Apple Incorporated Marketing Plan - Case Study Example

Apple Incorporated is the organisation of choice where a 3-year marketing plan was generated that will assist the organisation in identifying and optimising marketing assets and identifying and investing in the creation of USPs.

Type of organisation

Apple Incorporated is Public Shareholding Company which belongs to a limited number of revolutionizing companies that have changed the ethos of the industry.

Size of organisation in terms of turnover

Nowadays, Apple belongs to global enterprises and it operates through its online shops on a territory of 43 countries, and retail stores across 43 countries around the world. Apple has created jobs through innovation where there is job growth as well as creation of new industries. As such, there is creation of at least 2 million U.S.A jobs and this is from retail, engineers and employees to app developers, manufacturers and suppliers.

Range of products and services provided

Apple Company is engaged in designing personal computers, mobile phones, tablets, peripheral devices, accessories, hardware and software. Being involved in the number of industries, Apple has diversified its customer base from basic consumers using the products on the daily basis up to the corporate and professional segment, applying complex programmes for business purposes.

Customer base

The corporation uses business models such as B2B, B2C and franchising. B2C entails marketing its products to retail market. For instance, there is purchasing of Apple products on their website. Thus there is a direct interaction of clients with the company. The B2B model entails businesses trading their services and products to other given businesses. In this respect, there is purchasing of products such as Mac from Apple Company in bulk and huge quantity

Main competitors

A large number of Apple’s competitors are a logical consequence of the fact that the corporation produce a wide range of products. For example, the main competitors in the software market are Microsoft and Google. The major rivals in the digital market are Nokia, BlackBerry, HTC and Sony. According to analysts, 17% iPhone users have previously used BlackBerry phones, 14% - Nokia, 9% - Samsung, 4% - HTC, 2% - Sony Ericsson (Mckeown 2012). Apple intends to take the advantage of its innovative sphere to perform the aggressive market penetration.

Strategic Audit

The most successful companies with good management have long known the importance of marketing assets in the process of the achieving goals and Apple is not the exception. The definition of brand equity is usually in terms of liabilities as well as assets attributable to a given brand. In this respect, the marketing assets for Apple have been identified and analysed in the next section and they can be classified into four major groups based on Hooley et al (1998).

Customer based marketing assets

They include well-developed costumer based assets which contain brand’s great reputation. Apple has strong brand loyalty. It is a well known brand around the world. The customers’’ loyalty is based on the brand reputation that includes elements such as: innovation, workplace, governance, leadership, performance, product and services. Apple uses three simple rules to gain confidence of new buyers. They include empathy, suggestion and concentration (Dilger 2016). Also, Apple is famous by its superior products, such as iTines, iPhones, iPads which is based on nanotechnologies.

Supply chain assets

This entails the way products are distributed to clients. The corporation has the well-developed supply chain to satisfy customers' needs promptly and efficiently. It should also be noted that the corporation placed its manufacturing in China with a view to reducing production costs, as shown in figure 1. Apple has developed distribution network and has cooperation with companies such as AT&T, Wal-Mart and Best Buy in its distribution policy. Also, Apple has technological cooperation with Samsun. All this creates Apple’s supply chain assets. It allows Apple to conquer new market segments and to increase brand loyalty (Dilger 2016). In regards to how supply chain assets contribute to competitive advantage of Apple, the company acknowledges the fact that management of supply chain is very significant in global market success and hence considered to be a strategic assets for enhancing growth as well as meeting the customer promise. In this case, it is associated with operational efficiency and client satisfaction. There is creation of value by supply chain in three major areas and include delivery cost effectiveness, brand preference drive through service and product quality and growth drive. Of the three, growth drive is considered to be the most critical while cost effectiveness being the most direct and obvious benefit.

Figure 1: Apple’s Supply Chain (SupplyChainopz)

Internal support asset

In terms of benefit and cost advantage, there is creation of values for the customers where cost advantage is benefit provision to buyers at a price that is lower when compared to the competitors. Apple has the capacity of building competitive advantage based on cost advantage strategy after considering the position of being a provider with low cost in the industry. The company has the capacity of establishing a significantly lower cost structure than its competitor under cost advantage strategy and hence there is provision of benefits to the clients at a price that is lower. In terms of information systems, Apple Corporation is famous by its information system. Clouds technologies are widely used in its activity. Product expertise, technical skills and patents are Apple’s strengths and form its internal support assets.

Quality, originality, innovation, ease of use of the product – all these have played a key role in the brand loyalty creation. Apple intends to take the advantage of its innovative sphere to perform the aggressive market penetration. On the new strategic basis, the company will implement the appropriate supportive tactics and democratized marketing strategy adjustments that would disclose the new corporate perspective.

Alliance based assets

Apple Company recognises the fact that partnering with other companies is an effective strategy of expanding its capabilities and assets. These assets consist of shared exclusivity and technology, management skills and market access. The strategic alliance for instance between China and USA has resulted to both parties having access to new geographical markets

Resource Portfolio

An integral part of Apple’s marketing assets is intellectual capital and human recourses are the core of it. The staff of the corporation doesn't terminate its work on brand promotion. To satisfy customer needs and to increase brand loyalty are the main goals of Apple Company. The tools, that the company use to reach the goals, are formed Apple CBBE Model showed on the Figure 2.

Figure 2: Apple CBBE model

Thus, the Apple Resource Portfolio Matrix is showed on the Figure 3. There it is possible to analyse the recourses of the corporation and to make some predict. Apple should pay attention on its Achilles’ Heels, such like customer service, product price, product lifecycle (O'Grady 2009).

Figure 3: Apple resource portfolio

Marketing capabilities analysis

The competitive advantage of Apple is associated with the way it organizes and performs its activities where there is creation of value in its products. Using the value chain that is company assets and capacity the corporation has the capacity of securing competitive advantage by linkage management in the value system, activity combination in a most a appropriate manner and invention of the most appropriate approaches of handling activities. In this respect, this can be analysed based on the corporation’s 4P strategy. The corporation uses marketing mix assets to deploy its assets in terms of Apple 4P strategy as seen in the next section.

Product: Product portfolio expansion is one of the core company’s strong points which entail securing competitive advantage in terms of invention of the most appropriate approaches of handling activities, and this particular marketing mix component embraces the output multiplicity, represented by the following product lines: Mac, Software, iPhone, iPod, iPad, Apple Watch and Apple TV (Dilger 2016).

Place: The distribution of products is critical in terms of securing competitive advantage where the corporation has a well-developed supply chain to satisfy customers' needs promptly and efficiently (this is in terms of linkage management in the value system).This is fulfilled through the following channels: the Mac stores, authorized retailers, App store, Online store, and Telecom organizations. The Mac store and App store are the market with the maximum usability (Elliot 2012).

Promotion: This is as well very critical in securing competitive advantage in terms of invention of the most appropriate approaches of handling activities. The corporation achieves this through:

• Through television advertisement, online ads, and on billboard.
• Packaging is modern and promotes higher level of technology. (Elliot 2012).

Price: There are certain factors related to price that can be associate with the invention of the most appropriate approaches of handling activities and they include premium price, reduced over time, flexibility, discounts for workers and hence they have been considered by Apple corporation. (Kim and Mauborgne n.d.). Apple pricing strategy belongs to the premium pricing. The primary focus on the product’s conveyed value does not, however, abolish the pricing as the effective criteria in the company’s representation. The high end ethos creation along with the robust profitability rates underlines the Apple’s successful alignment of the strategic principles and the applied mechanisms.

CRM

Primary objective of Apple CRM is to ensure the trustful connection with the customer and to use the collected data to provide the smart offers, based on the client unique parameters and characteristics. The high quality of Apple’s CRM is the basis of the high-quality relationships, which in their turn provide the company’s competitive advantage in the long run(Foerster and Kreuz 2007).

Besides, Apple uses VRIO-analysis in order not to lose their position in the market. The example of it is presented below (Dilger 2016).

Value. Considering the dominant majority of Apple products, the resources are valuable.

Rarity. Apple’s distinctive features are represented by the convenience and usage easiness, which can ensure the provisional competitive advantage, as a number of other companies, successful at imitation (Wheelen and Hunger 2006).

Imitability. Due to Apple’s strategic alliances and acquisitions, a great number of hardware manufacturers belong to Apple, and similarly, the software elaboration is under thorough protection (Fritzenschaft n.d.).

Organization. This area is grounded on the previous results analysis, and in terms of resource exploitation, the software aspect, and the interoperability issue reflect the insufficient resource usage (Gramatikova 2013). The summary of VRIO-analys is presented in Table 1(Dilger, 2016).

So, Apple has many sustained advantage and stable competitive position. The strongest competitive advantages can be defined. Among them are human recourses, advanced technology, brand name and reputation.

External Analysis

Customer Analysis

The Corporation uses the CPM system to build relationships with customers. The information derived from the customer feedback is the major inspirational source, utilized for constant development. The product, service, and marketing quality are enhanced through the specific relations, provided by CRM, which plays a crucial role in Apple’s performance. The comprehensive user data is predominantly collected via Apple ID, which works as the research input data for adequate market assessment. Web beacons and cookies are vastly applied by Apple in pursuit of the best data accumulation and further site content and the efficiency enhancement (Greenberg 2010). The high quality of Apple’s CRM is the basis of the high-quality relationships, which in their turn provide the company’s competitive advantage in the long run.

According to the independent surveys and questionnaires, the Apple’s customer is 20-45 years of age, with a female user low percentage and it does not exceed 17 percent. The target segment includes students and professionals, engaged in programming or technology-related spheres. The consumer behaviour tends to differ in the online/retail context and depending on the preferred product. The design and exterior aspect plays the crucial role for the Apple customer, and presentation and aesthetics are the key characteristics (Gramatikova, 2013).

Competitor Analysis

As it can be seen from the figure 4, Apple’s financial performance is dominating in terms of market capitalization. Hewlett Packard as the closest Apple’s competitor in terms of revenue is specializing in the hardware development segment. On the other hand, Google occupies the second position after Apple according to market capitalization. In this respect, the threat is represented by Google’s involvement is software and hardware development, and cloud framework is challenging aspect for Apple. However, the unified operating system absence and Android low reliability are keeping Google behind (O'Grady 2009). Based on local survey and questionnaires done in Saudi Arabia, the company’s direct competitors are Samsung, HP and Sony. Worldwide, the company’s direct competitors are represented in table 4.

Figure 4: Apple’s Competitors (Digital marketing 2016)

Apple intends to take the advantage of its innovative sphere to perform the aggressive market penetration. On the new strategic basis, the company will implement the appropriate supportive tactics and democratized marketing strategy adjustments that would disclose the new corporate perspective. The elaborated tactics are aimed to mobilize the necessary power to reach the target segment, which is represented by the college and universities students and their families. The technological trends combined with the technocratic society behavioural patterns would provide the advantageous ground for Apple NPD. The strategic options set is targeted at providing the informational database reliability, meeting the target group demands and enhancing the customer experience.

Macro environment analysis

The aim of this analysis is to determine the probable threats and opportunities affecting the corporation in terms of growth.

Political factors

The corporation is considered to be the leading American technology company where a large amount of revenue has been accumulated. This has attracted the need for higher taxation as income inequality has emerged to be a political issue. It is known that Apple largely depends on China due to its low cost of manufacturing. In this respect, political and social unrest in China might lead to increased manufacturing costs or manufacturing disruption. Restrictions of Chinese imports to USA have been suggested in order to boost manufacturing in America. Dependence of Apple on Chinese markets as well as manufacturing is seen to be more prone to political unrest.

Economic factors

Labor costs that are increased in China could lead to compromising some Apple products cost advantage. Exchange rates could go up as a result of a strong US dollar and hence leading to too costly for Apple to contact business in the major markets such as China and Europe.

Social factors

The most prominent growth in consumer spending in future is highly associated with Africa as it is seen to be an area where people are not familiar with the products of Apple. A backlash against stylish products as well as expensive products does exist among certain consumers in Europe and USA. The close relationship of Apple with China could lead to potential consumers in other areas or regions like Europe and North America to be offended and more so when there exists tension with China.

Technological factors

Competitors like Samsung and Google have indicated a strong capacity of duplicating the services and products of Apple. In this respect, Google took months to roll out the Android pay (payment app) that had same features as Apple pay. This implies that several products and signature services of Apple are not unique. Increased use of tablets and smart phones will lead to a low demand for personal computers of Apple. The operating systems of Apple are considered to limit several applications that are available to the users of smart phones.

Legal factors

Apple is likely to have increased litigation levels as a result of financial services it offers. In this respect, it entered recently into the financial services considered to be a highly regulated sector via Apple Pay. As such, the government oversight and regulation level is expected to increase.

Environmental factors

Electronic devices disposal is considered to be the major environmental issue for Apple. The disposal expenses mostly associated with lithium batteries is considered to be very high. In this case, this expense is assumed by Apple due to the concerns related to devices in the landfills. Climate changes as a result of global warming might lead to disruption of the supply chain as well as transoceanic shipping. Energy consumption as well as other related side effects concerns from data centre could be associated with increased costs as well as regulations

Key Technological Trends for NPD

Apple constantly develops new products to remain the market leader in innovation and not lose its competitive. OLED engineering and flexible screens have been actively discussed throughout 2015; therefore, Apple has to adopt flexibility not only in a strategic sense but directly through the devices. 3GPP (third generation partnership projects) are taking down scores, engaging international cooperation as a challenge for wireless networks of today (Greenberg 2010). The sensors pervasiveness is indicating the feature prominent position in terms of future high-tech opportunities. Apple’s leadership position sustainability could be credited in the long-term perspective to the medical sphere collaboration via healthcare technologies. The house network is the rising area, which has experienced the price reduction and as the result, the increased affordability. Therefore, the active application and device elaboration with further laptop, PCs, and mobile phone synchronization are forecasted in the next two years (Wood, 2015).

Figure 5: Apple Blue Ocean Strategy for iPhone

The positive feedbacks of Apple costumers help to reach successes. At the same time however, based on the observations above, the other factor of success is innovation. Apple uses the strategy canvas to increase competitiveness advantage of iPhone (Figure 5). As we can see, the corporation has a clear strategy to promote this product in the market (Wood 2015). To this effect, the company relies on such markets assets as internal support assets and costumer-based assets, as a result of which Apple develops wonderful design and its iPhones include all necessary applications.

The next finishing step in Apple Strategic Audit is SWOT matrix creation that is based on analysis of internal and external company’s assets (Figure 6).

Figure 6: Apple SWOT matrix

According to the analysis results, Apple has a good marketing policy. The corporation should only strengthen the competitive advantages and find the ways to increase the lifecycle of the products. Apple shouldn’t reduce prices as this may have a negative impact on its reputation (O'Grady, 2009).

Apple’s vision is based on the leadership position, cradled during the four decade period. Stimulating and encouraging innovative technologies as well as introducing them into educational and medical spheres increase company’s influence on the global scale and contribute to the common good (O'Grady, 2009).

The main Apple corporate missions are:

- To provide the best quality of the products and services;

- To develop the best software;

- To maximise profit;

- To be the company number one in the area of the new technology offers;

- To be affordable and accessible to the widest target market;

- The new product development and constant innovation is targeted to integrate new features – easiness, increased standards and utmost effectiveness (Riggs, 2010). According to the corporate missions, the list of the main Apple marketing objectives is presented in the Table 2.

Table 2: Apple objectives

Objectives

The major challenges

Financial

• To increase the amount of capital returns to shareholders more than by 50%.
• The increase in the quarterly dividend amount by 11%.
• To increase profit by 17%.
• To achieve excellent indicators of the financial statements.

Market

• To increase sales by 24%.
• The conquest of new market segments.

Customer

• To increase customer loyalty by 6%.
• To offer more than customers expect.

Innovation

• To increase sales from new iPhone by 15%.
• To increase investments into the research area.

Reputation

• To increase the Apple brand mention in social networks by 40%.

Distribution

• To increase online sales by 24%

It should also be noted, that three year period of 2016-2019 is aimed at elaboration of the most efficient and unified educational application to be applied as the major literature database platform, based on the extensive theoretic studies, scientific research and studies. Apple seeks to integrate the evaluation system within the application targeted at unified evaluation system and further certification. With the new product introduction, Apple seeks to reinvent the brand image as the corporate citizen, intending to enhance the living standards and life quality on the global (Wood 2015).

Marketing objectives

• Product awareness increase by 30% among the target audience in a year
• Informing the target audience regarding the benefits and features of the product as well as its competitive advantage. This should lead to a 10% increase in sales in a period of one year
• Eliminate or reduce potential resistance of clients to buying the product, the end results is to increase in sales by 20% and this should be achieved in less than six months.

Strategic options

Porters Model

The generic strategy of Apple is considered to be broad differentiation and it focuses on major features which differentiate products as well as the company from the given competitors. Apple is seen to be unique in the market based upon the generic strategy that is of broad differentiation. For instance, on the basis of high-end branding as well as elegant design that is combined user friendly is seen to differentiate the company effectively. The generic strategy that is of broad differentiation implies that Apple majorly focuses on setting itself aside from its competitors not in terms of price but in terms of other major futures considered to be of benefit to the clients. Features of this kind include connecting devices with no sim cards. Despite the fact that such generic strategy leads to Apple being unique, the corporation is as well seen to reach out to several market segments. The product s of the company is designed to suit everybody and hence this supports a broad market reach.

It's desirable to use Porter’s Generic Strategies (figure 7) to determinate which strategy Apple should to use to introduce the direction of business development according to Ansoff matrix.

Figure 7: Porter’s Generic Strategies (Wood, 2015)

Apple segmentation strategy includes the next sub strategies: demographic (age, education, income, occupation), geographic (city, state, region or country), psychographic (life style, social class), behaviour or ethic segmentations.

The targeting is showed bellow according to the Apple segmentation strategy:

- Demographic segmentation:

Age: yang children, teenagers, adults.

Education: colleges and universities graduates and students.

Occupation: managers, administrators and executives.

-Psychographic segmentation:

Life style: less prise sensitive costumers.

Social class: medium and upper social classes.

The broad differentiation strategy is translated by Apple’s product and service differentiation (O'Grady, 2009). Apple has diversified the product in terms of functions and soft complexity.

Low-Cost Strategy is not Apple’s competitive advantages. Corporation produces high-quality goods which requires high price. Good-to-excellent product features incorporation is exemplified by the iPod and iTunes incorporation, which creates value for Apple products.

Thus, the main Apple strategic options are:

• Quality is the most important part of marketing strategy.
• Consistent brand promotion.
• Existing customers’ satisfaction.

The next step will be analysis the stakeholders of the organization. For this purpose, it is desirable to use Mendelow Matrix (Figure 8).

Figure 8: Apple Mendelow Matrix

Stakeholders interested in certain aspects of the corporation functioning. Some of them also have a fairly significant impact on the company's activities. The model allows Apple to estimate the impact of each of the stakeholders according to their levels of power and interest.

Tactics

Marketing can be defined in terms of the efforts of acquiring clients. However, it is evident that things are moving towards a kind of business that is relationship based and this includes subscription commerce as well as subscription services, but as well including most of other business. Currently, retention of clients is just as very crucial as client acquisition. In this respect, the question to be asked is related to the way the marketing 7Ps are applied to client retention marketing and this has been explored as in the next section

7ps.

Price

Considering price for product, company should apply different tactics to influence more markets than those, which can be influenced now, since there are many competitors, which manufacture IT products for middle and low-income customers, which cannot afford expensive solutions like iPhone or alike. Competitors, who provide almost the same solutions, can override Apple’s efforts in long term perspective, since they can get support from middle-class customers, who can grow into the high-income class and get more expensive products, and Apple’s price policy is targeted mainly on the high-income customers.

Place

Figure 9: Distribution of Apple’s products sales.

According to the recent reports, Apple sells more products to non-US countries than to the local market (O'Grady, 2015). Using the proper pricing strategy, company can introduce its products to the developing countries, which will gladly consume the famous products. Furthermore, promoting the services and product in such countries can provide more opportunities for development. Thinking of distribution place, company should open specialized brand-shops, which will sell Apple products and provide associated services. It could help to introduce the product and get more customers outside the US. Furthermore, more efforts should be spent on the internationalization(O'Grady, 2015).

Promotion

Apple’s promotion efforts are made in the effective way, since they provide high brand awareness and advertise Apple’s products in the stable manner; therefore, no changes to the promotion tactics should be made.

Physical evidence

To get more customers, using the specialized stores, which were mentioned above company can hire trained employees, which will offer all company’s services in the proper way. It means that customers should be given with the clear information towards the products and their application (O'Grady, 2015).

People

One cannot state that there is enough people in the market, since company need to expand activities to other customers’ groups. To do so, Apple should introduce changes in price, substitute expensive details of the iPhones. However, from the point of view of the company’s objectives, Apple gets enough loyal customers from the high income segment (O'Grady, 2015).

Partners

To get better expansion, opening of new stores and redesigning of Apple’s devices, company should look for more partners, which will provide substantial insights. Considering the existent partners, they are managed in the good way.

Processes and key success factor

Key success factor of the Apple Company lies in the development of more flexible business model and better value proposition, since market tends to the middle-class sales, and influencing only high income customers can provide problems with profits maximization in the long term. To get the flexibility, company should invest more in creativity and R&D hence new solutions are required. Updates of company’s processes can help with innovations and introduction of new strategies to reach new market that is currently unavailable (Wood, 2015).

Controls

Strategy:

Company’s strategy is developed enough to face the major issues in the development, however, mostly proper use of the current development strategy can help to turn company in something even stronger than it is now. Company lacks flexibility and it should acquire it through the minor changes(O'Grady, 2015).

Structure:

The use of current structure can show that company is doing the right thing with its structure. Mainly Apple’s corporate structure can be defined by 3 major characteristics – Spoke and wheel hierarchy, Function-based grouping, Product-based grouping. Using latter two Characteristics Company can easily innovate its products and introduce something new to the market. It is almost ideal way to structure the business. Use of this structure can also help company to achieve its main corporate objectives (Wood, 2015).

Systems: the daily activities and procedures that staff members engage in to get the job done.

Systems

It is quite hard to define the effectiveness of systems, since they are important of business activities, since currently they contribute to the objectives fulfilment, perhaps with time certain shift of system can be applied to achieve company’s objectives.

Shared values

Considering shared values, one should underline that Apple’s vision and work is directed on the constant development, innovations and stable, but gradual introduction of new elements to business model and other parts of company. Using such shared values, effectiveness of all factors, which are mentioned in this section will be multiplied (Wood, 2015).

Leadership style

Formerly Apple had autocratic leadership style that had many positive issues, since Steve Jobs was talented leader and had many good ideas. His successor developed another style that emphasizes the collective strength of employees. It is quite indicative, since Tim Cook has democratic views towards the leadership that means consensus building, mutually consented decision making that is going to provide multiple benefits, however it is not so clear that such style will provide substantial benefits (Wood, 2015).

Staff and skills

Apple hires only experienced and innovative employees. It means that all of them have enough level of creativity and even lowest employees can provide substantial insights towards the business development. Using the democratic ideas of the Tim, all employees are engaged in decision-making that is really good way to encourage company’s innovation and provide competitive strength (Wood, 2015).

Measurement

There are many objectives, which need to be achieved, however, considering the fulfilment of one objective that is increasing of profits by 20% can be carried out through application of multiple departments of the company. It requires substantial changes in the corporate structure and the strategies to get results.

Figure 10: Gantt chart (objectives and milestones)

Figure 11: Gantt chart (responsibilities)

Budget differentiation

Task

Budget (£)

Development of brand and customer’s loyalty

N\A

New model development

30000

Pricing changes

10000

Interoperability issues

50000

Increasing reliability

N\A

Improvement of customer services

10000

3D display introduction

50000

Using the specialized leaders, who can handle such strategic objectives, company can reach the main objective it has. However, it needs much time to complete. Therefore, employees’ loyalty and skills present higher importance.

Perspect- tive

Objective

Measure

Target

Contingency

Financial

Increase profits, increase sales and amount of loyal customers

Compound growth rate, profitability ratio

30%

Drive growth from innovations and introduction of new products.

Customer

Better customers’ loyalty, better brand reputation

Customer lifetime value, reptrack score

20%

Investment in CRM, introduction of new product

Process

Internal processes

FTE, ROE

30%

Optimization of processes, hiring more experienced employees

People

Skills, loyalty

% of loyal employees, % of employees with creative insights

40%

Encouraging innovation, participation in career expo, investment in own section in expos.

Figure 12: Metrics table

Using the metrics above, it is easy to define what company’s features should be emphasized and processed by the current employees. They can require some time, however, according to the current projections, they expect to reach such targets in a few years that means that company is going to change in the structure and the corporate culture to face the requirements, which should be faced to achieve these objectives (Wood, 2015).

Considering all the above-mentioned facts and analyses, it is clear that Apple has the high level of the learning capacity, since it encourages innovation and currently has the democratic style of leadership. It helps to maintain the effective use of the employees’ ideas to aid the corporate objectives and to improve the overall performance of company. Using the innovations, company can enter new markets and to develop its brand awareness(Wood, 2015).