Exploring Apple's Innovative Practices in the Market

Innovative businesses, like Apple, satisfy the needs and requirements of their target market, which serves as a development tool for the company. By providing value for money experiences, high-quality products, and innovative practices, companies can gain a competitive advantage in the market.

MARKETING DESIGN AND
INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ONE......................................................................................................................................1
Characteristics of the chosen innovative product........................................................................1
Benefits and value derived by the customers..............................................................................4
Uniqueness of its design elements...............................................................................................5
Brand appeal in relation to competitors.......................................................................................7
CONCLUSION................................................................................................................................8
TASK TWO: REFLECTIVE...........................................................................................................1
Learning acquired through the MDI module...............................................................................1
Learning acquired by undertaking this assignment.....................................................................1
Challenges faced during the module............................................................................................2
Benefits sought to the future........................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Marketing design and innovation is linked with the unique attributes in the product on the
basis of which products are differentiated in the market and in turn it acts as development tool
for the business. Further, in the era of perfect competition it is necessary for every business to
take corrective actions which are associated with innovation so that customers can be easily
attracted towards range of products in the market through innovative features. For conducting the
present study Apple as a brand has been chosen and its iphone series has been undertaken.
During the launch of Iphone in the market only 4 series was introduced in the market whose
features were simple such as 8Mp camera, IOS 4 etc (About us., 2016). So, this product was
introduced in order to meet with the requirement of customers in past. But with the time passed
and advancement in technology company modified its Iphone range and models such as 6, 6S
were introduced in the market.
Features provided in this model were unique and advanced too such as 12 Mp camera etc.
This modification only took place due to changing need and requirement of customers in the
market. At present entire Iphone series is popular in the market due to presence of innovation
and creativity. Apart from this, it has supported in satisfying needs of the target market such as
they are interested in purchasing advanced phones with new features which can provide
convenience to them. Further, it has been discussed how this series has developed in the present
time due to presence of innovative practices. Further, this product has supported in satisfying
changing needs of the target market in efficient manner.
TASK ONE
Characteristics of the chosen innovative product
The chosen product is Apple Iphone whose series has expanded quickly and innovative
features have been added by the business. Further, new models have been introduced by the
company in the market with the motive to satisfy need of the target market. In short, one of the
best examples of innovative is entire Iphone series of company which is well known in the entire
market. In starting Apple introduced Iphone 4 in the market by considering all the needs of the
target market. Product was of moderate price in the market and main focus of business was to
beat its major competitors in the market such as Samsung, Sony etc. After this model 4S was
introduced in the market with some advanced features and this product was more updated as
1

compared with Iphone 4. Some of the unique attributes provided by the company in Iphone 4
are:
 Corning gorilla glass and oleophobic coating
 Chipset Apple A5
 8MP rear camera
 v4.0, A2DP, LE Bluetooth
 Weight 140g
 Resolution 640*960 pixels
So, these were some of the key attributes of Iphone 4 model on the basis of which Apple sold
this product in the market. Further, Iphone 4S was more updated in the market where its
attributes were advanced such as camera quality, processor etc were better as compared with
previous models.
Both the products were developed by Apple keeping in view requirement of the target
market. At the time when Iphone 4 was launched in the market majority of the customers
preferred to purchase mobile phone with 8GB capacity and by considering the same this phone
2

was launched in the market. After this, the requirement of customers changed where 16GB,
64GB and above that became more popular. After launch of 4S series company launched Iphone
5 in the market.
Iphone 5 model gain popularity in the market in short period of time due to presence
of unique features. Main attributes of this product was 1.2 megapixel front camera, 1GB Ram,
ios 6.1.4 and 1440 mAH battery. All these features were updated as compared with 4 and 4S
model which were introduced earlier in the market. So, all the attributes of this model acted as
source of attraction and Apple was able to sell this model successfully (Sikka, 2015). Innovation
took place in the form of features where company updated its ios version along with other type
of features such as camera, RAM, resolution, storage etc. Due to presence of all these innovative
features all the Iphone models were successfully sold in the market by firm and it can be
regarded as one of the main reason behind high performance of business in the market as
compared with its key competitors who are not indulged into practices of launching new models
in the market. After launch of 5S Apple launched 6 and 6S in the market where were also
successful in the market.
3

Benefits and value derived by the customers
By launching new type of products in the market Apple has delivered large amount
of value to its customer (Tsai and Ho, 2013). In short through its successful models such as 4,
4S, 5, 5S, 6 etc company has provided value for money experience to its target market where all
the unique features are present in the product and it has acted as source of attraction for
customers. Apart from this, benefit of advanced features have been obtained by customers such
as advanced camera, high capacity, effective resolution, powerful phone, high tech and
impressive device. All the features present in the phone were above expectations of the
customers in the market and this has somehow contributed in strengthening customer base of
Apple. Further, it is well known fact that for entire range of products Apple keeps prices high
and it reflects that quality of products is high which assist in gaining competitive advantage and
has enhanced market performance of company (KAHNEY, 2012). Moreover, the advanced
processors of the mobile phone support company in retaining its customers for longer period of
time.
Benefits the product provides to customers
Iphone series of Apple provides large number of benefits to customers which are
 Quick and easy to use
 Better hardware along with software integration
 OS updates are easily available
 Advanced applications
 Apple play store
 Best support and help
All these benefits are effective enough to attract customers of Apple in the market.
Further, to better understand this concept innovation diffusion theory is appropriate whose stages
are as follows:
Innovators: It is the first stage in which people lies who wants to try innovation for first time.
Further, in case of Apple large numbers of individuals are present who prefer to purchase new
models of company (Hatch And Schultz, 2008).
Early adopters: individual lying in this category represents opinion leader. They are well aware
about need to change and are comfortable with accepting new ideas.
4

Early majority: They are regarded as rarely leaders but before purchasing products evidence is
required so as to know whether innovation works.
Late majority: Such kind of individual prefers to try any new product when it has been tried by
majority.
Laggards: Individuals lying in this category are bound by tradition and are considered to be
conservative. Further, the key strategies being used are pressure from people etc.
In case of Apple all the customers are early adopters where they are ready to accept
the new product which is being launched by business in the market. So, this proves to be
beneficial for enterprise in every possible manner.
Uniqueness of its design elements
All the products offered by Apple to its target market are unique in nature where
shape, color, design, imagination etc attracts customers and this proves to be beneficial for
organization. Generally the shape of all the Iphone series is same where screen size varies from
one product to another. Apart from this models of Iphone are available in different colors where
the below mentioned image represents this.
Different colors provided acts as source of attraction where company is able to
influence decision making of customers and this has positively affected overall performance of
Apple in the market. Moreover, shape of every model is almost same and it is not possible to find
out any basic difference (Roach, 2009). Apart from this, usefulness of every Iphone varies where
the latest product introduced by business in the market is considered to be more useful. Features
5

of Iphone 6 and 6S plus are quite advanced such as 12MP camera, iOS 9, 3D touch display, dual
core 1.8 GHZ processor etc. All these advanced features make this model of company more
useful and is efficient enough in satisfying need of the target market. The price paid for
purchasing the costly products of Apple are worth and provides value for money experience.
Apart from this, in every form products of company can be differentiated from those of
competitors in the market. Products are convenient to use and gives a kind of luxurious touch. In
case of 6S model company provides options in relation with the internal memory where three
variants are present 16/64/128 GB. So, this feature is also convenient for the customers where it
is possible to store large amount of information in mobile phone. The entire product range
offered by Apple in the market is popular and model of product life cycle is appropriate for the
same whose stages are as follows:
 Introductory: It is the first stage where popular models of Apple lie such as Iphone 6, 6S,
6S plus, SE etc. Company has recently launched all these models in the market with
unique features and attributes (Mozota, 2003). No such features have been offered by
other companies in the market. Therefore, these models are the major strength for Apple
where company is able to sustain in the market and has lead to stronger customer base of
the business. In short, it has enhanced profitability along with sales volume of the
enterprise.
 Growth: Some popular models of Apple lies in this stage such as Iphone 5, 6, 6S etc.
Demands for these models are rising at faster pace in the market and this in turn has
favorable impact on the brand image of organization. So, this growth stage represents
overall performance of business in the market.
 Maturity: It is the stage where product is well established and main focus of business is
on maintaining market share (Mohr, Sengupta and Slater, 2010). All the products of
Apple lying in growth stages also lies under maturity stage. Popular models such as
Iphone 6, 6S etc are in the maturity stage and such products have enhanced market share
of business in the market.
 Decline: It is the last stage where products of Apple such as Iphone 4 and 4S lie under
this stage. Further, sales of both these models have declined in the market and due to this
reason both these models lies under this stage.
6

So, the product life cycle represents overall performance of Apple in the market and
in different stages models of Apple lies. Further, products lying under growth and maturity stage
are efficient enough in meeting with the requirement of customers and this in turn acts as
development tool for the business.
Brand appeal in relation to competitors
Apple as a brand is well appraised in the entire market and well known for quality
products. Further, the entire product range of business is unique and through this business
satisfies overall requirement of the target market (Kelley, 2001). Moreover, its major competitors
are Sony, Samsung etc and for differentiating products from those of competitors in the market
quality is regarded as one of the major attribute. Therefore, this has positively affected entire
company in the market and has assisted to deal with challenges being present in the business
environment. In terms of brand Apple holds unique position in the market where in case of
Iphone it is first preference of target market as compared with competitors. Customers are ready
to purchase costly products (KAHNEY, 2012). Further, business is fair enough in terms of
competition where its concept is relation with product development is unique and is not stolen.
Business has adopted ethical practices for dealing with the situation of competition in the market.
Apple as a brand provides advantage to business such as higher profitability, market share,
strong customer base etc. So this supports in gaining competitive advantage and provides benefit
to the entire business (Even the Smallest Businesses Can Sink its Teeth into These 10 Branding
Lessons from Apple., 2015).
In order to determine the effectiveness of Apple as a brand in the market model of
brand pyramid is effective which follows series of stages such as:
Level 1 Presence: It is the first where firm introduces brand in the market and customers have
tried products. In this stage Apple launched its Iphone 4 model in the market where its brand
presence was quite low.
Level 2 Relevance: It is the second stage where customers ensure that brand is able to meet their
needs and cost of product is compared with value derived. The entire range of products offered
by Apple provides value for money experience to customers (Kapferer, 2012).
Level 3 Performance: In this stage different brands are compared as in case if any customer
wants to purchase mobile then different brands are compared such as Apple, Sony, Samsung etc.
7

Level 4 Advantage: In this stage customers determine advantage of using brand as compared
with other companies. Apple as a brand provides benefit such as high quality, value for money
experience etc (Saviolo and Marazza, 2012).
Level 5 Bonding: It is the last stage where customers have established bond with brand in terms
of cost, performance, advantage etc. It is the present stage where majority of the customers are
brand loyal towards Apple (Hatch And Schultz, 2008).
CONCLUSION
The entire report being prepared has supported in knowing about the innovative
practices of Apple. Further, due to high brand presence in the market entire range of products are
preferred to be purchased by customers. Moreover, through innovative business is being able to
satisfy need and requirement of its target market and this has acted as development tool for the
company. Company provides large number of benefits to customers such as value for money
experience, high quality products etc.
8

TASK TWO: REFLECTIVE
The present study being carried out has supported me to gain knowledge in relation with
the concept of innovation. Further, it provides base to every business in serving customers and
satisfying their needs. Moreover, I identified the innovative practices of Apple which was chosen
as one of the company to carry out study.
Learning acquired through the MDI module
MDI module has supported me to enhance my knowledge level where I obtained
information in relation with the marketing field. The entire module supported me to gain new
ideas and information in the field of innovation. Apart from this, before undertaking this module
my knowledge level was not up to the market. So it provided me support in gaining knowledge
so that I can easily undertake different type of assignments. This module has assisted me to
understand about the concept of innovation along with different models of marketing such as
brand pyramid etc. In short, it has enhanced my confidence level where I can easily undertake
different type of assignments in near future. The MDI module has assisted me to work on the
major areas where I am not performing better and in turn improvement is needed.
Learning acquired by undertaking this assignment
The present assignment was based on innovation practices of Apple where the entire
product range of company was analyzed. By conducting research I found that Apple is efficient
enough in developing unique products due to which its customer base is quite strong. Further,
through this assignment I gained information in relation with various models such as brand
pyramid, innovation diffusion theory etc. It supported me to understand about the ways through
which innovation takes place and how it supports business in gaining competitive advantage. The
entire assignment strengthened my knowledge base through which my personal development
also took place. Apart from this, I identified what are the range of benefits which business is
providing by delivering products to the customers and this was also effective. Moreover, I gained
knowledge in relation with the market trends on the basis of which Apple is modifying its
product range. Apart from this, large numbers of skills were developed such as time management
where I managed to complete the assignment on time. My critical thinking skills were also
improved where this skill supported me to carry out indepth analysis. Apart from this, my written
communication skills were improved through this assignment. On the other hand, I gained
knowledge in relation with the different models of Iphone and how product development has
1

taken place. I analyzed large number of factors which have supported apple in gaining
competitive advantage and is one of the main reason behind success of business in the market. I
analyzed the entire product life cycle of Apple where products of company lies in different
stages such as introductory, growth, maturity and decline. Apart from this, its brand appeal in
relation with competitors has supported me in knowing how practices of company have positive
impact on its brand in the market.
Challenges faced during the module
No doubt this assignment has enhanced my knowledge level along with skills but
different challenges were faced while undertaking this assignment. So, the major issue faced was
lack of knowledge where I was not well aware about different models such as brand pyramid,
diffusion of innovation etc. Therefore, its applicability in the assignment became difficult and it
acted as hurdle while carrying out the entire study. Apart from this, another challenge was lack
of information in relation with product range of Apple due to which I faced difficulties in
knowing about the innovative practices of company.
Benefits sought to the future
This present study has supported me to carry out other type of research in near future.
Further, it has enhanced my knowledge base due to which such kind of studies can be easily
conducted in near future. I have worked on various areas where my performance lacks such as in
terms of knowledge. In short my knowledge level has increased and I have understood about the
concept of innovation in better manner. This knowledge can be easily applied in other studies
and skills acquired can be used for enhancing the efficiency of the different research in near
future.
2

REFERENCES
Books and Journals
Hatch, J. M. And Schultz, M., 2008. Taking Brand Initiative: How Companies Can Align
Strategy, Culture, and Identity Through Corporate Branding. John Wiley & Sons.
Saviolo, S. and Marazza, A., 2012. Lifestyle Brands: A Guide to Aspirational Marketing.
Springer.
Kapferer, J., 2012. The New Strategic Brand Management: Advanced Insights and Strategic
Thinking. 5th ed. Kogan Page Publishers.
Kelley, T., 2001. The art of innovation. Harper Collins Business, London
Mohr, J. J., Sengupta, S. and Slater, F. S., 2010. Marketing of High-technology Products and
Innovations. Pearson Prentice Hall.
Mozota, B. B., 2003. Design Management: Using Design to Build Brand Value and Corporate
Innovation. Skyhorse Publishing Inc.
Palmieri, and Giglio, C., 2014. Seeking the stakeholder-oriented value of innovation: a CKI
perspective. Measuring Business Excellence. 18(1). pp.35 – 44.
Roach, G., 2009. Consumer perceptions of mobile phone marketing: a direct marketing
innovation. Direct Marketing: An International Journal. 3(2). pp.124 – 138.
Tsai, J. and Ho, C., 2013. Does design matter? Affordance perspective on smartphone usage.
Industrial management and Data system. 113(9) .pp.1248 – 1269.
Online
About us., 2016. [Online]. Accessed through < http://www.apple.com/about/>. [Accessed on 15th
April 2016].
Even the Smallest Businesses Can Sink its Teeth into These 10 Branding Lessons from Apple.,
2015. [Online]. Accessed through < http://www.verticalresponse.com/blog/even-the-
smallest-businesses-can-sink-its-teeth-into-these-10-branding-lessons-from-apple>.
[Accessed on 15th April 2016].
KAHNEY, L., 2012. APPLE: IT’S ALL ABOUT THE BRAND . [Online]. Accessed
through < http://www.wired.com/2002/12/apple-its-all-about-the-brand>. [Accessed on
15th April 2016].
Sikka, P., 2015. Apple beats all estimates to produce stellar fiscal 1Q15 results. [Online].
Accessed through < http://marketrealist.com/2015/02/apple-beats-estimates-produce-
stellar-fiscal-1q15-results/>. [Accessed on 4th April 2016].
3