apple watch

Apple Watch II

KYLA MARIE VERGARAKELLY ZEPEDALEETAH MCGEECOURTNEY HAYWARD

Agenda

Who Uses Wearable Technology? Who are the iPhone consumers

and customers? Who is the Apple customer? SmartWatch Market Share

Distribution Pebble Samsung Sony Motorola

Marketing Plan Advertising Strategy Direct Marketing Strategy Financials Sales Promotion Public Relations Social Media Strategy

Who Uses Wearable Technology? Medium-heavy smart handheld device

users Ages 20-29 Familiar with wrist-worn and head-mounted

devices Smart buyers who will acquire as much

information before buying a new product Care more about a product's function than

its added value (such as sleek design or the impression it gives to people)

Professionals that will utilize wearable technology for work purposes

Apple Watch Features (cont.)Main Features Receive & respond to messages in a variety of ways Personalize and customize watch and face whenever you want Send a sketch, tap, and even heartbeat to people you connect with most Receive & make calls using built-in speaker and microphone Do a lot of useful things with Siri by just using your voice Search for locations and get turn-by-turn directions right on your wrist Control music on your iPhone, or listen to playlist with Bluetooth headphones Pay quickly and securely Track daily activity and stay motivated to sit less, move more, and get some

exercise See metrics like distance, pace or speed, calories burned, and heart rate during

workouts

USP “Better the second time around”

GPS Abilities Water resistance

Apple Watch Consumer Segmentation

Apple Watch Sport Silver and space gray

aluminum cases Display is protected by

Ion-X glass Matching fluoroelastomer

band comes in 5 different color choices

Price ranges from $350 - $400

Target Market Males & Females ages 25+ Household income: $26K -

$61K Maintain an active lifestyle They prefer function over

value Extremely tech savvy Very sophisticated

consumer who does product research before committing to a single product

Low brand loyalty

Apple Watch Stainless steel and space black

stainless steel cases Display protected by sapphire

crystal Choice of 3 leather bands, 1

link bracelet, and Milanese loop, and a band made from high-performance fluoroelastomer

Price ranges from $700 - $1200

Target Market Males & Females ages 25+ Household income: $62K -

$99K Their disposable income

allows them to enjoy the finer things but they still value function over ultra-luxury

Enjoy using watch for their work-related purposes

Love watch for its vast customizing options

The have a moderate amount of brand loyalty

Apple Watch Edition

Watch case crafted out of 18-karat gold that has been developed to be twice as hard as standard gold

Screen is protected by polishes sapphire crystal

Exquisitely designed band provides a striking complement

Price ranges from $10,000 - $17,000

Target Market Males & Females ages

35+ Household income:

$100K+ Tech savvy

professionals who enjoy mixing technology with ultra-luxury

They use watch primarily for work and enjoy the hands-free concept

Apple Sales & Outlook

Tim Cook reported a continued strength from the iPhone, Mac, and App Store, which drove their best March quarter results ever

There is a higher rate of people switching to iPhones than they have ever experienced

Quarter 3 predictions: Revenue between $46 and $48 billion Gross margin between 38.5% and 39.5% Operating expenses between $5.65 and $5.75 billion Other income (expense) of $350 million Tax rate of 26.3%

Apple Sales & Outlook

Pre-orders in 2015 have exceeded 2.3 million 957,000 pre-orders on first day alone Apple Watch 2.0 will be launched towards the end of quarter 3 in

2016 Launch of new MacBook Air & Apple Watch 2.0 will coincide with

Q4 2016 results

SmartWatch Market Share Distribution

Key Players: Samsung Sony Pebble

Market Value 2013: 700 million

SmartWatch Sales Forecast

50 million watches should be sold by 2016 Smartwatches will increase with technology

advancements, increasing worldwide awareness

Smartwatches will have a significant popularity in China and will be a powerful tool to use with the smartphone

China is expected to become powerhouse in the smartphone industry

Pebble SWOTStrengths

• Innovative culture• Technology• Crowdfunding success story

Weaknesses• Battery timings• Brand recognition• Cost structure• Complicated to use (users are

“forced” to do too much work)

Opportunities• Innovation• New services• New technology• Emerging market• New products• International expansion

Threats• Intense competition• Substitute products

Samsung Galaxy Gear SWOTStrengths

• Samsung owns its own flexible OLED display technology (Youm)

• Seamless phone integration• Color selection• Speakerphone• Display• Good camera• Looks good

Weaknesses• High price point• Smartphone dependent• No wi-fi relies on having

smartphone nearby)• Slow to react

Opportunities• Innovation• New services• New technology• Emerging market• New products

Threats• Intense competition• Inability to reinvent product

categories

Motorola 360 SWOT

Strengths• Wireless charging• Comfortable to wear• Resembles a regular watch• Stainless steel case• Heart rate monitor

Weaknesses• No different face sizes• Poor battery life• Have to disable all apps in

order for battery to last all day• Price point• Cannot charge without the

screen on



Sony SmartWatch 3 SWOT

Strengths• Good performance• Sharp display• Comfortable to wear• Good battery life and quick

charging through micro USB

Weaknesses• Boring design• Limited watch strap options• Expensive



Marketing Plan Objective:

utilizing a well-balanced, perfectly tailored marketing mix in order to successfully deliver marketing message across the board

Strategy & Tactics: Advertising: Raise awareness; branding Direct Marketing: immediate transaction/response Sales Promotion: short term sales boost Public Relations: influence attitudes, opinions, and

values Social Media: strengthen online presence, constantly

communicate and engage with consumer, create buzz around new products, which will in turn foster a constant buzz around brand

Rationale Strategically tailoring marketing efforts

for targeted consumers in order to successfully penetrate their radar

Create ads that will be quantifiable in order to measure performance and convert that into revenue

Spend and allocate ad dollars wisely in order to maximize efficiency

Constantly alter and change marketing efforts in order to increase performance

Advertising Strategy Objective: focus on increasing Apple Watch awareness to entice consumers

to purchase 2.0 version Strategy: a solid digital and traditional campaign to maintain a strong

presence in consumer’s mind Tactics: Our “Digital Crown” Campaign will include --

Magazine Ads Internet/Banner Ads TV Commercial

Rationale: maintaining Apple Watch visibility is imperative to reinforcing and maintaining Apple’s reputation as the go-to for innovative consumers who want the most innovative products

T.V. Commercial Magazine Ad

Direct Marketing Strategy Objective: to illicit an immediate transaction and/or

response from prospective consumer targeted via Apple’s House list

Strategy: utilize Apple’s House list to extract information about consumer that would be most likely to venture into the Apple Watch category

Tactics: presenting targeted consumer with banner ads showcasing product

Rationale: always staying on prospective consumer’s radar is desirable, as that will ensure our position as their go-to brand for innovative products

Tactics

Banner Ad

Sales Promotion Objective: to create a short term

sales boost by encouraging cross-selling

Strategy: offer consumers $50 off their choice of Apple Watch accessory

Tactics: ability to track what accessory each consumer purchases with a personalized gift card, allowing us to gain a deeper understanding of the consumer’s behaviors and interests

Rationale: we want to encourage the consumer to use the Apple Watch to its fullest potential, and accessories are the perfect vehicle encourage that

Public Relations Objective: to influence attitudes,

opinions, and values Strategy: host a one-night

exclusive Apple Watch event that ties in seamlessly with ad campaign

Tactics: promoting the Apple Watch and show VIP treatment to our loyal consumers

Rationale: creating allure around Apple Watch in efforts to keep consumers “wanting more.”

Apple Watch Event Event will be exclusively for Apple customers that are part of our secret loyalty

program Approximately 80 – 100 attendees Hosted by Apple’s CEO Tim Cook, Jonathan Ive (SVP of Design), and Dan Riccio

(SVP of Hardware Design) Event will feature Genius bar, Phhhoto booth, engraving station, and

complimentary food and wine Attendees will receive a goodie bag which will include Beats headphones, an extra

watch band, an Apple TV, and a $25 Starbucks gift card Attendees will also be able to spend the night at the W Hotel after the festivities A QR code will be sent to the Apple watch user with acceptance of event

invitation. In order to use each booth, consumers must tap the QR code to the booth they are using.

With consumer profiles on file, in hindsight we will be able to track the attendee’s every move, gaining valuable insight into their interests

You’re Cordially Invited…

Dear Apple Watch customer,

Welcome to our VIP loyalty club! Not only are you the proud owner of the sleekest, most tech savvy watch in the world. We're pleased to invite you to our exclusive Apple Watch

Event hosted by Apple’s CEO Tim Cook, with Jonathan Ive, SVP of Design, and Dan Riccio, SVP of Hardware Design. There will be live music, interactive booths, and an exclusive Q/A with our hosts. Guests have the option to stay at the W

Hotel and a special gift, courtesy of Apple. Click the link below to RSVP & receive your watches personalized

QR code. Must wear watch to event for entry.http://www.apple.com/watch/events/rsvp

http://www.apple.com/watch/events/rsvp

http://www.apple.com/watch/events/rsvp

Social Media Strategy Objective: to make up for Apple’s lack of social media

presence on major platforms like Twitter, Facebook, and Instagram

Strategy: create an online platform exclusively for Apple Watch consumer and integrate sponsored Instagram ads

Tactic: give consumer exclusive access to all things Apple Watch

Rationale: rewarding consumer for their loyalty will only reward us in the long-run and only encourage continued loyalty

Tactics: Apple Watch Platform Website will include personal profile and VIP access to

all things Apple Watch “Your Watch, Your Page” They will be able to tailor their preferences and pick and

choose what information they want to receive directly to their inbox in a form of a newsletter

They will have week-early access to all Apple Watch product launches and accessories

They will have month-early access to pre-order the Apple Watch 2.0

Tactics Instagram

is the perfect platform to showcase product

Simple and streamlined

Fits Apple’s aesthetic and a segment of target market

Conclusion Based on the sales and the promotions of the first Apple Watch,

we predict that Apple Watch 2.0 sales will increase drastically in the fourth quarter of 2016

Based on predictions of the smartwatch industry, many more individuals mindset about smartwatches would change and lead to an increase in sales globally

As smartphone sales are increasing exponentially, smartwatches will be the next must-have accessory

Apple 2.0 will compete against other brands who will also improve their smartwatch specifications and features but there are no definite winners in the smartwatch industry

Our strategies will be successful in penetrating our target market, influencing them to buy and continue being a part of the Apple brand

THANK YOU.

apple watch

Presentations & Public Speaking