Made by: Vu Tien Thanh
Bouy Yang
Shi Lei
QiaoLing Ma
2012
Executive Summary
Although facing fierce competition from other companies, Apple is still indisputably at the top of the tablet market (54.7% market share in the 4th quarter of 2011). The company has sold nearly 33 millions iPad 2 in the year of 2011. On March 7th 2012, the company launched its “new” iPad (3rd generation) for this year. This report aims at the marketing analysis for the Apple’s new iPad.
As committed, new iPad is the upgrade of previous iPad 2, designed to bring the best user experience to its customers through its innovative hardware, software, peripherals, and services. Apple continues to use the same pricing strategy for the new iPad while reducing the price for iPad 2 (from $499 to $399) to put it into direct competition with those middle-range tablets of Amazon or Samsung. It has also been decided that Apple should focus the demographic segment in general but more specifically be targeting their product primarily to the 25-44 years old age group along with the secondary targets of 13-24 years old and 45-54 years old or older.
The company uses a variety of direct and indirect distribution channels for iPads, such as its retail stores, online stores, and direct sales force, and third-party cellular network carriers, wholesalers, retailers (BestBuy, AT&T, Verizon, etc.), and value-added resellers with the purpose of expanding its distribution network to effectively reach more customers and provide them with a high-quality sales and post-sales support experience.
While the company is widely recognized as a leading innovator in the markets where it competes, the tablet market is highly competitive and subject to aggressive pricing. To remain competitive, the company believes that continual investment in research and development is critical to the development and sale of iPads. In addition, by cooperating with other prestigious companies such as
Bibliography: 7. Dan Graziano, Apple Tablets Share Slides in Q4 Following Kindle Fire Launch, 2012, http://www.bgr.com/2012/03/13/apples-tablet-share-slides-in-q4-following-kindle-fire-launch/ 8 11. Apple #1 in Product Placement – Products Like iPad Appear in 42.5% of Top US Movies, 2012, http://www.padgadget.com/2012/02/15/apple-1-in-product-placement-products-like-ipad-appear-in-42-5-of-top-us-movies/