Integrated Marketing Strategies of iPhone 6 - Case Study Example

Case Analysis: iPhone 6 Student Tutor Course Date Case Analysis: iPhone 6 Introduction The paper is an analysis of integrated marketing strategies of iPhone 6. The device was developed by Apple Inc., and introduced into the market in September 2014. Generally, iPhone 6 is an improvement of pre-existing models of smartphones that had been produced by the company. This includes the iPhone 5C and the iPhone 5S version. The advancements introduced in the iPhone 6 models include increased screen display, retina HD display, new A8 chip which enhance high processing capacity as well as improved Wi-Fi and LTE connectivity. The iPhone 6 is a high-end technology device that intended to serve high income earners. However, the manufacturers also target wide range of people who are interested in new technology. Product strategy of iPhone 6 Product strategy refers to the overall concept of the product. It entails brand name, packaging design, guarantees, trademarks, warrantees product image and also the development of new product. Products can be defined as attributes, either physical or services that are aimed at satisfying the needs of consumers. Apple offers a variety of products and services to its target market. Over the years, the company was associated with manufacture of computers targeting imaginative persons as customers (Kiprin 2010). However, since the return of Steve Jobs in 1996, the company has altered its scope and is currently producing high-end technology hand held devices. The iPhone 6 takes various product forms. The device has s rectangular bar shape and exists in various shapes. The device is larger than other Apple iPhone models. The phone is also exceptionally thinner with a smooth metal surface and an outlook representing retina HD display. The phone also comes in different sizes which include 4.7 inches, 5.5 inches, 6.9 mm and 7.1 mm. The display is not only big but also provides a better display and improved resolutions. For instance the 4.7 Retina HD display has 1334 by 750 resolution. The display is also innovatively designed to deliver quality contrast. Similarly, the device has highly advanced multi-touch displays with double-domain pixels which provide more accurate colours at wide viewing angles (Apple Inc. 2015). Place strategy of iPhone 6 Place strategy is a very fundamental component in the marketing mix of any product or services. The place strategy basically provides an outline of the methodology employed by a company to place the product next to the market in attempt to gain market share. I most cases, this engages the three distinctive segments which include distributers, modern retails and sales ad service dealers. In other circumstance, some organizations rely on supply chain to enhance quick delivery of the products to the consumers. In this case, the iPhone is made available to its users through well articulated channels in the market structure. The distribution of the device is only handled by executive mobile carriers that who are available in each country where the iPhone has been launched. The device was originally introduced in the US before being launched in other countries much later. Similar to the distribution channels of the other iPhone versions, the iPhone 6 is also being distributed trough hybrid distribution channels. These channels include online stores, physical outlets as well as chosen executive mobile service providers (Communities and Local Government UK Report 2008). The iPhone 6 can easily be accessed from the online stores through simple procedures. Foremost, the customer wishing to purchase the device through this channel has to create an apple account online. This if then followed by the selecting the plan and the rate. In other words, this entails selecting the choice of the iPhone 6 as various sizes come in different prices. The final stage entails purchasing the preferred choice and having it delivered to a preferred address. The steps undertaken while purchasing the device from retail points are similar to those followed while buying it from the physical outlets. After identification and accessing the store outlet, the customers are procedurally taken through iPhone test drives. This is subsequently followed by selecting the rate and plan depending on the choice of the customer, signing the contracts and picking the phone there and then. The sale of all Apple iPhones in the physical stores and the retail outlets is done by Apple service providers. The service providers are technicians who have been taken through Apple training, assessed and certified to provide the designated services such as repair services as well as provision of genuine Apple parts. The service provider are located in various countries globally such as in Latin America, Africa, Asia Pacific, Middle East and Europe. In addition, the service providers are integrated into technology consulting firms that handle Apple products and third-party solution to form Apple Consultant Networks. They offer on-site technology services and assistance to home users and business users. Price strategy of iPhone 6 The Apple iPhone made a remarkable entry into the market in 2007 in the United States and was the most anticipated electronic device of its time. The iPhone was introduced in two distinct versions which include 4GB and 8GB models. Right from the point of introduction, iPhone was set at a price which is relatively higher than other competing smartphones. Sliwinska, Ranasinghe and Kardava (2012) observe that the 4 GB model was traded at market of USD $499 while the 8 GB model was sold at USD$ 599. Irrespective of the high prices, the demand of the phone was high on the first day of sales (Sliwinska, Ranasinghe and Kardava 2012). The Apple iPhone 6 is sold through tier pricing strategies. The company uses additional features that come with the iPhone 6 to market the product at high end higher-end iPhone device. Such features are additional to the storage capacity which use originally used to market the earlier versions. They include convenient sizes and invention of sapphire or gorilla screens. According to Cho (2014), the iPhone 6 which comes in 4.7 inch model with a gorilla screen is sold at $650 while the same version with sapphire screen costs $750. The prices escalate as the sizes go up. In this case, the phone employs a strategy referred to as tier pricing. According to Turner et al (2008), tier pricing refers to the strategic use of price differentiation depending on the economical status of the consumers. In essence, tier pricing is a strategic mechanism that can also be used as promotional tool to price items differently to enhance sales of larger quantities. This strategy allows the consumers to select varied products that suit their needs at progressively increasing prices. For this reason, this strategy is strategically employed to enable the iPhone device to attract incremental profits from consumer who are willing to pay more for the products. This pricing strategy is also referred to as skimming strategy. Sliwinska, Ranasinghe and Kardava (2012) note skimming strategy is a method of selling products at high prices to attract high profit margins. Promotion strategy of iPhone 6 Mickalowski, Mickelson and Keltgen (2009) observe that since the launch of Apple in 2007 by Stephen Jobs, it has gained significant share by garnering approximately $400 million in publicity. Insofar as it is the company has employed traditional business coverage publications such as through wall street journal as well as online pundits like Gizmodo to promote its products. Apple has also promoted the iPhone through adverts that are run in flurry televisions, websites. The company has followed the footprint of Steve Jobs, the co-pioneer of Apple Inc., in showcasing the unique feature of the iPhone in advertisements. One of the famous advertisements named “Hello” was aired during Academy Awards in February 25, 2007. Proper communication with the potential customers is the strong pillar and a vital component that organizations require besides provision of quality advanced technology products and strategic positioning in the market. The promotion activities are designed to provide medium of interaction between a company and its products. Such activities provide the consumers with information that will help customer to make decision with regard to purchase of the products. Various companies use diverse promotional tools such as advertising, personal selling, sales promotion and public relations to strategically position themselves in the market. Additionally, these tools act as reminders, motivation or play informational role to compel customer to buy the products. Apple Inc. has been employing various media to promote the iPhone. For instance the company has been using a blog site www.blogs.business2.com to advertise the iPhone. Dilger (2014) observes that Apple spearheads the campaign and promotion of iPhone through social media. The company has used YouTube to promote the iPhone. For instance, the infamous “Bendgate” video which displayed a man with big hands trying to bend the iPhone device with his bare hands creating an impression that the iPhone 6 is reasonably sized and remarkably thin. In addition, Apple also uses billboards and magazine adverts to promote the additional features that synonymous with iPhone 6 such how big the screens are (Dilger2014). Opinion The skimming or tier pricing strategy is vital since the target market of the iPhone 6 are believed to have tendency assume that the high cost of items is directly associated with exceptional reputation or are having superb quality. Therefore, price reduction strategy would definitely raise doubts about the quality and performance of the products. However, the strategy may not be appropriate in area where customers are not willing to pay exceedingly for the products with close substitutes. Sliwinska, Ranasinghe and Kardava (2012) argue that though high prices strategy provides healthy margins, the strategy attracts piracy. As a result, the high profit margins are consumed by costs incurred to protect the products from piracy. In the instance, it is recommendable that the company should slightly relent on being jus a high end technology company and also to change its image a bit. This implies that the company should also think of meeting the needs of the middle income earners who constitute majority of the markets globally. List of Reference Apple Inc. 2015, iPhone 6. Retrieved from [January 29, 2015]. Cho, A. 2014, iPhone 6: Huge Potential for Apple Investors. Retrieved from [January 29, 2015]. Communities and Local Government Report, 2008, Place matters: the Location Strategy for the United Kingdom. Retrieved from [January 29, 2015]. Dilger, D.E 2014, After Apple Inc. dodged the iPhone 6 Plus BendGate Bullet, detractors wounded by Ricochet. Retrieved from [January 29, 2015]. Kiprin, B. 2010, iPhone Marketing, Retrieved from [January 29, 2015]. Mickalowski, K., Mickelson. J & Keltgen, J 2009, Apple’s iPhone launch: A Case Study in Effective marketing. Retrieved from [January 29, 2015]. Sliwinska, D., Ranasinghe, J. & Kardava, I 2014, Apple’s Pricing Strategy. Retrieved from [January 29, 2015]. Turner, W.P., John S. H., Renaud, V., Brill, K.G 2008. Tier Classifications Define Site Infrastructure Performance, Retrieved from [January 29, 2015]. Read More