Marketing Strategy Analysis of Apple iPad
To survive in the global and competitive business environment, it is essential for a
companys to conduct extensive research so that they can develop a strong brand image from
the initial stage as it leads to greater financial benefits for the company. The marketing plan of
Apple’s iPad is the topic where an effective marketing strategy is developed to ensure its
success in the global competitive market where major plays such as Sony, Compaq and Dell
have a significant impact upon Apple’s strategies. Apple’s latest iPad is the revolutionary
product which is a portable mini device used as a pc anywhere with its wide range of options
and innovative design.
Apple’s marketing strategy will be focusing upon the product design, brand positioning,
price and promotion of iPad in the global market. This will be linked to the research
and analysis of the environmental forces and SWOT analysis to understand the company’s
position. Apple’s market strategy will be incorporated with the generic business strategy which
is towards growth and maintaining a strong position in the market through its innovative
products. Apple will use competitive marketing strategy for its iPad where two such strategies
can be developed which are differentiation and Focus to make iPad a success in the global
market. Marketing planning and strategies can become highly effective if Apple focuses upon
its strategic human resource management and make continuous efforts to redesign its
marketing plan to survive successfully.
Company Description
Apple Corporation is a highly successful organization that aims to advance in the
technology field through its high quality and innovative products. The success of Apple is
primarily based upon its innovation and dynamic technological advancement it takes to give its
customers the ease and luxury to use its products. Apple’s latest product iPad is launched to
compete with existing computers and tablet technology, as it is a portable high tech device for
the usage of all needs of an individual whether personal or business use.
Environmental Analysis/PEST Analysis
This analysis will help in identifying the factors that affect the organization’s ability to
perform efficiently in the global markets.
Political Forces: The political factors affect the organization’s ability to operate
efficiently in foreign markets. Therefore, Apple’s operations are affected by political conditions
of developing countries in Asia where it is unable to meet its organizational targets successfully.
The increasing suicide bomb rate and terrorism is another reason that limits the ability of Apple
to operate in some countries. Moreover, the changing legal requirements regarding the sales
tax, import and export duties also affect Apple in terms of its rising costs and limitation to have
access to a greater market.
Economical Forces: Economical factors affect organization’s ability to expand its
business and achieve organizational objective of growth. The recent recession has slowed down
economic activity and resulted in increase of prices of law materials, which have increase the
costs and ultimately the prices of products. Apple faces low demand due to the big economies
collapsing and going under stabilization phase, which has forced countries to boost their
economy by discouraging imports and encouraging exports.
Socio-Cultural Forces: In today’s business enjoinment, people belonging to different
backgrounds, experiences, values and cultures work together in multinational organizations
with common objectives of gaining success in competitive global markets. Therefore, this
creates a critical challenge for organizations to help employees develop positive and
interpersonal relationships so that all people can work productively while respecting other’s
culture and backgrounds. Apple has focused upon the cultural values of its employees as well as
customers to achieve positive long-term relationships through maintaining an organizational
culture which is highly flexible and culturally diverse.
Technological Forces: Apple concentrates on the technological advancements of its
work operations. The highly competitive and global business environment has forced
organizations like Apple to become highly efficient through technology and internet
revolution. Apple focuses upon innovation which can be achieved by meeting the new
technological advancements and by being efficient in providing better quality and innovative
products to its customers through advanced technology.
SWOT Analysis
The SWOT analysis assists organizations to identify the strengths and weaknesses of an
organization which are internal and opportunities and threats which are external. This will help
in understanding how Apple can utilize its strengths and opportunities and overcome its threats
and weaknesses to survive in the global competitive market.
Strengths: Apple is a successful organization and its iPod has a high market share in the
global market due to its brand perception and image as a high quality innovative brand.
Moreover, in the IT industry, Apple holds a strong position by catering to the needs of the
dynamic market with its extensive research and developments that enables it to satisfy its
customers with highly innovative products. Apple has maintained its brand name in the global
market and the customer loyalty is increasing at a high rate.
Weaknesses: Apple provides highly innovative products in the market but it is having
issues with the quality of its products as recently the Apple iPad was reported to have a faulty
screen and it had replace all those products. This is one major weakness of Apple’s products.
Moreover, the company has a relatively weaker research and development system as
compared to other major competitors and needs to put more emphasis on building strong
reliable products as its brand name portrays.
Opportunities: Apple has many opportunities for growth and expanding its range of
products and services. It can develop iTunes and music player technology into cell phones and
iPad devices. It can focus upon developing Podcasts for radio shows through internet and can
enhance its iPad into more sophisticated and reliable device to be used by every individual. The
IT industry is full of rapid and dynamic changes and there is growing demand for innovative and
technologically advanced products so for Apple, there are unlimited opportunities to avail for
growth.
Threats: The major threat for Apple and its products is the intense rivalry among
competition in the technology industry. The competitive global environment has brought
critical challenges for Apple to maintain a competitive and strong position in the global market.
Moreover, Apple’s iPod and iPad are subjected to demand which can go down at any time due
to saturation and substitutes in the market. Hence, to meet with changing trends
and globalization, Apple requires extensive research and development to create a diversified
range of products to be successful.
Marketing Objectives
The objective of Apple’s iPad device is to capture the market by creating awareness and
persuading customers to use this device. Its emphasis will be entirely upon positioning iPad in
the global market as a highly reliable device which is a need for every individual in today’s busy
hectic life.
The marketing plan of Apple’s iPad should consist of two major objectives that help to
achieve organizational success in today’s global business environment. First of all, Apple focuses
upon its customers through thorough market research and planning then the second step starts
by integrating all organization’s functions which are related to the marketing plan of the
organization. After this, Apple becomes competent in planning and implementing its
organizational core objectives to achieve positive results.
Marketing Strategy
The marketing plan of Apple iPad is based upon extensive research and planning so that it
can expand its operations worldwide where the marketing strategy aimed to promote the
following key elements to strengthen its brand image. The major brand elements are the
superior quality, friendly usability, design and reliability of the product. It can be promoted as a
product that not only provides an ease to an individual’s life but a reliable cost effective
solution to all computer related problems. The following are the major components of the
marketing mix that can help in understanding the product and how it is to be marketed in the
global market.
The marketing growth strategy of Apple mainly aims to provide superior quality and
innovative products and services. This strategy helps in increasing customer loyalty and building
a stronger position in the global competitive markets. Innovation is the success key of Apple. In
today’s highly competitive environment, developing innovative products is a major key towards
achieving success. This requires extensive research and development by the businesses to be
successful. Although, innovation has become a key towards success but it has high financial risk
because the customers can dislike the new invention and it can go into waste.
Product Design: iPad is the new invention of Apple with extensive Research and
Development. It is the latest technological device which is mini pc device equipped with high
compatibility mode and ease of usage for users. It is a fully equipped device where a user can
take pictures, watch movies, download large amount of data and send/receive emails,
attachments and documents. It is designed for personal and business usage where a user can
be highly digitized and connected to the world within seconds with no hassle. iPad is the new
revolution introduced by Apple to provide ultimate user friendliness and access to all
technological advancements together in one mini device.
Brand Positioning: Initially, Apple’s iPad target market can be the professionals and
businessmen who require portable easy accessible devise for their usage. And then, young
customers comprising of students will be targeted through emphasizing upon its innovative and
trendy design that provides unlimited options will start gaining popularity and acceptance in
the global market then it can expand and broaden its market segments by satisfying a larger
market segment by positioning iPad as a need for every individual.
Promotion: Apple’s iPad promotional strategy will mainly focus upon word of mouth
advertising and point of purchase strategy where consumers will be encouraged to discover and
try out the product themselves. Apple’s latest iPad requires extensive marketing through
television and other media sources to achieve high customer response. Television is an effective
medium of advertisement ad Apple’s advertisement has given it more importance and this
industry is flourishing through these innovative ads.
Price: Apple’s iPad will be charged at a premium price from the start to show and prove
that it is a superior quality and innovative device than any other available in the market. As it is
an innovative product, it will be promoted in the market as a premium priced device that has
value for the benefits it provides. This way the consumers will consider Apple’s iPad as a highly
reliable and portable pc device that can make their life faster and efficient in terms of both
work and entertainment which will lead to its brand image strengthening through this
marketing strategy.
Place: Apple has to focus upon building long term relationships with its suppliers,
wholesalers, and retailers worldwide because this way its supply chain management can
become highly efficient. As the economic activity has slowed down, it resulted in increase in the
prices of oil, which has ultimately increased the costs of production for Apple and reducing its
cost effectiveness. Also, the concept of E-commerce has greatly helped Nestle to automate its
systems through E-shopping and E-supply chain management.
Implementation Plan
Now, we can develop an effective competitive marketing strategy where two such
strategies can be developed which are differentiation and Focus to make iPad a success in the
global market.
Differentiation: Apple’s strategy of differentiation has its focus upon producing unique
and innovative products for its customers which are not provided by other competitors in the
global markets. The major success key of Apple is that it offers superior quality and innovative
products and services to its users with prime emphasis upon innovation and design. Therefore,
marketers must focus upon their advertisements that promote these five actors to influence
consumer buying decisions. This will create a buzz in the market and gradually the image as a
premium high tech pc device will strengthen all over the world which will contribute towards its
brand equity. The spread of this innovation will be influenced mainly by its attractiveness,
quality, price, promotion and durability. Customers make high involvement purchase decision
for innovative products as it involves high risks. Moreover, Apple being the first one to enter
the market with a highly innovative device will lead to its strong brand image building in the
competitive global market.
Focus: Apple can focus on more than one segments of the market and develop its brand
image in these market segments for its latest iPad. The target segment for iPad will be the
upper and higher middle-income group who want to improve their lifestyle with revolutionary
gadgets. Through this strategy, Apple will be able to focus on its resources and plan towards a
selected target segment for managing it effectively. To survive in global business environment is
very challenging for iPad, therefore conducting thorough market research will help in achieving
the core organizational objectives.
Evaluation and Control
To meet with the intensified global competition, Apple requires extensive research and
planning for its success in the future. The highly dynamic and uncertain global market brings
serious challenges for Apple’s iPad to survive successfully. The major competitors of Apple such
as Compaq, Sony and Dell Co have forced Apple to focus upon its brand equity in order to
maintain its brand image worldwide. Apple can meet and control the challenges and obstacles
arising in its way of growth through its long-term business strategy where effective marketing
plan emphasizes upon innovation and building customer loyalty.
Firstly, focusing upon the Strategic human resource management, Apple can create
a competitive advantage that is not imitable by its competitors. As Apple is known for its quality
and innovation as the first energy drank, it has captured a very large customer base as
compared to its competitors but to maintain this customer base or increase the number, it
must focus upon developing sustainable competitive advantage through its human resource
which ultimately leads to excellent customer relationships.
Secondly, the 4 Ps of marketing also require changes and continuous improvements to
survive in today’s highly global business environment. The marketing campaigns can emphasis
upon the design and reliability of the iPad in future to make the most reliable functioning
device in the market. This will strengthen the brand equity as well as help in surviving
successfully in the competitive global market. The positioning of Apple can be altered according
to the market trends, the children and teenagers can be the target for iPad in future.
