Marketing Assignment 代写 :Opportunity For This Marketing Plan Marketing Essay

Marketing Assignment 代写 :Opportunity For This Marketing Plan Marketing Essay

Marketing  Assignment 代写:有一个机会,开发一个迷你的有更多的功能和较低的价格为年轻人,如更多的颜色,更强大的音乐功能和互联网功能。

这个机会的原因是,首先是销售的5,预计将显着下降,2013,从下面的数字可以看出,由于客户需求的变化,越来越多的竞争对手,如三星。

其次,新发布的iPhone 5没有重大的进步,与之前的iPhone相比。客户抱怨苹果缺乏创新,并已开始寻求不同的品牌。风格和iPhone 5看起来并没有从以前的版本和内容多有变化,如软件和功能,iPhone 5没有从iPhone 4或iphone 4s大幅提高。

此外,在更高的范围内,由于其知名度和独特的设计价格。下表总结了来自其他品牌的竞争产品iPhone5的价格。价格是由沃达丰截至2012十月30。高价格的苹果5是不负担得起的一些客户群体,如年轻人和学生。在市场上,5的价格几乎和一个普通的笔记本电脑一样昂贵。然而,这些客户群体,更可能定期改变他们的移动,并尝试新的技术和产品。基于这些原因,有市场的机会,迷你型的,这是更便宜,旨在满足年轻人的需求。

 

In New Zealand, the original Apple Store is located in New Market. The Apple Store is planning in open Apple stores in more key locations. This marketing plan aims to present the objectives, strategies, tactics & marketing action plan for Apple Inc. for promoting the new Mini iPhone product in New Zealand.

3. Area of interest

The area of interest for this assignment is a product – Smartphone/iPhone

4. Details of Area of Interest

There is a substantial increase in iPhone sales in the global market. The iPhone package often comes with the phone, earphone with remote and microphone, dock connector to USB cable, and USB power adapter and documentation. iPhone comes with different memory size, including 16 GB, 32 GB and 64 GB, which are sold at different prices. iPhone also have a number of overseas manufacturing plants in order to ensure low manufacturing costs.

iPhone is first mobile phone that is touch screen without keyboard. It just uses our finger to control the mobile phone that is substantially different with the traditional mobile phone. iPhone can support many languages such as English, Chinese, French, German, Arabic and Japanese and so on. The company Apple has established strong global brand name and has grown into one of the largest mobile and tablet producers in the world.

5. Opportunity for this marketing plan

There is an opportunity to develop a mini iPhone with more features and lower prices for young people, such as more colours, stronger music functions and internet functions.

The reason for this opportunity is firstly that the sales of iPhone 5 are expected to drop significantly in 2013, as can be seen from the figure below, due to changes in customer needs and increasing competition from competitors such as Samsung.

Secondly, the newly announced iPhone 5 does not have significant improvement as compared with the previous iPhones. Customers are complaining with the lack of innovation of Apple and have started to seek different brand. The style and look of iPhone 5 did not change much from the previous versions and the content, such as software and functions, of iPhone 5 did not improve from iPhone 4 or IPone 4S substantially.

Also, iPhone is priced in the higher range due to its popularity and unique design. The following tables summarise the prices for iPhone5 and prices of competing products from other brands. The prices are collected from Vodafone as of 30 October 2012. The high price of iPhone 5 is not affordable for some customer groups, such as young people and students. The price of iPhone 5 is almost as expensive as an average laptop in the market. Those customer groups, however, are more likely to regularly change their mobile and to try out new technology and products. Based on these reasons, there are market opportunities for Mini iPhone, which are cheaper and designed to satisfy the needs of young people.

Brands

Prices

iPhone5 32 GB

$1199

Sony Xperia U

$299

Nokia Lumia

$399

HTC One X 32GB

$999

Sumsung Galaxy S III 32 GB

$1049

6. Objectives

6.1 Marketing objectives

The overall objective of the marketing programs aims to successfully design and promote the new Mini iPhone to young people who purchases phones more frequently and have less disposable income to purchase expensive iPhones.

6.1.1 Product objective

The product objective is to design new packages and features of Mini iPhone product for young people from 1 January 2013 to 31 December 2013.

6.1.2 Price objective

Price objective is to provide competitive pricing, which covers the costs and attracts young people by 31 May 2013.

6.1.3 Distribution objective

Distribution objective is to expand traditional Apple distribution channels, such as Apple store and electronic shops into more channels, such as supermarket, department stores, and fashion stores by 31 May 2013.

6.1.4 Promotion objective

Promotion objective is effectively increase brand awareness and promote the sales of Mini iPhone through establishing an IMC (integrated marketing communication) campaign called “mini but mighty” from 1 January 2013 to 31 December 2013.

6.1.5 Other marketing objectives

Another marketing objective is to increase market share of Mini iPhone by 20% by the end of 2013. Market share is an important issue to evaluate the effectiveness of this marketing plan because it reflects the number of customers who have switched to or maintained to be a customer of Apple after the launch of Mini iPhone.

6.2 Financial objectives

The financial objective is to achieve a sale of $40 million from 1 January 2013 to 31 December 2013 in the New Zealand market. Sales are sometimes argued to be a rather weak measure for marketing effectiveness because there are a large number of external and internal factors that can affect the level of sales (Aaker, 2009). It is difficult to pinpoint to causes for changes in sales to marketing efforts. However, the level of sales is still one of the post important measures to capture the financial performance of the company.

In addition to sales, Return on Investment (ROI) can also be used as a financial measure for Apple. ROI can be worked out using the following formula.

Source: BUSINESS CASE ANALYSIS (2012)

In particular, the financial objective for Apple should be to achieve more than 20% ROI from 1 January 2013 to 31 December 2013. It is important for Apple to ensure the gains from developing and promoting Mini iPhone covers the costs of doing so.

7. Strategy

7.1 The product strategy

The product strategy is to reduce complicated functions for businesses and design more colours, different material packaging, and features for young people, such as stronger music system and internet connection programs. The product strategy is product differentiation. Kotler and Keller (2012) claim that products can be differentiated in different forms, including the size, shape, or physical structure of a product. The aim of the product differentiation strategy is to be different from the products offered by the competitors and be more attractive to customers. Currently, Apple needs to address customers’ concern that iPhone has got too many features with too high a price. Mini iPhone is expected to get rid of the redundant features through the compact design. Another reason for adding more colours and phone accessories is to be more appealing to the young consumers. As discussed before, young people are an important group of high-tech chaser who change cell phones very frequently and are easy to be attracted by fashionable elements in cell phones. Therefore, the product strategy is expected to resolve the current concern over complicated functions and attract more young customers than before.

7.2 Pricing strategies

The pricing strategy that Mini iPhone will pursue is the price skimming strategy (Kotler & Keller, 2012). Many high-tech products adopt the market-skimming pricing because technology sets up the environment for this price strategy. A cell phone manufacturer comes out with a new cell phone model every 8 to 10 months (Bovay, 2012). This means the older model is soon replaced by new ones, and they have to cut prices to attract buyers. In contrast, the new model is equipped with the best technology and is able to be sold at a better price. For Mini iPhone, the starting price would not be as high as a standard iPhone 4S or iPhone 5 because it has got less features. It is also the objective to design and market a more affordable model of iPhone. Mini iPhone is designed for young customers with less income but is interested in changing their phones more frequently. Apple can attract young people with the competitive pricing and can make more profits in the future by producing more Mini iPhone accessories. However, it will be more expensive than competitors’ products with similar features because the Apple platform is irreplaceable. As time goes by, Apple can consider price reduction to target the majority audience.

7.3 Distribution strategies

Apple should continue to use the selective distribution strategy that it currently implements in New Zealand. Selective distribution strategy means that Apple will rely on a number of intermediaries to carry and sell a particular product (Kotler & Keller, 2012). These intermediaries include Apple stores, electronic shops, and telecommunication stores. The internet should also be considered as it is a relatively cheap distribution channel to reach a large number of potential customers. Compared with exclusive distribution, selective distribution is more flexible for Apple. It allows Mini iPhone to gain adequate market coverage with more control and less cost than intensive distribution (Kotler & Keller, 2012). If the initial market response for Mini iPhone is good, Apple could also consider widening the distribution channel by selling Mini IPhone in major shopping malls or department stores.

7.4 Promotion strategies

The promotion strategy for Apple will be changed to develop an IMC (integrated marketing communication) campaign to market Mini iPhone. In particular, IMC allows a brand to market its products and services through multi-media and channels in order to effectively reach target customers(Kerin, Hartley, Berkowitz, & Rudelius, 2009). Traditional mass marketing channels, such as television advertising, are not “mass” anymore because the fast development of technology and globalisation have changed people’s lifestyles, such as where to get information. A lot of people today do not watch TV regularly but prefer to search information online. It is not possible to reach all target customers through a single marketing media or channel. In the case of Apple, the target customers for Mini iPhone include young people aged between 20 and 30 years old. The main message for the IMC for Mini iPhone is “mini but mighty”, which indicates that Mini iPhone can have so much features and functions than it looks. The detailed tactics for each of the channel will be discussed in greater details in the tactic section. In addition, Apple needs to adopt a pull strategy, which directs the promotional mix at consumers directly to encourage them to ask the retailer for a product (Kerin et al., 2009). This is customer demand for the product is the most important driving force for the success of Apple.

8. Tactics

8.1 Product tactics

The product tactics for Mini iPhoneinclude the following:

1. The package design will be changed to use less expensive materials and are easily changeable to multicolour cases and other cases. An example of colourful Mini iPhone is shown below. Main colours to be used should include the rainbow colours – red, orange, yellow, green, blue, indigo, and violet. The purpose is to give consumers more choice of colour to customise their life. In order to be innovative and focus on particular interest of young people, there can be frequently updated special edition cases for Mini iPhone, such as cases designed for Rugby World Cup or cases designed using themes from popular movies.

2. The phone will remove complex business functions and add more functions for young people. These include stronger music player and more games. For example, Mini iPhone can have built in game pad to allow young people to have better gaming experiences. An example of the design is shown on the right.

3. Instead of giving traditional iPhone earphone in the package, Mini iPhone can give customers wireless earphones that are colourful and unique. These wireless earphones are estimated to cost less than $20 to manufacture.

4. The product size for Mini iPhone should be slightly smaller than iPhone 5. The following picture shows the size of current iPhone5, which is 123.8 mm x 58.6 mm. The designed size for Mini iPhone should be about 100mm x 58.6mm.

8.2 Price tactics:

As stated in 7.2, the general pricing strategy is price skimming strategy that starts with a relatively high price and gradually lowers the price down. However, it is important to determine what the starting price should be. Since Mini iPhone is a compact version of iPhone, the reduced function and production costs should be reflected in the pricing. At the moment, the standard prices for different model specifications of iPhone 4S and iPhone 5 are listed below. These prices are official prices offered through Apple New Zealand online store (Apple Store, 2012).

Different Prices between Iphone 5,4 and Mini Iphone

16 GB

32 GB

64GB

iPhone 5

$1029

$1,199

$1,349

iPhone 4S

$788

$945

$998

Mini iPhone

$498

$598

$698

Since Mini iPhone keep two thirds of the functions of standard iPhone and it is made of cheaper materials, the starting price for Mini iPhone should be lower than the current prices for iPhone 5 and iPhone 4S. This will attract the customer because they would value the trade-off between features and prices. Kotler and Keller (2012) point out that many products are offered with different features that supplement their basic function. It is important to consider how many people want the extra feature and how much it would take to introduce additional features in the market. The features taken off are reflected in the reduced price shown in the table. This price is very competitive as Apple has never offered mobile phones at this affordable price. It is now more affordable for the vast majority of consumers to own their apple product without too much financial burden.

This price range is very attractive considering the brand equity offered by Apple and the supplementary services (e.g. AppStore) that mobile phone users cannot get from anywhere else. The table below is a summary of the current prices of the popular mobile phone models offered by Apple’s competitors as listed on PriceSpy (2012).

Comaparision prices of phones between companies

HTC

Samsung

Nokia

Sony

HTC One 32 GB

$595

GT -i9300 Galaxy SIII 16 GB

$665

Lumia 800

$339

Sony Xperia U

$247

HTC One S

$535

GT -i9100 Galaxy S II

$475

Lumia 900

$525

Sony Xperia S

$465

HTC One 16 GB

$595

GT-N7100 Galaxy Note II 16 GB

$579

Lumia 610

$232.98

Sony Xperia P

$386

HTC One XL

814.95

GT-i9300 Galaxy S III 32GB

$797.99

N9 16 GB

$359

Sony Xperia Acro S

$649

HTC Desire HD

$439

GT-S5570 Galaxy Mini

$97

808 PureView

$799

Sony Xperia SL

$563

HTC Evo 3D

$529

GT-i8160 Galaxy Ace II

$361

Nokia N8

$485

Sony Xperia Go

$349

HTC Evo Design

$499

GT-i9070 Galaxy S Advance

$413

Nokia E7

$519

Sony Xperia TX

$769

Compared with competitors’ prices for different mobile phone models, Mini iPhone is at the average level of the mobile phone prices. This price is expected to remain for a while to attract Apple fans and early adopters. After 5 months of the introduction of Mini iPhone, Apple should lower the price of Mini iPhone according to the price skimming strategy. The first price reduction can be $60 to $100 where the largest reduction should take place for the highest level model of the 64 GB model. The reason is to encourage customers to purchase more of the best models in the Mini iPhone range as the profit margin should be higher for the highest model. The second price reduction can be a further $100 decrease to make it even more appealing to the average consumers in New Zealand with average purchasing power. Also, the second price reduction is likely to coincide with Apple’s new mobile phone model release. As many high-tech products do, the Mini iPhone product should have been an older model by then and price should be reduced to stimulate demand.

This process of price changes for Mini iPhone is summarised in the table below.

Time

Mini iPhone (16GB)

Mini iPhone (32GB)

Mini iPhone (64GB)

Initial introduction

$498

$598

$698

5 months after the introduction

$438

$518

$598

The second price reduction (about 12-18 months after the initial introduction)

$338

$418

$498

8.3 Distribution tactics:

As mention before, the mixed distribution strategy has been using by apple in New Zealand for some time.Telecom and Vodafone have play a role such as intermediaries who are specialised in providing telecommunication services. It also authorises a number of department stores and specialty stores to sell the iPhone products such as Dick Smith, Noel Leeming, the Warehouse, and Harvey Norman. These established distribution channels are readily to be used by Mini iPhone. New information about iPhone products should always been given to those distrubutors in advance. It is important to continue the relationship with these existing distributors because they have been the selected distributors for Apple for many years. They have accumulated valuable experience in introducing and selling the iPhone products to the customers. They are always in the best position to sell Mini iPhone as long as Apple provides those informations to them in advance so that they have time to get prepared during the launch day of iPhone Mini.

In addition, Apple should make better use of other distribution channels to sell Mini iPhone as well. Consumers are more willing to shop online for Mini iPhone if it is available in their countries and regions. Apple could consider offering Mini iPhone through its online store in New Zealand. It could also include free delivery services to better encourage online purchase of Mini iPhone. However, this plan is subject to the condition that Apple can negotiate good delivery terms with logistic companies or with Post NZ. Given the influence of Apple, this should not be too difficult. What Apply should consider is whether the cost of delivery is matched by the increase in demand and sales for the new product, Mini iPhone.

8.4 Promotion tactics:

8.4.1 Advertising tactics for brochures

Newspaper is not selected to promote Mini iPhone because few young people read newspapers today. Brochures will be used to promote Mini iPhone because brochures sent out at the point of purchase not only sent information about Mini iPhone to customers but also stimulate purchase decisions.

The brochure design should be creative, distinctive and informational. This means that the brochure needs to have distinctive Apple logo, have creative design, and contains sufficient information about Mini iPhone. The following pictures show a sample brochure for Mini iPhone. The brochure takes a form of a Mini iPhone and shows information about key features and characteristics of Mini iPhone, such as the multiple colour choices and the cheaper prices.

The brochure should be about 166mm high x 65mm wide or slightly smaller in order to have sufficient spaces for the information and be close to the size of Mini iPhone. It should also be printed 2 sides because the brochure if likely to be folded. Colour print should be used in order to promote the fashionable, young, and colourful design of Mini iPhone.

Vistaprint can be a potential supplier to print the brochures. The cost of printing brochures at Vistaprint is shown in the table below. The more orders to placed the more cheaper price they got, therefore, Apple should print 100,000 brochures first, which cost NZ$30,000.

Source: Vistaprint (2012)

The brochures will be distributed to partners, such as electronic shops (E.g. JB Hifi, Dick Smith), Apple stores, telecommunication stores (E.g. Vodafone, Telecom), and other retailing stores for Apple. These brochures are given freely to customers who are interested in Mini iPhone. These customers are more likely to be potential customers because they are interested in taking the brochure and they are customers of related shops, such as electronic shops and telecommunication shops.

8.4.2 Advertising tactics for radio

Radio advertising for Mini iPhone should be on popular radio programs such as Mai FM 88.6 music channel. The station of the channel is located in Ponsonby Auckland. The channel broadcast popular music, has a number of popular shows or programs, and holds special events with super stars or in local community. Mai FM is selected because it reaches a large proportion of young people, who often listen to the channel when they are travelling. In particular, Mai FM reaches 289,642 people, aged below 35, every month(Mediaworks, 2012). Good coverage among New Zealand also became one of the main key why this channel had been selcted.

The advertisement of Mini iPhone should be presented every weekday (Monday to Friday) during the morning programs, including Mai Morning (6am – 10am) and K-Lee (10am – midday). Such time is the best time to dvertised the products as most people will be listening to the ratio while driving or while taking public transportations. The advertisement will firstly to broadcasted for 1 months (four weeks) before the evaluation of the effectiveness be carried out. The message in Radio is not visual and customers are not able to see the colourful cases. The advertisement needs to include statement of key features and use sense of humour to make the advertisement more memorable.

The creative development of the radio advertisement can cost about $1,750 and the media cost at Mai FM can cost from $3,000 to $6,000 a week (Mediaworks, 2012). Therefore, the total cost for Apple to advertise Mini iPhone on Mai FM can be from $13,750 to $25,750 (Mediaworks, 2012).

8.4.3 Advertising tactics for TV

Television advertising for Mini iPhone should focus on advertising during and after TV shows that are popular among young people, such as American’s Next Top Model and Music TVs. Therefore, Apple should advertise on TV Four, which is a newly launched channel that provides young people with interesting shows, such as American’s Next Top Model, Beauty and the Geek, Survivor, and American Horror Story. This TV station is chosen also because it has a good coverage of all major cities in New Zealand. TV Four reaches more than 700,000 audiences mainly aged between 18 and 49 years old every month(Mediaworks, 2012). These are the target customers for Apple who are interested in new and fun stuff and have a taste for fashion. Therefore, the advertisement should have the message as “fashionable, new, and innovative” and highlight the interesting features of Mini iPhone.

The advertisement should be broadcast after and in between shows, such as American’s next top model and Beauty and the Geek. This ensures the advertisement reaches target audiences. The approximate time for such programs and shows are at 7:30pm to 9pm. The advertisement should also be presented on weekdays because it is likely that young people will not be watching TV on weekends but are busy with other social events.

The commercial production costs can be at least $2,500 and the cost of advertising on New Zealand TV channels on weekdays at the time selected above is more than $10,000 per day(TVNZ, 2012). It is planned for Apple to advertise on TV for about four weeks, which generates a total TV advertising cost of at least $202,500.

8.4.4 Advertising tactics for the internet

Internet and social networks are popular and welcomed by young people. This is an opportunity for Apple to win over these customers. For example, Mini iPhone can advertise through the internet and social network websites such as Facebook and Twitter. There are more than 835 million Facebook users in the world in 2012 (Internet World Stats, 2012). It does not cost much to set up social network pages and answer customer enquiries. But it does create a good communication channel between the company and its customers.

Apple Facebook has 1.63 million fans, as can be seen from the picture above, which is a great source for Apple to market its new Mini iPhone product(facebook, 2012). However, the current facebook page of Apple only presents pictures of iPhone products and allows customers to download Apple wallpapers for their computer. There are no updates of information on company and products and little interactions are made between customers and the company. Apple should utilise the communication opportunity created by facebook and collect valuable feedback from customers and promote the new product to them effectively.

8.4.5 Sales promotion tactics

In order to design an interesting and unique promotion for Mini iPhone and combine different channels together, Apple can give a prize (a brand new Mini iPhone with a limited edition case) for a competition, which involves customers sharing the best photos with their Apple products on their facebook page. The competition aims to stimulate the interests of young people and potential customers and promote Mini iPhone to loyal Apple customers through the Internet world. The winner’s photos can also be shown on TV advertisement or Apple website with their permission. Examples of such photos are shown below. Apple should provide 50 prizes, which costs about $1,000 each. There can also be administration costs for this promotion. The total cost of sales promotion for Apple is about $51,000.

8.4.6 Public relations tactics

Apple can sponsor a program that provides discounted price Mini iPhone to University students. University students can purchase new Mini iPhone at a slightly lower price with their proven of enrolment. This sponsorship is to provide specific supports for university students, who are target customers of Apple but do not have high income. The cost of this sponsorship is planned to be $150 per unit (one Mini iPhone). The total cost of this sponsorship can vary depend on the number of university students who wish to purchase Mini iPhone.

8.4.7 Personal selling tactics

Apple should allocate a direct personal selling assistant to retail stores, such as Apple store, JB Hifi, and Bond Bond, and at University campuses. This is to allow the personal selling assistant to answer any questions by potential customers and to encourage potential customers, such as university students, to try Mini iPhone. The personal selling activities are planned to hold for 1 month for 30 personal selling assistant in Auckland. The cost of sales person per year is approximately $40,000. Therefore, the total cost for labour costs for this promotional activity will be $100,000. There will also be material costs, which cover travel costs, sample Mini iPhone costs, and brochures. Material costs are expected to be about $86,000. The total personal selling cost is therefore $186,000.

9. Marketing action plan

9.1 Activity (Tactics)

9.2 Responsibility/Accountabilities

9.3 Interdepartmental support

9.4 Timelines: Dates -S = start & E = End. Months/Year

Activity 1 Design and develop Mini iPhone with new features

Design Department

Finance, Purchase

1 January 2013 – 1 April 2013

Step 1: look for cheap materials for producing multi-colour case

Purchase Department

Finance, Purchase

1 January 2013 – 30 January 2012

Step 2: Design strong music and game features and drop non-essential features

Design Department

Finance

1 January 2013 – 29 March 2013

Step 3: Add wireless earphone features

Design Department

Finance, Purchase

1 February 2013 -31 March 2013

Step 4: Reduce the size of the phone

Design Department

Finance, Marketing

1 March 2013 – 1 April 2013

Activity 2: Set prices for Mini iPhone

Marketing Manager

Finance

1 April 2013 – 1 November 2013

Step 1: Announce the starting price of Mini iPhone

Marketing Manager

Finance

1 September 2013

Step 2: First downside adjustment to price as planned

Marketing Manager

Finance

1 October 2013

Step 3: Second downside adjustment to price as planned

Marketing Manager

Finance

1 November 2013

Activity 3: Distribution arrangement

Production Manager

Marketing

1 February 2013 – 1 May 2012

Step 1: Contact major existing distributors (especially Telecom and Vodafone)

Production Manager

Marketing

1 January 2013 – 20 February 2013

Step 2: Provide product information to nationwide retailer

Production Manager

Marketing

1 March 2013 – 1 April 2013

Step 3: Construct Mini iPhone official website and add the product to online store

Production Manager

Design

20 March 2013 – 1 May 2013

Activity 4: Launch IMC marketing campaign

Marketing Manager

Finance

1 August 2013 – 1 December 2013

Step 1: Advertise using 10,000 brochure

Marketing Manager

Advertising

1 Aug 2013 – 1 Sep 2013

Step 2: Advertising via MyFM 886

Marketing Manager

Advertising

1 Sep 2013 – 1 Oct 2013

Step 3: Advertising on TV4

Marketing Manager

Advertising

20 Aug 2013 – 20 Sep 2013

Step 4: Advertising on Facebook

Marketing Manager

Advertising

1 Aug 2013 – 1 Dec 2013

Step 5: Sales promotion competition

Marketing Manager

Sales promotions

1 Oct 2013 -1 Dec 2013

Step 6: University student sponsorship

Marketing Manager

Public relations

1 Oct 2013 -1 Dec 2013

Step 7: Personal selling activities

Marketing Manager

Personal sales

1 Sep 2013 – 1 Oct 2013

10. Budget

A brief budget for Apple to design and promote Mini iPhone is presented in the table below:

Marketing budget

1 January 2013 to 31 December 2013

Sales

$40,000,000

Less cost of goods sold (50% of sales)

$20,000,000

Gross Margin

$20,000,000

Direct expenses

8.1 product expense

$7,000,000

8.2 pricing expense

$150,000

8.3 distribution expense

$290,000

8.4.1 advertising brochure expense

$30,000

8.4.2 advertising tactics for radio

$193,750

8.4.3 advertising tactics for TV

$492,500

8.4.4 advertising tactics for the internet

$66,000

8.4.5 sales promotion tactics

$78,000 (3 employees)

8.4.6 public relations tactics

$100,000

8.4.7 personal selling tactics

$186,000

Other expenses (administration costs)

$120,000

Total direct expenses

$8,706,250

Contribution Margin

$11,293,750

11. Barriers to implementation

Barrier 1 is the financial costs involved in developing and executing the Mini iPhone product. Apple is one of the most influential companies in the world with strong financial and human resources. However, it is still desirable to undertake the Mini iPhone project if the costs of the implementation process do not exceed the plan and the budget. The issue is that it can be difficult to execute new designs for Mini IPhone and control cost low at the same time.

Barrier 2 is the ethical issue involved in coordinating the production and distribution of Mini iPhone products. As a convention, the iPhone series is designed by Apple but is produced in China by the company named Foxconn. It is important for Apple to establish strong supply chain relationship and seek overseas manufacturing opportunities with lower costs. However, ethical issues can arise for production plants and manufacturing partners in developing countries. For example, the suicides of workers at Foxcoon, which manufactures IPhone for Apple in Shenzhen China and the nets to prevent suicides have attracted a lot of attention from the media (Johnson, 2011). Therefore, there can be pressure from the media and public and maybe the government for Apple to handle.

Barrier 3 is the technical barrier involved in developing a Mini iPhone product that satisfies all needs of young customers using current technology. Technical improvement and innovation can be expensive especially considering the low prices objective for Mini IPhone. This requires Apple to continue research and development in technology. The lack of innovation in iPhone 5 should be studied and avoided in the future when developing new models, such as Mini IPhone.

Barrier 4 is the employee commitment to the Mini iPhone project. It is documented that employees in large and successful companies lack the sense of crisis or urgency (Campling, Poole, Wiesner, & Schermerhorn, 2006). Apple has been highly successful in the past decade with star products such as iPod, iPhone, iPad, and MacBook. The employees, the technology department, the marketing department, and even the top management level, may lack the motivation to commit to the development of a new product. Low employee morale since the death of Steve Jobs also contributes to the barrier and the project may be slowed down or significantly impeded due to this barrier.

 

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