Apple iMac Presented by: Dominick, Patrick, Jalal.

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Presentation transcript:

Apple iMac Presented by: Dominick, Patrick, Jalal

Objective Increase market share Increase iMac sales

History Apple 1976 Pioneered PC Market Internal & External problems lost Top PC position Apple Mac traditionally, Schools, Design shops studios.

iMac introduced Aug 1998 Speed & Style Top selling Pc 1998 Sales Volume Apple to the next level

Target Market Advanced Computer users Small & medium sized Business Wireless networking & Intranet EDI market

Alternatives Mass Personal Customization: Market Development Apple Specialty Store: Place & Promotional strategy Lease Bargain Purchase Option: Pricing & Ownership Strategy

Pros: Mass Customization Good Opportunity, capacity available Features Added or not Customers like Choices

Cons: Mass Customization Bombardments Technical Jargons Increase Operating Costs Difficult Inventory Management

Pros: Apple Store First time users test drive Sales person iMac experts On spot customization

Cons: Apple Store Limited Store locations Increase in Operating costs Costs of Training staff

Pros: Lease Bargain Purchase Option Customers wants choices After lease term sell it for salvage value Tape into lower income families

Cons: lease Bargain Purchase Option Leased computer Obsolete Warehouse Overhead Costs

Recommendations All three Alternative Pursue long & Short run Mass customization chosen feasible means BPO should have been already be done Apple store intermediate or long term plan

Marketing Mix Product & Price –Apple iMac –Features & Options –iMac 6GB Disk Storage $999 –iMac 10 GB Disk Storage upgrade $70 like competitors not $1299

Marketing Mix Promotion –Computer oriented publications –Free technical & installation support –Warranty Place –Apple web page customization offered –User friendly web page –Apple specialty store to open over the years

Future Considerations Window/Mac OP Compatibility Medium & Large Business PC corporate sales 65 million units, worth $140 billion