Marketing Consumers Behavior

This case study analyzes the marketing strategy of iPhone X in Australian market. It includes SWOT analysis, PESTEL analysis, competitor comparison, target market, perceptual maps and recommended changes in marketing mix.

Running head: Marketing Consumers Behavior
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Marketing Consumers Behavior
Name
Affiliation

Marketing Consumers Behavior
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Table of Contents
Introduction......................................................................................................................................3
Company and product overview......................................................................................................3
SWOT analysis............................................................................................................................3
Industry overview............................................................................................................................4
PESTEL analysis..........................................................................................................................4
Political.....................................................................................................................................5
Technology...............................................................................................................................5
Competitor comparison table...........................................................................................................6
Samsung Galaxy Note 8...............................................................................................................6
LG V30........................................................................................................................................6
HTC U11......................................................................................................................................7
Pixel XL.......................................................................................................................................7
Target market...................................................................................................................................7
Perceptual maps and positioning.....................................................................................................8
Recommended changes in the marketing mix.................................................................................8
References......................................................................................................................................10

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Marketing Consumer Behavior
Introduction
One of the most improved sectors in the international market in terms of technology is
the telecommunication industry. The industry has experienced an improvement in technology in
the recent years in the international market. Different phone model of phone have been discussed
by innovators. Some of the leading companies which steer head this sector include Nokia,
Samsung, apple, Motorola, Techno among other companies (O'Grady, 2012). Every company
started in its own country before venturing in international market which currently all companies
is almost found in every country. Some of the reasons why those companies started operating in
international market was to their customers and increase their revenues. In this case study we are
going to discuss iphone X which entered Australian market on 3rd of November 2017.
Company and product overview
Iphone X is a mobile phone which is under communication category. The product’s
parent name is Apple which is located at apple park way, Cupertino, California, U.S.A. The
company was founded by Steve Jobs Steve Wazniak Ronald Wayne in April 1, 1976. In the
international market the company has around 500 retail store worldwide (O'Grady J. D., 2014).
Name of parent company Apple
Location of the company’s headquarters Cupertino, CA, USA
The type of company
(Public/Private/multinational)
Private

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The industry/product categories that the
company serves
Mobile phones and communication category
Brands used by the company Microsoft
The overall value (net worth or latest annual
revenue) of the Company
1. Apple: Brand value $154.1 billion
The product selected iphone X
A full description of the product including The
core consumer need that the product fulfils The
features and benefits of the product
All new liquid retina display-the most
advanced LCD in the industry. Even faster face
ID. The smartest, most powerful chip in a
Smartphone. And a breakthrough camera
system. Iphone X. its beautiful any way you
look at it.
The date that the Product was launched in
Australia
3rd of November 2017
SWOT analysis
In the international market Apple took the world by storm when it launched the iphone X
at Australian market. What most amazed everybody were their IOS operating system and also
the multi touch features (Tar, 2015). For sure, this was the first phones which bared the title
smart phone in the market. Some of strengths which were associated with the product include tag
of innovation, consumer loyalty, amazing software and OS, wide developer support, design
consistency and control in the hand of users. However, in the market the product had some
weakness which included high price, restrictions on the phone, no variety and no Steve jobs

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anymore. In the long run the product offered some opportunities in the market which included
existence of new market for potential customers, advancement of technology, an increase in
dependence on digitalization and lastly but not least geographical expansion (Tar, 2015).
Additional, some of the threats which faced the product and the company in general include
other androids, existence of Samsung Company, risk of the company losing its shine and
continued lack of innovation.
Industry overview
Australian market has developed just like any other market in neighboring countries.
Consumers are continuing to be loyal to every company which offers quality products and satisfy
their needs fully. Iphone X has tried its best to satisfy Australian so far. However, for the
company to fully utilize the telecommunication market in the country more innovation must be
done which will fully fulfill customers need in the long run. The product has potential to become
a leader in the marketing in the future. Apple as a company took advantage of a shrinking
Australian market to increase its shares to around 50 percent. Since the company invaded
Australian market its market share have increased with more than 6 percent which is a great
move for any company.
PESTEL analysis
PESTEL analyses include factors such as political, economical, social, technology,
environment/ecological and legal issues which affect company growth. Apple on its sale of
iphone X product at Australia market also faces these factors. The factors affect the company one
way or the other. However, this piece of work won’t deal with all factor bust it will discuss how
political and technology has affected the company’s operations (Hasan, 2013).

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Political
In the long run political challenges will continue to affect the company, especially with
the current EU move to hunt the tech giants. In August 2016 the European Union declared the
compared owned it $14.5 billion in terms of taxes to Ireland. The tax claims almost threatened
the relationship between US and EU as US felt the claim was unfair and unjustified. Also the
company felt it was unfairly and untruthfully targeted by the EU. On the other hand, Ireland as a
country felt EU regulators was interfering with its sovereignty. This move shook the relationship
between Ireland, Us and the EU regulators (Condoleezza Rice, 2016). However, some scholars
and researchers felt this move was politically motivated. Among other companies, apple is the
biggest taxpayer in the whole world which means such political moves affects the company
revenue in the long run. However, the move never got many in surprise as the EU for the past
years have been targeting other big companies such as Google, Apple and Amazon. The move
means an increased tax burden and as a result reduced profits for the tech giant.
Technology
The company is bound to be affected either positively or negatively by the technology
changes as it is a tech giant. In the recent years the company has witnessed rapid technological
changes which in returns have altered the market dynamics (Gallo & Mangan, 2014). According
to the recent research apple is almost losing its position to other companies such as Google in the
fortune list of world’s most valuable brands. Also the increased number of competitors in the
market which is providing a matching technological value at reduced price has also to a certain
point affected the company’s profits and revenue. While other companies such as Lenovo and
Hp have consistensely maintained their market position in PC industry, Apple Company is losing

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the market significantly. The reason is both technological and economical. However, the growth
in telecommunication sector can drive sales of I-phones but in some extents it can hurts Mc sales
in the market. Another threat which has entered in the market is Google with Nexus and Pixel
(Gallo & Mangan, 2014).
Competitor comparison table
Just like any other products and company in the market apple company on its sales of
iphone X is facing stiff competition from Samsung Galaxy Note 8, LG V30, HTC U11 and Pixel
XL. In one way or the other this competitor affect the apple operations in the market.
Competitors reduce the revenue generated by the company which in return reduces the profit
generated by the company. The above four competitors are discussed in details below
Samsung Galaxy Note 8
Parent Company Samsung
Country of origin Seoul, South Korea
Brand Equity Value expressed in dollar terms $92.3 billion
Market Share 20.9 percent
Industry Standing Electronics industry
Geographic areas served Multinational electronics
Lg V30
Parent Company Lg based in Korea
country of origin South Korean
Brand Equity Value expressed in dollar terms USD 55.91 billion
Market Share held by the competitor 3 to 4 percent

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Industry Standing Electronic Industry
Geographic areas served Multinational electronics
HTC U11
Parent Company HTC Corporation
country of origin United States
Brand Equity Value expressed in dollar terms USD 55.91 billion
Market Share held by the competitor 0.9%
Industry Standing Electronic Industry
Geographic areas served Multinational electronics
Pixel XL
Parent Company Google
country of origin Taiwan
Brand Equity Value expressed in dollar terms $649
Market Share held by the competitor 34%
Industry Standing Electronic Industry
Geographic areas served Multinational electronics
Samsung Galaxy Note 8
Samsung Galaxy Note 8 parent company is Samsung. The company is believed to
manufacture the best quality products in the market. The product’s customers are believed to be
the most loyal customers in the market. From the research the consumers are believed require
quality and satisfactory products which satisfy their needs to the fullest Samsung is believed to
deliver this. Even though, the Samsung prices its product lowly it does not differ much from

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those produced by Apple products. The products are readily available at any given time, and also
it carries enough promotions to reach as many customers as possible (Michelson, 2017).
LG V30
LG V30 is a product from LG based in Korea. The company also produces mobile
phones which are also sold at Australian market. This company is the second biggest competitor
which competes with Apple. It offers cheap, readily available and satisfactory products to the
market. The product is unique and durable which makes customers to like and love them in the
long run. The company is believed to be good at customer social responsibility.
HTC U11
The third biggest competitor of apple’s product in the market is HTC U11 which is
produced by HTC Corporation. The company is also known for produced quality, cheap and
durable products. The company enjoys a significant market. Some of the company advantage
amongst other product in the market is the company uses high technology to produce unique and
durable products which satisfy customers need fully (Michelson, 2017).
Pixel XL
The last but not least competitor which competes with Iphone X in the market is Pixel XL
which is produced by Google. The company is believed to produce products loved by lower and
middle class as the products are affordable. Products from Google are of best quality and durable
compared to other products. The products are unique in nature to their users.
Target market

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This advertisement for IPhone x is about all the unique technologies such as wireless
charging , one of the most powerful chip that ever has been invented for speed , face If to
maximise security , also using face id to create unique emoji to have even more fun
communicating with other people (Sally Dibb, 2011). All glass screen which means no more
home button and one of the best cameras which will capture all the memories in highest quality
with professional photography options and lightening. This ad is targeted to wide range of
people from all ages whom are looking to engage to others and word with using newest
technologies that apple has to offer but mostly young people who enjoy taking photos and after
high security and high quality camera. In the mean time the company targets both youths and old
people. However, due to its complexity in usage the company realizes that majority of youths
uses apple more than old people and a result the company mostly stresses on youth than old
consumers (Sally Dibb, 2011).
Perceptual maps and positioning
In marketing or business world perceptual mapping is a diagrammatic technique which is
used by businesses which attempts to visually display the perceptions of customers or potential
customers. Perceptual maps are also commonly known as the market maps. Also, positioning
refers to the place that a brand occupies in the mind of the customers and how it is distinguished
from products from competitors. Iphone X is considered by customers to be a product of high
quality, and also high priced compared to other products in the market. As a result most of
customers who buy the product are from high class (Sengupta, 2017).

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Figure 1: Perceptual maps and positioning for Iphone X
Recommended changes in the marketing mix
Based on the above analysis I would recommend the company mostly to focus its
marketing mix to young people. The research reveals that majority of consumers who uses
iphone X are youths. Some of the reasons why old people do not like using the product are
because of its complexity on the usage. Majority of iphone user’s largely old people must be
taught on how to use the products. Also, due to its high price the company must focus on high
class and educated people who preferable use the product. The company must also focus on
looking for new customers as well as maintaining the old ones.
Iphone
X from
Apple
High
Qiality
High
Price
Low
Quality
Low
Price

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References
Condoleezza Rice, . B. (2016). Political Risk : How Businesses and Organizations Can
Anticipate Global Insecurity. New York: Grand Central Publishing.
Gallo, C., & Mangan, S. (2014). The Innovation Secrets of Steve Jobs. Bolinda: Bolinda Audio.
Hasan, M. R. (2013). Apple Inc. - An Analysis PESTEL analysis, Porter's 5 Forces analysis,
SWOT analysis, Comprehensive analysis of financial ratios, and Comprehensive analysis
of share performance of Apple Inc. Munich: Munich GRIN Verlag.
Michelson, D. (2017). Samsung Galaxy Note 8 : learning the best features. [United States]:
CreateSpace Independent Publishing Platform.
O'Grady, J. D. (2012). Apple Inc. Westport, Conn.: Greenwood Press.
O'Grady, J. D. (2014). How Apple Inc. changed the world. Mumbai: Jaico.
Sally Dibb, . S. (2011). The market segmentation workbook : target marketing for marketing
managers. London: Routledge.
Sengupta, S. (2017). Brand positioning : strategies for competitive advantage. New Delhi: Tata
McGraw-Hill.
Tar, A. (2015). Apple SWOT Analysis. Munich : GRIN Verlag GmbH.