Apple Ipad Marketing Strategy

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Executive Summary

To survive in the global and competitive business environment, it is essential for a company’s to
conduct extensive research so that they can develop a strong brand image from the initial stage as
it leads to greater financial benefits for the company. The marketing plan of Apple’s iPad is the
topic where an effective marketing strategy is developed to ensure its success in the global
competitive market where major plays such as Sony, Compaq and Dell have a significant impact
upon Apple’s strategies. Apple’s latest ipad is the revolutionary product which is a portable mini
device used as a pc anywhere with its wide range of options and innovative design.

Apple’s marketing strategy will be focusing upon the product design, brand positioning, price and
promotion of iPad in the global market. This will be linked to the research and analysis of the
environmental forces and SWOT analysis to understand the company’s position. Apple’s market
strategy will be incorporated with the generic business strategy which is towards growth and
maintaining a strong position in the market through its innovative products. Apple will use
competitive marketing strategy for its iPad where two such strategies can be developed which are
differentiation and Focus to make iPad a success in the global market. Marketing planning and
strategies can become highly effective if Apple focuses upon its strategic human resource
management and make continuous efforts to redesign its marketing plan to survive successfully.

Company Description

Apple Corporation is a highly successful organization that aims to advance in the technology
field through its high quality and innovative products. The success of Apple is primarily based
upon its innovation and dynamic technological advancement it takes to give its customers the
ease and luxury to use its products. Apple’s latest product iPad is launched to compete with
existing computers and tablet technology, as it is a portable high tech device for the usage of all
needs of an individual whether personal or business use.

Environmental Analysis/PEST Analysis

This analysis will help in identifying the factors that affect the organization’s ability to perform
efficiently in the global markets.

Political Forces:

The political factors affect the organization’s ability to operate efficiently in foreign markets.
Therefore, Apple’s operations are affected by political conditions of developing countries in Asia
where it is unable to meet its organizational targets successfully. The increasing suicide bomb
rate and terrorism is another reason that limits the ability of Nestle to operate in some countries.
Moreover, the changing legal requirements regarding the sales tax, import and export duties also
affect Apple in terms of its rising costs and limitation to have access to a greater market.

Economical Forces:
Economical factors affect organization’s ability to expand its business and achieve organizational
objective of growth. The recent recession has slowed down economic activity and resulted in
increase of prices of law materials, which have increase the costs and ultimately the prices of
products. Apple faces low demand due to the big economies collapsing and going under
stabilization phase, which has forced countries to boost their economy by discouraging imports
and encouraging exports (Ball, McCulloch, Frantz & Minor, 2006).

Socio-Cultural Forces:

In today’s business enjoinment, people belonging to different backgrounds, experiences, values


and cultures work together in multinational organizations with common objectives of gaining
success in competitive global markets. Therefore, this creates a critical challenge for
organizations to help employees develop positive and interpersonal relationships so that all
people can work productively while respecting other’s culture and backgrounds. Apple has
focused upon the cultural values of its employees as well as customers to achieve positive long-
term relationships through maintaining an organizational culture which is highly flexible and
culturally diverse.

Technological Forces:

Apple concentrates on the technological advancements of its work operations. The highly
competitive and global business environment has forced organizations like Apple to become
highly efficient through technology and internet revolution. Apple focuses upon innovation
which can be achieved by meeting the new technological advancements and by being efficient in
providing better quality and innovative products to its customers through advanced technology
(Turban, 2004).

SWOT Analysis

The SWOT analysis assists organizations to identify the strengths and weaknesses of an
organization which are internal and opportunities and threats which are external. This will help in
understanding how Apple can utilize its strengths and opportunities and overcome its threats and
weaknesses to survive in the global competitive market.

Strengths:

Apple is a successful organization and its iPod has a high market share in the global market due
to its brand perception and image as s high quality innovative brand. Moreover, in the I.T
industry, Apple holds a strong position by catering to the needs of the dynamic market with its
extensive research and developments that enables it to satisfy its customers with highly
innovative products. Apple has maintained its brand name in the global market and the customer
loyalty is increasing at a high rate (Barnet & Cavanagh, 2006).

Weaknesses:
Apple provides highly innovative products in the market but it is having issues with the quality of
its products as recently the Apple iPad was reported to have a faulty screen and it had replace all
those products. This is one major weakness of Apple’s products. Moreover, the company has a
relatively weaker research and development system as compared to other major competitors and
needs to put more emphasis on building strong reliable products as its brand name portrays
(Borrington & Stimpson, 2004).

Opportunities:

Apple has many opportunities for growth and expanding its range of products and services. It can
develop iTunes and music player technology into cell phones and iPad devices. It can focus upon
developing Podcasts for radio shows through internet and can enhance its iPad into more
sophisticated and reliable device to be used by every individual. The I.T industry is full of rapid
and dynamic changes and there is growing demand for innovative and technologically advanced
products so for Apple, there are unlimited opportunities to avail for growth.

Threats:

The major threat for Apple and its products is the intense rivalry among competition in the
technology industry. The competitive global environment has brought critical challenges for
Apple to maintain a competitive and strong position in the global market. Moreover, Apple’s
iPod and iPad are subjected to demand which can go down at any time due to saturation and
substitutes in the market. Hence, to meet with changing trends and globalization, Apple requires
extensive research and development to create a diversified range of products to be successful.

Marketing Objectives

The objective of Apple’s iPad device is to capture the market by creating awareness and
persuading customers to use this device. Its emphasis will be entirely upon positioning iPad in the
global market as a highly reliable device which is a need for every individual in today’s busy
hectic life.

The marketing plan of Apple’s iPad should consist of two major objectives that help to achieve
organizational success in today’s global business environment. First of all, Apple focuses upon its
customers through thorough market research and planning then the second step starts by
integrating all organization’s functions which are related to the marketing plan of the
organization. After this, Apple becomes competent in planning and implementing its
organizational core objectives to achieve positive results (Barnet & Cavanagh, 2006).

Marketing Strategy

The marketing plan of Apple iPad is based upon extensive research and planning so that it can
expand its operations worldwide where the marketing strategy aimed to promote the following
key elements to strengthen its brand image. The major brand elements are the superior quality,
friendly usability, design and reliability of the product. It can be promoted as a product that not
only provides an ease to an individual’s life but a reliable cost effective solution to all computer
related problems. The following are the major components of the marketing mix that can help in
understanding the product and how it is to be marketed in the global market.

The marketing growth strategy of Apple mainly aims to provide superior quality and innovative
products and services. This strategy helps in increasing customer loyalty and building a stronger
position in the global competitive markets. Innovation is the success key of Apple. In today’s
highly competitive environment, developing innovative products is a major key towards
achieving success. This requires extensive research and development by the businesses to be
successful. Although, innovation has become a key towards success but it has high financial risk
because the customers can dislike the new invention and it can go into waste (Gannon, 2009).

Product Design:

IPad is the new invention of Apple with extensive Research and Development. It is the latest
technological device which is mini pc device equipped with high compatibility mode and ease of
usage for users. It is a fully equipped device where a user can take pictures, watch movies,
download large amount of data and send/receive emails, attachments and documents. It is
designed for personal and business usage where a user can be highly digitized and connected to
the world within seconds with no hassle. Ipad is the new revolution introduced by Apple to
provide ultimate user friendliness and access to all technological advancements together in one
mini device (Hall & Jones, 2000).

Brand Positioning:

Initially, Apple’s iPad target market can be the professionals and businessmen who require
portable easy accessible devise for their usage. And then, young customers comprising of
students will be targeted through emphasizing upon its innovative and trendy design that provides
unlimited options will start gaining popularity and acceptance in the global market then it can
expand and broaden its market segments by satisfying a larger market segment by positioning
iPad as a need for every individual.

Promotion:

Apple’s iPad promotional strategy will mainly focus upon word of mouth advertising and point
of purchase strategy where consumers will be encouraged to discover and try out the product
themselves. Apple’s latest iPad requires extensive marketing through television and other media
sources to achieve high customer response. Television is an effective medium of advertisement
ad Apple’s advertisement has given it more importance and this industry is flourishing through
these innovative ads.

Price:

Apple’s iPad will be charged at a premium price from the start to show and prove that it is a
superior quality and innovative device than any other available in the market. As it is an
innovative product, it will be promoted in the market as a premium priced device that has value
for the benefits it provides. This way the consumers will consider Apple’s iPad as a highly
reliable and portable pc device that can make their life faster and efficient in terms of both work
and entertainment which will lead to its brand image strengthening through this marketing
strategy (Borrington & Stimpson, 2004).

Place:

Apple has to focus upon building long term relationships with its suppliers, wholesalers, and
retailers worldwide because this way its supply chain management can become highly efficient.
As the economic activity has slowed down, it resulted in increase in the prices of oil, which has
ultimately increased the costs of production for Apple and reducing its cost effectiveness. Also,
the concept of E-commerce has greatly helped Nestle to automate its systems through E-shopping
and E-supply chain management.

Implementation Plan

Now, we can develop an effective competitive marketing strategy where two such strategies can
be developed which are differentiation and Focus to make iPad a success in the global market.

Differentiation:

Apple’s strategy of differentiation has its focus upon producing unique and innovative products
for its customers which are not provided by other competitors in the global markets. The major
success key of Apple is that it offers superior quality and innovative products and services to its
users with prime emphasis upon innovation and design. Therefore, marketers must focus upon
their advertisements that promote these five actors to influence consumer buying decisions. This
will create a buzz in the market and gradually the image as a premium high tech pc device will
strengthen all over the world which will contribute towards its brand equity. The spread of this
innovation will be influenced mainly by its attractiveness, quality, price, promotion and
durability. Customers make high involvement purchase decision for innovative products as it
involves high risks. Moreover, Apple being the first one to enter the market with a highly
innovative device will lead to its strong brand image building in the competitive global market
(Barnet & Cavanagh, 2006).

Focus:

Apple can focus on more than one segments of the market and develop its brand image in these
market segments for its latest iPad. The target segment for iPad will be the upper and higher
middle-income group who want to improve their lifestyle with revolutionary gadgets. Through
this strategy, Apple will be able to focus on its resources and plan towards a selected target
segment for managing it effectively. To survive in global business environment is very
challenging for iPad, therefore conducting thorough market research will help in achieving the
core organizational objectives (Barnet & Cavanagh, 2006).

Evaluation and Control


To meet with the intensified global competition, Apple requires extensive research and planning
for its success in the future. The highly dynamic and uncertain global market brings serious
challenges for Apple’s iPad to survive successfully. The major competitors of Apple such as
Compaq, Sony and Dell Co have forced Apple to focus upon its brand equity in order to maintain
its brand image worldwide. Apple can meet and control the challenges and obstacles arising in its
way of growth through its long-term business strategy where effective marketing plan
emphasizes upon innovation and building customer loyalty (Gannon, 2009).

Firstly, focusing upon the Strategic human resource management, Apple can create a competitive
advantage that is not imitable by its competitors. As Apple is known for its quality and
innovation as the first energy drank, it has captured a very large customer base as compared to its
competitors but to maintain this customer base or increase the number, it must focus upon
developing sustainable competitive advantage through its human resource which ultimately leads
to excellent customer relationships.

Secondly, the 4 Ps of marketing also require changes and continuous improvements to survive in
today’s highly global business environment. The marketing campaigns can emphasis upon the
design and reliability of the iPad in future to make the most reliable functioning device in the
market. This will strengthen the brand equity as well as help in surviving successfully in the
competitive global market. The positioning of Apple can be altered according to the market
trends, the children and teenagers can be the target for iPad in future (Sana & Shah, 2008).

Works Cited

Ball D.A, McCulloch.H, Frantz .L & Minor.M.S., International Business (10th Ed),
“International Marketing”, McGraw Hill, 2006.pp 425-577

Borrington.K & Stimpson.P., Business Studies (2nd ed.), “Marketing”, 2004 pp.165-188

Barnet, R & Cavanagh, J, ,”Global dreams: Imperial corporations and the new world order,
Journal of Economics”, 2006 Available from www.faculty.umb.edu/david_levy/CSR2007.pdf.

Gannon. M.J,”Understanding Global Cultures: Metaphorical Journeys Through 28 Nations,


Clusters of Nations, and Continents”, 2009.pp. 12-32

Hall.D & Jones. R., Business Studies (2nd ed.), “Marketing Mix”, 2000. pp.36-54

Hsu &Tsuen.H., “Gaining a Competitive Advantage Through the Refinement of Measuring


Consumer Involvement”, 2000.pp2-9

Schein, E.H., “Marketing Management”. The Jossey-Bass Business & Management Series, 2000

Sana.S.R.& Shah.A. 2008, “The Challenges of Globalization and the Role of Human
Resources”.Pp.1-6

Turban.E, Electronic Commerce- “A managerial perspective” (2nd ed), 2000 Prenhall, pp.22-96

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