Marketing Strategy

Apple

B. Harish
21-PVC-014

Introduction

Apple Inc. is an American multinational technology company headquartered in Cupertino, California,

United States. Apple is the largest technology company by revenue (totalling US$365.8 billion in
2021) and, as of June 2022, is the world's biggest company by market capitalization, the fourth-
largest personal computer vendor by unit sales and second-largest mobile phone manufacturer. It is
one of the Big Five American information technology companies, alongside Alphabet, Amazon, Meta,
and Microsoft.

Apple was founded as Apple Computer Company on April 1, 1976, by Steve Wozniak, Steve Jobs and
Ronald Wayne to develop and sell Wozniak's Apple I personal computer. It was incorporated by Jobs
and Wozniak as Apple Computer, Inc. in 1977 and the company's next computer, the Apple II,
became a best seller and one of the first mass-produced microcomputers. Apple went public in 1980
to instant financial success. The company developed computers featuring innovative graphical user
interfaces, including the 1984 original Macintosh, announced that year in a critically acclaimed
advertisement. By 1985, the high cost of its products and power struggles between executives
caused problems. Wozniak stepped back from Apple amicably and pursued other ventures, while
Jobs resigned bitterly and founded NeXT, taking some Apple employees with him.

As the market for personal computers expanded and evolved throughout the 1990s, Apple lost
considerable market share to the lower-priced duopoly of the Microsoft Windows operating system
on Intel-powered PC clones (also known as "Wintel"). In 1997, weeks away from bankruptcy, the
company bought NeXT to resolve Apple's unsuccessful operating system strategy and entice Jobs
back to the company. Over the next decade, Jobs guided Apple back to profitability through a
number of tactics including introducing the iMac, iPod, iPhone and iPad to critical acclaim, launching
"Think different" and other memorable advertising campaigns, opening the Apple Store retail chain,
and acquiring numerous companies to broaden the company's product portfolio. When Jobs
resigned in 2011 for health reasons, and died two months later, he was succeeded as CEO by Tim
Cook.

Apple became the first publicly traded U.S. company to be valued at over $1 trillion in August 2018,
then $2 trillion in August 2020, and most recently $3 trillion in January 2022. The company receives
criticism regarding the labour practices of its contractors, its environmental practices, and its
business ethics, including anti-competitive practices and materials sourcing. Nevertheless, the
company has a large following and enjoys a high level of brand loyalty. It is ranked as one of the
world's most valuable brands.
Annual turnover

Apple's total net sales amounted to 394.33 billion U.S. dollars in their 2022 financial year.

Products they Provide

Mac

MacBook Air (M1)

MacBook Air (M2)

MacBook Pro 13”

MacBook Pro 14” and 16”

iMac 24”

Mac mini

Mac Studio

Mac Pro

Display

Studio Display

Pro Display XDR

iPad

iPad Pro

iPad Air

iPad 10th generation

iPad 9th generation

iPad mini

iPhone

iPhone 14 Pro

iPhone 14

iPhone 13

iPhone SE

iPhone 12
Watch

Apple Watch Ultra

Apple Watch Series 8

Apple Watch SE & Apple Watch Nike

AirPods

AirPods 2nd generation

AirPods 3rd Generation

AirPods Pro 2nd Generation

AirPods Max

Tv & Home

Apple TV 4K

Apple TV App

Apple TV+

HomePod mini

Home app

Only on Apple

Apple Music

Apple Arcade

iCloud

Apple Podcasts

Apple Books

Wallet

AirTag
Accessories

35W Dual USB-C Port Power Adapter

Magic Keyboard with Touch ID and Numeric Keypad for Mac models with Apple silicon

Magic Trackpad - Multi-Touch Surface

Magic Mouse - Black Multi-Touch Surface

USB-C Digital AV Multiport Adapter

USB-C to USB Adapter

USB-C to MagSafe 3 Cable (2m)

USB-C Charge Cable (2m)

Apple Pencil (1st Generation)

Apple Pencil (2nd Generation)

Apple Pencil Tips - 4 pack

Smart Keyboard for iPad (9th generation)

Magic Keyboard for iPad Pro 12.9‑inch (6th Generation)

Magic Keyboard Folio for iPad (10th generation)

Smart Folio for iPad (10th generation)

Smart Folio for iPad mini (6th generation)

Smart Keyboard Folio for iPad Pro 12.9-inch (6th generation)

30W USB-C Power Adapter

iPhone 14 Clear Case with MagSafe

iPhone 14 Pro Leather Case with MagSafe

iPhone Leather Wallet with MagSafe

iPhone 14 Plus Silicone Case with MagSafe

20W USB-C Power Adapter

MagSafe Charger

USB-C to Lightning Cable (1m)

MagSafe Battery Pack

MagSafe Duo Charger

Lightning Digital AV Adapter

Apple Watch Magnetic Charger to USB-C Cable for Apple Watch Series 7 (1 m)
35W Dual USB-C Port Power Adapter

45mm Umber Leather Link

45mm Rainforest Braided Solo Loop

45mm Elderberry Sport Loop

45mm Summit White/Black Nike Sport Loop

Objectives of Apple

To expand their sales to customers who have not yet own any Apple’s products.

To produce hassle free products that provides service and enjoyment for customers.

Become the leading business in the mobile market

Continue to create ground breaking products. Apple has made a name for itself becoming a trend
setter in the market with every one of their products introducing something new and exciting to the
world

Target market

Apple's target audience consists of middle-class and upper-class users who can pay higher for
products that provide them with an incredible user experience. This means that these users have a
higher disposable income and are willing to pay more for as high-priced products as Apple's.

Apple Market strategy

Apple Knows Its Target Audience and How to Reach Them

Apple has worked hard to find its target audience and they understand its audience’s likes, dislikes,
habits and language they want to use. By simplifying the marketing process in the language that the
audience understands an amazing bond is formed between a prospective customer and the brand,
and a lasting connection for an existing customer. Apple does mention all its specifications and
technical details, which is usually below the fold rather than it being in the face. Effective use of
product placement

Positive reviews in the media

Apple systematically benefits from the buzz created by positive reviews in the media – both,
traditional, as well as, social media. The company achieves positive reviews due to high quality and
advanced features and specifications of its products and services. Moreover, the multinational
technology company proactively contributes to the creation of positive reviews in the social media.
For example, Apple usually sends new iPhones to selected technology and mainstream media outlets
to allow them to publish reviews before the phones went on sale.
Storytelling through video and viral marketing

Storytelling through video and viral marketing is an important element of marketing strategy for
Apple. The world’s largest IT company by revenue conveys its marketing message through
aspirational storytelling that resonate with members of target customer segment. Famous “1984”
ad, first aired during 1984 Superbowl communicates the story of Apple as a rebellious company that
challenges the status quo. “Share your gift” ad is a more recent example of storytelling by the tech
giant, where a young artist locks away her works until in a box, until one day wind coming through
the window takes papers with her art to the town below. These and other storytelling videos have
proved to be viral and hugely popular with positive impact on Apple brand image.

Have a Community of Loyal Users or Customers

For more than ten years Apple has worked hard on building a community of loyal users, customers
and fans around the world. Apple marketing strategies include making customers want to belong to
that community as it is deemed to be “cool”. Apple smartly capitalized on the universality of that
self-perception, which made its customers believe that the brand understands them and is like them

Apple Provides A Well-Appreciated Customer Experience

Apple holds the customer's experience in high regard, the experience can include every element
which is comparing different product versions to each other, trying out new products in the retail
store, buying the item, receiving it unboxing it and setting up the devices. All the devices are
carefully crafted according to the company to appeal to the consumer's requirements.

Consider the Value of the Products

What makes perceived value so important from a company perspective is that customers may be
willing to pay a higher price because they deem the brand to be of high quality or a higher status
symbol. This gets to the heart of Apple's continued success over its competitors

Pricing

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.
Conclusion

Apple is one of the leading trillion-dollar brands in the world. What is the secret behind its success?
its marketing strategy. It has always placed itself in the premium market and markets its products to
high-end customers. Many brands still couldn't figure out how Apple has such loyal customers, the
reason is its ingenious marketing strategies