APPLE

WATCH

Group -12
Amar Utkarsh-223
Harshavardhan Potla- 139
Siva Likhitha Sakuru-201
Vankudothu Shravya-511
Industry Structure
● The market for smartwatches was estimated to be worth 68.59 million units in 2020,
and by 2026, it is anticipated to have grown to 230.30 million units, with a CAGR of 21.98%.
(2022-2027).

● One of the most important wearable fitness technologies is the smartwatch. To track
various forms of data, users are linking them to multiple apps. A smartwatch can frequently
be utilised as a tracking device, lowering the entry barrier and providing a wonderful user
experience. For this reason, it is anticipated that smartwatches will soon play a crucial role
in the market.

● The impact of technology on recent developments in the fitness sector created the
groundwork for wristwatch device players. One of the market's key focus areas is
monitoring. Smartwatches are integrating intelligence into them more and more,
providing real-time insights depending on the user's data.
Customers
● Apple has a certain target market on whose preferences it focuses in order to be
profitable. With customers between the ages of 20 and 45 at the focus of the
targeting, demographic segmentation is used in the case of the Apple Watch. The
target segment includes both men and women.

● Potential Apple Watch customers are in their final years of college, newlyweds,
families with children, or families with children and grandchildren, depending on
their life stage. Additionally, it is anticipated that these clients have high incomes
and can afford to purchase the most recent iterations of the device.

Product Branding Strategy
Apple Inc. makes use of the
multibranding approach. More
precisely, Apple excels at using the
sub-branding method. Each of
their items has a distinctive sub-
brand that offers further context
for the offer. Additionally, every
thing they sell features the Apple
brand (under Apple). Customers
will find it simpler to connect the
product with the Apple name as a
result.
Marketing Strategy
Line Extension Strategy
Most of Apple Inc.'s master brand
goods, if not all of them, display
the company's line extension
strategy. The different
specifications and slightly modified
characteristics of essentially the
same product are how the line
extension plan is carried out. Here
we would like to quote an
example.
Price Skimming
Apple Inc. practises price
skimming. Here, the price is
initially set high and gradually goes
down.Apple may reach the five
adopters using the price skimming
method at a price that each
adopter is ready to pay.
 Strategic positioning
●Apple will combine positioning based on the combination of attribute and benefit.
●It will combine positioning in terms of a particular feature such as fitness that
represents a competitive advantage
●It also combines with respect to brand benefits that appeal to consumer needs.
●Apple is all about the experience, it goes after the emotional branding something

which is felt in the heart and the mind of the customer.

●Apple brand is reflected through their core beliefs about innovation, design, and

imagination.
●All these 3 beliefs are strongly reflected and promoted through their products,

advertisements and customer experiences.

●Apple is positioned as a luxury brand that carries a huge emotional connection

and loyalty among its customers.

Objectives
It's ultimate objective is to be as a tool for living a healthy life. After it is worn on the wrist, the
Apple Watch can perform functions that other devices cannot. When one wears it, gives you
a feel of a fitness partner who tracks all of the movements, meaningful health insights, and a
connection to the people and things that are important

In Kims words- There are several things that are called smart watches, but I'm not sure you
could name any. There hasn't been one that changed the way people live their lives. At
Apple, that's our objective. We want to change the way you live your life.
 Porter’s Five Forces
Industry Competition Bargaining Power of Buyers Bargaining Power of Suppliers Threat of New Entrants Threat of Substitutes
Low switching costs
The major corporations improve consumer The bargaining power The likelihood of a new Due to the fact that
that directly rival Apple bargaining power, which is
of suppliers is a competitor severely most potential
an important factor for
in the technology sector relatively weak force in threatening Apple's alternatives have fewer
Apple to take into account.
are in fierce battle with the marketplace for market dominance is features than Apple
The individual bargaining
one another. Apple power of purchasers and Apple's products. The relatively low. This is goods, such as a
competes directly with their collective bargaining bargaining position of mostly caused by two landline phone against
businesses like Google power are essentially the
suppliers is weakened things: the prohibitively an iPhone with the
Inc., HP Inc., Samsung two areas of additional
investigation within this
by the high number of expensive costs of capacity to do much
Electronics Co., Ltd., and
force. Individual negotiating potential suppliers for launching a business in more than just make
Amazon Inc., all of whom
spend a lot of money on
power is limited for Apple Apple and the ample an industry and the phone calls, this market
because each lost amount of supply. additional expensive force is relatively low
marketing and research
consumer only results in a costs of building brand for Apple.
and development (R&D), little reduction in income.
much like Apple. As a recognition.
However, customers'
result, there is fierce aggregate market leverage
competition within the and the potential for large-
sector. scale customer churn to a
rival are powerful forces.
Product Life Cycle

The five stages of the PLC are:

1)Product development

2)Market introduction

3)Growth

4)Maturity

5)Decline
Product Life Cycle
Product development stage

1. investment is made
2. sales have no begun
3. new product ideas are generated, operationalized, and tested

1. Market introduction stage

4. costs are very high

5. sales volumes is good
6. Huge competition
7. demand is there as quality is good
8. customers can be prompted based on it uniqueness
9. Making very good money
Product Life Cycle
Growth stage

1. costs reduced due to economies of scale

2. sales volume increases significantly
3. profitability begins to rise
4. public awareness increases
5. competition begins to increase with a few new players in establishing market
6. increased competition leads to price decreases

Maturity stage

7. costs are lowered as a result of increasing production volumes and experience curve effects
8. sales volume peaks and market saturation is reached
9. new competitors enter the market
10. prices tend to drop due to the proliferation of competing products
11. brand differentiation and feature diversification is emphasized to maintain or increase market share
12. profits decline
Product Life Cycle
Decline stage

1. costs increase due to some loss of economies of scale

2. sales volume declines
3. prices and profitability diminish
4. profit becomes more a challenge of production/distribution efficiency than increased sales
Thank You