In this research report a new product marketing idea for iPhone has been discussed which will add value to the company. The marketing plan is to integrate iPhone with new kind of application development that will provide unique distribution platform for utility based applications similar to the iTune stores. The new application platform will be called iTrendz which will offer exclusive distribution of high end apparels to growing fashion conscious and trendy audiences that have a large dominating presence in the market. The iTrendz will distribute increasingly popular fashion labels and will suggest fashion tips, celebrity fashion updates and lifestyle news on this utility based application. In this marketing plan report the marketing strategy for iTrendz is described by identification of their target markets and positioning strategies. Also the marketing mix elements for iTrendz are presented which includes description of their product offering, product strategy, pricing strategy, distribution and promotion strategies. At the end the extended elements of marketing mix i.e. people, process and physical evidence for iTrendz have been presented.
There are various aspects that should be included in a marketing strategy such as segmentation where the current and prospective customers of a product/service need to be identified and grouped into particular segments characterised by their needs. It is significant to conduct market research to identify customer segments so as to meet their needs more effectively and successfully than competitors and hence segmentation is key aspect of marketing strategies (Kumar, Rahman and Kazmi, 2013). The other aspect is targeting and positioning where the main aim of the marketing strategy should be to draw attention of the customer segments as per their needs and hence marketing strategies should be developed to position and target the strengths of the product that matches most to the needs o target customer segments so that products becomes most valuable offering for them and profitable for business. The next aspect is promotional tactics where the marketing strategy is developed in a way to communicate to the target market about the product offerings and their benefits that can meet their needs so in promotional tactics marketing activities to reach to customers are planned like advertising, digital marketing etc (Baker, 2016). The next aspect is monitoring and evaluation of the effectiveness of marketing strategy so that actual performance of the strategy can be identified which helps to control the elements of marketing strategy and also plan future prospects. This can be done through customer analysis methods such as questionnaires, surveys, analysis through focus groups and examining customer’s online behaviour. The final aspect is developing a marketing plan to execute the strategy and constantly reviewing so that it can be updated as per changes in customer needs and attitudes.
Market Segmentation: as the majority of fashion marketplace revolves around female consumers so iTrendz will segment primarily women consumers. In 2016 the population of women was approximately 50% of Australian population which has grown to 12, 265, 459 in 2017 nearly 50.2% of total population. Women comprise 46.2% of Australian workforce and as this figure continues to grow in future it means more demand of her time to balance work and family. Research has shown that top reasons that are deciding factors behind purchases made by women are reasonable price, quality merchandise, convenient shopping, excellent customer assistance and quick and easy to shop. So iTrendz will segment the exclusive women consumers who are internet savvy and have less time to go for shopping, so iTrendz will provide them a unique solution by providing a distribution platform for fashion apparels and accessories which will be integrated with their iPhones so that they can easily search through numerous options and place their orders whenever and wherever easily. Also iTrendz will keep them updated with new fashion trends, lifestyle news and give them some personal fashion recommendations.
Target market Strategy: Australia is an emerging Fashion market in economic prospects so iTrendz application distribution platform will first be launched across Australian markets targeting women customers. Women in age group of 29-45 years are professionals and average of these women comprise of affluent income of 60,000 ASD. The customers of iTrendz will be made aware of unique collection of fashion apparels through updated application software that will give customers access to a large collection of fashion labels in various upscale boutique stores. The iTrendz will be like a utility application that will distribute popular brands by integrating with ecosystem of iPhone.
Primary customer: the primary customers of iTrendz will be female professionals who have taste for classic and trendy luxury fashion with house hold income of over 60,000 ASD. Her characteristic profile:
· Demographics: Professional females Age 29-55 years
Income over 60,000 ASD
Highly educated and fashion conscious
· Psychographics: expects value for money and willing to shell out extra money on quality, expects personal style assessment and more time to understand what suits her personality
· Shopping Behaviours: spends more than 10,000 ASD/year on apparels and accessories, prefers exclusive boutiques or style studios, looks for innovative, vibrant colours, patterns and seasonal design and enjoys quality over quantity
Customer needs and expectations: the female customer’s of iTrendz enjoy shopping in boutiques and designer studios and has knowledge about current trends and fashion designers but have less time to go for shopping so iTrendz will give them a unique solution where they can search for various exclusive fashion collections from top labels through unique distribution application of iPhone via iTrendz which will be integrated with ecosystem of iPhone. The women customers will have various options to picks up contemporary and classic apparels and accessories throughout the year. iTrendz aims to acquire a big share of their wardrobe and budget. These fashion conscious women professional would be able to shop at iTrendz stores and browse through apparels and items that would appeal her interests. The women customers can even expect convenience and enjoy personal assistance through these application platforms. She can expect fun shopping evenings and can enjoy receiving discount alerts and flash news. She can expect fashion clothing that creates individualism and style statement.
The most relevant theory on product positioning is called STP (Segmentation, targeting and Positioning) theory where market segmentation defines classifying or grouping different types of customers into various segments by identifying their common needs and then responding with different sets of marketing mix strategies which offers different opportunities to satisfy needs of customer segments. These segments are characterised by demographic, psychographic, behaviour and geographic attributes. After segmentation of market into different customer groups targeting is done through developing strategies that are suitable to specific target markets and consumer groups. Such as undifferentiated targeting, concentrated targeting and multi-segment targeting (Khan, 2013) The final stage of STP theory is positioning where awareness and perception of product is created in the mind of customers by communicating to them the experiences that they can have if they purchase a product. In order to stimulate and influence the product image in the customers mind strategic promotional activities are chosen by understanding competing products and benefits sought by target customers.
The positioning approach for iTrendz that can be considered is Apple’s image as a maker of user friendly devices and innovative applications that can be positioned to improve lifestyle of premium consumers who are wealthy, innovators and possess well paid jobs. iTrendz can be positioned as a lifestyle product which can change the fashion experience of consumers by giving them a desirable access and distribution platform where they can easily look for popular fashion labels and shop with desirable affordability (Toften and Hammervoll, 2013). This user friendly premium positioning will be suitable for iTrendz as with increase in income, affordability more consumers can afford iTrendz applications of iPhone in future thus pushing sales by targeting a larger fashion conscious consumer who has money but less time so these consumers who seek for trendy fashion and care for lifestyle image would buy iTrendz because of its popular image that is associated with being an Apple product without haggling over price as it would be secondary.
The unique distribution application platform of Apple will be integrated with the ecosystem of iPhone called iTrendz which will be an exclusive fashion application that will house exclusive designer lines and contemporary clothing with some increasingly popular labels such as C/MEO Collective, Maurie & Eve, Aje and Maticevski. Along with these Australian lines it will feature some American and European labels like Weekend MaxMini and Language. The iTrendz application will also house fashion accessories labels such as Estelle De`ve`, Amber Sceats and Rachael Ruddick.
· C/MEO Collective
· Maurie & Eve
· Weekend MaxMini
· Estelle De`ve`
· Amber Sceats
· Rachael Ruddick
· Local Designer Jewellery
Some of the key lines are detailed below:
C/MEO collective features experimental fashion designs to build its unique esthetics inspired with fundamental prints, shapes, premium fabrics and silhouettes. The inventive designs and creations run deeper than fashion lines and trends and inspire good life. The range is popular among style enthusiasts and celebrities which empowers the motives of designers to experiment and take risks to create wearable innovation.
Aje is a fashion label featuring raw beauty and femininity crafted by designer duo Adrian Norris and Edwina Robinson in winter of 2007. The label arch’s urban and coastal style with creations focused around handlooms and hand women fabrics, hand sewn clothing’s and hand painted designs. It has featured exclusive edge clothing’s that appeals a woman’s tough femininity and individualism.
Weekend MaxMini features essence of good quality and classic Italian fashion crafted by designer Achoo Marmet. The label was established in 1951 and has a wide upscale market presence especially in US markets. Currently they are focusing on smaller boutiques and Trendz will feature their classic styles collections in Melbourne, Australia.
Estelle De`ve` features jewellery line that is unique and timeless. It was launched in 2008 and is a popular global label. The collection features delicate brass and gold architectural casts and designs including crystal pearl lines. The label is gaining fast progression with its trademark Sci-fi inspired jewellery that is a fusion of classic style and futurism.
iTrendz fashion utility based application of iPhone offering will include not only featuring distribution platforms for increasingly popular fashion labels but will also provide exclusive style assessment of customers based on their unique personality with a nominal fee and free with cumulative purchases of above 300 ASD. The assessment will be made by top celebrity fashion professionals based on customer’s personality type and clothing styles that are best on her. The customer’s will also be assisted by sales associates or style concierges of top fashion labels who are expert and competent celebrity consultants and will suggest customers in wardrobe planning and personal fashion tips. Through the professional fashion experts and their competency talents the customers will be appealed and convinced in buying the apparels and services from iTrendz application platform. Adequate use of associates will be done for customers' fulfilment. By assessing the feelings and the interest of the customers the services of iTrendz will be developed by the boutique managers in correlation with application developers. Different offers and extra utilities will even play lucrative role in appealing prospect customers and attracting repeat purchases.
The product strategy dimension of the marketing mix emphasizes on the product/services of the company for the prospect customers. By offering adequate and compelling innovation and distinctiveness approach within the product distribution platform Apple will offer a unique distribution application based on utility feature named iTrendz that will be providing exclusive upscale fashion products and services to the customers of iPhone through integrated ecosystem between iPhone and popular fashion labels (Pisano, 2015). An exhaustive array of fashion products and style assessment services will be included within the fashion product distribution platform of iTrendz. To meet with seasonality fashion issues iTrendz 30% merchandize distribution platform will include fashion and wardrobe accessories. In addition to merchandize, services like personal shopping and wardrobe planning will be provided to customers of iTrendz. In future, there will be expansion planning of services like customized ordering through appointments where customers will enjoy privilege shopping experience from the comforts of home or off boutique location. Style Associates would visit customers place to provide their fashion needs. It will be huge benefit product/service mix as iTrendz would enjoy full popularity of iPhone and will be largely popular like other application systems similar such as iTunes.
The price is established for maximizing the gains from selling of the products or expanding the profits over each product that is being sold to the customers. Compelling pricing approach will result in to enlarging the market size and volume. The prices are also defined as the impression related to the products and their worth as valuable proposition. The pricing approaches influences on the perception of the customers during the purchase process of the product (Martins, Rindova and Greenbaum, 2015). There are various pricing approaches being applied by the companies. iTrendz pricing will range between medium to high pricing and will provide high quality women apparel and accessories distribution through iPhone ecosystem application platform which will be integrated with various upscale and increasingly popular fashion labels. Initially iTrendz will be focusing on penetration pricing approach for acquiring customer’s attention, interest and market size premium profit. On gaining the market share the iTrendz will lower marginally the prices of the products. The average prices will be around 100 ASD to maintain 20% profit margins. iTrendz will also negotiate to obtain average 65% retail markup for all selections.
The distribution strategy dimension of the marketing mix focuses on the location or distributing network from where the products/ services are distributed to the customers. It also serves as the distribution point for the products. iTrendz will use digital distribution platform strategy to distribute fashion apparels and accessories online over the web apps and mobile application. Apple iPhone will integrate with popular fashion labels, suppliers and will tie together with online stores and fashion management software to drastically simplify the entire online fashion shopping and browsing experience to build a dominant distribution application based on utility of fashion retailing dynasty.
Prospective customers can be reached out with compelling promotional approaches. The promotions can be made more compelling by the promotional mix or marketing mix strategy. Commercials in the social media, print media, digital media and television are effective sources for attracting mass market. iTrendz will associate with local publications and fashion magazines to generate PR and shopping in neighborhood. It will also have word of mouth promotion strategies to attract women across Australia and suburbs who are savvy for digital shopping and use applications (Sinapuelas, Wang and Bohlmann, 2015). Visual displays will be made on frequent basis in locations fronts that have huge crowds to attract mystery and curiosity about new launch of app from iPhones that will revolutionize fashion retailing for promotion and distribution of latest fashion arrivals. Additionally, iTrendz will have website presence where fashion enthusiasts throughout Australia can learn more about wearable fashion, boutique and its services. Also customers would be able to book appointments for style assessments and personal shopping.
The extended marketing mix for iTrendz would be:
People: as Apple products are known to be user friendly and for premium customers so this element is vital as it will define the buying experience that customers have when iTrendz application services will be delivered to them by the people or employees which should be unique and amazing experience. So, to make this new technological application properly reachable to customer’s right technical people will be chosen who would deliver their service role and make efforts to improve customer experiences through their skills and personality.
Process: this provision of marketing mix is important to create a balance between customization and standardization of services, so the process for iTrendz will involve activities that require special attention to insure that same level of service and experience is delivered to all customers who buy iTrendz and use them. Operational support for iTrendz will be provided at any time of day and on any day and also a web design for iTrendz will be designed within this process where customer preferences will be accommodated to provide a unique experience (Bereznoi, 2015)
Physical Evidence: the layout and ambience of service delivery also makes a significant influence over customer experiences, so for iTrendz user friendly web applications will be designed which can make customers use and experience the new application. Also iPhone stores will feature exclusive demonstration of iTrendz to express the level of comfort in using this application and its attractiveness which will create a soothing appeal and interest for customers.
Thus it can be concluded that iTrendz will be a value added service from Apple which will be integrated with the ecosystem of iPhone and various popular fashion brands which will enable users of iPhone a compact service and unique distribution platform to make their shopping experience unique and comfortable. This user friendly and utility based application from Apple i.e. iTrendz will give users ease to browse across fashion apparels brands and will also give personal style advice, celebrity fashion updates, news on trends etc that will be all customized as per personality and style of individual customer. So iTrendz will revolutionize shopping experience with high end image and status of iPhone and will add exclusivity to all customers who will have their own personal celebrity advisers all endorsed in this iTrendz application.
Baker, M.J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Bereznoi, A., 2015. Business model innovation in corporate competitive strategy. Problems of economic transition, 57(8), pp.14-33.
Khan, T., 2013. STP strategy for New Product Launch-a Work in Progress. International Journal of Business and Management Invention, 2(3), pp.56-65.
Kumar, V., Rahman, Z. and Kazmi, A.A., 2013. Sustainability marketing strategy: an analysis of recent literature. Global Business Review, 14(4), pp.601-625.
Martins, L.L., Rindova, V.P. and Greenbaum, B.E., 2015. Unlocking the hidden value of concepts: a cognitive approach to business model innovation. Strategic Entrepreneurship Journal, 9(1), pp.99-117.
Pisano, G.P., 2015. You need an innovation strategy. Harvard Business Review, 93(6), pp.44-54.
Sinapuelas, I.C.S., Wang, H.M.D. and Bohlmann, J.D., 2015. The interplay of innovation, brand, and marketing mix variables in line extensions. Journal of the Academy of Marketing Science, 43(5), pp.558-573.
Toften, K. and Hammervoll, T., 2013. Niche marketing research: status and challenges. Marketing Intelligence & Planning, 31(3), pp.272-285.