Question: 1) What do you think was the main reason for Iphone’s

Success in America?
The main reasons for iphone success in America are based on these five points.
A) Word of mouth marketing, B) Campaign on television, C) Advanced features,
D) Flexibility, E) Celebrity marketing,

A) Word of mouth marketing: Word of mouth marketing (WOMM), also called word of mouth
advertising, is creating hype through local identity all over the America, which is one of the successful plan
done by apple company for the iphone. Iphone generated a lot of excitement among customers by slowing
releasing details about the product to create a suspense among the people so that people or Consumers are
very much excited to buy the iphone , for this case most of the hype was created by this marketing strategy.

B) Campaign on television: The apple company took an initiative to launch the iphone campaign on
television that had a “HELLO” tagline and that campaign was launched in June Followed by the company
Logo.

C) Advanced features: in 2007 Apple, inc’s was the beginner in this market industry, so they had to create
a phone which was helps them to stay and stable in this market, for this case Apple,inc’s introduce the world
there new phone called iphone and as well as about the new features in iphone was : i) Multi touch screen,
ii) High memory capacity, iii) WI-FI System, iv) Screen size 3.5 inch ,etc made iphone as a revolutionary
phone, because of their advanced features that made a district image in consumers mind rather than their
competitors.

D) Flexibility: Apple not only provided a product to the customers but also they gave solution of using the
phone to enjoy all the features. Apple also announced some service plan along with AT and T which include
unlimited data , direct internet access along with voice mail and host of other goodies, this plan gives
customers the flexibility to use the phone and get the experience all over the revolutionary features of
Iphone.

E) Celebrity marketing: Apple.inc’s used another marketing strategy which was celebrity marketing so
that, people who followed or loved those actors, such as popular actors on that time was will Ferrell,
Cameron Diaz, Sarah jesica parker, etc. (EX: when consumers saw that his / her favorite celebrity using this
iphone, the (consumer) he or she will like to buy this iphone). For this case Celebrity marketing was worked
as influencing marketing.

Case 502: Apple inc’.s Iphone Maintain its initial momentum. Submitted To Page 1
Guest Faculty in Southeast University & Assistant Professor in Dhaka University.(Md.Ashraf Harun)
Question: 2) with tough competition from Nokia, htc, and
blackberry do you think iphone is as successful in Europe as in
America? If not, why not?
I think iphone is not successful in Europe as in America- It was as successful in the
beginning. First problem, sharing of revenues with handset manufactures was non-existent in
Europe. Tied up produce was against the law.

The strategy of tying up with a single operator would not work in Europe as the European
customers were accustomed to using any phone with any network operator of their choice.

The main reasons Iphone's not as successful in Europe

 High price
 Lack of 3G capability
 Carrier exclusivity
 Entering the market too late

Case 502: Apple inc’.s Iphone Maintain its initial momentum. Submitted To Page 2
Guest Faculty in Southeast University & Assistant Professor in Dhaka University.(Md.Ashraf Harun)
Question: 3) Could you help apple to formulate a strategy and a
marketing plan for Europe?
Answer: When Apple launched its iphone in the European market, initially it faced some
problems. In England iphone succeeded pretty well, and moderate success in France but in
Germany the scenario was completely different. It was dismal despite it being a bigger market than
France or England.

The Strategy for Apple in Europe market is as followed:

I. Apple could choose every local network to sell iPhone. There would be no unlocking iPhones in the

market.

II. Apple could reduce price by cut the third party distributor & the commission price would be save.

III. Apple could go direct selling. Then the price of the iphone would be reducing.

IV. Apple could launch the 3G version of iphone in Europe, because the competitors had already

launched 3G technology. So if Apple launched with 3G there must be possibility to capture the

market of Europe.

V. Apple could choose the prepaid network rather than the postpaid. Contract selling would be avoided

from the beginning in Europe.

VI. Apple could launch software that would disable unlocking of iphone.

Apple firstly could follow holistic marketing concept for the Europe, because in Europe they are very much

concern about environment. If Apple notice about the harmful material Polyvinyl Chloride and Brominates

before launch in Europe market it would be positive from very beginning.

Case 502: Apple inc’.s Iphone Maintain its initial momentum. Submitted To Page 3
Guest Faculty in Southeast University & Assistant Professor in Dhaka University.(Md.Ashraf Harun)
Question: 04) Do you think Apple's pricing policy is helping it to
achieve market shares? Was dropping the price a good strategy?

Answer:

 Yes, I think Apple’s pricing policy is helping it to achieve market share. When Apple
introduced the iphone in the market, the iphone was launched with such frenzy that even its
premium price did not prove a deterrent to many consumers. Apple had a 50% margin on its
iphone.
 Yes, the price dropping was a very good strategy. The price drop which was almost one-third of
the original price of the product, took most by surprise. After the price cut, the sale of iphone
had gone up from 9,000 units per day to almost 27,000 units per day.

By the end of September 2007, the company had amassed sale of 1,389,000 units compared to
the estimated sale 750,000 units at the initial price. Though Apple faced some difficulties for
price dropping but they managed it nicely.
They published a public apology on the company’s official website and offered a credit of $100
to all the customers who bought at the introductory price.

 Initial high pricing and sudden dropping of the price of iphone by Apple was a smart strategy
since it helped it earn high profits from its early customers and helped to achieve market share.

Case 502: Apple inc’.s Iphone Maintain its initial momentum. Submitted To Page 4
Guest Faculty in Southeast University & Assistant Professor in Dhaka University.(Md.Ashraf Harun)