Apple International Marketing

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INTERNATIONAL MARKETING

CASE STUDY

APPLE: IPHONE AND IPAD

1. If you would be working for Apple (Ipad or Iphone) what strategies would you pursue in order avoid situation like what is happening today to Nokia Apple Inc. has already had a spectacular break-through in the technological race when it firstly released Iphone in 2007. Since when, there was a revolution in the technology field especially, in the Personal Computer (PC) industry involves: smartphone and tablet computer. If I worked for Apple Inc., in order to retain as well as to enhance the position of Apple in Today’s market, I would apply, deploy and develop the Relationship marketing with “Differentiation” strategies based on 4P includes: Product-Price-Promotion-Place. Product

Firstly, people have to admit the truth that the present success of Apple was built on the brilliant products. Compared to Nokia, Apple already created a key competitive advantage that raises company to a new level. The failure of Nokia was a cost lesson for others mobile phone manufacturer in the world. The main reasons leading Nokia to this moment situation is company already missed a valuable opportunity in smartphone revolution as well as its products. Even though, later on Nokia unveiled smartphone Lumia but it did not satisfy the consumers’ demand and expectation. Nokia product’s designs are not attractive and fashionable as Iphone. In addition, the products are outdated interface, lack of applications and outdated technologies compared to Apple’s products. Consequently, Nokia loose its leading brand value in the mobile phone industry. Meanwhile, Apple realized and took that opportunity then turned it into huge success. Hence, Apple should continue the product differentiation strategy. It mainly focuses on investing more in creating and developing the new and innovative technologies, which are totally different from competitors’. The products should be usually updated and upgraded in both its particular outlook (thinnest, most lightweight, unique, fashionable and outstanding) and functions (convenient, ease-use, support applications and service etc.). This is the only way to make company continue keep its crown as innovator in the intensive technological competition. Price

Secondly, despite the Apple is assessed as “the tech industry’s high-price leader” with Premium price, people are still willing to purchase its products at a particular price. The main point is price set based on the “product Differentiation strategies”. Therefore, in order to exist and grow in the price war, the company not only retain the same price strategy but also use more the pricing Skimming and Reference strategies: launching a same product line but in different price points depending on the features and drive capacities. It may be better for Apple than using the penetration pricing strategies by suddenly decreasing the price to expand or approach new market. Promotion

In order to get the large impact from media and society, one key in the Apple’s marketing is its traditional promotion strategies by creating hype and excitement before the launch of products. Apple is considered as “Phenomenon” and each marketing communication relating to “Word of mouth” created huge impact on consumer behavior. Organizing significant campaigns with special slogan to introduce and get emotional response about the new products, which concentrate on the consumer psychology: the curiousness, self-esteem, desire and passion in new technologies Place

Finally, expanding and opening new multi-distribution channels with high sales volume (retail store chain and online sales). Simultaneously, more creating the strong relationship with worldwide retail partners. In conclusion, Relationship Marketing based on “Differentiation strategies” focusing on customer retention and satisfaction, which in order to enhance, increase customer loyalty and sustainable development. Apple Inc. has to understand the market dynamic to...
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