Project Report

On
Apple Inc.
M.Com 4th Semester- Marketing Management
(Session 2020-21)

The Bhopal School Of Social Science

Submitted To Submitted By
Dr. Amrita Sahu Saloni Maheshwari
Associate Professor 19103044
Department of Commerce
 CERTIFICATE FROM THE PROJECT GUIDE

This is to certify that the Project Report titled Sales “Marketing analysis of APPle inc industries
is a bonafide work of Saloni Maheshwari enrolment number R170190280056
undertaken for the partial fulfillment of Masters in Commerce (M. Com) degree of Barkatullah
University under my guidance. This project work is original and has not been submitted earlier
for the award of any degree or diploma of any other University or Institution.

Signature of the Guide

Dr. Amrita Sahu

Associate Professor

Department of Commerce,

BSSS, Bhopal
 DECLARATION

I Saloni Maheshwari Daughter of Mahesh Kumar Maheshwari certify that the project
report entitled on Marketing analysis of Apple Inc industries, Sales marketing analysis report
on Apple inc industries prepared by me is my personal and is authentic work under the
guidance of Dr. Amrita Sahu, Associate Professor, Department of Commerce.

Date: 15/06/2021 Signature of the Student

Place: BHOPAL Name: Saloni maheshwari

Class: M.COM (IV SEMESTER)

Roll Number: 19103044

 Apple Inc.
History of company

Apple formerly Apple Computer, Inc., is a multinational corporation that creates consumer
electronics, personal computers, servers, and computer software, and is a digital distributor of
media content. The company also has a chain of retail stores known as Apple Stores. Apple's
core product lines are the iPhone smartphone, iPad tablet computer, and Macintosh computer
line. Founders Steve Jobs and Steve Wozniak created Apple Computer on April 1, 1976, and
incorporated the company on January 3, 1977, in Cupertino, California.

Current Apple Inc. logo, introduced in 1998, discontinued in 2000, and re-established in 2014

For more than three decades, Apple Computer was predominantly a manufacturer of personal
computers, including the Apple II, Macintosh, and Power Mac lines, but it faced rocky sales
and low market share during the 1990s. Jobs, who had been ousted from the company in 1985,
returned to Apple in 1997 after his company NeXT was bought by Apple. The following year
he became the company's interim CEO which later became permanent Jobs subsequently
instilled a new corporate philosophy of recognizable products and simple design, starting with
the original iMac in 1998.
With the introduction of the successful iPod music player in 2001 and iTunes Music Store in
2003, Apple established itself as a leader in the consumer electronics and media sales
industries, leading it to drop "Computer" from the company's name in 2007. The company is
now also known for its iOS range of smart phone, media player, and tablet computer products
that began with the iPhone, followed by the iPod Touch and then iPad. As of June 30, 2015,
Apple was the largest publicly traded corporation in the world by market capitalization with an
estimated value of US$1 trillion as of August 2, 2018 Apple's worldwide annual revenue in
2010 totalled US$65 billion, growing to US$127.8 billion in 2011 and $156 billion in 2012.

Branches of Apple

Apple Store is a chain of retail stores owned and operated by Apple Inc. The stores sell various
Apple products, including Mac personal computers, iPhone smartphones, iPad tablet
computers, Apple Watch smartwatches, Apple TV digital media players, software, and both
Apple-branded and selected third-party accessories.
Apple Store

Type Subsidiary

Industry • Computer hardware

• Computer software
• Consumer electronics
• Distribution
 Founded May 19, 2001; 20 years ago
Tysons, Virginia, United States

Founder Steve Jobs

Headquarters Cupertino, California, US

Number of locations 511 locations[1]

(270 US/241 overseas)

Key people • Tim Cook (CEO)

• Deirdre O'Brien (SVP: Retail + People)

Products • Mac
• iPhone
• iPad
• Apple Watch
• Apple TV
• Apple & third-party software and accessories

Parent Apple Inc.

Website www.apple.com/retail

The first Apple Stores were originally opened as two locations in May 2001 by then-CEO Steve
Jobs, after years of attempting but failing store-within-a-store concepts. Seeing a need for
improved retail presentation of the company's products, he began an effort in 1997 to revamp
the retail program to get an improved relationship with consumers and hired Ron Johnson in
2000. Jobs re-launched Apple's online store in 1997 and opened the first two physical stores in
2001. The media initially speculated that Apple would fail, but its stores were highly
successful, by passing the sales numbers of competing for nearby stores and within three years
reached US$1 billion in annual sales, becoming the fastest retailer in history to do so. Over the
years, Apple has expanded the number of retail locations and its geographical coverage, with
511 stores across 25 countries worldwide as of May 27, 2021, when the new flagship store at
Via del Corso in Rome opened Strong product sales have placed Apple among the top-tier retail
stores, with sales over $16 billion globally in 2011.
In May 2016, Angela Arendt’s, Apple's then-Senior Vice President of retail, unveiled a
significantly redesigned Apple Store in Union Square, San Francisco, featuring large glass
doors for the entry, open spaces, and rebranded rooms. In addition to purchasing products,
consumers can get advice and help from "Creative Pros" – individuals with specialized
knowledge of creative arts; get product support in a tree-lined Genius Grove; and attend
sessions, conferences, and community events, with Ahrendts commenting that the goal is to
make Apple Stores into "town squares", a place where people naturally meet up and spend
time. The new design will be applied to all Apple Stores worldwide, a process that has seen
stores temporarily relocate or close.
Many Apple Stores are located inside shopping malls, but Apple has built several stand-
alone flagship stores in high-profile locations. It has been granted design patents and received
architectural awards for its stores' designs and construction, specifically for its use of glass
staircases and cubes. The success of Apple Stores has had significant influence over other
consumer electronics retailers, who have lost traffic, control and profits due to perceived higher
quality of service and products at Apple Stores. Apple's notable brand loyalty among
consumers causes long lines of hundreds of people at new Apple Store openings or product
releases. Due to the popularity of the brand, Apple receives many job applications, many of
which come from young workers. Apple Store employees receive above-average pay, are
offered money toward education and health care, and receive product discounts; however, there
are limited or no paths of career advancement. A May 2016 report with an anonymous retail
employee highlighted a hostile work environment with harassment from customers, intense
internal criticism, and a lack of significant bonuses for securing major business contracts.

Products of Apple

Apple Inc. designs, manufactures and markets mobile communication and media devices,
personal computers and portable digital music players. The Company sells a range of related
software, services, accessories, networking solutions, and third-party digital content and
applications. The Company's segments include the Americas, Europe, Greater China, Japan
and Rest of Asia Pacific. The Americas segment includes both North and South America. The
Europe segment includes European countries, India, the Middle East and Africa. The Greater
China segment includes China, Hong Kong and Taiwan. The Rest of Asia Pacific segment
includes Australia and the Asian countries not included in the Company's other operating
segments. Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV,
a portfolio of consumer and professional software applications, iPhone OS (iOS), OS X and
watch OS operating systems, iCloud, Apple Pay and a range of accessory, service and support
offerings.

In 2010, before he became chief executive officer, Apple's Tim Cook said all the company's
gadgets could fit on a table, arguing such focus resulted in better products.

At the time, the company's website offered 14 Apple products. Now, under Cook's leadership,
the line-up has ballooned to 27 products available in more than 200 different versions. The
strategy - a departure from co-founder Steve Jobs' minimalist approach - is helping Apple grow
even as the market for its most-important product, smartphones, stalls.
Products such as the Apple Watch and Air Pod wireless headphones, combined with more
versions of the iPhone and surging sales from a growing variety of software services, drove
revenue growth in the most-recent quarter. That offset weaker-than-expected phone unit sales
and helped Apple's market value top $US800 billion ($1.1 trillion) this week - a first for a US
company.

While Cook's Apple has so far struggled to create new product categories, building out the
existing line-up is adding to investor optimism: Drexel Hamilton analyst Brian White set a
price target for the stock this week that would see Apple valued at more than $US1 trillion.

"There was a concern with the reliance on one product, but they've been able to find ways that
aren't necessarily innovative to continue to sustain growth," said BTIG analyst Walt Piecyk.
The services business supports profit margins "while the company is able to maintain growth
from peripheral products like Air Pods and Watches".

Apple is in a very different position from when Cook made his table top comment at an
investor conference seven years ago. That fiscal year, revenue jumped 52 per cent as
consumers fell over themselves to buy more iPhones. Now, with most developed-world
consumers already using smartphones, and Apple's annual revenue exceeding $US200 billion,
growth is harder to achieve.

Apple's "Other Products" are picking up some of the slack. Sales of gadgets like the Watch,
Air Pods, Beats headphones and Apple TV jumped 31 per cent to $US2.87 billion in the fiscal
second quarter. Cook said on May 2 that Watch sales almost doubled year-over-year, and
compared this appendage of Apple's business to a Fortune 500 company.

The iPad has endured a precipitous three years, with unit sales at about a third of their peak.
The response has been to offer a plethora of different options. There's the iPad Pro, iPad and
iPad Mini 4 in with at least 60 different memory, colour and connectivity options. New versions
of the MacBook Pro unveiled in November meanwhile helped the average price for the laptop
range jump by almost $US130 to $US1392. That boosted Mac revenue growth to 14 per cent
in the most recent quarter, the fastest pace in more than two years.

Apple gets almost two-thirds of its revenue from the iPhone, compared with 39 per cent in
2010. However, those sales come from 58 different iterations of the device now, up from five
flavours in 2010.

And changes in iPhone designs are generating new revenue. While the iPhone 7, introduced in
September, represented a modest upgrade to its predecessor, it included two significant
changes. First, Apple scrapped the 3.5-millimetre headphone jack, an audio staple since the
1950s. Second, the 5.5-inch screen iPhone 7 Plus incorporated an improved dual-camera
system that set it apart from the cheaper 4.7-inch screen model, the first time Apple had
changed anything beyond memory and screen size between the two handsets.
Scrapping the headphone jack encouraged more customers to buy the compatible AirPod
headphones, adding to Apple's Other Products revenue, BTIG's Piecyk said. Offering a dual
camera meanwhile attracted more customers to the larger 7 Plus, helping Apple increase the
average sales price for iPhones. That kept revenue from that line growing slightly.

"This is the first year that we have a unique feature on the 7 Plus that is not in the 7 and
obviously customers are very interested in that feature," chief financial officer Luca Maestri
said in a May 2 interview. "We are seeing more interest in the market for larger displays."

Clever incremental iterations and additions to the hardware portfolio should keep growth
ticking over for the time being, and investors expect the next iPhone will sell well. Longer
term, there's no substitute for entirely new categories, and Apple has yet to deliver a major
automotive innovation, radical new TV experience, or augmented reality products.

While investors wait, the Services business has been the most consistent bright spot over the
past year. Here too, Apple is growing the product palette. In 2010, there was iTunes, the App
Store, Podcasts and iBook’s. Now there's Apple Music, iCloud, Health Kit, Apple Maps and a
dozen more contributing to a virtuous cycle. Every time Apple sells an iPhone to a new
customer, the company secures a potential new services subscriber. Each new sign-up makes
it more likely that a user will again opt for an iPhone when the time comes to upgrade.

Services revenue rose 18 per cent in the recent quarter, and Cook expects the business
will double in size by 2020 from last year's $US24 billion. This could help keep profit
margins high even with the introduction of the iPhone 8, since services revenue is
more profitable.

While hopes are high for iPhone 8 sales, the recent jump in Apple shares was driven
by "greater belief in the company's franchise value," UBS analyst Steven Milunovich
wrote in a recent note titled "Ecosystem Growth Suggests Antifragility".
Objective of analysis

Marketing environment

Apple Inc. has always been producing innovative and ingenious products, which maintains
their position in the external environment. Apple Inc. uses all forms of advertising like
television, Internet, and social networking websites to attract the customers. Apple Company’s
target market consists of all men and women of ages 13 and above.

Mostly Apple Company targets:

1 Teenagers- to socialize with one another

2 College and universities students- to research for their studies

3 Business people – for dealing purpose and presentations for the business

4 Adults- fro every day’s needs to contact others.

5 Kids- to enjoy the spare time playing games.

Where, the Apple Company is advancing the products. The features of new technology
like iPhone 5 and iPhone 5C develops the great interest for consumers and provides them with
component lifestyles.

Component Lifestyle is the practice of choosing goods and services that meet one’s diverse
needs and interests rather than conforming to a single, traditional lifestyle. Component
lifestyles have evolved because consumers can choose from a variety of goods like iPhone,
iPod, MacBook, iPad and many more and many consumers have money to exercise more
options.

The increase in available technology and the proliferation of screen-based technological

devices is having an impact on how Americans spend their time. Apple Company has taken
advantage of this increase. They produce the laptops that are much easier to carry around and
also save time. The iPhone are advanced and have a lot new features as compared to the old
ones.

Demography is the study of people’s vital statistics, such as age, race, and ethnicity, and
location. These factors are significant because the basis of all market is people. For Apple
Company consumer buyer’s behaviour is very much important because if the products and
services provided by them is not satisfying the buyers then there is no point of the strategic
planning of the company.
 Population is divided into different groups that are called Tweens, teens, generation Y,
generation X, and baby boomers.

Apple Company has been successful in introducing the products in each and all of these groups. All
groups are attracted to the new-featured products. Apple company designs and focuses on the desires
and needs that all population will be attracted to regardless to their ages. This is the only reason why
Apple is considered as the top innovative company.

Consumer behaviour

Apple has amassed a brand loyal following like no other brand backed by significant sales,
market share, and profitability.

Marketing using consumer behaviour insight is how Apple succeeds. Even though Steve Jobs
and Apple, did not use consumer research in the initial development of most products,
consumer behaviour plays a huge role in their marketing and ultimately the success of the
company. Once a consumer purchases a product or downloads iTunes Apple has access to data
the company leverages. Apple uses this information to gain significant insight into the
consumer and what drives purchase behaviour.

Apple has amassed a brand loyal following like no other brand backed by significant sales,
market share, and profitability. ... Once a consumer purchases a product or downloads
iTunes Apple has access to data the company leverages.

Consumer behaviour or consumer buying behaviour are all the aspects that affect consumers'
search, selection, and purchase of products. An example of a new trend developing in society
is children's influence on their parents' purchases. ... Kids today are major factors in the
purchase of expensive products

Problems
Climate change, environmental reporting, habitats & resources, pollution and toxics, arms &
military supply, human rights, workers' rights, supply chain management, irresponsible
marketing, anti-social finance, and political activities.

Apple's biggest problem isn't a slow-down in the Chinese economy or the US-China trade war,
which has been blamed for a big downward revision in sales. Its biggest problem is taking
consumers for granted at home and abroad.

Apple product use the App Store to control what software can and can't run on your devices,
based on capricious and political grounds. In terms of control, that's certainly true on iOS but
not true on mac OS, at least not yet.

• Thwarting smaller competitors

• Dishonest corporate policy

• E-waste and environmental destruction

• Financial affairs
• Harsh labour conditions and child labour accusations

• Collaborations with the U.S. government and the NSA

Analysis of consumer behaviour

Have you ever wondered why Apple is so successful? They were not the first company to
invent the personal computer, portable music device, the tablet, the smartphone, software to
download music, or the set-top box to name a few. Apple has amassed a brand loyal following
like no other brand backed by significant sales, market share, and profitability. So, how does
Apple do it? What’s the secret behind their success?

Marketing using consumer behaviour insight is how Apple succeeds. Even though Steve Jobs
and Apple, did not use consumer research in the initial development of most products,
consumer behaviour plays a huge role in their marketing and ultimately the success of the
company. Once a consumer purchases a product or downloads iTunes Apple has access to data
the company leverages. Apple uses this information to gain significant insight into the
consumer and what drives purchase behaviour.
The Wheel of Consumer Analysis

Understanding concepts of consumer behaviour at a high-level involves a framework to gain

actionable insight from consumer research. The wheel of consumer analysis provides a
framework to study consumer behaviour consisting of:

Affect and cognition

Consumer behaviour

Consumer environment

Research focused on the consumer provides specific insight involving affect and cognition,
consumer behaviour, and the consumer environment that the company can use to reach its
target audience effectively guiding the knowledge structure and decision process of the
consumer.

Now let’s discuss the three areas of the framework.

Affect
In psychology, the affective system is defined as the way individuals respond to outside stimuli.
The affective system in an individual is purely reactive and includes moods, emotions, and any
other special feelings that may ignite a physical reaction. According to Peter and
Olson, “Because it can account for many of the responses that environmental stimuli elicit from
individuals, classical conditioning has important implications for marketing and consumer
behaviour”.

Apple and Affect

For example, the brand assets especially the brand logo changed in 1998 is sleek and modern
chrome color (monochromatic) aligned with the direction that Steve Jobs had for the company
upon his return in 1997. The new logo repositioned the brand effectively for a new century in
the mind of the consumer retaining the shape of the apple and modifying the rainbow color to
chrome creating an effective response from consumers.

In a 2008 study by Duke University, it was reported that the Apple monochromatic logo made
individuals more creative and stimulated the brain based on exposure to the logo. Apple does
an amazing job of leveraging their brand assets such as the logo and brand messages across all
communication channels and products in its ecosystem.

Cognition

The cognitive system performs mental processes including understanding, evaluating,

planning, deciding, and thinking. Cognition is defined as a consumer’s knowledge, meanings,
and beliefs about Apple, in this case, based on experience and retained memory. The feelings,
moods, evaluations, emotions of the affective system are related to the cognitive system and
effect cognitive processes (knowledge, meanings, and beliefs).

The Major Functions of Cognition

The major functions of an individual’s cognitive systems include interpretation and the ability
to process interpretations to execute cognitive activities. Consumer decision-making consists
of cognitive processes including;

Interpretation

Integration of knowledge

Retrieval of product knowledge from stored memory used in the integration process

The insight obtained from consumer behaviour research is critical in the development of
effective cognitive marketing strategies that resonate with the target audience. An
understanding of how consumers interpret marketing strategies, the consumer integration
process, and activation of product knowledge result in critical insight for Apple. Apple uses
this insight to market its products and retain their competitive advantage in the marketplace.
The consumer research Apple conducts related to cognition provides an understanding of how
the target audience acquires and stores memory along with other important memory factors
such as shopping scripts or product schemas. The types of knowledge (general or procedural)
that the different marketing strategies and tactics activate are also important elements that
influence marketing strategy.

Apple and Cognition

The company occupies a certain cognition based on Apple creating a context for their products
focused on developing an eye-catching, simple design, and ease of use for complex
technologies resulting in significant benefits for the consumer. Apple also positions each
product emphasizing its innovations and communicating differentiated benefits to its
consumers effectively.

Consumer Environment
A consumer’s environment is based on the social and physical attributes of the world around
them that includes spatial relationships, physical objects, and the social behaviour of other
individuals.

The physical environment including influences such as reference groups and online and offline
retail environments also have a large impact on Apple’s success. The Apple retail environment,
word of mouth, product experience, and Apple’s mission and values play a large part
influencing the purchase behaviour of Apple products in the marketplace.

Apple and the Consumer Environment

A major supplier of big-box retailers, Apple has branded stores that are the number one
competitor for these large companies. The brand loyalty of Apple dominates the physical
environment and therefore captures significant attention and focus in the retail (consumer)
environment.

Apple and Other Retailers

To gain a competitive advantage in the physical environment, Apple uses strict control over key
elements. Apple dictates pricing and how their products are displayed with retailers and especially
with big-box retailers.

Apple Branded Stores

To create a unique customer experience Apple uses branded stores. The Apple store creates an
interoperability between its hardware devices such as computers, tablets, smartphones, music
players and watches that showcase capabilities such as video, music, photography, apps, and
software.

The Apple branded stores leverage product knowledge and complementary services. The in-
store experience includes one-on-one tutorials, product repairs, and workshops to provide an
unparalleled customer experience.

The complementary services enhance the value proposition because if a customer can operate
a new purchase, then customer satisfaction will increase. Apple uses this among many other
devices to dominate in the physical environment.

Apple and the Digital/Mobile Environment

The iTunes software developed by Apple has transformed the way people consume media. The
new consumption methods for music, video, photography, and apps has allowed Apple to rule
the digital and mobile landscape. Apple’s focus on the customer experience takes data from
iTunes and other sources. The data is used to update the software and lock in brand loyalty.

Apple’s strategic presence in the retail, digital, and mobile landscape demonstrates how Apple
captures and holds the consumer in the physical environment.

Apple’s obsession with consumer behaviour and customer experience drives provides the
central focus for the company. Consumer behaviour marketing explained using the wheel of
consumer analysis provides a context to explain Apple’s success. The way that Apple
communicates its marketing messages using an integrated marketing communications
(IMC) approach provides the complementary method for Apple to achieve success.
Suggestions

➢ To fulfil the consumer need

➢ To increase the products quantity
➢ Camera quality is bad
➢ They should think about middle- and lower-class family also
➢ Battery problem
➢ The prices of products are high
➢ Please make your devices fully wireless
➢ Please remove primary Sim tray section and include E- Sim section for primary Sim
➢ Include flashlight in front camera
➢ Upgrade or extend the warranty of your phone up to 3 years at least
➢ You should take care of all the necessary things what consumer want
➢ Same icons with same look on home screen even after upgrades
➢ Too simple & doesn’t support computer work as in other OS
➢ No widget support for iOS apps that are also costly
➢ Doesn’t provide NFC and radio is not in-built
➢ App sizes are usually too big consuming too much space

Conclusion

The main conclusion that can be drawn is we found to be the most interesting about Apple
is how they are very innovative and early adapters. Apple is usually the first company to
come out with a new product line before anyone else. This is very risky but it seems to be
working to Apple advantage. This shows that taking risks can sometimes make or break
you and Apple has great potential and has a lot to improve. Currently, Apple is
demonstrating negative aspects of TNCs, contributing to international debt crisis through
exploitation of workers. In a way, Apple is promoting debt crisis in LDCs by accessing
their labour and raw materials on the cheapest possible terms. If it is willing to play the role
of a beneficial TNC, the global economy can certainly benefit. Furthermore, people in the
least developed countries, and the environment, will benefit as well. This requires a change
from all stakeholders: the company itself, the consumers, the shareholders, and the workers.
It is important for a TNC to progress towards beneficial behaviour because this can
determine people's view on progressing towards further globalization, as influenced by neo-
liberalism.

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