MARKETING

MANAGEMENT - II
REPORT ON APPLE

SUBMITTED TO:

PROF. ASHUTOSH PANDEY

SUBMITTED BY:

MUSKAN JAIN

015034

BDA-01(G)
Table Of Contents
S.No. Topic Page No.
1 Introduction 2
2 Vision and Mission 3
3 Segmentation, Targeting, Positioning 4-6
4 Products Analysis 7
4 SWOT Analysis 8
5 Competitor Analysis 9-10
6 7 P’s of Marketing 11-17
7 Market Share Analysis 18
8 Conclusion 18
9 References 18

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INTRODUCTION
Apple was started by Steve Wozniak and Steve Jobs in 1976. Apple Inc. is a multinational
corporation that produces music players such as personal computers (Macintoshes), apps
(macOS, iOS, watchOS and tvOS) and handheld devices (iPod, iPhone and iPad). Apple
names its computers as Macintosh or Macs machines, and its laptops MacBooks. Their
mobile music player line is called iPod, their smartphone line is called iPhone and their tablet
line is called iPad. Apple sells its products worldwide. Apple Inc. used to be named Apple
Device, Inc., but after launching the original iPhone, Apple changed its name. Headquartered
in Cupertino, California, Apple Inc. is an American multinational technology corporation that
designs, develops and sells consumer electronics, computer software and online services. It is
known, along with Amazon, Google, Microsoft, and Facebook, as one of the Top Five
companies in the U.S. information technology industry.

After financial difficulty, Apple returned to profitability under the revitalized "THINK
DIFFERENT" campaign. Rebuilding the status of Apple by releasing the "iMac" in 1998,
opening the Apple Stores retail chain in 2001, and acquiring various companies to expand the
portfolio of apps.

Ongoing innovation and product consistency are the most important areas of focus. Most
important focus areas are continuous innovation and product quality. However, it is only by
aiming for perfection that the kind of goods Apple produces can be made possible. In both its
vision and mission statements, this fact is illustrated. An overview of its mission and vision
statements is given below.

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VISION

The corporate mission of Apple Inc. is to "make the best products on earth, and leave the
world better than we have found it."

The Apple vision statement highlights its core values, such as product quality and creativity.
Apple believes in the simple rather than the complicated.

Its corporate mission statement suggests that Apple Inc. focuses on the operational
production of computing goods. In addition to computers and smartphones, the word
"computing products" includes other goods or services mainly focused on computer
technology.

MISION

Apple's goal is "to bring its customers the best user experience with its innovative hardware,
software, and services."
Nevertheless, Apple's mission statement is primarily about its goods and innovations. It needs
to incorporate more variables, such as the persons it represents and its social obligation to
society.
Apple claims that the key technology behind the goods we produce need to be owned and
regulated and only participate in markets where we can make a meaningful contribution.
We agree that we are saying no to thousands of projects, so we can only concentrate on the
few that are really important and meaningful to us.

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Segmentation, Targeting and Positioning (STP)
The center of its marketing activities is the segmentation, targeting and positioning of Apple.
Segmentation means splitting the population according to certain attributes into categories
whereas targeting implies choosing specific groups identified as a result of segmentation to
sell products.

Segmentation
Criteria Devices
iPhone, iPad, Mac, iPod etc Services, iTunes and the iTunes Store, Mac App Store, iCloud,
Apple Pay etc.
Operating system & software
iOS, OSX, iLife, iWork Accessories
Apple TV, Apple Watch and related accessories
Geographic Region
US and international Density, Urban
Demographic Age
20 – 45, 18 – 30, 20 – 35, 20 – 45
Gender
Males & Females
Income
High earners, average earners
There are three big segments targeted by Apple. Since Apple is the most premium brand out
there, it typically uses lifestyle segmentation. The segment is typically the urban
population with ample purchasing power to purchase Apple products.
Psychographic
User status, Non-users, potential users

Targeting
Teenagers are considered one of the target markets of Apple Inc.. For several reasons, teens
use iPods. Some of the reasons for this are socializing with friends, listening to music and
going to Facebook, MSN, Twitter, etc. There are also several applications for gaming that
cater to them. For adolescents, iPods have become quite a trend.
Apple Inc. also targets college and university students. These students use Apple Inc.
products to record notes easily, such as iPads, MacBooks, iPhones, etc. In their appliances,

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these notes are kept ordered. These items are also light, which makes it much easier to
transport devices to and from school.
Business people are really fascinated by items from Apple. All Apple devices have a very
useful business standard. These devices are used to quickly finish work and to conveniently
interact with customers. Besides, it is simple and coordinated to submit papers.
Adults are also one of the target markets of Apple Inc.. For their daily needs, iPhone's are
convenient for adults, such as phone calls, map directions, internet access, documents and
cameras. Carrying these small devices makes adults lives much easier for communicating
daily.
In three different target methods:
1. One Supplier targeting a single segment with a single product
2. One Supplier with one product targeting all segments
3. One Supplier with several brands and targeting different segments for each brand.
Apple Inc has been using the second approach of being one supplier that is targeting many
segments.

Positioning
Apple is the number one brand in the world and there is no question that Apple is the first
brand that comes to mind as many times as possible when anyone thinks about smart phones
or laptops or tablets. For rich people, innovators and people with good jobs, Apple has
positioned itself to be a lifestyle product. Apple has become a commodity that is wanted but
not easily available. In the long run, this premium positioning assists Apple with wage
inflation, affordability, more people can afford Apple products in the future, thereby will
sales by reaching a wider audience with time, and when people can afford to buy Apple
products they don't haggle over price, price will be secondary and it would be more important
to have an Apple product picture. Ten years ago, very few people in India could afford an
iPhone, but today the situation has changed, as availability has increased, the iPhone is
becoming part of the mass market. Adults Business Citizens Apple Inc. Snobs Teens Snobs
One supplier with one item that targets all segments of segments.
Positioning by Product Characteristics
Apple product has various characteristics which can be used in the positioning process by the
company. Many of the product features of Apple are unique in nature and thus it creates a
different position in consumer mind than other similar products of different brand exist in the
market. Naturally, the products of Apple can be positioned by their use or application as well.
Positioning by product class
Apple is positioned as a premium brand in the mind of the customer that demand and earns a
price premium. Apple has positioned them to target a less price sensitive customer, thus
which has created a culture and set of activities through which Apple differentiate itself from
its competitors.
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Positioning by competitors
If Apple considers Samsung, BlackBerry and Nokia as its competitors then Apple must be in
the premium class as well. Thus, Apple can position itself on the basis of which companies it
target as its competitors.
Apple is in White hot zone. White hot centre is a market position where the entire customer's
attention is on. It’s essentially the prime spot of customer attention, and everyone is watching
every step the seller makes. Today, Apple is at the white hot centre selling its iPhones, iPads,
Mac computer, Apple TV, iTunes, etc., and people are surrounding Apple store in millions,
and making all the big noise, and then put yourself in another store at a corner of the market,
trying to attract customers for your products. And that's where Apple's competitors are today.
Apple primarily used mono-segment positioning type under the leadership of late Steve Jobs,
catering to the needs and desires of a single consumer segment. However, the global
technology corporation has consistently expanded its product ranges since Tim Cook became
CEO, moving from mono-segment positioning to multi-segment positioning.

As the name suggests, with various product or service bundles, multi-segment positioning
aims to reach multiple consumer segments at the same time.

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PRODUCT ANALYSIS
Complexity includes a holistic understanding of multidimensional commodity relationships,
including product, portfolio and supply chain, at various levels of research. In the sense of
strategic management and marketing strategy, we recognize the product portfolio analysis
that has appeared in the management literature and has gained broad acceptance among
managers of diversified companies.

Apple products range from a host of consumer and educational desktop and portable
computers, digital music players (iPods), online music shops (iTunes) and mobile phones
(iPhone). User comfort and productivity are planned for applications.

Introduced to much acclaim in mid-2007, the iPhone is an exceptional example of cultural

adaptation since it is conceived as an intrusion into modern culture styles, especially cell
phone cultures, Internet cultures, and digital culture's wider scenes.

The iPhone acts both as a cell phone signal adaptation and implements new adaptation
practices and policies at the same time.

Apps built for the iPhone are nothing short of fantastic. That's because, like the Multi-Touch
interface, the accelerometer, GPS, real-time 3D graphics and 3D positional audio, they
exploit the innovative iPhone technology. Just tap into the Apple Store and choose from
thousands of applications ready to download now.

Since the Apollo program, it was the biggest launch. How did the smartphone from Apple
that slickly bundles features in other handsets already available. The iPhone is also a
significant new forum for developers, a category that has always found the process of
creating mobile apps a challenging one.

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Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTHS WEAKNESSES

1. Globally Iconic 1. High Priced Products

2. Most Valuable Brand 2. Limited Advertisement And Promotions

3. Top Technology 3. Entering Into Area Of Non –

Competency
4. Brand Of Choice
4. Incompatibility With Other Software
5. Proficient Research
5. Allegations Of Tracking
6. Sustainability Made Possible Through
Liam 6. Unfair Business Practices

7. Expansion In Services

OPPORTUNITIES THREATS

1. Consistent Customer Growth 1. Coronavirus Outbreak

2. Qualified Professionals 2. Supply Chain Disruption

3. Expansion Distribution Network 3. Apple Bullied By Counterfeits

4. Lack Of Green Technology 4. Increasing Competition

5. Smart Wearable Technology 5. Market Penetration

6. Utilize Artificial Intelligence 6. China Tariffs

7. Expand Music Streaming Services 7. Lawsuits

8. Deliver Self-Driving Software 8. Backdoor Mechanism

Technology
9. Mark Zuckerberg Criticized Monopoly
Of iPhone’s App Store

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COMPETITORS ANALYSIS
1.Samsung
Under Samsung's brand name, Samsung Group is a South Korean multinational conglomerate
corporation with subsidiary firms. There is a wide product line in the Samsung Group, i.e.
consumer electronics, semiconductors, telecommunication equipment, home appliances,
automotive, and many more. Samsung was founded by Lee Byung-Chill in 1938 and is
currently in the world's top 10 most valuable businesses.
In the smartphone market, Samsung is one of Apple's biggest rivals. The leader in the sector
is considered the Galaxy smartphones. To increase market share, the Apple iPhone and
Samsung Galaxy are competing strongly. The iPhone market share was substantially affected
one way or another. Samsung will manufacture affordable phones at affordable prices.
Samsung has a strong market share in the notebook segment, but not among the top apple
rivals in the laptop segment.

2.Dell
Michael Dell was named after Dell. It is an American multinational computer corporation
engaged in the manufacture, sale, repair and repair of computers and related parts (products
and services). In the Laptops section, Dell is a good Apple rival. This competition began
several years ago when Dell launched a competitive Dell DJ product and became one of the
early iPod competitors.

Few years back Dell has launched XPS laptops product line which are competing with
MacBook Pro. Though dell is competing with Apple in the PC market, Apple has more loyal
customer base.

3.HP
Created by Willian R. Hewlett and David Packard, HP is a global IT corporation. It's all
about monitors, displays, tablets, printers, scanners. For products of good quality, HP offers
competitive prices. On the other hand, for high-quality products, Apple offers premium rates.
It is Apple's strong competitor. Where Apple focuses on the US industry, HP has centered
outside the US.

4.LENOVO
Lenovo is a multinational technology company that offers laptops, desktop computers,
tablets, applications and servers and is a global pioneer. It has further accelerated its growth
by acquiring IBM personal computers and Motorola mobility.

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Its cutting edge and excellent product selection such as ThinkPad and convertible tablets give
Apple a tough time.

5.SONY
Sony, a multinational company in Japan, is known for its consumer electronics, smartphones,
computers, financial services, movies and PlayStation products. The Sony Vaio and Xperia
XZ android phones can be counted among the Apple MacBook and iPhone alternatives.

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7 P’s
Product:

Apple Inc is known for its innovation in the world. It has always come up with new products
that amazed the whole world. Some of its popular products in the marketing mix of Apple
explain its product strategy as below:-
1. Mac (Macintosh): Generally branded as Mac, one of the premier products of Apple Inc and
the utmost reason for the existence of the company. It was introduced by Steve job in Jan
1984. It was the first personal computer made for mass that had mouse and graphical user
interface. It has come up with newer versions which are still famous among the people of
United States of America. Some of the models that are currently present in the market are:
Mac Pro, iMac, MacBook Air, MacBook Pro, and MacBook.
2. Iphone: Apple Inc was the first company to introduce smart phones that had multiple touch
i.e. iphone. It was basically a combination of a smart phone and ipod. It has many version
with the latest one as iphone 7 and iphone 7 plus.
3. IPad: A tablet of Apple with all its unique smart features.
4. IPod: A unique kind of portable digital music player. Various variations have come up in
the market as iPod Nano, iPod touch, iPod shuffle and many more.
5. Apple watch: Watch where you can keep a track of your fitness schedules.
6. Apple TV: One of the biggest failures for apple is the introduction of apple TV.
7. Software and Services.
If we have a look at the sales history, we can easily see that the iPhone has been the most sold
product.

Apple Watch Series 3 (Apple, 2018)

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HomePod Speaker (Apple, 2018)

The product aspect of Apple's marketing mix is characterized by ease of design and
simplicity of use. Apple products are also known in general for their longevity and high
quality, and the company regularly updates its products. Innovative characteristics and
capabilities are typically combined with Apple products. Although the product range is small,
the products come in various sizes and colours. 

Price:

Apple Inc products are premium products and they do not target all the sections of the
society. Being a market leader in its segment, the marketing mix pricing strategy of Apple is
that of a market leader. However, competition also influences its pricing. Apple is always
known for its innovation and innovation comes up with cost. So, they follow premium pricing
policy in order to delight their customers. Most of its products such as Mac book, iphone,
iPad are all comes under premium products category.
Apple products are costly and are also considered as a status symbol. It is always argued that
why these products are so costly. One of the reasons for it is the technology that is being used
in the products. Once you get addicted with these products, you won’t think about other
brands. The first apple product was sold for £666.66 and since then it kept this range of
prices.

MacBook Pro, $2,399.00 – $2,799.00 (Apple, 2018)

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Premium pricing: Apple uses a premium pricing approach that offers its goods and services
with the highest price tags. Apple has a strong hold on affluent nations where each year the
majority of people can afford to spend over USD750 on a smartphone. The world's largest
revenue-based IT business has a long-standing conviction that consumers would pay more for
goods that are so well made that they do not understand life without them.

Price skimming: It follows a Skimming pricing strategy, which means that the producers set
a High-Initial price, and once the main consumers has buy it, the brand will drastically
reduced their prices to capture the low-end buyers. The objective is to obtain as much
revenue as possible before the market substitutes it with other upcoming products.

Geographical pricing: The use of Apple Inc.'s geographical pricing policy includes setting
different prices in different parts of the world for goods. Due to the discrepancies in exchange
rates between local currencies and the USD, the need for geographical pricing for a global IT
business is justified.

Place:

Apple adopts an aggressive strategy in reaching out to premium customers. There are various
channels that are being used by Apple Inc to target the end consumers are:
1. Apple Stores: 499 retail stores in 22 countries worldwide are run by the world's
largest IT company by sales. In quality shopping malls and metropolitan shopping
districts, Apple retail stores are usually located in high-traffic areas. The retail stores
are spacious and beautifully built locations where customers can use goods and
receive customer service representatives' friendly assistance.

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 2. Online stores: Customers can purchase Apple products from its official website

https://www.apple.com and app store.

3. Direct sales force: The multinational technology company also uses direct sales forces to
promote and sell certain products in certain markets. The company's net sales across its direct
and indirect distribution networks accounted for 29 percent and 71 percent of overall net sales
during 2018, respectively.

4.Third party cellular network carriers: Apple products and services are also offered by
major cellular network providers such as AT&T Inc., Verizon Wireless Inc., Vodafone Group
plc and others as part of their own bundles.

5. Wholesalers: Apple partners with a large number of wholesalers to sell a considerable

portion of its goods and services.

6. Retailers: There are several approved local distributors in London, such as Carphone
Warehouse and Argos, and Mobile Guru and T-Mobile in New York.

7. Value-added resellers: These apply to practitioners certified by Apple to provide clients

with personalized, market-specific solutions.

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Promotion:

Apple Inc targets particular groups of individuals. Thus, its main focus during promotional
activities is on its products and the differentiating factors that make it distinct from rivals. In
Apple's marketing mix, the promotional campaign focuses on aggressive advertisements
using different platforms such as TV, print media, web ads, billboards, etc. If we see the
advertising that Apple has come up with closely, it has always sought to concentrate on how
distinct it is from the rivals. It has always been thought that advertisements should be easy
and related to people's hearts. Such advertisements are to the point and there is no irrelevant
detail. During each of the product releases, these advertisements will arrive and will continue
for a very long time.

iPhone Print Ad (Salerni, 2018)

People:

The AppleCare Security Plan increases the service coverage of consumers and offers one-
stop service and assistance from experts from Apple. Advocates of Apple's brand and its
products are likely to be consumers who buy into the Apple experience. The web is packed
with Apple blogs, reviews and feedback, and these serve as the company's marketing tool.

Apple adopts customer service strategies used in the hospitality industry, more specifically by
the Ritz-Carlton luxury hotel chain, in order to make customers feel comfortable. They
educate their workers on the theory of enriching lives, which is seen as more important than
selling a commodity.

Apple's customer service, as described by Gallo, adopts the A.P.P.L.E. formula:

A-Approach with a personalized welcome

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P-Probe respectfully to consider the needs of a customer

P-Present a solution that the customer can take home today

L-Listen to problems or complaints and address them

E-End with a kind goodbye and an invitation to return.

1. Apple Support (Apple, 2018)

2. Apple-Certified Repaires (Apple, 2018)

Process:

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The activities of the organization are also struggling to fulfill the sector's demands. Apple
applies great importance to every aspect of production and customer service, trying to
integrate the company's culture into all the interactions of the consumer with it.
With Apple's core hardware goods, ThApple provides a one-year limited warranty and 90
days of tech support over the web. Purchasing AppleCare, which extends the service plan and
telephone support, and AppleCare+, which covers unintentional harm on top of the extended
warranty and support, will extend the security.

Physical Evidence:

Apple has online and physical stores and you can notice convenience, minimalism and
elegance like they do for their items, which is really up-to-date and attractive physical proof.
In order to enhance their customer service, the giant technician had worked hard on their
physical proof. The graphic designer of the real Apple logo was Rob Janoff.

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Market share analysis
iPhone sales account for an overwhelming percentage of Apple's revenues, 64 percent in
2016. Declining 2016-2017 year-over-year iPhone sales were highly detrimental to the
bottom line of Apple, just by looking at the stock price, you wouldn't know it. 2017 Q1 sales
rebounded, but as a result of its burning battery fiasco, this was partially due to Samsung's
misfortunes.
The takeaway, how to capitalize, and what might be an enticing stock price for Apple.
Strategy Analytics announced that Apple accounted for just 800,000 of the 30,7 million
smartphones delivered to India in the second quarter of 2017. That marked a decrease of 33
percent for Apple from a year earlier, even though the overall market grew 19 percent.
In the second quarter of 2020, Apple iPhones claimed a market share of 13.5, a small
improvement from the previous quarter. This was enough to bring Apple, behind market
leader Huawei, and Samsung, in third position in terms of global market share.

Conclusion
To develop an emotional bond with its clients and to be viewed as an ethical business by
Apple. This plays into the role of Apple as an emotional brand and enhances it.
To develop an emotional bond with its clients and to be viewed as an ethical business by
Apple. This plays into the role of Apple as an emotional brand and enhances it.

References
http://panmore.com/
https://marbossdigitalmarketing.wordpress.com/2018/10/23/apples-marketing-
mix/

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