Created a direct marketing plan for the "Apple Watch II"

1. Apple Watch II
KYLA MARIE VERGARA
KELLY ZEPEDA
LEETAH MCGEE
COURTNEY HAYWARD

2. Agenda
 Who Uses Wearable Technology?
 Who are the iPhone consumers and
customers?
 Who is the Apple customer?
 SmartWatch Market Share Distribution
 Pebble
 Samsung
 Sony
 Motorola
 Marketing Plan
 Advertising Strategy
 Direct Marketing Strategy
 Financials
 Sales Promotion
 Public Relations
 Social Media Strategy

3. Who Uses Wearable Technology?
 Medium-heavy smart handheld device users
 Ages 20-29
 Familiar with wrist-worn and head-mounted
devices
 Smart buyers who will acquire as much
information before buying a new product
 Care more about a product's function than its
added value (such as sleek design or the
impression it gives to people)
 Professionals that will utilize wearable technology
for work purposes

4. Apple Watch Features (cont.)
Main Features
 Receive & respond to messages in a variety of ways
 Personalize and customize watch and face whenever you want
 Send a sketch, tap, and even heartbeat to people you connect with most
 Receive & make calls using built-in speaker and microphone
 Do a lot of useful things with Siri by just using your voice
 Search for locations and get turn-by-turn directions right on your wrist
 Control music on your iPhone, or listen to playlist with Bluetooth headphones
 Pay quickly and securely
 Track daily activity and stay motivated to sit less, move more, and get some exercise
 See metrics like distance, pace or speed, calories burned, and heart rate during workouts

5. USP
 “Better the second time around”
 GPS Abilities
 Water resistance
5

6. Apple Watch Consumer
Segmentation

7. Apple Watch Sport
 Silver and space gray
aluminum cases
 Display is protected by Ion-X
glass
 Matching fluoroelastomer
band comes in 5 different
color choices
 Price ranges from $350 -
$400
Target Market
 Males & Females ages 25+
 Household income: $26K -
$61K
 Maintain an active lifestyle
 They prefer function over value
 Extremely tech savvy
 Very sophisticated consumer
who does product research
before committing to a single
product
 Low brand loyalty

8. Apple Watch
 Stainless steel and space black
stainless steel cases
 Display protected by sapphire
crystal
 Choice of 3 leather bands, 1 link
bracelet, and Milanese loop, and a
band made from high-performance
fluoroelastomer
 Price ranges from $700 - $1200
Target Market
 Males & Females ages 25+
 Household income: $62K -
$99K
 Their disposable income
allows them to enjoy the finer
things but they still value
function over ultra-luxury
 Enjoy using watch for their
work-related purposes
 Love watch for its vast
customizing options
 The have a moderate amount
of brand loyalty

9. Apple Watch Edition
 Watch case crafted out of 18-karat gold
that has been developed to be twice as
hard as standard gold
 Screen is protected by polishes sapphire
crystal
 Exquisitely designed band provides a
striking complement
 Price ranges from $10,000 - $17,000
Target Market
 Males & Females ages 35+
 Household income:
$100K+
 Tech savvy professionals
who enjoy mixing
technology with ultra-luxury
 They use watch primarily
for work and enjoy the
hands-free concept

10. Apple Sales & Outlook
 Tim Cook reported a continued strength from the iPhone, Mac, and App
Store, which drove their best March quarter results ever
 There is a higher rate of people switching to iPhones than they have ever
experienced
 Quarter 3 predictions:
 Revenue between $46 and $48 billion
 Gross margin between 38.5% and 39.5%
 Operating expenses between $5.65 and $5.75 billion
 Other income (expense) of $350 million
 Tax rate of 26.3%

11. Apple Sales & Outlook
 Pre-orders in 2015 have exceeded 2.3 million
 957,000 pre-orders on first day alone
 Apple Watch 2.0 will be launched towards the end of quarter 3 in 2016
 Launch of new MacBook Air & Apple Watch 2.0 will coincide with Q4 2016
results

12. SmartWatch Market Share Distribution
 Key Players:
 Samsung
 Sony
 Pebble
 Market Value
 2013: 700 million

13. SmartWatch Sales Forecast
 50 million watches should be sold by 2016
 Smartwatches will increase with technology
advancements, increasing worldwide awareness
 Smartwatches will have a significant popularity in
China and will be a powerful tool to use with the
smartphone
 China is expected to become powerhouse in the
smartphone industry

15. Pebble SWOT
Strengths
•Innovative culture
•Technology
•Crowdfunding success story
Weaknesses
•Battery timings
•Brand recognition
•Cost structure
•Complicated to use (users are
“forced” to do too much work)
Opportunities
•Innovation
•New services
•New technology
•Emerging market
•New products
•International expansion
Threats
•Intense competition
•Substitute products

16. Samsung Galaxy Gear SWOT
Strengths
•Samsung owns its own flexible
OLED display technology (Youm)
•Seamless phone integration
•Color selection
•Speakerphone
•Display
•Good camera
•Looks good
Weaknesses
•High price point
•Smartphone dependent
•No wi-fi relies on having
smartphone nearby)
•Slow to react
Opportunities
•Innovation
•New services
•New technology
•Emerging market
•New products
Threats
•Intense competition
•Inability to reinvent product
categories

17. Motorola 360 SWOT
Strengths
•Wireless charging
•Comfortable to wear
•Resembles a regular watch
•Stainless steel case
•Heart rate monitor
Weaknesses
•No different face sizes
•Poor battery life
•Have to disable all apps in order
for battery to last all day
•Price point
•Cannot charge without the
screen on
Opportunities
•Innovation
•New services
•New technology
•Emerging market
•New products
Threats
•Intense competition
•Substitute products

18. Sony SmartWatch 3 SWOT
Strengths
•Good performance
•Sharp display
•Comfortable to wear
•Good battery life and quick
charging through micro USB
Weaknesses
•Boring design
•Limited watch strap options
•Expensive
Opportunities
•Innovation
•New services
•New technology
•Emerging market
•New products
Threats
•Intense competition
•Substitute products

19. Marketing Plan
 Objective:
 utilizing a well-balanced, perfectly tailored marketing mix in order
to successfully deliver marketing message across the board
 Strategy & Tactics:
 Advertising: Raise awareness; branding
 Direct Marketing: immediate transaction/response
 Sales Promotion: short term sales boost
 Public Relations: influence attitudes, opinions, and values
 Social Media: strengthen online presence, constantly
communicate and engage with consumer, create buzz around
new products, which will in turn foster a constant buzz around
brand

20. Rationale
 Strategically tailoring marketing efforts for
targeted consumers in order to successfully
penetrate their radar
 Create ads that will be quantifiable in order to
measure performance and convert that into
revenue
 Spend and allocate ad dollars wisely in order
to maximize efficiency
 Constantly alter and change marketing efforts
in order to increase performance

21. Advertising Strategy
 Objective: focus on increasing Apple Watch awareness to entice consumers to
purchase 2.0 version
 Strategy: a solid digital and traditional campaign to maintain a strong presence in
consumer’s mind
 Tactics: Our “Digital Crown” Campaign will include --
 Magazine Ads
 Internet/Banner Ads
 TV Commercial
 Rationale: maintaining Apple Watch visibility is imperative to reinforcing and maintaining
Apple’s reputation as the go-to for innovative consumers who want the most innovative
products

23. T.V. CommercialMagazine Ad

24. Direct Marketing Strategy
 Objective: to illicit an immediate transaction and/or response
from prospective consumer targeted via Apple’s House list
 Strategy: utilize Apple’s House list to extract information about
consumer that would be most likely to venture into the Apple
Watch category
 Tactics: presenting targeted consumer with banner ads
showcasing product
 Rationale: always staying on prospective consumer’s radar is
desirable, as that will ensure our position as their go-to brand for
innovative products

25. Tactics
Banner Ad

26. Tactics
Banner Ad

27. Sales Promotion
 Objective: to create a short term sales
boost by encouraging cross-selling
 Strategy: offer consumers $50 off their
choice of Apple Watch accessory
 Tactics: ability to track what accessory
each consumer purchases with a
personalized gift card, allowing us to gain a
deeper understanding of the consumer’s
behaviors and interests
 Rationale: we want to encourage the
consumer to use the Apple Watch to its
fullest potential, and accessories are the
perfect vehicle encourage that

28. Public Relations
 Objective: to influence attitudes,
opinions, and values
 Strategy: host a one-night exclusive
Apple Watch event that ties in
seamlessly with ad campaign
 Tactics: promoting the Apple Watch
and show VIP treatment to our loyal
consumers
 Rationale: creating allure around
Apple Watch in efforts to keep
consumers “wanting more.”

29. Apple Watch Event
 Event will be exclusively for Apple customers that are part of our secret loyalty program
 Approximately 80 – 100 attendees
 Hosted by Apple’s CEO Tim Cook, Jonathan Ive (SVP of Design), and Dan Riccio (SVP of
Hardware Design)
 Event will feature Genius bar, Phhhoto booth, engraving station, and complimentary food and
wine
 Attendees will receive a goodie bag which will include Beats headphones, an extra watch
band, an Apple TV, and a $25 Starbucks gift card
 Attendees will also be able to spend the night at the W Hotel after the festivities
 A QR code will be sent to the Apple watch user with acceptance of event invitation. In order to
use each booth, consumers must tap the QR code to the booth they are using.
 With consumer profiles on file, in hindsight we will be able to track the attendee’s every move,
gaining valuable insight into their interests

30. 30
You’re Cordially
Invited…Dear Apple Watch customer,
Welcome to our VIP loyalty club! Not only are you the proud owner of
the sleekest, most tech savvy watch in the world. We're pleased to
invite you to our exclusive Apple Watch Event hosted by Apple’s CEO
Tim Cook, with Jonathan Ive, SVP of Design, and Dan Riccio, SVP of
Hardware Design. There will be live music, interactive booths, and an
exclusive Q/A with our hosts. Guests have the option to stay at the W
Hotel and a special gift, courtesy of Apple.
Click the link below to RSVP & receive your watches personalized
QR code. Must wear watch to event for entry.
http://www.apple.com/watch/events/rsvp

31. Social Media Strategy
 Objective: to make up for Apple’s lack of social media
presence on major platforms like Twitter, Facebook, and
Instagram
 Strategy: create an online platform exclusively for Apple
Watch consumer and integrate sponsored Instagram ads
 Tactic: give consumer exclusive access to all things Apple
Watch
 Rationale: rewarding consumer for their loyalty will only
reward us in the long-run and only encourage continued
loyalty

32. Tactics: Apple Watch Platform
 Website will include personal profile and VIP access to all things
Apple Watch
 “Your Watch, Your Page”
 They will be able to tailor their preferences and pick and choose
what information they want to receive directly to their inbox in a
form of a newsletter
 They will have week-early access to all Apple Watch product
launches and accessories
 They will have month-early access to pre-order the Apple Watch
2.0

33. Tactics
 Instagram is
the perfect
platform to
showcase
product
 Simple and
streamlined
 Fits Apple’s
aesthetic
and a
segment of
target
market

34. Conclusion
 Based on the sales and the promotions of the first Apple Watch, we predict
that Apple Watch 2.0 sales will increase drastically in the fourth quarter of
2016
 Based on predictions of the smartwatch industry, many more individuals
mindset about smartwatches would change and lead to an increase in
sales globally
 As smartphone sales are increasing exponentially, smartwatches will be
the next must-have accessory
 Apple 2.0 will compete against other brands who will also improve their
smartwatch specifications and features but there are no definite winners in
the smartwatch industry
 Our strategies will be successful in penetrating our target market,
influencing them to buy and continue being a part of the Apple brand
34

35. THANK YOU.