Apple Inc.’s Marketing Plan: Situational Analysis and Marketing Strategies

General Description of Apple Inc. Company and Its Products

Apple Inc. The company is an international technology firm that operates in the consumer service industry. The business organization was founded in 1976 by Steve Jobs, Ronald Wayne, and Steve Wozniak. During the time, it was to sell Wozniak’s Apple 1 personal computers, after which both Jobs and Wozniak incorporated the firm as Apple Computer Inc. in 1977.

As a technology enterprise, Apple specializes in software, online services, and consumer electronics. The corporation has its headquarters in Cupertino, California, in the US. Compared to other technology companies worldwide, Apple has the most considerable market capitalization. In the US, Apple is among the first five American information technology firms, including Amazon, Meta, Microsoft, and Alphabet.

In the industry, Apple has five key lines of production that deliver products and services to its consumers. They include iPhone, Mac, Services, iPad, Wearables, Home, and Accessories. These are the most profitable lines of business that Apple undertakes.

iPhone

iPhone is the main product manufactured and sold by Apple Inc. Company in the sector. The item is currently among the most popular smartphones across the globe. The product demand has been stable over the years, and upon the release of the iPhone 13, it further increased (Teppati Losè et al., 2022). Even though COVID-19 affected the industry in 2021, the corporation still managed to report an increase in revenue from the sales of the iPhone 13. Currently, it is facing a significant slowdown from its key manufacturing partners and a high level of competition in the global smartphone market.

Mac

The Mac line of production encompasses Apple personal computers, including iMac desktop computers and MacBook laptops. The Mac unit has generated significant revenue for the firm in recent years. However, due to the reduction in demand for personal computers, the contribution of the Mac to Apple’s overall growth has declined.

iPad

The company began producing iPads in 2010, and it has remained proactive and dominated the market. During its launch, the firm made significant sales in the first months.

Services

The service business is critical for Apple and is led by Apple Music and the App Store. The organization receives more income from iCloud storage services, Apple Pay, AppleCare Warranties, and AppleCare. It also obtains revenue from subscriptions such as Apple Arcade, Apple Card, Apple Music, and Apple TV+. The segment has managed to yield more profit for the company.

Wearables, Home, and Accessories

The Wearables, Home, and Accessories business unit encompass items such as Apple Watch, AirPods, and HomePods. The devices have been selling effectively in the market, thus producing more revenue for the firm.

Apple’s business strategy of having various active segments has minimized the impact of losses. For instance, if one line of products performs poorly, the corporation still profits from other products. Among the business units, the iPhone segment is the key driver of Apple’s business growth, share price, and profits in general. The technique enables Apple to remain relevant and competitive in the consumer service industry.

Situational Analysis

Apple Inc.’s Company SWOT Analysis

The SWOT analysis framework will focus on Apple’s business operations. The approach will explore the internal factors that have the potential to influence the performance of the various segments in the industry. SWOT will enable the management to identify the company’s position in the market and depict areas where the vulnerable business can improve to grow effectively.

Apple’s Strengths

Valuable Brand in the Market

Over the years, Apple’s products have dominated the market and significantly attracted consumers’ attention. It has been ranked in the technology industry for over nine consecutive years. The company has a brand value of approximately $400 billion and is followed closely by its competitor Amazon (Guttmann, 2020). This aspect gives Apple an advantage over its rivals in the sector.

Top Technology

Apple is the first company to introduce most of the most fascinating technological products in the world. For instance, it produced iPhones, AirPods, and iPads that are being used by the majority of consumers across the globe. Despite the presence of its innovative products in the market, Apple is still committed and determined to develop a more proficient device to better customers’ experience.

Global Presence

The Apple Company has established its presence in many countries across the world. The business organization is considered one of the most reliable firms in manufacturing more personalized, advanced devices. The corporation’s products have become iconic, especially its computers and smart technology items. This has made the enterprise attract millions of consumers from different parts of the globe who are loyal to the firm’s products.

Brand of Choice

The ability of Apple to offer quality technology has made the company’s products a favorable choice to most corporate organizations and creative individuals. In most cases, to enhance efficiency and reliability, professionals prefer using items that guarantee them such features. Apple products such as the iMacs or Mac Pro are effective in animation, visual design, and the production of video. The aspect of high-performing technologies influences people to buy the devices.

Services Expansion

Over the past years, the business organization has progressively expanded its services portfolio. The approach has enabled the corporation to raise its sources of revenue as well as increase its overall revenue growth. Based on the firm’s annual report, in the year 2021, the enterprise realized a significant increment in its profit from the service segment. The performance divided is the second contributor to the company’s return after the iPhone unit (Liébana-Cabanillas et al., 2020). Currently, some of the services the firm offers to its clients include payment services, streaming services, AppleCare, iCloud, and Apple News+.

Effective Research and Development

Apple brands are well known for their quality and high-performance efficiency. The company is determined to make products that are well-designed to meet the needs of users. The firm usually conducts extensive research to enable it to properly understand the market trends and client demands. The approach then makes it easier to develop the right devices that serve and provide an effective solution to the consumers. The business organization spends a significant amount of its annual revenue to facilitate research and development. The investment aims to enhance its overall growth and expand its competitive edge in the market.

Availability of Liam Technology

The Apple Company is using a unique technology known as Liam. The high-tech is an iPhone recycling robot that enables the manufacturer to completely break down the device. The technique allows the firm to access some crucial parts of the iPhone that can be reused to make new ones. In other words, the technology is aimed at producing reusable fragments (Vonk, 2018). The procedure is essential in facilitating sustainability because most products are made applicable for further production.

Apple’s Weaknesses

High Cost of Apple Products

Generally, Apple’s devices are charged high prices, making them regarded as luxury items. The premium prices make the high-tech only affordable to high-income earners. In other words, low-income consumers do not have the ability to purchase the items. This makes the company’s commodities accessible only to high—or middle-class individuals.

Tracking Allegations

There are several cases where Apple Company has been accused of using tracking applications in their smartphones to identify the exact location of the phone user. The allegation has made the majority of people lose trust in enterprise devices. However, the current version of the firm’s handsets permits consumers to accept or decline the tracking, and the level of loyalty that has been lost previously still affects the business’s reputation.

Incompatibility

Generally, Apple products are not compatible with other software in the market. It implies that once a client purchases the device, they are unable to connect their items with those that are from other producers. Therefore, it prompts consumers to use the company’s services exclusively to continue enjoying them. In other words, the user is forced to live in an Apple world whereby they cannot experience other unique technologies in the industry apart from the ones offered by the business organization.

Limited Product Promotions

Over the years, Apple has significantly established loyal clients despite its limited advertisements. The business organization solely depends on iconic retail stores to market its products and services. The corporation’s success in the market has reduced its need to improve advertising approaches. Therefore, the firm has managed to lower advertisement expenditure as compared to most of its competitors in the industry. Even though Apple brands are common, failure to promote its products limits the awareness of new devices launched into the market.

The Accusation of Unfair Business Practices

There is a pending investigation to unveil the search engine deal between the company and Google. The business organization has been accused of engaging in unethical competition by trying to make Google’s search engine the default one for the Safari web browser. This approach is intended to make it challenging for potential competitors to venture into and expand their operations in the sector (Geradin & Katsifis, 2021). The collusion thus makes Apple seen as a company that embraces unfair practices in the industry.

Venturing into Segments of Non-Competency

Apple’s business organization has established its operations in a segment where it might not have the required competency to compete with existing companies. For instance, the corporation currently offers streaming, payment services, and video content streaming. The services strategic business unit makes the enterprise face competent providers, including PayPal, Disney, and Netflix. The approach might be a recipe for its failure, supposing that the management does not succeed in meeting the demands of the sector.

Analysis of Apple’s Strategic Business Unit Using the General Electric Model

Since Apple has several business segments that generate significant income, the management team must understand units that are more viable and worth further investment. In order to gain proper insight, the analysis will use the General Electric Model (GEM) framework, which assesses market attractiveness and links it with the business position. Using GEM, Apple will be able to effectively evaluate the overall strength of its strategic business unit by mapping the brands and services in the technology attractiveness.

The GEM matrix generalizes the axes of Industry Attractiveness’ Y’ and Business Unit Strength’ X.’ The framework contains nine cells that enable the screening of the extensive portfolio. In the GEM matrix, the two variables are quantified in terms of strong, medium, and weak.

The results are given in three key processes that are:

1. The Invest / Grow condition
2. The Selective / Earnings situation
3. Harvest / Divest scenario.

Generally, based on the above categories, when the situation is strong and has high industry attractiveness, then Apple should secure the position that requires investment to enhance its growth. During the process, the firm should focus on remaining proactive in the market. However, when the strength of the business unit or the industry attractiveness is medium, then the corporation must manage its earnings to enable it to safeguard the already existing project. In such a situation, the enterprise should consider investing in areas that are more likely to generate considerable profits and have a low level of risk. Lastly, when the market is saturated and the level of competition has increased, causing a significant drop in income, the sector is considered weak, and thus, the company should reduce further investments and, at the same time, lower fixed costs.

The Apple portfolio consists of four central strategic business units, namely:

1. iPhone
2. Mac
3. Services
4. Wearables, Homes, and Accessories.

Accessing Industry Attractiveness

The general technology industry is currently growing at a significant rate. This makes the sector suitable for investment opportunities. There are limited numbers of well-established competitors in the market. The facet reduces the stiff competition that can lower the company’s general revenue. It is not easier for new firms to join the industry following the demanding initial capital. The profitability of the industry is high, which guarantees a significant return.

However, substitute products allow consumers to choose from different firms depending on customers’ tastes and preferences.

Table 1: GEM Matrix

Invest / Growth for Apple Company

This is the best segment in which a business unit should be. The technology industry is strongly attractive, and Apple Inc. The company has a highly competitive edge in the sector. The combination gives the enterprise a significant chance to grow and expand its operations. Apple has adequate resources and necessary assets to facilitate its investment in the industry.

The growth/investment section of the GEM matrix encompasses protecting position and investing to build and manage selectively. Based on Apple’s portfolio, the iPhone and Mac should be categorized under this segment because they have approximately 52% market share in the industry. Similarly, over the past year, the company has earned significant profits from the two units and has further remained competitive in the market. These aspects make it necessary for Apple to invest intensively in iPhone and Mac products.

Selectively/Manage Earn for Apple Company

The selective earn division entails merging, protecting, and refocusing. Apple has a highly competitive position; however, the industry is less attractive. For instance, the firm’s iPad is high-performing and has a significant market share of about 31% in the tablet segment, implying the business’s notable strength. While comparing Apple’s position with the current global tablet market, the sector has decreased significantly. Furthermore, the service segment, which encompasses payment services, Apple TV+, and subscriptions, has a proper market position while the sector is declining and has extreme competition from other well-established business organizations such as Amazon and Netflix.

Harvest/Divest for Apple Company

The harvest sector is focused on managing to facilitate earnings and divest due to limited opportunity for expansion. The business segment is considered to have an ineffective competitive position in the market. In other words, they are not promising and the company should not channel resources to them. Apple’s wearables, Home, and Accessories can be placed under this segment. Most of the Apple’s products including the iPod Classic, iPod touch, and Nano were launched but did not stay for long on the shelves.

Apple’s External Environmental Analysis

External environmental analysis is a valuable approach that will enable Apple’s management team to have deep insight into outside forces that might impact the overall performance of the business organization. Through the assessment, Apple will be able to adapt to changes in the industry to facilitate its productivity. Key areas of concern include socio-economic, legal, political, technological, demographic, and natural. By performing a PESTEL analysis, it will be easier to have a broad scope of the critical issues.

Apple’s PESTEL Analysis

Political Aspects Affecting Apple

Being an international technology company, Apple has a large number of its products in many countries across the globe. Some of its services, including the App Store, are accessible in over 170 nations. In other words, the corporation has significantly segmented its market geographically, such as in Europe, the Middle East, Africa, Europe, Latin America, the Caribbean, and Asia-Pacific. The global presence puts the company in danger of facing wide political instabilities. For instance, the current war between Russia and Ukraine is causing the firm to make significant losses in the region. Similarly, some products might not be accepted readily in certain states.

Furthermore, issues such as terrorism and public health problems can potentially damage the overall global economy, thus affecting the entity’s logistics, suppliers, and manufacturing associates. Currently, the tension between China and the US is having a massive impact on Apple’s performance in China’s local market. These political aspects are beyond the firm’s control; thus, it can only try to manage and avoid the possible effects.

Economic Environment Affecting Apple Company

Over the years, China has been consuming a large percentage of Apple’s products; however, recently, the level of consumption has declined to affect the company’s sales of iPhone products. An increase in labor cost is an issue limiting the growth of the firm in the industry. Following the impacts of COVID-19, the business enterprise has experienced a reduction in the sales of high-tech devices. The looming financial recession has the potential to lower the demand for luxury technological items. According to Leswing (2022), business organizations are facing a surge in the cost of supplies and high wages for workers. In addition, due to economic difficulties stimulated by the post-pandemic recoveries, most of Apple’s loyal customers might opt not to upgrade their devices due to the low purchasing power they are experiencing.

Stable economies in developing countries further present Apple company an opportunity to expand its market coverage. The approach will enable the business organization to establish its operations in different areas thus increasing sales. In addition, there is an increasing disposable income amongst consumers making them able to afford Apple products and services in the market.

Social Aspects Affecting Apple Company

The current generation is fascinated with the experience they derive from using high-tech devices, which makes them love the items. This aspect presents the business organization with a viable opportunity to enhance its performance in the market. However, the need to avoid the impact of the screen on people is prompting most consumers to opt for old phones. The sudden change in preference is not favorable for Apple because it will lose significant market share for its products in the industry.

The anti-Apple sentiments, such as revealing users’ locations, are becoming a significant threat to the company’s reputation. Most clients, especially the ones who value privacy, view Apple’s products as spies and thus are not able to purchase them. Instead, they opt for the rival players in the smartphone industry.

Similarly, in previous years, Apple dominated China’s local smartphone market, which attracted the majority of the middle-class and high-income earners to purchase its products. With the advancement in technology, several Chinese technology firms, such as Xiaomi and Huawei, are providing the domestic market with improved devices at a cheaper cost than Apple. The upcoming firms in the technology industry have taken a significant market share of Apple’s products and services.

Technological Aspects Affecting Apple Company

Apple is constantly improving its investment in high-tech devices. The company has designated a portion of its revenue towards researching and developing new products. The advancement has given it a competitive edge in the market, making it one of the firms offering high-performing computers in the industry. The company developed the app economy; however, its move has made it face rivalry from various enterprises in the sector (O’Rourke, A. D. (2018).

Other aspects include the growing need for cloud computing as a viable opportunity to expand its services. Even though Apple provides iCloud services, the company should take advantage of the rising demand to generate more income. Moreover, the enterprise should consider integrating its technological products and services effectively with various business organizations. Such an approach will allow the corporation to establish a strong relationship with most firms, thus making it the key supplier of high-tech devices to the companies.

In the industry, Apple’s competitors are well-developed and have what it takes to duplicate the products and services provided by the company. This makes it easier for consumers to access similar high-tech devices at a relatively cheaper price than what Apple charges.

Environmental Aspects Affecting Apple Company

The environment is a key consideration in the current business operations as the need to protect and preserve has become a key concern for both employees and consumers. The process of making iPhones is complete, and the required materials are obtained through excessive mining practices. Such aspects have made some potential clients reduce the purchase of Apple’s smartphones with a view to saving the planet. For instance, in order to make some of Apple’s devices, the company needs copper, gold, and other earth materials their extraction pollutes the environment.

Legal Factors Affecting Apple Company

Most governments across the globe have heightened the issue of privacy regulations. Therefore, Apple may require expensive compliance requirements to operate in such markets. Besides perceiving the privacy concern as a threat, the business organization can take advantage of the situation and provide adequate measures geared towards promoting the safety of the users.

Moreover, Apple is facing several legal issues and challenges associated with its policy practices. For instance, the company’s policy regarding third-party repair is ambiguous and has called for practical criticism in the industry. Other relevant cases include Apple’s attempt to slow the performance of its old devices to influence consumers to buy new ones. In addition, the French antitrust agency forced the company to pay a lump sum fine following its unfair competition conduct.

Opportunities for Apple Company

Currently, the iPhone market is growing effectively, and the company has the opportunity to continue investing heavily in the segment. The approach will enable Apple to generate more revenue from the sales of smartphones in the industry. Similarly, as digitalization spreads, people will tend to use the Internet and e-commerce services. The aspect further presents the business organization with an overwhelming chance to enhance its production of internet-related products.

In addition, having consistent customer growth is an opportunity for the firm to produce more products and services. Apple Company has managed to offer quality items that give clients a breakthrough experience. This aspect has enabled the firm to retain its consumers at a significant rate. With its adequate resources and technology, Apple has the potential to improve and expand its distribution network. By expanding the distribution channels, the business organization will have the ability to generate more income from sales.

With the high-tech available at the business organization, Apple has the capacity to create and deliver effective self-driving software technology. This approach will enable the company to meet the demand for autonomous cars. It can utilize artificial intelligence (AI) technology to enhance its capacity (Shivaani, 2022). Furthermore, the firm has the potential to expand its services, such as music streaming, following the availability of the youth population, which creates a significant market for growth.

Threats to Apple Company

High dependency on the same suppliers poses a significant threat to the growth and performance of the company. For instance, Apple relies on China for its supply chain and manufacturing activities, which is currently disrupted following the political instability between China and the US. Similarly, the technology industry is facing stiff competition from well-established business organizations such as Samsung, Amazon, Netflix, and Google. To stay active in the market and overcome the impacts of its competitive nature, Apple has been forced to revisit its operational policies, including pricing.

The rate of market penetration by Android products is significantly higher than Apple’s market share. This aspect is caused by the entrance of new brands in the smartphone segment. Companies such as HTC, Lenovo, and Samsung are using Android software to develop mobile phones. In addition, the increasing rate of counterfeit products, especially in the developing and underdeveloped world, is posing a tangible risk to Apple’s high-tech devices. For example, some authorized dealers use the Apple brand to sell counterfeit items to consumers, limiting the company’s sales.

Moreover, the backdoor pressure is making the company face significant risks. Apple iPhones are highly encrypted, and sometimes, government agencies force business organizations to unlock them to access the details of the intended person. Furthermore, the company is facing significant lawsuits, especially after the management opted to degrade the performance of old services. Such conducts have a high likelihood of affecting the corporation’s product resale. In addition, the US authorities have imposed higher charges on products from China, thus increasing costs for Apple, which are more likely to affect its overall profit margin and the prices of the devices as well.

Apple’s Competitive Advantage

In the industry, Apple exploits its competencies and resources to have a competitive advantage. The company can undertake rapid innovation, access essential user information, AI, and an effective global distribution network. In other words, Apple has sustainable resources, thus giving it an added advantage in the market. For instance, the firm’s brand is popular globally, which makes it easier for Apple products to be sold. The brand is rare, difficult to imitate, and has value, and the company’s operation is based on it.

The firm further has an environment of complementary products, which gives it a competitive advantage in the market. In other words, Apple’s items are more likely to promote each other in the market. For example, once a customer has purchased an iPhone, they will have to buy the Apps and other digital products from iTunes. The aspect of complementary products and services makes it challenging for other competitors to lure Apple’s customers to buy their items.

The company has developed an effective international distribution and sales network. Apple has placed its sellers and distributors strategically making it a more streamlined system. Furthermore, the approach allows the business organization to effectively reach the target customers in the market globally. In addition, the company is offering quality and high-performing devices. The ability is due to its AI capability that enables it to provide convenient and effective services.

Apple’s Major Competitors in the Industry

In the technology industry, the core competitors of Apple Company are Google, HP Inc., Microsoft, Amazon, and Samsung. The mentioned firms are well-established and have effective brands in the sector. They offer similar products and services that consumers can choose from.

Google

Since Google launched Android, it has become an effective competitor to Apple’s iPhone. The business organization has managed to have a significant share of the smartphone market. The rivalry between Google and Apple has expanded to OS, app stores, browsers, cloud computing, and email. Currently, the company controls a large segment of the OS.

Microsoft

Microsoft Company was founded in 1975 as a software development firm. The firm competes with Apple Corporation in the devices sector, applications, software, gaming, and marketplaces. The company’s main products include personal computers, smartphones, servers, Microsoft Operating System (OS), video games, and software development tools. In the smartphone sector, the company’s phones have about 2% market share, while its desktop OS has approximately 77% (Holst, 2021). The global presence of Microsoft makes it a significant competitor to Apple.

Amazon

Amazon’s business organization competes with Apple’s indifferent sectors, such as the tablet market, digital streaming services, cloud computing, and other products. The market share of Amazon’s tablet segment is about 5.4% (Statcounter, 2021). The company’s advancement in technology makes it able to manufacture quality products. In addition, its brand has positioned effectively in the market making it attract more consumers. Despite the involvement of Amazon in manufacturing smartphones, the company’s effort does not pose a significant challenge.

Samsung

Samsung is a Korean-based technology firm founded in 1938. It is one of the best manufacturers and a marketer of technology across the globe. The company has its brand in over 70 countries and has more than 30 centers for production. The firm has three key segments, namely IT and mobile, device solutions, and consumer electronics. It poses a significant threat in the smartphone segment, whereby it has approximately 25% market share in the sector (Cain, 2020). It further competes with Apple in almost all aspects, making it a threat to the business organization.

Market Trends and Needs

Currently, the market trend for the technology industry entails smart devices, computing power, datafication, machine learning, digital trust, edge computing, blockchain, the Internet of Things, quantum computing, extended reality, and virtual reality. These are the common needs that companies in the industry must incorporate to stay updated in the sector. By incorporating the abovementioned facets, Apple will enhance its ability to meet the needs of its customers, thus increasing its market share.

Business Mission Statement

A mission statement is an essential aspect of the business organization that enables its employees to comprehend the meaning and purpose of their engagement in the company. In other words, it makes workers see the bigger picture of their activities. Apple’s mission is “to bring the best user experience to its customers through innovative hardware, software, and services.” Based on the statement, the corporation’s main objective is to ensure it manufactures high-performing devices that will efficiently meet and provide solutions to clients. In general, the need to facilitate practical user experience is given priority, and the firm designs its products and services to suit it.

Marketing (Short-Term) Goals and (Long-Term) Objectives

Some of Apple’s short-term goals include increasing customer value, generating qualified leads, creating effective traffic, enhancing brand awareness, and establishing proper brand authority. Furthermore, the corporation aims to increase revenue by 2% in 12 months. Similarly, the firm’s long-term objectives are to improve its market share, especially for the smartphone, by 10% in the next 5 years, launch new variants of the iPhone different from the standard type, and manufacture devices that have high computing abilities.

Financial Goals/Objectives

The company’s financial goal is to manufacture several cheaper smartphones using the 5G technology will enable it to increase the overall market share in the smartphone segment thus increasing the revenue. The company is targeting to improve its market share by 0.5%. In addition, the business organization is planning of adding more products on it selves. The focus is to raise sales to 500,000 units to enable the enterprise to generate high profits.

Selection and Analysis of Market Segments

When marking marketing plans, the process of selecting and analyzing market segments is crucial for business organizations. The selection of the respective segments follows the steps shown below;

1. Identifying prospective consumers and then grouping them based on the variety of products and services they need.
2. Analysis of the consumers by examining their demographic, pattern of usage, and lifestyle. The phase is essential in enabling the team to define the respective market segment.
3. The third phase entails performing due market analysis to establish the potential areas for growth, possible competitions likely to be faced, and other external factors that might affect the operations of the business organization.
4. The fourth procedure encompasses estimating the profitability of the market segment.
5. The fifth process is to undertake positioning activity that entails determining the pricing and other relevant marketing programs that will make the business organization different from its competitors.
6. The sixth step involves exploring various marketing strategies and positioning that will enable the corporation to explore the respective market effectively.

During the selection of the market segments, Apple Corporation should focus on the following bases;

1. The behavior of consumers using variables such as usage rate, loyalty status, benefits sought, and user status. This approach will enable Apple to focus on satisfying the respective group.
2. Demographics: Under this basis, the company must consider the following variables as it makes the decision on how to provide goods and services. The essential parameters are gender, age, marital status, income, race, education, family size, and the era of birth. These aspects will make it easier for the business organization to tailor its products to the needs of specific groups of people. For instance, high-income earners might influence the pricing strategy.
3. Geographic segmentation should be based on the density, climate, region, and city. Using the variables, it becomes easier to have insight into potential markets that are more likely to generate more income for the firm.
4. Psychographic; under this basis, Apple must consider the personality of users and their lifestyle to ensure it provides them with products and services that meet their needs.

When the company effectively identifies the market segment and groups them in the four bases highlighted above, it becomes easier for the business organization to manage resources, including promotion. The approach will ensure the firm specifically tailors its advertisements and products to the target group. The management will thus lower unnecessary expenditures that might not impact the overall growth of the company. Therefore, by further classifying the categories as per the variables, the firm will pay close attention to the differences in the wants of potential customers and hence increase consumers’ experience.

Target Market Strategies

Generally, designing target market strategies is essential in enabling Apple to dedicate its time and available resources to improve sales in the respective group. Various target markets require varied marketing approaches. After establishing the right market, the company will thus be able to position itself based on the composition of the approach applied. In the industry, target market approaches differ significantly and are determined by the targeted sectors. Some of the target market plans that Apple should use are;

Segmenting Marketing

Apple Company should use segmenting marketing strategy because it will allow the business organization to differentiate its consumers effectively in the market. Since Apple products are expensive, targeting high-income earners and middle-class individuals will enable the company to generate more income from increased sales. Furthermore, the corporation will be in a position to meet the needs of its consumers in the market effectively.

Mass Marketing

Since the Apple brand is recognized universally, the company should adopt a mass marketing strategy. The approach will allow the firm to increase its awareness across the globe and attract more customers. By using the technique, Apple will be positioning itself in the minds of clients thus when they tend to purchase technology devices, they will be more likely to consider buying Apple products. Mass marketing will ensure the business organization is known to all people despite their region, demographic, or religion.

Differentiated Marketing Strategy

Apple Inc. should use a differentiated marketing strategy to target various groups of potential users in the market. The approach will require the business organization to develop different promotions based on the specific target audiences. Using the plan, Apple will have the ability to increase its overall market share, leading to an increase in its customer base. Following Apple’s research and development capabilities, the corporation will be able to design products and services that meet the specific needs of the varied markets. Furthermore, Apple has adequate resources; thus, it will be easier for the firm to address the wants of target consumers accordingly.

In order for Apple to remain popular and increase its brand presence in the technology industry, the company should adopt the three target marketing strategies. The approaches will provide Apple will the ability to widen its consumer base and at the same time meet the specific wants of target clients. The approaches will ensure Apple lure customers from its competitors because it will be in a position to address the wants of such consumers hence making them loyal clients in the market.

Positioning

Apple company should position itself in the market based on the technological experience it offers its users. The business organization emphasizes the development of better tech that meets the specified needs of the consumers in the market. The corporation is applying the current technology to minimize the overall impacts of its operations in the market. In addition, it provides services and products that are of high quality and convenience. The company is geared towards ensuring clients receive reliable service that promotes their productivity.

Required Marketing Mix and Strategies

Product Strategy

• Since the Apple brand is popular globally, it should continue using the name and its logo in all types of products it manufactures.
• Furthermore, the business organization should continue investing intensively the research and development to enhance its innovativeness in the market (Najafi-Ghobadi et al., 2021). The approach will ensure it sells superior technology devices having improved qualities.
• The current product features and benefits should not be changed, including lightweight and effective touch screens.
• The business organization should consider adding multiple uses on the upcoming iPhone brands to enhance customers’ experience for example better video, camera, and entertainment.

Price Strategy

• Apple provides its target market with effective and innovative products.
• The brand is superior to most of its competitors’ products in the industry.
• Its products have advanced technology and proper features, making them attractive.
• The company offers users the best services and creates a positive impression on its clients.
• The above aspects qualify Apple to sell the products at a premium price.
• The company should utilize the skimming pricing approach whereby it charges new products higher than with time it lowers their prices.
• In addition, geographical pricing should be applied to enable the firm to charge its products differently depending on the location.

Distribution Strategy

• Apple will use several sales channels to enable it to reach its customers located in different locations across the globe.
• Apple is to continue using the Apple stores in different locations to enhance visibility and effectively display the company’s products.
• The stores should be placed in cities and other specific regions with high traffic to attract more customers.
• Apple will increase its partnership with authorized retailers to facilitate the distribution of its items.
• In addition, Apple should make sure its products can be obtained from wholesalers.
• The company further relies on the services of third-party cellular network providers to sell its services and products to consumers.
• Apple should take advantage of the online platform to issue official websites where consumers can easily access the products.

Promotion Strategy

• Apple should use clear promotion tactics that involve being straight to the point.
• The business organization should use TV, radio, and other platforms.
• The company should invest heavily in social media platforms to advertise its products.
• Apple uses celebrities and sponsors sporting activities to increase its awareness across the industry.

Marketing Research

The company should use the data analytics method to enable it to access adequate information and patterns of consumer consumption in the industry. Through the process, Apple will have proper insight and reliable facts to make the necessary changes for improvement (Fulgoni, 2018). The business organization can access the information from the database marketing. In addition, Apple should conduct research using questionnaires to investigate the effectiveness of their products and areas customers perceive should be improved. The process should be focused on corporate organizations using Apple computers and complementary items.

Budget and Timing

• The program will require the company to use a significant amount of capital.
• Researching and developing new products will need about $ 5 billion in 3 years.
• Marketing the new products and services will cost the company approximately $200 million in 12 months.
• Establishing 150 Apple stores will require $500 million, and it will take 10 months.
• Overall, Apple will require about $5.7 billion and a period of 3 years to undertake the program effectively.

Implementation of the Above Strategies

Generally, strategy implementation is an essential process because it will allow Apple Company to take effective action rather than brainstorm useful ideas. Furthermore, by putting the processes to work, the business organization will enable its employees to comprehend that the objectives are achievable.

• To implement the strategies, Apple will set expectations about what is expected of each party involved in the process.
• The company will develop an effective team and secure the necessary resources to facilitate the processes. For instance, having employees, managers, suppliers, customer service department, and research personnel make part of the team. Resources to include capital needed to fund the product development, promotion, and establishing proper distribution channels.
• The management teams communicate the marketing plan to enable the staff to understand the objectives.
• Building a proper timeline for the respective tasks and breaking the responsibilities into smaller tasks.
• The business organization should develop an effective dashboard to facilitate tracking of the success. For instance, following the sales pattern of iPhones with advanced features after the advertisement.

Monitoring and Evaluation of the Above Strategies

• The company will set the respective goals of each strategy and monitor whether the business organization is making improvements towards it.
• Apple will use indicators such as an increase in sales to evaluate the progress of promotional and pricing plans.
• The company will predetermine the average sales to be achieved through the processes. Apple will apply the inventory turnover ratio to enable it to understand the rate at which the company is replacing new iPhones and other products in the store.
• The organization will then determine whether the performance of the business following the implementation of the strategies meets the predetermined standards. For instance, if the firm speculated sales rise by 5% in six months, after the period, the company will examine the outcome to compare.

Generally, through monitoring the process, the business organization will be able to identify where necessary adjustment is required in order to make the strategies effective.

Control

• Apple will perform output control to measure the results of the program. For instance, measuring the number of iPhones sold per week across the company’s stores. Examining the number of hits the company’s website receives per day.
• The business company will use input control to evaluate and regulate the impacts on the resource. The focus will be to examine the skills, competencies, and values.

Contingency Plan

• The world economy is unpredictable and vulnerable, making Apple’s brand susceptible as well.
• Changes can either be positive or negative for the company.
• When Apple experiences beneficial changes, the business organization will invest heavily in research and development to facilitate the expansion of the products in the market.
• However, if the economy is unfavorable, Apple will diversify and divest some of its operations to lower the impact.

References

Cain, G. (2020). Samsung vs. Apple: Inside the brutal war for smartphone dominance. Web.

Fulgoni, G. M. (2018). How limited data access constrains marketing-mix analytical efforts: Why data barriers are preventing marketers from optimizing marketing spend. Journal of Advertising Research, 58(4), 390-393. Web.

Geradin, D., & Katsifis, D. (2021). The antitrust case against the Apple App Store. Journal of Competition Law & Economics, 17(3), 503-585. Web.

Guttmann, A. (2020). Apple’s global brand value from 2006 to 2020. Web.

Holst, A. (2021). Market share held by the leading personal computer vendors worldwide in 2018. Web.

Liébana-Cabanillas, F., García-Maroto, I., Muñoz-Leiva, F., & Ramos-de-Luna, I. (2020). Mobile payment adoption in the age of digital transformation: The case of Apple Pay. Sustainability, 12(13), 5443. Web.

Najafi-Ghobadi, S., Bagherinejad, J., & Taleizadeh, A. A. (2021). Modeling the diffusion of generation products in the presence of heterogeneous strategic customers for determining optimal marketing-mix strategies. Computers & Industrial Engineering, 160. Web.

O’Rourke, A. D. (2018). The world apple market. Routledge.

Shivaani, M. V. (2022). Comparing Apple to Amazon: Just a matter of words in machine learning world. Journal of Emerging Technologies in Accounting. Web.

Statcounter. (2021). Tablet vendor market share worldwide. Web.

Teppati Losè, L., Spreafico, A., Chiabrando, F., & Giulio Tonolo, F. (2022). Apple LiDAR sensor for 3D surveying: Tests and results in the cultural heritage domain. Remote Sensing, 14(17), 4157. Web.

Vonk, L. (2018). Paying attention to waste: Apple’s circular economy. Continuum, 32(6), 745-757. Web.