Media and Marketing Report- May, 2010

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A Report into the potential success of the ‘Cocktail Application’ for the ‘iPhone’ from the ‘Apple’ Company

Compiled by: Katie North

For the Reading of: ‘Keep Safe’ Company

Date of Submission: August 2010

Summary

This new ‘iPhone’ application will be on sale in November 2010 and this report has demonstrated the positive appeal of the ‘Cocktail’ Application towards the target consumers of 18-27 year-olds. This application will monitor the number of registered swear words in a single SMS message and if there are over five uses of abusive language then the application will automatically save the message in an application box until 8:00am the following morning when the message can be re-sent. This findings of the investigation show that the application has been positively received by the target demographic, however the product showed several weaknesses such as the price so it was recommended that the price should be lowered to appeal to students and young adults but the number of monitored swear words should be kept to five per SMS message.

Contents Page Number

Summary

  1. Terms of Reference 4
  2. Introduction 4
  3. Contextual Analysis 4
  4. Business Analysis 5
  5. Methods of Investigation 6
  6. Analysis of Information 6
  7. Conclusions 7
  8. Recommendations 7
  9. Appendices 7
  1. Terms of Reference

1.1 The objective of this report is to document and apply theory to a product called ‘The Cocktail Application’ in order to pitch the idea to the communication and marketing revenues who may show interest in the product in terms of potential productivity.

1.2 This report was requested by the company ‘Apple’ to be received by the company ‘Keep’ in regards to their their consideration of the new application to this product at an unspecific date.

1.3 This report will also demonstrate the appeal of the application to the target audience and identify any positives of weaknesses of the product so recommendations can be made in order to adjust the product to the appeal to the consumer.

  1. Introduction

2.1 This external report will highlight the potential productivity in a new product for the ‘iPhone’ company. This product is called the ‘Cocktail Application’, which will help to control text messages sent while under intoxication. This application will count the number of registered swear words in a single short message service (SMS) of an average of 160 characters. If the number of registered swear words is over five then the phone will automatically save the text in an inaccessible saved box on the phone and keep it until the 8:00am the following morning when you can send it again. ‘Keep Safe’ is an organization to minimise the damage caused by alcohol and binge drinking. This organization primarily serves to protect the health of those involved in drinking, however, it also helps to product the personal lives of those involved.

  1. Contextual Analysis

3.1 Communication via mobile phone has been on the increase since 1997 and SMS messages have become increasing popular as well for all age demographics but particularly in the youth age brackets.

3.2 Alcohol and binge drinking has been on the increase, especially in the teenage brackets and this is displayed in social networking groups like Facebook, with forum groups such as ‘When drunk, my phone should say “Are you sure you want to send this text?”’ and ‘Drunken Text Appreciation Society” with over two million fans. These groups show that many people text while under intoxication and other groups can show the damage these texts can do. This also gives an indication to the target consumer and demographic.

3.3 This application to the ‘iPhone’ monitors the most offensive swear words in a single text of 160 characters. This is a good margin of business as there are 4.1 billion mobile phone users in the world and of these, there are 17 million ‘iPhones’ worldwide.

3.4 The ‘iPhone’ has been in popular demand due to the advertising and viral messages via social networking sites and so an application like this could help keep social bonds and relationships by saving the abusive text messages in the application box until 8:00am the follow morning.

  1. Business Analysis

4.1 Marketing

4.1.2 In terms of the product, this application will improve the tone and reputations of customers as well as their personal relationships. Customers may even be interested in the product to see how it would work so it is satisfying the curiosity. In terms of the Customer Life Cycle, the need for technology has become imminent and the ‘iPhone’ has become increasing popular as it is one of the newest phones on the market.

4.1.3 The price of the application for the ‘iPhone’ will be £4.99 in the UK and this is decided from the range of applications from the ‘Apple iPhone’ website, which start at £0 to £15. Depending on the popularity of the application, we could start with an introductory price offer of £2.99.

4.1.4 This application will be sold online in the application store by the ‘Apple’ company and this is where the marketing and promotion will be made as well.

4.1.5 In terms of promotion for this product it is appealing to students and young adults. This will help promote the idea of unity because of the social networking sites offer forums that help customers talk as they’ve all SMS messaged someone while under intoxication. The second part of the promotion is the symbol, or logo, that all ‘iPhone’ applications have to distinguish their action, however the idea of using an alcoholic beverage to appeal to all people is difficult due to gender differences so we have decided to use a cocktail glass because binge drinking is proved to be on the rise in young females. We have also added in two people in the glass in order to the promote the idea of unity and friendship, which is important to the younger generations and so this application is catering to their needs. We will also be making several viral articles and posters to promote the idea that it can help consumers. There have already been several advertisements seen for the previous applications for the ‘iPhone’ and so we can add in ‘The Cocktail’ application but we can extend the advertising to other forms of media including radio, cinema advertising and magazines, focusing on the advancements of technology. There are several of these examples which are focused on the youth culture and include product that will be of interest to them. Other promotional ideas include demonstrations of this application in trade marketing and in registered ‘iStores’.

4.2 Strengths, Weaknesses, Opportunities and Threats

4.2.1 The internal analysis of the strengths of the ‘Apple Company’ are that there is a strong company image and the brand is already prominent. They also have a range of different product that are popular, especially among the younger generations, such as ‘Apple Macs’ and ‘iPods’. ‘Apple’ also offers exclusive contracts internally to avoid competitions from other companies.

4.2.2 In terms of the internal weaknesses of the ‘Apple’ company, there is not much access to natural resources, which is a major environmental issue at the present time. Secondly the position of the ‘Apple’ company could be in decline on the product life cycle, or possibly towards the end of maturity.

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4.2.3 In an external analysis, there are several opportunities of the product and the ‘Apple’ company. There are several social changes as more children are purchasing phones at the moment and there seems to be a higher desire for the more high-technological the phone is. There are also many business opportunities as many mobile phone outlets sells the ‘iPhone’ so there is always productivity.

4.2.4 The threats in the external analysis are that in the economic climate, the recession is taking hold of the economy and so the ‘iPhone’ could be considered expensive. There is also competition from other companies such as ‘Blackberry’ which have increased sales.

4.3 Political, Economic, Social, Technological, Legal and Environmental Analysis

4.3.1 In the political analysis of the product, there is a limited product labelling analysis as it will only be available on the website for ‘Apple’ in the ‘iPhones’ online application store. There is also the possibility of support from the Government in order to combat problems with a binge drinking culture. However, there is also risk of a freedom of speech impairment as the application will stop the SMS message of being sent.

4.3.2 In an economic analysis, America and the United Kingdom are in a recession but the need for technology is still imminent. This can also be a positive feature as the recession is economic growth rate and in the business cycle stage, the recession is followed by a recovery and there have already been a considerable amount of sales of the ‘iPhone’ in the wake of the economic recession so sales may continue to rise.

4.3.3 The social analysis of the product is that it is aimed at student and youth adult demographics and it can be used by the different classes as the ‘iPhone’ is used a lot in business and in lifestyle changes but has begun to tap into the youth market with popular and ‘fun’ applications such as games and social arrangement building. Binge drinking is still considered a problem in youths so this product will be limiting the damage caused by intoxication. This product can also be used as a cultural device because of the use of social networking sites, which present a social unity in problems.

4.3.4 In terms of technological analysis, technology is used in marketing with the use of social websites such as facebook. It is also obvious that technology is diffusing into different applications such as lifestyle so there is a demand for applications that will help with personal lifestyle. ‘iPhone’ applications are also very successful in different aspects of personal and social lifestyles, such as maps and taxi numbers. The logo of the application has mutual colours and a picture of a cocktail glass with two persons in it to convey the aspect of friendship. This logo is visible on the title page of the report. The ‘iPhone’ is also in a global market and so can be used in different cultures to support its advancement.

4.3.5 In legal analysis, the application does not breach any health and safety laws as it is trying to elevate the number of problems caused by binge drinking and many government policies are trying to combat binge drinking, especially in the youth culture.

4.3.6 In environmental analysis, the application is not a new physical product and is simply an application added to the ‘iPhone’ so there will be limited waste and environmental issues. At this time, there are many concerned about the effects of global warming and so, as this application is concerned about the effects of drinking, we can try to remind consumers to recycle bottles, both plastic and glass.

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5. Methods of Investigation

5.1 Response to product will be tested on the demographic and the investigation will be conducted to see if the application is suitable towards the demographic and if it is easy to use.

5.2 Interviews will be conducted to officially correlate the response towards the product and see if the customers will agree with the price offered and the technological uses of the application.

6. Analysis of Information

6.1 The tested demographic was on a range of ages from 18 to 29 year-olds and there was a positive response from the application. The interviews found that many agreed on the concept of saving the texts in the application box until the morning and agreed that didn’t infringe on the freedom of speech acts as the participants had to switch on the application and select the hours in which the application monitors the amount of swear words.

6.2 Many agreed with the concept of monitoring the amount of the swear words in the single SMS message.

6.3 Some disagreed with the price but then agreed that in the range of prices in the application store on the ‘iPhone’ website that this application was the appropriate price. However, some reported that they would not buy the application if it was over £4.

7. Conclusions

It is concluded that the productivity and response to the new ‘iPhone’ application can be summed up in three conclusions:

7.1 The price was too much to pay for an application that is aimed at students and young adults.

7.2 Participants agreed that the application did not infringe on any freedom of speech acts as the application does not delete the messages but simply saves them in an application box until 8:00am the following morning when they can be saved again and furthermore, the application has to be switched on by the user so it is a personal decision.

8. Recommendations

It is recommended that:

8.1 The price will be lowered from £4.99 to £3.99 to appeal to the student and youth adult demographics.

8.2 The application will be automatically updated regularly in order to keep up with new terms of abusive language and slang.

8.3 The application will also be kept to five swear words in a single SMS message before the message is saved as some references of abusive language can be used in simple non-threatening conversation and colloquialisms.

1Katie North Communications and Marketing Portfolio

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