Marketing Plan: Apple Watch

Marcus BusbeeRaven DuncanDaniel El-Aawar

Colleen LounsburyAshleigh Waugh

Apple WatchA Different Look For Everyone

Situation Analysis

• Apple Inc.• Humble beginnings creating

computers followed by slow growth.• Significant growth following the

launch of iTunes.

• Target Market• Current iPhone users• Luxury item-affluent customers• Tech-savvy consumer

• Marketing Mix• Product- Smart watch offers many

functions of smart phones, bringing the technology closer than ever.

• Place- Sold at Apple stores and a wide array of authorized retailers.

• Promotion- Promoting to current iPhone users through brand loyalty

• Price- Luxury item price starting at $350.

S.W.O.T. Analysis

Strengths

• $164.5 billion in cash• Loyal user base• Brand awareness• Successful product lines

Weakness

• Dependence on iPhone• Premium price point• ApplePay not accepted by

all• Battery life

Opportunity

• Increasing demand • New product line• Potential strong growth• Multiple models

Threats

• Rapid technological change

• Samsung’s many models • Android OS growth• High price point

Company Resources

• Multi-national company headquartered in California.

• Over 92,000 experienced and Educated Employees

• Multi-billon dollars in revenue each year

• Highly knowledgeable employees

Marketing Objectives

• One Product, One Message• Promote Diversity• Enter High Fashion Market

Marketing Objectives

• Sports Edition

• Interchangeable Bands

• Exclusivity

• Appeal to existing loyal customers

Entering High FashionApple Watch featured on the cover of Vogue in China

Financial Budget and Projections

• Posted quarterly revenue of $42.1 billion and quarterly net profit of $8.5 billion, or $1.42 per diluted share

• Gross margin was 38 percent compared to 37 percent in the year-ago quarter • International sales accounted for 60 percent of the quarter’s revenue

Apple 2015 First QuarterApple is providing the following guidance for its fiscal 2015 first

quarter:

• Revenue between $63.5 billion and $66.5 billion

• Gross margin between 37.5 percent and 38.5 percent

• Other income of $325 million• Operating expenses between $5.4 billion and $5.5 billion

Control and Evaluation

The launch• Consumer interest• Promote using brand loyalty• Promote Luxury aspect

The First Year• Consumer feedback• Reaction of

competition• Sales

Control and Evaluation

Long Term• New Model• New bands• Price drop

Success• Constant monitoring• Remaining relevant