Apple has positioned itself as the tech provider for the creative class, so it often injects a dose of avant-garde savvy into its advertising. Other spots simply articulate and emphasize the investment Apple has put into its design “language”; the engineering and styling that make its products so instantly recognizable. In almost every instance, Apple strives to appeal to anyone who lives, or aspires to live, a more creative life, and the results flatter both Apple’s products and the people who use them. Apple’s traditional advertising campaigns have been managed by the same ad agency, TBWA/Chiat/Day, since 1997. Ambitious, nonconformist, and witty, Apple’s campaigns do more than just feature products: they also take explicit potshots at key competitors. The "I'm a Mac" ad campaign, for example, which contrasts a cool hipster (representing Apple) with an uptight office drone (representing Microsoft) was typically effective. (Morrison, 2009).
3 - APPLE PRODUCTS
Apple develops, sells, and supports a series of personal computers, portable media players, computer software, and computer hardware accessories. The company is also involved in the creation of new technology concepts, such as the iPhone, Apple TV, and the latest device, the IPad (Nivea, 2006). Apple’s full products portfolio can be found in the Appendix (Table 1).
4 - IPAD
On the 27th of January 2010, Apple announced the introduction of iPad, a device for browsing the web, reading and sending email, enjoying photos, watching videos, listening to music, playing games, reading e-books and much more (Reuters, 2010). The iPad boasts the following specification.
4.1 – IPAD SPECIFICATION (apple.com)
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A high-resolution, 9.7-inch LED-backlit IPS display that makes the iPad perfect for web browsing, watching movies, or viewing photos. It has been designed so that consumers can view their contents in the portrait or landscape orientation with every turn.
- The Multi-Touch screen is based on the same inventive technology as on the iPhone, however it has been completely reengineered for the larger iPad surface, making it exceptionally responsive and accurate.
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UP to 10 hours battery life: Lithium-polymer battery technology, which was developed for Mac notebook computers, has been used to maximize battery life.
- Extremely fast Wi-Fi networks enabling the consumer to establish a quick and easy connection to a network located in their area.
- Bluetooth 2.1 + EDR technology allows the consumer to devices like wireless headphones or the Apple Wireless Keyboard.
- The A4 chip used inside the iPad has been custom-designed by Apple engineers to be both extremely powerful and power efficient at the same time. Flash storage space is available in 16GB, 32GB, and 64GB.
- There is a 30-pin connector on the bottom of the iPad, which consumers can use to dock the iPad and charge it and also connect to iPad accessories like the Camera Connection Kit and the Keyboard Dock.
- The iPad comes with powerful built-in speakers for watching movies or listening to music. It also has a headphone jack and a built-in microphone
4.2 – IPAD ACCESSORIES
The accessories have been designed specifically for the iPad these include:
➢ The Keyboard Dock combines a dock with a full-size keyboard. The availability of external keyboards helps blind users who can touch-type and cannot see the onscreen keypad, and its larger size compared to the existing touch devices will make things easier for those with fine motor issues, particularly on “upsized” iPhone apps (OS News, 2010).
➢ The built-in Bluetooth wireless technology, means it works with the Apple Wireless Keyboard too.
➢ The Camera Connection Kit lets the consumer import photos from a camera or SD card. The iPad Case has been designed to protect the iPad and enable it to be used it in various positions: making it easier to type, look at photos, or watch movies.
➢ The stand alone iPad Dock allows access to a dock connector port for syncing or charging, and also connect to powered speakers through an audio line out port.
➢ iPad 10W USB Power Adapter means that the iPad can be charged directly from a electrical power outlet.
4.3 – IPAD FEATURES
The e-book reader is one of the main features that boast about the Apple iPad (AppleRepo, 2010). The user can also check out all their favourite videos, browse the Web, and enjoy all the different paint programs and other applications that will be available for it. The tablet is running the new, yet-to-be released iPhone OS 3.2 and is coming with iWorks, photos, videos, music, emails and Internet browsing applications; App Store and iTunes compatibilities and a new iBooks store for buying and reading eBooks.
Mail: In landscape, consumers will get a split-screen view showing both an opened email and the messages in the inbox. To see the opened email by itself, consumers would have to turn iPad to portrait, and the email automatically rotates and fills the screen;
Photos application: Photos app displays the photos in an album as though they were in a stack. By tapping the stack, and the whole album opens up. From there, customers would be able to flip through the pictures, zoom in or out, or watch a slideshow. However it is possible to use the iPad as a beautiful digital photo frame while it’s docked or charging.
Video: The large, high-resolution screen makes iPad perfect for watching any kind of video: from HD movies and TV shows to podcasts and music videos. Consumers are able to switch between widescreen and full screen with a double-tap.
Apps store application: Consumers can get any application from the apps store, these include: Youtube, Itunes, iBook, iPod, Maps
Spotlight Search allows customers to search across iPad and all of its built-in apps, including Mail, Contacts, Calendar, iPod, and Notes.
Accessibility: iPad comes with a screen reader, support for playback of closed-captioned content, and other innovative universal access features — right out of the box. There’s no additional software to buy or install. These features make iPad easier to use for people who have vision impairment, are deaf or hard of hearing, or have a physical or learning disability.
4.4 - IPAD PRO’s and CON’s
The iPad will be of real benefit to people who are not Tech savvy, the iPad touch screen makes it really quick and simple to do things like scrolling through menu's, turn pages, select images or text on screen at the touch of a finger facilitating the easy creation of documents, spreadsheets and presentation on the go. However the downside of the iPad is that you are unable to multi-task, which means to be able to have more than one application on screen at the same time and work on both for example to have both you email open and be iReader at the same time.
Also the flexibility accessibility and processing speeds of the iPad are hugely benefits that enable smooth operability of the iPad and carrying out tasks. The other main key benefit is that it the IPS display will mean people will benefit from a better experience when viewing media contents, such as watching movies online and using social media networking sites, reading books or news online. Also people that like to shop online a lot will like the fact that are getting a better visual image of the product they are buying. Unfortunately iPad does not have support for Adobe Flash. This means that the Web experience won’t be as “revolutionary” as first seemed possible, as many of today’s websites utilise Flash to deliver rich interactive content from visualisation software, to presentations, games, product demos, and videos. Some websites are built entirely in Flash.
5 - APPLE'S COMPETITORS
Apple Inc is set apart from its competition as unlike any other hi-tech company. It provides a complete solution for the consumers by offering a full range of products including: consumer electronics, software and commercial services. Apple has so created a position for itself which makes it difficult for other companies to compete head on. In terms of hardware Apples measures competition on a sales volume basis against companies such as: Dell, IBM, HP, Toshiba, Acer, Gateway and Fujitsu.
As Apple remains primarily a computer company, those products that have recently gained it exposure and success in other sectors of consumer electronics are essentially computers in different forms (Euromonitor International, 2009). Even though Apple has no presence outside consumer electronics, it does design software. Moreover Apple took third place overall in the consumer electronics sector in 2007, behind Sony and Samsung, with a market share of 5.9%. Apple remains a fairly niche player in the computers sector, being third in desktops and seventh in laptops with respective market shares of 5.8% and 5.3%, (See Table 3 in Appendix).
In terms of software Microsoft represents the biggest competition, as Windows is the most used operating system accounting for 90% of the market. Besides being a hardware and software company Apple is also a digital asset management company and its success results partly form its direct role in providing content for the user. Other big players in providing content are: Amazon, Real Networks and Sony therefore they can be listed among Apples competitors.
Google also represents a not to be underestimated competitor through the Google chrome browser, a Web-based operating system that enables users to manage cloud-based assets in a single-user environment which in February 2010 was the third most used browser (Netmarketshare, 2010) and Google Chrome OS, its extension to be launched by the middle of 2010, as well as Android, Google’s OS and apps for smartphones which could challenge the iPhone.
6 - IPAD COMPETITORS
"The iPad might appear to compete with many existing products in specialized markets like e-books, tablet PCs and PMP/MP3 players, the success of the product is intrinsically linked to its capability to change consumer behavior."(Palenchar J., 2010). Furthermore according to J. Palenchar "a tablet will not replace a laptop, netbook or mobile phone but will remain an additional premium or luxury product for wealthy industrialized markets for at least several years."
6.1 – TABLETS PC
Tablets have been around in various forms for two decades now, and Apple was not the only company working on the tablet concept. Palm Pilot and Microsoft were at the forefront of the innovation curve on this particular product line. “A tablet is a PC that is virtually without limits and within five years I predict it will be the most popular form of PC sold in America” (Bill Gates, 2006). Unfortunately, Microsoft Windows tablets were not a commercial success, and only found its niche with health care and insurance practices. However manufacturing companies have still offered many different versions of the tablet PC over the years based on a modified version of the Windows OS (NQ Logic, 2010). These include:
- Sony: VAIO Tablet PC;
- HP Pavillon: TX2500Z
- Lenovo: ThinkPad X200 Tablet
- ASUS: Eee PC T91
- Dell: Latitude XT2
- Wacom: DTZ Series
- Samsung: Q1UP-V
- Fujitsu: LifeBook T5010 Tablet PC
- Toshiba: Portege M750
- Panasonic Toughbook T8
Today the tablet computers are a niche product, sold mostly to industrial and commercial buyers. They account for less than 1% of notebook PCs sold worldwide annually, or 1.3 million out of 140 million (Gartner). But Apple is a different company altogether and can navigate where so many have failed before, finally providing the ultimate device accessible by everyone.
6.2 – E-BOOK READERS
Bebook Neo features a slim design, a 6inch Vizplex screen, WIFI access, access to ebook stores from the device, Wacom tablet technology as well as one of the fastest processors in its class. All these attributes makes the BeBook Neo one of the fastest eReader currently on the market.
The iRiver Story is compatible with a wide range of e-book formats making it ideal for reading business documents on the road without having to carry a laptop. The device comes with a 2GB of internal storage, enough to store hundreds of books, and it also includes features which are not available on other e-book readers as yet including the diary, memo facility, the built in speaker and the voice recorder.
The Amazon Kindle is one of the thinnest e-book readers around the market. The Amazon Kindle features a well built and intuitive user interface: you can save notes, search, access the built in dictionary and it also features a text-to-speech function. Another unique feature is the Whispernet 3G connection which comes built into the Kindle, which enables you to access Amazon’s walled garden Internet network worldwide at no extra cost. Through Whispernet you get access to Wikipedia, the Amazon e-book store, read the first chapter of any book and access to paid subscription news feeds.
The Cool-er comes in a range of striking colours similar to the iPod range. Moreover, you can flip the screen 90 degrees to read in landscape mode but you will have to go through the settings as it cannot sense when you are turning the reader. The screen is un-affected by direct sunlight glare unlike earlier ebook readers so you can read anywhere as long as you have light. There is no text-to-speech function, but it comes with an MP3 player function which although limited, is quite good for listening to audio books.
The Sony Reader Touch Edition is looking to compete against different sides of the e-book reader market. The main feature is the touch screen that make easier to read and permits to flick through pages like on a real book.
The Elonex eBook is compatible with the free Adobe Digital Editions software and is one of the first e-book readers to market with this technology. The long battery life means you can enjoy up to 8000 pages between charges. The device comes with 100 titles already pre-loaded and can hold up to 1,000 books.
7 – PRIMARY TARGET MARKET
Source: Croft M. J. (1994). Market segmentation: a step-by-step guide to profitable new business. pp39.
7.1. – SOCIO-ECONOMIC GROUP
iPad is targeted at the socio-economic group AB. According to Mintel socio-economic group AB is expected to increase by 7.3 per cent in the next five years, (PCs and Laptops, 2009). Moreover this particular socio-economic group is more likely to purchase online, which could be one of the reasons why iPad is targeting this group, as Apple operates the transactional website. Furthermore Apple products have higher price points and according to the research socio-economic group AB spends more money on computers than any other group. Moreover consumers who belong to this group are more likely to buy it from the specialist (Apple store).
7.2 - AGE
iPad is targeted at people age: 20 to34 (See table 6 in the Appendix).
Consumers who belong to the age group 16 to 24 are more likely to spend more money on the laptops, as this particular age group is less likely to have financial commitments like mortgages or loans which leave them with higher disposable incomes, which might be spend on products like iPad. Furthermore according to Mintel, 36 per cent of people who belong to the age group 16 -24 spent on laptops in 2009 from £401 to £699, and 24 per cent of consumers from this age group spent over £700 on laptops, (PCs and Laptops, 2009). The figures above show us that this particular age group is more likely to purchase laptops with a higher price points.
Age group 25 to 34 is expected to increase by 12.2 per cent in the next five years, (PCs and Laptops, 2009). As well as they are the most techno-literate and having known that iPad is the new product, it should attract a lot potential consumers who belong to this particular age group. Moreover 31 per cent of consumers who belong to this age group spent on laptops in 2009 from £401 to £699 (PCs and Laptops, 2009), which also supports the argument that they are very likely to purchase a laptops with higher price points.
7.3 – HOUSEHOLD SIZE
iPad is targeting small households. According to the research the number of small households is increasing and particularly small households are more likely to have higher disposable incomes, as they are less likely to have financial commitments, (PCs and Laptops, 2009).
7.4 - GENDER
According to The Telegraph, the Mac World Magazine website took an "educated guess" at UK pricing for the iPad, which it predicts will range from £388 to £591 for the Wi-Fi model, and £490 to £693 for the Wi-FI and 3G model. Moreover 35% of males spent from £401 to £699 and 34% of females spent that amount of money when purchasing the laptop (PCs and Laptops, 2009). This shows us that the difference between males and females who spent on laptops from £401 to £699 was only 1 per cent (PCs and Laptops, 2009). By looking at these figures we can assume that iPad will be purchased both by males as well as by females.
7.5 – WORKING STATUS
According to Mintel 41% of consumers who are in full-time education spent in 2009 from £401 to £699 on laptops, compared to those of self-employed only with 20% (PCs and Laptops, 2009). Full-time employees also represent a high figure, with 35% who spent from £401 to £699 on the laptops in 2009.
8 - SECONDARY TARGET MARKET
Baby boomers are people born between 1947 and 1965 (Kurtz D. L., et al., 2009). Moreover this particular age group is gaining more popularity and many companies choose to target them. This particular age group should see their disposable income increase in the next few years, as their mortgages are more likely to be paid off and their children leave home. According to Mintel the age group over 65s is expected to grow by 12.9% in the next five years, and the computer ownership in older age groups is set to climb (PCs and Laptops, 2009), (See Table 2 in the Appendix). This particular age group is less likely to be price sensitive. Moreover looking at iPad’s features it is clear that this product will appeal to this group, people who might have difficulties reading the small type but would still like to read books. When using iPad consumers would be able to increase the font size which would make the reading easier. The iPad looks like the perfect solution for bringing computing to older generations for two reasons- it is based on the iPhone OS (operating systems) which has proven to be simple to learn and second, it allows physical interaction through multitouch which makes interaction with a computer easy. ( Marshall N., 2010).
9 - IPAD PRIMARY AND SECONDARY TARGET AUDIENCE
First of all it is essential to mention that the markets could be divided into segments on the basis of the customer loyalty. “Customers can be loyal to one brand, loyal to a set of brands, or brand switchers”, (Pelsmacker P., et al., 2007, pp.128). According to Tellis G. J., (2004, pp.25): “Loyals are consumers who repeatedly buy one brand, and nonusers are those who have not ever tried or do not now use the brand. Loyals respond to advertising for their preferred brand more quickly and immediately at low levels of advertising than do nonusers.”
Therefore it is essential to highlight that marketing communications efforts will be different, when trying to reach the target audience (Pelsmacker P., et al., 2007):
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Brand loyals are those consumers who do not have to be convinced. Therefore the main communication instruments will be loyalty promotions and to keep the brand top-of-mind.
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Consumers who are loyal to a set of brands will have to be approached with a combination of communications tools.
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Brand switchers are influenced by material incentives, so sales promotions will be essential tool, to get them to buy the product.
Markets could also be segmented on the basis of the user status of customers. Here we could distinguish different groups (Pelsmacker P., et al., 2007):
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Non-user- consumers who will never buy the product and should be avoided.
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Potential user – this group of consumers need to be persuaded to try the product for the first time, so it is essential to consider usie the following: advertising, building awareness, trial promotions, in-store communications, in order to convince this group to try.
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A first time user – this group of consumers should be converted into regular users, so advertising, building favourable attitude and preference for the brand together with loyalty promotions should be considered.
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A regular user - should be confirmed in their favourable attitude and buying behaviour. Companies should consider when approaching this group, to use means of advertising and loyalty promotions.
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Ex- user- this group consist of customers who deliberately decided not to use the product.
The regular purchase follows from a positive attitude towards the brand. Rossiter J.R. and Percy L. (2009) suggest that brand could potentially be purchased by any of five buyer groups, based on brand purchasing behaviour :
Users:
- brand loyals
- favourable brand-switchers
Non users:
- other-brand-switchers
- other-brand loyals
- new category users
9.1 – PRIMARY TARGET AUDIENCE
"The iPad will appeal to consumers who are mobile and have a further interest in books, music, games and location-based services, in contrast with road warriors who must carry all their data with them and dedicated book readers who require E-Ink capability" (J. Palenchar, 2010). In addition we are targeting both men and women, who are aged 20-34, socio-economic group AB, as well as those who are tech-savvy shoppers.
iPad primary target audience:
Based on customer loyalty (Pelsmacker P., et al., 2007):
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Brand switchers - are those consumers who are influenced by material incentives, so sales promotions will be essential tool, to get them to buy the product. Moreover iPad consumers will be those people who also own products of other brands, which means that the main goal for Apple will be to encourage less usage of other brands, and encourage the, to switch to Apple.
Based on the brand purchasing behaviour as set out by Rossiter J.R. and Percy L. (2009)
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New category users- people who are entering category for the first time or re-entering after a long time. The key here is category awareness and the category attitude. It is essential to understand the reasons why these people have not used those products, (Percy L. 2009).
9.2 – SECONDARY TARGET AUDIENCE BASED ON LOYALTY (Pelsmacker P., et al., 2007):
iPad secondary customers
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Brand loyals - are those consumers who repeatedly buy Apple brand so they do not have to be convinced. Therefore the main communication instruments will be loyalty promotions and to keep the brand top-of-mind. The main objective for Apple company is to retain this group who previously bought an Apple product. Furthermore iPad's initial target audience is Apple: and iPod touch users, which proves the fact, why it is important to target this particular group.
10 - PEST ANALYSIS
10.1 – POLITICAL/LEGAL FACTORS
The change in government policy could have an impact on the PCs and Laptop’s market, if decided to extend membership of the European Union (EU), as it would lead to a higher competition from new firms entering the market. Taxation is a huge issue which could have a huge impact on businesses as heavy taxes in the UK could make Apple products more expensive. Other legislations include changes in the law of minimum wage, which would lead to a higher wages of Apple’s employees, and the cost might be passed on to the consumer in the form of higher prices of the products. The positive side of change in the minimum wage is that consumers would have more disposable income, which might be spended on products like iPad.
Furthermore according to Keynote (Computer Hardware, 2010) there are The Waste Electrical and Electronic Equipment (WEEE) Directive, which is effective since 2nd January 2007, and it makes producers, re-branders and importers of household electrical and electronic equipment responsible for the recycling of WEEE. It enables householders to return their WEEE to collection facilities free of charge. Moreover variety of laws and regulations could affect Apple’s financial condition and operating results by requiring recycling of Apple's products or safe disposal of unwanted products. Considering and respecting laws when launching a new marketing campaign is essential as regulating bodies (Advertising Standards Authority, Statutory Duties and Regulatory Principles) can interfere in Apple's campaign and as a result the company can lose the respective campaign, money and time.
10.2 – ECONOMICAL FACTORS
The main factors which contribute to economic factors within the PC’s and Laptops industry are: unemployment; inflation and interest rate. During the economic downturn consumers are more likely to cut on household goods, such as PCs and Laptops. Economic downturn had a huge affect on people’s spending as consumers confidence had been affected by high unemployment as well as by falling houses prices. Consumers also experienced tighter credit which means that it was even harder to borrow the money as the rules became much stricter.
10.2.1 – Interest rates
“Interest rates could stay at record low of 0.5 per cent throughout next year to underpin a UK recovery”., (The Independent, 2009). According to Mintel (PCs and Laptops, 2009) in March 2009, interest rates were reduced to 0.5% which is historical low. The Bank of England cut its base rate to a record low 0.5%. It means that mortgage holders might benefit from this decision, as they will have more disposable income due to loans and mortgage repayments being lower. However as the interest rates are very low now, it is expected that it will increase in the future. When it starts rising, it might be quite sharp and sudden. which could have a huge affect on customers, as their disposable income would decrese. Furthermore low interests rates means that loans might be harder to source; this would have an impact on consumers who are planning to borrow the money to purchase Apple’s products.
10.2.2 - Unemployment
According to the National Statistics: “the unemployment rate for October to December 2009 was 7.8 per cent” (See Table 5 in the Appendix). High unemployment could have a huge impact on consumers’ confidence as well as on disposable income. Companies including Apple would be affected as consumers spending would decrease. However the youth unemployment has a huge impact on economy because this group is considered to be one of the groups with highest disposable incomes, as they are less likely to have financial commitments. According to the research: “Official figures reveal the number of 18 to 24-year old out of work has fallen by 13,000 to 725,000 in the last three months of 2009”, (Channel 4 News, 2010).
10.2.3 - Inflation
Weak consumers demand is leading to lower inflation, and the market had recently experienced exactly that, when people started cuting on spending, which is influenced by base effects such as declining energy costs and falling prices on some food. Deflation is another factor that is caused by tight credit, which is bad news for retailers and could also lead to more widespread
10.3 - SOCIOLOGICAL
The population of the UK was 61.4 million in mid-2008, up by 408,000 (0.7 per cent) on the previous year (The Office for National Statistics, 2010). The number of people aged 85 and over reached a record 1.3 million in mid-2008, which accounted for more than 2 per cent of the total population at the time and also the fact that the Over-65s are expected to grow by 12.9% in the next five years shows that the population is aging and there do not seem to be many technological products on the market that cater to their needs. The older generation is becoming more accustomed to pace at which technology is evolving.
Organisations need to realize this is a market sector that they should do more to appeal to; also the older population age group is wealthier than the younger age groups. Products like the iReader will appeal to the over 65s, due to the features such as being able to change font size when needed. The iPad is also much easier to use than the more conventional PCs and macbooks.
The 25-34s expected to increase by 12.2% in the next five years. However this group is the most techno-literate as well as the most likely to be concerned about the price of the iPad, as Apple products including an iPad, have higher price points. According to Mintel: “The buyer profile for laptops is skewed strongly towards the young professional and those in full-time studies and younger people are also more inclined to buy higher-priced laptops than older people, perhaps wanting the latest designs just as with other electronic gadgets as well as higher specification machines for multimedia use.” (PCs and Laptops, 2009).
10.3.1 - Cultural
Innovations in technology has paved the way for digital future and the rise of social networks and media mean people interact more on line than in person. Social networking has a huge leverage on selected communities to recommend books, restaurants, and movies. Customisation and personalization now allows people to create informational spaces that limit the intrusion of informational chaos.
Consumers and business alike are able to network and establish new connections, meet new people, learn new things and choose different ways to bring together the various facets of their lifestyles, enabling them to be more efficient and do more than they ever thought possible.
The iPad will bring a huge change to reading culture, as last year around 80% of people do not read the book: enabled by new technologies the traditional models of education have begun to change. Online interaction with students, podcasts, blackborad, discussions and blogs regarding course topics, distance leaning and the availability of archives of journals and books have moved education into a new direction of E-learning.
10.3.2 - Trends
In 2009, a higher percentage of UK adults bought or ordered goods and services over the Internet in the previous 12 months than in any other EU country (See Table 4 in the Appendix). Two-thirds (66 per cent) of those aged 16–74 had bought goods or services online in the UK, compared with 56 per cent in Germany, 45 per cent in France and an EU-27 average of just 37 per cent. The internet accessibility that the iPad brings and the visual aspects means online shoppers may be affected positively by the image quality and this could influence their decision to buy online.
National Readership Survey figures show that in the 12 months to June 2009, less than half (42 per cent) of all people aged 15 and over in Great Britain read a national daily newspaper, compared with 72 per cent of people in the 12 months to June 1978 (2009). The iPad has a huge screen, therefore it has great potential for being used as a reading tool.
The amount of time Britons spend commuting is increasing. According to Kinetic's Moving World research, journeys to work rose from an average journey time of 35 minutes in 2003 to 1hr 5mins in 2008. The average commuter spends 139 hours a year travelling to and from work and it considerably increases for Londoners who spend the equivalent of one whole month per year commuting (Media Week, 2008). Moreover, London's 27.2 million daily passenger journeys are forecast to rise to 31.2 million by 2025 (TfLs Transport, 2025).
Britain on the Move finds that, as commuting distances increase, "on the move" technology, including BlackBerrys, laptops and mobile phones, adds some 99 million working days and an additional £9bn to the UK economy. Britain's commuters spend more than a fifth (22%) of their travel time doing and/or thinking about work. Overall, 36% of women and 50% of men say they find it useful to use new technologies on their journey, (See Table 18 in the Appendix)
10.4 - TECHNOLOGICAL FACTORS
10.4.1 - iPad usage
The Touch iPad Keyboard is not likely to be used by consumers for any type of serious data input while in the tablet mode, however Bluetooth means it can work with a Bluetooth keyboard, and the keyboard docking accessory allows people to do real work on this device. Furthermore the creation of a version of Apple iWork for the iPad will mean the tablet is great for productivity as well.
The iPad introduces a new approach to mobile computing too; one where the screen is visually encompassing of how consumers desire to view content and its ability to deliver the full Internet and all types of applications that can be viewed and accessed in tablet mode. Apple’s ability to deliver a complete ecosystem of hardware, software, applications and services tied to the iPad is their real advantage.
Unfortunately iPad does not have support for Adobe Flash. This means that your Web experience won’t be as “revolutionary” as Apple promises as many of today’s websites utilise Flash to deliver rich interactive content from visualisation software, to presentations, games, product demos, and videos. Some websites are built entirely in Flash.
10.4.2 - The implications of the technology implemented in the iPad
The iPad will have an impact on both the mobile computing market and all of Apple’s competitors in terms of Laptops and other personal portable devices.
The iPhone's growth as a gaming device and the arrival of the iPad may provide a whole new playing field for the videogame makers to occupy, as digital downloads are cheaper to churn out than traditionally packaged games.
Google became the dominant advertiser on the iPhone platform. When developers gear up for their applications to be downloaded to the iPad, AdMob will likely benefit as the go-to advertising platform as they start selling mobile ads that are slightly larger than a fingernail.
Also as the iPad display uses technology called IPS (in-plane switching) and has a wide, 178° viewing angle. This means that the consumer can get a clear picture, with excellent contrast and colour and not have to worry about how they are holding it. This really puts it at an advantage in direct competition of other PCs especially Laptops, netbooks and hand held readers.
The iPad will come "ulnlocked" and support 3G mobile connections via GSM micro SIM cards. AT&T will benefit as all that iPad data is likely to flow through AT&T and eventually its subscriber's bills. AT&T is the official wireless iPad partner.
Mc Graw Hill M. has also invested in the Apple's platform by putting its books in Apple's App Store. Now that Apple has a larger-sized reading surface and a new retail outlet called the iBookstore, people may start reading and buying more on Apple's screen. This could mean that other online reading libraries may follow suit.
11 - OBJECTIVES
Advertising:
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To achieve brand awareness and comprehension with the new category users target market of up to 70% with in the first 3 months of product launch.
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To achieve brand awareness and comprehension of product with in brand switchers target audience for up to 30% in the first 3 months and then 70% by the end of the second 3 month period.
Creative:
- To establish in the minds of the primary target audience new category users a positive image of the iPad product and its link to the Apple brand by the end of the year or 3rd quarter.
Media:
- To have reached 80% of our target audience by the end the 1st year from launch
Marketing objectives:
- Achieve purchase from 30% of brand loyal by the end of the first quarter and 50% by 2nd quarter.
- Achieve market share of 15% of the market share of Tablets by the end of the first 12months after launch.
- To establish iPad as the market leader in the Tablets market by the end of the first 12month period post launch.
12 - SWOT ANALYSIS
12.1 – STRENGTHS
Strong Brand Image: According to the Interbrand rankings for 2009, Apple has improved its brand value from 24 in 2008 to 20 in 2009. Apple’s strong brand image helps them differentiate their products offerings to their consumers as well as increase sales. It also enables them charge a premium price for their products such as the iMac, iPod and iPhone which gives them an edge over their competitors.
Strong financial performance: According to Apple’s first quarter reports for 2010, Apple’s profits increased to $3.38 billion in December 2009 from $2.26 billion a year earlier. Apple sold 3.36 million Macintosh computers during the quarter, representing a 33% unit increase over the year ago quarter. The company sold 8.7 million iPhones in the quarter representing 100% unit growth over the year ago quarter. They also sold 21 million iPods although an 8% decline in sales from the year ago quarter. Strong growth in revenues and cash flows indicates a strong financial position of the company and helps it to strengthen investor confidence.
Highly Innovative: Apple has a strong focus on research and development as continual investment in research and development is critical to the development and enhancement of innovative products and technologies. We can see this with the introduction of the iPhone and now the iPad which is unlike any other of its competitor’s products. In January 2009 Apple introduced the new 17inch MacBook Pro featuring a built in battery that delivers up to 8 hours of use and up to 1000 recharges for more than 3 times the life span of conventional notebook batteries. Strong focus on research and development would lead to market leading and innovative products such as the iPod and the iPhone, thereby enhancing the brand image of the company (Datamonitor, 2009).
12.2 WEAKNESSES
Quality Issues: Apple experiences quality problems from time to time with its products. Apple sells highly complex hardware and software products that can contain defects in design and manufacture. Defects may also occur in components and products the company purchases from third parties and so there is no assurance the company will be able to detect and fix all defects in the hardware and software it sells. According to Melanson, D (2007), Apple admitted to their faulty touch screens on the iPod. This warranted a lot of issues for Apple and made consumers question their ability to develop quality products. Product defects can result in harm to Apple’s reputation.
Patent Infringement: Apple is involved in legal complaints relating to patent infringements. According to Cheung, J. (2009), Apple was found guilty of wilful patent infringement in which they were ordered to pay $19million to Opti Inc, a technology company. They are also involved in other ongoing patent infringement cases. If Apple keeps failing to succeed in these patent infringement cases against them, it can adversely affect their financial condition.
12.3 OPPORTUNITIES
Introduction of the iPad: The introduction of the iPad will see a lot of opportunities for Apple. As a pioneer product they will be able to create a defined market for the iPad which sits somewhere between a smartphone such as the iPhone and a laptop. According to McEntee, C. (2010) , the iPhone application market is estimated to be worth as much as $2.4billion a year while most iPhone applications will work on the iPad. They can see themselves gaining shares in both gaming and portable readers markets.
New Retail stores: Apple opened a total of 247 retail stores which includes 205 stores in the United States and a total of 42 stores internationally. The company has located their stores at busy locations in high quality shopping centers. A goal of the company’s retail business is to expand its installed base through sales to customers that do not own an Apple product. The stores are designed to simplify and enhance the presentation and marketing of the company’s products and services. Apple stores employ experienced and knowledgeable staffs who provide product advice, service and training. By operating its own stores and locating them in desirable locations, the company is better positioned to control the customer buying experience and attract new customers. (Datamonitor, 2009)
Smartphones: The demand for Smartphones is growing rapidly. Increasing demand for PC functionalities is driving the Smartphones markets. Stamford, C. (2009) states that according to the industry forecast, worldwide mobile phone sales declined by 8.6% while smartphones grew 12.7% in the first quarter of 2009. Apple can see a vast amount of opportunities with the iPhone which is a multimedia and Internet enabled mobile phone that has the combination of a mobile phone, a widescreen iPod and the Internet functionalities and applications that support email, web browsing and maps on a mobile phone.
12.4 THREATS
Intense Competition: Apple operates in a highly competitive and rapidly evolving technology industry. They face competition in consumer electronics, personal computers and related software. Rapid changes in technology have resulted in the frequent introduction of new products with competitive prices, features and performance characteristics. Some of their competitors include Microsoft, Dell, Sony, Hewlett-Packard, Toshiba, Acer, etc. As well as these major PC manufacturers they also face completion from mobile phone companies which is a highly competitive market with large well funded and experienced competitors. Intense competition amongst the PC manufacturers has resulted in the price erosion threatening to erode Apple’s market share (Datamonitor, 2009).
Uncertain global economic conditions: Uncertainty in the current global economic conditions poses a risk to Apple as consumers and businesses would postpone spending in response to a negative financial news or decline in income/asset values. Economic slowdown in any major geographic segment of the company would affect its financial performance. E.g. economic slowdown in the US would decrease the demand for Apple’s products and services. (Datamonitor, 2009)
13- AVERTISING STRATEGY
The goal of the advertising strategy is to increase awareness of the Apple brand and the attitude towards the brand and also to build awareness of the newest Apple product: iPad among new category users. It will be used to persuade the competitor’s consumers to switch to the Apple brand by encouraging purchase of the iPad. The advertising strategy will aim to both reinforce Apple image as a leader of innovative technology but also modify it through appealing to a wider less Tech savvy audience, who want the benefits and quality that only Apple’s iPad can bring to them by informing them of why its is a worthwhile purchase.
The Apple iPad is the only Tablet Pc that can provide both men and women in the 20-34 age range of the AB socio-economic group with an impeccably sharp, visually encompassing yet simple to use experience on a personal PC: It uses iPads own 1GHz A4 silicon chip, which gives it amazing processing speed and comes with Touch activated, high resolution 9.7 inch LED backlit IPS display. Using the most innovative technologies, Apple demonstrates it understanding of consumer requirements for PC capabilities.
Targeting the new category users and brand switchers
The strategy also aims to attract New category users by raising awareness of the iPad with the message that demonstrates the iPad's benefits. This will be done by basing our advertising strategy around the “Digital Lifestyle” strategy of Apple and how this would enhance the user’s life. Our advertising strategy will aim to emphasize the functional benefits which will include:
Visualisation aspect: the iPad has a high resolution 9.7 inch LED backlit IPS, which makes the iPad perfect for web browsing, watching movies or viewing photos. The TV advert will demonstrate this from a fantastical mind frame, where the characters who are ‘users’ of the iPad also seem to visualise everyday activities as though they would be carried out on the iPad. Hence the slogan: Once you’ve tried it...Nothing will ever look the same’.
The simplicity of use: touch activated, anything can be done quite easily and simply. The TV advert will aim to demonstrate some of these, such as scrolling through lists, reading, playing games, listening to music, viewing and editing photos and presentations through the activities that are carried out by the characters in the advert.
Sharp in response and Accessible: This will be conveyed to the target audience through the message of simplicity and, the fantastical mind frame of the characters seeing the iPad as bringing them everyday life on that same ‘accessible platform’. Everything is linked back to the iPad and why it is the product to be purchased.
The campaign will make use of other media such as billboards and, the underground tube, and buses targeting people who use public transport a lot. Also the use of both men’s and women’s magazines such as Cosmopolitan, Vogue, Men’s fitness will ensure we capture this audience with our advertising campaign, as the gap between women and men closes year on year with regards to purchase of personal electronics products.
The strategy will also aim to use the Gadget show exhibition in 2011 to advertise the iPad. The goal here is to encourage new category users and brand switchers, who have gained an awareness of the product and developed positive attitude towards the brand, to be motivated into purchase.
Following the product launch, having monitored, measured progress of the advertising effects, we hope to have raised the awareness and brand equity of the Apple brand and the iPad. We will then use in-store advertising, in-store demonstrations and promotions to help both: category users and brand switcher to make the move to purchasing the iPad if they have not already done so.
Targeting brand loyals
Apple is often perceived to have that indefinable “cool” element that the likes of competitors such as Dell and Microsoft lack. We want to keep this element in our advertising strategy, especially since it appeals to our secondary customers: brand loyals. This target group already owns one or more Apple products. At this stage the product will be in the most important stage of being launched into the market. As brand loyals already have an affinity with the Apple brand and its products, the advertising strategy will aim to consolidate this through purchase of the iPad and therefore reinforce brand equity. Tech savvy consumers can be targeted through strategically placing our advert in a carefully selected slot, one main example of this is the Gadget show, which airs on Channel 5 at 8pm. Airing the T.V commercial within the 7.30-11.3pm time period allows us to capture a huge part of our target audience as they are most likely to be at home during this period.
The benefits and features of the product will be familiar to brand loyals as seen on the iPhone for example. Therefore they will easily connect to it and recognise the iPad from the offset. For brand switchers the idea behind the benefits of having the iPad would be the motivation to purchase.
Media such as of outdoor advertising on buses and railways, billboards, and the underground tube will also be used to capture, part of the target audience that travels a lot and makes use of public transport. Here we will aim to emphasize the key benefits of the iPad, directly effecting those individuals by keeping things really simple.
14 - CREATIVE SOLUTIONS
ELECTIC ADVERTISING, have put together a 30 second commercial that will be aired in the 19:00 – 22:00hr weekday timeslots during selected programmes.
14.1 – CHARACTERS AND IMAGERY
The characters in the commercial are portrayed as ‘actual users’ of the iPad, who own and iPad and having had the experience of using the iPad, seem to be set in fantastical mind frame and are going about activities in the daily life as would be carried out on the iPad. The activities carried out are representative of some of activities that can be carried out on the iPad, however the idea was to put across the main benefits of a sharp, visually encompassing yet simple to use Tablet Pc. The scenes’ are representative of how easy the iPad is to use, as a touch screen iPad, no fiddly, right click select, close, copy open, view on a small sensory touch surface as is with most Laptops and Pc.
The commercial shows a selection of activities that can be carried out, but played out in the fantasy minds of Users of the iPad that says their life is as simple an and amazing as a result of the iPad. This activities include, presentations, reading books, editing viewing work/photo, reading, playing games.
The imagery will help both new category users to identify the benefits of the iPad as wella s building awareness of the Apple brand in modifying it so that it says Apple demonstrates it understanding of consumer requirements for PC capabilities and how they would translate to enhancing the the daily lives of the target customers.
Various images will be taken from the commercial and translated to other media formats that will be used as outlined in the advertising strategy.
14.2 - WORDS
The slogan that ECLECTIC ADVERTISING will be using throughout the advertising campaign will be:
“Once you’ve tried it...Nothing will ever LOOK the same.”
The slogan ties in with the concept behind the rest of the campaign in several ways. In the TV commercial the slogan appears after the scenes have been carried out by the characters and before the image of the iPad product comes up. The slogan has an ‘active’ message behind it. This will enable us to achieve our objectives.
The first part of the slogan “Once you’ve tried it....” connects directly with the customer: ‘you’ve’, and then how they could enhance their life by purchasing the iPad: ‘tried’.
The second part of the slogan “Nothing will LOOK the same” emphasises both a benefit of the iPad and also gets the target audience to connect the dots of the concept of the characters mindset regarding the iPad and the activities/scenes in which it is set. Also the word “LOOK” is in capitals and will be utilised throughout our print campaign part of advertising strategy in various ways one example a: ‘T Side’ bus advertisement, starting with the word “LOOK” followed by an image of the iPad and then the Apple logo. In some Print adverts we will only have the word “LOOK”, or “Once you’ve tried it...” and imagery depicting iPads benefits, but without the actual iPad. This is aimed at establishing the product as a memorable in the minds of the target audience. As it will get their attention and they may be able to recall the iPad through recognition and association of words and imagery.
15 - MEDIA SOLUTIONS
15.1 - OUTDOORS
Commuters are a captive audience as they have the time to receive advertising messages. Rail dwell time, for instance, is an opportunity to reach people between work, when they are too busy to receive advertising, and their leisure time, when they don't want to receive advertising. According to CBS Outdoor research, during their journey commuter's mindset is very different to that of a person at home. In this specific moment the commuter mindset is relaxed and more likely to act on ad messaging.
15.1.1 - Tube
The Tube is a high dwell environment, with people waiting on average for 3 minutes on the platform. Sites such as Underground 48 Sheets have an ad recall rate that is 6 times higher than low dwell environments. Moreover, Tube advertising has a strong and positive relationship with the consumer. In fact, 87% of commuters welcome Tube advertising as it provides a welcome distraction during their journey (The London Commuter, 2009) and 79% of commuters have been somewhere, bought something or looked something up as a direct result of Tube advertising (NFO, 2010).
Passenger journeys have increased year on year from 1.04bn (2006/07) to 1.1bn (2007/08), an increase of 5.4% and are set to grow another 40% by 2025 (TfL, 2010). Furthermore, 77% of Inner London residents are Underground users and 75% of Tube travellers are ABC1 (considerably higher than the audience of TV, radio and roadside).
15.1.2 - Buses
Bus passenger numbers have grown 63% in the last decade with almost 7,000 buses in London covering over 700 routes in the city and carrying over 6 million passengers each day (TfL, 2010). Bus advertising is seen on average over 5 times a day (The Road to Enlightenment, 2008) and 73% of London commuters welcome bus advertising (The London Commuter, 2009). Moreover, 63% of the London bus users are ABC1 and 72% of ABC1 in London notice advertising on the outside of buses every week (TGI). We decided to use the Golden T-Side Pack, developed to ensure that a campaign is being seen in the right place at the right time and by the right audience.
15.1.3 - Billboards
The commuter picture is varied across Britain, with a clear divide between London and elsewhere. Only 11% of commuters drive to work in the capital, versus 76% outside. This means roadside billboards are a great way to reach commuters outside London, but rail and Tube advertising are more effective means of communication within the city (Media Week, 2008). For these reasons, the campaign will be exposed on buses, tube and billboards in London, while it will concentrate on billboards outside the city.
15.2 - TELEVISION
In recent years, TV has become a more established element in the media mix, as the proliferation of digital channels provides more effective targeting opportunities for reaching specific audience profiles. Average weekly TV viewing rose to 26 hours and 18 minutes in 2008, up by 48 minutes a day on 2007 (Mintel, 2009).
The following tables represent the audience share of March 2010. Based on this data, and keeping in mind our target audience (16-34 belonging to AB), we decided to place our advert on the Channel4 and E4.
% Age Profile - Network
Source: Channel 4, 2010
% Age Profile - Multichannel
Source: Channel 4, 2010
Channel 4 resonates particularly strongly with young (27% 16-34 profile compared to 24% for average UK adult) and up-market viewers (44% ABC1 profile compared to 41% for average UK adult). Channel 4 has a strong brand image being seen by ABC1 16-44s as being more trend setting, controversial (in a good way), provocative, innovative and ground breaking than any other terrestrial channel. Moreover, our target audience rates Channel 4 as the best terrestrial channel for provocative documentaries, original and best reality TV and mould breaking comedy and its advertising is seen as more relevant than any other terrestrial channel.
E4 is the top converting channel for adults 16-34, women 16-34 and ABC1 16-34s. Through research, we know that E4 viewers are predominantly young and up-market, but they're also fashion conscious, sociable, connected, heavy internet users, they love going out and tend to use advertising as one of their many information sources. They are also likely to be trend leaders, the type of person who will talk to all their friends about a new brands and convince them to try it too. This channel reaches over 8.9m people each month. On top of this it has a young and up-market viewing profile, with 52% of viewers 16-34 and 43% ABC1.
Our campaign will run in the evening slot, from 7pm to 10pm, when our chosen target audience predominantly see television. Moreover, in order to better reach them, we chose to insert our advert in some specific TV programs:
- Opinion Formers (ABC1 Adults) Channel 4
- Volunteer Army (ABC1 Adults) on Channel 4
- Accidentally on Purpose (Adults 16-34) on E4
- Big Brother Grand Finale (Adults 16-34) on Channel 4 and E4
Finally, we will place our campaign on Channel Five during the weekly program The Gadget Show. It is a series focusing on the world of technology, currently in its twelfth series. Originally a thirty minute show, it was extended to forty-five minutes, and currently airs for one hour (including advertisements). Each week, the show previews and reviews the latest gadgets and broadcasts the latest technology news. The show is aimed at giving the mass consumer an insight into the gadget world and in addition, it aims to give enough information for the more "geeky" audience, but still making it accessible to the more casual viewer
15.3 - PRESS
15.3.1 - Magazines
Our advert will be posted on the three top magazines read by woman and men age 20-34 (please refer to table 15 and 16):
Woman:
- Cosmopolitan
- Glamour
- Vogue
Man:
- FHM
-BBC Top Gear
- Sky Sports Magazine
15.3.2 - Newspapers
The advert will also be placed on the main five newspapers read by ABC1 adults (please refer to table 17):
- Daily Mail
-The Sun
- Metro
- Daily Telegraph
- The Times
15.4 - INTERNET
- The Internet’s importance has also grown: rising broadband penetration and popularity of social networking clearly augments the appeal of online advertising. The following is a list of the main websites we want our campaign to run on:
-
- Social networks such as Facebook and Youtube,
-
- Search engines such as Google and Yahoo,
-
- Online newspapers such as The Guardian and The Times,
-
- Online magazines such as Cosmopolitan and FHM.
Moreover, we will place our campaign on two online channels that are part of Channel4 group:
Channel4.com is innovative and entertaining to the core, appealing specifically to 16-34 year olds. From banners to sponsorship via buttons and interstitials to unique content partnerships, it ensures that we will reach our target audience using the very latest advertising technology.
E4.com presents the perfect opportunity to engage with our audience: 11m available E4 viewers, plus 8m non-E4-viewing internet users aged 16-44 e4.com. Through award-winning branding and content, e4.com will increase our brand trust through association and dwell time. Commercially, they offer pre-rolls, leaderboards, banners, overlays, MPU’s and skyscrapers.
16 - BUDGET
In US, Apple advertising expense was $501 million in 2009, $486 million in 2008 and $467 million in 2007 (Apple Inc, 2009); indicating an increase in its annual advertising budget over the years. Using iPod and iPhone examples, we can notice a similar marketing path: heavy spending upfront for awareness; a decrease in reach and frequency to give consumers a chance to buy and experiment; and gradual adjustments to marketing volume as warranted by the sales curve (please refer to the table in the appendix). For instance, when it introduced the iPod in 2001, Apple unleashed an all-out marketing and public-relations campaign, spending $28 million in just three months to demonstrate to users how the device worked. The next year it scaled back spending to $4 million (Business Source Premier, 2007). Similarly, when the iPhone was introduced, Apple spent $10 million in the first quarter, relying heavily on word-of-mouth that has been valued up to $400 million (please refer to table 9).
In order to set up a reasonable budget for UK, we calculated the percentage Apple spend on iPod and iPhone campaigns in US in relation to the total worldwide spending in 2009:
(($30m + $10m)*100)/$501m = $8m
However, this figure represents an average regarding just the first quarter of iPod and iPhone campaigns in US and it doesn’t include inflation. Therefore, we assigned £10m to the first quarter and another £5m to the resting 3 quarters.
Hence, for the iPad campaign we set up a budget of £15,000,000 that follows the general Apple’s marketing path used in previous campaigns. In particular, we will allocate £10,000,000, 60% of the whole budget to the first quarter (September-November), £2,000,000 (14%) to the second quarter (December-February), £2,000,000 (14%) to the third quarter (March-May) and finally £1,000,000 (7%) to the last quarter (June-August).
Furthermore, the budget was splinted among the different chosen media based on the usual Apple’s budget allocation (please refer to table 12).
17 - MEDIA TIMELINE
Based on our advertising strategy and based on the past iPod and iPhone campaigns, we will run our campaign all year round. However, as in the past, the media will have different exposure throughout the year. In particular, following Apple’s marketing path, we are going to heavily advertise on the first quarter in order to awareness and it will slowly decrease in reach and frequency to give consumers a chance to buy and experience the product. The following table is a timeline illustrating the media’s exposure during our campaign.
Legend:
18 - MEASURING EFFECTIVENESS
In order to measure a successful advertising campaign, we will need to look into the following:
- The increase in the amount of iPad’s sold after the first quarter
-
The potential increase in the UK market share of tablet PC’s after the 3rd quarter
- The increase in awareness of the iPad as well as the Apple brand
18.1 - METHODOLOGY
Sales Figures: We would compare sales during and after each quarter of the advertising campaign. By doing this we can then calculate sales achieved per quarter. We would also keep in mind that advertising often has a delayed effect so ad driven sales may not materialise immediately.
Surveys: We would carry out surveys which will help us determine how the consumers feel about the product, their awareness and understanding of the product as well as their intent to buy. An increase in awareness and demand for the product would create a need for more distribution channels. The need for more distribution channels will tell us our advertising campaign has been successful.
Retail Traffic in store: In measuring the effectiveness of our TV advert as well as outdoor and internet advertising we would track retail traffic by counting the amount of people who enter the Apple store. We would ensure we monitor traffic before the advertising campaign begins in order to have a basis for comparison.
Traffic on the Apple website: In measuring the effectiveness of our internet advertising we would be comparing the amount of people who visit our website through software in the Apple web server that generates traffic reports.
18.2 – WHY WE MEASURE
By measuring our campaign effectiveness we would be able to tell if the desired perception about the iPad we intended for its target audience has been achieved. We will do this by measuring it against the objectives we defined in the beginning of the advertising campaign. In measuring the campaign effectiveness it will result in:
- Improved decision making
- An improved campaign
- Cost savings
- Reduced risk
- Accumulated wisdom about the marketing environment.
19 - THE CREATIVE BRIEF
ECLECTIC ADVERTISING AGENCY
Project: New advertising campaign for launch of Apple iPad
Date:
CLIENT: Apple Inc. MEDIA BUDGET:??
PRODUCT: the iPad PRODUCTION BUDGET:??
BACKGROUND:
The iPad is Apple's latest product to be launched into the market. It is a revoluntary product as it is seen as a very bold and ambitious product and unlike a PC or a laptop but comes under the category of tablets. Following recent speculations about the iPad being "just" a larger version of the iPhone we want to show our target audience that the iPad has a lot more to offer and persuade them to be interested in the product as well as encourage purchase. As the economy is recovering from the recent recession and the iPad is being launched in to a highly competitive and rapidly evolving technological industry, it is essential that Apple understand the importance of not cutting back on the advertising expenditure.
CAMPAIGN REQUIREMENT
Attractive visual look of the iPad
TARGET AUDIENCE
The iPad campaign will be primarily aimed at young people in the AB socio-economic group who have the need for fun in their lives. These individuals may have already heard about the iPad and are looking for additional information on the products features and benefits for amplification and verification.
THE SINGLE MOST IMPORTANT MESSAGE WE WANT TO SAY
Once you’ve tried it....Nothing will ever look the same
WHY SHOULD PEOPLE BELIEVE THIS?
Compared to their competitors people believe that Apple products are revolutionary. Apple has always been associated through its advertising as being consistently above average.
TONE OF VOICE
- Down to earth, honest, element of humour
- Dynamic, experienced, exciting, fun, communicative.
MANDATORY REQUIREMENTS
Emphasize the functional benefits of the iPad
WHAT IS THE ADVERTISING INTENDED TO ACHIEVE?
To convince our target audience that the iPad is a must-have gadget.
DESIRED BRAND IMAGE
Cool/Trendy
Quality
Revolutionary
Issued by: Eclectic Agency
Date: 23rd April 2010
Signatures:
Inga Braukylaite
Eferoghene Sakutu
Silvia Calo
Samaira Sabir
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21 – APPENDIX 1
Table 1. Apple’s full products portfolio
Table 2.UK population
Source: Office for National Statistics
Table 3. Apple Competitive Position 2007
Source: http://0-www.portal.euromonitor.com.emu.londonmet.ac.uk/Portal/ResultsList.aspx
Table 4. Top 20 countries by number of Internet users: 2004-2009
Source: Euromonitor International 2010/
Table 5. Employment in the UK
Source:
Table 6. APPLE SWOT ANALYSIS
Table 7. Spend on laptop purchase, by gender, working status, socio-economic group, June 2009.
Source: GMI/Mintel : PCs and Laptops 2009
Table 8. TVR’s February 2010 (Channel 4)
Source: Channel 4, 2010
Table 9. Apple’s \advertising strategy for iPod and Iphone
Source: Business Source Premier, 2007
Table 10. Main media advertising spend on computer hardware, by product brands, 2006-09 (£ ‘000)
* 2009 period covers January to June
Source: Nielsen Media Research/Mintel
Table 11: Total product brands’ main media advertising spend, by media type, 2008
Source: Nielsen Media Research/Mintel
Table 12: Main media advertising spend, by leading product brands, by media type, 2008
Source: Nielsen Media Research/Mintel
Table 13: What appeals to young up-market audiences
Source: TGI, July 08- June 09.
Table 14: Average hours spend on media per day per person
Source: TGI, July 08- June 09.
Table 15: Monthly reach Women 16-34; E4 compared to magazines
Source: BARB/Infosys Jan-Dec 09
Table 16: Monthly reach Men 16-34; E4 compared to magazines
Source: BARB/Infosys Jan-Dec 09 MCH/ TGI Q3 2009, A.I.R
Table 17: Average daily reach ABC1 Adults compared to Film4
Source: BARB (mch homes) & TGI A.I.R., Jul 08 – Jun 09
Table 18: Commuters Survey
Source: CBS Outdoor/Future Foundation - Britain on the Move.
22 – APPENDIX 2
Primary research carried out by the group
To carry out the primary research the survey online has been chosen: . The questioners have been sent via www.facebook.com to unselected group of people. The responses have been analysed, and will be presented in the Advertising Pitch. Moreover the results of the survey had been taken into account and helped the group to achieve better understanding.
22 – GROUP DIARY
- Inga Braukylaite
- Silvia Calò
- Eferoghene Sakutu
- Samaira Sabir
- Stephanie Happacher