MKT10007 Fundamentals of Marketing: Apple iPhone 7 Marketing Strategy

This report provides a detailed marketing strategy analysis of the Apple iPhone 7, examining the micro and macro environments, competitor landscape, and consumer segmentation. It explores the industry overview, key competitors like Samsung and Google, and the factors influencing Apple's success, including technological advancements, social trends, and supplier relationships. The report identifies the most attractive consumer segments and offers recommendations for further research, such as investing in supplier relationships and focusing on hardware innovation alongside aesthetics. The analysis highlights the iPhone 7's position in the market, its appeal to consumers who value design and practicality, and the need for Apple to continuously innovate to maintain its competitive edge. The report also considers the influence of demographic trends, technological changes, and cultural factors on the iPhone 7's market performance.

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MKT10007 FUNDAMENTALS OF MARKETING
Assignment3: Marketing Strategy
Apple IPhone 7
100990318 – Jessica Cartlidge. 101634918 – Veronika Tashkovska. 101497
- Angus Langford. 101463123 - Jordan McKay. – Nick Cornetta

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Executive Summery
This report is an in depth analysis of the Apple iPhone7 and d
basis for a marketing strategy. The marketplace and influencing factors,
consumer segmentation and segment attractiveness were all explored i
to develop a thorough understanding of the consumers and t
within the market. Using the resultsof this information, it is possible
which areas are required for further study and research.
Withinthe research, this reports presents a number of key f
current state of Apple’s marketing environment. One the key factorsa
Apple has created a loyal and dedicated clientele who focuses o
of customization, design and hardware. Due to Apple being such a d
force within the marketplace, it is unlikely that any other competitor w
to match Apple’s progress in technological advances, and entrepreneurs
Furthermore, the findings clearly demonstrates that the consumer who values
aesthetic, design and practically are the most attractable demographic for A
to target. Finally, this research does acknowledge that Apple could use a
research to find new and innovative strategies that other competitors a
lacking.
It is recommended:
• That Apple fully invests and creates sustainable relationships wit
their suppliers to avoid productivity failures and the sacrifice
qualityparts of the output product.
• It is equally beneficial and important that Apple puts an
hardware innovation as well as the aesthetic appearance of
product. Apple as a business has cemented its self in
consumer as, ‘different’ and, ‘revolutionary.’
Introduction:
We, MKT Marketing Consultants have been contracted by Apple to conduct
prepare a situational analysis of the iPhone7. Withinthis report,w
research and investigate how the current market, the environment (
macro), segmentation, and the attractiveness make the iPhone7 d
the consumer. Synonymously, we shall conclude this report with
recommendations based upon our findings with the intent of improving s
and the marketing effectiveness of the Apple iPhone7.
Due to time constraints we were not able to conduct interviews o
consumers of Apple products, which presents the primary limitation o
research. However, the research and data collected within this report a
available to the public and have referenced.

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Table of Contents
Executive Summary
Table of Contents
Introduction
1. The Marketplace and Influencing Factors
1.1. The Micro-Environment
1.1.1. Industry Overview
1.1.2. The Competitors
1.1.3. Analysis of other Micro-Environment Players
1.2. Macro-Environment
1.2.1. Environmental Factors Influencing the Company
2. Consumer Segmentation
2.1. Explanation of Profile Elements
2.2. Justification of Segment Base
3. Segment Attractiveness
3.1. Size and Growth
3.2 Structural Attractiveness
3.3. Company Objectives and Resources
3.4. Most Attractive Segment
4. Recommendations for Additional Research
4.1 Additional Information
4.2 Primary Information
4.3 Research Design
Recommendations

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Section 1: The Marketplace and Influencing Factors
1.1: The Micro-Environment
1.1.1: Industry Overview
Apple is a US based multinational technology company that produc
variety of technological products, such as the Apple iPhone. Apple i
the leading digital management assets company due to its ability to a
to access an infinite number of songs, applications and games through
and iTunes. (Jeynes, R 2013) Apple provides a range of produc
streaming and sharing services (Apple music), technological produc
the iMacs and MacBook’s to entertainment products like iPads (Apple,
A diagram has been provided below to determine the scope of
which apple operates.
As shown, Apple is involved in the technological industry and i
$233.7billion dollarsin revenue, two thirds of which was generated by t
iPhone. (Bowers, A Et al. 2017) Apple competes in a market
for technological products such as smartphones, computers and entertainment
devices. As we move into technology based world Apple needs to work h
come up with new innovative ideas that have not yet been seen, therefor
necessary for Apple to invest strongly in research to help deliver
developments. (Deloitte, 2017) Apple’s products rely heavily on t
of software’s, which sets them apart from other competitors in the industr
as Samsung Electronics. Apple also uses uniquefeatures such as iMessag
allows for an easier way to message other iPhoneusers without using p
credit.

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There are several factorshowever which may influence Apple’s Financi
success. For example, uncontrollable political circumstances in c
outsources to, such as Korea, Ireland or China may affect the profit m
these countries or delays in manufacturing may cause distrust from c
(Jeynes, R 2013, pg. 6) Technologicaladvances are another contribu
however Apple invests large amounts of moneyin research to a
remain top of the industry through new innovative ideas. Apple a
heavily on social factors; Apple products are considered luxury items a
remain popular through popularity and consumers having the purchas
to afford them. Apple also relies on the rapid growth of the entertai
industry, music, movies and other social media, as the main use of A
products are social media applications and iTunes.
1.1.2: The Competitors
A higher demand for technology and the ever-increasing developments
created high levels of competition for Apple however, their three biggest
competitors in gross revenue are HP, bringing in $170,655.79 million,
$74, 989.00Million and Blackberry at $2,166.00 Million. Apple sells i
range of products through their 420 retailers worldwide, their online w
and through other retailers. Per Forbes2016 ranking, Apple remains t
one brand in the technology industry, with a brand value of $154.1B
Googlecomes in second with $2.5 Billion. With such a large industr
competing products offer similaralternatives, however the interlocking softwar
of Apple products sets it apart as it offers a completely differen
software than companies like Samsung and Google. A table has b
showing a product comparison of Apple, Google, HP and Samsun

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P Apple HP Google Samsung
Electronics
Brand + Sub-
Brand
The brand is Apple
and the sub-brand
falls under
Smartphones- in
this case the iPhone
7Plus
HP- HP Elite x3 Google – Pixel.
A smartphone
made by
google.
Samsung –
Samsung Galaxy
S7
Brand Positioning In terms of brand
positioning, Apple
is #1 in
smartphone sales.
HP remains one
of apples top
competitors in
terms of revenue,
however is not so
well known in
terms of
popularity of their
products as
Apple.
Although
Google is the
world’s largest
search engine,
their
smartphone
the Pixel is not
very well
known.
When thinking of
smartphones,
Samsung is likely
the second top
brand after Apple
that comes to a
consumer’s mind
when considering
alternatives.
Samsung also
widely advertises
their products;
however, the
recent recall of
the smartphones
make them a
lesser alternative
for customers.
Product
Specifications
iPhone 7Plus
128GB. Colors
come in black, jet
black, silver rose
gold, red.
Sleek design with
5.96" diagonal
edge-to-edge
HD display.
12.3MP
camera with
built in Google
assist.
Unlimited
storage.
Seamless
glass-
aluminum body
5.1” screen.
Sleek curved
front and back
design, fits
perfectly in the
palm of your
hand.
Place Can be bought at
any of apples 420
retail stores as well
as online and
through other
retailers.
Can be bought
off the website as
well as other
large retailers
such as JB Hi-Fi.
Can be bought
off the website
as well as
other large
retailers such
as JB Hi-Fi.
Can be bought off
the website as
well as other
large retailers
such as JB Hi-F
and other
electronic stores.
Price $1,419.00 $1,157.00 $1,100.00 $900
Promotion Promoted through
advertisements as
well as relying
strongly on being
seen as a desired
luxury item.
The HP is
promoted using
television adds
as well as relying
heavily on word
of mouth.
The product is
not heavily
promoted,
however
google uses
television
advertisements
and pop-up
internet ads.
Heavily promoted
through television
as well as
advertisements.
Advantages &
Disadvantages
Relies strongly on
interlocking
technology, although
Although the
technology still
Unlimited
storage is a
The Android
technology steps

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this makes it easier
to sync different
products, can be
seen as a
disadvantage for
those wanting to use
other brands for
certain products as
well.
relies on the
windows store for
app support, the
large screen and
display are the
largest yet seen.
major
advantage of
the Pixel,
however
away from the
interlocking
design of Apple,
however there
have been issues
with the Samsung
galaxy with
demanded a
recall of the item.
Other factors
important to
prospective buyers
Prospective buyers
may look at
specific functions
such as camera
quality, storage,
and display.
Buyers may be
drawn to the fact
that the product
uses windows 10.
Buyers are
interested in
camera quality
as well as the
unlimited
storage. The
display is also
very appealing
which buyers
will notice.
Buyers may be
encouraged to
buy due to the
water resistance
of the phone of
the long battery
life of up to one
day.
Data was current as of 8 th May 2017
Sources; HP.com, Apple.com, madeby.google.com, Samsung.com
(see reference list)
1.1.3 Analysis of other Micro-Environment players.
Suppliers are a crucial part of creating Apple products, Apple relies o
suppliers to operate in an ethical manner and show steady improve
otherwise they risk losing Applesbusiness. Suppliers work with Apple to e
qualityproducts and raw materials are supplied, as well as to e
strain on the environment because of this. Dynacast is a large s
that supplies precision metal components, crucial for the construction of
technological products. If the relationship between Dynacast and Apple b
down production would be temporarily halted and slowed down whilst Apple
found alternative suppliers. Costs may be higher at different companies
therefore apple may end up spending more for similarparts, similarly, q
alternative products may not be equal to Dynacast, lowering the o
of the output product. Dynacast is enrolled in Apple’s SME t
achieve long term success. Apple’s SME program works with low p
suppliers to increase health and safety, environment etc. scores.Through t
program Dynacast went from 63 to 95, one of the largestsupplie
1.2. Macro-Environment.

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1.2.1 Environmental factors influencing the company.
Up or
down.
Why is this trend happening? What does that mean for the current strategy? How
might we change our strategy in order to anticipate
this trend?
Demographic
Total population
rapidly growing.
Up Rapid growth in population is due to
more individuals having children.
- Widening the target market to not
only a few demographics, but a
further range.
- Specifically targeting young teens
and adults, as they are the key
target due to being heavily
influenced by digital media and
technology.
Average family size. Up Average family size is increasing as a
result of factors such as wanting to have
children with a partner, or in general.
- More families, having more children
mean a larger scale of consumers
making families a larger target.
- Families want to keep in contact
therefore the iPhone7+’s features
can enable that for all, especially
through iMessage.
Technological
Changes in our
products.
Up New innovations and further advances
are being made nearly every day to
keep up with the present.
- The iPhone 7+ is a prestige and
elite technological smart phone that
appeals to consumers satisfactory
needs of a technological upgrade,
equating to their need of keeping
up with the present.
- This further creates a wider
selection of consumers, as they will
know Apple releases a new
generation every year thus letting
the consumer knows comfortably
where to purchase the “newest and
best” smartphone.
Disruptive technology Down Due to new advancements to compete
against one another and build profit,
companies continuously try to out do
others.
- This further creates a wider
selection of consumers, as they will
know Apple releases a new
generation every year thus letting
the consumer knows comfortably
where to purchase the “newest and
best” smartphone. Although, other
competitors could be one step
ahead.
Cultural and Social
Sub-cultures Up Subcultures such as teenagers from
generation y and z are increasing
numbers of sales due to their interests in
to technology and digital media.
- Teenagers are a major consumer
when it comes to iPhone’s and their
continuous interests in digital media
and technology makes them an
even bigger target for Apple Inc.
This is a big advantage for
marketing their products.
Component lifestyle. Up News demands are needed as society
continuously changes and new traditions
enter.
- Demands are from consumers and
the general public and if
successfully achieving them, like
Apple did with the iPhone 7+, the
target and consumer interest
widens.

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Section 2: Consumer Segmentation
We decided for the iPhone7 128 GB, that the best segmentation b
loyalty, the profile elements of the consumers in this segment a
of customization, Hardware importance, and importance of style/looks t
consumer.
2.1: Explanation of Profile Elements
Importance of customization refers more specifically to the layout of t
operating system, including widgets, quick settings, and wallpapers. H
Importance refers to the importance of the measurable facts about the p
performance, and the different components used (Processors, Ram, screen
resolution, etc.) Importance of style/looks refers to the importance a c
places on the iPhone7 being a good looking, and stylish phone.
2.2: Justification of Segment Base
The first step in justifying the segments is the acid test, this r
that “each personshould only be able to go into only one segment.” (
2017)In the case of brand loyalty, we decided that Apple’s p
fall into one of three groupsonly, and they are loyal to the brand, s
between different brands, and currently loyal to other brands.
The second part of justifying the segmentation base we selected i
the segmentation base is: Measurable, accessible, substantial, actionable, and
differentiable.
The segmentation of brand loyaltyis quite measurable, simple sales figures, a
consumer surveys can assess the size of the segments.
The segments can be accessed through targeted marketing, for e
brand switcher segment which we have profiled as considering hardwa
very important can be targeted with ad campaigns that promote t
specifications of the phone.
The segment is substantial, because consumers in the smartphone m
likely loyal to, apple, or other brands, and if they are not brand l
will switch brands based on which is best.
The segments are substantial because products can be marketed t
example Apple can highlight specific hardware features for brand s
customization for other brand loyal consumers.
The segments are lastly differentiable, this is because each segmen
identified will respond to different aspects of the product, f
Brand loyalty Importance of
customization
Hardware
importance
Importance of style/looks
iPhone Loyal Low Low High
Brand Switcher Medium High Medium
Other Brand
Loyal
High Medium Low

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loyal customers will respond positively to a stylish phone, whereas b
loyal consumers will respond positively to customization of the u
Section 3: Segment Attractiveness.
Section 3 Segment Attractiveness Table – The two symbols i
Objectives and Resources” cell refer to the Brand (Apple) and Sub-Br
(iPhone 7+).
3.1. Size and Growth.
Phones specifically smartphones nowadays are frequently used; therefore “
Frequency Users” are reasonably medium in size as a phone is a
contributing product within this society. Low frequency users are not r
entirely as in a rare case some do decide to purchase a s
business or work use, therefore placing them in the “low frequen
segment. Apple is a prestige brand in which many use, therefore s
largelyin the “high and maximum” segment as they exclusive due t
features, high demand and high price.
3.2. Structural Attractiveness.
The smart phone market is major, as many brands and competitors c
it, also each targeting different segments and because of this t
differ greatlyin structural attractiveness. Apple faces big and tight challeng
with its rival and competitor, Samsung, as both are the top prestige
branding of smartphones. They keep up with the competition by being a
competitor’s progress and keeping personal with their products as s
“Machine learning is making our products and services smarter
and even more personal” (Tim Cook, 2016).
3.3 Company Objectives and Resources.
“We believe that we are on the face of the earth to make great p
constantly focusing on innovating. We believe in the simple not the complex. W
and control the primary technologies behind the products that we make, and participate
we can make a significant contribution. We believe in saying no to t
focus on the few that are truly important and meaningful to us. W
pollination of our groups, which allow us to innovate in a way that o
for anything less than excellence in every group in the company,and we h
we’re wrong and the courage to change. And I think regardless of who i
embedded in this company that Apple will do extremely well.” (Tim Cook, 2
In summary, Apple’s objectives for their products, specifically the i
refine and create a better affordable and accessible version in order f
consumers to have an enjoyable experience and utilize their phones a
they can. We can come to the conclusion that the least attractive s
SEGMENTS
(Use Frequency)
Size and Growth Structural Attractiveness Company Objectives and Resources
Low Medium Some Competitors X X
Moderate Medium Many Competitors ✓X
High Large Many Competitors ✓✓
Maximum Large Some Competitors ✓✓

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low segment because if the consumer liked an experience with a
would then be on their phone more, which in this case is not the s
In relation to the company’s objectives and resources the “
are both fitting for the brand and sub-brand as these users utilize a p
phone more often making the iPhone7+ an ideal compromise for either t
current phone or a brand new smart phone as it’s features can c
consumers needs. Apple’s iPhone7+ is fitting for the high and maximu
segments as their budgetallows them to perform in those areas and b
their brand is much more prestige and exclusive, then brands like “
would target the “moderate” segment.
3.4. Most Attractive Segment
Generally, the greatest and most comfortable segment for Apple Inc. t
the “High Use Frequency” as the company is comparatively large i
them bigger and better opportunities aligning well with their sub-brand’s pricing
and features. The objectives and resources allow also flatter towards
demographics.
Section 4: Recommendations for Additional Research
4.1 Additional Information
What we as a group would like to identify is the influences t
would be exposed to by other competing companies in the smart p
and why they would choosethe ever popular IPhone over an android
To gather this information, we would need find out customers/consumers w
react to certain factorsof an authorized dealer and/or a 3rd p
buyinga 2nd hand IPhone from eBay/Facebook.
• Would customer prefer to pay for a new or 2nd hand Smart p
• What hardware/additions would customers find useful?
• Would the high price of a 128gb IPhone 7 deter the custome
The reasons that we require this information is so we can d
IPhone from other competing Android phones and uses, to increase
of sales to consumers and therefore increasing the market value a
recognition of the apple IPhone product.
4.2 Primary Information
SEGMENTS
(Use Frequency)
Size and Growth Structural Attractiveness Company Objectives and Resources
Low Medium Some Competitors X X
Moderate Medium Many Competitors ✓X
High Large Many Competitors ✓✓
Maximum Large Some Competitors ✓✓

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One of the most beneficial ways of gathering information for smart p
would be online survey that are advertised through the smart phones. T
would benefit all companies across the Smart Phone Brand as survey compan
could then sell this information. Allowing Apple and other companies to f
there efforts on certain features that smart phone uses want and/or r
their personal phone. “It is applied to a product which is t
determine customer requirements and expectations”. (Campbell, 2016)
The information gathered by marketers would help in making large c
decisions on where the Apple product would like to focus on, as s
2 Apple loyal consumers largelyfocus on the looks and style of their s
phone. This would then focus the company on the style of the IPhone
what apples loyal customers prefer.
Online Surveys can be used as vital information to a company a
amounts of data i.e. size of the phone screen or qualityof the c
short period of time. These can provide quick numerical data for the c
However, online surveys can give misleading information to companies
especially if the surveyor is an Apple loyal customer, as the r
toward other competing companies if the consumer is uneducated i
This disadvantage leads to less qualitive data. As Apple is a global c
Online surveys would be looking for more quantitative data, this would a
Apple to focus on the majority resultsof the surveys and create a
the loyal consumers are wanting.
4.3 Research design
A good research design as I mentioned before would be an online s
created by the apple company itself. It could be used to gather s
data from apple uses. “Since it is difficult to target demographics d
website traffic only apple should be given or created the survey” (
This Surveyshould be designed to understand the consumer’s views on t
current apple IPhone 7 128gb and what current consumers want o
succeeding Apple company.
Conclusion:
In conclusion, it is clear the Apple operates a successful b
competitive industry that is forced to develop innovative technology a
Apple provides sustainable and desirable products to the consumer t
competitors just cannotmatch.
Apple relies heavily on technological advancements of file sharing a
interlocking software between devices, as well as the justification o
shareholders investing back into the company to research and develop
ideas.
The report has segmented Apple’s consumer demographic by use o
loyalty, and how customization, hardware and style are the most a
factorsthat contributes to the consumer’s decision-making process.
Finally, the report demonstrates the most appropriate way of identifying a

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gathering information of Apple consumers in the most time efficient m
These findings all contribute an overallunderstanding of Apple and h
have established their marketing environment, which serves as a foundation f
the development of future marketing plans.
Recommendations:
To further demonstrate the accuracies of our research, some of t
recommendations based on our research include:
• That Apple finds a solution to the uncontrollable political
in the countries Apple outsources too.
• That Apple potentially lowers the cost of the iPhoneto make it
accessible to a wider market, simultaneously moving, ‘more
gaining more revenue.
• Further research into technological advances can elevate
into a new marketplace making it even more difficult for
match.
• The dedicated and loyal consumers of Apple are their most valuabl
assets. Apple could potentially make a product that caters to, ‘dedica
consumer’s every want and need therefore further increasing popula
within the market place.

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