Up to today, we have done various researches in order to explore what consumers want. Through the use of focus groups and surveys, it has assured that iPhone is a device, today’s customers are looking for and there is a long life span for iPhone.
SWOT ANALYSIS OF IPHONE
STRENGTHS
Apple’s new iPhone is invented by employing the latest technology in it. The device is compatible to work with new Apple TV, allowing for wireless connectivity to the big screen. Moreover the Apple is famous throughout the world for inventory of gadget with the latest technology. Therefore consumers are assured about the quality that will be maintained in the iPhone. This multifunctional mobile phone is capable of doing everything in the easiest way. Also Apple has a high brand loyalty, meaning that apple is internationally recognized and therefore Apple has the chance to increase the price of the IPhone to increase sales, because they will be having an inelastic demand.
WEAKNESS
Today most of Smartphone marketing companies like Nokia, Sony Ericson, design its model for the target group of business men due to the expansion of commercial transactions throughout the world and therefore to facilitate them. But Apples’ target audience is not business men. So Apple is not compatible with the commercial world. Moreover the price might tend to be high for cost conscious customers. Therefore it will be difficult to estimate sales and Apple might have to find target segments willing to pay high prices. Besides this, aged people might not find it comfortable to adjust with the latest technological features. Thus the new iPhone is not suitable for aged people.
OPPORTUNITIES
Today many consumers demand entertainment, and apple has the full advantage to react to this trend by attracting customers to change their iPods to iPhones. Also they can make the hardware of the iPhones upgradable as they have made the software upgradable. So these exciting features can step forward the product into a new stage of growth. Moreover, Apple has the full capability of merging with other Smartphone firms. As a result the average cost of the firm could be reduced.
THREATS
Due to the expansion of the smart phone market, the levels of competitions and rivals are increasing. So there are few barriers for entry in the market and firms need to make its products patented and this can increase the internal costs of the firms. Add to that, the price of iPhone is assumed to be quite high. But due to high competition, Apple might need to reduce its price to increase sales.
PEST ANALYSIS
PEST means Political, Economical, Social and Technological factors that Apple need to keep in mind. In other words they are the environmental variables that can affect the business. Political factors like payment of tax and being within the advertising ethics is important for Apple to be in safer side. And economic factors are also very important for Apple because it can aid them in deciding their long term and short term plan. This also includes the impact of variables like inflation and interest rates upon the business planning. The social factors are the factors which consider the cultural and social life of consumers. And technological factors include those factors with the help of which Apple can gain competitive advantage over its rivals.
MARKETING STRATEGIES FOR APPLE IPHONE
PRODUCT STRATEGIES
Product element plays an important role in the marketing strategies since this includes what the customers believe about our products value, features and benefits. Some of the product strategies Apple can use for positioning the iPhone are certain classes of users, which means iPhone can be targeted on certain classes of users. For instance it can assist entrepreneurs by providing access to calendar, organizing contracts and flexible internet connectivity. Professionals could use iPhone due to the extra ordinary features in this device which will help them to be in touch while they are on go. Moreover the slim and attractive design could make iPhone very popular among youngsters.Another strategy Apple can use could be Benefits the product offers, and this is mainly about making customers aware about the benefits that iPhone offers. Also Apple can use the Away from competitors strategy, since iPhone has some unique features in it which is not available in some of the other smart phones, hence iPhone can be positioned away from its competitors.
PRICING STRATEGIES
Setting price is the part of the marketing mix that can generate revenue. Therefore, for effective marketing, setting the right price is very important. And this is the variable that can be changed most quickly in response to competitors price change. As a pricing policy, Apple can use skimming, penetration or offering a better value for money. But skimming pricing policy might not work for all countries in the Southeast Asia since there are many cost conscious customers at Southeast Asia compared to the Europe. Therefore Apple needs to reduce the price of the iPhone. Nevertheless, we can’t say that all countries will have cost conscious customers. There will be customers who will be willing to buy these iPhones at high prices once they understand the amazing features of this device. So therefore one of our pricing strategies includes charging a reasonable price for the iPhone, thus offering a better value for money.
Apple can follow product mix pricing strategies such as optional product pricing which is pricing of optional or accessory products along with the main product, for instance this could be iphone along with headphone, phone cover etc. Or else Apple can also use the captive product pricing which means setting a price for products that must be used along with the main product and this can be the iPhone and its battery.
PROMOTION STRATEGIES
With the help of promotional strategies we can persuade more customers towards the iPhone. Therefore, to make the promotion more influential Apple can hire agencies that can take the full authority of advertising iPhone, but to have an effective influence over the customers; iPhone should be well demonstrated to the customers.
Advertising Medias such as Television advertising could create the products influence on millions of the people. But it should be set on highest rated viewers preferring shows. Else many customers can miss out the advertisement. Moreover, selectively putting printed ads in high ends and famous magazines could emphasize products innovativeness and have a wider influence on youths. But when promoting the product it is important to advertise on a regular basis to maintain general public awareness and communicate various differentiation messages to several targeted groups. Eye catching displays will be found at most people visiting locations inside the South East Asian countries for a full one month before the release of iPhone into the market.
Some of the Sales promotional techniques which the iPhone can use under promotional strategies are Consumer promotion tools which includes giving consumers coupons, cash refund offers, patronage award etc, and then Trade promotion tools which includes discounts and allowances and also business promotion tools which includes conventions, sales shows, sales contests etc.
DISTRIBUTION STRATEGIES
Placing involves deciding on which outlets to distribute, what is the level of distribution targeted at and how to achieve that target. For Apple one of the most appropriate placing strategies could be the selective strategy. This involves placing iPhone to a selective region and not to all regions. This strategy could be very cost efficient and will be easy to distribute iPhone to the target segment. Apart from this Apple can also go for franchising or licensing as a method of distributing the iPhone.
Our main aim is placing iPhone with all the reputable major retailers. All the Apple stores and Apple website will dedicate themselves to iPhone and also provide channel partners by providing product demonstrations.
CONCLUSION
After considering the available options and their possible outcomes, following are the most appropriate strategies that Apple can choose in order to market its iPhone to Southeast Asia market.
- Under the product strategy Apple can use three strategies, which are Certain classes of users, Benefits the products offer and then Away from competitors.
- Under the price strategy the most appropriate strategy would be better value for money and penetration pricing, since Southeast Asia might include a number of cost conscious customers compared to European market therefore Skimming might not be very a good choice and Apple can go for optional product pricing as a product mix pricing strategy.
- As for this promotion strategy apart from the above mentioned promotional tools, Apple can go with the Consumer promotion tools and trade promotion tools as their sales promotion techniques.
- Eventually Apple can use selective strategy and franchising as their distribution strategy.
REFERENCES
Book References:
Kotler, P, (2008), Principals of Marketing, 12th ed, London, Pearson Publications
Marcouse’, I, (2008), Business Studies for A level, 3rd ed, Italy, Fakenham Photosetting Limited
Surridge , M and Gillrspie , A ,( 2004) , AS Business Studies , 2nd ed , Dubai , Fakenham Photosetting Limited
Online References:
http://www.iphonefans.com/general-iphone-discussion/268-iphone-marketing-plan.html
http://www.ama-rochester.org/blogorama/2007/07/the-apple-iphon.html
http://images.google.com.my/imgres?imgurl=http://www.engadgetmobile.com/media/2007/06/6-9-07-iphone_sales_training_guide.jpg&imgrefurl=http://www.engadget.com/2007/06/09/iphone-details-uncovered-in-sales-training-workbook/&usg=__EdtA2Rjtbn4omAFt3qYPmZyCdeQ=&h=251&w=440&sz=87&hl=en&start=20&um=1&tbnid=e3Wm6O5jSoV4eM:&tbnh=72&tbnw=127&prev=/images%3Fq%3Diphone%2Bsales%26ndsp%3D18%26hl%3Den%26rlz%3D1W1ADBF_en%26sa%3DN%26start%3D18%26um%3D1
APPENDICES
Figure 1
Figure 1 shows the product life cycle curve for the iPhone from its previous marketed regions. We can see that the iPhone has almost reached a decline stage in the European countries. And thus the sale has started to eventually fall. This means that Apple need to include new features to the iPhone in order to increase the demand for the iPhone in such regions.
Figure 2
Figure 2 shows the result of an interview done with the iPhone customers regarding what is the feature they like the most about iPhone. We can see that 36% says that they like the feature of integration of the 3 products, which is phone, iPod and web browser. 27% goes with the touch screen interface. 16% likes the fact that iPhone is user-friendly n easy to use. While 5% likes the Safari browser and 4% likes the voicemail displayed visually.
