iPhone 4SX

Table of Contents
I. II. Executive Summary 1 Situation Analysis 3 a. Background. 3 b. Internal Environment.. 5 i. Strengths. 5 ii. Weaknesses. 5 c. External Environment- MICRO.. 6 i. Market Segment 6 ii. Mobile Restrained 6 iii. Mobile Casuals 7 iv. Mobile Intensive 8 v. Key Competitors 9 vi. Competitive Analysis Matrix.. 13 d. External Environment- MACRO. 14 i. Economical. 15 ii. Social/Cultural.. 15 iii. Technological 16 iv. Political/Legal.. 17 e. Critical Issues. 18 III. Mission Objectives. 20 a. Mission Statement. 20 i. Apples.. 20 ii. iPhone 4SX. 20 b. Key Marketing Objectives 20

IV.

Target Market and Marketing Mix. 21 a. Target Market.. 21 i. Adventurous and Outdoorsy Market. 21 ii. Blue Collar Workers Market. 21 b. Product Name.. 23 c. Positioning. 23 d. Product Strategies, Action Plans, Assessments 24 e. Pricing Strategies, Action Plans, Assessments.. 25 f. Placement Strategies, Action Plans, Assessments. 26 g. Promotion Strategies, Action Plans, Assessments. 29

V.

Financials. 32 a. Market Share 32 b. Unit Sales 32 c. Dollar Sales 33 d. Budget.. 33 e. Break-Even Analysis 34

VI. VII. VIII.

Performance Evaluation.. 35 Event Calendar 40 Appendices 46 a. Appendix A- iPhone 4SX Packaging. 46 b. Appendix B- Advertising Budget 47 c. Appendix C- Print Ad 1. 48 d. Appendix D- Print Ad 2. 49 e. Appendix E- Print Ad 3. 50 f. Appendix F- TV Ad 51

IX.

Works Cited . 52

I.

Executive Summary

Apple was founded back in 1976 by a twenty-one year old enthusiast by the name of Steve Jobs. With help from computer engineer Steve Wozniak, their main goal at the time was to create an inexpensive and simple to use computer. Little did they know Apple would evolve over the years while still following the foundation principles and have become a world-wide leader in mobile media. Our mission statement for our product (the iPhone 4SX) is focused on establishing Apple as the number one seller in telecommunications. By waterproofing the iPhone 4s, we hope to offer our customers an extra means of security, as well as to allow them to do activities with their phones that they have never be able to do before. Our product will be called the iPhone 4SX, and we plan to show the world that indestructibility is no longer an impossibility. We feel that the target markets that have the greatest potential for success are those of the adventurous/outdoorsy as well as the blue collar workers. We have positioned ourselves to urge the consumer that they will no longer have to worry about taking their phones anywhere with the risk of water damaging consequences. We have set reasonable prices for the three different size phones that we offer (16GB for $249, 32GB for $349, and the 64GB for $449). We feel in order to capture as much revenue as possible; we will make intensively distribute our product. We plan to ship to all Sprint stores, all 240+ Apple retail stores, as well as making available for single purchase through our online store. The promotions that will go along with the release of the 4SX are based on the idea of being simple yet effective. We do not want a lot

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of wordy advertisements, because we are all about the brand and we are going to heavily rely on word of mouth advertisements. We have set four marketing objectives that we, Apple, plan to achieve with the release of the iPhone 4SX and they are as follows: 1. Increase net sales by 25% 2. Increase customer satisfaction by 4% 3. Increase the total units sold by 35% 4. Increase market share by 3%. In order to help ensure that we will meet our marketing objectives, we will make use of technology, data, figures, sales reports, marketing audits, and surveys in order to learn where we need to improve on to better serve our customers which in return, results in success for Apple! Finally, the total budget for the iPhone 4SX is $40,772,472,186. This is based on the projected production of 97,595,550 units at a cost of $300 per unit. This budget includes all variable and fixed costs associated with the iPhone 4SX (such as our advertising budget of $20,000,000)! We are strong believers that the iPhone 4SX will only launch Apple further towards success in becoming the number one seller in mobile telecommunications!

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II.

Situation Analysis
a. Background

Apple is an American corporation that designs and manufactures computer hardware, software and other electronics. The CEO is Tim Cook who took over when Steve Jobs passed away in 2011. The company's best-known hardware products are the line of Macintosh computers, iPods, iPhones and the iPads. It has an extremely loyal user-base, which are the foundation of the company. Apples company headquarters is in Cupertino, California, and the company boasts 284 retail locations spanning 10 different countries. As of July 2011, Apple has 357 retail stores in ten countries, and an online store. It is the largest publicly traded company in the world by market capitalization, overtopping ExxonMobil by some $60 billion, as well as the largest technology company in the world by revenue and profit, worth more than Google and Microsoft combined. The Apple foundation started in 1976, twenty one year old Steve Jobs quit his day job at Atari and convinced computer engineer Steve Wozniak to quit his job at Hewlett-Packard. Together, in the garage of Jobs, they founded a new company which they named Apple. Their goal - create an inexpensive and simple to use computer. On April 1976, they introduced their first system, an encased circuit board known as the Apple I and were sold around six hundred dollars at the local electronics stores. By the time the Apple II and the Mac rolled around, Jobs and Wozniak had popularized the personal computing revolution. (Finkle 31-40) The cell phone industry is one of the fastest growths besides the Internet. Cell phones have gone through a huge change and its market has expanded globally. Since 1994, the cell
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phone industry has increased from 24 million to about 182 million in wireless phone and related devices operating in the United States with some 162-million mobile-phone users in the United States alone. The cell phone market is increasing very fast with todays ever-emerging technology and innovation in improving cell phones. Today, society is living with advance technology and everyone wants to keep pace with the new technologies. Cell phone industry is growing larger because it has become a necessity. Parents are getting mobile phones for their teens because they want to communicate in case of an emergency and the wireless carriers have made it easy to add users to their existing plans. And carriers are becoming successful in getting parents to expand their plans to include their teens. This increases buyers and increases market size worldwide. The cell phone industry has become increasingly larger within the last three years as a result of more affordable cellular phones as well as lower service costs. Companies are competing in an advance technology and communication sector in which success attracts customers to buy their products and services. The market is very competitive because they offer the same products and services, but has different physical attributes to the phones and different costs, which buyers have choices to choose from. Companies want to provide the best products and services to attract buyers by lowering cost and improving products, which makes the cell phone industry very competitive. (Schiesel 2005)

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b. Internal Environment
i. Strengths

Apple is a well-known name all over the world we do not need to explain to consumers who we are or what were about. With a company that has been praised as one of the most admired companies in the United States, it has a loyal base of consumers. Apple has pushed and keeps pushing its company to new limits. It has a strategy like no other company out there; it eats its own products up before their competitors do. Our strategy is one of the best and strongest ones around. We keep our loyal consumers on their toes for their new technology. From the iPads to the iPhones, Apple has been satisfying its customers with its technological innovation since the beginning of its time. Apple is always a step ahead in the game and it keeps on leading the path for other competitors.
ii. Weaknesses

When it comes down to weakness, Apple has issues with its products as well as its services. Most Apple products are not customizable. It is one size fits all technology and that can either be a plus or a negative. It depends on the consumers taste and what fits their needs for a particular product. Their strategy of eating up their own products in a short time span hurts customer loyalty because there is no sort of buy back system. Apple products are not cheap and customers pay a lot of money to own them. Its a negative aspect for Apple because its not affordable for all only consumers with higher income can afford to spend money on products that are for their personal use. A major problem that Apple has with its service is customer service. A customer who bought the product and is also loyal to this brand sometimes involves
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paying for tech support in order to fix a problem with a product. These are some weakness that hurt the company and affect the consumer target. Patent infringement lawsuit may affect financial condition for the company. (DataMonitor)

c. External Environment- MICRO

i. Market Segment

The mobile phone market can be loosely broken up into three segments: the mobile restrained the mobile intensives, and the mobile casuals. The mobile restrained group is comprised of the lightest mobile users, the mobile intensive group includes the heaviest mobile users, and the mobile casuals are in the middle.
ii. Mobile Restrained

In 2010, the mobile restrained was the largest market segment, including 53% of total mobile users, but that is down from 60% in 2008. Nearly all individuals within this group (96%) own a feature phone, which is a standard cell phone without the advanced features usually found in a smartphone. Most of them (57%) are over 45 years of age and 55% of them make less than $50,000 per year. Less than half (47%) say they text once a week and 27% say they take a picture once a week. About 47% admit to viewing and looking at cell phone advertisements, but a much smaller percent (28%) are actually influenced by these advertisements and make a list of the phones they want from the advertisements. There does not seem to be many opportunities in this segment because of the extreme lack of smartphone usage. They might find the waterproof and rugged feature of our phone interesting but it will

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most likely not result in them making a purchase. This segment does seem to be shrinking, however, which indicates that the other more marketable segments are growing. (InsightExpress 2010)
iii. Mobile Casuals

The mobile casual segment, which accounted for 24% of the mobile phone users in 2010, tends to use their phones as a lifestyle enhancing convenience. Smart phones are an emerging interest, with 15% of this segment currently using them and the rest owning a simpler feature phone. This group is slightly more likely to be female (65% female), and 59% are within the 35 to 54 age-range. The bulk of this segment (59%) makes less than $50,000 per year. Also, they are not completely devoted to their devices although they are more likely than the mobile restrained group to use their phone for text and pictures. The majority of the group (73%) said they text once a week, 43% said they take a picture with their phone once a week and 31% send pictures once a week. In terms of advertisements, 46% look at advertisements to see what they should purchase but only 35% make a want list of phones that they see on those advertisements. This segment has a few opportunities. First, they do appear to have a growing desire for smart phones. And second, they are not exceedingly attached to their devices but see them simply as a convenience to their lives, and this sentiment could possibly be catered to in some way by promotion or advertising. (InsightExpress 2010)

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iv.

Mobile Intensive

As of 2010, the mobile intensive segment accounted for 23% of the mobile phone market, up from 15% in 2008, which means the segment is growing quickly. This segment is known for having a desire to use all possible capabilities of their phone (internet, text messaging, pictures, videos, applications, etc.), implying they at least desire to be tech savvy if they are not already. Their tech know-how is further revealed by the fact that 68% of them own smart phones. The majority (86%) of intensive users fall in the 18-44 age range, and 54% of them make over $50,000 per year. Many said that their phone plays a key role in their lives, in fact 45% said they check their phone either first or second thing when they wake up in the morning. They are also more likely to have the decision making responsibility for travel, finance, health and other discretionary spending areas in their household and they consider themselves influencers of others in areas of travel, investments, discretionary spending, and personal care items. About half (53%) said they look at advertisements for mobile phones to see what they should purchase and 44% say they make a list of the phones they want from the ones they see advertised. There are many opportunities to market to this segment. Since this segment is growing, there is a great opportunity to market our smart phone to them. As the segment grows, there will be a larger chance of there being people interested in a rugged and waterproof smart phone. Also, this groups desire to use as many features as possible signifies that they do not simply buy any phone that sounds good, but search for the features they want. This could help our product if the idea of a waterproof and rugged phone appeals to them. The segments

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income provides an opportunity for our product because Apples products are known for high quality, but that quality comes at a premium price. Since they see themselves as influencers, obtaining their support for our new phone would be beneficial considering they might lead their peers to buy our phone as well. The same is true for the fact that many of them are the decision makers of their household. This group continues to further incorporate technology into their lives, which is certainly an opportunity. Because of how heavily this market segment tends to rely on their mobile phones, chances are they would want their device to be as durable as possible. Due to the lack of opportunity in the other segments and the likelihood of growth in this segment, our target market(s) will almost certainly come from the mobile intensives segment. Within this segment there are most likely smaller segments we can target. Mobile intensive users who: enjoy an active/adventurous lifestyle that puts their phone in danger; work in skilled labor putting their phone at risk of damage from impact or water. Overall there seems to be a shift in the mobile user population from restrained to casual and also from casual to intensive users. This will result in more people using smart phones and therefore more people wanting their smart phone to be rugged and waterproof. (InsightExpress 2010)
v. Key Competitors

Two key competitors for Apple are Samsung and HTC. Both Samsung and HTC have been very active in the smart phone market recently. Samsung has recently come out with its Galaxy S II smart phone, which has been marketed as a competitor to the iPhone 4s. HTC has also come out with many different versions of their very successful EVO 4G smart phones.
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Samsung has a strong market position in many of its product segments. It is second only to Nokia in market share for cell phones with 19%. Samsungs powerful market position is reinforced with its potent brand equity. According to Interbrands 2010 Top 100 Brands, Samsung Electronics was ranked in the 19th place overall with its brand value increasing 11% year-on-year to $19.5 billion. Among the information technology companies, it occupies the fifth position (Datamonitor). Samsung has a constant focus on research and development. During 2008 and 2009 Samsung has invested over 5% of its revenue into R&D activities and planned to increase that investment by over $1 billion from 2009 to 2010. They own several research facilities around the world and staff over 42,000 employees (approx. 25%) simply for research and development purposes. Their large dedication to R&D allows them to adapt to changing consumer preferences with agility and ease, making them an extreme competitor in the smart phone market. Samsung is not only in the cell phone market; in fact cell phones are a very small component of their whole business. Their diversified product offering allows them to gather revenue from many different areas in the event that one or several are not doing well. This approach also gives them a strong base of capital from which they can draw when they see an opportunity that needs a large investment. (Samsung, DataMonitor) Nevertheless, Samsung is not without weaknesses. In the recent past, Samsung has had several occurrences of product recall. In May 2009, they issued a recall for 160,000 Jitterbug cell phones for issues with 911 dialing. There have also been other non-cell phone related recalls in the recent past including microwaves and some refrigerators having issues with exploding parts. These recalls harm the assurance customers have in Samsungs products and are also bad for Samsungs brand reputation. (Samsung, DataMonitor)
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HTC has significant product development capabilities due to the fact that they have invested heavily in improving their own R&D capacity from very early on. At the end of their 2010 fiscal year, their R&D employees accounted for nearly 30% of their total workforce and in that same year they spent 4.6% of their total revenues on R&D. Because of their capabilities, they have continued to launch innovative and new products onto the market consistently. Their dependable and innovative products make their brand more visible and are good for their image. Their great development capabilities allow them stay competitive in the industry and grow their sales. HTC also has well diversified revenue streams with the US market only accounting for about half (52%), Europe accounting for approximately 33% and Asia and other markets accounting for the rest. HTC also has strong relationships with many other technology companies such as Microsoft, Google, Qualcomm, and has partnerships with many telecommunication service providers throughout its major markets. The three largest telecommunications service providers in the US, including Verizon, Sprint and T-Mobile, all designate HTC mobile phones as flagship offerings in their respective product lineups. HTC was also the first company to offer Android, which is an open platform, offering software for mobile devices including operating system, middleware and mobile applications. Because of their strong partnerships with leading technology companies and service providers, HTC can deal with varying consumer needs effectively. (HTC, DataMonitor) Despite all of this success and innovation, HTC has recently recorded declining margins. From 2008 to 2010 its operating margin went from 19.9% to 15.8% and in the same time its net margin declined from 18.8% to 14.1%. The decline was reportedly due to higher operating expenses and fluctuating revenues. These declining margins indicates the inability of the
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company to control costs effectively, thereby affecting its financial performance. (HTC, DataMonitor) Samsung and HTC in general offer both Windows and Android based smart phones. Android-based phones are popular because of their high capability for customization where the customer can make the device adapt to their own individual desired experience. Windows phones offer a totally unique user interface and every Windows phone is said to have Microsofts Zune music application. (Forbes 2012)

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vi.

Competitive Analysis Matrix

Apple iPhone 4S 16GB (+) Easy to use, tons of features, high quality, has strong status link, new Siri feature, iOS 5 (-) Not as customizable, no 4G (+) Available at participating wireless carrier stores and online Place

HTC EVO 3D (+) Very customizable, high quality, Android operating system, 4G (-) Battery life not as good, not as easy to use (steeper learning curve), not as much memory (+) Available at participating wireless carrier stores and online

Samsung Galaxy II, Epic 4G Touch (+) Very customizable, high quality, Android operating system, good battery life, 4G (-) Not as easy to use (steeper learning curve), (+) Available at participating wireless carrier stores and online

Product

Promotion

(+) Simple but effective ads, most carriers have discount (-) ads not informative enough, focus on image over features $649.99 (+) Price sets it apart (-) High quality of Apples devices come with a higher price point

(+) Fun and interesting ads, most carriers have discount (-) not enough ads

(+) Creative ads, most carriers have discount

Price1

$549.99 (+) Lower price for similar product features (-) More expensive than Samsung

$499.99 (+) Lowest of three for similar features (-) Price could bring quality concerns

From a comparison on Sprint.com (without discounts commonly given by carrier)

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d. External Environment- MACRO

The iPhone 4SX will be entering what is known as the Wireless Telecommunications Carriers in the US (NAICS: 51332). Key statistics in this industry are annual revenue of $195.8 billion with an annual profit of $40.7 billion. Annual growth was 5% from 2006-2011, and it is expected to grow to 4.2% from 2011-2016. Although Apple is not a primarily a cell phone manufacture, for this specific endeavor the iPhone 4SX will take Apple into the cell phone arena once again, and therefore the focus will be on the cell phone industry rather than the computer manufacture

51332 Wireless Telecommunications Carriers in the US

Key Statistics

industry. The chart shown below is the past and long term expectations for the industry:

Revenue ($m) IVA ($m) Establishments Enterprises Employment Exports ($m) Imports ($m) Wages ($m) Domestic Demand ($m) Wireless Subscribers (Thousands) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 99,511.40 113,245.80 128,177.40 139,775.00 153,435.40 160,919.70 167,662.20 168,846.10 187,592.80 195,754.60 201,757.30 212,249.80 221,314.70 230,765.80 240,916.60 38,034.30 43,309.10 46,628.40 47,825.40 47,837.70 51,430.90 60,222.70 62,350.40 68,407.00 71,016.90 78,372.00 84,315.40 88,588.30 94,718.00 101,939.50 11,079 11,512 11,959 13,385 11,485 11,928 11,475 10,782 10,425 10,212 10,023 9,818 9,617 9,420 9,200 3,691 2,207 2,295 2,222 2,099 2,446 2,369 2,239 2,173 2,133 2,096 2,051 2,003 1,955 1,901 192,050 191,220 192,760 190,950 196,740 205,070 195,770 189,610 170,470 160,000 152,000 145,000 139,000 134,000 132,000 10,558.70 10,200.70 10,161.30 9,630.30 9,951.30 10,365.30 10,184.80 10,204.90 9,756.90 9,600.00 9,576.00 9,425.00 9,313.00 9,179.00 9,174.00 138,878 157,042 181,105 203,669 229,619 249,235 265,550 280,200 289,727 306,236 320,629 332,492 348,452 357,163 368,235

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i.

Economical

Economically, the industry is predicted to do quite well. As shown above revenue is expected to grow to an estimated $240 billion in 2016. With the rise in revenue also comes a rise in profit. Due to acceleration in this field it is expected that the demand for cellular device will be very high as well. Therefore Apple Inc. will benefit quite greatly due to the fact that cellular companies will be demanding a more and more cell phones. Over the past five years the industry has far outpaced the economy (GDP), and this trend is expected to continue. The industrys contribution to the economy is expected to grow 2.3% annually, and therefore the GDP expected to expand at a 1.8% annualized rate, which offers very promising conditions. There are a few economic threats present. One of the major draw backs of cell phones is the fact that there is a high level of capital resources involved. More than $100 billion has been tied up in capital resources in the past five years. Cellular sites are also being upgraded and expanded which also leads to the increase in capital investment. Wireless participants have spent an estimated of $20 billion to maintain and upgrade wireless devices (IBIS).

ii.

Social/Cultural

Socially, there are many opportunities for the iPhone 4SX to capitalize on as well. The number one social opportunity being created in the world today is the dropping rate of wired telecommunications. Over the past three years the number of households with only wireless phones has tripled from 10.5% to 31.6%. Households with landlines have declined from 21.8% to 12.9%. This trend is expected to play a huge role in the expected growth of Apples given industry. It is estimated that houses with only landlines will decline another 6% by 2017, and households with only wireless phones is expected to increase to 46.5%. The projection for

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households with both is expected to drop 11% to an estimated 44.1%. Another promising opportunity is the fact that cell phone internet is in high demand. People nationwide are in need of cellular internet, and in most cases are using this as their primary means of internet usage (IBIS).With this trend it is expected that not only are more people going to convert to cellular devices, but also more people are going to be in need of cellular device for internet purposes as well. The trend is expected to provide Apples industry with huge benefits and prospects. Threats present in the social arena include primarily but not limited to health issues. The debate has been rising over whether or not cell phones contain a major health risk in the form of radiation. It is thought that electromagnetic radiation (EMR) is being produced by cellular devices. This EMR is not only being transmitted from the phones themselves, but also the tower based antennas carrying the signals. This radiation has been linked to the development of brain tumors, genetic damage, and other exposure related conditions (Kovach). It is not known what the long term effects will be, and whether this will grip the nation, but never the less it is a possible threat for future cell phone demands.

iii.

Technological

In the technology field there are many opportunities present. One major opportunity is the fact that the prices of semiconductors and electronic components is expected to drop. A drop in these prices will in turn create lower costs, and in turn will cause a higher profit turnover. Another great opportunity present is the emergence of LTE as the dominate 4G wireless technology. 4G is the future of wireless technology, and with the introduction of LTE it is expected that there will be more of a rapid transition to 4G devices (IBIS) The speed that 4G
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networks provides is to be unmatched, and will in turn create a great opportunity for the future and increase demand. There are also threats present in the technology field as well. One of the main threats is dealing with the limited wireless spectrum. Spectrums are in essence wireless capacity. Wireless carriers have to obtain licenses from the FCC to transmit. There are only a limited number of frequencies and the organization of the spectrums is lacking. Due to this the availability of spectrums is also limited for wireless services. The explosive demand that accompanies cell phones is adding to problem. Cell phones need spectrums to operate and with more and more being created, the spectrum space is getting very crowded. This crowded spectrum space in turn leads to dropped calls, slow wireless internet service, and in turn results in a lower quality (Ovide). This drop in quality and service could possibly lead to a loss of demand, and in turn a conversion back to landlines.

iv.

Political/Legal

Politically, the Federal Communications Commission (FCC) makes all decisions regarding US wireless communications carriers. The level of regulation right now is medium, but in the future the level of regulation is expected to go up. The FCC is currently in charge of and monitoring spectrum space, and recently they are allowing more and more upstarts to purchases spectrum space, and resell them. The FCC is thus preventing large companies from obtaining large amounts of spectrum space to prevent hording and a monopoly type atmosphere. Thus, as the available spectrum space becomes more and more scarce, the FCC will be very influential in the matter. The FCC is also investigating competition in the wireless industry. Vertical Relationships are being closely examined, and they are investigating how these relationships
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affect competition. The vertical relationships they are talking about primarily refer to the upstream and downstream market segments. No laws have been implemented yet, but the FCC is questioning and researching these business actions. This could lay the groundwork for future legislation and stricter regulations (IBIS).

e. Critical Issues
The first critical issue that can be identified pertains to one our strengths and consists of how Apple is continually developing new products, and essentially eating its products up. This is turn creates a very competitive edge for Apple. We are constantly searching for new ideas and probing for continual improvement. This keeps our competitors on their feet, and we are typically the first ones to own a new idea. Apples thus pushes to be the original creator of new products, and essentially become the leader of the particular product. We plan to use this strength, and create another product that has yet to be introduced. Another factor that will be driving our plan is the threat present from our competitors. Samsung and HTC invest large amounts of money in research in development. Samsung invest over 5% of its revenue in R&D, and plans to increase the amount by over $1 billion dollars. HTC spent 4.6% of their total revenue on R&D. This large dedication to R&D helps our competitors launch innovative and new products, and creates a very competitive environment. Both of these companies specialize in android-based phones. These phones are very popular because of their high capabilities for customization. Customers can adapt these devices to their own individual desires and enhance the customization feature.

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The last factors driving this plan is the fact that wired telecommunications are dropping dramatically and internet derived through cellular phones are in high demand. Households with wireless phones have doubled from 15.8% to 29.7% in the past three years. Households with landlines have declined by 10%. By 2017 it is estimated that households with only wireless phones will increase to a whopping 46.5%. People across the globe are demanding that cell phones be their primary means of internet. The internet provided by cellular phones is much more convenient than other forms of internet. Apple plans to play off this opportunity, and cater to this demand while providing new and improved products, and in the process reap the benefits of the social factors present.

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III.

Mission Objectives

a. Mission Statement
i. Apples:

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.
ii. IPhone 4SX:

Our mission is not only to continue to carry on the Apple tradition of innovation and improvement, but we plan to expand on the iPhone 4S. We want to improve this current model in order to become the number one seller in telecommunications and in the process produce a phone that the world has only imagined. We plan to create an iPhone that is not only durable, but also one that can withstand water contact. Through this we hope to give our customers an extra means of security, and allow them to do activities with their phones they have never been able to do. This new model will be called the iPhone 4SX, and we plan to show the world that indestructibility is no longer an impossibility.

b. Key Marketing Objectives

1. Increase net sales by 25%, from $47,057,000,000 to $58,821,250,000 2. Increase customer satisfaction by 4%, from 88% to 92% 3. Increase the total unit sold by 35%, from 72, 293,000 units to 97,595,550 units 4. Increase market share by 3%, from 43% to 46%
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IV.

Target Market and Marketing Mix

a. Target Market

For our target market we have decided to go after the outdoorsy and adventurous type of people as our main focus. We will also focus on a secondary market as well, which consists of blue collar workers. We have decided for these as our targets because we feel they best meet what we are doing with our product, which is waterproofing. We will be keeping our focus in the United States of America.
i. Adventurous and Outdoorsy Market

We have decided to focus our primary efforts on the adventurous and outdoorsy markets. We think a majority of these types of people would love the water resistant feature our product offers. Some of the demographic information we have found to be includes, adventurous people have a $59,000 median income and 70% of those adventurous people are males (Demographics). Also, more than 20% of Americans, which is at least 62,655,000 people, go tent-camping (Weisberg). In 2005, it was estimated 34% of Americans go hiking (OConnell), which at the time was 100,556,020 people and now it is about 106,572,884 (US Population Clocks).
ii. Blue Collar Workers Market

The Blue Collar Workers of America will be our secondary target market in which we will go after people and companies who have jobs that can put their phone in potential danger. For this market we know that 20% of Americans in the work force are involved in a job that involves

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strenuous physical activity (Niman); with the work force being 153,400,000 in the United States (World Factbook), 20% of Americans is around 30,680,000 people. To prevent overlap from our adventurous/outdoorsy demographics, we will take out 34% of that giving us a total of 20,248,800 people in this target market. With companies we will attempt to go after industries that suit our product description of being for the more rugged job types for their employees and have bulk discount plans in place. Since we know 70% of our adventurous market are male as well as a large majority of our blue collar workers are also male, this is where we will focus our media strategies on. With roughly 60% of sports fans of the top 6 sports leagues (MLB, MLS, NASCAR, NFL, NHL and NBA) in North America being male (Fan Demographics Among Major North American Sports Leagues) along with ESPN being the top cable network amongst men (Guthrie). Though we dont plan to invest too heavily here, as we feel our product will become quickly known through word of mouth once it is released. As of 2010, the mobile intensive segment is up 15% from 2008, which means the segment is growing. The mobile-intensive segment tech know-how is shown by the fact that 68% of them own smart phones. The majority (86%) of intensive users falls in the 18 - 44 age-range and 54% make over $50,000 per year. (InsightExpress 2010) We believe by targeting these markets as our potential consumers, we are building on an opening for potential of high demand, and expect the iPhone 4SX to become a huge hit!

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b. Product Name
We have chosen to keep the core name of the product we are further developing in the iPhone 4S, which is the latest in Apples highly successful iPhone line. Then to give it the distinction of our product we have decided to name it the iPhone 4SX. We feel this fits perfectly with what we are building upon with the current line as x to many signifies extreme and has other adventurous components like the X Games. And with keeping the core name of an already successful product, we know people will know that this phone reaches for the boundaries of technology and innovation.

c. Positioning
Our goal is for consumers to not have to worry that their phone could be damaged if its raining or if they are going to be around water. We want them to have the freedom to be out and about having fun while maintaining the sense of security that our phone provides a waterproof and durability standard that is unprecedented with a phone of this caliber. We want the average American adventurer to go out with their phones with the peace of mind that if they encounter water, they are not going to have to worry about getting their phone in a bag of rice or even more simply, losing all the data as well as their phone to water damage. We want the consumer to be able to enjoy whatever life puts in front of them. We believe that our waterproofing feature makes a more durable product which is what we feel our target market is looking for and needs. There has yet to be another product that has been released into the United States market with similar features, which we feel will gives us a competitive advantage over our competition.
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d. Product Strategies, Action Plans, and Assessments

Our main objective is to satisfy our primary target of the adventurer and the typical blue collar worker who needs a more durable phone called the 4SX. With the waterproof shell we believe that we can expand our market in these areas and increase productivity by 15%. Right now the iPhone is just 13.5% of the nations market, so there is a lot of room to grow. (marketingminds.com) What Apple wants in this new market is the sense that the adventure and blue collar worker who works in unpredictable conditions can depend on their phone if it gets wet. It will have all of the previous 3G and 4s capabilities, but with this added feature it can give this target market a reason to keep going and finish their task at hand. Apple Inc. will offer a one year warranty that will cover all manufacturing defects; we will charge up to a $50 deductible to any outside damages done to the 4SX in order to fix or replace the broken/defective feature. We expect to have 5% of our phones returned within the first year of release, which results in 4,880,000 units. We at Apple Inc. have managed to create substantial value in the highly competitive consumer electronics industry, by coming up with ideas and paving a new direction that our competitors in our industry must follow to keep up with. We have successfully differentiated our products from those of the competition by choosing to focus on quality, design elegance, and superior customer service with addition to innovating new ideas. With the release of the 4SX, we at Apple Inc. plan on utilizing the internet and Sprint service locations to market the Apple 4SX smartphone and services to consumers and other Apple Inc.
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target audiences. The 4SX will come in our standard packaging that is currently being used with the 4s, which includes a wall plug charger, a single pair of head phones, as well as an owners manual. Any other accessories will have to be purchased separately online or through any Apple and/or Sprint bricks and mortar stores. (Appendix A) Our product marketing objectives with the 4SX is to increase profits, increase market share, and to maintain brand image. At Apple Inc. we believe that the consumer comes first and we are constantly re-evaluating our strategy to meet the consumers expectations. The goal at Apple is to deliver a product that is unique, affordable, easily accessible, and in line with the times. Brand recognition, advertising, word-of-mouth, and consumer loyalty has been our success of late and now with the 4SX we plan to capitalize on this with repeat customers and new business. With the release of our new waterproof 4SX, Apple Inc.s action plan consists of announcing the latest technological upgrade at its next invitation only event or technological conferences that are put on bi-quarterly. Apple is always looking for new markets to venture into and it is always looking for new ways to expand its brand nationally. Apple Inc. feels that our waterproof device will segway us into our target market and be a success.

e. Pricing Strategies, Action Plans, and Assessments

When it comes to pricing the new 4SX, Apple Inc. believes with the new waterproof protection we can increase the price by 50 dollars. Before with the 4s Apple Inc. was selling the 16GB for $199, 32GB for $299, and the 64GB for $399. (common.ziff.com) But with the 4SX Apple Inc. will be charging 16GB for $249, 32GB for $349, and the 64GB for $449. These prices
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are all based on purchase with a new contract through Sprint at their $89.99 monthly service plan. Any other purchases of Apples 4SX will result in a price jump equivalent to two times the Sprint service price. That means that the 16GB will sell for $499, 32GB for $699 and the 64GB for $899. For companies that are switching over their phones to the new 4SX and purchasing 300 or more units, we will offer a 10% discount on their total sale and they will save another additional 15% if they decide to switch over to Sprint as their cell phone service provider. Individuals who purchase the 4SX will receive a 10% discount if purchased directly from us online or at our store locations. These purchasers will need to sign a contract with Sprint to get the introductory price listed above. If they dont sign a contract they will still get 10% off purchase, but have to pay full retail suggested price. With product distribution, Apple is willing to offer free shipping within the continental U.S. if the purchaser purchases 100 units or more. If under 100 units the purchaser is required to pay a shipping fee per unit sold of $6 if you live on the West Coast, $9 if you live in the Midwest and $12 if you live on the East Coast. All these units will be distributed through our distribution channel and we will guarantee customer satisfaction or Apple Inc. will immediately buy back the product or replace it.

f. Placement Strategies, Action Plans, and Assessments

The iPhone 4SX opens up its market share because of its newest water resistant feature creating high demand amongst many different marketing mixes. In order to maximize profits within our different target markets and remain at the top of sales in telecommunications, we
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plan to distribute our product intensively into the consumer market nationwide. In doing this, we hope to create easy accessibility of our product to ensure high customer satisfaction. Apple currently has more than 240 retail stores nation-wide where we plan to distribute the iPhone 4SX; where the consumer can interact with our knowledgeable staff to get face-to face explanation of features as well as technical support. We plan to contract the iPhone 4SX for sale with data packaging plans through a single US wireless communication company of Sprint. Additionally, we will also make our product available for direct purchase and distribution 24/7 with full online technical support by phone 1-800-MY-APPLE (1-800-692-7753) as well as through our online store at http://store.apple.com/us. After our product has successfully completed the manufacturing process, it will be shipped by commercial carrier to the designated telecommunication company (i.e. Sprint). We will offer a promotion for free shipping with the purchase of 100 or more iPhones to one designated bricks and mortar Sprint store. For our online or over the phone purchases, we will ship via commercial carrier or parcel carrier of our choosing. We have divided up the country into 3 different shipping areas (West Coast, Midwest, and East Coast). We will be shipping out of California therefore the flat shipping rate per unit for the west coast will be $6, $9 for the Midwest, and $12 to the East Coast. We do allow the estimated delivery time to be chosen by the consumer at their own expense (ex. Standard, 2 day, Next day, etc.). We will also offer an option for consumers to pick up their iPhone 4SX in store when purchasing via phone or online. Apple will cover the shipping cost for in-store pickup.

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Due to the fact that one of our main company objectives is to increase customer satisfaction, we find it essential to provide reverse channels of distribution in order to deal with issues such as incorrect orders, manufacture defect, product defect, dissatisfaction of the product, etc. An effective and well organized plan for our reverse channel of distribution does not only allow us to operate efficiently, but also shows the consumers that we care strive to achieve brand loyalty towards a long run goal of brand insistence! Customers who purchase the iPhone 4SX through Sprint must return the phone back to that same store. The telecommunications service provider will allow you to try out the phone for 30 days in which they will grant you a full refund if you chose to go with another smartphone. If you are returning a phone under warranty or if you have an insurance package, Sprint will issue you a Certified Refurbished Phone that day (depending on product availability i.e. backorders) and then will turn around and ship the phone to our manufacturing plant in California to be fixed. The consumer has two return options when purchasing from our bricks and mortar stores or online. We allow the consumer 30 days to return the phone via mail, in which they can print out a return label online for free. If the phone is returned within 30 calendar days of purchasing, we will not charge a restocking fee. The consumer will also have the option to return the phone to one of our 240 bricks and mortar stores to have a specialist assist you, under the same conditions. We urge consumers to contact our Apple Customer Service at 1800-676-2775 regarding wrong orders, damaged goods, or with problems with the return process. No matter what form of reverse channel is used, all phones must be returned in the original packaging, including any accessories, manuals, and/or documentation. We here at

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Apple view this as the most effective way to manage customer returns in a timely manner which results with a higher customer satisfaction level. (Apple-Shipping and Pickup)

g. Promotion Strategies, Action Plans, and Assessments

Society has been adapting to a society full of mobile media/technology. Nobody wants to be tied down to a wall cable, let alone one location at all. With that comes a great deal of research on the consumers part because they have specific needs that need to be filled such as battery life, durability, network speed, etc., which makes advertising knowledge key for success in the mobile phone industry. Apple has an advertising budget of about $1 billion dollars for the company as a whole, and we plan to use just 2% of that or $20 million to advertise for the iPhone 4SX (Appendix B). We plan a low budget because after releasing our product into the market, we plan on word of mouth advertising to outweigh commercial advertising. (Apple 10-K Annual Repot 51) With our print ads, we will focus on the simplicity factor by showing our phone and the name of it, and a small catch phrase to invoke attention. We will mainly focus on showing the phone in water to portray the waterproofing aspect which is an innovation from the iPhone 4 (Appendices C-E). We will print them in magazines that our target markets subscribe to such as: BusinessWeek, Entertainment Weekly, Newsweek, Time, Forbes, Islands, Travel + Leisure, etc. We will advertise in several, but not all, issues throughout the year. We will heavily increase our print ads during the summer when our television ads decrease. We have estimated to run 120 magazine ads throughout the year, which our budgeted cost is $720,000. We believe that this is

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the time that our target market will be traveling the most, which results in an increase in the number of magazines read. With our television ads, we will focus on the ability to relate with our consumers. Through our television ad (Appendix F), we hope to create an emotional response that our target markets can relate to using similar instances of dropping their phones into water, which would spark interest in our product. We plan to advertise these 30 second commercials on many major networks like but are not limited to: Discovery, USA, TNT, Travel, MTV, TLC, and ESPN. The programs that we will advertise in prime time spots are as follows (but not limited to): major leagues games such as MLB, NFL, NHL, NBA, and NASCAR, Whale Wars, Deadliest Catch, and Law and Order. We plan to increase advertisements during the major holidays and back to school because those are the times when consumer spending increases the most throughout the year. We will cut back our television ads down during the late summer months, due to the fact that the amount of television watched usually decreases, but we will heavily advertise in the spring because that is when most construction jobs pick back up from the winter, so we want to try and persuade the consumer to not return to work without the new waterproof iPhone 4SX. We have scheduled for 170 television ads to run throughout the year costing us about $15 million dollars. We have also allocated for a reserve of almost $5.5 million in order to sponsor different promotions as the year progresses. We will host multiple events throughout the first year of market entry in hopes of achieving and maintaining brand loyalty. The first event is hosting a pre-party at the ING New York City Marathon to display the iPhone 4SXs waterproofing ability.

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We will then give one away to each of the top 5 male finishers and the top 5 female finishers. A second promotion event we will be selecting 30% of our retail stores nationwide and have a waterproofing event in store. We will hold a raffle where the proceeds will be donated to charity. Throughout the day we will raffle off 5 iPhone 4SXs per store. Apples goal with these events is to obtain public awareness that our product does work, and at the same time, increasing sales by getting consumers in stores and getting them firsthand information they are looking for when selecting the right phone. (See Appendix B and Event Calendar)

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V.

Financials
a. Market Share

Android 47% Apple 43% RIM 6% Windows Phone 7 2% Windows Mobile 1% All Others 1% With the implementation of the iPhone 4SX we plan to increase our current market share of 43% to 46%. The iPhone 4SX will continue to attract avid Apple customers but will also attract new customers. With this in mind, we hope to gain 3% more of the market share.

b. Unit Sales
Total iPhone Units Sold in the Respective Year: 2010 39,989,000 Units Sold 2011 72,293,000 Units Sold 2012 97,595,550 Units Sold In 2012 we expect to increase unit sales by 35%. This means that an additional 25,302,550 units will be sold with the implementation of the iPhone 4SX.

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c. Dollar Sales
Total iPhone Net Sales in the Respective Year: 2010 $25,179,000,000 2011 $47,057,000,000 2012 $58,821,250,000 In 2012 we expect to increase unit sales by 25%. This means that an increase of $11,764,250,000 for net sales is to be made with the addition of the iPhone 4SX.

Cost Category iPhone Manufacturing (Variable Costs) Per Unit Total Variable Costs Fixed Costs

Cost Contributor Materials (Average) Overhead Labor

Cost $210 $47 $43 $300

Research and Development Selling, General & Administrative (Advertising/Marketing/Distribution) Miscellaneous (Returns/Warranties/Accessories)

$2,704,425,000 $6,761,063,220 $2,028,318,966 $11,493,807,186

Total Fixed Costs

d. Budget
The total budget for the iPhone 4SX is $40,772,472,186. This is based on the projected production of 97,595,550 units at a cost of $300 per unit. This budget includes all variable and fixed costs associated with the iPhone 4SX.

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e. Break-Even Analysis
We have 3 different selling prices for the 3 different types of iPhone 4SX available (16GB, 32GB, 64GB). We will use an average selling price of these phones to obtain the selling price per unit which ends up being $456.

Break-Even Point in Units = Total Fixed Costs / (Selling Price Per Unit Variable Cost Per Unit) = $11,493,807,186 / ($456 - $300) = 73,678,252 Units

Break-Even Point in Dollars = Break-Even Units * Selling Price Per Unit = 73,678,252 * $456 = $33,597,282,912

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VI.

Performance Evaluation

In order to maintain and be assured that our objectives are being met, Apple will follow a set of rigid procedures. We plan to make use of technology, data, figures, sales reports, marketing audits, and surveys in order to get up to minute assessments, and in the process help ensure that the iPhone 4SX is living up to its projections. It is through such methods that Apple will be able to monitor its performance, and we will be able to make changes as we see fit in order to maximize our success. Increase Net Sales by 25% For our first objective of increasing net sales by 25%, we plan to use bi-weekly sales reports, budget reports, and 10-Q forms. As stated we plan to do evaluations on a bi-weekly basis rather than a monthly basis. By doing all this on a bi-weekly basis, we can see rapid results. This allows Apple to see very quickly if we are on track to meet our objectives or not. The bi-weekly process will allows us to be able to fix problems when they first occur, rather than letting them get out of hand. Apple will require sales reports from all of its stores, departments, and factories to be posted on a bi-weekly basis and it must be sent to headquarters. Once sent to headquarters the evaluation will begin. This will allow us to see how many units are being sold, the individual sales for each component of Apple, and whether we are on track to make X amount revenue to ensure the increase of net sales by 25%. We also plan to make great use of our budget. As any company knows without a good budget, a company will falter. We plan to evaluate our budgets on a monthly basis, and see whether we are on track in terms net sales. By reviewing the budget on a monthly basis it will help ensure
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that we are not under selling, and thus help ensure that our net sales goals will be met. If underselling is encountered, an investigation will begin to see what is causing the underselling, and depending on the results, an increase in promotion might be necessary or a personnel change. We also plan to observe net sales on a quarterly basis through our 10-Q forms. The 10Q forms will tell us our companys financial results, significant changes that have taken place, and also let us know whether we are on track to reach a net sales increase of 25%. Increase Customer Satisfaction by 4% In terms of how we will measure our customer satisfaction, we will mainly use the results from our customers satisfaction survey. Surveys will be handed out upon purchase, and also will be sent via email from information gathered during purchase. This will allow Apple to see if we are in fact increasing customer satisfaction by 4%. This will tell us our customers thoughts, opinions, and attitudes towards the iPhone 4SX. We can truly see if our product is living up to our customers expectations, and what improvements are needed. In order to encourage the return and completion of surveys, Apple will offer three free songs downloads through iTunes or one free app of up to $5 in value for their brand new iPhone. Once Apple has received the survey, a text message will be sent to the recipient. The recipient will be able to choose whether they would prefer the three free songs or the free app. If the three free songs (Songs being $1.29 each) are chosen, an amount of $3.87 will be automatically added to their iTunes account. They will be able to surf the iTunes store and choose three songs of their choice. If they chose the free app option in the text, they will then be able to surf the web and choose the app of their choice as long as it is not greater than $5. This will allow Apple to

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receive a greater proportion of customer satisfaction surveys, and the measurements will be more accurate. The following is an example of our customer satisfaction survey:

iPhone 4SX Customer Survey Product Serial Number: ________________ Date Purchased: ________________

Store Name/Location: ________________________________

1. What caused you to purchase or upgrade to the iPhone 4SX? a. Waterproofing Feature b. Durability c. New Phone Needed d. Cellular Contract e. Other (Please Specify) _______________________ 2. How were you informed about the iPhone 4SX? a. Television advertisement b. Print advertisement c. Billboard advertisement d. Friend e. Other (Please Specify) ___________________________________________ 3. How well has the iPhone 4SX live up to your expectations (1 = Worst and 10 = Best)? 1 2 3 4 5 6 7 8 9 10 4. Was the product easy to purchase and obtain? a. Yes b. No (Please Identify) _____________________________________________ 5. Once purchased was your product easy to start up and no major problems were encountered? a. Yes b. No (Please Identify) _____________________________________________ 6. Were customer service representatives helpful and did they assist you in your every need? a. Yes b. No
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7. Were you satisfied with this product on an overall basis? a. Yes b. No 8. Were the waterproofing and durability features beneficial and convenient to your phone usage? a. Yes b. No 9. If you could change or add something to the iPhone 4SX, what would it be? a. Cellular Reception b. Size/Weight c. Speaker d. Battery e. Memory f. Screen Features g. Other (Please Specify) ____________________________________________ 10. Other comments or advice for Apple to improve our product/customer satisfaction. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 11. Demographic Info Age: _________ Gender: _____________ Race: _________ Family Size: _________ Occupation: _________________ Marital Status: ___________

Thank You. Your feedback is immensely appreciated.

Increase the total units sold by 35% In terms of how we plan to measure the increase in total units sold, we plan to make use of our proficient databases. Upon purchase the item will be scanned, and the information will be automatically entered into our computer database. Whether purchased individually

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from a customer or purchased from our carrier Sprint, we will have purchases entered into our database. Due to technology, measuring the results will be extremely easy and convenient. We will not be primarily concerned with how many units Sprint actually sells, but rather how much Sprint buys from us directly. By using individual purchases from customers and Sprints purchases as the primary means of information obtainment, we will have an opportune way to calculate the total units sold, and thus see if we are on track to meet our goal. Increase Market Share By 3% To evaluate our projected increase in market share, we will perform market analysis. We plan to have this done on a monthly basis. Our goal is close the gap between ourselves and Android. Android currently has the greatest percentage of the market share for operating system. Android currently has a 47% market share, and Apple is ranking in at a close second at 43%. We expect to lessen this gap, and bring ourselves by within 1% or less. We plan to obtain these numbers by computing the total units sold, and the total revenue. We will then figure the total number of smartphones sold nationwide, and divide this by our total units sold. As stated we plan to have an increase in units sold, which will in turn create a larger percentage of market share for us. The monthly review will once again let us know our status, and let Apple know whether changes need to be implemented.

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VII. Event Calendar

May 2012
Sunday Monday Tuesday Wednesday Thursday Friday 1 2 3 TV-Survivor 8 9 TV-Survivor 10 Saturday 5 Nationwide Raffle 11 12 4

6 Nationwide Raffle 13 NASCAR 20 27

14 21 28

15

16 TV-Survivor 22 23 TV-Survivor 29 30 TV-Survivor

17 24 31

18 MLB 25

19 26

June 2012
Sunday Monday Tuesday Wednesday Thursday Friday 1 3 TV-Survivor 10 NASCAR 17 24 4 5 6 7 8 MLB 15 Saturday 2 9

11

12

18 25

19 26

13 TVDiscovery 20 27 TVDiscovery

14

16

21 28

22 MLB 29

23 30

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July 2012
Sunday 1 8 Monday 2 9 Tuesday Wednesday Thursday Friday 3 4 5 10 11 TVDiscovery 18 25 12 Saturday 6 13 MLB 20 27 London 2012 Olympics 7 14

15 NASCAR 22

16 23

17 24 TV-TNT

19 26

21 28 London 2012 Olympics

29 London 2012 Olympics

30 London 2012 Olympics

31 London 2012 Olympics

August 2012
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 London London London London 2012 2012 2012 2012 Olympics Olympics Olympics Olympics 8 9 10 11 London London London London 2012 2012 2012 2012 Olympics Olympics Olympics Olympics 15 16 17 18 MLB

5 London 2012 Olympics 12 London 2012 Olympics 19 NASCAR 26

6 London 2012 Olympics 13

7 London 2012 Olympics 14

20 27

21 28

22 29

23 TV-USA 30

24 31 MLB

25

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September 2012
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 9 NASCAR 16 3 10 TV-NFL 17 TV-NFL 24 TV-NFL 4 11 5 12 TVDiscovery 19 TVDiscovery 26 6 13 7 14 MLB 21 8 15

18

20

22

23 30

25

27

28 MLB

29

October 2012
Sunday Monday 1 7 14 8 15 TV-TNT 22 Tuesday 2 9 16 Wednesday Thursday Friday 3 4 MLB 10 11 TV-NFL 17 18 TVTV-NFL Discovery 24 25 TVTV-NFL Discovery 31 Saturday 5 12 19 6 13 20

21 NASCAR 28

23

26

27

29

30

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November 2012
Sunday Monday Tuesday Wednesday Thursday 1 Friday 2 ING New York City Marathon 9 Saturday 3 ING New York City Marathon 10

4 ING New York City Marathon 11 18 NASCAR 25

6 NHL

12 TV-NFL 19 TV-NFL 26

13 20

14 21

15 TV-USA 22

16 23

17 24

27 TV-TNT

28

29

30 NHL

December 2012
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 TV-USA 8 15

2 9 TV-TNT 16 TV-TNT 23 30

3 10 TV-NFL 17 TV-NFL 24 31

4 11 NHL 18

5 12 TVDiscovery 19 TVDiscovery 26

6 TV-ESPN 13

7 14

20

21 NHL 28

22

25

27

29

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January 2013
Sunday Monday Tuesday 1 6 TV-NFL 13 TV-NFL 20 TV-NFL 27 7 8 TV-TNT 15 Wednesday Thursday Friday 2 3 9 10 Saturday 4 5 12

11 TV-USA 18

14

21

22 NHL 29

28

16 TVDiscovery 23 TVDiscovery 30

17

19

24

25 NHL

26

31

February 2013
Sunday Monday Tuesday Wednesday Thursday Friday 1 3 Superbowl XLVII AD 10 4 5 6 7 NHL 8 Saturday 2 9

11

12 TV-USA 19

13

14

15

17 Nationwide Raffle 24

18

20

21

16 Nationwide Raffle 22 23

25

26

27

28

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March 2013
Sunday Monday Tuesday Wednesday Thursday Friday 1 3 4 5 6 7 8 Saturday 2

10 Nationwide Raffle 17 24

11

12

13

14

9 Nationwide Raffle 15 16 TV-USA 22 29 TV- ESPN 23 30

18 25

19 26

20 27 TVDiscovery

21 28

31

April 2013
Sunday Monday 1 Tuesday Wednesday Thursday Friday 2 3 4 Saturday 6 Nation Wide Raffle 12 13 5

7 Nation Wide Raffle 14 21

10 TV-ESPN

11

15 TV-USA 22

16 23

17 24 TVDiscovery

18 25

19 TV-TNT 26

20 27

28

29

30

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VIII. Appendices
Appendix A- iPhone 4SX Packaging

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Appendix B- Advertising Budget

$5,470,000

Advertising Budget

TV Magazine $50,000 $720,000 Website Other

$15,300,000

Ad Source TV Magazine Website Other

MAY

JUN

JUL

AUG

SEPT

OCT

NOV

DEC

JAN

FEB

MAR

APR

TOTAL AD # 170 120 Annually

TOTAL $

17 10 X X

17 10 X

8 10 X X

25 10 X X

8 10 X

8 10 X

17 10 X X

25 10 X

12 10 X

8 10 X X

8 10 X X

17 10 X X

$15,300,000 $720,000 $50,000 $5,470,000

Total Ad Budget: $20,000,000

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Appendix C- Print Ad 1

Water Damage Is No Longer An Excuse!

iPhone 4SX

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Appendix D- Print Ad 2

Apple iPhone 4SX

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Appendix E- Print Ad 3

iPhone 4 SX Waterproof so you no longer have to worry about if your phone can keep up with wherever life may take you!

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Appendix F- TV Ad
Storyboard (30 second commercial): The commercial will fade in and out while we watch five different people drop their iPhone 4s into water and the screens go black. We will have upbeat/intense music to set a frustration and shock. The final scene will show a picture of the new waterproof iPhone 4SX and the Apple logo. (Mother with a 1 year old baby drops her phone in the sink, carpenter drops it in a muddy puddle, a hiker crosses a creek and his phone falls out, a young female drops it in the pool, and a plumber gets water sprayed on his)

iPhone 4SX

iPhone 4SX

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IX.

Works Cited

About Cell Phones. Retrieved April 21, 2012 from the World Wide Web: http://cellphones.about.com "Apple Inc. Form 10-K Annual Report." Apple. Edgar Online, 26 Oct. 2011. Web. <http://files.shareholder.com/downloads/AAPL/1820067616x0xS1193125-11282113/320193/filing.pdf>.
"Apple - Site Map." Apple. Web. 3 Apr. 2012. <http://www.apple.com/sitemap/>.

Demographics. Wildernet. Web. 5 Apr. 2012. http://www.wildernet.com/marketing/demographics.cfm. Finkle, Todd A., and Michael L. Mallin. "Steve Jobs And Apple, Inc." Journal Of The International Academy For Case Studies 16.7 (2010): 31-40. Business Source Complete. Web. 21 Apr. 2012. HTC Corportation. datamonitor.com. DataMonitor, 15 July. 2001. Web. 3 Mar. 2012. IBIS World. IBISWorld Industry Report 51332. IndustryMarket Research. IBIS World, Dec. 2011. Web. 28 Feb. 2012 InsightExpress Uncovers Shift in Mobile Consumer Segments . InsightExpress.com. N.p., 4 May 2010. Web. 5 Mar. 2012. http://www.insightexpress.com/release.asp?aid=457. Kain, Erik. "Five Reasons Why Microsoft's Windows Phone Will Make A Big Splash In The Smartphone Market." Forbes. N.p., 8 Jan. 2012. Web. 4 Mar. 2012. http://www.forbes.com/sites/erikkain/2012/01/08/five-reasons-why-microsofts-windowsphone-will-make-a-big-splash-in-the-smartphone-market/.Kovach, Sue. The Hidden Dangers of Cell Phone Radiation. LifeExtension.com. LE Magazine, Aug 2007. Web. 28. Feb. 2012

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Niman, Nicolette. How the U.S. Curbs Farm Work. The New York Times. 11 Oct. 2011. Web. 5 April 2012. http://www.nytimes.com/roomfordebate/2011/10/09/what-happened-to-theamerican-work-ethic-2/work-ethic-and-the-governments-role. OConnell, Kim. Changing Faces. American Hiking. Fall 2007. Web. 5 Apr. 2012 http://www.americanhiking.org/uploadedfiles/news_room/changingfaces.pdf?n=3054. Ovide, Shira. AT&T/T-Mobile Deal: Explaining Wireless Spectrum. WSI.com. Wall Street Journal, 21 Mar. 2011. Web. 28 Feb. 2012 Perez, Sarah. "IOS Market Share Up From 26% In Q3 To 43% In Oct/Nov 2011." TechCrunch. 9 Jan. 2012. Web. <http://techcrunch.com/2012/01/09/ios-marketshare-up-from-26-inq3-to-43-in-octnov-2011/>. Rassweiler, Andrew. "IPhone 4S Carries BOM of $188, IHS ISuppli Teardown Analysis Reveals." ISuppli. 20 Oct. 2011. Web. <http://www.isuppli.com/Teardowns/News/Pages/iPhone4S-Carries-BOM-of-$188,-IHS-iSuppli-Teardown-Analysis-Reveals.aspx>. Samsung Group. datamonitor.com. DataMonitor, 9 Dec. 2011. Web. 3 Mar. 2012. Schiesel, Seth. For wireless, the beginning of a breakout Retrieved April 21, 2012 New York Times News Service: http://www.nytimes.com/2005/01/13/technology/circuits/13cell.html The World Factbook. CIA. Web. 22 Apr. 2012. https://www.cia.gov/library/publications/theworld-factbook/rankorder/2095rank.html. U.S. & World Population Clocks. Census. 29 Apr. 2012. Web. 29 Apr. 2012. http://www.census.gov/main/www/popclock.html. Weisberg, Deborah. Tips for Tent Camping in 2012. OutdoorNews. 23 Mar. 2012. Web. 5 April 2012. http://www.outdoornews.com/March-2012/Tips-for-Tent-Camping-in-2012/.

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May 2012iPhone 4SX Ryan Garlich Nick Evola Jon Lane Allen Kren Donny Clark Ibrahim Dawod Sean Halloran 54 | P a g e