Report on Market Related Factors for Apple Watch: A Detailed Analysis

This report conducts a market analysis of the Apple Watch, examining key market-related factors. It explores the concentration of the target market, highlighting the potential in markets like Australia and the importance of targeting younger, higher-income demographics. The report also discusses the timing of Apple's market entry, emphasizing the company's innovative software features and the importance of loyalty. Competitive pressure from rivals like Samsung and Sony is analyzed, along with the impact of technological capabilities. The report further delves into Apple's marketing strategies, emphasizing the importance of external environmental analysis, consumer market analysis, and the marketing mix, including product, price, promotional, and place strategies. The report also references various sources to support the analysis.

Running head: Market related factors for Apple watch 1
Market Related Factors
Market related factors for Apple watch

Market related factors for Apple watch 2
The aim of this report is to do market analysis for the latest product of Apple Inc. of its
latest product Apple watch. Apple watch is basically considered as the smart watch which is
being introduced by company in the market in 2015. There are some factors of marketing
mentioned below.
Concentration of target market
The market potential of Australia is progressing with current share and the android users
in the market are very high. Apple has strong competitors such as Samsung, Motorola, LG and
Microsoft that turns into making wearable watches, the demand of the smart watches of Apple
will be boon in the market. The target segment for Apple watches must be a young to average
age between 16 to 40 years. The main concentration of Apple Company should be on the higher
income social groups who are willing to take chances with offered options that is the innovator
of the segment (Hsiao and Hsiao, 2017).
Figure 1: Apple watch
Source: (Khan, Alam and Alam, 2015).

Market related factors for Apple watch 3
Timing of marketing entry
Apple is the leading inventor of the new technologies. The apple smart watches are
entered in the market when the demands of new technology are required. The features of Apple
watch is innovative software like Apple Pay which competitors do not have. However, various
success factors are considered while entering into new market (Van der Panne, van Beers &
Kleinknecht, 2003).
It is a new and refreshing product and it enters into the market when it has realized that it has
number of loyalty customers and this industry is anticipated to grow (Riches, Martinez, Maison,
Klosterman and Griffin, 2015).
Competitive pressure
The competitors of Apple Company have the ability to attain the competitive advantages.
While entering the new market of smart watches by Apple, it has to face the two major
competitors, Samsung and Sony, had launched smart watches in the market already that had been
presentable in the market for more than 1 year. Additionally, Apple did not show their latest
technology at the international CES, Las Vegas while other competitors did. The factor of
bargaining power of suppliers has low ability in the context of Apple watches due to their loyalty
to Apple. Technological capability is able to perform any relevant function related to technical
and it can reduce the pressure of competitive (Berkhout, Hartmann & Trott, 2010).
Marketing
Marketing is an integral part for the Apple company to increase the more sell of the
Apple watches. It is required for the company to do external environmental analysis, consumer

Market related factors for Apple watch 4
market analysis and marketing mix. These all procedures would be helped out to determine the
specific factors for bringing the growth of the sales. The marketing strategy of apply is very clear
and crispy in their message. The competition with Apple on a company level is very low. The
Apple watch is unique and due to its high demand and great reputation in the market, its
marketing strategy is very attractive. Apple Inc. is able to use its innovative model in effective
manner that is why its products produce in the market with latest technology (Berkhout &
Rietdijk, 2010).
The price, product, promotional and place strategy of Apple is effectual. The selling strategy of
Apple is efficient when a customer enters the apple store, they are treated and assisted by an
employee, who provides the services one on one to make a sale.

Market related factors for Apple watch 5
References
Berkhout&Rietdijk, 2010, Cyclic innovation model - Circular vision in open innovation, Ernst &
Young Performance Journal.
Berkhout, G., Hartmann, D., &Trott, P., 2010, Connecting technological capabilities with market
needs using a cyclic innovation model. R&D Management, 40(5), 474 - 490.
Hsiao, K.L. and Hsiao, K.L., 2017, What drives smartwatch adoption intention? Comparing
Apple and non-Apple watches, Library Hi Tech, 35(1), pp.186-206.
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.
Riches, G., Martinez Jr, R., Maison, J., Klosterman, M. and Griffin, M., 2015, An Apple watch
introduction, In Apple Watch for Developers (pp. 19-25). Apress.
Van der Panne, G., van Beers, C., &Kleinknecht, A., 2003, Success and failure of innovation: A
literature review, International Journal of Innovation Management, 7(3), 309–338.