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Apple: The Marketing Story of the Decade
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
The Marketing Story of the Decade…


              1975


Steve Jobs & Steve Wozniak Founded
               Apple
                                 http://windowtowallstreet.com/
The Marketing Story of the Decade…


             1980


  Apple IPOs, the Nerds get Rich
                                http://windowtowallstreet.com/
The Marketing Story of the Decade…


             1984


    Apple Launches Macintosh
    (IBM = I Bought Macintosh)
                                http://windowtowallstreet.com/
The Marketing Story of the Decade…


                1985


Steve Job Ousted from the Company he
               Founded
     Apple PC Market Share = 16%
                          http://windowtowallstreet.com/
The Marketing Story of the Decade…


             1997


Apple Nearly Bankrupt, PC Market
          Share = 2%
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-
The Marketing Story of the Decade…


             2001


         iPod Launched
 Apple Dreams “Digital Lifestyle
The Marketing Story of the Decade…


             2005


        iPod Nano Introduced
The Marketing Story of the Decade…


             2007


           iPhone Launched
The Marketing Story of the Decade…


             2007


  Apple Computers to Apple Inc
The Marketing Story of the Decade…


2003-2009
                   !""#$%&'#$(%)*+++,%                                    !""#$%&'()*+%,-.../%
 !("%"""#                                               !*%"""#
                                                        !)%"""#
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                                                        !&%"""#
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                                                        !$%"""#
      !"#                                                   !"#
            &""'# &""(# &"")# &""*# &""+# &"",# &""-#             &""'# &""(# &"")# &""*# &""+# &"",# &""-#
The Marketing Story of the Decade…


2003-2009
                   !""#$%&'#$(%)*+++,%                                    !""#$%&'()*+%,-.../%



      X 500% X 1000%
 !("%"""#                                               !*%"""#
                                                        !)%"""#
 !'"%"""#
                                                        !(%"""#
 !&"%"""#                                               !'%"""#
                                                        !&%"""#
 !$"%"""#
                                                        !$%"""#
      !"#                                                   !"#
            &""'# &""(# &"")# &""*# &""+# &"",# &""-#             &""'# &""(# &"")# &""*# &""+# &"",# &""-#




 X 600%
The Marketing Story of the Decade…


             2009


 Steve Jobs Awarded “CEO of the
             Decade”
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)
The Marketing Story of the Decade…



             ?2015
The Marketing Story of the Decade…
The Marketing Story of the Decade…




                          http://farm3.static.flickr.com/
The Marketing Story of the Decade…
The Marketing Story of the Decade…
The Marketing Story of the Decade…




          I’m a PC        I’m a Mac
The Marketing Story of the Decade!
Apple and Lemons


Does anyone own,
  or has owned,
an Apple product?
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                                                     !" $" &" '" (" )" %" *" #" +" $!"
                                                                                               *+,)'$"%$-./-$
The Local’s said...
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
Company’s Positioning

                    Product
                 (Innovation)

         Apple




       People
     (Customer                  Process
Company’s Positioning

                    Product
                 (Innovation)

         Apple
         Sony




       People
     (Customer                  Process
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
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
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)
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
BCG Matrix

                                       Market Share (Relative)
                                     High                  Low
                             Stars                                  ?
Market Growth Rate

                      High




                             Cash Cows                             Dogs
                      Low




                                                                 Source: BCG Matri
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)
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)
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
It’s the Experience


            4D experience
                  Aesthetics
                     1D
                          Perception
                              4D




           2D                3D
       Functionality      Experience
Advertising



                  !"#$%&'()%*+%',-./#%0)1223)-')!-44-5'0)
                                 678)
          %!!!"

          $#!!"

          $!!!"

           #!!"

             !"
                     &''()""    *+,-"    ./01+2+3"    45"




Source: http://www.adbrands.net/
Apples advertising – buzz marketing and Word-
Creating a hype
of-mouth




              Buzz
              marketing
              Word-of-
              mouth
Apples advertising – buzz marketing and Word-
Creating a hype
of-mouth




              Buzz
              marketing
              Word-of-
              mouth
Apples advertising – buzz marketing and Word-
Creating a hype
of-mouth




              Buzz
              marketing
              Word-of-
              mouth
Apples advertising – buzz marketing and Word-
Creating a hype
of-mouth




              Buzz
              marketing
              Word-of-
              mouth
Life-style Advertising – media
Apples advertising
Life-style Advertising – media
Apples advertising
Life-style Advertising – media
Apples advertising
Life-style Advertising – media
Apples advertising
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
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
Q: So, why is Apple so
   successful?
                                       RETAIL

PRODUCT



 LEADERS

                            STAFF




SERVICE

                                    PROPOSITIONS
A: Focus



 Marketing
  strategy

Technology


Form factor

 Customer
   focus

Digital world

    Sales
  channels
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
A Man of few words...




                        41
Thank you Everyone!

       Green 3
   Atul, Budhi, Jody,
  Jonathan, Mario &
        Rogerio
43
Oh and one more thing...




                           43
Oh and one more thing...




An Apple a Day keeps the Doctor
away, so please have some apples on
your way.                        43

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Apple SMS Presentation

  • 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 ($5bn)
  • 17. The Marketing Story of the Decade… ?2015
  • 18. The Marketing Story of the Decade…
  • 19. The Marketing Story of the Decade… http://farm3.static.flickr.com/
  • 20. The Marketing Story of the Decade…
  • 21. The Marketing Story of the Decade…
  • 22. The Marketing Story of the Decade… I’m a PC I’m a Mac
  • 23.
  • 24. The Marketing Story of the Decade!
  • 25. Apple and Lemons Does anyone own, or has owned, an Apple product?
  • 26. The Local View !"#$#"#%&#'()$(*#'+)%,#"'(-(.%+")/+0#,( !"#$%& 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 !" $" &" '" (" )" %" *" #" +" $!" *+,)'$"%$-./-$
  • 28. 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
  • 29. Company’s Positioning Product (Innovation) Apple People (Customer Process
  • 30. Company’s Positioning Product (Innovation) Apple Sony People (Customer Process
  • 31. 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
  • 32. 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
  • 33. 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)
  • 34. 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
  • 35. BCG Matrix Market Share (Relative) High Low Stars ? Market Growth Rate High Cash Cows Dogs Low Source: BCG Matri
  • 36. 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)
  • 37. 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)
  • 38. 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
  • 39. It’s the Experience 4D experience Aesthetics 1D Perception 4D 2D 3D Functionality Experience
  • 40. Advertising !"#$%&'()%*+%',-./#%0)1223)-')!-44-5'0) 678) %!!!" $#!!" $!!!" #!!" !" &''()"" *+,-" ./01+2+3" 45" Source: http://www.adbrands.net/
  • 41. Apples advertising – buzz marketing and Word- Creating a hype of-mouth Buzz marketing Word-of- mouth
  • 42. Apples advertising – buzz marketing and Word- Creating a hype of-mouth Buzz marketing Word-of- mouth
  • 43. Apples advertising – buzz marketing and Word- Creating a hype of-mouth Buzz marketing Word-of- mouth
  • 44. Apples advertising – buzz marketing and Word- Creating a hype of-mouth Buzz marketing Word-of- mouth
  • 45. Life-style Advertising – media Apples advertising
  • 46. Life-style Advertising – media Apples advertising
  • 47. Life-style Advertising – media Apples advertising
  • 48. Life-style Advertising – media Apples advertising
  • 49. Threats and Weaknesses STRENGTHS WEAKNESSES Strong Brand Image Expensive (compared to competitors Robust Financial Performance e.g Dell, Sony) R&D leading to Innovations Repair and service issues Distinctive graphical user interface Product Recalls Ease of use, Customization Patent Infringement Reliability Steve Jobs Own operating system “Windows parallel” OPPORTUNITIES THREATS Home Entertainment - Apple TV Strong competitors e.g. Microsoft, Mobile phone business, Smartphones Sony Emerging Market e.g BRIC Uncertain Global conditions Microsoft Media Centre vs Front Row iPhone vs iPod Dependence on specific suppliers !"#$%&'()*+',,---./012&/)3$&.4&5,6"$)34,3++0&78$3427&9+&$1&4%&7+$&/&453:"4( 38
  • 50. 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
  • 51. Q: So, why is Apple so successful? RETAIL PRODUCT LEADERS STAFF SERVICE PROPOSITIONS
  • 52. A: Focus Marketing strategy Technology Form factor Customer focus Digital world Sales channels
  • 53. 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
  • 54. A Man of few words... 41
  • 55. Thank you Everyone! Green 3 Atul, Budhi, Jody, Jonathan, Mario & Rogerio
  • 56. 43
  • 57. Oh and one more thing... 43
  • 58. Oh and one more thing... An Apple a Day keeps the Doctor away, so please have some apples on your way. 43

Editor's Notes

  1. No black no white
  2. No blood no stain
  3. Flesh ad bones
  4. One real decision
  5. 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.
  6. The directional product matrix is used to measure the health of the market and Apple&amp;#x2019;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.
  7. 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.
  8. okay Jody whats the message?