Apple iPhone: How it has gained popularity in the mass market.
INTRODUCTION
This case study examines Apple Inc and aims to deconstruct how Apple has employed a variety of marketing techniques to understand its customers and deliver the iPhone to the global mass market. The iPhone has revolutionised the smartphone market through savvy customer driven product design and effective marketing. Bajarin (2011, p.1) suggests that with the global smartphone category projected to grow at 49.2% over the next five years, Apple faces the challenge of mitigating market share loss in an environment where competitors are now able to offer a comparable operating system in Android. Moreover with Android’s open system which allows it to partner with
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Based on Porters articulation of three common models used by businesses to achieve and maintain a competitive advantage, Apple’s broad, mass market segmentation strategy has been coupled with differentiated target marketing emphasising Apple’s strengths in design, branding and user experience to enable the iPhone to speak to different target markets (Breyfogle 2010, p.2). The product features and benefits vary across iPhone SKU’s and have been highlighted and differentiated to three specific target segments who are recipients of a tailored marketing mix (Sigal 2010, p.1).
In targeting segments, Kotler & Keller (2009, p.213) noted that there are two broad groups of variables used for consumer markets. These are descriptive (geographic, demographic and psychographic) and behavioural (benefits sought, usage occasions). Apple has utilised a variety of techniques leveraging these variables to target market different segments to shape its positioning strategy to consumers for the various iPhone SKU’s. The company has employed an approach which collectively considers
The sensation of the iPhone is obvious in person; everywhere you go, someone has one of these devices in their possession. With millions of units selling every year, it is no wonder that the device is becoming highly ubiquitous and iconic. Like other Apple products, the iPhone is something that is easily recognized all around the world. The same phone has been selling for over four years now with cosmetic and hardware updates for each year’s new iteration, along with an operating system that is becoming more refined. Since its release in 2007, the iPhone has been a massively successful product for Apple, who has sold more than 100 million units in the iPhone's first four year, including 18.6 million in the first quarter of 2011 (Artman). Other competitors make smartphones that are better than the iPhone in many ways, yet Apple is selling more than ever. Other companies release new phones faster than the yearly refresh of Apple’s iPhones, but the latest isn’t always the greatest. It isn’t the technology that makes the iPhone successful, but rather the cool factor that the device expresses (Mintz).
Apple Computer uses focused differentiation to help sell its computers to a narrow target market of graphic designers and educators rather than the general population of computer users. Apple’s innovation on the ITunes store together with the widespread use of the IPod. The corporate strategy is focused on being a market disrupter, and in turn a market maker, by focusing relentlessly on the customer experience.
Apple was established as an IT company dealing in exclusively in computers. However, competition in the technology sector forced the firm to focus on other consumer products. The diversification strategy has seen Apple’s sales grow tremendously in the last decade, earning the firm the No. 1 brand position at Forbes. The Apple brand is recognized on an international scale and enjoys a strong recognition thanks to its aggressiveness when it comes to creativity and innovation (Tar, 2013). It has a large number of loyal customers who would purchase the new products regardless of the market price, which guarantees profits from the new division.
In this report, I prove that Apple’s iPhone has dominated all other smartphones in the years leading up to 2016. It is the epitome of what a globally recognized product can accomplish when considering how quickly it globalized and the image it provides for those who buy an iPhone. Owning one of these phones is not only a statement, it holds power and value that other smartphones simply cannot top. The company owns the stage when compared to other smartphones, and it’s journey to become the world’s second-largest mobile phone manufacturer is truly incredible. In fact, not only does it lead in technology and phone production, it’s become the largest publicly traded TNC in the world. Everything from its assets to its brand loyalty prove why it has expanded across the globe, and will continue to for many years to come. Apple Inc. has globally expanded by outsourcing nearly every level of its production and became one of the most successful and revolutionary TNC’s in the world, mainly due to the release of the infamous iPhone in 2007.
Apple wants to expand sales to clients who do not own products. Produce hassles free products for the enjoyment for customers. Become the leader in the mobile market. Strategy: Expanding the company’s distribution network to hit more consumers. Continue to invest prudently in Research and Development. Become the mobile leader.
The first steps in the mobile phone market let us understand once more what the key points in Apple strategy are. Innovation and Exclusivity go together, a higher-than-the-average price place the new device as a cult and trend object, something everybody want to have, a real status symbol. In few words Apple probably believes that a key concept in Innovation is the creation of a need. Along with the innovation in design, Apple is a pioneer and a leader as well in Environmental issues, another innovative approach that is granting more and more importance among customers of any product and people in general, due to very sensitive issue like Global Warming and home safety.
Issue 02: Apple is a wildly successful company that generates billions of dollars in profits every year. This is one of the strongest examples of how a company with the right strategy, great products, a strong leader and the willingness to take some risks can become vastly successful. The market in which Apple is strong has intense rivalry for market share. Apple is challenged with staying ahead of its competitors and maintaining long-term relationships with its customers. In order to stay ahead of the competition Apple is forced to keep product innovation a top priority. I would maintain a Blue Ocean Strategy to market our product and maintain our competitive advantage (McGraw-Hill Irwin, Page 152). The company has a strong and loyal customer base which will allow Apple to concentrate the focus to highlighting the features of our products. I will not focus on what our competitors can and cannot do; I will focus the attention to the benefits of having Apple products. Strategic marketing campaigns highlighting the different uses and features of the popular iPhone and iPad will headline the campaign.
Two operating systems currently dominate the smartphone market, Apple and Android. It all started six years ago when Google launched its android system. However, its approach was much different. Google had made just the software, not the device, giving the software free to phone makers to alter and adjust in anyway they pleased to fit their over 70 different phones. Google believed that by offering it free, in the long run would create more internet friendly phones and more ad views for Google. I think that this strategy was successful due to the fact that Android is the world’s most popular operating system loved by many smartphone users. My point here, that Android is the better operating system, than Apple, should interest those who are
On June 29, 2007, Apple Inc. launched sales of the iPhone at Apple and AT&T stores across the country. Many hours earlier, enthusiastic customers lined up outside stores to get the first iPhone in their hands. The iPhone is more than just a breakthrough mobile-phone device. It is a strategy that may expand Apple's sphere of influence. Apple elegantly combined a mobile phone, mp3 player, and personal digital assistant (PDA) on the same machine characterized by its unique, innovative design.
Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has been innovation. They have made an extraordinary effort developing, implementing, and executing its very unique strategy through innovation which has resulted in new product, and the enrichment of the existing ones. More specifically, Apple attempts to meet and supply the needs of a global market, by offering eager and enthusiastic consumers with innovated and high-quality products and services. Apple has employed a differentiation strategy linked to innovation with its three core products (computers, personal media player, mobile phones, tablets and other accessories). A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.
This paper comprehensively describes the marketing plan of a charismatic organization Apple Inc. The main focus of the paper is to describe the most important marketing strategies which Apple has espoused from the date of its emergence and different challenges which it has faced from time to time. The paper begins with an introduction to the organization. Apple Inc. is an American MNC; engaged in the business of developing and marketing of IT products. Apple has expanded its business operations all over the world. Every product which Apple introduces has its own target market; it develops marketing plan and strategies for each of its products separately (Apple, 2012). Apple's strengths include strong brand image, financial strength, product and process design, and highly efficient operations management while high prices and inability of up gradation of some products are its main weaknesses. Apple has threats from its competitors, increasing costs, and economic situations but has greater opportunities in entering new markets, making strategic alliances, and bringing innovations through efficient R&D. Before entering new markets, Apple has to analyze the business environment through sensitivity analysis, and then decide a framework for the future strategies.
Apple has done an excellent job of developing a very distinct strategy through industry leading innovation. This strategy has allowed them to be the frontrunners in new product introductions and the improvement of existing products. Apple has employed a differentiation strategy in an attempt to meet the needs of a global market by offering customers innovative new products and improved existing products. An important part of their strategy involves meeting the needs of the evolving digital electronics and computer markets. Apple has chosen to implement its strategy by designing and developing its
Nowadays, Apple has positioned itself to be an innovator in the personal computer industry and Apple has developed by offering modern products compared to its competitors. According to Apple’s mission statement last year, “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 has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.” (Business Management,
With Apple being so far ahead of their competition, the only problem one can foresee in Apple’s future is how long they can sustain such innovation before they plateau. Apple does a phenomenal job at releasing their innovative products before their competition, but if their innovation cannot hold steady, this may lead to changes in demand for their products considerably. This can be seen with their release of the iPhone, the first successful touch screen cellular phone. Although people swarmed to the iPhone when it was first released because of its advanced technology, as the years have passed, other similar designs, including those with android and windows based operating systems, have drawn a considerable portion of the market. A clear representation of Apple’s attempt to regain some of this market can be seen when the iPhone was released to Verizon Wireless’ customers in
This paper presents a case study of Apple Inc. Apple Inc. is a technology based corporation with emphasis on computer software and hardware (MAC and Apps), tablets (IPad), smart phones (IPhone), and mp3 plays, (ITouch). Apple Inc. has grown tremendously over the years and ever since 2001 has expanded its brand and retail stores to over 375 stores/outlets globally. The business has seventy two thousand eight hundred employees in thirty eight countries. Apple Inc. has truly become one of the most efficacious corporations within its field behind or competing with Microsoft and Google Inc.