MARKETING PLAN: APPLE INC
Marketing Plan: Apple Inc
- Executive Summary
Apple Inc. is among the world’s largest technology-oriented company based in America. The company deals with computer related products, and it focuses on designing, developing and selling of consumer electronics, computers, computer software, and other online services. Apple Inc. Headquarters are situated in Cupertino, California within the Silicon Valley. Apple is known for originality and standing out above its competitors.
Despite designing and creating a conglomerate of consumer and electronic goods, a few of those have been synonymous to Apple Inc. in the marketplace. For example, the Mac franchise of computers integrated with a Mac OS, the iPhone Smartphone brand, iPod, and the iPad are the products that have made an impact in the consumer market. To add to what we already know of Apple Inc., the company also gives its users the opportunity to enjoy their services online like the App Store, iTune Store and iCloud. Lastly, the multinational company “Apple Inc.” also designs and creates consumer software such as the iOS operating system, Safari web browser and the iLife productivity and creativity suites
- Situation Analysis
Apple Incorporation has so far created an impact in the world in terms of professionalism and quality. The company has been operational since 1967 and from then Apple has done nothing but find pure luxury for its customers and everyone who gets involved with the enterprise. It is with no doubt the best company in technology and innovation.
- Market Summary
Apple Incorporation is well known and respected as the world leading innovative company. It is also given a reputation for having a good customer care service that is one of the reasons people always love their products (CNN MONEY 2012). However, for Apple to be what it is now, they must have a marketing team to get their products to the required destination and also educate the customers the benefits and advantages of having the products. Creating awareness of the clients is the fastest way to sell your products, and Apple is doing a good job in creating awareness to their customers.
Apple is an American international corporation with its headquarters situated in California. The company develops and sells consumer electronic goods. The company practices the method of distribution together with telecommunication services along with connected systems of entrepreneurship (LÜSTED, 2012). The company can be said to use a particular method in distributing their products all over the world, this is by using touch points to establish their distribution network i.e. Orange, T-Mobile, Vodaphone.
Apple is all about fun and different. Its products are mainly focused on younger generation. However, the old generation also has many things to get from Apple products. Since everyone needs to have a phone, Apple has to look for features that would both suit the old and young and not neglecting certain generation and by doing that they will stay competitive in the market.
Apple targets all age set of people, however, some of their products are specifically made for the young generation who care about style and what is trending in the market. This therefore keeps Apple on the edge when it comes to innovation in order to keep up with the pace of other competitors.
For Apple to stay on top of its competitors, they must know exactly what the people need. Therefore, they have to assign marketers to go out, get ideas from people, and with that have a clue on the next upgrade to add in their product.
- Competitive prices: Apple is so far the most expensive electronic production in the world. Despite the high prices of their product, they still have millions of consumers all over the world. As far as Apple is concerned, people do not care about the price all what they care about is the quality of the product delivered to them.
- Type: Apple has a variety of products and services that they bring to their consumers. For example for the people who love using iPhones they are given a variety of different Apple phones for them to choose from while purchasing, however, this the purchase on the phones and products differ in prices depending on the upgrades installed.
- Quality: For those people who think that prices of a product matter, Apple is a company that will prove them wrong. For years now, the products created by Apple have been extremely expensive as compared to other competitors. Instead of consumers going for the other products, they end up going for Apple. The reason as to why people love Apple is that they create quality products, which can be trusted by customers.
Apple has so far confirmed a new release on the IPhone, which is said to be launched on 10 September 2015(CNN MONEY, 2013). Reports also say that there might be a new iPad coming out soon. Nevertheless, Google’s Android is coming off the chats with a tremendous rate and so far, nothing Apple has done has been able to change the trend. The iPhones rating at the smartphone market peaked at 25% in the year 2011; this was according to a survey done by Gartner research firm. However, this share dropped rapidly to 21% the next year and again to 14% the next year.
With that fall, Android is left leading the market with 80% share of the market (CNN MONEY, 2013). The iPad is also said to be losing its grip on the market at an alarming rate. Data compiled from tech consultancy IDC shows the iPad rated at 76% of the market when it was introduced back in 2010, however this rating dropped to 35% in the last quarter. Moreover, as Apples products went down Androids tablet almost tripled their share from 24% to 65%. One of the main problems that can be causing these misfortunes for Apple is that it has not released any new smartphone or tablet for about a year now, while on the other side its rivals get to release new gadgets more frequently.
Apple and iPad were legendary when they were released, however rival competitors are now close to beating apple. The biggest question on everyone’s mind is if Apple is going to release a new product that is different from its competitors. The problem is that Apple is having problems is starting a new market where its rivals are dominating. In addition, competitors like Microsoft and Google have already come up with compelling connections between the devices and services and those combinations are driving consumers away from Apple. The smartphone demand is rising in china but Apple remains no. 7 on the chats according to Canalys research firm. Therefore, for Apple so stay on the market it has announced a new cheap iPhone 5C.
Apple is facing an extraordinary competition on all sides. Companies like Nokia, Samsung, and Sony are working tirelessly to take Apple out. Most of Apples competitors use Android and Windows which is much cheaper that iOS and therefore giving the competitors and advantage over iPhone. In most parts of the world, Android has already dominated over the iPhone since they are innovative and have a variety of cheap quality products to bring to their customers.
2.2. Product Offering
Apple offers its customers with a variety of gadgets they can use for communication and entertainment. The most known and common product from Apple is iPhone. This is the mobile franchise offered by Apple, moreover, there are a few designs released even though Apple plans to look into innovation this coming fall. There is the iPad and the Tablet, which can also be used as a form of entertainment or communication.
- Marketing Strategy
Due to the high competition Apple is facing, it has decided to expand and modify its distribution abilities by positioning its own retail stores in major cities all over the world in a market of high quality shopping centers. Apple provides qualified retail floor staff to pick sellers stores, the company has also joined strategic forces with other companies in order to brand and market Apple products and services for example it branded with HP who are now selling branded form of iPod and pre-loading iTunes into a consumer personal computer and laptop. The company also increased accessibility of iPod through a number of sellers that are at the moment not carrying Apples operating system, and therefore increasing the accessibility of online store. There are only a few researches done about Apples strategy such as marketing (KURTZ, D, 2011). All the companies successful retain stores offer their clients a direct experience of Apples branded products. The consumers experience an once in a life time customer care experience
Apples mission is to be more acquainted to their customers wants, and also expand their working environment to more cities in the world. They also plan to introduce new products that will help them keep up with the rapid growing market. With previous success, Apple is planning to keep up with the trend and keep up the image they have created for themselves in the world of technology. The company will mainly focus on Asian countries and Africa and for that, they will have to produce low cost product that can be affordable in the locations.
- Marketing Objectives
In order for a company to have an effective target on its market, it should come up with a specific, achievable, measurable, realistic and time specific market objective. And for a company like Apple to have more market shares in technology it should focus on quality, trend, sleek, bulkiness, price, durability of its products and also its availability to consumers. Below are a few of the market objectives Apple has archived.
- The company has so far dominated other phone and electronic operating system machining it unique from all other products.
- The company has also given people the ability to access their services online all over the world and get to talk to their agents any time.
- Besides focusing on youths alone Apple has been able to give all people exactly what they want in terms of technology current products.
- Target Markets
China has the largest population in the world, and therefore Apples main aim is to assure that they have secured all their customers in china. People in china live being on current affairs in terms of technology and Apple know it has to up its game in order to secure china. However, besides china the company is looking for a way to introduce offices in all major cities all over the world and with that all their customers will have an opportunity to enjoy first hand customer care system offered by Apple (THE TIMES OF INDIA, 2012).
Apple has always managed to emerge on top of other companies in terms of innovation. However due to the current technology the company has been shifted from the top by operating systems like android which so far has the highest number of user according to the (CNN MONEY 2013). However, apple remains to be the preferred technology in some parts and after the announcement of releasing new products; they have a high chance of taking the top position again.
- Marketing Mix
Apple Incorporation business analysis contains competition, cost, discounts and geographical area. The marketing plan for Apple Inc. should include cost considerations. Price being a broad field it involves completion, cost, discount, markup and geographical area. A company might have a perfect idea and marketing strategy, however if the business has the wrong prices for its products then customers will not want anything to do with the products (Gillooley & Varley, 2001).
Apple is always aggressive in terms of marketing their products due to the high competition of electronics in the market. Promotion, as the name suggest, is not as important as marketing. Advertising is mainly used to show the company where the target market for their product is located and any other procedure the company should take on getting out the right product (KURTZ, 2011). When Apple launched iPhone, the company began with 4TV to which it could be used as a means of entertainment and share information about the device and by focusing on new ideas on how to advertise the present 4TV advertisements in 2010 July.
In regarding of the finances relating to Apple Incorporation activities, the following graph will provide an in depth understanding analyses, expenses, sales and expenses forecast and show how these activities connect to the market strategy.
4.1 Sales Forecast
Just like marketing strategies the company also focuses on providing and improving its services. This involves focused marketing procedures such as introducing a website for the company for it to operate as the main source of information for the company (DEPAMPHILIS, 2013). .
After an observation on the above analysis, it is evident to say that Apple is one of the most competitive companies in the world. Apple Inc. is company based in America and it specializes in technology and online services. The company got a double revenue turnover three years in a raw with an average growth rate of above 700%. In the 80s and 90s Apple had the highest success rates in both manufacture and distributing of their products to the consumers (Kurtz 2011). Even though the company faces a number of strong competitors, Apple has some strength that always keep it in the market. The company has an established and experienced team of marketers and advertising team. The fact that Apple sells its products at a higher price is the greatest weakness that the company faces as compared to its competitors in the market such as Samsung.
CNN MONEY (2013). What is eating Apple? The analysts weigh in.
DEPAMPHILIS, D. (2013). Mergers, acquisitions, and other restructuring activities: an integrated approach to process, tools, cases, and solutions.
GILLOOLEY, D. & VARLEY, V. (2001). Retail product management, buying andmerchandising. Routledge, London.
KURTZ, D. (2011). Contemporary marketing. Australia, Southwestern Cengage Learning.
LÜSTED, M. A. (2012). Apple: the company and its visionary founder, Steve Jobs. Minneapolis, MN, ABDO Pub.
THE FINANCIAL TIMES (2012). A little less Samsung in Apple sourcing.
THE TIMES OF INDIA (2012).Apple once again crowned world’s most innovative company.