The CMO Survey - Highlights and Insights Report - Spring 2024
Apple case-study
1. “Apple” a well-known company for computers
It turns its weakness and threats into opportunities and strengths
It creates an artificial demand for its products
It focuses only on specific areas of expertise
Their marketing strategies to outrage their rivals
2. Apple creates “Artificial demand” for its products
Competitors selling similar products at cheaper rates
Apple’s continuous strive for innovation might reach a stage of saturation
Its policy to target only the premium segment can prove to be a constraint
3. The eagerness and excitement to buy the product will fade some or the other time
and the wait for that product will be replaced by some other product
Competitive pricing is the best way of market infiltration that is adopted by rival
companies, so using same common outlets through whole sellers etc is not helping
apple’s sales.
Technological advancements can lead up to future progress but depending totally
on that handicaps other means and measures of progress.
The affluent class is apple’s targeted customer base but then the same class of
people are also the ones with most volatile taste and preference
4. They should create an artificial demand for the products only when they are newly
launched in the market
The product differentiation needs to be as such that it becomes more versatile from
its competitors in as many ways as possible.
Since the saturation point of innovation is inevitable, apple should continue to
concentrate more on stabilizing its market hold of present products.
They should come up with products targeted for the not so privileged class of
people , so that they can capture the market in developing nations too
5. Segmenting:
The company innovates through technological advancements keeping in mind only
the desires of the upper class of the society. It also concentrates only on the
developed countries and United States, Latin America and Europe in particular.
Targeting:
Apple targets only the upper class or the affluent class of the society.
Positioning:
Apple has positioned itself in the market as a company that produces luxury and
premium goods affordable only by affluent class of the society.
6. Product:
Apple Company has designed a range of products and services to meet the needs
of education customers.
Price:
Products are deliberately priced high to make it a premium product. Price
competition in the market for personal computers and related peripherals has been
particularly intense.
Promotion:
The Company distributes its products through wholesalers, resellers, national and
regional retailers, and cataloguers. Apple believes in maintaining a direct contact
with its targeted customers.
Place:
The company is concentrates more on developed countries and particularly on,
United States, Latin America, and Europe
7. “They should come up with products targeted for the not so privileged class of
people , so that they can capture the market in developing nations too”
Today we see an apple product only with a rich person and so the market for these
products is entirely concentrated on developed countries.
For apple to become a world-wide leader in the industry, it should produce by
keeping in mind the tastes and preferences of the people from different classes and
different regions.
Introducing affordable products for developing nations will solve the problem of
competitors selling cheap products and will be able to get more market share.
8. The prospect of affordability will tempt customer with low
income
9. “Apple” is a renowned company for computers
It should concentrate more on expanding the boundaries of its business
Apple should be a global player rather than concentrating on developed countries
alone
Its wise for apple not to concentrate too much on innovation now but rather
expand the market by keeping the costs low and keeping in mind the tastes and
preferences of all the people across globe.