investigation of marketing strategies of Apple's iPhone PDF

An investigation of marketing strategies of
Apple's iPhone in the US
Dissertation

Abstract
The company ‘Apple Inc.' is an MNC, which creates and sells the consumer electronics, Pc's,
software for computers. It has many stores all over the world. The main products of the company
are iPhone, iPod, iPad and Macintosh line of computers. Since the company has high brand
awareness, the products are recognized worldwide. The company enjoys a competitive edge over
other competitors. The purpose of this study is to investigate the marketing strategies of the
company for its most popular product ‘iPhone’. The main objectives of this study are: to find the
best source/media for marketing of Apple iPhone in the US, to analyze the appropriateness of
pricing strategy for Apple iPhone in the US, to investigate the factors that make people buy
Apple iPhone and to determine the shopping behavior of customers of Apple iPhone. A
questionnaire was formulated to carry out the study which was responded by a sample of 200
people of USA. The sample was selected using the method of convenience sampling. The data
was analyzed using bar graphs and pie-charts. The findings showed that the existing marketing
strategies of the company are appropriate to great extent as all the four P's of marketing are
satisfactory for the customers. The ‘product' is liked by the people; they are happy with the
features and usability. Also, they prefer to buy it over other brands. The ‘price' is also
appropriate. The ‘place' preferred stores and the customers feel that availability of product is also
convenient. Lastly, the ‘promotion' is successful as 99% of people are aware of the brand; the
strategies of marketing are placed appropriately and are efficient to attract the customers. Few
recommendations are also mentioned in the end to help the company in improving its marketing
strategies further.
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Acknowledgement
First and foremost, I would like to show my gratitude towards the one who had a significant
contribution to the accomplishment of this research paper: my coordinator, who offered all her
support and guidance in a timely manner. I was extraordinarily fortunate to benefit from her
valuable and in the same time constructive suggestions and I must confess that I would not have
embarked in this academic research without her prior teaching in statistics and econometrics.
My gratitude goes also to the managers of Apple Inc., company that served as the study case for
my paper. Their unlimited and indispensable help gave me the possibility to progress with my
research paper; therefore their co-operation is indeed appreciated.
I would like to acknowledge the academic and technical support of my institute, particularly in
the award of Bibliographic and External Affairs Research Service offered to the students by the
Central Library.
Finally, I want to express my sincere thanks to all those, who, in one way or another, contributed
to the development and completion of this dissertation.
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Contents
Introduction.................................................................................................................................................4
Major products and services...................................................................................................................6
Brief Chronology:.....................................................................................................................................9
Major competitors of Apple Inc.................................................................................................................11
Apple, Inc.’s Values....................................................................................................................................11
Literature review.......................................................................................................................................13
Research Methodology..............................................................................................................................25
Objectives..............................................................................................................................................25
Research design.........................................................................................................................................25
Participants............................................................................................................................................26
Data collection.......................................................................................................................................26
Sampling................................................................................................................................................27
Instruments...........................................................................................................................................28
Scale used..............................................................................................................................................28
Data analyses technique........................................................................................................................28
Limitations of the study.............................................................................................................................29
Data analysis..............................................................................................................................................30
Findings and Results..................................................................................................................................39
Conclusion.................................................................................................................................................43
Recommendations.................................................................................................................................45
References:................................................................................................................................................47
Appendix...................................................................................................................................................52
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Introduction
The technology industry gives establishment to exercises, for example, chip creation, data and
correspondence frameworks, and PC i.e. personal computer frameworks. The organizations
having a place with this industry serve as designers and makers of the items which expand
effectiveness and generation of mobile phones, PCs i.e. personal computer, TVs i.e. television,
and other communication and information systems. It is a gigantic industry with a high
development potential, yet it is at times experience unstable cycles, similar to the semiconductor
business. As chips are getting smaller and globalization is expanding, interest for quicker and
productive innovation, interest for mechanical or technological industry in expanding.
Apple, Inc. begun as a thought of one man. This man was Steve Jobs. Jobs and his companion,
Steve Wozniak, were two secondary school dropouts living in the Silicon Valley with to great
degree imaginative and intelligent personalities (Ali, 2009). The pair collaborated while working
for Hewlett-Packard, to begin Apple, Inc. from the storm cellar of Jobs' home. The pair made the
primary Apple Computer on April 1, 1976. The rest, as it's been said, is history. The formation of
that first PC i.e. personal computer—and consequently the introduction of Steve Jobs' mind kid -
is the thing that began Jobs and Wozniak on the way that has now altered the way that numerous
individuals everywhere throughout the world utilize a computer, hunt the web, listen to music,
and even chat on the telephone. Apple, Inc. is the ideal case of how a fantasy turned into reality
—with extra special care.
Apple Incorporation is a multinational organization that makes and offers consumer hardware,
PC i.e. personal computer software or programming, and personal computer, offering in 363
stores around the world, (Ali, 2009) with worldwide sales of about US$16 billion in stock. Also,
Apple conveys computerized stimulation content through its iTunes Store. While at first offering
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just music, the store has developed to incorporate recordings, TV programs, movies, and book
recordings. With the presentation of the most recent iPod Touch and iPhone in 2008, clients
could likewise buy applications and diversions, including eBooks, for these cell phones from the
App Store in iTunes.
Apple Inc. (Apple) Is the United States based organization utilized in modernizing and
Advancement of Computers, convenient computerized music players, versatile correspondence
and media gadgets. The organization offers individualized computing items that incorporate
stationary desktops and helpful PCs, related gadgets and peripherals, and additionally outside
equipment and programming items. Programming items incorporate Mac OS X invariants from
Snow Leopard to Mountain Lion; it's chief working ("APPLE INC. AND THE EBOOK
READER", 2009) framework, the Macintosh programming including shopper, instruction, and
business situated application programming all through the United States and beyond.
Apple Inc. is the creator, organizer, publicist of PCs i.e. personal computer, compact
computerized sight and sound substance (video and music), and flexible particular/specialized
gadgets. The association furthermore offers a variety of related programming, organizations,
peripherals, sorting out courses of action, and the outsider modernized substance and
applications. The association's game plan of offerings incorporates Macintosh (Mac) enrolling
structures, the iPods line of adaptable propelled music and video players, iPhone handsets and
iPad advantageous sight and sound and handling devices. The association in a general sense
works in the US. It is headquartered in Cupertino, California and uses 46,600 delegates. Apple
Inc. offers its things worldwide through their branches in different countries other than their
online stores. Apple Inc. was set up by Steve Jobs in 1976 in the United States and transformed
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into the avant-garde in the e-music compact, mobile phone and PC i.e. personal computer
industry.
Apple has built up a one of a kind goodwill in the consumer gadgets field. The individuals who
use Apple hardware have a tendency to be excited about and faithful to the items while the
individuals ("APPLE INC. AND THE EBOOK READER", 2009) who have no experience with
Apple's items frequently criticize them as being overrated.
In 1986, he gained the PC i.e. personal computer illustrations division of Lucasfilm Ltd, which
was spun off as Pixar Animation Studios. He remained CEO and lion's shareholder until its
procurement by the Walt Disney Company in 2006. An occupation is right now an individual
from Walt Disney Company's Board of Directors. Employments' history in business has
contributed enormously to the myths of the peculiar, individualistic Silicon Valley business
visionary, accentuating the significance of configuration and comprehension the critical part feel
play out in the open offer. His work driving forward the advancement of (Singh, 2006) items that
are both useful and rich and elegant and has earned him a committed following. In mid-January
2009, Jobs took a five month time away from Apple to undergo a liver transplant.
Major products and services
Apple is a leading player in the PCs, versatile computerized music players, and cell phones. A
portion of the key items and administrations of the organization include:
MAC products:
Mac mini, MacBook, Mac Pro, MacBook Pro, iMac, MacBook Air
Mac Accessories:
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Magic Trackpad, Cinema Displays, Magic Mouse, Apple Battery Charger, Keyboard
Wi-Fi Base Stations:
AirPort Extreme, Time Capsule, AirPort Express
Servers:
Mac OS X Server, Mac OS X Snow Leopard, Xsan, Mac Os X Mavericks
Applications:
iWork, Logic Express, AppleWorks, Final Cut Studio, Apple Remote Desktop, iLife, Final Cut
Server, Final Cut Express HD, Logic Studio, QuickTime 7, Aperture
Major Products
iPod classic, iPod shuffle, iPad, iPod Nano, iPad mini, iPod touch
iPhone:
iPhone 4 G, iPhone 4 S, iPhone 5 C, iPhone 5 S, iPhone 3G, iPhone 3GS
iTunes:
Movies, Music, Games, Applications, Audiobooks Podcasts, TV Shows
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Apple was set up on April 1, 1976, by Steve Jobs, Steve Wozniak, and Ronald Wayne, to offer
the Apple I PC i.e. personal computer unit. They were assembled by Wozniak and initially
uncovered to people in general at the Home mix Computer Club in Silicon Valley. The Apple I
debuted in July 1976 and was sold at business sector estimation of $666.66, which is equal to
$2,723 in the year 2012 money related qualities on inflation (Casey, 2016). This foundational PC
i.e. personal computer comprised of a motherboard with Central Processing Unit (CPU),
Random Access Memory (RAM), and essential content-composed video chips. This PC i.e.
personal computer is for sure makes today's finished PCs i.e. personal computer.
Apple once in a while presents another kind of item. Hence, rather than being the pioneer, they
are a specialist second mover' by refining existing items. Compact music players and notebook
Computers are cases. Apple builds the claim of these items by making them jazzy and more
practical. They now seem ready to make compelling steps in the home PC i.e. personal computer
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showcase and to making an aggregate advanced technophile way of life whereby the house is a
mixed media hub.
Brief Chronology:
1976 With $1,300, steve jobs and Steve Wozniak
found Apple Computer, Inc.
1980 Converts to public ownership
1982 Company with annual sales of $ 1 billion
becomes the first personal computer
company.
1985 John Scully expects the helm after an
administration shakeup that causes the
departure of Jobs and a few other Apple
officials.
1991 Line of Notebook – PowerBook released
1994 Power Macintosh released
1996 Procurement of NeXT takes Steve Jobs back
to Apple as an extraordinary consultant.
1997 Steve Jobs named as interim chief executive
officer
1998 All-in-one iMac released
2000 Jobs, immovably in order as CEO, regulate a
leaner, all the more firmly engaged Apple.
2001 With the release of iPod, it also opens its first
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retail store in Virginia.
2003 Company opens its first store in Japan
2005 The arrival of a video iPod, the fifth era of the
gadget, pushes all out iPod unit sales to 30
million.
On January 9, 2007, Steve Jobs put sneaker to the stage to give a standout amongst the most
extraordinary (Casey, 2016) keynote presentations of his life—an existence loaded with amazing
keynote presentations—and ever. He said he would present a wide-screen iPod with touch
controls, a progressive cellular telephone, and a leap forward web gadget. But, it wasn't three
items. It was one item. We got it, Steve. It was the iPhone.
In first-quarter 2007, Apple dispatched its "progressive" item, the iPhone. IPhone consolidates
three ideas well known with clients: a cell telephone, a widescreen iPod, and a specialized web
gadget. The iPhone gloats "a totally new client interface taking into account a vast multi-touch
display and spearheading programming." which clients can control, just simply with their
fingers. The iPhone default Internet program will be Apple's own Safari. However, it is
interested in another programming also. The iPhone considers 8 hours of talk time. Apple sold 1
million iPhone less than three month after this item was accessible to clients. Apple anticipates
that this pattern will keep during 2008 and to achieve offers of 10 million iPhones, taking 1
percent of the cellular mobile phone market share.
Apple I was the primary item that Apple Inc. created. It was a PC i.e. personal computer with an
MOS 6502 cup timed at 1 MHz and 4Kb memory. In 1977, Apple presented Apple II, which
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turned into an exceptionally effective gadget. After that, the organization started to create Apple
II arrangement. The Apple II was trailed by Apple II, also, Apple IIe, Apple IIc, Apple IIGS,
Apple IIc Plus, and Apple IIe Card ("Apple II", 2000).
Apple presented Macintosh in 1984 that turned into an exceptionally fruitful PC. It was the first
computer including a graphical interface and a mouse for a route. The new PC sold extremely
well, pushing apple's monetary 1984 sales s to an exceptional 1.5$ billion.
For reasons as different as its rationality of thorough tasteful configuration to its distinctive
publicizing effort, Apple has set up a special reputation/goodwill in the customer
electronic/gadgets industry. This incorporates a client base that is committed to the organization
and its image, especially in the United States. Fortune magazine named Apple the most respected
organization in the United States in 2008 and on the planet in 2008, 2009, and 2010. The
organization ("Apple II", 2000) has additionally gotten broad feedback for its contractual
workers' work, natural environment, and business practices.
Major competitors of Apple Inc.
Microsoft Nokia Samsung HP Blackberry Dell
Apple, Inc.’s Values
 We trust that we're on the substance of the Earth to make incredible items.
 We have faith in the straightforward, not the complex.
 We trust that we have to possess and control the essential innovations behind the items
we make.
 We take an interest just in business sectors where we can make a critical commitment.
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 We have confidence in saying no to a many great ventures with the goal that we can truly
concentrate on the few that are vital and important to us.
 We have confidence in profound joint effort and cross-fertilization of our gatherings,
which permit us to improve in a way that others can't.
 We don't settle for anything not as much as greatness in each gathering in the
organization, and we have the self-trustworthiness to concede when we're wrong and
(Fitzgerald, 1998) courage to change.
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Literature review
The evolution of Apple Inc. was a concept of one man, Steve Jobs. Intelligent minds, Jobs along
with his friend Steve Wozniak dropped out from high school (Santa Clara Historical Society,
2012). While working for Hewlett-Packard both the friends teamed so as to start Apple, Inc.
from the job’s home basement (Santa Clara Historical Society, 2012). The first Apple computer
was created on April 1, 1976 (Santa Clara Historical Society, 2012). This lead to the birth of the
brain child in Jobs and both of them revolutionized the use of the computer, listening to music,
internet surfing and even talking over the phone. The company Apple, Inc. can be considered as
a perfect example of changing dream into the reality merely by taking one step at a time.
Apple completely comprehends that the client experience and all of its aspects are vital;
therefore, the commercial campaign organized by the company are very straightforward, stylish
and also differentiated product designs for generating huge interests for attracting consumers so
that they are compelled to buy Apple products. Apple Inc. has been widely known for setting
highly aggressive objectives and aims to achieve them. The company has a strong belief of
having an immense opportunity for changing the way people work and live and sees as an
adventure between the company and customers. (Apple Inc., 2015)
Their marketing strategies have been useful in creating excitement even before the launch of
their products. These endeavors have succeeded in making Apple items optimistic. The main
strategy of Apple is quite ambitious so as to bring about various strategies for all of its product
present in the global market. The main strategy of the company is to expand their share into the
international market once all their domestic markets have matured. Further, the marketing
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strategy aims to bring about new opportunities in the field of the smartphones and tablets owing
to the growth in the economy as well as technology.
Apple will discover challenges in various societies and cultures. However, the high-techproduct
like the iPhone are more invited in the marketplace because of its high reputation and the lack of
accessibility of these items in the Asian business sector. Moreover, selling and offering
operatingfrom outside the home business sector can upgrade the capacity of the organization for
competing with major rivals like Samsung, Microsoft and convey information into the
association for expanding its pool of inventive thoughts. When iPhone was launched, the
excitement was not only contained in the U.S. as Apple had chosen to take its marketing
approach in European countries as well. For expanding its business in France, the company stuck
a huge deal a Telecom's mobile subsidiary in France known as Orange, and it was selected as the
exclusive carrier in France (Woyke, 2007). In the United Kingdom, O2, mobile subsidiary of
Telefonica was selected as the exclusive wireless carrier and just like AT&T it is required the
two-year contract from its customers (Olson and Laurent, 2007).
A firm named Parks Associates released their mobile research depicting that around 86% of the
U.S. broadband households have a smartphone now. The market for smartphones has been
inclining in the European market as well. Around 76% in the U.K, 78% in France, 82% in
Germany, 90% in Spain have a smartphone. Study further revealed that 40% of the market of
smartphones have been controlled by Apple whereas Samsung holds 31% and the next rival is LG
with 10%.("Apple iPhones accounted for 40% of U.S. smartphone market in 2015", 2016)
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4 Ps (marketing mix) of Apple
Product
Products can be considered as the goods and services that are provided by any business for sale
for targeting the marketplace (Pearson, n.d.). Apple like other companies started with the
products. Initially, the Apple computers known as MAC were regarded as overpriced niche
products having a low market share. The communication segment was the only sector that was
considered as a great tool for designing and AV applications, however, the rest were loyal only
to the traditional PCs. Still, Apple continued towards building their foundation of a brand that
will advocate by design, innovative style and by combining unprecedented features. Recently, it
is seen that Apple has diversified its product mix through the introduction of the new line of
products and simultaneously kept with their competitive consumer electronic marketplace. Some
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of the well-known products of Apple are iPod that is portable music player is the first product
range of Apple, which was launched for competing in the portable media player market. After
iPod, iPhone was the second product that came along, it was one of the most innovative device
having several features like the phone capabilities, and personal organizer, music player, and
portable computing were all put in a small sized handheld and had since then dominated the
market of mobile phones. (Laugesen& Yuan, 2010) A unique feature of iPhone is its capability
of allowing customization that can be done on the basis the individual needs of the users and
therefore comes out as relevant products to the target market. Some other widely known products
of Apple includes Apple TV and the iPad handheld and a touch form of a mini-computer.
Price
Yudelson (1999), stated that price is related to the amount of money that must be paid by the
customers for purchasing the product of the company. Apple does not consider pricing as their
competitive advantage from the very beginning. Apple makes use of their best resources for
making a final product look great first and then they consider the cost and pricing as per the
product (Cusumano, 2008). The only exception to this trend is their iPad. The competitors of
Apple have been introducing their own tablets and similar devices, however, none of these
products have the price similar to the price of Apple's iPad even when the products have the
same quality of hardware and software components. This clearly shows that Apple has been
leveraging some of the advantages of the supply chain that were earned from the iPod and
iPhone with regards to their materials like touch screens as well as the flash memory for keeping
pricing down for iPad. This factor has made it quite impossible for their competitors to approach
even near their terms. Their rival firms like Microsoft and Samsung have been operating in
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various business segments that have been tied together with various component suppliers might
come closer to Apple over time, but it is a serious battle for their best products to pose a threat to
the brand of Apple even for a short-term. Therefore, the high price that is charged to their
customers for their products depict the high quality of all their product and also that the
customers are quite willing to pay for these.
Promotion
Promotion is referred to as the act of communicating about the benefits as well as the values of
the product of the company to their target groups and consumers (Villing and Company 2011).
The commercial spots of Apple are recognizable easily to everyone even the ones who do not
buy any Apple product. Their commercial are easily identifiable owing the utilization of a
simplistic approach of their products’ outline and is featured on a plain white background along
with a catchy music that is played in the background. They simply use the approach of meeting
their less-is-more products to the advertising of less-is-more method. Their advertisements
contain visuals and are visually plentiful but do not seem to be overpowering like the
advertisement of other products (Chazin, n.d.). Once a new product is launched, a press
conference is scheduled with various major tech blogs. Various websites are also seen to
participate in the event. Around half billion dollars are paid annually solely on paid media by
Apple; this amount is fairly less compared to the expense of rival companies namely Dell and
Microsoft. The advertisements of Apple are highly pervasive than they seem to be when
memorability is concerned. Apple, in the nutshell is considered as a poster star having the power
of high word-to-mouth marketing along with high brand loyalty (Chazin, n.d.).
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Place
According toVilling and Company (2011) positioned that place is directly related to the location,
distribution, and method of bringing the product to the customers. A hybrid distribution channel
has been adopted by Apple that involves a physical outlet, online store and retail points of the
mobile service provide exclusively. Apple has realized that when the target market is the
teenagers and students, the brand preferences can be influenced highly by the development years
of computer users of the new generation. Place, the 4th element of the marketing mix includes the
opening of new iconic Apple retail stored by the highly dramatic 'Jobs-led' initiative. Due to the
opening of various new retail outlets, the consumer reach of Apple has inclined widely in the last
decade. These days the Apple products like iPhone, iPad, iPad, etc. can be seen in any electronic
store. Furthermore, their products are available at various retail outlets and huge e-commerce
sites like Apple's website and Amazon, which had made it easier for the consumers to buy
anything they wish to buy instantly (Plunkett, 2008).
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SWOT Analysis of Apple
SWOT analysis can be defined as the method for analyzing the business, it environment and
finally the resources.
For evaluating the success, progress as well as the faults of Apple, the SWOT analysis can be
used. It considered as a strategic planning tool which can help for the evaluation of strengths,
weaknesses, opportunities, and threats of an organization. SWOT helps in identification of
internal and external areas that require improvement and for proving their success.
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Strengths
Include the resources and capabilities of the
organization that is useful in developing a
competitive advantage.
1. Apple is the pioneer of producing
innovative and high-tech products especially in
the computer (MAC), electronic (iPod, iPad)
and mobile (iPhone) industry.
2. Incredible brand loyalty.
3. High technologies are employed with
unique features for the purpose of luxury
customer satisfactions and first-degree price
discrimination.
4. Ease of use by utilizing user-friendly
design elements.
5. High strategic agreements along with
renowned mobile carriers like AT&T and T-
Mobile.
6. Strong and highly dedicated R&D
department.
Weakness
Indicates the absence of strengths
1. Increasing competition
2. High responsibility and obligation for
the company while launching new products.
3. Apple iPhone has turned costly due to
high technologies and are considered as non-
affordable for many people.
4. Lack of promotion as well as the failure
of notability of two of Apple TV and Mac
mini.
5. Restricting iPhone into a single mobile
operator in many countries.
6. Does not have an adaptation of their
hardware and have the small market share.
Opportunities Threats
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Opportunities can be considered as the external
factors that can help to achieve various the
objectives of the organization.
1. High growth in the market of computer,
phones and technology has allowed having a
high demand in future.
2. High growth of green as well as energy
saving products in the market.
3. Joint venture for maintaining cordial
relationships with companies so as to eliminate
the competitors.
4. The introduction of the new line of
mobile, computers and electronic products
which are aimed directly at the price conscious
customers.
5. Filling up all the market gap by
introducing innovative features.
6. International expansion
Threats can be considered as the external
factors that are not supportive towards
achieving the objective for the company.
1. High competition in the market by
Microsoft, HP, Samsung, etc.
2. Change in the preferences of customers.
3. High trade barriers with the
introduction in new regulations.
4. Premium pricing that is not affordable
to most of the masses.
5. Substitutes products like tablets that
can kill the need of phones.
6. Global recession
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Adcock (2000) stated that the competitive advantage is also termed as the strategic advantage and
can be achieved when the company has a benefit over its rivals, and it can, therefore, help to
position and strengthen the position of the company at a better place within the competitive
industry.
Apple stands out in the marketing of its product (Rob Enderele, 2004). The company understands
the needs of the customers and about its areas of products and services for executing their
ultimate vision. The company targets all the consumers present in the high-tech market and
therefore provides both physical as well as digital assets (Fast Company, 2011). Apple does not
talk about the technology or any new feature but regarding how the computer can change our
lives. The products of Apple are designed for addressing all the concerns of the lifestyles of their
consumers that makes the whole graphic systems, as well as the design of the product of the
Apple, are always superior to the same products that are introduced by their rivals present in the
same competitive market segment (Nudd, 2011). Apple advertises regarding their products for
offering a better lifestyle to their customers and therefore introduces the trends of lifestyle and
aesthetics. Apple has been regarded as a unique electronic manufacturer due to its approach of
launching the product that is easily identified by the fast moving customers. On the launch of the
product, the product is highly supported by an advertising campaign and eventually leads to the
generation of a large amount of revenue and sales. This approach has been quite successful and
has made people excited regarding his products of the company positioning it as the pioneer of
the technology industry.
The other PC manufacturing brands have been competing for promotion, shelf space, the
position at the retail whereas Apple has invested heavily in their efficient retail management
strategy. As of 2011, Apple had over 300 stores in countries and out of which around 87 were
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outside United States (Bajarin, 2011). The company is highly aware of the importance of
interaction with their customers for understanding their needs and changing taste time to time.
There are Apple retail stores where the can directly communicate with their customers and can
understand their point of view. The customers and potential customers are welcomed to enter the
retail store and to experience the products of Apple; they are then asked to provide the
management their expectations and feedback and what they liked or disliked about the product
they tried (Bajarin, 2011).
Their feedback helps the company to understand the mindset of the customers by evolving or
adjusting to their needs and therefore helps Apple to stay ahead amongst its rivals. Consequently,
the retail stores of Apple hosted around 71.1 million visitors solely in one single quarter in 2011.
In 2010, these statistics were inclined around 51% over the same period (Bajarin, 2011).
Additionally, the retail stores of Apple brought around $3.19 billion in one single quarter, that
has been considered as a Q2 record and saw an increase of 90% in the same period in 2010
(Bajarin, 2011). The unique experience has brought about by Apple Inc., which has created a
loyal set of customers for the company. In 2012, as per the survey of Goldman Sachs, around 88
percent of iOS users owning Apple tablet or any smart device was seen to have struck to the
same brand while buying their next device (Elmer-Dewitt, 2012). Additionally, it was seen in the
survey that, 21 percent of them claimed to purchase Apple’s devices regardless of the price of
that product (Elmer-Dewitt, 2012). This can help to depict the loyalty of the customers of Apple,
and the company is bound to make profits only by satisfying their loyal customers. The vision of
the company under the supervision of Jobs was to create new markets and creation of new
demand for various products that can go beyond all the existing products (Tim Cook, 2012). The
vision of the company under the management of Cook is to maintain all their core fundamental
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of all the successful products and services and for the creation of the higher number of demands
(Tim Cook, 2012). Cooks has been trying to expand the market share of Apple Inc. along with
their current products on the international level and also to create higher demand for Siri and
iCloud (Meyer, 2012).
All the electronic companies are termed as Business Units, and all these units tend to integrate
with their own P&L and R&D. All these business units are competing and also possess with
them a high risk for brand equity's weakening and ultimately lowering of the loyalty of these
companies (Andrea Regnette, 2011), Apple, on the other hand, is comprised of being a company
responsible for managing all the products and not the categories. In spite of high turnover, the
company has just one R&D for all the products and consequently looks at only one P&L. This
leads to full compatibility of the products with each other, and all its supplementary accessories
can be used on all of their products making their customers enjoy the brand experience. This
ultimately leads to high satisfaction among the customers.
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Research Methodology
Objectives
 To find the best source/media for marketing of Apple iPhone in the US.
 To analyze the appropriateness of pricing strategy for Apple iPhone in the US.
 To investigate the factors that make people buy Apple iPhone.
 To determine the shopping behavior of customers of Apple iPhone.
Research design
This study is a descriptive study. The principle thought behind this kind of study is to
characterize the attitude and conduct clients on an administration level understandings i.e. what
components cause an iPhone to be compelling and consequently how it fulfills the client’s level
of satisfaction. Likewise, the reason for this study is to portray the attributes of clients i.e. their
level of fulfillment. It is quantitative in nature and respondents needed to pick their reactions
from certain pre-characterized sections.
Further, the researcher has arrangements to follow a normal, systemic and methodological
methodology for this investigation; it will be helpful for future writing or literature, telecom
industry, which can be added to the group of information. The study clarifies the investigation of
marketing strategies of Apple iPhone (Fitzgerald, 1998) in US and center will be social and
internet showcasing with a brief point of interest on an all-encompassing perspective of the
promoting which is strangely limited in its industry, and the strategies will be
subjective/qualitative and quantitative. The analyst has looked into a few approaches before
locking the decisions of strategies accessible to discover the issue to direct this exploration.
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Participants
The people of US
Data collection
The primary research comprised of mainly qualitative/subjective information accumulations like
open meetings, workshops, industry gatherings through various presentations, occasions, class,
and talk with the business proficient through LinkedIn, telephonic discussion, saw in the
incorporated environment for particular information. A subjective/qualitative research
particularly concentrates on quality and is utilized to find the reason top to bottom. The scientists
or researchers scholastically and for all intents and purposes utilizing immensely, as this
apparatus considers for comprehension the specific connection and helping with anticipating to
make the conclusion. The investigation is the efficient procedure of accumulation and breaking
down the data. Additionally, a legitimate and information lead approach technique. This system
is considered as a distinctive methodology on significance elucidation, likewise theoretically and
in fact refined strategies.
While the secondary research will be, quantitative techniques comprise of surveying the
actualities and assessments in articles, books, journals, reports and online sites, the sign of the
telecom business, the Government's advantage and by review information accessible for
comparative sort of exploration accomplished for a comparative industry (Johnson & Li, 2012).
The information gathered for advertising effort, daily papers, PR, web journals, data accessible
on online networking and meetings will be examined. At present, in the telecom business online
methodology, two client’s studies are accessible; one for general client view about the
telecommunication and involvement with the corporate social obligation ("Statistical data
26

analysis and inference", 1990). The second one is for working out, observing applications audit
as an engagement instrument for client inclination and also industry marking office.
Primary Data: The strategies that will be utilized to gather primary information:
Questionnaire – A questionnaire is an exploration instrument in which there are some inquiries
for the social affair the data from the respondents. It comprises of both open ended and close
ended inquiries.
Secondary Data: Secondary data are the data, in which it includes:
a. Journals and Magazines
b. Newspapers
c. The Internet, etc.
Technique used for data analysis, Data analysis, will be done through-
i. Graphical representation – Pie Chart
Sampling
The researcher means to assess the information includes the reviews for rightness and fulfillment
and performing an investigation of elucidating reactions looking over meetings accessible on the
web, direct meetings/interviews and literature (Singh, 2006). The provisional inspecting size will
be 200 and the pie-charts, and the bar-graphs will introduce the information analysis which will
accomplish with the assistance of Excel. The researcher is open for the appropriate alternative if
there is an arise of occurrence of time and assets licenses.
27

It's a descriptive research in which all the methodologies work systematically to illuminate the
probe challenges. This incorporates a few strategies and procedures for investigation.
Instruments
A standardized questionnaire was used to collect the information or the data.
Scale used
The nominal scale has been used to analyze the information or the data.
Data analyses technique
MS Excel programming was utilized for making visual diagrams and for applying capacities like
'sum'; 'if'; 'count if' on the information. The quantitative techniques are to quantify the rate of
individuals with a specific in one basic connection to this industry. The center of essential
information accumulation connected with partners, showcasing offices, telecom offices
("Statistical data analysis and inference", 1990). This methodology determines the main part of
respondents for particular answers and delivers straightforwardly to their understandings. This
was additionally worried about finding the certainties; accept an altered and quantifiability and
methodologically, the information are accounted for through measurable investigation. In a
nutshell, this to portray variables looks at the relationship between the variables lastly broke
down the reasons, cause, or issues. This is the device helpful to discover the purchaser conduct
towards the item, the demographics response, and feeling for the statistical surveying and the
medicinal items and administrations.
28

Limitations of the study
1. The sample size was small because of the time and cost restrictions. When the sample
size is small, it creates more possibility of response errors.
2. The questionnaires were filled online so the chance of getting clarity on few questions
declined due to lack of personal contact.
3. The respondents could not be supervised personally while they were responding to the
questions, so the authentication of answers is not assured.
4. The respondents were sent reminders constantly for getting the questionnaires filled, so a
lot of time was consumed in the collection of data.
5. Gender plays an important role while deciding upon the marketing of products (Mittan,
2010). The gender aspect could not be captured in this.
29

Data analysis
Brand consciousness of people
70%
30%
Yes
No
When the respondents were asked that whether they are brand conscious or not, 70% of the
respondents answered that yes; they are brand conscious. Only 30% said that no, they are not
brand conscious.
Customers’ preference for the products
80%
20%
Branded
Regular
30

On asking the respondents that whether they prefer branded products or regular products, 80% of
the respondents answered that they prefer branded products. Only 20% said that they prefer
regular products.
Awareness of the brand Apple
Aware
Unaware
On asking the respondents , that whether they have heard about brand Apple or not, 99% of the
respondents answered that they are aware of Apple as a brand. Only 1% said that they are not
aware of Apple as a brand.
Source of awareness about Apple Inc. products
31

Advertisement in television
Friends
Newspaper
Internet
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45
30%
40%
10%
20%
When the respondents were asked that how did they first hear about Apple Inc. products, 40% of
the respondents answered that they heard about it from their friends, 30% came to know about it
from the advertisements on TV, 20% saw the products on internet and 10% came to know about
it from the newspapers.
Feature or thing that is mostly associated with products of Apple
32

service safety Features
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
30% 30%
40%
When the respondents were asked that which feature or thing they mostly associate with products
of Apple, 40% of the respondents answered that they like the features of Apple, 30% associate it
with safety, and 30% feel that it gives a good service to the owner.
Pricing of Apple's iPhone
Too high High Appropriate Low
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
10%
35%
50%
5%
33

When the respondents were asked about their opinion on the pricing, of iPhone , 50% of the
respondents answered that the pricing is appropriate, 35% said that the price is high, and 10%
feel that it is too high, and 5% think that as per the features and brand, it is low.
Shopping behavior of customers for the Apple products
Apple store Online
0%
10%
20%
30%
40%
50%
60%
55%
45%
When the respondents were asked that where do they usually shop for Apple products, 55% of
the respondents answered that they buy from Apple store, 45% said that they buy from online
stores and shopping websites.
Most preferred color of iPhone
34

Grey
Gold
Black
Silver
Rose
gold
0 0.05 0.1 0.15 0.2 0.25 0.3
15%
30%
10%
25%
20%
When the respondents were asked that which color of iPhone they prefer the most, 30% of the
respondents answered that they like gold, 25% said that they like silver, 20% like rose gold, 15%
of them likes gray and 10% like the black color.
Buying behavior when discount is offered on Apple iPhone
60%
10%
30%
yes
no
not sure
35

When the respondents were asked that if there was a discount on iPhone , would they be more
likely to buy it, 60% of the respondents answered that yes they will buy, 30% were not sure, and
10% were not ready to buy at discounted price too.
36

Rating on the following attributes
1
2
3
4
5
0% 10% 20% 30% 40% 50% 60% 70%
2%
3%
5%
40%
50%
10%
15%
20%
25%
30%
2%
3%
5%
40%
50%
0%
0%
0%
40%
60%
Reliability
Availability
Price
Features
When the respondents were asked to rate the attributes of iPhone, 100% said that the reliability
of the phone is very high, and nobody felt that it is less reliable. Then the 90% of the respondents
said that availability is also good, only 10% were not satisfied with the availability, and they
rated it low. 55% of people rated the pricing on the higher scale i.e. they were happy with the
pricing, but 45% were not happy with the price. 90% of people like the features of the product,
only 10% rated it on a lower scale.
37

The next most preferred brand after, Apple
Microsoft Samsung HTC Sony
0%
5%
10%
15%
20%
25%
30%
35%
40%
40%
30%
10%
20%
When the respondents were asked about the next most preferred brand after iPhone, 40% of
people felt that it is Microsoft, 30% felt that it is Samsung, 20% felt it be Sony and 10% thought
it to be HTC.
38

Findings and Results
1. On asking the respondents that whether they are brand conscious or not, 70%, of the
respondents answered that yes, they are brand conscious. Only 30% said that no, they are
not brand conscious. This means that when it comes to technical products and especially
mobile phones, the customers in the US are brand conscious. They don’t prefer to buy
those mobile phones that have a low brand image or are local products. The 30% who
said know might be low-income group people who don't have the status of buying
expensive branded products, so they don't even try to know about them.
2. When the respondents were asked that whether they prefer branded products or regular
products, 80% of the respondents answered that they prefer branded products. Only 20%
said that they prefer regular products. This means that they have a strong liking for those
products or companies that have a good brand reputation. They don’t like the regular
products that are sold by local companies.
3. On asking the respondents that whether they have heard about brand Apple or not, 99%
of the respondents answered that they are aware of Apple as a brand. Only 1% said that
they are not aware of Apple as a brand. This means that almost all people in the US are
aware of Apple's products. It is a well-known brand there, and it has already built a
reputation in the eyes of customers. It has a broad visibility if 99% of the people know
about it. The 1% people who don’t know about this brand might be from old age group
who have lost interest in the new technology and hence they remain unaware of the
products of big companies.
4. When the respondents were asked that how did they first hear about Apple Inc. products,
40% of the respondents answered that they heard about it from their friends, 30% came to
39

know about it from the advertisements on TV, 20% saw the products on internet and 10%
came to know about it from the newspapers. This means that word of mouth publicity is
most common in Apple. The consumers get to know about the products of Apple from
their friends and relatives who might have used the product, and then they discuss it with
their other friends. This means that the customers are happy with the product then only
they discuss it with their friends. Also, there is a small difference between the responses
of knowing from friends and through an ad in the newspaper. So it means that ads are
also making the customers aware of the product and its features. The internet sources and
newspaper is a less common source of information, so the company has a chance to focus
on these sources too. Therefore the objective ‘To find the best source/media for
marketing of Apple iPhone in US’ can be satisfied from this result that the company
should promote word of mouth publicity and make use of more TV ads to market the
product as these two sources are contributing the most to making the customer aware of
the product.
5. When the respondents were asked that which feature or thing they mostly associate with
products of Apple, 40% of the respondents answered that they like the features of Apple,
30% associate it with safety, and 30% feel that it gives a good service to the owner. The
customers are most happy with the products features and they recognize Apple with its
distinguished features. Then they also feel that products of Apple are safe to use, so they
prefer its products. The customers are also happy with the service of Apple Company, so
they associate Apple with the good service provider. The objective that ‘To investigate
the factors that make people buy Apple iPhone’ is satisfied from this finding as it shows
that most of the people are happy with the features of the product.
40

6. On asking the respondents about their opinion on the pricing of iPhone, 50% of the
respondents answered that the pricing is appropriate, 35% said that the price is high, and
10% feel that it is too high, and 5% think that as per the features and brand, it is low.
Most of the people feel that Apple has priced its product appropriately. But a large
portion of respondents, 35% of them feels that the price is high as per the features
offered. The objective that ‘To analyze the appropriateness of pricing strategy for Apple
iPhone in US’ is satisfied from this finding as it shows that customers feel that the
product is appropriately priced.
7. When the respondents were asked that where do they usually shop for Apple products,
55% of the respondents answered that they buy from Apple store, 45% said that they buy
from online stores and shopping websites. The people generally prefer to buy the
products from the authorized stores of Apple because they might be concerned about the
genuineness of a product or they feel that the store people can guide them better about the
product. But a lot of people also buy online because they may not be willing to travel to
the stores, they might have a strong trust in the websites, etc. The objective ‘To determine
the shopping behavior of customers of Apple iPhone’ is satisfied from this finding as it
shows that most of the people buy from stores so the company should make sure that it
provides good service at the stores.
8. When the respondents were asked that which color of iPhone they prefer the most, 30%
of the respondents answered that they like gold, 25% said that they like silver, 20% like
rose gold, 15% of them likes gray and 10% like the black color. This means that gold is
the most demanded color though rose gold is a very popular color but people may not
41

prefer to buy it as it is most expensive out of all the colors. Black is the least demanded.
This may be because customers have the option of other colors that are more popular
9. When the respondents were asked that if there was a discount on iPhone, would they be
more likely to buy it, 60% of the respondents answered that yes they will buy, 30% were
not sure, and 10% were not ready to buy at discounted price too. Discounts attract
customers everywhere. So if the company is offering discounts, the customers are willing
to buy more. There were few people who were not willing to buy even at discounts
because they may have a strong preference for any other brand or they might not be
looking to buy a new product at the present movement.
10. On asking the respondents to rate the attributes of iPhone, 100% said that the reliability
of the phone is very high, and nobody felt that it is less reliable. Then 90% of the
respondents said that availability is also good, only 10% were not satisfied with the
availability, and they rated it low. 55% of people rated the pricing on the higher scale i.e.
they were happy with the pricing, but 45% were not happy with the price. 90% of people
like the features of a product, only 10% rated it on a lower scale. This means that
customers have regarded all the four things as satisfactory. They feel that the iPhone is
reliable, is easily available, the price is also appropriate, and it has all the good features.
11. When the respondents were asked about the next most preferred brand after iPhone, 40%
of people felt that it is Microsoft, 30% felt that it is Samsung, 20% felt it be Sony and
10% thought it to be HTC. This means that company has the highest competition from
Microsoft as if the customers are dissatisfied with the product; they will switch to
Microsoft.
42

Conclusion
The above analysis shows that all the four objectives of the study are satisfied. The first
objective was ‘To find the best source/media for marketing of Apple iPhone in the US’. This
objective is satisfied from the finding that people get most of the information about iPhone from
their friends and TV ads, so the best source for the company to market its product is via the
channel of the word of mouth publicity and advertisements on the TV. The company should
focus all its marketing strategies on these two channels. Apart from this, the channels of internet
sources like social networking, etc., and newspapers also exist, though they are less popular. The
company should not let these mediums go for marketing. They must also be utilized as in the
coming time; they might become popular means of marketing. But currently, the best source or
media for marketing of Apple iPhone in the US is the word of mouth publicity and TV ads. The
second objective was ‘To analyze the appropriateness of pricing strategy for Apple iPhone in the
US’. This objective is satisfied from the finding that most of the people feel that the pricing is
appropriate, and they have also ranked the ‘pricing' consideration in iPhone on a higher scale
which means that they are satisfied with the price that the company is charging. But there are few
people who were not satisfied with the pricing; the company must make efforts to find these
customers and tell them about how the company justifies the price that it charges. The third
objective was ‘To investigate the factors that make people buy Apple iPhone'. This objective is
satisfied from the findings that firstly customers are more tilted towards buying branded
products, and Apple is a well-established and reputed brand, so people prefer it. Secondly, they
are impressed by the features of the product, the level of security that iPhone possesses and the
services offered by the company. All these variables were responded with almost equal
percentages so all three can be considered as the factors that make people buy iPhone. Then
when the customers were asked to rate certain features of iPhone from high to low like
43

reliability, availability, price, and features, all the factors were ranked more towards the higher
side of the scale which means that these factors are also the reason that why people prefer
iPhone. The fourth objective was ‘To determine the shopping behavior of customers of Apple
iPhone’. This objective is satisfied from the finding that mostly the customers buy from the
authorized Apple stores. They do prefer online buying also, but more respondents said that they
buy from the stores. This means that company must place more of its marketing strategies in the
stores, and it should also promote online purchases as more traffic will divert to stores if the
online purchase is not promoted.
So the existing marketing strategies of the company are appropriate to the great extent as all the
four P's of marketing are satisfactory for the customers. The ‘product' is liked by the people; they
are happy with the features and usability. Also, they prefer to buy it over other brands. The
‘price' is also appropriate. The ‘place’ preferred stores, and the customers feel that availability of
product is also convenient. Lastly, the ‘promotion’ is successful as 99% of people are aware of
the brand, the strategies of marketing are placed appropriately and are efficient to attract the
customers.
44

Recommendations
1. The company should provide value for the products that it offers. The customers can
create a perception of this brand that the offerings are not of premium quality and the
product charged are high because some of the people feel that price is high for iPhones.
So by creating value, it can differentiate its products from that of competitors, and it will
also be able to maintain its policy of premium pricing.
2. If the company gets involved in more aggressive promotional activities, it will improve
the image of the company further. The new customers can be boosted, and sales can
increase. The TV commercials that is created by the company should focus on educating
the people about what latest technology the company has introduced, what special
features are included in the new products, how the new products differentiate from the
old one or the old model. The ads should be more appealing, and it should address the
customers of all age groups.
3. The company advertises the new products and not the old ones or the existing ones. The
company must focus on the marketing of all products so that the sales targets of all
products are met on time.
4. The competitors have the capability to clone the products of Apple, and many have tried
too. So the company should make small innovations continuously so that the competitors
cannot copy them all and at the same time the product remains differentiated. The
innovations can be made in the design of Apple, its features, and specifications so that the
company continues to dominate the market.
5. The company charges premium pricing, but it can offer timely price reductions so that
people don’t feel disheartened from the price. Also, it can offer free gifts, vouchers, etc.
45

to the customers. The new customers can be attracted if timely offers are given. It will
increase the customer base too along with skyrocketing the Apple brand loyalty and its
sales.
6. Since the customers are buying more from the stores, so more outlets should be opened
by the company. This will expand its reach to the customers, and people will feel
comfortable in searching the stores.
46

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51

Appendix
Questionnaire
Name –
Email Address –
Gender –
Age –
Monthly Income -
1. Are you brand conscious?
a. Yes
b. No
2. Which products do you prefer?
a. Branded
b. Regular
c.
3. Have you ever heard about the brand Apple?
a. Yes
b. No
4. How did you first hear about Apple Inc. products?
a. Advertisement in television
52

b. Friends
c. Newspaper
d. Internet
5. When thinking about Apple, which of the following do you mainly associate Apple with?
a. Reputation
b. Usability
c. Features
6. What do you think about Apple's iPhone product pricing?
a. Too high
b. High
c. Appropriate
d. Low
7. Where do you usually shop for Apple's products?
a. Apple store
b. Online
8. Which color of iPhone do you prefer the most?
a. Grey
b. Gold
c. Black
d. Silver
e. Rose gold
53

9. If there was a discount on iphone , you think you would be more likely to buy it?
a. Yes
b. No
c. Not sure
10. On a scale of 1 to 5, how would you rate iphone on following attributes? (1 lowest, 5
highest)
a. price
b. features
c. reliability
d. availability
11. According to you, which is the next most preferred brand after Apple?
a. Microsoft
b. Samsung
c. HTC
d. Sony
54