              TOTAL       68.500.000   $ 13.120.000.000,00                $   3.514.550.000,00
                                                                                     Figure 6.1
6.3.2
        Analysis of the Products’ Line II
                    ABC Curve - Volume




                                         Figure 6.2
Analysis of the Products’ Line II
               ABC Curve - Sales




                                   Figure 6.2
Analysis of Product Line II
         ABC Curve – Gross Profit




                                    Figure 6.2
6.4
                                Product Comparison
           20.000.000

                                                                                                 11
           15.000.000



           10.000.000                     2                                                 12; 10.500.000
      Volume




                                      1
                                                                          7
               5.000.000                                                               9
                                                                              8
                                                                  6
                                                  3   4       5                            10
                       0
                -2          0     2           4           6           8           10        12          14

               -5.000.000
                                                      Margem

                                                                                                 Figure 6.3
6.5
                Products’ Life Cycle

  S
  a
  l
  e
  s

  V
  o
  l
  u
  m
  e




                                                         Period
      Introduction   Growth   Maturity   Decline
                                            Figure 6.4
                                                            Source:
                                               http://www.apple.com
6.6
             Development of New Products
• Increase Apple’s product line by developing an “interactive television”
  with Internet access and alongside features of accessories:
        printers, keyboards, speakers, headphone
      Products     Market Size   Contribution    Access     Number of    Investment      Total
                                   Margin       Channels   Competitors     Needed
      Television       8              5            6            8            9             74

       Printer         5              4            9            8            6             69

       Mouse           3              1            7            6            2             42

      Keyboard         2              1            7            5            2            39.5

      Headphone        3              2            7            4            2             41

       Speaker         4              2            7            4            2             43



       Weight          2              2            3           15            2
                                                                                            Source:
                                                                                  Marcos Fava Neves
6.6.1
                Apple’s Launch in 2011
  iMac Line
  • The product now features next generation processors, faster graphics
    and the Thunderbolt port
  • Offers quad-core Intel Core i5 processors or optional Core i7
    processors
  • Faster AMD Radeon HD graphics processors and a new built-in
    FaceTime HD camera for video calls

  iPad 2
  • High speed network with new expandable flash memory
  • All new-design with a third of an inch thick, down from a half, and a
     barely-noticeable smidge shorter and narrower
  • Built in camera offers HD video recording at 720p, up to 30 frames per
     second, with 960x720/72dpi
6.7
        Principal Brand Decisions
      Decision about the Brand              Action from Apple


           Trademark use         Apple has created the name brand for
                                 their electronic devices with the image of
                                 high quality standard and legal protection
                                 on their genuine operating system.


         Brand Sponsorship       Does not use brand sponsorship.

            Name Used            Global Brand
           Brand Strategy        Apple uses the strategy to extend product
                                 lines and the introduction of new
                                 versions of their products.

        Brand Repositioning      High quality standard products and
                                 always innovating new functions every six
                                 months
                                                                    Chart 6.1
6.8
        Amplitude of Packaging and Ideas
           Dimensions                 Function                          Improvement Points

      Primary Functions   •   Contain                         Innovating design that is attracting to
                          •   Protect                         the consumer but also protective for
                          •   Transport                       the device.

      Technological       •   Product Preservation            Investigate for packaging alternatives,
                          •   Conditioning System             since the main raw material used in
                          •   New Material                    making plastic comes from oil.

      Marketing           •   Attractive to the consumer      Reduce their cost in packaging raw
                          •   Transmit Information            materials to reduce their pollution.
                          •   Override the pricing obstacle

      Sociocultural       •   Culture expression through      More      participation       in    social
                              the development of              responsibility activities like foundation
                              countries                       for education and homeless people.

      Environment         •   Urban waste                     Showing that the company is concerned
                          •   Recycling                       about the recycling of the packaging of
                                                              their products.

                                                                                              Chart 6.2
6.9   Collective Actions for the Brands
      Products, Services, & Packaging
                     Actions                         Ideas for Apple

      The same structure for packaging Partnering     with     a    company
      development                      specialized in packing to reduce their
                                       cost.



      Sharing Infrastructure services     Partnering with a company in the
                                          same sector to offer effective service
                                          in the distribution channel




                                                                       Chart 6.3
      Chapter 7
Decisions in Communication




                                                                    Source:
           http://rockiesmarketing.com/marketing-education/differences-in-
            effectiveness-of-direct-marketing-and-marketing-via-mass-media
7.1

             Apple’s Development of
                Communication
      • Satisfying the consumers’ need, but instantly
        creating the desire for the product

      • Strategies for Communication
         — Built in Advertisement
         — Brand Awareness
         — Brand Positioning
7.2
          Identification of Target Audience
            and Communication Actions
       Target    Priority          Objectives of message             Message             Tools
      Audience

      Children   Average    Arouse desire for the children to ask Apple also       Built in
                            their parents to purchase the item for does      not   Advertisement in
                            them.                                  grow up by      cartoons, movies
                                                                   itself, Apple   and TV series.
                                                                   is for kids,
                                                                   also.
       Youth      High      Show that the day is easier and more Be Tuned all      Internet shopping,
                            fun with the products.               Day     with      social network
                                                                 friends, and      pages, built in
                                                                 the social        advertisement in
                                                                 network.          movies and
                                                                                   commercials.
                                                                                            Chart 7.1
   Identification of Target Audience
     and Communication Actions
 Target    Priority          Objectives of message              Message                   Tools
Audience
 Adults     High      Facilitates the work activities.      Time is costful, use   Advertising in media
                                                            it wisely.             businesses and
                                                                                   billboards.

 Seniors     Low      Show the children and grandchildren   Maintain               Advertising in prime
                      are using                             communication          time
                                                            with all family
                                                            members        and
                                                            enjoy your day




                                                                                              Chart 7.1
7.3      Objective of Communication
      • Reaching each product line to its target audience

      • Associating the brand image of high quality
        products

      • Increasing demand at least for their products
        through the consumer's desire

      • Associate the brand with high technology
7.4
            Principal Communication Tools

                          Sales                                            Direct
      Advertisement                   Public Relations   Personal Sales
                       Promotion                                          Marketing



  •    TV
  •    Internet       • Contests      • Events for       • Presentation
                                                                        • Electronic
  •    Commercials    • Fair shows      product          • Lobbying
                                                                          sales
  •    Movies         • Exhibitions     Presentation     • Exhibitions
  •    Catalogs


                                                                               Chart 7.4
7.5
                       Tools for Sales Promotion
       Focused for           Focused for Sales          Focused for          Focused for Final
      Intermediates               Force              Industrial Market          Consumer



  •   Rebates            •    Contests           •    Catalogs           •    Rewards
  •   Anticipated        •    Catalogs           •    Fair shows         •    Contests
      purchase           •    Rewards            •    Seminars           •    Fidelity Program
  •   Special Offers                             •    House Parties      •    Indirect Discounts
  •   Exhibitions
  •   Contests




                                                                                          Chart 7.5
7.6
      Methods for Communication Budget
                 Method                    Possible Advantages           Possible Disadvantages

                                                                      Ignores the role of
                                                                      promotion on sales volume.
           Available Resources      Simplicity
                                                                      Hampers the long-term
                                                                      planning
                                    Expenses are related to the
                                    turnover.                           Circular reasoning
           Percentage of Sales      Relationship between cost of        Does not consider market
                                    promotion, selling price and profit opportunities
                                    per unit
                                                                      Reputation, resources,
                                    Peace of mind
         According to competition                                     opportunities and objectives
                                    that will not "lose ground"
                                                                      are different
                                    • Allows the exercise
                                                                      It is more complex because
                                    •Allows to think and create
           Objective Vs. Task                                         it requires making the
                                    • Force to record data
                                                                      whole process
                                    •create business intelligence
                                                                                          Chart 7.6
      Note: The method applied by Apple to determine the communication budget is
      Objective Vs. Task. A great way to develop it strategies
7.6.1
        Layout of Communication Budget
                   Jan. - March    April - June    July – Sept.    Oct. – Dec.       Total
                       2011          2011             2011           2011

  Advertisement    $200.000.000    $200.000.000    $200.000.000    $200.000.000   $800.000.000


       Sales       $100.000.000    $100.000.000    $100.000.000    $100.000.000   $400.000.000
    Promotion

     Public        $100.000.000    $100.500.000    $100.500.000    $100.500.000   $401.500.000
    Relations

  Personal Sales   $100.000.000    $100.000.000    $100.000.000    $100.000.000   $400.000.000


     Direct        $25.000.000     $25.000.000     $25.000.000     $25.000.000    $100.000.000
    Marketing



  Grand Total       $525.000.000    $525.000.000    $525.000.000    $525.000.000 $2.101.500.000
                                                                                       Figure 7.2
7.7
                       Opportunities for
                      Collectives Actions
                  Action                             Opportunity for Apple

            Joint Advertisement           Create key alliances with mobile operators for
                                          the packaging of mobile services.


           Joint Sales Promotion          In key retail stores and even their own retail
                                          stores, certain time of year give out a limited
                                          buy one and get one free bundle.

      Joint Participation in Fair Shows   Smart alliances with businesses like banks, and
                                          insurance companies to continue the
                                          progression of built in advertisements.


                                                                                Chart 7.7
         Chapter 8
Decisions of Channel Distribution




                                                                         Source:
             http://www.cultofmac.com/the-best-little-apple-store-in-texas/7493
8.1
     Understanding the Flow of
  Marketing and Channel Distribution
                    Producers &            Physical                       Distribution Network                   Physical
                    Processors            Possession                                                            Possession
                       Design                                                                 Authorized
                                          Property                                             Retailers        Property
                                                              NA Wholesaler
              Producers of processors     Promotion                                                             Promotion
                                                                                                                                        FINAL
                                                                                              Direct Sales
                Producers of Chips        Negotiation                                                           Negotiation           CONSUMERS
                                                                                              apple.com
                                                              LA Wholesaler
               Producers of Batteries     Information                                                           Information
                                                                                            Apple call center                          Industrials
              Producers of the Screen     Financing                                                             Financing                 Home
                                                                   Europe
              Producers of Connectors         Risk                Wholesaler                  Own Stores           Risk

                       Cables                Order                                                                Order
                                                             Asia
                                                             Wholesaler                        Web Sales         Payment
                    Assemblers              Payment
                                            Service                                                              Service
                          A

             Company                         First Intermediate                          Second Intermediate                  Final Consumer or User

                                        Wholesalers around the world                             Retailers                              Home
                                                                                               Sites of sales                         Industrial
                                                                                                Own stores
  “The captain of the channel”

                                                                                                                              •   Pioneers & followers of
         •   Innovation                                           •   Strong Relationship                                         trends
                                                                      •   Direct Sales                                        •   Satisfaction

                                                                                                                                            Figure 8.1
8.2
       Impacts on Distribution Channels
         Trends           Implications for channels               Possible actions

                      Difficulty of the exportation      Be aware of possible behavioral
  Political & Legal   process                            changes

                      Difficulty of production process   Creation of factories in emerging
       Economical                                        countries. Example: Brazil

                      Lose competitiveness with          Creation of factories
                      difficult access to different
      SocioCultural
                      markets

                      Lose competitiveness with          Creating partnerships with
                      difficult access to products and   universities, and invest in
      Technological
                      services                           new technology

                                                                                       Chart 8.2
8.3
            Environmental Analysis
Focus: Identification of impacts of networks for current channels
8.4
          Objectives of the
  Company with Distribution Channels
      •   Apple Store (Direct Sales):
           – High profit margin in its own distribution channel.

      •   Retailers:
           – It works as a direct place where customers have great sensory experience and
              knowledge of the products.

      •   Shopping Center:
           – They will have to invest in services and entertainment, things that motivate
             people to leave home and go buy.

      •   Other distribution channels:
           – They must add value to their services and specialize in order to achieve
             expected sales.
8.5    Analysis of the Consumers’ needs
        related to Distribution Channels
                                                  Excellent! Now I can buy Apple
                  What do you think about the     products with more security and
                  Apple Online Store in Brazil?   with an accessible price
                                                  The price is still high! I do not buy
                                                  any Apple products, until they go
                   8%
            11%                                   down

                                      42%         Normal, but I do not use it
      15%

                                                  Good, but I prefer to buy in other web
                  24%                             sites. It is more economic

                                                  I am just going to buy here, to be
                                                  able to personalize my iPod with free
                                                  laser engraving

                                                                                     Source:
                                                                   http://www.ipodschool.com
8.6
             Selection’s criteria for
       Distribution Channels’ Members
       Selection Criteria                           Apple Store – Direct Sales
      Financial Conditions   Guarantees and safe credits because it belongs to the brand
          Sales Staff        Specialized, trained and prepared
      Sales Performance      Turnover USD $ 3 billion (20% of sales)
         Product Lines       Every product lines are exclusive
          Reputation         Reflect the brands’ personality
       Market Coverage       Restricted in some localities and countries, but it is rising
           Attitudes         Ability to persuade due to the differentiation their products
              Size           Restricted to the ability of sales
          Experience         Differentiation by sensory and emotional experience
      Managerial factors     Even with high operating costs, Apple continues to invest
       Support services      Strictly organized and directed
      Market Information     Available at Apple stores
           Structure         At strategic points of sale
         Coordination        Direct marketing oriented to service’s innovation
            Control          Total control. Retail margins
                                                                                             Chart 8.3
8.7      Activities for Build Contracts
                          Products + Services + Communication

                         Apple Company               Intermediaries               Final Consumer
                     •   Produce                 •   Deliver to consumers     •   Buys regularity
                     •   Delivers to             •   Add information          •   Communicate with
                         intermediates               material                     others consumers
                     •   Discloses the Brand     •   Communicate the
       Activities        name                        main attributes of the
                     •   Define distribution         products to final
                         policies                    consumers

                     •   Prepare contracts       •   Give terms of            •   Payments of the
                     •   Evaluate and give           payments                     purchases
                         credits and terms of    •   Review the policies of
      Transactions       payments                    the commercial
                                                     actions

                     •   Development of          •   Provides distribution    •   Keep contact with the
                         trainings                   structure                    company
                     •   Promotional actions     •   Areas and                •   Demonstrate
                     •   Establish the targets       establishing sales           expectations
      Relationship       markets and areas           goals                    •   Suggest the company to
                                                 •   Implement Actions            known people
                                                                              •   Take advantage of the
                                                                                  promotional actions
                              Information + Orders + Payments
                                                                                                Figure 8.2
8.8
      Managment of Distribution Channel
                     Case: Mobimax
      • "Apple chose us because we are specialize in
        serving the retail, and also we are the only channel
        partner specializing in automotive. Also, because
        there is a great synergy between our products with
        those from Apple and the excellent results achieved
        recently     in    the     partnership   Mobimax,”
        said the General Director of Mobimax, Mario
        W.Okuno.

                                                                       Source:
                                          http://www.conectecomunicacao.com.br
8.9
      Collectives Actions in Distribution
  • Initially, this strategy Mobimax invested around
    £ 1.5 million to distribute approximately
    150 points of sale throughout the country.
  • It is expected to be marketed more
    than 1,500 pieces per month.
  • The Mobimax has outsourced all of the
    storage and logistics to meet quickly and
    securely across Brazil.

                                                                 Source:
                                    http://www.conectecomunicacao.com.br
8.10                    Network Approach in
                        Distribution Channels
       Reasons to use the network approach and
                                                                           Ideas
       collective actions in distribution channels

                                                         Apple could turn more attractive the
                                                         distribution      channels    offering
       Strengthening the channels of a single company
                                                         complementary products such as screen
                                                         protectors, and covers
                                                         Certain brands targeted at large retail
                                                         stores can be distributed along with the
       Gains from economies of scale to better           competition.
       exploit the assets of the distribution function
                                                         Distribution to stores and brands with
                                                         higher value should be individually.
                                                         Apple can meet its channels to achieve
                                                         brand awareness events in conjunction
                                                         with companies in different segments.
       Joint events
                                                         Ex: New Product Launching         Chart 8.8
                                                                                            Chart 8.8
    Chapter 9
Decisions in Sales Force




                                                                  Source:
          http://llmiqvyn.blogspot.com/2011/05/effectiveness-at-work.html
9.1
           Apple’s Business Strategy of
            Marketing and Sales Force
      • Apple’s overall strategy is directed towards product
        differentiation and innovation.
      • Sole focus on the target market of medium-high class.
      • Recommendation in relation to the sales force:
         – Hiring quality staff
         – Special dedication to the evaluation & performance of the
           staff
         – Expertise in operations and opportunities associated with
           the target market
9.2
        Porter’s Strategy and Implication
         for Sales Force applied in Apple
                                   Strategy                Implication in the Sales Forces
           Cost         • Market participation in       • Reducing Cost
                          middle and high class         • High turnover of sales
      Differentiation   • Personalized service with one • Exclusive Training
                          to one attention              • Special Reward Program
                        • One of a kind brand with      • Excellent pay in exchange for
                          high quality standards,         high quality sales effort
                          attractive designs and
                          appealing functions


          Niche         • Selected target market        • Expertise in positioning
                          represents 20% of Apple’s       themselves as price and market
                          sales                           leaders
                                                                                     Chart 9.1
9.3
          Establishing the Segments and
            Focus on the Performance
 S                                Apple’s Positioning
 a
 l
 e    H
 s    I
      G
      H
 O
 p                Key Accounts                             Breaking Beliefs
 p
 o    L
 r    O
 t    W
 u             “Keep them Happy”                        “Leave the door open”
 n
 i
 t
 y         High Customer Participation              Low Customer Participation
                    CLIENTE                                  CLIENTE
                                                                                 Figure 9.1
9.4
      Analysis of the Performance
          of Apple’s Product




                                               Source:
                             http://pt.wikinoticia.com
9.5
                   Efficiency and Effectiveness in
                   the Communication Methods
  Low Cost per                                          Publicity
  exposure by
    customer
                                        Institutional


      Efficiency        Navigation


                                     Effectiveness
                                                         High Sales
                                                        per exposure
                                                        by customer

                                                             Figure 9.3
9.5.1
        Analysis of the Communication
                    Method




                                                    Source:
                            http://reflexoesdigitais.com.br
9.6
                   Principal Decisions and
                 Description of Apple’s sales
  Decisions of the Organization                            Description of the Decision
                                     •   Currently, each representative has goals, and for every goal met
 1. Determination      of    sales
                                         there is a reward. Apple needs to continue this system to maintain
    quotas
                                         their sales quota high.
 2. Analysis of representative •         The sales function is internal in order to continue assuring personal
    versus employed salesman.            training and one-to-one attention for the customers .
 3. Specialization or structuring •      Sales force is divided by product line; therefore, the seller is well
    the sales force                      trained in his area.
 4. Definition of the number of
                                •        Stipulated according to the markets’ demand.
    sellers
 5. Definition and alignment •           Based in leading the growth of projections of the regional market
    of sales territory                   is reviewed periodically.
 6. Establishment of hierarchical
                                  •      The hierachy level of sales managament must be veritcal to
    levels and extent control of
                                         maintian effective communication and supervision control.
    sales management
 7. The role of regional sales
                                     •   Assure the control and sales is being kept.
    manager
                                                                                                     Chart 9.2
9.7
               Steps for Developing the Plan
                 for Quotas and Incentives
  Expected key activities: pre-sales, sales   Employed Sales Representatives: Representative must be well
             and after sales                  inform of their specialized product to sale, In addition, the
                                              reprsentative must perform follow-up on the customers.



                  How to                      Employed Sales Representatives: Periodically training with
  turn these activities into performance?     evaluation to maintain a close relationship.




      What is the estimated target for        Employed Sales Representatives: Maintain the sales quota
                                              high on the existing product and increase the sales on the 2011
                each index?
                                              apples’ devices.


               How can we                     Employed Sales Representatives: Emphasizing the training and
 relate the quota plan and goals with the     rewards program with the incentives of increase commision on
               incentives?                    the selling of the apple’s devices.

                                                                                                  Figure 9.4
9.8
              Analysis of Apple’s Sales
            Representatives Department
      • Apple has created a business environment that is not usual:
         – Plenty open space for career growth
             •   Channel Sales
             •   Enterprise Sales
             •   Education Sales
             •   Telesales
             •   Systems Engineering
             •   Online Store
             •   Education Marketing
         – Open minds for innovation
         – Sales representatives have the luxury of selling products that
           practically sell themselves
9.9
            Analysis of Apple’s Human
              Resource Department
      • Responsible for recruiting and developing the best and
        brightest employees in every division
      • Supporting them throughout their careers with intensive
        training programs.
      • Keeps their team members happy so that they can keep Apple
        one step ahead of the competition.
      • Important Note:
         – Apple would be nothing without its wonderfully dedicated,
           diverse, and talented staff.
9.10

       Remuneration and Incentive Plan
              Components           Objectives in the Remuneration Plan

             Sales Contest       Rewards for     achivements    in    sales
                                 expecation.

           Payment Incentives    Store discount on apples’ products

          Salary & Commissions   according to the experience and overall
                                 performance the commission per
                                 product sold would be determined.


                Benefits         Health Insurance, Dental Plan, Social
                                 Security Plan, discounts for vacation,
                                 participation in apples’ events and
                                 seminars.

                                                                 Chart 9.6
9.9
               Collective Action in the
             Administration of Sales Force
               Action                           Proposed Idea for Apple


                                Third party companies specialized in the human resource
      Increase interaction in
                                sector to give seminars in improving the sales
      the training campus
                                envirnoment and business atmosphere.


                                In international expansion, permit third party recruiting
      Non-competing             for international representatives in Apple’s retail stores
      companies share the       that are abroad. This permits to ease the cultural barrier
      enforcement of training   and to increase the chances of success in the market and
                                reducing risks.

                                                                                  Chart 9.9
 Chapter 10
Decisions of Prices




                                                  Source:
                  http://embracingyourlife.wordpress.com/
10.1
                       Apple’s Price Objective
       • Maximization of sales growth with its high market
         participation
       • Focus on quality for profit maximization



       1st Trimester
          of 2011      Sales(appliances/smartphones)              Billing


          Apple              $18,6 millions USD             $ 11,9 billions USD


          Nokia              $108,5 millions USD            $ 9,4 billions USD




                                                                                                                  Source:
                                                   http://www.zippycart.com/ecommerce-news/2221-ecommerce-growth-
                                                          strong-projected-to-hit-279-billion-by-2015.html/graph-going-up
10.2
            Establishing Price Objectives
       • Maximizing Sales Growth:
          – This market segment is not price sensitive
          – Consumer demands, high quality standard product
          – Apple satisfies the demand with innovative designing and best
            of all features that “drops the consumers’ mouth”
          – Apple’s strategy, increases the sales volume by and are price
            leader with their innovation
             • This sets them as high market participation, and enormous
               profits in the long term
     Establishing Price Objectives
• Maximizing Profits:

   – Take into account the market demand and products costs

      • The market is not as price sensitive

      • The market is a developed market for the company; were, the
        products sell themselves

      • Apple has the opportunity to maximize their profits by being price
        leaders
10.3
       Factors of Price’s Sensibility
                                                        Does Apple     Ideas
            Factors to reduce the price sensitivity      apply it?
        The product is unique: unique value                Yes
        Buyers are less aware of the existence of
        substitutes                                        Yes
        Buyers          can        not        compare
        the quality of substitutes                         Yes
                                                                      Continue
        The expense in relation to total income is                    working
        small                                              Yes       in Apple’s
                                                                       way: be
        The final benefit of the product is great          Yes
                                                                     innovative
        The product cost is shared with third parties      Yes           and
                                                                      different.
        The product is used in conjunction with
        assets previously bought                           Yes
        The product has more quality, prestige and
        exclusivity: Price & Quality                       Yes

        Buyers can not store the product                   N.A.
                                                                      Chart 10.1
10.4
       Impacts in the Demand’s Elasticity
            Factors                          Ideas and actions for Apple

                          Apple’s products should be shown as unique and incomparable
        Substitutes or
                          based on the innovation, quality and differentiation. Apple’s
         competitors
                          products are pioneers in the technological market.
                          The high price of Apple’s product should be explain with a focus
        Perception of
                          on the concept that Apple is the best brand for those kind of
         higher price
                          products
                         Customers will need to be satisfied and always surprise by new
          Change in
                         products of Apple. The company must give them great variety of
       purchasing habits
                         size, colors, memory capacity and applications
         Justification of All increases on price must be explain as an advanced level on
       the price increase quality and functions of the products
                                                                                   Chart 10.2
10.5
           Price Decision According to
                  Competitors
       Perceived value of the                     Intensity of Competition
              product
                                              Low                            High

                                 Monopoly or differentiated Monopolistic
                High
                                 Oligopoly                  Competition


                                                                  Pure or perfect
                Low              Undifferentiated oligopoly
                                                                  competition

                                                                                      Chart 10.3
         Thanks to Apples’ innovation, it became a differentiated oligopoly, where some
         competitors are placed and were the decision of one company of the sector influenced the
         decisions of the others. Apple is the leader and it has a great perceived value of the
         products
10.6
         Methods for Price Determination
       The most accurate methods that could be used by Apple are:
            Methods                           Advantages                           Disadvantages

                              It allow the easily changes on price,
                              according to costs. This is very important to
                                                                              Frequently variations of
             Markup           company because the staff have great
                                                                              price realized by customers
                              knowledge of products cost.
                              In special seasons the prices go up.

                              Apple could assure the return they want.        It ignores the price
        Price of the target
                              They could determine the break-even point       elasticity and the
              return
                              of the business.                                competitors price

                              Customers perceptions are relevant to
            Price of                                                          Difficulties to estimate the
                              determine price.
         perceived value                                                      real perceived value
                              Large profit margins.
                                                                                                 Chart 10.4
10.7
       Strategy to Adapt the Price
             Strategy                     How Apple applies it
         Differential Price   Each product has its price depending on the
                              function ability, features which creates a
                              brand perspective.

            Discounts         Being price leader with high quality standard
                              product, and consumers being not price
                              sensitive. There are no discounts, and there is
                              no need since there is a high inventory turn
                              over.
        Geographical Price    Apples’ price is standard worldwide since
                              their products are segmented to middle and
                              high class being not sensitive to the price.
         Promotional Price    This is set seasonal to incentive sales growth
                              and usually with a bundle. For instance, a
                              purchase of a MacBook and granted a iPod
                              shuffle.
                                                                   Chart 10.5
10.8
       Apple’s Performance with its Price
            Strategy in the market




                                                                            Source:
                     http://www.macrumors.com/2011/06/08/apple-tops-list-of-largest-
                                                    semiconductor-buyers-in-2010/
10.9
              Initiatives and
       Responses to Changes in Prices
            Initiative to reduce price
               • Apple is price leader in the market
               • However, there are many competitors in the generic
                 sector and there is economic recession
           Strategy
               • Sacrifice a small margin of sales profit
               • Reduce a small fraction of cost production by taking
                 advantage of globalization
           Response from the Consumer
               • Will appreciate the reduction and increase their
                 purchases                                                      Source:
                                  http://www.macquirelatory.com/Freemasonry%20Truth.htm
10.10
          Perspectives of Network
        and Collective Action in Prices
                      Actions                              Ideas for Apple
         Increase the value perceived by the   •   Continue the innovating designs and
                      customer                     efficient applications.

                                               •   Increase the bundle package of
                                                   products and services.
                                                     o Offer Buy one get one free
                                                     o Buy extended warranty and
                                                        receive one year more


            Reduced the Price Sensibility      •   Fidelity Program
                                               •   International Warranty
                                               •   Personalized Technical Support
                                               •   One of a kind Product
                                                     o Difficult to substitute
                 Reduction of Cost             •   Expand the production overseas

                                                                                Chart 10.6
       Chapter 11
Budget and Investment Analysis




                                                                        Source:
         http://edvaldocorreablog.blogspot.com/2010/09/orcamento-de-obras-sem-
                                                          segredos-simples.html
11.1
             Features of the Budget
       1. Long-term Goal
                                       • Sales forecast


       2.Plan of long-term results     • Budget in communication




       3. Short-term plan detailed
                                       •Feasibility studies for
       according to different levels   implementation of new channels,
       relevant liability              products and product line extension

       4. System of periodic reports
                                       • Planning and production control
       performance for various
       levels of responsibility




                                                                                Source:
                                                                             Tung, 1994
11.2         Marketing Budget and
                Sales Forecast

                                                                   Sales
       Ipod – 9.1 million                                   U.S. $ 24 billion
                                                          End of June / 2011
                    Ipad 2 – 5 million



                             Mac – 3,89 million



                                                                                          Source:
                               http://oglobo.globo.com/tecnologia/mat/2011/04/15/demanda-pelo-
                              iphone-eleva-previsao-de-vendas-da-apple-diz-analista-924247487.asp
11.3                   Prevision Budget of
                       Marketing and Sales
                           2011                2012               2013              2014
   Sales Average        $ 12.500.000.000   $ 12.500.000.000   $ 12.500.000.000   $ 12.500.000.000
  Prevision Sales
  Mac Book               $ 2.400.000.000    $ 3.120.000.000    $ 3.744.000.000    $ 4.680.000.000
  Imac                   $ 5.000.000.000    $ 6.500.000.000    $ 7.800.000.000    $ 9.750.000.000
  Mac mini                  $ 75.000.000       $ 97.500.000      $ 117.000.000      $ 146.250.000
  Mac Pro                   $ 50.000.000       $ 65.000.000       $ 78.000.000       $ 97.500.000
  Mac OS X                  $ 40.000.000       $ 52.000.000       $ 62.400.000       $ 78.000.000
  Ipod shuffle              $ 90.000.000      $ 117.000.000      $ 140.400.000      $ 175.500.000
  Ipod Nano                $ 350.000.000      $ 455.000.000      $ 546.000.000      $ 682.500.000
  Ipod Classic             $ 240.000.000      $ 312.000.000      $ 374.400.000      $ 468.000.000
  Ipod Touch               $ 200.000.000      $ 260.000.000      $ 312.000.000      $ 390.000.000
  Apple TV                 $ 100.000.000      $ 130.000.000      $ 156.000.000      $ 195.000.000
  Iphone                 $ 2.475.000.000    $ 3.217.500.000    $ 3.861.000.000    $ 4.826.250.000
  Ipad                   $ 2.100.000.000    $ 2.730.000.000    $ 3.276.000.000    $ 4.095.000.000
  Total Prevision       $ 13.120.000.000   $ 17.056.000.000   $ 20.467.200.000   $ 25.584.000.000
  Incremental Sales        $ 620.000.000    $ 4.556.000.000    $ 7.967.200.000   $ 13.084.000.000
  Incremental Profit
  (24% of sales)          $ 148.800.000     $ 1.093.440.000    $ 1.912.128.000    $ 3.140.160.000
                                                                                        Table 11.1
11.3.1     Budget of Strategic Planning of
              Marketing Managment
  Product Plan
  Enviromental Packages          $ 1.312.000,00       $ 1.000.000,00       $ 500.000,00        $ 600.000,00
  Launch of New Products      $ 100.000.000,00     $ 100.000.000,00    $ 100.000.000,00    $ 100.000.000,00
  Product Innovation          $ 400.000.000,00     $ 200.000.000,00    $ 400.000.000,00    $ 200.000.000,00
  Total Product Plan          $ 501.312.000,00     $ 301.000.000,00    $ 500.500.000,00    $ 300.600.000,00
  Communication Plan
  Advertisement               $ 800.000.000,00
                                                  $ 1.040.000.000,00 $ 1.248.000.000,00   $ 1.560.000.000,00
  Sales Promotion             $ 400.000.000,00
                                                   $ 520.000.000,00    $ 624.000.000,00    $ 780.000.000,00
  Public Relations            $ 401.500.000,00
                                                   $ 521.950.000,00    $ 626.340.000,00    $ 782.925.000,00
  Personal Sales              $ 400.000.000,00
                                                   $ 520.000.000,00    $ 624.000.000,00    $ 780.000.000,00
  Direct Marketing            $ 100.000.000,00
                                                    $ 130.000.000,00   $ 156.000.000,00   $ 195.000.000,00
  Total Communication Plan   $ 2.101.500.000,00   $ 2.731.950.000,00 $ 3.278.340.000,00 $ 4.097.925.000,00


                                                                                                 Table 11.1
11.3.1    Budget of Strategic Planning of
            Marketing Management
    Distribution Plan
    Investment in Global
    Network                           $ 30.000.000,00       $ 39.000.000,00    $ 46.800.000,00    $ 58.500.000,00
    Just in Time System              $ 400.000.000,00     $ 520.000.000,00    $ 624.000.000,00   $ 780.000.000,00
    Expansion of Apple Stores          $ 50.000.000,00      $ 65.000.000,00    $ 78.000.000,00    $ 97.500.000,00
    Return Plan with Distributors
    (1% of Total Previsions)         $ 131.200.000,00     $ 170.560.000,00    $ 204.672.000,00   $ 255.840.000,00
    Total Distribution Plan          $ 611.200.000,00     $ 794.560.000,00    $ 953.472.000,00 $ 1.191.840.000,00
    Sales Force Plan
    Incentives to Sales (1% of
    Total Provisions)                $ 131.200.000,00     $ 131.200.000,00    $ 131.200.000,00   $ 131.200.000,00
    Trainig                            $ 50.000.000,00      $ 50.000.000,00    $ 50.000.000,00    $ 50.000.000,00
    Total Sales Force Plan           $ 181.200.000,00     $ 181.200.000,00    $ 181.200.000,00   $ 181.200.000,00


    Total Budget PGEM               $ 3.395.212.000,00   $ 4.008.710.000,00 $ 4.913.512.000,00 $ 5.771.565.000,00
                                                                                                      Table 11.1
11.4
               Justification of Budget
       •The budget reflects the expected growth of
       Apple, according to the sales expectancy that
       the company has invested during the previous
       periods.

       •The results are always compared with the net
       income.
11.5        NPV – Net Present Value
Cash Flow   2010           2011            2012            2013              2014
(in $USD)
              0        6.000.000.000   7.800.000.000   10.140.000.000 13.689.000.000




            NPV = USD$21.019.936.877

            Requiered performance = 24% per year




                                                                         Figure 11.1
11.6
             IRR – Internal Return Rate

 Cash flow         2010              2011             2012               2013            2014
 (in $USD)

             -10.000.000.000    6.000.000.000   7.800.000.000   10.140.000.000   13.689. 000.000




                               NPV = USD$21.019.936.877

                               IRR = 69,46%


                                                                                  Figure 11.2
         Chapter 12
Control and Management of Strategic
  Planning of Market Management




                                                           Source:
                    http://www.sprucebugs.com/BusinessPlanning.htm
12.1
                  Important Issues for
            Implementation of Strategies
              Element
       Distribute
                      Planning and
                        rewards
                                Specific Task
                                       and •   Evaluate every trimester, the sales agent
       incentives that are strongly linked     performance
             Management of Marketing
       to the objectives and strategy             Invite all employers for a business evaluation
                                                    meeting to incentive all employees to be
                                                    aware of the companies progression.
                                                  Top employees and sales agent s’ be given a
                                                    bonus.

       Keep exercising their strategic •       Main the intensity level of investment in research &
       leadership                              development
                                                  First, resulting in more innovation in product
                                                    line for remodeling their products every year.
                                                  This leads for Apple continue being leaders in
                                                    their competition.

                                                                                          Chart 12.1
12.2
           The Transformation Plan in
             Project Management
                                   Project
       A   Create new line of products (Interactive Television)
       B   Brand Expansion (computer and electronic accesories)
       C   Improve Packaging (Ecological raw materials)
       D   Expand Apple Retail Stores in US and Worldwide Market
       E   Creating and expanding a network of franchises
       F   Investment in social responsability
       G   Reduction in production cost
       H   Joint Action with other companies
                                                               Figure 12.1
12.2.1
             Tools for Project Prioritization

                           Urgency (Need for   Importance (The
         Project/Actions        speedy         Impact Result of     AxB
                           implementation)         Apple)

               A                  4                   8           32 points
               B                  6                   6           36 points
               C                  9                   8           72 points
               D                  10                 10           100 points
               E                  8                  10           80 points
               F                  7                   8           56 points
               G                  8                   9           72 points
               H                  6                   9           54 points
                                                                        Chart 12.2
12.2.2
                        Fundamental Topics in
                         Project Management
                                        Details of the Developed Plan
         Coordinator and The regional manager must continue the effective management control for each region
         Team            assuring that the strategies are being complied.


                             •    Maintain the high quality standard of brand recognition of their products
         Objectives          •    Expand the scope and range of products and target markets
                             •    Reduce costs through partnerships with other companies and expansion worldwide

                             •    Testing the acceptance of new products
                             •    Check the performance of new packaging
         Scope               •    Check the performance of its own stores and franchised stores
                             •    Check the return on investments in communications
         Result              Improve market share participation.
         Expected
                             It is already implemented and must continue the progression
         Cronogram

                             Market Share: increase a 15% participation in 2012
         Control Points      Quality: Maintain the high quality standards
                             Cost: reduce the production cost in packaging at least 7% by 2013

                          Costs: R & D, packaging, logistics, training, expanding own stores, advertisement, direct
         Budgets          market
                          Must be perspective with the economic situation and take advantage of the production
         Contingency Plan cost in the developing countries.
                                                                                                        Chart 12.3
12.2.3
         Timeline of Strategic Projects
             Activity   2011   2012   2013     2014
                A               x      x
                B        x      x      x         x
                C        x      x      x         x
                D        x      x      x         x
                E        x      x      x         x
                F        x      x      x         x
                G        x      x
                H        x      x
                I                      x         x
                                             Figure 12.2
12.2.4
                    Inter-relationship between
                              Projects
         Activity    A   B   C   D   E   F   G       H

            A        0   x   x                       x
            B        x   0   x   x   x               x
            C        x   x   0           x   x       x
            D                    0   x
            E                    x   0               x
            F            x   x           0
            G                x   x           0
            H        x   x   x       x               0
                                                 Chart 12.4
12.2.5
         Control Project Management
         Project          Responsible        Period (years)
           A       Director of R&D                 2
           B       Director of R&D                 2
           C       Director of R&D                 2

           D       Regional Director, CEO          4
           E       Regional Director, CEO          4
           F       Regional Director, CEO          4
           G       Director of Production,         4
                   CEO
           H       Regional Director, CEO          4
                                                         Chart 12.5
                                 Bibliography
•   Apple . Web. 01 April 2011. http://www.apple.com/.
•   "Apple Reports First Quarter Results." Apple. Apple Inc., 25 January 2010. Web. 01 April 2011.
    http://www.apple.com/pr/library/2010/01/25results.html.
•   Blackberry. Web. 01 April 2011. http://www.blackberry.com/.
•   Microsoft. Web. 01 April 2011. http://www.microsoft.com/.
•   "MSN Money." Money Central. Microsoft, 01 April 2011. Web. 01 April 2011.
    http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?lstStatement=Income&symb
    ol=US%3aAAPL&stmtView=Ann.
•   Consilvio, Steve. "Monograph on the Apple Business Model." The Apple Loop. 2003. Web. 10 April
    2011. <http://www.theappleloop.com/Home/monograph.html>.
•   Fava Neves, Marcos. Planejamento e Gestão Estratégica de Marketing. 1st. São Paulo: Editora Atlas
    S.A., 2005. 17-207. Print.
•   Rosenman, Stephen. "It's All About Apple's R&D."Seeking Alpha (2008):. Web. 01 April 2011.
    http://seekingalpha.com/article/69148-it-s-all-about-apple-s-r-d.

				
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