dissertaion on apple inc

A

DISSERTATION REPORT ON

“CRITICAL ANALYSIS OF USING MARKETING

STRATEGIES OF BRANDING

Inc.”

Submitted By: Under the Guidance of

Mr. Dushmanta Pradhan Prof. Ch. Siddharth Nanda

MBA(2012-14) ( Faculty Guide)

BHUBHANESWAR

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Declaration

I do hereby declare that the Dissertation report entitled “Critical Analysis of using Marketing

Strategies of branding Apple Inc.” submitted by me in partial fulfillment for the degree of

Master of business Administration under Amity Global Business School, Bhubaneswar is an

original piece of work done by me and has not published elsewhere or submitted for any other

degree in full or part.

Date: April 9, 2014 Dushmanta pradhan

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Acknowledgement

Firstly, I would like to express my gratitude toward Dr. Ranjan Kumar Khantha, Dean of Amity

Global Business School, Bhubaneswar for giving me the opportunity to work on Dissertation.

I am highly indebted to Prof. Ch.Siddharth Nanda, faculty guide for providing the opportunity to

prepare the Dissertation report under his guidance.

I extend my thanks to all my friends for their moral support and encouragement. Last but not

least I thank my parents and relatives who inspired me always to do the best.

Dushmanta Pradhan

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Abstract

Computer nice consumer electro Apple Incorporation is a multinational company that

creates and sells the billion about US$16 363 stores worldwide, with global sales of , in

software, and personal computers are mainly iPad and the iPhone , iPod line of

computers, Macintosh like known products-company's well be due to high brand

awareness related to these products. Apple recognized as a source of competitive edge,

Final Cut Studio, Aperture, iWork, iLife, iTunes, Mac OS X also sells other branded

products like, .iOS browser and Safari, Logic Studio

The main objective of this study is to analyze the importance of using marketing

strategies of branding in Apple Inc. The study will help to find out about the related

benefits of branding mainly. The details of the study will help us to learn about the

consumer's awareness about the brand and how their loyalty can be increased in order to

gain a competitive edge. Also, analyzing the importance of branding can help us to find

out about the Apple brand's strengths, weaknesses, opportunities and threats, by using

SWOT analysis tool and by using STP process, we can know how to segment the market,

target the customers and position the products/services. Whereas, by using 4 Ps of

marketing mix, we can find out about the branded product, its price, promotion and

placement.

Therefore, since the competition in the technology industry is increasing, 'A study on

using marketing strategy of branding in Apple' will help the company in staying at the top

of consumer's mind, to cope up with the changes, to gain competitive edge, to attain goals

set by the company, to make improvements for the future related to products, its pricing

strategy, communications used to promote and the placement of the product. Therefore, it

will help us to evaluate whether branding will affect Apple Inc's success rate or not.

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Table of Contents:

Chapter no. Topic Page no

Declaration…………………………………………………. 2

Acknowledgement…………………………………………. 4

Abstract…………………………………………………..... 5

Table of contents…………………………………………… 6

List of table and figures……………………………………. 7

Chapter 1 Introduction

1.1 Technology Industry……………………………………

1.2 Introduction to Apple Incorporation……………………

1.3 Motivations of research………………………………...

1.4 Research Objectives…………………………………….

1.5 Research question……………………………………….

1.6 Organization of Study…………………………………..

Chapter 2 Literature Review

2.1 Introduction……………………………………………..

2.2 What is branding? ..........................................................

2.3 Benefits of branding a company (Apple)……………….

2.4 STP Process……………………………………………..

2.5 4 Ps (marketing mix) of Apple………………………….

2.6 SWOT Analysis of Apple………………………………

2.6 Apple's competitive edge……………………………….

Chapter 3 Methodology

3.1 Purpose of the study…………………………………….

3.2 Type of research………………………………………...

3.3 Research Method………………………………………..

3.4 Types of data……………………………………………

3.5 Target population……………………………………….

3.6 Sample size……………………………………………..

3.7 Sampling Method……………………………………….

3.8 Data Collection methods………………………………..

3.9 Questionnaire design……………………………………

3.10 Hypothesis……………………………………………..

3.11 Pilot Survey……………………………………………

3.12 Limitations and Remedies to overcome them…………

Chapter 4 Data presentation, findings and analysis

4.1 Response rate graph…………………………………….

4.2 Data presentation, Findings and Analysis……………..

4.3 Hypothesis………………………………………………

4.4 Summary of the findings………………………………

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Chapter 5 Conclusion and Recommendations

5.1 Conclusion……………………………………………..

5.2 Recommendations……………………………………..

Bibliography………………………………………………..

Appendices

Appendix A – Cover letter

Appendix B – Questionnaire

Appendix C – Plagiarism Report

List of Tables and Figure

Table no Page no Figure no Page no

1 29 1 14

2 30 2 15

3 30 3 16

4 31 4 16

5 31 5 16

6 32 6 19

7 32 7 29

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SECTION-II

CHAPTER 1: Introduction

1.1 Technology Industry Wiki invest (2012) Technology states, the technology industry provides foundation for activities such as, chip production, information and communication systems, and computer systems. The companies belonging to this industry serves as developers and manufacturers of the products which increase efficiency and production of cell phones, computers, televisions, and other communication and information systems. It is a huge industry with a high growth potential, but it is sometimes go through volatile cycles, like the semiconductor industry. As chips are getting smaller and globalization is increasing, demand for faster and efficient technology, demand for technological industry in increasing.

1.2 Introduction to Apple Incorporation Wikipedia (2012) Apple store states, that, Apple Incorporation is a multinational company that creates and sells consumer electronics, computer software, and personal computers, selling in 363 stores worldwide, with global sales of about US$16 billion in merchandise. The company was first founded on April 1, 1976 in Cupertino, California by Steve Jobs, Steve Wozniak, and Ronald Wayne and then incorporated on January 3, 1977. The company was named as Apple Computer, Inc before for the first 30 years. The word "Computer" was then removed from its name on January 9, 2007. The company's traditional focus was on personal computers shifted towards consumer electronics. Now the company's best-known products are the Macintosh line of computers, iPod, iPhone and the iPad, along with their other line of products including, Mac OS X (operating system), iTunes media browser, iLife suite of multimedia/creativity software, iWork (suite of productivity software), Aperture (professional photography package), Final Cut Studio (suite of professional audio and film-industry), Logic Studio, a suite of music production tools; Safari web browser and iOS (mobile operating system).

1.2.1 Mission statement of Apple Inc According to Apple Inc (2012), ''Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.'' Another mission statement is: "Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings."

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1.2.2 Vision Statement of Apple Inc

According to Apple Inc (2012), “We believe that we are on the face of the earth to make great

products and that’s not changing. We are constantly focusing on innovating. We believe in the

simple not the complex. We believe that we need to own and control the primary technologies

behind the products that we make, and participate only in markets where we can make a

significant contribution. We believe in saying no to thousands of projects, so that we can really

focus on the few that are truly important and meaningful to us. We believe in deep collaboration

and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And

frankly, we don’t settle for anything less than excellence in every group in the company, and we

have the self-honesty to admit when we’re wrong and the courage to change. And I think

regardless of who is in what job those values are so embedded in this company that Apple will

do extremely well.”

1.2.3 Objectives of Apple Inc

As stated on the website Apple Inc (2012) are:

To obtain products and services within tight timeframe, at a cost providing the best value to the

customers and shareholders.

To keep creating and releasing computers and consumer electronics those are user-friendly.

To open more stores even on international locations to increase sales and dominate world

market.

To innovate on a regular basis.

1.2.4 Major competitors of Apple Inc

Samsung, Microsoft, Dell, HP, Blackberry, Nokia

1.3 Motivations of research:

As the competition in the technology industry has increased, it has become mandatory to make a

study on the importance of using a marketing strategies of branding for Apple, to stay at the top

of consumer’s mind, to cope up with the changing environment, to gain competitive edge, to

make improvements in future and to attain goals set by the company.

1.4 Research Objectives:

To analyze the importance of using a marketing strategies of branding for Apple Inc and to find

out how STP strategies helps Apple's brand.

To find out about the benefits of branding for the company and to find out how branding helps to

gain a competitive edge by differentiating themselves and how it increases customer loyalty and

increases brand awareness.

To find out about the branded product and its related price, promotion and placement and to find

out the strengths, weaknesses, opportunities and threats the company may be facing.

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1.5 Research question:

1.5.1 Leading question:

What benefits will Apple and its customers benefit from after using branding marketing strategy?

1.5.2 Subsidiary questions:

Does branding allow Apple Inc to communicate company's objectives, mission and vision

clearly to their customers?

Does branding helps Apple to differentiate its products from its competitors, by gaining

competitive edge?

Does branding allow Apple's customer to easily recognize and recall the company and its

products?

Does branding allow Apple Inc to charge premium for its products and yet maintain customer

loyalty?

How will using STP strategies, 4 Ps of marketing mix and SWOT Analysis help to enhance

Apple's brand?

Does branding really contribute in making a difference in Apple Inc's success?

1.6 Organization of Study:

Chapter 1: Introduction

Chapter 2: Literature Review

Chapter 3: Methodology

Chapter 4: Research findings, data presentation and data analysis

Chapter 5: Conclusion and Recommendations

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CHAPTER 2: Literature Review

2.1 Introduction

This section will provide the details about the qualitative data, providing a foundation for all the

details to follow.

2.2 What is branding?

According to Kotler (1999), branding is a ''name, term, sign, symbol or design, or a combination

of all these that identifies the goods and services of one seller or group of sellers and to

differentiate them from those of competitors.''

Branding does not only allow your target market to choose your company over the competitor's,

but it helps in getting your prospects to see you as the only company that provides a solution to

the consumer's problems.

It provides a company’s with a recognizable and trustworthy badge of originality, an intangible

guarantee, i.e. a promise of performance that the product will meet with desired consumers'

expectations.

2.2.1 Apple's Branding Strategy

According to marketing minds (2012), Apple Inc. uses the Apple brand to compete across

several highly competitive markets, including the personal computer industry with its Macintosh

line of computers/laptops and related software, the consumer electronics industry with products

such as the iPod, digital music distribution through iTunes Music Store, the smart phone market

with the Apple iPhone, magazine, book, games and applications publishing via the Apps Store

for iPhone and the iPad tablet computing device, and movie and TV content distribution with

Apple TV. The company is also establishing a very strong marketing presence relative to the

rival (Google) in the advertising market, via its business Apps and iAd network.

Steve Jobs, the co-Founder of Apple, described the company as being a "mobile devices

company", largest in the world as their revenues are bigger than Nokia, Samsung, or Sony's

mobile devices business.

2.2.2 Brand Awareness

It is when the consumers are familiar about the life or availability of the product. It is the degree

to which consumers associate your brand with a specific product/service.

As indicated by Management study guide (2012) in their article '' What is brand awareness?'',

Brand awareness may include of:

Brand recognition- is when the consumers have good knowledge of brand when they are asked

questions related to a specific brand and they are able to differentiate a brand on the basis of

having noticed or heard about earlier.

E.g. Is I-phone related to Apple or Samsung?

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Brand recall- It allows a customer to recover a brand from his memory when given the product

Class/ category, needs satisfied by that category or buying scenario as a signal, i.e. if they are

able to recall the brand from their memory.

E.g. Showing a logo of Apple's brand, and asking which brand does this logo belongs to.

2.2.3 Apple's brand personality

As stated by About.com (2012), ''What is branding and how important is it to your marketing

strategy?'',

a good brand helps a company to achieve these objectives:

Helps to deliver the message clearly

It confirms your company's credibility

It connects your target prospects emotionally

It motivates the buyer

It strengthens user loyalty

Apple has a branding strategy that focuses on the emotions. Apple brand's personality is about

Lifestyle, imagination, liberty regained, innovation, passion, hopes, dreams and aspirations, and

power to the people through technology. The Apple brand personality is also about simplicity,

making life easier for people as they have people-driven product design, and is a humanistic

company with a heartfelt connection with its customers.

2.2.4 Apple's Brand equity

According to Investopedia, it is the premium value that the company realizes from a product with

a recognizable name as compared to its generic equivalent firm. Companies can create brand

equity for their products by making them memorable, easily recognizable and superior in quality

and reliability. Also, mass marketing campaigns may help to create brand equity. Brand equity is

said to be positive if the consumers are willing to pay more for a branded product than for a

generic one. Brand awareness plays a key role in building brand equity. Create reliable brand

image, slogans and Tag lines, helps to strengthen brand awareness which therefore improves

brand equity.

Marketing minds (2012) also states, Since Apple has strong brand awareness, it has high sales

and high market share and the consumers are well acquainted and familiar with the brand and its

products. They are also willing to pay premium price for their products, relative to the

competitor's brand due to Apple's positive brand equity. Apple is not just intimate with their

consumers but there is a real sense of community among users of its main product lines.

Therefore, this also helps to create consumer's brand loyalty (where brand loyalty is when the

consumers become committed to your brand, choosing it over competitors and making repeat

purchases over time.)

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2.3 Benefits of branding a company (Apple)

2.3.1 Emotional Appeal – As stated by Clarity marketing LTD (2005), emotional appeal helps a

great deal in targeting customer's emotions with product names. A strong, recognizable brand

will acts like a‘short cut’ in decision making process, as the customers don't dither over

alternatives or compare options where there is no clear point of difference, and instantly chooses

your brand as they know what it stands for. For instance, as Apple manufactures technological

items, the name of each product clearly reflects technological aspects like iPod touch, which

indicates that it is a product that allows you to play and choose music through touch properties. It

therefore, helps in creating an integrated appeal to specific emotions promoting the product

recognition and sales.

2.3.2 Memorability and Familiarity – According to Marcia Yudkin (2012), brand helps to

create a reputation and good will for a company. It is very hard for customers to refer to a

company as "that what sits name store" or to refer business as "the shop from the Yellow Pages."

In addition to the company name, it gives people to give constant reminders reinforcing the

identity of companies they will want to buy from. Memorability can come from the logo, its

design, color, style etc. which helps to nail your company's name in the minds of the public.

Similarly, after your brand is nailed in the minds of your customers, that’s when your customers

have become familiar and aware of your company’s existence in the market. Branding allows

having huge effects on non-customers too. Psychologists' studies have proved that familiarity

develops liking for it. Also, the customers who have never bought from your company, may

many tomes be willing to recommend your company to others even without having any personal

knowledge of your products or services. Therefore, the half bitten Apple logo and the brand

name 'Apple' help a great deal to help customers remember, be familiar and recommend the

brand to others.

2.3.3 Premium image and Premium price - Branding allows a company to differentiate

themselves from competitors existing in the market, because of which instead of dealing with

price-shoppers the customers become eager to pay a higher price for your company's goods and

services. A strong brand let the customers associate themselves as being a company that offers

premium quality, trendy products and is offering unique products that other companies are not

offering.

2.3.4 Extensions - When your company's brand is well-established, you can spread the respect

you've earned to a related new product, service or location and win acceptance easily of the

newcomer. For instance, when Apple introduced a new product extension line of Ipad, the

customers trusted the brand so they didn't feel reluctant and bought Ipads anyway, making these

tablets quite popular of its kind in the market.

2.3.5 Loyalty - When customers have a positive experience with your company's brand, they are

more likely to buy your products and services again in future rather than the competitors.

Customers that are closely bonded with your brand's identity may not only repurchase what they

bought earlier, but may also buy related items of the same brand, and recommend your brand to

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others and resist the lure of a competitor's price cut. The brand identity helps to create and anchor

such loyalty.

Apple's loyal customers wait every year to buy a new version of iphone every year, regarding the

high price and numerous other phones existing of competitors brand in the market.

2.3.6 Lower marketing expenses – Branding helps a company to invest less in marketing

(promotion) expenses, though you need to invest money in order to create a brand, but it's more

like a one off investment as once it's created you can maintain it and do not need to tell the whole

story about the brand every time you market it. For instance, Apple promoting for iphone by

Apple, everyone knows that iPhone is a touch phone produced by the brand Apple.

2.3.7 Greater company equity- Branding your company allows you to get more money when

you decide to sell it. Also, it allows the company to borrow loan even if the company's facilities

and inventory vanished, just because of their brand name. Similarly if Apple Inc founder ever

decides to sell the company he will get more money.

2.3.8 Less Risk and Quality Assurance –Lynne Haley Rose (2012) states, when you market a

Product/ service with a strong, positive brand association, you communicate an assurance of

quality to the potential customers, which makes the consumers more likely to buy from your

branded company rather than a no name company. Often, superior sales are due to the trust and

expectation of quality that the recognized brand has established through an integrated marketing

program. This is the reason that customers prefer to buy Apple's products rather than those that

are unbranded.

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2.4 STP Process

It consists of a set of three strategies namely (Segmentation, Targeting and Positioning) that are

created after branding, and further helps in developing marketing strategies for Apple's brand.

Figure 1: STP process

2.4.1 Segmentation- As stated by University of Southern California (2012), when the market is

divided into sub groups, known as market segments, in order to create product differentiation

strategies and to exploit these segments to the firm's own use. There are several segmentation

techniques that can be used, like:

Demographic segmentation: It is when the market is segmented on the basis of age, gender,

education, income, occupation, etc.

Geographic segmentation: It is when the market is segmented on the basis of city, state,

region or country.

Psychographic segmentation: It is when the market is segmented on the basis of life style,

Social class (Upper class, middle class, lower class, blue collar, and white collar), behavior,

opinions (liberal/conservative), values or ethics.

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Apple Inc segments their market by:

Figure 2: Apple's segmentation

As we are in an age of mobile computing, it helps to see the continuum of connected devices

from the perspective of their means of mobility; namely, whether they are wear-able, pocket-

able, bag-able or portable.

According to Mark Sigal (2010), such diverse set of device Apple offers from physical buttons,

keyboards and moue to multi-touch and tilt, providing a window into the types of use cases and

workflows that they are used for optimizing. Apple has used their vertical integration of the iPod

media player and the iTunes marketplace, to their advantage as it creates a billing relationship

with 160 million consumers via simplified discovery, purchase and distribution, providing a

window into how their market segmentation approach is simultaneously harmonious and

discrete.

The iOS-based Apps and their corresponding “ecosystem surround” directly overlay on top of

iTunes and the iPod media player. This approach is like business school study of how companies

can apply strategies and tactics across product lines and product lifecycles.

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Therefore, Apple has the ability to be judicious in its implementation of differentiating hardware

Components at the display, phone, camera and video capture level.

2.4.2 Targeting- It is the second stage of the STP process. After the market has been separated

into its segments, the marketer will select a segment or series of segments to target at, and then

resources and efforts will be targeted at the segment.

Different targeting methods can be used by the firm, like:

1. One supplier targeting a single segment with a single product.

Figure 3: Targeting 1

2. One supplier with one product, targeting all segments.


3. One supplier, with several brands and targeting different segments for each brand.

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Apple Inc has been using the second approach of being one supplier that is targeting many

segments. According to the Matt Asay, (2010), Apple mainly targets people, as it focuses on

users and lets them decide how and where they’ll use their products.

2.4.2 Positioning- According to Switchtomac, 2009 'Understanding Apple's positioning',

positioning is the third and final part of the STP process. Positioning is one of the simplest and

one of the most useful tools for marketers. After segmenting a market and then targeting a

consumer, you would proceed to position a product within that market. Positioning is all about

the 'perception', and it may differ from one person to another. E.g. What you perceive as quality,

value for money, etc., maybe different to another person's perception about it.

Apple is positioned as a premium brand in the mind of the customers that demands and earns a

price premium. This price premium spans the entire Apple product lineup encompassing the

Macintosh, iPod, iPhone, software, and accessories. Therefore, Apple's has positioned them to

target a less price sensitive customer, thus which has created a culture and a set of activities

through which Apple differentiates itself from competitors to meet the needs of their targeted

customers.

2.5 4 Ps (marketing mix) of Apple

2.5.1 Product:

According to Boseng (2011), Products are the goods and services that a business provides for

sale to target the market. Apple like any other company began with the products. At first Apple

computers (MAC) were considered as an overpriced niche product with a low market share.

Only communications segment considered it as a great took for design and AV applications, but

the rest of the people remained loyal to the traditional PCs; but Apple continued to build their

base of brand advocating through design, combining unprecedented features and innovative

styling. In the recent years, Apple diversified it product mix by introducing new line of products,

keeping up with the competitive consumer electronics market. Some of their well-known

products such as the iPod, a portable music player was the first product range that was launched

to compete in the portable media player market and not after long came the iPhone (the most

innovative device that has several features like mobile phone capabilities, music player, small

personal organizer and portable computing, all put in a one tiny handheld which dominated the

mobile phone market). What makes iPhone unique is that it allows customization to be done

suiting the individual needs accordingly, making it relevant to its target market. Other famous

products of Apple comprises of ipad, another handheld touch form of mini-computer and Apple

TV.

2.5.2 Price:

According to CJ (2011), Price concerns with the amount of money that customers should pay in

order to purchase the company's products. Apple has never considered pricing as one of the

competitive advantages. They only use their best resources to make a great final product first,

and then only worry about the costs. The only buck to this trend we have seen now is with iPad.

Apple’s competitors release their own tablet devices, but none of them are coming any closer to

iPad’s entry price of $499 even when everything is equal in regards of the hardware and

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component quality. It is clearly seen that Apple is leveraging some of the supply chain

advantages earned from the iPhone and iPod with regards to materials like touch screens and

flash memory in order to keep iPad’s pricing down, which will prove very difficult for the major

competitors to approach in the near term. Rival firms such as Samsung operate in many different

business segments that ties together the multiple component suppliers, would probably come

close over time, but it assuredly is an uphill battle for even the best of them to compete in the

short-term. Therefore, the high price charged for its products also portrays the high quality of its

products, for which customers are willing to pay for.

2.5.3 Promotion:

According to Villing and Company (2011), promotion refers to the act of communicating the

benefits and value of your company's product to their consumers. Apple’s commercial spots are

instantly recognizable by everyone whether you are a fan of their products or not. It is easy to

identify their commercials immediately because of the use of the simplistic approach of the

layout of their product featured on a white background, with catchy music playing in the

background, using the approach ''Less-is-more products, meets less-is-more advertising''.

Everything in their advertisements are visual, and visually plentiful, but not overpowering as

some ads can be. When a new product gets launched, along with the press conference, several

major tech blogs and websites also take part in covering the event. Apple spends half billion

dollars annually on paid media, which is actually lesser than rival brands Microsoft and Dell.

However, given the memorability of Apple’s advertisements, it seems to be more pervasive than

it actually is. In addition, if there was a poster child for the powers of word-of-mouth marketing

and brand loyalty, it would be Apple.

2.5.4 Place

Villing and Company (2011) states, Place is related to the distribution, location and methods of

getting the product to the customers. Apple has adopted a hybrid distribution channel involving

an online store, physical outlets and the retail points of the exclusive mobile service provider and

its online store. Apple recognized that by getting their products used by students, could influence

brand preferences more in the development years of a new generation of computer users. The

most dramatic 'Jobs-led' initiative involved the 4th element of marketing mix “place”, which was

the opening of its now iconic Apple retail stores. Apple expanded its consumer reach by building

numerous new retail outlets, owing and operating around the world in the last ten years. It has

also placed their products from iPods, iPads, and iPhones in about every store that sells

electronics these days. Also, from numerous retail outlets to a great e-commerce website, like

Amazon, Apple's website, making their products as easy to buy for consumers as anything out

there today.

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2.6 SWOT Analysis of Apple

It is a method of is a method of analyzing a business, its resources, and its environment.

Figure 6: SWOT Analysis Model

To evaluate the progress, success, and faults of Apple Inc, SWOT analysis is being used. SWOT

analysis is a strategic planning tool which helps to evaluate the strengths, weaknesses,

opportunities, and threats of an organization. It helps in identifying the internal and external

areas that needs improvement and internal and external areas that can be proved successful.

2.6.1 Strengths

According to Slideshare (2012) 'SWOT Analysis for Apple', Strengths relates to the resources

and capabilities that can be used in developing a competitive advantage.

Apple has positioned itself to be a pioneer of producing high tech and innovative products in

the computer (MAC), mobile (iphone) and electronics (ipad, iPod) industry.

It is one of the original hardware producers in the market that controls both the manufacturing

of its products as well as they create their own internal components for the core of its computers.

Apple has a set of standards for high quality products in order to meet customer satisfaction.

It has a strong and dedicated Research and Development department which helps in creating of

new efficient, innovative, compact, user friendly and feasible to use products.

A company known for having the most brand loyal customers who buy their products for

quality, regardless of the high price. Such powerful loyalty of customers means that Apple has a

strong positioning of their brand and that they not only creates new customers but retains them,

as they keep coming back to avail the company's products and services, which also motivates the

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company to extend their product line like with the recent introduction of the tablet (ipad)

They have a strong presence in the corporate and education segment, with a strong brand name

known globally.

They do smart marketing, that is clever and which takes advantage of customer's frustrations

with other brands products.

Eye catching retail stores with high tech products and providing experiences of Apple's

software.

2.6.2 Weaknesses:

According to Knowledge Wharton high school (2012), Weakness relates to the absence of the

strength.

Increasing competition in the market, many similar producers of tablets, smart phones and

computers, therefore it may be a difficult task of ensuring consistency and quality for its

products.

Failure of notability and lack of promotion of two of their products Apple TV and Mac mini.

Decision to restrict iphone to a single mobile operator (non jail break phones) was an issue in

many countries.

Pressure on Apple to increase the price of their music download files on iTunes as many of the

music industry artists make more money from iTunes (i.e. downloadable music files) than from

the CD sales. The company is resolute, and if they start giving it in to for the music producers, it

may be perceived as a commercial weakness.

Premium pricing for all products lose a potential customer base that are price conscious.

Very proprietary and controlling as they have their own operating system (MAC and ios), this

keeps design control inside and up to standards, but it does not have a wide adaptation of its

hardware, especially computers, where it has a relatively small market share. Apple has veto

power over Apps sold.

2.6.3 Opportunities:

According to Muller (2010), Opportunities are the external factors that help in achieving the

objectives of the firm.

Constant growth of the computer, mobile and technology market, allows room for Apple's

products demand in the future.

Growing market of green and energy saving products

Joint venture, to maintain good relationships with companies and to eliminate competition.

More international expansion into the Asian countries.

Market gap, filling it in by introducing new features and technology. E.g. iPhone being used by

business professionals more often now due to its new features and functions.To introduce new

line of products related to the same mobile, computers and electronic market but

aimed at the price conscious customers.

The use of Intel chip will allow new machines of Apple to be compatible with Windows

Operation System which can be used to develop iTunes and music player technology to be

applied to a mobile phone. Apple should continue to create such opportunities through new and

21

innovative software markets in order to strive to introduce its groundbreaking hardware into

these markets.

2.6.4 Threats

According to Slideshare (2012), Threats are the external factors that do not support in achieving

the objectives of the company.

High completion in the market with mass existence of technology giants like Microsoft, Dell,

Samsung, HP, HTC, Nokia, Toshiba, etc, making the market highly saturated.

Shifts in consumers tastes from Apples products to other firm's products.

Emergence of substitute products like Samsung Tablet, which has a potential to kill the need of

having a phone along as it allows making calls along with the tablet features.

Increasing trade barriers and introduction of new regulations.

Premium pricing for its products, may not be affordable by all therefore losing vast number of

potential customers.

Global recession as it may reduce wants of the customers.

2.7 Apple's competitive edge

According to Trellian (2012), Competitive advantage is defined as strategic advantage; it is when

a business entity has a benefit over its rival entities within its competitive industry. Achieving a

Competitive advantage helps to strengthen and position a business better within the business

environment.

2.7.1 Apple Marketing

According to Rob Enderele (2004), Apple really stands out in its marketing. The company

simply seems to understand what will get people excited about its products and services, then

only it executes on its vision. They don’t talk about features or technology, but about how the

computers will make your life better. Apple has also not been afraid of in-your-face campaigns.

The company has run campaigns that have shown Intel-based laptops catching fire and getting

flattened by steamrollers. Also, the place where Apple puts its logo on its products is unique; on

laptops the logo is right side up when the screen is open. As Apple believes that the logo is not

for the person who bought the computer but for the person who is in the market for one. It is

good advertising placement which should not be a throw-away design element. Apple also does

the best placement in the TV shows which really showcases a logo. Even when the other vendors

get a spot, their logos are quite hard to see, as their logos on laptops do not light.

2.7.2 Apple's hardware and Software

According to Ben Benjarin (2011), the rest of the PC industry is struggling with differentiation,

Apple has had it since day one. Apple is good of a software company than a hardware company.

Apple makes extremely good hardware as they are the only ones who can make hardware worthy

to run their software. Steve Jobs once stated that, “People who are serious about great software

need to also be serious about great hardware.” This is why Apple makes software that allows to

makes hardware decisions in order to maximize the value of their software. Not only do they

make a great Operating system which sets them apart but also they create extremely good “core”

software named as iLife. Apple’s iLife software is far better than most of the third party

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software’s used for creating movies, music, DVDs, etc. Therefore, most of electronics companies

are either hardware or software companies only, they are not both like Apple which makes Apple

to stand out among competitors.

2.7.3 Apple is organized differently from all other competitors

As indicated by Andrea Regnette (2011), all the consumer electronics companies are organized

as Business Units, which tend to be fully integrated with their own R&D and P&L. Usually these

Business Units are in competition with each other and may carry a high risk of weakening the

brand equity and lowering loyalty to any company. Apple on the other hand is organized as

being a company that manages products, not categories. Apple has one R&D base that is

common across most products, and looks at one P&L, despite its huge turnover. As a result,

Apple's products are all fully compatible with one another, accessories can be used on multiple

products and in short, and consumers enjoy a great brand experience. This approach allows

customers to have great trust in the brand.

2.7.4 Apple's retail strategy

Apple has their own retail stores, though many of the companies failed miserably at having their

own stores. However, for Apple this has been one of the most brilliant moves they made. The

reasons that why some other companies tried owning their own stores and failed was due to

location or a lack of priority, but Apple got both of those correct.

Apple had been very careful about how people buy their products, they authorized retailers with

small shops that carried Apple’s products and accessories, also they provided an outlet for

support and repair. They later decided to control the retail experience themselves instead if

investing heavily in external retail experience.

Ben Benjarin (2011), also adds that location plays a significant role; they have their stores

located in malls, as the consumers are already in shopping mode. The location plays well into

supporting Apple's strategy. The fact that consumers can go in and get support or repairs for their

products and then get some shopping done while they wait is a bonus. Primarily it is a priority

that Apple places focus on their retail strategy which has set them apart from those who have

tried retail and other outlets in the past. Apple spends top dollar on the look and the in-store

experience and it shows. However, there is always room for improvement in Apple stores, they

have assembled a strong team, experiment heavily, and listen to customers.

Since, Apple owns their own retail experiences they get a chance to have direct conversations

with their customers and potential customers. This helps Apple to think about future needs of

their customers and how their products can help them to solve current and future problems.

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CHAPTER 3: Methodology

3.1 Purpose of the study:

The main purpose of the study is to attain these research objectives:

To analyze the importance of using a marketing strategies of branding for Apple Inc and to find

out how STP strategies helps Apple's brand.

To find out about the benefits of branding for the company and to find out how branding helps

to gain a competitive edge by differentiating themselves and how it increases customer loyalty

and increases brand awareness.

To find out about the branded product and its related price, promotion and placement and to

find out the strengths, weaknesses, opportunities and threats the company may be facing...

3.2 Type of research

Descriptive Research - According to Ghauri and Gronhaug (2005), descriptive research is

conducted for the purpose of finding answers to the structured questions like, who, what, where,

when, why and how. It helps in clearing the distinctiveness of a population or an observed fact.

As stated by Zinkmund (2000), “descriptive research studies are based on the previous

understating of the nature of the research problem”.

It mainly involves the use of methods like: surveys, observation, secondary data, panels, etc.

E.g. of application: Who are our existing competitors? How strong is our brand image?

Therefore, descriptive research has been used since dissertation requires to answer structured

questions like who, what, where, when, why and how, allowing answers to be distinctive of the

observed facts. Surveys and secondary data is used is mainly used to conduct the research.

3.3 Research Method

The research method used for the research is:

Survey Method

According to Kotler, Armstrong, Ang, Leong, Tan, Tse, (2005, page 119), Survey research is the

most widely used method to collect primary data; this approach is best suited for gathering

detailed information. Survey research is very flexible; it can help to obtain many different kinds

of information in many different situations. Researchers can select target groups for asking

questions about their knowledge, attitudes, preferences and behavior

In order to gather information regarding the marketing strategy of branding in Apple, a survey

questionnaire will be used to collect data due to its flexible property of providing different kinds

of data i.e. both qualitative and quantitative.

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3.4 Types of data

3.4.1 Primary data – It is the first hand obtained data for any issues or specific information

collected directly through thorough observation and research. (Kotler, Armstrong, Ang, Leong,

Tan, Tse, (2005), Page 118)

Researchers here are using survey (questionnaire) method to obtain the primary data regarding

the respondent's views about using branding strategies and related marketing strategies related to

Apple.

3.4.2 Secondary data – It is the second hand data obtained by the use of secondary sources such

as articles, books, journals, internet, etc. (Kotler, Armstrong, Ang, Leong, Tan, Tse, (2005), Page

117)

For the research related to the marketing strategy of branding Apple, the secondary data was

collected via the use of internet (websites, articles and journals) and books mainly. The

secondary data collected was presented in the dissertation in the form of a literature review. The

citations and referencing states clearly from which online websites, published articles or journals

the data was collected from. Few of the reasons that the secondary data was also collected along

with primary data were because of its readily available nature, and it helps to support primary

data, making it more specific as it helps to uncover the gaps, deficiencies and other information

that needs to be collected. Also, since it is economical, and saves time, efforts and expenses, it

provides a quicker solution to the problem. The secondary data collected answered a few

questions about what benefits did branding bring Apple, who the competitors are, and Also, it

helped a great deal to get a clearer view of Apple's segmentation, targeting , positioning and

marketing strategies, along with SWOT analysis model that was used to analyze the data. The

secondary data helped a great part in achieving most of the objectives of the research like how

primary data did, and it supported the primary data research thoroughly.

3.5 Target population

The target population that this dissertation is aimed at consists of working people and students

belonging of both sex (female and male).

3.6 Sample size

The sample size chosen for this research consist of 50 people.

3.7 Sampling Method

According to Statpac (2012), there are mainly two types of sampling methods like:

3.7.1 Probability sampling- it is when each sample has an equal chance of getting selected.

3.7.2 Non-probability sampling- It is the exact opposite of probability sampling as the chance

of getting selected is unknown.

Simple random probability sampling (It is the basic method of probability sampling, where

each member of the population has an equal chance of getting selected) along with Non-

probability

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Convenience (when the most conveniently available sample is selected) and judgment

sampling (when the samples are selected by experts based on their judgment) is used to conduct

the survey research

3.8 Data Collection methods:

According to University of Wisconsin (2012), The data collection method used for gathering

data for their search of marketing strategy of branding in Apple is a questionnaire (It is a survey

method in which a set of questions are given to the respondents to fill in, in order to collect

data)form. A questionnaire in a web based form is being used, containing of all close ended –

questions with set responses is being used.

(Source: Accessed: 24th October 2012)

Perks of using a questionnaire in a web based form are that it is relatively cheap, covers a large

geographical area and takes comparatively less time than other data collection methods.

3.9 Questionnaire design

Like to the web based survey questionnaire: http://obsurvey.com/S2.aspx?id=B7A39096-9CFD-

4BE2-9FFF-B3B2AD11EFF6

The questionnaire mainly consisted of all close ended questions to find the responses suiting the

respondents from the given choices in order to find the exact information required and to

minimize the time required to fill in the survey, with one rating scale question with rating

ranging from (1 to 5), in order to collect quantitative data associated with the research along with

qualitative, also rating scales helps to find the respondents perceptions related to the questions

asked.

The purpose of each question added to the questionnaire is described below:

Q1. Name – to identify each respondent

Q2. Email Address – for authenticity of respondents answering the survey

Q3. Gender – to find out the ratio of gender interested in Apple Inc

Q4. Age – to know the age group of respondents interested in Apple Inc

Q5. Monthly Income - to know the income group of respondents buying or interested in Apple,

further indicating their social class.

Q6. Are you brand conscious? – to find out about respondents perceptions about branded

businesses to regular businesses.

Q7. Do you think branded products are better than the regular products in the market? –

to find out if using branding strategy helps to differentiate a company's products/services from

others.

Q8. What differentiates branded products from regular products? – to find out about the

factors considered important by the respondents when using a branding strategy

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Q9. Have you ever heard about the brand Apple? - to discover about the respondents ability

of brand recall, recognition and brand awareness and to find out if branding helps in

communication the firm's mission, vision and objectives to the respondents

Q10. How did you first hear about Apple Inc? - to find out about the success rate of using

promotional marketing strategy.

Q11. a) Have you ever owned one of Apple's products or used one of their services? – to

know about the purchasing power of respondents and success rate of implementing a branding

strategy

b) Which products of Apple have you owned? - to find out about the most successful product

line

Q12. When thinking about Apple, which of the following do you mainly associate Apple

with? – To find out about the market positioning of Apple over competitors

Q13. What makes Apple's products different from other brand's products? – to find out the

success factor of Apple's products in comparison to competitors

Q14. How would you rate Apple's products and services on a scale (1 to 5), where 5 being

Excellent and 1 being Poor. - To find out about the satisfaction level of the respondents about

the overall products and services of Apple

Q15. What do you think about Apple's products pricing? – To find out if the respondents are

receiving value for money.

Q16. Where do you usually shop for Apple's products? – To find out about the successful

distribution marketing mix strategy

Q17. When buying a smart phone, which brand would you prefer to buy? – to find out

about the positioning of Apple's products in comparison to competitors in the mobile market

Q18. When buying a Pc or a laptop, which brand would you prefer to buy? - to find out

about the positioning of Apple's products in comparison to competitors in the computer market

Q19. Do you think Apple's products should be charged premium for? – to find out

respondents views about the high set price for their products

Q20. Would you have still considered purchasing Apple's products, if Apple wasn't a

branded company? – to find out if branding made a huge difference to Apple's success

All in all, these questions helps Apple Inc to attain the objectives of the research and solve the

issues related to branding and marketing strategies.

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3.10 Hypothesis

3.10.1

Ho: π = 50 % as many respondents prefer branded products to regular products

Ho: π > 50% (significantly higher) numbers of respondents prefer branded products to regular

products

3.10.2.

Ho: π= 80 % of the respondents perceive high quality as being an important factor of branded

products than other factors

Ho: π≠ 80 % (significant change) in the number of respondents who perceive quality as being an

important factor of branded products than other factors

3.10.3

Ho: π = 50 % as many respondents think Apple's products deserve to be charged premium for to

those who don’t

Ho: π< 50% (significantly lesser) numbers of respondents think that Apple's products deserve to

be charged premium for

3.11 Pilot Survey

It is a preliminary study done before a completing a survey and it helps in testing the

effectiveness of the proposed method. For this research, 2 survey questionnaires were used as

pilot survey, filled up by 1 male and 1 female. Later, due to their feedback and

recommendations, few questions were deleted and few were changed and inserted. Therefore, the

result of pilot survey helped a lot in determining the understanding level of the respondents.

3.12imitations and Remedies to overcome them

1. Language barrier as some respondents were not able to fill in the questionnaire due to

their limited knowledge of English. A translated version of questionnaire can be prepared

in few of the commonly spoken languages.

2. A sample of 50 respondents was used due to cost and time restrictions. A large sample

should have been taken in order to minimize response errors.

3. In the web based form of questionnaire, there may be a chance that due to lack of

understanding of few respondents, few guessed answers may have resulted due to lack of

personal contact with the respondents. Try to supervise the person filling the

questionnaire.

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4. Time elapse rate was high when receiving back the answered questionnaire, especially

since the questionnaires were mailed to the respondents. Try to send constant reminders

to the respondents to fill in the questionnaire faster.

5. Some respondents may not have used Apple's products/services but may have filled up

the survey, just to look smart or well informed.

Try to use quota sampling method.

6. Due to time constraints as a simple random, convenience and judgment sampling

methods were used for the survey.

Try to use more appropriate methods next time in order to reduce randomness and to

reach target audience.

7. Uneven gender distribution due to more convenience of women available and willing to

answer the questionnaire.

Try to distribute questionnaires equally among both men n women.

29

CHAPTER 4: Data Presentation, Findings and Analysis

4.1 Response Rate Graph

The total time it took for 50 responses to get collected for this research was almost 1 month

(October 5 –November 8).

Figure 7: Response graph

4.2 Data presentation, Findings and Analysis

Q1. Gender?

Frequency Percentage

Male 18 36%

Female 32 64%

Total Response 50

Table 1: Gender

Figure 8: Gender

Figure 8, shows the gender (demographic factor) of 50 respondents who participated in the

survey. 64% female respondents and 36% male respondents, i.e. majority consisted of female

respondents.

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Q2. Age?


Below 15 0 0%

16-20 11 22%

21-25 34 68%

26-30 2 4%

31-40 3 3%

Above 40 1 2%

Total Response 50

Table 2: Age

Figure 9: Age

Figure 9, shows that majority 68 % of the respondents belonged to the age group (21-25), along

with 22% belonging to (16-20) and rest minority between 4 %(26-30),6%(31-40) and 2%(Above

40).This proves that Apples customers mainly consisted of young people.

Q3. Monthly Income


Below 1000 17 34%

1000-5000 23 46%

5001-10000 6 12%

10001-20000 3 6%

Above 20000 1 2%

Total Response 50

Table 3: Monthly Income

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Figure 10: Monthly Income

Figure 10, shows that majority of the respondents income fell into the range of 46% (1000-5000)

and 34% (Below 1000) Saudi Riyals, along with minority 12 %, 6% and 2% falling between the

range of (50001-Above 20,000).Therefore, results also help to possess the social class of

majority of the respondents, which belongs to a lower income group as the research mainly

consisted of young people consisting of students and fresh career starters mainly.

Q4. Brand Conscious?


Yes 34 68%

No 16 32

Total Response 50

Table 4: Brand Conscious

Figure 11: Brand Conscious

Figure 11, shows that majority (68%) of the respondents happen to be brand conscious, who

consider branding an important factor whereas, minority (16%) were found to be not brand

conscious.

Q5. Do you think branded products are better than regular products in the market?


Yes 38 76%

No 12 24%

Total Response 50

Table 5: Branded products VS Regular products

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Figure 12: Branded products VS Regular products

Figure 12, shows that majority 76% perceives branded products as being better than the regular

(unbranded) products, and minority 24% thought vice versa.

Q6. What differentiates branded products from regular products?


Brand name 22 44%

Price 19 38%

Appearance 13 26%

Quality 43 86%

Other 4 8%

Total Response 50

Table 6: Differentiation between branded VS regular products

Figure 13: Differentiation between branded VS regular products

Figure 13, shows that the factor Quality with majority 86% of the respondents votes was

considered to be the most perceived factor linked with branded products from regular products.

The other factors such as Brand name itself (44%) and Price (38%) were also linked as being

important factors, along with minority of the votes for factors such as, Appearance (26%) and

Other (8%).

Q7. Have you ever heard of the brand Apple?


Yes 50 100%

No 0 0%

Total Response 50

Table 7: Brand Awareness

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Figure 14: Brand Awareness

Figure 13, shows that all respondents (100%) have heard about the brand Apple, which shows

that the brand Apple has effective and successful brand awareness.

Q8. How did you first hear about Apple Inc?


Word of mouth 27 54%

Internet/ Social media 26 52%

TV Advertisement 11 22%

Flyers 2 4%

Outdoor Advertisements

(boards/buses)

7 14%

Newspaper/Magazines 10 20%

Sponsored Events 1 2%

Total Response 50

Table 8: First heard about Apple

Figure 15: First heard about Apple

Figure 15, shows that the most effective marketing strategy of Promotion, through which the

respondents heard about the brand Apple was Word of mouth (54%) and Internet/Social media

(52%) along with other ways of advertisements like TV advertisements (22%),

Newspaper/Magazine (20%), Outdoor advertisements (14%), Flyers (4%) and Sponsored events

(2%).

34

Q9. Have you ever owned any of the Apple's products or used one of their services?


Yes 39 80%

No 11 22%

Total Response 50

Table 9: Used Apple's products or services

Figure 16: Used Apple's products or services

Figure 16, shows that majority (80%) of the respondents have used and owned Apple's

products/services, with only minority (22%) of the respondents who haven't. Therefore, this

proves that Apple's marketing and branding strategies are quite effective.

Q10. Which products of Apple have you ever owned? (Answer this question)


I-Pod 23 57.5%

1Phone 25 62.5%

I-Pad 15 37.5%

Mac PC/Laptop 5 12.5%

I-Tunes 15 37.5%

Total Response 40

Table 10: Apple's products/Services owned

Figure 17: Apple's products/Services owned

Figure 16, shows the products/services owned/used by the 80% of the respondents, Majority

(62.5%) of the respondents owned I-phone, (57.5%) owned I-pod and minority (37.5%) owned I-

pad and used I-tunes with only (12.5%) used Mac Pc/Laptop

35

Q.11 When thinking of Apple, which of the following do you associate Apple with?


Smartphone 23 30%

PC/Laptop 25 10%

Music 15 16%

Other 5 4%

All of the above 15 40%

Total Response 50

Table 11: Apple's positioning

Figure 18: Apple's positioning

Figure 18, shows how well Apple's positioning strategy implemented, it was noticed that

majority of the respondents associate Apple with All of the above (40%), Smart phone (30%),

and minority associations are made with Music (16%), PC/Laptop (10%) and Other (4%).

Q12. What makes Apple's products different from other products?


Brand name 19 38%

Design/Style 24 48%

Features 21 42%

Technology 22 44%

Price 11 22%

Quality 19 38%

Innovations 15 30%

Total responses 50

Table 12: Differentiation factor of Apple's products from competitors

36

Figure 19: Differentiation factor of Apple's products from competitors

Figure 19, shows the results of differentiation factors that make Apple unique from competitor

brands, it was noticed that majority of the respondents answered Design/Style (48%),Technology

(44%), Features (42%) as being the top differentiating factors along with other factors like Brand

name and Quality(38%), Innovations (30%) and Price (22%).

Q13. Rating of Apple's products and services [(1 to 5) where, 5 is Excellent and 1 is Poor]

Excellent Good Average Fair Poor Total

Response

Frequency 17 26 4 2 1 50

Percentage 34% 52% 8% 4% 1%

Table 13: Rating of Apple's products/services

Figure 20: Rating of Apple's products/services

Figure 19, shows the satisfaction level of the Apple's customers by their products and services, it

shows that majority (52%) of the respondents rated the service as being good with an average

rating of 1.9.

Q14. What do you think about Apple's pricing?


Expensive 36 72%

Affordable 14 28%

Cheap 0 0%

Total Response 50

Table 14: Pricing perception about Apple's products

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Figure 21: Pricing perception about Apple's products

Figure 20, shows that majority of the respondents find Apple's pricing as being Expensive

(72%), and rest (28%) find it Affordable with (0%) finding it cheap, which indicates that

majority find the pricing to be high.

Q15. Where do you usually shop for Apple's products?


Online (Apple's website,

eBay, other)

10 20%

Apple outlets 16 32%

Retail outlets 24 48%

Total responses 50

Table 15: Apple customers shopping place

Figure 22: Apple customers shopping place

Figure 21, shows the results of the successful placement marketing strategy, it was noticed that

majority of the respondents shop at Retail outlets (48%) and rest shop at Apple outlets (32%) and

Online website(20%).

38

Q16.When buying a cell phone, which brand would you prefer to buy?


Apple (I-phone) 21 42%

Samsung (Galaxy phones) 17 34%

Blackberry 8 16%

Nokia 3 6%

HTC 0 0%

LG 0 0%

Other 1 2%

Total responses 50

Table 16: Preferred cell phone brand

Figure 23: Preferred cell phone brand

Figure 23, shows a competitive brand analysis between the most preferred cell phone brand, it

was noticed that Apple I-phone received majority (42%) of respondents votes, Samsung Galaxy

phones (34%) and minority votes for Blackberry (16%) , Nokia (6%), Other (2%), and )% votes

for HTC and LG.

Q17.When buying a PC/Laptop, which brand would you prefer to buy?


Apple (Macintosh) 19 38%

Dell 15 30%

HP 5 10%

Sony 4 8%

Toshiba 2 4%

Compaq 0 0%

Acer 1 2%

Packard bell 0 0%

Asus 4 8%

Other 0 0%

Total responses 50

Table 17: Preferred PC/Laptop brand

39

Figure 24: Preferred PC/Laptop brand

Figure 23, shows a competitive brand analysis between the most preferred PC/Laptop brand, it

was noticed that Apple (Macintosh) received majority (38%) of respondents votes, Dell (30%)

and minority votes for HP (10%) ,Song and Asus (8%), Acer (2%) and Packard bell and Other

with (0%).

Q18.Do you think Apple's products deserve to be charged premium for?


Yes

No

Total Response

Table 18: Premium pricing

Figure 25: Premium pricing

Figure 24, shows respondents views about whether Apple should charge premium for their

products, it was noticed that majority 64% of the respondents think it don't deserve to and the

rest 38% thought it should, which indicates that the respondents may not be getting value for

money as there are many similar competitive brands in the market.

40

Q19.Would you have still considered to purchase from Apple if it wasn't a branded company?


Yes 26 52%

No 24 48%

Total Response 50

Table 19: Branded Apple VS unbranded Apple

Figure 26: Branded Apple VS Unbranded Apple

Figure 25, shows that majority (52%) of the respondents would have still chosen Apple if it was

not a branded company, and rest (48%) would not have chosen Apple if it wasn't branded. The

results are quite controversial as they are quite close to each other and the majority of the

respondents, who may have still bought from Apple, are the respondents who are loyal to Apple's

products, which in a way are brand loyal.

41

4.4 Summary of the survey findings

After analyzing the survey findings, it was found out that more women than men bought from

Apple.

Most of the respondents were young, belonging to a low income group as most of them were

students or fresh career starters. Most of them were brand conscious who perceived that branded

products are better than regular products, as they offer better quality products. They mainly liked

to shop for Apple’s products at retail outlets. Majority of them first came across Apple through

word of mouth, which may be due to a recommendation received from a friend or family. They

associated the brand Apple with almost everything like smart phones, PC/Laptops, music and

other technological items. The findings also highlighted few problems that Apple maybe facing,

like:

1. High prices and High competition: Most of the respondents find Apple’s pricing to be

high and they do not prefer to pay premium for their products due to the availability of

similar kind of competitor’s products existing in the market.

2. Fewer store outlets – as Apple stores are located mainly in public places like malls,

technology streets, etc., for many customers they are not easily accessible.

3. Lack of promotion – for some products like Apple TV very less promotion is being done.

4. Existence of similar products in the market produced by competitive brands, which can

easily be substituted by the customer.

5. Other problems and threats have been mentioned in the literature review through secondary

data information in the form of Weaknesses and Threats, while doing SWOT Analysis.

42

CHAPTER 5: Conclusion and Recommendations

5.1 Conclusion

The main aim of the dissertation was to conduct a study on the marketing strategy of branding in

Apple.

The study helped apple to find out more about the segmentation, targeting, positioning, branding

strategies and marketing mix strategies. Furthermore, a SWOT analysis was done to recognize

the strengths and weaknesses of Apple along with the opportunities and threats that the company

may be facing. The analysis helped Apple in identifying the success factors that will help in

gaining a competitive edge; allowing it to increase profit, brand power and customer loyalty

proving it to be a well-known, leading and a successful company in the saturated technology

industry. Survey findings were made to find if the marketing strategies of branding are proving

to be effective or if any changes are needed to be made in the future. The literature review

consisting of the secondary data and the descriptive survey research consisting of primary data,

they both helped in fulfilling the objectives of the dissertation, which helped in conducting a

study on the marketing strategy of branding, by recognizing the problems that Apple maybe

facing in order to improve or eliminate them.

5.2 Recommendations

5.2.1 Provide value for the products offered

If a perception is created that Apple is offering its customers with fine products with premium quality

in the industry, which is not being offered by others; than Apple should be able to differentiate

themselves from their competitors in order to still keep premium pricing for their products.

5.2.2 Conduct more aggressive promotion

Increasing promotional programs never proves to be damaging for any firm, but only proves to be

beneficial, it not only helps to attract potential customers, but also new customers boosting customer

traffic and sales. Apple should also start creating 'TV commercials', in such a way that educate the

customers about the latest technological product, making it seem more appealing. Also, they should

start focusing on advertising all products not only new products in order to meet the sales target for

all products.

5.2.3 Make maximum innovations

Technology market is a highly competitive market, it’s very easy for competitors to clone your

products and sell as new products by making small innovations. Therefore, it has become very

important to keep making constant innovations in design, features and specifications in order to

differentiate your product from competitive brands and to be able to dominate the market.

5.2.4 Offer price reduction offers from time to time

Instead of not charging premium, price reductions, free gifts, vouchers, VIP cards, etc. can be made

for a limited period of time, to allow customers to buy from Apple more often. Thus, this may help

Apple to attract new target group customers increasing its fan base, along with sky rocketing its

brand loyalty and sales.

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5.2.5 Open more Apple outlets in different area

Since Apple relies on online, direct and retail distribution methods, it’s important for Apple to

expand its direct reach through its own stores and retail stores by locating stores in a more

reachable district, like residential areas so that people can have an easy access to the stores.

5.2.6 For further recommendations refer to 'opportunities for Apple’, which were identified on

page 16 of chapter 2 (Literature review)

44

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47

Thank you

dissertaion on apple inc

Business

marketing strategies

marketing strategy of

importance of branding

related benefits of

apple brands strengths

branded products

apple incs success rate

ps of marketing mix