Marketing Plan
Table of Contents
EXECUTIVE SUMMARY.......................................31 INTRODUCTION.........................................42 Situation Analysis...................................42.1 Industry Analysis.....................................42.1.1 Bargaining Power of Buyers..........................42.1.2 Bargaining Power of Suppliers.......................52.1.3 Threats of New Entrants.............................52.1.4 Threat of Substitute Products.......................52.1.5 The Intensity of Competitive Rivalry................5
2.2 Marketing Characteristic..............................72.2.1 Political...........................................72.2.2 Economical..........................................72.2.3 Social..............................................72.2.4 Technological.......................................7
2.3 Customer Analysis.....................................82.4 Competitor Analysis...................................82.4.1 Samsung Galaxy S III................................82.4.2 HTC One X...........................................82.4.3 Nokia Lumia 920.....................................9
2.5 Product Offering......................................92.6 SWOT Analysis........................................112.6.1 SWOT Metrics.......................................12
3 Marketing Strategy..................................123.1 Vision and Mission...................................123.2 Marketing Objectives.................................123.3 Financial Objectives.................................133.4 Target Markets.......................................133.5 Positioning..........................................133.6 Broad Overall Strategy...............................14
4 Marketing Mix.......................................154.1 Product Strategy.....................................154.2 Pricing Strategy.....................................164.3 Placing Strategy.....................................174.4 Promotion Strategy...................................174.4.1 Internet Direct Marketing..........................174.4.2 Advertising........................................184.4.3 Sales Promotion....................................18
5 Action plan.........................................186 Financials..........................................20
LB5202 Marketing Management 3
Marketing Plan
6.1 Break-Even Analysis..................................207 Control Procedures and Contingency Planning.........218 Works Cited.........................................22
LB5202 Marketing Management 4
Marketing Plan
EXECUTIVE SUMMARYIPhone has been holding the majority of Singapore
smartphone market shares for a long time but recently the
growth is slowing down. The main problems are the
newinnovative products fromcompetitors, and slow
population growth in Singapore. In order to defense and
expand our market, we need to take our competitors'
market shares and extend our product line by
differentiation and innovation. Our consumers have great
spending power so we should consider extending to premium
market.
IPhone6 is designed for these purposes. Its major
differentiated and innovative features are laser keyboard
and projector, near field communication and wireless
solar charging. This product target to male or female who
have brand conscious with age from 15-34 in people who
thinks their product should have a best quality and
luxurious in their consideration. The product price is
set base on its value, innovative features, strong brand
equity and premium image therefore the retail price is
SGD1,068 , quite high when compare with other products on
the market. It will be distributed intensively through
the large Apple store chains, and Apple online stores.
The promotion program message will be on convenience and
innovative features of the IPhone6. The promotion mix for
this campaign includes advertising, public relations,
sales promotion, direct and online marketing. The
LB5202 Marketing Management 5
Marketing Plan
campaign will start with a 3-month teaser period followed
by an intensive 6-month period starting from the launch.
Afterwards we will reduce the intensity and frequency for
the next 4 months. The total marketing budget for this
project is about SGD30 million. This product’s breakeven
point is expected to be SGD 36,306,660. With this
product, we target to seize 3% market share at the end of
first year.
LB5202 Marketing Management 6
Marketing Plan
1 INTRODUCTION
Apple Inc. is an American multinational corporation
that was found in 1976 by Steve Jobs and Steve Wozniak in
order to designs, develops, sells consumer electronics,
computer software and personal computer. Apple is the
world’s third largest mobile phone maker after Samsung
and Nokia. IPhone is well known as a line of smartphones
designed and marketed by Apple Inc. In January 2012, 53%
of Apple Inc.’s revenue comes from sale of 37 million
IPhones (Apple Inc., 2012).
Nowadays, with the development of technology and
communication, people require more functions in mobile
phone rather than just calling, sending and receiving
text message. They need the mobile phone that can play
music, games, capture images, access to Internet, and
show the video.
By catching the people want and need, Apple will
launch the new IPhone, which is IPhone6. Within this
marketing plan, we will know more the detail about the
Situation Analysis in Singapore, Marketing Strategy,
Marketing Mix, Action Plan, Financial, Control Plan and
Contingency Plan.
LB5202 Marketing Management 7
Marketing Plan
2 Situation Analysis2.1 Industry Analysis
2.1.1 Bargaining Power of Buyers
Apple Inc. has a great successfully winning in
smartphone market share based on the charming appearance
design and specially control button “a central click
wheel”. Nowadays, IPhone has many advanced technologies
including multi-touch screen, intelligent keyboard and
advanced Mac operation system (OS).
The most usual factors to determine the bargaining power
of customers are their size and concentrations. In our
market segmentation, many young people are using our
product due to a lot of specially features of IPhone.
However, some big smartphone manufactures have already
announced the new products to against IPhone such as LG
optimus, Nokia Lumina, Samsung Galaxy. Therefore, the
availability of subtitles is extremely high. The
customer’s price sensitivity is high; the local culture
impact is high. All of these factors play a decisive role
in marketing the bargain power of customer high.
2.1.2 Bargaining Power of Suppliers
In our company, the suppliers are the chipmakers and
touch-sensitive display producer. Apple Inc. has many
good relationships with many chipset produce
manufactories for long time including Intel, Samsung and
Micro Technology. Therefore, the bargaining power of
suppliers is quite low.
LB5202 Marketing Management 8
Marketing Plan
2.1.3 Threats of New Entrants
The threats of new entrants mostly depend on the
barriers to entry in a market. Apple already registers
their own patent for the IPhone to obtain government
policies protection. The retaliation from the existing
mobile phone manufactories is so aggressive when a new
entrant comes to the market. Most of the traditional
smartphone manufactures like LG, Samsung, HTC, Nokia, and
LG will start to launch the new products to against
IPhone. However, there is a factor that plays an
important role for the development of IPhone is it’s
strong Brand equity. It may be easy for a new entrant to
come to the market, but it will be difficult for them to
build a strong brand like Apple to approach customer
successfully. Apple also has loyal fans, which will not
easy to switch to another similar product once the
customers have been use IPhone. For these reasons, the
threats of new entrants are medium.
2.1.4 Threat of Substitute Products
Nowadays, there are many traditional mobile phone
manufactures on the smartphone market, so that IPhone
will not have the mobile market share easily. For
example, Samsung with the Galaxy lines, LG with the
Optimus lines is now the strong competitor with IPhone.
Therefore, the threat for IPhone of being substituted by
other mobile devices is extremely high.
LB5202 Marketing Management 9
Marketing Plan
2.1.5 The Intensity of Competitive Rivalry
This force takes into account the other four forces
(buyer, high, suppliers, low, new entrants, medium,
substitutes, high) and several other factors. Some of
them play in favor of the competitive rivalry intensity,
like the high number of competitors, high market growth
and high possibilities of industry shakeout.
Nevertheless, there is one more factor, which makes the
industry less competitive including the brand equity and
expensive switching costs. Above those reasons, the
intensity of competitive rivalry is medium high in
IPhone’ s market.
Figure 2.1: Five forces analysis
LB5202 Marketing Management 10
Marketing Plan
In conclusion, Apple Inc. is a big company in
smartphone market share. However, because of the high
competitive market, the bargaining power of the customer
is quite high and the threats of substitute product are
very big. On the other side, due to the good relationship
with suppliers, the bargaining power of suppliers with
Apple Inc. is quite low. Furthermore, the threats of new
entrants in smartphone market share is medium because
Apple Inc. company already create a big barrier for new
entrants due to their patent register and high demand.
Therefore, beside the difficult and barriers that Apple
Inc. may encounter, it also have many advantages in
smartphone market because of its strong brand equity,
loyal customer and good relationship with suppliers.
2.2 Marketing Characteristic
2.2.1 Political
Singapore is a country with stable political system
(The Economists, 2011).It is a business-friendly country
with free market economic system and ranked number two in
"The Global Competitiveness Report 2011-2012" (Schwab,
2011). The country has recently tightened the policies to
limit foreign workers (Channel News Asia, 2011).It will
lead to slower population and economic growth.
2.2.2 Economical
The country has high GDP, SGD 63,050 GDP per capita
in 2011 (Singapore Department of Statistics, 2012). High
GDP means that quality and reputation are more important
LB5202 Marketing Management 11
Marketing Plan
than price in purchasing decision-making process.
Surviving the financial crisis with little impact is a
prove that their economic system is stable which gives
people a sense of security, allows them to splurge to
attain a higher living standard.
2.2.3 Social
Singapore is a country with vast cultural diversity.
The total population is about 5,200,000 in 2011.
Population growth is positive but slow in the last decade
(Singapore Department of Statistics, 2012). Singapore has
high literacy rate, 79.9% were literate in English by
2010 (Singapore Department of Statistics, 2010). High
literacy rate indicates that Singaporeans are
sophisticated consumers with high standard demand and
good access to information. Recent consumer trends are
health-consciousness and eco-friendliness.
2.2.4 Technological
Boston Consulting Group's survey on most innovative
country ranked Singapore at number one (Einhorn, 2010).
Singapore is a tech-savvy nation where smart phone
penetration rate placed third in the world (Kang, 2011).
Smartphone is a promising marketing media but it required
great creativity and hook development to utilize this
media efficiently.
2.3 Customer AnalysisUsually the decision of buying IPhone comes after a
lot of attractive advertisements and promotions,
LB5202 Marketing Management 12
Marketing Plan
following the fashion of Apple’s culture and even its
social impacts. Reason for buying IPhone will be the
stunning design from inside technology to outside shell.
Putting them together, IPhone intends to be more than
just a new hand set with a cool touch screen, which
cannot be replaced by any other phones. Generally, target
customers will be the one who are always seeking new
technologies, following fashion trends and promising to
be the much desired social influences in next-gen mobile
media and commerce. There is already a certain group of
customers being Apple’s fans always buying Apple product.
Young people with enough money, business or government
men and celebrities might be the majority of participants
for buying IPhone.
2.4 Competitor Analysis
2.4.1 Samsung Galaxy S III
Samsung Galaxy S III is the smartphone that has been
successful after replacing the previous models and has
been recognized as one of the powerful smartphone on the
market. It was launched on May, 2012 but it does not mean
that it has become obsolete – 20 millions Samsung Galaxy
S III has been sold in 100 days (Dobie, 2012), which is
close to the number of all IPhone sold in the same
period. Furthermore, Samsung Galaxy S III has everything
that smartphone users always need: a fast quad-core
processor, 2100 mAh battery and the latest version of
Android with Touch Wiz Nature Ux. As this brand has very
LB5202 Marketing Management 13
Marketing Plan
high brand awareness and is also famous for its features,
this phone can be a substitute product of IPhone.
2.4.2 HTC One X
HTC One X was released around the same time with the
Samsung Galaxy S III, but it still is one of the most
popular phones on smartphone market. It is equipped with
a 4.7 inch display screen and quad-core CPU 1,5 GHz
speed. Furthermore, it has a very competitive price,
especially if buy by the contract. Therefore, it could be
competitive competitor of IPhone due to its lower price
when they have almost the same features and technologies.
2.4.3 Nokia Lumia 920
According to the latest survey of organization
WPcentral, Nokia Lumia 920 is the windows phone 8 that
are the best option at this time (Rubino, 2012). It is a
smartphone with attractive design, a dual core processor
1,5 GHz Krait, 4,5 inch touch screen with a resolution of
768 x pixels 1280, equipped with 8 MP camera. Nokia Lumia
920 which is good in its design and brand equity, it can
be a setback for IPhone, especially with its strong Nokia
community
2.5 Product Offering
To accomplish the demand from loyal customer about
an extraordinary phone, The New iPhone, will be called
iPhone6, will come out with some amazing feature such as:
LB5202 Marketing Management 14
Marketing Plan
Laser Keyboard and Projector. As described, The
IPhone6 will be come out with two side laser
sources. One side is for the keyboard. The beam that
comes from the source will illuminate the flat
material, such as table, then show the virtual
keyboard, and we can ready to type from there.
Another side is for the projector that the ray is
emitted into the wall then displaying as same as
displayed screen.
Near Field Communication (NFC). Based onNFC Forum
(2012), NFC is technology to makes life easier and
more convenient for consumers around the world by
making it simpler to make transactions, exchange
digital content, and connect electronic devices with
a touch.
Wireless Solar Charging. Here is an observation that
conducted by (Tanous, 2012)about IPhone’s battery
life performance:
LB5202 Marketing Management 15
Marketing Plan
Figure 2.2. IPhone battery Life Comparison (Tanous, 2012)
The battery life that apple claim was different with
the actual happens, to overcome this problem happens
continuously, the iPhone will be released with solar
charge in the handled and wireless solar charging
device.
LB5202 Marketing Management 16
Marketing Plan
2.6 SWOT AnalysisStrengths
High brand equity Strong management and
marketing teams Strong financial base,
large budget for R&D and PR.
Intensive distribution channel
Economics of scale advantage
Apple store has many application
There is no virus on IOS
Good relationship with suppliers.
Has a high reputation
Weaknesses High price The design was not
changed to much recent years
IPhone was produced oneper year, difficult to keep customer when others manufacturers released products frequently.
Opportunities High demand on
telecommunication devices of customers
Have loyal customer whonot easy to change fromIPhone to other phones
New media and distribution channels which marketers can exploit
Opportunity to seize and strengthen market share by introducing products with innovative features.
Threats Mature market where
market size remains relatively constant
Competitors could enterat any time.
There are many substitute products available in market.
The competition betweeniOS and Android and Windows 8 mobile
LB5202 Marketing Management 17
Marketing Plan
Table 2.1 SWOT Analyses
2.6.1 SWOT Metrics
Opportunities Threats
Strengths Making new iPhone based on customer needs
Making new IPhone with the newest technologies
Buy back program (exchanging the old phone with the new phone and paying forlower price)
Creating the barrier with competitor through advertisements
Lowering app’s price and making better apps
Weaknesses Research what customer wants for the new IPhone design
Creating powerfulPhone(unique, manyfeature, design, OS)
Giving discount to the loyal
LB5202 Marketing Management 18
Marketing Plan
members
Table 2.2 SWOT Metrics
In conclusion, by knowing the internal (Strengths
and Weaknesses) and external (Opportunities and Threats)
characteristics of IPhone, the strategy that can be
applied are creating the new IPhone based on customer
need that actually is higher technologies embedded.
Moreover, to deal with the loyal consumer, giving
promotion and discount should be considered.
3 Marketing Strategy
3.1 Vision and MissionApple IPhones Singapore missions are to be leading
market share of smartphone and furthermore becoming true
smartphone that enhances user experiences through high
technology in both hardware and software.
3.2 Marketing ObjectivesThe marketing objectives are divided into three
phases:
First phases is pre-launched, it will be run in
the four months before the IPhone6 will be
released. In this step, the advertisement
division will spread some trailer of the IPhone6
in social media such as YouTube because nowadays
people are more responsive of any new things on
the Internet. However, the features and
LB5202 Marketing Management 19
Marketing Plan
hardware will still be kept until the launched
date.
The second phase, whereas the launched month
and also the first quarter, The IPhone6 will be
released in authorized seller and bundled
package because of the limitation of production.
Then, in the third phase, IPhone6 will be sold
on online ordering and estimated will gain
almost 50% target market, whilst the new IPhone
is developing in the end of quarter three.
3.3 Financial ObjectivesBy following the previous IPhone’s sales cycle that
launched in Q4, The IPhones6 will be issued in the middle
of October. The first quarter will be sold 10% of total
target market and significantly rising in Q2 and Q3 by
25%, 15% respectively. In the middle of Q2 is forecasted
will be break event point due to the low cost of material
and high profit taken.
3.4 Target MarketsThe target market for IPhones6 is people between the
ages 20 and 34 who love entertainment in their gadget,
use frequently their phone, need much information and
also socialize with others. These might refer to student,
professional working and socialite. The household
incomes for these consumers are above S$ 36,000 annually.
This product will be sold particularly in Singapore,
which has population around 3,789,300 people in 2011
LB5202 Marketing Management 20
High Prices
Low Prices
High Technologies
Low Technologies
Apple IPhone6
Samsung Galaxy S III
Nokia Lumia 800
Nokia Asha 302
Blackberry Torch 9800
Marketing Plan
where male’s population was 1,861,100 people, and woman’s
population was 1,190,600 people (Department of Statistics
Singapore, 2012).
3.5 PositioningOver period of time, Apple Inc. has leaded the mobile
phones competition. By providing powerful technologies,
the latest Iphone5 16GB costs S$ 948 (Apple Inc., 2012)
whilst other competitor was below that price, Apple Inc.
convince that the product that it launched is
sophisticated and prestigious. Here is the position of
iphone6 towards it competitors:
LB5202 Marketing Management 21
Marketing Plan
Figure 3.1. Positioning of IPhone6 towards
competitors
3.6 Broad Overall StrategyThe strategy of the IPhone6 is customer-based center.
Knowing people needs and wants is the value for this
product. So that, by giving slightly high price than the
competitors, IPhone6 will still be the first position in
the consumer’s heart. By analyzing the internal and
external factor, The IPhone6’s strategies are:
o Launching the powerful IPhone6 that are unique,
user-friendly design, simple operating system
and considerable features and applications.
o Making promotion for loyal member through giving
discount and buy-back program.
LB5202 Marketing Management 22
Marketing Plan
4 Marketing Mix
4.1 Product StrategyBased on Cuccureddu (2011), the product strategy is
divided into three parts, which are core value product ,
actual product and augmented product.
Figure 4.1. Three level of Product (Cuccureddu, 2011)
Here is three levels of prodcut for the IPhone6 based
on the explanation above:
Core Value Product:mobile phone that covered by
entertainment and simplicity.
Actual Product:
o Brand name : the new IPhone will come out
with the name IPhone6
o Feature:
LB5202 Marketing Management 23
Marketing Plan
Colour : White, Black, and the new
colour Red
Capacity : 16GB, 32GB, 64 GB
Cellular and Wireless :GSM model A1429
: UMTS/HSPA+/DC-HSDPA(850, 900, 1900,
2100 MHz); GSM/EDGE (850, 900, 1800,
1900 Mhz); LTE (Bands 1, 3, 5),
802.11a/b/g/n Wi-Fi (802.11n 2.4GHz
and 5GHz), Bluetooth 4.0 wireless
technology
Display : Retina display with Gorilla
Glass
Camera : 13-megapixel(back), FaceTime
HD camera with 2MP Photos, Autofocus,
image stabilisation, LED flash, and
face detection
Power and Battery : Built-in
rechargeable lithium-ion battery,
charging via USB to computer, charging
via wireless adapter
Sensor : accelerometer, proximity
sensor, ambient light sensor
Other : two side projector, NFC
Augmented Product:Offering customer with one
year warranty, free upgrading the latest iOS,
24/7 hours customer service that provided in
Singapore and buy back promotion for the old
iPhone
LB5202 Marketing Management 24
Marketing Plan
4.2 Pricing StrategyBy learning the loyal member needs and demands of the
new IPhone, We apply the value based pricing because we
believe that the values that are given to consumers are
proper. It is also supported by packaging design. The
IPone6’s packaging will be different from the old one,
which is more exclusive than the previous. It will add
the customer prestige when buying the IPhone6. So that,
besides increasing the value of consumer but also we
concern about competitors prices.
Moreover, the price tactics that we will apply are
psychological price and anchoring price (O'Farrell,
2013). We will charge S$1068 for the IPhone6 instead of
S$1070 because it will attract people think that
IPhone6’s price is not that higher. On the other hand, we
apply the anchoring price it is mean that beyond the
$1068 is too expensive and also making the IPhone6 itself
become luxurious phone.
So, the IPhone6 will be sold from S$1068 each. The
price will be higher than the competitors because of the
explanation above.
Brand IPhone6 Samsung
Galaxy S
III
Nokia
Lumia 920
HTC One X
Price Start from S$800 S$800 S$710
LB5202 Marketing Management 25
Marketing Plan
S$1068Table 4.1 Price Comparisons (Mobile Square, 2013)
4.3 Placing StrategyBy following the market objectives that explained in
Market Strategy, we will apply selective place
strategies. It intends to keep exclusive our brand so
that we do not sell it on the common mobile phones store.
We actually can apply exclusive strategy by selling the
IPhone6 in the authorized shop only, but we know the
desire of people to buy the new IPhone is high, so we
will provide also in bundling price that collaboration
with Telecommunication Company. There are three places to
be seller of the IPhone6, which are:
Authorized Reseller: Infinity, EpicCentre, IStudio,
Telecommunication Company: SingTel, M1, Star hub
Apple Singapore website: www.apple.com.sg
4.4 Promotion StrategyOur promotion objective is getting attention from the
targeting market, which are people ages 20 – 34 years
old. By getting attention we can offer our IPhone6 and
introduce the features, design, and functions of the
IPhone6. We will apply Pull strategy marketing; it
intends to get demand from customer to ask about the
IPhone6. Several channels that will be used are:
LB5202 Marketing Management 26
Marketing Plan
4.4.1 Internet Direct Marketing
To introduce the new IPhone6 to public, first by
using Internet technology, we share our teaser video
about IPhone6 in the YouTube and some social media. It
implies to tell people that the IPhone6 will be come out
soon. Then, we also will tell the member that have Apple
product before, we will send email to them based on the
email that they registered in Appstore.
4.4.2 Advertising
IPhone6 will be advertised in several magazines,
particularly in mobile phone segment, and newspapers.
This intended to raise the brand awareness and let people
know that the IPhone6 will be sold soon.
Beside Pull strategies, we will also apply push
strategy; it means that we give discount to retailer so
that they can give cheaper price to customer. We will use
push strategy by implement sales promotion.
4.4.3 Sales Promotion
The way we give discount on customer by giving them
chance to exchange their old phone with the IPhone6. We
make promotion by buy-back program. We give attractive
price so that people can just leave their old phone and
get IPhone6 with reasonable price. By giving ease to
people, so people can easily buy the IPhone6 and the
sales of IPhone6 can achieve the marketing objectives.
We will put this program on the advertising also and on
the apple official website which is www.apple.com.sg.
LB5202 Marketing Management 27
Marketing Plan
5 Action plan
Timeline CostJuly 2013 – October 2013
Start teaser campaign for Nescafe Decaf Tablet launch date:- TV ad: on listedchannels in Promotion Marketing Mix withteaser ad- Print ad: on listed newspapers,buses, bus stops, MRT trains, stations and around CBD area with teaser ad
SGD 800,000/month for TV ads (30 secads on 10 channels, 3 times/day primetime) SGD 400,000 for newspaper ads (Half page ads in 2 daily papers) SGD 400,000/month for bus advertisements (200 buses)SGD 160,000/month for bus stop ads (200 stops)SGD 30,000/month for MRT advertisements (20trains)
October 2013 – March 2014
Start main marketing campaign:- Start sampling activities in-store and around CBD area (10 groups, sampling group will stay for 3 days at 1 place than switch to other places)- TV ad: on listedchannel with main campaign ad - Print ad: on listed newspaper, buses, bus stops,
SGD 800,000/ monthfor TV ads (30 secads, on 10 channels, 3 times/day primetime) SGD 400,000/newspaper ads (Half page ads, 2 daily papers) SGD 400,000/month for bus advertisements (200 buses)SGD 160,00/month for bus stop ads (200 stops)
LB5202 Marketing Management 28
Marketing Plan
MRT trains, stations and around CBD area with main campaignadsStart sales promotion period-Advertising on Apple Inc website
SGD 30,000/month for MRT advertisements (20trains)
January 2014 – February 2014
Do market researchto get feedback from customer
SGD 1000
February 2014 – March 2014
Give accessories for customers who buy Iphone in someevents to increasesales
SGD 5000
January 2014 Send out press conference invitationsInvite 5 reportersfor press trip
SGD 3,500 for press trip
April 2014 – August 2014
Reduce intensity and frequency of campaign:- News articles: on listed TV channels and newspapers- TV ads: on listed channels- Print ad: Newspapers: on listed newspapers Buses, bus stops, MRT stations and CBD area: reduce the number of ad carriers by at least half
SGD 84,000/month for TV ads (20 secads, on 4 channels, 1 times/day) SGD 80,000 for newspaper ads (Half page ads, in1 daily papers,2 times/week)SGD 145,000/month for bus advertisements (50buses)SGD 40,000/month for bus stop ads (50 stops)SGD 15,000/month for MRT
LB5202 Marketing Management 29
Marketing Plan
advertisements (10trains)
Table 5.1. Action Plan for IPhone6
Total marketing budget for this campaign is SGD 29,220
6 FinancialsSingapore population is about 5,200,000, around 88%
are Smartphone users and IPhone is holding 73% market
share in Singapore. Total IPhone market size is around 3
million people. We assume that the average price of
IPhone6 is S$1,068 per unit, and average per unit
variable cost is S$185.50 while the fixed cost per month
is about S$30,000,000
We plan to increase our market share 3% in the first
year, and maintain this market share at second year and
third year by leveraging brand name, utilizing the
extensive market reach of IPhone, through innovative
advertisements, innovative features and promotions.
Hence, we are reasonable confident of gaining this market
share.
6.1 Break-Even AnalysisThe break-even analysis indicates that S$ 36,306,660
is needed in sales every month to reach the break-even
point.
LB5202 Marketing Management 30
Marketing Plan
Figure 6.1. Break Even Point
Table 6.1. Break-even analysis
7 Control Procedures and Contingency
PlanningExecution Time
Objective Methods of control
Details Contingency Plan
Jan 2014
70% of customer feedback that IPhone is goodIncrease Loyal customers
Polls, survey in supermarket
Surveys onApple Stores Singapore official website and Facebook fan pageIn person at supermarket
Identify andanalyze the result of research, especially negative feedbacksMake recommendation to adjustmarketing
Monthly Sales Collecting Working If sales are
LB5202 Marketing Management
35000
30000
25.000
20.000
15.000
10.000
5.0000 $ 5.340 $ 10.680 $ 16.020 $ 21.360 $ 26.700 $ 32.040 $ 37.380
U
nit
Revenue (in 000)
Break-even analysis:Monthly Units Break-even 33.995Monthly Revenue Break-even $ 36.306.660
Assum ption:Average per-unit revenue $ 1.068Average per-unit Variable Cost $ 185.5Estim ated Monthly Fixed Cost $ 30.000.000
31
Marketing Plan
starting Feb 2013
growth 0.25%(of market share) permonth
data and analyzing from sales results
with distribution channels to monitormonthly sales figures
going down, make market research to figure out why target consumer don’t buy the productRevise the marketing mix to see what needs to be improved
Monthlystarting Feb 2013
Actual marketing budget is within planned budget
Monthly check the cost and revenue
Closely track all expenses that includes advertising, market research to personnel cost minimize spending and maximize profitability
Identify anyexpenses beyond the budget and make changesaccordingly to cut unnecessary spending
Mar 2014
Increase market share by 3% by end of first year
Tally the sales between ourproducts and competitorssales
Work with research agencies and insiders to get necessary figures.
If the increase is far below expectation,make a plan to analyze competitor and make a revised planto improve the market
LB5202 Marketing Management 32
Marketing Plan
share
Table 7.1. Control Procedures and Contingency Planningfor IPhone6
8 Works Cited
Apple Inc. (2012). Apple. Retrieved from http://store.apple.com/sg/browse/home/shop_iphoneApple Inc. (2012, January 24). Apple Press Info. Retrieved from http://www.apple.com/pr/library/2012/01/24Apple-Reports-First-Quarter-Results.htmlChannel News Asia. (2011, August 14). Channel News Asia. Retrieved from Channel News Asia: http://www.channelnewsasia.com/stories/singaporelocalnews/view/1147002/1/.htmlCuccureddu, G. (2011). Co-creation And The Impact On The Three Levels of Product. Retrieved from Business Insider: http://www.businessinsider.com/co-creation-and-the-impact-on-the-three-levels-of-product-2011-9Department of Statistics Singapore. (2012). Time Series on Population. Retrieved from Singapore Statistics: http://www.singstat.gov.sg/stats/themes/people/hist/popn.htmlDobie, A. (2012, September 6). Android Central. Retrieved from Android Central: http://www.androidcentral.com/samsung-sells-20-million-galaxy-s3-phones-first-100-daysEinhorn, B. (2010). Bloomberg Businessweek. Retrieved from Bloomberg Businessweek: http://images.businessweek.com/ss/09/03/0312_innovative_countries/3.htmKang, J. (2011, May 24). Digital Matters 2011. Singapore,Singapore.Mobile Square. (2013). Retrieved from Mobile Square: http://mobilesquare.com.sg/NFC Forum. (2012). About NFC. Retrieved from NFC Forum: http://www.nfc-forum.org/aboutnfc/O'Farrell, R. (2013). Pricing Strategy & Pricing Tactics to Be Used for Your Product. Retrieved from Small Business:
LB5202 Marketing Management 33
Marketing Plan
http://smallbusiness.chron.com/pricing-strategy-pricing-tactics-used-product-10296.htmlSchwab, K. (2011). The Global Competitiveness Report 2011-2012. Geneva, Switzerland: World Economic Forum.Singapore Department of Statistics. (2010). Retrieved from http://www.singstat.gov.sg/pubn/popn/c2010sr1/findings.pdfSingapore Department of Statistics. (2012, February 16). Singapore Department of Statistics. Retrieved from Singapore Department of Statistics: http://www.singstat.gov.sg/stats/themes/economy/hist/gdp.htmlSingapore Department of Statistics. (2012, September 4). Singapore Department of Statistics. Retrieved from Singapore Department of Statistics: http://www.singstat.gov.sg/pubn/reference/mdscontents.html#PopulationTanous, J. (2012). iPhone 5 Battery Life Reduced Due to LTE Signal Strength. Retrieved from macobserver: http://www.macobserver.com/tmo/article/iphone-5-battery-life-reduced-due-to-lte-signal-strengthThe Economists. (2011, May 16). The Economist. Retrieved from http://www.economist.com/blogs/banyan/2011/05/singapore_politics
LB5202 Marketing Management 34
Top Related