Marketing Strategy and Tactics of Apple Inc - Essay Example

? Apple Inc. Affiliation: Apple Inc. The Apple Company cwas established in 1970 by two individuals, who happened to schoolmates andfriends as well as share the same passion (Linzmayer, 2004). These were Steve Jobs and Steve Wozniak. During the early years of its operations, it was known as Apple Computer Incorporation due to the fact that it specialized in personal computers. However this changed when later on in early 2007 it changed its name to Apple Inc after moving away from been a company that strictly dealt in personal computer. It broadened its target market to include all consumer electronics and computer software as well. Apple Inc is credited with producing the ‘I’ products, these are the iPads, iPods and the iPhones. When it comes to software, it has produced some of the best such as safari web surfer, the iOS used on mobile phones and the iTunes media browser. The company has also established itself among the largest players of mobile phone manufacturing in the planet scooping position number three after Samsung in position one and Nokia in position two. Over the years, Apple become among the major players in communication and entertainment devices manufacturers (Linzmayer, 1999). Among its range of products that is brags to have invented over the years are: Operating systems I, iWork, iPhones and iPads among others. These products have managed to completely revolutionize the world of communication and entertainment and forced other players in this field such as Microsoft and Oracle company’s to intensify there quality of work and come up with more advanced products or products that are close to the quality that Apple produces. The trend that Apple has set in producing quality and more advance products than the previous has managed to help them acquire a consumer base that has remained loyal over two decades, always believing that they can never find any other quality range of products from any other company globally. This has resulted in Apple Inc registering remarkable market numbers and sales that have never been registered by any other company in history, for instance in 1980 it is said that Apple managed to make over 300 individuals in the US millionaires, something that is beyond reproach by any other company. Apple’s market performance over the years has been oscillating. The stocks have a tendency of merging for months resulting in a given registration of performance in the market then when a major merchandise is released into the market then sells are over the roof resulting in another registration altogether. This is visible especially with the iPad release which thrust the stock over the roof to an all time high recording minimum levels of $430. Apple has surpassed the S&P 500’s performance in 2011 by about 47% and again outpaced this by over 24% in the same year. It is a meg-cap company worth about 495 billion dollars and has a performance recording higher than that of Microsoft and Google Company’s combined. Apple’s operating system put together with Google’s Android controls about 80% of all the globes smart phone market. Many Apple die-hard consumers have been eagerly awaiting the release of iPhone 5 around August-October 2012 after that of iPhone 4 in 2011 was a tremendous success and received positive acceptance across the world. The anticipations of any new products by Apple Inc since 2011 have been due to the demise of one of its core founders and designer Steve Jobs in October 2011. This because Jobs always designed and launched his new inventions (Wood, 2011) hence this created a pool of loyal fans who felt that any replacement to Jobs would fall short of his success in maintaining the company’s image of been the top in the world. The major reason for my choosing of Apple Inc is because of the remarkable success that it has registered coupled by Jobs history of striving to be the best (Isaacson, 2011) since its inception and it has continued on an upward trend finally positioning itself at number one over all the company’s worldwide that produce the same range of products. New Product The yet to be released iPhone 5 according to the latest leaks comes with new features not found on the iPhone 4 for instance it will offer 4G network and be well-matched to LTE network. Other features to be found on the iPhone 5 are: first the TDSCDMA network match, which is used in China, and also have the same capability as the iPhone 4 to be a global phone capable of been used anywhere in the world, that is, on GSM network as well as on CDMA network. Among the features to be found on the iPhone 5 that makes it stand out includes: Camera Unlike any other mobile phone camera ever invented, that to be found on iPhone 5 is rumored to be of a megapixel of 8 with an ability for one to take own photos using the rear side of the phone and even engage in video chatting. It is also rumored that it will contain a technology of 3D as its viewership, be it of photos or recordings. The latter has seen Apple Inc fight for sole ownership fights in court. Screen The screen is expected to be measuring 4-inch, one that will be able to sustain the tablet PC market. It is also rumored that the screen will be curved due to the company’s purchase of 200-300 rare glass cutting technology. Storage iPhone 5 is expected to have an increased storage capacity of 64GB, an increase from 32GB that the iPhone 4 contains. It would also come with a new cloud based digital locker that would enable one to have more storage room. iOS 5 The iPhone is rumored to have a digital music locker and a feature that would enable one to find friends online. The OS will also be installed with other features like facial detection protection, a slim and a fancier body design, a SIM-less phone, a much longer power life, a RAM that could be upgraded to 1GB unlike the 512GB RAM found on iPhone 4, installed map locator and high definition audio amongst other features. Target Market The Apple Company is looking forward to putting the iPhone 5 on as many hands as possible. The same target market that owns an iPod. This market ranges from those who look forward to using the new invention for personal use or for commercial use. It targets those with the need to acquire an invention that is multi-purpose and that has capabilities of even replacing the ATM card, with a new feature of the iWallet. It has a high definition capability which takes video chatting, surfing or game playing to a whole new level altogether. This has been the desired market and this is been made possible for several factors laid down by the management and sales team. First, to be able to reach this market the price has been made more affordable. It is rumored to have a ranging cost of about $700-800 dollars or have a cost of $120 on a two year tie-in. The latest market share that Apple has been in possession of in Europe has forced Apple CEO Tim Cook and his team to re-evaluate there ways of regaining a higher target share than its rival Samsung among other rivals holds in the region in smart phones production. The output of Apple fell from 28% in 2010 as seen in the diagram below. This target market is believed to continue on this trend unless tremendous corrective measures are implemented (William, M. & Ferrell, 2012). Commercial users have been one of the major target markets of iPhone 5. This is due to the fact that several of the features installed goes beyond personal/ home use (Clark, 2010). This are: iCloud This is an application that has made it possible for iPhone users to store everything of importance in the phone. These could be music, mails, photos or applications that are of importance. This is different from the way people used to have different devices to store all these stuff, for instance iPods for storing music, journals for documentation and albums for storing photos. This feature has also made it possible for one to download music and get the same quality as the one they have downloaded. With these feature, commercial users are able to avoid the risk of having all there vital materials lost in the event that the storage device such a computer crashes or is stolen. The bulk that comes with carrying such devices is also reduced by more than half thus making it convenient if the activities of the user demands constant movement between locations. Face to Face This feature has made it possible to not only engage in voice chat but also see the other persons face while talking. Not only is this a milestone in mobile phone manufacturing but also something that ten years ago was unimaginable. It reduces the chances of one giving vital information to the wrong individual impersonating the real individual. This enables one to have business transactions face to face despite the distance. Airplay This enables one to transfer what he or she is watching from the small iPhone screen to the larger HDTV. This is important for instance when an individual needs to share information on his mobile phone with those in a room in a situation whereby a projector cannot be procured as soon as possible. It could also enable one play games from the phone to the screen or view any other activity fro the phone on the screen. AirPrint This enables an individual to get in hardcopy form any material from the iPhone using a printer. No cord whatsoever is needed as this could be done on a wireless basis. Photos taken or downloaded could be printed this way or even material typed on the phone could be produced. Connectivity The iPhone is able to toggle between two antennas for broadcasting and receiving. It also is quicker when it comes to linking callers, loading or downloading. On the other hand it is a phone that can be used worldwide regardless whether one is on GSM or CDMA network. For a commercial user, this enables one to maintain the use of his mobile phone regardless of his location globally, unlike in instances whereby a new handset or SIM card has to be purchased when I a different location so as to be able to access the local networks of that region. Multi-Purpose Built in Application The iPhone is installed with apps that can do anything that the user desires ranging from checking the calendar to sending or receiving emails. All the user has to do is find the app or ask Siri to do that for him. There is always the right app for whatever is needed and lies within the borders of what the iPhone can do. Brand Positioning The new iPhone 5 is expected to be well advanced than any other mobile phone in the market globally. This is due to the fact that it has features that are rare to a gadget so tiny and light. The ability to carry such a multi-purpose device around sets in miles ahead of its competitive devices with the same features but of a bulky state and fulfills the consumers need in having the safety of there work and devices guaranteed at all times. The iPhone 5 will also be highly distinct and successful in service execution in the event that the patent suit to own 3D technology is allowed and Apple Inc becomes the only Company that manufactures handsets with such a feature (Mazziotti, 2008). It is well known that this technology is highly used and sought in this generation since its inception in 2008 thus having a phone with the ability of a HDTV such as those produced by Samsung, would position Apple Inc above all its rivals. Marketing Mix Strategies Product The new product is to come with a complete one year warranty and a further three-year maintenance warranty by the Apple technical team. However, it is upon the consumer to decide whether they are interested the latter. The iPhone 5 would maintain the same standard and taste as all the previous apple products. An exceptional edition version is going to be unveiled that would also include the iPhone Beatles edition that would be a celebration of there 40 years in the show business. The product would have highly sophisticated features for more expert use than any other before it (Hughes, 2011). The features added to the new version of the iPhone such as high storage capacity, less weight, 3D technology, a battery that lasts longer and an 8 megapixel camera would position it ahead of any other mobile phone ever invented. Price The new model would cost a rather fair price of between $600-800, which would be highly favorable keeping in mind the features found on the phone. The price would be however lowered with time on basic products of the same model so as to be able to capture a larger market share. Promotion The iPhone would have distinct features compared to other devices such as the tablets that use the touch screen functionality. The milestones reached by the iPhone sister product the iPod is going to be the basis used to push for the sensitization of the chances of improved quality on the Phone 5. The media is to be highly utilized on informing the public about the new product, this includes both the press media and the mass media. Adverts are to be utilized at a maximum capacity to ensure that the desired sales target is reached. These adverts will prominently feature on the media so as to constantly preserve consumer consciousness on the product. The marketing team would also bank on the Company’s past success that has enabled it revolutionaries the communication experience as well as the audio/visual experience. Place The iPhone 5 is to be promoted in all corners of the globe but more focus is to be laid in Europe and Asia, areas that in the last two years have recorded low market dominance by Apple Company. Rival Company’s have captured these markets thus swaying the market dominance numbers to favor them, a situation that the Apple marketing team intends to reverse. Those targeted are of four age groups; these are those between years 15-20, 20-25, 25-45 and 45-above. Those in institutions such high school and colleges will benefit from applications such as camera, video calls, internet browsing, and games applications among other basic features. Those of between 25-45 years will find the iPhone 5 convenient for commercial use and social or private use (Gogerly, 2012). The former is through the use of features such as AirPrint, iCloud and iwallet while the latter would be through the use of game application, fast internet access (4G) for surfing and video calling among others. Finally those that fall above the age group of 45 years will use it for at times both uses, commercial and private. This is briefly highlighted in the figure below showing the urgency of usage and the percentage trend by those of different age groups. References Clark, J. 2010, Tapworthy: Designing Great iPhone Apps, O’Reilly Publishers, California, USA. Gogerly, L. 2012, Cool Brands on the Radar: Street Style, Lerner Publications, Minneapolis, USA. Hughes, J. 2011, iPhone and iPad Apps Marketing: Secrets to Selling Your iPhone and iPad Apps, Que Publishing, New Jersey, USA. Isaacson, W. 2011, Steve Jobs, Simon & Schuster, New York, USA. Linzmayer, O. 1999, Apple confidential: the real story of Apple Computer, Inc. No Starch Press, California, USA. Linzmayer, O. 2004, Apple Confidential 2.0: The Definitive History of the World's Most Colorful Company, No Starch Press, California, USA. Mazziotti, G. 2008, EU Digital Copyright Law and the End-User, Springer Publishers, New York, USA. William, M. & Ferrell, O. 2012, Foundations of marketing. New York, USA. Cengage Learning. O’Grady, J. (2008). Apple Inc: Corporations that Changed the World, ABC-CLIO, California, USA. Wood, T. 2011, iOS Wow Factor: UX Design Techniques for iPhone and iPad, Apress, New York, USA. Read More