Apple Inc. Integrated Marketing Communication - Essay Example

?Integrated Marketing Communication Project Part 2 Table of Contents Integrated Marketing Communication Project Part 2 Table of Contents 2 Part1 3 Origin Growth and History of Organization 3 Analysis of Company’s Vision and Mission Statement 3 Product Portfolios 4 Performance of Product Portfolios 5 Credibility and Visibility of Company in Media 5 IMC Strategy 6 Market Analysis 7 Part 2 8 SWOT Analysis 8 Strengths 8 Weakness 9 Opportunities 9 Threats 10 Question 1: 10 Question 2: 10 Question 3: 11 Question 4 12 Question 5 12 References 14 Part 1 The present age of business environment has been dubbed as the age of immense competition characterized by high fluctuations and turbulence in the business environments. Business organizations across the globe are trying to therefore ensure overall organizational efficiency in order to gain an edge over their competitors. The present study would analyze the business strategies of Apple Inc one of the most formidable brands present in the market. The choice of the organization assumes significance considering the magnanimous image of the brand that is known as a synonym for innovations in the business markets. Origin Growth and History of Organization Apple Inc is a US based multinational organization engaged in manufacture of digital electronics and computer hardware equipments. The company was founded in the year 1976 by the name of Apple Computers Inc and since then it has grown into a mammoth organization with a formidable brand image. In the year 2007 the company renamed itself as Apple Inc. The company is presently listed on the bourses of the NASDAQ and the New York Stock Exchange. The company is presently headed by Steve Jobs one of the most dynamic business leaders of the modern world. The company is known for its innovations in technology and bringing out cutting edge technology products that are unmatched by any of its competitors in the market. Apple Inc was one of the pioneers in the industry that designed computers like mackintosh (Apple, 2011). Analysis of Company’s Vision and Mission Statement The mission and vision of the organization is to be an innovative market player that manufactures products that are unique, distinctive and highly innovative in the market. The main mission statement of the organization is “an apple at every desk” (Birnbaum, 2009). The company aims to create innovations that are simple yet elegant and are highly technology intensive. The company’s mission is to provide the best quality and innovative products to customers across the globe. The company aims to be a global leader in its product category and has accordingly made a global presence by having a dedicated presence in almost all the major economies of the world. The vision and mission statements can be largely correlated with its business strategies that involved launch of products like I-phones, I-pad’s that are highly technology intensive and have attracted a huge attention from the target market audience by virtue of their innovative features. Product Portfolios Apple Inc has an impressive product portfolio comprised of a large array of innovative product offerings. Apart from the company’s traditional products like Mac the company also manufactures a range of other products including iPod’s, iPhone, and iTunes. IPod’s include portable music players that have a sleek design and highly attractive features that allows audio as well as video files to be run by the user. I phone is yet another innovation developed by the organization in the lucrative mobile telephone segment. The unique product tries to amalgamate the excitement of a mobile phone with innovative features like excellent graphics and computing options. The delightful looks make it an attractive option for any individual. Apple also made a foray into the software industry with the launch of the Apple I tunes. This product is essentially a music player that is compatible with both iPods as well as personal computers. In addition to this the company has also produced software’s like I sync, Mobile Me etc that are essentially in the software segments. Apple in its most recent activities has launched the iPad that is essentially a tablet PC that comes with attractive features and a unique design that is perhaps unmatched by any of the other related products in the same category. The most significant aspect in the product strategy of Apple is innovation and uniqueness. These two aspects are perhaps the common line in each of the product lines being manufactured by the organization (Apple-a, 2011). Performance of Product Portfolios Apple’ products have received a very encouraging a positive response from every corner of the globe. The nature of innovations in the product lines are highly responsible for bringing in a strong positioning of the firm’s products and services among the minds of the customers. It is perhaps this reason that has made Apple one of the top most brands of the world that is valued in billions of dollars. In fact the popularity of the products can be analyzed from the fact that people wait in serpentine queues on the day of launch of a particular products, the product launches are also highly featured in various media circles that is very much an indication of the performance of its products in the market. Apple’s products have gained much fame and popularity on the basis of their innovative design and high quality that has delighted the customers. The significant aspect of Apple’s product strategy lies in its ability to deliver products that are largely unknown and hence unmatched by any of the products of their competitors. Products like IPod and IPhone have largely revolutionized the entire industry segment and have set examples for other market players to imbibe. The response of the launch of the products is so impressive that an Apple product launch is viewed largely as a festival with people lining up to purchase the products. Apple’s fame is not just popular in US but also in other parts of the globe where its brand image is equally popular. Credibility and Visibility of Company in Media One of the main reasons for the success of the organization has been attributed to the use of media by the company. The company has leveraged the vast potential of both electronic and print media as well as the online channel to create a buzz before every product launch. The company largely leverages upon these media sources to reach out and promote its products to the target market audience. Another initiative in this regard has been the podcasts that are largely web based communications that was initiated by the company in June 2005. It has been reported that approximately 5000 podcasts of the company was observed that year and the growth in these numbers has followed a geometric progression trend that is significantly higher than that of giants like Oracle and IBM (Wilcox, 2006, p.82). IMC Strategy Apple follows a very unique and innovative approach in its marketing communication strategy. Much of this strategy is geared towards the initial phase of the launch of the products. The company does not have a heavy promotional budget however it carefully leverages various sections of the media to create an enthusiasm about its products. Historically Apple’s communication strategy involved use of television and other channels like print media. One of its most successful advertisement campaigns involved super bowl, think different and iPod people campaigns (ICMR, 2008). Another interesting aspect about the integrated marketing communication strategy of Apple is its message based communication strategy that has allowed it to create a favorable positioning of the brand in the minds of the target customers. The company was able to successfully reposition itself from being a manufacturer of computers to a company that is engaged in the manufacture of diversified and unique products like iPods and iPhones. The company largely uses advertising as its main channel for integrated marketing communication. The company has also successfully leveraged the online communication channel that commands a huge target market audience. Use of popular social networking sites like Facebook and Twitter has also helped the company to spread its intended message to the target market audience (O'Guinn, Allen & Semenik, 2008, p.340). Market Analysis Noel Kapferer’s prism for brand identity analyses a brand from six different perspectives and is largely used by business strategists in different organizations to analyze the opportunities and strong points of a particular brand in the market. The six perspectives are physical, personality, culture, reflection, relationship and self image. It is also used to analyze the positioning of the brand as well as the aspect of extension of the brand (Cleland, 2000, p.29). Figure 1: Branding in Various Products of Apple (Source:  Kapferer, 2008, p.285) The company’s products score very well with regards to the physical aspects as Apple’s products are highly innovative and unique in their design. The dynamic and innovative personality of the brand and the products are also observed. Apple’s products represent true Californian culture with its half eaten apple logo symbolising uniqueness and innovation (Kapferer, 2008, p.184). Apple’s products have a trendy and innovative feel that include the reflective aspect of the brand prism as highlighted by Kapferer. A good visionary perspective reflected by the brand also shows its considerable self image. Apple using a formidable innovative approach and a strong ethical aspect by virtue of strict adherence to high quality norms has carved a niche for itself in the minds of the target customers that has given it the edge to be one of the most trusted and favoured brands of the modern day business environment (ProBrand, n.d., p.2). Part 2 SWOT Analysis Strengths The main areas of strength of the company arise from its aspects of being present in different areas of the globe. In addition to this the company also has a very strong brand image that has helped generate considerable advantages for the organization. A large and diversified product portfolio with innovative product features also help in making the brand as one of the most formidable brands of the globe. The company also has a very strong integrated marketing communication strategy that uses every possible media channel including the online channel to promote its product to the targeted customers. Use of a strong public relations strategy along with effective management of the media also emerges as the possible strengths of the organization. The company’s emphasis on producing high quality products apart from a strong and visionary leadership also include some of the critical aspects that help make this brand a formidable company in the world (Datamonitor, 2006, p.18). Weakness In spite of the large number of unique strong points available as strengths for the organization, the company also scores negatively on certain aspects. One of the most important of these aspects arises in the financial management area where the company has a poor return on assets as reported by its financial figures. The figures of return on assets as well as return on investments are considerably lower than that of the average figures quoted for the entire industry segment. The company returns on equity was also not too much impressive that shows considerable areas of concern for the organization. In addition to this the organization also has weakness over its excessive dependence on suppliers. Since Apple’s products are highly dependent on certain key suppliers that makes Apple very much dependent on these suppliers. The uniqueness of the parts also makes the issue more complex. For example in products like iMac the sole supplier of the components is IBM and this makes the company somewhat more dependent on the suppliers (Datamonitor, 2006, p.18-20). Opportunities Considering the strong brand positioning and brand image of the organization the company has extensive opportunities in the area of wireless products. Considering its expertise and the vast market potential this growing business segment that is still in the nascent stage Apple can leverage this product segment and generate business opportunities for itself in the market. In addition to this emerging areas 3G products as well as emerging markets like India and China also holds considerable avenues and opportunities for the organization. The venture of the company into the mobile telephone handset segment also holds considerable opportunities for the organization especially in emerging market economies (Datamonitor, 2006, p.18-20). Threats Apple Inc also faces certain threats mainly on account of heavy competition in the market. For example in the music player category the company faces challenges from players like Sony. It also faces threats from Microsoft with regards to its computer related products. Dependence on economic aspects like disposable income also shows some amount of threats to the business prospects of the company considering the turbulent and fluctuating macro economic conditions. Saturation of markets particularly the European and American markets also shows areas of potential concern for the organization (Datamonitor, 2006, p.18-20). Question 1: What are the major strategic uncertainties and information need areas of the company? Apple Inc faces uncertainties mainly on the account of turbulence in the business environment especially with regards to the macro economic scenario of the economy. The nature of products of Apple Inc and their success in the market is significantly dependent upon the levels of disposable income of the individuals that in turn is again dependent upon the prevailing macroeconomic scenario of a business market. In recent times the economic recession has shown that profit margins can take a severe beating due to macroeconomic scenarios. Moreover with the current downgrading of US credit rating by Standard’s and Poor there is a fresh peculation over a new wave of economic slowdown across the global la economy. These issues can emerge as areas of concern for the organization. Question 2: -What future scenarios can be conceived for the company’s products and brands through this analysis? The analysis of the business and the product strategy along with the marketing communication strategy of Apple Incorporation reveals considerable scope for the organization. The successful blend of innovation and quality backed by an effective integrated marketing communication plan and a strong and visionary leadership would largely help the organization to reach out to greater heights in the global business environment. In addition to this emerging markets like India and China also hold immense potential for the company as suitable destinations that can fuel the growth of the company and its products in those markets ultimately generating profits for the organization. The company can also improve its brand image by further using its innovative approach both in improving its product lines as well as its marketing communication program. The company should also look forward towards expanding in other related areas like 3G technology and digital media that would help the company diversify its spread in the product offering and increase its brand umbrella that would ultimately help in generating more value for the organization. Question 3: -What are the major segments served by the company’s products and services? The company serves numerous customer segments that include both retail as well as corporate customers. Products like IPods, I phones etc are made for the individual retail market audience whereas certain software products, Mac PC’s serves both retail as well as business class customers. Most of Apple’s products are available at a premium as its products are priced at a higher range as compared to the average price of similar goods under the same category. Apple’s products find appreciation both from the retail as well as business class customers by virtue of its superior quality and high degree of innovation in the product line. The company sells its products both through retail as well as the online channel and follows a bricks and clicks model of marketing. The company has its own retail outlets and also sells its products through other distributors and authorized retailers including multi brand outlets. This gives it an impetus to the distribution channel management of the organization and also provides a large customer base to the organization so as to generate greater profits (Datamonitor, 2006, p.24). Question 4 -What consumer needs and motivations do the company’s products and services serve? Apple’s products are largely conceived by the members of the target market audience as highly innovative and quality focused products. The company’s strong research and development team has ensured that customer’s needs are fulfilled. Every new product launched by Apple has some unique design and also has certain very unique features, this serves to add value to the brand image of the organization. Moreover the product segment of the company is such that it largely demands continuous improvements and new innovations. This is perhaps the most critical of the demands of the prospective customers of Apple who largely demand these aspects. The company has also responded to this aspect and by virtue of its research and development, branding strategies and a strong integrated marketing communications strategy has helped the firm to carve a niche for itself in the market. The brand image of the company is so strong that customers feel a sense of pride in owning an Apple product. Question 5 -How attractive is each of the product-markets for the company? The consumer markets of Apple are segregated largely on the basis of geographical boundaries. The company has divided the entire global markets into five district segments namely America, Europe, Japan, retail and lastly other segment that includes Asia pacific region and Australia with the exception of Japan. The European segment also includes the North African nations. Each of the segments have specifically designed products as well as a separate integrated marketing communication strategy based on the local sentiments and culture of the different geographies. The company operates through a network of its own stores as well as other retail stores. In terms of attractiveness the American, European and Japanese markets represents the best markets for the company in terms of value and revenues generated. However with the balance of power shifting towards Asian majors like India and China is also emerging as lucrative markets for the organization considering the economic growth and the consecutive high levels of disposable income. The company also has a captive unit in China for manufacturing products that are shipped all over the world (Datamonitor, 2006, p.5). These and other aspects have perhaps been responsible for making Apple one of the top brands of the globe. References Apple. (2011). Investor Relations. Retrieved August 6, 2011 from http://investor.apple.com/. Apple-a. (2011). Home. Retrieved August 6, 2011 from http://www.apple.com/. Birnbaum, B. (2009). Strategic Planning Mission - Vision – Values. Retrieved August 6, 2011 from http://www.birnbaumassociates.com/mission-vision-values.htm. Cleland, R.S. (2000). Building Successful Brands on the Internet. Retrieved August 6, 2011 from http://images.forbes.com/fdc/mediaresourcecenter/documents/uc.pdf. Datamonitor. (2006). Apple Computer Inc. Retrieved August 9, 2011 from http://www.alacra.com/acm/2009_sample.pdf. ICMR. (2008). Launching iPhone: Apple's Entry into the Mobile Phone Market. Retrieved August 6, 2011 from http://www.icmrindia.org/casestudies/catalogue/Marketing/Launching%20iPhone-Marketing.htm. Kapferer, J.N. (2008). The new strategic brand management: creating and sustaining brand equity long term. Kogan Page Publishers. O'Guinn, T., Allen, C. &. Semenik, R.J. (2008). Advertising and Integrated Brand Promotion. Cengage Learning. ProBrand. (No date). Developing Brand Identity and Brand Personality. Retrieved August 6, 2011 from http://www.probrand.com/pdfs/excerpt.pdf. Wilcox, D.L. (2006). The Landscape of Today’s Global Public Relations. Retrieved August 6, 2011 from http://www.raco.cat/index.php/Analisi/article/viewFile/55444/64576. Read More