HI5004 Marketing Management: Apple iPhone Brand Positioning Analysis

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This report provides a detailed analysis of Apple Inc.'s brand positioning strategy for its iPhone product line. It begins with an introduction to brand positioning and its significance, followed by an examination of Apple's approach. The report delves into the competitive landscape, highlighting key challengers like Samsung, Xiaomi, Vivo, and Oppo. It explores the steps Apple takes for brand positioning, including its focus on customer experience and advertising. The report also discusses Apple's pricing strategies and marketing plan, emphasizing its unique approach and logistical marketing plan components. The report concludes by summarizing the key findings and emphasizing the positive impacts of brand positioning on Apple Inc. as a leading consumer product manufacturer. The report also includes a bibliography of sources used.
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Running Head: MARKETING MANAGEMENT 0
Marketing management
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MARKETING MANAGEMENT 1
Contents
Introduction......................................................................................................................................2
Brand Positioning of Apple iPhone.................................................................................................2
About the company and challengers................................................................................................2
Steps taken by Apple brand positioning..........................................................................................3
Apple Inc. Pricing strategies............................................................................................................3
Apple Inc. Marketing plan...............................................................................................................3
Conclusion.......................................................................................................................................3
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MARKETING MANAGEMENT 2
Introduction
The following report is based on Brand positioning; it is a way to promoting the product among
the targeted group of customers. It is a way of attracting people towards the product to increase
the aggregate sales. Herein, the concept of brand positioning is explained by taking the example
of product i.e. mobile phones. Phones are one of the most popular electronic personal digital
devices. It is utility product required by everyone these days. The product category chosen here
is mobile phones and all the concepts will be explained by taking example of Apple Inc. The
report highlights method of brand positioning used by Apple Inc. Herein, information about
market leaders is disclosed and how the challengers have influenced the aggregate sales of Apple
iPhone. The report also states the steps, which are taken by Apple Inc. for proper brand
positioning. Additionally, it enunciates the pricing strategies used by Apple to draw more
customers. It is explained within the report that a strong marketing plan is essential for marketing
plan.
Brand Positioning of Apple iPhone
Brand positioning can be well defined as a movement or strategy of creating a brand offer in a
way that it covers distinctive place and gets valued in among the targeted audience. For instance-
Apple is brand, which does not needs an introduction; the company offers products to the people
who have a strong economic status. Nowadays, scenario has changes people who belonging from
higher middle class prefer Apple devices. Keeping this in mind company has started planned
things in different way. Apple is at present world’s leading company in terms of generating
revenue, surpassing the opponent i.e. Microsoft in the year 2010 (Glenn, 2019).
The brand positioning strategy of Apple for iPhone is bit complex, as there are large numbers of
rivals in the phone industry. Therefore, the company focuses on retaining the old customers and
attracting new customers by sharing the feedback drawn from old customers. Apart from this, the
company uses active advertising initiatives to remain in the sight of the targeted audience (Apple
Inc. , 2015) .
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MARKETING MANAGEMENT 3
About the company and challengers
Jan- Benedict Steenkamp said, “Brands are the lifeblood of companies. They generate market
share, increase customer loyalty, amplify channel power, offer the potential for higher profit
margins, and guard against competitive attacks”. The product chosen for the study of brand
positioning is mobile phone, presently in this industry Apple is the main leader around the globe.
The major threat for Apple Inc. is from its competitors. CompaniXes like Samsung, Xaiomi ,
Vivo and Oppo have created competition for Apple. These brands are providing products with
similar feature at fewer rates. This is how they are posing a niche to the sales rate of Apple
(Duhigg & Bradsher, 2012).
It must be noted that Apple is a brand, which holds a special place among audience therefore; it
is a leader for the industry, challenger to the industries like Samsung and a source of inspiration
for those who have recently entered the industry (Nicolás Marín Ximénez & Sanz, 2014).
Additionally, Apple's is stuck at 18% at global share of the smartphone whereas the Androids
are continuing to rule with 74.4% of the market share. This fact restates the statistic that Apple is
just a niche player globally, despite its profits, and despite its overall influence (Myers & Fellow,
2014).
The process of consumer adoption
Before Apple, people were either using the Windows phone which is offered by Samsung or
using the Androids which is offered by numerous mobile companies. Hence, it is a natural
outcome that immediate introduction to a completely new software system will be complex for
people to understand (Almutairi, 2019). In present time, if a person switch from android to iOs, it
is little difficult for him/her to understand the functions and features of the phone. The Apple
devices are mainly developed for the corporate sector people, it can be said that an iPhone carries
mini office in itself. Anna Glenn said “the Apple brand strategy is all about the experience.”
This means that Apple is a company, which prefers emotional branding. Therefore, the people or
customers who are already using Apple products should be connected to it in spite of using other
company’s products. The company is promoted through their products; advertisement and
customer experience (Osterwalder & Pigneur, 2010).
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When a company launches new product it includes new features and sometimes it takes time for
the customer to understand these changes and adapt them. Sometimes it takes few days or
sometimes months to adapt the change (Kane, 2014).
Apple Inc. Pricing strategies
Big brands like apple do not have need to develop pricing strategies as the people who purchases
the products of Apple either belong to high class or he/she is capable enough to pay the
installments on which the product is purchased (Nagle & Müller, 2017). It is the specialty of
Apple that it never plays by reducing the price of goods. It can be said that Apple is its own
competitor because the prices of the products are lowered only when new product with new
features and updates is launched the firm. Steve Jobs and his team have taken the company to
new heights by following simple pricing and marketing strategy (Boone & Kurtz, 2013).
Apple Inc. Marketing plan
The marketing plan of Apple is completely different from other firms dealing in same sector.
Apple does not play with the idea of low pricing strategy because there is no need of it. The
marketing plan of Apple signifies that it wants to make its customers happy at any cost.
Recently, Apple has developed a play area for the children of customers. These small interesting
and humanly initiatives increases the value of company among the audience. In order to earn
greater revenue it becomes essential for the company to have good image at marketplace. The
company is presently providing is good sin 507 locations worldwide. It is a fact that Apple
Global leader in the management of supply chain. Not only iPhone but also mac, iPad, Apple
watch etc. are manufactured and distributed by the company at a huge amount (Heinberg, et al.,
2017).
The logistic marketing plan includes four components, which are helpful in getting the positive
response from audience. The logistic marketing plan of apple is as follows:-
Defining the service offer- It is necessary to acknowledge the consumer about how the product
will be delivered to them or how they can reach to the product. Apple Inc. has opened numerous
stores from where people can purchase the products (Heinberg, et al., 2017).
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MARKETING MANAGEMENT 5
Targeted audience- It is necessary for a firm to determine the primary and secondary market for
its product. Similarly, Apple has also acknowledged that High-class people along with the higher
middle class people mostly prefer its products. Therefore, the company avoids promoting its
products among lower section of the society.
Competitors- identification of competition makes the path easier, once company is are aware of
the loopholes or short comings of competitor’s products, Apple may make specific changes as
per the consumer needs.
Tactical plan – In order to reach effectively to the audience it is important to choose good places,
sites or locations to advertise the products. The company promotes products its products with the
help of digital media like digital banners (Adina, et al., 2015).
Conclusion
This report gives details about brand positioning and consequence of brand positioning dealt by
Apple Inc. Herein, Apple Inc. is used as an example to accentuate about brand positioning. This
case study of Apple brand positioning abridges over-all information about product happened
within the company. Apple Inc. is leading manufacturer of consumer products today in brand
formation, preferment, and fortification of products. The enterprise is known for producing the
best product worldwide. Brand positioning gives positive impacts to Apple Inc. The concept of
Brand positioning is concept which will surely help the company to advance their promoting
strategy and will provide benefits to the corporation. The report stated about pricing strategies of
Apple, which is most unique strategy followed until today by any company. The marketing plan
developed by Apple mainly focuses on the logistical aspects. It is clear from the study that the
company prioritizes the features demanded by the targeted audience.
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MARKETING MANAGEMENT 6
Bibliography
Adina, C., Gabriela , C. & Roxana-Denisa, S., 2015. Country-of-origin effects on perceived
brand positioning.. Procedia Economics and Finance, 23(1), pp. 422-427.
Almutairi, M., 2019. Analysis of Samsung's internationalization process and the strategies
implemented to generate an effective positioning of its brand and products in foreign markets..
Journal of the community development in Asia, 2(1).
Apple Inc. , ., 2015. UNITED STATES SECURITIES EXCHANGE AND COMMISSIONS.
[Online]
Available at: https://www.sec.gov/Archives/edgar/data/320193/000119312515356351/
d17062d10k.htm
[Accessed 14 Septemeber 2019].
Boone, L. E. & Kurtz, D. L., 2013. Contemporary marketing. Boston: Cengage learning.
Duhigg, C. & Bradsher, K., 2012. How the US lost out on iPhone work.. The New York Times, p.
21.
Glenn, A., 2019. The analysis of apple's branding strategies. [Online]
Available at: https://studylib.net/doc/8084375/the-analysis-of-apple-s-branding-strategies
[Accessed 14 September 2019].
Heinberg, M., Ozkaya, H. E. & Taube, M., 2017. The influence of global and local iconic brand
positioning on advertising persuasion in an emerging market setting. Journal of International
Business Studies, 48(8), pp. 1009-1022.
Kane, Y., 2014. The Job After Steve Jobs: Tim Cook and Apple.. The Wall Street Journal.,
Volume 1.
Myers, C. & Fellow, K., 2014. Corporate Social Responsibility in the consumer electronics
industry: A case study of Apple Inc.. Resource document. Georgetown University, Edmund A.
Walsh School of Foreign Service. http://lwp. georgetown. edu/wp-content/uploads/Connor-
Myers. pdf. Accessed, , Volume 10.
Nagle, T. T. & Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably.. London: Routledge.
Nicolás Marín Ximénez, J. & Sanz, L., 2014. Financial decision-making in a high-growth
company: the case of Apple incorporated.. Management Decision, 52(9), pp. 1591-1610.
Osterwalder, A. & Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers.. New Jersey: John Wiley & Sons.
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