Marketing Strategy OF Apple Iphone PDF

Preview

Summary

A MINIPROJECT REPORTONMARKETING STRATEGY OF APPLE IPHONESUBMITTED FOR THE PARTIAL FULFILLMENT OF THEREQUIREMENT FOR THE AWARDOFMASTER OF BUSINESS ADMINISTRATION(BATCH- 2020 -2021)AFFILIATED TO:Dr. APJ Abdul Kalam Technical University, LucknowSUBMITTED TO: SUBMITTED BY:DR. PANKAJ PANDEY KESHAV SHARMA...

Description

A MINI PROJECT REPORT ON MARKETING STRATEGY OF APPLE IPHONE SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD

OF MASTER OF BUSINESS ADMINISTRATION (BATCH-2020-2021) AFFILIATED TO: Dr. APJ Abdul Kalam Technical University, Lucknow SUBMITTED TO:

SUBMITTED BY:

DR. PANKAJ PANDEY

KESHAV SHARMA

( Faculty )

MBA 3rd SEMESTER

RD ENGINEERING COLLEGE, DUHAI, GHAZIABAD

DECLERATION

I, KESHAV SHARMA hereby declare that the project entitled MARKETING STRATEGY OF APPLE IPHONE has been carried out by me under the guidance of Dr. PANKAJ PANDEY This project is submitted to Dr. A.P.J. Abdul kalam Technical University, Lucknow, In partial fulfilment of the academic year 2021-2022.

This is the outcome of my own research work based on personal study and has not been submitted previously for award of any degree or diploma to this university or any other university.

(KESHAV SHARMA)

Acknowledgement

Completing a task is never alone journey. It is often the result of a valuable contribution from a number of individuals in every possible way, which ultimately helps in achieving the objective. Firstly, I would like to thanks Head of department Dr. GAURAV BANSAL and Guide Dr. PANKAJ PANDEY, for their kind support and giving me the opportunity to present this project. I am thankful to all the members of management of the college, who provided me to all the information that I needed to complete this project. This project would not have been accomplished without their valuable support. I would like to acknowledge the contribution of my parents and all my friends who have been instrumental in successful completing of the project.

Name of student KESHAV SHARMA

Table of contents 

INTRODUCTION OBJECTIVES

1. 2. 3. 4.

MISSION VISION PROBLEM IMPORTANCE

(4-7) 



RESEARCH METHODOLOGY 1. MARKETING RESEARCH 2. RESEARCH DESIGN 3. DATA COLLECTION AND SAMPLING Sources of Data Collection i. Data Collection Tools Sampling Plans a. Sampling Units b. Sample Size c. Sampling Area d. Sampling Survey e. Sampling Design

( 8-15)

 OBJECTIVES OF THE RESEARCH

(16-17)

 SCOPE OF THE RESEARCH

(18-20)

 APPLE”S CELLULAR PRODUCTS PRICE RANGE

(31-33)



(34)



PROFILE OF THE COMPANY HISTORY AND BACKGROUND SWOT ANALYSIS

(36-36)

1

 1. a. b.

MARKETING STRATEGY OF APPLE IPHONE MARKETING OBJECTIVES TARGET MARKET POSITIONING

2. a. b. c. d.

MARKETING MIX STRATEGY PRODUCT PRICE PLACE PROMOTION

(37-40)

 APPLE AND ITS COMPETITORS

(41-43)

 SUGGESTIONS

(44-46)

 LATEST BUZZ OF APPLE’S PRODUCT

(47)

 DATA ANALYSIS AND INTERPRETATION

(48-61)

 FINDINGS AND OBSERVATIONS

(62-63)

 CONCLUSION AND RECOMMENDATION

(64-65)

 BIBLIOGRAPHY

(66-68)

 QUESTIONNAIRE

(69-74)

 REFERENCES

(75)

2

“THINK

DIFFERENT ”

- Steve Jobs

3

INRODUCTION

4

OBJECTIVES:

Apple wants to be perceived as the provider of the youngest, newest, hippest and most chic-designed products on the market. Their entire marketing strategy revolves around a simplistic style that doesn't require a whole lot of wording; its style alone is enough to entice and engage a customer. A secondary marketing objective is that they want to communicate that all of their products are interoperable - meaning that they'd like each of their products in various segments (the macbook pro, the iphone, the ipad, etc.) to be used in complement to each other. They'd like to create a generation that is defined by the Apple lifestyle. MISSION: “Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them.” VISION: “Apple is determined and committed to deliver the personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings. Apple is able to enhance the resources for future generations and for continuous improvements.”

PROBLEMS: Nowadays, people spend more time on their phone due to the function available too broad. The first problem is the price for iphone is relatively high. Second problem is the radiation release by iphone is high and it might put our health at risk. Third problem is the durability of battery is low.

5

IMPORTANCE:

In terms of developing a strategic vision as it relates to marketing, below are some of the key takeaways to consider from Apple when formulating a long-termstrategy for success:

1) Identify Trends – By recognizing such trends as digital consumerism and that the PC industry was becoming highly commoditized, Jobs was able to visualize a strategy for a product that met consumer needs. To uncover such insights, it’s important to look across industries, strategic groups, buyer groups, the scope of a product or service, the functional-emotional orientation of an industry, and time. More info on that topic is available in a blog post here. 2) Analyze Competitors – When research pointed to the fact that Apple was losing market share and cannibalizing sales due to their strict licensing policy, Jobs ventured out to contract with Microsoft to develop core products, while at the same time making the decision to utilize Intel chips in their computers, enabling Apple to build laptops that were both faster and less power hungry. By thoroughly understanding his competition, he was able to partner with competitors in ways that were not only mutually beneficial, but downright advantageous. 3) Innovate – By following a Schumpeterian model of creative destruction and focusing on the needs and wants of the consumers rather than how to just improve upon an existing product, Apple was able to continuously re-think its product line and invent new products that re-defined the traditional boundaries of the market. Innovation allows for companies to capitalize on the “first mover advantage,” resulting in the realization of high up -front market share and profit margins.

6

4) Position Your Product - Because many computer systems and related products can be easily replicated, finding ways to extend the life of a product through complementary offerings is almost as important as re-invention. For example, the App Store served as a complement to the iPhone which resulted in $1 billion in annual profits. And upon the launch of the iTunes store, an exponential demand for iPods was created. 5) Build Brand Awareness – Through utilizing creative campaigns and nontraditional advertising channels for the Mac brand, Apple embarked on a truly unique differentiation strategy, which helped grow brand awareness. 6) Optimize Distribution – Apple revamped its distribution system to move from smaller outlets to national chains. They also opened their own retail stores (280 stores in 10 countries), which now account for 16% of Apple’s total revenue. The retail stores were a success because they provided users with an opportunity to learn about, experiment with, and test drive products. 7) Don’t Forget Your Customers - Apple is known for superior customer service. In fact, just the other day I corresponded with a customer service representative though their online chat function and received a thorough answer to my inquiry. By creating and sustaining a superior customer service model, competitive advantage can be easily achieved.

7

RESEARCH METHODOLOGY

8

Marketing Research:

“Marketing research means the systematic gathering, recording, analyzing of data about problems related to the marketing of goods and services.” Marketing research has proved an essential tool to make all the needs of marketing management. It is, therefore, a scientific process of gathering and analyzing of marketing information to meet the needs of marketing management. The systematic conduct of research requires: 

Orderliness, in which the measurements are accurate. Impartiality in analysis and interpretation.

Research can be categorized into:

o BASIC RESEARCH: Basic research is intended to expand the body of knowledge for the use of others. o APPLIED RESEARCH: Applied research is one, which is carried out to find the solution for a particular problem or for guiding a specific decision. It is usually private in nature.

My research on Apple Iphone is carried on to expand the knowledge about the policies of Apple Iphone and its results are useful to Apple Company for taking particular decision regarding product quality, sales, and its trategies. Hence the nature of my research study is “BASIC RESEARCH.”

9

RESEARCH DESIGN Research design indicates the methods and procedure of conducting research study. It is the arrangement of the essential conditions for collection and analysis of data in a form. Research design can be done in following three types:1.

Exploratory Research:Exploratory research determines the general nature of the problem and the

variables related to it. The main emphasis is laid on the discovery of new ideas and is generally based on secondary data. 2.

Conclusive Research:-

Conclusive research provides information for the evaluation of alternative courses of action and can be categorized into descriptive and causal research.

Descriptive research is undertaken when the researcher want to know the characteristics and features of certain groups. Causal research is undertaken to identify causes and effect relationship between two variables. The Research Design is: Descriptive Research Design

10

Data Collection and Sampling: A)

Sources of Data Collection:-

Basically there are two types of data i.e. secondary and primary: 

Primary Data: Primary data comprises of direct responses and data is

collected from different

respondents . Questionnaire was used as the major tool

in collecting primary data for our research. Primary data also collected through the direct interview with the respondents.



Secondary Data: Secondary data is the data, which is not gathered for the

immediate study at hand but for some other purposes. Secondary data for the research is collected through magazines like Business World, newspapers, Auto magazines and internet etc.

Therefore both the types of data were used in order to collect information for the study.

11

B) Data collection Tools: To conduct a survey, the Researcher has selected a structured questionnaire as an instruction for gathering valuable information from the customers. Questionnaire, which is used for the survey, is consisting of questions and checklist questions to check the customer feedback.

Sampling Plan: The researchers have to design a sampling plan that consists of four decisions: A) Sampling unit: Who is to be surveyed? The Researcher has selected youngsters, businessmen, housewives and employees to conduct survey and to measure the satisfaction level of customer.

B) Sample Size: Sample size means limited numbers of respondents covered under the research study from a population. Here, the researcher has taken a survey of 100 respondents to know the satisfaction level of customer.

12

C)

Sampling Area:

The researcher’s area for survey was: 

RD Engineering college, duhai, Ghaziabad



Few areas in Ghaziabad, UP

D)

Sampling Survey:

Here the researcher has randomly selected the respondents of Ghaziabad, Noida and Ghaziabad.

E) Sampling Design: Here the researcher has chosen “SIMPLE RANDOM SAMPLING” [sub part of probability sampling] to carry out the survey. In this each unit of the Population (100 respondents) has an equal chance of its selection.

13

OBJECTIVE OF THE RESEARCH

The following survey was mainly done with an objective to know the state of mind of an individual and their preference of buying an apple Iphone. And their satisfaction level towards buying the same. I. To know brand awareness of apple. II. What are the problems reported by iphone user? III. What are the places for purchasing iphone? IV. Which type of promotion and packages available for iphone? V. To know the customer perception with special reference of apple iphone. VI. To know the buying pattern of consumers. VII. To inquire the price, quality, feature and design expectation of the consumers. VIII.

To know the preference of this brand by the customers.

IX. To know the buying frequency of the consumers. X. To know the satisfaction and pride from this brand. XI. To know the percentage of purchasing this brand regularly. XII. To know from which media the customers come to know about this brand.

SCOPE OF THE RESEARCH: 14

 To conduct this research, the target population was the mobile users who arousing apple technology .  Sample size of 100 respondents was taken.  To these 100 respondents, a questionnaire was given, which was a combination of both open ended and close ended questions.  Finally the collected data and information was analyzed and compiled to arrive at the conclusions and recommendations. 

Money plays a vital role during the whole project duration.

15

APPLES CELLUAR PRODUCT PRICE RANGE

16

CAPACIT Y

8GB

16GB

32GB

64GB

12200/ -

15000/ -

18000/ -

--

PRODUCT S

IPHONE 3G

-IPHONE 3GS

14500/ -

17000/ -

20500/ 31000/ -

IPHONE 4

25000/ -

27000/ -

28500/ 38200/

17

PROFILE OF THE COMPANY

18

History and Background:

The iPhone is a revolutionary piece of hardware. Matching simplicity with power, it is the epitome of what Apple does well and will certainly appeal to the company’s longtime faithful customer base. However, Apple must be careful that it does not waste an incredible chance to effectively access the wireless smart phone industry with the iPhone. Currently, there is no hardware interface superior to the iPhone, and Apple must ensure that its accompanying software flows along the same vein. So, it is imperative that Apple capture a substantial portion ofthe rapidly expanding smart phone industry if it is to truly bring wireless communication convergence to the world. While Apple has currently made deals with several movie studios, it must also ensure that the iPhone serves as a practical solution for businesses. While it is important that the iPhone provide entertainment, it must also be a functional business tool, and an open source software development kit will assure that developers will have the freedom to make sure that the iPhone realizes its full potential. If Apple does appeal to businesses in this way, it is a very realistic assumption that the company could capture at least a 30% market share and increase its net profits by many times. Since its initial release, Apple’s iPhone has garnered an incredible amountof excitement throughout the world amongst both computer enthusiasts and technophobes alike. The iPhone, Apple’s first foray into the extremely competitive wireless telephone market, has captured attention with its revolutionary user interface. With one face composed entirely of a touch screen, the iPhone is able to provide its user with both a convenient and familiar “qwerty” keyboard, and a widescreen cinema display, all at the touch of a finger. Furthermore, Steve Jobs recently anno unced during Apple’s 2008Keynote that the company has signed contracts with several large name studios including Disney, Paramount Pictures, and Warner brothers, allowing it to provide iPhone users a vast catalogue of ondemand movie rentals. This chart depicts the astounding growth of apple’s stock from JANUARY 9, 2007 to JANUARY 9, 2008.

19

20

SWOT ANALAYSIS

21

Strengths:-

1) Customer loyalty combined with expanding closed ecosystem: While at first Apple’s closed ecosystem was a weakness for the business, this has now changed. First, Apple now has a full range of apps, software and products that are interlinked and support each other. Second, new products and supplements will be released soon (iTV), hence expanding the ecosystem. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem, which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding closed ecosystem and customers’ loyalty increases firm’s competitive advantage.

2) Apple is a leading innovator in mobile device technology: Apple has been chosen as the most innovative company in the world for the 3rd time in 2012. Company’s core competency of producing innovative products is the strength the company builds upon and is able to bring the most innovative products to the market.

3) Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt): Apple’s financial performance is one of the best among many companies. Company currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions, buying back company shares and other matters. It also has higher gross profit margin than its main competitors, which is equal to 43.9 %. Company has no debt and is not directly affected by interest rates or credit markets.

22

4) Brand reputation: Apple has a reputation of highly innovative, well designed, and well-functioning products and sound company performance. Apple brand is valued at $76.5 billion and was the second most valuable brand in the world in 2012.

5) Retail stores: Apple’s retail stores ensure high quality customer experience; provide direct contact with knowledgeable staff and increases brand awareness. Besides, Apple’s stores are one of the most profitable in terms of sales/ft2.

6) Strong marketing and advertising teams: Marketing is one of the strongest functional areas Apple has. It can sell pricier products, build superior stores (they are more or less built to achieve marketing goals) and advertise their products in a compelling manner.

23

Weaknesses:-

1) High price; Apple’s products cost much more than its competitors devices:

Some critics argue that the price is not justified. When there’s such a fierce competition, Apple products price becomes a weakness because consumers can easily opt for similar quality but lower price products.

2) Incompatibility with different OS:

The iOS and OS X are quite different from other OS and uses software that is unlike the software used in Microsoft OS. Due to such differences, both in software and hardware, users often choose to stay with their accustomed software and hardware (Microsoft OS and Intel hardware).

3) Decreasing market share:

The less market share Apple has, the less it can influence its potential customers and persuade them to jump into using Apple’s closed ecosystem products.

4) Pat...