NEED HELP WRITING A 2 PART PAPER

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Part I

Geographically, I Apple sells its products more so Iphone Worldwide. The sales across the globe of the Iphone cellular devices are at the range of 421 million devices up and until now. In its sales, geography, the company in term of sale of its product, it has dominated the worldwide sales in less than seven years. The sales as per studies by geographical regions suggest the highest sales are local sales in the United States followed by Europe then China, Japan and the rest of the Asian countries. This where the largest sales happen and thus the bulk of revenue originates from here (Statista, 2016).

Demographically higher income households tend to buy apple products that those from lower income households (Gaille, 2015). On benefits sought and usage rate most users for this phone said that the interface rate created by it is the reason for their continued use and purchase of it. On psychographic, some people bought the product based on the prestige and seeing their friends having the phone of that brand (Gaille, 2015).

The product is mainly sold worldwide but mainly is also sold in America with sales being the highest there. Other sales are in Europe, China, Japan and the rest of Asia. Apple has notably set up its own shops in India and has opted to penetrate and establish itself in the southern Asia market that is full of demand of its product. Companies such as Reddington have started to feel the effect of this penetration especially on the issue of dealing directly with the customers with competing companies recording losses either at the distributorship level or at the product level.

Apple has changed its mode of distribution into an intensive one with more penetration into markets. The sale for Iphone specifically hit the highest mark in December last year. It recorded a sale of over 30 million units which was facilitated by the company’s intensive sale method and reduced prices that even record at 20% cut off normal price (Shinde, 2016). This pricing and distribution method favours the target market in that the targeted people are people across all ages and thus price reduction may favour say students while the distribution method favours the company by protecting its consumers from being ripped off.

Part II

My product, Iwatch will be focussed on certain people based on different parameters.

Geographically- my target market will be developed and even countries that are developing very fast. In this case, my geographical area will be mostly Europe, North America, Australia, Japan, China and the rest of Asia.

Demographically – since my product i have set at 400 dollars, my target is high income households. Those that can afford the product are obviously those that have a higher income per year. However, the prices will be fixed to protect the final consumer from being ripped off.

Psychographic- the character for people who want to be ahead of others in terms of technology will also be my target. The young people mostly and those who feel that they have class. Professionals will also not be left out. Benefits sought and usage rate- the higher the usage rate the more people will find themselves buying at times clandestine. Thus the marketing strategy will play a role which i intend it to be intensive.

I would want to sell my products all over the world. The higher the market based on demand and supply the more i will commit more resources in that market. An example can be how Apple is now setting up stores in India due to the increased demand of its products in that market and south Asia as a whole. For my IWatch, it will not be different, i have the preferred Western Countries of course due to the bargaining power but I will also ensure worldwide presence.

The distribution strategy would be intensive. It has worked with Apple and thus it will work with my I watch. It is important to note that intensive distribution even pushes out competitors and errant distributors who might be the cause of lower sales.

Majorly my target is for the high class and as such that group of individuals prefer higher prices. However, to instil confidence, i will ensure that the distributors do not skyrocket the prices than the prescribed retail price of 400 dollars. In case of lowered sales, the Apple of price reduction will also be crucial especially for those other customers. In regions where the sales will increase abnormally, I will set up distribution sales shops.

References

Gaile B (2015). 18 key apple targets demographics retrieved from Revenue of Apple by geographical region from the first quarter of 2012 to the second quarter of 2016 (in billion U.S. dollars)