PMK-Apple\'s marketing strategy PDF

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BỘ GIÁO DỤC VÀ ĐÀO TẠOTRƯỜNG ĐẠI HỌC HÀ NỘI-------oOo------APPLETeacher: Tran Thuy Linh Student: Nguyen Le Yen Linh Le Thi Anh Pham Ngo Lan Huong Pham Thanh Ha Kim Phuong Anh Khuc Thi Khanh Huyen Course: Principles of MarketingHanoi, 20th December 2021TABLE OF CONTENTS1. Executive Summary..............

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BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC HÀ NỘI -------oOo------

APPLE Teacher: Tran Thuy Linh Student: Nguyen Le Yen Linh Le Thi Anh Pham Ngo Lan Huong Pham Thanh Ha Kim Phuong Anh Khuc Thi Khanh Huyen Course: Principles of Marketing

Hanoi, 20th December 2021

TABLE OF CONTENTS 1. Executive Summary...........................................................................................1 1.1. Mission..........................................................................................................................1 1.2. Vision.............................................................................................................................1 1.3. Objectives......................................................................................................................2 1.4. Goals..............................................................................................................................2 1.5. Interesting things related to the company......................................................................2

2. Current Market Situation.................................................................................3 2.1. Understand customers need, want and demand.............................................................3 2.2. Market place..................................................................................................................3 2.2.1. Market Offerings........................................................................................................3 2.2.2. Market Competitors....................................................................................................4 2.2.3. Market Growth...........................................................................................................5 2.2.4. Market Distribution....................................................................................................5 2.3. Product...........................................................................................................................5

3. S.W.O.T............................................................................................................... 6 3.1. Strengths........................................................................................................................6 3.2. Weaknesses....................................................................................................................8 3.3. Opportunities.................................................................................................................9 3.4. Threats...........................................................................................................................10

4. Marketing Strategy............................................................................................11 4.1. Segmentation.................................................................................................................11 4.2. Targeting........................................................................................................................11 4.3. Positioning & Differentiation........................................................................................12

5. Action Program..................................................................................................13 6. Recommendations..............................................................................................14 7. Budget.................................................................................................................16 8. Control................................................................................................................ 17 References.................................................................................................................19

1. Executive summary Apple began as a small computer business known as "Apple Computer." Apple Inc. is a publicly traded corporation that specializes in the development of high-tech electrical devices, computer hardware, and software. Over time, Apple has developed into a cult-like brand with millions of fans.

1.1.

Mission

"To deliver the greatest personal computing devices and support to students, educators, designers, scientists, engineers, businesspeople, and consumers in over 140 countries around the world," Apple's corporate goal states. Apple's press releases and public comments emphasize the company's goal as a means of addressing current market problems (Rowland, 2020).

Apple Inc.'s business mission statement emphasizes the importance of recording objects as hierarchical yields. The mission statement also establishes that the innovation organization's target customers are essentially everyone. As a result, Apple creates products that cater to the needs and preferences of customers in various market segments. In addition, the corporate objective states that the company's projects have a global scope, focused on consumer electronics and internet administration sectors all over the world. Apple Inc. 's promoting mix, or 4Ps, is determined by the emphasis on processing items in the business statement of mission. This mission statement has an influence on the organization's corporate vision statement, which leads important planning for how the innovative business will carry out the corporate mission in the future (Visionary Team, 2021).

1.2.

Vision 1

"To build the finest goods on earth, and to leave the world better than we found it," Apple Inc.'s business goal states. The corporate vision statement is in line with Apple's corporate social responsibility policy, emphasizing sustainability, environmental conservation, and the company's total environmental effect.

The term "best things" indicates that the corporate vision envisions the innovation organization as a global leader in item development and planning. Apple's goal of having the finest products drives them to continually push for new product development. The corporation has plans and rules that apply to its operations as well as the activities of business partners in order to achieve its corporate vision statement. In certain ways, the corporate goal broadens Apple's worldwide reach. The vision statement has an impact on Apple Inc.'s corporate culture and human resources because of the emphasis on excellence and environmental protection (Rowland, 2020).

1.3.

Objectives

Apple's broad differentiation generic competitive strategy calls for continuous innovation as one of its strategic objectives. In addition, the corporation must continue to expand its market reach, such as in the worldwide consumer electronics sector, to maintain commercial growth. Apple's generic competitive advantage strategy does not target any specific market niche. Instead, it competes by providing a variety of items and services that cater to different parts of the consumer electronics and information technology services industries. As a result, one of Apple's strategic goals, based on its overall strategy, is to enter markets to achieve a broad reach. Intensive growth tactics are used to achieve such expansion and corporate growth (Meyer, 2019).

1.4.

Goals

Apple has a lot of goals. Finance and the environment are two that stand out. Apple's purpose, according to Jonathan Ive, Senior Vice President of Industrial Design, is not to generate money, 2

but to develop good goods. Apple's goal is to "power every Apple plant fully with energy from renewable sources - solar, wind, hydro, and geothermal" from an environmental standpoint (Griffen, 2013).

1.5.

Interesting thing related to the company (fun-fact)

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Prior to starting Apple, Steve Jobs and Stephen Wozniak worked at HP.

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Steve Jobs was a college dropout.

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Apples are a favorite fruit of Steve Jobs, the founder of Apple Inc. It was discovered in his posthumous biography that he named his company after this fruit because of his passion for it.

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The first logo: Ronald Wayne, Apple's third co-founder, developed the company's initial logo, which featured Sir Isaac Newton.

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Ronald Wayne, Apple's third cofounder, left the company extremely early. He sold his shares to Steve Jobs and Steve Wozniak for $800 just twelve days after the company was established.

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The "i" in iMac, iPad, and iPhone was formerly assumed to stand for the internet. However, the corporation stated that the "i" stood for innovation and individuality.

2. Current Marketing situation 2.1.

Understand customers need, want and demand

Today, the number of people using electronic equipment is increasing and rejuvenating. And what do customers want from their electronic equipment? Storage, battery life, processing, duality, security, design, and camera quality are the usual aspects which make up for the top desires of customers. Apple gains a better understanding of its customers by soliciting feedback, and through soliciting feedback, they can improve their products by releasing new items or

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updating their IOS. As a result, by making modifications to their products, Apple better knows its consumers' needs, wants and demand, attracting more new customers into their store.

2.2.

Marketplace

2.2.1. Market Offerings Apple was the first successful personal computer firm and made the graphical user interface popularized to people in the world. For good reason, Apple is one of the most well-known tech corporations of all time, and one of the Big Five of technology. Since its humble beginnings in a garage, Apple has been a brilliant innovator of consumer products, from the current iPhone to the original Apple computer.

Apple has launched goods that are in accordance with current trends, as part of its credo of "When the world changes, business changes too". They are always evolving to meet the needs of their clients. Apple provides its clients with a variety of products, including cell phones, laptop computers, and auxiliary devices. Apple is committed to driving revolutionary technology that develops and produces products for convenience and durability that offer superior shaving efficiency, both in proximity and comfort. Apple is placed at the market’s premium end, offering superior quality products that set the benchmark for the technological industry. Because the price is higher than the market, Apple mostly serves the middle and upper classes.

2.2.2 Market Competitors Technological equipment industry is a big business in the world and in it there are many different sectors like smartphone, laptop, iPad, smartwatch, and digital services. Apple's most valued product is the iPhone, which has been the company's principal source of revenue since 2008. Samsung is a brand which has enough sales to be real competitors of Apple.

Samsung is a Korean electronics company with a diverse product line. Lee Byung-Chill launched the company in 1938. It is now one of the top ten most valuable firms in the world. In 4

the Smartphones segment, Samsung is one of Apple's main competitors. In terms of smartphone market share, Samsung is the market leader. Galaxy smartphones are widely regarded as the industry's forerunners. Apple's iPhone and Samsung's Galaxy are battling it out for market share. It had a significant impact on the iPhone market share in one way or another. Samsung is able to make phones at a low cost. Samsung has a significant market share in the laptop area, although it is not among the top Apple competitors.

Samsung has a global market of 29.14%. Samsung Electronics posts record operating income and sales for the fourth quarter of 2020. For the full year of 2020, the company posted operating income up 29.6% to 36 trillion won and 236.8 trillion won in sales. And Samsung second only to Apple.

2.2.3. Market growth Apple, the world's most valuable technological business, saw strong brand value growth in 2021, nearly doubling its brand worth from the previous year. In terms of revenue, Apple has also put up remarkable numbers. Apple announced its highest annual revenue to date in 2020, coming in at close to 275 billion dollars. Although iPhone sales account for most Apple's revenue, services, as well as wearables, home, and accessories, have contributed to the company's net sales in recent years.

2.2.4. Market Distribution Apple can create massive sums of revenue through direct and indirect distribution channels all over the world. The company has 510 storefronts across the world, but it also sells through thirdparty retailers and carriers. They've established a whole ecosystem that connects all of their products and services. Apple's goods are designed in California, yet they are manufactured all over the world. Components are created by specialists in each part all around the world and shipped to China. Due to the lower cost of labor in China, Apple's manufacturing costs are substantially reduced. 5

Apple's physical storefronts and online store are both part of their direct distribution system. Every one of their locations has the same clean white style and a high employee-to-customer ratio. They also frequently open their storefronts in high-traffic areas to maximize visibility. In 2018, Apple claimed that direct channels accounted for 29% of net sales, while indirect channels accounted for 71%.

2.3.

Product

Apple with reference to products, the company manufactures phones, computers, tablets, televisions, watches, and wireless headphones. Therefore, they can purvey the customer’s specific needs. The company also develops its own operating system known as the iOS which the products are run on. The latest products of Apple are iPhone 13 and Airpods 3.

With iPhone 13, Pricing on the iPhone 13 mini starts at $699, while pricing on the iPhone 13 starts at $799, and there were no increases in prices this year. It’ll also reportedly have a better camera, the Pros might get a 120Hz ProMotion display, and there may be an always-on display at long last as well. The new iPhone 13 has a brighter display and improved cameras. Apple's A15 Bionic chip is the fastest in the world once more. Cinematic mode adds depth of field to videos while moving focus automatically, and Photographic Styles allow you to change the style of your photos.

The Airpods 3 is priced at $179, a price tag that includes the two earbuds and the magnetic charging case. Apple is selling the Airpods alongside the $129 second-generation Airpods and the $249 Airpods Pro. Chips in the earbuds will provide an Adaptive EQ feature powered by computational audio. Apple says they're designed to sit at "just the right angle" for comfort and noise-proofing. Apple's new Airpods support spatial audio with dynamic head tracking and voice 6

activation for FaceTime calls. There's a force sensor built into the stem for physical control over media playback and Siri activation. The wireless earbuds are resistant to sweat and water with an IPX4 rating.

3. SWOT Analysis A SWOT analysis summarizes the key issues from the business environment and the strategic capability of an organization that are most likely to impact on strategy development (Johnson, Scholes, and Whittington 2008).

3.1. Strength 

Strong brand portfolio: Apple has a strong brand portfolio, it is a worldwide recognized brand which, according to reports, is the third most valuable brand in 2020. Apple's brand worth has climbed to $612 billion for the seventh year in a row, according to Interbrand. Forbes named Apple the most valuable brand in the world, claiming that it is worth twice as much as Microsoft.

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Innovative: Apple's primary competency is innovation, which offers the business a competitive advantage over its competitors. Apple was the first to introduce some of the most ground-breaking innovations that have changed the course of history (iPhones, iPads, MacBook Air). Apple's designs, operating systems, and hardware are constantly cuttingedge. To keep its customers satisfied, every year, their new products improve on their predecessors in terms of design, usefulness, and ease of use. It's one of the reasons why, despite their exorbitant pricing, their brand manages to grab the market. Apple's effort does not cease when a final product is released. "As soon as a product is released, we start thinking about the next one."

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Quality: Apple has been focusing on manufacturing high-quality products, which has boosted their brand loyalty with 87% brand loyalty in the United States and Europe alone. 7

Both Apple's design and the technology it utilizes are the foundation for its excellent brand equity. Brands frequently believe that technical development and technological excellence are synonymous with the use of complicated technology and the completion of complex tasks with it. Apple gives you an excellent illustration of how technology can be utilized to make things easier. 

Services: Apple has been successful in creating their own ecosystem because of the introduction of numerous new services. Apple TV+, Apple Music, iTunes, Apple Card, and Apple Arcade are just a few of the new and improved offerings. As a result, Apple continues to improve its service facilities to maintain and attract new consumers. Apple's services portfolio accounts for 17.7% of the company's yearly revenue. It is a strength to be able to continually reinvent your product line.

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Marketing Strategy: Apple has long been regarded as the Master of Advertising and marketing. Apple builds anticipation for forthcoming products before they are released. Its public relations and marketing are so effective that it develops a word-of-mouth approach to raise brand recognition and improve product demand.

3.2 Weakness 

High Price: Apple's biggest weakness is its astronomically high costs to appeal to people in the middle and higher classes. Apple's expensive price approach keeps its products, notably its iPhones, out of reach for the average population. Buyers can readily discover equivalent products at a lesser price from other companies making Apple's high-priced products vulnerable. The pricing is consistently greater than those of other well-known companies like Samsung, Xiaomi, and others.

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Small Distribution Line: Apple Inc. has a small distribution network and there are just a few official stores across the world, unlike other smartphone products that can be purchased by just stepping into a phone store. It also increases the difficulty of obtaining 8

after-sale services, as only Apple stores can be trusted to offer quality servicing for their products. 

Incompatibility: People have found it difficult to move to iOS-based devices due to the incompatibility of their operating systems with other software and third-party devices. When you buy an Apple product, you enter the Apple universe and must remain loyal to them. As for the incompatibility of software, Apple is trying hard to make more apps and programs native to their operating systems. However, in terms of gaming, especially on MacBook, Apple still has a long way to go.

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Technical Issues: Specific versions of the iPhone and operating systems had obvious defects, which hurt product sales and the company's reputation for high-quality products. For example, the iPhone X has always been receiving a lot of complaints for a myriad of technical issues.

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Limited Product Line: The product portfolio of Apple is highly limited. For the past years, the business has been releasing lots of same-looking iPhones which didn't go too far ...