Tài liệu
Tài liệu
Tài liệu
APPLE INC.
Product: Ipad
Group 1
1. Marketing Environment
1. Micro Environment
Apple Inc Background:
Apple Inc. (formerly Apple Computer Inc.) is an American computer and consumer
electronics company led by CEO Tim Cook which is famous for creating the iPhone, iPad,
Audio Items, and Macintosh computers. Apple is one of the largest companies globally with a
market cap of over 2 trillion dollars and a revenue of over 400 billion dollars.
Apple successfully positioned its products to gain the lead in the marketplace. They did not
create personal computers, graphical user interfaces (GUIs), mp3 players, smartphones,
smartwatches, and tablets. Instead, they made some of the first versions of those items that
were well-designed, developed, and simple to use, encouraging widespread market adoption.
To achieve this greatness though, Apple doesn't depend on its own manufacturing alone. It
has over 200 suppliers that it relies on for procuring components for assembly.
Suppliers Relationship:
Apple is known to maintain one of the best-managed supply chains in the world. Using its
stature and global reach, the tech giant is able to demand high-quality products and impose
stricter terms on its suppliers.
There are many providers like these who are ready to follow the rules imposed by Apple.
Additionally, by contracting out its manufacturing and supply-chain functions, Apple is free
to focus on creating fantastic products with extensive functionality.
Typical Suppliers: Foxcon, Wistron, Pegatron, Goertek, Luxshare, Qualcomm, Intel,
Samsung…
Apple’s Marketing Intermediaries
Apple Authorised Reseller (AAR): Apple has 518 stores in 25 countries and
six continents. In addition, there are over a thousand ARRs. Their specific
support and return policies vary based on the store's policy. Apple has many
potential physical contributions firms including warehouses for stocking and
Sufficient transportation supported in all countries available.
Cooperating with a large number of Financial companies, thus creating Apple
Financial Services which can provide schools or universities with financing
and refresh options to support their teaching and learning goals as well as help
your business plan for the long term, and at the same time make short-term
changes to support company goals.
Apple’s Market and Publics:
Apple's target audience consists of middle-class and upper-class users who can pay higher
for products that provide them with an incredible user experience. This means that these
users have a higher disposable income and are willing to pay more for as high-priced
products as Apple's
Costumers Market:
Apple has focused on leveraging its valuable customer base to increase the demand for the
iPad. They have released multiple versions of the iPad to meet the needs of their customers,
ranging
Business Market: Apple makes Business Better!
Apple hardware, software, and services work together to give your employees the power and
flexibility to do whatever needs doing — whether you’re running a startup, scale-up, or
global enterprise.
Reseller Market:
This helps Apple reach a wide range of important new customers - a great contribution to the
marketing strategy.
Institutional Market:
Institutional marketing strengthens the bond between the audience and the brand by valuing
the brand based on a value positioning.
Government Market:
The Apple Store for Government is a convenient way to purchase Mac and iOS devices, as
well as third-party products at special government pricing.
International Market:
Differentiation is used by Apple to create offerings tailored to specific markets overseas, and
to stand out from the competition internationally.
Financial Market:
There are many kinds of payment provided by financial firms to support those who want to
purchase Apple’s Products.
2. Macro Environment
Demographic:
Apple products are advertised as unique, innovative, and luxurious. These features made
Apple one of the leading companies as it’s becoming a symbol of high social status and more
desirable to its consumers. The majority of the people living in third-world countries do not
have the suite income to afford an Apple device, leaving Apple’s products to be targeted to
more established countries.
Geographic shift:
During the covid epidemic in 2020-2022, people changed their working environment from
offices to remote working at home, through online services, this was an opportunity for Apple
to take into account to create new devices, and services to adapt to the new way of working.
Economic:
In 2021, the average spending on electronics and telecommunications technology in Vietnam
is 122 USD (2.8 million VND). This level is similar to Thailand, higher than Indonesia and
lower than Singapore. Vietnamese people are also in the group of consumers with selected
filters, preferring new and modern technology."
Technological:
Innovation has led to companies earning a lot more than others who just relied on information
technology. Apple has always been a trendsetter in the consumer electronics business because
of its innovative ideas.
Political:
Tax policies, trade restrictions, and foreign trade policies are variedly defined in different
countries. Specifically in Vietnam. the related policy seems to be neutral for Apple, however,
major retail systems in Vietnam have recorded that iPhone is an item that brings in the largest
revenues, this performance shows the aesthetic of Vietnamese towards Apple’s Products.
Privacy:
Apple sticks closely to their and the government’s policies of privacy, creating a good image
for the company, they even went as far as refusing to unlock an iPhone for the FBI in 2020,
making for a controversial yet clever piece of marketing material, stating “Apple has never
created a backdoor or master key to any of our products or services. We have also never
allowed any government direct access to Apple servers. And we never will.”
Cultural:
Social and cultural factors focus on the factors such as demographic characteristics, cultural
differences, and the influence of consumerism on marketing
Natural:
Lack of resources to produce transistors (an important component of Apple’s chip) from
technology suppliers. Apple’s commitment to becoming carbon neutral by 2030 drives
everything Apple do. Every Apple product will be made with clean energy and even more
recycled and renewable materials. Because the earth won’t wait, and neither will we.
Apple’s Strengths
1. The Most Valuable Brand - Globally Iconic - Top Tech - Brand of
Choice
With a brand worth of $408 billion, Apple has been named as the most valuable brand for the
ninth consecutive year by Interbrand. Apple is one of the most reliable manufacturers of
customized advanced computers and smart technology products since it has access to cutting-
edge equipment. Every product that Apple introduce is some of the most innovative that
changed the world, and they're determined to build and craft better, more proficient
technology devices.
It isn’t big news that Apple is a favorable brand in corporate offices, especially among
creative professionals. Apple offers top-quality technology solutions for every corporation’s
needs. Professionals prefer high-performance technology such as Mac Pro or iMacs for visual
design, animation, video production, and other creative work.
2. Proficient Research & Development - Sustainability - Expansion in
services
Apple puts dedication into its product designs. Careful study and extensive research is
performed to help understand customer needs and market trends. Apple continues to invest a
substantial amount of money in research and development for future growth and
a competitive edge. For example, Apple spends $26.25 Billion (about 7%) of its revenue in
R&D.
Liam is an iPhone recycling robot that breaks down and dissects an iPhone. It strips them all
the way down to a single bolt. Most parts of an iPhone can be reused. Liam is designed to
yield as many reusable parts as possible. These reusable parts are then categorized and safely
stored so they can be used for new manufacturing.
Apple has been expanding its services portfolio for many years. Apple’s services include
digital content stores, streaming services, iCloud, AppleCare, and payment services etc.
Recently, Apple has introduced many new services, such as Apple TV+ , Apple news+ ,
Apple Card (credit card services), Apple Arcade (game subscription), and Apple Fitness+ etc.
Apple’s Weaknesses
1. High Priced Products - Limited Advertisement & Promotions
Apple’s products can be considered a luxury due to their premium prices. The products are
priced for middle and high-income consumers. Low-Income consumers can’t simply afford
Apple products. Due to their premium pricing, only middle or high-earning individuals can
afford their products.
Apple has solidified their grounds by establishing loyal customers, even with limited
advertising resources. Apple marketing relies heavily on its iconic and flagship retail stores.
Because of their success, Apple does not feel the need to have excessive spending towards
advertisement in comparison to other big brands such as P&G, Pepsi, Verizon, and Coca
Cola etc.
2. Entering into Area of Non-Competency
Apple is rapidly expanding into new services such as video content streaming, game
streaming, payment services (credit cards) – competing with the dominant players such
as Netflix, Disney, Citi, Chase, Paypal, etc. They might be entering into areas in which they
lack competencies; remember the failure of Apple maps.
3. Incompatibility With Other Software
When a customer buys an apple product, they enter the Apple universe. Apple’s products do
not support other software or technologies making them incompatible with other
devices.Customers have to exclusively purchase Apple apps or accessories to continue using
their Apple products.
4. Limited Customization Options
As part of its strategy towards providing complete user experience control out-of-the-box and
avoiding unnecessary technical support headaches down the line, Apple has implemented
relatively strict limitations on customizing its hardware and software beyond what comes
preloaded with the device upon purchase. While this greatly simplifies matters for novice
users, who wouldn’t need any assistance beyond unlocking and setting up their device right
out of the box, more experienced users may find themselves restricted when seeking more
advanced options.
Apple’s Opportunities
1. Consistent Customer Growth
Apple has been dominating the technology sector for years now. They provide top quality
and cutting-edge technology that offers a breakthrough in customer experience. Their
customer retention rate of 92% is phenomenal. Apple can always rely on the power of the
internet for future opportunities to gain new customers and form new alliances. Qualified
Professionals - Apple’s researchers, developers, and product specialists are a team of highly
qualified professionals that have years of experience in branding consumer products. With
the expansion of their team, Apple can continuously build new opportunities.
2. Expansive Distribution Network
Apple Inc. has the opportunity to expand its distribution network. Currently, the distribution
network that Apple has is very limited and leaves room for minimal growth. Apple can
generate higher revenue and sales if it focused on creating an expansive distribution network.
Furthermore, the company can benefit from diligent marketing and promotions.
3. Lack of Green Technology
Apple is yet to launch products that are created using green technology. The company has not
yet implemented or participated in creating sustainable technology that is eco-friendly.
Apple’s Threats
1. After effects of Coronavirus Outbreak
Apple is highly dependent on China for its manufacturing and supply chain. The recent
events have significantly affected and disrupted its operations. In addition, about 19 % of its
$394 billion in revenue came from China (a big market for Apple). The outbreak has
significantly affected and may continue to disrupt Apple’s business in coming years.
2. Increasing Competition
Although Apple as a brand has solidified itself, it still faces threats from competitors. With
the advancement in technology, brands like Samsung, Google, and Dell are giving Apple
tough competition. As the competition is getting stronger, Apple either has to introduce new
technologies or revise its pricing policy to stay ahead of its competition.
3. Backdoor Mechanism
The potential for government agencies to access user data stored on the iPhone through
backdoor mechanisms is a significant threat facing Apple. Government attempts to force
Apple into unlocking iPhones for law enforcement, and intelligence-gathering purposes
present huge vulnerabilities, putting users’ private information at risk. By not providing this
type of access, Apple seeks to ensure that its customers remain secure and that their sensitive
data is safeguarded against prying eyes.
Product position
Apple products are evaluated as being high quality, durable and reliable.
Apple is also positioned as a luxury brand that carries a huge emotional and loyalty among its
customers.
Unique selling point (USP):
Product: Apple producers offer a simple, user-friendly interface with a sleek,
appealing design and a vibrant display. This is the special feature setting
Apple apart from its competitors.
Image: The iconic logo is one of the most recognizable labels in the world, it
ubiquitously appears on a massive number of high-tech devices.
People: Apple US and international customers do not want to be ‘left behind’
in the new movement of technology development, which has seen the
company garner a lot of sales, creating hardcore Apple fans who are willing to
queue up for their new product launch.
Positioning Map
Overall Positioning Strategy
Value proposition: more for more (Apple provides the most upscale product and charges a
higher price to cover the higher cost)
Positioning statement: “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 mobile phone with its
revolutionary iPhone and App store, and is defining the future of mobile media and
computing devices with iPad.”
Vision statement: “We are "committed" in producing high quality products and providing
high quality services thus setting high industry standards for other competitors.”
Apple STP
Segmentation Individuals looking for stylish PCs and Mobile Devices
Target Market High income group, with age between 20 to 40 years
Positioning Apple offers highly featured and functional mobile devices
and computers which are easy to use
Apple target segment
Devices: iPad
Density Urban
Age 18 – 45
Demographic
Lifestyle[2] • Resigned
• Aspirer
• Succeeder
• Explorer
MISSION STATEMENT
Apple’s mission statement is “bringing the best user experience to its customers through
its innovative hardware, software, and services.”
Apple emphasizes that its goal is to provide the finest service possible to its
customers. The announcement also outlines the company's plans for how to do
this.
Steve Jobs, the co-founder of Apple, insisted that they take a "consumer-first
mentality", as they make advancements in technology more accessible for
consumers.
Apple aims to make technology more accessible and help people feel more
connected.
Objectives:
Apple is one of the world's most recognizable companies. Its success is largely attributed to
the company's core values:
Accessibility
Educational support
Carbon-neutral
Inclusive work environment
Privacy
Supplier Responsibility
These values dictate how the company operates in both home and overseas markets and
contribute to the development of its global branding strategy.
1. Accessibility
Apple products are designed so that everyone has access to them. The company uses
enhanced technology and powerful innovations for better accessibility. Through these
innovations, Apple has come up with products that ensure people with physical limitations
are not left out and can carry out their daily activities with ease.
2. Educational support
Since 2014, Apple has been at the forefront of providing educational solutions to schools
across the United States. Through a partnership with ConnectEd, the company has donated its
products to students and teachers 114 underserved schools. They also pledged $100 million
worth of teaching and learning solutions. The company continues to work with the students
and teachers, teaching them how to use the products to enhance the learning experience, as
well as for life.
3. Carbon-Neutral
Apple focuses on taking care of the environment just as much as they are determined to come
up with quality products. The company aims to build products that are safe for both the users
and the environment. They use recycled products for both the inside and the outside. Through
Apple Trade-In, users can exchange their old devices for either credit or recycling, reducing
the negative impact on the earth.
4. Inclusive work environment
The company draws its greatest strength from the fact that people from all walks of life work
there. Because it aims to provide products for people across different regions, ethnicity,
religions, genders, and cultures, Apple believes in bringing on board a diverse team. Apple
has made consistent progress by bringing people who are different in the way they think,
what they have experienced, and in who they are.
5. Privacy
Apple products hold a lot of sensitive user information, and the company believes that
privacy is a fundamental human right. As such, all products are designed to offer the utmost
security for the user. The security features also allow them to choose what information to
share and with whom. Enhanced security features such as face and touch ID ensure that only
the user has access to the device and makes it difficult for anyone to gain unauthorized
access.
6. Supplier Responsibility
Apple holds its suppliers and partners responsible for creating quality products for its users,
who always come first. The company ensures that the suppliers meet all the requirements
while building opportunities for them. It also holds its suppliers accountable to ensuring that
their employees work in safe and conducive environments, do not have their rights infringed,
and do not face discrimination in their workplaces.
INSIGHTS OF APPLE
Facts:
- The employment of electronic technology equipment for inventive objectives,
troubleshooting issues, and resolving incidents in work with high applicability is
prevalent worldwide. Sales of the iPhone rose by 88.2%, iPad sales by 151%, while
Mac sales rose by 6.4% in 2012 compared to 2011.
In particular following the outbreak, the anywhere working style approach is
slowly gaining favor. Newer jobs that require the use of technology gadgets
More and more people desire to use modern technology in creative and stylish
ways. People typically remain loyal to a product for a long time once they find
it matches their personal preferences. 20% of owners of both an iPhone and
iPad say that “switching ecosystems would be harder than switching banks”.
Nearly 85% of iPhone owners plan to buy another one.
- Students enjoy online learning because of its ease, trendy, and distinctive style
through technological devices, not just in the world of work but also in the
field of study.
Truth:
- They are gradually comprehending the way modern technology dominates many
facets of life nowadays.
- They seek convenience and independence while working and studying(anywhere,
anytime, anyway), but they also want to achieve the greatest results and maximize
their creative potential.
- They want to use technology for work and study in a way that is uniquely their own.
They look for high-quality items that will last them a long time when selecting
products to serve themselves.
Insight:
- People appreciate the creative freedom associated with work and study performance,
paying attention to building their personal brand through a unique, trendy and
colorful working and studying style. When technology items meet the requirements
of “anywhere, anytime” working, they need to be compact, portable, compatible and
well-designed.
Product:
Introduction:
Nowadays, everyone is using technology devices to support their work..., a laptop, a
smartphone, a computer. Apple has created the Mac and iPhone, as well as an app
store with over a million applications that facilitate people's tasks.
Everyone now prefers to work remotely, they want to work anywhere at any time. The
question is "is there a third category device that not only be as powerful as Macbooks
but also versatile and portable as an iPhone. Something is far better at some key
things. Browsing, checking email, watching photos and videos, reviewing the progress
of the project, creative activities, reading ebooks, taking notes, managing and
processing data. The answer to this question is Ipad.
Product:
Ipad 10th Generation: Staring at 449$
iPad is such an incredibly versatile device. powerful and easy to use, it enables all
of us to do so many meaningful things every day.
Ipad is such a piece of glass that transforms instantly into anything you want.
iPad is so versatile, it’s more than up to any task. Whether you’re working on a
project, expressing your creativity, or playing an immersive game, iPad is a fun and
powerful way to get it done. Here are just a few of the countless things you can do
with iPad.
1. Get the tough things done easily: Run powerful apps
effortlessly.
iPad works with the powerful apps you’re familiar with, like Adobe Photoshop or
Microsoft Office, with the added ease of using them with touch.
All-day battery life.1
Stay productive and on the go all day.
Use multiple apps at once and work between them.
Multitasking with an iPad is more intuitive and powerful than ever. Work seamlessly
across apps. Use Slide Over or Split View to work with multiple apps at the same
time, and even drag and drop content between apps with touch or a trackpad. And on
iPad Pro and iPad Air, you can use Stage Manager to overlap, stack, and resize app
windows.2
Wi-Fi when you have it.
Cellular when you don’t.
2. Store and share all your stuff with Files.
You can organize, share, and get to all your stuff with the Files app. Manage what’s
on your iPad, in iCloud, or on cloud services like Box. Easily access files stored on a
thumb drive or other external devices, too.
3. Write it down. Mark it up.
And make it unforgettable.
Take amazing notes with Apple Pencil.
Whether you’re taking class notes, keeping a journal, or brainstorming a solution, iPad
is always ready to capture your brightest ideas. Then you can easily share them, build
on them, and bring them to life.4
Convert your handwritten notes to typed text.
With iPad, your handwriting can be just as powerful as typed text. Start with your
handwritten note, then with a few taps, copy and paste it as typed text.
Draw perfect shapes by hand.
Draw familiar shapes freehand with Apple Pencil and watch as shape recognition
snaps them into their ideal form.
Sign documents. Mark up anything.
Fill out a form or sign a document right on iPad with your fingertip or Apple Pencil,
then send it with just a tap. Or take a screenshot and mark it up, give some retouching
notes on a photo, or make revisions to a document.
Take a Quick Note anywhere.
Quick Note is a fast and easy way to make or get to a note no matter what you’re
doing. Start a Quick Note with a swipe of a finger or Apple Pencil, then jot down
information over any app or screen. Add links, highlights, tags, and mentions for
context.
4. Create the ultimate canvas for any project.
Draw a masterpiece with Apple Pencil.
With tilt and pressure sensitivity, imperceptible lag, and pixel-perfect precision, Apple
Pencil is the ultimate tool to help turn a blank page into an inspiring work of art.
3D design at your fingertips.
Even the most intensive creative projects are brought to life on iPad. Use touch to
move and manipulate objects. Apple Pencil to draw and fine-tune sketches. You can
even view them in AR, all on one device.
Produce music or record a podcast.
Audio apps for iPad help you learn, practice, record, and create with ease. So release
an album, start a podcast, or plug in an instrument and jam with your iPad.
Bring your own animated characters to life.
Use Apple Pencil to draw characters and create new worlds with intuitive animation
apps designed for all types of artists.
iPad and Mac make a serious creative team.
With Sidecar, you can extend or mirror your Mac display wirelessly. Then use iPad
for precision tasks or as an incredible second display. And with Universal Control, a
single keyboard and mouse or trackpad work seamlessly between your Mac and iPad.
5. Catch a movie.
Blast tunes. Read a classic.
Comes with 3 months of Apple TV+.
Every iPad includes a 3-month subscription to Apple TV+, featuring critically
acclaimed Apple Original series and films.5
Watch and stream all your favorite content.
Catch the newest film and TV releases or rewatch your favorites on an immersive
display that goes with you anywhere.
Amazing speakers for music, video, and TV.
Listen to a podcast as you cook, blast your favorite playlist, or take a movie to go.
Catch up on the latest news or read a bestseller.
iPad makes reading a joy. Check out all your favorite authors, books, and publications
with the Books and News apps.
6. Snap a photo. Scan a doc. Shoot a film. All on the same
device.
Shoot a photo or video and edit it right away.
Capture the perfect shot and make it your own with a suite of powerful built-in or
third-party editing apps. iPad makes editing, enjoying, and sharing your photos and
videos easy.
Stay connected.
Use FaceTime and other video conferencing apps to stay connected with family,
friends, and the office. You can take selfies, too.
Did you know a document scanner is built right in?
Use the back camera to scan a document, then mark it up and send it. All from the
same device.
Lifelong learning made magical.
7.
Your classroom can be anywhere.
Take your learning to go and sign in from wherever you are. Attend a lecture, tackle a
group project, or simply stay connected with colleagues and classmates from all over.
Learn something new, be it cooking or Cantonese.
iPad makes a perfect companion for learning. Go step by step with an instructor or zip
through a self-guided course in your free time. However you like to learn, there’s an
app for that.
A great start for all types of learning.
The App Store has a huge range of educational apps for children to explore outside the
classroom. And Screen Time lets you view and set limits on how much time you and
your kids spend on apps, websites, and more.
Build your coding skills.
Swift Playgrounds makes it fun to learn and experiment with Swift — a powerful
programming language created by Apple. Learn code, build real apps with SwiftUI,
and see your ideas come to life on the App Store.
Ipad Pro M2: Starting at 799$
Promotion:
Hold an event for the presentation of the new product - Ipad:
Expose a short introduction of the Ipad, which must be attractive, and have incredible footage
that shows the design, the remarkable feature, and it's versatile uses.
- Message:
iPad is such an incredibly versatile device. powerful and easy to use, it enables all of us to do
so many meaningful things every day.
Create a clear and strong image of the Ipad:
Technology feature:
- The all-new iPad is colorfully reimagined to be more capable, more intuitive, and even
more fun. With a new all-screen design, 10.9-inch Liquid Retina display, and four gorgeous
colors, iPad delivers a powerful way to get things done, create, and stay connected.1 Add on
essential accessories designed just for iPad and enjoy endless versatility for everything you
love to do
Way to use:
- keeping us close to the ones we love when we can't be there in person,
- helping students learn remotely,
- helping people express and share their creativity,
- And iPad is providing a critical lifeline for doctors, nurses and patients.
- Its versatility is what makes iPad such an essential device.
- With the power of the App Store and over a million iPad apps.
- An iPad instead of a bunch of books!
- Help you manage your timetable, and your work, all in one device.
Create discussion among the public:
By creating such a perfect and satisfying experience, we will establish a great impression for
tech reviewers and have them review the product.
Conclusion:
By holding an event for the introduction of the Ipad, we can define our Ipad's features,
design, and function and establish some desired impressions on our product.
We will get our product reviewed by handing it to influencers, and KOLs, on mass social
media such as Facebook, Youtube, Twitter. The result we expect to happen is an enthusiastic
discussion between them and our customers. -> Customers will see our products with an
impression as what we expected and we will earn their trust through good reviews and
satisfaction in actual experience when they make purchases.
Place
Apple has a clearly defined strategy when it comes to creating its products. Each of their
products has distinctive characteristics that make them distinctive.
The first iPad was released in 2010, and the following versions iPad Air and, later, the
second-generation iPad Mini, were introduced in November 2013. The USP of the iPad has to
be its interface for users. It is mostly about the screen, the multi-touch feature that comes with
an integrated keyboard, Wi-Fi, and the ability to connect to cellular networks depending on
the iPad model.
PLACE IN THE MARKETING MIX OF IPAD
The company is present in more than 200 cities worldwide, including Canada, India, the
USA, and the UK. Apple outlets and stores are situated in strategically positioned areas
where loyal and new customers can browse tablets to their hearts’ content and fill their minds
with desire. They are in high-end areas and offer stunning interiors and physical proof
qualities that attract customers.
Apple implements an aggressive approach in reaching out to premium target markets. As for
now, Apple has enough channels worldwide, and the iPad can be purchased easily through
online stores, retailers and resellers.
SALES CHANNELS
Apple stores. Probably the most prominent IT company globally. Apple stores are places
where customers will be satisfied when buying iPad because they can freely ask questions to
the sellers. The customers also get an understanding and an idea of the way of thinking of the
management and the maintenance and technical services of the company. The network of
consultants includes consultants and service providers who provide on-site services to
businesses and homeowners.
Examples: Apple Dubai Mall, Apple Piazza Liberty, Apple Iconsiam,…
Online stores. Apple has also established an impressive online presence and made it simple to
gain access to buying iPads. The availability of online shopping has enabled Apple to
increase its sales. Shopping online is accessible via the official website of Apple and other
online shopping websites.
Example: https://www.apple.com/ (an official website of Apple brand)
Wholesalers. Customers of Apples can also go to wholesalers as they can also be the source
of essential parts of its services and products.
Example: SM distributor, Sell pex network (wholesale systems),…
Retailers. Apple also partners with authorized retailers for its products and services.
Example: Dien may xanh, the gioi di dong, nguyen kim, fpt shop,…
Third-party cellular network providers. Third-party sellers like Amazon or Flipkart are also
an essential part of the distribution channel.
Value-added resellers. These are professionals tasked and authorized by Apple to provide
market-specific and customized solutions to target customers.
Resellers operate stores that offer consumer electronics and accessories in various strategic
locations, such as key shopping malls in different markets around the world. Such resellers
include large retail firms like Walmart and Best Buy, which is a major consumer electronics
retailer. Some authorized resellers sell through their own stores as well as their seller
accounts on Amazon.com. Authorized resellers enable Apple’s 4Ps to maintain an extensive
multinational network for reaching target customers.
COVERAGE
Imeicheck.com or checkcoverage.apple.come are online websites that allow customers to
enter the products’ serial numbers in order to check Apple warranty, AppleCare+, coverage
check, activation status, repair and service coverage, replaced status. Each product has a
distinctive coverage plan including warranty and service duration.
LOGISTICS
- Apple purchases components and materials from various suppliers
- The Assembly line of the iPad is situated in China and various locations.
- Raw material supply is mostly through direct suppliers by air mode of traveling.
- After assembly of iPad, the next stage is quality control and quality assurance
- After packing of iPad, they transported it to various apple store locations from warehouses
through trucks with robust box packing
- At last, apple iPad were transported to retailers and local stores, and distribution was done.
PRODUCT ASSORTMENT
The range of iPads comes in 3 models: mini, Air, Pro, and in different capacities. The range
allows for covering different needs at different price levels. Some brands partner with
personalities who co-sign a limited version of the product: Dolce & Gabbana pasta, Delvaux
handbags.
LOCATIONS
Apple has more than 500 retail stores in 15 countries worldwide. The brand strategically
places its stores at high-traffic locations like urban shopping districts and quality shopping
malls. The interiors of every retail store are also strategically designed to be spacious where
its customers can use the products and have generous assistance from customer service
people.
The table below lists several locations of Apple retail stores in United States:
Area
Address
Alaska
Anchorage 5th Avenue Mall
California
Bakersfield, Valley Plaza
Canoga Park, Topanga
Los Angeles, Tower Theatre
District of Columbia
Washington, Carnegie Library
Washington, Georgetown
Hawai
Honolulu, Royal Hawaiian
Honolulu, Kahala
Honolulu, Ala Moana
New York
New York, World Trade Center
New York, West 14th Street
New York, Grand Central
Pennsylvania
Ardmore, Suburban Square
King of Prussia, King of Prussia
Lancaster, Park City
Texas
Houston, Highland Village
San Antonio, La Cantera
Sugar Land, First Colony Mall
Washington
Bellevue, Bellevue Square
Lynnwood, Alderwood
Seattle, University Village
Ohio
Columbus, Polaris Fashion Place
Toledo, Franklin Park Mall
Westlake, Crocker Park
INVENTORY
The graph below shows that Apple’s key inventory metrics have remained relatively stable
since early 2019, despite all that has happened this year so far.
The benefit of keeping inventory levels so low is twofold. First, large inventory balances
mean that cash remains tied up in the supply chain, which is usually not good news. Part of
the reason why Apple has managed to generate so much cash in the past decade or more is
the company’s ability to manage working capital (which includes inventory) so well.
Second, low inventories allow Apple to be more nimble. With the multiple product refreshes
each year, the Cupertino company can afford to have the latest devices available for purchase
without having to discount older models too deeply, or risk having its product stock become
obsolete.
TRANSPORTATION
When Apple’s products are shipped to the warehouse and other distributions center, it
normally chooses air freight service provided by Fedex or UPS for shorter period and lower
cost. However, the emission from airplanes and gas released from airports do damage to the
environment. As a public company, Apple apply environment protection to realize its
responsibility. The strategy Apple use is to make their product thinner and lighter and make
product packages smaller. Such as action enable 60% more iPhone 5s boxes to shipped one
time. Fewer transportation flights mean fewer emissions.
Pricing
Price is an element of the marketing mix that sets prices, price points, and price ranges for the company’s
consumer electronics, online services, and related products. The following pricing strategies are in Apple’s
4Ps:
- Premium pricing strategy
- Freemium pricing strategy
The premium pricing strategy involves offering Apple products at a premium. In theory, a premium is an
amount or value that is applied in addition to the typical or common price. Apple’s marketing mix
implements the premium pricing strategy to set high prices for products. For example, iPhones are more
expensive than many competing smartphones, thereby resulting in the maximization of profit.
Even though the SWOT analysis of Apple Inc. shows that such high prices can be considered a weakness,
the company utilizes premium pricing in combination with premium branding and creative innovation to
ensure business competitiveness and profitability.
Aside from premium pricing, this 4P element also uses the freemium pricing strategy, which applies “free”
and “premium” pricing combined into a single strategy to make the company’s technology products
attractive. In this freemium pricing case, some of Apple Inc.’s products are free, but customers pay to
access better features.
For example, the company offers free 5 GB of iCloud storage. However, to add more storage capacity to
their iCloud accounts, customers must pay a recurring fee. In this regard, the pricing strategies in Apple’s
marketing mix support premium branding and associated product design and development efforts.
List price
Value-Based Pricing Strategy: Consumers perceived value of the product is essential for determining their
willingness to pay for the product. And for this reason, many manufacturers go with a value-based pricing
strategy, attempting to sell the right product at the right price to meet consumer wishes. Many firms now
apply value-based pricing for setting prices and everyday low pricing policy to determine their discount
pricing policy over time.
Competition Based Pricing Strategy: But when it comes to the tech world, where the market is getting
more crowded, every day and innovation keeps a company going, the most common pricing strategy is
Competitor based.
The tablet market is saturated with many players with a huge market chunk. Every manufacturer is trying
to compete to gain as much market share as possible, and the pricing strategy followed most commonly is
the competition-based pricing strategy. There is one exception to this rule, though, and that is Apple.
Strategy for Apple had four pillars:
1. Offer a small number of products.
2. Focus on the high end.
3. Give priority to profits over market share.
4. Create a halo effect that makes people eager for new Apple products.
Apple is a company that makes most of its revenue from the sale of iPhones. In terms of innovation, it is
argued that Apple is lagging behind the competition but still has good enough brand equity to command a
premium.
Views on how Apple went about setting the prices for the new iPads.
Details about the lineup: All the prices are for the base 128GB models with the newest generation of
tablets.
Final Pricing:
For the iPad 10 Gen model, I would suggest to cost it at $499. This can help sell more quantity of iPhones
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and the revenue would be driven by the surge in demand for the apple accessories, app store licensing fees,
and other services like apple music and iCloud storage that iPhone provides.
Here I would suggest that the iPad needs to preserve its premium brand image coming to the Pro series of
phones. Even if Samsung comes up with a more expensive series of tablets before the next cycle of Apple
iPads, the iPad Pro cost should be at least on par with the flagship phones from other manufacturers.
Summarizing it The iPad 10 Gen should be priced at $499. The Pro models would charge a significant
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premium, partly because of the technology used in them and partly because of Apple's flagship offering.
The iPad Pro should be priced at $799.
The premium price that Apple sets helps the company to maintain its company image of a
luxury and very high tier. Apple doesn’t competitively set its price to sell more but to
bring the best experience possible to the customers.
As Apple uses the combination of both freemium and premium pricing method, they know how to make
people want to pay more money for their products.
Discounts
Apple also has discounts of up to 11% for students through the Uniday Discounts Service to target a
younger demographic. They even give out Airpods for students that buy MacBook for academic purposes.
Allowances
Retailers get a discount of 8% on any order from 5-25 products from Apple, from 10 products and above
they get up to 10%.
Payment period
Apple allows people to pay in multiple sessions separated by each month, this allows for an easier
approach to buying products from Apple. For example, the iPad can be bought at an official full price at
$449 or $37.41 per month for 12 months which sounds like a great deal.