An Analysis of Apple Watch's Marketing Mix and Strategies

This report provides a comprehensive analysis of the marketing mix employed by Apple for its Apple Watch product. It begins with an introduction to the company and its evolution, highlighting the Apple Watch as a key product. The report then identifies the target market for the Apple Watch, segmented by loyalty, geography, demography, and lifestyle/behavior. The positioning of the Apple Watch in the smart watch market is discussed, emphasizing its evolution from a product of need to a style statement. The core of the report focuses on the marketing mix elements: product features and variations, premium pricing strategy, distribution through Apple stores, retailers, and online channels, and promotional activities including advertising, sales promotion, and public relations. Finally, the report offers recommendations for improvement, such as addressing system update issues and considering price adjustments, to enhance customer value. References are provided to support the analysis.

Running head: APPLE
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MARKETING MIX
APPLE INC.

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Table of Contents
Introduction:...............................................................................................................................................1
Target market for Apple Watch:..................................................................................................................1
Positioning:..................................................................................................................................................2
Marketing mix of Apple watch:...................................................................................................................2
Product:...................................................................................................................................................2
Price:........................................................................................................................................................3
Place:.......................................................................................................................................................3
Promotion:..............................................................................................................................................4
Recommendations:.....................................................................................................................................5
References...................................................................................................................................................6

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Introduction:
Apple is the multinational company that deals with technological products such as mobile
phones, MacBook’s, iPods etc. it is the company that is headquartered at California. The
company has started its operation in 1976 by selling personal computers as their first products
type. After struggling to so many years, the company has made its position to what it is today.
the company has high products range but the most popular products these days which is talked
about the most in recent times is watch that is Apple watch (Hitt, Ireland and Hoskisson, 2012).
Apple watch is the very smart watch that was officially announced in the year of 2014 but
released in April 2015. Apple watches are the very unique products among all the products
offerings by Apple. There are three different models that are present in the market for Apple
watch that are Apple Watch, Apple watch edition and Apple watch sports.
Target market for Apple Watch:
Target market is that segment of the market that has been selected by the company in order to
market its products. First of all, the company that segments that market as per the characteristics
of the customers and then target the segment that is most relevant to the products that the
company is offering (Boone and Kurtz, 2013). As far as Apple is considered, it has been
analysed that the company is serving large of products to the customers but Apple watch is the
product that requires the company to target a particular market as it is not a generalized product
used by everyone. There are different basis on which the market has been segmented and thus
each segment of the market from each of the division needs to be targeted.
Loyalty: it has been analysed that Apple has many loyal customers and the company focuses on
targeting those customers only. This is because they know that they have the capability to retain
the customers. As the Apple watch can be liked to iPhone and thus the company can target the
iPhone users to sell the watches.
Geography: Target market on the basis of geography includes the elements such as region and
density (De Wit and Meyer, 2010). As far as the region is considered, it has been analysed that
Apple is targeting the market of developing as well as developed countries. The more market of

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the company is in developed countries only. In terms of density, it has been analysed that the
company wants to serve the urban market with its products that is Apple Watch.
Demography: In terms of demography, the segments are made on the basis of age, gender,
lifestyle, income and occupation. It has been analysed that the target market for Apple watch in
terms of age is 25-45. Males and females both are targeted (Heracleous, 2013). It has been
analysed that Apple is the brand that is considered as the status symbol for the people and thus
the people with high lifestyle and standards are majorly targeted by the company. In terms of
occupation, the people who are professionals or are at material positions tends to but the products
more. This is because these people have high income and the products of Apple are highly
priced.
Lifestyle and behaviour: The behaviour of the customers is also a criterion on which the
company focuses on. It has been analysed that Apple wants to serve it loyal customers and do not
focus on serving the different market range (Akana, et al. 2016). They just want to enhance the
customer loyalty so that their customers cannot go anywhere.
Positioning:
Watch market:
The market of smart watch is enhancing rapidly with high pace. It has been analysed that many
brands are entering this industry such as Google, Samsung, etc. it is the industry that provides the
market with high technology products that are used by a particular type of segment.
Unique positioning of Apple watches:
As far as the positioning strategy of the company is considered, it has been analysed that the
Apple watch when launched first was positioned as the product for need. But as far as the new
series of Apple Watch 2 is considered, this product is positioned as the style statement. Tim
Cook suggested that Apple Watch can be wore whole day as it is newly designed to be a style
statement. The two major words that are being used to position the new version of watches are
style and taste. When the 1st series of the watches was launched, it was launched with a meaning

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of showing health and fitness details but now the series has been positioned as the style statement
watch that also benefits the customers to have health and fitness details along with time
description of course. Early adopters have used the products but it has been analysed that the
mass that has been set for the products has not yet achieved by the company.
Marketing mix of Apple watch:
Product:
The product that needs to discuss in this case is Apple watch. It is the watch that comes in
different variations. Apple watch is the watch that performs multiple functions. It provides the
customers with the benefits of having health and fitness details in their watch. It can link to the
iPhone and the message and calls can be attended by watch only. The 2nd series of the watch also
provides the benefit of being stylish (Raphan and Friedman, 2014). This is because the products
have been positioned as the style statement among the customers. Apple watch has software
installed in it that allows the customers to connect their phones to the watch. As far as series 1 of
the watches is considered, it has some features like dual core variety and S1 processor while
series 2 have S2 processor.
Price:
Apple watch is the products that are very convenient and functional. It is the product that is
launched by Apple to be worn and not to be carried. It is providing many benefits to the
customers and is high quality products (Jeyarajah, 2015). Because of high quality and range of
functions, it is realized by the company that the providing strategy that needs to be sued is
premium pricing. Prices are very high as compared to the competitor brands that have launched
the similar products. High pricing or premium providing strategy allow the company to earn
more profits and also helps the company to justify its positioning as the premium brand and the
products as the style statement (Berthon, Pitt, Plangger and Shapiro, 2012). Even though the
price of the products is high but the company has the confidence on its loyal customers that they
will but their products. The brand name of the company and its quality is the competitive
advantage for the company.

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Place:
Apple is the international brand. The company serves the customers serves the customers in
almost all over the world. The brand includes a very strong network and the distribution system
that supports the company to deliver the product to the market. At the initial days of the launch
of Apple watch the products was not available on the stores of Apple (Graham, 2008). The
customer who wants to buy the products has to order the products from the online website. The
individual has to call for an executive to install and fix the watch and provide the demo to how to
use the watch (Dishman and Calof, 2008). Later one, the company found that it is very difficult
process to be conducted and thus the company make changes in their distribution process. The
company has selected different distribution network. The company deliver the Apple watch
selected pieces through the Apple exclusive stores in the big cities of different countries and
through some premium class retailers. Now the products are available in almost all the stores.
The company is also selling its products through website as well. Different mediator websites
such as Flipkart, Myntra, and Amazon also sell the Apple products now. This has increased the
reach of the customers to the products and also the availability of the products.
Promotion:
Promotion activities for the company are very important. This is because only launching the
products is not enough (Danaher, Hardie and Putsis Jr, 2001). The products need to be marketed
as well so that the products can be reached to the customers and the market gets aware of the
existence of the products. In case of Apple, it has been analysed that the company not only
market the products after its launch but also market the products before launching it into the
market. Apple is the brand that is already very popular among the high class customers. It is the
brand that positioned itself as the premium brand that is style statement of the people these days.
Apple uses many types of advertising techniques in order to market the products like Apple
watch. Some of the promotional activities of the company are:
Advertising: the company use this method to market Apple watch through different media;
advertising is the method that helps the company to show the visual or audio message to the
customers regarding the products through different media (Fan, Lau and Zhao, 2015). It helps the
company to be reminded by the people and also provide higher reach in the market. The

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company use the medium such as television and print media to post the ads in order to market
Apple watch.
Ad posted in Vogue magazine.
Sales promotion: Sales promotion is also the method that has been used by Apple to sell Apple
watch. The people at the Apple store are so much educated with the knowledge of technology
and the features of the products that they can easily convince the customers to buy the products.
This is strategy of sales promotion (Grewal, et al. 2014).
Public relations: It has been analysed that the company also focuses on making public relation by
conducting public campaigns that allow the firm to introduce the new products and its features
before the launch of the products (Peattie and Peters, 1997). It has been seen that the customers
wait for the launch of the products by Apple because the company make so much of pre
promotion before the launch which makes the products already popular. This suggests that the
customers are very much eager to use the products by Apple.

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Recommendations:
Although Apple is doing great in the market and with the customers, but there is still some of the
scope left for the company, where the company can improve its practices so that the customer
value can be enhanced. Some of the recommendations for the company are discussed below:
1. It has been analysed that the products of the company such as Apple watches facing some
of the system problems after the update. This may be because of the bugs that are found
in the updates. The company release the updates so frequently n their system that they
remains with many bugs which can cause problem to the devices, the company should
concentrate on making the system updates that are bugs free so that the device of the
people does not get affected after doing the update (Shostack, 1977). This helps the
company to develop more customers’ value as most of the customers are facing such
issues.
2. Pricing of the products that they company provide is very high as compared to the
problem while the products or the Apple watch is not that much high in the quality. If the
watches of other brands are considered they are also providing the same features with low
prices (Chrysochou, 2010). Thus, customers find it easy to buy those products of other
brands rather than Apple. Apple is just becoming the status symbol and losing the trust of
the customers. It has been analysed that the company should lower the rice so that more
of the customers of middle class and also buy the products.
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Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social
media, and creative consumers: Implications for international marketing strategy. Business
horizons, 55(3), pp.261-271.
Boone, L.E. and Kurtz, D.L., 2013. Contemporary marketing. Cengage learning.

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Chrysochou, P., 2010. Food health branding: The role of marketing mix elements and public
discourse in conveying a healthy brand image. Journal of Marketing Communications, 16(1-2),
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Danaher, P.J., Hardie, B.G. and Putsis Jr, W.P., 2001. Marketing-mix variables and the diffusion
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