In order to locate our products in the market, we applied the Boston Matrix Analysis to our Product Portfolio, which classifies them into four different groups: Stars, Cash cows ,Problem children and Dogs. Accordingly to in what Category the Products are being located, different Marketing strategies are used. The Categories are based on the growth factor and the market share they hold.
1. The Stars
In our Star category we have identified the iPad and the iPad mini, as they are both in the growth phase of the product life-cycle, as well as they hold a very high market share in the rapidly growing tablet market. The combined market share of the iPad and the iPad mini is 68,2%. The strategy that we are applying to these two products is investing into their marketing, to keep the share as high as possible. Once the tablet market will stabilize and the growth factor is going to slow down, we are planning to move the products into the Cash cow category.
2. The Cash Cows
This Category is characterized by a high market share but low growth factor. Here we have placed the iPhone and the iPod, because both the phone and the Mp3 sector are both pretty stabilized and saturated markets. Both product hold high shares in their markets, the iPhone obtaining a share of 27,7 %, which is almost a third out of all the competitors in the phone sector. As the iPod is slowly staring to reach it’s declining phase in the product life-cycle, our strategy is to harvest the product and slowly reduce marketing, and concentrate on other categories, such as the Stars or the Problem children. However, we are planning to keep our high market share by generating sales from our already existing customers, offering them updates and new features. On top of that, the iTunes Media Store, which can also be placed in the Cash Cow category, it plays an important role for us to count o helping the iPod hold its market share.
This segment is the one...