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BNG PHN CNG NHIM V

Stt H v Tn MSSV Nhim v

1 Nguyn Th Hng K094020144Composing the chapter 1 and preamble

2 Nguyn Th Thanh Ngc K094050867

3 Trn Duy Thi K094051052

Composing the chapter 24 L Anh Vi K094020249

5 L Th Bch LyK094020179

6 Hong Th Thu Huyn K094020160

Composing the chapter 37 Ng Tr Tng K094050890

8 L Nguyn Kiu Trinh K094020241

9 Chu nh Ngc Hiu K094020150

Composing the assessment,recommendation and conclusion,completing the word file

10 T Th Ngc Qu K094020342

11 Phm Th Trang K094020236


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PREAMBLE............................................................................................ 4

Chapter 1: INTRODUCTION................................................................ 5

1.1.Brief introduction of Apple Inc ........................................................... 5

1.2.The iPhone .......................................................................................... 6

1.3.Profit from iPhone............................................................................... 7

Chapter 2: SWOT ANALYSIS .............................................................. 8

2.1.Strengths ............................................................................................. 8

2.2.Weaknesses ....................................................................................... 10

2.3.Oppotunities ................................................................. .................... 11

2.4.Threats ......................................................................... .................... 12

Chapter 3: MARKETING STRATEGY ....................... .................... 14

3.1.Marketing Research ..................................................... .................... 15

3.2.Segmentation. .............................................................. .................... 15

3.3.Target Markets. ............................................................ .................... 17

3.4.Positioning the brand.................................................... .................... 18

3.5.Producing the brand. .................................................... .................... 19

3.6.Price ............................................................................. .................... 22

3.7.Promotion. ................................................................... .................... 25

3.8.Place ............................................................................ .................... 28

3.9.Post purchasing. ........................................................... .................... 30

Chapter 4: ASSESSMENT AND RECOMMENDATION ................. 30

4.1.Assessment .................................................................. .................... 30

4.2.Recommendation ......................................................... .................... 32

CONCLUSION ................................................................ .................... 33

REFERENCE SOURCE ................................................. .................... 35


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PREAMBLE

Marketing plays a key role for existing and development of products. Today, atrader does not deny the central role of marketing in the company.

Marketing has many different directions that research subjects to focus on marketing

principles microscopic fields of marketing and profit. For those interested in this

subject and to analyze the role of marketing a new product, group 3 we are pleased to

introduce and present activities iPhone Product Marketing. This is a product of new

technology and the success of Apple company, initially for the introduction of next

generation smart phones in the world. This product in Vietnam had "rain, as the

wind" on the mobile phone market with long rows of people waiting to buy. The study

and analysis of the group will show that Apples and its distributors have made very

useful marketing plan to create iPhone fever in Vietnam in the past year.

In this understanding, the group has inherited many research results of many

members and organizations as well as individual contributions and supplements.

The group would like to thank the individuals and organizations that all materials

used in this understanding. Especially we would like to thank Ms. Nguyen Thi Mai

Trang has directly give us the knowledge of Marketing and guide the implementation

of this subject group.

In the learning process, although the group tried hard, we cant avoid these

shortcomings. Expect and appreciate her glasses and your comments, review all the

shortcomings to learn to be more complete.

Ho Chi Minh City, in May, 2011


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Chapter I. INTRODUCTION

1.1. Brief introduction of Apple Inc.

Apple Inc. (NASDAQ: AAPL, NYSE: AAPL;

previously Apple Computer, Inc.) is an American

multinational corporation that designs and markets

consumer electronics, computer software, and

personal computers. The companys best-known

hardware products include the Macintosh line of

computers, the iPod, the iPhone and the iPad.

As of August 2010, the company operates 301 retail stores in 10 countries, and

an online store where hardware and software products are sold. As of May 2010,

Apple is one of the largest companies in the world and the most valuable technology

company in the world, having surpassed Microsoft Corporation.

Established on April 1, 1976 in Cupertino, California, and incorporated January

3, 1977, the company was previously named Apple Computer, Inc., for its first 30

years, but removed the word "Computer" on January 9, 2007, to reflect the company's

ongoing expansion into the consumer electronics

market in addition to its traditional focus on

personal computers. As of September 2010, Apple

had 46,600 full time employees and 2,800

temporary full time employees worldwide and had

worldwide annual sales of $65.23 billion.

For reasons as various as its philosophy of

comprehensive AESTHETIC design to its


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distinctive advertising campaigns, Apple has established a unique reputation in the

consumer electronics industry. This includes a customer base that is devoted to the

company and its brand, particularly in the United States. Fortune magazine named

Apple the most admired company in the United States in 2008, and in the world in

2008, 2009, and 2010. The company has also received widespread criticism for its

contractors' labor, environmental, and business practices.

1.2.The iPhone.The iPhone is a line of Internet and multimedia-enabled smart phones designed

and marketed by Apple Inc. The first iPhone was unveiled by Apple CEO Steve

Jobs on January 9, 2007and was released on June 29, 2007.

An iPhone can function as a video camera, a camera phone with text

messaging and visual voicemail, a portable media player, and an Internet client with e-

mail and web browsing capabilities, and both Wi-Fi and 3G connectivity. The user

interface is built around the device's multi touch screen, including a virtual keyboard

rather than a physical one. Third-party as well as Apple application software is

available from the App Store, which launched in

mid-2008 and now has over 350,000 "apps"

(=application: ng dng) approved by Apple.

These apps have diverse functionalities,

including games, reference, GPS navigation,

social networking, security and advertising for

television shows, films and celebrities.

There are four generations of iPhone models, and they were accompanied by

four major releases of iOS (formerly iPhone OS). The original iPhone was a GSM

phone that established design precedents like screen size and button placement that

have persisted through all models. The iPhone 3G added 3G cellular network

capabilities and A-GPS location. The iPhone 3GS added a compass, faster processor,


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and higher resolution camera, including video. The iPhone 4 has two cameras

for FaceTimevideo calling and a higher-resolution display; it was released on June 24,

2010. In the U.S., AT&T was the only authorized carrier until February 10, 2011,

when a CDMA version of the iPhone 4 launched for Verizon.

1.3. Profit from iPhone.

Thanks in part to the increasing momentum of the iPhone, Apple has bested

Wall Street's predictions again, this time for its second quarter 2010 earnings.

The currently available iPhone models saw increased sales in every geographic

region for Apple for the quarter, helped in part by adding eight new carriers to reach a

total of 151 worldwide. Including hardware, accessories, and payments from carriers,

Apple made $5.3 billion off of its smartphone.

Growth of the iPhone in Asia Pacific and China (including Hong Kong and

Taiwan) was "staggering" to Apple, according to Cook. Asia Pacific was up 474

percent, Japan 183 percent, Europe 133 percent. But China is a relatively new market

for Apple, and Cook said revenue from the region for the past six months was $1.3

billion, a increase of 200 percent.

Apple sounds eager to capitalize on the iPhone's growing popularity in China.It's planning two new stores for Shanghai this summer, and a total of 25 for the greater

China region by the end of fiscal year 2011, according to Oppenheimer.

Apple guided typically conservatively for the next quarter, saying it expects

third-quarter 2010 revenues to be between $13 billion and $13.4 billion, and earnings

per share between $2.28 and $2.39.

Some additional numbers: iTunes Store sales for the quarter hit $1.1 billion. Apple retail stores pulled in $1.68 billion, or about $5.9 million per store.

(There were 284 stores open during the second quarter.) Those stores sold 606,000

Macs, and half of those were to new Mac users, according to Oppenheimer.


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47 million people filed through the doors of Apple Stores worldwide, which is20 percent better than the same quarter a year ago.

The company continues to add to its pile of cash: It now has $41.7 billion,adding $1.9 billion since the end of the first quarter of 2010.

Apple shares were up 5.68 percent to $258.49 in after-hours trading on the news.


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Chapter 2: SWOT ANALYSIS

2.1. STRENGTHS

One of the leaders in mobile industry

The fact that the company is first to deliver in this arena of computer phones is

one of its greatest strengths.

Integration

Complete chain - 1 device, 2 current models (16 or 8GB), the hardware, the OS,

the App Store, the iTunes integration, the potential integration in Leopard and Snow

Leopard.

Innovative

The iPhone has an innovative touch screen that is patented and unmatched by

any other mobile product today. It also has many functions of other mobile products

all in one device.

Compatibility (tnh tch hp)

The phone will work with iTunes and with other Mac/Apple products like the

new Apple TV, allowing for wireless connectivity to the big screen. The iPhone is

also compatible with many Mac OS software tools. Mac OS compatibility means that

the iPhone has limitless potential for upgradeability.

Ease-of-Use (n of easy)

The all-new touch screen interface making operations are extremely intuitive. It

is radically different from those of other phones or PDAs that recognizes multi fingergestures, just as the human hand normally behaves. The Mac OS X application

imbedded into the iPhone assures users will easily recognize what they can do.

Brand awareness


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Apple is well known for cool essential gadgets (my ci tin, dng) like the

iPods along great technological innovations like the original Macintosh.

Price

At $500, the iPhone would be sold at a reasonable price for its value. It

outperforms any other PDA or smart phone on the market and the convenience of

having multiple features combined into one-device increases its overall value.

Quality

The iPhone has one of the brightest and most scratch (hn tp, linh tinh) resistant

screens in the market. It also has a fine metallic finish that is durable and light. The

software suite included is also unsurpassed with their ease of use and resistance tocomputer viruses.

Attractive designs

The iPhone mainly distinguishes itself from competitors over its user interface

which is driven by a multi-touch screen. Apple claims various patents relating to this

technology

There are two major complements to the iPhone: cellular phone service andwireless Internet access. Phone service is currently entirely provided by Cingular,

wireless Internet is provided through a Cingular data plan when no other/free wi-fi is

available.

2.2. WEAKNESSES

Bad battery

Iphone is the only one which has no replaceable battery on the market now. So ifyou get troubles with battery, there is the only way that you send it to apple.

Too sensitive touch screen


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This feature also causes many problems for user. Today, some manufacturers tend

to produce mobile phones that have handier keypad. In contrast, Iphone provides only a

big too sensitive touch screen meanwhile its competitors have both, for example Nokia

N97 Moreover, iphone doesnt accept signals caused by nails but 35% customers of

iphone in Viet Nam are female. So a large number of ladies have to cut it to use iphone.

No radio

Its really inconvenient because many people listen to the radio todays. It is an easy

and fast way to get information for busy business men. But iphone has no radio. Its is

one of iphone limitations that makes customers consider another product.

IPhone 4 price version 16 and 32 GB are 200$ and 300$, with a two-year contractwith AT&T. Because of many limitations and rules in App Store such as no porn, no

copyright infringement of Apple customers have to pay from 600$ to 800$ for an

international version, if they dont want to be restricted. This price makes iphone is one

of the most expensive smartphones.

Easy-to-broken screen

According to Cnet, iphone 4 screen gets dust and fingerprints easily. Beside,

iFixyouri warns the screen may break if it falls from 1 mettre high.

2.3. OPPORTUNITIES

Vietnam is more likely to have relatively greater political stability. Would be

advisable (thch hp, khn ngoan) to form good relations with the local government and

negotiate favorable terms with them.

Currently, mobile phones are in the process to exempt from import tax to 0%, so

compared to many other items is a huge incentive for commodities which are now ingreat demand in society.

High growth rate of the low-end market.(Vietnam is a developing economy. In 2010,

Vietnam economy grew 6.78%)


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High level of GDP growth (As of 2010, GDP per capita in vietnam has reached

about $ 1,170 per year)

High demand for personal mobile-related products

20% of Vietnam population is aged 15 and 24, and half of young people already use

mobile services.( Source : Nielsen company )

Infrastructure (an important factor) in Vietnam is adequate. Road, and rail

infrastructure is well-developed. There are also 17 civil airports operating in Vietnam.

The rapid increase of number of distributors by Viettel and other mobile phone

service companies such as Vinaphone and Mobiphone.

According to GSO, the total number of Internet users in Vietnam by the end of May

11-2010 was 27.3 million, accounting for approximately 31.7% of the population ofVietnam. So after 13 years after Vietnam Internet global peace (1-12-1997), the number

of Internet users in the country has increased rapidly.

Vietnam is also one of the mobile phone market is the fastest growing in the world.

According to the General Statistics office, the number of telephone subscribers

nationwide as of last month 3 / 2011 reached about 174.1 million, up 28.2% over the

same period last year.

2.4. THREATS.

Many similar or substitute products.


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LG KE850 Nokia Aeon Concept Phone Samsung F700 ultra slim phone

Neonode N2 TouchScreen Neo1973 Asus Aura Concept Phone

LG KE850 Nokia Aeon Concept Phone

Samsung F700

Source:http://mobithinking.com/stats-corner/global-mobile-statistics-2011-all-quality-mobile-marketing-research-mobile-web-stats-su#smartphone-shipments

New powerful entrant-Google.

Google has reentered the phone production market with the Nexus One and Nexus

S, the first phone to launch with Android 2.3 Gingerbread, the latest version of


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Google's mobile operating system. With many special features, Google nexus is a big

threat to iPhones development.

Besides, when Apple enters in a new market like Viet Nam.They have some

difficulties:

Vietnam is a Single Party Communist State. There is more likely to be higher

government control and less autonomy (quyn t tr, khu t tr) for the organization

wanting to enter the Vietnamese market.

Now, inflation in Vietnam has risen to nearly 14% in 3 / 2011 (Reuters) and

Mobile phones are one of the items of import restrictions.

(Notice No. 197/TB-BCT, 1380/QD-BCT, 4388/BTC-CST)

Vietnam is a country with average income. To cater for the largest demographic,

it is best to use a price leadership strategy rather than rely on product differentiation.

Sell a cheaper, and more basic product or service, rather than offer a premium quality

or novelty product. In 2010, Vietnam phone market appear more high-tech device

such as Windows Phone 7, Samsung Wave S8500, Motorola XT720, Nokia N8, Sony

Ericsson XPERIA X10, BlackBerry 9800


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Chapter 3: Marketing Strategy. (9P)

3.1 Marketing Research. Probing the market

Before iPhone hadnt officially launched in Vietnam market, some researchshowed that this is a potential market, especially to young people.

Apple uses a large variety of consumer research in order to further improve the

iPhone as the market changes. Staying close to the end user and listening to the

customer will be paramount to our success. Through the use of focus groups, feedback

from consumer surveys and brand awareness studies to insure they know of the

iPhone is view by the world. Targeting segments will be important in order to extend

the siphoned reach to business and a broader professional base. Four age groups will

be targeted: 15-20 years, 20-25 years, 25-45 years, and 45 years and up. These groups

will give an expansive view of the study groups to include middle and upper income

individuals. High School and College aged people will demonstrate social uses. The

25-45 years group will be used to determine business application and social/personal

use, and finally the 45 years and above will give us a plan to market to more senior

well-refined group.

This research has been done through surveys (via email campaign through portals

such as, iTunes and other on-line application developed for the siphoned) and

interviews (in Apples stores) with the same age groups listed above. The surveys will

target to not only to current Apples customers but also consumers not currently using

their products. It is important to weed out members who have a bias view to insure

non-prejudice data. In order to bring the siphoned to the front of the business world it

is important to research different ways to grow the 15-25 year old group into businessuses of the product. Brand awareness will be an important tool in taking the Apple

brand from social cool to business cool. Apple will also ask for feedback on

siphoned features, and implement those changes most important to the end user in the

next generation siphoned. To ad incentive, and encourage users to participate theyll


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offer opportunities to win gift certificates. In addition, Apple will use customer

satisfaction studies provided by various private third party firms to get a larger non-

biased sampling. Apple will also allow users themselves to design their own ideal

siphoned on-line and use any useful ideas to further refine future siphoned models.

Finally, Apple will continuously scour their fan websites to understand what the Mac

faithful are saying, as they are our best customers.

3.2 Segmentation. (Partitioning the market)

The iPhone targets consumers who need to store information and communicate

or people who want entertainment on the go. Apple target segments consist of

professionals, students, corporate users, entrepreneurs, and health care workers.

Currently, the market for high-end phones like the Apple iPhone is small. However,

few people want Internet, video, and PDA features in one device because of the high

price. The smart phone market is still relatively small compared with general phone

market. Customers in Vietnam had a lot of information about iphone before it was

launched in Vietnam. Different to customer in US, they are the innovators (not afraid

to try new thing) so Vietnam segmentation has something different from US

segmentation.

In Vietnam, there are only 3 official distributors Viettel, Mobifone and

Vinaphone. Similar to the way apple divides market, segmentation are divided

according to job, income and age.

- Target in customers who was young men in the age from 18 to 35 because

they are technology enthusiasts, easy to access new technology and they want a

product that are affordable, compact, and stylish. By targeting the product at young

men with middle upper income, it went without saying that women were also

interested in the product. Moreover, people who use cell phones for work are often

more highly educated and will respond well to detailed information in the advertising.


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Target

SegmentConsumer Need Corresponding Feature/ Benefit

Professionals

-Stay in touch while onthe go

-Record informationwhile on the go

-E-mail, instant messaging, andphone

-Applications from Mac OS X fornotes and record-keeping.

Students

-Perform many functionswithout carrying

multiple gadgets.

-Style and individuality.

-Ipod, phone, video, TV shows,Internet, PDA

-Apple branding as fashionstatement.

Corporate

Users

-Input and access criticaldata on the go

-Applications from Mac OS X fornotes and record-keeping

-Compatible with widely availablesoftware

Entrepreneur

s

-Organize contracts,access contracts and

schedule details.

-Wireless access to calendar andaddress book to easily check

appointments and contacts.

Medical

Users

-Update, access, andexchange medical

records

-Wireless access to calendar andaddress book to reduce paperwork

and increase productivity.

3.3.Target Markets. (Pursuing the segment)iPhones marketing strategy is to differentiate the iPhone from other PDAs on

the market, and in Vietnam it is famous with multi function and stylish.

Primary customer targets is the middle-upper income professionals that need one

portable device to coordinate their busy schedules and communicate with colleagues,


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friends and family; organize contracts, access contracts and schedule details; stay in

touch while on the go

+ Considering the attractive rate of this segment:

It has many opportunities to develop due to iphone fever The proportion is large. Vietnam has gold population so the number of

people in the age from 18-35 is large. Moreover, they have a job with

middle- upper income and they are sensitive to new technology. Easy to

access customers.

+ All 3 distributors (Vinafone, Mobifone, Viettel) have high position in

communicate service in Vietnam. They have ability to market iphone, attract

customers.

Iphones primary business target is to partner with large cell phone service

providers, AT&T, Verizon, Sprint and Cellular One; As well as large enterprise

software firms where information is critical to the end user.

3.4 Positioning the brand.

Using product differentiation, Apple is positioning the iPhone as the versatile

(nhiu ti, linh hot, uyn bc), convenient, value-added device for personal and

professional use. The marketing strategy will focus on the convenience of having one

device for not only communication, but also music, pictures, and video, and full

Internet access. The iPhone will be promoted as both professional and hip.

Additionally, differentiate itself from other smart phone on the market. First,

this is the 3.5-inch screen as an industry first. Secondly, it has a touch sensitive

keyboard. Apple has worked hard to make sure that their iPhone stays on the front

page of newspapers across the country. This has severely limited competitors from

fighting back with their new smart phones.


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Nokia is selling the N95, which is a smart phone geared to compete against the

iPhone with its ability to play music and DVD-quality video (Yuan and Sharma,

2007). The N95 has more features than the iPhone, but it lacks a major U.S. partner

for widespread distribution and carries a $749 price tag in the U.S. market. Other

competitors such as LG Electronics are also rushing high-end smart phones to the

market in an attempt to keep customers using their devices instead of switching to

Apples iPhone.

Software compatibility is one smart phone aspect in which competitors have a

definite edge over the first generation iPhone. Software developers currently must

develop programs that are optimized for the iPhones Safari Internet browser and

wireless capabilities, which severely limit their ability to introduce to the device

applications in high demand, but Jobs has said that the security of the iPhone is

planned to be overhauled and the software platform provided to programmers will

have features that protect the iPhone from malicious programs.

There are 4 levels of competition, in Vietnam, they are:

Brand competition: Nokia E7, Sony Ericsson XPERIA Arc LT15i,BlackBerry Torch 9800 (Price over 16 million VND)

Product competition: Nokia, Samsung, LG, Motorola, Need competition: iPod, homephone, iPad.. Budget competition: Travelling, Laptop, Motorcycle,

Target market in Vietnam is the youth and high salary people, therefore they have

both functional needs and psychological needs. Apple has to make some survey,

interview for more information. Then, Apple builds a map and analyze position of

Iphone trademark in Vietnamese market. Finally, choose the most suitable positioning

campaign.

3.5. Producing the brand.


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As every Apple product such as iPhone, the main marketing message to the

consumer is Something different, something cool, user friendly and simply Apple.

- The unique selling proposition (USP) of iPhone was not in the message but

rather in different functions the handheld was offering.

- Innovation: Adding the following features to the iPhone (large dish storage

capacity, lower weight, thinner device, long battery life, 4G wireless, GPS and

improved camera).

+ Differentiate the iPhone against others is the touch screen functionally.

+ Launching a cheaper version in 2008 with less advanced features along

with a more advanced version for professional use.

- Customization: iPhone have built a Community Online in its functions, such

as: flickr, youtube, bebo, facebook, dig, my space, twitter...and some of The Free

Tools Used: Google AdWords, Google Alerts, Addictomatic, Delicious, Yahoo Pipes,Bloglines, Phone Applications. The variation of the different applications available

opened up the target audience considerably and the option to choose applications

that the individual wanted helped to do this. Apple essentially claimed that there is an


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application for everyone and enforced this claim with the functionality that the phone

could also supply.

- Personalization: Simple and effortless synchronization with the address book,

calendar and email client throught iTunes and Mac applications.

- Connectivity: Stay in touch through almost all knows the ways for mobile

handhelds.

- Storage: Full features iPod like ability to store and play music up to 4Gb or

8Gb.

Beauty is the most important factor

In all of Apple's product line, even to details, everything is almost perfect and

eye-catching design, even advertisements on television.

Creating consumer interest

Look at Apple's subsidiaries and you will see many interesting things. They work

with customers in a friendly way. Apple's strategy is not telling you about what are

their weaknesses (in case you do not believe in the product), but their strategy is toshare comments of other people who are using their product with their

customers. It will be objective and more reliable. To apply this idea, businesses

(distributors in Vietnam) should make customers to have belief in your product. The

best way is regular access to the wants and needs of customers, then

provide them the best product.

Arouse (khuy ng, nh thc) interest of customers

Look at the subsidiary of Apple, and Apple saw many interesting things. They

reach customers in a friendly way.Apple's strategy is not telling you about what are

their weaknesses (in case you do not believe in the product), but their strategy is to


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share with customers the remarks of other people people are using and talking about

their product. It will be objective and more reliable.

Let the media uncover

Instead of the traditional advertising model instantaneous nature of the month,

the week was merely informed of products, Apple has used many different approaches

to all our customers know their brands such as articles on product quality, detailed

information about new products and not only just wrapped in a press release. And as a

result, thousands of people are aware of Apple products. The mass media really have a

great strength, especially for small businesses. For example, Apple, you can do this by

providing them make some new and unique information about you to them.

Create a unique experience for customers

All customer interaction is Apple careful planning.The minute you visit their

website just as you step into an entirely different site. If you visit one of their stores,

you'll feel like you're in a party fun and comfortable. And finally, when you buy the

product, packaging and even then you are already a member club of Apple.

Listen

The most important thing that Apple has to take care a lot is to create an

unprecedented experience for customers, then let the customer loyalty as well as the

media help you sell. That's the way Apple did. They let customers use their products

then invite them to show their feelings, their thought. Its also a source of information

to improve products with high quality, suitable to the tastes of customers and

gain good response from customers. Until now, Apple is still the most attractive

product.3.6. Price

- The iPhone was set at a price much higher than the competitors of the smart

phone market. Moreover, most of Vietnamese population doesnt have high income so


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Apple seems to have counted much on the new technology and the huge fan base that

allowed adopting the skim pricing strategy.

- As you can see below, the same approach with the difference between the 4Gb

and the 8Gb models was kept in the other countries. Initially this action plan has

raised numerous acts or discontent among the customers who failed to see why the

German user had to pay more that the American one, for example. In that sense, Apple

was going clearly for the Geographical pricing module.


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Source: http://www.mymapofjjapan.com/blog/iphone-japan-launch-details/.

- All of these benefits and features of the iPhone come for a price though; the

initial price of the 4GB model was $499 and the 8GB model cost $599. Aimed at the

high-end, tech-savvy consumer, who is often a business user, the iPhone is marketed

to a sizable, fast-growing market.

- Set the base model at a cheaper price. However, this makes adopter and

innovators upset that most of them is loyal customers because they didnt believe that

Apple would reduce the price so quickly.

- Special limited edition Beatles iPhone for special prices.

- Generally lower prices to ensure that establishes market dominance in as short

of time as possible.

In Viet Nam, Selling iPhone 3G at 4 million Vietnam dongs, equal to 1/4 1/3

of the market price while ensuring the origin and warranty, VinaPhone and Viettel has


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caused a fever in the 1st quarter mobile market. However, the more people expected

to own a 3G iPhone the more they felt disappointed when operators officially

launched their charge package. Accordingly, total price was about 10-14 million

Vietnam dongs, not cheaper than those are selling in free market which were not

limited by provisions in services contract. Then iPhone 3G fever reduced quickly a

month later and did not attract 3G subscribers as operators expectations. Reduction in

service charges and terminal price did not pay attention from customers again.

At the end of June, Apple officially released iPhone 4. Hours later, VinaPhone

and then Viettel declared to sell iPhone 4 in Vietnam. Once again this warmed up

Vietnam mobile market. Due to limited number of imported handsets, operators gave

priority to post-paid subscribers. This policy has settled users concern about

limitations in service contract. However, the supply did not satisfy users demand. It

could be said that 2 times of distribution launched by VinaPhone and Viettel did not

produce significant effect for the increasing number of 3G subscribers. For iPhone 3G,

it was a failure because this handset was widespread with a large quantity in free

market, especially advertisements led to customers misunderstanding over the price

to buy an iPhone. On the contrary, iPhone 4 attracted attention from customers

because this model was newly released and its price was lower than those in free

market. However, due to the limited number of iPhone 4 as stipulated by Apples

policy, operators could not increase the number of 3G subscribers considerably.

Therefore, many experts said that the race for iPhone distribution among operators

tends to advertise their brand name rather than to attract more 3G subscribers.

3.7. Promotion.

- Apple used both the pull and push strategy in its communication with thecustomer. One was the company advertising, promoting the product by itself

employing the full spectrum of the marketing communication mix channels and the

other is relying on the selected exclusive distributor region wise to advertise the

iPhone. In that sense, the customer was approached from two different sources


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creating differentiation from the competitors and delivering the product message with

added value service or application.

Pre Launch

Strategy

yPRyBlog Opinion Leaders & Specialized SitesySneak Peaks on R&D infoyBuzz & Viral Marketing.

Launch Strategy

yApple.comyPrinted MediayTVyOutdoor MediaySocial Media

Post Launch

strategy

yCarrier handheld advertisement.yApple.comyIndependent review WebsitesyPaid Online ListingsyDigital Campaigning

- Integrate Apple message of revolutionary communications and audio/ visual

experience together in all media advertisements.

- Emphasize Apple brand prominently and associate the iPhone with the iPods

groundbreaking lineage.

- Original but tasteful advertisement at the same time.

- A massive TV campaign is planned before launching the iPhone featuring a

soon to be legendary ad to be the talk of the country.


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- Advertisement will be appearing on a regular basis to maintain general public

awareness.

- Especially, Apple employed almost all digital channels known and making

business sense to use for hosting its communicational message to the customer and

targeted audience.

Digital channels.

Email-marketing - A message sent to every Apple customer few

weeks before launch

Display ads - Banner ads

- Interactive Ads

Social Media Ads - Facebook

- My space

Blog - Industries blogs

- Forums

- Discussion Boards

Website: Apple.com - Extensive introduction to the advantages the use

of iPhone gives.

-Hosting iPhone Apps purchasing center.

Crowd sourcing and

Online Communities

- Word of mouth, Apple fan club websites, blogs.

Search engine

marketing

-PPC (pay-per-click marketing).

-Affiliated marketing

-Other paid listings


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Opinion Leaders -Handing free iPhone for review.

-Supply access to iTunes iPhone apps section for

free.

One of the most influential periodicals dedicated to advertising, Advertising

Age, in 2007 selected Apple as a runner-up for the annual Marketer of the Year

award. This status was conveyed because of Apple's "rare accomplishment of

successfully bringing a new product into an already crowded and competitive market.

Apple's agreement with cellular telephone service provider AT&T gave it an upper

hand in their relationship older cellular telephone firms have yet to acquire" (Bulik

and Cuneo, 2007).

The network carriers in Viet Nam took advantage of the elements that would

like to own a fashionable products at reasonable prices and a hot event so many

newspapers have voluntarily jumped into the cause of this spread. Besides, the

majority community to spread information to the story naturally to the drama through

some of the giant order before the official date of sale, while the volume of goods

imported to be revealed less than of them several times, had impact on both those

previously not interested in the iPhone is.

Promotion plan for the iphone does not need to spend on advertising costs soon

after launch because the product itself and the event is very good.The media campaign

for the iPhone in Vietnam is very cheap and easy as enjoying headhunted by the

media and many customers even when the product has not yet been launched in

Vietnam.

3.8.Place

-Apple is aiming for massive rollout worldwide at all reputable major retailers

online and brick and mortar stores along with cellular phone providers. All Apple

Stores the Apple website will dedicate themselves to the iPhone and also provider


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channel partners by providing product demonstrations. Eye catching displays will be

found at all physical stores featuring the iPhone to make the product stand out from

the pack. Apple Stores will have the iPhone on display a full month before its

worldwide release. This is designed to lure consumers into Apple stores and see the

whole range of products Apple can offer.

- Distribution of the iPhone is set only to exclusive mobile carriers in each other

country that it was launched. This was due mainly to strategic decision made to

partner with a mobile communication service provider. The technological time to set

the parameter of the agreement was the main reason for the delay. For example, the

iPhone up to August 2009 is still not launched in the biggest market for mobile

handhelds- China.

- Apple has chosen a hybrid distribution channel involving its online store,

physical outlets and the retail points of the executive mobile services provider.


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Apple made some changes in its traditional consumer distribution channels,

choosing to eschew third-party dealers/retailers such as Best Buy and RadioShack

Corp. When planning where to sell the iPhone. AT&T offers the phones in its roughly

1,800 company-owned stores; iPhones are also available in Apple stores or through

Apple's website (Sharma, 2007). While impossible to predict a possible backlash for

Apple as it continues to market its entire product line, altering established distribution

channels can confuse customers and risk future distribution plans with those retailers

who were cut out of the iPhone plan.

In Viet Nam, iPhone bought by units via official channels after three mobile

network carriers VinaPhone, Viettel and MobiFone that were reached an agreement

with Apple to distribute the hi-tech products in Vietnam in 2010 and the latest iPhonelike iPhone 3G and iPhone 3Gs launched in the following months.

Vinaphone iPhone offers three models, including: iPhone 3G - 8GB and 16GB

iPhone 3G-iPhone 3G - 32GB (black and white), is accompanied by three paid

packages and an exclusive pre-paid packages for iPhone customers may purchase.

Meanwhile, according to Viettel, the first time provides Viettel three models

like Vinaphone, except that the distribution unit 2 versions: the international version

and unlocked version. Viettel provides consumers with five selections including onesale price and no commitment as well as four sales commitment to customers choice.

For Mobiphone, the original iPhone by MobiFone distribution will not be there

right in Vietnam in April 2011 as originally planned, although the company has

completed contracts with manufacturers Apple.

3.9. Post purchasing.

- Full year warranty along with an optional three-year Apple care.

- The iPhone includes an Apple Customer Service Bar and a customer service

phone number stored in the phone book so that consumers can contact the main

headquarters about any possible technical problems.


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Chapter 4. ASSESSMENT AND

RECOMMENDATION

4.1.ASSESSMENT

ADVANTAGE

As with all Apple marketing, the

iPhone marketing strategy is very clear,

simple and clever.

y Choose the exact target market: theiPhone had identified their targetcustomers who have above average

incomes. Particularly in Vietnam, they are

creative (not afraid to try new things) so that Vietnam has some different things with

the U.S. segment. They are youth aged 18-35 because they are passionate technology,

new technology accessible

y Interactive media is very effective: Apple has used all media to advertise the iPhone.In Vietnam, the networks have taken advantage of factor that everyone wants to own a

fashionable products at reasonable prices and a hot event that so many newspapers

have voluntarily jumped into the cause of this spread. In many ways, even using

rumors as a means to create curiosity, excitement, interest from consumers. ... In

Vietnam, many users advertised iPhone by themselves and many other users will know

it. Apple are benefited from this.

y The study of market efficiency, respect for customers, how to acquire genuinecomments from customers and justifiable: Near the end users and listen to

customers will be critical to the success Apple's. Apple also constantly scouring the

Apple fan site to understand what their fans are saying, because they are Apple's best

customers.


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y Decentralization (phn quyn) of marketing organization achieve highperformance: perform top-down, CEO Steve Jobs' s iPhone marketing group

dedicated to the management, operations management, design engineers, hardware

engineers, the software engineers, product management and business developmentmanager. Steve Jobs will be the last media spokesman, is the marketing genius - who

brings half the success of the iPhone.

DISADVANTAGE

Although rated as one of the best marketing campaigns of all time, but Apple has

also acquired a certain number of mistakes. We'll review the major mistake in the

marketing campaign for Apple's iPhone to see if the home network in Vietnam has

stepped foot on the car wound down it does not

y Vietnam is still a small market: Many different views and also said that to an iPhone4 in Vietnam at this moment is not easy, because it is a too small market, is not Apple

attention. Number of samples is too few, users have little choice and no special low-

level order, it will not fit U.S. market because it is characterized by multi-income

population remains low, the population of young children easy to change interest and

pay through the account was not so popular.

y Discount too fast: Apple iPhone retail discount 33% after first release 3 months, thismakes the loyalty of the "Apple" feel betrayed and abused. They had a hard time

ordering and queuing to buy the iPhone dream, but three months after so many people

had it. Similar scenario in Vietnam can occur: in June to launch 4GS iPhone, iPhone

3G prices will fall rapidly if the second home network without appropriate policy for

customers who purchased during the last opening then, most likely will suffer phase

response from customers.y Launched late in the market: All European countries and the other outlets in the

world including Vietnam has been launched slower than in the U.S. This made many of

the Apple customers in the market that can not wait for this delay. They has done

anything, including unlocking the iPhone to be able to own.


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y Black market: In China, sales in the first few days may reach 5000. IPhone price is agenuine obstacle to the user. While the market in black market, no contract, with only

800 USD a customer can own the iPhone, the models have Wi-Fi connection that

Unicom's version sells for above $ 1,000 - estimate number. Sold in markets wherethere exists in the black market is very difficult to sell such as Vietnam and China.

4.2.RECOMMENDATION

y Edit the previous error: Low profile, Interface, Too sensitive touchscreen., No radio.As the analysis of iPhone weakness

y Increase the number of suppliers before: Mobile Phone should join this marketbecause only 2 suppliers Viettel and VinaPhone dont satisfy the needs of people with

high incomes in Vietnam

y Expand market segments (non-market income, middle income is in high demand)y Reducing the price: reducing the price quickly is only a part of the price policy

(skim). Product is breakthrough technology, when released, Apple needs to consider

similar products will have opponents out after, or product technology is now obsolete

quickly, the life cycle too short ... hence the use of skimming price policy is correct, inorder to profit from the beginning to cover the cost of R & D, marketing, sales ...

should continue using this strategy.

y Suitable policy for both suppliers an Apple corporation: Apple is also very difficultto provide in cooperation with distributors, which is one reason why Vietnam did not


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have exclusive iPhone distributor. The consistent application of policies with partners

around the globe, such commitment to use the logo image to promote, or commitment

from the users themselves ... especially the commitments imposed on product sales for

Apple's iPhone distributor in each time period, will also be a major challenge to the

iPhone distributor in Vietnam.

In fact, Vietnam is not an important market for Apple to focus all resources on

iPhone marketing strategy in Vietnam. A few years from now, when the number of

high-income people in Vietnam increases, the information about iPhone is

disseminated to those who are currently not required and Apple continue to launch

new model series, the iPhone strategy marketing will then be successfully applied in

Vietnam.


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CONCLUSION

As the iPhone remains to be the number one smart phone around, the product

continues to grow, increasing size capabilities, increasing the number of applications

available, and providing new features that are released through new iterations of the

phone, continue to provide a greater value to the iPhone while the pricing remains

relevant.

At this time in the product life cycle, Apple continues to release enhanced

iterations of the iPhone. With most iPhone users un-willing to purchase a newer

version of the iPhone because of price, the target audience for the newer generation

phones is new iPhone customers. With Apples installed base continuing to grow, they

have found a way bring in reoccurring revenue from their existing customers through

the sales of their application downloads. As more and more people purchase the

iPhone, Apples audience for new customers continues to dwindle. Fortunately for

Apple, they have built in another source for revenue that continues throughout the life

of the product.

In the end, this is simply a lesson in making well-thought-out choices. Marketing

can get you excited about features you don't need and products that, if you thought

about it, aren't better than the ones you already have. Our group has researched a lot of

information about Apples marketing strategies for iPhone. We understand what

Apple has done to make iPhone be popular all around the world. With our knowledge

and interest in iPhone marketing strategy, we tried to present all we knew and learnt

that you can understand clearly and have more different and new thoughts from the

lessons of iPhone marketing plan strategies.


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REFERENCE SOURCE

1. iPhone Marketing strategy analysis- Borislav Kiprin.

2. Apple iPhone marketing plan-Colleen Maxwell, Bryan Lee, Anthony Suen, James

Hofmann.

3. Apple's iPhone Launch: A Case Study in Effective Marketing-Kyle Mickalowski

Mark Mickelson, Jaciel Keltgen from Augustana College

4.http://www.techiewww.com/marketing/apple-iphone-marketing-strategy

5.http://www.slideshare.net/digitalspace08/online-marketing-strategy-iphone-

presentation

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presentation

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12. http://www.ftaresearch.com/vi/articles/category/page/3/id/3

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dien/2010/07/2SVCM1229013/View.htm

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nguoi-dung-iphone-o-viet-nam.aspx


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17.http://www.marketingvietnam.net/content/view/689/16/

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cakes-in-vietnam.html

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iphone-marketing-plan.html

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+%C4%91%E1%BB%99ng+b%E1%BB%8B+h%E1%BA%A1n+ch%E1%BA%

BF+nh%E1%BA%ADp+kh%E1%BA%A9u.html

27.http://dantri.com.vn.

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29.www.vatgia.com

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vietnam-116505.htm

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