Consumer Behavior and Apple Watch Marketing Analysis

This report provides a comprehensive market analysis of the Apple Watch, examining its product description, consumer behavior factors, and marketing strategies. The analysis delves into segmentation, targeting, and positioning, along with an assessment of unique selling propositions, celebrity endorsements, and promotional activities. The report also explores the impact of psychological, social, and personal factors on consumer buying decisions. Furthermore, it offers strategic recommendations to enhance marketing efforts, including increased social media engagement, targeted advertising, and product diversification. The report concludes by emphasizing the importance of unique marketing strategies and global retail expansion for continued success in the Australian and global markets.

Running Head: Market Analysis of Apple Watch
Consumer behaviour and marketing

Market Analysis of Apple Watch 1
Executive Summary
The report is summarized on the topic Marketing Strategies of the product Apple watch. In this
report an overview of the product ‘Apple watch’ is given. The analysis section includes the
various marketing strategies and the associated Consumer behavior theories. A proper analysis of
the result of the survey of the Product Apple watch is also made. Recommendations were
provided to overcome the weak marketing techniques to assist the brand in better decisions
making. It is concluded that Apple watch has been preferred much by its consumers because of
its benefits and marketing strategies to attract customers in Australia.

Market Analysis of Apple Watch 2
Contents
Executive Summary.....................................................................................................................................1
Product description......................................................................................................................................3
Consumer behavior factors..........................................................................................................................4
Analysis of Apple watch marketing strategy...............................................................................................4
Strategic recommendations..........................................................................................................................6
Bibliography................................................................................................................................................9

Market Analysis of Apple Watch 3
Product description
Apple Watch was launched on 24 April 2015 as one of the smart watches designed by the Brand
Apple Inc. Its major features include tracking of fitness with health aiming capabilities like
monitoring heart rate. It is a wearable technology with a combination of fashion accessory that is
mainly designed to increase the uses of iPhone with an addition of some new features (McNulty,
2015) . Initially after the launch of this smart watch it was not available on the Apple store but
has to be ordered online as a reserve for walk in purchases. It was praised for its convenience and
design as well criticized for its price and speed by the users. The major choices that were to the
customers in respect of apple watches were
 The apple watch sport
 The apple watch
 The watch edition (Spivey, 2015)
Figure 1: Apple watch edition.
(Apple, 2019)

Market Analysis of Apple Watch 4
At present it is available in five versions with Apple watch series 4 as the latest form in the year
2018. The latest watch series features GPS, wider screen with best quality display and the
minimum battery life of 18 hours of regular use. It was launched with an initial price of $399
(Markelo, 2015).
Consumer behavior factors
From the analysis of previous assignment it has been found that following factors affect the
consumer buying decision of Apple watch.
 Psychological Factor including Perception has a great role in enhancing the sale because
some have purchase the Apple watch with a view of Brand name while others have made
a buying decision on the basis of product value.
 Social factor including Family and peer groups have affected the buying decision of
Apple watch. They have assisted the consumers by making them aware about the Apple
watch.
 Personal factor like Age also has a part in the buying decision of Apple watch. People of
young age are more focused towards the product.
 Social factor like Social class has a great contribution in the sale of the watch. As people
with high social class are its major customers (East, et al., 2016).
Analysis of Apple watch marketing strategy
On the basis of above Consumer behavior factors the applied marketing strategies are
Segmentation, Targeting and Positioning is conducted by the brand as a marketing strategy.
This has helped in attracting the customers of younger age (16-40) because the major features of

Market Analysis of Apple Watch 5
the Apple watch focused on health routine of the people. The Targeting strategy was a right step
taken by the brand by choosing its existing users as a target market because they will show more
loyalty towards their brand. Positioning has also benefited the brand in gaining the premium
customers because Apple is already considered to be a status symbol among its competitors
(Mas, 2018) .
Unique selling proposition of brand is also one of the strategies that have benefited the brand.
Apple watch with high technology has enabled the brand to earn competitive advantage and
made it hard to replicate (Wear, 2017).
Apple has taken the use of celebrity endorsement like Selena Gomez. It has also posted an
advertisement ‘Better You’ for the promotion of its latest Apple watch series 4. This was the one
of the best marketing techniques used because the youth of the nation is most inspired by the
celebrities as well as ‘status symbol’ concept can be well shown by the popular celebrities only
(O'Brien, 2018).
Apple sales promotions facility includes return policy, free delivery option, rebates and
premiums which help in building customer satisfaction to a certain level only because its target
market is high income level group that are not affected much by such benefits. Personal selling is
also marked as one of the best marketing technique used. Employees of the brand have vast
knowledge about the product they are offering to their customers. Thus they have also enhanced
the sale of the product on the company’s behalf (Snyder, 2015).
Apple uses E-mail marketing as a form of direct marketing to reach out to its customers. It
includes assisting the customer to gain knowledge about the product specifications or additional
information regarding the purchase on the online store (Williams, 2004). To build public relation

Market Analysis of Apple Watch 6
strategy the brand sends samples of its products to journalist to increase the number of reviews
because it will help in building the trust towards the brand (Sydney, 2019) .
Apple as one of the international brands has followed some market alignment activities also such
as creating a buzz in the market. Creating mystery about the product is one of the best techniques
adopted by the brand to generate curiosity about the product among the buyers (Mourdoukoutas,
2011).
Strategic recommendations
 It is suggested that brand must enhance the use of social media marketing of ‘Apple
Watch’ because in today’s business world billions of people are connected to the outside
world through these sites only. It is necessary for the brand to focus more on platforms
with high user interface like Facebook and Instagram and understand their proper
optimization. This cannot be done by simply creating a business profile of the brand on
these sites but the brand marketer should regularly post about the latest products and the
features of the products brand provides. Proper attention must be paid in timely replying
and solving the queries of its customers and the use of Chatboat must be minimized for
providing the customers with better feedback on Apple website. Crafting contests and
developing groups on these sites and encouraging user’s participation in it should also be
initiated in order to increase the brand visibility and awareness among its future
customers. Use of tutorial videos must be increased on these sites so as to acknowledge
the users with the benefits of their product as well as attaining consumer traffic through
online channel. The number of influencers must be increased because they will help in
right marketing of the brand with quality content. Because simply marketing of branded

Market Analysis of Apple Watch 7
products are not enough but it should be done in a right way and on right channels
(Forbes, 2019).
 Use of Endorsed advertisements must not stop but it should be shown on the right
platform. Instead of showing these advertisements on television these must be shown on
media like YouTube and Facebook because user have high engagement rate on these
channels. Celebrity endorser for marketing in each country should be approached because
they have proved to be more effective. For example in Australia, ‘Nicole Kidman’ can be
approached for the endorsement marketing of apple watch (Pierson & Dave, 2015).
 Apple must opt for the diversification of a single line product that targets low and
medium income level group. This is because there is number of low income level groups
prevailing in Australia. This should be done by the brand without compromising much on
its quality. Such step will help in providing the product experience to its entire new target
customers. There might be the chances that new customers with good product experience
might opt for its other high priced products also. By developing this strategy it will helps
in attracting and attaining the customers of its competitors also. With the increase in
number of customers it profit will eventually increase. Thus it should be noted that by
targeting larger segment in Australia, it would be able to increase its sales and
profitability.
 It is evaluated that Apple as an international brand has followed almost the same
marketing strategies like its competitors. It is highly recommended that brand must
develop some unique marketing strategies. The new strategies can be investing more in

Market Analysis of Apple Watch 8
copywriting this will helps in sending personalized e-mails to all its customers through
modern marketing tools. This will generate a better bond between the customers and the
brand without making a personal contact (McCoy, 2014). Lastly, Apple has its retail
stores only in 25 countries and hence it is recommended that more of retail stores must be
open globally to encourage offline in Australia as well as globally (Apple, 2019).

Market Analysis of Apple Watch 9
Bibliography
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Apple, 2019. Watch series 4. [Online]
Available at: https://www.apple.com/in/watch/
[Accessed 7 June 2019].
East, R., Singh, J., Wright, M. & Vanhuele, M., 2016. Consumer Behaviour. s.l.:SAGE.
Forbes, 2019. 14 Social Media Trends That Every Marketer Should Know About In 2019.
[Online]
Available at: https://www.forbes.com/sites/forbescommunicationscouncil/2019/02/01/14-social-
media-trends-that-every-marketer-should-know-about-in-2019/#408442ee3796
[Accessed 7 June 2019].
Markelo, S., 2015. Apple Watch: 101 Best Features. s.l.:Conceptual Kings.
Mas, S., 2018. Definition and analysis of the market for the apple watch. Munich: GRIN verlag.
McCoy, J., 2014. What We Can Learn From How Apple Does Copywriting. [Online]
Available at: https://www.linkedin.com/pulse/20140613135852-119256924-what-we-can-learn-
from-how-apple-does-copywriting
[Accessed 2019 June 2019].
McNulty, S., 2015. The Apple Watch Book. s.l.:Peachpit Press.

Market Analysis of Apple Watch 10
Mourdoukoutas, P., 2011. How to Launch a WOM and Buzz Campaign the Apple Way. [Online]
Available at: https://www.forbes.com/sites/panosmourdoukoutas/2011/08/07/how-to-launch-a-
wom-and-buzz-campaign-the-apple-computer-way/#609de1457cab
[Accessed 7 June 2019].
O'Brien, K., 2018. Ads we like: APPLE SHOWCASES A 'Better You' to promote the new apple
watch series 4. [Online]
Available at: https://www.thedrum.com/news/2018/09/21/ads-we-apple-showcases-better-you-
promote-the-new-apple-watch-series-4
[Accessed 6 June 2019].
Pierson, D. & Dave, P., 2015. Apple gets stars to set Watch's status. [Online]
Available at: https://www.latimes.com/business/la-fi-apple-watch-status-symbol-20150424-
story.html
[Accessed 7 June 2019].
Snyder, B., 2015. Here's how Apple Store employees will sell you the Apple Watch. [Online]
Available at: http://fortune.com/2015/03/04/apple-watch-store-sales/
[Accessed 6 June 2019].
Spivey, D., 2015. Apple Watch. London: Penguin.
Sydney, P. R., 2019. Be like Apple and use clever PR to launch your new product. [Online]
Available at: https://publicrelationssydney.com.au/be-like-apple-and-use-clever-pr-to-launch-
your-new-product/
[Accessed 7 June 2019].

Market Analysis of Apple Watch 11
Wear, A. w., 2017. Major selling points of Apple watch. [Online]
Available at: https://www.appwatchwear.com/news/major-selling-points-of-apple-watch/
[Accessed 6 June 2019].
Williams, A., 2004. Email Marketing & Apple Watch. [Online]
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