Running head: MARKETING ANALYSIS ASSIGNMENTS 1
MARKETING ANALYSIS ASSIGNMENTS 6
Researching Marketing Questions
Part 1: Memorandum
TO: Senior Vice President (Marketing)
FROM: Jacob Glenns
DATE: August 19, 2018
SUBJECT: Marketing Analysis
This analysis of the market report that was presented the market analyst provides detailed insights from the data that may help in formulating an effective marketing strategy. The key information include: revenue performance for the first half between 2015 and 2016 and revenue trends over the same period. This information help in deciding whether to the organization should continue with its growth strategy or to reverse the decline.
Analysis of the company’s semiannual performance- between January and June- indicates that there was an increase of 10.18 percent in the generated revenues per day from 96,000 dollars to 105,768 dollars in 2015 and 2016 respectively. The revenues per day, domestic market, were 93,683 dollars and 85,181 dollars in 2016 and 2015 respectively, over the same period. Overall, the semiannual revenue for the year 2016 was 13,644,073 dollars with the United States market contributing 12,085,137 dollars, which is approximately 88.6 percent of the semiannual revenue. The international market contributed 1,558,936 dollars, which is 11.4 percent of the total revenue. The average gross profit per day was 8.3 percent for the six months between January and June, 2016. For the three months of April, May and June, 2016 the total revenue was 7,024,096 dollars with the domestic market contributing 6,145,978 dollars and the international market contributing 878,119 dollars. The gross profit was 6.5 percent.
With regards to customer class, commercial customers contributed 7,195,592 dollars in the six months of January to June, 2016. The revenue per day was 55,780 dollars, an increase of 5,008 dollars compared to 50,772 dollars realized over the same period in 2015. At the second place was the municipal segment with 1,634,643 dollars. The revenue per day for the first six months was 12,672 in 2016 compared to 12,034 in 2015. The international market segment contributed 1,535,905 dollars and the revenue per day was 11,906 dollars and 11,700 dollars in 2016 and 2015 respectively. The other important segments- resellers, industrial labs, government, resell, education and others- also registered increments in the revenue per day for the first 6 months between 2015 and 2016. The revenue trend for the second quarter (between April and May) illustrate that commercial market contributed 1,130,973 dollars which is 50 percent of the total revenue from the customer class segment. The international market contributed 323,990 followed by the municipal sector which contributed 263,030 dollars. Resellers, industrial Labs, Government and Resell contributed 266,066, 135,694, 50,261 and 43,464 respectively. Education and Others contributed 35,846 and 7,600 dollars respectively.
Insights for Marketing Strategy
An analysis of the customer rank section of the data shows that the company generated 1,312,868 dollars for the first six months in 2016 from the acquire. The expansion contributed a lion’s share of 7,634,424 dollars, followed by retain which contributed 3,026,592 dollars. The serve contributed 1,666,355 dollars and the non-coded contributing 3,834 dollars. The top customers’ section results for the first 6 months 2016 indicate that ABC Corporation contributed 601,368 followed by Fish Limited at 480,717 dollars. Delta Appliance, ALPS Company and Here4U contributed 424,678 dollars, 398,347 and 269,038 dollars respectively. Others are XYZ Inc, Epert Engineers, Check Gmbh, Francois and Sons and Euro Limited at 208,819, 207,066, 201,704, 186,532 and 177,660 respectively. This information may help in providing the right marketing strategy to pursue.
It is also important to perform competitor analysis and industrial analysis to build a marketing strategy. The competitor analysis provides important insights about the competitor’s marketing strategy and market share, which are important for having a competitive advantage. Industrial analysis provides important information about the prevailing trends affecting the industry’s overall performance (Kotler, P., & Armstrong, G., 2010).
Headquartered in Cupertino, California Apple Incorporation designs, produces and markets personal computers as well as mobile communication and media devices. The organization is renowned for quality products and services such as iPhones, iPads, Apple Watch, Mac, Apple TV and various operating systems like iOS, watchOS, tvOS as well as macOS (Boone & Kurtz, 2013). Other products are iCloud, Apple Pay, software applications, accessories as well as service and support offerings. The organization directly sells its products to consumers in most of its market and also uses its retail stores, online stores and direct sales force. In addition, it uses various indirect distribution channels like wholesalers, value added retailers as well as third party cellular network carriers (Kotler, P., & Armstrong, G., 2010).
Name of Chosen Product
Apple is a California corporation started in 1977. In 2017, it had more nearly 123,000 permanent employees. From the financial perspective, the company’s net sales increased by 6 percent between 2016 and 2017 from 215.639 billion dollars to 229.234 billion dollars (Kotler, P., & Armstrong, G., 2010). The company’s website is https://secure.store.apple.com/shop/account/setup/start.
General Description of iPhone 8
In 2017, the Apple Inc., introduced iPhone 8 featuring a new glass as well as aluminum design, wireless charging, augmented reality optimization and enhanced cameras plus speakers (Kotler, P., & Armstrong, G., 2010).
Boone, L. E., & Kurtz, D. L. (2013). Contemporary marketing. Boston, MA: Cengage learning.
Kotler, P., & Armstrong, G. (2010). Principles of marketing. New York, NY: Pearson education.
United States Securities and Exchange Commission. (2017). Apple Incorporation: Form 10-K. Washington, DC: United States Government Printing Office