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New Product Launch: Apple MacBook

The launch of a new product is crucial for successful sales. It involves adequately describing the product services that the target market can look forward to and analyze some of the competitors in the domestic and international market. The strategic plan guides different departments on the role in promoting a new product. Domestic and international markets require varying approaches because the cultural, economic and legal requirements are different. Therefore, the launch plan for each market will feature unique characteristics that are appropriate to the potential market. This paper focuses on the product launch of the new Apple MacBook by defining the product, creating a SWOT analysis, introducing the target market, identifying the competition, and evaluating the product’s potential growth rate.

Product Definition and Description

The Apple MacBook is a brand of laptop computer manufactured by Apple Inc. The product is known for unique features that distinguish it from its competitors. For instance, the Apple MacBook is powered by Core i5 and i7 processors. It is also designed to use less power while retaining high performance. The product handles graphic task and games especially better because it has the Intel HD Graphics 6000 processor (Andre et al., 2010). When the MacBook is connected to the base station, such as the AirPort Extreme or the AirPort Time Capsule, it operates three times faster than the preceding models. These features are unique to the product and solve the problem of slow performance with little storage space.

The product launch of the Apple MacBook would involve the use of social media significantly to advertise the Apple MacBook through a social media campaign, such as videos on YouTube and reviews from gadget gurus and experts. International markets would also require product demos in technology stores to showcase them to the customer directly.

SWOT Analysis

The MacBook strengths lie in its parent company’s strengths for constant innovation, healthy financial position, strong investors, and customer loyalty. The company’s financial health has been outstanding “since the first iPhone was launched, including about $38 billion in cash assets and $127 billion in long term marketable securities” (Domke-Damonte, Keels, & Black, 2013).

The primary MacBook’s weakness is its high price compared to similar products from competitors. Although Apple’s customers are very loyal, they are susceptible to price competition. The high price point also deters those customers who are more price sensitive.

Opportunities for the MacBook are the integration of tablet features, such as a touch screen, which will help promote additional market share growth within the international sector, while also leveraging cloud technology. Apple has “near 20% of the global PC/tablet market, we foresee this number increasing in the years ahead, especially as the company gains ground in China and the rest of the Asia/Pacific region” (Domke-Damonte, Keels, & Black, 2013).

The threats the MacBook face are the high number of substitute products available in the market, with the number of competitors increasing daily, and gross margin pressure. New technology in the form of E-readers, tablets, and larger phones can potentially reduce demand for laptop computers like the MacBook.

Figure 1. SWOT Analysis for the Apple MacBook

Target Market Introduction

The Apple MacBook needs to be introduced because the new features redefine the notebook’s design by lowering the entry price by $700, making them more affordable to both university students and business professionals between the ages of 25 to 34. Apple has invented better methods of manufacturing notebooks that are more efficient and creates less waste than the competition, making the MacBook the computer industry’s greenest notebooks. The MacBook is being introduced at a starting price of $1,299. The new MacBook will have an incredibly compact and sleek design by being .95 inches thin, 4.5 pounds, and 13 inch screen, arsenic-free glass, uses 30 percent less power, 3D graphics, LED backlight display, and vivid, crisp images. These features are what will keep the MacBook flying off the shelves (Apple, 2008). In introducing such a durable and reliable product, the MacBook will set itself apart from other notebooks that are currently being sold on the market, making it more appealing to the targeted audience. Apple needs to continue introducing new products in order to keep the targeted audience engaged and to keep them buying additional products and accessories from Apple.

Product Competition

Competition in the domestic market comes from Dell Computer with the Dell Chromebook 2-in-1. The Dell Chromebook 2-in-1 offers an 11.6-inch laptop and a touch screen tablet in one device, starting at a price of $329.00 (Dell, 2017). Competition from the international market will be Taiwan’s Acer Chromebook. This device also offers the 11.6-inch screen as well as an 8-sec boot time and 7 hours of battery life, starting at a price of $249.99 (Acer, 2017).

The competitive advantage that Apple has over both products is brand equity. Consumers are reliant on Apple providing more than what the competition can offer; thus, consumers will pay three to four times as much for an Apple product versus other products in the domestic or international market. From the product refresh, Apple does deliver with a lightweight and sleeker design as well as longer battery life than the competition has to offer; while also offering the same features that the competition promotes as high product points.

Potential Growth Rate

Apple Inc. has built a product ecosystem integrating their products into all aspects of people’s lives (Kerr, 2015). The MacBook comprises of nearly 11% of the annual revenue or roughly $25.5 billion for the company. This is mainly due to the low price competition in the notebook market such as Dell, Lenovo and Asus. Sales of Mac computers have consistently increased over the years, showing to be a rather stable but yet growing source of revenue for the company (Statista, 2017).

Apple sold 13.6 million MacBook laptops in 2010 to 18.5 million in 2016 (Statista, 2017). From 2014 through 2016, Apple sold 57.9 million MacBook laptops with the highest activity in 2015 at 20.5 million sold. There was a slight drop in 2016, as Apple did not update the products. Despite PC shipments declining in 2016, the market research firm International Data Corporation (IDC) said that overall fourth quarter shipment results indicate a possible PC market rebound in the New Year (Vanian, 2017). The prior three years of activity on the MacBook indicates that the product will continue to be stagnant or grow minimally in the next three years depending on innovation and new releases. The desktop and notebook computer market is struggling. Overall shipments of PC’s dropped 5.7% year over year in 2016 to 260 million, according to a report by IDC (Vanian, 2017).

Conclusion

The Apple MacBook has the potential to be a game changer in the personal computing industry. It is important for Apple to carefully plan and execute the items identified in this paper in order for the product launch to go well. Even though the potential growth rate is not positive, capitalizing on the strengths of the product by appealing to the target market will ensure the MacBook will enjoy the same success as other Apple products have demonstrated in the past.

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