Case Study solutions Apple iphone in Japan PDF

Preview

Summary

Case study for part of module: market entry analysis ...

Description

Apple iphone in Japan: Wire-less, Culture Full – CASE STUDY SOLUTIONS

1. Using the 4P model explain the iPhones market entry strategy as presented in the case. In terms of product, Apple sold the same handset worldwide, although the default preferences such as Japanese language support were tuned to Japan. Basically, they sold the most technically advanced and stylish smart phone and music player on the market at the time as a single product around the world. Because of all the different deals which were going on, and exchange rate fuctuations it is diffcult to perfectly compare Japanese and US prices. CURRENCY FLUCTUATION PROBLEMS However, the price for new customers to sign up for an iPhone in Japan was 34,560 yen in Japan and 288 dollars in America. So it seems like they charged a slightly higher price in Japan, and certainly a higher price than most other Japanese phones on the market at the time. Promotion for the iphone seems to have been a blend of the clearly recognizable Apple style promotion, sleek and sexy, and Softbank run ads which utilized familiar Softbank characters and style. Finally, in terms of location because of Softbanks small reception areas iPhone was almost by default targeted mainly at the urban parts of Japan. 2. Where was the iPhone in terms of extension/adaptation in the case? Apple and Softbank seem to have had different strategies. Apple seems to have extended both their product and their message. Softbank on the other hand seems to have adapted before and after sales service, which is the product Softbank supplies in the deal, slightly to the Japanese market, and adapted its marketing as well. 3. The Japanese are generally considered to be higher context than customers in some of Apples other markets. What effects could this have had on the iPhones sales ? One big issue in a high context culture is trust. In Japan because of its lack of customization, its newness, and the paradigm shift required to use it, the iPhone may have been viewed more as an uncomfortably different product, rather than an excitingly new one. Also as small a detail as it is emoji are vital to high context communication in Japan and the failure of the iPhone to make its emoji compatible across carriers may have signifcantly damaged its sales. 4. What was Softbank’s segmentation strategy in terms of iPhone marketing? Softbank, unfortunately, does not disclose any offcial statistical numbers. However, one statistical data shows that

demographics in United States are distributed from age of 15 to 50. Majority of users are youth at age of 25 to 34 and mostly male. Softbank might have followed the same strategy when they launched iPhone in Japan. However their marketing materials such as their famous family commercials with a dog as the head of a family and other celebrities as the family members appear to be targeted at a more general audience. 5. Of the strategies presented which one would you choose and why? Of the strategies presented the best one was to forge alliances with multiple carriers. This would allow Apple drive down prices, extend coverage, and sell more handsets. 6. Thinking back to what you have learned so far from class and the case, what kind of strategy would you support in Japan to increase sales of the iPhone? Basically, Apple and Softbank have the right idea in terms of how they are marketing their product. We do not think any massive changes are necessary for the success of the iPhone in Japan. Much of the sluggishness of sales can be attributed to the sluggishness of the Japanese market. New products simply take a long time to get a foothold in Japan. There are many reasons for this but a big one is that culturally Japanese value stability, new products, especially 7. Describe this strategy using the 4Ps model and the extension/adaptation model. The frst new strategy would be using the same promotion, and the same place, but modifying the product slightly, and reworking the price. In other words the product and message would undergo minor adaptations but the core of both would simply be extended. The second strategy would be to modify the product to a more elderly friendly one, the promotion to appeal more to older Japanese, and the place from urban Japan to rural Japan. 8. What cultural problems could you see arising from the implementation of this strategy, and how could you adapt your plan to meet these problems? As stated before the Japanese are not quick to embrace change. Any market entry into Japan has to take this into account and be prepared to sink a lot of resources into Japan without seeing many results. Also the Japanese despite being “high context” are also notoriously picky and detail oriented. So while the iPhones many bugs, lack of quality camera, bad reception and other issues may be looked over in other countries this will be a much bigger

hurdle in Japan. For the second strategy one potential problem among the elder segment could be a strong dislike of change and of “foreign” type products. Also the older segment of the market is more likely to be adverse to purchasing applications online. 9. “A lot of times, people don’t know what they want until you show it to them.” - Steve Jobs. Comment on what implications a company culture like this might have on product marketing. Apple is a tech/design company. The products that have made the company successful have almost all been ground breaking, paradigm shifting, against the grain products. They do not simply put a minor new feature on a familiar product, they make a new product category. In order to market this successfully it is not as important for Apple to show that they are better than the competition, because many times there is no real competition. Instead they must show that their product is so different, so much better, than any other products that it is simply in a category of its own. As changing peoples minds always does Apple must, it its promotion somewhat throw its products at consumers, despite initial complaints. If they don’t then they will be unable to change product paradigms and make their products a success. It terms of marketing this means that Apple will have to push consumers comfort zones a bit to get them to change. They may need to have a higher price, a different product placement, or a different set of features. 10. In action, if not word, Apple is striving for universal design. What implications does this have on how it markets its products in a global environment? Universal design is, at its core, the idea that if you design something well enough, anyone will be able to use it, regardless of the persons sex, age, nationality, etc. It terms of marketing what this means is that the products which Apple produces are largely the fnished products, with little room for customization. For instance while other companies may put a better camera into their Asian cell phones, this is not really an option for Apple....