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1. Sung Hyun Lee ∙Meherun Binte ∙ Seung Woo Chae

2. Index
• Introduction
External Analysis
Internal Analysis
Theories
Models
Conclusion

3. Introduction External Analysis Internal Analysis Theories Models Conclusion
APPLE, the name of Innovation

4. Introduction External Analysis Internal Analysis Theories Models Conclusion
The early Years Without Steve Jobs Open New Era
Established by Ste
ve Jobs, Steve Woz
niak, and Ronald Wa
yne Steve Jobs Left
1976 1984 1986 1999 2001 2007 2010-2011
First Macintosh
Steve Jobs Back

5. Introduction External Analysis Internal Analysis Theories Models Conclusion
Consumer Analysis
• Innovators and early adopters
• both men and women aged 18-34
• technology enthusiasts
• not afraid to try new thing
• People who use cell phones for work
• highly educated and will respond well to detailed
information in the advertising
• Cell phones are becoming a necessity for the age group
• Want products that are affordable, compact and stylish

6. Introduction External Analysis Internal Analysis Theories Models Conclusion
Competitor Analysis
iPhone differentiation
10
Score (10 = highest)
8 iPhone
6 Blackberry
Pearl
4
Motorola
2 RAZR
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Factors of Competition

7. Introduction External Analysis Internal Analysis Theories Models Conclusion
Target, segmentation and Positioning Analysis
• Three pillars as market segments to target
Staying-
Convenience Entertainment
connected
• Age 25-54 • Age 18-25 • Age 20-40
• Primarily • Mixed • Primarily
male Gender Female
• Higher • Budgeting • Hold Family
salaries Skills Dear
• Multitaskers • Trendsetters • Tech Savvy
• On-the-go • Educated • First to go
• Goal home
Oriented

8. Introduction External Analysis Internal Analysis Theories Models Conclusion
Market Positioning
Leaders
Up-and-Coming/Niche RIM
Decling Leaders
Apple
Palm
Samsung
New/Undeveloped Eroded/Commoditized
HTC Sony
Nokia Ericsson
DELL
HP

9. Introduction External Analysis Internal Analysis Theories Models Conclusion
4P Analysis
• Pricing
– Skimming strategy
• Set the base model at a cheap price of $349
• A more advanced model for $399
– Special limited edition beatles iPhone for special prices
– Lower our prices to ensure that market dominance
• Product
– Full year warranty along with an optional three-year Apple Care
warranty
– Same taste as all other Apple products
– Special edition version to be launched (Beatles edition)
– Launching a cheaper version in 2008 with less advanced
features along with a more advanced version for professional
use
– Adding the following features to the iphone(large disk storage
capacity, lower weight, thinner device, long battery life, 4G
wireless, GPS and improved camera)

10. Introduction External Analysis Internal Analysis Theories Models Conclusion
4P Analysis
• Place
– Major retailer
– Online, showrooms, cell phone providers
– Apple stores , website
– Eye catching displays
– iPhone on display a full month before its worldwide release
• Promotions
– Integrate Apple message

11. Introduction External Analysis Internal Analysis Theories Models Conclusion
SWOT Analysis
strengths weaknesses
Style/Brand Sensors No UMTS High price / high end
User base Limited distribution channels
First mover
Rich UI
Unsafe for
Hype Missing features
corporate use?
Migrate people to Apple
Similar devices
Port existing apps Highly developed market
New social device
Distribute iTunes content
opportunities threats

12. Introduction External Analysis Internal Analysis Theories Models Conclusion
Competitor Analysis
• Death Grip Problem
- Apple face to a quality problem when they launched iPhone4, even people
always think Apple’s quality is better than others
- Therefore, customers feel Dissonance, so many customers
blame Apple more harshly and discouraged with big contrast.
If there’s no expectation about iPhone, maybe Apple didn’t face that big criticism.
However, the loyal customers of Apple
Even this controversy happened, some customers don’t care and blame about the
Death Grip problem. Because, even their satisfaction didn’t reach to 100%, when
it reach into the latitude of acceptance, they just perceived it as 100%
(Assimilation-Contrast Theory)

13. Introduction External Analysis Internal Analysis Theories Models Conclusion
Application of theories
Apple’s Customers evaluate
Positioning worse than real problem
Contrast Theory
General Negativity Theory
Customers’ Dissonance!
Expectation
Customers evaluate
better than real problem
Antenna Assimilation-Contrast Theory
Quality Social Judgment Theory
Problem

14. Introduction External Analysis Internal Analysis Theories Models Conclusion
Fishbein Model for iPhone
Apple’s Customers evaluate
Positioning worse than real problem
Contrast Theory
General Negativity Theory
Customers’ Dissonance!
Expectation
Customers evaluate
better than real problem
Antenna Assimilation-Contrast Theory
Quality Social Judgment Theory
Problem

15. Introduction External Analysis Internal Analysis Theories Models Conclusion
Diffusion of Innovation
• Theory: It is a theory to explain how, why, and at what rate new ideas and technology spread
through cultures

16. Introduction External Analysis Internal Analysis Theories Models Conclusion
Diffusion of Innovation
How did iPhone overcome th
e chasm?
Media Mix
Point of Cha
sm

17. Introduction External Analysis Internal Analysis Theories Models Conclusion
Diffusion of Innovation
• Five influencing factors for the adoption (Roger’s
5 factors)
– Relative advantage
• Faster, more powerful and useful
• Full size screen
• Fast and reliable Internet access
• Outlook of the iPhone
• Referrals, advices, word of mouth and brand loyalty.
– Compatibility
• Replace of many technologies that participants.
• Not disruptive for replacing the old phone

18. Introduction External Analysis Internal Analysis Theories Models Conclusion
Diffusion of Innovation
– Complexity
• User-friendly
• Already familiar interface with ipad.
• Simple design
– Trialability
• Using friend’s iPhone
– any prejudices and worries soon disappeared.
– Reinforce participants’ purchasing decision.
– Observability
• Led some participants to actively seek more information regarding
the iPhone
– Apple homepage and user forums
– Apple store and other stocked place
– Promotional ads and user videos on youtube

19. Introduction External Analysis Internal Analysis Theories Models Conclusion
Disposition Theory
People always think everything about Apple is originated
from Steve Jobs’ decision. So, even his personal thing is
deeply concerned with Apple’s marketing, like his health.
Steve Jobs is not just a CEO, but Apple’s image, itself.

20. Introduction
Branding External Analysis InternallAnalysis Theories Models Conclusion
Branding
“With quarterly revenue growth of 83 percent
and profit growth of 95 percent, we’re firing on
all cylinders,”
“We will continue to innovate on all fronts thro
ughout the remainder of the year.”
Steve Jobs, Apple’s CEO

21. Introduction External Analysis Internal Analysis Theories Models Conclusion
ACSI Model
The American Customer Satisfaction Index (ACSI) is an economic indicator that measures the satisfaction of consume
rs across the U.S. economy. The ACSI interviews about 80,000 Americans annually and asks about their satisfaction wit
h the goods and services they have consumed.

22. Introduction External Analysis Internal Analysis Theories Models Conclusion
Apple got a great score in ‘ACSI’
Average(78)
For the seventh straight year, Apple outranked other PC makers scoring better than ever a
t 86 "points" on a 100-point scale. This is because of iPhone and iPad.

23. III.Marketing Strategy Analysis
Technology Acceptance Model
Tech Innovation
Efficiency Innovation – Apple’s user experience // 애플 둘 다 직관적 UX 등 모두
TAM 적용 가능 .

24. References
• http://en.wikipedia.org/wiki/Apple_inc
IM 513 Marketing Analysis & Strategy
24 Spring Semester, 2011

25. A Q
ny uest i ons
?