Strategic Marketing Plan for(iPhone 4 in London) Essay

Strategic Marketing Plan for(iPhone 4 in London) - Essay Example Based on its established brand equity, Apple Corporation has the opportunity to skim the market with high prices in the UK market. However, once the upper class market has been catered, iPhone 4 can head for the mass market with low prices. This will expand iPhone 4’s life cycle over a longer period of time till the product itself matures. This report contains a detailed analysis of all the marketing and operational aspects of launching Apple Corporation’s iPhone 4 in the UK markets. 1. Resource Analysis The tangible resources available for the introduction of smart phone include the production facilities of the company which already exist. Apple Corporation’s main strength is its ability to develop hardware and software systems which it has developed through extensive Research and Development (Apple.Inc). The quality, method and organization of the current production process are already available. The production requirements can be met by existing state-of-the-a rt facilities. The marketing management process remains the same and the same distribution channels though which our competitors sell their smart phones, will be used. The IT systems are already developed which makes it easy to integrate with our customers and suppliers. The intangible assets available include our Goodwill in the market. The reputation of delivering the objects on time is also important. The key commercial rights protected by patents and trademark will work as an asset for our company. However, introducing this new smart phone will increase our labor cost by ?10 per person as more workers will be needed. The R&D department will need more labor therefore it will be increased by 500 men working at the rate of ?10 per hour and there will be 30 more employees for managerial work. As the existing production facilities will be used, there is no need of extra physical capacity. However, to improve and modify our facilities, a financial injection of ?500,000 will be needed which we will raise through debts as raising through equity will increase our interest expense. (Deutschman; Useem). 2. SWOT Analysis (Apple) Strengths (ReportLinker.com; iphoners.com) Apple stands on a strong foundation of Innovation through which it will introduce iPhone 4 with unique positioning. Apple’s phones are meant to be user friendly and with this ease of use, the company differentiates itself from the competitors who produce more complex versions of PDAs. iPhone 4 would be a competitive product and will be launched in the market with competitive prices through its competitive advantage of cheap raw material availability. The brand itself has long been established and therefore, the market will be highly receptive to new brand extensions. Weaknesses (ReportLinker.com; iphoners.com) Touch screen phone usage causes a medical condition called Gorilla Arm, which is caused when one holds his/her hand at waist length and continuous usage of touch screen phones may cause s uch problems. The consumers may therefore feel discomfort while using touch phones. Opportunities (ReportLinker.com; iphoners.com) Smart phones have a growing consumer base which is a good sign for Apple’s business as the new iPhone 4 can anticipate higher turnover rate. All the other brands such as Nokia, Samsung and especially Blackberry are positioned towards the corporate sector. iPhone 4 will be targeted towards a different and a larger market which can be