Apple Watch Product’s Market Segmentation

The importance of the Apple Watch is undisputed in the global market of smartwatches. The impressive growth of the industry is associated with producers shipping twelve million smartwatches during the second quarter of 2019, which is a 44% increase compared with the second quarter of 2018, as reported by Strategy Analytics. Much of the growth is associated with consumers following the trend of accessorizing with smart devices. Within this market environment, Apple managed to retain its share crown, with the Watch remaining at the forefront of the rest of the products. The only viable competitor of the Apple Watch is the Fitbit, which is suitable for the target segment of customers oriented on fitness.

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Apple has a specific target audience, on the interests of which it focuses in to achieve profitability. The type of segmentation in the case of the Apple Watch is demographic, with customers aged between 20 and 45 being at the center of the targeting. Both males and females are included in the target segment. In terms of the life-cycle stage, potential Apple Watch buyers are at their final years of college, newly-married couples, have a family with children, or have a family with children and grandchildren. It is also expected that these customers are high earners and thus can afford to buy the latest versions of the gadget.

If to analyze the website presenting the Apple Watch, it is imperative to mention that the information is differentiated into distinct segments that will be both appealing and easy to understand. These segments include the variations of the Apple Watch, software, accessories, as well as a compare section for customers to choose between the available models and versions. The Hermes version of the Apple Watch is targeted at customers who care about designer accessories, while the collaboration with Nike is intended for clients that are fitness-oriented. Therefore, the website captures a broad audience depending on their interests, which is essential to consider when marketing a new product. The graphics are clean and simplistic, which is attributed to Apple’s brand aesthetic. The writing style is associated with capturing attention through short slogans. For example, the slogan ‘Stand out. Stand proud’ is used for attracting LGBT+ customers and encourage them to buy a Pride Apple Watch band.

The luxury customer segment is an audience that will be attracted by the design aspect of the Apple Watch, which is why collaborations with such companies as Hermes are necessary to market the product to this population. The Nike collaboration is rather linked with the need to show the fitness benefits of having a smartwatch from Apple. The high variability and custom features that complement the Apple Watch are the most important tools for marketing the product to the target audience. The website is a testament to this – there are no promises that the gadget will be the ‘best thing in the world.’ Instead, the company’s marketers underlined the value of the gadget’s distinct features and the benefits of owning such a watch. As the needs of the audience are transparent: having an accessory that will be both stylish and functional, the emphasis on the variation and different price ranges of the same product makes the Apple Watch one of its kind. If another company wants to compete with Apple in this segment, it is essential to offer customization as one of the key selling points.

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