Apple Inc.’s Product Marketing

Marketing strategies employed by a company depend largely on the nature and characteristics of the customers. The nature of the complexity of the market environment places a demand on an organization to advance its strategy in order to meet the varied demands associated with consumer characteristics. Major aspects of effective market planning and implementation include assessment, designing, and implementation of an effective marketing strategy, as well as evaluation of the marketing strategy or model used. The main aim of these variables is to increase corporate profitability and competitiveness as well as optimize market share. According to Berzin, Singer, and Chan (2015), innovation dominates among technology-oriented companies. Apple Inc. is a typical multinational technology enterprise based in Cupertino, California, the US. The company’s largest revenue percentage is derived from the designing, development, selling, marketing, and promotion of computer software, consumer electronics, and other numerous essential online services (Apple, 2017). It clearly shows how innovative the company is. It further implies its potential to develop more advanced products and services. Based on this realization, Apple Inc. majorly uses the B2B business model to drive its competitiveness and profitability by selling its products in B2C markets in various retail stores based in 25 countries across the world. Based on its diverse product and market mix, Apple Inc. can similarly come up with “iPrint”, an arbitrary wireless printer that is compatible with most of its electronic products. It would definitely have a positive impact on the company’s strengths and offer more opportunities while lowering a number of weaknesses and threats in its SWOT analysis. Inarguably, this new offering would positively affect the overall strategy of the corporation.

Marketing Assessment of Apple Inc.

Overview of Apple Inc.’s Business Model

Apple uses an “own the customer” business model that is designed to absorb or drive the company’s customer into its own ecosystem. In this regard, the main approach used by the company to manage its supply chain is end-to-end (e2e). It implies that the company manages its production process not just between the time of production and purchase but proceeds with follow-ups to find out the experience of consumers regarding their new and mostly innovative products. Another element of Apple’s business model is open innovation which entails the purposive use of both inflows and outflows of essential knowledge to facilitate internal innovation. The approach also ensures expansion into external markets. Jeynes (2013) acknowledges the use of this strategy in Apple Inc.’s business model as essential to facilitate its core mission, which is indifferent from driving innovation that is inherent in the “corporate DNA” of this corporation. Therefore, a mix of strategies employed by the company to achieve its goals and objectives collectively constitutes the business model since they function in unity and harmony. Looking at the effectiveness of “own the customer” business model, it is apparent that much of the company’s success in terms of revenue generation, competitiveness, and market share are attributable to the model used. Finally, the model being used forms the basis for the formulation of the company’s goals and objectives, which results in overall organizational success.

SWOT Analysis of Apple Inc.

Apple has generally succeeded in many of its product lines due to effective application of a sound business model in its supply chain. However, some areas in its external and internal environments remain an obstacle that prevents it from fully accomplishing its goals and objectives. However, with the dynamic business world, Apple is apparently exposed to a number of opportunities that when taken into consideration, can transform all its challenges into organizational strongholds. It is only possible if the organization is conscious of the threats that are inherent in its operational environment. The following is an elaborate SWOT analysis of Apple Inc.

Strengths

Apple produces some of the most innovative products that the world has ever known. Innovation at Apple entails presenting hit products on an annual or bi-annual basis to the point that the company is now appreciated for having covered nearly everything needed to fulfill individual desires. Apple has a record of well established reputation and is outstanding in many ways, both regionally and globally. For example, it is considered the world’s leading tech company as well as the largest publicly traded enterprise. The products produced by Apple are considered great in terms of design and technology. The end-to-end market strategy also means that the company is in constant state of exchange with consumers, whereas a combination of B2B and B2B supply chain implies its strength in terms of a wide customer base. With the initial leadership of Steve Jobs, the corporate philosophy of the company stood out as a unique technology enterprise, and the consequent leaders have since embraced Job’s principles (Goyomali, 2015). Such strengths show Apple’s long-term commitment to innovation and growth, thus implying its capability to come up with more advanced products.

Weaknesses

With the first impression that Apple has created among its customers, it has somehow been challenging for the company to match customer expectations with its chain of production. Year after year, the customers anticipate newer and more innovative products from the company. Again, the majority of Apple’s products are incompatible with the third-party accessories and software. It has negatively affected the customer decision-making unless Apple worked out ways of streamlining its product lines to have all necessary accessories available. Otherwise, if customers purchase any product from Apple, they have to keep on looking for Apple accessories, and if unavailable, such products are rendered non-beneficial. High dependency levels also negatively influence the corporate stability of Apple. With just 7 to 8 products, Apple finds it challenging to compete favorably with companies, such as Google and Microsoft, that depend on a wider range of products and services (Apple, 2017). The weaknesses generally mean that Apple has to be more pro-active in terms of innovation to cover up the existing loopholes in its market environment and product line.

Opportunities

Analysis of Apple’s market environment shows that Apple’s launching of Apple Cars, iWatch, and Apple TV can increase the company’s product line as well as present an opportunity for market development. Additionally, the advancements in the global realm of technology in itself is an advantage for the company, as with it, the new and better opportunities come that Apple can pursue. The company can also take advantage of the fast-growing economy of the countries across the world. The implication to this trend is that GDP of different countries is equally growing. It means that more of Apple’s products would continue to be appreciated, hence increasing sales. In the midst of this opportunities, Apple has targeted squarely and perfectly if the company considers coming up with “iPrint” and sells it to its B2C markets. Customers would obviously be excited to have such a new-tech product due to its potential impact on the existing market. In fact, this wireless Apple printer would be a way of filling in the gaps in the existing Apple’s product line.

Threats

Smartphone segment of the company is facing a serious threat of competition. According to Bhasin (2018), Android is at 47.5 % of the market share and is being used by the fiercest Apple’s competitors, whereas Apple itself remains at 42 % of the market share. If Apple does not compensate or overcome this threat, it risks both productivity and competitiveness.

You may find this article Marketing Plan Writing Service
useful.

Competitive Analysis for the Company

The strength of Apple is in its ability to introduce innovative products into the market, and this has enabled it to take the lead in the technology industry. In terms of exploration of new product lines, the company also performs well, only that its product range is still limited. The pricing strategy is somehow inconsiderate of customers in developing countries, which is why the corporation has to be more ultra-sensitive in terms of pricing. It can, therefore, be concluded that the company’s strategy is considerably balanced, which is a requirement for corporate success. The main obstacle to Apple Inc.’s realization of its full potential is the presence of fierce competitors that consistently come up with new and innovative decisions to subdue those of Apple Inc. As derived from Porter’s Five Forces, the threat of competitors is among the significant issues in the company’s internal environment. Although innovation is the strategy that Apple has capitalized on, it is still the main strategy that its rivals use to subdue the company.

Apart from Apple’s performance in its core competency areas, the potential for growth of Apple through its approach to corporate social responsibility is very high. Generally, the organization’s growth is attributed to the development of technology industry. However, the company is still confronted with immense need to prevent crime as one way of increasing its growth advantages among other aspects of corporate social responsibility. Benefits of various strategies geared towards CSR are apparent and lead to corporate growth in one way or another

Current Target Segments

As identified in SWOT analysis, the company currently targets three major segments. It recently announced the launch of Apple Cars in 2020. Whereas this would be a big step taken towards achieving diversification and product development, Apple would be expected to overcome some of its major limitations, such as incompatibility, to allow users to have access to spare parts and accessories. Alternatively, the company can choose to come up with its own model of high-tech cars that are compatible with other companies to give customers the opportunity for effective decision-making. Another product is iWatch, which is also going to be a significant milestone towards the expansion of the company’s product line. In this way, the company would apparently lower its risk level and instead reduce its susceptibility to possible losses. Finally, the management of Apple announced intentions of the organization to explore the healthcare industry (Bhasin, 2018). Apart from the existing use of Apple apps in the hospital, the company also plans to come up with new tools to facilitate healthcare efficiency (Research Briefs, 2017). Such new product projections manifest Apple’s potential to explore even more segments.

Current Marketing Strategy

The most outstanding marketing strategies in which Apple has succeeded and contributed to the increase in corporate profitability and competitiveness as well as market share include market penetration, market development, product development, and diversification. However, in each one of these strategies, the company still needs to work smart to completely outdo its competitors (Apple Inc. 2017). In the process of using Ansoff marketing strategy, the company has focused on 4Ps of the marketing mix, namely product, price, promotion, and place. Specifically, Apple Inc. is essentially successful due to continuous introduction of better products to the market. The pricing strategy of Apple Inc. is also unique, considering its impact on the brand image. However, the same pricing strategy acts as a significant blockage to corporate profitability of the company. In terms of promotion, Apple has established a continuous link with customers and created a channel of ongoing communication that allows the effective exchange of information. Finally, the fact that Apple Inc. operates in at least 25 countries globally implies that the company has optimized the aspect of place. However, Apple should continue diversifying new geographical regions.

New Product Development

Product Information and Visual Representation of the Product

The new product is “iPrint”. Apple can introduce this new form of printer that is wireless and uses Bluetooth to connect with Apple Inc.’s smartphones to deliver high-quality printing outcome that is very clearly readable. The product would relieve the users of having to transfer files by USB cable to the computers that are compatible with the conventional ink/toner printers. It would save time as well as increase efficiency and effectiveness of printing, especially for the majority of consumers who use Apple Inc.’s smartphones. However, according to Lamb, Hair, and McDaniel (2015), there is a need for more research to establish the feasibility in terms of costs and benefits involved in coming up with a new product such as “iPrint”.

Visual Representation of the Product

Targeting and Positioning Strategy

The company’s targeting should focus on the B2C markets, whereby customers who directly consume the products of Apple, especially smartphones, ought to have access to the “iPrint”. Positioning should involve the inclusion of various elements about new smart printer that would make it easier and convenient for multiple users to acquire and use. For instance, the printer can be portable and have led lights to indicate the ongoing processes. For instance, if the printer indicates red lights, it would mean “incompatibility with the device”. If it indicates green, it would mean “compatibility”. The printer can also be designed in different sizes and colors that would be compatible with different types of users. Moreover, there would also be a variation in the amount of task that the printer can perform per unit time. It implies the need to have high capacity smart printers that would be printing many files, and these would mostly be designed for office and professional use. However, smaller printers would be meant for personal use. Different printers would also vary in price depending on their capacity and level of performance. According to Lamb et al. (2015), targeting and positioning enable a company to meet the diverse needs of varied consumers. Therefore, varied types of customers would benefit differently from this printing innovation.

A Brief Overview of the Marketing Mix for the New Product Offering

The marketing mix of “iPrint” will comprise all the 4Ps of the marketing mix. The “iPrint” itself will be the new product meant to satisfy consumer needs for convenient printing. The price of the product will be relatively higher than for the conventional printer, but it will be convenient and convincing enough to enable the company to achieve its profits as projected. Different “iPrints” with various performance capacities will be sold through diverse channels based on the needs. Such approach will take care of the “price” aspect of the marketing mix. The promotion will be done through both social and mass media. The product will be promoted alongside the promotion of other Apple goods. It will make it possible for product information to reach all the current and prospective customers. It will cater for the “promotion” aspect of the marketing mix. Finally, the product will be sold across the 25 countries where Apple currently operates, and efforts will be made to diversify or explore markets in other areas.

Sample Promotional Material (Advertisement) for the New Product

“iPrint” Innovative Printing at Your Fingertips

“Once again, Apple presents you with its new technology that will bring everlasting relief to all your printing needs Apple has always sought to make your life comfortable with high-tech products without leaving any problems unsolved. You will no longer have to overburden yourself with the conventional printer. By simply purchasing our uniquely designed iPrint, you can print anywhere, anytime. Compared to the benefits you will gain using “iPrint” what you have to pay in exchange is simply a great bargain on your side. We value our esteemed customers, as we continue bringing you the newest and the most innovative products on the planet.”

Analysis

How the New Product Offering Improves the SWOT

The “iPrint” will have multiple impacts on SWOT of Apple Inc.. It will positively influence the strengths of the company by introducing a new product line, which will supplement the existing products and make the company even stronger. In terms of innovation and high-tech products, Apple will be far much ahead of other brands. Such new product will present significant obstacle for Apple Inc.’s rivals, hence making it hard for companies like Google and Microsoft to catch up with the profit margin and competitiveness of the company. Similarly, all the customers who are up for convenience will have to turn away from other companies and seek Apple Inc.’s new product, which will eventually increase the competitiveness of the company.

Apart from that, there will be an improvement from the company’s current weaknesses to a better state. Current obstacles, such as smaller profit margins, will apparently improve. By improving a new product, this will obviously help solve the weakness of having a limited product line. The new product will, therefore, secure the company and reduce the adversities of possible risks.

Obviously, the new product is an opportunity for the company. Among all other opportunities that Apple Inc. can pursue, introducing “iPrint” to their market is a significant opportunity that promises corporate growth. It is upon the company to evaluate the effectiveness of this idea through research and development.

The major threat to Apple Inc. is its fierce competitors. If the company adopts this new product idea, there are higher chances that it will outdo most of its competitors. It will mean that other companies have to go the extra mile to come up with better products than ‘iPrint” to get to the level of Apple Inc.

How the “iPrint” Offering Effectively Creates New Targets

Such product is meant to increase the convenience of the incumbent users of Apple Inc.’s smartphones by availing a compatible printer that can print using Bluetooth mechanism. Due to its convenience, the customers using Apple Inc.’s phones will unanimously acquire the product offering. It means that buyers who are in need of such a convenient printer but do not have a compatible smartphone will opt for purchasing iPhone to be able to use the printer. In this way, Apple Inc. as a company will benefit through increased sales of smartphones as well as its new printer.

How the “iPrint” Offering Impacts the Firm’s Overall Strategy

Apple Inc.’s strategy is B2C marketing and substantial marketing to B2C marketing. Again, the corporation purposes to produce new products on a continuous and regular basis. It has formed the basis of the company’s strategy. Customers always anticipate new and more innovative products from Apple Inc. (Apple, 2017). The suggested “iPrint” being a new tech product, it will lead to the fulfillment of consumer expectations as well as positively affect the strategy of the company by introducing a new product line to its product portfolio. Further, according to Goyomali (2015), competition among technology-oriented companies is shaped by innovation. If Apple Inc.’s innovation can be able to embrace this principle, then the company can as well become more competitive in its market environment.

Conclusion

Generally, Apple Inc. is a high-tech company that takes the lead in terms of innovation worldwide. It is marked by a number of reasons, such as the continuous introduction of new products to the market, strong brand image, and effective use of the marketing mix. The strengths are attributable to the company’s supportive business model that continues to positively influence the profitability and competitiveness of the company. Although there are a few obstacles that face Apple Inc. and limit its capacity to achieve optimally, the company nevertheless has multiple opportunities, which it can pursue to achieve its projected goals and objectives. At the core of those opportunities, the introduction of a new product offering by the name “iPrint” would add up significantly to the effectiveness of the corporation’s overall strategy. “iPrint” is a proposed wireless printer that can connect with smartphones, especially Apple Inc.’s own smartphones, and produce a high-quality outcome. It will be beneficial for the SWOT of the company as well as the overall strategy.