The Korean telecom company called KT has published that the major customer of smart phone is men and women in their 20s and 30s who reside in capital area. They have a need to buy new mobile phone when their existing phone is out of order or behind in fashion. Even some Macolytes who's enthusiastic in apple products tend to be dissatisfied at not getting new iPhone. After recognizing problems, they get plenty of information about new mobile phone using their company friends, relatives, internet community and media.
As the amount of smartphone users is increasing, many smartphone companies have been trying to penetrate Korea's smartphone market. Apple's biggest direct competitor is Samsung. While Apple sells only iPhone series, Samsung keeps a rich assortment of goods. Samsung sells cheaper mobile phone directed at teenagers or a bit expensive cellular phone with a lot of functions aimed at adult and CEO. Like this, Samsung will not overwhelm with material superiority but targets segment market. Therefore, customers can make a choice what they need in their price category.
As I mentioned earlier, Samsung sells various varieties of smartphone for different age ranges. The Left targets at teenager and the proper aims at adults. Unlike existing galaxy series smartphone, galaxy pop offers various color and it can satisfy young people's desires and their personality with inexpensive price. A celebrity who is popular with teenagers appears in commercial advertisement, and the ad encourages young customer to buy it. On the other hand, galaxy s4 has the latest and the best performance. Samsung installs a lot of billboards to market the product. The business offers flip cover with low price limited to several days and even gives voucher which can enjoy mobile TV.
Smartphone market Trends with PEST analysis in Korea.
Political Factor - Abolition of WIPI obligation
WIPI (Wireless Internet Platform for Interoperability) is a platform used in South Korea. It really is basic software which is same work as OS found in personal computer. Korean mobile communication companies made their own wireless internet platform in a different ways and a lot of contents manufacturers needed to make same contents in a variety of ways. Therefore it caused unnecessary waste. Government carried out regulation to reduce waste to the very least. However, Apple, Nokia and other companies made their cell phones using their own platform. In order that companies had to change their platform to entry Korean mobile phone market. With these difficulties, many companies are reluctant to penetrate Korean market. Eventually, Korea government abolished the WIPI obligation. After Multinational manufacturer entering Korean market, mobile market became more competitive. Especially, Apple influenced various results for existing apple customer and this affirmative response continued.
Economic Factor - Consumption Promotion
With the smart phone, increasing numbers of people use mobile contents which called application program. In application market, there are several categories so individuals are able to buy what they need. As people are employing smartphone, loads of applications are activated naturally. Even some people develop their own application program and create profits. At the same time, they make a great contribution to mobile contents market. Eventually smartphone is one of the main factor which promotes application consumption and makes mobile market more active.
Social Factor - consumer trend, various age groups
Originally, only teenagers who are able to accept change quickly want to use smartphone. As time goes on, however, various age people started to use smartphone. Initially, they are not sure of using smartphone and application, but now many people get accustomed to utilizing their smartphone. Another factor is consumer trend. Many people need to get plenty of information instantly. Even in public transportations like metro or bus, consumer search latest information. Customers want to get a lot of information as soon as possible.
Technology Factor - Camera, GPS,
People consider Camera as essential aspect in smartphone. They don't have to transport their own camera when they would like to take pictures plus they can just take pictures with high pixel camera in smartphone. With GPS, consumer can know where they are actually and how to go to their destination. Consumers are no longer afraid to getting lost due to GPS.
Figure Apple organization structure.
Apple organization is so simple and not conventional. It is vastly not the same as other companies' organization chart. Initially, Apple does not have committee and organization management. The business only has CFO which controls profit and loss. The majority of companies have a tendency to regard profit and loss as ultimate result of management responsibility however, in Apple, only CFO pays focus on their profit and loss. As a result, personnel can share their ideas with bottom up not top down.
Figure Apple ranked as World's most effective brand
Apple's strengths are shops, customer service, leading innovator and financial reports,
First of all, Apple opened own shops all over the world. It is estimated that about 280 stores in 10 countries. The majority of shops are successful because consumers have an opportunity to learn and use about the merchandise to get. Second, Apple is well known for good customer support. Apple houses many sales representatives who are trained customer service and information. Apple also offers free online chat function and replies the answer to consumers' inquiry.
The Third strength is leading innovator. Apple is regarded as most ground breaking company. The business can produce impressive products and its' innovation affects another mobile company. Final strength is financial reports. The financial performance of apple is preferable to many companies. It has high gross profit percentage.
Apple offers various applications and service through iTunes and app store. That is main positioning of apple and that's why the company's main consumers are in their 20s and 30s who've strong purchasing power.
Figure Past iPhone campaign history
The iphone3 campaign is simple. Apple just emphasizes price and speed. Actually many people thought that there surely is no huge difference between iPhone3 and iPod. But after releasing iPhone 4 4, the campaign is completely different. Apple introduced new function which called face-time. iPhone4 users could call their family or friends with face to face. The most important factor that apple emphasizes about iPhone 4s is Siri. Consumers can order action using their voice and the product takes an action. Such as this, days gone by iPhone campaign is quite impressive but it is not useful in true to life. For example, Siri is not offered on the Korean iPhone therefore it is hard to utilize Siri for Korean consumer. Another failure is face time. Because lots of Korean mobile phones have already offered video call, Korean didn't believe that it is special. Therefore considering this failure, the main iPhone 5 campaign slogan is "Innovative but Practical"
iPhone 5 communications objectives.
Make iphone5 faster than before.
Add the capability to watch TV in everywhere.
Extend the battery life
Make up for yellow gate and camera.
The existing market is men aged 18-35 but now it might be changed. The main iPhone 5 target audiences are in their early 20s and mid-30s. These groups of folks have strong purchasing power and they are extremely sensitive to the changes. The reason that I exclude teenagers from target audiences is they have a tendency to buy their cellular phone based on the situation and they haven't any income so it is hard to make sure they are as long-term customers.
Many people including existing users were dissatisfied at the short battery life. Showing the key problem-solving, Apple persuade consumer to choose the product. That is helpful to leave positive images which Apple is wanting to talk to consumer. Consumer in their 20s and 30s are extremely sensitive to the latest trends and sometimes they feel depressed when they cannot have latest product. People need it not only products but also the brands' name. Apple has to understand the type of target audiences, and make sure they are feel. superior.
Media - broadcast, print, outdoor, in store
Blogs - upload information about new iPhone and draw intention.
Broadcast - emphasize the iPhone 5 speed.
Print - Print new slogan
Press release - updates every month
Video news - Make iPhone channel at Youtube and upload regularly
Email - Send emails to all apple consumers with introduction of iPhone 5
Trained sales rep provides information and spend time with new customers.
Create long relationships between seller and buyer
Persuade to acquire new product
Discounting price - Offer low price to student and existing users who bring their iPhone series.
Samples - Retail stores allow consumers to try the iPhone5
Voucher - When customers buy iPhone 5, Apple give voucher
Suggestions for relevant media
Social Network Media
According to the research graph, increasingly more Korean people are receiving use their own social network. With using social network, the company can attract a lot of social network users.
For example, on Facebook, most of users' age is from 18 to 35 which is our main market. So If the business target on SOCIAL NETWORKING such as facebook, twitter etc, the business can attract a lot of main target consumer. Customers will be interested in new iPhone, plus they could express their own view on Social networking. The best advantage making use of this media is the business can talk to the consumers and advertise effectively with a small charge.
TV commercial advertisement.
The TV commercial is the simplest way for customers to get new information about iPhone. During for only 2-30 seconds, the commercial could influence on customers. Nowadays, it becomes increasingly more important to choose advertising background music. With using TV ad music, it also can emphasize the product's various advantages. TV commercial advertising expenditure is priciest than other advertisement, but it is one of effective methods to inform the public.
Emphasize the better battery and offer lightweight chargers.
Many Korean people think that the most disadvantage of iPhone is the battery. Unlike other competitors, iPhone has a built-in battery. Therefore the company has to extend the battery life, and emphasize the major improvement. And the company will offer free portable chargers for consumer during specific period. Apple sticks to make iPhone with built-in battery. Instead of making lightweight battery, offering lightweight chargers could be differentiation strategy looked after conserves iPhone's unique design. Like this, if the battery life is longer, lots of customers would meet the new iPhone and they will also suggest their friends or family.
Advertising with new function
The new function of iPhone is DMB(Digital Multimedia Broadcasting). WHEN I target at Korean mobile market, launching iPhone with DMB could draw consumers' interest. In Korea, during commuting hours, lots of workers have a tendency to spend their time with watching TV in metro or buses. Previously, because Apple didn't add this features, many Korean apple users used to experience discomfort. Combining with 4:3 screen ratios and Apple's Retina Display, the company would provide target audience with superior images.
In summary, new slogan of iPhone is practical and unique. I am going to adhere to existing unique design and make up for shortcomings. The primary objectives of iPhone 5 marketing is to emphasize the better battery life, new DMB functions and higher speed than before. To focus on main audience, I am going to advertise on SOCIAL MEDIA MARKETING and TV commercial advertisement in priority. With this advertising, the company can attract major consumers. I also want to stretch more budgets for advertising and sales promotions than before. With promoting consumers about the extended battery life, the company can provide free portable battery charges as sales promotions. Using this promotional tool appropriately, the business would be successful on iPhone5.
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