INTERNATIONAL MARKETING PLAN iPhone Entering the Chinese Market by zhangyun

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iPhone: Entering the Chinese

                   Neha Kushwaha
                   Priya Verma
   Apple Inc. designs, manufactures, and markets
    ◦     personal computers,
    ◦     portable digital music players,
    ◦     mobile communication devices and
   Sells a variety of related software, services, peripherals, and
    networking solution.

   Apple’s most successful product has been the iPod which has
    sold over 163 million units.

    Apple have developed a break through smart phone called the
   The iPhone is available in 88 different countries
    throughout the world, representing an addressable
    market of 760 million users

   Apple have been unsuccessful in bringing the
    iPhone to China.

   Apple has not been very successful in this market
    due to social, economic and cultural differences.

    Finally, a marketing plan is proposed that will
    successfully position Apple in the market.
Situation Analysis(PESTLE)
  •Political & Legal Environment
 The two providers of mobile services - China Mobile &
 China Unicom - are state owned and highly influenced by
 government policy therefore Apple has to be cautious in
 entering the market as the Chinese government exercise
 authoritarian control over them.

  Apple will have to disable the WiFi functionality on
  the iPhone in order to comply with the Communist
  Party's strict Internet control and censorship rule.
Economic Environment
  The economy of China is the second largest in the
 world after that of the United States with a GDP of
 $7.8 trillion.

  China has been the fastest-growing major
 nation for the past quarter of a century with an
 average annual GDP growth rate above 10%.

   Gross and disposable income has increased
 rapidly over the past 10 years, and is expected to
 grow until 2015.
Technical Environment

 China Mobile alone has a population coverage rate
  of 98% on it’s 2G network. However,
 China Mobile do not yet have a functioning 3G network
  in operation therefore iPhone should be used on a 3G
  network giving high internet speeds resulting in high
  customer satisfaction.
SWOT Analysis
   Strengths

   Apple’s Technical Innovation and 100% Control over
    both software and hardware designs

   Software Development Experience

   High switching costs

   Upgradability(the iPhone’s software can be updated to
    the latest version months after it’s purchase)
   Apple’s Weak Brand in China

   iPhone as a Gaming Platform

    Multi Touch Trackpad which would be a great
    innovation from its competitors.

   iPhone will be as a digital hub. (For example, an
    iPhone accessory called DiabetesLog enables diabetics
    to check and record their blood sugar levels directly on
    their iPhone.)

             Competition from Microsoft,
              RIM, Palm, Nokia & Google

             iPhone Clones & Copyright
              in China
Competitor Analysis

Name of the             Price %   Features%

LG Prada                   60        40
iPhone                     60        80
Nokia N95                  70        70
Blackberry Curve 8300      60        60
Palm Trio 750              70        80
Nokia 5300                 10        10
Palm Pre                   70        80
Market Segmentation

Purchasing Desire by Age   Purchasing Desire by Gender
Selected Marketing Strategy

   Apple do not have a strong brand within

   iPhone clones are gaining popularity and
    damaging Apple’s brand and competitive
    position by placing downward pressure on
    their pricing strategy

   Smart phones are relatively common in China
Apple make a select few changes to the iPhone-

   Disable the WiFi antenna on the iPhone as it would
    be against the Internet control and censorship rules

   As mobile phones are seen as a fashion item rather than
    a functional device, therefore the iPhone be made
    available in a range of colours

   The iPhone software should enable the user to input
    Chinese characters by drawing on the multi-touch
    screen and all other features on the iPhone be kept the
    exact same.
    iPhone clones are available for half this price. Apple must be
    careful to price the product so that it is perceived as a
    premium product without driving potential customers to
    purchase iPhone replicas.

   Apple must consider it’s overall iPhone strategy when pricing
    the iPhone in China and also consider others prices of Nokia,
    RIM, Palm

   Therefore Apple should aggressively price the iPhone within
    China in order to establish a large user base for Chinese
    application developers to target

   Recommend a price point of 2600 RMB for an 8GB iPhone whilst
    pricing the 16GB iPhone at 3800 RMB.
Distribution (Place)
   Apple has just one self owned store in Beijing, hence they will
    need to find appropriate retail partners.

   that they partner with China Mobile’s largest partner as this
    will offer the best market reach.

   should initially focus on the 3 major cities of Shanghai, Beijing
    and Hong Kong; as a large portion mid-high income earners
    are located in these regions

   Furter customer can also order the iPhone from Apple’s
    online store.
    Focusing on a select few “killer features” that will demonstrate
    to the Chinese consumers that the iPhone a new wave of
    mobile technology

   Demonstration of the iPhone’s Pin-Ying character recognition
    technology will add further benefits as a promotion

    Apple market the iPhone as a gaming platform as casual gaming is
    incredibly popular in China

   Advertising & Public Relations

   To be constantly “in the press” and will make it very difficult for
    competitors to capture consumer attention
   The iPhone is a fantastic product that will
    help build strong brand recognition and
    undoubtedly lead to future sales of
    additional Apple products.

   As Apple have experienced in other
    countries, the “halo effect” of the iPhone is
    a powerful means of driving future sales &
    creating brand loyalty.
Thank You!!!!!!!!!
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