integrated marketing communication
TRANSCRIPT
INTEGRATED MARKETING
COMMUNICATIONS
PROJECT –Apple Watch
SUBMITTED TO
Prof. Sunil Sangra
SUBMITTED BY
Ayush Manan Vishwakarma(13DM049)
Sumit Rekhi(13DM195)
Surinder Singh(13DM197)
Tushar Mittal(13DM204)
Udit Jain(13DM205)
Camille Jouannest(13EMPDM045)
Coraline Fevrier (13EMPDM046)
Contents
INDUSTRY ANALYSIS ................................................................................................................................ 3
Our Product: Apple Watch .................................................................................................................. 4
CONSUMER ANALYSIS ............................................................................................................................. 4
COMPETITORS ANALYSIS ........................................................................................................................ 5
SEGMENTATION, TARGETING AND POSITIONING .................................................................................. 6
Segmentation ...................................................................................................................................... 6
Targeting ............................................................................................................................................. 8
Positioning .......................................................................................................................................... 8
COMMUNICATION OBJECTIVES .............................................................................................................. 8
Main Objective .................................................................................................................................... 8
Integrated marketing communication channels ................................................................................. 9
Phases of Product Launch ................................................................................................................... 9
CHANNELS OF MARKETING AND PROMOTION..................................................................................... 10
Advertising ........................................................................................................................................ 10
Public Relations ................................................................................................................................. 11
Sales Promotion ................................................................................................................................ 11
Cause Marketing ............................................................................................................................... 12
INTEGRATED MARKETING COMMUNICATION BUDGET ....................................................................... 12
REFERENCES .......................................................................................................................................... 13
INDUSTRY ANALYSIS A smart watch is a wrist-worn wearable
device, and provides functionalities far
beyond those of a traditional wristwatch.
They are usually used as a companion
device and need to be paired with a smart
phone through Bluetooth and near-field
communication (NFC) among other
technologies. The global market was
estimated to be valued at USD 702.5 million
in 2013, with shipments in the same year
amounting to a little over 2 million units. A
well-designed smart watch can be used as
an extension to a smart phone or related device; additionally, since the focus is on apps, the high
degree of connectivity provided proves useful to end users. Smart watches are particularly useful for
health-conscious users aiming for fitness tracking and health related purposes. Global smart phone
shipments are expected to continue increasing over the next six years, giving impetus to the smart
watches market. While there are numerous features announced in smart watch releases, fitness
remains the focal point of development. For example, in 2014, Google announced its new smart
watch, which is targeted at delivering real-time speed, time and distance information when the user
is on a walk or run. Android has been dominating the industry in terms of operating system used,
primarily due to sales of Samsung’s smart watches. Google also announced Android Wear, an
operating system designed for wearable devices, and is working with companies including Motorola,
LG, Samsung, HTC and Asus among others. Other operating systems include Pebble OS, which is a
Free RTOS used by U.S. based Pebble.
India Smartphone market has
experienced a phenomenal growth in
the last few quarters. Rising demand for
Smart phones over the traditional bar
phones has fuelled the growth of Smart
Wearable devices (Smart watch and
Smart band) market in India. India Smart Wearable market shipments value reached over $3 million
during CY H1 2014. Samsung continues to dominate the Indian market followed by Sony. Samsung
leadership in the Indian Smartwatch market is a result of its highly demanded Galaxy Gear series.
Higher purchasing power and awareness among users is expected to drive the regional industry over
the next few years. Health and fitness are expected to remain the key smart watch applications
through the forecast period, which can be attributed to the increasing percentage of health-
conscious consumers that need real-time tracking and feedback of their daily activities. India
Smartwatch market which was primarily driven by Samsung and Sony is expected to be more
competitive with the entry of several other players such as Apple, Motorola and Pebble over the
coming quarters.
At present, India Smart Wearable market is at a growing stage. High procurement cost of Smart
Wearable devices remains a major hurdle and have slowed the adaptability of these devices among
the Indian consumers. To sustain in the competitive market, the OEMs have to improvise their
product portfolio keeping in mind the changing demand of Indian consumers.
Our Product: Apple Watch
The Apple Watch (marketed with a stylized Apple symbol and in uppercase as WATCH) is a smart
watch created by Apple Inc., announced by Tim Cook on September 9, 2014. It has activity tracking
capabilities similar to other wearable technologies, such as Jawbone Up, Nike+ Fuel Band and Fitbit.
The Apple Watch is compatible with the iPhone 5 and later models running iOS 8. It is scheduled to
be released in early 2015.
The Apple Watch is capable of receiving phone calls as well as iMessage and SMS Texts. The Apple
Watch can track fitness, run third-party apps and use an Apple feature called "Handoff" (see iOS 8)
as long as you own another Apple device. It can control the Apple TV, as well as act as a walkie-
talkie and a viewfinder for an iPhone camera.
The watch has three collections, featuring two sizes (38 mm and 42 mm) spread across 34 individual
models. It has a pressure-sensitive touch screen that can distinguish between a tap and a press, and
features a dial called a digital crown, which can be turned to scroll or zoom and pressed to return to
the home screen. The watch also has a button for displaying a list of contacts.
The watch is charged by means of inductive charging, using a cable similar to the MagSafe cable for
Apple's Mac Book family of laptops.
CONSUMER ANALYSIS Demographics: Age- The expected age of the targeted customers lies between 14- 45 years, among
which the main target segment is 18- 35 years.
Occupation: The expected occupation of our customer will consist of Business, service, Graduates &
Post Graduates, Athletes and High School going students.
Buying Behaviour:
1. Problem Recognition: There can be several reasons for purchasing our product, but the
major ones covers convenience (as smart phone size is increasing and usage is difficult),
health and fitness issues and monitoring any other person.
2. Information search: There are three media of information search, online (search engines,
company websites, review websites, social media), Offline (newspaper, magazines, outlets)
and word of mouth (family and friends).
3. Evaluation of alternatives: There are different evaluation criteria for selecting a product
i. Compatibility with smart phone
ii. Brand
iii. Price
iv. Features
v. Specifications
4. Purchase Decision: The purchase decision of the customer refers to the purchase medium,
payment option he/ she chose and the mode of payment used by him/ her.
Payment options
Installments Full-
Payment
Purchase From
Online
E- Commerce Websites
Company owned
Offline
Multi Brand Retail
Organized Retail
Unorganized Retail
Company ownedMode of
payment
Electronic
Credit/Debit card
Net Banking
E- Wallet
Cash Cash on delivery
Cash in hand
Cheque
Competitors
Smart Watches
Cookoo
Pebble Steel
Martian G2G
LG Life Band
Casio G shock
Traditional Watches
Price-$132,Compatible with all products of Apple, Features -Incoming
Calls, Messages, Camera, Social Media Integration
Price-$249,Compatible with all Apple products, Features-Corning Glass,
Official App Store, Social Media
Price: US$249 Compatible with iOS and Android, Features- Voice-
control, speech to text, direct interaction with Siri
Price: US$179 Compatible with iOS and Android, Features- Primarily
focussed on health conscious people, OLED display, and water proof
Price: US$180 compatible with select iPhone models, ruggedness of G-
shock series,
5. Post Purchase:
I. After Sales Service
II. Reviews on online portals, websites and social media
III. Word of mouth
COMPETITORS ANALYSIS
SEGMENTATION, TARGETING AND POSITIONING
Segmentation Segmentation of a market for product placement focuses on dividing total customers on the bases of
different aspects, which includes demographics, psychographics and other user related factors.
The Demographics covers age, Gender, occupation, income and education. This is the primary factor
of segmentation of the customer base and is used most widely. The other segmentation criteria
which covers the aspiration of the customer base and their purchasing ability to fulfil their
aspirations, is psychographic segmentation.
The third type of segmentation is simply user related. Here the segmentation is done on the bases of
previous customers, who have already used one or more products from the company.
The tabular description of the three criteria of segmentation is given below
SEGMENTATON
DEMOGRAPHICS
AGE
OCCUPATION
INCOME
EDUCATION
GENDER
PSYCHOGRAPHICS
SOCIAL CLASS
LIFESTYLE
USER RELATED
NON APPLE USERS
APPLE USERS
14-18, 18-25, 25-35, 35-45
Entreprenuers,selfemployed & officers/executi
ves
Lower, Lower Middle,
Middle, Upper Middle, Upper
Secondary schooling,
Graduates & Post Graduates
Male & Female
Social Grade: A, B, C1, C2 D,
E
Resigned, Struggler,
Mainstreamer, Aspirer,
Succeeder, Explorer, Reformer
57.38 MILLION
4.854 MILLION
Social Class segmentation divides the population into groups based on the occupation of the 'Chief
Income Earner' (CIE).
Lifestyle segmentation involves classifying people according to their values, beliefs, opinions, and
interests. One example of a life style classification model, is that developed by the advertising
agency, Young & Rubicam, called Cross Cultural Consumer Characterization
Targeting
From the demographic segmentation criteria, Our target market will have be a male of age
18-35, having Graduation or Post-Graduation education qualification working as Officer or
Executive in any company or working as an entrepreneur, earning income in upper middle
and upper class.
According to the psychographic segmentation, the target customer lies in social class of A &
B and lifestyle segment of aspirer, succeeded, explorer and reformer.
From the perspective of user related segmentation, the target customer will be simply one
who is using apple products.
Thus from all the three different approaches, the target segment is defined as
Age 18-35 years
Gender Male
Education Post-Graduation & Graduation
Occupation Officers/Executives & Entrepreneurs
Income class Upper middle and middle class
Social Class Class A and B
Lifestyle Reformer, Explorer, Succeeded and Aspirer
Product user Apple user
Positioning We know you are too busy with your life, save some time for yourself by wearing a time saver watch,
which not only makes your work easier but also monitors your daily activity while you are busy doing
your work. It is not a smart watch; rather it is an intelligent one to understand your needs. Save your
time by using intelligent apple watch.
“An elegant artistically technology saving your time who takes care of you, not only your work”
The attributes positioned constitutes of young, elegant, vibrant, saving time, caring, companion,
technology.
COMMUNICATION OBJECTIVES
Main Objective
To create awareness about the functionality of Apple Watch, to increase usability by
changing the perception of customers towards the product and to show how it can be
seamlessly integrate with other Apple Products.
Integrated marketing communication channels
Phases of Product Launch
Expected launch date of Apple Watch in U.S – February 14, 2015
Expected launch date of Apple Watch in India – 1st week of April, 2015
Pre-launch
Timeline: Pre-Launch timeframe for promotion in India –1 month (March, 2015)
Objective: To increase the product awareness of this product and change the perception of
target customers towards this product.
Launch
Timeline: Lunch period will be 1st April to 10th April
Objective: To increase the visibility of the product and increase the usability by using sales
promotion.
Post Launch
Timeline: After 10th April
Objective: To increase the sales of the product by using brand image and reviews of current
users.
Advertising
Objective: To spread awareness about the new smartwatch and creating hype before launching the product.
Public Relations
Objective: To create a good image of the product in customers minds by reviews of media
Sales Promotion
Objective: To increase the sales of the product by using brand image and reviews of current users.
Cause Marketing
Objective: To increase the usability of the product by providing areas of use for target market
CHANNELS OF MARKETING AND PROMOTION
Every channel adds to fulfil the overall objective of marketing of the product and there are
four channels used to fulfil the objective.
Advertising
Advertising
TV
News ChannelsNDTV 24X7, CNN
IBM
Entertainment channels
MTV, [V]
Sports Channels ESPN, StartSports
Family ChannelsColours, Start plus
,Sony
Newapapers
Business (ET, BS, FT ,BL)
General (TOI, Hindu, HT)
Magazines Forbes, HBR, Time
Digital
Search EngineGoogle, Yahoo,
Bing
Youtube
E-CommerceFlipkart, Amazon,
Snapdeal
Review Websites Cnet, Gsmarena
Socail Networking Websites
Facebook, Istagram, Linkedin
Public Relations
Sales Promotion
Public Relations
Review Tv Shows
Gadget Guru
Cell Guru
PrintNewapapers
Review Page + Articles
MagazinesDigit (Review
Page+ Articles)
Review Webiste
GSM arena
Cnet.com
Sales Promotion
Loyalty Bonus
Free Strap
Kiosk
Stores
Retail outlets
Airports
Cause Marketing
INTEGRATED MARKETING COMMUNICATION BUDGET
Every phase has its separate budget, which focuses on meeting the desired objectives of
each phase, which are, pre-launch, launch and post launch.
Marketing
Budget.xlsx
Cause Marketing/Events
Marathons Traibility
Sports eventsCricket Matches
Awarness/Cause events
REFERENCES
http://cks.in/wp-content/uploads/2012/10/04_Consumer-Segmentation.pdf
http://www.webenza.com/android-vs-ios-smartphone-users-in-india-2014-infograph
http://www.ukessays.com/essays/marketing/market-segmentation-of-apple-iphone-4s-
marketing-essay.php
http://www.examstutor.com/business/resources/studyroom/marketing/market_analysis/8_
psychographic_segmentation.php
http://www.cmu.edu/weekend-today/previous/2008-india-today/indian-consumer-ppt.pdf