Apple iPhone Product Positioning - Case Study Example

Success Story of Apple The success of Apple has been coined to the different concepts had theories which they have applied successfully. Apple has looked at the concepts differently and has chosen the ones which multiples their effectiveness and provides better results has helped them come up with the campaign of “Think Different” and has created a different market where people continue to purchase from Apple stores despite the gaining popularity of online business. The use of marketing concepts and theories and creating and chalking out a path through which understanding has improved has been one of the strong reasons for the development of the business of Apple. Below is the list of different marketing concepts and tools which has helped Apple to bring a change in the working style and ensure maximum gains from it. Product Concept Apple doesn’t work like any other companies who develop or manufacture products for selling to others. Apple on the other hand while doing so make changes and develops product in such a manner that the engineer developing it has a c crave for it. This has helped them to develop their product in such a manner that it is free from errors and provides the best facilities and services. The engineers who thereby develop the product actually does it for themselves as they are the end user. This has helped to fill all the gaps and errors and develop a product on a slightly different concept. The process has enabled to develop products with all features and requirements so that the satisfaction level of the person is maximized and the person is able to ensure very high level of satisfaction. The product concept further harps on the point that it should be simple and easy to use as if a product is complicated and the person developing the product is unclear about it the chances of succeeding reduces (Fanning, 2014). This is the mantra which Apple has used and has developed its product to ensure smooth interface designs with regard to the software and hardware that has been used. Apple through this mantra has been able to even attract people who don’t have the required knowledge in that direction as the simple interface provides them with the opportunity of developing their business based on the customer needs and requirements. This is a difficult feat for Apple to achieve as people continue to demand more and more features which requires different application and complicates the matter. Apple on this front has tried to keep their product simple and develop the required needs of the product in such a manner that it satisfies the need of the customers and at the same time ensures better applicability and usage. The other reason which has contributed towards the success of Apple iPhone is that the company has worked on the philosophy of having a single product. A customer visiting an Apple store doesn’t have to look into different models as the strategy of the company is to keep simple and have a single product. Customers visiting the store know the reason for visiting the store and the product which they will get. It is true that in the technology savvy world people look for options and wants products which are trendier. Research carried out in the direction shows that the percentage of people looking for complex phone is very small compared to the one where people look for simpler products with all features. This has thereby helped Apple to determine their positioning and targeting strategy accordingly. This formula has also helped their employees to be better educated about the product and its different features. The overall mechanism has contributed towards product development and has provided the basic infrastructure through which customer acceptance for the product has become easy. Marketing Concept Apple has looked at being creative and thinks out of the box while developing or deciding its marketing strategy. This can be clearly seen from their advertisement concept of “think different” where they used different black and white photos of different visionary to highlight the manner in which different thinking leads towards different gains. This has helped them to be creative and move away from the concept of pushing products in the market (Fanning, 2014). The overall dimensions shaped the manner Apple performs and having the required creativity has helped them to transform and revolutionize the manner in which the industry works. Working on a different concept and developing products accordingly has helped them to understand the different needs and requirements of the customers. This has helped them to foster an environment through which the business has been able to identify the different fundamentals which will help them to attract people. The overall dimension has thereby helped and changed the concept of marketing. The business fundamentals and marketing especially the advertisement part has been developed based on it and has helped to facilitate a process through which business effectiveness has increased. Apple has continuously been criticized for making tight controls over its information regarding its new product launches in order to create more hype in the market for its products demand. In many cases it has found that Apple has deliberately leaked information in the public via media to check on the products viability in the market which is a serious unethical means on part of the company. Apple has also been criticized for making the media unaware of its current developments and further misguiding the media to know about its competitor development strategies. This has been one of the strong point and areas where Apple has created the required hype in the market through it regarding their new launch. It is not that Apple has publicized negatively but they have been creative in developing the marketing strategies in such a manner that it catches the attention of different people and creates the required awareness and momentum through which attracting and retaining people becomes easy. Apple has always maintained an obsession with secrecy. One can in most of the magazines and journals read that the Apple Officials had refused to make any comment and things had been kept secret. It is owing to this secrecy policy of the company that invites unethical behavior as without correct and timely information it becomes a difficult task for its customers, investors, employees and other activists to know whether the company has been engaged in unethical behavior or not, to know whether the company has been spewing pollutants , abusing workers, using dangerous chemicals etc or being involved in any activity which is against the corporate social responsibility and ethical norms of the company. This has helped them in a positive manner as it has helped them to develop creative campaigns and based on it attracting and retaining people has become easy. The overall fundamental has thereby been developed based on the different needs and requirements which has helped them to deliver very high standards with regard to the different marketing concept which has been carried out. Customer Analysis Apple iPhone is looking towards customers who are more technology oriented and want to use the latest gadgets available in the market. Apple has identified the target market for its products and looks at attract the premium and middle segment of the people. This has helped them to price their product in such a manner that attracting customers becomes easy. The overall process has thereby helped them to brand their product in such a manner that it has achieved a status symbol and has multiplied the overall gains for the business as it has created a determined path which needs to be carried for the development of the business. Target Customer Apple has clearly identified their target audience and based on it has looked at developing strategies so that maximum gains can be achieved from it. The target market for Apple falls in the age bracket 14 to 50. While looking to determine the target audience Apple has concentrated on stating that the target audience is such they like technology and are looking for something new through the development of research. (Apple iPhone, 2007) The target customer can be further segregated as follows School & College Goers: Apple aims to attract school and college goers as the their product has been developed with trendy application and gadgets which will get easily attracted. This is matched by the design and appeal which will help to create a positive vibe and will make people purchase it. Young People: Apple aims to attract young people as the their product has been developed with trendy application and gadgets which will get easily attracted. This is matched by the design and appeal which will help to create a positive vibe and will make people purchase it. This is matched by the fact that people have to be technology savvy and would look to use the different services Business Community: Apple looks to attract the business community by having different applications and features which simplifies their work (Apple iPhone, 2007). The opportunity of using Apple and carrying out the different business function has helped to create appositive impact and has thereby helped to attract people. Internet User: Apple has developed the phone using the latest technology which helps internet users to surf the internet quickly. (Savitz, 2010) The continuous development and improvement which is being witnessed in the different directions have further created an opportunity through which customer attraction and retention has become possible (Savitz, 2010) Positioning of Apple The positioning is thereby determined on the target audience and has helped Apple to work in that direction. The perceptual map below will help to further understand their positioning and will help to draw framework on the manner in which Apple strategies have been developed based on it (Fanning, 2014) The perceptual map and the target customer for Apple iPhone identifies the positioning statement as “Apple iPhone is positioned as a phone which has internet access along with video in a single device to make life easy and enjoyable for the users”. (Blackblot, 2011). This has enabled Apple to develop their marketing strategies where they have looked at working on the word of mouth advertising (Goud & Madhurkar, 2010). The framework has developed the business proposition and has been one of the strong points which has contributed towards the long term success of the business. Brick & Mortar Strategy Apple stores have been successfully using the brick and mortar strategy and the different stores are executing that strategy pretty well. Apple Stores have an annual sale of more than $40 million per store which people were of the view that would be lost due to the emergence of internet and people preferring that mode in contrast to other modes. The brick and mortar strategy has helped Apple to create history and is the largest performing store in the retail history. This brings to an important notion that physical stores is the principal way through which people carry out business and in the next few decades will be one through which major people purchase the products. The fact that the physical stores will continue to operate in the same manner is that the US online retail is at 9% and is growing at an average rate of 10%. This is very small compared to the amount of physical stores contribution to business. In addition to it the stores are the one who are using multichannel business opportunities and have been able to grow their business. This will ensure that the physical stores will continue to grow and will thereby be able to integrate the working mechanism through which better results will be achieved and the business will continue to grow. Value Creation Apple further looked towards multiplying the value for its customers by developing the service quality in such a manner that it ensured maximum customer satisfaction. To deal with it Apple moved away from the transactional mindset to a more creative one. They looked at imagine the different features and things which they could provide to the user. Apple stores worked on the concept “try before using” where they allowed customers to try the product by uploading the different applications they wanted. This was supported by the fact that the concerned person from the different departments helped people to understand the entire process through which it will be operated and provided them with an opportunity to experience the fun they would undergo. This has helped to fix the different problems which were faced by them and provided an opportunity through which better service standards were set. The different stores instead of looking to sell their products were looking at multiplying the experience of the customers which helped them to provide additional value to the customers The principle of working and developing the entire process were better value creation became possible was one of the strong point which helped them to distinguish there product and services from others (Fanning, 2014). This helped customer to get extra value then they were paying for and helped to create a niche market through which attracting and retaining different people from different section of the society became easy. Relationship Marketing Apple has looked at developing relationship with its customers, suppliers, and other associated with the business. It doesn’t work on the concept of carrying on business for a single time but instead looks at ensuring that the business continues smoothly. This has helped them to focus on building long term relationship and solving all the problems when they occur (Fanning, 2014). The philosophy has developed the basic infrastructure of building positive relationship and has helped them to work on the concept of relationship marketing. This has even helped Apple to save on different cost as loyal customers has helped them to ensure word of mouth publicity. Apple has been able to create a propaganda where people have been able to get the right treatment and has thereby been able to bring the required transformation and change through which overall gains for the business has been increased. The process has helped Apple t reach every nook and corner of the globe and put forward strong performance and opportunities through which the business fundamentals have been developed. This will thereby reckon and create a path through which Apple will be able to create and develop their business further. The road ahead Apple through the different application of marketing concepts and tools have been able to chalk out a chart based on which they have performed. This has helped them to be different and has widened the opportunity through which gains will increase. Apple through the philosophy of being different has been able to fill the gap and in the same manner will be able to bring the required changes so that the business is developed on lines through which better operational effectiveness and efficiency is gained. References Apple iPhone. The iPhone’s target market. 2007. Retrieved on May 21, 2014 from http://uk.answers.yahoo.com/question/index?qid=20090225200717AAPbVRt Blackblot. Apple iPhone Product Positioning. 2011. Retrieved on May 21, 2014 from http://www.info@blackblot.com Fanning, S. M. (2014). Marketing principles and practices - e-text [Electronic handout]. Available from S. M. Fanning, School of Business, Edith Cowan University, Joondalup Drive, Joondalup, 6027, Western Australia.Goud, A. & Madhurkar, M. Brand Dossier: Apple iPhone. Marketing Management. Praxis Business School. 2010 Savitz, E. Apple: How the iPhone Target Market can expand. 2010. Retrieved on May 21, 2014 from http://blogs.barrons.com/techtraderdaily/2010/03/24/apple-how-the-iphone-target-market-can-expand-7x/ Read More