Marketing Strategies of Apple for Children's Smartwatch Expansion

This report provides a comprehensive analysis of Apple's marketing strategies, focusing on their expansion into the children's wearable market with a smartwatch. It begins with an introduction to Apple and the rationale behind this new venture, highlighting the growing demand for high-quality, trendy products among children. The report then delves into the marketing strategy, outlining marketing objectives, specific target markets segmented by demographics, psychographics, and behavior, and an assessment of actual market needs. Furthermore, the report examines marketing tactics, including product planning, pricing strategies, distribution channels, and promotional activities. A detailed SWOT analysis is conducted to evaluate Apple's strengths, weaknesses, opportunities, and threats in this new market. The report concludes with a summary of findings and provides a list of research and referencing materials.

Marketing Strategies

Table of Contents
1) Introduction.................................................................................................................................3
a) Description of Apple and key reasons....................................................................................3
b) Topic to be covered.................................................................................................................3
2) Strategy........................................................................................................................................3
a) Marketing Objective...............................................................................................................3
b) Specific Target Markets..........................................................................................................4
c) Actual Market/Consumer need...............................................................................................5
d) Positioning statement..............................................................................................................5
3) Tactics..........................................................................................................................................5
a) Specific marketing tactics in terms of following:...................................................................5
I) Product.....................................................................................................................................5
II) Pricing....................................................................................................................................6
III) Place/Distribution.................................................................................................................6
IV) Promotion/Communications.................................................................................................6
b) SWOT.....................................................................................................................................6
I) Capitalising on strengths.........................................................................................................6
II) Overcoming weaknesses........................................................................................................7
III) Maximising opportunities.....................................................................................................7
IV) Eliminating any threats you have previously identified.......................................................7
4) Conclusion...................................................................................................................................7
5) Research and Referencing...........................................................................................................8

1) Introduction
a) Description of Apple and key reasons
Marketing strategies helps in better planning of resources and factors for business. This
strategies helps in achieving goals and objectives of organisation (Armstrong, Delia and
Giardina, 2016). The given assignment is based on Apple which was founded in 1976 at
California. It mainly deals in manufacturing of computer, mobiles and became largest brand in
technology industry. Currently, it is planning to start its new business in children's wearable that
is smart watch. The reason behind such idea is to fulfils need and demand of children. The
current generation prefer high quality with latest trends watch to wear so in order to meet their
expectation, Apple is planning to come in wearable segments.
b) Topic to be covered
The report has covered strategy which are related with smart marketing objectives,
specific target market, product planning and positioning methods it can used. There are various
marketing tactics strategies which are in terms of product, price, place and promotion for their
new children's wearable. It has covered SWOT analysis for knowing internal and external
environment of business.
2) Strategy
Marketing strategy is business plan that outline overall plan for finding customers and
clients for organisation (Ashley and Tuten, 2015). It focuses on what entity want to achieve by
help of marketing efforts. There are various strategy which can be made by Apple for new
children's wearable. The proper objective should be set along with STP for effective outcomes.
a) Marketing Objective
Marketing objectives are type of set goals by enterprise while promoting products and
service for their potential customers in order to achieve within given time period. The SMART
objective should be made by Apple for new expansion. Here, objective is to increase revenue by

25% in next two years by providing high quality products to consumers and fulfilling their needs
and demand effectively and efficiently. This set objectives helps in achieving set goals in
effective manner.
b) Specific Target Markets
For new expansion, Apple has to segment its market and accordingly manufacture
product. It is entering into children wearable that is smart watch for both boys and girls
segments. In order to do better expansion of new venture, consumer profile should be created
which is given below:
Core Segment Segmentation Explanation
Male Segment
Demographic This segmentation includes age, income, gender,
religious and others. Here, Apple has segmented market
on basis of age and gender. It has mainly focused male
segment age between 8-15 age group people. The
children of today generation want high quality products
and prefer branded things to wear (Ryan, 2016).
Psycho-graphic It helps in describing psychological and consumer
attributes that includes value, opinions, interest and
lifestyle. Apple has targeted upper class people because
of their high lifestyle. The rich class consumer can
easily prefer to buy expensive smart watch.
Behavioural Those children who are using apple brand has high
loyalty towards it products. They don't see any occasion
for buying products, if they like it easily buy it. For
boys segment, it is planning to come up with black
colour (Park, Mishra and Wozniak, 2014).
Demographic In demographic segmentation, apple has focused female
segment of society having age between 5-15. The
organisation produces high quality products for their
customers in order to fulfils their need and demand.

Female Segment Psycho-graphic In psycho-graphic segmentation, Apple has studied
about children through market research in order to
know their taste and preference. Here, children has high
interest in buying smart watch having good quality.
Behavioural Under behavioural segmentation, Apple is planning to
manufacture pink and red colour smart watch for girls.
c) Actual Market/Consumer need
Product planning is procedure for creating ideas related with goods and following it until
product is introduced in market (Ottman, 2017). Before doing planning for product, it is very
important to know about need and demand of customer. Apple is recognised brand in market
having high value and market share. When Apple planed to come up with new children's
wearable it has done proper market research to know about taste and preference of children
regarding watch and their likeness. Thus, market research helps in making better decision for
customer need and produce accordingly.
d) Positioning statement
Positioning is the way to create brand value and its position in mind of customers and
differentiating it from competitors. Apple does not require more advertising as it is already
known and popular brand in market. People are curious to purchase new product of apple brand.
Now it is focusing on smart watch for children segment which does not required enough
positioning. Thus, through research it can be concluded that Apple has good position in market
and in people minds.
3) Tactics
Tactics are short term strategy or plan made by company for goods or services which
helps in achieving goals and objectives (Chari and et. al., 2014). There are various tactics made
by Apple for their new products.

a) Specific marketing tactics in terms of following:
I) Product
Apple is planning to launch new product that is smart watch for children segment. It has
focus on both male and female group having age between 5-15. In order to launch such product,
it has to do proper market research to know about taste and preferences. Apart from this, it is
already dealing in mobile phones, mac book and others to consumer.
II) Pricing
Apple has targeted upper high class people for their product. The component used by it
are costly and low people cannot afford it. The price for smart watch is high as compared to
other brand. Only high class children can buy it and fulfils their need and demand.
III) Place/Distribution
The smart watch manufactured by Apple is available both online and offline. As per
convenient of customer, they can purchase it. The distribution channel used by Apple is easy for
customer and they prefer it. Thus, this tactics helps in maximizing profits of business.
IV) Promotion/Communications
There are different promotional tools used by Apple such as online marketing, social
media, newspaper in order to create awareness among consumers. This helps consumer about
upcoming products in market. In order to target consumers for new product, it has use social
media.
b) SWOT
It is a process which is use by a company to analysis and evaluate competitive position
and level of a company (Felzensztein and et. al., 2014). It can be done by considering four
factors which is strength, weaknesses, opportunities and threats of an organization. By this
management of a company can analysis what they can do and what they cannot, so that they will
not face any kind of loss. By knowing their opportunities, threats, strength and weaknesses
managers of a company can develop goal and objectives in appropriate and effective manner.
Apple want to expand their product range for which they are launching smart watch for children.
For analysing market and their condition respective company is conducting SWOT analysis,
which is explain below:-

I) Capitalising on strengths
Strength refers to those feature which help an organization in conducting business in
appropriate and effective manner (Glanz, Bader and Iyer, 2012). These features basically help a
company in gaining competitive advancement at their target market place. Apple earn more
revenue from selling of mobile phones and mac book that is US$25,850 in 2017 financial year. It
is easy for it to launch new product in market. It has strength of strong loyalty of customers and
product is known as premium in terms of construction and performance. This all are strength
which helps to earn maximum profit and goals and objectives.
II) Overcoming weaknesses
These are internal factors which affect performance of Apple. There are some
weaknesses which Apple has faced such as higher price than competitors, limited product line,
incompatibility of applications. In order to overcomes such weakness, it should decrease price of
products so that average income group of people can purchase it and also product line should be
increases effectively for growth and sustainability (Green Jr, Whitten and Inman, 2012).
III) Maximising opportunities
There are various opportunities available for Apple in market which help to maximize
profit. Apart, from children smart watch, it can further integrate their products into clothing and
increasing product line. It can do collaboration with other renowned brand for increasing their
more market share and revenue.
IV) Eliminating any threats you have previously identified
Some of threats which Apple can face in future which need to minimize. The threats in
terms of competitors, change in taste and preference of customers. For example, if same product
which Apple is selling in market is available at low price having many features then consumer
prefer to buy that products. Thus, Apple should bring innovation in their quality as well as
products so that consumer won't switch to other brands (Mintu-Wimsatt and Winston, 2013).
4) Conclusion
From above report, it can be concluded that Apple need to do proper market research
before launching their new product in children wearable that is smart watch. This helps in
knowing about exact market scenario. For that, smart objective should be made and work
accordingly in order to achieve it. The boys and girls are two core segment having different

requirement. The tactics plan should be made for product, price, place and promotion for better
outcomes. It is important to do SWOT analysis so that internal and external environment can be
identified and assist in better planning.