Iphone Report

2590 Words11 Pages
Principles of Marketing Report on the UK marketing environment for the iPhone

Executive Summary

This report will analyze and discuss the most important elements of the marketing environment for the launch of the iPhone, that is to say the main three levels of the marketing environment: the micro-environment through the customers, competitors and distributors, the macro-environment through technological, economical, social, political and environmental forces and finally the internal environment through the relation of Apple with its employees and its marketing philosophy. The analysis for the micro-environment is based on Porter’s 5 forces model and the one on the macro-environment is based on PEST analysis. The report
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Apple has already sold more than 39 million iPods in 2006, thus the company can count on its existing customers for the iPhone. The other potential customers for this product can also be: the people interested by technology or technophobes, middle and high class segments who are willing to pay more for a better user experience, professionals in media and design and finally young people who are interested by the image reflected by the product.
Competitors
With the iPhone, unlike the iPod, Apple is not creating a new market it is “muscling the mobile market” (BBC). In fact in the UK, more than 80% of the households have already a mobile phone; however the mobile market is changing so the customers are not only buying a mobile phone for its functionality but also for the other features that it can provide such as the design for example. Since, there is an established market; there will be two main types of competition: one against the distributor and another one against the product.
The competition against the distributor is particularly important in this case as there is only one company distributing it in the UK: O2. One of the rapid reactions to the launch of the iPhone; is by Vodafone who has created a service called Music Station to be launched for Christmas and which will give unlimited access to its customers to more than 1 million music tracks.
Concerning the competition against the iPhone itself, there are already mobile phones in the market that provide
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