Apple SMS Presentation

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  • No black no white
  • No blood no stain

  • Flesh ad bones
  • One real decision























  • Apple understands product portfolio management. As products mature and become cash cows, new stars are required. E.g. iPod now operates in mature market, i-Phone is the new Star.
  • The directional product matrix is used to measure the health of the market and Apple’s strength within the market vis-a-vis other competitors. Again, we can see when looking at Apples strengths the future shows a general migration to the left (higher business strengths to customers) and growth in computers and mobile phones.
  • Apple is unique. If you go into an Apple store and they do not think their MACs are right for you they will happy suggest you buy a Windows machine from another store. Apple deliberately targets the Innovators and Early adopters as they have a loyal price insensitive following who acts as advocates for Apple products. As products enter the mature phase, new variants are brought out to appeal to Innovators and Early Adopters whilst the mainstream buy the original product at a lower price.
  • okay Jody whats the message?



















Transcript

  • 1. Apple: The Marketing Story of the Decade
  • 2. The Marketing Story of the Decade… Apple seed The history Apple turnover Proof of success Apple Differentiated core Positioning 7P’s Marketing strategy End The Apple Core
  • 3. The Marketing Story of the Decade… 1975 Steve Jobs & Steve Wozniak Founded Apple http://windowtowallstreet.com/
  • 4. The Marketing Story of the Decade… 1980 Apple IPOs, the Nerds get Rich http://windowtowallstreet.com/
  • 5. The Marketing Story of the Decade… 1984 Apple Launches Macintosh (IBM = I Bought Macintosh) http://windowtowallstreet.com/
  • 6. The Marketing Story of the Decade… 1985 Steve Job Ousted from the Company he Founded Apple PC Market Share = 16% http://windowtowallstreet.com/
  • 7. The Marketing Story of the Decade… 1997 Apple Nearly Bankrupt, PC Market Share = 2%
  • 8. The Marketing Story of the Decade… 1998 Steve Jobs Culls Apple Organization & Signs a Deal with the Enemy http://valledosilicio.files.wordpress.com/2009/09/steve-jobs-
  • 9. The Marketing Story of the Decade… 2001 iPod Launched Apple Dreams “Digital Lifestyle
  • 10. The Marketing Story of the Decade… 2005 iPod Nano Introduced
  • 11. The Marketing Story of the Decade… 2007 iPhone Launched
  • 12. The Marketing Story of the Decade… 2007 Apple Computers to Apple Inc
  • 13. The Marketing Story of the Decade… 2003-2009 !""#$%&'#$(%)*+++,% !""#$%&'()*+%,-.../% !("%"""# !*%"""# !)%"""# !'"%"""# !(%"""# !&"%"""# !'%"""# !&%"""# !$"%"""# !$%"""# !"# !"# &""'# &""(# &"")# &""*# &""+# &"",# &""-# &""'# &""(# &"")# &""*# &""+# &"",# &""-#
  • 14. The Marketing Story of the Decade… 2003-2009 !""#$%&'#$(%)*+++,% !""#$%&'()*+%,-.../% X 500% X 1000% !("%"""# !*%"""# !)%"""# !'"%"""# !(%"""# !&"%"""# !'%"""# !&%"""# !$"%"""# !$%"""# !"# !"# &""'# &""(# &"")# &""*# &""+# &"",# &""-# &""'# &""(# &"")# &""*# &""+# &"",# &""-# X 600%
  • 15. The Marketing Story of the Decade… 2009 Steve Jobs Awarded “CEO of the Decade”
  • 16. Comparing Apple with apples The Marketing Story of the Decade… 2003-2009 Interbrand Global Brand Rankings Rank Brand value $mn 2009 2009: 20th Most Valuable Global Brand ($15bn) 2003: 50th Most Valuable Global Brand ($5bn)
  • 17. The Marketing Story of the Decade… ?2015
  • 18. The Marketing Story of the Decade…
  • 19. The Marketing Story of the Decade… http://farm3.static.flickr.com/
  • 20. The Marketing Story of the Decade…
  • 21. The Marketing Story of the Decade…
  • 22. The Marketing Story of the Decade… I’m a PC I’m a Mac
  • 23. The Marketing Story of the Decade!
  • 24. Apple and Lemons Does anyone own, or has owned, an Apple product?
  • 25. The Local View !"#$#"#%&#'()$(*#'+)%,#"'(-(.%+")/+0#,( !"#$%& Sample: N=70 ?@A356& B<(& ''(& )*& (Cranfield University +(& *%:%6":$4& >(& ,-.& and John Lewis Mall, =322& /(& MK) '>(& 01123& +(& 9":;& 01$2(()'$*3++'11%3)4$ .$45"6"7& '<(& '8(& $%" !"#$"%$&'"()'$ #" ✓9% of unprompted survey responders picked Apple as the top supplier of technology products ✓75% of prompted survey responders!" said Apple is very successful !" $" &" '" (" )" %" *" #" +" $!" *+,)'$"%$-./-$
  • 26. The Local’s said...
  • 27. The Local’s said... Customer Well integrated satisfaction and software and Fashionable hardware reliability I like the fact that I don’t have to start Apple tells people my day with what they need Ctrl+Alt+Del and then provides Innovativ e Good marketing; technology; unique
  • 28. Company’s Positioning Product (Innovation) Apple People (Customer Process
  • 29. Company’s Positioning Product (Innovation) Apple Sony People (Customer Process
  • 30. Brand Architecture Customer Environmental sustainability Customer Portfolio Network Reputation Experience Managemen Right Quality Purchase products experience Developers Simplicity Brand pillars Right Packaging Carriers customers Design Genius bar Right time Innovation Source: Knox et al. 2000, adapted by Green 3
  • 31. Strategy 7P’s of Marketing Apple’s overview 7P’s Product Accessible, innovative, simple to use, stylish, cool, emotional Price Premium price - differentiation Promotion Brand and brand response; user group word of mouth advocacy; media exploitation; Packaging, Placement Retailers, own stores, premium stores, online – easily accessible People Culture, Steve Jobs, training, explainers not sellers Process Segmentation strategy to innovators Secretive, aligned to values Physical White ear phone leads, bright colours, style, evidence packaging
  • 32. Product portfolio Product Profile !"#$%&'(&)*+,-./&0112&& (#$ %#$ )#$ *+,-$$ !"#$ +,./01234$$ &'#$ 5346/,74$$ 8/93.$:;4*<$0=-$ &%#$ .320/3-$$ !%#$ >,?@0.3A$>3.B*<3$$ *+9,=3$$ +3.*793.024$C$ D0.-@0.3$$ All products (except iPod) with sales >+30% (2007-08)
  • 33. Product Life-cycle Extension Extension Evolution Evolution Sep. 09 Sales Sep. 09 Sep. 08 Sep. 08 Sep. 07 Sep. 07 Sep. 06 Sep. 06 Sep. 05 Sep. 05 Feb. 05 Feb. 05 Feb. 04 04 Feb. Time
  • 34. BCG Matrix Market Share (Relative) High Low Stars ? Market Growth Rate High Cash Cows Dogs Low Source: BCG Matri
  • 35. Product development and pricing Apple’s Direction Policy Matrix Invest Grow Harvest Divest Source: Directional policy matrix for Apple products (Session 6-2009,Dr Stan Maklan)
  • 36. Product development and pricing Apple’s Direction Policy Matrix Invest Grow Home Networking Harvest Divest Source: Directional policy matrix for Apple products (Session 6-2009,Dr Stan Maklan)
  • 37. Customer Segmentation “There are some Apple customer strategy two fold: customers which we 1. Target innovators and early adopters 2. Drive through to early majority as choose not to serve.” quickly as possible through marketing Steve Jobs Early adopters Early majority Innovators Laggards majority Late Price Skimming Price Penetration
  • 38. It’s the Experience 4D experience Aesthetics 1D Perception 4D 2D 3D Functionality Experience
  • 39. Advertising !"#$%&'()%*+%',-./#%0)1223)-')!-44-5'0) 678) %!!!" $#!!" $!!!" #!!" !" &''()"" *+,-" ./01+2+3" 45" Source: http://www.adbrands.net/
  • 40. Apples advertising – buzz marketing and Word- Creating a hype of-mouth Buzz marketing Word-of- mouth
  • 41. Apples advertising – buzz marketing and Word- Creating a hype of-mouth Buzz marketing Word-of- mouth
  • 42. Apples advertising – buzz marketing and Word- Creating a hype of-mouth Buzz marketing Word-of- mouth
  • 43. Apples advertising – buzz marketing and Word- Creating a hype of-mouth Buzz marketing Word-of- mouth
  • 44. Life-style Advertising – media Apples advertising
  • 45. Life-style Advertising – media Apples advertising
  • 46. Life-style Advertising – media Apples advertising
  • 47. Life-style Advertising – media Apples advertising
  • 48. Threats and Weaknesses STRENGTHS WEAKNESSES Strong Brand Image Expensive (compared to competitors Robust Financial Performance e.g Dell, Sony) R&D leading to Innovations Repair and service issues Distinctive graphical user interface Product Recalls Ease of use, Customization Patent Infringement Reliability Steve Jobs Own operating system “Windows parallel” OPPORTUNITIES THREATS Home Entertainment - Apple TV Strong competitors e.g. Microsoft, Mobile phone business, Smartphones Sony Emerging Market e.g BRIC Uncertain Global conditions Microsoft Media Centre vs Front Row iPhone vs iPod Dependence on specific suppliers !"#$%&'()*+',,---./012&/)3$&.4&5,6"$)34,3++0&78$3427&9+&$1&4%&7+$&/&453:"4( 38
  • 49. Threats and Weaknesses STRENGTHS WEAKNESSES Strong Brand Image Expensive (compared to competitors Robust Financial Performance e.g Dell, Sony) R&D leading to Innovations Repair and service issues Distinctive graphical user interface Product Recalls Ease of use, Customization Patent Infringement Reliability Steve Jobs Own operating system “Windows parallel” OPPORTUNITIES THREATS Home Entertainment - Apple TV Strong competitors e.g. Microsoft, Mobile phone business, Smartphones Sony Emerging Market e.g BRIC Uncertain Global conditions Microsoft Media Centre vs Front Row iPhone vs iPod Dependence on specific suppliers !"#$%&'()*+',,---./012&/)3$&.4&5,6"$)34,3++0&78$3427&9+&$1&4%&7+$&/&453:"4( 38
  • 50. Q: So, why is Apple so successful? RETAIL PRODUCT LEADERS STAFF SERVICE PROPOSITIONS
  • 51. A: Focus Marketing strategy Technology Form factor Customer focus Digital world Sales channels
  • 52. A: Focus Marketing Apple’s values strategy lens Technology Quality Simplicit Form factor y Innovation Culture Customer focus Ease Digital world Design Sales channels THE APPLE DIFFERENCE
  • 53. A Man of few words... 41
  • 54. Thank you Everyone! Green 3 Atul, Budhi, Jody, Jonathan, Mario & Rogerio
  • 55. 43
  • 56. Oh and one more thing... 43
  • 57. Oh and one more thing... An Apple a Day keeps the Doctor away, so please have some apples on your way. 43