Strategy and Positioning Chesney Wade, Jesse Aranda, Juli Gibson, Vanessa Russell MKT421 April 6, 2015 Raj Bose Running head: STRATEGY AND POSITIONING 1 STRATEGY AND POSITIONING 2 Strategy and Positioning Apple is a well-known company that specializes in technology. They have created iMacs, iPhones, iPads, iPods, AppleTv, and most recently the AppleWatch (to be released on April 24, 2015). The company was created in a garage, and very quickly expanded. It has some major competition in the computer and cell phone markets at this current time with Windows (computer market), and Samsung, Blackberry, LG, Google, and Windows (phone companies). Apple was founded in 1976 by Steven Wozniak and Steven Jobs. “Wozniak had been dabbling in computer-design for some time when, in 1976, he designed what would become the Apple I. Jobs, who had an eye for the future, insisted that he and Wozniak try to sell the machine, and on April 1, 1976, Apple Computer was born” (Company History, 2015). “In May 2001, Steve Jobs announced that Apple would be opening a number of retail stores across America, selling not only Apple computers, but various third-party “digital lifestyle” products, such as mp3 players, digital still and video cameras, and PDAs” (Company History, 2015). “In April of 2003, Apple unveiled the iTunes Music Store, which would sell individual songs through the iTunes application, for 99 cents each” (Company History, 2015). “Announced in January 2007 and released the following June, the iPhone marked Apple's entry into the cellular phone marketplace. Described by Steve Jobs as "a wide-screen iPod with hand controls... a revolutionary mobile phone... [and] a breakthrough Internet communications device," the iPhone was the first Apple-branded consumer device to run on OS X” (iPhone, 2015). “The years of speculation ended in January 2010, when Apple announced the iPad. Based around a 9.7-inch LED-backlit multi-touch display, the iPad, finally, was more or less what the Rumor mill had predicted: a giant iPhone. It used a new version of the same iPhone OS that the then-current iPhone 3GS and iPod touch (Late 2009) used, and could run nearly all existing third-party iPhone applications” (iPad, 2015). The most recent market Apple is launching into watches. Their Apple Watches will be released in April. Apple is coming out with multiple designs of the watches: Apple Watch Sport, AppleWatch, and AppleWatch Edition. Each watch has a digital crown, force touch, heart rate sensor, accelerometer, and gyroscope, ambient light sensor, speaker and microphone, wifi, and Bluetooth. The AppleWatch Sport edition has a 38mm and 42mm case, Ion-X glass, retina display, and a composite back with a fluoroelastomer band. The AppleWatch has a 38mm and 42mm case, 316L Stainless Steel, Sapphire Crystal, and a ceramic back. The AppleWatch Edition has 38mm and 42mm case, 18-Karat gold, sapphire crystal, and a ceramic back. (Apple Watch, 2015).The Apple Watch was designed as.

1. Strategy and Positioning
Chesney Wade, Jesse Aranda, Juli Gibson, Vanessa Russell
MKT421
April 6, 2015
Raj Bose
Running head: STRATEGY AND POSITIONING
1
STRATEGY AND POSITIONING
2
Strategy and Positioning
Apple is a well-known company that specializes in technology.
They have created iMacs, iPhones, iPads, iPods, AppleTv, and
most recently the AppleWatch (to be released on April 24,
2015). The company was created in a garage, and very quickly
expanded. It has some major competition in the computer and
cell phone markets at this current time with Windows (computer
market), and Samsung, Blackberry, LG, Google, and Windows
(phone companies).
Apple was founded in 1976 by Steven Wozniak and Steven Jobs.
“Wozniak had been dabbling in computer-design for some time
when, in 1976, he designed what would become the Apple I.
Jobs, who had an eye for the future, insisted that he and
Wozniak try to sell the machine, and on April 1, 1976, Apple

2. Computer was born” (Company History, 2015). “In May 2001,
Steve Jobs announced that Apple would be opening a number of
retail stores across America, selling not only Apple computers,
but various third-party “digital lifestyle” products, such as mp3
players, digital still and video cameras, and PDAs” (Company
History, 2015). “In April of 2003, Apple unveiled the iTunes
Music Store, which would sell individual songs through the
iTunes application, for 99 cents each” (Company History,
2015). “Announced in January 2007 and released the following
June, the iPhone marked Apple's entry into the cellular phone
marketplace. Described by Steve Jobs as "a wide-screen iPod
with hand controls... a revolutionary mobile phone... [and] a
breakthrough Internet communications device," the iPhone was
the first Apple-branded consumer device to run on OS X”
(iPhone, 2015). “The years of speculation ended in January
2010, when Apple announced the iPad. Based around a 9.7-inch
LED-backlit multi-touch display, the iPad, finally, was more or
less what the Rumor mill had predicted: a giant iPhone. It used
a new version of the same iPhone OS that the then-
current iPhone 3GS and iPod touch (Late 2009) used, and could
run nearly all existing third-party iPhone applications” (iPad,
2015). The most recent market Apple is launching into watches.
Their Apple Watches will be released in April.
Apple is coming out with multiple designs of the watches:
Apple Watch Sport, AppleWatch, and AppleWatch Edition.
Each watch has a digital crown, force touch, heart rate sensor,
accelerometer, and gyroscope, ambient light sensor, speaker and
microphone, wifi, and Bluetooth. The AppleWatch Sport edition
has a 38mm and 42mm case, Ion-X glass, retina display, and a
composite back with a fluoroelastomer band. The AppleWatch
has a 38mm and 42mm case, 316L Stainless Steel, Sapphire
Crystal, and a ceramic back. The AppleWatch Edition has 38mm
and 42mm case, 18-Karat gold, sapphire crystal, and a ceramic
back. (Apple Watch, 2015).The Apple Watch was designed as
an extension of a person’s phone as well as a health and fitness
tracker such as FitBit and Jawbone’s UP. The watch will be able

3. to make and receive calls and text messages. “There is also a
new way to communicate called “digital touch,” which lets
people draw on the watch’s screen and send the image to
friends, almost like a Snapchat doodle” (5 things the Apple
Watch can do, and 5 things it can't, 2015). The watch will be
able to use the Siri feature by saying “Hey, Siri,” and will write
text messages, get directions, or perform searches like it does
on the iPhone or iPad. “The Watch’s Activity app will graph
data like calories burned or how long you’ve been standing up.
Its Workout app provides more granular information for specific
activities like running and cycling. Meanwhile, the companion
Health app on the iPhone will let people share the data with
third-party health and fitness apps” (5 things the Apple Watch
can do, and 5 things it can't, 2015). “One of the more intriguing
features is that the watch supports Apple Pay, a new system
intended to replace debit and credit cards for making purchases”
(5 things the Apple Watch can do, and 5 things it can't, 2015).
Apple is best known for its iPhones, but now Apple will tread
into the world of wearable computers. The wearable technology
market is a tough one, just ask Google. A SWOT analysis is a
vital tool in developing a marketing mix. In the analysis we will
identify the strengths that Apple has, the weaknesses that they
need to be aware of, opportunities that are available to them,
and threats that they will encounter with the Apple Watch
project.
The first strength is the size and ability of their retail group.
Apple has more than 35,000 retail sales employees in 431 stores
(Statista, 2015). This is a valuable strength since Apple will be
able to sell directly to consumers without any intermediaries,
reducing misinformation and competition at point-of-sale.
Customers who purchase Apple phones have the highest loyalty
than any other brand. According to “Statista” (2015), “90% of
iPhone users stick with the brand when purchasing another
phone.” This should support Apple Watch sales. When Google
Glass was launched, it did not have brand loyalty in the
technology market like Apple. Apple is a proven brand that

4. users are very loyal to.
Apple has a proven track record of large profit margins and in
the second quarter of 2014, Apple posted a gross profit margin
of 39.4 percent, (Luckerson, 2014). Apple’s latest offering of
the iPhone 6 has a large manufacturing profit margin of 69
percent, (Luckerson, 2014). With these types of profit margins
and the over $13 billion in cash Apple retains (Edwards, 2014),
they are positioned well to support a new product launch that
has proven difficult for others to do.
Traditional watch retailers are jewelry stores and department
stores. These retailers are much different than technology
retailers. It may prove difficult to tap into the traditional watch
retailer customer base. Samsung Gear has not been an
overwhelming success, and if Apple Watch is better, Apple can
gain leadership of the market.
Consumers that own Apple products are very loyal. This loyalty
has transferred to all Apple products. Everyone that owns an
iPhone, MacBook, iPad, or iPod, owns several Apple products
and is very loyal to them, replacing Apples for Apples.
We have all seen the lines of people standing in line on the first
day of sales for new Apple products. Even less than stellar
reviews can keep people from getting the newest product. If the
Apple Watch is a success then Apple products owner loyalty
will increase even more than it is today. In addition, Apple will
position itself to be the leader in the new wearable technology
market.
The low expectations of the Google Glass failure may reflect
poorly on Apple Watch sales. Apple may have to repair damage
caused by Google Glass. Samsung, Apple’s biggest rival, may
launch a new marketing campaign to affect the Apple Watch
launch negatively. There may not be a demand for the product.
The Samsung Watch may have gained too much market share to
allow for a profitable product.
Currently, there is one competitor for the Apple Watch, and that
is the Samsung Watch. Just as Apple and Samsung have been
battling for phone market share, they will soon be doing it in

5. the smart watch market. Google has also delved into the smart
watch market with its Android Wear operating system,
partnering with Motorola, Samsung, LG, and HTC, all also in
the phone business.
There will be a high amount of competitive rivalry. In addition
to Apple’s main competitor, Samsung, there will be new
additions to the market. Google has developed an operating
software called Android Wear and partnered with many of the
major phone manufacturers to develop more smart watches,
(Shanklin, 2014). This may result in a shorter lifespan of
products and a highly fragmented market. It will be difficult for
Apple Watch to garner market share and hold it with so many
new products entering during the next couple of years. Samsung
already has six different models to choose from (Shanklin,
2014). With all this competition prices may fall, putting price
pressures on the market suppliers.
There are few options to substitute for smart watches. There are
other types of wearable technology, but few have the number of
options or connectivity offered by the Apple Watch. The price
of FitBit and other similar products could cause consumers to
opt for the lower price products over the $200 - $400 Apple
Watch. Overall, the majority of the price constraints will come
from within the smart watch market.
Buyer power will be weak in the smart watch market. Just as in
the cellular phone market, the desire for buyers to have the
newest product, will reduce their power. Another contributing
factor is that the buyers are very different, and there are many.
This is most often true of consumer products.
Suppliers will be powerful within this market. The Apple Watch
is a very technical product and in my experience, it is very
expensive to switch suppliers for these types of products. There
are extensive testing and a rigorous set of expectations for
suppliers to become suppliers. Another concern will be the
availability and cost of raw materials.
There is a small threat of entry and many barriers to overcome
for new products. I assume that all of the current products are

6. proprietary and patented, requiring new entrants to develop new
technology, a very expensive endeavor, limiting the number of
organizations that could enter the market. Another barrier to
entry is that not many other companies have the foundation to
enter the market. The current smart watch producers are large
tech companies that have the cell phone foundation required to
supply a smart watch.
Target Market
When Apple was launched in 1977, Mike Markkula,
developed a three-point marketing philosophy that is still used
today. The three points are:
1. "Empathy – We will actually understand their [customer]
needs better than any other company.
2. Focus – In order to do a good job of the things we decide to
do, we must eliminate all of the unimportant opportunities.
3. Impute – People DO judge a book by its cover. We may have
the best product, the highest quality, the most useful software,
etc.; if we present them in a slipshod manner, they will be
perceived as slipshod; if we present them in a creative,
professional manner, we will impute the desired qualities.”
(Moorman, 2012)
By following these three, things, Apple has created a company
consumers can trust. Apple has also created a loyal customer
base because they were presenting themselves in a way
everyone can relate.
Geographic Division
Apple is a company that is known around the world.
Understanding social contrasts between nations could be critical
for business achievement; thus Apple will need to tailor their
methods as indicated by where customers are. Although Apple
does not do the typical type of marketing because their products
apply to all people everywhere.
Demographic Division
The demographics of Apple are a wide range of people. An
Apple customer is middle to an upper-income person who does

7. not mind spending a little more to get a better quality item.
Apple customers are people who enjoy the newest and latest
technology. Apple customers may also be a person that enjoys
music or a professional that likes media and design. There are
many Apple customers that like the professionalism of Apple
products and their customer service. Apple demographic is
massive because there many products, including the release of
the Apple Watch, appeal to everyone.
Psychographic
“Psychographics or lifestyle analysis is the analysis of a
person’s day-to-day pattern of living as expressed in that
person’s Activities, Interests, and Opinions—sometimes
referred to as AIOs.” (Perreault, Cannon, & McCarthy, 2011)
(Perreault, Cannon, & McCarthy, 2011, p. 156) The Apple
Watch acts just like an iPhone in that a person can answer a
call, track their activity every day, listen to music, look at their
calendar, check text messages and email, and it even has Google
Maps. There are many more things the Apple Watch can do
now, and they are adding more features in the future.
Behavioral
Behavioral marketing takes into consideration many things
such as; needs and benefits sought purchase relationship, and
brand familiarity to name a few. Apple Watch is going to be a
need for many because they simply want the newest product
from Apple. The other thing that many consumers are going to
look at is how is it going to benefit me? Many are going to
purchase the Apple Watch because they have an active and
ongoing relationship with Apple and like their products. Brand
familiarity is another reason consumers are going to buy the
Apple Watch. Behavioral marketing looks at the who, the whys,
and how is a product going to be beneficial to the consumer.
Target market portrayal
A target market is asking whom does Apple want to buy their
product? Apple target market is the whole world. Apple does,
however, have to change up the marketing styles for each
geographical area to satisfy the needs and wants of that

8. particular area. Apple caters to many different markets. There
is something for everyone. Apple’s market is the teenagers who
loves their technology use it for social media applications,
texting, and listening to music. The businessperson loves the
product because it is easy to use, and the can check email and
stay in touch with customers. The Apple Watch will meet all
their needs and more.
Needs That Cause Target Market to Buy
There are many things that cause a consumer to buy a
product. Apple customer buys their products because they are
loyal and love the Apple brand. Many people have an iPhone,
iPad, and or MacBook computers. In buying all Apple products,
people can communicate with one another. Buying all Apple
products, is also a logical decision for the consumer. This
allows them to have products that interact with one another and
run off on the same operating systems. The newest addition to
Apple product line, Apple Watch, fit in line with the rest of the
Apple products. The Apple Watch will fill the need of wanting
Apple products and the logical decision of communicating with
other Apple Products.
Written Positioning Statement
“For all consumers who enjoy cutting edge technology as easy
to access as the flick of one’s wrist, the Apple Watch is at the
top of its class in consumer electronics technology. From the
stay at home parent to the upper executive, the Apple Watch
provides a wearable and discrete tool to organize all aspects of
one’s busy life. Servicing needs such as keeping track of
appointments, meetings, fitness workouts, school functions, to
checking the time, weather, and stock quotes, the Apple Watch
keeps the customer in close and immediate contact with friends,
family and business associates via calls, emails or text
messages. Several sizes (38 mm and 42 mm) and styles (three
different models with six different finishes and watchband
colors) make the Apple Watch appealing not only to men but to
women as well. In offering all these functions Apple Watch
exceeds the competitions models available through companies

9. such as Samsung, Google, Motorola and Microsoft in not only
capability but in fashion as well,” (Mitroff & Ralph, 2014).
Efficacy of the Positioning Statement
The above positioning statement touches on five of the elements
needed for an effective positioning statement. It is delivered to
Apple’s target market (all consumers who enjoy cutting edge
technology) and makes clear the brand and product, as well as
the frame of reference (the category in which Apple competes,
consumer electronics technology). It also gives the points of
differentiation (describing why this product benefits customers
better than the competition’s products) and also gives reasons
for customers to believe our claims of product differentiation
(Stayman, 2015). The Apple Watch is more fashionable and
comfortable to wear for both men and women as opposed to
competitors products as well as provides more functions. The
positioning statement also points out what needs may drive
customers to purchase this product and how Apple meets those
needs with its new Watch product.
References:
Company History. (2015). Retrieved from http://apple-
history.com/h1
iPhone. (2015). Retrieved from http://apple-history.com/iphone
iPad. (2015). Retrieved from http://apple-history.com/ipad
Apple Watch. (2015). Retrieved from
http://www.apple.com/watch/
5 things the Apple Watch can do, and 5 things it
can't. (2015). Retrieved from
http://www.pcworld.com/article/2605140/5-things-the-apple-
watch-can-and-cant-do.html
Statista. (2015). Retrieved from http://Apple's revenue from
2004 to 2014. (2015). Retrieved from
http://www.statista.com/statistics/265125/total-net-sales-of-
apple-since-2004/

10. Statista. (2015). Retrieved from
http://www.statista.com/chart/2460/brand-retention-in-the-
smartphone-industry/
Edwards, J. (2014). Business Insider. Retrieved from
http://www.businessinsider.com/analysis-iphone-6-plus-costs-
prices-and-profits-2014-9
Luckerson, Victor. (2014, September). Apple’s $649 iPhone 6
Reportedly Costs $200 to Make. Time, 184(48), 85.
Shanklin, W. (2014). Apple Watch vs Samsung Gear
S. Retrieved from http://www.gizmag.com/apple-watch-vs-
samsung-gear-s/33960/
Moorman, C. (2012, 7 10). Why Apple Is a Greater Marketer.
Retrieved April 4, 2015, from Forbes:
http://www.forbes.com/sites/christinemoorman/2012/07/10/why-
apple-is-a-great-marketer/
Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2011). Basic
Marketing: A Marketing Strategy Planning Approach. New
Youk, NY, USA: McGraw-Hill Irwin.
Mitroff, S., & Ralph, N. (2014, September). Apple Watch vs.
Samsung Gear S, Motorola Moto
360, and Pebble Steel. CNET magazine.
Retrieved from http://www.cnet.com/news/apple-watch-vs-
samsung-gear-s-motorola-moto-360-pebble-steel/
Stayman, D. (2015). How to write market positioning
statements. Retrieved from
http://blog.ecornell.com/how-to-write-market-positioning-
statements/

11. Strategy and Positioning
Chesney Wade, Jesse Aranda, Juli Gibson, Vanessa Russell
MKT421
April 6, 2015
Raj Bose
Running head: STRATEGY AND POSITIONING
1
STRATEGY AND POSITIONING
2
Strategy and Positioning
Apple is a well-known company that specializes in technology.
They have created iMacs, iPhones, iPads, iPods, AppleTv, and
most recently the AppleWatch (to be released on April 24,
2015). The company was created in a garage, and very quickly
expanded. It has some major competition in the computer and
cell phone markets at this current time with Windows (computer
market), and Samsung, Blackberry, LG, Google, and Windows
(phone companies).
Apple was founded in 1976 by Steven Wozniak and Steven Jobs.
“Wozniak had been dabbling in computer-design for some time
when, in 1976, he designed what would become the Apple I.
Jobs, who had an eye for the future, insisted that he and

12. Wozniak try to sell the machine, and on April 1, 1976, Apple
Computer was born” (Company History, 2015). “In May 2001,
Steve Jobs announced that Apple would be opening a number of
retail stores across America, selling not only Apple computers,
but various third-party “digital lifestyle” products, such as mp3
players, digital still and video cameras, and PDAs” (Company
History, 2015). “In April of 2003, Apple unveiled the iTunes
Music Store, which would sell individual songs through the
iTunes application, for 99 cents each” (Company History,
2015). “Announced in January 2007 and released the following
June, the iPhone marked Apple's entry into the cellular phone
marketplace. Described by Steve Jobs as "a wide-screen iPod
with hand controls... a revolutionary mobile phone... [and] a
breakthrough Internet communications device," the iPhone was
the first Apple-branded consumer device to run on OS X”
(iPhone, 2015). “The years of speculation ended in January
2010, when Apple announced the iPad. Based around a 9.7-inch
LED-backlit multi-touch display, the iPad, finally, was more or
less what the Rumor mill had predicted: a giant iPhone. It used
a new version of the same iPhone OS that the then-
current iPhone 3GS and iPod touch (Late 2009) used, and could
run nearly all existing third-party iPhone applications” (iPad,
2015). The most recent market Apple is launching into watches.
Their Apple Watches will be released in April.
Apple is coming out with multiple designs of the watches:
Apple Watch Sport, AppleWatch, and AppleWatch Edition.
Each watch has a digital crown, force touch, heart rate sensor,
accelerometer, and gyroscope, ambient light sensor, speaker and
microphone, wifi, and Bluetooth. The AppleWatch Sport edition
has a 38mm and 42mm case, Ion-X glass, retina display, and a
composite back with a fluoroelastomer band. The AppleWatch
has a 38mm and 42mm case, 316L Stainless Steel, Sapphire
Crystal, and a ceramic back. The AppleWatch Edition has 38mm
and 42mm case, 18-Karat gold, sapphire crystal, and a ceramic
back. (Apple Watch, 2015).The Apple Watch was designed as
an extension of a person’s phone as well as a health and fitness

13. tracker such as FitBit and Jawbone’s UP. The watch will be able
to make and receive calls and text messages. “There is also a
new way to communicate called “digital touch,” which lets
people draw on the watch’s screen and send the image to
friends, almost like a Snapchat doodle” (5 things the Apple
Watch can do, and 5 things it can't, 2015). The watch will be
able to use the Siri feature by saying “Hey, Siri,” and will write
text messages, get directions, or perform searches like it does
on the iPhone or iPad. “The Watch’s Activity app will graph
data like calories burned or how long you’ve been standing up.
Its Workout app provides more granular information for specific
activities like running and cycling. Meanwhile, the companion
Health app on the iPhone will let people share the data with
third-party health and fitness apps” (5 things the Apple Watch
can do, and 5 things it can't, 2015). “One of the more intriguing
features is that the watch supports Apple Pay, a new system
intended to replace debit and credit cards for making purchases”
(5 things the Apple Watch can do, and 5 things it can't, 2015).
Apple is best known for its iPhones, but now Apple will tread
into the world of wearable computers. The wearable technology
market is a tough one, just ask Google. A SWOT analysis is a
vital tool in developing a marketing mix. In the analysis we will
identify the strengths that Apple has, the weaknesses that they
need to be aware of, opportunities that are available to them,
and threats that they will encounter with the Apple Watch
project.
The first strength is the size and ability of their retail group.
Apple has more than 35,000 retail sales employees in 431 stores
(Statista, 2015). This is a valuable strength since Apple will be
able to sell directly to consumers without any intermediaries,
reducing misinformation and competition at point-of-sale.
Customers who purchase Apple phones have the highest loyalty
than any other brand. According to “Statista” (2015), “90% of
iPhone users stick with the brand when purchasing another
phone.” This should support Apple Watch sales. When Google
Glass was launched, it did not have brand loyalty in the

14. technology market like Apple. Apple is a proven brand that
users are very loyal to.
Apple has a proven track record of large profit margins and in
the second quarter of 2014, Apple posted a gross profit margin
of 39.4 percent, (Luckerson, 2014). Apple’s latest offering of
the iPhone 6 has a large manufacturing profit margin of 69
percent, (Luckerson, 2014). With these types of profit margins
and the over $13 billion in cash Apple retains (Edwards, 2014),
they are positioned well to support a new product launch that
has proven difficult for others to do.
Traditional watch retailers are jewelry stores and department
stores. These retailers are much different than technology
retailers. It may prove difficult to tap into the traditional watch
retailer customer base. Samsung Gear has not been an
overwhelming success, and if Apple Watch is better, Apple can
gain leadership of the market.
Consumers that own Apple products are very loyal. This loyalty
has transferred to all Apple products. Everyone that owns an
iPhone, MacBook, iPad, or iPod, owns several Apple products
and is very loyal to them, replacing Apples for Apples.
We have all seen the lines of people standing in line on the first
day of sales for new Apple products. Even less than stellar
reviews can keep people from getting the newest product. If the
Apple Watch is a success then Apple products owner loyalty
will increase even more than it is today. In addition, Apple will
position itself to be the leader in the new wearable technology
market.
The low expectations of the Google Glass failure may reflect
poorly on Apple Watch sales. Apple may have to repair damage
caused by Google Glass. Samsung, Apple’s biggest rival, may
launch a new marketing campaign to affect the Apple Watch
launch negatively. There may not be a demand for the product.
The Samsung Watch may have gained too much market share to
allow for a profitable product.
Currently, there is one competitor for the Apple Watch, and that
is the Samsung Watch. Just as Apple and Samsung have been

15. battling for phone market share, they will soon be doing it in
the smart watch market. Google has also delved into the smart
watch market with its Android Wear operating system,
partnering with Motorola, Samsung, LG, and HTC, all also in
the phone business.
There will be a high amount of competitive rivalry. In addition
to Apple’s main competitor, Samsung, there will be new
additions to the market. Google has developed an operating
software called Android Wear and partnered with many of the
major phone manufacturers to develop more smart watches,
(Shanklin, 2014). This may result in a shorter lifespan of
products and a highly fragmented market. It will be difficult for
Apple Watch to garner market share and hold it with so many
new products entering during the next couple of years. Samsung
already has six different models to choose from (Shanklin,
2014). With all this competition prices may fall, putting price
pressures on the market suppliers.
There are few options to substitute for smart watches. There are
other types of wearable technology, but few have the number of
options or connectivity offered by the Apple Watch. The price
of FitBit and other similar products could cause consumers to
opt for the lower price products over the $200 - $400 Apple
Watch. Overall, the majority of the price constraints will come
from within the smart watch market.
Buyer power will be weak in the smart watch market. Just as in
the cellular phone market, the desire for buyers to have the
newest product, will reduce their power. Another contributing
factor is that the buyers are very different, and there are many.
This is most often true of consumer products.
Suppliers will be powerful within this market. The Apple Watch
is a very technical product and in my experience, it is very
expensive to switch suppliers for these types of products. There
are extensive testing and a rigorous set of expectations for
suppliers to become suppliers. Another concern will be the
availability and cost of raw materials.
There is a small threat of entry and many barriers to overcome

16. for new products. I assume that all of the current products are
proprietary and patented, requiring new entrants to develop new
technology, a very expensive endeavor, limiting the number of
organizations that could enter the market. Another barrier to
entry is that not many other companies have the foundation to
enter the market. The current smart watch producers are large
tech companies that have the cell phone foundation required to
supply a smart watch.
Target Market
When Apple was launched in 1977, Mike Markkula,
developed a three-point marketing philosophy that is still used
today. The three points are:
1. "Empathy – We will actually understand their [customer]
needs better than any other company.
2. Focus – In order to do a good job of the things we decide to
do, we must eliminate all of the unimportant opportunities.
3. Impute – People DO judge a book by its cover. We may have
the best product, the highest quality, the most useful software,
etc.; if we present them in a slipshod manner, they will be
perceived as slipshod; if we present them in a creative,
professional manner, we will impute the desired qualities.”
(Moorman, 2012)
By following these three, things, Apple has created a company
consumers can trust. Apple has also created a loyal customer
base because they were presenting themselves in a way
everyone can relate.
Geographic Division
Apple is a company that is known around the world.
Understanding social contrasts between nations could be critical
for business achievement; thus Apple will need to tailor their
methods as indicated by where customers are. Although Apple
does not do the typical type of marketing because their products
apply to all people everywhere.
Demographic Division
The demographics of Apple are a wide range of people. An

17. Apple customer is middle to an upper-income person who does
not mind spending a little more to get a better quality item.
Apple customers are people who enjoy the newest and latest
technology. Apple customers may also be a person that enjoys
music or a professional that likes media and design. There are
many Apple customers that like the professionalism of Apple
products and their customer service. Apple demographic is
massive because there many products, including the release of
the Apple Watch, appeal to everyone.
Psychographic
“Psychographics or lifestyle analysis is the analysis of a
person’s day-to-day pattern of living as expressed in that
person’s Activities, Interests, and Opinions—sometimes
referred to as AIOs.” (Perreault, Cannon, & McCarthy, 2011)
(Perreault, Cannon, & McCarthy, 2011, p. 156) The Apple
Watch acts just like an iPhone in that a person can answer a
call, track their activity every day, listen to music, look at their
calendar, check text messages and email, and it even has Google
Maps. There are many more things the Apple Watch can do
now, and they are adding more features in the future.
Behavioral
Behavioral marketing takes into consideration many things
such as; needs and benefits sought purchase relationship, and
brand familiarity to name a few. Apple Watch is going to be a
need for many because they simply want the newest product
from Apple. The other thing that many consumers are going to
look at is how is it going to benefit me? Many are going to
purchase the Apple Watch because they have an active and
ongoing relationship with Apple and like their products. Brand
familiarity is another reason consumers are going to buy the
Apple Watch. Behavioral marketing looks at the who, the whys,
and how is a product going to be beneficial to the consumer.
Target market portrayal
A target market is asking whom does Apple want to buy their
product? Apple target market is the whole world. Apple does,
however, have to change up the marketing styles for each

18. geographical area to satisfy the needs and wants of that
particular area. Apple caters to many different markets. There
is something for everyone. Apple’s market is the teenagers who
loves their technology use it for social media applications,
texting, and listening to music. The businessperson loves the
product because it is easy to use, and the can check email and
stay in touch with customers. The Apple Watch will meet all
their needs and more.
Needs That Cause Target Market to Buy
There are many things that cause a consumer to buy a
product. Apple customer buys their products because they are
loyal and love the Apple brand. Many people have an iPhone,
iPad, and or MacBook computers. In buying all Apple products,
people can communicate with one another. Buying all Apple
products, is also a logical decision for the consumer. This
allows them to have products that interact with one another and
run off on the same operating systems. The newest addition to
Apple product line, Apple Watch, fit in line with the rest of the
Apple products. The Apple Watch will fill the need of wanting
Apple products and the logical decision of communicating with
other Apple Products.
Written Positioning Statement
“For all consumers who enjoy cutting edge technology as easy
to access as the flick of one’s wrist, the Apple Watch is at the
top of its class in consumer electronics technology. From the
stay at home parent to the upper executive, the Apple Watch
provides a wearable and discrete tool to organize all aspects of
one’s busy life. Servicing needs such as keeping track of
appointments, meetings, fitness workouts, school functions, to
checking the time, weather, and stock quotes, the Apple Watch
keeps the customer in close and immediate contact with friends,
family and business associates via calls, emails or text
messages. Several sizes (38 mm and 42 mm) and styles (three
different models with six different finishes and watchband
colors) make the Apple Watch appealing not only to men but to
women as well. In offering all these functions Apple Watch

19. exceeds the competitions models available through companies
such as Samsung, Google, Motorola and Microsoft in not only
capability but in fashion as well,” (Mitroff & Ralph, 2014).
Efficacy of the Positioning Statement
The above positioning statement touches on five of the elements
needed for an effective positioning statement. It is delivered to
Apple’s target market (all consumers who enjoy cutting edge
technology) and makes clear the brand and product, as well as
the frame of reference (the category in which Apple competes,
consumer electronics technology). It also gives the points of
differentiation (describing why this product benefits customers
better than the competition’s products) and also gives reasons
for customers to believe our claims of product differentiation
(Stayman, 2015). The Apple Watch is more fashionable and
comfortable to wear for both men and women as opposed to
competitors products as well as provides more functions. The
positioning statement also points out what needs may drive
customers to purchase this product and how Apple meets those
needs with its new Watch product.
References:
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history.com/h1
iPhone. (2015). Retrieved from http://apple-history.com/iphone
iPad. (2015). Retrieved from http://apple-history.com/ipad
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http://www.apple.com/watch/
5 things the Apple Watch can do, and 5 things it
can't. (2015). Retrieved from
http://www.pcworld.com/article/2605140/5-things-the-apple-
watch-can-and-cant-do.html
Statista. (2015). Retrieved from http://Apple's revenue from
2004 to 2014. (2015). Retrieved from
http://www.statista.com/statistics/265125/total-net-sales-of-

20. apple-since-2004/
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http://www.forbes.com/sites/christinemoorman/2012/07/10/why-
apple-is-a-great-marketer/
Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2011). Basic
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Mitroff, S., & Ralph, N. (2014, September). Apple Watch vs.
Samsung Gear S, Motorola Moto
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samsung-gear-s-motorola-moto-360-pebble-steel/
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