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Serial Topic
Number
3 Organizational Structure
4 Coorprate Affairs
5 Fact File
6 Store Format
7 Marketing Mix
8 Service Mix
9 Financial Performance
10 SWOT analysis
Serial Number Topic
11 Competitors
13 Awards
14 Customer Loyalty
15 Troubles Faced
17 Sourcing Strategy
18 Solution
19 Conclusion
20 Reference
Apple Inc. is an American multinational
technology company that specializes in
customer electronics, software program
and online services headquartered in
California, United States. Apple is the
largest technology company by revenue
and as of May 2022, it is the world's
second biggest company by market
capitalization. It is one of the Big Five American information technology
companies, alongside Alphabet, Amazon, Meta, and Microsoft.
The company's main business segments are the iPhone, Services, Mac, iPad, as
well as its Wearables, Home, and
Accessories unit. Apple continues to
make aggressive efforts to transform
itself into one of the world's leading
providers of digital services.
Apple earns first place in laptop
customer support ranking with 91/100
score, 6-minute avg. call time. Apple
has earned another first place ranking
for its laptop customer service when
compared to other tech
History And Mission Statement
According to the Economist, Steve Jobs' mission statement for Apple in 1980
was: “To make a contribution to the world by making tools for the mind that
advance humankind. Apple Inc.’s mission statement and vision statement
define global market success strategies, pointing to the company as one of the
world’s most valuable businesses. Established in 1976, the company is a
symbol of innovation and elegance in design. This condition supports the
brand, which is one of the major business strengths identified in the SWOT
analysis of Apple Inc. The company’s corporate mission and vision statements
motivate employees to support and contribute to innovation for competitive
advantage. Apple Inc.’s generic strategy and intensive growth strategies define
such competitive advantage, especially to counteract the effects of
competitors like Samsung, Google, Amazon, IBM, Dell, Lenovo, Sony, and
PayPal. Apple has changed its corporate vision and mission statements over
time to reflect changes in the company from the time of Steve Jobs to the
current leadership of Tim Cook. The vision statement and mission statement
now represent the company’s efforts in addressing business opportunities in
the computer technology, consumer electronics, cloud computing, digital
content distribution services, and
semiconductors industries. Apple’s corporate
mission is “to bring the best personal
computing products and support to students,
educators, designers, scientists, engineers,
businesspersons and consumers in over 140
countries around the world.” This mission
statement considers the changing business landscape that influences the
possibilities of what Apple Inc. can do. For instance, the company recognizes
trends in the consumer electronics market and the industry environment.
Apple’s press releases and official statements point to this corporate mission
as a way of addressing current concerns in the global market.
Apple Inc.’s corporate vision is “to make the best products on earth, and to
leave the world better than we found it.” Similarly, the company’s Vice
President for Environment, Policy and Social Initiatives, Lisa Jackson, stated,
“We aim to create not just the best products in the world, but the best
products for the world.” Thus, the corporate vision statement aligns with
Apple’s corporate social responsibility strategy, and puts emphasis on
sustainability, environmental conservation, and the ecological impact of the
business, in addition to effects on consumers.
ORGANIZATIONAL STRUCTURE
Its boxy, glass-paneled design, and its airy, minimalistic look and feel,
combined with modern-looking furniture, offer some clues as to what might
have inspired the design. The company is calling it an “Experience of the
Future” store, a format that inspired 4,500
store renovations last year, and it plans to grow
the concept. Other retailers are drawing
inspiration from Apple’s store model. Apple has
built a retail template other stores can borrow
from: neat minimal stores with personalized
service and experiences, including events and
classes. It’s become the default setting for
store design makeovers. In November 2010, Tesla hired Apple’s former vp of
real estate George Blankenship, who worked at Microsoft for a year prior (he
left Tesla in 2013). “When the Tesla showroom first opened, I interviewed the
head of retail for Tesla, a former Apple retail guy,” said Carmine Gallo, an
author who has been studying Apple’s retail model for more than a decade. “I
said, ‘This does remind me of an Apple store.’ He leaned over and said, ‘This is
an Apple Store — we just sell cars.'” It’s not only Silicon Valley brands
borrowing from Apple. The list of retailers adding elements of Apple’s model
keeps expanding and now includes brands like Samsung, AT&T and Verizon, as
well as big-box retailers like Kohl’s and Walmart, which rolled out Apple-style
associate-assisted checkout around last year’s holiday season. Digital-first
beauty brand Glossier, which has stores in New York, Los Angeles and Miami,
models its stores as experiential product showrooms, with products neatly laid
out in uncluttered open spaces designed for discovery, with careful
consideration to lighting and presentation.
PRODUCT MIX
PLACE OR DISTRIBUTION IN
APPLE INC.
’S MARKETING MIX
PLACE OR DISTRIBUTION IN APPLE
INC.’sMARKETING MIX
full ecosystem to connect all their products and services. Apple has 510 stores
worldwide but also sells its products through third-party sellers and carrier
providers. Apple is able to generate huge amounts of sales through direct and
indirect distribution channels worldwide.
Apple designs its products in California, but the rest of the product is process
throughout the world. There are many complicated parts to Apple’s products,
and it would be difficult for one manufacturer to make them all so Apple has to
work with multiple manufacturers throughout the world. Components are
made all over the world by specialist of each part and sent to two main
assemblers in China to manufacture the final product, Foxconn and Pegatron.
This drastically reduces cost of goods for Apple due to the cheaper labor in
China. Products are then sent all over the world to its consumers through
different distribution channels.
Apple’s direct distribution channel includes their physical stores and their
online store. Apple physical stores allows them to really control their brand
image and customer perception of them. All their stores worldwide have the
same clean white design with a high employee to customer ratio. This creates a
really strong brand image in consumers’ minds as they are seeing the same
design everywhere they go. They also often open their stores in high traffic
locations to get as much exposure as possible. Apple also sells directly through
their website. Their website can be access from all parts of the world and offer
a huge range of languages.
However, even though Apple puts a lot of effort into their physical stores, a
large part of their sales and revenue comes from indirect distribution channels.
In 2018, Apple reported that 29% of their net sales came from direct channels
and 71% came from indirect channels. Consumers can buy Apple products
from third-party sellers and carrier providers. This includes stores like BestBuy,
Walmart, and Target as they are easily accessible and might offer discounts.
Apple creates a good brand image through their physical stores and sells their
product through third-party companies.
APPLE’S PRICES AND PRICING STRATEGIES
To set a competitive pricing strategy, a company must set the initial price and
then implement a well thought out plan to chance prices in the future. The
pricing of a product usually stems from the following three factors:
➢ Fixed costs such as the cost for raw materials
➢ Variable costs such as sales tax import and export duties
➢ The profit that the company makes
Apple is a well-known household name today and most all households own at
least one Apple device. In 2013, Apple’s CEO Tim Cook told Bloomberg
Businessweek, “We never had an objective to sell a low-cost phone. Our
primary objective is to sell a great phone and provide a great experience, and
we figured out a way to do it at a lower cost.”
Steve Job’s original strategy for apple was founded on the following four
principles:
✓ Offer a small number of products
✓ Focus on the high end
✓ Give priority to profits over market share
✓ Create a halo effect that makes people eager for new Apple products
Apple’s pricing strategy relies on
product differentiation, which
focuses on making products
unique and attractive to its
consumer base. Apple has been
successful at differentiation and
thus creating demand for its
products. This combined with
their brand loyalty, allows the
company to have power over their pricing. By establishing the loyal customer
base and keeping their prices high, Apple has set up an artificial barrier to
entry for their competitors. Apple utilizes a minimum advertised price, or MAP,
retail strategy. This strategy prevents retailers from pricing their Apple
products below the MAP. By ensuring the price for Apple products never drop
below a specific price, Apple can maintain their product popularity. This
enables Apple to keep its distribution channels clear while ensuring their
profits don’t see a decrease. This all lends hand to keeping Steve Job’s original
strategy in place, which was creating premier products that sell for premium
prices.
SERVICE MIX
Apple disclosed serious security vulnerabilities for iPhones, iPads and Macs
that could potentially allow attackers to take complete control of these
devices. Apple released two security reports about the issue on Wednesday,
although they didn’t receive wide attention outside of tech publications.
Apple’s explanation of the vulnerability means a hacker could get “full admin
access” to the device. That would allow intruders to impersonate the device’s
owner and subsequently run any software in their name, said Rachel Tobac,
CEO of Social Proof Security. Security experts have advised users to update
affected devices - the iPhone6S and later models, several models of the iPad,
including the 5th generation and later, all iPad Pro models and the iPad Air 2,
and Mac computers running MacOS Monterey. The flaw also affects some iPod
models. Security researcher Will Strafach said he had seen no technical
analysis of the vulnerabilities that Apple has just patched. The company has
previously acknowledged similarly serious flaws and, in what Strafach
estimated to be perhaps a dozen occasions, has noted that it was aware of
reports that such security holes had being exploited
PROMOTION
Apples promotion mix of its marketing strategy is something to behold. On first analysis it
seems so effortless and easy. Apple seem to make no attempt at all to promote their
products. It’s like it is all done for them. Or is this subtle strategy exactly what they are
aiming to achieve. What Apple do so great is that they promote their brand through the
values it holds. Apples advertisements have changed over the years to adapt to customer
needs, new technology and the advancements of its competitors. Apple has always
managed to stay ahead of its competitors through the creative promotion of its products
and an ability to articulate its products in just the right manner to separate it from the
crowd and create a huge following. Keep an eye out for how Apple promotes its products in
the future
PLACE
The Company’s customers are primarily in the consumer, SMB, education, enterprise, and
government markets. The Company sells its products and resells third-party products in
most of its major markets directly to consumers and SMBs through its retail and online
stores and its direct sales force. The Company also employs a variety of indirect distribution
channels, such as third-party cellular network carriers, wholesalers, retailers, and value-
added resellers. The Company’s net sales through its direct and indirect distribution
channels accounted for 30% and 70%, respectively, of total net sales.
The Company believes that sales of its innovative and differentiated products are enhanced
by knowledgeable salespersons who can convey the value of the hardware and software
integration and demonstrate the unique solutions that are available on its products. The
Company further believes providing direct contact with its targeted customers is an
effective way to demonstrate the advantages of its products over those of its competitors
and providing a high-quality sales and after-sales support experience is critical to attracting
new and retaining existing customers.
PROCESS
After the iPhone rolls off the assembly line, it is placed in a sleek white fiberboard box,
wrapped and put on a wooden pallet, and then wheeled out to waiting trucks.
As the final point of assembly for the iPhone, China also serves as a starting point for Apple’s
global tax strategy. In Zhengzhou, often in the customs facility, Foxconn sells the completed
iPhones to Apple, which in turn resells them to Apple affiliates around the world.
PHYSICAL EVIDENCE
BUILDINGS
Apple are renowned for their modern, professional
looking stores. They
often have a large glass frontage with bright lighting
inside the store. The
stores are designed to feel welcoming to the
customer with many
products widely available on display that the
customer can test or try out.
Stores are located throughout the world and are often located in major
cities Their logo takes prime position at the front of every store to make
them instantly recognisable to the customer.
WEBSITE
The black background on the homepage makes the
photographed product
stand out. The text used is bold and simple.The
Apple website is modern
and elegant. It is easy to navigate and products are
easy to find. Every
product is beautifully photographed and shows the
product in maximum
detail. There is a support tab in the navigation bar which allows the
customer to connect with Apple Support and find handy guides on how to
use their products.
FINANCIAL ANALYSIS
Apple is one of the most influential and recognisable brands in the world, responsible for
the rise of the smartphone with the iPhone. Valued at over $2 trillion in 2021, it is also the
most valuable technology company in the world.
Jobs resigned from Apple in 1985 and the company saw a gradual decline over the 1990s, as
it struggled to compete with Microsoft on software and Windows manufacturers on
hardware sales
SWOT ANALYSIS
COMPETITORS
Developing solutions to global challenges is never an easy journey, and it isn’t one that can
be undertaken alone. In a year like no other, Apple has continued to work with a global
network of colleagues, companies, and advocates to further our efforts to make our
environmental work a force for good in people’s lives—and give the communities most
impacted by climate change a seat at the table. As a result, this has been a year of progress
powered by collaboration. As a company, we moved ahead with greater urgency than ever
before to create a stronger, healthier future for our planet and her people. In 2020, that
meant real progress in our fight against climate change. Apple became carbon neutral for
our worldwide operations, and we committed to becoming carbon neutral by 2030 for our
entire footprint—from our supply chain to the use of the products we make. Those same
products now use more recycled materials than ever, like the 40 percent recycled content in
the MacBook Air with Retina display, and the 99 percent recycled tungsten we now use in
iPhone 12 and Apple WatchSeries 6. There’s an old saying that if you want to go fast, go
alone. If you want to go far, go together. Well this year we did both, setting ambitious goals
for Apple while helping more than 100 of our suppliers commit to joining our journey to
being carbon neutral. That progress was powered by our new renewable energy projects
spanning the globe—from an award-winning, 80-acre solar project in Reno, Nevada, to two
of the world’s largest onshore wind turbines in Denmark. While we helped bring more than
4 gigawatts of renewable
energy online, we doubled
down on our efforts to
remove carbon from the
atmosphere. That included
an innovative new
partnership with
Conservation International
and Goldman Sachs called
the Restore Fund to invest in
working forests, revitalizing
ecosystems with the goal of
removing 1 million metric
tonnes of carbon every year. Science drives our environmental strategy. Our ambitions—
including our commitment to carbon neutrality by 2030—are defined by data. And so are
the three pillars of our strategy: climate change, resources, and smarter chemistry. Our
comprehensive carbon footprint informs the work we do to address our climate impact,
including our roadmap to carbon neutrality. Within our resources pillar, data on
environmental, social, and supply impacts prioritize materials we transition to recycled and
renewable sources. And a detailed process of data collection and chemical assessments
drives our smarter chemistry innovations. All the work we do aims to improve
environmental health, not just for our customers, suppliers, and employees, but also for
broader global communities. Climate change is one of the greatest threats of our time,
putting at risk people’s access to clean air, adequate food, safe drinking water, and
sanitation. This means the impact of the changes we make—improving energy efficiency
and transitioning to renewable energy across our supply chain—extends beyond our
factories, stores, and offices to benefit those who live in the communities where we
operate. The future success of our company depends on taking urgent and decisive action.
For years, we have increased energy efficiency and the use of renewable energy, yet we
know we have to do more. That’s why last year, we unveiled our most ambitiou plan to
date: to achieve carbon neutrality for the entire life cycle of our products by 2030. This goal
places us 20 years ahead of the recommendations put forward by the Intergovernmental
Panel on Climate Change (the United Nations body for assessing the science related to
climate change) calling for carbon neutrality as a planet by 2050. The science is clear: Our
world cannot waitfor an inclusive, carbon neutral economy. Every business has are
responsibility to create a meaningful plan to reduce its emissions.
AWARDS
Apple won 1 award in 2022 and 8 awards in 2021. In 2022, Apple won for Best Places to
Work in the Bay Area 2022. In 2021, Apple won for Best CEO 2021, Best Company Perks &
Benefits, Best CEOs for Women 2021, Best Product & Design Team 2021, Best Engineering
Team 2021, Apple won 1 award in 2022 and 8 awards in 2021. In 2022, Apple won for Best
Places to Work in the Bay Area 2022. In 2021, Apple won for Best CEO 2021, Best Company
Perks & Benefits, Best CEOs for Women 2021, Best Product & Design Team 2021, Best
Engineering Team 2021, Best Places to Work in the Bay Area 2021, Best Global Culture 2021
and Best Company Outlook 2021. Based on 24,143 ratings and 2,113 participants,
employees at Apple are satisfied with their work experience. The overall culture score,
73/100 or B+, incorporates employee ratings based on their feedback on the Overall
Culture, Team, Retention and more
CUSTOMER LOYALTY
A vast majority of Apple's iPhone customers stick with the platform, with the company
estimated to have curated the highest brand loyalty out of any smartphone manufacturer
operating in the U.S., according to a new study released this week.
According to a report from research group CIRP, Apple maintained a loyalty rate of more
than 90% for the past three years. The calculation was based on the percent of new iPhone
customers who upgraded from a previous iPhone model.
https://apple.fandom.com/wiki/List_of_Apple_products
https://www.apple.com/ae/shop/accessories/all
https://en.wikipedia.org/wiki/Timeline_of_Apple_Inc._products
https://techorganism.com/apple-products/
https://techdracula.com/list-of-apple-products-services-price/
https://www.apple.com/newsroom/2022/06/apple-announces-winners-of-
the-2022-apple-design-awards/