experience from old marketing strategy a

7/24/2019 Experience From Old Marketing Strategy A

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EXPERIENCE FROM OLD MARKETING STRATEGY AND POSITIONING OF APPLE:

DOES STRATEGIC MARKETING STRATEGY IS SUITABLE FOR UPCOMING iPHONE?

KESHAB PUDASAINIa

Business Analyst

KENWITS Consu!an"# L!$%

Lon$on

&' BACKGROUNG

&'& B(i)* In!(o$u"!ion: A++) In!)(na!iona ,A++) In"'-

Apple International (Apple Inc.) was branded for designs and manufacturing of computers, communication devices

and wide-varieties of related software, peripheral IT networing solution throughout the world. !owever, closest

competitors" #icrosoft, $ell and other for computer brands and accessories but Apple Inc. was genius in

manufacturing industries lie as" #ac-destop and portable systems include #acBoo %ro, #acBoo, #acBoo Air,

#ac %ro, i#ac, #ac mini and & serve. The Apple i%hone combines a mobile phone, a widescreen i%od with touch

controls, and an internet communications device in a single handheld product. In addition, Apple's i%od line of

portable digital music and video players include the i%od shuffle, i%od nano, i%od classic, i%od touch are designed and

manufactured according to the customer psychological interest and demand of maret.

evertheless, Apple Inc. has taen customer-driven business policy and lunching forestry products on-demand with

reuires uniue operational systems that enable high uality of supply-chain, efficient distribution system and smart

financial caliber. As a result, subseuently *+ stores in maret and / additional stores had been operating for

smooth delivering its products and services globally. The differentiation of software and products, Apple Inc focused

on penetration strategy (in maret and product) that helps to lead computer and software maret globally. till,

Apple's current strategy in the %0 maret revolves around a business of software manufacturing that drives the

hardware and retail categories. The official focus is on growth by concentric diversification into a portable (mobility)

and wireless communications, the digital lifestyle and music, i%od, i%od mini and iTunes.

&'. Cu(()n! iP/on) Su++#0C/ain S!(a!)1#

ilverman (*112) stated that in *112 mid, the Apple i%hone was released and the groundbreaing style of the i%hone

was touted for months before the initial release and has remained the best of the best when it comes to cell phones

over the past several years. Apple drives lean supply chain by functioning as a wholesaler, retailer, and distributor and

maintaining a healthy 3ust-in-time inventory system. 4or this, a well-established panel source providing the most

complete product line in the i%hone line. The supply-chain strategy is that rather than visiting multiple vendors5

outlets, clients go to panel source with confidence for one-period building materials shopping. Apple's percentage is

barely over +1 percent, if one combines the maret share for both #acs and i%hones. #acs account for 6./7 percent of

computers online. In addition, Apple i%hone mareting strategy is very readable, simple and cunning. Apple focuses

on the pure modern style of their products without all the 8fluff8.

#oreover, the Apple i%hone is popular for simplistic but catchy commercials. onetheless, i%hone maret strategy in

video commercials is that 8There's an App for that8 is the new catch phrase that places a solid focus on the apps

available from the App tore. Apple i%hone mareting strategy" especially is that 8every category-from games to

business, education to entertainment, finance to health and fitness, productivity to social networing seems leading

mareting strategies have been contrived to accept advantage of i%hone features" #ulti-Touch, the accelerometer,

wireless, and 9%. Also, the targeted potential successful younger men were the target audience that Apple i%hone

had originally focused on (Apple Inc., *116).

a. :eshab %udasaini has done twice times #BA from the : and epal. And has been woring as #anagement 0onsultant and Business Analyst.

b. :;isit?www . e n w its co n s ulta n c y . co . u
http://www.kenwitsconsultancy.co.uk/http://www.kenwitsconsultancy.co.uk/http://www.kenwitsconsultancy.co.uk/http://www.kenwitsconsultancy.co.uk/


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&'2 A++) In": iP/on) Ma(3)!in1 Pan

The Apple Inc mareting plan is design according to combination of product specification, value service, renowned

brand and e@pected product line. !ence, i%hone mareting plan is the overall outcome of Apple Inc business plan

although it has solid mareting activities and strategy applied to be more popular but Apple management believes that

i%hone is best combination of product and services together.

The product i%hone5 has fi@ed targeted customers. Because of uniue storage capability information and data atdifferent mode, i%hone is widely popular among the segmented customers. !owever, Apple target segments include

various bacgrounds of customers" corporate and professionals users, business and entrepreneurs, social and health

care worers, students and other sectors covering maret for high-end use strategy. The i%hone maret plan loos

increase level of products sold (movement) through comparatively cheaper pricing but greater power to deal

customers

needs and e@pectation. The below mention table shows the i%hone users based on the maretingplan.

Ta(1)! S)14)n! Consu4)( N))$s Co(()s+on$in1 F)a!u()s5B)n)*i!s

P(o*)ssionas tay in touch while on the go ;-mail, instant messaging and phone

ecord information while on the go Applications from #ac C& for notes and

record-eeping

S!u$)n!s %erform many functions without i%od, phone video, T> shows, internet, %$A

carrying multiple gadgets apple branding as fashion statement

tyle and individuality

Co(+o(a!) us)(s Input and access critical data on the applications from #ac C& for notes and

go record-eeping

compatible with widely available software

En!()+()n)u(s CrganiDe contracts, access contracts


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Identify bases forsegmenting themaret

$evelop segmentprofiles

$evelop measure ofsegmentalternativeness

elect target segments

$evelop positioning fortarget segments

$evelop a mareting mi@for each segment

4igure o + #aret egmentation, Targets and positioning, adopted form :otler(sd)

The 4igure o + described the basic strategy to understand the maret segmentation, target and positioning.

!owever, Apple Inc maret positioning can be e@pressed on the following pie-chart.

4igure o *? %ie-chart showing the Apple Inc positioning, ource? IT0andor(*1++)

The 4igure o * highlighted the Apple Inc maret positioning as compare with competitors globally. !owever,

IT0andor (*1++) claimed that Apple smart phone has E1.HG maret share in *1+1 out of total competitor

maret? Basic and mart %hone !andsets in *1+1. =ie as, it also reveals that in about 76G industry share has

covered by Apple Inc itself in the year *1+1. In given both pie-charts show that Apple Inc is leading world

maret through number of output sold and generating revenue and profit margin together.

In addition, the following figure also discourse the Apple position holding between *11H to *1+1period.


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4igure o 7?


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B(an$in1

P(o4o!ions E6+)(i)n")

Con7)(sa!ion

4igure o E? The 4undamental trategy,

The 4igure o E denoted fundamental strategy. In particular Apple Inc case, i%hone customers are segmented (seen

Table o+ also) under the users groups. Because globally, still smart phone maret is relatively narrow as compared

with other general phone maret but the demand of smart phone will rapidly increasing in recent years due to Apple

Inc pricing strategy lower price greater deals or power5.

2'. P(o$u"! S)14)n!a!ion S!(a!)1#

ies and Trout (*11+) stated the positioning can affect the price of product and place of product sold. 4or e@ample, in*112, Apple Inc lunched i%hone from maret, the demographic data revealed that only 711 million inhabitant in

and there were more than 71 million inhabitants in ;uropean countries. #oreover, prime competitors" C*,

Crange, T-#obile >odafone etc. already have in e@istence in ;uropean maret. As a result, Apple Inc. faces multiple

difficulties to stand ;uropean business environment. As well, 9illigan and


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8' APPLE INC' MARKETING MIX

8'& A++) In"' iP/on) Ma(3)!in1Mi6

The approach mareting mi@5 is a model of crafting and implementing mareting strategy. Although, mareting mi@

or blend of organiDation5s overall activities in order to fulfill the consumer needs and organiDation ob3ectives

simultaneously, for this organiDation must consider the #aslow need hierarchy while e@amining the E%s or 2%s

elements. !ere, I have mention i%hone mareting mi@ 2%s5 %roduct, %lace, %rice, %romotion, %eople, %rocess and

%hysical ;nvironment.

4igure o ? #areting #i@

The 4igure o represents the mareting mi@ in relation with different 2%s. The figure, herewith briefly mentioned

about mareting mi@ (2%s elements) base on maret analysis. !owever, the details below in Appendi@ (v) about Apple

Inc. mareting mi@ has mentioned with specific configuration of each elements.

A++) In"' Ma(3)!in1 Mi6

The detail description of Apple Inc. #areting #i@ (2%s) is mentionbelow.

a' PR O DUCT

%ortable 0omputers J including #ac products such as #ac Boo %ro, i#ac, #acBoo Air, #ac #ini,

&serve

ervers J including &serve, &san, #acC & er, #oble#e.

Accessories J including #agic#ouse, :eyboard, =ed 0inema $isplay. shows, audio boos, games.

%eriphal products J including %rinters, torage devices, digital videos and cameras.

%' PRICE

Apple is a premium brand computer that does not attempt to compete on price. The company has

reduced prices after some initial product launches. It uses simming and preimuim pricing strategies.

The Applei%ad is priced at a minimum of FE66.

The Apple i%hone costs begin at F66.

The Apple i%od 0lassic is priced starting at F*E6.

The Apple i%od ano costs F+E6.


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The Apple #ac Boo costs F666.

The Apple #acBoo %ro is priced at F++66.

The Apple uictime %ro for


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Apple Inc5s main website is located at h tt p ?K K w w w .a pp le . c o m

The Apple logo has evolved from its original depiction of ir Isaac ewton under a tree to the

memorable rainbow apple to the presentb lu e App le w i th a b ite t a en out .

1' PR O C E SS

Apple converts new customers and secures their loyalty through a corporate emphasis on customer service.

Apple sees to attract its target maret through bold public relations events (such as the #ac


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9lobal !andset hipments and9lobal !andset >endor #aret

9raph o +? 9lobal #aret %ositioning. ource? 0ompile

The Table o * and 9raph o + represent the global maret position of IT0 providers. !owever, the Apple Inc

%resents at *1+1 to *1++ first uarters, the percentage change in global handsets shipments and global handsets

vendors5 maret share are +++.7/ and *.E respectively although there were five ma3or IT0 providers in competitive

environment. It represents that Apple Inc percentage changes at both areas are significantly high as compare with

others.

Ma(3)! S)14)n!a!ion< Ta(1)!in1 an$ Posi!ionin1 s!)+s

ituationAnalysis

+. Identify the organiDation5s current position, capabilities,

ob3ectives and constraints

#aretegmentation

/. Identify the segmentation variables and segment the marets

2. $evelop the priorities of each segment

#aretTargeting

E. ;valuate the potential and attractiveness of each segment

. elect the target segment(s)

%roduct%osition

*. Identify the positioning concept within each target segment

7. elect and develop the appropriate positioning concepts

The #areting#i@

H. $evelop the mareting mi@ strategy

4igure o? * #aret egmentation, Targeting and %ositioning steps, adopted from 9illigan and


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Di**)()n")s %)!=))n S!(a!)1i" Pannin1 an$ Ma(3)!in1 Pannin1

S!(a!)1i" Pannin1 Ma(3)!in1 Pannin1

0oncentrated with overall, long-term organiDational 0oncerned with day to day performance andresults direction

%rovides the long term framewors for the epresents only one stage in the organiDation5s

organiDation development

Cverall orientation needed to match the organiDation 4unctional and professional orientation tends to

to its environment predominate

9oals and strategies are evaluated from an overall 9oals are subdivided into specific targets

perspective

elevance of goals and strategies is only evident in elevance of goals and strategy is immediately

the long term evident

Table o +? $ifferences between trategic %lanning and #areting %lanning, adopted from adopted from 9illiganand


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#areting trategy election

#areting trategyAlternatives

4actors affecting trategicituations

trategic ituation$etermination

4igure o +? The #areting trategy %rocess, adopted from 9illigan and


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development and so on. It is also being common laboratory for technocrats or techno-scientists, and numerous

personalities but in reverse the high attention to research and development division that others are complaining to be

treated balanced eually because it is said that organiDational achievement is 3oint force of multiple wings.

O PP O R T UN I T I E SD)7)o+in1 N)= Pa(!n)(s/i+ Mo$ai!i)s: IT0andos (*1++) discoursed that there is collaboration between IT0 and

smart phone competitors in regards of technological support. =ie as, upcoming feature 4aceboo5 facility intoordinary cell phone device. This business modal might be worth full for innovative IT0 provider in terms of reducing

mareting cost and may be multi-functional revenue creature if Apple Inc deals long-run agreements.

T)"/no0Poi!i"a B)n)*i!: !owever, it is concern with integrated development of nation but associated with business

environment. The maret segments strategy also helpful for Apple Inc if some countries where geo -political and

socio- economic atmosphere are favorable to establish as resource centre. 4or e@ample, India is becoming resource

centre for IT0 providers. :eeping in mind, Apple Inc can receive other technological benefits if part of the revenue

donated for institutional development of a country. Therefore, in induction phase, transfer of techno-political

opportunity might be vital assets of organiDation in long run perspective.

T H R E A T SITC an$ Co4+)!i!i7) Ma(3)!: IT0 maret is fast moving and high level of competition. Cften it is said that there is

unanimous battle between the IT0 providers. In order to be successful, Apple Inc has paid high attention regarding

research and development, mareting so that competitive position will be holding regularly. !owever, data reveals

that most of the Apple profit margin gained (contributed) by i%hone and i%od. !ence, in competitive world, if this

situation fails due to collective or collaborative competition against the Apple Inc, economically it will not viable for

Apple Inc to strength the maret because of product substitute effects.

Do=n=a($ P(i"in1 P()ssu(): Although i%hone is renowned between the age * to E years people. This is also a

maret segmentation strategy. As well, i%hone is mareted high end phone among smart phone maret but its price is

going fall because of product life cycle. It is understood that i%hone maret almost stable at developed countries but it

facing difficulties to e@tant maret into Asian countries due to economic and unsupported technological development.Thus, Apple Inc might be bearing pressure on pricing strategy.

L)1a o( S!a!u!o(# Si!ua!ion: There are humble features added at Apple Inc product series. 4or e@ample, i%hone and

i%od has multi-functionalist features. !owever, for e@ample, PouTube, iTunes and music player facilities into phone

format. Cn the other hand, there are number of music industries woring at competitive environment. In case of filing

case against these features without prior statutory approval, Apple Inc might be face legal or statutory situation if it

will not tae seriously or address legally.

' CONTEMPORARY ITC WORLD AND APPLE INC MARKETING EN9IRONMENT

As we now that the optimum application and utiliDation of IT0 has taen particular instruments for social and

economical transitional of a country. ;ven, it can be argued that the two ways of globaliDation can be notified the

initiated rapid siDe of technological changes and country5s integrated development but the narrow side of IT0 is eual

part of study. !a3ela (*11 highlighted that the potential of I0T to improve productivity, foster sustainable

development, empower people, reduce poverty, build capacity and sills, assist individuals and small and medium

siDed enterprises (#;s), and reinforce popular participation and informed decision maing at all levels is enormous.

The organiDational ability to serve customers is considered through contemporary social and economical

environments. The revolution in IT0 has reflective implications of these two environments, although mareting

environment has two different folds" internal and e@ternal environment but affects to sail on business world. As we

now, these two environments are measures or e@amined through


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Thus, Apple Inc is eually sustain in product offering maret and economical advantage that help Apple Inc to stand

first class first choice in IT0 world. In addition, Apple Inc has given potential attention regarding the well

combination of mareting mi@ 2%s5 and organiDational driving forces 4ive #s (men, money, materials, method and

maret) for the overall development. As a result, Apple Inc and its products series is becoming choice less products

from customers5 perspective.

!ence, these maret and product segmentation strategy give more delight to become success. Apple Inc maret and

product segment strategy as :otlet et al (*116) stated that mareting environment consists of two aspects" tasenvironment and broad environment, but both carries consumer value positioning, calibration of technological support

and credibility of product mareting.

The pace of IT0 growth is unpredictable. The organiDational should aware on conseuence of changes taen place in

IT0 and its applications, so that the degree of effects can be minimiDed and uantifiable. 4or that, Apple Inc mareting

activities are drive to immediate response on changes environment.

@' CONCLUSION

Apple Inc is e@tensively renowned in product design, smart phone and communication device series, web solution,

portable digital music instrument accessories, and software and services.

The portfolio offering product series are liely remarable and static in its uality assurance. evertheless, integrated

financial indicators are also discourse the positive indication, but ma3or contribution is gained from smart phones and

communication series lie i%hone and i%od.

In addition, Apple Inc has been offering fi@ture IT0 software and product line in modern society. !owever, critical

analysis of %0 marets, basic and smart phone strength and weaness would be significant for detecting competitors

as well. This inspection is entirely centered on Apple Inc at whole but the i%hone is the center of attention because of

e@tremely customer choice product that Apples are going to launch new version of the i%hone. It indicates how old

mareting strategy and maret positioning still leading maret logically and does it will suitable to lead maret for

upcoming i%hone also.

REFERENCES

Boo3s< ou(nas an$ A(!i")s

Apple Inc Timeline (*1+1).Cfficial


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4C AIA A$ T!; %A0I4I0). International 0onference on trengthening egional 0ooperation for #anaging

9lobaliDation. #oscow, *Hth

-71th

eptember *11

experience from old marketing strategy a

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