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Apple Global Marketing

Submitted to: Mr. Rajesh Kumar Choudhary

Submitted by: Abhimanyu Bizelwan
Master of Fashion Management - III

Apple

A one of the worlds most visible and recognizable consumer electronics brands.

It was started as a traditional computer company

Now designs and manufactures a wide variety of electronic devices

Computers & Laptops

Smart phones

Tablets

Music players

Watch

TV digital media player

Founded bySteve Jobs,Steve Wozniak &Ronald Waynein April 1976

world's largest information technology companyby revenue

world's largest technology company bytotal assets

world's second-largest mobile phone manufacturer

Headquarters Apple Campus, Cupertino,California,U.S.

Abhimanyu Bizelwan MFM-III

Driving Forces

Industry growth rate (short or long-term)

Changes in who buys the product and how it is used

Changes in society - different concerns, attitudes, and lifestyles

Product innovation and technological change

Firms - entering, exiting or mergers

Increased globalization of industry

Changes in cost and efficiency

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Absolute Advantage

Apple is an international company and it will most likely construct

factories in Brazil if it completely commits to the market.

It has done this in other countries such as Japan and Canada.

If Apple sets up factories in Brazil they will have an absolute

advantage because of their experience in successfully running
factories.

They will undoubtedly have machinery that can produce

electronics at a faster pace and high quality than other local
electronics companies.

Abhimanyu Bizelwan MFM-III

Comparative Advantage

Brand. According to Forbes, Apple is the Worlds most valuable brand valued at $151B. It grew 6%
last year. The result is point #2

Apple Fans. Millions of people will buy whatever Apple sells. A bigger phone? thats great innovation,
theyll buy it. A smaller phone? genius. sold.

A knack for simplicity.Apple has a brand for simplicity, making complex things simple. Before the
iPhone, smartphones were complicated. Before the iPod buying digital music was a mess. Before the
iPad tablets were cumbersome. Part of their secret sauce is integration.

A good design heritage. I use the word heritage because it seems Apple still has design talent, but
the secret sauce came from Jobs. The Apple Watch, for example, is not a success. Not much
innovation since the World lost Steve, sadly.

Money. The company is sitting on $55 B in cash and, today, is still a money printing machine,
generating over $10B in profits per quarter

Vertical Integration. Apple designs its own semiconductors all the way to the software and services.
This allows them to own the customer experience. It also introduces risk as they cannot take
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Bizelwan MFM-III
advantage
of technologies created by third parties as easily.

EPRG Framework- Apple

Geo-centric

Globally acceptance of Brand

Treats all foreign markets

No special distinction between domestic & foreign markets

Collaboration with local headquarters

Universal standards

Global view

Abhimanyu Bizelwan MFM-III

Political factors

It has accumulated a large amount of cash. It had $34.7 billion in the bank on June 30, 2015. This is generating calls
for higher corporate taxation in the United States, where income inequality has become a major political issue.

Apple is heavily dependent on lower cost manufacturing inChina. Social and political unrest in China could disrupt
manufacturing or increase manufacturing costs in that country. There have been also been calls to restrict Chinese
imports in the United States in an effort to boost American manufacturing.

The cost of finding alternatives to Chinese manufacturing could be high for Apple. This could lead to increased prices
for Apple products.

Apples dependence on Chinese manufacturing and markets makes it vulnerable to political unrest in that country.

Apple could become the target of growing nationalism and anti-Americanism in China, which could reduce its market
share.

Apples close association with China could become a political issue in countries like the United States and Japan if
China were to be perceived as a threat.

Apples dominant position in fields like music could lead to antitrust concerns and political pressure to break the
company up or limit its market share.

Abhimanyu Bizelwan MFM-III

Economic Factors

Increased labor costs in China could take away the cost advantage
of some Apple products.

Stagnating middle-class incomes in some developed countries,

including the United States, could shrink the potential market for
higher-end consumer goods such as those marketed by Apple.

Astrong U.S. dollarcould increase exchange rates, making it more

expensive for Apple to do business in key markets like Europe and
China.

Abhimanyu Bizelwan MFM-III

Legal Factors

Apple has recently entered the highly regulated financial services sector via Apple
Pay. This could increase the level of regulation and government oversight it faces.

By offering financial services, Apple could face increased levels of litigation.

News reports indicate that Apple is planning to enter another highly-regulated

sector: automobile manufacturing.

Entering the auto business could increase regulatory, insurance and litigation
costs at Apple.

Apple depends on a variety of products covered by intellectual property laws, such

as software and music, for much of its income. This leaves the company highly
vulnerable to both piracy and litigation.

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Product Life Cycle: Introduction

Stage

The MP3 player industry was not created by Apple with South
Korean firm, SaeHan, launching the worlds first MP3 player into
Asia in 1997

Despite this and a few other competitors, the iPod blew them all
away with its cool factor, advanced technical capabilities, clickwheel control and soon-to-be unmistakable white headphones.

In accordance with the Product Lifecycle theory, the iPods launch

was initially a basic model, available in only 5GB or 10GB and with
a hefty price tag of 300.

Through its awareness objectives and to build reputation as a

credible brand, informative television advertising was used to
demonstrate the products usage and emphasize the benefit of
listening to music on-the-go.

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Growth Stage

The MP3 player had become the fastest growing consumer electronic product ever introduced
and was rapidly gaining market acceptance.

The innovator market was reaching saturation, so an expanded product line was becoming
crucial.

Consequently, Apple sought to broaden its market appeal in 2004 with the launch of the iPod
Mini and thisbecame highly popular with teenagers and women due to its range of colors,
smaller size and reduced price.

Over the next three years, as typical of the growth stage, iPod Nano, Shuffle and Touch product
extensions were launched to stave off competition fromSamsung, with its YP-P2 touch screen
MP3 player, and Microsofts Zune.

In addition to the arrival of Apple Stores to the UK in 2004, distribution channels were further
expanded beyond electrical stores to include supermarkets such as Tesco (in 2005).

Apples commitment to the iPod range was demonstrated in devoting 60% of total advertising
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to MFM-III
product line, in support of the memorable silhouette figures TV, print and outdoor

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Maturity Stage

By 2008, the iPod can be said to have reached maturity with global sales peaking at 54.8m units.

To expand sales and compete in mature markets, Michael Porters three key strategies for achieving a competitive
advantage are a useful reference; cost leadership, differentiation and focus.

With each new iPod generation, Apple continually broke new ground in design and performance, including the
introduction of colour screens, camera/video, Nike+ functionality and increased battery life to name just a few few.

Furthermore, the seamless ecosystem integration of the iPod with Mac PC, Apple TV and iCloud creates switching
costs for consumers to justify a price premium.

Arguably most importantly however is the strength of the Apple brand itself. More than a technology company, even
back in 1997, the Guardian described Apple as the marketing company of the decade. Still today, Apple is seen to
be all about imagination, design and innovation and people connect emotionally with the brand that creates an army
of evangelists and a community that many more want to be apart of.

A typical feature at the beginning of the maturity stage is shakeout of firms failing to successfully implement one of
Michael Porters generic strategies, as typified by the exit of Microsofts Zune in 2011 as well as many others.

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Decline Stage

Apple CEO, said I think all of us have known for some time that the iPod is a declining business. Given the
peak global sales in 2008, by 2013, this had dropped significantly to 26.3m; despite new generations of the iPod
Touch and Nano.

This should not have been unexpected after Steve Jobs claim in 2007 that the iPhone launch was the best iPod
weve ever made meaning consumers have little need to own an iPod as a separate device and its sales were
therefore inevitably cannibalized.

Whilst the decline stage of the PLC is generally characterized by price discounts, the iPod is somewhat
unconventional in that it maintains a premium pricing strategy to protect Apples brand image.

This likely further contributes to declining sales as the iPods value subsides relative to both the iPhone and iPad
products.

The iPod offers a prime example of the ever-shortening Product Lifecycle in todays age of rapid technological
development.

Whilst the tiny-but-mighty device will soon be a thing of the past, it will always be remembered as the dawn of
Apples boom era which is now driven by the iPhone and iPad.

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Cultural Awareness

Apple will set up an office in southern India to develop the Maps feature for its products

The biggest growth inconsumer spendingin coming decades will be in areas of the world such as Africa
where people are unfamiliar with Apple products.

Consumers in those markets and younger people in Apples established markets, such as the United
States, lack the strong emotional attachment to Apple products that drive sales.

There is a backlash against expensive and stylish products among some customers in the United States
and Europe.

Ethical concerns about Apples manufacturing in China could limit its products appeal among sociallyconscious consumers.

Apples close association with China could offend some potential customers in other regions, such as
North America and Europe, particularly if tensions with China rise.

Apples musicmarketing strategyhas created resentment and led to public criticism from major recording
stars that could tarnishthe brands image.

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References

file:///C:/Users/sony/Desktop/Apple%20Inc.%20-%20Wikipedia,%
20the%20free%20encyclopedia.html

https://themarketingagenda.com/2014/06/01/end-of-the-cycle-forapples-ipod/

www.mergetonline.com

Abhimanyu Bizelwan MFM-III

Abhimanyu Bizelwan MFM-III

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