HI5004 Marketing Management: Apple iPhone 6S Brand Strategy Report

This report provides a comprehensive analysis of the marketing management strategies employed for the Apple iPhone 6S. It begins with an overview of the product, including its key features and competitive landscape, highlighting competitors like Samsung and Sony. The report then delves into environmental scanning, examining political, environmental, social, legal, economic, and technological factors influencing the iPhone 6S. Market segmentation is explored, identifying three key customer segments: brand loyalists, tech enthusiasts, and status-oriented consumers. The report outlines the target market and forecasts sales, followed by a detailed analysis of brand positioning, promotional strategies, and the use of a perceptual map. The consumer adoption process is examined, covering awareness, interest, evaluation, trial, and adoption stages. The pricing strategy, distribution channels (including Apple stores, online platforms, and electronic firms), and the integrated marketing communication matrix are also thoroughly discussed. Finally, the report explores advertising, sales promotion, personal selling, and public relations strategies used to promote the iPhone 6S. This analysis aims to provide a complete understanding of Apple's marketing approach for this product.

Marketing
Management
Apple iPhone 6S

Brand Positioning and Brand
Equity
The Apple iPhone 6S is the:
• Ninth generation smartphone
designed by Apple Inc.
• With strengthened chassis
• 12 megapixel camera
• Updated system-on-chip
• Enhanced fingerprint recognition
sensor along with “Hey Siri” abilities.
• The new facet of the iPhone 6S is
the “3D Touch” that capacitates
pressure sensitive touch inputs.

Competitive Information
• Significant competitor of the product are
android phones like Samsung Galaxy S6
Edge, Sony Xperia Z5 Premium, Samsung
Galaxy Note 5, HTC One M9 and LG G4 .
• The competition is based on the display
technology featured in these smartphones
such as the QHD AMOLED and Force
Touch display that are present in Samsung
and Sony, however not in the iPhone 6S.
• CPU used in iPhone 6S, is limited to two
while Android flagships have upgraded the
core to at least 6 in count.
• Cameras are also inferior compared to the
Android phones.

Environmental Scanning
Political Factors:
• Free trade policies
• Reduced political
disturbances
Environmental
Factors:
• Adoption of sustainable
practices
• Ecological trends
Social Factors:
• Sociocultural trends
• Questionable Anti-Apple
sentiments
Legal Factors:
• Strict privacy regulations by
governments
• Lawsuits regarding third
party repair services
Economic Factors:
• Stable economic conditions
• Improved GDP
Technological Factors:
• Increasing cloud computing
demands
• Growing demands for
technological integrations

Market Segmentation
The market for iPhone 6S can be divided into three segments:
• First segment: This segment constitutes of the customers with
high loyalty towards the brand, who are willing to purchase the
products of the company at the premium prices to get access to
the features and services the products have to offer.
• Second segment: This segment consists of the technically oriented
customers who are curious new technological innovations that the
company introduces.
• Third segment: This comprises of the people who used the Apple
products as status symbols and are social acceptance oriented.

Demand ForecastedMarket positioning
statement
Target Market
Apple aims to fulfil the
aspirations of the
people, so the high
price is justified with
the help of user friendly
operating system
making the lives of the
people easier.
The target market for
Apple is the individuals
possessing high income,
thereby the niche
market.
The company estimates a
minimum of 12 million
units to be sold in the Asian
markets at the least within
the first 3-5months of the
launch of the products.
Further the company also
forecasts an increase in the
sale of iPhone 6S due to
the post sales marketing
strategies.

Brand
PositioningThe brand positioning for Apple iPhone 6S
is firstly influenced by the association of the
brand Apple, having created a niche in the
market, any product that the company
introduces is pre-hyped and demanded in
the market since the launch date of the
model is announced. Various other
attributes influencing the position of the
product in the market can be altered and
manipulated with effective advertising and
promotional strategy. The promotional
strategy of Apple for the iPhone 6S follows
the aggressive strategy, wherein the
company utilizes unique ideas to promote
the product in ATL (Above the Line)
platform, since they are promoting a
premium product.
With the help of a perceptual map, the position of the brand in
the market shall be clearly understood. The Apple products are of
premium quality and are hence, have prices higher than the
other similar products in the m market. The Apple iPhone 6S with
advanced features like the 3D Touch, is also priced higher than
the existing products of the company with promising deliverance
of its unique facets combined with the brand name of Apple.
Perceptual Map of Apple

Identified Niche for the Product
The Niche market is a subset of a market, wherein a
particular type of product is concentrated. Apple is
situated in the niche market segment, wherein the
company produces goods that are highly demanded and
hence have high income potential. The competition for the
products of the company are few, since Apple has
established itself in a position wherein its prime
competitor is its own reputation for innovative products.
Apple itself is one of the leaders in the global smartphone
industry. The followers of the iPhone 6S can be identified
as Samsung, One Plus, Xiaomi and such other companies.
The product shall be launched in a market wherein the
brand Apple has a well established position in the
smartphone industry.

Consumer Adoption Process
Awareness: At this stage, the
customers are made aware of the
innovations incorporated in the Apple
iPhone 6S such as the new 3D Touch
and improved camera specifications
through advertisements in television,
social media, print ads and such other
marketing means.
Interest: Herein, the customers
become interested in the chosen
product and searches for the
specifications of the innovation, and
such other functions, services,
availability, brand, price, color and
other relevant aspects of the iPhone 6S.
Evaluation: In this stage, the customer
has already gathered the information
and applies the same for evaluating the
worth of the innovations. The
customers compare the attributes of the
chosen product with the existing
products in the market to decide about
the investment in the product.
Trial: This stage is crucial as the
customers try out the product in a
small scale in order to verify the
information gathered previously. The
customer can either buy the product
or try out samples in retail stores.
Adoption: In the final stage the
customer adopts the product by
purchasing it, having evaluated the
varied facets of the iPhone 6S.

Pricing strategy
The pricing strategy for Apple iPhone 6S incorporates a premium pricing
strategy. The price of iPhone 6S was at $199 for 16GB, $299 for 64GB
and $399 for the 128GB variant. The hardware and the interface are
designed to provide appropriate value for the price. It must also be noted
that Apple utilizes skimming price for its products as the iPhones have a
higher price than the other phones especially the android phones in the
smartphone industry. The unique technology that the company provides its
customers with, has a value added pricing system, which makes the
customers focus on the products sold by the company than the products of
the organization’s competitors.
It must also be mentioned that Apple attempts to enhance the
demand of its products like the iPhone 6S, through differentiation. Apple
creates demands for its products by providing the company with a power
over the pricing of the products with the aid of innovative advertising,
secured brand loyalty, and hype regarding the product before the launch
date. By setting the price above the average range, Apple procures an
artificial barriers for new entries in the market.

Distribution Channel
The distribution channel that shall be implemented in
case of the iPhone 6S is through retailing. In the
process of distribution, Apple utilizes varied channels,
from which the first method of distribution is the Apple
website wherein the customers can pre order the
chosen product even before it is available in the
market. Secondly, the Apple stores that are located
across the globe in distinct buildings, making it easily
accessible for the customers. Thirdly, the huge range
of electronic firms through which the company
distributes its smartphones. For instance, Amazon,
which is the prime online avenue where iPhones as
well as other Apple products are available. The
management at Apple also strategized the method to
acquire the appropriate customers by overhauling their
previous supply chain and making it efficient and lean,
thereby reducing the inventory levels and enhancing
the sales margins.

The Integrated Marketing
Communication Matrix for
iPhone 6S