Exchange of Idea generates a new object to work In a better way. So, whenever a person is helped and co-operation by others. His heart is of gratitude and cumulative appreciation. First of all, We wish to express our deep sense of gratitude to our faculties Proof. Sandy Sacristans and Mr.. Raja Roar who taught us such an interesting and rationally sound subject named BIB Marketing and also provided us such a huge learning opportunity of making this project report . We would also like to thank our respective mentors whose support and guidance along with timely advice has helped s to complete this project report.
At least, we cannot forget to express our great-fullness to our parents as well as our friends for providing us competitive frame work. Contents of the Report Executive Summary Apple Inc: A SOOT Analysis Situational Analysis Business Customer: Struck Corporation End User Insight into Demand Competition Analysis Dell Hewlett Packer Environmental Climate Recommendations Mission Statement Marketing Objectives Product Strategy Pricing Strategy Distribution Strategy Promotional Strategy Financial Analysis Cash Outflows Break Even Analysis Cost per Customer Apple, Inc. s incorporated on January 3, 1977 with the mission to manufacture and design quality personal computers and software. Apple creates and markets personal computers and portable digital music players as well as accessories and services. Apple’s products and services include the Macintosh@ line of desktops and portable computers, the Mac SSE operating system, the pod@ line of portable digital music players, the tunes Store@, as well as a portfolio of peripherals that including consumers, creative professionals, government and business customers.
Apple’s business strategy leverages its unique ability to design and develop its own operating system, hardware, application software, and services to provide customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design. L As the market for personal computers grows each year, Apple seeks to capitalize on this growth by strengthening its foothold in the industry. In order to accomplish this, Apple has recognized a need to leverage their brand in defense of intense competition in the market. In recent years, there has been a decline in Apple’s market share in computer products.
In order to remain nominative and attract more consumers, Apple has to find other innovative avenues to increase their market share and increase exposure to target audiences. More specifically, Apple must find new potential customers and introduce them to Apple products through unique promotional methods and channels. Apple must adapt to changing customer needs by engaging more closely with their target market. Apple has determined a way to accomplish this via an alliance with Struck. The proposed plan is to set up various Internet work stations within various Struck locations across the stores in India.
The plan is predicated on two basic principles, the growing trend for wireless Internet stations, and the high potential within the coffee industry to tap into customer segments. The stations have been aptly dubbed, stations. The rationale behind working with Struck is that they share some of the fundamental goals and qualities that would make the relationship quite synergistic. Above all, both companies share some of the same customers, who have similar attitudes, values and beliefs. Apple Inc: A SOOT Analysis Strengths Weakness Brand Image Innovation and creativity fosters brand equity
Its strong brand image allows the company to charge premium prices for their products Wide Product Mix Allows Apple to enter different segments and markets; transferring brand equity Popularity Amongst the Younger Segments Highly recognized by the younger segment; top of the mind awareness Strong Financial Performance Cash flows indicate strong financial health, thus helping reducing the risk of new Incompatibility with different SO. The sis and SO X are quite different from other SO and uses software that is unlike the software used in Microsoft SO.
Due to such differences, both in software and hardware, users often choose to stay with their accustomed software and hardware (Microsoft SO and Intel hardware). Decreasing market share. The less market share Apple has, the less it can influence its potential customers and persuade them to Jump into using Apple’s closed ecosystem products. Patent infringements. The firm is often accused of infringing other companies’ patents and has even lost some trials. This damages Apple brand and its financial situation. Threats Opportunities Intense Competition A lot of competitors trying to mimic Apple’s success.
They may be inclined to copy upcoming Apple investments and partnerships. Contamination of PC’s Demand for branded PC’s is decreasing as standardization reduces the quality difference between branded and unbranded PC’s and components. As a result, it is becoming harder for the company to successfully differentiate its products from firms that produce unbranded goods. Contamination of PC’s threatens brand image Competitors’ moves in online music market. Apple faces threat from online music stores, such as Amazon, Wall-Mart and online music subscription companies, such as Spottily.
Widening Product Offering Wireless industry has taken off in recent years, as more and more people adapt to airless technologies, giving rise to opportunities in new product development Entry into New Segments To increase market share of PC’s, Apple needs to look towards bigger and sustainable markets. High demand of pad mini and phone 5. pad mini sales will increase Apple’s market share in the tablet market and, will strengthen firm’s competitive advantage. TV launch. TV launch will support Apple TV sales and the products’ ecosystem Increasing demand for cloud based services.
Apple could expand its range of cloud services and software as the demand for cloud-based services is expanding. SITUATIONAL ANALYSIS Struck Customer Profile This plan is directed towards a single business customer, Struck. The following discussion outlines the strategic rationale behind why Struck should consider the proposition; that is how can Apple benefit Struck. Struck Corporation, Struck, is a leading specialty coffee retailer in both the North American and many other International markets. It has been received well in India with its 18 outlets in New Delhi and Iambi.
Existing in India as a Joint Venture with DATA, Struck has seen strong growth in the Indian market and aims to expand its list of outlets across other cities. They produce and sell a wide variety of hot and cold beverages and sweets through its 18 locations in India. To achieve success, the company uses its strong brand image to increase differentiate its offerings and craft a solid competitive position. Struck has built an excellent global reputation based on the quality of its products and for its delivery of a consistently positive consumer experience.
Struck is an Experience, not Just a coffee retailer. Financially Strong Struck has reported consistent revenue growth over the last three years in India. This is significant because it provides the company with a strong financial base and enables it to undertake new business ventures. Expansion Struck’ mantra is to be -?everywhere. The company intends to open 100 stores by the end of 2014 in India. This allows for excellent market coverage. The company’s widespread presence provides it with brand recognition and a strong customer base.
Clustering of company units With the continued growth of the coffee market, the company has looked to expand the basis that a key driver of business is the convenience of the company’s outlet actions in the North American markets, Struck aims to target clustering its units so as to dominate particular areas in India. Entry into new markets As part of its strategy to increase its worldwide presence, Struck has recently opened stores in several new countries. This would provide the company with new opportunities for revenue growth. New stores Struck opened 1 5 new company-operated stores during 2011.
Growth in coffee market Indian’s domestic coffee consumption is set to record a modest growth rate of 9% at 1. 2 million bags (72,000 tones) during the year 2013-14 compared to 1. Million bags (66,000 tones) last year. According to United States Department of Agriculture (USDA), the consumption in India has been hovering around 1. 2 million bags for the past five years. It had slipped to 1. 1 million bags in 2012-13, the USDA said in its latest report on “Coffee: World Markets and Trade”. Weaknesses Reliance on brand Success depends highly on the value of the Struck brand.
Therefore, they must pay crucial attention to the way their actions may affect brand equity. Reliance on beverage innovation Historically, Struck’ store sales growth has been dominated beverage innovation; UT how sustainable is this? Problems in some international operations The company has been facing certain difficulties in some of its international operations and expansions. They have faced several failures across the seas. Competition Face intense competition from a wide range of sectors: restaurants, coffee shops, etc. From Barista, Cafe Coffee day, Costa Coffee, etc.
Currently Cafe Coffee Day holds a major stake in the Indian Coffee beverage market. Saturated markets in the developed economies The company faces long-term concerns regarding its International store growth potential. If current growth continues, saturation levels within the North American retail division will be reached within five years. 1 . Reliance on Beverage Innovation 2. Problems in International Operations 3. Intense Competition A strategic alliance with Apple Inc can help diversify the service options that end- users may find at specific Struck locations.
This will help: 1. Shift reliance from beverages onto a wider scope of services 2. Help stimulate demand in a saturated market; particularly important given international issues 3. Help them better position themselves against competitors 2. End-Users The following table outlines both the end-users from Apple’s and Struck perspective. The purpose of such a comparison is to show that both companies are targeting a similar target audience. Thus demonstrating an alliance between two can enhance their efforts in appeasing to this target audiences demand.
Struck Consumers Apple Consumers Struck holds around 33 percent of the market share for coffee in the U. S. It sells almost as much coffee as do fast food and convenience stores combined, even though it the bulk of its consumers are in cities or upscale suburban areas. Struck has been able to gain such a large share of the market by catering specifically to a well-defined target audience. Struck has also become a center for socializing and intellectual discussion, particularly among students and young urban professionals.
Struck created a -?unique offering that was relevant and differentiated. It turned willing to embrace. Struck has focused on the -?experience] around the consumption of coffee. Its branding strategy consists of coffee, service, and atmosphere. -?People come for the coffee, but the ambiance is what makes them want to stay] Apple users are more likely than PC users to have a higher household income, have received a graduate degree and be self-employed. Apple customers are loyal, have great passion and are very outspoken. Ђ?In Apple’s 30 years of business, they have formed a tight-knit, unique community. Some have stated that “they’re probably the largest subculture” – not only are they consumers of Apple products, but sales people as well. Now that Apple has introduced the _Apple Store’, these communities are able to share and enjoy all of their favorite apple products, further embracing and rumoring the Apple culture. Approximately 50% of Apple customers plan to buy another Apple computer. This demonstrates consumers strong brand loyalty and future commitment to Apple.
Struck began offering wireless Internet access in its international outlets to enhance the experience for students, business travelers, and web surfers who take advantage of this service while sipping their favorite coffee. Struck is committed to selling the “experience” while conducting its business in ways that -?produce social, environmental and economic benefits for communities in which it does business. Struck also began to sell music CDC in its coffee shops because the -?number one question from their customers is, ‘What is that song playing?
Struck has created a retail environment where people come in and pay attention to what is going on around them, rather than Just trying to get in and out with their coffee. Schultz (Chairman) sees a Struck store as the “third place” in a person’s life after home and work. People come to Struck to get away from the noise, and we have to treat it like a sacred environment. People’s imagination. Steve Jobs (CEO) had a flair for the dramatic, and also captured people’s imagination. Consumers buy Apple products because of the personal association with the latter factors, and a (leader) CEO that many consider their God. Cult-like behavior] Many people tend to note that it is hard to get people to move to a Mac, but once they do they tend to stay. Summary As demonstrated above, both Struck and Apple focus on similar target audiences. We have learned that these consumers are loyal, passionate, active (both in store and out), and regard the respective brand as their own. Each consumer group enjoys the environment and atmosphere they frequent (both at Struck coffee houses and Apple retail stores), and view it as a third place (Struck) where they can escape when not at work or home.
Both Apple and Struck consumers feel that they are part of a privileged and exclusive cultural group that extends beyond the products available for sale. Many discussion boards and websites have been developed by consumer fanatics to further expand each culture. These consumers have become the new of rival-marketers, as they not only support the brand, but aid in selling the products through various mediums. Within the specialty beverage industry, there are here prevailing trends that exist: sensory, health, and convenience.
These three trends are the driving forces of customer preference. Based on the proposed station, for both Struck and Apple sensory delivery is an important value to their customers. Each company offers unique and exclusive products that allow customers to have a higher value perception and even pay more for it. When consuming Struck gourmet coffee beverages, customers may feel special or exclusive-?similar to Apple customers. This suggests that these evoked sensory feelings are central to the brand value that is communicated by both Struck and Apple.
Consumer Trends: Wireless Technology and Coffee Shops There is an increased trend of wireless technology in establishments such as airports, hotels and coffee shops. Offering free wireless technology has proven to be a success factor for establishments such as coffee shops. Wireless technology has increased the communication between family, friends and colleagues. This increase in communication technology would provide an opportunity for Struck. From this, the Apple station will act as an added benefit for Struck. Conclusions For Struck, the needs of the younger customer segment have been changing. In
