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Marketing PlanInternational Business ClassTutor:韩*Name:*Class :08级本3班Student No.:2008*Table of content Page 1. Executive summary-12. Situational Analysis-13. Market Objective-54. Market Research-55. SWOT Analysis-66. 4ps -87. Recommendation-98. Bibliography-10 Executive SummaryBecause the growth of market is speeding up, Amazon Company achieves its target successfully in the telephone iPhone market. But as the development of technology, the rising number of competitors makes the competition much fiercer who are fighting for a higher market share nowadays. As a result, Amazon Company must improve its status in iPhone area, so that they can survive and gain prosperity in this field. Situational AnalysisEconomical Situation: Potentiality of the market is decreasing but it is higher than any others in the Telecom sector.Competition situation: Industry scope is keep soaring when the competition becomes fierce. Here comes the market share data: Nokia 39.3%、Sumsung 21.2% 、 LG 10.5% 、 Sony Ericsson5.1% 、 Motorola 4.9%。 The impact of fake mobile phone turns out obviously. MTK chip makes fake mobile phone prevailing all over the whole china, which has formed a complete industry chain. As the development of the fake mobile phone, the power of it cant be ignored now.Technological situation: Since Jan. 2009, China stepped into the era of 3G, which becomes the new rocketing point of telephone market, which is beneficial to Amazons iPhone marketing, on the grounds of its smart quality. Socio-Cultural Situation:Population growth leading to expansion of the sector needs for cell phones. And people depend more a more on mobile communication everywhere. Economical Situation: Japan is the one of most developed country in the field of global communication. Telephone has been universalized in this island country.Competition situation: NameAmount of customersDocomo56,349,900KDDI 32,030,100Softbank 22,343,700In Japan, Three largest operators comes NTT DoCoMo(Do Communications Over Mobile Network) ,KDD(DDI&IDO),Softbank.Here is the table of their market share:The four major telephone producers in Japan are SHARP, Panasonic, Fujitsu, NEC. Four of them occupies nearly 70% of Japanese export market.SHARP株式会社Panasonic 株式会社Fujitsu富士通株式会社NEC日本電気株式会社 In Japans telephone market, the biggest competitor-Nokia shares the largest share of Japanese market, it has been involved in the Japanese cellular phone market since 1994 when its first product for Japan was launched. Nokia has developed a stable market position since then. Because of kinds of elements, Amazon realized the intense competition from Japanese manufacturers and the difficulties of understanding the Japanese culture, from the perspective of a western company.Technological situation: Future plans for technological linkage between cities, universities, colleges, hospitals and other institutes are increasing and can be connected to cell phones. Socio-Cultural Situation:Literacy & illiteracy level is not affecting using cell phones but affecting high technological cell phones, this fact needs to be considered.Economical Situation: Taxation is something that governments put and Amazon should be study this as country by country case to anticipate profitability, and pricing strategy. Importing laws in the world with GATT are in favor of trading.Competition situation: Sumsung and LG own a big share in Korea, but since 2009, iPhone has broken 10% of Korean cell phone market when it entered in this country. Table is as follows:Technological situation: Level of usage of the E- Technology (online bidding, billing, complaints, blogging etc) is high and trendy, which turns out to be the merit of Iphone market of Amazon. Socio-Cultural Situation: Acceptance of imported products in some countries are less if there is local provider. There are different social views that may affect the product (e.g.: Boycotting American products in the strong sense of patriotism.) Market ObjectiveAmazon Company needs to have a sale income of $ 221 million which includes gross income of $ 57 million. The rate of gross income is 28%, net profit margin is $ 6 million, and the market share is 6.3%. Marketing ResearchTarget groups:Four age groups will be targeted: 15-20 years, 20-25 years, 25-45 years, and 45 years and up.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. The 45 years and above will give us a plan to market to more senior well-refined group. This research will be done through surveys (via email through portals such as, iTunes and other on-line application) and interviews with the same age groups listed before.Brand awareness will be an important tool in taking the Amazon brand from social cool to business cool. SWOT Analysis S/O AnalysisStrengths:Brand awareness Amazon is famous for its convenience due to its strong network. And iPhone is well known for its quality, cool essential gadgets and multi-function. Innovative The iPhone has an innovative multi-touch screen. It also has many functions of other mobile products all in one device. The all-new touch screen interface recognizes multi finger gestures, just as the human hand normally behaves.Compatibility The phone will work with iTunes which means limitless potential for upgrade ability.Price Buying an iPhone from Amazon is much cheaper than shopping stores.OpportunitiesPartnerships Amazon can collaborate with many powerful social networks and searching webs, which reduces costs in marketing and increases revenue through long-term agreement deals.Increasing demand and expansion to a new target segment As technology advances and smart phones get cheaper Amazon will attract consumers buy promotion.No similar companies have defensive position fixing market. W/T AnalysisWeaknessesImage The Amazon network is not targeted towards people who dont make use of internet and does not have a reputation as being compatible with the corporate world. Price Apple does not yet offer lower priced models for more cost conscious consumers. User InterfaceAmazons main telephone product -iPhones touch screen interfaces suffer from the problem of “gorilla arm”.(Gorilla arm is a side-effect that humans face when using touch screens for long times as humans are not built to hold their arms at waist or head-height, making small and precise motions. After a short period of time, cramp may begin to set in, and arm movement becomes painful and clumsy. This is now considered a classic cautionary tale to human-factors designers.) ThreatsIncreased competition competitors like Taobao, Dangdang, and other smart phones are easier to make now more than ever. More companies may enter the market, and competitors maneuver around patents to create similar devices. Downward pricing pressure Although the iPhone is marketed as a high-end phone, but phone prices are almost certainly going to fall when other companies undercut the price of iPhones. Difficulty expanding into Asian market There is less hype and interest in Asia since its high price, and whats more, smart phones are better known and already widely used. 4Ps-Marketing Mix StrategyProductAdding the following features to the iphone (large disk storage capacity, lower weight, thinner device, long battery life, 4G wireless, GPS and improved camera).Launching a cheaper version in 2012 with less advanced features along with a more advanced version for professional use. Full year warranty along with an optional three-year Care warranty.Special edition version to be launched (including the iPhone Beatles edition celebrating their 40th anniversary).PriceSet the 8G model at a cheap price of 3399(save 600), 16G model of 4799 (save 500), 32G model of 5499(save800).Special limited edition Beatles iPhone for special prices.Generally lower its prices to ensure Amazon establish market dominance in as short of time as possible. PlaceMassive rollout worldwide at all reputable major retailers. Massive rollout Online, Showrooms and in all cell phone providers.Eye catching displays will be found at all physical stores featuring the iPhone to make the product stand out from the pack. PromotionIntegrate message of revolutionary communications and audio/visual experience together in all media advertisements.Emphasize Amazon brand prominently and associate the iPhone. Original but tasteful advertisements 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.Advertising will be appearing on a regular basis to maintain general public awareness. Rec
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