Brand Extension Strategy of Apple for iPhone 13

This article discusses the brand extension strategy used by Apple for the launch of iPhone 13, including segmentation, targeting, and positioning strategies. It also explores the unique features of iPhone 13 and the research requirements for marketing managers.

Principal of
Marketing
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TABLE OF CONTENTS
Summary......................................................................................................................................3
REFERENCES................................................................................................................................4
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Summary
Apple is an American multinational technology company that has strong market share,
brand image in international market that helps it in adding more and more customers around the
year. The company is among big five company such as Google, Facebook, Microsoft and
Amazon in US information technology industry. Apple has 510 retail stores across worldwide
that delivered better qualitative services to customers so that company can enjoy high market
share and competitive positioning. It is a company that has effectively used brand extension
strategy to enhance sales of its products and services like IPod, Ipad and iPhone. The brand
Apple market share is growing at rapid stage such as company has reach to 260 billion US
dollars revenue in 2019 and net sales amounted to 260.17 billion US dollars. With launch of new
products and services brand is able to cater needs of individuals in most possible way thus gained
competitive advantages (KWON, 2019). Thus it has helped company in expanding and
diversifying its market share in limited time frame and cost thereby enjoying maximum
profitability.
Apple is world most valuable brand in terms of innovative and creative as each and every
products and services of company are highly unique and differentiated that influence millions of
customers to become part of organisation for satisfaction of their respective needs. Organisation
by taking first steps towards innovation has maintained and retained loyal customers within firm
thus enhance overall profitability and market share. Company website, mouth publicity and
campaign have contributed in enhancing brand value of firm in external environment.
Apple marketing manager for its new products that is iPhone 13 has effectively makes
use of segmentation, targeting and positioning strategies to attract maximum individuals to
become part of organisation. It has segmented people on basis of demographical, psychological,
geographical and income basis that helps in set appropriate strategies to influence them to prefer
its products rather than other competitors in market. Company has mostly targeted people that
belong to high income group and having craze of using new and innovative products in order to
satisfy their respective needs. Thereby, Apple by rendering its services as per expectancy of
customers is able to strongly position its brand image in minds and hearts of customers.
Apple in order to launch its new products that is iPhone 13 has make use of brand
extension that helps in generating maximum sales and revenue. It has key unique features like
Dual- lens rear camera, night mode, more durable glass, 120Hz refresh rate, reduced notch and
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liquid retina HR display. Moreover, 1792*828 pixel resolution at 326 ppi, true tone display,
haptic touch are some of the features that helps in attracting maximum individuals.
There are numerous changes or issue in external environment that has promoted
company to make use of brand extension idea in order to promote growth of new products
launch. Such as each country have different policies and procedure that need to be abided by
organisation to operate its business. Some of the company has put barrier to entrance of new
firms to protect local firm therefore Apple by using brand extension can easily enter into new
market. Social preference of individuals are dynamic in nature so apple in order to cope up with
the issue has get idea to extend its brand image to introduce iphone13 so that people can easily
motivate to try the same for satisfaction of their wants. With development in technologies,
people wants to make use of more innovative products or that offer unique features, attractive
design so that they can show off to others (Nguyen, Zhang and Calantone, 2018). So, Apple in
order to take advantage of available opportunity has planned to extend its value to iphone13 so
that customers can easily aware and influence to buy the same for fulfilment of their respective
requirements.
There are several research requirements that need to be completed by marketing manager
in order to resolve business problem so that company can gained competitive advantages.
Marketing manager of Apple has effectively collected data, information of recent trends and taste
of customers thus find alternative method to satisfy their needs. By collecting data it is able to set
strategies to promote new iphone13 brand extension products to younger generation or individual
that have high disposable income or interested to have better quality phones (Nguyen, Zhang and
Calantone, 2018). Thus, it has helped in rising overall sales volume and profitability of iphone13
the brand extension of world most valuable brand i.e., Apple. Samsung is one of the biggest
competitors of Apple brand so company by continuous finding new and differentiate method like
to satisfy customers needs brand extension is able to maximise its market share.
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REFERENCES
Books and journals
De Groote, J. K., Mendini, M. and Gibbert, M., 2019. In the eye of the beholder: The role of
cognitive style and similarity in the evaluation of brand extensions. Journal of consumer
behaviour, 18(1). pp.63-73.
KWON, Y., 2019. The moderating effects of cobranding promotions between brand experience
and loyalty. The Journal of Distribution Science, 17(9). pp.15-23.
Nguyen, H. T., Zhang, Y. and Calantone, R. J., 2018. Brand portfolio coherence: Scale
development and empirical demonstration. International Journal of Research in
Marketing, 35(1). pp.60-80.
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