Marketing: Apple`s iPad
INTRODUCTION Apple`s iPad launched in April 2010 and was priced from $499 for the 16GB capacity model, with larger capacity versions having higher prices. These devices have Wi-Fi capability and models with both Wi-Fi and 3G capabilities were released in May 2010. The iPad has a variety of fun ctions, including enabling owners to buy and read books and magazines. It is thus a competitor to the Amazon Kindle 2 and Kindle DX e-readers, which in April 2010 were priced from $259. CASE ASSIGNMENT Write a paper of no more than four pages in which you answer the following case assignment: 1. Prepare a table showing the different iPad models currently offered for sale and the prices being charged now for them. (10%) 2. Assume there are two types of buyers of iPads: "Light" users and "Heavy" users. "Heavy" users will use an iPad a lot. "Light" users will use it much less. You will decide what "a lot" and "much less" mean by making assumptions about the number of apps, books, data, accessories and other items a "light use" versus "heavy use" owner might purchase or use the product for in the first year of ownership. Make clear how you define "Light" and "Heavy" and how they differ.* (20%) 3. Using the information associated with Light and Heavy users in question 2, assess the potential cost of ownership over the first year for each type of customer ("Light" user and "Heavy" user). In doing so compare Wi-Fi only with Wi-Fi+3G models and do not forget to include the cost of purchasing the iPad.* (30%) 4. Assume that you are in charge of the pricing of the iPad models. Explain what methods are open to you to price your products and the factors that you should take into account in deciding on these prices. Recommend a pricing method for Apple to use. (40%) In answering this case question aim to demonstrate your learning not only of the materials from MOD05, but also those from MOD01-04. Ensure that you repeat the case question in full and verbatim on the title page of your submission. Excluding your title and reference pages, your paper should be no more than four pages long. * Place any detailed calculations in an appendix, (not counted in the page limit), after the references. Please submit your case for grading by the end of this module. CASE EXPECTATIONS It is expected that you will use information from the background readings as well as the case articles and any good quality sources you can find. Please cite all sources and provide a reference list at the end of the paper. The following will be assessed in particular: Your demonstrated understanding of the marketing concepts central to the case question. Your demonstrated understanding of factors related to the development of an effective pricing strategy through the analysis you conduct in the context of the case. The criteria used for assessment will be those explained on the MOD01 Home page, namely: Focus. Breadth. Depth. Critical thinking. Effective and appropriate communication skills. Case-Related Articles and Links Anonymous, (2010) iPad costs give Apple room to cut prices, says researcher. (2010, February). Network World Middle East. February 11. Retrieved July 19, 2010, from ProQuest Computing. (Document ID: 1962300801). Hesseldahl, A. 2010 Apple iPad Components Cost At Least $259 viewed at http://www.businessweek.com July 19, 2010. DeCario, M. (2009, April 22) Teardown reveals production costs of Amazon`s Kindle 2. Viewed at techspot.com website, http://www.techspot.com, July 19, 2010. Gerrit Wiesmann. (2010, March 24). Random House fears iPad price war. Financial Times,23. Retrieved July 19, 2010, from ABI/INFORM Global. (Document ID: 1992457671). Anonymous, 2009. Business: Well read; Electronic-book readers. The Economist. Feb 14. 390:8618. Viewed using the Proquest database July 19, 2010. Allmang, N., & Bruss, S.. (2010, January). What Customers Want From Kindle Books. Online, 34(1), 36-39. Retrieved July 19, 2010, from ABI/INFORM Global. (Document ID: 1957509651). Apple Store website (showing iPad prices), at http://store.apple.com, viewed July 19, 2010. The Background Info page provides information you will find useful in writing your paper
MARKETING: APPLE`S iPADName:Grade Course:Tutor`s Name:(Day, Month, Year)Marketing: Apple`s iPadIntroductionThe essay is a critical analysis of the recently lunched iPad (April 2010). The paper prepares a table that shows the various iPad models that are currently in the market as well as their prices. Additionally the paper seek to define iPad buyers in term of â€˜heavy` and â€˜light users`, assess the potential cost of ownership over the first year for each type of customer using the classification of the buyers (heavy or light). Lastly, the paper brings forth pricing method that I could use assuming that I was in charge of pricing.Technological innovation has seen to it that the life of Americans and more so of the entire human race is enjoyable, fun, educative an informative. Nevertheless, this usually comes with a price tag on it. For instance, the recently launched iPad when it comes to market was valued at $499 for the 16 GB capacity and those of higher capacity of course cot much more than their lower capacity counter parts. For this reason coupled with stiff competition, there is need for each and every organization to master marketing principles which include among other things pricing, customer (Allmang & Bruss, 2010).It is important to always remember that price of a product usually dictates whether a customer will buy or not buy a given product. It thus makes or breaks transaction and should be treated with a lot of caution. Pricing of any product or service is usually affected by a number of factors mainly the cost of production, state of competition, the relative customer value and the marketing strategy being used.Different iPad ModelsAccording to Costello, 2010 iPad has six different models with varied price tags ranginging from $499 to $829.99. Basically, there are three models based on capacity; 16GB, 32GB and 64GB.Table1 Different iPad ModelsModel/Capacity 64GB 32GB 16GB WiFi $699 $599 $499 WiFi 3G $829 $729 $629 Verrizon MiFI $829.99 $729.99 $629.99 Source: Costello, S. (2010). iPad Model and Price Comparison. http://ipod.about.com/od/beforeyoubuy/a/ipad-model-price-comparison.htmCategories of buyers (â€˜heavy` and â€˜light`)...