1. Apple iMac Presented by: Dominick, Patrick, Jalal

2. Objective Increase market share Increase iMac sales

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

4. iMac introduced Aug 1998 Speed & Style Top selling Pc 1998 Sales Volume 500000 Apple to the next level

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

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

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

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

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

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

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

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

13. 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

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

15. 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

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