The apple company marketing strategy

Marketing Strategy of Apple Inc – Apple Marketing Strategy

January 11, 2019 By Hitesh Bhasin Tagged With: Strategies

Apple is the largest brand in the technology industry in terms of its revenue generated as well as its brand ranking. It is not a surprise to many because Apple has time and time again presented products which were ground breaking and which revolutionised the market.

Apple has given us many delights over the years including the Macbook, the Ipod, Iphone, Ipad, Iwatch, Itunes and others. And due to its excellent product and differentiation, it is close to the heart of many techie enthusiasts.

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Here is the Marketing strategy of Apple

Segmentation targeting and positioning of the brand

There are three major segments which Apple targets. It generally uses lifestyle segmentation as Apple is the most premium brand out there. The segment is usually the urban population with enough buying power for purchasing Apple products. These are people who are early adopters in life but the brand equity of Apple is such that even laggards have started adopting the products.

In the Marketing strategy of Apple, it has three target groups

1. One is the music lovers who are targeted by the Apple Ipod and Itunes.
2. Another target the professionals or even teenagers who are targeted for Apple Iphone, Tablets, Macbook and other such gadgets which can be used by anyone, irrespective of age.
3. And third is the crowd which can use their other products and services like Apple TV and Apple Iwatch. They also use Ibooks, Apple pay etc.

Apple being the world’s number 1 brand has the topmost mind positioning and there is no doubt that when someone talks about Smartphones or Laptop or Tablets, Apple is the first brand that comes to mind maximum number of times.

Marketing mix in the Marketing strategy of Apple – Click here to read the Marketing mix of Apple, Apple Iphone and Apple Ipad.

SWOT analysis in the Marketing strategy of Apple – Click here to read the SWOT analysis of Apple Inc as well as SWOT analysis of Apple Iphone.

Mission in the Marketing strategy of Apple

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.

Vision in the Marketing strategy of Apple

We believe that we are on the face of the earth to make great products and that’s not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution.

We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self- honesty to admit when we’re wrong and the courage to change. And I think regardless of who is in what job those values are so embedded in this company that Apple will do extremely well.

Tagline – “Think Different” is one of the best slogans in the tech industry. Many people assume that Apple launched the slogan “Think different” in response to IBM’s slogan “Think”. However, since 2002, Apple stopped using the slogan in its marketing. But from time to time, the slogan has bounced back on Apple’s website or in their marketing and it has never left the mind of Apple loyal consumers.

Competitive advantage in the Marketing strategy of Apple

Apple has several competitive advantages over its competitors

1. Superior technology products – Macbook and Iwatch are clearly leaders in their market space because of the OS and the technology used.
2. Brand equity – Apple has repeatedly taken the top spot for its brand equity and has a cult following since ages.
3. Revenue over time – Apple has deep pockets due to its high margins.
4. R&D – A major competitive advantage of Apple is the amount it spends on R&D keeping its eyes on the future rather than on the present.

BCG matrix of Apple

When plotting the BCG matrix of Apple, the product portfolio of Apple is clearly divided into four parts.

1. The Cash cows are products which are existing since ages and which cannot be challenged in the current market conditions and have a majority market share when the global data is referred – These are Macintosh, Iphone, Iwatch (50% market share in 2015) and Itunes (a solid support service to all Apple products)
2. The stars are Ipad and Ibooks where there is a lot of competition and Apple has to invest a lot to keep these businesses on top.
3. The question mark is Apple TV which has low market share in an industry which is showing great potential and might grow at a rapid pace in the future.
4. The dog is Ipod because although it has a high market share, the industry itself is rapidly degrowing because Smartphones have replaced Ipods.

Distribution in the Marketing strategy of Apple

Apple has a very smart retailing setup. It has around 450 stores within the US. And these retail outlets are such that they are more focused in helping the customer and making him comfortable with using Apple rather then selling the product and stuffing the product down customers throat.

Apple has also introduced the Apple Genius Bar, which is a walk-in service center and can help any customer in problems they are facing in MacBook or Iphone or Ipad. Overall, the company owned Retail and Service outlets are great.

Along with company owned stores, Apple has set trade partners like Ingram Micro and Redington which are responsible for the sales and distribution of the brands. These trade partners will buy in bulk from the brand and then distribute the product in the market. Thus, besides its own retail stores, Apple is found present in other modern and premium retail stores. These stores are covered by its retail partners.

The Online E-commerce presence of Apple is fantastic. Most E-commerce portals promote the brand themselves because they know that the brand is in huge demand. Besides this, there is very less price penetration in Apple, and hence the channel partners and E-commerce portals are happy too as they don’t have to fight on price. from the home page itself. The combination of retail, distribution and E-commerce gives a complete market reach to Apple.

Brand equity in the Marketing strategy of Apple

Apple has the highest brand equity in the world as of 2016 and it is the topmost ranked brand in the world. The brand worth of Apple is 118.9 billion dollars. The brand has done a lot to reach this brand equity, but a major contributing factor was its ability to give hit products back to back, and to reach across the globe with these excellent products. The combination of both with the excellent marketing communications of the brand help Apple reach the highest brand equity possible.

Competitive analysis in the Marketing strategy of Apple

Although on a company level there is very less competition for Apple, on product levels, there is repetitive competition for each of its individual products. Ipad faces competition from Samsung tablets, Iphone faces major competition from Android based phones, Macbook is facing stiff competition from Dell which also has superior products.

The unique services offered by Apple such as Itunes also face competition from other online music players which are cropping up every day. Ibooks faces strong competition from Amazon and even Apple TV faces competition from Fire TV of Amazon. Samsung gear and other smart watches are rising competitors to Iwatch although Iwatch still holds a majority market share.

Promotions in the Marketing strategy of Apple

Apple is one of the most elegant advertisers as can be seen from any of its print ads in newspapers. You will commonly find Apple ads to be clear and crisp in their message. Their background will be white and there will be a splash of colors on the print ad introducing the product or differentiating the product.

And that is one major strength of the brand. Apple has so many differentiation points that it can have a slew of ads, all targeted towards differentiating the products that it is offering. Not only the print ads, even the video ads do the same. They tell you one point which highlights the product features.

Here is a simple image made by Apple to differentiate between PC and Macintosh. Look at the clean and to the point copy.

Overall, the advertising and promotions of Apple are used tenfold when there is a new product launch. The hype created is so much that you just can’t ignore it. And this hype is continued until the product becomes a success. As the number of products with Apple is less, it is no doubt that it wants each one of its product to be a hit.

This was the Marketing strategy of Apple. The Brand can teach a lot to marketers with regards to differentiation, brand building and most importantly – Innovation.

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Marketing strategy of Apple iPhone – Apple iPhone Marketing strategy

May 10, 2020 By Hitesh Bhasin Tagged With: Strategies

Table of Contents

Segmentation, targeting, positioning in the Marketing strategy of Apple iPhone –

Apple is a famous multinational technology company in the world. It’s in the business of different kinds of technologically advanced consumer electrical products.

Apple segment its customer base based on the combination of segmentation strategies, it uses Behavioral, demographic & psychographic factor in segmenting the market. Similarly, it uses nice & differentiated targeting strategies to be a top player in the smartphone market despite having expensive products as compared to other players like Samsung, LG etc.

Usage & benefit based positioning strategies are used by the apple to differentiate itself from the other players in the market.

SWOT analysis – Here is the SWOT analysis of Iphone.

Apple has never published a “mission statement” or “Vision statement”

Mission – F.A .Q. on Apple’s investor relations site says Apple’s mission statement is:

“Apple designs Macs, the best personal computers in the world, along with OSX, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.”

Vision- “ Not Available ”

Tagline – “Think different”.

Competitive advantage in the Marketing strategy of Apple iPhone –

Apple’s major competitive advantage is its technological advancement & visionary thinking which made it most desirable brand in the world. Telling someone you own an Android doesn’t have the same effect as telling someone you own an iPhone. It’s the name which makes the difference.

Apple understood that their products are of high price so it will only be possible for youngsters with hefty income or backed by rich daddies to purchase their product while middle class who forms the majority of the world population will not be able to purchase the same so they tied up with telecom service provider in various developed/developing nations to sell it on EMI basis with 2-3 years of unlimited calling /data usage. These strategies of Apple have been successful so far in various nations.

Vertical integration has given Apple competitive advantage, as it owns chip manufacturers, controls manufacturing, follows extremely strict software standards, and operates in a nearly closed ecosystem of proprietary 400+ worldwide retail stores. With these advantages, the company has more control of its value chain and, more importantly, its component costs.

BCG Matrix in the Marketing strategy of Apple iPhone –

The iPhone and iPad are stars. They can’t make enough of them. These products are so successful that their growth potential is really unknown.

Apple TV and Watch is a question mark. It makes a bit of money, but it’s not reaching its potential.

The MacBook is the portables of choice right now. The all-in-one iMac is in that cash cow place. They make a lot of them, but computing is quickly shifting to portable and mobile.

The big multi-part desktop is fading away to a dog. Hard drive based iPods peaked a while ago.

Distribution strategy in the Marketing strategy of Apple iPhone –

Apple has limited distribution channels, more than 400 stores & 10000 retail touch points worldwide but with the advent of e-commerce sites & judging by the customer group that apple target to, even limited distribution channel cannot hinder their growth.

3 rd party distributors like Ingram Micro & Redington are playing a major role in making the product available to the retail outlets.

Brand equity in the Marketing strategy of Apple iPhone –

The brand equity and customer franchise which Apple embodies is extremely strong. The preference for Apple products amongst the “Mac community”, for instance, not only kept the company alive for much of the 90’s but it also emerged as a major smartphone player nowadays.

It even enabled the company to sustain pricing that is at a premium to its competitors. Apple follows blue ocean strategy to distinguish & differentiate itself from other smartphone players in the market. Apple’s brand is very much that of a challenge, bringing easy to use computers & smartphones to consumers and small businesses in a way that is focused on the needs, individuality, and style of ordinary people, rather than the conformity and technical mandates of big business.

Patent infringement case against Apple by Smartflash, Samsung and other companies has also affected its brand equity & balance sheet.

Competitive analysis in the Marketing strategy of Apple iPhone –

The technology industry is highly competitive & is crowned by a large number of players who are fighting for existence by eating up each other’s share. Counterfeit products are also the biggest threat to the players like Apple & Samsung.

Because Apple has focused over the years on seamlessly tying its hardware and applications together with an integrated operating system, one works very much like the other has helped Apple in creating sustainable advantage. Apple has always been known for its innovation & out of box ideas like “SIRI”, a personal assistant having features of speech control and interactivity, user-friendly software platform.

Apple uses disruptive innovation in order to kill their earlier technology before their competitor’s do which is making them more competitive & in a way proving to be a smart strategy.

Market analysis in the Marketing strategy of Apple iPhone –

Apple is facing huge competition from Microsoft and Google from the software point of view and LG, Samsung, Sony, Blackberry are already challenging with their innovative brands. Moreover, Chinese companies are giving head-on competition to Apple. Changing lifestyle, developing nations, changing the economics of rural population due to migration to urban areas is the driving force for the success of the whole industry.

Customer analysis in the Marketing strategy of Apple iPhone –

The company is targeting professionals, students between the age of 18 and 35 basically. It has 3 types of customers broadly categorised as:

The hard worker: Hard working people who have low income or maybe university going teenagers, having the aspiration to own an Apple product.

The growing people: Middle-class income group working somewhere or is a businessman.

Upper strata: These people have a high standard of living, they are tech savvy & innovators.

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