Macintosh Production Introduction Plan

Source: "Macintosh Product Introduction Plan," typed ms. (7 October 1983).
Location: M1007, Apple Computer Inc. Papers, Series 7, Box 13, Folder 12.

2. Marketing Strategy

2.A Strategic Overview

The primary worldwide marketing goal is simple and straightforward: establish Macintosh as the third industry standard product in the marketplace. The first two standard products are the Apple II(e) and the IBM-PC. This goal will not happen instantaneously. However, the marketing story must be in place at introduction.

Macintosh cannot and will not be "all things to all people" -- especially at time of introduction. Yet the dynamics of the industry warrant an extremely aggressive marketing program from the outset. It is our premise that we will only get to introduce this product once. We have an extraordinary product. We must surround that product with excellent service, support, applications software. In addition, it is of crucial importance that we communicate a believable and achievable marketing plan to our sales force and the public at time of introduction. Part of this plan will be real at introduction while a significant portion will occur in the following 3-9 months. As a "marketing driven" company we must focus on the entire album and not just a snapshot of introduction day.

Failing to establish Macintosh as the third standard product could significantly decelerate Apple's growth curve. IBM has taken away major pieces of our large office, medium office and small business segment sales. National Account penetration is a long term prospect. Without a successful introduction, the first-term trend appears irreversible given IBM's success in repositioning the IIe as a home/education product. Moving the PCS product line back into the mainstream business segment at this time appears to be an unreasonable proposition. Apple's attempt to create a two horse Apple/IBM race will fail if we are relegated to a < 20% market share in the overall business segment.

Moreover, IBM will be using its successful corporate positioning approach known as FUD to thwart Apple success in the worldwide business marketplace. FUD stands for Fear, Uncertainty, and Doubt. These are real, competitive forces that can have greater influence on the purchasing decision than product characteristics. Yet when weighing the competitive strengths of Apple and IBM we win in one key category: PRODUCT SUPERIORITY. It is our preemptive Lisa Technology at a recognizable price/performance advantage that will allow us to successfully compete with IBM for the next 18-24 months.

To achieve our major marketing goal we must capture the hearts and minds of six key groups: our customers, our sales force, our dealers, third party developers, industry analysts, and the press. This Product Introduction Plan addresses the strategies and plans that will result in the successful realization of our goal -- to make Macintosh the third industry standard product in the marketplace.

2.B Product Positioning

Positioning is a concept that informs consumers about the relative qualities a product may have in contrast to its competition. It is based on another concept: that consumers apply hierarchical values to products. It is always dynamic and changing, and is most successful when proactive rather than reactive.


Macintosh is an advanced personal productivity tool for knowledge workers. .......................................................................................................................

ADVANCED - Lisa Technology, our key competitive advantage, sets a new price/value standard. This is extremely important. We define Lisa Technology as its user interface software: pull down menus, windows, desktop metaphor, bitmapped graphics, integrated applications, and mouse all driven by a 32 bit 68000. The benefits of this technology are the reduction in learning time, the consistent user interface across applications, and the sharing of data across applications. Our competitive analysis states that neither IBM, nor anyone else, will be able to replicate Mac for 6-12 months. We strongly support the POSD claim that Lisa Technology represents the future direction in personal computing, for naive users as well as "experts".

PERSONAL - The product is designed to optimize personal performance at a desk environment. The product is 30% the size and weight of the PC. It can easily be transported from one work location to another. The typical knowledge worker spends 29% of his/her time in generic thought work" (from Booz-Allen). This statistic represents the analysis, problem solving, memo writing part of a knowledge worker's day. In many situations Macintosh will replace the pencil and paper method of generic thought work. The typical customer will use the product 1-3 hours/day. The product has not been optimized to "run a company" as in the large scale computation and manipulation of payrolls, inventories, or data bases. However, the product excels at local information processing including acting as a terminal to remote data bases. Apple's message will be that, 'Macintosh fits. On your desk and in your life."

PRODUCTIVITY TOOL - Like the Apple IIe and the IBM-PC, the product will increase the productivity of the knowledge worker at the desk. Standard generic productivity tools including word processing, spreadsheet, business graphics, data base/file management, communications and project scheduling will be available from third party developers. With new software written specifically for Macintosh coming from Lotus Development (1-2-3), Microsoft (MultiPlan, MultiChart, MultiWord, MultiFile), Software Publishing Corporation (PFS Series) and others, we will have an outstanding selection of powerful proven productivity tools. In addition, our Apple published applications, MacWrite, MacPaint and MacTerminal are excellent products. The competitive advantage of Macintosh over the PC or the IIe is the unique combination of brand name integrated productivity software with Lisa Technology. In this context we often speak of the product as a desk appliance. An appliance is defined as a "means to an end". The first desk appliance for knowledge workers was the telephone. Current generation personal computers with their 20-40 hour learning time cannot be called appliances. Appliances deliver great utility, are easy to learn and master, increase productivity, take up less space and are priced for personal (as opposed to shared) use. Macintosh, as a second generation desk appliance, offers unparalleled performance and value as a productivity tool.

KNOWLEDGE WORKERS - The knowledge worker has been carefully defined by Booz-Allen by POSD, and by many office automation consultants, and is demographically addressed in Section 2C of this PIP. Knowledge workers are professionally trained individuals who are paid to process information and ideas into plans, reports, analyses, memos, and budgets. They generally sit at desks. They generally do the same generic problem solving work irrespective of age, industry, company size, or geographic location. Some have limited computer experience -- perhaps an introductory programming class in college -- but most are computer naive. Their use of a personal computer will not be of the intense eight-hours-per-day-on-the-keyboard variety. Rather they bounce from one activity to another, from meeting to phone call, from memo to budgets, from mail to meeting. Like the telephone, their personal computer must be extremely powerful yet extremely easy to use. In general, their psychographic profile correlates very closely with SRI's Values And Lifestyles Study (VALS) group known as "achievers". Excluded from our definition of the knowledge worker are CEO's and secretaries/clerks. This target knowledge worker group maps directly into our corporate positioning Strategy with the tag line, "Soon there will be two kinds of people: those who use computers and those who use Apples."

Macintosh is an advanced personal productivity tool for knowledge workers. The product is not a "home computer" nor a K-12 "education computer" nor a large-scale fully networked office automation machine. The next two sections describe in detail the physical location of our target customer and the channels required to reach the customer.

2.C Target Markets

Knowledge workers use productivity applications in all of Apple's traditional market segments: business, education and home. In order of priority, Macintosh is horizontally targeted at knowledge workers in the following U.S. markets:

1. Medium Business (Sales > $5 million and < sales of Fortune 2000)

2. College

3. Small Business (Sales < $5 million)

4. Large Business (Fortune 2000)

5. Home

It is anticipated that the three segments of the business market will comprise 65% of Macintosh's sales in FY 1984. They make up the largest group of knowledge workers and potential Macintosh users:

Knowledge Workers Potential Macintosh Users
Large Business 11.4 million 5.2 million
Medium Business 15.6 million 8.6 million
Small Business 9.6 million 5.1 million
TOTAL 36.6 million 18.9 million

Potential Macintosh users, for example, include financial analysts, sales managers, accountants, insurance and real estate agents, stockbrokers, social scientists, lawyers, personnel managers, administrators, planners, and exclude, for example, all secretaries, typists, clerical workers, retail sales workers.

Personal productivity users in the three segments of the business market share certain needs because of their common applications, and have some different needs because of the size and nature of their businesses. Below we have ranked the needs of the three business segments:

Common Needs Other Concerns
Large Business

Data Communications

(3270; Teletype)


Manufacturers Reputation

Medium Business

Productivity Software

Price Value

Ease of Use

Data Communications

(3270; Teletype)

Hard Disk

Small Business

Accounting and Vertical


Hard Disk

The college marketplace provides another large pool of knowledge workers. There are 3,300 colleges and universities in the United States with approximately 11 million students. Besides needing productivity and educational software and being very price sensitive, this segment insists on state of the art technology. Macintosh's consistent user interface and mouse-based technology is a big plus here. Apple has traditionally been strong in the education market. Through the Macintosh-initiated University Consortium Program, we expect that Macintosh will be the centerpiece of long-term agreements with universities wishing to use the entire Apple line of products.

We expect a large number of Macintosh's to enter the home/home-business market because of the price/value relationship and strength of Apple's retail distribution channel. Based an results from the 1981 Census, Apple II Owners' Survey and Apple's Wave II Brand Share Study, we estimate the market for high-end home systems (> $500) is approximately 25.8 million households. This market wants literacy/education/entertainment software, productivity software, reliability, price/value, ease of use and expendability. It is certain that Macintosh will be an extremely attractive product in this segment. However, we will not attempt to position the product in any way as a "home" computer.

The scientific/industrial matrix is composed of 2 million engineers, scientists and technicians. Personal computers are used in this segment for general desktop purposes (48%), data acquisition and control (40%), and computer aided graphics and drafting (12%). Macintosh will focus its marketing efforts on the productivity applications of the 48% of engineers and scientists requiring a general desktop computer. These professionals need development languages such as FORTRAN, Pascal and C, general purpose formula solvers (TK!Solver) and statistical programs, standard communication interfaces (RS-232, RS-422, IEEE-488) and mass storage in the 5 - 1 0 Mb range.

The following pie chart breaks out Macintosh's anticipated US sales for calendar year 1984 by market segment:

Based on Industry unit sales volume projected by the Apple Markets model and on Apple unit sales volume projected in FY 1984 Business Plan, Macintosh and the other Apple products will fit into the various market segments as follows:

3. Product Line Strategy


The design goal for the Macintosh product is to develop a low cost, powerful personal computer with Lisa Technology. All basic requirements will be built into the product thus eliminating the need for costly internal hardware slots. The value of the machine is delivered via "software slots"; that is, application software developed under the influence of our open architecture development environment and our 64K Lisa Technology ROM.

The product development Strategy for Macintosh is twofold:

This is accomplished by establishing a large installed base of Macintoshes and by providing a rich development environment and good marketing programs that increase the attractiveness of developing products for Macintosh.

The objectives of the Macintosh data communications Strategy are to:

The Strategy is to develop a simple terminal emulation package for VT-100, VT-52, and TTY to be available at or soon after launch, and to combine this software with existing Apple hardware products to enable 3270 communications (see product dictionary for detailed description). We are continuing to work with the POSD data communications group to pursue more optimal and cost-effective datacomm solutions for all Apple CPUs.

The objectives of our mass storage and networking strategies are to:

These strategies are under development and will be discussed as soon as the products have been approved.

Details on specific products and their availability are in the sections that follow.


The team scribe is Barbara Koalkin with assistance from everyone in Macintosh, especially Bob Belleville, Director of Engineering.


The Macintosh product comes standard with:

Macintosh Blank Disk
Keyboard/cable Power Cord
Mouse/cable Programmer's Switch
Two Apple Decals Owner's Guide (including card for 3 months free subscription to MacWorld)
System Disk (including Desktop Manager, Fonts, Desk Accessories)
Guided Tour (learning disk and cassette tape)

Apple will be providing the basic hardware, peripherals, applications software and programming languages for Macintosh according to the following schedule:

Launch 1Q 2Q
Macintosh MacTerminal MacProject
MacWrite + MacPaint MacPascal MacBasic
Imagewriter External Drive Assembler/Debugger
Numeric Keypad Mac Logo
Security Kit
10 Pack (3.5" Disks)
Mac Pac

Over 20 of the leading third party companies are currently working on Macintosh products, this number will increase to over 100 companies prior to launch. They are working on products such as personal productivity tools, accounting, communications, educational tools, languages, peripherals, and games. See the Appendix for a complete list of Macintosh developers.

Due to a close working relationship with Microsoft for over two years, they will have Multiplan ready for Macintosh at launch followed closely by MultiChart, MultiFile and several other productivity applications. It is expected that Software Publishing will have the PFS series ready during the first quarter, during the second quarter Lotus 1-2-3 is expected as well as Quik File. Having these packages running on Macintosh will enable sharing files with other machines running these applications (e.g., IBM PC, IIe).

The Accessory Products Group (APG) will provide a critical role in the success of Macintosh. The following products are elements of the Macintosh Box that APCG will supply: Keyboard and Mouse. The following products will be distributed, managed and sold for the Macintosh Division by APG: Imagewriter, Wide Carriage Imagewriter, Key Pad, Modems, Mac Pac, Security Kit, Modem Accessory Kit and Printer Accessory Kit. We are continuing to work closely with APG, POSD, and PCSD on future peripheral products to ensure we have a rich complement of printers (low cost printers laser printer) and communications devices over the next year.

The team scribe is Barbara Koalkin with assistance from everyone in Macintosh, especially Bob Belleville, Director of Engineering.



The objectives of the Macintosh packaging are as follows: first, provide functional packaging for the Macintosh system, peripherals, and accessories. Second, to create a unique graphics look to differentiate Macintosh products from others in the marketplace. Third, to ensure that the packaging approach used is equally appropriate in international market segments, with minimum redesign. Finally, to make system setup and transportation simple and manageable.

In order to meet the objectives above, a simple graphics design has been employed that minimizes the use of words, and heavily favors graphic representation of the product being packaged.

The Macintosh shipping carton is a corrugated 275 lb. test box, with a printed liner bonded to the corrugate surface. The printed liner is a bleached white color, imprinted with a 5 color graphic depicting the Macintosh system. The graphic is referred to as a "Picasso" type look, with simple sweeping lines and abstract shapes. The only word appearing on the carton is the word "Macintosh".

Within the carton are two polystyrene (EPS) styrofoam shells which hold the Macintosh system, the Open-Me-First box, the keyboard, and mouse. The Keyboard and Mouse are housed in their own EPS molded containers, covered by a 5 color printed sleeve, the entire assembly is then shrink-wrapped to protect the graphics surface. The keyboard and mouse EPS have cutouts to allow reading of the serialized bar code without haying to unpack the unit. The Macintosh system is wrapped in an anti-static plastic bag, and rests directly within the EPS housing. The "Open-Me-First" box is constructed of thermoform plastic. Within this box is housed the packing list/assembly instructions (a single 4 color sheet) that graphically shows the user how to get up their system, the 120Y power cord in sleeve, up to 4 diskettes, the programmers development switch, the learning cassette tape, and up to three manuals (total pages: 250). The "Open-Me-First" box rests directly in the top EPS foam shell, and is the first thing a user encounters when he/she opens the box. This box is secured by either a label or plastic tape (tbd pending testing).

The Macintosh shipping carton has a label applied to it for inventory tracking and dealer order purposes. This label contains the marketing number, the word "Macintosh", "Apple Computer", and has a location for a bar coded serial number with human readable characters. This shipping label will be applied to the top of the carton to minimize interference with the graphics.

The Macintosh external disk drive and keypad will be packaged in exactly the same manner as the Keyboard and Mouse. The units will be housed in an EPS foam shell, surrounded by a 24 point box, the whole assembly shrink wrapped. The security kit packaging is to be determined pending availability of sample kits. The Mac Pack carrying case will be housed in a bleached, 5 color printed corrugated container, and shipped directly from the case vendor into Apple's distribution sites. The keypad, disk drive, and security kit will be shipped to the distribution centers in master cartons. The carrying case will be shipped individually due to permanent crush problems with the case.

The Accessory kits for the Macintosh (printer and modem) are shipped by APG in a standard corrugated container. These boxes will be surrounded by a 5 color SBS sleeve, imprinted with an appropriate Macintosh graphic. APG will handle all print production of these kits.


Applications Software packaging will receive new packaging especially designed for the 3 1/2 inch diskette and manuals. It will consist of a clear plastic hinged container and plastic insert containing 2 pockets, each able to store 2 diskettes.

The plastic insert will lock a graphic sheet to the back and spine of the package. The front can display either the manual or another graphic card.

Additionally, a smaller version of this system (containing one diskette) will be provided for games and other similar software.



This packaging will not be completed in time for the initial Product announcement and shipment of Write and Paint in January. Backup Strategy consists of using a Rhett mailer, a specially designed sleeve containing Macintosh graphics, and vacu-formed diskette carrier. This will be available in quantity by January.


The following key milestones apply for the remaining items to be production released:

Macintosh Box

First shots of EPS Oct 15
Production of EPS Nov 7
OMF Approved sample Oct 1
First shot OMF Nov 1
Production of OMF Dec 7
Keyboard/mouse tool approval Oct 1
Keyboard/mouse production Oct 15


First shots of EPS Oct 1
Tool approval Oct 15
EPS production Nov 1
Graphics release Sept 26

Mac Pac

Graphics release Sept 26
Box release Oct 1

Disk Drive

Design frozen Oct 1
EPS drawings complete Nov 1
First shots of EPS Jan 15
EPS production Feb 15

Security Kit

Graphics released Sept 26
Kit samples Oct 15
Package design complete Nov 1
Production Dec 15

Accessory Kits

Graphics released Oct 15
Production Dec 1


Backup Packaging Prototype complete Oct 7
Packaging Prototype complete Oct 25
Production Tooling for Backup Package Nov 23
Backup Packaging received at Apple Dec 1
Production Tooling for Packaging Feb 27
Packaging received at Apple Mar 22


The team leader for Macintosh packaging is John Rizzo for hardware, peripherals and accessories and Joe Shelton for software. In creative services, M. Fillizetti and T. Hughes are responsible. In Macintosh engineering, B. Pang and E. Iwasaki (Corp.) are responsible. S. Marquadt is responsible for purchasing all non-APG packaging.



Successfully position Apple's growing family of micro-mainframes into the marketplace with maximum coverage and minimum overlap.


As an advanced personal productivity tool, Macintosh has four key product features:

1. "LISA TECHNOLOGY" 64K ROM with Lisa User Interface Software: Pull down menus, windows desktop metaphor, bitmapped graphics, mouse and integration. Works the way you do. Affordable. Radical ease of learning and ease of use. No strange commands or languages. Consistency among applications: Point, Click, Cut, Paste.
2. Personal Productivity Tools Software from leading developers: Lotus Development, Microsoft, Software Publishing Co, Software Arts, Ashton Tate, Chang Labs Integrated desk work made simple. Choice of great software from leading developers. Personal productivity and creativity enhanced.
3. 32 Bit Hardware - Motorola 68000 @ 8 MHz. Hardware designed to run Lisa Technology. Incredible power under the hood. Superb processing speed. Required to drive Lisa Technology.
4. One Box - Take it out and plug it in. Transportable. 23 lbs. Fits in hatchbacks and airplanes. 10" x 10" footprint. Eliminates fear. Understated simplicity. Transportable. Fits comfortably on your desk and in your life.


As an established industry standard personal computer, the Apple II product line has four major features differentiating it from Macintosh:

1. Installed Base - over 1,000,000 sold. Organizations with significant investment in the II may mandate repurchase.
2. Thousands of Applications From pig farming management to kindergarten education, the II has enormous breadth and depth of software solutions.
3. On screen color The optimal solution for some applications can best be done on a color monitor, especially K-12 education software.
4. Slots Hobbyists, scientists, engineers and OEMs can add value to the system through the use of special plug in peripheral cards.


Lisa, the personal office system, has 3 distinct features vis-a-vis Macintosh:

1. Multitasking Operating System Increased level of integration. Walk and chew gum at the same time. (On Mac, you can only do one at a time.)
2. Multiple Operating Systems -Lisa O/S, Unix, MS-DOS Product acts as flexible bridge into multiple environments. Mini-computer capability.  
3. Greater capacity - integrated hard disk 1 Mb RAM, large screen. Fluid integration of applications. Allows layer models, data bases, etc.


The Macintosh introduction causes the following changes in our product line:

1. Apple IIe will move further into the home and education markets with the noticeable exception of those vertical areas requiring specific solutions unavailable on Macintosh.

2. The introduction of Lollie legitimizes the heart of the II family in the home and education markets.

3. The introduction of Rome, although potentially confusing, can continue to milk the large installed base of loyal II customers.

4. The introduction of the mouse into the II family will cause tremendous confusion. Is this Lisa Technology? We can't afford to compromise our technology leadership position over IBM. If Lisa Technology becomes synonymous with the mouse, then we'll quickly be right back where we started: alone again with IBM.

5. Lisa will face enormous price/value pressure from Mac and will be forced to either improve performance or lower price. The introduction of Pepsi will help to some degree. Applications taking advantage of product's strengths must be developed. Macintosh compatibility issue must be answered.


Our objective is to understand our competition (IBM) so well that we are prepared to attack at launch as well as react to their anticipated comments on Macintosh.

This section reviews how we believe IBM will attack when Mac launches and how we will respond.

IBM Attack

1. Lack of Expandability

Macintosh is a good machine but it is very limited - because there are no slots it cannot grow with you.

Apple Response

Macintosh comes with "software slots" that facilitate development of software that can access all of the capabilities that are built into ROM (close to 500 routines). In addition, Macintosh has found a way of reducing hardware complexity by providing for all of the user's needs inside a standard box, thus ensuring all Mac software will run on all Macs and enabling such a low product price. The machine comes standard with 5 built-in ports, 2 high speed serial ports, a keyboard port, disk drive port, and an audio port allowing the user to connect a wide variety of devices. For example, on the PC the user must buy a printer interface, an RS-232C interface, and a graphics interface (at approx. $150 per card)--on Macintosh they are built-in and included in the basic low price. When you have a product that meets most of all of the user's needs, you do not have to provide for expansion inside the box.

IBM Attack

2. Limited hardware - small memory size, lack of mass storage

Macintosh is a cute machine but limited for the serious business use since it has only 128K of memory. In fact, there is much less memory available for the application since 21K is used for the screen, 16K for the system heap, several K for fonts, etc.. The PC-XT on the other hand starts with 256K RAM not including display memory. Mass storage on the PC-XT includes 10 megabytes of mass storage, plus a floppy drive, for a total of 25 times the storage space of a Macintosh.

Apple Response

Leading software developers have optimized their applications to run in a single disk Macintosh environment. The system does not require additional expensive hardware. This is because of the unique combination of Lisa Technology in ROM being powered by the 32 bit 68000. The digital board has been designed to accept 256K RAMS. When they become commercially available in large quantity we will offer a 512K version. Of course all software will be upwards compatible. Macintosh is the first of an entire product line of next generation office appliances from Apple. Later this year one can expect to see interesting high capacity mass storage peripherals for Macintosh.

IBM Attack

3. Lack of software

Apple once again has come out with a non-standard operating system and no connections to the large base of software already written for MS-DOS and CP/M. It will take quite some time, if ever, for to complete all the required software for Macintosh and right now it has only three applications.

Apple Response

Over 100 leading software developers have looked at Macintosh and have seen the future of personal computing. Microsoft, Lotus, Chang Labs, Software Arts, Software Publishing Company, and many others are putting their best people to work on Macintosh. Old technology software is burdened with an antiquated interface requiring 20-40 hours of learning time per application. The Macintosh open architecture and superb technical documentation have provided the necessary incentive for software developers. With Macintosh, a person will not get stuck servicing history.

IBM Attack

4. No clear product line Strategy

When you buy an IBM PC, you get into the strongest product line in the industry. The Peanut, which is rumored to be software compatible with the PC, gives you a low cost entry point into this family and you can grown into the PC and the PC-XT. Macintosh is an isolated machine with no ties to other Apple products.

Apple Response

We've sold over 1 million Apple II's and we would be fools to develop a non-compatible product unless one situation arose: the development of a new technology, so revolutionary that it immediately obsoletes everything before it. Macintosh is the first of a complete family of Mac products from Apple.


5. No communications

Business users want to communicated, and IBM has years of experience doing this. The PC can currently serve as a 3270 terminal emulator and will be integrated in to the IBM SNA world as soon as possible.

Apple Response

Macintosh has data communications capabilities via MacTerminal, a VT100, VT52, TTY emulation program. This allows users to dial into popular databases (e.g. Dow Jones) and DEC systems. By dialing into Apple's cluster controller product, Macintosh can communicate as a 3270 as well. Apple is committed to providing additional cost-effective solutions to satisfy the data communication and network requirements of our users.

When Macintosh launches, we will proactively attack the IBM PC as follows:

Lisa Technology X
32 bit architecture X
Best selling productivity software X X
One transportable box X

4. Marketing Communications Plan

To achieve our overall goal of becoming the next industry standard product we must weave a focused, consistent marketing communications message throughout all communications devices and media. This message is derived from the product positioning statement. We feel we have 90-120 days from the time of public announcement to successfully establish the product as the next industry standard. Our messages must be concise, consistent, and frequently heard.


As a company we must speak to six major groups, each with separate needs. These groups are: Our customers, our sales force, our dealers, third party software developers, industry analysts and the press. Industry analysts and the press will usually call our dealers and our customers to gain "real" information regarding the product's prospects for success.

As an advanced personal productivity tool, Macintosh has four key product features:

1. "LISA TECHNOLOGY" 64K ROM with Lisa User Interface Software: Pull down menus, windows desktop metaphor, bitmapped graphics, mouse and integration. Radical ease of learning and ease of use. No strange commands or languages. Consistency among applications: Point, Click, Cut, Paste. Works the way you do. Affordable.
2. Personal Productivity Tools - Software from leading developers: Lotus Development, Microsoft, Software Publishing Co., Software Arts, Chang Labs Integrated desk work made simple. Choice of great software from leading developers. Personal productivity and creativity enhanced.
3. 32 Bit Hardware - Motorola 68000 @ 8 MHz. Hardware designed to run Lisa technology. Incredible power under the hood. Superb processing speed. Required to drive Lisa Technology.
4. One Box - Take it out and plug it in. Transportable. 22 lbs. Fits in hatchbacks and airplanes. 10" x 10" footprint. Eliminates fear. Understated simplicity. Transportable. Fits comfortably on your desk and in your life.

Message to our customers: Macintosh is an advanced personal productivity tool for knowledge workers.

This message will be directed primarily at knowledge workers in medium and smaller size companies who demonstrate a proclivity for shopping retail. Sales to the college marketplace will result primarily from direct selling efforts and do not need the support of major communications efforts. Sales into the home can be looked upon as being "free" from a communications investment point of view. The home purchaser is our target knowledge worker customer responding to our business directed marketing communications with a personal discretionary purchase.

The marketing communications objective to the customer is to create distance between old technology products and Macintosh by showing the clear price/value edge our product has in concert with the corporate tie line of, "Soon there will be two kinds of people-", we will push hard on the concept that achievers should align themselves with Apple's leading edge products.

Message to our sales force: Macintosh is your ammunition for dealing with IBM at a retail level. The price/value is superb. With software from Lotus and Microsoft we have given you two easy entres for successful selling. Our intense advertising should draw customers into the store looking for Macintosh.

Message to our dealers: You can make a great deal of money selling Macintosh because: we'll deliver customers to your doorstep, we have Own-a-Mac for your RSP's, we have brand name productivity software, and it's an incredible price/value. Also Macintosh, Lisa and Apple IIe can all co-exist in a retail environment.

Message to third party software developers: Macintosh = open architecture. All major software houses are devoting major resources to Macintosh. Technical documentation, support and training are superb. Mac is the next Apple II.

Message to industry analysts: Macintosh is Apple's second 68000 based "Lisa Technology" product. It is an advanced productivity tool. It is a superb value. We expect to ship 300,000 in FY84.

Message to the press: Same as above plus reinforcement of Apple's position as a leader in the personal computer industry.



Insure immediate and broad scale awareness of Macintosh among its target audience. Make the introduction of Macintosh the biggest event in the history of personal computing. Encourage prospects to visit stores for hands-on trial of the product. Educate prospects as to the benefits of this product vs. other personal computers.



(refer to media schedule following)

Preliminary Budget(FY84) Amount Percent
Announce 2475.8 11.9
Introduction 11,560.0 56.0
Sustaining 5,650.0 27.3
Production 1,000.0 4.8
Total 20.685 MM 100.0



The team consists of Mike Murray, Dee Macleod and Steve Scheier.




The story will be covered through eight major media issues: marketing, product, technology, Apple's response to IBM, Mac in higher education, soul of a new product, Mac factory, software, and the Mac design team.

To get maximum coverage, we will encourage hands-on experience with media, industry analysts and luminaries. This coverage will occur as a result of activities planned before, during, and after introduction. The messages will vary according to the various market segments.

Details on the specific media and dates can be found in the detailed PR plan from Regis McKenna (copies are available from Rosemary Morretta).


The team leader is Barbara Koalkin, with close assistance from Steve Scheier and Mike Murray. Regis McKenna is working personally on Macintosh PR with assistance from Andi Cunningham and Jane Anderson (from Regis McKenna).

5. Sales Introduction Plan


The primary goals of the Sales Introduction Plan are to reach our sales objectives and arrest IBM's momentum within each targeted market, and by doing so establish Macintosh as the personal computer industry's 3rd standard.

This will be accomplished by:

a) using three special events to personally introduce Macintosh to Apple Field Sales (National Sales Meeting), Dealer Introductory Event (dealers), Shareholders Meeting (public). These meetings will: position Macintosh in the marketplace, establish Apple's strong commitment to Macintosh, communicate to Apple's Field Sales and outside Sales organizations the importance of Macintosh's success and the necessity of their support.

b) communicating and implementing a consistent Strategy which focuses on the retail channel plus the University Consortium and Education Rep's channels. The VAR and National Account channels will receive secondary emphasis. To reinforce our commitment to our channels, we will have product available for demonstration and customer ship at launch for all channels.

c) providing simple yet innovative training, selling tools, support, and motivational incentives to the various sales organizations to insure the easy acceptance and successful selling of Macintosh in their respective markets.

The continued cooperation of and input from Sales Development, Sales Operations, Training Development, DSSD, and Marketing Communications will be critical to the smooth execution of our Sales Introduction Plan.

A complete timeline of the major milestones for the Sales Introduction is presented on the next page. Greater detail of the specific events, programs, and materials which make up the Sales Introduction Plan are contained in the pages which follow.



Our scheduled events for Macintosh introduction recognizes the importance of communicating at several different levels. It is important for us to reach all of these levels and to infuse throughout the same enthusiasm about the product. Thus, we have planned events to reach our three most important target audiences.

Apple Sales/Rep Force - Hawaii Sales Meeting (Oct. 22,1983)

Retail Dealers - Dealer Events (Jan. 9-14, 1 984)

Press/Public - Shareholder's Meeting (Jan. 24, 1984)

Each event description will address the pertinent information regarding programs, promotion, marketing Strategy and product for that audience.

The following pages give the details on each event.


Hawaii Sales Meeting, Oct.22 -


The global objective of Apple for the Hawaii Sales Meeting is to communicate our corporate selling goals in 1984 to our sales force. Clearly we must provide our sales force with sufficient information on marketing programs and products to gain their acceptance and enthusiasm for realizing these goals.

Macintosh's objective for the sales meeting is to communicate the message that our new product will be forefront in Apple's 1984 sales plan and help to reverse the IBM momentum in the retail environment.

Topic Objectives:

1. Officially announce product to the sales force

2. Communicate key marketing communications messages

3. Communicate product positioning and marketplace

4. Communicate introduction plan

5. Communicate exciting selling prospect

6. Communicate product features, benefits and selling Strategy

7. Generate excitement of hands-on experience


Macintosh will be officially announced to all participants by Steve Jobs in the opening ceremonies on the first day. Steve's script will include product history, its innovations and appeal, our unique factory production story and our impact in 1984. The communications of our marketing message, product positioning/marketplace, features/benefits and selling Strategy will be presented in a breakout session dealing with specific information and presented by Macintosh Marketing personnel. The excitement of Macintosh and the benefits of selling the product in 1984 will be infused in all communications but will be especially prevalent in a "Hands-On" Workshop where each participant will have the opportunity to personally experience the machine as well as talk to Macintosh personnel.

Hawaii Agenda:

Sunday, Oct. 23 - General Session (Opening Ceremonies)

Each product division will have one hour to present a "Directions '84" speech in relation to their products. Macintosh will be the last division to speak at 12:30 pm. Steve Jobs will be representing our division. Video tapes of the factory, story and engineers taping will be available as visual support.

Sunday, Oct. 23 - Product View Night

Apple's complete family of products will be on display in two auditoriums. Macintosh will occupy a separate room (for security reasons) and demonstrate the introductory programs with journaling demos on large screens. Several Macs will also be running the programs for those who wish closer inspection. The audience may wander through the room at their leisure. In order to accommodate the large number of people, however, the programs are designed to take no longer than 20 minutes. Macintosh personnel will be an hand to monitor the display systems.

Monday/Tuesday, Oct. 24/25 - Breakout Sessions

All the product divisions (as well as Communications) will be dividing up a day and half with breakout sessions concentrating on detailed information. Each group will contain 100 people and will rotate through all breakouts beginning on Monday morning and ending Tuesday afternoon.

Macintosh will be sponsoring 2 breakouts:

o Product Intro Breakout o Hands-On Workshop
-Addresses #2-6 Objectives -Addresses #7 Objective
-Mike Murray, Barbara Koalkin & John Scully presenting -12 Presenters and 15 monitors demonstrating

*Monday night is additional Mac hands-on, Tuesday night is a planned entertainment event off site.

Tuesday, Oct. 25 - Distributor's Meeting

Concurrent to the regular meeting, the European and Icon reps will be attending an Apple Distributor's Meeting close by directly after Sunday's General Session and Product View night. Macintosh will present a one-hour speech (given by Joanna Hoffman) focusing on differences of introduction and rollout. There will be no Hands-On Workshop or demonstration breakouts.

Wednesday, Oct. 26 - General Session (Europe, Operations, Legal, Data Comm, Human Resources, Sales).

In the morning, there is a general session from the above areas. After lunch, the Sales Division is hosting 5 breakouts. One Macintosh marketing representative is requested to attend.

Thursday, Oct. 27 - General Session (Kvamme, Distribution, Markets Marketing, Retail Sales, Advertising Bowman)

In the morning, there is a general session from the above areas. Macintosh representatives are expected to attend. In the evening, there is a planned event for all participants.

Key Milestones

Slide Support Requests Sept. 12
Demo Scripts Sept. 28
Product Info Scripts Oct. 3
Demo Practice Class Oct. 4 & 6
Product Info Script Review Oct. 7
Journal Demo Script Final Oct. 14
Demo Critique class Oct. 11 & 14
Systems Air Freight Oct. 18
Full Dress Rehearsal (breakouts) Oct. 18
Travel Oct. 21 & 22


Tricia Willcoxon VP
Gary Sheiplein Special Events (Comms)
John Rizzo Demonstrations (Mac)
Joe Shelton Demonstrations (Mac)

5.C Retail Introduction Plan

The primary goal of the retail channel introduction plan is to insure that we meet our sales objectives and reverse the IBM momentum within the retail dealer channel. Given that the retail channel will constitute about 85% of Macintosh's North American FY84 sales, this channel will need to receive top priority treatment.


These goals will be accomplished by:

a) gaining the support and commitment of Apple Field Sales and Dealers alike by personally introducing the product to them prior to public introduction. These events will also provide us the opportunity to clearly communicate to them that Macintosh is the top priority of Apple and the 3rd party software developers'. In addition, these events will demonstrate that the retail channel is our primary channel and that the support of Apple Field Sales and Dealers is critical to the success of the product.

b) reinforcing our commitment to our existing dealer base by offering to all 1500 current Apple dealers the opportunity to carry Macintosh. To become an authorized Macintosh dealer one must simply be a current dealer in good standing (exceptions will be determined by Sales & Sales Operations) and send a key Retail Sales Person (RSP) to be trained on Macintosh prior to public introduction.

c) executing an exciting advertising and public relations campaign (see Section 4) which strongly encourages a hands-on trial at their dealership.

d) insuring that the public will in fact be able to receive a hands-on trial and to purchase a Macintosh on the day of public announcement. This will be done by giving each dealer a Starter Kit (see Section 5.F) a few days prior to public announcement and having product available for customer ship at launch.

e) insuring easy acceptance of Macintosh by Field Sales and dealer organizations by providing simple yet innovative training (see Section 5.D), sales and merchandising materials and program such as the Own-a-Mac program (see Section 5.D) and the Demo Station (see Section 5.E) and support to successfully sell Macintosh.

f) minimizing the negative impact of Macintosh shortages on both dealer and Apple corporate sales during the first 90 days by following a consistent and logical allocation plan which will be determined by Sales in conduction with DSSD and Macintosh Marketing.

g) implementing an inventory Strategy which encourages dealers to order in advance substantial amounts of Macintosh product. This Strategy is important because it will allow us to gain some efficiencies in production and distribution, while also increasing the percent of dealer resources dedicated to Apple products.



1. Get Macintosh in the hands of those who will be selling it as quickly as possible. 2. Develop a knowledgeable sales force on Macintosh's features and applications.


One page of program rules will be included in the back flap of each Selling Guide and each Dealer Guide.

1. The following individuals are eligible for the Own-a-Mac program:

a. Retail salespersons in Authorized Macintosh Dealerships who have been employed at least 60 days.

b. Sales Managers at Authorized Macintosh Dealerships.

2. The program will begin February 1, 1984 and end May 31, 1984. No orders will be accepted by Support Centers after May 31, 1984.

3. Eligible participants may purchase one Macintosh for $750 plus sales tax (where applicable) and freight and handling. A Macintosh is defined as the Macintosh Box (CPU, built in CRT and disk drive, detachable keyboard, mouse, system software, training diskette, and manual). This Macintosh may be customized. The front bezel, housing, and plastic on the keyboard and mouse may be a different color with a message from Steve Jobs on the back of the unit.

4. 2,000 units will be allocated to the program each of the four months of its duration. They will be allocated on a first come, first serve basis. If the allocation has been met, purchasers will receive an advice notifying them of the availability date of their Macintosh.

5. Freight and sales tax will be paid by the purchaser. We will charge a flat freight fee (probably $10).

6. Order forms will be available through the Sales Reps. They will be filled out by the eligible participant, who will attach a certified check or money order to the order, have it signed by the Dealer Principal, and sent to the Sales Rep. The Sales Rep and the Sales Rep Principal will sign the order and send it to their Support Center. A list of Sales Rep Principals and their signatures will be kept in each Support Center for control purposes.

7. We would like to ship each Macintosh to the RSP's homes and will design the order form to encourage this. By doing so, we gain a valuable database of home addresses. This will be followed up with "Macintosh Updates" (newsletter) sent to RSP's homes. Debbie Kuhn's group will be responsible for writing and distributing the newsletter.


Apple Computer is on the verge of entering into an agreement with PC World Communications Inc. to support the publication of a Mac World magazine. This monthly publication will describe Macintosh's state-of-the-art technology, review Macintosh hardware and software products, offer hands-on tutorials and report on use and acceptance of Macintosh in the community. Editorial independence is retained by PC World Communications.

Mac World is scheduled for publication in January 1984. The introductory issue will be available at bookstores, newsstands and computer stores. A minimum of 100,000 copies will be available for the introductory issue.

In order to encourage the development of this magazine, Apple has agreed to include a trial subscription card to the magazine within the Macintosh owner's manual. The first 600,000 Macintosh owners to return the subscription card will receive a free copy of the introductory edition plus a 3-issue trial subscription courtesy of Apple. Apple will pay PC World Communications $4 for each of the first 600,000 subscription cards returned.


1. To insure widespread acceptance of Macintosh by supporting the creation of a magazine whose main purpose is to advocate Macintosh and other related products.

2. Provide Macintosh owners with monthly material that supports their prior purchase decision.

3. Provide possible Macintosh buyers with information on the product and its applications.


1. Provide Mac World staff with the product information necessary to support the magazine.

2. Place a subscription card in the Macintosh Owner's Manual.


Sign Mac World agreement by October 14. Assist with information request from Mac World on an on-going basis.

6. Developer Seeding and Support Plan


The Developer Seeding and Support Plan is intended to insure that high-quality hardware and software products are developed for Macintosh in an expedient manner. In addition, the Plan will further the overall goal of making the Macintosh environment an industry standard.

Developers will be selected according to their marketing ability, technical expertise, end-user support capabilities, and desirability of application. Following selection, the seeded developers will receive technical and marketing assistance to insure success and continued development efforts.



Widespread development for Macintosh requires that we have a reliable software development environment and complete and accurate technical documentation.


Almost all currently seeded software developers use the Lisa Monitor, Lisa Pascal, and Assembler. Since the monitor is an unsupported software product, it will shortly be supplanted by the Lisa Workshop system. This will continue to be the standard development environment, implying that every software developer will require a Lisa to do Macintosh development. In addition, each developer will require the Lisa Workshop and "Inside Macintosh," which is the in-depth technical documentation for the system, and also contains a diskette with Macintosh-specific information.

The technical documentation is currently about 80% complete. The remaining 20% of the information is supplied by Macintosh tech support. It is unlikely that the system documentation will be totally complete until after January. In the meantime, the documentation is packaged in three-ring binders, so that it presents no problem to ship it in its intermediate state. Until this documentation is completely frozen, its distribution will necessarily be via direct order from Macintosh technical support, so that updates can be supplied, and so that the latest revisions will always be shipped.

Ultimately, Macintosh based development environments which do not require the use of a Lisa will be available. The first of these will be the Macintosh assembler/debugger (March '84), followed by a Macintosh based Pascal development system (June '84).


Conversion from Monitor to Workshop: November 1, 1983
Interim Packaging for Inside Macintosh: November 1, 1983
Mac Assembler/Debugger Available: March 1, 1984

9. Sales Forecast and Allocation Plan


The sales forecast will be presented the second Monday of every month at the Corporate Sales Forecast meeting. It will be influenced each month by the previous month's actual sales, input from sales and distribution, promotional events and expected market conditions. The unit sales forecast (in thousands) According to the FY84 business plan is:

Month(1984) North America Europe Icon Japan TOTAL
January 20.0 0 0 0 20.0
February 13.0 0 0 0 13.0
March 17.0 0 0 0 17.0
April 17.0 4.0 2.0 0.5 23.5
May 20.0 2.5 1.0 0.5 24.0
June 22.0 3.0 2.0 0.5 27.5
July 30.0 3.0 2.0 0.5 35.5
August 35.0 3.0 2.0 0.5 40.5
September 41.5 5.0 2.0 0.5 49.0
October 43.0 7.0 2.0 1.0 53.0
November 46.0 8.0 3.0 1.0 58.0
December 50.0 10.0 3.0 1.0 64.0
TOTAL 354.5 45.5 19.0 6.0 425.0

Other products in the Macintosh family are ratioed off the CPU units. The products and ratios are:

Imagewriter 80%
External Disk Drive 25%
Modem 10%
Numeric Keypad 10%
Mac Pac 10%
Security Kit 5%

Ratios for Macintosh labeled software and blank 3 1/2" media change over time, generally decreasing as more third party software comes on the market.


The team leader is Bud Colligan, Macintosh Marketing, assisted by the Macintosh Product Managers and coordinated with Bill Wathen, Macintosh Finance.


We anticipate that Macintosh will be in allocation for the first six months of calendar year 1984. Floyd Kvamme owns the final decision on the percentage distribution of product worldwide.


Given limited product availability, ensure that product is allocated to Macintosh target markets.


Agree with North American Sales on strategic, College Consortium and Own-A-Mac allocations; and with North American Sales, Europe, Icon and Japan on geographic allocation.

Launch Schedule Deliverable
January 3 Agreement with N.A. Sales on strategic, College Consortium and own-a-Mac allocations.
March 3 Agreement with N.A. Sales, Europe, Icon and Japan on geographic allocation.

Ongoing schedule: Deliver projected monthly units available for shipment to DSSD for them to allocate according to the instructions of the various sales regions.


Dave Bowman, North American Sales; A.J. Laymon, Icon; Phil Roybal, Europe; and Mas Fukushima, Japan will jointly decide on worldwide allocation of the product. This effort will be coordinated by Bud Colligan, Macintosh Marketing, and implementation of the allocations will be done by Erin Roberts, Product Administration. Mike Chisum, Macintosh Manufacturing will provide the monthly ship schedule to DSSD.

10. Risks and Open Issues


The following items must be resolved in the next 30 days:

1. Dealer allocation policies and guidelines 2. Apple Family Positioning message to dealers, press and public 3. Field allocation of demo/sneak units by channel 4. National account pricing structure 5. Dealer pricing regarding pallet vs single unit orders


The following risks remain that could seriously impact our goals:

1. Product availability and daily production rate could be below the anticipated levels in early January.

2. We are relying on key third party developers to publicly support our product in January. This is key since much of their software won't yet be available. If they choose not to support us, then we will suffer.

3. The press in particular must accept our IBM data comm, networking and mass storage strategies.

4. The press in particular must accept our Lisa/Mac compatibility story.

5. Our lean and mean organizational structure requires us to rely on the efforts of many key people outside the Mac Division. Without their continued strong contributions we will not have a successful introduction.

Appendix A: Demo-Station Plan


The objectives of this sales promotion program are to: first, increase the sales of Macintosh systems by maximizing the number of potential customers that experience the product, second, to minimize the necessary involvement of the Retail Sales Person to make the sale, third, to reach as many potential customers as possible, and fourth, to create a positive experience for the customer to maximize word-of-mouth promotion of the Macintosh system.


To achieve the objectives set out, an integrated, intelligent sales tool must be developed. The chosen approach is to utilize a Macintosh system, controlling a video disk player, enclosed in an unobtrusive fixture, that not only sells the benefits of the Macintosh, but involves the customer in experiencing the Macintosh personality.

This demo-station will eventually be made available to all 1500 Apple dealers. Upon Macintosh introduction, at least 750 dealers will be stocked, additional dealers stocked subject to availability of videodisk players. Expansion into non-traditional locations will be evaluated as we gain experience with the success of the station in the retail environment.

The demo station will consist of a Macintosh system, a Pioneer laser video disk player, a small coupon printer, an ultrasonic ranging device, an illuminated fixture, a color television monitor, and additional-support electronics to tie the system together. Both fixturing and electronics hardware will be designed to make system extendability into other Apple products simple and straightforward.

The fixture used will be constructed of extruded aluminum supports, protected by vinyl covers, enclosing transparent plastic panels. These covers will allow the placement of unique graphics and signage simply by sliding panels and snapping new assemblies in place. The plastic panels will be internally illuminated by fluorescent light fixtures. The Macintosh system will sit on a protruding shelf. The videodisk player and electronics will be enclosed in a box that stands next to the vertical fixture. This box will include a fan to minimize internal temperature. The color monitor will be mounted on a track to the left of the Macintosh system, above the laser disk. This monitor will be movable in a vertical and horizontal directions for ease of viewing. In the event that other Apple products wish to use the system, additional shelves and signage can be simply inserted into the basic fixture. Should a dealer wish to minimize floor space, a desktop model will be available. In addition, should some dealers wish to install this in custom furniture, specifications for the hardware will be made available. For future expansion with other peripherals and products, a standard communication link within the system will be established. Both desk and floor standing models will be made available to the dealers.

The Macintosh system will control the videodisk player through an RS-232 serial interface port. The video disk player to be used is the Pioneer Mark 1000 industrial player. This unit reflects state of the art in laser technology, and offers Apple considerable growth path for future disks and special effects. All electronic hardware within the system will communicate via the RS-232 standard, malting future expansion relatively simple. Should another product wish to use the demo station, it can simply talk to the system electronics through the standard interface. Chels, for example, could plug right into the system and communicate via RS-232.

The resident software and video material will emphasize selling Macintosh rather than attempting to educate the viewer. During the first 20 - 30 seconds, the color monitor will be active displaying a video segment to attract the customers attention. This segment will be a hook to draw people into the station. Following this portion, the user will be shown, through a combination of video and the Macintosh system, how to manipulate the mouse in a very simple way. This will create a positive, unique experience with the system that we believe will carry the viewer through the rest of the demo. Following this segment, the video will reengage and discuss the features and benefits that Macintosh offers. This will be done primarily with the video, and be heavily reference selling. Following this portion, the system will teach the user how to complete something useful with the mouse and the system. This further reinforces the experiential quality of Macintosh. Finally, the system will print out a coupon giving the customer a trial subscription to MacWorld magazine when they redeem the coupon to the RSP. This last step effectively closes the feedback loop for the dealer. The script for the demo station is being written by Chiat/Day.

The demo station will be made available to all dealers and will be paid for out of COOP advertising dollars. The demo station will be paid for by the dealers out of coop advertising funds. A given percentage of coop funds will be allocated to pay for the station. Each dealer will receive less credit for coop advertising funds, that amount being allocated to demo station payment. Total cost for the station will be approximately $2500, excluding the Macintosh system. The units will be shipped to the dealers in individual components, then reassembled by the dealer. Each system will undergo a bum-in cycle prior to shipment. Staging, assembly, burn-in and shipment will be done by a third party organization (the same as the Apple Information Center). Initial availability problems on the video disk player will not allow a complete rollout of systems at launch, about 60 % of the dealers will receive the system at launch, the balance by March 1.

Production of the video segment will be done by One-Pass Video of San Francisco, the same group responsible for AIC videodisk work. Several other studios have been examined for special effects work, and will be used as appropriate pending final script definition.

Document created on 2 June 2000;