Comprehensive Report: Apple's Marketing Strategies in Australia

This report provides a comprehensive analysis of Apple Inc.'s marketing tactics, specifically focusing on the Australian market and the promotion of the iPhone. The report begins with an executive summary and table of contents, followed by an introduction that highlights the importance of marketing. It then delves into a 5C analysis, examining the company, customers, collaborators, competitors, and the context of the Australian market. The report includes a detailed market research and intelligence section, focusing on customer satisfaction, competitor threats, and the role of distributors. The market strategy section outlines the target market, value proposition, and market position of Apple in Australia. The report then explores Apple's market tactics, identifies challenges such as the skimming price strategy, and provides recommendations for improvement. The conclusion summarizes the key findings and emphasizes the significance of Apple's marketing strategies in maintaining its market share in Australia. The report leverages various academic sources to support its findings.

Apple Marketing Tactics

EXECUTIVE SUMMARY
Apple Inc. is one of the leading multinational technology companies founded by
American entrepreneur and business magnet Steve Jobs on April 1, 1976. Company was
specialised in delivering information and technological products to customers. The report
demonstrates core marketing tactics utilised by Apple in order to promote iPhone in Australia.
Apple's target market includes high earners who are willing to pay extra to get premium
products. In Australia, Apple stays apex in terms of market share with its robust marketing
tactics and strategies. Challenges such as skimming price strategy, lack of physical presence and
higher competition in Australia affects the organisational profitability. It is recommended to the
management to establish more stores to enhance sales and customer base.

TABLE OF CONTENTS
1.0 INTRODUCTION.....................................................................................................................1
2.0 CONCEPT OF 5C......................................................................................................................1
2.1 Company...........................................................................................................................1
2.2 Customers.........................................................................................................................3
2.3 Collaborators....................................................................................................................3
2.4 Competitors......................................................................................................................3
2.5 Context.............................................................................................................................4
3.0 MARKET RESEARCH AND INTELLIGENCE.....................................................................5
3.1 Customer Satisfaction.......................................................................................................5
3.2 Threat from Competitors..................................................................................................6
3.3 Revolution on the business...............................................................................................6
3.4 Role of distributors...........................................................................................................6
4.0 MARKET STRATEGY.............................................................................................................7
4.1 Target Market...................................................................................................................7
4.2 Value Proposition.............................................................................................................8
4.3 Market Position................................................................................................................9
5.0 MARKET TACTIC.................................................................................................................10
6.0 CHALLENGES.......................................................................................................................11
7.0 RECOMMENDATIONS AND CONCLUSION....................................................................12
7.1 Recommendations..........................................................................................................12
7.2 Conclusion......................................................................................................................12
REFERENCES..............................................................................................................................14

1.0 INTRODUCTION
Marketing is an art and science of exploring, developing and offering value to satisfy the
needs of a target market in order to enhance sales and profits (Kotler and et.al., 2014). In an
organisation, marketing plays a significant role in delivering and spreading information
regarding products and services offered by the organisation to their target customers. In this
context, focus of present study will be on analysing the core marketing tactics used by Apple Inc.
in order to attract target market of Australia (Ryan, 2016). To gain customer attraction, Apple
Inc. promotes its products and services in a creative and innovative manner which explicitly
describes the speciality of their products. An analysis of firm’s internal and external analysis will
be made by using 5C analysis. An extensive market research and intelligence towards customer
satisfaction, threats of competitors and role of distributors as well as revolution of business will
be made in this report.
2.0 CONCEPT OF 5C
5C analysis is a framework tool which is used for analysing the internal and external
environment of firm. It is the situational analysis model which is used to determine
organisational both internal and external position within marketplace. The 5C analysis of Apple
Inc. is described as below:
2.1 Company
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Apple Inc. is one of the leading multinational technology companies founded by
American entrepreneur and business magnet, Steve Jobs on April 1, 1976. Company is
specialised in delivering information and technological products to customers. Its key products
include iPhone, iPad, iWatch, MacBook, Apple TV and iPod. Moreover, the firm also deals in
digital distribution under brand iTunes store, iCloud App Store and Mac App Store. Presently,
company is expanded globally in 22 countries and creates online network in more than 100
countries (Ottman, 2017). The key strength of firm is its unique ability to design and develop
proprietary hardware, software, applications and services. Apple designs and develops hardware,
software, applications and services which are patented under its name. This allows firm to offer
unique and innovative products and services to their customers.
Unique, innovative and easy to use products and services that integrated seamlessly in the
ecosystem of Apple, is the key reason customers prefers to purchase premium products of Apple
and enjoy using them. Key resources of firm are skilled, competent and knowledgeable
employees, designers, programmers and engineers that are leveraged by firm in order to develop
its owns systems and applications which help them to be unique in the market (Chari and et.al.,
2017). Dependency on limited products could be considered as the key weakness of firm. Apple
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Illustration 1: Apple Inc.
(Source: Apple Inc, 2018)

has 7 to 8 products in its arsenal whereas, its major competitors like Samsung, Microsoft, etc.
offer variety of products and services to customers.
2.2 Customers
The target consumers of Apple can be any person who uses smartphones, tablet, iPod,
laptops, etc. In Australia, Apple has the majority of market share in smartphone segment i.e. 53.9
per cent (Baena, 2016). The demographic range from school kids to aged people including of all
genders. People who are willing to purchase expensive and premium products are the target
segment for Apple. Consumers who work in creative industries like video editing, music editing
photography, desktop publishing, etc. are more towards Apple as the software offers variety of
applications which helps consumers in their work effectively. Senior citizens in Australia prefer
Mac over Windows. Mac offers a wide range of applications which are easily comprehended by
the senior citizens and also provide robust encryption system.
2.3 Collaborators
Suppliers, distributors and business partners play a significant role in delivering
organisational products and services to the target market effectively and efficiently. There are
various vendors in Australia who offer products and services to the target customers.
Australasian PC Distributors (APCD), Synnex, Ingram Micro Australia and Tech Data are key
distributors in Australia that provide Apple products in Australian markets (Distributors for
Apple, 2018). The role of suppliers is to maintain continuous flow of goods and services to the
market so that organisation can thrive in sustainable and efficient way (Giroux, Pons and
Maltese, 2016). As a leading information technology company, Apple maintains healthy
relationship with its suppliers in Australia that fosters market share in the country.
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2.4 Competitors
Information Technology industry is currently thriving worldwide with development in the
field of computer science. Apple as a leading company in IT sector faced immense competition
with giants like Samsung, Microsoft, Google, HTC, Sony, Huawei, Cisco Systems, Lenovo
Group, HP and many other computer hardware, software, consumer electronics and internet
companies. In the present era, IT sector is flourishing and there are constant threats from
emergence of new markets. In order to sustain in the competitive environment, Apple has
implemented product diversification strategy where they offer unique products and services
which help them to stay competitive in the market.
2.5 Context
Apple Inc. is one of the most visible and acknowledged consumer electronic brands that
dominates the information and technological sector in domestic as well as overseas market.
Despite of having robust brand value, customer base and internal capabilities, operations of
Apple have been greatly affected by the external environmental factors (Ducange, Pecori and
Mezzina, 2018). Australian market shows positive growth in the new governmental regime.
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Illustration 2: Full Analysis of Apple Inc. Competitors
(Source: Jurevicius, 2017)

Government allows industries to establish their corporate office in the country which provides
opportunities to Apple to develop its office in Australia. The gross domestic product (GDP) of
Australia in 2017 was AU $1.69 trillion and it is the second wealthiest nation in respect of wealth
per adult (Pizarro Milian and Davidson, 2018). Consumers prefer premium quality of products
and services which indeed offered by company. Apple in order to survive in Australian markets
needs to comply with laws like Consumer Health and Safety, Environmental protection, Sales of
goods law, etc. Apple has contributed drastically towards environmental protection. The
company aims to use renewable source of energy to provide power to all its stores in domestic as
well as in global market.
3.0 MARKET RESEARCH AND INTELLIGENCE
Market research is carried out in order to know more about the surrounding environment
of firm. In order to create robust marketing strategies, it is essential for a firm to carry out market
research by considering specific elements.
3.1 Customer Satisfaction
Organisation develops and distributes products in order to earn profits and sales by
enhancing the customer base. Customer base can only be expanded if firm is able to satisfy its
customers through products and services. Customer satisfaction plays a prominent role in the
development of brand and it is an important pillar which bolsters any organisation in sustaining
in competitive environment (Strauss and Frost, 2016). Apple in Australia is able to capture the
highest market share by offering premium and high quality products in country. Research survey
carried out by Roy Morgan Research Company identified that 92 per cent of Apple consumers
who have purchased iPhone were highly satisfied with its products (Apple iPhone Mobile Users
Profile, 2018). Furthermore, as compared to other firms Australians are more towards Apple as a
company that offers innovative products and services in the market. Higher satisfaction of
consumers denotes that firms are able to penetrate in the Australian market through its unique
products, innovative marketing and robust brand image. Furthermore, in order to eliminate the
competition within Australia, firm is offering 2 year’s extended warranty on its products such as
iPhone (Bell, 2013).
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3.2 Threat from Competitors
With rapid development in the field of computer science and technologies, there is
intense competition in IT industry. Apple as a leading multinational information and technology
company faced stiff competition with other organisations like Samsung, HTC, Huawei, Sony and
LG. Though, in Australian markets, Apple is at apex position in terms of market share (53.9%),
Samsung and other companies are now making redundant efforts to snatch the market leader
position of Apple from Australia (Kodama, 2018). Apple in order to sustain in the competitive
environment needs to devise precise strategies regarding marketing, higher customer satisfaction,
innovation in products, etc. Not only these giants of IT trouble Apple, domestic players, small
and medium sized organisations are also increasing competition in the Australian Markets. It
implied that the threat of competitors is higher in Australian consumer electronic goods market.
3.3 Revolution on the business
Apple provides unique as well as innovative products and services to the consumers.
Apple iPhone, a benchmark product of company indeed revolutionised mobile technologies.
Earlier, where people needs to look for personal computer for doing transactions, editing
document, etc., now these can be accessed on their mobile phones. Apple iPhone becomes
sensation in the mobile industry which efficiently wiped out the ruler of mobile sector Nokia.
Apple's creative technologies and innovative products transform the perception of consumers as
well as other organisations.
3.4 Role of distributors
Distributors play a vital role in delivering organisational products and services to target
market. In order to maintain the flow of goods and services in an efficient manner, it is essential
that organisation describes the role of distributors adequately (Fan, Lau and Zhao, 2015). In
Australia, distributors of Apple include Australasian PC Distributors (APCD), Tech Data,
Ingram Micro Australia and Synnex who are responsible to deliver Apple products to retailers
and outlets across the country. Another role of distributors is to provide on time delivery of
products to retailers and target market so that consumers can purchase those products effectively
and efficiently.
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4.0 MARKET STRATEGY
In order to enhance customer base and sales, it is essential for the firm to devise precise
marketing strategy by undertaking adequate market research. In Australia, Apple is able to
capture market share through precise market strategies.
4.1 Target Market
Apple as a multinational technology company provides premium quality of products and
services for only those customers who prefers to purchase something new, different, unique and
expensive (Revella, 2015). The target market for Apple iPhone includes people who prefers
appealing design, features, quality and performance of technology. In this context, the target
market for Apple iPhone is described below in the table:
Type of Segmentation Segmentation Criteria Apple Target customer for
iPhone
Geographic Region Australia and global
Density Urban
Demographic Age 15-50
Gender Males and Females
Life-cycle stage Both for bachelor and married
couples
Income High Earners
Occupation Professionals, College
Students, managers, executives
and businessman.
Behavioural Loyalty Hard core loyal towards
company
Personality Determined, ambitious
Benefits perceived Self-expression, advance
features, premium facilities
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and technology
Status of User Both non and potential users
Psychographic Social Class Middle and Upper Class
Lifestyles Explorer, aspire, sporty,
resigned.
4.2 Value Proposition
Value proposition is the strategy of company to attract customers towards purchase of
organisational products and services. Value proposition is as important as soul in an individual.
Without clear proposition, a company will not be able to attract customers towards organisation.
Apple is leading multinational technology company with immense brand image and value
proposition that influence customers towards purchase of iPhone (Pissonnier, Toubon and Le
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Illustration 3: 7 of the Best Value Proposition Examples We’ve Ever Seen
(Source: Shewan, 2018)

Gal, 2016). Apple frequently reiterates its value proposition in the copy about its iPhone range of
products. Apple in their statement states that every iPhone company manufacturers offers more
than features and applications. It is built on the belief that a phone should be more than collection
of features. The phone should be elegant, wonderful and efficient to use.
4.3 Market Position
The market position refers to the strategy where firms tends to place its products in order
to align it with the marketing mix. For positioning of Apple iPhone, firm uses mono-segment
type and makes positing appeal towards a single customer segments. In order to compete with
other firms products like Samsung Galaxy series and Winodws Lumia, Apple provides
consumers with premium quality and premium price products (Johnson, 2015). This helps the
organisation to sustain in the competitive environment. As the target customers of company is
those individuals who are willing to pay extra, thus, firm positions its products at apex of
perceptual positioning.
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Illustration 4: Product Positioning
(Source: A Marketing Mindset, 2017)