Firenze Tablet PC Marketing Plan: Strategy & Analysis

Executive Summary and Market Overview

The potential audiences for the Firenze include all smartphone and tablet users in North America and Brazil, specifically those who need a tablet device capable of supporting both content creation and consumption. Apple has found that the iPad is used over 60% of the time for content consumption — including reading, video viewing, and photography (Apple Investor Relations, 2012). The Firenze is designed to appeal to this very large potential audience through its build-to-order strategy (Franke & Schreier, 2010). Apple has not been able to attain this level of manufacturing agility even in their laptops and low-end systems (Garfinkel, 2009).

Figure 1 (Global Smartphone and Tablet PC Demographics, 2011) shows the distribution of audience by demographic segment.

Males 18–45: 37.0% | Females 18–45: 28.0% | Males 45+: 2.0%

Based on an analysis of sources: (Apple Investor Relations, 2012); (Einhorn, 2011); (Franke & Schreier, 2010)

With the audience defined as smartphone and tablet PC users, the specific market segment of females and males in the 18–45 age group is of primary interest. Apple has found that the iPad is most often used by females in this segment for photography and video consumption, in addition to texting and email. Furthermore, documents filed with the Securities and Exchange Commission (SEC) indicate that the iPad is now the preferred learning platform for women students in the 18–25 age segment — Apple's fastest-growing demographic segment globally (Apple Investor Relations, 2012). Women in the 25–44 age group are multitaskers who frequently manage both a career and a home. The male 18–45 segment is more diverse: men aged 18–25 also use iPads primarily for content consumption, while men aged 25–44 use their iPads primarily as work platforms for content creation, functioning as a hybrid work-and-home device (Apple Investor Relations, 2012; Ricadela, 2009).

Tablet PCs are expected to surpass the sales of desktop and laptop computers by 2016, with advanced operating systems — including Apple's iOS — expected to take a dominant leadership position. Apple estimates that the iPad and follow-on tablet PCs will represent the majority of their hardware revenue, just over 54%, by 2016 (Apple Investor Relations, 2012). The proposed tablet PC, the Firenze, will be designed to support multitasking, run the Google Android operating system, and feature EV-DO technology, enabling the tablet to be used without a Wi-Fi hotspot (Kwak, Kim, & Kim, 2009). The design will also allow consumers to choose their preferred configuration at the point of purchase, as the supply chain for the Firenze will be developed to support build-to-order sales (Gill & Lei, 2009).

The Firenze will be designed for sale in the North American and Spanish-speaking markets, with support for Spanish-language customization by customers at any time. Given the unique approach to configuring the Google Android operating system, customers will be able to set up their Firenze for use in either English or Spanish, opening up the entire Mexican, South American, and Spanish markets. Of all these markets, Brazil will be initially targeted for launch given the strength of its global economy.

Company Introduction and Mission

To enable consumers to improve the communication, collaboration, and freedom in their lives by providing innovative tablet computing solutions.

The Firenze Tablet PC was established to offer a tablet PC in the market alongside other firms such as Samsung, Apple, and Google. Its primary product will be the Firenze Tablet PC, supported by complementary software. The tablet is expected to outpace desktop and laptop computer sales within four years, given that the Firenze features an advanced operating system comparable to those of Apple. Its primary characteristics include robust multitasking capability — the ability to run more than two tasks simultaneously without terminating other processes. The Firenze also supports the Google Android operating system and incorporates EV-DO technology, enabling the tablet to be used without a Wi-Fi hotspot (Kwak, Kim, & Kim, 2009). Additionally, the product has been designed to allow consumers to choose their preferred configuration at the time of purchase, with a supply chain built to support build-to-order sales (Gill & Lei, 2009).

Another key characteristic of the Firenze is that it has been designed to be accepted by both the North American and Spanish-speaking markets, as it will support Spanish-language customization by customers at any time. It will also be user-friendly, allowing customers to configure their Firenze in either English or Spanish through dedicated Android applications. The product will open the door to the Mexican, South American, and broader Spanish-speaking markets. However, Brazil will be the primary targeted launch market given the strength of its global economy.

The following is an assessment of the strengths, weaknesses, opportunities, and threats facing the Firenze Tablet PC.

Strengths include entrance into a very fast-growing market segment; a product designed to meet fundamentally unmet needs in the market; and capitalization on the latest trends in technology, including rapid advances in EV-DO chipsets (Kwak, Kim, & Kim, 2009).

SWOT Analysis and Market Position

Weaknesses include the likelihood of very high customer service costs during the initial months and years of adoption; high marketing expenses as the product is launched; and the significant consumer education required to shift customers away from the assumption that a wireless plan is necessary for using a tablet PC (Ricadela, 2009).

Opportunities include the potential to integrate the Firenze with fast-growing telecom providers in Spanish-speaking countries where EV-DO technology may not yet be fully functional (Ricadela, 2009). There is also potential to expand the product line beyond the initial tablet PC to support more advanced and customized configurations through the build-to-order strategy, as well as significant upside potential in high-margin accessories.

Threats include significant competition from Apple and others who are also seeking to establish a dominant market position in the tablet PC market.

The market position of the Firenze Tablet PC is based on its unique manufacturing strategy, which gives every customer the opportunity to customize their tablet to individual requirements while remaining always connected to the Internet via EV-DO technology. As the only device capable of supporting collaboration, communication, and content creation — in addition to consumption — in two languages, the Firenze is well-positioned to capitalize on the market dynamics in the tablet PC space. A Porter's Five Forces analysis illustrates how the market is changing rapidly and how the build-to-order model will give Firenze the opportunity to compete more effectively against less agile competitors.