Apple's marketing plan

Ariella Meyer

APPLE’S MARKETING PLAN

CONTENTS 1

Ariella Meyer

Page 3 – Introduction to Apple’s market plan Page 4 to 5 – SOSTACT Page 6 – The Product Life Cycle Page 7 to 8 – PESTLE Page 9 to 11 – overview of Apple’s analysis structures Page 12 – targeting and marketing segmentation Page 13 to 14 – Apple’s target market Page 15 – relationship marketing Page 16 – branding Page 17 to 18 – Positioning and overview of Apple’s target and segmentation Page 19 to 21 – Apple’s marketing mix Page 22 – bibliography

2

Ariella Meyer

Marketing plan The assignment I have developed is understanding how businesses use a marketing plan and how it meets the needs of their customers. A marketing plan is a comprehensive manuscript that outlines a business’s advertising and marketing efforts throughout the year. The marketing plan allows companies to follow a structure to meet their aims and goals for their business. The business I will be producing information about is Apple.

Apple partake in many specific strategies which are, the product life cycle, PESTLE, SWOT, SMART targets and many more. The product life cycle indicates the stages in which their product is going through from when it was introduced to the market and when it is out of date. PESTLE stands for Political, Environmental, Social, technological, Economic and Legal factors of their business. Apple participates within this strategy as it monitors the marketing environment for their business and products. The SWOT analysis stands for Strength, Weaknesses, Opportunities and Threats towards a business. the SMART targets are targets which help Apple understand their specific target and meet the main target of the business. the SMART targets stand for Specific, Measurable, Achievable, Realistic and Time.

Apple is the most advanced technological company in the entire world, and is the one of the top businesses in earning the most profit each year from small products. The business understands their marketing plan and identifies many issues and successes through their strategies. Apple make immediate decisions from the analysis’s they produce.

3

Ariella Meyer SOSTAC S

SITUATIONAL ANALYSIS

Apple is the most advanced technological company in the world. The business is constantly producing and creating top quality products within their market. Apple are the top selling company for technology and is the top business in their market. Apple are wellknown for all their products they have produced in the past and never fail to meet their customers’ expectations.

STAGE 1

O

OBJECTIVES

Apple wants to keep on expanding their business in their current and new countries. The business would like to keep the chain of their products for example their iPhones and iMacs for their customers. Apple wants to create more products that will defeat all their competition, due to their advanced technology.

STAGE 2

S

STRATEGY

In order for Apple to achieve their goals, they have to keep on researching more information about their customers and products. This will enable the business to understand the gap in the market and the new needs and wants from their customers.

STAGE 3

T

TACTICS

Apple has to constantly understand the employees within the researching department, in order for the business to understand their progress. As well as this, Apple should provide many surveys and advertise about their new products.

STAGE 4

A

ACTION PLAN

An action plan is a document that lists all the stages a business must follow to reach their main goal.

Apple has a specific department within their business that completes their action plans for the business. Apple is currently working towards their main goal which is ‘to produce an innovative product that is not existing in any other business’. Apples action is based around this goal for the business to achieve.

STAGE 5

4

Ariella Meyer C

CONTROL

Apple constantly track the progress of their employees and products. This is to ensure that all employees are aware of what they must complete and that all products are being sold at a decent rate for Apple. The business measures their success, failures, progress, products and employees to make sure that the business takes rapid action for any issues. Apple monitors and then reviews their employees and products to make them better and more beneficial to the business and the public. Apple always update their business to make it more appealing and advance for their customers and to attract more customers to the business.

STAGE 6

Apple use SOSTAC as a situations analysis to keep track of all aspects of their business. PR SMITHS’s created SOSTAC as a planning framework for companies to follow.

5

Ariella Meyer The product life cycle

Apple use the product life cycle as it shows the stages of the products their product is, which means they can improve products and act before the decline stage. The introduction stage of the product life cycle is when the product that Apple is creating is being launched into the market. This stage for Apple is the most expensive due to their advertising, the costs of the product, low sales etc.

The growth stage of the cycle is when the sales and profit is rising for Apple, as customers are acknowledging the products and more purchases are taking place.

Within the maturity stage, sales and profit are at the highest point for Apple. The maturity is when Apple is attracting many customers towards their business for their new product.

Lastly, the decline stage means that Apple’s products are shrinking within the market and profit is decreasing for the specific product. For example, Apple created the iPod and within their decline stage, they updated their model, software and added new colours. This made the product reverse into maturity stage of the cycle, as Apple advertised the products and more customers were interested in the newest iPod and software. The product life cycle allows Apple to make immediate decisions about their product and understand the stages of their products. Producing the product life cycle gives Apple many advantages for example, the product life cycle helps Apple in their planning process to make decisions, allows Apple to maximise their sales from following the process, the business can predict the future sales and many more.

6

Ariella Meyer

PESTLE Apple uses PESTLE to minimise the threats towards the business, and maximises the opportunities following the laws of all the stages of PESTLE. The political factors that Apple partake in are complying with the government laws and policies for example, if the trading laws that Apple use change to a higher price, Apple must take into consideration and follow their pricing strategy.

Apple must take into consideration other countries laws and policies, as they are a global company.

The political factors involve inter-country relationships, which Apple as built with many countries.

Apple has 481 retail stores, which are situated in 19 different countries, and this means they have built many relationships with a variety of countries and has complied with all their political laws.

The economic factors of Apple consist of the economic issues such as, tax, inflation, interest rates, recession etc. Apple constantly research the economic factors and ensure they are up to date with all the information. For example, the government may increase tax rates, meaning that Apple must pay a higher tax rate which could lead to the business increasing their prices. The business is a worldwide business, and therefore must comply with the rate of the international trading rate.

Apple have many social factors which include central aspects, beliefs, attitudes and Apple produces products that meet all the needs of their customers. When Apple set up their brand and logo, they had to ensure the product wasn’t offensive to the public. Apple don’t discriminate for example, they don’t categorise their products into male and female and ensure that they are aware of all the religions holidays.

Apple’s business is made up of all the technological factors for example, all their products contain access to the internet and are technological. The business would not have been created without technology, and technology has lead the company to become the most advance business globally.

Apple have succeeded through their technology, and the business has been able to meet majority of their customer’s needs and wants.

Apple ensure that they comply with all the legal factors in all the countries they are set up in. The business makes sure that all stores are an extremely safe environment for their employees and customers. All the employees of Apple, understand the legal policies if there is a hazard within a store, for example, they are aware of all the possible exits in their store for an emergency such as a fire. It is important that Apple show their customers that they comply with the legal laws.

7

Ariella Meyer Apple have shown the worlds that they recycle all their products. Apple are currently creating new solar energy projects to reduce their carbon footprint in the environment. The business has switched to much greener materials so they can help the environment and show customers that they care about the environment. Apple are constantly researching more ways to help and save the environment within all their countries they are situated in.

8

Ariella Meyer Apple use PESTLE to structure their business and to ensure that they are keeping all the stages of PESTLE. Customers are more likely to stay loyal with a business that shows they cover all the categories of PESTLE. PESTLE shows Apple the wider range of their business and allows them to understand all the main factors to oblige to. The information that PESTLE provides Apple with, has allowed Apple to succeed over many years. The information is essential for the business, as they are worldwide and have to understand to different factors and strategies.

The product life cycle has many benefits for Apple such as, it allows Apple to understand the stages of their products and if they have to mend their products to receive more income. As well as this, the product life cycle shows Apple if their product is going into decline, which Apple with then take immediate action for their product to stay in the market. If Apple didn’t use the product life cycle, they wouldn’t understand the stages of their products, and when they will have to try make decisions. Apple have made many decisions through the product life cycle such as, Apple’s iPhone 5’s were going into the decline stage, so the business stopped selling them and told customers they aren’t being made anymore. This attracted many customers due to the number of iPhone 5’s left in stock. This increased profit for Apple, as many customers wanted the last few IPhone 5’s within the business.

Apple use the SWOT analysis to indicate all the strengths, weaknesses, opportunities and threats towards Apple. This makes Apple more aware of their competition and more idea to attract customers, defeat competition, and understand how their business is going and many more. The SWOT analysis allows Apple to identify the key influences about their business and Apple takes immediate notice of any weakness and will act to fix the problems. The SWOT analysis helps Apple create their aims and objectives for their business and Apple doesn’t have to pay to create a SWOT analysis. The SWOT analysis has been extremely beneficial to Apple, as the business has many competitors and the analysis has made them understand when they should act. In 2013 Apple was facing tremendous threats towards the business, which was about Samsung defeating their competition.

However, Apple took immediate action and is still the world’s leading and most advanced technological company.

9

Ariella Meyer

STRENGTHS: The strengths of a business are what a business can deliver and how they have a competitive advantage.

Apple have many strengths such as, the business has a strong brand image which attract many customers to Apple. As well as this, the business has an extremely high profit margin and customers can identify this strength through the quality of their products. Lastly, Apple have a great amount of financial strength and aren’t in need of any money towards the business.

OPPORTUNITIES This is external factors that the business will operate to create an advantage for the business and customers.

Apple have investments in research and developments for the business to create new products and gain more customers.

The business constantly increases compatibility of products. Moreover, Apple have a large product diversification for their business and customers.

10

WEAKNESSES A weakness for a business is what the business is lacking for their customers. This is what downfalls the business within the market and the environment.

Apple have some weaknesses towards the business which consists of higher prices than their competition, which means that customers may go to their main competitors for a cheaper product. As well as this, the business only offers a small range of products for their customers.

Furthermore, Apple have not made any large improvements with their previous products and more.

THREATS These are the factors that have a potential negative impact on a business. All businesses have threats to their business no matter their position in the market or the profit in their bank account.

Apple have a further increase on the manufacturing costs of the business. As well as this, the business had a tax scandal which damaged the reputation of Apple.

Lastly, the business has a loss of innovation potential.

Ariella Meyer The SMART targets stand for Specific, measurable, Achievable, Realistic and Time. Apple partake within the SMART targets, as it provides the business with a path to follow and to ensure that all their targets are on point. Apple must constantly update their SMART targets, due to the business working fast and always meeting their targets. Apple’s current SMART targets are:

To sell minimum of 15 products in all Apple stores.

To be able to create the next iPhone within the next 6 months.

To increase the number of customer to the overall business by 5% in the next 7 months.

To expand the company by 27 stores in the next 2 years.

To be able to increase profit by 7% in the next year.

The SMART targets guide Apple through the business and ensure that they are achieving the smaller targets to meet the main business target. A report in the USA TODAY states that ‘Apple’s electric car is arriving in 2019’. The report says that Apple has a target to complete this electric car by the year 2019 and customers will be able to purchase the product. The public can identify that Apple has a main goal that all the employees are working on for the business.

In conclusion, Apple partakes in the SMART targets, Product life cycle, SWOT and PESTLE, for the business to receive and understand the maximum amount of information. Apple ensure that they are aware of any threats, opportunities, successes, competition and many more. The business allows the public to understand how Apple set their goals and how they can achieve the goals that have been set. Apple have individual departments that create these analyses for the business to follow and make sure they are correct. Apple are the leading and most advanced technological company in the world, and therefore have many issues that may occur in their business. Apple ensure that all these documents are completed and up to date, which prevents many issues from happening.

11

Ariella Meyer

12

Ariella Meyer

P5 – Marketing plan Target group is a selected group of people that a business aims their advertisements, campaigns and products towards. Business must partake in an immense amount of research to be sure about their target group. If a business is aiming their products at the wrong target group, the business won’t attract any customers, which means that they will not receive profit.

Apple have an extremely large target group for their customers which is from the ages of 10-60 years old. The business doesn’t design their products towards genders or a specific age. Apple’s products are in the technological market, which means that the market is extremely large and society is becoming more technologically advanced. Apple sell their products to customer however, they have set out different plans for businesses.

Apple have segmented their business globally, as the demand for their products are extremely high. Their stores are based in city centres and shopping centres, where there are many customers and it is easy to travel to. Apple has 481 retail stores, which are situated in

19 different, which means that their stores are based around their customers. Apple tends to segment their customers through identifying the best age for their products and what age will be most beneficial. Apple have an extremely large segment group, due to the large demand of their products from all ages and genders. Majority of careers nowadays suit the needs of all Apple’s products. The business aims different products at different segments for example, the Apple watch is for people who attend the gym and partake in a lot of exercise, whereas Apple MacBook’s are more for students and people in a business.

After Apple manufactured and have created their products, they send their products to different businesses for example, Carphone warehouse, Vodafone and many more. Apple have an extremely large distributing channel which send products to Apple stores and other business globally. Apple has many target groups for example:

13

Ariella Meyer

1.

Teenagers – they are the leading generation and always want to purchase the most advance technology. Teenagers buy MacBook’s, iPhones, Beats etc.

2.

People who attend the gym – customers that attend the gym have a variety of different products Apple have designed and produce to meet their needs. Apple has recently produced the iWatch for customers who want to keep track of their fitness levels. As well as this, Apple have created wireless earphones for customers to run more easily and with no hassle.

3.

Business people – people who are constantly on their phone or Laptop, will often buy products from Apple. Apple has designed their phones to be used for business and includes a large space for internet, contacts, messages etc.

4.

Older aged people – Apple have products such as the iPod shuffle, which is extremely easy to use for people that aren’t used to technology.

5.

Parents with children – Apple iPhones are aimed at parents with kids, as the children can play on the phone easily and the children will not have access to the phone without the parents.

14

Ariella Meyer

6.

Everyday technology users – Apple design their products to meet the needs of customers using the products for the enjoyment and everyday use.

15

Ariella Meyer

Relationship marketing – Apple constantly builds relationships with their customers through many different strategies for example:         

Apple has set up student discounts for their customers in college or university.

The business sends out daily emails to their loyal customers about their new offers and promotions.

Apple gives priority to their loyal customers for their festivals.

The business provides free one year minimum warranty on all their products.

Apple allow customers to pay for their products monthly, if they aren’t willing to spend an immense amount on money on a product.

Apple never fail to amaze all their customers with their new products.

The business ensures they use a strict pricing strategy for their customers.

Apple have a chat line on their website for customers to speak to an employee about their product.

If customers are having issues with their products, Apple will ensure that the customer’s issues will be solved as quickly as possible.

16

Ariella Meyer

Branding

Apple uses a variety of different branding methods for their business which creates an excellent brand strategy for the business. Apple created a slogan which is ‘think different’ from when they started up in the year of 1976.

Brand building – Apple advertises daily through the television, buses, billboards, magazines, YouTube etc. as well as this, Apple sponsors the super bowl host committee and host their own Apple festival.

This creates more brand awareness for the public as they are continuously identifying Apple’s newest products to the market. It is extremely important that Apple carry on to advertise daily as they gain many more customers through brand building. Apple ensures that their customers feel good about the products they create. The Apple brand personality is about imagination, innovation, dreams, aspirations and power to their customers through technology etc. The business has a main mission which is "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad." Brand extension – Apple’s business has produced a large variety of different products to suit all the needs of their customers. For example, Apple have created the iPhone, Macs, iPads, smart watches and many more products. This makes sure that the company will not fall behind with their competitors as they are always working on improving and updating their products.

17

Ariella Meyer Positioning – customers of Apple’s perception are extremely high for the business. Customers are aware of the pricing strategy that Apple has developed, however the business has not allowed this to stop customers buying their products. Customers of the business receive value for money as the products are made at the best quality and the most advanced technology.

Apple’s customers give them a huge competitive advantage, as they have positioned the brand as the top business in the positioning map. The business has been positioned through their price and quality of their products. The positioning map shows that Apple has the top quality and value for money. The business has created cheaper products for their customers such as, the iPhone 5c.

Customers perceive this slogan as, the business has never failed to produce spectacular and the most advanced technology products in the world. This is important for the business to ensure that customers are perceiving their slogan in the same way it was created. Therefore, on their adverts they will make sure that their slogan is seen by the public and their customers Targeting – Apple targets an extremely large number of customers to their business. This is because, Apple has created many products that meet the needs of different customers for example, children, teenagers, parents, businessmen and many more. The business targets majority of the population with their products, to meet the needs of all people and not just target certain people for their product. Apple like to involve everyone within the business and enjoys to allow their customers to be satisfied with their business.

Adults – adults tend to buy Apple’s iPhone’s and MacBook’s for their daily use of technology. These customers use Apple’s products to make phone calls, receive messages, and complete their work, internet connection and much more. The iPhones are small and easy for customers to use, as well as the technology is advanced yet simple for adults.

Children – kids find Apple products extremely appealing and entertaining. The children enjoy to use iPods and iPads, as they have easy touch sense and simple to use for their needs. Children can watch their favourite television shows on these products and play a huge variety of different games. The parents of the children can download learning Apps for the children as well as games.

Students – college and university students most commonly buy Apple laptops, iPhones, iPads and many more of their products. Apple have easy access for their products and it is easy for students to record and write notes on these products. The products are very organised for the students to keep all their work neatly and ensure it doesn’t get lost. Apple’s products are produced to be light to carry around, which means that students in college and university won’t have an issue with the Apple products being heavy.

Teenagers – teenagers of Apple tend to buy many products from the business such as, iPhones, iPads, iPods, MacBook’s and many more. They enjoy listening to music on iTunes, using social media, speaking to their friends etc. The products are easy for them to use and to bring wherever they go.

18

Ariella Meyer There are many appealing apps for teenagers to download which have been trending in the app store.

Segmentation – this is the process is splitting a broad consumer or business market, consisting of potential and current customers. Apple have a large segmentation group for their business and within the market. Apple sell their products to businesses and customers to gain more profit and customers towards the business. Customers and the public are extremely interested in what Apple is currently developing and the newest products that the business has just brought out. Apple mostly meets the needs of the entire market they are aiming their products at, due to their research skills.

Apple set up their stores in shopping centres of main town high streets to make it fair for all their customers. The business can advertise in and near the shopping centres for potential customers to identify their existence. In town high streets, there are many businessmen, tourists, and local people to visit their store and buy their products. Customers are aware of all customers’ existence and where they are in their specific country.

Apple don’t have a specific demographic for their business, as they aim all their products at all the possible ages that they can meet. The business doesn’t categorise their products through different genders, as it will cause customers to disagree with the business. As well as this, if Apple produce their products according to genders, they wouldn’t have as many loyal and existing customers to the business.

The business has created their products in psychographic segmentation groups for example, Apple has different products such as beats and their iWatches for people interested and take part in a healthy and active lifestyle. Products have different value to them within Apple, meaning that some products which has been created are more expensive, advanced technology, different colours etc.

The products that Apple have produced suit different personality traits for example, the iPhone 5C in bright yellow are for more bright and bubbly personality rather than white or black iPhones. Some customers like to show the public that they have purchased the newest and most advanced product from Apple for example, they would currently buy the iPhone 7 plus in jet black. The business is aware of the different personalities from their customers and produce products according to the research on their customers.

19

Ariella Meyer The marketing mix 7Ps in Apple

Price

Apple bases their pricing around the costs of the product and their customers. The technological market is extremely expensive, meaning that the suppliers base their materials around a high price, due to the advancement and quality of their materials. Apple is an expensive brand, and customers are willing to spend money on their products. The business understands the limit in which customers are eager to pay for their products. Apple ensure that their pricing strategy suits the needs of all their customers and they research on the furthest price customers will pay for their products.

Product

In order for Apple to create the ‘perfect’ products for their customers they have to constantly research the needs and wants from the business. Apple never ceases to impress the public, and especially their customers with their new innovative and advanced products. They are constantly aware of their competitor’s product releasing, therefore create a product that will capture the interests if more customers. Apple’s researching department is constantly understanding the competitor’s newest products and identify how the business can create a gap in the market.

Place 20

Ariella Meyer

Apple has 481 retail stores, which are situated in 19 different countries and are always looking to expand more stores. The business is extremely particular in where they base their stores for example, majority of Apple stores are based in large shopping centres and the centres of towns. This allows Apple to gain the maximum number of customers and attract new customers towards the business. Apple set their stores up in places which customers are willing to pay and attend their stores. Apple don’t have stores situated in the north of England, as the population is much older and not interested in their products.

Promotion

Apple spend an exceeding amount of capital on their promotions for the business for example, each year Apple has a budget of $1 billion for promoting the business. Apple promote the business in various ways for example, the local newspapers, social media, cinemas, billboards, iTunes festival and many more. Promotion is extremely important for Apple as they gain more customers and profit through their advertising.

People

Apple have a large process in order to employ employees, the specialised and genius’s employees within their business. Apple have to ensure that they are employees the correct employees to benefit and make positive changes within their business. The managing directors have to ensure that all employees understand the main target and what they are to perform within the business to achieve their goals. The employees have to understand how to help customers in all different 21

Ariella Meyer situations. Apple keep a close eye on all their employees, to make sure that they are aware of how to speak to customers, keep motivated, welcoming etc.

Processes

The employees deliver an excellent service to their customers and allow the employees to answer any queries they have about the product. The customers are paying for the products, as well as the service that comes in Apple stores or online. Customers have free access to speak to employees over the phone or on the Apple website about their products or to find out any information that is relevant to the business.

Physical evidence

Apple provide customers with minimum of one year warranty on all their products if they break or are having a problem. This is extremely reassuring for the customers if they don’t want to pay extra for a warranty on their product as long as they would like. Apple have minimised the number of complaints due to the business fixing any issues about their products within the first year. All products come with instructions and information needed for the customer.

In addition, Apple base their products on the research they have developed on their customers. The business uses a variety of different strategies to promote their products, segment their products, target customers etc. Apple don’t necessarily like to stop customers from buying their products due to their advertising saying it’s for a certain gender or age. Apple don’t categorise their products for specific customers however, the business will give their certain opinion on what type of customers will suit the product most.

22

Ariella Meyer Bibliography http://productlifecyclestages.com/ http://smallbusiness.chron.com/pros-cons-product-life-cycle-11801.html https://processpolicy.com/pestle-analysis.htm http://www.apple.com/uk/environment/ https://www.business.qld.gov.au/business/starting/market-customer-research/swotanalysis/benefits-limitations-swot-analysis Don Reisinger . (2013 ). Apple Faces 10 Threats to Future Growth, Prosperity. Available: http://www.eweek.com/mobile/apple-faces-10-threats-to-future-growth-prosperity. Last accessed 18-01-17. http://www.usatoday.com/story/tech/2015/09/21/report-apples-electric-car-arriving2019/72571316/ http://www.marketingminds.com.au/apple_branding_strategy.html http://www.investopedia.com/ask/answers/042315/what-apples-current-mission-statement-andhow-does-it-differ-steve-jobs-original-ideals.asp http://appleinccasestudy.weebly.com/apples-target-market.html http://www.businessdictionary.com/definition/market-segmentation.html http://www.professionalacademy.com/blogs-and-advice/marketing-theories---the-marketing-mix--from-4-p-s-to-7-p-s

23