IPhone 5 Phenomenon - Research Paper Example

?Timothy Washington MKT Research Analysis August 11, Tsahiridis iPhone 5 Phenomenon PRODUCT JUSTIFICATION The product selected for this report is “iPhone 5”. The series of iPhone is one of the most successful technology gadgets in the world. Apple has proved the need of this remarkable invention with its huge sales and profits. The iPhone 5 has come up with new innovations and benefiting a large number of users with its features. It is the most innovative invention in the smart phone industry. This product continues to best itself. These are some factors that make this a remarkable product to not only invest in but endorse for the future. Corresponding Benefits Professionals Ability to keep in touch while on the move Document information while on the move with note taker and recorders Communicating by E-mail, instant messaging, and phone Students Style and individuality through the looks of the phone Complete many tasks without carrying several gadgets Keeps them connected to music, entertainment as well as organize your time with your own personal assistant. It’saniPod, phone, video; TV shows internet, and PDA Personal Better and faster connection to internet. Mobil Navigation Mobil Social connections; Facebook, Twitter, etc. Great multifunctional cameras; HD video and photo cameras. Marketing miX Product: The product has following features 4 inch large screen. High definition camera. iOS 6. Unintentional damage security. Hardware repair coverage. Weight is 112 gm only. LTE wireless technology, A6 chip. Price: Skimming pricing strategy. Premium pricing strategy. The pricing strategy of iPhone 5 by Apple Inc includes the flexibility to lower the prices if consumer response dictates such actions. Place: Apple places the iPhone 5 in worldwide stores by online stores, retails stores, direct sales and through third parties. Apple has divided its global market for iPhone 5 in too many different divisions includes: South America, North America, Europe, Middle East, Africa and Japan. Apple has more than 350 stores in thirteen countries worldwide. Promotion: In promoting iPhone 5, Apple has focused on offering innovative features and services to gain the customer loyalty. Apple has marketed iPhone 5 with the emotional and rational appeal. It connected iPhone 5 in the advertisements with people life style, imagination, innovation, passion, liberation dreams and ambitions. Environmental scan: (PESTC) Political: Apple’s iPhone 5 is selling all over the world so it is facing several issues that are beyond the company control i.e. political uncertainties, war against terrorism and sanctions on different countries. Political instability is affecting badly on the sales of iPhone 5 in different parts of the world. Economical: The inflation in different economies has influenced the sales of iPhone 5.Last year the high unemployment rate in USA and Europe may have affected sales of Apple products. However at the same time the economy was boosted by the sale of the iPhone. It sold over 5 million since its launch. It was predicted in 2012 that the economy would be boosted by .05 in 4th quarter. (Rush, Dominic, theguardian.com; 2012) Social: European countries and some parts of Canada which are large markets of Apple products are actually facing some health concerns because of the excessive use of iPhone 5 by the users. It is reported that improper use of Apple products may lead to hearing power of users. Technological: The advancements and revolutions in technology are inventing day by day. It is the biggest challenge for Apple to maintain its competitive advantage of innovation. Every year there is the “next big thing,” (Android), that comes out and each year they look to not only the competitors but also themselves. Even Now there is talk of the newest iPhone (iPhone 5s) being announced in September. This one is not only technically advanced with the new operating system, but it is also going to be affordable phones available. (Stern, Joanna; ABC News, August 11) Competition: The main two competitors of iPhone 5 are Samsung galaxy S III and Nokia Lumia 920 (Cha). (Cha, Bonnie, Sep. 2012) TARGET Market & segmentation: The youth of every country is the speediest growing market for technology gadgets in the world. From the beginning, Apple has always focused on the market of educated people whether they are professionals or students; every educated mobile phone user is the potential customer for Apple. Apple is more focused to develop market in those countries that are having high literacy rate. For example, UK, Canada, and European countries, etc. Target market of Apple is extremely big in size, so Apple did more segmentation to further distinguish the characteristics of targeted segment. Apple Inc has classified its target market of iPhone 5 in two segments: 1- The primary targeted customer group is middle-upper income professionals to communicate with colleagues, friends and family and to coordinate their busy schedule. 2- The secondary targeted consumer group is the students of high school, college and universities who want one portable multifunction device. Ethical issues: The demand of iPhone is increasing day-by-day in the consumer market. Production departments of almost all locations are very much pressurized and asked to produce more units in the same time. Production workers are asked to work extra hours with extra pace to meet the demand of consumers. Because of this reason Apple has violated the ethical standards in regarding the extra work load on workers to meet the consumer demand of iPhone. This has created a serious negative impact on the image of Apple in the consumer market. (Kiss, Jemima; Sept 2012). Social responsibility issues: Improper removal of waste has become the cause of pollution in the areas that are nearer to the production factories of iPhone. Underage workers are employed in the production of iPhone. (Mielach, David, Feb 2012). Global marketing and the internet: Apple is targeting its entire worldwide consumer with the strategy of regulation in its products throughout the world. The features of iPhone 5 for all the consumers all over the world are same. The professionals and students are the major target markets of iPhone 5 all over the world. Recommendation: Simultaneous launch of Apple’s iPhone in its entire target markets of different countries because the availability of product in the market while the launching is extremely decisive factor in the product’s success. Better anticipation of demand through better research because it is extremely crucial to identify and fill the gap of demand and supply. Lower prices to increase the market share. The variation in the prices will give another competitive advantage to the Apple products. Expand its operation in to those countries that will give a low-cost production. For example, the cost of production in India and China is low because they both have low wage rates, this will help to minimize the cost of production. Increase the number of outlets in the growing markets of India and China to get further control over the global market, in other words to increase the market share in the global market and more strengthen the brand name in the world. EXECUTIVE SUMMARY This report has conducted to analyze the marketing environment of iPhone 5 presented by Apple Inc. All aspects of marketing of iPhone 5 have been discussed in the report. After much research, I recommend that the Advertising team get together to come up with an Ad that would give the phone a personality. We find that although needs are being met, it is also true that a smart phone that is more like an assistant who can help you remember your daily schedule. I think we also need to be extremely cautious of our working environment overseas. The recommendations are made to increase the market share of Apple in the smart phone industry and improve the process of research so that the company is able to better analyze the consumer needs and preferences along with the availability of iPhones should be in every market while launching it. There is also recommended a need to be affordability for the phone in all markets. The recommendations are made after analyzing the market growth and market share of iPhone and its competitors in the smart phone industry. It is also recommended that this needs to be strategic and purposeful moved in marketing so not to leave out any consumer no matter where they are in the world. It is highly suggested that there be an expedient move to market this product because there is rumored of a new upgrade launching soon. References Cha, Bonnie. Smartphone Wars: iPhone 5 vs. the Competition. All Things D. Sep. 2012. 5 Aug. 2013. http://allthingsd.com/20120912/smartphone-wars-iphone-5-vs-the-competition/ Kiss, Jemima. The real price of an iPhone 5: life in the Foxconn factory. The Guardian. Sep. 2012. 5 Aug. 2013. http://www.theguardian.com/technology/2012/sep/13/cost-iphone-5-foxconn-factory Mielach, David and BusinessNewsDaily.Is It Ethical to Own an iPhone?.Scientific American. Feb. 2012. 5 Aug. 2013. http://www.scientificamerican.com/article.cfm?id=is-it-ethical-to-own-an-iphone Mielach, David. Is It Ethical to Own an iPhone?.Business News Daily. Feb. 2012. 5 Aug. 2013. http://www.businessnewsdaily.com/1979-owning-iphone-ethical.html Read More

 

Read More