Apple Mirror

Apple Mirror Media Buying Plan - Class Project My Responsibilities for this Project: - Develop a new product either for an existing company or a new one Product: Apple Mirror - History, timeline, market share, competitor - S.W.O.T analysis, top 3 competitors, about the product - Marketing Objectives, Media Objectives, Target Audience, Psychographics, Geography, Seasonality - Media Strategies, Media Mix, Budget

If you didn’t know!  Apple Started as a Computer Company in 1976.  Apple I was the first computer built. Launched in Cupertino, California.  It was created by Steve Jobs (CEO) and his business partner Steve Wozniak.

Time Line  Apple Computers were one of the best in their competitive market until the 1990s.  Apple’s sales began to decrease. Competition is producing better and cheaper products.  2001 Apple reinvented itself with the launch of the Apple iPod and took over its market.

Today!

Top Tablet/Computer Makers Worldwide, 2012  Apple 64.40%  Samsung 9.90%  Amazon 4.90%  Asus 2.80%  Barnes and Noble 2.40%  Other 15.60%

Most Valuable U.S. Technology Hardware and Equipment Companies, 2012 (Millions)  1. Apple, $559,002.1  2. Intel, $140,462.4  3. QUALCOMM, $115,117.9  4. Cisco Systems, $113,912.5  5. EMC, $61,902  6. Hewlett Packard, $47,120  7. Texas Instruments, $38,385.4  8. Dell, $29,241.1  9. Corning, $21,428  10.Broadcom, $19,099.8

Top Smartphone Makers Worldwide, 2012-2013 2012%

2013%

Samsung

29.00

32.00

Apple

19.00

20.00

HTC

5.00

5.00

Nokia

5.00

2.00

LG

4.00

4.00

Huawei

4.00

5.00

Sony

3.00

2.00

Other

24.00

28.00

SWOT Strengths  High Customer Loyalty  One of the top innovators in technology. 2011 Forbes named Apple 5th… 26th in 2012.  Brand reputation/Image  Has their own Retail stores  Strong marketing and advertising teams.  One of the most recognizable brands in the world. Interbrand ranked Apple brand No. 2 most valuable brand, behind Coco-Cola Company.  Well Diversified Product Mix  Operational Efficiency

       

Weakness High Prices Decreasing market share Patent infringements (copy cats) Changes in management Defects of new products Long-term gross margin decline Dependence on Network Providers Limited iPhone/Mobile Phone Variations

SWOT Opportunity  Growing Tablet/Computer Market  High demand of iPad mini and iPhone 5  Emergence of the new provider of application processors  Growth potential through acquisitions  Damages from patent infringements  Strong growth of mobile advertising market  Increasing demand for cloud-based services  Very strong opportunity in emerging markets in China and India  Innovative Products and Designs

Threats  Other operating systems are starting to challenge Apple  2013 tax increases  Rising pay levels for workers  Price Pressure from Samsung over key components  Android OS growth  Competitors closing the gap in the various markets  Theft of Digital Content  Global Economic Scenario  Apple’s Lawsuit against Samsung

Apple’s Competitors Top 3

Apple Mirror  Combination of a Tablet or iPad, Computer, and Cell phone.  Voice activation!  Designed to replace any mirror in your house.  Mirror will be linked to the internet.  Make multitasking that much easier will all the information you need right in front of you. Such as Traffic, Weather, and News.  Communicating with family or sending reminders is easier then ever just talk to your Mirror.  Make your grocery list by shopping from your mirror, saving you time and money buy cutting out the middle man.

Marketing Objectives    

No longer competing with competitors Create a new brand category To maintain/regain and increase brand loyalty Regain control of Market share as a whole

Media Objectives  Through National Media advertising, of TV, Out-Of-Home, Magazines and Online  Render consumers speechless through innovation and technology  Reinvent creativity through applying simplicity to new products  Take consumers imagination and turn it into elaborate innovation

Target Audience  Race: Multiple Ethnicities  Age: 25-54  Gender: Men & Women  Household Income: $50,000-150,000  Occupation: Professional and Related Management, Business and Financial Operations Sales and Office

 Relationship Status: Married, Single Best target market would be Adults and early college graduates because they have the need for a product like the Apple Mirror and the income to afford it.

Psychographics The Apple Brand Personality is about:  Lifestyle/aspirations  Imagination/Dreams  Liberty regained  Innovation/Simplicity  Passion

Geographic Target According to M.R.I. the strongest census regions for those who own Apple Products:  North East (New York)  Midwest (Chicago)  Western Region (Los Angeles)

Seasonality  Apple Mirror Launch 2014-2015  From August - February  Kick start the back-to-school season with street furniture, transit and airport advertising  Summer fun is coming to an end in August, people start to get back into work mode as well as start preparing for the up-and-coming holidays

Media Strategies / Media Mix  Prime Time Sports National TV - CBS Sports and Fox Sports  SkyMall Magazine  Out-Of-Home Bus Shelters, Digital Backgrounds, Wrapped Train

 Online

Prime Time TV  Sunday Football (11:30am - 6pm) avg Rating 8 x 32000 avg. CPP= $256,000 (8 GRPs)  Monday Night Football (7pm - 9pm) avg Rating 8 x 32000 avg. CPP= $256,000 (8 GRPs)  Commercials: Sundays from Sept 2014 - JAN 2015 (8 Weeks) Monday nights from Sept 2014 - Nov 2014

Prime Time TV        

Week 1: Sun, Sept 6 / Mon, Sept 7 Week 2: Sun, 28 Week 3: Sun, Oct 5 / Mon, Oct 6 Week 4: Sun, Oct 26 Week 5: Sun, Nov 2 / Mon, Nov 3 Week 6: Sun, Nov 30 Week 7: Sun, Dec 28 Week 8: Sun, Jan 4

Total Cost: $ 2,816,000.00

SkyMall Magazine  Timeline: 1 Year: Jan 5, 2014 - Jan 5,2015  Rate: Full Page 4-Color (4ti) $18,250  Circulation: 10,000,000

Total Cost: $219,000

Online Media Rate: $10 CPM x 1,000,000 Imp/1000 = $10,000/month Facebook and YouTube  Timeline: Jan 5, 2014 - Aug 31, 2014 (8 Months)  Cost, each: $80,000 Booking.com, Expedia.com, Travelocity.com  Timeline: Jan 5, 2014 - Jan 4, 2015 (1 year)  Cost, each: $120,000

Total Cost: $520,000

Out-Of-Home Bus Shelters  Quantity: 70  Timeline: Aug 3, 2014 - Jan 25, 2015  Location: Chicago, New York, Los Angeles  Rate: $45,500/month  3 cities = $136,500/month

Total Cost: $819,000

Out-Of-Home Wrapped Train  Quantity: 30 (15 Chicago, 15 New York), 2 cars/train  Timeline: Nov 2, 2014 - Dec 31, 2014 (2 months)  Location: Chicago, New York  Rate: $39,765.70/car  $39,765.70/car x 60 cars = $2,385,942/month

Total Cost = $4,771,884

Out-Of-Home Airports Media Type: Digital Display (12 total)  Quantity:  New York (3)  

(2) JFK (1) LaGuardia

 Los Angeles (LAX) 3  Chicago  

(1) Midway (2) O’Hare

 Timeline: Aug 3, 2014 - Jan 25, 2015 (6 months)  Rate: $8,500/board x 12 boards = $102,000/month

Total Cost: $612,000

Budget Prime TV:

$2,816,000

SkyMall:

$219,000

Online Media:

$520,000

Out-Of-Home: - Bus Shelters: - Wrapped Trains: - Airports: Installation Fees Grand Total

$819,000 $4,771,884 $612,000 $242,116 $10,000,000

Bibliography  http://www.interbrand.com/en/best-global-brands/previous-years/2012/Best-Glob al-Brands-2012-Brand-View.aspx  http://appleanalyses.wordpress.com/7-1-1-psychographic/  http://bi.galegroup.com.emils.lib.colum.edu/essentials/article/GALE%7CI250 1288540/d5855ee4e7a771d2e4d4343c7234689b?u=uiuc_columbia  http://bi.galegroup.com.emils.lib.colum.edu/essentials/article/GALE%7CI2501 286295/ff54b45e44cdc953f3e52cebab3d6646?u=uiuc_columbia  http://www.strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.h tml  http://www.scribd.com/doc/21275028/Apple-iPhone-Marketing-Plan  http://www.bluelinemedia.com/airport-advertising