Emerging Business Models and Strategies for Mobile Platform Providers - Case Study Example

MARKETING PLAN REPORT Apple entering a new market with an existing product Name Course Institution Tutor Date . Executive summary The marketing plan report is about Apple Company’s move to introduce android phone as a new product. The company is facing stiff competition from Samsung, Nokia, Blackberry companies that introduced android as well as windows phones. The main focus is on marketing strategies that will help Apple’s android products to penetrate the market. Besides, the report has used certain models like the 4Ps model of marketing mix, Porte’s five forces and Ansoff’s Growth Matrix in recommending to the senior management the best ways of marketing this product. Equally important are value creation and relationship marketing that might enable the company to build a competitive advantage. The report finally makes recommendations to the top management and draws an overall conclusion of the entire report. Introduction The development of android applications in tablets and smartphones has changed the technological market by a huge storm which companies like Apple are considered in their markets (Emerald 2014, p.10). Android as an operating system has been adopted by many mobile operators like Samsung since it has been well received in the global electronic market (Gold 2013, p.17). Most android phones can handle certain tasks that contemporary phones are not capable of (Kenney & Pon 2011, p.246). Apple’s marketers noted with a lot of concern that the company was losing its customer base to other companies that had already introduced the android phones and tablets (Apple 2014). Apple has shown an interest in adapting android system by exclusively buying the manufacturing rights from the famous Google Company. Therefore, the company is introducing an existing product into an existing market. The company will therefore use its product lines as well as the existing strategies to enter the market. Besides, the company strives to design its unique android phones and tablets so as to enter the fiercely competitive android market. To enter the market successfully, there is the need to carry out effective marketing by considering all market factors and models. Briefly, this report uses different marketing models and combines them with existing strategies of Apple to design a marketing plan for Apple’s senior management. The 4Ps model (marketing mix) Apple is introducing a new product into the market that requires a better understanding of all marketing mix. The 4Ps model will enable the company to do proper feasibility test to ensure that the product penetrates the already established android market (Alan & Fiona 2013, p.206). These Ps stand for product, place, price and promotion. The model will enable Apple to select right product at the right place with reasonable price while undertaking best promotional strategies (Emerald 2008, p.11). By definition, marketing mix are various choices that organisations make when introducing new products into the market. To help in understanding marketing mix, EJ McCarthy developed a 4Ps model (Håkan & Alexandra 2005, p.113). With regard to product, Apple Company must know fundamental needs of their customers as well as the way they will use this android product. In this case, user interface of the product must be put into consideration. Product branding is also an important element of the first P thus Apple must make its android brand unique to its consumers (Wolfgang 2002, p.279). Recent market audit of Apple has shown that Apple has the strongest brand loyalty. The report also maintains that Apple has maintained its dominance in technology in the phone technology sector. Therefore, to stay competitive, the company must consider other options in the market and varieties that will enable it beat the stiff competition from Nokia, Blackberry and Samsung (Arnold 2013). The analysis below is inference from the marketing audit that was carried out by marketing experts. McCarthy referred to the second P as place or the consumer’s geographical location. Customers may engage in physical buying or purchase the product online model (Håkan & Alexandra 2005, p.113). Social media has become one the marketing channels in the modern world. Thus, the company can market it through advertisements in Television and online social sites like facebook and twitter. The internet has been rated mostly used medium of marketing products that Apple must make use of this marketing strategy. Price must be put into consideration as the company must compare android prices to those of rivals like Samsung (Wolfgang 2002, p.279). A good pricing strategy for a new product is the provision of discounts. The final P encompasses promotional activities, where the management must know timing and location before undertaking marketing activities (Arijit & Prakash 2010, p.161). Most importantly, the marketers must find out how other competitors promote their products which in this case, are android phones like Blackberry (Hempel 2010, p.12). Relationship marketing Relationship marketing is a strategy that helps companies to build and maintain loyal customers through long-term interactions (David 2009, p.2). The strategy will help the company retain its customers. Though the company has a strong customer base, it must not stop at that for the new product. One way of retaining the customers is by defining the benefits of using Apple products. The benefits to the customers may be in the form of warranties and free service delivery. On the other hand, Apple should design a 24/7 customer support as courtesy services to them. This will also lead to a good communication relation and it is a way of doing online public relations. Besides, Apple has a strategic management structure with best organisational culture that majors on customer satisfaction (Apple 2014). The organisation needs to convince customers into choosing their android phones. This is best achieved through building of good relationships with the customers. Relationship marketing entails provision of necessary information to the customers which is best attained by using open communication (Tracy & Tony 2006, p.109). This will be achieved by reaching out to the customers through social media. The other channels of relationship marketing include emails, loyalty programs, customer services and loyalty programs. Value creation Value creation is a strategy that will help Apple increase the worth of its android product. Value is always added to a product after it has penetrated the market and established itself in the consumers’ minds (David & Stan 2008, p.32). Nonetheless, the strategy must be in line with the existing mobile business strategies as well as the financial strategies (Antonio 2012, p.38). Value addition process must first identify the customer needs after which the management will improve the product according to the needs of the customers (Christine et al 2013, p.243). Since Apple is planning to introduce its first ever android phone, it will have to wait for the customers’ response before modifying the product. Segmentation, targeting and positioning of the android market Apple’s marketing initiatives can segment the market according to behavioural, psychological needs and demographic diversity of the market (Salah & Stephen 2012, p.346). Demographics entail population diversity where Apple will subdivide the market to target both young and old consumers. Psychological and behavioural segmentation encompasses tastes and preferences of the customers (Hande, Aslihan & Süphan 2010, p.405). For the ageing population, the android phones must be simpler but the younger generation can take any form of the product. Since the company has established sales and distribution systems as well as business collaborations or strategic alliances, its market segmentation will be an easy task (Apple 2014). The information contained in these established sales and systems are useful in segmenting the market according to certain market criteria like psychological, demographic and behavioural characteristics of the phone industry. The other demographic considerations include economic status and geographical locations like the overseas customers (Salah & Stephen 2012, p.346). The existing economic conditions mobile industry is stable and the global economy is recovering at a higher rate thus enabling Apple to segment its prices according to economic capabilities of certain markets. Besides, Apple must target these segmented markets based on groups that have specific or same needs (Salah & Stephen 2012, p.347). In this case, the company will be targeting a concentrated group of customers who have a variety of phone technologies to choose from. On the other hand the company can target majorly the younger generation. One strategy of targeting the younger market is both physical and software design of the Android phone. For instance, the company can adopt iPhone 5C casing for its Android phones (Apple 2014). The generation fancy technology hence android applications with the best features will be most appealing to them. Finally, market positioning will basically entail the promotional initiatives of this android phone as well as an understanding competing product positions (Salah & Stephen 2012, p.348). In positioning the product, Apple must first define the benefits that consumers will enjoy relative to other android phones from competitors like Samsung. Barriers to market entries Barriers to market entries may be best explained using Porter’s five forces (Porter 2008). Entrance into the existing marketing can be low or high and it depends on marketing strategy of Apple. Supplier power is another force to consider. Apple has its base in the USA but produces its products in countries with cheap production rate (Apple 2014). Apple always has a strong supplier power that will enable it maintain a constant supply of Android phones into the market. Apple also overcomes supply power barrier since it is located in the strong USA that enables it to produce its products in host countries that have cheap production economies. Thirdly, rivalry is a considerable force since the phone industry has many manufacturers who compete for the affluent global market (Arnold 2013). However, the company can overcome this barrier since it has Strong IT infrastructure and innovative team that has designed ipods and smartphones (Remneland et al 2011, p.208). The same skilled power may be used to build develop a strong Apple android phones. Besides, availability of substitute products will also pose a challenge to Apple’s android products (Garraffo 2002, p.10). The company must stand stiff competition from Nokia, Blackberry and Samsung (Arnold 2013). Nokia for instance, has introduced windows phones that substitute android technology. However, Apple has some considerable strengths that will make it competition from. A PESTEL analysis of the company shows that it boasts of ever expanding customer loyalty, unique product base and is a leader in technological innovation with highly reputable brand (Apple 2014). Finally, low bargaining power among consumers is a force to reckon with (Porter 2008). Apple produces high priced products that are supplied to markets with low bargaining power. Conversely, the company However, Apple’s strong establishment in technological industry will help it overcome these barriers. On the other hand, Apple has certain opportunities that enable it to attract large customer base like its reputable brand, high demand for Apple products. Porter’s five forces (Porter 2008) Corporate Social responsibility and sustainable competitive advantage Corporate social responsibility has been the new strategy that of ensure sustainable competitive advantage of any multinational enterprise (Antonio 2012, p.38). A PESTEL analysis of Apple Company shows that the company has also been facing environmental challenge of increased public awareness on environmental conservation and protection (Apple 2014). Company that ensures environmental management have strong corporate image that also helps in building and maintaining public trust. Apple must therefore use the most appropriate means of disposing and managing digital wastes that have become a major concern. Growth strategy Ansoff’s Growth Matrix has been in the use for explaining growth strategies of products. The model has four growth strategies that might be of great help to Apple’s Android phone (HJM Business Development 2012). Firstly, the management must do a proper market penetration which involves the sale of a homogenous product to a large number of homogenous customers. In this case, Apple will mainly target customers who prefer android phones. Secondly, the company will aim at selling its homogenous product (android) to different customers. This will target a diversity of phone users because recent trends that suggest a steady growth in android market due to affordability and diversity. The third strategy is product development that involves value addition to the product and it will enable Apple to sell new android products to an established customer base (David & Stan 2008, p.32). Finally, product diversification is a vital growth strategy that will enable the company to new android products to a diversity of phone users. The advantage that Apple has for growth is that it uses uniqueness and provision of high quality products to compete in the global technology industry. For instance, it holds legal rights to iOS which is a unique phone utility (Hall & Anderson 2009, p.66) Recommendations This marketing report recommends that Apple Company must use its existing strategies and strengths together with other marketing strategies to ensure competiveness in the phone industry. The company must review its prices against those of competitors before entering the marketing. An understanding of the customer needs and preferences will enable the organisation to introduce a product that will have a sustainable competitive advantage over other android phones. Most importantly, the management must promote the product in the most preferred social media. Besides, relationship marketing must be carried out to maintain the customers. Upon establishment, there is the need to add value to the product by knowing all the consumer needs. However, all the marketing efforts will only succeed if the company takes into account growth strategies as explained by Ansoff’s Growth Matrix model. Conclusion . In summary, this marketing report is about the introduction of a new product into the market by Apple Company. The management is planning to introduce android phone to supplement its existing iPhone. The report has used some existing strengths and business opportunities from PESTEL and SWOT analysis of the company’s marketing audit report to explain how the company can integrate such factors with other market mix conditions to avail the android product into the market. Other strategies that the report has used include the 4Ps marketing mix model and Porter’s five forces that shows barriers to market entry. The report has also explained a growth strategy of the new product that depends on other factors like value creation and relationship marketing. These marketing elements can also not be successful when the company does not embrace corporate social responsibility. In a nut shell, the report recommends that adoption of this marketing plan will enable the Apple Company to realise sustainable competitive advantage. 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