Apple
Apple
If we talk about the target market for Apple, its the upper and upper middle class, keeping in mind the fact that Apple is a premium brand. So the targetted segments can be seen in accordance with the 80/20 rule where you reap 80 percent of the revenues from the 20 percent of market.Moreover from a psychographic point of view, cutomers tend to but those brands whose personality matches with some of their own personality traits. Thus Apples brand personality and image is associated with sophistication and class, shaping the customers perception in a paticulay way.Marketing Mix ProductApple has a diversified product portfolio ranging from laptops and computers to iPhones, iPads, Servers, Wi-Fi based stations and other accessories. So, the product lines include both consumer and business products.PriceApple is a premium brand that does not attempt to compete on price. It uses Skimming and Preimuim pricing strategies. The high prices are justified by the high quality of Apple products as it utilizes More for More (more benefits for more price) strategies to position the brand image effectively in the minds of customers.PlaceApple, Inc Headquarters are located at is located at 1 Infinite Loop, Cupertino, California.Apple utilizes Exclusive distribution strategies.The Apple Consultants Network includes independent professional service providers and technology consulting firms that specialize in Apple and third-party solutions. Certified on Apple technologies, these providers deliver on-site technology services and support to home users and businesses of all sizes.Apple has over 200 state of the art retail stores worldwide including the US, UK and Canada. Apple recently opened a new retail store in Shanghai China.PromotionApple focuses mostly on the Pull strategy by generating demand in its target market through effective marketing strategies utilizing print and electronic media, as well as through spokespersons who promote Apple products in different conferences.Apple, Inc offers special discounts on refurbished MacIntosh computers, iPod Nanos, and the 8GB iPod Touch. In each case a 1 year warranty is included on the all products. Sales Promotion is another promotional strategy used by Apple. The online Apple Store offers free shipping for orders over $50 and also offers iTunes gift cards. Apple provides a $100 rebate when you purchase a Mac or specific printers from the online store.
SWOT AnalysisStrengths:Customer loyalty oath combined with expanding closed ecosystem: The major strength of Apple is its strong market position and consumer trustworthiness which raises due to “Apple’s ecosystem”, which in turn to increases Company’s competitive advantage. Apple has a full variety of software, products and apps which are interlinked and maintain each other. Leading innovator in mobile device technology: In 2012, 3rd time Apple was chosen as the most innovative company in the world.Strong financial performance: At the end of 2012, Apple held approximately $10,000,000,000 in cash. Company had no debts and the gross profit margin was also higher than its competitors (43.9%).Brand Reputation: Apple was the first most valuable brand in the world and its brand value was at $128 billion (2014), according to n article published in Daily Telegraph.State of Art Retail Stores: High quality customer experience is a key of Apple’s retail store by providing a direct speak to well-informed staff which increases brand awareness.Weaknesses:High price is the major weakness of Apple because there is a strong completion in market now, and the consumer of Apple products can easily obtain the similar function products by its competitors in a lower price.Decreasing market share is a major weakness of Apple which will ultimately result in loosing potential customers.Patent Infringements: Apple Company is often blamed by other companies of infringing their patents and it has lost some trials as well. These incidents can damage Apple’s reputation in market.