Presentation on "Apple's marketing strategies".

1. GROUP-9

2. History of Apple Inc.
• Apple Inc. formerly Apple Computer, Inc.
• Steve Jobs and Steve Wozniak founded Apple Computer on April 1, 1976 and
incorporated the company on January 3, 1977
• Manufacturing king of personal computer (1977 – 1990)
• Success with Macintosh (1984 – 1991)
• Fall of Apple (Early – mid, 1990s)
• Apple’s Comeback (1997 – 2001) – Mac Os X, iPod, iTunes Store, Intel Transition

4. Apple Inc. – Vision & Mission
• Apple, Inc.’s vision is: “Apple is committed to bringing the best personal computing
experience to students, educators, creative professionals and consumers around the world
through its innovative hardware, software and Internet offerings” (Apple, Inc., 2012)
• Apple, Inc.’s mission is: Apple designs Macs, the best personal computers in the world, along
with OS X, iLife, iWork and professional software. Apple leads the digital music revolution
with its iPods and iTunes online store. Apple has reinvented the cell phone with its
revolutionary iPhone and App Store, and is defining the future of mobile media and computing
devices with iPad

5. Apple Inc. – Values
• We believe that we’re on the face of the Earth to make great products.
• We believe in the simple, not the complex.
• We believe that we need to own and control the primary technologies behind the products we make.
• We participate only in markets where we can make a significant contribution.
• We believe in saying no to thousands of projects so that we can really focus on the few that are truly
important and meaningful to us.
• We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a
way that others cannot.
• We don’t settle for anything less than excellence in every group in the company, and we have the
self-honesty to admit when we’re wrong and courage to change.

7. Apple’s iPod
• October 2001 – Launch of iPod
• as a 5-gigabyte player capable of storing around
1000 songs
• Product Design
• Product Platform
• External and Internal Coordination
• Speed to Market
• Advertisement and Publicity

8. Sale Volume, Market Share And Profitability of Apple Ipod
• December 2003 - Apple has sold 1.3 million iPods so far.
• January 2004 - Apple has 31% share in the digital music player market & Apple boasts a net profit for 1st quarter of
$63 million.
• February 2004 - iTunes is the most popular music-download store.
• April 2004 - Apple reports a net profit of $46 million in the 2nd quarter of 2004 and has sold more than 70 million
songs via iTunes in its first year (Mintel 2005). iTunes controls 70% of the music-download business (Quittner 2004).
• July 2004 - Over 3 million people now own iPods (Stone et al. 2004).
• October 2004 - Apple announced a 44% year on year increase in profit to $106 million. This is due to a 344% increase
in sales from iPods and a 600% increase in sales from iTunes (Bulik 2004) and has 66% share of the market for digital
music players
• December 2004 - 65% of all MP3 players are iPods and 92% of all hard drive-based music players are iPods (Vence
2004).

10. Apple’s iPhone
• The first-generation iPhone was announced by Apple co-founder Steve Jobs on January 9, 2007
• The Product and Target Market
• The Agreement with AT&T and Other Strategic Partners
• Differentiation from Competitors
• Apple upsets early adopters and innovators
• Promotional Outlays
• Distribution Changes
• The iPhone goes Global

11. Apple’s MacBook
• The MacBook is a brand of Macintosh laptop computers designed and marketed by Apple Inc. that use
Apple's macOS operating system.
• It replaced the PowerBook and iBook brands during the Mac transition to Intel processors, announced in
2005.
• The current lineup consists of the MacBook Air (2008–present) and the MacBook Pro (2006–present).
• On November 10, 2020, Apple announced models of the MacBook Air and MacBook Pro incorporating
the new Apple M1 system on a chip.

12. Apple’s Marketing Mix : Products
• Macintosh
• iPod
• iPhone
• iPad
• Apple Watch and Apple TV
• Apple Software

13. Apple’s Marketing Mix : Price
• Apple is using a Skimming and Premium Pricing Strategy
• Apple uses premium pricing for their products. Because of the innovation and technology in
their products customers are fine with paying a higher price compared to some other brands.
Apple typically doesn’t have sales on their products and the price is usually standard and
doesn’t drop until a new model is released. This premium pricing strategy attracts middle to
upper-class consumers and helps maintain Apple’s high-end image.
• Focus of Apple:
 Offer a small number of products
 Focus on the high end
 Give priority to profits over market share
 Create a halo effect that makes people starve for new Apple products

14. Apple’s Marketing Mix : Place
• Apple is using a selective distribution Strategy, which involves some
degree of exclusivity that could limit market reach. Apple authorized
resellers to ensure control over this component of the marketing mix.
• Where you can find Apple products:
• Apple Stores
• Online Apple Store & App Store
• Authorized Retailers
• Telecom Companies (Selling of iPhone units by Verizon, Sprint)
• Fulfilment Services (Third Parties, like Amazon, Ebay, etc.)

16. Apple’s Marketing Mix : Promotion
• The communication landscape is constantly changing. Promotion
means activities that communicate the merits of the Product to reach
the targeted customers and persuade them to buy the Product.
• Apple is using Promotion through:
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations

20. People as Part of the Marketing Mix
• People are the most important element in marketing
• Importance of hiring and training right people
• Apple has effective technical Support Teams
• Apple promotes an engaging, relaxed and fun culture

21. Apple’s Marketing Mix : Processes
• Both in-store and online delivery is available for customers
• Expansion of distribution channels – Addition of Walmart
• New customer conversion
• Securing customer loyalty through a corporate emphasis on customer
service
• Supply Chain Management of Apple – Customer comes first, Simplify
Products and Process, Enhance Relationship, and Prioritize Action

22. Apple’s Marketing Mix : Physical Evidence
• Apple produces Electronic Hardware (IoT)
• Produces Computer Software
• Apple is a digital distributor of media content:
• Apple has retail stores, the online store and app store
• Apple uses bright colours
• Style is very important for Apple
• The Logo of Apple has evolved over the years

23. Apple Inc. – Marketing & Promotional Strategies
• Push and Pull Strategy
• Segmentation targeting and positioning of the brand
• Tagline – “Think Different”
• Distribution
• Brand Equity
• Elegant and Unique Advertisement

25. BCG matrix of Apple
Stars
iPad
iBooks
Question
Mark
APPLE TV
CASH COW
iPhone
MacBook
iWatch
iTunes
Dogs
iPod

26. Apple – SWOT Analysis
Strengths: Weaknesses
• Brand Identity
• Innovative Products
• Loyal Customer Base
• Brand Value and Reputation
• Marketing and Advertising
• Distribution Chain
• Consumer Focus
• Proficient Research
• High – Profit Margins
• Incompatibility
• Consumer Expectations
• Dependency on other few products
• Limited Distribution Network
• Premium Pricing
• Lack of Competition
• Lack of Marketing and Promotions

27. Opportunities: Threats:
• Steady Customer Growth
• Qualified Professionals
• Lack of Green Technology
• Smart Wearable Technology
• Use of AI
• Expansion of Distribution Networks
• Electric based Cars and/or Bikes
• Counterfeit Products
• Increased Competition
• Lawsuits
• Market Penetration

28. Reason and Motive behind Apple’s Innovation
• Steve Jobs – Leadership
• Identify quickly the increasing marketing opportunities
• Positive attitude
• Ready to take up any risks and maintain effective teams
• Well organised Market Research and identify customer demands
• “Products and people” – Apple’s Eight Rules of Innovation
• Continuous monitoring the activities of their competitors (Such as, HTC,
Samsung, Google, Microsoft etc.).

29. Importance of iPod to current success, and significance of the
iPhone and iPad launches to new-product development strategy
• The iPod was responsible for paving the way for other Apple devises and was
the first indicator towards Apple's success.
• HALO Effect
• With its initial launch the company followed the same new product
development process that it still uses for products like iPhone and iPad.
• Strategic Partners
• Differentiation from Competitors
• Initial success and high customer expectation leads to more investment in R&D

30. What’s next for Apple?
• Augmented Reality
• Holographic Images
• Electric Motor Vehicles
• AI Based Cars
• LIDAR

31. Learning from Apple Inc.
• Innovation pave the path to success
• Rethink the Need for Advertising
• Avoid Price Wars by Emphasizing Your Unique Value Proposition
• Keep Your Marketing and Your Products Simple
• Know Your Audience and Talk to Them in Their Language
• Design a Better Customer Experience
• Aim at Your Prospects’ Emotions
• Build a Community of Users or Customer

33. Q&A