Anticipating huge potential of growth in this industry, numerous new companies are entering the market. These new entrants are manufacturing same quality products for the same target customers. Therefore, they are also a big threat for the company for its new iPad keyboard and case combo (Kotler, 2008).
iii. Threat from the substitute products:
There are no direct substitutes for iPad keyboard and case combo. However, all those manufacturers that offer keyboard and protective covers or cases separately can be regarded as the alternative choice for this innovative product. For example, if a customer does not need Bluetooth keyboard, but wants to protect his iPad from damage and scratches; he will definitely go for buying protective case. He will not even consider the keyboard and case combo in his purchase decision process.
iv. The bargaining power of Customers:
The bargaining power of customers is comparatively stronger than that of manufacturers. Reason being, there is a huge variety of similar and substitute products that can satisfy the same consumer needs. These products are also sold at very competitive prices. Therefore, consumers have a large choice to select their required product from any of the available brands. However, brand equity, past experience, and marketing efforts of the firms have a dominating impact on the consumers' decision making process. Keeping in view this strong bargaining power, companies need to attract consumers by producing high quality products and running effective promotional campaigns.
v. The bargaining power of Suppliers:
Large scale consumer electronics and it companies are enjoying strong bargaining power against their suppliers. There are a large number of raw material suppliers, retailers, and distributors that help these companies in producing and delivering their products to the final consumers. These supply chain members find it more feasible to do business with well-established firms. Therefore, they agree to sell their material on low commission. This strong bargaining power gives an added advantage to the large scale manufacturers in this industry.
4. Product Market Focus
The company is going to introduce its new iPad keyboard and case combo in the United States and Canadian market. The target market for this product consists of all those consumers who have bought any of the latest 3 models of iPad. However, the company can categorized the whole target market on the basis of geographical and demographical factors. Geographically, the new iPad keyboard and case combo will be sold in all the major cities of the U.S. And Canada in its initial phase of introduction. After its success in these markets, the company will make it available for sale all over the world. Secondly, the target market consists of professionals, businessmen, and university students. Therefore, the age group of the target market ranges between 18-50 years.
5. Marketing Strategy and Objectives for the new iPad Keyboard and Case Combo
This keyboard and case combo will be sold as an accessory for the Apple iPad which is one of the most advanced technological gadgets available in the market so far. While designing marketing strategy and promotional campaigns for this high-tech product, the company will have to keep in view a number of factors. First of all, it will have to define its marketing objectives which will set a roadmap for the marketing team for the whole project (Groucutt, Leadley, & Forsyth, 2004). Secondly, it will have to analyze its own capabilities, resources, and core competencies which can make its marketing plan successful.
The main marketing objectives of the company for its new iPad keyboard and case combo are:
i. To penetrate the United States and Canadian market effectively
ii. To contribute to the sales and financial performance of the company iii. To strengthen the existing brand image of the company in the U.S. And Canada
iv. To help the company in reaching top market leadership position on the basis of sales volume, profitability, return on investment, and product acceptability among general consumers.
v. To maintain strong customer relationships and strengthen customer base
vi. To run effective marketing and promotional campaigns that can attract more and more customers to buy this product (Lee & Johnson, 2005).
vii. To make attractive revenues for the investors and strengthen operational and financial position in a short period of time.
6. Financial Data and Projections
Projected Income Statement for iPad Keyboard and Case Combo
$ in '000
Months
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Revenues
Sales
2000
Technical Services
10
15
25
35
45
50
75
80
83
85
90
Total Revenues
2010
Costs of Revenues
New product development
2000
Factory overhead
Amortization of acquired Technology
0
0
0
0
10
15
25
25
25
30
30
30
Total Costs of Revenues
Gross profit/(Loss)
-790
Operating Expenses
Sales and Marketing Expenses
Research and Development Expenses
90
Implementation Plan
Implementation Plan for iPad keyboard and case combo
Activity
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Initial Market Research (Industry Analysis)
Competitor Analysis
Contracts with the Online Retailers
Contracts with the Physical Retailers
Launch of the Product
Marketing on the Electronic Media
Marketing on the Print Media
Marketing on the Social Media and websites (Internet)
Marketing on Billboards, in-store locations, etc.
Customer feedback and surveys
Evaluation and Control
8. Marketing Evaluation Monitors and Control
The performance of iPad keyboard and case combo can be assessed by looking at the sales figure before and after its launch in the U.S. And Canada markets. However, there are certain evaluation monitors which will give a true depiction of its performance to the marketing team. The first indicator is the change in customer appreciation and loyalty towards the company's brands. The most effective way to measure this indicator is conducting customer surveys and reviews on social media, forums, and the websites of online retailers like eBay, Amazon, Target Corporation, Wal-Mart, etc. (Jenny & Scammon, 2010). Secondly, the company can look at the increase or decrease in its overall sales volume after the launch of this product. These indicators or evaluation monitors will help the marketing team in bringing improvements in the features of this product according to the consumers' demands. The company will also need to hold product review seminars, trade shows, and other events to create awareness of this new product among general consumers. All these efforts will eventually lead to a successful entry of this product into the American and Canadian markets.
References
Bearden, W.O., Ingram, T.N. & LaForge, R.W. (2007). Marketing: Principles and Perspectives, 5th Edition. Boston, Mass: McGraw-Hill
Brassington, F. & Pettitt, S. (2006). Principles of Marketing, 4th Edition. Harlow: Financial Times Prentice Hall
Groucutt, J., Leadley, P. & Forsyth, P. (2004). Marketing: Essential Principles, New Realities,1st Edition. Sterling: Kogan Page.
Jenny, M. & Scammon, D.L. (2010). Principle-Based Stakeholder Marketing: Insights from Private Triple-Bottom-Line Firms, Journal of Public Policy & Marketing, 29 (1): 12-26.
Kotler, P. (2008). Principles of Marketing, 4th (Australian) Edition. Frenchs Forest, N.S.W: Pearson Education Australia
Lee, M. & Johnson, C. (2005). Principles of Advertising: A Global Perspective, 2nd Edition. N.Y: Haworth Press
Mullins, J.W., Walker, O.C. & Boyd, H.W. (2008). Marketing Management: A Strategic Decision Making Approach, 6th Edition. N.Y: McGraw-Hill
Peter, J.P. & Donnelly, J.H. (2009). Marketing Management: Knowledge and Skills, 9th Edition. Boston: McGraw-Hill
Straker, F. (2012). New iPad Keyboard + Case Combo is Thinnest Ever. Retrieved on May 30th, 2013, from
ZAGG, Inc. (2013). About Us. Retrieved on May 30th, 2013, from
ZAGG, Inc. (2013). Investor Relations. Retrieved on May 30th, 2013, from
