Marketing Research Final Presentation

iPhone

Alex Negle

November 31st 2011

Table of Contents

• Overview: – Executive Summary

– Purpose

– Methods

– Findings • Secondary Research

• Primary Research – Qualitative

– Quantitative

– Conclusion

Executive Summary

• The iPhone had 80% unaided awareness in the online survey and 90% in the paper survey

• Ease of use was the most important factor when it came to smart phones

• The iPhone’s weakest quality was affordability

Purpose

• Information found while doing this research is used for Marketing Research (BUS 1535)

• The Information was collected to study consumers attitudes towards the iPhone

Methodology

Type of Research

• Secondary

• Qualitative

• Quantitative

Method Used

• Online Databases

• Personal Interviews, (5) Focus Group

• Online and Paper Surveys (10)

Findings: Secondary Research

• Headquarters

– Cupertino, California

• Top Competitors:

– HTC

– Research in Motion

– Motorola

5 Year Sales Trends Revenue 2006 2007 2008 2009 2010

Industry (mm)

$169,082 181,937

189,474 191,501 196,044

Apple (mm) $19,315 24,578 37,491 42,905 65,225

iPhone (mm)

$6,742 13,033 25,179

HTC (mm) $104,816 118,579 152,558 144,880 275,046

Android (mm)

$64,694

RIM (mm) $6,009 11,065 14,953

Motorola (mm)

$31,810 23,373 17,099 11,050 11,460

Sources: investor.apple.com/financials Ibisworld.com (NAICS Code: 51332 wireless telecommunications carriers in the US HTC.com RIM.com Motorola.com

5 Year Sales Trends

0

50,000

100,000

150,000

200,000

250,000

300,000

2006 2007 2008 2009 2010

Industry

Apple

HTC

Research In Motion

Motorola

Sources: investor.apple.com/financials Ibisworld.com (NAICS Code: 51332 wireless telecommunications carriers in the US HTC.com RIM.com Motorola.com

Mean and Median

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Apple HTC RIM Motorola Industry

37,491

152,558

11,065 17,099

189,474

37,902

158,575

10,675 18,958

151,825

Median

Mean

Market Share

25%

33%

29%

13%

Market Share

Apple

HTC

RIM

Other

www.ibisworld .com

Qualitative Data: Personal Interview (unaided)

• 4 – iPhone

• 1 - Droid

Qualitative Data: Personal Interview

• Summary – Positives:

• Simplicity – “…because of its simplicty and how its better than every other smart phone.”

• Ease of Use – “its got everything I do electronically in one place.”

• Stylish – “…the difference between the Droid and the iPhone is the quality of the

product.”

– Negatives: • High Price

– “Its pretty expensive, I just can’t go out and get one right now.”

• High Contract Price

Qualitative Data: Personal Interview

• Reasons to buy the iPhone – Simplicity

– Quality of Product

– Versatility

• Reasons to not buy the iPhone – Do not already have a smart phone

– Price

• What can Apple do to better the product? – Make it more affordable

Qualitative Data: Focus Group

• Summary – Positives:

• Easy of use • Celebrity Appeal • Brand Image • Geared for fun

– Negatives: • No 3G hotspots • No BBM • Boring shape • Susceptible to breaking

Qualitative Data: Focus Group

• What would you do to change the product?

– Slide out Querty

– Fear of breaking screen

– Differentiate from Ipod Touch and iPad

• “If you have an iPhone why would you buy an iPad, or if you had an iPad why would you buy an iPhone…”

• “I feel like they keep making the same products.”

Quantitative: Traditional and Online Surveys

• Sample Size Estimate – 2010 US population: 220,958,853

• Ages 18 – • Male and Female

– 95% Confidence Interval – +/- 5% Error

• Sample Size Needed: 384

www.census.gov Creative Research Systems

Unaided Awareness

90%

70%

50%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Apple Droid Blackberry Samsung

Awareness

Awareness

Aided Awareness

92%

93%

94%

95%

96%

97%

98%

99%

100%

iPhone Droid Blackberry

100% 100%

95%

Percentage

Percentage

Have a Smart Phone

85%

15%

Currently Own a Smart Phone

Yes

No

Psychographics

3

2.9

4.1

3.7

0 1 2 3 4 5

Artistic

Conservative

Use Cell Phones Often

Use Social Media Often

Average

Average

Constant Sum (Averages)

15.5

32.5

16.5

23

11.5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Constant Sum

Attractive

Affordable

Stylish

Ease of Use

Image

iPhone Perceptions (1 being the highest, 5 being the

lowest)

2.3

3.19

2.7

2.49

0 0.5 1 1.5 2 2.5 3 3.5

Prefered

Superior

Reasonably Priced

Easier

Average

Average

Rank Order (1 being the highest, 5 being the lowest)

3.55

2.36

1.27

4.82

3

0

1

2

3

4

5

6

Average

Average

The iPhone was the most preferred on paper with mean being 2.3

Average Expected Prices

• iPhone 4

– $293.3

• iPhone 3G

– $135.1

Brand Differentiator

2.74

3.89

4.18

4.5

3.14

3.53

3.69

4.2

3.5

3.1

3.25

3

0 1 2 3 4 5

Price

Ease of Use

Stylish

Fun

Blackberry

Droid

iPhone

Demographics: Gender & Age

16

3

0

2

4

6

8

10

12

14

16

18

Male Female

Responses

Responses

1

2

7

0

1

2

3

4

5

6

7

8

19 20 21

Age

Age

Majors Surveyed

• 2 Education Majors

• 4 Business Majors

• 1 Geology Major

• 2 Engineering Majors

• 1 Communications Major

Demographics: Income

0 0

21%

31%

41%

Income

Under $15,000

$15,000 - $24,999

$25,000 - $34,999

$50,000 - $74,999

$75,000 - $99,999

Product Positioning Map

Conclusions and Implications

• The iPhone has outstanding brand awareness

• General attitude is that its too expensive • Believed price - $293

• Actual price - $200

• Ranked significantly Higher in all other category motivators

Appendix

Interview 1 Interview 2 Interview 3

Interview 4 Interview 5 Focus Group

Appendix

• Online Survey

– https://new.qualtrics.com/ControlPanel/?ClientAction=ChangePage&s=UserSurveysSection&ss=&sss

• Smart Phone Survey Results

• IRB Consent Form

• Online Survey Report

Questions?