Kamis, 08 Oktober 2009

iPhone 3G Overview






  • iPhone 3G it’s a smart phone with fast 3G technology, GPS mapping, support for enterprise features like Microsoft Exchange, and thousand of applications to be downloaded, free or to be paid for a small price.
  • iPhone 3G is a revolutionary phone, combining a widescreen iPod, and a breakthrough Internet device with rich HTML email and a desktop-class web browser.
  • iPhone 3G and the older version is the third largest selling mobile phone in the world behind Nokia and Samsung.
  • 6.9 millions of iPhone 3G has been sold, compare to the older version which is just 6.1 million.
  • iPhone 3G available in two colours, black and white.
  • iPhone 3G comes with 2 MP camera.
  • iPhone 3G compatibles for various video formats such as .m4v, .mp4, and .mov file. Inherit from previous iPhone version, this 3G one also support viewing of YouTube.com.
  • iPhone 3G use Safari Web Browser.

1. Background of the Campaign

From many revolutions that has been done by iPhone, especially for touch screen technology and its multimedia which got eulogy from many people. There is only one thing that should be regretted, due to the fact, there is no 3G. Many people would like iPhone in 3G version, which motivate Apple and AT&T to work together and create iPhone product using 3G. The Apple’s success when it entered mobile phone market with its iPhone makes Apple becomes so confident in creating the iPhone new generation by using 3G feature.

3G Network is the third generation network from the standard of mobile phone and technology. One of the strength of 3G Network if compared with 2G Network is the speed of transferring data that is faster. It is not like Wi-Fi Network which needs quite near distance to get a good connection, but 3G networks only needs area which mobile phone can get signal. Nowadays, more than 200 million people are connected with 3G in the world.

Apple products always get admiration. In mobile phone industry, iPhone 3G already got the attention from mobile phone’s lovers less in less than one year, even before it was launched. Although if we see from iPhone’s features, it does not have any significance changes compare to the older version.

iPhone 3G also received no.3 Gadget of The Year by Time Magazine and as the only mobile phone that received it. This means that the image power is internationally well known.

To be able to get iPhone 3G is not easy. Apple only choose several countries as the objective of iPhone sales. The 3G iPhone will be sold formally only in 70 countries and unfortunately, Indonesia is not part of their targeted country.

Therefore by looking at the potential market in Indonesia, there will no other reason why Apple should not launch the iPhone 3G here. The other reason is by looking at the Blackberry boom in Indonesia, especially in big city such as Jakarta. Compare to Blackberry, even to Bold and soon to be launch, Blackberry Strom, iPhone 3G got everything a smart phone owner ever wanted.

The reason why we believe that there is a high potential market in Indonesia is because by looking at the total expenditure in advertising in Indonesia, it was dominated by the telecommunication industry, especially SIM card. It means that the market is still very open, even the competition in SIM card is very tight. The data here taken from Nielsen Media Research for Advertising Information Service.

No

Product

Jan-Sep 2007

Jan-Sep 2008

% Diff

1

Excelcomindo XL GSM card

70.904

301.167

325%

2

Political organizations

65.283

231.426

254%

3

Indosat M3 GSM card

69.628

212.876

206%

4

Telkom Flexi SIM card

110.919

195.069

76%

5

Esia

98.372

194.122

97%

6

Nokia - GSM mobile phone

156.125

192.941

24%

7

3 SIM Card

71.439

183.631

157%

8

Telkomsel Simpati SIM card

149.025

177.672

19%

9

Telkomsel Kartu As SIM card

79.836

171.8

115%

10

Telkomsel other SIM card

181.613

170.955

-6%

Since the first time of the launching, Apple iPhone 3G has become one of the ‘most wanted’ mobile phone to the world, $even before the formal launching happened, there are a lot of people that would like to have it. One of the new advantages the new iPhone provide is the access GUI (Graphical User Interface) with complete multimedia and of course high speed 3G feature.

2. Communication Objective

There are 2 objectives as a result why a company does a marketing communication to the customer and their potential customer.

1. Brand awareness as we know usually this is used for launch a new product.

2. Brand recognition as an objectives where the customer and potential customer being reminded for apple company and their products.

Both of the objectives needed to be targeted since Apple has to make the market aware of iPhone 3G. The market need information from the official source which is the Apple corp. in Indonesia itself that iPhone 3G exists in Indonesia.

The second purpose is brand recognition. Apple need to remind their existing user about their line of product (including : ipod, iphone, mac, etc). The purpose of this objective is to maintain the sales from other source beside iPhone 3G and hopefully will be able to create desire for their new potential customer to buy the iPhone 3G.

The iPhone 3G product is not a new product in market; we can say it’s an improvement from the latest iPhone model. This 3G iPhone doesn’t have a lot of different feature compare to the first iPhone generation and the design isn’t much different. Therefore Apple must create a way to reach the customer and make them buy this 3G iPhone.

The purpose of marketing communication itself is ensuring our intended message reaches and understood by the target public in the most efficient way. That’s the reason why Apple choose to use internet as media to communicate with their market (it’s suitable for their target).

The intended messages are:

1. Promote the 3G iPhone – the improvement from the original/ first iPhone.

2. Educate the user(guide to use,etc) – there’s tutorial video which can be watched and downloaded from the apple.com.

3. Pay and free applications and games download – to create image that iPhone has a lot of feature and the application easy to get and user friendly.

4. Gain purchase in iTunes store- to attract potential customer to buy Apple’s products beside iPhone like mac book, iPod, etc.

5. Product knowledge.

6. Promotional tools to increase sales.

7. Maximize profit and increase 3A’s toward the products.

3. Target Audience/s

Before iPhone 3G was launched, the older generation, iPhone already had loyal customers. Those who had iPhone believe that they are highly sophisticated, cutting edge or cool society. That image also becomes iPhone 3G main ‘weapon’ to attract those iPhone lovers. iPhone 3G provide a fast internet access supported by free and easy to download softwares in internet which enhance its position as highly sophisticated technology.

In selling this product, we are using a different approach. This different approach is that we are using the diffusion of innovation theory as the concept of selling. In diffusion of innovation curve, there is a society called early adopter. This particular group is a small community and of course not mass audiences. They have loyalty, always want to try something new, very critical about products and they are virus spreader.

While other products mostly targeted mass audience for their product, iPhone 3G will focus on the early adopter. Seth Godin in his book ‘Purple Cow’ writes about how important in this day to create a very good product that could made peoples attracted to it. iPhone 3G are using this concept by not targeting early and late majority. We believe the innovators and especially the early adopters could spread this iPhone 3G virus to the bigger community.








Still in Seth Godin’s book, The Purple Cow, he stated that the innovators and early adopters have a higher appreciation of a product. The bigger the audience, the appreciation rate becomes lower. This theory also made Apple using a very unique positioning and differentiation when selling the iPhone 3G.





iPhone 3G already becomes a phenomenon in internet world before it was released or even before the announcement from Apple itself. Thousands of peoples in internet showed a high interest on this product. They are the innovators and early adopters. Their number is not significant, but their movement is very interesting to be watched. They spread the news of this upcoming iPhone or they called it ‘The iPhone 2nd Generation’ through websites, blogs or internet social communities. From here, the news of the new iPhone spread uncontrollable. From this point too, iPhone 3G becomes the main issues for a long time in internet that make millions enthusiastically waiting for the launch.

Apple sees this phenomenon of people wanting iPhone 3G even before its launch as an opportunity. They creates image. An image that those who use iPhone 3G is not just highly sophisticated, cutting edge or cool society, but more than that. They create the image that those who use iPhone 3G also a smart person. They are smart because they made a right decision to change their old iPhone with a low speed internet to the high one. The image becomes so strong and in the end, mostly of the iPhone 3G users are the evangelist of this brand.

For Apple itself, because of the evangelist they had, they don’t have to push the sales of this product by using advertising. They believe word of mouth could become the key to the iPhone 3G success. In the end, iPhone 3G target audience which in the first only targeted the innovators and early adopters becomes much larger. Those who are using iPhone 3G believe that they are not the part of the commodity. They are smart people, unique and very personal.

From the demographic segmentation, iPhone 3G targeted high mobility peoples between 17-40. The very fast internet access and all the softwares makes them like or even adore it besides iPhone 3G big name. For not a long time, iPhone 3G will becomes the most wanted PDA for millions of peoples in Indonesia.

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Since the economic condition globally is having a bad effect as well in Indonesia to people’s buying power, iPhone 3G should really know what type of people would be the target market. This can be decided by looking at the buying power in this market mapping chart by Majalah Marketing.

Rationalist

Snob


Only but what they needed, have buying power

Premium class people not affected by the crisis




Dumb

Smart


Low class society, only buy what they really needed

Those who always put lifestyle, looks but not really look for original branded





Needs Expectations

By seeing at the chart, iPhone 3G in the economic crisis can select either to targeted snob, rationalist or smart people. Mostly it will be for snob peoples since they are usually an innovator or early adopter. While rationalist only but what they needed but have a high buying power which can become opportunity for iPhone 3G to penetrate the market. Smart people put lifestyle as the way of their life. iPhone 3G is a lifestyle item which make it ‘the most wanted’ item for this particular group.

1. Benefits and Promises

Benefits:

  1. 3G gives iPhone 3G fast access to the Internet and email over cellular networks.
  2. You could surf the web, download email, get directions, and watch video even you have a call.
  3. User friendly
  4. Luxurious Edgy design, it makes iPhone look simple and elegance at the same time.
  5. Software update. It enables users to easily update their iPhone 3G which contains many bug fixes and improvements.
  6. Applications store with more than 10.000 choices. Some applications are even free.
  7. We could browse anywhere by access the web with Safari whether you are connecting. via EDGE, faster 3G, or even faster Wi-Fi. iPhone 3G automatically connects users to the fastest network available.
  8. iPhone 3G have new support for Microsoft Exchange ActiveSync it makes possible to push email that arrives automatically.
  9. With built-in dictionary inside it makes iPhone 3G could predicts and suggests words as you type, making it fast and easy to write email.
  10. The stereo headset that comes with iPhone 3G features a high-performance microphone.
  11. Able to see email attachments in their original format, not as stripped-down versions. rotate, zoom, and pan in more than a dozen standard file and image formats, including PDF, Microsoft Word, Excel, and PowerPoint.
  12. Provide maps with which combines GPS, Wi-Fi, and cell tower location technology with the Multi-Touch interface.
  13. iTunes application specially designed for iPhone 3G. It enables users to enjoy songs, TV episodes, movies, podcasts, audio books, and ringtones.
  14. Apple provide AppleCare Protection Plan for iPhone 3G . Apple provide up to two years from the original purchase date servies such as repair coverage, battery, iPhone Bluetooth Headset, and included accessories.
  15. Javascript can be use to protect iPhone 3G from Hacker.

Promises

  1. Updating the appliations. Apple will provide more applications to enhance the iPhone 3G functions. Some will be free while others must be paid.
  2. Provide full services for iPhone 3G through AppleCare Protection Plan and in Apple’s galleries.
  3. Provide opportunity for iPhone 3G users in Indonesia to make their own applications and can be uploaded in Apple’s website. They will get money from the number of download for the application.

2. Reason Why & Support

Why people should buy iPhone 3G:

1. iPhone 3G Is the latest phenomenon to sweep across the technology industry. It ranks no.3 as gadget of the year in 2008 by Time Magazine and it is the only mobile phone to be granted the honor.

2. iPhone 3G is irreplaceable. It is simple, spare and elegant with the best interfaces in the world.

3. iPhone 3G application store at Apple’s website. It offers a wide-range of applications from games to business, education to entertainment and productivity to social networking.

Supports:

1. iPhone 3G will be supported by all Apple’s gadgets and applications. From iTunes, iPod, Mac, etc, iPhone 3G can be synchronized with all of it.

2. Iphone 3G as Smartphone will be supported by high speed connection from XL which offers high mobility experiences with phone, email, messaging, organizer, web browsing, and many more with unlimited connection, everyday for 24 hours.

3. Indosat as number two largest telecommunication company in Indonesia will provide a nationwide and International coverage.

4. Unlimited internet access.

5. Applications update from all around the world. iPhone 3G will provide thousands of applications made by peoples around the world. It gives unlimited options for iPhone 3G users to download applications they like to be installed in their iPhone 3G.

6. Wordpress for iPhone 3G. It’s an Open Source application that lets people write posts, upload photos, and edit WordPress blog from the iPhone 3G.

3. Media Use and Where

The main media that will be use for promoting the iPhone 3G is the internet. The media in internet that will be use is:

· Apple’s official website.

· Social networking (Facebook, MySpace, Friendster, Twitter, etc).

· Photo Sharing, for example: Flickr.

· Unofficial Apple’s forums such as Kaskus, etc.

· Blogs

· Youtube

· Online banner in MSN and Yahoo! Messenger, Kompas.com, Detik.com.

· Mailing List.

For the offline promotion, the iPhone 3G will use print advertising in several media which is:

· Newspapers: Kompas, Media Indonesia, Seputar Indonesia, Jakarta Post & Jakarta Globe.

· Magazines: T3, Cellular, High End, High End Teen, Indonesia Tattler, Globe Asia, National Geographic Indonesia, Business Week Indonesia & several mobile phone magazines.

· Banner in ibox stores.

By integrating the online and offline marketing campaign, the aim is to create word of mouth promotion. Not to forget Apple’s evangelists, these people can boost the campaign.

It is still needed to boost the introduction stage of the iPhone 3G consider there is some misunderstanding for peoples in Indonesia about the original iPhone 3G from Apple and not to become confuse with the iPhone 3G from the black market. The big promotion will surely create brand awareness. All of this promotion will be conducted in the first two month of its launching. After that, we believe the word of mouth will be enough to boost the sales.

4. Tone & Manner / Executional Tactic

Thomas L.Friedman in his book, The World is Flat explained that the world right now is entering what he called as the globalization 3.0. In the first globalization (globalization 1.0) it is about nation to nation relationship such as export import. The second globalization (globalization 2.0) it’s about corporation relationship, for example Coca Cola and Starbucks. The third globalization (globalization 3.0) it’s about individual globalization. The power of individual who can change the world by using internet as their medium. Therefore, every corporation should really consider this as an opportunity to use the power of individual to support the product itself.

The power of individual can also be seen by The Person of The Year Award by Time Magazine 2006 which is ‘You’. Time choose us, the people as person of the year because the power that every individual have to change the world, the perception of others and even the government or organizations policies.

Iphone 3G will act as a facilitator. This means that iPhone 3G will position itself as the media for business, entertainment, education, etc. In other word, iPhone 3G will bring out life. It will make life easier, fun, and more organized at the same time.

The aim is to create community driven product. Means it will be a people’s product, not Apple product anymore. Apple just acts as a facilitator for peoples around the world to communicate with each other.

iPhone 3G users in Indonesia will also provided by iPhone 3G community. This community activity will focus on the internet. While there will be gatherings for iPhone 3G users in some months.

In the end, the marketing campaign purpose is to create iPhone 3G cult in Indonesia. This means the power of iPhone 3G in International world must be adopted in Indonesia as well. By doing this, it will create evangelists for iPhone 3G in Indonesia and the rest is just customer to customer promotion.

The tactic is to make sure that iPhone 3G users become prosumers. Means they are not only consumer but also producer at the same time. They could become producer by:

· Promoting iPhone 3G by word of mouth, offline or online.

· Create applications for iPhone 3G.

· Participating in Apple’s official and/or unofficial forums.

All of the effort promoting the iPhone 3G will be based on fulfilling the 6 social needs (research by Communispace) which is:

1. Expressing personal identity.

2. Status and self esteem.

3. Giving and getting help.

4. Affiliation and belonging.

5. Sense of community.

6. Reassurance of value and self worth.

By looking at the tactic with the media coordination, the all 6 social needs have been fulfilled by the campaign. Using iPhone 3G will surely make people feels personal and they will be the part of Apple’s big family. The official forum and thousand of applications will help the users if they have any questions. The most important part is the value of using iPhone 3G. Whoever use the iPhone 3G will feel like they are the cool society, cutting edge, sophisticated people and part of the Apple’s phenomenal world.

iPhone 3G is a mass collaboration product and Indonesia too should take the part in this product. It opens a very wide opportunity for every Indonesians to create applications, join conversations in forums, write their experiences in their blog, and any other things they could do as an individual.

5. Result

The result expected from the Iphone 3G campaign divided in to three categories:

1. Market Share

iPhone 3G in one year are expected to get around 1% of the market share. The aim is not to become market leader, since iPhone 3G never becomes market leader in the rest of the world. But what is important, and also the values that iPhone 3G and Apple believes is the number of people who is loyal to them.

Market share by 1% is calculated by looking at iPhone 3G number one competitor especially in Indonesia which is the Research In Motion Blackberry. The RIM Blackberry already obtained 0.04% market share in Indonesia, therefore we believe that the iPhone 3G would not be impossible to overcome them.

1. The Image

The aim for image that need to be build is that iPhone 3G is ‘the highly sophisticated with high speed technology mobile phone’. The image can be build by position iPhone 3G in Indonesia as smart phone for smart people. Means by using iPhone 3G, the customer are part of people who appreciate the value of time, simplicity of life and enjoy the sophisticated lifestyle. They are the part of Apple’s big family.

The differentiation of iPhone 3G can be seen by Apple target audience. They targeted a high mobility peoples by stated that iPhone 3G is not only had a high connection internet speed, but also have emotional connection with the users.

2. Sustainable and growing number of iPhone 3G sales and evangelists.

Which means that after the big promotion, there will be no need to promote the product anymore massively. The iPhone 3G will focus on building relationship and goodwill with its entire existing and potential user to make sure that they could spread the good ‘viruses’ of the product. Therefore it will create a circle of loyal customers and will get wider each day.


Key Competitors

1. Blackberry Bold Blackberry Bold

smartphone embodies elegant design, without sacrificing the features or functionality expected from a premium smartphone. In Indonesia, it’s already become the phenomenon in the world and should be considered as number one competitor.





2. Blackberry Strom

This new blackberry is the only one that uses full touch screen without keyboard. Not only provided by Blackberry’s push email, Blackberry storm also provide multimedia services that can be enjoyed in a bigger screen than iPhone 3G. Blackberry storm targeted business people, especially Blackberry loyal customers.



Pal Pro

Palm Treo Pro is the newest smart phone from Palm. Palm Treo Pro advantages is that they are using very personal applications for their user. It was created for high mobility peoples and using the positioning as ‘perfectly balanced smart phone for work and life’.







HTC Touch Pro positioning themselves as ‘the most powerful and feature packed phone ever on the earth’. DHTC Touch Pro uses Windows Mobile 6.1 Pro which make s customers able to downloaded free software from Windows Mobile. This brand targeted executives.









Samsung Omnia i900 was created to win over iPhone 3G especially to fill up iPhone 3G unsatisfied features such as video recording, FM radio, etc. Besides that, Samsung Omnia i900 are using multimedia features which supported by 3G technology and free downloaded software from Windows Mobile. Samsung Omnia i900 targeted high mobility peoples with the tagline ‘more than a phone’.





The advantages that this brand have is the 8.1 megapixel cyber shot supported by GPS, Google Maps and easy to upload photo or video for bloggers. Sony Ericsson believes that C905 is the most advanced camera phone with high speed internet connection for high mobility peoples, could be executives, bloggers or even journalist








Nokia positioning for N96 is user friendly usage and interface. Nokia stated that this brand is ‘the most user friendly smart phone’ which targeted more general audience not only for executives.




Sony Ericsson Xperia X1 uses Windows Mobile with features that still under the HTC Touch Pro. What makes this brand is also became ‘a hot item’ is that Sony Ericsson Xperia X1 is lighter and had Q WERTY keyboard which is very easy to use compare to the touch screen. This brand targeted high mobility people.


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