Apple Watch Campaign April 22, 2016

Megan Alexander, Sammi Cowger, Brett Haskell, Kylie Leonard, and Abbey Venable

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Table of Content Page

Table Of Contents .................................................................................................................. 1 List Of Charts......................................................................................................................... 2 Introduction ........................................................................................................................... 10 Situational Analysis ..............................................................................................................

Company Analysis..................................................................................................... Environmental Analysis............................................................................................. Product Analysis........................................................................................................ Consumer Analysis.................................................................................................... Competitive Analysis................................................................................................

SWOT Analysis ................................................................................................................... Strengths...................................................................................................................Weaknesses............................................................................................................... Opportunities............................................................................................................ Threats......................................................................................................................

Analysis of Research ........................................................................................................... Target Market Profile .......................................................................................................... Objectives and Strategies .................................................................................................... Marketing and Advertising Objectives ...............................................................................

Validation of Marketing and Advertising Objectives ............................................. Alternate and Supplemental Marketing Communications ..................................... Advertising Strategy .............................................................................................. “Big Idea” ............................................................................................................. Strategies for choosing target market ....................................................................

Budget ............................................................................................................................... Media Objectives and Strategy .........................................................................................

Objectives ............................................................................................................. Strategy .................................................................................................................

Decide Media Mix .................................................................................... Scheduling ................................................................................................ Weighting, Reach and Frequency..............................................................

Media Tactics: Specific Vehicle Recommendation ........................................................... Television .............................................................................................................. Print ...................................................................................................................... Radio .................................................................................................................... Digital ..................................................................................................................

Conclusion ...................................................................................................................... Creative Executives ........................................................................................................ Bibliography ...................................................................................................................

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List of Charts Figure 1: The competitors of the Apple Watch.

Figure 2: Describes the trend between interest rates in the USA and Inflation.

Figure 3: A map showing the GDP per Capita for each country.

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Figure 4: A comparison between Apple and some of its competitors. It is describing how they are doing in the smartwatch market.

Figure 5: Description of Apple and its competitor’s consumer retention over three years.

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Figure 6: A direct comparison of all the leading smartwatches with their specifications.

Figure 7: An overview of the top smartwatches in the market.

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Figure 8: A breakdown of the 2016 first quarter budget for the Apple Watch

Figure 9:A breakdown of demographics for the decided media mix.

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Figure 10: Breakdown of the media flow chart.

Figure 11: An overview of time from 1990 to 2016 showing TV viewing patterns.

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Figure 12: Example of MIT Technology Review magazine.

Figure 13: Overview of what listeners chose with the top mass radio stations.

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Figure 14: Placement of advertisements on the website.

Figure 15: Placement of advertisements on the video.

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Figure 16: Placement of advertisements on the video.

Figure 17: Advertisement placement on Facebook.

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Introduction

The founder of Apple, Steve Jobs, once said “Quality is more important than quantity. One hum run is much better than two doubles” (Smith. Online). That feeling is what lead Apple Apple to becoming a premium brand that people respect. They are a company that wants to let their users have the freedom to create. They want to inspire creativity and ingenuity from their consumers. They give their consumers the tools through their products in order to promote innovation. We will look at one of these tools in depth, which is the Apple Watch. This Integrated Marketing Communication report will look at situational analysis, SWOT analysis, methods of research, target market profile, marketing and advertising objectives and strategy, budget, media objectives and strategy, and the media tactics. Situational Analysis

This report will look at the five factors involved with the situational analysis. These include: company analysis, environmental analysis, product analysis, consumer analysis, and competitive analysis. Each factor will be sectioned out and explained in detail. Company Analysis

Apple, Inc. is a major manufacturer and innovator of mobile communication, media devices, computers and portable digital music players. The company offers many products such as the iPhone, iPad, Mac, iPod, Apple Watch and Apple TV. Their products also run on the Apple software iOS, OS, X and watchOS. Apple also has cloud service and mobile pay products through iCloud and Apple Pay. Headquartered in Cupertino, California, Apple works in the Americas, Europe, Greater China, Japan and Rest of Asia Pacific.

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Apple was created on April 1, 1976 when Steve Jobs, Steve Wozniak, and Ronald Wayne decided to create the first personal computer for homes. Since that beginning success, they have become a main brand in many households in many different markets. From computers to iPods to tablets, Apple has been a part of forefront of technology.

According to their CEO Tim Cook, their mission statement is “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software” (Cook. Online). 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” Apple is wanting to become a staple to everyone's life. They want to be seen as technological leaders, who are doing their part to making the world a better place. This is what leads to Apple’s business philosophy. According to Tim Cook,

“There is an extraordinary breadth and depth and tenure among the Apple executive team, and these executives lead over 35,000 employees that I would call “all wicked smart.” And that’s in all areas of the company, from engineering to marketing to operations and sales and all the rest. And the values of our company are extremely well entrenched. We believe that we’re on the face of the Earth to make great products, and that’s not changing. We’re constantly focusing on innovating. We believe in the simple, not the complex. We believe that we need to own and control the primary technologies behind the products we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross­pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self­honesty to admit when we're wrong and the courage to change. And I think, regardless of who is in what job, those values are so embedded in this company that Apple will do extremely well” (Cook. Online).

Apple has decided to become a company that implements change the best ways that they can. They are focused on making the best product. This thinking is what categorizes them as a premium brand because they take the time to provide a product that is worth the cost.

Apple is considered both in a product oriented and market oriented. Apple can be seen as product oriented because it focuses on the quality of its products. Apple makes sure that its products have a competitive advantage in the market as seen in their innovation and advertising efforts. They could easily be in any market, but they selectively choose which ones to enter. That ways they make the best product in the market. They can be seen as market oriented because they are improving their products by using market research. They are trying to find what the consumer is looking for within their product market. Every year, they re­evaluate where they stand in each market in order to improve for the next year.

The Apple Watch is branded for people who want a phone and a watch. Not just that, but also a device that can monitor fitness, respond to emails and tell you when you’ve sat still for too long. A big feature for the Apple Watch will be the apps. Tim Cook said “apps will make the Apple Watch as essential as the iPhone” (Panchal. Online). Apps give the user an unlimited

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potential. This is because any individual can create an app for the watch. Essentially, this is a watch that gets the job done.

Apple’s competitors are only growing as the smartwatch industry becomes more popular. It is important to look at the Apple Watch’s competitors in order to create a better product. Nancy Buckley provides the chart below (figure 1):

Figure 1.

This shows the percentage of the market that each company had before the Apple Watch came out. Since Apple Watch came out in a different fiscal year, this allowed Apple to see the potential for its own product. The Apple Watch’s competitors will have more detail later in this report. Environmental Analysis

Social Factors When a person decides to invest into wearable technology, they are expecting a certain

lifestyle. Wearable technology is a popular tool for many individuals. When smartphones took over the market, people stopped wearing watches because they could just use their phone for a clock. This has lead to watches revamping themselves and becoming multi­functioned. According to Reza Rawassizadeh, Blaine A. Price, and Marian Petre, “Smartwatches are not only a chronograph, but can also be a general­purpose, networked computer with an array of sensors” (Rawassizadeh, Price, and Petre. 45). Smartwatches are wanted because they are more convenient to use. It is easier to look down at your wrist than to pull out your smartphone from either your pocket or bag.

Wearable technology first became popular with the first Pedometer. This small device allowed people to track the amount of steps they had taken each day. When the smart phone

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came out, Apps came out to track different health aspects and activities. The tricky for the Apps is when the consumer does not have the phone in their pocket. All the activity is lost, which makes the Apps less reliable. This is how Fitbit found its niche. They created a wearable band that tracks all of the consumer’s activities. They were an affordable way to get accurate health information. This feature has been increasingly popular, which made it be included in all smartwatches. When Fitbit branched out and increased its market, it made the Fitbit Surge similar to the Apple Watch and Android Wear.

Connectivity plays a huge role in the United State’s daily lifestyle. People cannot live without their phone being on them. The smartwatch being on their wrist makes them more connected to their digital world. With a phone, you have to intentionally pull your smartphone out and look at it. With the Apple Watch, you just look down. It is a convenient, less noticeable way to stay informed on your current needs.

In the United States, work tends to be fast paced and multi­tasking is encouraged in order to get more work done. Since the raise of the smartphone, society has found that they are distracting. This is causing executives to ban them from important events such as meetings and conferences. The Apple Watch allows its consumers to use the important functions while being discrete. Important features such as instant messaging, calendar, and email. A career is one of the most important things to an individual, so the Apple Watch can help make you have a successful one.

Social Hierarchy is what drives people. Everyone wants to move from his or her social class into a higher one. Since people strive to have a higher social hierarchy, it is important to consider Apple products as a luxury brand and the Apple Watch is considered exclusive because of the amount of people who own it. The price tag that is associated with the Apple Watch is considered quite expensive with it ranging from $350 to $10,000. This cost is what brings the appearance of being in a higher social class because it takes a certain economical status to own.

Cultural Factors

The United States is considered the melting pot of the world. We are the land of immigrants. Which has led the United States to have a very diverse culture. It is important to look at both the general norms of the culture and then look at specific regions to better understand how the United States’ culture works.

In order to define the general culture of the United States, it is important to understand what is culture. Culture is a learned set of interpretations about beliefs, values, norms, and social practices, which affect the behaviors of a large group of people. Looking at the taxonomies of cultural patterns, you can discover the United State’s culture. To start out, the United States has a low uncertainty avoidance, which means that they are willing to take risks. They are more tolerant of changing social behaviors. Next, the United States’ is consisted a monochronic culture, which means that time is an absolute and unchangeable. We have schedules and stick to them rigidly. There is a power distance in the United States. This means that there is a hierarchy, which causes inequality, but it is both appropriate and beneficial. Social class is a major influence on the system. The United States is very much a short­term time orientation, meaning it is important to focus on the present instead of the long­term future. We want personal stability and to maintain our sense of face at all costs. The United States is considered an individualistic culture because we only have an allegiance to our self and not to the collective. The last taxonomy that is important to look at indulgence versus restraint. The United States is very

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indulgence. This means that gratification is the most important thing, which causes us to pleasure seek and spend money towards consumption.

Now that we understand the United State’s cultural it is important to relate it to how it affect the Apple Watch. From the taxonomies, we learn that social status, indulgence, and risk taking are the most important aspects of our culture. This is good because it means people are more willing to take the financial risk to buy the Apple Watch. The Apple Watch also has a significant price tag, so consumers who get it are viewed in a higher social class. Their appearance can jump from any class, to upper middle class. Apple is considered to be luxury brand that is associated with a higher social status.

Some qualities that were not defined using the taxonomies are education levels, demographics, fashion, and language. The ability to own an Apple Watch is often parallel to education levels. This is because the price tag and the need for one. Since the watch costs $350 to $10,000 it takes a person in a profession that is able to afford such a costly item. Also different careers would affect if you need an Apple Watch. For example, a Plumber has less of a need than an executive on Wall Street. Demographics also play a huge role in if a person gets an Apple Watch. The age groups that will be able to both afford it and use its technological capabilities are those between 27­55 years old. The region that these individuals live in will also affect the likelihood of them getting the Apple Watch. People who are most likely to get an Apple Watch will live in either the Northwest or Northeast. This is because life is fast paced and both a technology hubs. In the Northwest, Silicon Valley will play a huge role in who buys the Apple Watch. Seattle, Washington is also a huge site for technological innovation. This means the Apple Watch will be more sought out. The Northeast has huge cities like Boston, New Year City and Washington D.C., which a lot of our buyers will come from. Boston is known for its technology and financial institutions. New York City is known as financial centers of the United States. Washington D.C. is our capital, which houses thousands of politicians. All of these people will want the Apple Watch to navigate their busy worlds and for the social status brought by the watch. Fashion plays a huge role in if someone will wear a product. This is why the Apple Watch comes in 20 models and six styles of watch bands. Each style has several color choices with it too. This is to be fashionable to everybody. Finally it is important that the Apple Watch has multiple language options. Since the United States is considered the “melting pot”, we do not have a singular language that is spoken, which means it is important to have these language options. People might not speak English, or might speak another language better.

Economic Factors

Since the invention of the first smartphone, humans have become addicted to the latest and great new technology. Every year, people are waiting for days outside Apple stores in order to get the newest piece of technology. In order to understand how the Apple Watch will do, it is important to look at the different economic factors affecting people’s ability to buy it.

Interest rates and inflation rates play a huge role in if a person can afford a luxury item. Right now in the United States, both are at an all time low. Markus Demary and Michael Hüther provide us a graph (Figure 2) where we can see the trend.

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Figure 2.

As we can see, the equilibrium real interest rate has had a major decline since 2005. The same has been happening with the inflation rate too. This trend started 1987. According to Markus Demary and Michael Hüther this figure “yields additional evidence for the declining real interest rate as a determinant and constraint to nominal interest rates. It can be seen that the trend in yields on ten­year US Treasury bonds was mostly driven by inflation and thus by monetary policy in the past” (Demary, Hüther. 353). Since both rates are going down, this means people are more likely to have the means in order to buy the Apple Watch.

The amount of disposable income and credit that is accessible that a person has also affects their ability to buy high end products such as the Apple Watch. Disposable income is the total amount made minus taxes. There are several factors that affect it. One is increase in taxes. The more you pay in taxes, the less you have in disposable income. Another factor is changes in Gross Domestic Product (GDP). If the GDP drops, it indicates that the Gross household disposable income will go down because they are directly proportional to each other. In the chart below (Figure 3), shows the GDP per capita for every country in the world.

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Figure 3.

Another factor affecting disposable incomes is the stock market. Most adults use the stock market as an investment for their retirement. When the stock market drops, people lose money and are forced to replace the missing money. That takes from their disposable income. In order for the Apple Watch to be successful, people need to have disposable income. Credit comes in when people do not necessarily have the disposable income at that time, so they charge it to their credit line. So if consumers are unable to charge their credit, it will limit the amount of people who will buy the Apple Watch.

According to the Bureau of Labor Statistics, the United States currently has an unemployment rate of 4.9% (“Databases, Tables & Calculators by Subject”. Online). This is the lowest it has been since 2008. When people are employed, there is more production. This means that people also have more disposable income. When people are employed, they are more likely to buy an Apple Watch because they are more likely to afford it.

Political Factors When I company wants to sell a product, they might have to deal with entry mode

regulations. Depending where the products parts come from and where it is assembled all have to enter the United States. This means it has to go through customs; it will be taxed as a foreign good. For the Apple Watch, it has parts and pieces coming from all China, South Korea, and Taiwan.

The Apple Watch is outsourced in three main countries, China, South Korea, and Taiwan. This means that the political state of those countries is very important. The Apple Watch is at liberty of the political stability of these places and any form of unrest could delay product shipments and impact business. China is started to go into an economic stagnation. China in the past has suppressed the value of their dollar, which also affected their GDP. China’s industry has grown at a tremendous rate, which has not allowed for proper safety standards to be followed. This means that they are in a volatile state. Also they have major environmental hazards because of their industrial build up, which will be needed to be address. Also their prices are

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undervalued, if their people had any type of protest and rates go up, the price for the Apple Watch will skyrocket. In South Korea, they are in the process of declaring war on North Korea and killing their leader Kim Jong Un. If they were to go to war, their products prices would go up because their workers would go to the battlefield. Another example is the Taiwan earthquake that happened on February 6, 2016. Taiwan suffered a 6.1 magnitude earthquake. Since one of the Apple Watch’s manufactures is based in Taiwan, this earthquake could have significantly affected and even delayed production. As of right now, the main company in Taiwan, Taiwan Semiconductor, is doing fine. Production is still on track.

War on Terrorism has been a consistent threat for the United States since it was declared in September of 2001. We have invaded several countries and gone trillion dollars in debt. With new threats happening everyday. ISIL is a consistent threat. This means we will make policies to block their allies. If that means one of the suppliers is from a country that sells to them, we will block their products. This means that the Apple Watch could not be produced there. Also we would be unable to sell the Apple Watch to those in that region. Privacy policies created because of the War on Terrorism can also affect the Apple Watch. If they have to report users’ data to the government less people will want it.

Trends There are three main trends that go with the Apple Watch. The first is wearable health

tracking. The second is advancements in technology. Finally the last is computing everywhere. These trends are the most important to look at because they directly affect the Apple Watch.

Wearable health tracking has made huge strides in the past couple years. According to Angelo Zino, who is an Equity Analyst, “In, 2015, S&P Capital IQ expects most wearables to be able to connect to an Internet­enabled device, ideally a smartphone, with the ability to add software and apps. We forecast that wearable device shipments will more than double in both 2015 and 2016, compared with 26.4 million shipments in 2014 (according to IDC)” (Zino. 41). If this forecast comes true, the Apple Watch stands to gain a significant amount. Later in the article, Zino said, “the most anticipated wearable device that came to market is the Apple Watch. This product marked Apple’s entry into the wearable category and will be a key driver for consumers migrating to the new market” (Zino. 41). The Apple Watch will be successful in this growing market.

Every time technology advances, people’s connectivity grows. When paper was created, people could suddenly send messages to far distances. When the telephone was created, people could quickly get messages in real time. Now people want information before they realize they need it. This connectivity will only grow as technology grows. The Apple Watch is expanding people’s reach. With every new app, people grow more dependent on the Apple Watch.

Computers are only growing. Companies like One Laptop Per Child have grown to be successful business that are spreading computing to underdeveloped countries like Rwanda, Uruguay, and Ethiopia. According to Lee Rainie and D’Vera Cohn, “Overall, 84% of U.S. households own a computer, and 73% of U.S. households have a computer with a broadband connection to the Internet, the bureau reported” (Rainie and Cohn. Online). According to the United States Census Bureau, “The United States population on July 4, 2015 was 321,442,019” (“U.S. and World Population Clock”. Online). If you take 84% of 321 million that means 269,640,000 people own a computer in the United States alone. Many of those people also own a

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smartphone, tablet, and wearable device. The Apple Watch has a huge market that it can grow into and the people want it.

Product Analysis

History The design and thought of the Apple iWatch is thought to have started in 2002. Between

2002 and 2004 “Apple’s design chief Ive and other design team members requested boxes of high­end sports watches from Nike” (Williams. Online). It was thought by Nike that Apple was ordering all these watches for personal use. However Apple’s materials guy would always ask multiple questions, which was odd to Nike. Scott Wilson, Nike’s creative director, had said that Apple “definitely drew upon watch industry techniques and manufacturing in their products since the first iPhone. Interesting that it may come full circle to an actual iWatch at some point” (Williams. Online). So at this point when Apple was ordering all these watches from Nike, Nike was getting some sort of idea as to what was happening.

August of 2011 was when Apple made its next big move with the iWatch. At this point, Apple had filed for a patent. This patent suggested that “the device could include a curved touchscreen made from a flexible glass composite, alongside numerous sensors for monitoring exercise patterns and heart rate” (Williams. Online). Also around this time, Apple had filed for a patent for iTime, which makes the appearance similar to an iPod nano. In November of 2011 the Apple Watch project had started to take place in the Apple labs shortly after the death of Steve Jobs. Apple had “invited a series of watch historians to visit the Apple campus in Cupertino to speak, including French author and antique timepiece expert Dominique Flechon” which gave them some background on watches and get more knowledge about what they were starting to do (Williams. Online). Over the next few years Apple worked to perfect the device before releasing it to the public.

Features The iWatch has ten factors that are considered it’s top features. These features include

Apple pay, hotel or car key replacement, novel digital crown, fitness and health tracking, full­fledged apps, actionable notifications and glances, remote control functions, passbook integration, digital touch communication, and Siri. Some of these features have been seen on past Apple products and some are new to the Apple brand.

The first feature is Apple pay. “iPhone 6 owners can already make payments in hundreds of thousands of stores that accept contactless payment, and the Apple Watch brings this handy function to those on iPhone 5 and later, too” which is a feature that can be attractive to the users of the older iPhone (Low. Online). The hotel or car key replacement feature lets you “turn you Apple Watch into a room key so you can open your door with a tap of your watch” (Low. Online). The key feature works the same way where it allows you to unlock your car with the tap of a finger. The novel digital crown is a knob on the watch’s side that acts as the home button on the iPhone. It allows you to easily navigate around the iWatch. Fitness and health tracking does just what it says. It tracks your movement throughout the day and will even let you know when you have been sitting for too long. The full­fledged apps feature of the iWatch just allows you to “download plenty of third­party apps” in addition to the standard Apple apps (Low. Online). This gives you unlimited potential because there are new apps coming out every day. With consumers having the ability to create apps, the iWatch will also give alerts and read­only notifications with

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the actionable notification and glances feature. With the remote control function, you are able to “skip through your music on your iPhone or iTunes music library, navigate your Apple TV menu, enable Do Not Disturb and Airplane modes on your phone or turn on/off the smart lights in your home” (Low. Online). Passbook integration allows you to pull up your boarding passes and loyalty cards and allow you to board a plane easier. Digital touch communication allows you to communicate with loved ones by drawing smiley faces or little hearts. The last feature is Siri, which anyone with an iPhone knows what Siri does. Siri is voice­controlled, can be asked any question and will search the Internet for the best response.

Market Share

Every company wants to control the market that they are selling to. In order to do that, you must have the best­perceived value to your consumers. This is how Apple has gained control of the smartwatch market. The following chart (Figure 4), from Strategy Analytics shows the breakdown of smartwatch market.

Figure 4.

Looking at the graph, it is clear to see that the iWatch holds 75% of the smartwatch market. This is a significant amount, which shows the success of the Apple Watch.

Advertising Apple uses ads that are simple and each one is geared towards a different lifestyle and

highlighting a different feature on the watch. One of their ads is called “Move” and is showing off Siri. In the ad they ask Siri to play 80s music and Siri responds by playing “Need You Tonight.” Another ad Apple has had for the iWatch is called “Kiss.” This ad is depicting a couple that interrupted by an alert on their watch that their Uber is arriving. “Style” is another one of their ads that is focused on the iWatch hardware. In the ad the girl is trying to figure out what to wear and wants to make sure her watch band matches her outfit, which with the iWatch she can do. Those ads are a few of the many that Apple has for the iWatch. While Apple does

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use simple ads for the iWatch, “Apple has spent $38 million on U.S. television advertising” from March­April 2015 (Sherman. Online). Advertising is a big way to spread product awareness.

Another way advertising is an influencer is when it is used in popular culture. An example of this can be seen the ABC Freeform show, Pretty Little Liars. One of the main characters, Spencer Hastings, has an Apple Watch. Frequently throughout each episode, it shows her using it. Pretty Little Liars has a huge fan base. Showing the Apple Watch influences its fans to want the watch because they see the impact it makes on Spencer’s life. It is shown as a way to make your life more convenient. Consumer Analysis

Target Market The target market for the Apple Watch is middle to upper class electronic consumer

within the age range of 12­40. The individuals that fall within this age are old enough to use and understand the technology and can afford the higher price point of the product. Individuals younger than this do not typically have the financial resources to afford this type of luxury technology. Individuals above this age range tend to have little interested and limited exposure to advancing technologies; therefore do not show extensive interest in the Apple Watch. The geographic make­up of this target demographic is not limited to one region, instead it is global. The only limit placed upon the Apple Watch is the financial flexibility of an area. Locations that have consumers that include incomes that can support technological “wants” are targets for the Apple Watch. Countries like America, China, and parts of Europe have high percentages of their population that fall under this category.

The 20­40 demographic personally values the convenience and integration of technology in day­to­day life. The Apple Watch offers them to “wear” their smartphone on their watch. Easy accessibility to real­time notifications allows them to be engaged in their social environment and still have connection to their mobile device. Business professionals, as well as young adults on the move desire such features. Fitness Technology is a growing trend within the 20­40 age group. The health tracking features of the Apple Watch such as step counting, heart rate monitoring, and calorie tracking are desirable for all crowds including fitness enthusiasts and business professionals looking to live a healthier lifestyle. Health Magazine describes this trend, “Studies have shown the health risks of a sedentary lifestyle; wearable tech provides users with 24/7 accountability, tracking numerous aspects of your day, including steps taken, heart rate, stairs climbed, miles run or cycled in workouts, sleep patterns, and more which can be used to motivate users to live more active, healthier lifestyles” (Frazier. Online). Since there is a huge push for a Healthier America, the demand for smart technology with fitness tracking increases.

Brand Loyalty Brand loyalty within Apple is very prominent. Consumers who purchase Apple Products

are frequently return buyers. Consumers appreciate a company that is dedicated to serving them and their needs. Because of these things, Apple is one of the leading companies in consumer retention in the technology industry. As you can see in figure 5, they have out scored their competitors consistently since 2011, and continue to improve their brand loyalty.

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Figure 5.

Through interactive customer service, upgradable software, quality products and high connectivity between devices, Apple keeps a tight grip on their consumers.

Consumers value a company that values them. They also want a company that is willing to take strides to improve current products and develop new ones that will assist in making their life easier. Apple positions itself to do all of these things. Free updates to fix glitches and issues along with frequent releases of new technology keeps their customers coming back. “People who buy Apple products know of the passion and dedication that went into making them. They know Steve Jobs with Apple, feeling as though they have an emotional connection with the company. And that’s why they’re happy to overlook the odd glitch” (Forbes. Online). Apple’s consumers know that any problems that occur will be fixed.

Additional brand loyalty comes from the fact that Apple’s software connects well with other Apple devices. Apple users are loyal to the brand because they want to have high connectivity between devices and take advantage of all the features Apple products can have when used in conjunction with one another. Because of this, consumers end up spending a great deal of time in their initial purchases that introduce them to a brand. However, once the initially brand is chosen, buyers tend to stick with this brand when making future decision unless a bad experience deters them. Apple does not make it easy to transition to one of its competitors. They make their products only work with other Apple products. If a person decides to switch they would have rebuy all cords, extensions, and apps. When high quality thrives in the technology market the consumer will be satisfied with one product from a specific brand. Once the have the good experience, they are likely to develop a strong brand loyalty with this company. Apple does

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an excellent job in keeping their technology functioning properly and meeting consumer’s need, therefore brand loyalty is something they thrive on.

Perceived Benefit

Apple is perceived as a high­end technology brand that is connected with a high social status. Since Apple is known to have a high price point, consumers perceive it as a luxury brand. Features such a leather straps and a gold face are physically features that portray luxury. The Apple logo offers consumers a level of social and financial hierarchy that shows other consumers that they have disposable income and are technologically advanced. Social status in the current market is perceived by material items and the brand of technology used has strong ties to portrayed status.

In addition to social status, consumers also look to Apple for cutting edge technology that is reliable. While Apple may not always be the first to come out with a specific technology, they produce new technologies that are reliable and functional. The iOS software offers a unique security and protection from viruses. In a world where technology is used for everything including bank statements and tax forms, the risk of identity theft is troubling to consumers. They want to feel like they are using a device that offers them security from these issues. Apple is known for filling the needs of security and being able to keep their customer’s information safe.

Criteria for Purchase Decision

In the technology market, consumers consider a few things when making purchasing decisions. The first and most visible is price. Consumers was a price that is affordable, however are willing to pay a higher amount when other values are met. As discussed above, the unemployment rate is at it’s lowest since 2008. This gives financial security to a high number of consumers and gives them the opportunity and financial flexibility to spend money on “technological wants.”

This leads to the second buying decision factor: functionality. Consumers want a product that fits their needs in a convenient manner. A product that is easy to use, with high reliability is worth the added cost. Value is placed on integrating access to technology and engaging in one’s surroundings. The concept of a smartwatch is appealing to consumers who need complete accessibility to their phone, but do not always want to have their phone out. The smartwatch acts as an extension of the phone, allowing texts, emails, and calls to be viewed in real time with just a quick glimpse at their wrist.

Another factor that is specific to fitness tracking and smart watches is the performance of features. For example, the battery life, the accuracy of the fitness monitoring, and the ability to connect to Bluetooth are all valued features. Consumers want to know that the device they are spending money on performs the tasks they need it to. Products that do not fit the needs of consumers in the best and most efficient way do not do well in the technology market. Since the market is saturated, consumers have many options when buying their personal technology devices and they want to find a device that can function at the highest standard in all their valued areas.

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Competitive Analysis There was much anticipation surrounding the release of the Apple Watch. It has been

more than half a year since Apple released the much­anticipated Apple Watch in April of 2015. Like most of their products, the Apple Watch was greeted with some very stiff competition with other smartwatches and wearables on the market. Let’s take a look at the table (Figure 6) below:

Figure 6.

As you run down the list, the Apple Watch, other than it’s price, resolution, and storage capacity, isn’t all that different from the other products that are listed. For the sake of the competitive analysis, we are going to compare the Apple Watch with products considered to be “premium smartwatches.”

Before we get started talking about what competition the Apple Watch faces, there should be a greater understanding of what the product brings to the table. First, it comes with two different sizes in the 38mm and the 42mm, which is smaller than some people may think given the recent sizes of Apple’s new iPhones. For the prices listed above, it brought us to one specific question in, “What exactly does it do to cost that much money?” It has most qualities similar to the iPhone in that is able to do whatever the developers want to do with it, especially with the addition of the app store. The watch itself also connects to the iPhone (the watch is pretty much useless without it). In a review written on wareable.com, they state, “In short, Apple has built in all the features you’d expect from a smartwatch and let its’ developers create the experiences that give the Watch the opportunity to define the market” (Stables. Online). However, like stated earlier, the biggest elephant in the room has got to be the price of the products, which start as low as $349 and reach a top price around $17,000.

Upon its’ release in April 2015, Apple knew they were going to be met with stiff competition. One of its’ top competitors is Pebble, who released their product in July 2015, which product is the Pebble Time Steel. Pebble is compatible with both Apple and Android phones, which make it the most desirable smartwatch on the market for consumers.. Not only is

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it compatible with both platforms, the price of the new Pebble Time Steel is $300, which is only $50 less than the cheapest Apple Watch. It also has access to both Pebble and Android Wear apps, which exceeds over 6,500. Pebble and other Android smartwatches give the option to use any standard wristband (22mm) while Apple is offering its own bands, “with fancier Milanese and link bands serving as up­sell options in the place of storage or processing power” (Russell. Online). The battery life is another factor that puts Pebble ahead of Apple in that their smartwatch can last up to a week on one charge where the Apple Watch has an 18­hour battery life. The only reason for that is its e­paper display rather than an LED backlight. To some, it may seem clear which product should be bought and used, however, people are going to go with that they know, and Apple is a pretty popular brand with great brand recognition amongst an entire market of consumers.

Fitness and wearable smartwatches are starting to become the new “fad” amongst Americans. The easy accessibility of having the information on your wrist gives people the ability to always have an understanding of “how many more steps” they need to reach a goal, or whatever workout regimen may be. Apple is starting to develop an app that is supposedly, “going to do everything to make sure the onboard app that leverages all the wearables sensors and digital crown functionality rather than RunKeeper or some other alternative which can’t” (Orf. Online). Fitbit is one of the leaders in the wearable fitness market, considering all it does is help you track fitness related aspects. It can’t be categorized as a smartwatch, because it’s not a watch. However, we brought this into play to explain the fitness capabilities that have already been established before the Apple Watch, and at a much cheaper price.

Another one of the top competitors to the Apple Watch is the Moto 360 that is presented by Android. This particular product was released in September of 2014 for the price of $250. Originally, other than how the smartwatch actually looked like a watch, it didn’t live up to expectations right out of the gate. There were many different things with product including battery life and different hardware flaws. However, as time progressed, and like most products, improvements started to roll in with software updates and a new model being released late in 2015. “The 2015 Moto 360 improves over its predecessor in many meaningful ways” (Ingraham. Online). Nate Ingraham, author of the Moto 360 article, continues to talk about how the newer Moto 360 is better in design, battery life, and particular hardware. The new product sells from $300 and up at the starting size of 42mm. In regards to fitness, the Moto 360 has a heart rate tracker, just like the Apple Watch.

Many of the options that are available other than the Apple Watch are great alternatives and are seen as better options for the prices differentiation between them. The chart (Figure 7) below explains some of the differences between the top competitors of the Apple Watch:

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Figure 7.

Compared to the chart earlier, this one gives pictures and narrows down the categories in a more formal fashion in what people are looking for when they initially go to purchase one of these products. We hadn’t mentioned the LG Watch Urbane because it has yet to be released and the ASUS ZenWatch isn’t doing as well as the other watches compared to the Apple Watch. Something we’ve learned throughout marketing is that brand recognition plays a huge role in consumers purchasing decisions. While the Apple Watch is much more expensive than any of the other products, especially their high end products, consumers are still going to go with what they are used to or what their past experiences about the brand have told them. This gives Apple the advantage that most people would consider right out of the gate. However, the Moto 360 and the Pebble Time Steel are right up there with this particular product and if Apple wants to continue its’ dominance throughout many of the different products they create, they’ll have to step up their game and keep improving in order to keep from being passed up by its’ other, hungry competitors.

Swot Analysis Strengths

As Apple is a leader in technology and innovation, they have an extremely accurate and efficient way of creating, designing and producing their product in a way that makes consumers become loyal customers. The large ROE and financial stability are proof that not only does

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Apple has a strong following with consumers, but they also know how to create an appealing, useful product.

Apple uses its money for something that former CEO Steve Jobs said are some of the most important things for a company ­ advertising, PR and marketing. Apple’s advertising budget ranges around $40 million per product including the Apple Watch. Their advertising efforts in combination with their product, create brand loyalty and selective demand amongst consumers.

The design of Apple products is one of efficiency, innovation and top of the line. The supportive software, customer service and data security is big strength for Apple because everyone wants the best products. Apple knows how to create demand and deliver support for consumers, which makes it a leader in technology. Weaknesses

Just like any other product, the iWatch does posses some weaknesses. There are four weaknesses that the iWatch has. The two main ones are price and the apple ecosystem. When compared to other smartwatches, the iWatch is very overpriced. The iWatch starts at $350 and can go up from there. When there are other options on the market that are at the same value and a lesser price, it can be hard for someone to commit to the iWatch.

The Apple ecosystem is also a huge weakness. The iWatch only works with Apple products, and with only newer IOS systems. This can really limit their market. For someone to get full use out of the iWatch, the really need to have an iPhone, iPad, iTV, and any other Apple product. This can be a huge issue when Android is starting to get a huge step in the market. It would also make it difficult for someone who does not want to have an iPhone anymore and wants to switch to Android, their iWatch would then have less of a use to them.

The other two weaknesses that do not have as much of an impact on the purchase is the battery life and the apps. When compared to other devices, like Pebble, the iWatch has a very short battery life. The Pebble will run for seven days straight without having to be charged. The iWatch however needs to be charged every night, just like a smartphone, and sometimes more often if using a lot of battery for things such as activity tracking. When it comes to the apps, a lot of the apps require payment. Along with the payment, it also takes longer for Apple apps to hit market when compared to Android apps. Opportunities

Apple has several opportunities that offer promise in expanding their success with the Apple Watch. The largest of these opportunities is the growing popularity of health awareness. Wearable health­tracking technology is a growing industry in the American consumer market, which makes up a high percentage of the Apple consumer base. As consumers are looking for technology to help them attain a healthier lifestyle, they look to items such as watches to purchase. Apple is a prominent technology brand that consumers will likely look to when making purchasing decisions in this category.

Often referred to as a “global brand,” Apple has a growing retail presence in Asia, specifically China. As the demand for luxury products grows in these regions, the more opportunity arises for high­end technology products such as the Apple Watch. Entrance into this market projects high sales for Apple and competing brands. Apple in the past has done well

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when tailoring their products to local consumers with products such as the iPhone and iPad. They aim to do the same with the iWatch.

A notable feature of Apple is it’s upgradable software. This allows consumers to get the newest operating technology without having to purchase a new product. The opportunity in this feature comes when releasing the first edition of a product. As can be expected with any new product, there will be glitches and improvements to be made. Apple can service consumers on these issues by simply offering a downloadable upgrade at no cost. Consumers are willing to demonstrate loyalty to companies that value their user experience. Threats

The biggest hurdles for the Apple Watch is price, and only being available for IOS systems. The Apple Watch is significantly priced more than its competitors. This is because it is consisted a “premium” brand. The Apple Watch could lose business if people do not see a greater value that makes the price worth buying. With Apple being the pioneer of IOS operating system, they only make their products compatible for that software. Android Wear allows their users to be compatible with both IOS and Android. This means that some consumers would choose Android Wear over Apple because of compatibility potential.

In wearable technology, the Apple Watch has two main competitors, Android Wear and Fitbit. Both are lower price and have similar functions. Fitbit is a strong competitor with the health tracking market. They are an afford, accurate way to measure calories burned, heart rate, sleep efficiency, and steps taken. Android Wear does many of the same functions that the Apple Watch does, but for a lower price.

The Apple Watch has several vulnerabilities, which are rapid technological change, saturated market, and late entry. The wearable market is very new in the market, being around for about two years. This means that with every new watch that is made, the technology is transforming. This means the design and functions must consistently be updated in order to be successful. The smartwatch market has become saturated because their are many competitors developing the same product as the Apple Watch. This means that the Apple Watch has to continuously prove that their product is superior enough to pay the extra price. The Apple Watch was about ten months behind Android Wear. This means that early adopters had already bought a different smartwatch, not the Apple Watch.

Right now, the negative environmental factor is the Apple Watch not having enough sales. This caused Apple put its smart watches on sale. This has caused people to speculate that there will be a Apple Watch 2 announcement soon. This is causing people to go out and buy the Apple Watch. Analysis of Research

All of the data collected was collected by everyone in the group pertaining to their specific topic or subject that they were focused on. Everyone took their time and really came out with some good information that will help improve our product. From that understanding, everyone has researched different websites with different statistical information that pertained to their topics, which helped them succeed in finding what was needed. It also allowed different perspectives to come into play because our group members all come from unique backgrounds and apply unique points of view on the product.

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During the research process our group realized a lot of things. Collecting research is not only something that requires detail and focus, but it also involves getting credible and reliable research information. The Internet is a huge entity with billions of sites that can potentially carry false information. However, we all had to ask ourselves if this information was factual and whether it was credible. Information means nothing if it doesn’t carry facts and that is something we had to learn to work on. In order to have good research, it must carry weight. No good campaign can be run on false information. With that being said, we made sure that all our sources added up, as well as used trusted sites to conduct our research in an effective way. The caution used in conducting research was a surprising factor in our process because we didn’t want to be bogged down by misinformed sources and we didn’t realize how many sources can be misinformed especially with the Internet. We also used the library databases, which helps to make sure we have the proper information. That way we are providing our report with factual information.

In our first paper, research and data collection were extremely important when it came to finding out more about the product and how it was emerging onto the scene in this new technological era that we are apart of. What we did was first figure out what exactly the direction was that we wanted to take the paper and then focus on for our product. In saying that, we could not go much further without actually knowing more about the Apple Watch. We started off by stacking up the Apple Watch against their competition. A few of the competitors being the Pebble Time Steel, Moto 360, ASUS Zenwatch, LG Watch Urbane It is easier to start off by knowing what the competition offers so that we can put a plan together in which we are able to still come off as the best option when our product would be released. First, we found the particular websites that showed off the other products and gave us information on what exactly they offered regarding size, comfortability, usage, battery life, etc. We then double­checked the competitor's’ actual website to make sure there was similarities between the two sources. These are some of the main things that consumers looked for, based on data collection, when they wanted to buy a “smart watch”. We want to make sure that Apple Watch has the features our consumers want.

Once all of that was considered, we looked at how our Apple Watch could meet the requirements set by the consumers when it comes to all of the categories. New to Apple, but the watch was not necessarily the best option when it comes to smartwatches. Based on that finding, we had to figure out which market we felt was better suited for our product. We started to instantly look for areas where repeat buyers of Apple products were located. That way, we would be able to get into a better situation in which people would buy our products based on their brand recognition. However, it is not just those people we wanted to target. So, we found the specific target market of those in their early to mid twenties, what we deemed “young professionals”. We chose these particular people because they have the potential to be lifetime customers and are more in tune with new emerging technology. Another factor was that these people are already in a career, so they would have the ability to afford our premium product. There is more information on the target market in the next section.

Once we found our target market, it was important to understand the environment surrounding the Apple Watch. We did an in­depth analysis figuring out the social, cultural, economical, and political factors. It was important to understand these factors. With the social and cultural factors, it is important to understand your consumer. We want our product to give the people what they want with the features and benefits. The economical and political factors

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are important because that affects the product. Whether it is parts being developed in a foreign country or cyber security laws.

Once we were able to get comparisons and figure out what market we were willing to target, we needed to start going more in depth with our data and marketing our product. While doing that, we found more information that would be considered “surprising” regarding what exactly the Apple Watch can do and provide for consumers. We mentioned earlier that the Apple Watch isn’t exactly the “top of the line” product or the best there is to offer when it comes to the smartwatch market. This is something that we had to deal with and figure out what we needed to do to help our cause and make sure that people wanted our product more than the others. We have to stand out more.

The most useful information that we all found was coming from secondary consumers or reviews that we found online outlining our product with other products, among other important aspects. Online reviews are increasingly important in today’s social world because people are constantly looking to reviews before purchasing a product. Consumers are able to do this instantly, which can make or break a purchase if they see a positive or negative review on the product. What we’ve done with that is process what we found and used it to our advantage of planning what our potential marketing strategy is going to be. This plays in with our objectives and different strategies that we’ve come up with in regards to what we want to do to make sure that our product is marketed in the best way possible. Listening to the consumer’s thoughts is a vital and effective way to improve advertising of a product all while making the consumer feel heard. What was so unexpected with our research is the fact that there were other products that were better in different categories regarding the size of a smartwatch, the battery life, the amount of storage involved, and how well the watch operates with the app compatibility, whether it’s Apple or Android.

In many ways, collecting data and performing research can easily help improve a company's marketing plan for a specific product. This has been the case for us. We were faced with numerous issues and obstacles in which we needed to change the direction in which we were going in order to provide a favorable outcome for our company and the success of the Apple Watch. We found out the new ramifications that need to be done in order for us to put out a product that can be considered top of the line material and show consumers that Apple and consistently put out new products every year with military like precision, making them top of the line.

Without the research, we might not have been able to understand the different aspects that come into play when trying to market and introduce a new product into the market. We also would not know that there are other products out there that serve as some very suitable competition. Finding out all of this information was the best thing that could have happened in regards to how we are now going about advertising and marketing our product. We now know the specifics about our product and the competitions. Therefore, we know what features the competition lacks and we know where we can improve. Every product has a strong point, but we wanted to make sure we advertised and marketed every great aspect of the Apple Watch with the appropriate markets so that people could find everything they need in the Apple Watch.

We also know that we have a specific target market that we want to approach and hopefully connect with. Our objectives and strategies have vastly changed as well thanks to the newfound data. Without it, we would not have been able to come up with an appropriate plan that suits our particular consumer market and our product as a whole. Different objectives have

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been set up so that different tasks are handled leading up to the launch of our new campaign. With all that being said, we have been able to collectively work together and figure out what direction we want to go in marketing our product and making sure that we get the most out of what we believe is an amazing smartwatch that has the ability to change the outlook on smartwatches for years to come. In fact, not only is it going to change the way people look at smartwatches, but how they look at new and emerging technology that could potentially change the world. Target Market Profile

To be able to market a product effectively it is important for any company to have a target market that they are trying to appeal to. “Product launches that try to be all things to all people generally fail” (Carter). This is because not everyone is the same. Most people can be classified into different groups whether it is based on their age, salary, etc. Age is normally the group where companies will try to pick a certain age group to be their target market and appeal to that group. However if that does not work, then the company needs to have a secondary market, maybe more than one. In the past, Apple has always appealed and marketed towards young professionals with a stable well­paid job. Apple isn’t known for having only one target market. Apple tends to appeal to a broader group of people with sleek tech advertisements, fashionable advertisements and music advertisements. When selecting target markets you not only have to think about age, income etc. but also the markets interests that motivate them to make purchases.

One of the unique things about creating target markets for the Apple Watch is not just categorizing people into primary and secondary markets but also marketing towards the individual. Apple is able to do this with the Apple Watch because a watch is a personal product that can be customized and used for very specific purposes. “It targets people. It focuses on users. And Apple lets them decide how and where they’ll use its products.” (Asay). Not all companies are able to use the individual consumer approach to marketing, which gives the Apple Watch an advantage. An important thing to remember as we made the target market and secondary market is to never forget the individual because the individuals are the ones who are inevitably making the purchases. We took the idea that, “This is how great companies are built: they focus on individuals and build exceptional products for them, and let these individuals determine how best to make use of the technology,” and we applied it to our advertising to the targets (Asay).

Apple’s primary target market for the Apple Watch is the young professional. These will individuals in their twenties who have a stable and well paying job. This market is going to be the more tech savvy group that most likely already has an Apple product and will know how to work the device. This target market is good to market to because they have “lifetime customer value” and are “more receptive to technology innovation” (Carter). Another aspect that is appealing to this market is how convenient the watch is. When compared to a phone, the watch cannot easily slip out of your hands, drop, and possibly crack. The Apple Watch also allows these young people who have started their careers to use all the different features and benefits. There are three potential downside to having this age group as the primary target market. One first is that they may not have the money to spend on the iWatch. Since the Apple Watch is a premium or luxury brand, the price is more expensive. The second potential downfall is that these young professionals may not be willing to spend that much on a watch when they can find

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another smart watch for a more affordable price. When money is tight, it is hard for these young people to justify spending these large amount, when a more affordable, similar product is out there. The third downfall is that buying the Apple Watch is a commitment to the Apple brand. Since the Apple Watch has a significant cost attached to it, users feel that they will be commitment to the brand or life. These is because they Apple Watch only allows for IOS to use it, whereas the other smartwatches in the market allow for both the Android and IOS systems. Not being able to switch between the different operating systems might make these young professionals nervous. If they feel nervous, they are less likely to buy our product. This is counter­acted by the status that the Apple Watch brings. Young professionals who are trying to move up the corporate ladder want something that makes them stand out. The Apple Watch can do that for them.

A good secondary target market to advertise to a woman. “Female consumer acceptance of the Apple Watch is extremely important for the smartwatch industry who, until now, has mostly male buyers” (Adams). To be able to make the Apple Watch appealing to women, Apple has not only made the watch ‘fashionable’, but they have also advertised it by using top fashion resources. “The luxury and fashion watch industry has for a long time known that the majority of female consumers are primarily interested in what something looks like on them, what wearing a brand says about them, and how a brand or product fits into their current or idealized lifestyle” (Adams). This is why the Apple Watch offers different band styles and watch faces. These allow its consumers to customize their look, which is often important to women. Apple is also targeting their commercials towards women specifically. Of the newest seven Apple Watch consumers, a woman is featured in five of the videos. This shows that Apple is trying to increase the popularity among women. Since the female population should, in reality, represent 50% of the Apple Watch buyers, it is important to make sure that they are being marketing to and that their needs in the product are being met. One feature that women want Apple highlights is the simplistic design of the iOS interface. With having the simplistic design, it allows women to be more direct. Which is important to women.

Another secondary target market that the Apple Watch could be advertised to are the ‘Baby Boomers’. This includes 50­70 year old individuals who are hard working with stable jobs and incomes. This age group is most known for wearing watches, unlike younger individuals who grew up with digital watches on their phones. The fact that it is a watch, could resonate with the older generation. Whereas it is difficult for a product to change someone’s behavior, such as with the young professionals. Along with that, the Apple Watch involves a lot of things that help people work on and focus on their health. “Younger people care about their health, but they don’t fixate on it like older people do” (Carter). This doesn’t mean just their physical health, such as working out for the recommended time each day. This involves their overall health and wellness. Fitness trackers are becoming increasingly more popular because it allows the user to always know their activity. The days of guessing how much they have walked are gone thanks to apps tracking. Many health organizations such as Mayo clinic have realized this and have started to develop apps for the Apple Watch that can allow Baby Boomers to further track their health and have instant access to health information. This always this age group to become healthier and potentially extend their life because they are more conscious of their health. The Apple Watch also has a ‘cool factor’, which is appealing to the Baby Boomers. “Baby Boomers were the coolest generation America has even seen” and they want to “hang on to that coolness” (Carter).

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Apple uses that information and is able to appeal to that aspect in ways that other smartwatches are unable to.

Innovators of the product adopting stage also make up a secondary target due to the fact that a smartwatch like the Apple Watch is one of the first of it’s kind in the tech world. Innovators are the tech enthusiasts who want to get their hands on the latest tech trends out there. Apple has a loyal fan base of tech enthusiasts who pre order Apple products in order to have the latest and greatest. An important target is an innovator because they’re the first to talk about the product. Tech enthusiasts write reviews and blogs about the newest tech releases, therefore they are an important group to please as well as listen to when they do reviews. Innovators will also be interested in the fitness monitoring aspect of the Apple watch. Fitness monitors are a new trend that everyone seems to be talking about. When an innovator buys the Apple watch, they are likely to use word of mouth and publicize the fitness­tracking feature of the watch. Innovators are only a secondary market due to the fact that there are few innovators in product adoption and some of these innovators also make up the primary market. Objectives and Strategies Marketing and Advertising Objectives Our primary marketing and advertising goal is to inspire consumers to purchase the Apple Watch, as well as referring it to new consumers. Specifically, consumers need to seek out the Apple Watch in fulfillment of their needs and what they want from a technological standpoint. This goal is the final action that is desired from the target audience. In order to achieve this action goal, the Apple watch must use a advertising marketing hierarchy to guide customers through their purchase decision.

Awareness is the first thing that is needed for a consumer to pick a produce when making a buying decision. Consumers need to be aware that the Apple Watch is in the market and a quality product that can fulfill their fitness tracking and personal technology needs. In addition to this, consumers need to know where to go when wanting an Apple watch and where they can receive support for the product. Going along with that, comprehension of a product and it’s potential is crucial in advertising and marketing. Through the Apple marketing campaign, consumers will understand the features the Apple watch has to offer and they can put these features to work for them.

Once consumers are drawn to a product, a company must develop a trust and conviction from their potential market. Apple advertisements will uphold strong ethical values that put the consumer’s convenience first. Once consumers are drawn to our product, we want them to become personal advertisers for our brand, branching out to new consumers who otherwise wouldn’t purchase any type of Apple product. The Apple Watch is a product that follows through on expectations and our advertising plan will reflect this.

Awareness, understanding, and conviction are all useless unless a consumer develops a desire for the product. Because of this, our marketing plan will focus on making a product that appeals to their technology wants and needs. Showing consumers that by investing in the Apple brand they are enhancing their personal brand through social status and adding convenience to their life by encouraging a healthily lifestyle and wearing their smart phone on their wrist. Our advertising will show consumers that the Apple Watch is something they do not want to live without. Furthermore, encouraging them to make the final action: going out and purchasing an Apple Watch.

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Validation of Marketing and Advertising Objectives

Apple is a company that has built up a very powerful reputation. Based upon past success, the company has gained the trust and loyalty of the technology consumer market. Forbes magazine writer Scott Goodson explains Apple’s consumer following, “By creating an emotional connection with its customers, Apple has done the near impossible – it has acquired a loyal following. Brand loyalty has played a huge part in its global success. There’s no doubt about that.” (Forbes.com) Upholding this reputation is high up on the priorities of this marketing plan.

Due to Apple’s high budget marketing and previous brand exposure, they are able to reach a high volume of consumers. Obtaining awareness shouldn’t be a major issue for the company because of this. Apple can use its current following to market the Apple Watch and show consumers the new, innovative product. It is reasonable to assume that due to positive brand association, consumers will trust the advertisements put out by Apple and are willing to take the time to listen to what they have to say.

Once a consumer’s attention is grasped, that is where the final goals of our advertising plans will come into play. Creating informational advertisements that demonstrate the unique features, along with stressing the utility of the product, will build trust and conviction within the target market. This goal is attainable because Apple is already a trusted brand and as long as they maintain their current company standards, they can meet this goal.

Apple has a necessary task of maintaining brand loyalty. Through our advertising campaign we seek to fill the needs of our customers and ensure that they remain in support of the brand in the future. This involves consumers purchasing the Apple Watch and becoming brand ambassadors. It is natural for consumers to praise a product that they for benefit in and recommend it to other consumers. Therefore, due to our belief in the product, it is reasonable to assume that people will purchase the Apple watch and have a positive impact on the image of the brand. Alternate and Supplemental Marketing Communications

The combination of public relations, branding, and direct marketing are important when executing an effective marketing plan for the Apple Watch. Because Apple has a significant brand following, the marketing for their new products needs to be fluent with their current image. One inconsistent product that contradicts the company's positive image, can damage the company's reputation in the eyes of consumers. With every product launched, a brand must consider the impact it will have on their entire company's reputation. By branding the Apple Watch in conjunction with their current success, they are able to transfer their brand image to their new product. A strong public relations campaign can greatly supplement a good marketing campaign. The effectiveness of marketing relies on the perception of the public and the brand image that is created. If a company has a positive association with the public, they will spark more buying behavior in their favor. Public relations can also create a more detailed source of information for consumers. Technology purchases usually require a great deal of consideration in the buying process. Consumers desire a place (online or in­store) that they can visit for detailed information about the product. This type of method allows for the target market to test the product and predict its utility in their life. Without public relations, a product is not in the public view will be

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overlooked and passed up in the buying decision process. This concept goes hand­in­hand with the conviction of the customers ­­if customers perceive a brand as trustworthy, the message will be received as factual. As with any new product, questions will arise and if they are addressed promptly, limited frustration will come from the target market. Direct marketing can also be very beneficial in conjunction with a strong advertising plan. Since Apple does already have consumer information (from past purchases and databases), it would be easy to obtain information to begin an email, online, or text message campaign. Putting the advertisement directly in consumer’s hands would ensure that they are aware of the product’s entry into the market. Due to the smart­watch industry being new, the more consumers that are exposed to a product, the better. Without direct marketing, consumers could be lost in the large demographic and therefore missed when making sales. Direct marketing is a reliable way to get information in the hands of consumers at a low cost.

In conclusion, supplementary communications can greatly improve a marketing plan. When marketing the Apple Watch, it is important to ensure the public is up to date on products and maintaining a positive association with the brand. In addition to public relations and branding, direct marketing is also crucial when developing a new product. The combination of all three will create a strong campaign for the Apple Watch. Advertising Strategy

The target audience for the Apple Watch is young professionals. The young professional groups are in a career, which lets them afford the exclusiveness of the Apple brand. This group also grew up using technology from a young age. This means that they can understand and effectively use all the features of the Apple Watch.

The product concept for the Apple Watch is that it is a premium brand. When consumers use the watch, they are guaranteed the luxury of a product that will always work. The Apple Watch has complete integration with their own products, which is a major benefit for its consumers. The Apple Watch also elicits a high sense of status among people. The Apple Watch has a higher price than its competitors. This price can range from$349 ­ $15,000 (Apple.com. Online). People are willing to pay more because they are of the high status inference.

The IMC Message is to “think differently”. Apple wants its consumers to use their products to change the world. According to Rob Siltanen, “Here's to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They're not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can't do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do” (Goodreads. Online). Apple considers itself a company that pushes the boundaries. They want their consumers to do that too.

Communications Media is an important part of an advertising strategy. The Apple Watch uses the digital media and television to spread their message to others. The Internet has become the major way advertisers spread messages to its potential and current consumers. There is an infinite amount of different digital media websites. A couple of the main ones are Facebook, Twitter, and YouTube. Facebook and Twitter will have sponsored content that will advertises on people's’ newsfeeds. YouTube will play advertisements before the video, which could influence consumers. With television, they will have commercials about the product. Apple can also have

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their product used in television shows, which can influence people who like the show that they need an Apple Watch. One example of this is with Pretty Little Liars. One of the main characters, Spencer, wears the watch and the show focuses on it several times throughout an episode. “Big Idea”

Every time Apple launches a new product, they come out with a series of commercials that is their “big idea”. For the Apple Watch, the big idea is to “think different”. In order to show this, they released seven new videos. According to Paul Sawer “the new advertisements are each 16 seconds in length, and they each focus on one key theme: “Move,” “Skate,” “Travel,” “Play,” “Style,” “Kiss,” and “Dance.” Each ad seeks to sell one key feature of the Apple Watch, and, in usual Apple style, each is set against a cool soundtrack” (Sawer. Online). When looking at the different videos, they elicit interest in the product creating an emotional responses, each leads them into action.

The first video is titled “Move”, which is showcasing the fact that the Apple Watch will track the consumer’s activity. The second video “Skate”, is showing that the Apple Watch can help you in emergencies and get out of problems. The third video “Travel” shows a woman with a suitcase and she looks at her wrist. This allows the viewer to think she is checking her flight information. The fourth video is “Play”, which shows a guy playing the piano. This allows its viewers to see that the Apple Watch does not affect normal activities that people do. The fifth video is “Style”, which shows the different colors of the bands, allowing the consumers to know it will not affect their fashion. The sixth video is “Kiss” show that the video is an integrated part of a person’s life, but they can choose when they do not want it. The final video “Dance” is the only one that features a voice. A man asks Siri to play “80’s dance music”. This is showing the consumer that Siri is an integral part of the watch. These videos are showing how the watch becomes an immeasurable force in the consumer’s life. That the technology helps improve your life. Since the consumer has this technology, they have the power to empower others. In order to empower others, they have to “think different” and the Apple Watch gives them the space to do that.

Strategies for choosing target market

When choosing the target market, we wanted a group that would be technologically savvy, so that they could take advantage of the different features the Apple Watch offers. Another big factor affecting our chosen target market is who can afford our product. This is what influenced us to choose young professionals as the target market.

To go more in­depth in the different demographic factors we considered we looked at the following: age, gender, income level, marital status, occupation, educational level, and ethnic background. For age, we wanted people who were younger and grew up with technology. These are the individuals who are newer to their careers. Gender does not have an effect because we want both men and women to use our product. For income level, we know that they have to be upper middle class since the Apple Watch is a premium item. The marital status does not matter for our group. The specific occupation does not matter because the Apple Watch is flexible and can be used in every career. While the education level is not needed, it is suggested. This is in order to have a career that has a big of salary that the consumer can afford the watch. The ethical background does not have an impact either. Interests are also something we looked at because

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interests are what motivate people to make purchases. In the case of the Apple Watch we wanted to advertise the interests of our markets such as wearable fitness trackers, music and simplicity of communication through voice commands. Apple Watch wants to be more a great piece of technology, but also lifestyle that makes consumers lives easier all while aligning with their interests. We want everyone to use the Apple Watch.

Once we looked at the different demographic factors, we then went to identify which customer categories have the greatest need for the Apple Watch. This is how we determined young professionals as our target market. They are the group that will need the different features the Apple Watch provides in order to be more successful. By segmenting the market by age, gender, interests, among many other things we were able to develop a message that would draw the attention of our desired audience. Budget

For our budget, we will be using the entire five million dollars that was allotted to us. With Apple being a prestige brand, it was important for us to buy advertises that gave the illusion of a luxury brand. In this section, we will be discuss the total campaign budget. Within this discuss, we will include a rationale for our recommendations and how our media cost are broken down.

When deciding our total campaign budget, we first had to decide the different ways we wanted to spend it. We looked at ten different avenues on how we would spend our money. These were online, catalogs, conventions, trade shows, print, radio, promotions, publications, sales training, and magazines. The following chart (Figure 8) shows the budget breakdown.

Figure 8.

Media Objectives and Strategy Objectives

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Target Audience Apple’s primary target market for the Apple Watch are the young professionals, who are

individuals in their twenties who have a stable and well paying job. Some of the major characteristics that fit their profile include:

Tech savvy Already has an Apple Product Lifetime customer value More receptive to technological innovation Adaptable

We choose these characteristics because they are the most likely to be interested in the Apple Watch. We want people who are technologically savvy because they are most likely to understand the different features and use the product in new ways. Apple encourages its consumers to “think different”, so it is important that they are given a way to do that. Apple has created the IOS operating system, which makes it impossible for the Apple Watch to be compatible with android. A benefit of having an user with existing Apple products is that everything will synchronize automatically because of our integrated systems. This is an important aspect is the simplicity of synchronization. Apple want to encourage lifetime customers. We want to have customer loyalty. We also want our consumers to buy all their products through us. We want to sell our phones, tablets, computers, and smartwatches to our lifetime customers. They provide a great way support to the company. Another aspect we want is our consumer to be receptive to technological innovation. As Apple continues to push the boundary technologically, we want our customer to stay with us and buy our future product. The Apple Watch is one of the products that Apple has that is pushing the boundaries. Without our consumers taking risks on our products, we would not able to innovate. Finally, we want our consumers to be adaptable to change. Apple is constantly changing their products in order to better serve their users. Sometimes this change can be drastic and make the consumer unsure while they are learning the new software. If our consumer was adaptable, they would be able to keep up with our changing technology.

Reach/Frequency Ultimately, between the reach and the frequency, each is equally as important as the other

is when it comes to media representation. Reach refers to the number of different people or households who are exposed to a medium during a given period of time, at least once. The frequency refers to the number of times they (families, people, etc.) are exposed to a particular message. After considering different elements, frequency seems to have more of an impact considering it is the number of times a person must be exposed to a particular advertising method before a response is made. This gives our company an advantage knowing how many times people need to be exposed to something before their decision making is influenced and we can save money along the way.

When it comes to the particular frequency in which we want to rate our product at, many different factors come into play and play a major factor. According to the Ostrow Model, which is used to estimate effective frequency, there are 3 major factors to consider: Marketing, Copy, and Media. Since Apple is such a well­known and successful company, the frequency needs to be a little smaller compared to new and emerging companies. We don’t want to make our run of advertising seem “worn out” or appear to “drag on” as that could be potentially damaging to our

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product and leave even the most loyal customers with a bad taste in their mouth. After calculating a frequency using the Ostrow Model, we ended up with an effective frequency of 2.6, which lands us in the Lowest Average Frequency category.

Geographic Coverage As a big name brand, Apple can reach all kinds of audiences even being advertised in the

smallest of towns. However, to be effective when it comes to sales and to the particular target they are trying to reach, locating most of the ads in bigger markets such as New York (on the East Coast) and Los Angeles (West Coast) would have the most impact. When people think of markets in the southern regions, Atlanta and Miami could also be considered to market particular or new prospects.

The Apple brand has built itself up well over the years, becoming one of the most preferred brands for mobile devices such as phones and tablets. Now, bursting into the Mobile Watch industry, they have an easier task at advertising to some of their most loyal customers, or people who will buy a product based on their brand loyalty.

As far as a particular emphasis on a regional area, Apple has such a wide reach across the United States, that singling out just one region still wouldn’t have a greater impact over singling out another. Each region having a particular amount of advertising evenly distributed would have the most effective impact, considering the specific reach Apple already has as a well­implemented brand.

Creative Implications Choosing specific platforms can often become difficult if certain strategies are trying to

be implemented when using selection planning to a particular medium. However, since Apple is such a well known brand, there isn’t much thought that goes into how they want to market to individuals, especially those of which are the target audience as mentioned in previous sections. Most young professionals are now so in­tune with the Internet that using online advertising is a huge must for Apple, taking up most of the advertising plan. Coming in at second as far as advertising goes is radio, with print advertising coming right behind that. Typically, older generations are more likely to use print and radio media than those of younger generations, who use the Internet and social media platforms daily.

Promotion Support Apple is a big enough brand that naturally, advertises itself without the use of ads and

spending too much money on behalf of the entire company. When it comes to sales/event promotion, having media support can be huge if Apple wants to show how in depth they are and whether or not they want to portray a particular image. Since Apple wants to be the go to brand for each product they distribute, they more than likely want people to look upon them as a non comparable or “untouchable” company. The company believes that having support of the media when certain products are presented, and eventually released, builds up the anticipation of the consumers, who then become more excited for the features that particular product offers and makes them want to buy that product. Apple has done this for years with the CEO of the company coming on stage and giving their opinion on why their particular new product is better than anything else people are going to find on the market.

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Trade Communication Apple didn’t start as the national phenomenon that it is today. Obviously, through the

years, Apple has paired with other companies to try and “boost” their sales and continue to grow their client base. Today, Apple doesn’t need much of that help. The company, at this point in time, is so influential, that teaming up with another brand to help promote an Apple release could make the company look weak (like they need someone to lean on in order to succeed). This isn’t always the case, especially when coming out with a new product line and emerging into a new market. However, in this particular instance, Apple is such a well known company for putting out top of the line products, that when they come out with something new, people are instantly assuming it’s top of the line. In saying that, there is no need to have trade consumers or secondary brands help out with our brand promotion.

Budget Limitation Our budget had several limitations due to the five million dollar constraints. Advertising

for Apple costs a significant amount due to the factor we are a prestige company. We want to give the appearance of being the best of the best, and without the right amount of money, we struggle trying to achieve that. We are one of the biggest technology companies in the world, so we need our advertisements to show this. We need to be in the top technology magazines, have the most popular radio stations play our advertisements, be a part of major television programs like the Super Bowl, and have a prominent social media presence. Another difficulty is having the contingency budget of ten percent, which would be an amount of $500,000. It is hard to budget this amount since we want to use it with our advertisements. Strategy

Decide Media Mix The primary media that will be used to market the Apple Watch will be social media. The

digital age that media has evolved into has made social media a powerful tool to use for marketing. It allows for increased brand recognition, improved brand loyalty, higher conversion rates, higher brand authority, richer customer experiences, and improved customer insights.

Wither marketing on social media, Apple will be able to increase their brand name because social media “simultaneously makes you easier and more accessible for new customers, and makes you more familiar and recognizable for existing customers” (DeMers). Along with that, according to a study done by Convince & Convert, 53% of Americans who follow brands in social media are more loyal to those brands.

Marketing through social media also allows for Apple to not only reach out to their recent customers, but also new and old customers that they may not have had interaction with. This allows for all types of customers to be able to voice their opinion about Apple products. If there is a complaint, Apple can apologize immediately and fix the issue. If a customer compliments them, they can thank them. This interaction makes the brand seem more than just products, but a brand that has a personal experience with its customers.

A huge advantage to marketing on social media for the Apple Watch is that the majority of social media users are within the target market for Apple. Looking at the table below, it can be seen that a lot of twenty year olds, individuals with college experience, and have a good income are the ones using social media the most. With the help of technology, including other Apple

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products and the Apple Watch, these individuals can access their social media wherever they are. Figure 9, shows a breakdown of demographics for the decided media mix.

Figure 9.

For the Apple Watch, the secondary media to use for marketing will be magazines. While advertising through print is not as popular as it was in the past, some consumers still prefer this. Those who do not like purchasing magazines would still be able to see the advertisement through either the magazine's website of using Apple’s magazine and newspaper app. The good part about advertising in magazines is that most of them are geared towards a certain audience. The advantage Apple has with this is that they could market in different types of magazines. The main types Apple can advertise are in technology and electronics focused magazines. Readers of these are purchasing the magazines because they want to know what the next best thing coming out is and learn all about it. Apple can also focus on their female consumers and the aspect of the Watch being a fashion statement and market in magazines such as Vogue.

Scheduling The best scheduling type for Apple to use when it comes to marketing the Apple Watch is

a pulsing schedule. This is when advertising can continue throughout the year, yet there is a clear period when more money is spent on advertising than during other times. This will be good for the Apple Watch because there can be constant updates on the Watch, even if it is a small change such as more colors of bands offered. The times where more money would be spent would be when the Watch is released, a new version is released, or anything major that Apple wants their consumers to know about the Watch.

Weighting, Reach and Frequency The geographic markets that will receive more “weights” will be the markets that fall

within our target market. These will be the twenty year olds or young professionals. They will include both male and female since both genders use the Watch. While marketing for the Apple Watch can continue throughout the year, one of the best months to advertise it would be at the end of September. The reason for this would be because this is the time when companies start to

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advertise for Black Friday sales. This would be a good time for Apple because it would offer a good deal for the Watch for consumers who may not want to spend the full amount.

FigurMedia Tactics: Specific Vehicle Recommendation Apple Watch requires a diverse media coverage plan that reaches all its primary and

secondary audiences. In order to accomplish this, the following vehicles are recommended: Television, print, radio and digital. Our common tactic was to allocate information about the Apple Watch across all media outlets to create brand awareness and stimulate purchases. The following figure 10 shows the media flow breakdown.

e 10. This chart will be further explained in the different sections. Television

Television has developed into a mainstream, widely used form of advertising. Its steady viewership can provide companies with a wide reach of exposure across a diverse demographic. With a saturated programming schedule, it is important to look for programming with a high volume of viewership. Combining a dependable network with a highly anticipated television program can provide an invaluable advertising opportunity for companies who can afford to invest in them. For our plan, we are planning to use the Super Bowl as our only time on television. The Super Bowl was shown on February 1. It had a viewership of 115 million people. This will cost Apple $4,500,000 for a 30 second ad. In the section that follows will be an in depth analysis of why advertising in the Super Bowl is important.

Super Bowl Advertisement The media reach of the Super Bowl in unmatched by any other program on television. With 22% of the airtime consisting of advertisements and promotions, the presence of marketing is significant in the program. In 2016, companies on average spent 4.8 million dollars to book a sport in the advertisement lineup. While often scrutinized for its high advertisement prices, individuals tend to overlook the benefit of high volume exposure to a vast variety of demographics. The program drew in 115 million viewers, which was just slightly below the

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preview year’s tally. As you can see in figure 11 below, viewership of the Super Bowl has steadily inclined in the past decade, remaining above 110 million in the past three years. Of this 110 million impressions, 46% were female, and no age group represented more than 25% of the viewer total. This means, the Super Bowl reaches more than just the stereotypical sports fan, a 25­45 year old male. (Statistica) This diverse demographic gives advertisers an invaluable opportunity for exposure.

Figure 11. The Super Bowl is more than just a sporting event to many viewers. Based on statistics

from the 2015 game, 17.7% of viewers cited the commercials to be the more important part of the Super Bowl experience, while only 37% percent stated the game to be the key reason they watch (Woodyard). This means that almost one fifth of viewers watch the five hour program simply because they want to witness the new advertisements that are debuting, with little or no regard to the actual main event, the football game, creating a strong opportunity for advertisers to get their exposure. The Apple Watch’s target demographic is widely spread, much like the viewership of the Super Bowl and with aligning demographics; it proves to be a very beneficial marketing tool for the product. Apple can inform a wide array of customers of its new product and increase brand and product awareness. As viewers begin to focus more on the advertisements and less on the game, the commercials become an impressionable source for viewers. Apple already has a great brand image, meaning consumers will trust and value the information they put forth in advertisements, thus allowing them to focus on showcasing their product and not building rapport.

Adding even more value to the 4.8 million dollar commercial, companies can count on a wave of post­game exposure from talk shows, online recaps, and social media outlets that discuss the advertisement coverage for weeks after the initial airtime. Critics post replays of their favorite commercials on Facebook, Instagram, and Twitter, opening up the company to unlimited impressions in the weeks following the program. In addition, talk shows and post game programs

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mention their favorite advertisements and replay them for their audiences to view. While many of the viewers of post game shows are repeat viewers from the game, repeated views increase brand awareness and recognition, giving the commercial more value to the company.

The Apple Watch advertising campaign can greatly benefit from the tandem of in game and postgame exposure. During the game, obviously exposure is high and the target demographic is ideal. However, being a technology company, the after wave of exposure is where the largest impact can be made. Social media has been a huge tool for Apple, so with an added buzz from a successful Super Bowl Commercial, they can be a major trend on several platforms. Utilizing this exposure is something Apple cannot afford to pass up. When releasing a new product, views and impressions are key. The high volume of viewers will allow the product to be seen by consumers. The high price is doable due to Apple’s high budget spending and the return on investment will prove to pay for itself.

Print

Print sources have a long tradition of spreading information to individuals all around the world. The invention of the printing press revolutionized the way information was spread. With the spread of technology, print has become more of a special interest topics of information. This is because it hard for print to compete with digital for the latest story. That is why they have changed their news type. For our print source, we decided that the MIT Technology Review would be our only source. This magazine has a circulation of 177,436 people between students, faculty, and alumni. We are planning to an advertisement run three times in the months of February, August, and November. In the following section, we will discuss the need to advertise in this source and give more specific data about the reach and the issue themes.

MIT Technology Review This magazine was chosen because of the power the college brings. MIT Technology

Review is the magazine of one of the top universities in the world. It is important to look at the demographics of who attends MIT. MIT stands for the Massachusetts Institute of Technology. This university is known for its specialization in technology. Whether it is engineering or computer science, MIT is know as one of the best. According to MIT Technology Review Media Kit, “ MIT plays a critical role in fostering innovation and entrepreneurial growth as well as in stimulating much­needed recovery in regional and global economies. There are 25,800 currently active companies founded by MIT alumni. Those companies employ about 3.3 million people” (MIT Tech Review. Online) This is important information to understand in order to see the potential demographics of alumni looking at the paper. Some more information on the alumni subscription is that “They generate annual revenues of $2 trillion, producing the equivalent of the eleventh­largest economy in the world. An estimated 6,900 MIT Alumni firms are headquartered in Massachusetts alone and generate worldwide sales of about $164 billion” (MIT Tech Review. Online). Not only are alumni given this magazine, it is also given out to its current students. According to the Media Kit, this magazine has an average circulation of 177,436. Figure 12 is an example of the magazine.

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Figure 12.

The three issues we will be advertising in are “Business Report: Funding Innovation”, “List Issue: 50 Smartest Companies Business Report: Climate Change”, and “Business Report: Technology and the Body” (MIT Tech Review. Online). The January/February issue is “Business Report: Funding Innovation”. The July/August issues is “List Issue: 50 Smartest Companies Business Report: Climate Change”. The final issue is “Business Report: Technology and the Body” is not only appropriate for our topic of wearable technology, but it is also the November and December issue. This will make for the perfect holiday gift. We are planning to run three promotions that will cost a total of $46,530. Radio

As radio is a part of traditional media and the second most powerful medium in the United States, it is recommended that it be used for advertising the Apple Watch to it’s primary and secondary audiences’. Our two radio outlets for the Apple Watch campaign are iHeartRadio in Los Angeles and New York and Pandora radio. Both of these platforms have mobile apps, which allow more impressions and viewers. For the radio section, we are planning to run a series of eight advertisements on the two radio stations. The specific information of the media plan will be listed in their section.

Pandora Radio

Pandora radio was our second choice for radio ads due to its extensive reach as well as its multimedia ad capabilities. Pandora has 80 million monthly listeners who can tune in on over 1,700 connected devices and 190 car models. Pandora allows the Apple Watch to be marketed to a cross audience on cross platforms, which allows a better reach, more clicks and in turn, more purchases.

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Even with the emergence of Spotify radio, Pandora continues to keep a strong audience lead over Spotify, which is one of the determining factors of choosing Pandora radio as a media outlet. Figure 13 shows how many listen to the top mass radio stations.

Figure 13.

Pandora serves listeners averaging between the age groups of 18­24 to 35­44 who have a household income of 50­100K. However what separates the Pandora demographic from iHeartRadio is that it caters to non­urban area listeners who want to listen to specific genres of music and not just top radio stations. Although Spotify tends to aim more towards Generation Z, Pandora listeners still have a young audience with a higher income, making it a perfect outlet for Apple Watch to advertise on.

Pandora runs a .15 second ad for $20 per CPM, which we decided to use for the Apple Watch. The ad will run through Feb. 1­15 at 15,000 CPMS, April 4­18 at 10,000 CPMS, May 30­June 13 at 10,000 CPMS and August 1­15 at 10,000. The net cost will come to a total of $200,000.

Pandora’s .15 second ad will be a video similar to the iHeartRadio 30 second ad but shorter. Instead, the Pandora ad will feature a faster run down of the audience’s typical day and how Apple Watch can assist with playing music, tracking fitness and responding to messages and emails. The video will be clickable so if the viewer is stimulated to respond, they can click on the embedded link to purchase or find out more about the product.

iHeartRadio

iHeartRadio is a growing trend amongst over 56 million registered users. The app is available on 46 platforms, including wearables such as the Apple Watch itself, smart TVs, gaming consoles, car dashboards, tablets, and mobile phones. The demographic for iHeartRadio is on target for one of the Apple Watch primary audiences, which are men between the ages of 55­64. The average iHeartRadio audience income ranges from 100­150k with an interest in sports.

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iHeartRadio allows a variety of ads such as banners, audio ads and video ads to be played through their app. The video ad is the best as it averages $90 per 30­second spot and stops the app to display the video on the user’s device. The stations that will get the most listeners, are 102.7 KIIS FM in Los Angeles and Z100 in New York. Both stations are the top listening stations for both cities, which will bring in a large number of impressions and clicks.

The ad will play the following months: January, April, June, July, August, and November. The add will also be featured on both stations three times a day during drive times (6­10 a.m. and again at 3­7 p.m. Eastern and Pacific time). The third ad will take place at noon Eastern and Pacific Time for the lunch crowd and people who work from home. Apple Watch will advertise for six months, which equals to a total price of $97,200. Ads will be spread out across the six months but will be ran consecutively during the summer months when the iHeartRadio festival starts to get hyped up and listeners are wanting information.

The video ads for the Apple Watch on iHeartRadio will emphasis and feature information about the watch’s fitness tracker, music capabilities such as iTunes and iHeartRadio app, the iMessage voice response feature and the email feature. The app will be displayed in a fashionable manner as the person wearing it goes through a typical work day, workout and then lastly in their free time where they check social media all while only lifting their wrist. The ads will appeal to all targets and their specific interests, especially tapping into the music interests since the ad will be on a radio music app.

Digital

The Internet has become a powerful tool that marketers use. People expect that there is a digital presence and if there is not one, they judge the company. They find that they do not trust the company. Another important reason to advertise on digital platforms is because of the potential access that is available. Most individuals in the United State’s have access to the Internet and use it on the daily basis. This form of media is has the most options with advertisements. We suggest that we advertise on Wired.com, Hulu.com, Instagram (video advertisements), and Facebook Ads. We have bought 24 different advertisements that will be played at a different time. For a visual, look at Figure 10. Each section will explain their individual reach and the specifics of the advertisements.

Wired.com Wired is a online and print magazine that reports on all the emerging technologies that

might affect the United State’s cultural, political, or economical factors. Wired was originally just a print magazine. They saw that going digital was going to be an important aspect of their business. So they made the switch to having both print and online editions. This is important because it expands the advertising opportunities for companies like Apple. When a viewer looks at a website they trust, the advertisement is important. Wired is a leading technological source, so advertising on their site could bring them a sense of credibility. Figure 14 shows where the advertisements would be placed on the website.

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Figure 14. This is because people will associate the trusted website to the advertisements. This is an important aspect for the Apple Watch to capture. We are wanting to advertise the following months: January, March, June, August, September, and November.

It is important for Apple to advertise on Wired. According to Wired’s media kit they have 28 million unique visitors, which is up 115% over the past 3 years. They have had 99 million page views, which is up 111% over the past 3 years. Finally the average time spent is 14 minutes. (Wired.com. Online) If Apple wants to advertise at a frequency of six times, this will cost $134,596. The months we have suggested are January, March, June, August, September, and November. This may seem like a significant amount of the budget, but it is important to have the support of Wired’s viewers. These individuals are interested in the future of technology and are most likely to buy wearable technology. They are also more educated to the differences in between different smartwatches. This means that they will have more influence with people who are in the technology industry.

Another reason why it is important for Apple to advertise on Wired’s website is to show off features. In the example picture above, you have banners that make it easy to learn more. The banner could show the five features that we are trying to push; connectivity, fitness tracker, fashion forward, increase in productivity, and time tracker. The banner could change every time it is refreshed to show a new feature. That way it is pulling new interest every time.

Hulu.com

Hulu is one of the major video streaming services in the market. According to Mayer Winkler, “In 2015, estimates put Hulu’s revenues at around $1.5 billion from both its subscribers and advertising models” (Winkler. Online). Winkler also said that Hulu has nine million users. Using Hulu will allow us to advertise in several ways. The first way is by having advertisement videos. Apple will be able to show our five main features, which are connectivity, fitness tracker, fashion forward, increase in productivity, and time tracker. This is important for us to showcase

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the benefits of buying the Apple Watch. Figure 15 shows where the advertisement is on the video.

Figure 15. We suggest that we put advertisements during the following months: January, March, May, July September, and November.

Another way Apple could potentially one day advertise is through product placement. For example, ABC Freeform has a Television show that has an Apple Watch on it. In Pretty Little Liars, Spencer Hastings wears the smartwatch and uses it several times throughout each episode. When Hulu plays this television show, it advertises for the watch. If a commercial of the Apple Watch was shown during an episode, it could influence a consumer to buy the smartwatch.

This report is suggesting buying 30,000 impressions at a frequency of six times in a year for $6,300. This is an affordable amount that would let us engage in video storytelling. It is also a good starting place to understand the effectiveness of this advertising method. If it is successful, we could look at expanding our efforts into similar mediums. These mediums could be YouTube, Amazon Prime, XFinity, or NetFlix. If it is not successful, it will be easy to pull out. Based on our research, this report believes that Apple Watch commercials will be successful.

Instagram Instagram is an increasingly more popular place for ads due to its visual qualities and the

way a visual can be displayed. Instagram was slow to adapt with advertising for business but has launched a full effort to help businesses create effective ads through the platform.

Instagram has over 300 million users who share 60 million photos each day. Due to rapid growth of the social media platform, it is major outlet for reaching a younger demographic. More than half of Instagram users are between the ages of 18­29 with 29% female users and 22% male users. The income is spread pretty evenly as well as the geographic locations of users. Since the audience of Instagram is younger with less income, the ad needs to focus on the fitness, iMessage and music features of the product, which will stimulate the consumer to purchase the watch.

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With Instagram’s large audience, we decided to get 40,000 impressions every other month for six months. The total cost of the expenditure is 7,200, which is a small price to pay for digital storytelling on a trendy social media site. We suggest that we put advertisements the following months: February, April, June, August, October, and December.

Apple Watch will utilize Instagram by creating a carousel ad that features four different pictures that are viewed by swiping left across the images. The ad also includes a learn more button that can be clicked for redirection to the Apple Watch website. The four images will be of the Apple Watch with different bands and different faces all emphasizing product features. The first image will be of a sporty band and show the fitness tracker, the second will show a leather band and the email/messaging feature, the third will be of a fashionable band and the iTunes music app and the last image will be of a classy metal band with an equally classy watch face on it. Figure 16 shows advertisements on Instagram.

Figure 16. Facebook Ad

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As the digital age continues to prosper through social media and sharing, Facebook was an outlet that we decided to utilize in order to increase reach and make impressions within our

target audience. With 1.44 billion monthly active users, Facebook is a leader for social networking sites, which makes it a cheap and effective advertising tool. The average Facebook user ranges from 18­49 years in age and consisting of roughly 10% more women than men.

Facebook’s audience also comes from all different incomes and geographical areas such as rural, urban and suburban.

Facebook ads are controlled through a budget system them gives what the ad creator put s into it. This allows companies to spend as little as $5 on an ad and also allows them to put in a set amount of money into an ad to get real results. Ads are viewed in the formats below. As you can see, they range in size, information and clickable links. For the Apple Watch the middle ad for Jasper’s Market is visual, allows engagement to occur as well as links and information about the product to be included. Figure 17 shows the advertisement placement on Facebook.

Figure 17.

Prices for Facebook ads are based on how many times they’re shown on the platform. For a total of $1,440 we were able to create an ad for Apple Watch that was shown every other month for six months and making an average of 363,640 impressions. We suggest that we put advertisements the following months: February, April, June, August, October, and December.

The Apple Watch ad for Facebook will feature a still of three different banded watches featuring three different unique faces. The watch faces will feature the selling points of the Apple Watch such as the fitness monitor, the iMessage and email features as well as the productivity features on the watch. A link will be provided so that interested consumers can click and be redirected to the Apple Watch website.

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Conclusion

Using the research that has been collected, we are able to determine the elements involved in the advertising campaign to better market the Apple Watch. The primary target market is young professionals because they have the biggest need for the Apple Watch and can use it to its full potential. The different marketing and advertisements were discussed, showing how this affects the target market.

Based on this analysis, the Apple Watch will be successful in the smartwatch market. Through the situational analysis, this report was able to determine the type of market that smartwatches are facing, our as a company as a whole, successes with our product, and better understand Apple’s competitors. Using the SWOT analysis, this report determined the progress the Apple watch has made and documented what progress still needs to be made.

The Apple Watch needs to have a large budget in order to show the prestige of the brand. This budget needs to be able to incorporate our specific media objectives and strategy. The media objectives are the target audience, reach and frequency, coverage geographically, creative implications, promotional support, trade communication, and budget limitations. This is important because it allows us to better understand how the communication process with be affected.The media strategies will discuss deciding a media mix, scheduling, and weighting, reach and frequency. This is important to look at because this is when we actually use our media. Finally we discussed the the media flowchart within the areas of television, print, radio, and digital.

All of these aspects combined will allow the Apple Watch to be a dominant force in the watch market. By displaying all the watch can do, marketing to the appropriate audiences and markets, and creating a strategic plan for advertising and budgeting, the Apple Watch can continue to make progress in the technology market as well as the wearable health tracker market. With all these things into consideration, the Apple Watch will be a successful product.

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Creative Executions

The Apple Watch infographic informs the consumer of the variety of features the watch possesses. The infographic emphasises the Apple Watches five main features which are being able to take calls, messages and emails, the wearable fitness tracker, the interchangeable bands that can be changed for any fashion occasion, the productivity aspects of being able to check stocks, complete to do lists and record personal messages and lastly the watch aspect of Apple Watch being a watch and an alarm for the user. Overall, the ad is brief and simple which allows the viewer to gain quick access on the Apple Watch features and promote a purchase.

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The Apple Watch print ad is a visually and aesthetically pleasing ad that explains the Apple Watch in a catchy way. While keeping Apple’s simplicity, the ad displays 3 watches. One watch is sporty and displays the activity tracker, one watch has a classic metal band that looks business savvy and the last watch looks feminine with a gold Apple Watch sporting a beautiful white leather band. “Never miss a second” is the headline that deals with the seconds of the watch as well as the seconds of life that really matter, conveying the idea that the Apple Watch will keep you up to date on everything. The tagline “Time really does tell all” adds to the headline and emphasises that the Apple Watch can do everything. Below the tagline is a brief description of what exactly the watch does so that the point is really driven home and that the customer is convinced that the Apple Watch is needed to make their life more convenient.

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