Apple Watch Marketing Strategies: SWOT, Segmentation, and Mix

This report provides a comprehensive analysis of the marketing strategies employed by Apple for its Apple Watch. It begins with an executive summary and table of contents, followed by an introduction that highlights Apple's expansion and the watch's target demographic. The discussion section delves into a SWOT analysis of Apple, evaluating its strengths (innovation, brand recognition, strong marketing, customer experience) and weaknesses (high price, wrong predictions, different operating systems, declining shares, and defective gadgets). It also explores opportunities like high demand, a growing communication devices market, and unexplored markets, while also acknowledging threats such as the changing market, tax scandals, and intellectual property violations. The report then examines Apple's marketing strategies, emphasizing its straightforward and effective approach, including attractive advertising, targeted marketing, and building customer trust. A detailed analysis of the Apple Watch's market segmentation, positioning, and targeting is presented, focusing on its appeal to young, urban professionals and luxury-loving individuals. The marketing mix is also discussed, including product strategy (features and connectivity), promotional strategy (advertising and customer service), and price strategy. The report also includes a conclusion and a list of references.

Running head: MARKETING STRATEGIES OF APPLE
MARKETING STRATEGIES OF APPLE
Name of the Student:
Name of the University:
Author Note:

1
MARKETING STRATEGIES OF APPLE
Executive summery
The aim of this report is to discuss the marketing strategies of the watch produced by Apple. the
goal is to discuss the SWOT analysis of the company, the target consumers, segmatation
variables and the marketing strategies of the company especially the Apple Watch.

2
MARKETING STRATEGIES OF APPLE
Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
SWOT analysis of Apple:............................................................................................................3
Apple’s marketing strategy:.........................................................................................................8
Market segmentation of Apple Watch:........................................................................................9
Marketing Mix:......................................................................................................................10
Needed improvements:..............................................................................................................11
Conclusion:....................................................................................................................................12
References:....................................................................................................................................13

3
MARKETING STRATEGIES OF APPLE
Introduction:
The report contains some discussion on one of Apple’s products, Apple Watch that
mainly targets the higher class of people around the world. Apple is a global company that has
some largest selling products. From just a computer company, Apple has expanded itself in
various fields.
The report aims to analyze the internal features of a company, its strengths, weaknesses,
external opportunities and threats in order to identify the critical elements that have effect on the
business. The report also describes segmentation variables, the target market and the marketing
strategies of Apple watch.
Discussion:
Apple was established in 1976 as a computer company but expanded into a very
convoluted company in the last decade. Apple now is much more than a computer company and
has become the dominant market leader in iPod, music players and inevitably phones. In 2007, it
joined the mobile phone industry with iPhone and achieved a great success. The chef architect of
the company’s success is charismatic pitchman Steven P. Jobs who is the CEO of Apple and has
made revolutionary products of the company.
SWOT analysis of Apple:
Strengths:
Innovation and originality:

4
MARKETING STRATEGIES OF APPLE
Due to its innovative electronic devices, Apple has been ranking top among the 50 best
companies in the world since 2005. The company has been treated as the pioneer of unique and
original electronics in the market like iTunes, ilife, and iWork. The first one is a media player,
second one is for editing music, movies and photos. iWork is a presentation program. Presently,
the company is become one of the largest online retailers for videos, music and software
solutions as it entered the entertainment and IT services (Tar 2016).
Brand recognition:
To assess the market more closely, the company established its sales offices in highly
populated areas. Apple continues to control supply chain and transmitted code of conducts
reports to the suppliers to increase brand identification. Therefore, the company has gained
immense trust on the brand.
Strong marketing:
Apple chooses the most effective way to reach to the consumers not through their
elaborative websites but providing right information about their product. They compare similar
products available in the market with their products and cater which one is better to buy. They
have brought simplicity in marketing (Goldsmith 2013).
Customer experience:
Apple builds a strong customer relationship for marketing. They follow few steps like-
o Approaching customers in personalized manner
o Understanding customer requirements and provide solutions
o End the customer’s visit with an invitation to return.

5
MARKETING STRATEGIES OF APPLE
Weaknesses:
High price:
Apple is criticized for its high prize. The users justify the situation as they think the brand
is a premium gadget maker. In spite of its popularity, the brand faces tough competitions. The
consumers can get same features in other brands like Microsoft, Samsung and other mobile
phone companies. These companies provide high quality products in low-price this results Apple
in losing its customer base. This is why the customers are being attracted to the other
competitors.
Wrong Predictions:
Apple failed to anticipate the demand of the brand categories like phablet with larger
screen. The company invested on tablets but did not launch any phone with large screen.
Therefore, in 2011 Samsung outshined Apple by launching Samsung Galaxy Note and has an
authoritative presence in Phablet market.
Different operating system:
The consumers having an Apple phone face problems with OS systems. They cannot
choose to use iOS or OS X. The Apple forces to use ‘finder’ instead of ‘start’ to find the
documents, files and applications.
Declining shares:
The survey says finds that the market shares of Apple has been declining. As a result, the
company loses power to encourage its customers to buy its products (Shukla and Purani 2012).

6
MARKETING STRATEGIES OF APPLE
Defected gadgets:
The Apple iPhone 5 has manufacturing defects. The company has confirmed that iPhone
6 also has some problems. The users faced the problems like worse battery life. However, the
engineers working with Apple has quickly resolved the problems.
Overdependence on some particular products:
The revenues of the company largely depend on iPhone and iPad sale. Therefore, the
company’s activity and life will be vulnerable if the sales of these two products decline.
Opportunities:
High demand products:
The surveys found that there is a high demand of Apple’s products in the market. The
flourishing demand can be seen in the products like PowerBook and Power Mac products. The
consumers are also demanding new upgrade to MAC OS X. the demand for Apple Watch
always remains high and exceeds the supply availability and the pre order deliveries have to be
pushed back (Hunt 2014). There is a huge demand for iMac and iDVD also.
Growing communication devices market:
Growing communication devices market is an opportunity for the company that must be
utilized. The target of the company is always to provide high-quality products instead of low-
cost phones. This is the reason why despite its high price, Apple enjoys higher market demand
than its competitors (Goldsmith 2013).
Unexplored market:

7
MARKETING STRATEGIES OF APPLE
There is a high possibility of exploring new markets in the commonwealth nations and
especially the middle class segment. Apple should develop and make the bond stronger with the
commonwealth countries in order to introduce and capture the market of these nations.
Utilize cloud-based services:
The study reveals that the iCloud innovation can bring hike in sales of the company.
Apple can expand the services to meet the high demand of the iCloud services.
Threats:
The changing market of electronic communication:
Apple must keep pace with the continuously evolving structure of c electronic
communication device market (Khan, Alam and Alam 2015). There is always a scope for
innovation and quality enhancement. Therefore, the company faces fierce competition in
communication market and continuously design and brings modification in its devices. For
Apple it is a serious challenge for surviving in future market.
Tax scandal:
Apple’s reputation was hampered by a tax scandal that went viral resulted to the
company’s defamation. As the company has no tax objectives, it pays minimal taxes.
Violation of intellectual property rights:
Apple’s IP rights policies have faults as the company infringes the Apple patent rights. It
takes time to receive the information before the theft takes place (Mirzoev 2016). It cannot even
discover it immediately, which resulted in huge damages to the brands and services.

8
MARKETING STRATEGIES OF APPLE
Marketing strategy:
Apple is one of the few companies, which have gone through many difficulties. It once
faded into nothingness and then made a brilliant come back with its genuine skill, product
originality and marketing strategies. To the researchers, marketing strategies of Apple is
straightforward, simplified yet clever (Lopes and Lopes 2013). As their plain and easygoing
logo, their strategies of marketing are also undemanding yet gained superior popularity. To reach
to the consumers, the company takes the way of attractive and manipulative advertisements.
They reach to their customers through brilliant television commercials (Kraus 2016). Another
effective market strategy that Apple follows is to release brief information as rumors. Apple
always has a target market for every product. Like iPhone has targeted audiences of mid 30s. The
company claims that they provide a specific app for everybody in its communication devices.
The most effective strategy of marketing is gaining customer trust and loyalty. Apple electronic
products have completely different as well as attractive features that no company can beat
(Bahadir 2015).
In today’s world, various factors affect a product’s marketing, as the market wants the
newest and the most original products. Now a day people are more health conscious, sport loving
want to stay healthy and fit. These continuous changes have helped the company to analyze and
modify their products according to the market’s requirements. The Apple Watch receives and
responses to the notifications immediately and tracks the daily activity (Robertson 2012).
Controls music using only the user’s voice even pays for groceries. For this digitally connected
generation, the impact of the watch is inevitable. It has become a part of life because, this watch
has become something more than just a watch. The watch can connect to the owner’s iPhone and
transfer data with a single swipe or tap. From environmental perspective, the Apple Watch is eco

9
MARKETING STRATEGIES OF APPLE
friendly—with an application like Apple Pay. This reduces usage of paper, credit cards and
more. From financial point of view, Apple watch saves time and energy (Montgomerie and
Roscoe 2013). It completes the task more efficiently and takes less time enabling the user to
check passport or license information, credit card or mail information. From a technological
point of view, the Apple Watch is technologically more up to date, more advanced watch in the
market. The revenue of Apple is four times as large as the watch market, which has a great
impact on the economy (Armstrong 2015). The indirect competitors of Apple are Google,
Microsoft, and Samsung and the watch’s direct competitors are the Moto 360, LG G Watch R,
Pebble Steel, Sony SmartWatch 3 and Azus ZenWatch.
The Apple Watches are all customizable. The Watch Sport, Watch, and Watch Edition,
has the custom options, which not all other smartwatch brands offer. Apple 6 has software like
Apple Pay that the competitors do not have. Moreover, the product lines remain consistent as the
Apple watch has the same software and applications with which any other existing Apple user
can relate.
Market segmentation of Apple Watch:
Apple segmentation, positioning and targeting shows its market strategies. Apple’s
positioning type is mono-segment (Wongleedee 2015). Apple markets Apple Watch particularly
toward same geography and demography. They target the young people living in urban areas.
These are high earners and professionals as well as managers. Apple usually targets the
Millennial as they tend to be the best to enjoy Apple has advanced technology therefore, very
profitable for the company. The geographic segment for the Apple Watch is limited to only some
developed countries like America, Australia, France, China, United Kingdom and several others.
Apple focuses on luxury loving individuals who are self-expressive and those who are fitness

10
MARKETING STRATEGIES OF APPLE
oriented and determined as well as ambitious. They want the fitness capabilities in the watch.
Socioeconomic segment of Apple 8 is middle to upper class individuals.
Marketing Mix:
Product Strategy:
The Apple Watch is termed as the most personal product as it remains attached to the
user’s body. This has similar features as iPhone also connects to the iPhone (Londhe 2014). The
physical features of a touch screen Apple 11 are a heart rate sensor for recording and tracking
physical activity, retina display for a clear photos, Wifi and Bluetooth capabilities to connect to
internet. Apple Watch has the Activity app that can register time spent on exercise including
physical activities.
Promotional Strategy:
The Apple Watch’s USP is that first, it is a piece of fashion, and then a gadget. Apple
smartly advertises that the watch is a very personal product and leaves the customer with the
responsibility to imagine customizing his or her own watch.
The essential stages of the promotional mix are advertising, marketing, promotion, selling
and public relations. The Apple staffs are specially trained to treat the customers personally,
which assures next visit. Above all the quality of the products themselves market for the brand.
The devices go through rigorous approval procedures, which guarantee their quality.
Price strategy:
Apple takes advantages of the customer’s loyalty to the brand. They release the high
quality products with high price. This may result to poor customer base but if the quality is

11
MARKETING STRATEGIES OF APPLE
compromised, the brand will lose the trust associated with the brand. Most of the target
consumers are more tech-savvy and ready to spend dollar especially on such a gadget (Castro
2016).
Distribution strategy:
Both direct and indirect distribution strategy is followed by Apple to distribute its
products in the market. The Apple Watch can be purchased from a retail store or online but in
order to try the high-end Apple watch consumers must visit the Apple store.
Needed improvements:
To be successful and more user friendly, Apple Watch needs to affix their main
weaknesses. First is obviously the high price. The Apple Watch is more expensive than most
other smart watches available on market. Second, the Apple Watch needs to buy an iPhone and
the people who posses iPhone, Apple watch is of no use to them. Apple is not the leading
company with smart watches. Samsung is in the market for two more years, so they are
dominating the market (Wouters 2014). Finally, the naming of the Apple Watch instead of
iWatch makes people, call it iWatch very often.
However, Apple has opportunities to mend these weaknesses. With their loyal brand
followers, Apple watch can be another cash cow for Apple. The late entry into the market, low
penetration and competitive market pose threat for the product. It is also not acceptable to the
low earners who are also not technically advanced.

12
MARKETING STRATEGIES OF APPLE
Conclusion:
From the above discourse, it can be deducted that Apple has a large global market. It is
acceptable to the buyers who require high-end products and can spend dollars to get a device,
which they themselves can customize according to their needs. The company also targets to the
luxury lovers who want to increase social status with such fashionable devices produced by
Apple. The Apple watch focuses on the audience who find the activity apps attached to their
watches as well as those who are tech-savvy or professionals requiring the features of a phone on
their watches. The price is though comparatively higher than the rest of the market, they are the
loyal buyers of Apple who has immense trust on the brand’s product. There are not many scopes
for Apple to differentiate their watches from the available watches. Certainly, Apple will
overcome the weaknesses and threats.

13
MARKETING STRATEGIES OF APPLE
References:
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Bahadir, S.C., Bharadwaj, S.G. and Srivastava, R.K., 2015. Marketing mix and brand sales in
global markets: Examining the contingent role of country-market characteristics. Journal of
International Business Studies, 46(5), pp.596-619.
Castro, R.B., 2016. Apple Inc.–A Marketing Success Story.
Goldsmith, D., 2013. Rethinking the company's competitive advantage. Financial
Executive, 29(6), pp.14-18.
Goldsmith, D., 2013. Rethinking the company's competitive advantage. Financial
Executive, 29(6), pp.14-18.
Hunt, S.D., 2014. Marketing theory: foundations, controversy, strategy, and resource-advantage
theory. Routledge.
Kapferer, J.N. and Bastien, V., 2012. The luxury strategy: break the rules of marketing to build
luxury brands. Kogan page publishers.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A Critical Analysis of Internal and External
Environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), pp.955-961.
Kraus, S., Meier, F., Eggers, F., Bouncken, R.B. and Schuessler, F., 2016. Standardisation vs.
adaption: a conjoint experiment on the influence of psychic, cultural and geographical distance

14
MARKETING STRATEGIES OF APPLE
on international marketing mix decisions. European Journal of International
Management, 10(2), pp.127-156.
Londhe, B.R., 2014. Marketing Mix for Next Generation Marketing. Procedia Economics and
Finance, 11, pp.335-340.
Lopes, H. and Lopes, R., 2013. Comparative Analysis of Mobile Security Threats And
Solution. Int. Journal of Engineering Rearch and Application, 3(5), pp.499-502.
Mirzoev, T., Brannon, M., Lasker, S. and Miller, M., 2014. Mobile Application Threats and
Security. World Comput. Sci. Inf. Technol. J., 4(5), pp.57-61.
Montgomerie, J. and Roscoe, S., 2013, December. Owning the consumer—Getting to the core of
the Apple business model. In Accounting Forum (Vol. 37, No. 4, pp. 290-299). Elsevier.
Robertson, S.M., 2012. Potential threats of the exotic Apple snail Pomacea insularum to aquatic
ecosystems in Georgia and Florida(Doctoral dissertation, University of Georgia).
Shukla, P. and Purani, K., 2012. Comparing the importance of luxury value perceptions in cross-
national contexts. Journal of Business Research, 65(10), pp.1417-1424.
Tar, A., 2016. Apple SWOT Analysis.
Wongleedee, K., 2015. Marketing mix and purchasing behavior for community products at
traditional markets. Procedia-Social and Behavioral Sciences, 197, pp.2080-2085.
Wouters, A., 2014. Apple & Google: a comparative analysis of marketing approaches and
strategies. Czech Journal of Social Sciences, Business and Economics, 3(4), pp.31-43.

15
MARKETING STRATEGIES OF APPLE