Current Company Information
Apple has been in business for 31 years, since early 1976, and now employs over 17,780 people worldwide in their headquarters and office locations. Headquarters are located in Silicon Valley, California, while all other regional offices are located in Austin, Texas, Cork, Ireland, and Singapore. Apple factories on the other hand are located in Longhua, China and Suzhou, Shanghai and employ more than 250,000 workers combined. (3, 4, 5)
Apple Inc. is a publicly held corporation that is traded on the Nasdaq under ticker symbol AAPL. In third quarter, 2007 annual sales for Apple reached $24 billion, up from $19.3 billion in 2006. Product and service lines at Apple include lines of MAC Computers, iPod and Apple TV, iTunes, iPhone, and downloads to any of the existing product lines from a series of downloading hosts. (3, 4)
PRODUCT INFORMATION
Apple iPhone
The iPhone is considered a smartphone because of the amount of information it sinks and loads. This revolutionary new product is also a widescreen iPod, a breakthrough internet device, and a high technology cell phone that includes basic and many not-so-basic features as a regular cell phone that include contacts, calendar events, e-mail, photos, music and video, and an iTunes account. The iPhone is used as a regular cellular device with additional features that make it comparable to a blackberry and an iPod all in one small, technological device. To use the iPhone, a consumer is able to program all information that he/she wants to have as features on their phone. This makes life simple as most phones come already programmed for the consumer. This product will be customized to each individual. The screen is large for easy viewing and includes state-of-the-art touch screen technology that include over 300 patents, that no other phone, up until its release, could duplicate. The iPhone stands 4.5 inches tall by 2.4 inches wide and weighs approximately 4.8 ounces. It is comprised of two colors black and silver and includes a 3.5 inch widescreen multitouch display. (4)
Product Information (Packaging, Warranty, Pricing)
The packaging of the iPhone is set in a box that is black with a picture of the iPhone on the front. In the box there is a stereo headset, dock, dock connector to USB cable, USB power adapter, documentation, and a cleaning/polishing cloth. To see the actual packaging and reveal of the iPhone, you can go to Youtube.com and type in iPhone packaging. Though every iPhone comes with a one year hardware repair coverage warranty and two years of technical support, consumers are urged to buy the “Apple Care Protection Plan” that extends the warranty and expert telephone support for 2 more years for the price of $69. The price of the iPhone is now $399 for the 2007 Christmas season which is down from the original price of $599 at the introduction of the product. (4)
Promotions and Distribution
The Apple iPhone is promoted virally through the internet and Youtube.com and also though TV commercials. Youtube.com has over 15,000 videos on the iPhone at their site that instructs consumers how to better use their product including all the features and benefits in short demonstrations. You can even watch the unboxing of the iPhone that has been seen over 4 million times. Another promotion for customers is $100 rebate on the product for people who bought the phone before August 22, 2007. As for distribution, you can buy an Apple iPhone on the Apple.com website, visit any of their over 300 Apple retail stores, or over 1,800 AT&T locations across the U.S. (4, 6)
TARGET MARKET – Apple iPhone
Apple Inc.’s target market includes the businesses within the cell phone industry that sell to end-users, consumers, and even businesses through their companies. Apple is already in contract with AT&T and would like to offer the iPhone to other wireless service and cell phone providers such as Sprint Nextel or Verizon Wireless that already have a high volume of sales and existing customers.
SAMSUNG ELECTRONICS
History of Samsung Electronics
Samsung Electronics, part of Samsung Group, was founded in January 1970. In 1972, production of black and white TV’s for local sale began. In 1974, Samsung created their first washing machine and refrigerator. In April, 1977 The first 14” color TV was exported an in 1981 the first microwave oven was produced. In 1984, Annual sales top $1 trillion. In August 1992, Development of the mobile phone system was completed, and in 1998 the mass production of worlds first digital TV has begun. In 2002, Samsung was the worlds largest mobile handset manufacturer and in October 2003, they released the worlds first home theater system with DAB receiver. 2004 to 2005 brought about the release of Blu-Ray Disc recorder, 3,4,5,6, and 7-megapixel camera phones, MP3 mobile phones, first ever speech recognition phone, and the first “World Phone” that can be used to communicate anywhere on the planet. During these years, Samsung was ranked 2nd in the world in cellular phone distribution and became the worlds top three companies with the most patents launched. (7)
Current Company Information
Samsung Electronics has been in business for 37 years, since early 1970, and now employs over 66,586 workers worldwide in their headquarters and office locations, and 254,000 employees in factories. Headquarters are located in Seoul, Korea while branch offices are located in Shanghai and Guangzhou. Factory and sales locations span from Miami, Texas, New Jersey, Mexico, Canada, Panama, Chile, Columbia, China, Japan and Brazil (7, 9)
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Samsung Electronics is a publicly held corporation that is traded on the Korea Stock Exchange. In 2006 annual sales for Apple reached $85.4 trillion, up from $80.6 trillion in 2007. Product and service lines at Samsung include mobile phones sold at AT&T, Sprint, T-Mobile, and Verizon Wireless; televisions, MP3 audio and video, cameras and camcorders, computers, printers, and home appliances including refrigerators, washers, dryers, microwaves, and air conditioners. (7, 8)
PRODUCT INFORMATION
Samsung F700 Ultra Smart Phone
The Samsung F700 is an advanced cellular phone, comparable to that of the iPhone. It boasts a full touch screen as well as QWERTY key pad that will allow customers to feel vibrations on the key they are touching on the screen. A drag and drop method of touch screen was adopted for easier menu navigation as well as play-list control. This new phone reflects the latest speed in the market at 7.2 Mbps and also has a full HTML browser like the iPhone. The phone includes a 2.78” color display and is featured in standard black with silver trim. It also allows the user to a use key pad with numeric and alpha numeric characters with a slide up screen for display and a keypad for tying. (10, 11, 12)
Product Information (Packaging, Warranty, Pricing, Promotions, Distribution)
This product is packaged like all other Samsung phones, in a silver Samsung box with a owners Manuel and phone charger. Since this phone is yet to come to the U.S. market and should be here before Christmas time, warranty has not yet been revealed to the U.S. consumer, and there are only 1 year warranties in other foreign regions on the hardware and service. Price, however, is to be set between $499 - $599. Again, since this phone will be coming to the U.S. market shortly, promotions for the product are strictly viral through internet sites and newspaper headlines. There is currently distribution for this product over the internet in the U.S. but it is illegal until the product is introduced to our market before year-end. (12)
COMPARATIVE ANALYSIS – Apple iPhone vs. Samsung F700
Advantages and Disadvantages of the iPhone
The iPhone features a 3.5” display screen, a multi-touch touch screen, Quadband GSM connectivity, a 2 mega-pixel camera, an onscreen touch screen keyboard, HTML e-mail, a full HTML browser, standard iPod support, and 4-8 gigabytes of storage. Of these features, iPhone has the F700 beat in on screen resolution and size, HTML e-mail, storage capacity, widgets, google maps, and push e-mail. (10, 11, 12, 13, 14)
Advantages and Disadvantages of the F700
The Samsung F700 features a 2.78” display screen, a drag and drop touchscreen, Tri-band GSM connectivity, a 5 mega-pixel, auto-focus camera, a slide out QWERTY with VibTonz, an unknown e-mail host, an MP3, and microSD expansion storage under 4 gigabytes. The F700 has the iPhone beat in more mega-pixels and auto-focus for the camera, a little bit more format support, an actual keyboard, and higher and faster connectivity to the internet. (10, 11, 12, 13, 14)
SPRINT NEXTEL CORPORATION
History of Sprint Nextel Corporation
Sprint
When long distance opened to competition in the 1980s, Sprint immediately seized the opportunity. By 1986, Sprint led all U.S. telecom companies by completing the first nationwide, 100% digital, fiber-optic network. At the same time, the company was a pioneer in data communications, establishing the world's third largest commercial packet data network in 1980. During the 1990’s, the company that gave America pin-drop clarity also became a global leader in voice and data services. Then a new kind of telecom company emerged in 1993, when Sprint and Centel merged to become a unique provider of local, wireless and long distance services. Sprint took its wireless strategy a big step further in the late '90s by building the only nationwide PCS network in the U.S.
(18)
Nextel
In 1987, an entrepreneur named Morgan O'Brien founded a company called Fleet Net. Renamed Nextel in 1993, the company rapidly established itself as a nationwide force in the world of wireless communications. In less than year's time, Nextel merged with Dial Call and OneComm, and received a $1 billion investment from wireless pioneer Craig McCaw. By mid-1995, Nextel was on point to serve all of the nation's top 50 markets. In September 1996, the company introduced Motorola's breakthrough iDEN technology. This marked the first combination of enhanced digital cellular, two-way radio and text/numeric paging in one phone. The national rollout of iDEN service began and the Nextel National Network was introduced in January 1997. By the year 2000, the company had connected to countries around the world and introduced its always-connected wireless data solutions. Soon to follow were its signature Nationwide Direct Connect walkie-talkie services, IP broadband access and a steady stream of feature-rich Internet-ready phones and smart devices.
In 2005, Sprint and Nextel merger was announced and operations began. (18)
Current Company Information
Since merging firms in 2005, Sprint Nextel has been operating for 2 years. Previous to this merger, Sprint has been in service since 1899 and Nextel has been in service since 1987. Combined years in service make Sprint Nextel 128 years of business expertise. There are currently 64,600 employees working for Sprint Nextel and the executive offices reside in Reston, Virginia while the operational headquarters remain in Kansas. (17, 18)
Sprint Nextel is a publicly traded company under the New Your Stock Exchange, ticker symbol “S.” Annual Sales revenue for 2006 was $41 billion up from 2005’s sales revenue of $28.7 billion. (17, 18, 21)
Product/Service Lines
Sprints product and service lines include phones and smartphones from Palm, Motorola, Blackberry, HTC and Samsung. Sprint also offers a variety of services to go along with the phones including a Music Pack, a TV pack, a Navigation pack, or an Access Pack; all of which are added features to the existing phones. Sprint offers many phone rate plans starting with 450 anytime minutes to 4000 anytime minutes and even some unlimited plans. All plans rage from $39.99 - $199.99 monthly depending on the plans and service features. (19, 20)
BUYER INFORMATION
Personal
Name: Jenna Hopkins
Family Status: Married with 2 kids and a dog.
Education: Bachelors in Marketing, MBA.
Aspirations: To balance career and family while moving up in career without the sacrifice of family time.
Interests: Shopping, traveling, spending time with family and pets.
Social Style: Responsive.
Attitudes
Toward sales people: Generally open minded to new people and ideas.
Toward Apple: Likes the idea of possibly adding Apple to its other cell phone suppliers since Apple is such a reputable and developed brand name.
Toward iPhone: Enjoys the thought of a new product offering that is more technological than any phone ever offered by sprint. Ms. Hopkins appreciates the touch screen technology most.
Relationships
Important reference groups and group norms: Consumer surveys, salespeople at Motorola, Samsung, Sony, and Kyocera
Bonds that the prospect has already formed with other salespeople: Samsung, Motorola, Verizon, and Cingular.
Evaluation of Products/Services
Product attributes that are important: Clear, smartphone, ease of functions, long life, and compact.
Product evaluation process: Ms. Hopkins enjoys the product overall and wants a copy of the product to be left with her to take to the other buyers and managers at Sprint.
TARGET MARKET
Sprint Nextels’ target markets are consumers and businesses looking for the highest quality cellular phones and service such as smartphones and PDA’s; as a majority of existing Sprint customers are entrepreneurs or in business whereby the cellular device is primarily used. Another target market is the teen market age 13-19. The average age for a person to acquire their first cell phone is 14 years. Achieving sales from these customers is important for long-term relationships with consumers as it is often difficult (monetary cost, time costs) to change providers.
POTENTIAL OBJECTIONS & RESPONSES
Objection (Need): I don’t think our company and consumers have a need for the iPhone.
Response: So you don’t feel that you or your consumers have a need for our product? I understand that you could feel that way but did I mention that AT&T is currently the only retailer selling the iPhone and sales are currently regulated because of the vast demand for this phone? People do not want to switch service to AT&T but maybe your existing customers would be interested in a phone that is the most technological and innovative to date. We think taking this step with Apple would take care of your company and consumers needs.
Objection (Product): I don’t understand your product and need more information.
Response: Since you don’t feel that you understand our product and would like more information, how about I leave an iPhone and brochure with you for a week to try it out and better understand it? We think this would take care of your understanding of the product and need for more information
Objection (Source): I don’t care for Apple.
Response: I am sorry that you don’t like Apple; did I mention that Apple is one of the most reliable and oldest firms in the electronic market? With a name that has been around for over 100 years, our brand name should be reason enough to re-evaluate your opinions of Apple.
Objection (Price): The value of the iPhone does not exceed the cost.
Response: I’m sorry you think that the value of the iPhone outweighs the cost. The benefits of improving your company image with a very developed name brand like Apple and introducing the most sought after phone on the market would take care of the concerns about value and price.
Objection (Time): I need some time to think about it.
Response: You need more time to think about it? Well I do appreciate your time today; did I mention that we would like to leave a copy of the iPhone and brochure with you so you may have the time to go over all the options at your pace. Hopefully this will help you in the time you take to think about our product.
SALES CALL
The meeting with Sprint will take place on Wednesday, December 12, 2007 at 9:30 a.m. The meeting will be held at the Sprint office in Cleveland and I will be meeting with the Assistant Buyer from Sprint, Jenna Hopkins.
Pre-call Objective (SMART)
Upon completion of this call on Jenna Hopkins, I will make her aware of at least 5 benefits of our product and express to her current news about our product and company, thereby creating a need for her company to do business with ours. Upon completion, I will get Ms. Hopkins to agree to a second meeting in two weeks where I can go into further detail on our company and product and relay purchase decisions at this time.
Initial Benefit Statement
How would you like to increase profits dramatically by becoming one of the only cell phone retailers selling the worlds most advanced phone?
During this sales call on Jenna Hopkins, in the first 30-120 second of the meeting I plan to introduce myself, shake her hand, and keep eye contact. After this I will build morale asking questions about her family, pets, and work; this will hopefully take a few minutes. Thereafter, I can approach Jenna about the benefits of our product and company which will lead into the presentation identifying Sprints needs using open ended questions and probing. I will then clarify Ms. Hopkins’ responses and present her with solutions using the features, advantages, and benefits table, demonstration of the phone itself, and brochures on the phone to help guide the benefits related to Sprint and their consumers.
Appendix
References
1) research .com; Wikipedia.com; CNET News
2) Apple History Timeline: http://applemuseum.bott.org/sections/history.html
3) Apple Computer Incorported; Datamonitor: Pg. 4
4) Apple.com; Apple.com/iphone/features
5) Apple.com/iphone/offices
6) Apple.com/iphone/storecredit
7) Samsung.com/About/Company Profile
8) Samsung Annual Report
Samsung.com/investors/finacial
9) Min-Hee, Kim (2005). “40% of Samsung Electronic Employees work in R&D.” The Korea Herald, pg. 22-23.
www.lexisnexis.com.
10) Product News: Samsung Reveals Ultra smart F700
Samsung.com/us/news
11) Palenchar, Joseph. “Cellular Makers Lower Voice.” Portable Digital Devices. Twice 28 Feb. 2007
12) Man, Joyce (2007). “Outdoing the iPhone.” The Moscow Times, pg. 2
13) “Samsung Handset Hopes to Take Bite of Apple’s iPhone market.” The Irish Times. 16, Feb. 2007; pg.10
www.lexisnexis.com.
14) “Samsungs Got the Beat, Its latest Music Phone.” TECHWEB. 1, Oct. 2007; pg. 7
15) “Tech Heads: Phones of the Future.” Daily Record. 16, Feb. 2007; pg. 5
16) Connell, James. “Bigger, Faster, Cheaper: Industry Keeps Marching On.” The International Herald Tribune. 12, Feb. 2007; pg.3
17) Sprint Nextel Corporation: Datamonitor; Page 4
18) Sprint.com/companyinfo/history
19) Nextelonline.nextel.com/products
20) Nextelonline.nextel.com/services
21) Sprint Nextel Corporation; Consolidated Statements of Operations
Annual Report – 2006.