Sie sind auf Seite 1von 53



Elizabeth Abolt | Eric Guth | Yi Lin |
Zike Cheng | Maureen Schoen | Karen Hays |
2013 - 12- 16

Executive Summary3
Situation Analysis & Marketing Background4
Brand Information5
Industry Information.12
External Information.17
Competitor Information..19
Current Users.22
Geographic Emphasis23
Seasonality & Timing24
Consumer & Consumer Decision27
SWOT Analysis.28
Primary Research..29
Target Audience30
Focus Group33
Media Plan.41
Strategy and Tactics43
Media Vehicle.47
Flow Chart49

Apple is well known for its
Executive modern and trendy technology

Summary that is especially popular

among generation Y. Ever since
Apple released their first
smartphone, the iPhone, in
2007, the company has had the
majority of the smartphone market share.
Due to the iPhone, Apple has established its brand image as the
trendy smartphone choice. However, with competitors developing
phones that are similar to or improvements upon the iPhone, the
current users of the iPhone are switching to other brands. Current
users of the iPhone 4 are the target market for this campaign, with the
goal to retain the majority of these users and maintain their large
share of the smartphone market.
The surefire way to get current iPhone 4 users to stay with the
iPhone 4 is to build a relationship between the consumers and the
brand. And what better way to build a relationship with the consumers
than via the device that they already know and love? Remind them
why they chose the iPhone 4 in the first place, and tell them why they
should stay loyal. Current users of the iPhone 4 access the Internet
through their phones, particularly through apps. Therefore, there is a
huge opportunity to reach the consumers on the popular social media
platforms and other apps through the actual device that is being

Situation Analysis


! Brand Information
! Availability
In July of 1976, Apple released its first ever computer
!entitled Apple 1. From that day onward, Apple has released
!numerous operating systems, computer software programs, and
a wide array of personal electronics. Because Apple has been
!around for 37 years now, the company has had quite a while to
!build, and maintain, a very solid and respectable reputation. The
majority of todays consumers view Apple as a luxury brand that
!challenges the status quo and sets the highest standards in
!technology, innovation and service. Not only do consumers trust
and value the brand, but they also take pride in owning and
!operating Apples products. Having such a highly regarded
!reputation has placed Apple ahead in terms of market
opportunities, general sales, customers willingness to buy,
!consumer loyalty, customer service, and in-store experiences.
!This is a brand that stands out amongst its competitors and is
consistently ranked high in consumer satisfaction. Thus, because
!Apple has been around for such a great deal of time and has built
solid, trustworthy name for itself over the last 37 years,
are especially loyal to the brand and its products.

! of Apple Brand Through its History

Apple is an extremely successful brand and has experienced a

significant rise in its success throughout history. However, historically
speaking, Apples market share in the past was unusually low due to the
fact that the company sells computers with unique operating systems.
Because of this, there was no direct equivalent in the market place at the
time. The 1990s were an especially rough time for the company because
Apple struggled with expanding the Mac market. This was especially true
due to the fact that Windows began to develop a similar product to the
Mac, which left Apple behind in its development of differentiating
features. Coincidentally, this was also a time when the infamous leader of
Apple, Steve Jobs, was absent from the company.

However, from 1998 to 2005, Apple had a serious comeback and

returned to profitability. This comeback was initially launched by the
introduction of the iMac in 1998, and was successfully upheld with the
introduction of the iPod in 2001. From that moment on, sales have been
unparallel to others in the market.

Today, Apple has experienced widespread success and is now one

of the most valuable brands in the world. The company has been
generating billion dollar revenue figures for more than a decade and had
an astounding 42 billion U.S. dollar net income last year. In fact,
according to Fortune Global 500, Apple falls directly below Exxon as the
second most valuable company in the world. For the fiscal 2013 fourth
quarter, the company expects to rake in anywhere from 34 to 37 billion
U.S. dollars. As of September 18, 2013, Apples stock is priced at $465 a
share and is expected to increase this upcoming year.

! iPhone Previous Brand Positioning
! Apple's advertising strategies for iPhone has evolved over the years
just as product has evolved. IPhone was the biggest innovation of its
! during the initial release. The competition at the time tended to
offer phones with limited web-use, limited touch screen capabilities,
and limited music playing ability. The initial television campaign relied
! showing the product in use during the spot. Typically, the :30 spot
started by showing an user doing an activity (playing music, checking
! searching for directions, web surfing) on the phone and then
ended with the phone receiving a call (iPhone commercials).
! !
! Subsequently, the iPhone improved and the advertising reflected
these improvements. However, these ads focused on another iPhone
innovation, the app store (Villapaz). This positioned iPhone as the
leader in Smartphone technology creating an unique selling proposition
! competitors who had yet to develop app stores. With another
innovation came a new series of ads. This next campaign, for the
iPhone 3Gs, focused on the use of video playback.
As the iPhone 4 came out, the marketplace became more
competitive. Therefore, iPhone positioned itself with a campaign
signing off each spot by stating, "If you don't have an iPhone, well, you
don't have an iPhone. Luke Villapaz of International Business Times
says, "The phone's tech aspects were proven; all that was left was to
reinforce the idea that a person's life was less meaningful without it."
All of the creative work thus far for iPhone products has been
created by TBWA/Media Arts Lab.

The Product Offered

Physically, the iPhone 4 offers a 3.5in grass screen size,

dimensions of 4.5 x 2.31 x .037in and a weight of 4.83 oz. Talk time
battery life reaches up to 14 hours while standby time is 12.5 days
(300 hours). Storage space spans up to 32 GB. The phone has a
camera and camcorder function available in 720p HD shooting with
video calling ( Being a smart phone, it offers
online capabilities through the browser, Safari. It also has music
playback ability and navigation. IPhone 4 also boasts the app store
that offers various games for entertainment, social media apps
(Facebook, Twitter, Instagram etc), and many more applications.
Essentials !9
Family: iOS
Minimum OS: iOS 4.0
Maximum OS: iOS 6.0
Introduced: June 2010

CPU: Apple A4 (ARM Cortex-A8)
CPU Speed: 800 MHz
The Product Offered FPU: integrated
Register Width: 32-bit
Data Bus Width: 64-bit
! Address Bus Width: 32-bit
! Onboard RAM: 512 MB
! Maximum RAM: 512 MB
Storage Level 1 Cache: 32 kB data, 32 kB
Flash Drive: 16/32 GB instruction
! Level 2 Cache: 512 kB on-
Video processor
Screen: 3.5" multi-touch !
GPU: PowerVR SGX 535 (via A4 Networking
chip) Airport Extreme: included
Max Resolution: 960x640 Bluetooth: 2.1+EDR
("Retina") Cellular:
Video Out: composite, GSM/EDGE (850, 900, 1800,
component (via Dock Connector) 1900 MHz)
Camera: 5 MP back (w/LED UMTS/HSDPA (3.6 & 7.2 Mbps)
flash), VGA front (850, 900, 1900, 2100 MHz)
! Location: GPS, Digital Compass
Input/Output !
USB: via Dock Connector Miscellaneous
Audio Out: stereo 16 bit mini Battery Life:
Speaker: mono Talk 7 hrs (3G)/14 hrs (EDGE)
Microphone: mono Standby 300 hrs
Sensors: Accelerometer, Internet 6 hrs (3G)/10 hrs (Wi-Fi)
Proximity sensor, Ambient light Video 10 hrs
sensor, Three-axis gyro Audio 40 hrs
! Dimensions: 4.5" H x 2.31" W x
0.37" D
Weight: 0.3 lbs.

The company that owns

! the iPhone products is Apple
Computers, Inc. The company
was founded on April 1, 1976,
by Steve Jobs and Steve
Wozniak. The company began
by designing, manufacturing,
and selling desktop computers
(and later laptop computers as

Actual/perceived Pricing well). After periods of ups and

downs with product sales,
Apples sales began to
consistently rise after they
2010: launched the iPod mp3 player
16GB Black/White $199 with 2-year and iTunes music store and
contract library in the early 2000s
32GB Black/White $299 with 2-year (Richardson 2008). In June of
16GB Black/White $599 no 2007, Apple released the first
commitment generation iPhone a cell
32GB Black/White $699 no phone, mp3 player, camera,
commitment computer, and gaming device
! all in one. Since the release of
16GB and 32GB Black/White $99 with the first iPhone, there have
2-year contract been seven additional models
16GB and 32GB Black/White $549 of iPhone released 3G, 3GS,
without contracts 4, 4S, 5, 5S, and 5C (Sanford
Unlocked Version: 16GB $649; 32GB 2013).
2012 After:
16GB and 32GB Black/White $0 with
Apple Computers, Inc. as a Company
2-year contract
Unlocked Version: 16GB $549; 32GB
$649 (Osxdaily 2010)

! Apple Inc. headquarters are based in

Cupertino, California. Apple Inc. has
businesses across the globe in the Americas,
Europe, Japan and Asia-Pacific. Within these
regions stores are located in premium
shopping malls and urban shopping districts
(Annual Report, 2).

Mostly in print and television
Brand's Location
After 2001
Mostly in television and digital

Promotions Crazy Ones

1984: Mainstream
a short film titled
launching the magazines:
Pencil Test
Macintosh Newsweek and Time
1984 1988 1995-2000
Before 1985 1990s After
1983 2001

"Macintosh the "Lemmings" "What's on your iPod and
Introductio commercial PowerBook?" iTunes ads
n" 18-page aired at the campaign "Get a Mac
brochure Super Bowl
Full ads on

Industry Information
Mobile Penetration Grows

Iphone 4 belongs to smartphone category and mobile industry. For

mobile industry, mobile phones has surpassed shoes to become the No.1.
product owned by the largest number of people around the world and will
dwarf PC penetration in 2014(Slideshare 2012). In addition, in the year of
2012, according to key mobile marketing data, some 48.1% of all US mobile
subscribers owned a smartphone as of December, 2011, up 21.1% points (PPs)
from 27.0% one year earlier (Slideshare 2012). Smartphones and tablets sales
exceeds that of PCs and notebooks combined. Regarding the operating
system, IOS and Android is dominating with a combined market share of
90%. Moreover, smartphone ownership among men (51.3%) is slightly higher
than for women (48.3%), while the sweet spot in terms of age is between 25
and 44 (Marketingprofs 2012). It means oftentimes youth adopted first, but
others segments are catching up (Slideshare 2012). Thus, for mobile industry,
there are more potential smartphone users in the market.

! Industry Information
Mobile Usage and Consumption

For mobile consumption,

47.6% of mobile subscribers
used apps, up 13.3 PPs
Camera from 34.3% in December
2011, and 47.5% of
mobile users used mobile
Mobile Web Voice browsers. And for social
networking via
Smartphone, 64.2 million
people used social
networking ever in month
and 38.2 million used
social networking almost
everyday (SlideShare
2012). In addition,
Applications GPS mobile and connected
devices were driving
approximately 8% of
observed internet traffic in
the US. Mobile accounted
for most of that traffic at
5.2%, while tablets
Location delivered 2.5% of all the
Messaging Social digital traffic in the
market. In the US alone,
there were more than 400
smartphone devices on the
market by the end of
December 2011.
According to market share data, top three
Content categories mobile phone users most often
consume is browsing, apps, and sms in April
A mobile phone is 2010. In terms of content users use, weather,
search, and news are most-consumed contents
the Swiss Army (Comscore). In addition, apps are exceeding
mobile browser usage by 1% according to
Knife 2.0 Slideshare data.

! Industry Information
Content Consumption Range

Top 20 Mobile Content Categories Reach Among

Active Users (Browsing, Apps, SMS), April 2010 US


! Industry Information
Product and Industry Insight

In mobile industry, everything and everyone is connected and

easily commercialized in 2013 through features introduced by
smartphones, like apps, QR code, 4G internet, touch screen and etc
(JWT). Smartphones make integration of advertising, brands,
commerce, and entertainment possible on mobile phones, such e-
shopping, and engaging social media, which leads to a mobile -drive
lifestyle. In terms of product development, mobile phone developed
immensely from cell phones which use analog cellular network to
current smartphones which use IOS or Android since 1983. Some early
pioneers such as Nokia and Motorola all introduced their most advanced
cell phones at that time (Webdesignerdepot). In 2007, the original
iPhone was released with an auto-rotate sensor and a touch interface
that replaced the traditional keyboards. Now, iPhone becomes the
market leader in mobile industry with smartphone market share of 30%
and barely 5% of total mobile market(Nielson 2012).

1983 Analog 1999 2007 LG

Motorola Nokia Shine
DynaTAC 8210

! Industry Information
Smartphone Market

External Information
In the year 2012, there were 5 billion mobile phone users, 1 billion of
whom were smartphone users, which was a 50% increase since 2011
(Meeker 2012). From 2009 to 2012, the number of American adults who
owned tablets or eReaders increased from 2% to 29% (Meeker 2012). Part
of this increase in tablet ownership could be attributed to the fact that, in
2012, 48% of American children (ages 6-12) asked for an iPad for
Christmas (Meeker 2012). The rising demand for smartphones, tablets,
and eReaders in the United States could indicate that more American
consumers were looking for technologies with multi-tasking capabilities,
such as connecting to the Internet while talking on the phone or storing
several books in a small, lightweight device.
With regards to education, in 2012, 8% of American adults were
completely satisfied with the quality of education students (kindergarten
through grade 12) received. 36% of adults were somewhat satisfied, 37%
were somewhat dissatisfied, and 16% were completely dissatisfied (Gallup
2013). During the same year, 16% of American adults rated the quality of
education at four-year colleges and universities as excellent; 52% rated it
as good; 22% rated only fair; 8% rated poor; and 2% had no opinion
(Gallup 2013). Additionally, a Gallup poll from October 2013 revealed that
47% of Americans said a degree from a well-respected university is more
important for people to succeed; while 50% said that obtaining
knowledge and skills to do a specific job is more important; 4% had no
opinion (Gallup 2013). These trends in education suggest that the majority
of Americans are not completely satisfied with the quality of education in
the United States, and the majority would rather learn job-specific skills
rather than obtain academic knowledge. As a result, Americans may start
increasingly educating themselves through sources other than academic

External Information

According to Census data, the median household income for

2012 ($51,017) was not statistically different from that of 2011
(DeNavas-Walt 2013). In 2012, Asian households had the highest
median income ($68,636), while non-Hispanic White households
had the second highest median income of $57,009. Black
households earned a median income of $33,321 (DeNavas-Walt
2013). This data suggests that while many households in the United
States may not have received a large flow of extra income (and
therefore possibly extra disposable income) for the year, many
households also did not suffer a major loss of income. Also, since
Asian American households earned the highest median income for
the year, this group may also have the largest amount of disposable
The year 2012 was also a significant year in U.S. politics, as the
presidential election occurred in November of 2012. In January
2012, 27% of American adults identified themselves as republicans;
30% were democrats; and 42% were independent. By December
2012, 27% of American adults identified themselves as republicans;
34% were democrats; and 36% were independents (Gallup 2013).
This apparent shift from independent to democrat may have been
influenced by the reelection of President Obama, or could have been
influenced by other factors such as U.S. involvement in foreign

! Competitor Information
Direct & Indirect Competition

Apple's iPhone 4 has direct competition with a multitude of

smartphone producers. They include Samsung's Galaxy S3, HTC,
Microsoft's Windows phone, Motorola, Blackberry and Nokia. Indirectly,
there are consumers who don't own a cell phone. According to Forbes,
9% of adults do not own a phone. Also there's a considerable amount of
people who don't own a smartphone in the United States. Forbes places
that number at 95 million people. According to their information, they
expect that number to decrease to around 75-70 million people over the
next year (Rogowsky).
In terms of major competition on the United States market front,
Apple's iPhone appears to be in two horse race with Samsung's Galaxy
line of smartphones. HTC, Microsoft's Windows phone, and Blackberry
are minor competitors. As of September 2013, Motorola, working as
subsidiary of Google, has recently introduced a new smartphone, Moto X.
However, it's too early to tell how their sales will affect Apple's iPhone
market share. With lower cost products and new innovations being
offered every year, the smartphone industry itself is highly competitive.

Competitor Information
A Closer Look at Samsung

Within the United States, Samsung holds a

24.3% market share compared to Apples 40.7%
(comScore Reports). These numbers are expected to
move closer together as times moves forward.
Samsung owns a larger market share globally due to
its influence in the Asian Markets. In the first Financial
quarter of 2012, Samsung owned a larger global
market share but Apple had larger revenues Information
globally. Apple reported $22.7 billion in the first
quarter 2012 while Samsung reported $17 billion

Samsung with the Galaxy

phone line has relied on many platforms
to promote its product. The focus of Samsung's
advertising on television is very focused on the competition of
Apple's iPhone. The campaign is set in the scene of a waiting
line, presumably for the newest version of iPhone. Their
Samsungs effective Galaxy S3 campaign pokes fun at Apple's stagnant
improvements from model to model. Meanwhile, the ads also
Previous emphasizes product benefits, such as touch-sharing (playlists,
Brand contacts, videos) mobile to mobile. There is even a subtle jab in
one of the executions that iPhone is for older people. The
Positioning signoff/tagline reads "The next big thing is here" (Samsung
Galaxy S3 Ad). This shows how Samsung wants to be perceived
as better than the competition. Specifically, they want to better
than iPhones. In terms of print, Samsung has run various
campaigns that include a similar strategy of comparing
themselves directly to Apple.

! Competitor Information
A Closer Look at Samsung

Samsungs Samsung has greatly increased its advertising spending

in 2012 by spending $401 million. This is $68 million more
Promotion than Apple spent in the US (Yarow).
of Brand Samsung's Galaxy S3 has been manifested through
many media platforms. They've use print and television
campaigns among others. Brian Wallace, Vice President of strategic marketing at
Samsung, says that users of the Galaxy S3 are able to download free apps and free
e-books from 40,000 posters and kiosks around the United states. They also did
advertising in movie theaters during the initial roll out of the Galaxy S3 during
the summer months. (Samsung Launches). The ad agency 72andSunny has
produced Samsung's Galaxy television campaigns while Denuo is Samsung's
digital agency of record.

The true cost of a Galaxy S3 costs $213 (Agomuoh).

Various external factors and internal factors determine Samsungs
the price of a cell phone on the market. However, one
thing is for certain. Prices of older models tend to decline
Pricing &
as new versions of a model become available. Availability
Samsung is offered on various cell phone carriers
within the United States such as AT&T, Verizon Wireless, Sprint, T-Mobile and
U.S. cellular. Prices vary from carrier to carrier. However the price range for a
Galaxy S3 unlocked (without a carrier) is currently $569.99, according to Best
Buy. Samsung is available across the entire United States and also has strong ties
to its headquarters in South Korea. According to International Business Times, it
is available in over 145 countries on 296 carriers (Bora).

Samsungs The Samsung Galaxy is for more tech-savvy,

younger generations, second-time buyers of smart phones
Current Users
as their advertising expresses through various executions.
and In terms of the overall brand of Samsung and Apple, they
Differentiation can be quite different. Samsung not only offers
smartphones. They also offer televisions, audio systems,
computers, cameras, and various home appliances. Apple, aside from iPhones,
offers an array of laptop and desktop computers, tablets and music playing
devices like the iPad and the iPod. However, they are most closely related in
competition when it comes to smartphones and computers.
Gender: All iPhone 4s current users,
genders are approximately even-distributed
while male users possess an index of 97 and
female users of 103. Current Users
Education: The degree of education
positively correlates with its indexes. Of all
4 are evenly distributed

Current users of the iPhone
the iPhone 4 users, 43.9% of them are
graduated from college or higher above, between male and females. In
while 5.2% of them didnt go through high terms of age, consumers
The degree of education might have ranging from 18 to 24 years in
indirect impact on a persons occupation age are the heaviest users, and
and/or income.
iphone 4 is not prevalent
Age: Consumers aging from 25 to 34 among senior citizens. Of these
possess an index over 100, which account users, 44 percent have
for 18% of its total consumers. Consumers
older than 65 have an index of 26, graduated from college or
indicating iPhone 4 is not prevalent among above, while only 5 percent
senior citizens.
have not graduated from high
Occupation: Consumers who are engaged school. The degree of education
with management, business and financial
operations share a highest index of 165
has a direct impact on the
among all the occupations. Business side of persons impact and income
consumers tend to be more prone to iPhone due to the fact that an
overwhelmingly high
Income: Income positively correlates with percentage of consumers who
the index most apparently. An own the iPhone 4 have an
overwhelmingly high index of 204 directly
links to the consumers who own the annual annual income of more than
income of more than $150,000. $150,000. When looking
The index is 35 for those whose annual
income is less than $20,000, which taking specifically at occupation, the
up only 5% of its all consumers. majority of consumers are
Race: Asian consumers are the most engaged with management,
prevalent of any race, with an index of 155. business and financial
Media Use: Internet and TV are the most operations. Thus, consumers
common, with outdoor and magazine next who purchase an iPhone 4
to them.
heavily business-oriented.

! Geographic Emphasis

According to MRI data, the majority of iPhone users

reside in the South, with 39.5%. The percentage of iPhone
users living in the West is 24%, followed by the Northeast with
20.5% and lastly the Midwest with 16% (Fall 2012, 1). As
shown in their Annual Report, most Apple stores are located in
shopping malls and districts in urban areas (Annual Report,
2). With 52 Apple Retail Stores, California leads with the most
stores in the United States. Texas has 18 stores next to
California and New York has 17 (Apple Store Locations, 1)
following on.

16% 20.5%



Seasonality & Timing

Sales Trends

Apple iPhone Quarterly Unit Sales
in (000s)

According to iPhone sales data, sales of the first and fourth quarter of
2008-2010 were generally better than the rest of the year (Seekingalpha
2010). In addition, sales in October, November, and December were much
higher than the other months throughout the year 2008 (Roughlydrafted).
Also, according to iPhone development timeline, new generations of iPhone
usually came out during June-September. Thus, there is correlation between
sales and the launch of a new model of iPhone. Apple is also spending more
of their advertising budget on the following months after releasing a new
model of iPhone. So, our media plan should be more focused on first and
fourth quarter of the year and related to new iPhone generation launch.

! Seasonality & Timing

Sales Trends Cont.

*Estimated monthly
sales breakdown based
on official quarterly
reports and announced
milestone shipments.
January and February
2008 are estimated
based on sales rates of
the first two weeks of

*Quarterly and monthly sales

rates of the iPhone increased
during the winter quarter, but
closely pattern incrementally
advancing Mac sales, not the
holiday iPod sales surge.

! Seasonality & Timing

Sales Trends Cont.

Scheduling: Pursuing
Time Period: Continuous but more heavily
on October, November, and December

Advertising spending should be

continuous throughout the year
since there is no obvious

Scheduling purchase pattern shown in our

Strategy secondary research among
consumers and people can buy
iPhone anytime they would like
to. However, we need to focus more
on three months - October, November, December,
when new iPhones are launched, to make our
campaign more effective.

! Consumers &
Consumer Decision

Customers rate highly over the UI speed (9/10) , build

quality (8.9/10) and the display (8.9/10) (phonearena
2013). Its overall great with minimal flaws such as aging
problems. With its overall strong brand image,
customers tend to think iPhone works better than
Iphone 4 Ratings HTC or Samsung and unconsciously be prone to an
iPhone. Some customers reported that when they
got a closer look at Samsung, they were pretty much
amazed. Reasons can be the buggy IOS, limited
appearance and color options which really tire people out,
and the unease to use iTunes to synchronize everything.

Consumers decide to buy iPhone partially due to

the strong brand image of Apple, most consumers care
very much about the Apples annual conference
when the new season of releasing their new
iPhones. Its brief designed style and high-tech Brand Image
oriented functions appeal consumers while its
high prices can also indicate ones social status in a
sociology aspect. Thus, iPhone is not only a cellphone,
but also a symbol indicator or a trend setter.

For some of iPhones super fans the purchase

cycle is approximately a year since Apple
Purchase Cycle releases its newly-produced iPhone every
year around September or October. IPhones
loyal customers prefer buying the newest
iPhone every year when they come out.

SWOT Analysis

- Simple design - High price

- Innovative technology - Breaks easily
- High market share - Some apps only available
- Brand image for iPhone
- Good customer service - Stagnant design growth
- Two color options

- Expand into more markets
- Reach new markets through
social media - Competitors similarities
- Target users of older models - Reduced market share
of iPhone - Cheaper substitutes
- Target new smartphone - More durable substitutes
users who are not ready for
the latest model

The iPhone 4 benefits from simple design, innovative technology, and great brand
image. However, its high price and stagnant design growth turns potential customers
away. Externally, the market is available for more growth for iPhone users. There is also
a market for people who want older models or who currently do not have a smartphone.
The iPhone 4 faces the threats of reduced market share, cheaper substitutes, and similar

Primary Research

Target Audience

General Description
! Our target audiences are iPhone's
current users, more specifically
Rationale speaking, young college students aged
According to MRI data, iPhone 's
between 18 to 24 years old. They are
heavy users are young adults aged generally tech savvy and heavily engaged
from 18-24, with education level of in various media platforms, especially
only 5 percent not graduated from television and Internet. Also, they have
high school and 44 percent of them
high education level of graduating from
graduated from college or above. So,
18-24 year old college students are high school and continuing studying in
most appropriate to target on. In college. These college students can be
addition, iPhone users are usually expected to have management and
engaged with management, business
business occupations and decent income
and financial operations, which share
a highest index of 165 among all the level after graduation. However, most of
occupations and an overwhelmingly these college students are living on
high index of 204 directly links to the budget for now to complete their
consumers who own the annual undergraduate education.
income of more than $150,000.
Since college students are receiving
high education, we expected them to
have good occupations and high-level income. Also, in terms of media usage, television and
Internet consumers, who are mostly comprised of young, tech savvy adults, should be mostly
targeted on based on MRI data.

Additionally, based on our secondary research results on iPhones price and industry
trend, because of the launch of iPhone 5 and 5s, the price and potential market size of iPhone
4 has decreased. IPhone 4 now can be free with contract and below $100 contract free. This
can be attractive to college students who dont have much budget to buy expensive phones.
Thus, take both demographic and psychographic information into account, we decided college
students to be our narrow- down target audiences.

Target Audience
With an estimate population of
Scope of Audience 131,704,730 in United States, there is
30,140 in total of U.S. population are aged
A Day In Life (of a target between 18-24 years old. Among them,
audience): 8,327 are high school graduates and 2,716
Amy is a 22-year-old have bachelors degree with all races and
business major senior student at both sexes counted (US census). Thus, the
University of Illinois. A day in
scope of our target audiences would be
Amys life is busy and fast-paced.
Amy spends most of her between 2,716 and 8,327.
weekdays going to classes and
job interviews, hanging out with
friends and participating in organizations activities on campus.
Amy started her day with checking her Gmail account, Facebook updates,
Yahoo news and Wall Street Journal using apps on her iPhone 3G. She found out
the news that the new iPhone 5s was released, which resulted the price of iPhone
4 dropped to free with contract. Since she is a senior seeking for a full-time job
after graduation, Amy spends most of her day and budget on traveling to
interviews in Chicago and other big cities. So, Amy is struggling about whether
she should get a new phone or not. With that in mind, she took a shower with
television on, showing some morning news on Fox channel. Then, she took her
phone and laptop to classes.
In the afternoon, she headed to Chicago for a job interview as an account
manager associate position at Leo-Burnett, an international well-known
marketing agency. On her way, she used her iPhone 3G to browse online and see
some business, corporation news to prepare for the job interview, all the way
thinking that it would be much better to have her iPhone with higher-speed
internet, stronger signal, and better user interface. After successfully
accomplished her interview, Amy got the job with salary of $12,000 a year. At
night, she hanged out with their friends for dinner and movie as celebration for
her new job. At around 10 p.m., Amy was back home and went to bed, while
watching some TV shows and surfing on the Internet. When Amy was browsing
on best buys website, she decided to buy a new iPhone 4 online to replace her old
one. After the phone shopping, Amy went to sleep happily.
So, a typical day of a college student Amy is very busy, fast-paced, tech-
savvy and great TV and online media engagement.

Survey !
A 20-question survey was distributed online to collect information on
the attitudes and beliefs of the target market. Brief demographic information
was also collected at the end of the survey to ensure that the majority of
respondents were members of the target market. An online survey is the ideal
method for gathering this information because the target market is more
reachable online, and the online forms confidentiality encourages more
honest responses.
The survey was distributed during the first two weeks of November
2013. 31 responses were collected, with 71% females, 45% between the ages of
18 and 24, and 87% Caucasians.
The survey was effective in capturing a snapshot of the target markets
psychographic information, particularly with regards to media
consumption. Specifically, it was found that 100% of the
respondents have a profile on at least one social media
platform, and all respondents have a Facebook profile.
There were also trends discovered with regards
to personal beliefs. When asked to rank the
importance of their career, personal life, the
environment, politics, and the media, 84% of
respondents ranked personal life as the most important.
Also, when asked to rate how confident they are in the daily
decisions that they make, 71% gave a 4 out of 5 rating,
which is pretty confident but could still use some
Finally, another trend that stood out in the survey
was iPhone use. 68% of the respondents have owned an
iPhone 4, which confirms that current users is a viable
target market.

Focus Group !

Method We chose 9 people for the focus group. 4 of them

are native Asians, 4 of them are White people and 1
of them is an American born Chinese. Among them,
2 people are non-smartphone users and the rest are
all smartphone users. We have 3 parts total: introduction,
word association and role playing.
For the introduction part, we made group members
introduce themselves including names and age. In word
association, we asked them about purchase decisions in different
occasions and how they describe smartphone lovers. In the last
part of role playing, we made them write down a name of
celebrity associated with a specific brand of smartphone.
*The focus group outline is attached in the Appendix.

Focus Group !

Results Part 1

Expected Highest Cellphone
Group Current
Cellphone Price Ideal Cellphone Status
Members Cellphone
Features Affordable Influences
Can make phone Internet; flip; camera;
1 Non-smartphone $75 No
calls walkie talkie
Unlocked; 4G/LTE; fast
Galaxy; as long as it
2 HTC $400 processor; longer battery No
Works fast; Internet
3 iPhone 5 $500 Same as iPhone 5 Yes
Touch screen; longer
4 iPhone 4S Internet connection $200 Yes
battery life
Good camera; longer
High quality of
5 SamSung Galaxy $500 battery life; light weight; Yes
dont break easily
Depends on
6 iPhone 4S Goodlooking how much I Goodlooking No
Touch screen; various
7 iPhone 5 Goodlooking $500 apps; high quality of Yes
Touch screen; various
Can send text
8 iPhone 4S $500 apps; high quality of Yes

9 iPhone 5 Dont care $500 Longer battery life No


Focus Group !

Results Part 2

Group Want to be up-to-date

When contract is up Have extra money
Members with tech

1 Same phone Newest iPhone iPhone

2 T-mobile, no commitment No fingerprint identity sensor Nexus 5

3 Depends on the best deal No fingerprint identity sensor Most expensive one

4 Upgraded phone Same until need one iPhone

5 Nokia Latest Galaxy Nokia

6 Same phone Runs static energy iPhone

7 Same phone Blackberry Vertu

8 iPhone 5 iPhone iPhone

9 Same phone iPhone Ferrari


Focus Group

Results Part 2
- Different occasions where you would deicide to
purchase a new cellphone


1 Outgoing/handsome/social/positive/creative

2 Enjoy media consumption/likes the Internet

3 Love to refresh FaceBook/update with technology/new apps

4 Tech-savvy/avant garde/youthful

5 Computer-savvy/organized/outgoing/connected

6 Smart/fashionable/stylish/social/

7 Girls/high-tech stuff/rich

8 Artistic/busy/rich

9 Technologically savvy/organized/unintelligent/lazy

Focus Group

Results Part 2
- 3-5 words that describe a Smartphone lover

Group What they enjoy

What they wear What kind of friend
Members doing
Cargo pants/skirts/crop Being on the phone/ Terrible friend/always on
1 tops/flip flops/sweat video games/using new the phone/easily reachable/
pants technology not very social
Big sweaters/jeans/nice Computer/watching TV/
2 In touch/reliable/outgoing
boots exercising
Playing with their
3 Like to dress up phones/like to keep stuff Outgoing/love FaceBook
look nice
4 No clue Outgoing/connected
5 Business suites Social/sport
Playing with their
6 Shirts/dresses phones/surfing Showing off new apps
Internet/candy crush
Fashionable jeans/t-shirt Tech-savvy/youthful/in-
7 pictures/playing games/
or Polo touch with media
Enjoying FaceBook/
Something that is Enjoying connections with
8 Instagram/Twitter/
practical for all seasons their peers/easily reachable
CNN/Candy Crush/
Someone who will return
9 Business clothes Texting/social media
your calls or texts

Focus Group

Results Part 2
- Probe (going into more details)

Group Sony Blackbe

SamSung Motorola Apple HTC Nokia
Members Ericsson rry

Small Indestru
1 Big phones Razr phones iPhone Android Old
buttons ctbale

Market Out of Dead and Microso

2 Struggling Outgoing 2005
leader touch gone ft

Complicat Complex/
3 Outdated The norm Irrelavant 2008 Old
ed futuristic

Home A
4 Korean Hello moto! Android sound Keyboard
button weapon

5 Big Old Smart Popular Music Keyboard Hard

6 Thick Hello moto! Fancy Thick Girls Black Hard

Easy- Old/out- Lack of Not easy Horrible Old/easy Good/

broken dated new stuff to use sounds to breake stable

8 Galaxy Razr iPhone Phone Sweden Curve Snake

9 Asian Robot Fruit Letters BBMing Dconcs

Focus Group

Results Part 2
- Name the 1st
nameword pop up associated
of celebrities with
associated specific
brands of cellphones
specific brands of cellphones

Group Sony Blackber

SamSung Motorola Apple HTC
Members Ericsson ry
Kim Kevin Lamar
1 Toby Keith Tyler Bill Gates
Kardasian Durant Odom
Pamela Rdoert Alec Mick Jerry
2 Judy Dench
Anderson Dehiro Baldwin Jagger Seinfeld
Kim June Kim ment star Japan pop President
3 Steve Jobs
Un Kardasian from star of IBM
Kim June Wonder Steven Micheal
4 - Oneir
Un Girls Jobs Jackson
5 - - - - -
Someone Someone
Wonder Someone
6 Korean Jay Chou likes likes
Girls likes music
Androids keyboard
Jake Leonardo Ca Lo
7 Jim Carrey Lady Gaga Tom Green
Gylleuhall Dicarpic Green
Lier Peirce Fobs
8 Eric Schmidt Patrick Bruce Lee
Schrerier Broshan Mcgain
George Kim Aaron
9 Lil Bow Wow Bill Gates Kardashia
Clooney Karaanian Carter

Focus Group !


Status of brands will influence most of their purchase


Most people describe iPhone users are more connected,

trendy, fashionable and like to use social media a lot.

We found there are popular trends in faster Internet

access, higher quality of camera and longer battery life.

Non-iPhone users are prone to choosing iPhone when

they dont need to consider the price or have enough

Media Plan


Broad Our main communication objective is to

Communication maintain 90% product awareness from
Objectives our current users within the next six
months (January 2014 to June 2014.)

For our campaign, we want to reach 70%

of our target audience through various
Setting Reach & media vehicles during the six month
Frequency period.
Objectives !
We would like to achieve a frequency of
12, or twice a month, in the six month

Strategy and Tactics

Timing & Scheduling Media Mix Statement

We plan on running these ads For the campaign, we will be using

from January 2014 to June 2014. Our a media mix of internet, social media
research shows that iPhone purchases and non-traditional radio. Because our
are highest in the first quarter. target audience is current users, ages
Additionally, the iPhone 6 is rumored 18-24, we want to focus on mediums
to be announced in the third quarter of that are heavily used by our audience.
2014 (Charlton) . Therefore, the According to the survey we conducted,
iPhone 4 will be two generations all of our respondents use some kind of
behind at that time so a majority of social networking site, so we wanted to
Apples advertising budget should be focus on websites such as Twitter and
centered around the new release. Instagram. We also want to feature
! advertisements and sponsored articles
We will use a flighting schedule on popular internet websites like
alternating weeks (one week on, one Buzzfeed and Hulu, which are heavily
week off). This prevents the target populated with content that interest
audience from a phenomenon known our target audience. We also decided to
as the wearout (Katz 149). There is a focus advertisements on non-
less likely chance that they will be traditional radio such as Pandora and
annoyed by our advertising using this Spotify because our target audience
method. Wed prefer for the often uses these stations while studying
advertisements to run anytime after or on the go.
noon during the day. Most of the !
current users aged 18-24 are most We will distribute our campaign
active during this time. However, our throughout the entire United States,
out-of-home will run in continuity focusing mainly in larger urban areas.
throughout the six months. We will advertise during the first two
quarters (January-June) of the 2014
year. The advertisements will be
flighting, because instead of creating
awareness for new consumers, we
ideally want to maintain our current

Strategy and Tactics

We have selected a media buy of $10 million
stretched over a six month period. Well carry out our
message on the internet, social media, through non-
Media Categories traditional radio and out-of-home advertising. At the
& Types bottom of this section, a percentage of money allocation
is provided through a pie chart for each category.
Our biggest buys are through social media and other
internet advertising. Together they make up 70% of the budget. We chose this medium due
the fact that its beneficial for reach. Additionally, social networking has grown rapidly over
the past few years. Seventy percent of people under 35 use social networking. They also
spend roughly of their time on the internet interacting with social networks (Katz 97).
Furthermore, Internet advertising through social media and non-social media websites,
allows flexibility in terms of what type of ad runs (banner ads, commercials, etc). The
biggest concern using this medium will be fighting against the ad clutter on the web.
However, the Apple name has a strong brand presence, so we believe it will stand out on
social networks and other websites. Going forward, this medium would use a series of
banner ads on Hulu, Huffington Post, Youtube and sponsorship content on Buzzfeed to
promote the iPhone 4. In terms of social media, we plan on using sponsored tweets on
Twitter and photo ads on Instagram.
The non-traditional radio media buy requires 20% of the budget. This is beneficial to
our mix because it emphasizes frequency and also reaches a distinct target market (Katz
73). Since we are targeting current consumers aged 18-24, our buys will focus on ads based
on stations that play todays top hits. One weakness of traditional radio advertising is the
fact that its considered an In the background medium (Katz 75). However, our radio buy
is focused on Spotify and Pandora which only allow one ad to run at a time. We believe that
these listeners are more involved in listening than when listening to traditional radio which
run several ads before returning to music playing. Ideally, the plan out consist of 20 second
radio commercials with banner ads that ran when the user interacts with the website.
The remaining 10% is allocated towards out-of-home advertising specifically through
transit print advertising. This is primarily a medium to reinforce our message. It
supplements with meeting our frequency and reach goal (Katz 92). One of the biggest
downsides of out-of-advertising is the brief message exposure. Once again, we rely on the
Apple name and current knowledge the consumer possesses about Apples iPhone to help
get our message across quickly.


Media Buy Allocations



Social Media
Internet Allocations

Non-traditional Out-of-home
Radio Allocations Allocations

Social media will be our primary media
Media Vehicles vehicle due to the fact that it is both
heavily and widely used by individuals
aged 18 to 24. Instagram and Twitter
will be the two social media outlets we
focus in on because they are daily destinations that target in on specific
demographics, interests and social connections. Both platforms have high
engagement figures and most current iPhone 4 users have downloaded Twitter
and Facebook apps on their phones.

In terms of our Internet presence, we have chosen to focus in on four key

websites in order to most effectively reach our target audience. These websites
include Buzzfeed, Huffington Post, Hulu and Youtube, and we plan on using
each vehicle in a strategic, well-calculated manner. Buzzfeed, a platform
displaying viral web content, caters exclusively to a young, college-oriented
population. Thus, because a large chunk of our target audience is in their
college years, it is a perfect medium to connect with them. In somewhat the
same way, Huffington Post is an incredibly popular, liberal media outlet that is
used to consume both national and worldwide news. In fact, in July of 2012,
Huffington Post was ranked number one on the 15 Most Popular Political Sites
list by eBizMBA Rank. Young people favor it over traditional news websites due
to the fact that it broadcast news in an entertainingly original way while still
remaining completely credible and trustworthy. Consequently, it is a perfect
medium to reach our target market. Both Hulu, a website streaming movies and
television programs, and Youtube are also incredibly popular amongst younger
generations, which would make them both ideal platforms for speaking to our
target audience.

We will allocate the next portion of

our efforts to Spotify and Pandora, both
Media Vehicles
of which are non-traditional radio
stations streamed via the Internet. These
two stations allow listeners to tune in free
of charge while simultaneously letting
advertisers run twenty-second spots in between songs. They are both used primarily
by younger generations, and are very common on college campuses. Because our
target audience is primarily college educated, this would be a perfect vehicle to reach

Finally, the smallest share of our media will be devoted to out of home media.
More specifically, we will use transit advertising in order to reach our target
audience. Print ads on buses, subways, transit stations and bus shelters demand
attention and cannot be tuned out, unlike other media vehicles. It also reaches
passengers and no matter what website or radio station theyre listening to, and
offers flexibility of advertisement size and location. Additionally, this is a prime
opportunity to reach students and professionals alike.

Non-Traditional While all of our media is relatively

traditional, we plan on using them in
Media non-traditional ways so that is more
appealing to the younger generation.
Innovation is the best way to keep a
somewhat outdated product fresh and appealing, which is why we intend
to use our media vehicles in that manner. The majority of our
advertisements will be extremely simple and straight to the point because
we understand that young people move at a quick pace with shorter and
shorter attention spans.

Flow Chart

Bibliography !
"10 Most Valuable Global Brands." CNNMoney. Cable News Network,
n.d. Web. 13 Dec. 2013.
Agomuoh, Fionna. "Samsung Galaxy S4 Costs $236 To Build: Will Its
Bill Of Materials Effect Its Retail Price?." International Business
Times. N.p., 20 Mar. 2013. Web. 12 Oct. 2013.
its-bill-materials-effect-its- retail-price-photo-1140611>.
"Apple IPhone 4." Phone Arena. N.p., n.d. Web. 14 Dec. 2013.
"Apple Inc. - Annual Report." Apple Inc. - Annual Report. United
States Securities and Exchange Commission, 31 Oct. 2012. Web. 24
Oct. 2013.

"Apple Store Locations." Apple Retail Store. N.p., n.d. Web. 24 Oct.
Bora, Kukil. "Samsung Galaxy S3 Goes On Sale In 28 Countries With
ITunes Rival Music Hub On Board." International Business Times.
N.p., 29 May 2012. Web. 19 Oct. 2013.
Charlton, Alistair. "Apple IPhone 6: Release Date, Specs, Price,
Rumours." International Business Times. N.p., 10 Dec. 2013. Web. 14
Dec. 2013.
iphone-6-rumours-leaks-screen- size.htm>.

"Company History: 1976-1981." / Company

History: 1976-1981. N.p., n.d. Web. 13 Dec. 2013.
"ComScore Reports August 2013 U.S. Smartphone Subscriber Market
Share." ComScore, Inc. N.p., 04 Oct. 2013. Web. 12 Dec. 2013.
Dillen, Van Kristine. Mobile Industry Overview & Trends. Women In
Wireless, April.2012.Web.13 Dec.2013.
DeNavas-Walt, Carmen. "Income, Poverty, and Health Insurance
Coverage in the United States: 2012." U.S. Census Bureau,
Sept. 2013. Web. 13 Dec. 2013.
"Education: Gallup Historical Trends." Gallup.Com. Gallup, Inc.,
2013. Web. 13 Dec. 2013.
Fall 2012 Product Electronics. MRI Reporter. N.p., n.d. Wed. 12
Nov. 2013.
Graziano, Dan. "Samsung Now No.1 in Smartphone Share, but Apple
Owns Revenue." BGR. N.p., 01 May 2012. Web. 13 Dec. 2013.
"IPhone Commercials." YouTube. YouTube, 06 June 2007. Web. 11
Oct. 2013.
J, Patrick. "Nielsen Says IPhone Now Tops in US Smartphone Market
Share." ISource. N.p., 2 Dec. 2010. Web. 15 Dec. 2013.

Katz, Helen E. The Media Handbook: A Complete Guide to
Advertising Media Selection, Planning, Research, and Buying. New
York: Routledge, 2010. Print.
"Key Mobile Marketing Stats and Trends For 2012." MarketingProfs.
N.p., 28 Feb. 2012. Web. 15 Dec. 2013.
Meeker, Mary. "2012 Internet Trends (Update)." 2012 Internet Trends
(Update). Kleiner Perkins Caufield Byers, Dec. 2012. Web. 13 Dec.
Richardson, Angelique. "Apple Computer, Inc." Apple Computers:
This Month in Business History (Business Reference Services, Library
of Congress). Apr. 2008. Web. 13 Dec. 2013.
Rogowsky, Mark. "More Than Half Of Us Have Smartphones, Giving
Apple And Google Much To Smile About." Forbes. Forbes Magazine,
06 June 2013. Web. 18 Oct. 2013.
than-half-of-us-have -smartphones-giving-apple-and-google-much-to-
"Samsung Galaxy S3 Ad." YouTube. YouTube, 20 Sept. 2012. Web. 18
Oct. 2013.
"Samsung Launches Biggest Campaign to Date, Galaxy S3."
Advertising Age Digital RSS. N.p., n.d. Web. 14 Dec. 2013.
campaign-date- galaxy-s-iii/235497/>.

Sanford, Glen. "IPhone." /. N.p., 2013. Web. 12

Dec. 2013.
Schnell, Joshua. "Infographic: The Evolution Of The IPhone."
Macgasm. N.p., 1 Oct. 2012. Web. 15 Dec. 2013.
The Evolution of Cell Phone Design Between 1983-2009."
Webdesigner Depot RSS. N.p., 22 May 2009. Web. 15 Dec. 2013.
Villapaz, Luke. "Apple IPhone Six Years of a Stunning Successful
Advertising Campaign." International Business Times. N.p., 04 Oct.
2013. Web. 11 Oct. 2013.
Yarow, Jay. "Samsung's Ad Budget Grew by 5X to $401 Million Last
Year, Crushing Apple." Business Insider. N.p., 13 Mar. 2013. Web. 18
Oct. 2013.
Zaky, Andy. "2010: Apple's $63.5 Billion Revenue Year." Apple Inc.
(AAPL):. N.p., 27 June 2010. Web. 15 Dec. 2013.