International Marketing Plan - Apple

In 2001, Apple was having a tough time finding an undefined market that had not been well established. They realized that digital music players lacked in quality and did not have a well thought-of market. Apple branched from this idea and assigned their engineering assembly team to design the first iPod within a year’s time. After all the hard work the engineering team at Apple underwent, the Apple iPod was made public.

On October 23, 2001, Apple introduced the first series of iPods to the world (Schlender, 2001).

The iPod is designed to store media on a built-in hard drive or by the use of flash memory. It also serves as an external data storage device when connected to a computer. It plays media files anywhere a user chooses and is designed in a very convenient size. In 2003, Apple released another series of iPods that included the iTunes software. iTunes is program that stores a comprehensive library of the users music, video and photos on their computer (Donovan, 2006).

This program can play, download and rip music from a CD onto the library and is exclusive to Apple iPods. The Apple iPod is the world’s best selling digital audio player. Over 50 million iPods have been sold throughout the world, since its release (Hesseldahl, 2005). It dominates the market and has become a generic name when referring to MP3 players. The mental association most people make with digital music players is the Apple iPod. The market share Apple had in the Untied States in 2004 for all MP3 player types was over 70% of the market (Hesseldahl, 2005).

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The iPod has also caused a halo effect which encourages users to switch to Apple products. Apparently, Apple Corporation is correctly implementing numerous advertising and marketing. I will attempt to create an international marketing plan for the Apple iPod in the United Kingdom. It’s a challenging task since Apple has been so successful with the iPod. Situation Analysis Description of Product and or Service The Apple iPod and the Apple iTunes brand names, designs and symbols have helped to differentiate them from their competitors. The iPod encompasses the personality dimension of excitement and competence.

The imaginative, tech-savvy image along with being recognized as an intelligent and successful brand has put them in a league of their own. The functional attributes of “1,000 songs in your pocket” and the emotional attribute of “which iPod are you? ” have been very successful for this brand. The predominate language that’s spoken in the United Kingdom is English the theme would be kept the same. Apple has gained brand recognition with the use of the lowercase “i”. It is associated with many Apple products. In fact, name switches have occurred to reflect the lowercase “i” such as the iMac which was formally known as Macintosh computer.

Other products include iTunes, iChat, and iBook among other name switches (wikipedia. com). Another recognizable aspect of the iPod is the white cord earbud headphones which has become symbolic of the iPod brand. In addition, the use of iTunes has also become part of the brand. iTunes is a program that stores a comprehensive library of the users music, video and photos on their computer. This program can play, download and rip music from a CD onto the library. This is used in conjunction with the iPod. Users connect their iPod to their computers to transmit songs, video and photos to or from their device using iTunes.

The UK, a leading trading power and financial center, is one of the quintets of trillion dollar economies of Western Europe. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation.

Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. GDP growth slipped in 2001-03 as the global downturn, the high value of the pound, and the bursting of the “new economy” bubble hurt manufacturing and exports. Output recovered in 2004, to 3. 2% growth, but fell in 2005, to 1. 7%. Despite slower growth, the economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low.

The relatively good economic performance has complicated the BLAIR government’s efforts to make a case for Britain to join the European Economic and Monetary Union (EMU). Critics point out that the economy is doing well outside of EMU, and public opinion polls show a majority of Britons are opposed to the euro. Meantime, the government has been speeding up the improvement of education, transport, and health services, at a cost in higher taxes and a widening public deficit.

The exterior of the packaging will feature the bright color background and a silhouette cutout on the box. There will be a physically unbreakable display window to reveal the iPod. The package will be oversized to help reduce the risk of theft. It will be packaged in such a way that it will be protected from damage caused by physical force, weather elements and shipping pressures. Information on the use, the handling of the iPod and the disposal will be placed on the package. Any government regulated information will also be placed on the box. The interior of the packaging will hold the iPod and the accessories in place despite any movement. The iPod is packaged with software enabling users to uploading music, photos, and videos called iTunes.

Also contained in the package is a charger, instructions, connection cords, earbud headphones and a promotional card for free downloads with regards to the promotional game. All these essentials will carefully be placed in a plastic molded design to prevent any displacement during turbulent movement when crossing the international seas. Promotional Strategy There are many types of promotions that can be utilized to increase the changes of a purchase. The one from of promotion I will use to engage the consumer and encourage them to purchase the Apple iPod will be an interactive sweepstake. The promotion campaign will utilize the same elements as that of advertising to create a single voice. The promotions campaign of the Apple iPod would include the silhouette as part of the promotion.

The idea is to engage viewers, readers and listeners to participate in the “Shadows of the Silhouette” promotional sweepstakes game. The promotional game consists of silhouettes of famous musical artists from the U. K. Each artist has a different prize level. Participants will receive pieces of the silhouette after they complete online registration or mail-in a postcard. The pieces or clues will help them fill-in the silhouette. They have an opportunity to win several prizes based on the completion of the silhouette. For every iTune song downloaded, any Apple product purchased, entering promotional codes found within the magazine ads will give participants clues. Of course, no purchase is necessary to enter. Pricing Strategy

The prices will allow for sufficient gross profit to cover overhead expenses. Apple utilizes a markup method, based on costs. The markup will depend on the product, but will be around 40% to cover expenses. A cost book will list each individual product and their costs. We will not attempt to offer drastically lower prices. However, we will be relatively lower than our competitors in the beginning of the introduction. Channels of Distribution, Modes of Entry Products will be shipped via freight and flight across the English channels, utilizing mostly freight to enter the following ports Hound Point, Immingham, Milford Haven, Liverpool, London, Southampton, Sullom Voe and the Teesport.

We would follow all government restrictions and regulations as it pertains to shipping and value added taxes while maintaining a strong relationship with our suppliers. Implementation Action plans, Implementation and Control Advertising plays a key role in persuading members of the United Kingdom target market about our products and services. These advertisements create awareness, response and brand knowledge among other qualities. Apple Corporation has used this strategy to implement many new product announcements that are on to the market today and we will continue this method in the international borders. Apple has promoted the iPod and iTunes brands in several successful advertising campaigns, a large number of which are part of their series of silhouette commercials.

They also produce commercials with popular artists performing their songs. These commercials have been very successful in creating awareness and recognition of the Apple iPod. The commercials I am proposing would include various artists from different genres of music. These artists would appeal to a wide spectrum of music listeners in the U. K. This would create a sense of belonging, acceptance and relationship building among consumers. The artist would perform part of their song against complex bright animation. Then towards the end of the commercial the artist would hold their iPod while connecting their earbud headphones. Then transform into a silhouette on their iPod as it falls ever so gently to the ground.

The screen will display the words “Are you part of the iScene? ”. These effective advertisements will capture the attention of the target audiences. Our main focus is advertising to increase brand knowledge within the target audience. In addition, we will create a desire among the target audience with the message “Are you a part of the iScene? ” To this end we will be utilizing the following forms of media, television, radio, magazine, internet, out-of-home and alternative advertising. Since TV commercials are one of the most effective, most pervasive, and most popular methods of selling products we will be using this to reach our main target audience.

Radio commercials will also be another effective media to utilize with this advertising campaign. The radio and television commercials will be placed on station that are appreciate in reaching our target audience. Television stations that are popular among the U. K. target audience would be utilized. They will play at times when the target audience views/listens to these stations. Also the ads will be repeated over and over, which achieves the frequency that is need. Other communication channels that will be utilized include internet, magazine, out-of-home and alternative advertising. Internet ads will be a nice supplement to the overall advertising campaign.

There are 840 million people who use the internet, according to the Global Reach Agency, which translates to reaching a lot of people. A way we will draw people to visit the iPod website is by the use of chat rooms, blogs, pop-up ads and search engines. The use of the website will enable more people globally to explore information, promotions and other information that Apple Corporation has to offer. Special focus will be placed on the Apple iPod. The internet will also enable us to send promotional information, news and coupons via e-mail to our customers and potential customers. We would be able to post events and supporting activities on the website. We will utilize magazine advertisement that the target audience reads.

The magazine advertisement will have the same design as the rest of the communications. It will also play a vital role within the promotion aspect of this plan. As a communications tool customer magazines are enormously powerful and allow a level of contact with consumers. They range from general interest titles such as Time, GQ and Cosmopolitan, which appeal to a variety of readers, to highly specialist titles covering particular hobbies, leisure pursuits or other interests. They also measure and track fairly well, offering tangible information on return on investment. The most common type of out-of-home advertising is the billboard but also extends to the other outdoor ads such as posters.

The message on the billboard will be readable in a very short period of time because people usually pass billboards going at high speeds. There will be only a few words, Are you a part of the iScene? , in large print, with an eye-catching silhouette image with a bright colorful background. The same attention-grabbing advertisement will extend to buses being wrapped, buildings painted and an iPod Mobile. These advertising methods would depend on the government’s regulations and requirements. Timelines and Milestones Monitoring, Review and Evaluation

• What is evaluation all about?
• Did we implement the activities we proposed?
• Did attitudes change-among the community, customers, management-as a result of our programs?

Evaluative research, sometimes called summative research, is conducted primarily to determine whether a marketing plan has accomplished its goals and objectives. A variant of evaluation can be applied during a program to monitor progress and indicate where modifications might make sense. The key word in society today is accountability, which means taking responsibility for achieving the performance promised. With resources limited and competition fierce, managers at every level demand accountability for every activity on which they spend money. That’s what evaluation is all about. Marketing professionals are obligated today to assess what they’ve done to determine whether the expense was worth it. In the end we reported back to management. Evaluation findings should be shared with management. This reinforces the notion that marketing is contributing to management goals for the organization.

Conclusion

The Apple iPod is a great example of a well designed campaign. The Apple Corporation has come a long way since the “Think Different” campaign of the 1980’s. They now have greater strength as company and as a brand. The use of innovation, creativity and well made products have put Apple at the forefront of technology. Enhancing the brand by crossing the international border will be challenging since it is unfamiliar territory. However, the concepts and the use of the international concepts in a reliable manner will help to create a stronger marketing plan. This plan may help to gain additional market share as well as increase sales, brand awareness and recognition among other advantage points.