Strategic Marketing Report: Analyzing Apple Inc. - MKT474 Project

This report provides a detailed strategic marketing analysis of Apple Inc., covering various aspects of its business operations. The paper begins with an executive summary outlining the key objectives and findings, followed by an introduction to marketing strategy and its importance. It then delves into a company selection summary, focusing on Apple Inc.'s history, products, market presence, and subsidiaries. A situation analysis is conducted, including a SWOT analysis that identifies Apple's strengths (brand image, profit margins, product portfolio, innovation), weaknesses (premium pricing, targeted demographic), opportunities, and threats. The report further explores Apple's marketing, production, financial, human resources, and functional goals and objectives, aligning them with the company's five-year plan. Marketing strategies are discussed, followed by an overview of marketing implementation and evaluation and control measures. The report concludes with a summary of the key findings and recommendations, supported by a comprehensive list of references. This analysis provides insights into Apple's strategic marketing approach and its efforts to maintain and improve its market position.

Running head: STRATEGIC MARKETING
STRATEGIC MARKETING
Name of the Student
Name of the University
Authors note

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Table of Contents
Executive summary........................................................................................................3
Introduction....................................................................................................................4
Discussion......................................................................................................................5
Unit 1..........................................................................................................................5
Company Selection Summary................................................................................5
Unit 3..........................................................................................................................7
Situation Analysis..................................................................................................7
SWOT Analysis.....................................................................................................8
Unit 5........................................................................................................................12
Marketing Goals...................................................................................................12
Marketing Objectives...........................................................................................12
Production Goals..................................................................................................13
Production Objectives..........................................................................................13
Financial Goals.....................................................................................................13
Financial Objectives.............................................................................................13
Human Resources Goals......................................................................................14
Objectives.............................................................................................................14
Other functional Goals.........................................................................................15
Objectives.............................................................................................................15
Marketing Strategies............................................................................................15
Unit 5........................................................................................................................16

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Marketing implementation...................................................................................16
Evaluation and control.........................................................................................18
Conclusion....................................................................................................................19
References....................................................................................................................21

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Executive summary
The chief objective of this paper is to understand the theory of the strategic marketing of
Apple Inc. In the present situation, Apple is focusing on consumer demands, and it is trying
to improve its stability and performance. Apple is targeting different segments of people,
such as corporate people, students, professionals, and entrepreneurs. Apple Inc. is facing
different situations in the global world, and these situations are affecting the business of the
company. Competitors are trying to take over the business of Apple Inc. as it is the number 1
mobile and tech brand in the global market. Some competitors are getting success by copying
the marketing strategy and policies of Apple Inc. The following section of this article will
elaborate on some strengths and opportunities which should be maintained and implemented.
It has some weaknesses and threats which should be cleared as soon as possible. Apple has
considered some marketing, production, financial, H.R., and functional goals and objectives.
These goals and objectives are identified after analyzing the next five years' plan of Apple
Inc. The marketing strategy of Apple Inc. has been explained by using a flow chart, and the
company has implemented different strategies to apply some actions within a targeted period.
Apple Inc. has followed some measurements to control marketing strategies and efforts.

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Introduction
Marketing strategy includes everything from the design of the product to advertising
that product to consumers. This can be defined as the strategies which are fruitful in
understanding the consumer's wants and needs and providing them with a satisfying
experience and befitting from it. There is a mutually beneficial exchange between the
provider and the consumer in this current age, where the world has been reduced to merely an
internet connection. This provides the consumers and the businesses to create and implement
the strategies for their business as they deem necessary(Morgan et al., 2019).
One of the critical factors in marketing strategy is understanding the changing market
and their response to evolving challenges, prompting carefully designing ideas that lead to
efficient business running. Certain things that should be in mind while creating a marketing
strategy for the business has to be, understanding the consumer, changing market preferences,
realizing the competition. There are three main marketing strategies that companies employ
1. Product marketing
2. Research-based marketing
3. Costumer lead marketing
Planned and careful marketing strategies can lead to good financial success for the
business. Having a well developed and well-researched market source has lead to superior
market performance. Before employing the strategy, a company should consider a few things,
like launching their business in a marketplace where they will flourish and have an
advantage, understanding the customers, and being flexible in their strategic planning.
Despite the common notion, the marketing of the business involves every employee of the
company. Implementing the current marketing strategy consists of planning the laid out
resources and distinguishing factors that will lead to a constructive approach. The common

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questions that an organization should be asking is where do they see their company shortly
and how much of the goals are they currently achieving. Some strategies are implied due to
their massive effectiveness in presenting a forum to the consumer(Liu, Zhai, & Chen, 2019).
The first and foremost rule for a marketing strategy is studying the consumer and making
them the focal point if they fail to realize this, they will incur heavy losses in business. A
good management strategy should define the primary purpose of marketing. The strategy
should include a basic plan of action considering the actual resources of the company, which
include the strengths, weaknesses, opportunities, and threats. At the implementation level, a
strategy that can be feasibly practiced should be chosen. Financial literacy should also be
kept in mind products that can make revenue or are promising in the sense that they can
generate revenue for the company shortly. When creating the marketing strategy, certain
things should be kept in mind, like improving efficiency, which can lead to performance
stability. The globalization of markets has given away to put forward an opportunity to
achieve a considerable success rate. Marketing strategies in the modern cooperation world
has played a vital role in keeping the company up to date.
Discussion
Unit 1
Company Selection Summary
Apple Inc is one of the leading international companies in the world, with an
estimated yearly revenue of about 260 billion dollars. Apple was founded in 1976 by Steve
Jobs, Steve Wozniak, and Ronald Wayne and is based in 1 apple parkway, California, USA.
In 1977 they decided to rename Apple; it went from being Apple comp. Inc to just Apple Inc.
Apple started by just building computers and later branched into making consumer-based
products. The first decade after the creation of the company, its growth stalled by only

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earning around 774000 annually. In the 1980s, however, the companies earnings skyrocketed
after the introduction of Apple 2. It saw in the steady increase in popularity and revenue and
became one of the fastest-growing companies in U.S. history. In 1980, Apple went public,
and its first most significant market success came during the 1984 super bowl commercial
about Macintosh(Arocha, 2017).
Apple now markets various products, not just computers. The products it makes and
maintains include a wide range from Mac Books, iPad, iPod, iPhones based on ios, apples'
operating system. Other product lines include apple T.V., apple watch, and home pod. Apple
boasts a healthy 1.3 billion active devices worldwide. Their most sold products these days are
apple's smartphones called I phone. The newest line being iPhone 11, iPhone 11 pro and
iPhone pro max. The company recently released its first wireless headphones known as air
pods, which have quickly become a consumer favorite. To go along with most of Apple's
devices, they ship their assistant name, Siri. Apple subsidiaries include apple energy LLC,
apple sales international, apple services, worldwide apple video, an obit, Reddit, Braeburn
capital beats electronics, and Claris.
Apart from hardware, Apple provides a plethora of services to its consumers from
these devices. Since Apple products ship with their version of closed source operating
systems, they can market digital market places for digital media such as apps, books, movies,
movies, etc. The sales from selling such services make a huge percentage of their revenue.
They have many services targeted toward different types of consumers, and they have an app
store where one can download and buy movies, books, etc. Apple Music is a subscription
bases service that allows streaming all the songs present in Apple's libraries; iCloud is
another service that helps to store the data in the cloud. I care about a service that helps with
hardware repairs and troubleshooting(Mogensen, 2018)

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The company's target audiences are mainly consumers, but Apple also makes
products that will suit the needs of various businesses and enterprises. It primarily sells
through its retail stores and online stores. Various logistical services and product
manufacturing are provided by outsources, many of which are mainly located in Asia(Yoffie
& Baldwin, 2018).
Unit 3
Situation Analysis
Apple's most vivid development and involvement in current technology are the
iPhone. Although Apple is a relatively new addition to the cell phone market, it has paved the
way for mobile manufacturers worldwide. Companies like Samsung, L.G., and Nokia have
followed in Apple's footsteps, after its unprecedented success(Soh & Najihah, 2019).
A situation analysis of any given company entails the accumulated analysis of the
environmental factors and internal factors affecting the business at any given moment. Every
corporation carries out a situation analysis to gauge their position in regards to its competition
and to make plans and strategies(Panico & Cennamo, 2015).
One way of carrying out a situation analysis is by a SWOT matrix or SWOT analysis.
SWOT is an acronym for Strength, Weaknesses, Opportunities, and Threats to a business.
Strengths and weaknesses represent the internal factors that are influencing business
opportunities, and threats represent the external factor affecting a trade; thus, a SWOT
analysis is the accumulation of internal and external strategic elements of a particular
business.
Apple is an enormous corporation with many departments working in tandem to
achieve their separate goals. With so many departments, the executives need to keep making
future strategies that best employ their resources, and that guarantees a profit on their sales.

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SWOT Analysis
Strengths
Apple has many strengths that have been the cause of their humongous success. Some
of which will be discussed here. One of Apple's biggest strength is its brand image and brand
recognition. Anywhere in this world, Apple's products are instantly recognizable. Customers
have come to expect a certain quality of product from Apple solely based on their brand
image. Any customer who buys an Apple product is already aware of what kind of experience
they will be getting and what to expect. This leads to repeat customers for Apple. This has
prompted Apple to get an edge over its competitors as repeat, and new customers feel
comfortable with what they are getting. Due to this, Apple's market share in the U.S. is the
fourth quarter of 2019 has increased to 49%, far above any of its competitors.
Another necessary strength of Apple is its high-profit margins. As of December 2019,
Apple has the highest profit margin out of all its competitors, and Apple has been able to do
this on the strength discussed earlier 'brand image.' Apple has created a demand that the
consumers are eager to pay high values for Apple's products. Realizing this, Apple was able
to increase its prices far above its competitors and increase its profits. As of December 2019,
Apple's net profit margin was 24.22%. This high profit has led Apple to become the single
largest smartphone company in the entire world, beating behemoths like Samsung and
Huawei(Khan, Alam & Alam, 2015).
Another strength of Apple is a carefully planned, compact product portfolio. In
contrast, Apple's main competitor Samsung has a comprehensive product portfolio releasing
many different types of smartphones in a single year. Apple focuses on an only smartphone at
a time. This has allowed Apple to create approximately 10-15 smartphones during its
existence; This is an essential factor as this helps the customer to better decide on what

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product they should get. With giving fewer options, Apple has reduced the decision making
time and effort at the consumer's end. Samsung, on the other hand, has a wide variety of
products and can be daunting for a new customer to choose from. Still, Apple has eliminated
this problem by focusing on one product at a time and giving it the best possible features
available at the time.
The most important of Apple's strengths is a useful innovation process. By building
each component at a product in house, Apple has relied very little on outsourcing. This has
allowed them to create better and better and innovative processes through which to improve
their products. Other competitors rely heavily on outsourcing their components and cannot
come close to Apple in this regard.
Weaknesses
Apple products are targeted to a specific demographic. People who are able and
willing to pay premium prices for a product that performs as well as its low price
counterparts. Apple has targeted a high-income brand-conscious demographic. This has led
Apple to miss out on parts of the market where its competitors dominate. Such as middle
class and working-class people. Samsung and other smartphone companies made products
specifically tailored and priced explicitly for the middle and working-class people and have
dominated that segment of the market. Apple is only able to maintain such high profits due to
its premium pricing, not sale quantities. Apple competitors are leading sale quantities in the
market. If Apple were to target different demographics, it would genuinely reach its full
potential earnings.
The high selling prices of Apple products have prevented new customers. Even if a
customer likes and wants an apple product, he is immediately deterred by seeing the prices.
This may very well affect apple in the long run. High selling prices have also begun to

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prevent repeat customers. This may indicate the beginning of the fall of apple as the largest
smartphone brand out there today.
The way Apple has chosen to distribute its product is not unique but is very limiting
to apple growth as a whole. Apple only sells its products at its stores and refuses to let other
third party retailers sell its products. This severely affects their sales as consumers who meant
to buy apple products cannot buy them due to not having an apple store in their area.
Allowing other retailers to sell their products will let apple;e to increase their sales revenue
drastically, and they can keep dominating the smartphone market for a long time(Yee
&Yazdanifard, 2015).
Opportunities
Despite having these weaknesses, apple has many opportunities heading its way in the
years to come. Smartphones and especially apple smartphones, one seen a rise in demand in
recent years due to people's reliance on technology. This could be an indicator for apple to
increase their sale volume and put more and more products out for sale to cash in on this
boom period of technology not only will it increase apples overall profits but apple may be
able to secure even more at the market share in the coming years. An increase in production
will also lead to apple achieving economies at scale and reduce their production cost, further
increasing apple profits.
As the world is experiencing a technological boom period with new and innovative
gadgets and technology being produced daily, Apple can also start to increase its product
portfolio. Getting into a new market and manufacturing new products for different
demographics. This will give apple a variety it did not have before. It was attracting new
customers to apple as it can be seen from the successful transition of apple into the world of
streaming with its platform Apple T.V. As stated before, Apple has a limited distribution

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network. This could change in the coming year if apple were to increase and expand its
distribution network more of apple products will be available to move customers. Apple
could very well maximize its profits to extremes and grow exponentially. By reaching more
customers, apple will increase its brand image as a whole.
Threat
Any corporation operating in any market has to face specific threats while conducting
its business. Apple is no different. The increasing amount of imitated and copy cat produces
are ending up in consumer's hands. These products are of low quality and nowhere near the
standards set by apple. If the customers have a terrible experience with these knock offs, they
will blame apple. This could seriously hurt the Apple brand image, which is synonymous
with quality. If more people were to buy these imitations believing it to be apple products,
then Apple's brand image on which apple relies very heavily to set premium prices could go
to an all-time low. Apple would not be able to charge high rates or keep high-profit margins.
Apple has factories and manufacturing plants in many countries, but in recent years labor
costs in many countries have increased due to inflation; this will most likely increase apple
overhead costs. Decreasing the profit margin of apple and may even force apple to increase
prices further to maintain market share. This may not sit well with the consumers. Raising
overhead costs is a severe threat to apple and can be considered a lynchpin, which may lead
to disaster for apple.
The biggest threat faced by apple today is its competitors. Samsung and Huawei have
started to grow at a rapid speed giving more and more market share with each year. With
their affordable and reasonable quality products, they are stealing away Apples customers
and decreasing Apple sales. This has shown a negative impact on Apple's profitability. If this