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investigation of marketing strategies of Apple's iPhone PDF

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An investigation
of marketing
strategies of
Apple's iPhone
inthe 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 fromher
valuable and in the same time constructive suggestions and I must confess that Iwould 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.
2
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.
AppleInc.(Apple)IstheUnitedStatesbasedorganizationutilizedinmodernizingand
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.
AppleInc.isthecreator,organizer,publicistofPCsi.e.personalcomputer,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,sortingoutcoursesofaction,andtheoutsidermodernizedsubstanceand
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 WaltDisney Company'sBoard 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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