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Apple Case Study
This document provides an analysis of Apple including external factors like competitors and consumers, internal factors like history and leadership, and marketing theories. It examines Apple's positioning targeting consumers across generations and genders. SWOT and 4P analyses are presented. Theories around innovation diffusion, social judgment, and branding are applied. Apple's strong scores on customer satisfaction metrics are highlighted.
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Apple Case Study
- 1. Sung Hyun Lee∙Meherun Binte ∙ Seung Woo Chae
- 2. Index • Introduction ExternalAnalysis Internal Analysis Theories Models Conclusion
- 3. Introduction External Analysis Internal Analysis Theories Models Conclusion APPLE, the name of Innovation
- 4. Introduction External Analysis Internal Analysis Theories Models Conclusion The early Years Without Steve Jobs Open New Era Established by Ste ve Jobs, Steve Woz niak, and Ronald Wa yne Steve Jobs Left 1976 1984 1986 1999 2001 2007 2010-2011 First Macintosh Steve Jobs Back
- 5. Introduction External Analysis Internal Analysis Theories Models Conclusion Consumer Analysis • Innovators and early adopters • both men and women aged 18-34 • technology enthusiasts • not afraid to try new thing • People who use cell phones for work • highly educated and will respond well to detailed information in the advertising • Cell phones are becoming a necessity for the age group • Want products that are affordable, compact and stylish
- 6. Introduction External Analysis Internal Analysis Theories Models Conclusion Competitor Analysis iPhone differentiation 10 Score (10 = highest) 8 iPhone 6 Blackberry Pearl 4 Motorola 2 RAZR 0 y le e l en g er lity e ai lit bl sin ab us ay Em bi re na na rd ila ow Sc Pl of t io io fo va br sy ia sh Af nc a ed Ea eb Fa fu er M W PC rri Ca Factors of Competition
- 7. Introduction External Analysis Internal Analysis Theories Models Conclusion Target, segmentation and Positioning Analysis • Three pillars as market segments to target Staying- Convenience Entertainment connected • Age 25-54 • Age 18-25 • Age 20-40 • Primarily • Mixed • Primarily male Gender Female • Higher • Budgeting • Hold Family salaries Skills Dear • Multitaskers • Trendsetters • Tech Savvy • On-the-go • Educated • First to go • Goal home Oriented
- 8. Introduction External Analysis Internal Analysis Theories Models Conclusion Market Positioning Leaders Up-and-Coming/Niche RIM Decling Leaders Apple Palm Samsung New/Undeveloped Eroded/Commoditized HTC Sony Nokia Ericsson DELL HP
- 9. Introduction External Analysis Internal Analysis Theories Models Conclusion 4P Analysis • Pricing – Skimming strategy • Set the base model at a cheap price of $349 • A more advanced model for $399 – Special limited edition beatles iPhone for special prices – Lower our prices to ensure that market dominance • Product – Full year warranty along with an optional three-year Apple Care warranty – Same taste as all other Apple products – Special edition version to be launched (Beatles edition) – Launching a cheaper version in 2008 with less advanced features along with a more advanced version for professional use – Adding the following features to the iphone(large disk storage capacity, lower weight, thinner device, long battery life, 4G wireless, GPS and improved camera)
- 10. Introduction External Analysis Internal Analysis Theories Models Conclusion 4P Analysis • Place – Major retailer – Online, showrooms, cell phone providers – Apple stores , website – Eye catching displays – iPhone on display a full month before its worldwide release • Promotions – Integrate Apple message
- 11. Introduction External Analysis Internal Analysis Theories Models Conclusion SWOT Analysis strengths weaknesses Style/Brand Sensors No UMTS High price / high end User base Limited distribution channels First mover Rich UI Unsafe for Hype Missing features corporate use? Migrate people to Apple Similar devices Port existing apps Highly developed market New social device Distribute iTunes content opportunities threats
- 12. Introduction External Analysis Internal Analysis Theories Models Conclusion Competitor Analysis • Death Grip Problem - Apple face to a quality problem when they launched iPhone4, even people always think Apple’s quality is better than others - Therefore, customers feel Dissonance, so many customers blame Apple more harshly and discouraged with big contrast. If there’s no expectation about iPhone, maybe Apple didn’t face that big criticism. However, the loyal customers of Apple Even this controversy happened, some customers don’t care and blame about the Death Grip problem. Because, even their satisfaction didn’t reach to 100%, when it reach into the latitude of acceptance, they just perceived it as 100% (Assimilation-Contrast Theory)
- 13. Introduction External Analysis Internal Analysis Theories Models Conclusion Application of theories Apple’s Customers evaluate Positioning worse than real problem Contrast Theory General Negativity Theory Customers’ Dissonance! Expectation Customers evaluate better than real problem Antenna Assimilation-Contrast Theory Quality Social Judgment Theory Problem
- 14. Introduction External Analysis Internal Analysis Theories Models Conclusion Fishbein Model for iPhone Apple’s Customers evaluate Positioning worse than real problem Contrast Theory General Negativity Theory Customers’ Dissonance! Expectation Customers evaluate better than real problem Antenna Assimilation-Contrast Theory Quality Social Judgment Theory Problem
- 15. Introduction External Analysis Internal Analysis Theories Models Conclusion Diffusion of Innovation • Theory: It is a theory to explain how, why, and at what rate new ideas and technology spread through cultures
- 16. Introduction External Analysis Internal Analysis Theories Models Conclusion Diffusion of Innovation How did iPhone overcome th e chasm? Media Mix Point of Cha sm
- 17. Introduction External Analysis Internal Analysis Theories Models Conclusion Diffusion of Innovation • Five influencing factors for the adoption (Roger’s 5 factors) – Relative advantage • Faster, more powerful and useful • Full size screen • Fast and reliable Internet access • Outlook of the iPhone • Referrals, advices, word of mouth and brand loyalty. – Compatibility • Replace of many technologies that participants. • Not disruptive for replacing the old phone
- 18. Introduction External Analysis Internal Analysis Theories Models Conclusion Diffusion of Innovation – Complexity • User-friendly • Already familiar interface with ipad. • Simple design – Trialability • Using friend’s iPhone – any prejudices and worries soon disappeared. – Reinforce participants’ purchasing decision. – Observability • Led some participants to actively seek more information regarding the iPhone – Apple homepage and user forums – Apple store and other stocked place – Promotional ads and user videos on youtube
- 19. Introduction External Analysis Internal Analysis Theories Models Conclusion Disposition Theory People always think everything about Apple is originated from Steve Jobs’ decision. So, even his personal thing is deeply concerned with Apple’s marketing, like his health. Steve Jobs is not just a CEO, but Apple’s image, itself.
- 20. Introduction Branding External Analysis InternallAnalysis Theories Models Conclusion Branding “With quarterly revenue growth of 83 percent and profit growth of 95 percent, we’re firing on all cylinders,” “We will continue to innovate on all fronts thro ughout the remainder of the year.” Steve Jobs, Apple’s CEO
- 21. Introduction External Analysis Internal Analysis Theories Models Conclusion ACSI Model The American Customer Satisfaction Index (ACSI) is an economic indicator that measures the satisfaction of consume rs across the U.S. economy. The ACSI interviews about 80,000 Americans annually and asks about their satisfaction wit h the goods and services they have consumed.
- 22. Introduction External Analysis Internal Analysis Theories Models Conclusion Apple got a great score in ‘ACSI’ Average(78) For the seventh straight year, Apple outranked other PC makers scoring better than ever a t 86 "points" on a 100-point scale. This is because of iPhone and iPad.
- 23. III.Marketing Strategy Analysis TechnologyAcceptance Model Tech Innovation Efficiency Innovation – Apple’s user experience // 애플 둘 다 직관적 UX 등 모두 TAM 적용 가능 .
- 24. References • http://en.wikipedia.org/wiki/Apple_inc IM 513 Marketing Analysis & Strategy 24 Spring Semester, 2011
- 25. A Q ny uest i ons ?