Apple target main 4 customer segment: Business, creativity professional, education and high-end costumer (Dr. John Ashcroft). Apple aims to please loyalty customer, in another word, Apple make sure once customers use their product, they willing to coming back and continue using their product in long term. Apple’s signature is high advanced and innovative yet easy to use product.
The first fundamental concept that I will analyze is Product. Apple has launch successfully Iphone 5 on 12th of September 2012. The smartphone consists of Branding, Design, Quality, Features, Services, and Insurances. Apple make sure it cover all needed factor to create the perfect Product and its packing to customers.
According to Phil Schiller - Apple's vice president of worldwide marketing, who unveiled the device - said compare to the old version, which is Iphone 4, Iphone five considered to be faster as they use A6 chip instead of A5, Mr. Schiller suggested ‘’this made it twice as powerful as the earlier model’’. Iphone also are thinner and lighter in shape. Iphone 5 Height 4.87 inches, Width 2.31 inches, Depth 0.30 inches and Weight 112 grams while iPhone 4 Height 5 inches, Width 2.31 inches, Depth 0.37 inches Weight 140 grams. The display also improved from 3.5-inch Retina display 960x640 resolution to 4-inch (diagonal) Retina display, 1136x640 resolution. Another significant new feature is Sims card as Iphone does Nano Sims and does not applied micro Sims like the old version, not only using different Sims card, Iphone 5 also improve on battery life and change the connectors to be smaller and more convenient. Apple, after all, has done a great job so far on upgrading the Iphone to the higher level of high technology. However, according to BBC news, Roy Cellan-Jones, there were so many leaks in the new Smartphones, which fail the customer expectation. Even though Iphone 5 has better camera, costumer found Iphone 5 leak many feature that its biggest rival offer, Samsung galaxy 3 let their user use micro SD cards and the micro USB standard Unlike the iPhone, the Samsung doesn't rely on sync software to transfer files directly either, customers can drag and drop files when plugged into a computer over USB. There are also extra memory card offer in Samsung galaxy so customer can increase the capacity himself or herself while Apple use Capacity as a price strategy. This makes a big competitive advantage for Samsung win over Apple in sale revenue. Another weakness in Apple Iphone is non removable battery, Samsung offer customer a removable battery which they can change the battery when the current one is run out without carrying the charger around as Iphone 5. Another issue on Iphone battery charger is apple changes the connector so it is not compactible with other Apple product such as Ipad, Ipod , somehow create inconvenient to customers as they have to carry different charger around.
The second concept I will discuss is Price. Apple, obviously using price skimming price strategy on their product and Iphone also the case. Apple charges user bases on their brand and capacity, i.e. the larger capacity the higher price, 16GB is £529, 32GB is £599 and 64GB is £699. Microsoft CEO Steve Ballmer in the interview with LinkedIn founder Reid Hoffman mentioned that Iphone price is too expensive and in fact, costumer has to spend approximately £800 to £900 for a Iphone and its accessorize such as headphone, sound dock, extra charger, etc. We are sure that in this unstable economy, Apple is an exceptional, it does not attempt to compete on price with other company, the company just reduces prices after some initial product launches. It uses skimming and premium pricing strategies. The biggest advantages that allow Apple use this price strategy is mainly on brand name and innovation. Generally their products are a union between technology and liberal arts so they do not just sell products but they sell art (Steve Jobs 2011). The strength of Apple price marketing mix is they always set at the high price and proud of their product which allow them to always set high price for new product, furthermore, they does not do discount on their product except special even such as black Friday. It is also considered as their weakness as their competitors using lower price to attract customers. Samsung galaxy 3 costs at maximum £500 plus customer can add more capacity by using external memory card. According to Carphone warehouse, apple Iphone is the most expensive contract phone, also customers has to wait for stock as the demand for Iphone usually high.
The third concept I will discuss is Promotion. Apple spends a significant amount of money and effort on their promotion and advertising. Apple offers a unique way of personal selling by having numerous staffs in apple store to assist every customer who steps into the store. Every staff themselves is an expert with deep and broad knowledge on all Apple products, the staff can answer mostly every question and fulfill any customer demands. Apple train their staffs to make sure staffs will satisfy all the customers and persuade them buy their product. Apple also known as the first technology company who allow the customers play with their product as they create the famous “ Apple store” where customer not only come to see the product but also experience as Apple present all their product in store. Apple makes sure customers can see the advertising every where from TV advertise to newspaper and internet media about any Iphone release date, information, etc. About sale, as mentioned above, Apple does not use discount on their products, However, Apple does have discount policies for Student and teachers/Professionals which is 15% off on their product plus discount price on
Ext Apple does have discount for Student and teachers and professionals
Extent Warrantees length. This is a special service strongly differentiate Apple with Samsung because they do exchange new phone to customer if their phone id error in software under the length of warranty. This is the most attract method Apple use to satisfy and keep their costumers happy and costumers happy mean Apple guarantees profits for long term.
The final concept that I will discuss is Place factor. One significant strength about Apple in Place factor is they set their Apple store located in mostly big city where high footfall. Apple now has 390 stores worldwide and planning to open about 30 to 35 new stores in fiscal year 2013. Apple mainly open in the central city where accessible is high and supported by transportation. Even the Apple’s late CEO Steve Jobs claims during the last keynote held in San Francisco in 2011 one of the reasons of being on top is the powerful network of retail stores they have around the world (Jobs 2011). Apple also offers purchase online and home delivery worldwide as it accomplished through online stores, retail stores, direct sales and third parties such Carphone Warehouse, Phones4u. Despite the fact of having strong network store, Apple also struggle because of the weak network in Africa countries and we barely see any Apple store in Africa on the Map. Apple also differentiate themselves with other company store by the size of the store and the signature design as they apply simple but efficient store design which Apple offer table and chair for customers when they come to experience and purchase Apple product.
Apple service provides certified technicians, who complete regular Apple training and assessments, and offer repair services, and exclusive access to genuine Apple parts.
by
tramdang (student)
