Mkt 421 Strategy And Positioning Research Paper
Strategy and Positioning Paper
April Francis, Brooke Burasco, Danilo Murphy, Francisa, Marsalis Hall, Zarahy Martinez
MKT/421 Team D
April 6, 2015
Kelly Duman
Strategy and Positioning Paper
In this paper Team D will discuss strategy and positioning on Apple IPhone7. This paper will describe overviews of the organization, the product or service, SWOT analysis and many more marketing plan. Team D will also write a written positioning statement.
An Overview of the Organization/Description of Product or Service
The organization or company Apple Inc. was founded by Steve Jobs in 1976. Steve Jobs died in 2011 and Tim Cook took over in his place as the new CEO. This massive technology company is one of the largest companies to market cell phones, …show more content…
computers and online services to everyone across the United States. Apple is second behind Samsung Electronics which is the largest information technology company by revenue. Apple has more than 70,000 employees around the country working in 400 plus location outlets. There is a huge need for technology in the age in time and Apple delivers on every end. Everywhere we turn there is a need for more technology advancement in the world we live in. Technology has taken over in every way possible and Apple is in the business of giving everyone the Apple experience. In America today people are always in constant use of their cell phones and using the internet. From downloading new music to texting and surfing the net, Apple products allow everyone to gain access to a new world through their products.
Apple’s products are famous and the most well-known products are the IPAD, IMAC, ICLOUD, ITUNES, IPOD and the IPHONE. The IPHONE allows users to talk, text and surf the internet. Also it allows users to video chat but for Apple users it is called FACETIME. This type of video chat is only allowed to be used by people who own IPHONES. People with different phones are not able to access the FACETIME application. As far as downloading music is concerned Apple users have the ITUNES application on their IPHONE. This also is only for APPLE users because the ITUNES application will not download on any other phone but the IPHONE. These products are compatible which one another and are for the use of and are specifically for Apple users only. That is the benefits of being an Apple user because each individual product is designed only for those who want the “Apple Experience”. These products allow customers to download new music, contact their family and friends, video chat and also text. Work related spreadsheets and documents can be created on some of these products such as the IMAC and IPAD. Apple had dominated the technology industry with many promotions advertised by famous individuals. IPHONES are among the most popular items sold which gains people’s attention when seeking a new phone to purchase.
A SWOT analysis of organization and offering
Apple IPhone SWOT analysis is a company that have intends, produces cell phones, music players and related services, personal computers, peripherals and software and networking solutions. Apple is a company market position that can be measure by strong operating performance and can also increase confidence of investors.
Apple strengths are brands reputation, retail stores, and customer’s loyalty combined with expanding closed ecosystem, they are a company leading innovation in mobile device technology and Apple is a strong financial performance 10,000,000,000 cash gross profit margin 43.9% and no debt). Apple weakness are to decrease marketing shares, long-term gross margin decline and high price and patent infringements. Apple has so many opportunities for their growth or tablet and smartphones markets, their damages from patent infringements, they are a strong growth of mobile advertising market, they have high demands of IPad mini and IPad and increasing demand for cloud based services. Apples threats has price pressure from Samsung over key components, Android iOS growth competitor’s moves in online music market and rapid technological change.
Apple IPhones are smartphone that user are looking to switch. Sometimes you can be able to trade in your non-IOS device program to provide up to $175 of store credit for a new IPhone for an exchange. Apple employees will assist customers to transfer contacts from smartphones to their new IPhone. Apple IPhone new strategy is to attempt to increase its revenues and lure smartphone user from rival firms, especially Samsung. The new programs is to expand customers base by providing previous non-eligible consumers credit.
Competitive Analysis of the Organization and Offering Using Porter’s Five Competitive Forces Model
While creating the iPhone 7, understanding where power lies in a business situation it helps to understand both the current strength of your current competition position, and the strength of a position you’re considering moving in to. The important part of the planning toolkit helps prevent taking the wrong steps towards a new product. Understanding your competitor’s price and product is important to improve a situation of strength and a situation of weakness. Predictably the Porter’s Five Competitive Forces Model helps identify whether the new product has potential for profit. The iPhone’s competitor is Android.
Force 1: Supplier Power
The Supplier power that iPhone has is the uniqueness of Apple who created the iPhone. There is no middleman in supplying the iPhone it goes from Apple to the consumer so there is no extra cost. There are many factors that can affect how much power an individual supplier has on buyers in the market. Cost to the buyer is higher when changing from one supplier to another. We will eliminate those costs by staying with a single supplier to supply the iPhone 7. Apple has supplier power with the iPhone. Prior to iPhone being released Apple made it a big deal about the iPhone that it gained a lot of popularity. This created high demand for the product even before it was released. Now as each release is made, the iPhone already has its own popular demand. This demand made people stand in line for hours and even days before the iPhone was released. This will be the same for the release of the iPhone 7.
Force 2: Buyer Power
By staying with a single supplier we also have buyer power. Dealing with a single supplier, we will be able to dictate terms to your company with the supplier. Since Apple does not have a substitute for its product it is hard for the buyer to go anywhere else to purchase the phone. It has a unique style and very flashy compared to its competitor of the Android phones. This makes for a very profitable product.
Force 3: Competitive Rivalry
Its competition rivalry is the Android. We look at iPhone 7 vs. Android. IPhones are much better looking than the Androids themselves. This makes for a better market with just its facial features. There aren’t many great looking Androids out there. Many are chunky and plasticky. ("Business Insider", 2015). The iPhone consistently has better designs than the Android phones. ("Business Insider", 2015). The iPhone has the fingerprint sensor to unlock the phone and no other phone has this. There is no greater way to make the most out of your phone than the iPhone 7. Your privacy is protected with your own identity touch.
Force 4: Threat of Substitution
The threat of substitution for the iPhone 7 is very low.
The iPhone are the most revolutionary in the industry that with that said, there is no wonder no one would find a substitution for the smartphone. It is one of a kind and the material used to create the iPhone 7 is hard to come by. For another phone to be created like this smartphone it would be nearly impossible to recreate. This phone is a leader in its generation.
Force 5: Threat of New Entry
Overall, the company can determine the level of competition by rationing the allocation amounts from the product it seeks to develop. We see no threat of entry to go into the market to sell iPhone 7. We have a unique product that it makes it difficult for our competitors to imitate. We believe we are the company that influences the threat of new entrants to other companies. There is a very high demand currently for Apple’s iPhone products and what gives us that advantage is that the customers see them as a unique product, where the substitutes just don’t compare.
The criteria you will use to segment your market and select your target market including geographic, demographic, psychographic, and behavioral …show more content…
factors
It is necessary to tailor marketing and sales attempts to reach the population that is more likely to purchase the iPhone. As a first attempt, the market for the iPhone should be identified. Identifying the primary market is critical because it allows for the funds that are available to be used resourcefully. It also makes it is easier to evaluate the consumer’s needs and ensure they being met. Not only is it important to identify the customers, but also identify their needs and what they can afford. The market should be defined and measured through product knowledge and market analysis. The primary market should be measurable, adequately big and reachable. The market has to sustain the ongoing business. The iPhone can be promoted to the consumer market, industrial market and reseller market. The consumer market includes those individuals that will purchase an iPhone for their personal use. The industrial market can be individuals or organizations that will purchase the iPhone for their day to day business operations. The reseller market includes those third party vendors that purchase goods to resell for a profit.
The first step to identifying the market is to understand why a customer would buy the iPhone.
The product’s features should be acknowledged as well as the benefit to consumers and businesses that are likely to purchase. While it is expected to want to target as many potential buyers, it is better to segment the market and campaign directly to meet the needs of a specific group. It will be more cost effective to focus on one group because the promotional funds are distributed more adequately. Because the target market for the iPhone is large, it should be divided into smaller segments on the basis of geographic, demographic, psychographic, and behavioral factors. Potential buyers for the iPhone are located throughout the world therefore they would be part of the national marketplace segment. The demographic target market for the iPhone would be based on age, income level, family size, and occupation. You want to make sure the potential buyer can afford the iPhone. With each model that is released, the user age group is younger and younger. Knowing the family size can help promote additional devices. Physiographic variables are important because it guides businesses as to what products to offer. Attitudes and emotions tend to influence customers’ buying behavior. The belief that we have to have what others have is a big motivator to purchase a product. Some of us purchase an iPhone out of loyalty to Apple or because we have become accustomed to the product, and it meets our
needs. A purchase can be a status symbol for one potential buyer while it is a job necessity for another, either way, buying habits and patterns are significant. A description of your target market and needs that cause your target market to buy including emotional and logical drivers
With the reputation that Apple has created for itself, businesses and people from all ages all over the work will be the target market for Apples new iPhone7. The thousands of apps available for the iPhone7 make it possible for each target market to customize the phone to meet their own business or personal needs. Children are one of Apple’s target markets. According to Gonchar (2013), a recent survey found that 38 percent of children under 2 had used a mobile device like an iPhone. The expanded touch screen feature on the iPhone7 makes it easy for young children to use and entertain themselves with learning applications and games that their parents can download. Teenagers are another target market for the iPhone7. Now-a-days a teenager’s time is consumed with music, social media sits such as Facebook and twitter, and games or apps. The iPhone7 will be able to provide access to all of these features with a single touch to the screen. Another target market are college and university students. The extended memory in the iPhone7 will allow these students to quickly record class notes, which they can organize and keep in their device or upload into the cloud if they need to be stored for a long period of time. The iPhone7 will also allow college students to manage their agenda’s, schedules, and ability to access email to stay on top of their classes. Business people are also a target market for the iPhone7. The features on the phone will allow this group to access company email, communicate with clients and coworkers, send and store important documents and organize their schedule, which is extremely important for a business to be successful. The last target market, are adults. A phone has gone from a luxury to a necessity. Adults need a phone for their everyday needs such as making phone calls, text messaging, email, map directions, internet connection, and camera. The iPhone7 will provide all of these features in one light weight device, which makes it convenient and easier for all adults. Each of Apple’s target markets has their own individual needs that will cause them to buy the iPhone7. Though young children do not have the ability to purchase the phone themselves, their purchasing power will come from influencing their parents into getting one. Though the American Academy of Pediatrics’ recommends that children under 2 should have no screen time (Lewin, 2013), the fact that parents can distract a fussy child at a restaurant by just handing them the iPhone7, or they can have some quiet time at home while their child is entertained with the iPhone7, is reason enough to buy this product. From young children to teenagers, these target markets will play on their parent’s emotions when asking for an iPhone. Teenagers always want to have the newest technology. If a friend has one, they will want it too and parents will purchase it so that their child does not stay behind. For business people as well as adults, will use logic when deciding to purchase the iPhone7. If this phone meets all of their needs and it is a reasonable purchase, then they will purchase.
Inclusion Apple IPhone7 was describe on how to use strategy and positioning its plan. Team D has research the company Apple and use iphone7 as the product. As a team we have learn that Apple is a big company and has different organizations and products that has expand throughout the world. As a team, we have gave different descriptions about Apple iphone7 and wrote a written positioning statement to describe Apple marketing plan and strategy.
References
Apple. (2015). Retrieved from https://www.apple.com/
Business Insider. (2015). Retrieved from http://www.businessinsider.com/iphone-versus-android-2015-2#theyre-better-looking-2
Data Monitor, 2006. Apple Computer, Inc. [online] http://www.alacra.com/acm/2009 sample.pdf. Retrieved on April 6, 2015
Gonchar, M. (2013). How Young Is Too Young for an iPhone? Retrieved from http://learning.blogs.nytimes.com/2013/10/29/how-young-is-too-young-for- An-IPhone/comment-page-10
Lewin, T. (2013). New Milestone Emerges: Baby’s First iPhone App. Retrieved
From http://www.nytimes.com/2013/10/28/us/new-milestone-emerges-
Babys-first-iphone-app.html
MaGee, S. (2015). How to Identify a Target Market and Prepare a Customer Profile. Edward Lowe Foundation
Masi, B., 2009. Strategic Analysis of Apple Inc. http://www.scribd.com/doc/7
Staff Reporter (media@realty today.com) March 17, 2015. Apple offering Android & Non-IOS Trade-In. www. Want china times.com/news-subclass-cnt. Retrieved on April 6, 2015
April Francis, Brooke Burasco, Danilo Murphy, Francisa, Marsalis Hall, Zarahy Martinez
MKT/421 Team D
April 6, 2015
Kelly Duman
Strategy and Positioning Paper
In this paper Team D will discuss strategy and positioning on Apple IPhone7. This paper will describe overviews of the organization, the product or service, SWOT analysis and many more marketing plan. Team D will also write a written positioning statement.
An Overview of the Organization/Description of Product or Service
The organization or company Apple Inc. was founded by Steve Jobs in 1976. Steve Jobs died in 2011 and Tim Cook took over in his place as the new CEO. This massive technology company is one of the largest companies to market cell phones, …show more content…
computers and online services to everyone across the United States. Apple is second behind Samsung Electronics which is the largest information technology company by revenue. Apple has more than 70,000 employees around the country working in 400 plus location outlets. There is a huge need for technology in the age in time and Apple delivers on every end. Everywhere we turn there is a need for more technology advancement in the world we live in. Technology has taken over in every way possible and Apple is in the business of giving everyone the Apple experience. In America today people are always in constant use of their cell phones and using the internet. From downloading new music to texting and surfing the net, Apple products allow everyone to gain access to a new world through their products.
Apple’s products are famous and the most well-known products are the IPAD, IMAC, ICLOUD, ITUNES, IPOD and the IPHONE. The IPHONE allows users to talk, text and surf the internet. Also it allows users to video chat but for Apple users it is called FACETIME. This type of video chat is only allowed to be used by people who own IPHONES. People with different phones are not able to access the FACETIME application. As far as downloading music is concerned Apple users have the ITUNES application on their IPHONE. This also is only for APPLE users because the ITUNES application will not download on any other phone but the IPHONE. These products are compatible which one another and are for the use of and are specifically for Apple users only. That is the benefits of being an Apple user because each individual product is designed only for those who want the “Apple Experience”. These products allow customers to download new music, contact their family and friends, video chat and also text. Work related spreadsheets and documents can be created on some of these products such as the IMAC and IPAD. Apple had dominated the technology industry with many promotions advertised by famous individuals. IPHONES are among the most popular items sold which gains people’s attention when seeking a new phone to purchase.
A SWOT analysis of organization and offering
Apple IPhone SWOT analysis is a company that have intends, produces cell phones, music players and related services, personal computers, peripherals and software and networking solutions. Apple is a company market position that can be measure by strong operating performance and can also increase confidence of investors.
Apple strengths are brands reputation, retail stores, and customer’s loyalty combined with expanding closed ecosystem, they are a company leading innovation in mobile device technology and Apple is a strong financial performance 10,000,000,000 cash gross profit margin 43.9% and no debt). Apple weakness are to decrease marketing shares, long-term gross margin decline and high price and patent infringements. Apple has so many opportunities for their growth or tablet and smartphones markets, their damages from patent infringements, they are a strong growth of mobile advertising market, they have high demands of IPad mini and IPad and increasing demand for cloud based services. Apples threats has price pressure from Samsung over key components, Android iOS growth competitor’s moves in online music market and rapid technological change.
Apple IPhones are smartphone that user are looking to switch. Sometimes you can be able to trade in your non-IOS device program to provide up to $175 of store credit for a new IPhone for an exchange. Apple employees will assist customers to transfer contacts from smartphones to their new IPhone. Apple IPhone new strategy is to attempt to increase its revenues and lure smartphone user from rival firms, especially Samsung. The new programs is to expand customers base by providing previous non-eligible consumers credit.
Competitive Analysis of the Organization and Offering Using Porter’s Five Competitive Forces Model
While creating the iPhone 7, understanding where power lies in a business situation it helps to understand both the current strength of your current competition position, and the strength of a position you’re considering moving in to. The important part of the planning toolkit helps prevent taking the wrong steps towards a new product. Understanding your competitor’s price and product is important to improve a situation of strength and a situation of weakness. Predictably the Porter’s Five Competitive Forces Model helps identify whether the new product has potential for profit. The iPhone’s competitor is Android.
Force 1: Supplier Power
The Supplier power that iPhone has is the uniqueness of Apple who created the iPhone. There is no middleman in supplying the iPhone it goes from Apple to the consumer so there is no extra cost. There are many factors that can affect how much power an individual supplier has on buyers in the market. Cost to the buyer is higher when changing from one supplier to another. We will eliminate those costs by staying with a single supplier to supply the iPhone 7. Apple has supplier power with the iPhone. Prior to iPhone being released Apple made it a big deal about the iPhone that it gained a lot of popularity. This created high demand for the product even before it was released. Now as each release is made, the iPhone already has its own popular demand. This demand made people stand in line for hours and even days before the iPhone was released. This will be the same for the release of the iPhone 7.
Force 2: Buyer Power
By staying with a single supplier we also have buyer power. Dealing with a single supplier, we will be able to dictate terms to your company with the supplier. Since Apple does not have a substitute for its product it is hard for the buyer to go anywhere else to purchase the phone. It has a unique style and very flashy compared to its competitor of the Android phones. This makes for a very profitable product.
Force 3: Competitive Rivalry
Its competition rivalry is the Android. We look at iPhone 7 vs. Android. IPhones are much better looking than the Androids themselves. This makes for a better market with just its facial features. There aren’t many great looking Androids out there. Many are chunky and plasticky. ("Business Insider", 2015). The iPhone consistently has better designs than the Android phones. ("Business Insider", 2015). The iPhone has the fingerprint sensor to unlock the phone and no other phone has this. There is no greater way to make the most out of your phone than the iPhone 7. Your privacy is protected with your own identity touch.
Force 4: Threat of Substitution
The threat of substitution for the iPhone 7 is very low.
The iPhone are the most revolutionary in the industry that with that said, there is no wonder no one would find a substitution for the smartphone. It is one of a kind and the material used to create the iPhone 7 is hard to come by. For another phone to be created like this smartphone it would be nearly impossible to recreate. This phone is a leader in its generation.
Force 5: Threat of New Entry
Overall, the company can determine the level of competition by rationing the allocation amounts from the product it seeks to develop. We see no threat of entry to go into the market to sell iPhone 7. We have a unique product that it makes it difficult for our competitors to imitate. We believe we are the company that influences the threat of new entrants to other companies. There is a very high demand currently for Apple’s iPhone products and what gives us that advantage is that the customers see them as a unique product, where the substitutes just don’t compare.
The criteria you will use to segment your market and select your target market including geographic, demographic, psychographic, and behavioral …show more content…
factors
It is necessary to tailor marketing and sales attempts to reach the population that is more likely to purchase the iPhone. As a first attempt, the market for the iPhone should be identified. Identifying the primary market is critical because it allows for the funds that are available to be used resourcefully. It also makes it is easier to evaluate the consumer’s needs and ensure they being met. Not only is it important to identify the customers, but also identify their needs and what they can afford. The market should be defined and measured through product knowledge and market analysis. The primary market should be measurable, adequately big and reachable. The market has to sustain the ongoing business. The iPhone can be promoted to the consumer market, industrial market and reseller market. The consumer market includes those individuals that will purchase an iPhone for their personal use. The industrial market can be individuals or organizations that will purchase the iPhone for their day to day business operations. The reseller market includes those third party vendors that purchase goods to resell for a profit.
The first step to identifying the market is to understand why a customer would buy the iPhone.
The product’s features should be acknowledged as well as the benefit to consumers and businesses that are likely to purchase. While it is expected to want to target as many potential buyers, it is better to segment the market and campaign directly to meet the needs of a specific group. It will be more cost effective to focus on one group because the promotional funds are distributed more adequately. Because the target market for the iPhone is large, it should be divided into smaller segments on the basis of geographic, demographic, psychographic, and behavioral factors. Potential buyers for the iPhone are located throughout the world therefore they would be part of the national marketplace segment. The demographic target market for the iPhone would be based on age, income level, family size, and occupation. You want to make sure the potential buyer can afford the iPhone. With each model that is released, the user age group is younger and younger. Knowing the family size can help promote additional devices. Physiographic variables are important because it guides businesses as to what products to offer. Attitudes and emotions tend to influence customers’ buying behavior. The belief that we have to have what others have is a big motivator to purchase a product. Some of us purchase an iPhone out of loyalty to Apple or because we have become accustomed to the product, and it meets our
needs. A purchase can be a status symbol for one potential buyer while it is a job necessity for another, either way, buying habits and patterns are significant. A description of your target market and needs that cause your target market to buy including emotional and logical drivers
With the reputation that Apple has created for itself, businesses and people from all ages all over the work will be the target market for Apples new iPhone7. The thousands of apps available for the iPhone7 make it possible for each target market to customize the phone to meet their own business or personal needs. Children are one of Apple’s target markets. According to Gonchar (2013), a recent survey found that 38 percent of children under 2 had used a mobile device like an iPhone. The expanded touch screen feature on the iPhone7 makes it easy for young children to use and entertain themselves with learning applications and games that their parents can download. Teenagers are another target market for the iPhone7. Now-a-days a teenager’s time is consumed with music, social media sits such as Facebook and twitter, and games or apps. The iPhone7 will be able to provide access to all of these features with a single touch to the screen. Another target market are college and university students. The extended memory in the iPhone7 will allow these students to quickly record class notes, which they can organize and keep in their device or upload into the cloud if they need to be stored for a long period of time. The iPhone7 will also allow college students to manage their agenda’s, schedules, and ability to access email to stay on top of their classes. Business people are also a target market for the iPhone7. The features on the phone will allow this group to access company email, communicate with clients and coworkers, send and store important documents and organize their schedule, which is extremely important for a business to be successful. The last target market, are adults. A phone has gone from a luxury to a necessity. Adults need a phone for their everyday needs such as making phone calls, text messaging, email, map directions, internet connection, and camera. The iPhone7 will provide all of these features in one light weight device, which makes it convenient and easier for all adults. Each of Apple’s target markets has their own individual needs that will cause them to buy the iPhone7. Though young children do not have the ability to purchase the phone themselves, their purchasing power will come from influencing their parents into getting one. Though the American Academy of Pediatrics’ recommends that children under 2 should have no screen time (Lewin, 2013), the fact that parents can distract a fussy child at a restaurant by just handing them the iPhone7, or they can have some quiet time at home while their child is entertained with the iPhone7, is reason enough to buy this product. From young children to teenagers, these target markets will play on their parent’s emotions when asking for an iPhone. Teenagers always want to have the newest technology. If a friend has one, they will want it too and parents will purchase it so that their child does not stay behind. For business people as well as adults, will use logic when deciding to purchase the iPhone7. If this phone meets all of their needs and it is a reasonable purchase, then they will purchase.
Inclusion Apple IPhone7 was describe on how to use strategy and positioning its plan. Team D has research the company Apple and use iphone7 as the product. As a team we have learn that Apple is a big company and has different organizations and products that has expand throughout the world. As a team, we have gave different descriptions about Apple iphone7 and wrote a written positioning statement to describe Apple marketing plan and strategy.
References
Apple. (2015). Retrieved from https://www.apple.com/
Business Insider. (2015). Retrieved from http://www.businessinsider.com/iphone-versus-android-2015-2#theyre-better-looking-2
Data Monitor, 2006. Apple Computer, Inc. [online] http://www.alacra.com/acm/2009 sample.pdf. Retrieved on April 6, 2015
Gonchar, M. (2013). How Young Is Too Young for an iPhone? Retrieved from http://learning.blogs.nytimes.com/2013/10/29/how-young-is-too-young-for- An-IPhone/comment-page-10
Lewin, T. (2013). New Milestone Emerges: Baby’s First iPhone App. Retrieved
From http://www.nytimes.com/2013/10/28/us/new-milestone-emerges-
Babys-first-iphone-app.html
MaGee, S. (2015). How to Identify a Target Market and Prepare a Customer Profile. Edward Lowe Foundation
Masi, B., 2009. Strategic Analysis of Apple Inc. http://www.scribd.com/doc/7
Staff Reporter (media@realty today.com) March 17, 2015. Apple offering Android & Non-IOS Trade-In. www. Want china times.com/news-subclass-cnt. Retrieved on April 6, 2015