Marketing Project

Product : Apple iPad

Animesh Kumar 2011034 Section A IMT Nagpur

Table Of Contents
Apple iPad Company Description Apples Product Mix Apples iPad Product Line Marketing Mix Life Cycle Packaging SWOT Analysis Recommendations Bibliography 3 4 5 7 8 11 12 13 15 16

Apple iPad

To survive in the global and competitive business environment, it is essential for a company to conduct extensive research so that they can develop a strong brand image from the initial stage as it leads to greater nancial benets for the company. The marketing plan of Apples iPad is the topic where an effective marketing strategy is developed to ensure its success in the global competitive market where major plays such as Sony, Compaq and Dell have a signicant impact upon Apples strategies. Apples latest iPad is the revolutionary product which is a portable mini device used as a pc anywhere with its wide range of options and innovative design. This report will be focusing upon the product design, brand positioning, price `and promotion of iPad in the global market. This will be linked to the research and analysis of the environmental forces and SWOT analysis to understand the companys position. Apples market strategy will be incorporated with the generic business strategy which is towards growth and maintaining a strong position in the market through its innovative products. Apple will use competitive marketing strategy for its iPad where two such strategies can be developed which are differentiation and Focus to make iPad a success in the global market. Marketing planning and strategies can become highly effective if Apple focuses upon its strategic human resource management and make continuous efforts to redesign its marketing plan to survive successfully.

Company Description

Started by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple has expanded from computers to consumer electronics over the last 30 years, ofcially changing their name from Apple Computer, Inc. to Apple, Inc. in January 2007. Apple Corporation is a highly successful organization that aims to advance in the technology eld through its high quality and innovative products. The success of Apple is primarily based upon its innovation and dynamic technological advancement it takes to give its customers the ease and luxury to use its products. Apples latest product iPad is launched to compete with existing computers and tablet technology, as it is a portable high tech device for the usage of all needs of an individual whether personal or business use.
4

Apples Product Mix

Apple has historically kept a relatively small assortment of products, but over the last ten years it has slowly expanded its reach into new product categories. From its inception in 1976 all the way up until the turn of the century, Apple was a personal computer company exclusively. It not only limited its product assortment in breadth, but also depth. Current Product Mix The current Product Mix of Apple can be 8 main categories : Mac MacBook Pro & Air Mac Mini & Pro iMac iPhone iPad iPod iPod Touch, Classic, Nano, Shufe iTunes Apple TV Mac Softwares iLife, iWork, Aperture, Final Cut Pro X Apple Accessories

Apples Earnings from Various Products

Positioning of the iPad The position of the iPad in the product mix of Apple is in between the Laptops (i.e. MacBook Pro, MacBook Air) and the iPhone. It is basically a tablet computer. Due to its size and weight it falls between a contemporary smartphone and laptop computer. The iPad was a revolutionary device in a way that it dened a totally new category of known as the new tablet PCs which were light, touchscreen and small compared to the previous versions.

Apples iPad Product Line

Product Line The Product line of Apples iPad is relatively small (2 main categories) but due to the number of variations in its categories it targets a wide range of consumers. Product Line can be divided into two basic categories : Apple iPad Wi-Fi Apple iPad Wi-Fi + 3G Apple iPad Wi-Fi The iPad Wi-Fi comes in 3 models with different internal storage (16GB, 32GB, 64GB). Pricing of these models in India are as follows : Rs. 29500, Rs. 34500, Rs. 39500 respectively.

Apple iPad Wi-Fi + 3G The iPad Wi-Fi + 3G model has an inbuilt 3G antenna and supports data plans from Cellular Providers. This also comes in 3 models with different internal storage (16GB, 32GB, 64GB). Pricing of these models in India are as follows : Rs. 36900, Rs. 41900, Rs. 46900 respectively.

Marketing Mix

Marketing Mix is the set of controllable,tactical marketing tools that the rm blends to produce the response it wants in the target market. Price, product, place and promotion are the 4 P's or components that make up a marketing mix. Product The iPad is the new invention of Apple with extensive Research and Development. It is a simplied computing product for people who do not wish to deal with the difculties of managing a full computer. Application installation and uninstallation is handled through the App Store. There are no les to manage, as all the applications store les within themselves. Basically, it is a product that trades customizability for ease of use. Second of all, the iPad is large. People say that it reminds them of a large iPod Touch and have difculty understanding who would want that. The answer is people with limited vision and manual dexterity. I think that the iPad will appeal to a 55+ audience that struggles with using full-blown computers and with pushing small buttons on gadgets like the iPod Touch. The iPad is the new revolution
8

introduced by Apple to provide ultimate user friendliness and access to all technological advancements together in one mini device.

Promotion Apples iPad promotional strategy has mainly focus upon word of mouth advertising and point of purchase strategy where consumers are encouraged to discover and try out the product themselves. Apples latest iPad has required extensive marketing through television and other media sources to achieve high customer response. Television is an effective medium of advertisement ad Apples advertisement has given it more importance and this industry is ourishing through these innovative ads. But also at the same time promotion behind the iPad is the standard Apple promotion machine. Steve Jobs hypes it, it appears in newspapers, and likely in magazines. As a result, it appears in places seen by the general public, more so than many competing netbook products. While netbooks appear in the popular press in the generic, very rarely is it that the media refers to a specic model of Eee PC. So, the promotion behind the iPad is likely to reach a less tech savvy audience.

Price The iPad is priced at around the same price as a discount laptop in a retail store. Its a bit more expensive than a netbook, but old people cant use the little screen and keyboards on netbooks anyway. They tend to prefer laptops with larger screens, which can be difcult for them to use, but easier for them to see. Apples iPad is charged at a premium price from the start to show and prove that it is a superior quality and innovative device than any other available in the market. As it is an innovative product, it is promoted in the market as a premium priced device that has value for the benets it provides. This way the consumers consider Apples iPad as a highly reliable and portable pc device that can make their life faster and efcient in terms of both work and entertainment which will lead to its brand image strengthening through this marketing strategy.

Place Apple has always focused upon building long term relationships with its suppliers, wholesalers, and retailers worldwide because this way its supply chain management can become highly efcient. As the economic activity has slowed down, it resulted in increase in the prices of oil, which has ultimately increased the costs of production for Apple and reducing its cost effectiveness. They are sold at a minimum in Apple Stores, online, and in a handful of other retail stores. Apple Stores tend to be located in busy malls that sell a variety of different items. As a result, people without a strong interest in computers see the front displays in Apple Stores. So, the placement helps Apple advertise its products to light computer users.

10

Life Cycle

Many products follow the product lifecycle and are initially accepted only by the early adopters and then slowly gain mainstream popularity, the Apple iPad however doesnt seem to follow this pattern, according to Apple execs the iPad is a runaway hit and its going mainstream faster than anything theyve seen before. Apple has sold 16 million iPads since its launch, at rst they were caught off guard by the huge demand, and are working 24/7 to increase capacity. Initially Apple thought that producing 1 million iPads a month sounded very optimistic, some analysts thought Apple might sell 1 million units in the whole year. Apple is investing enormous time and resources in increasing the iPad production in order to get it to as many people as possible. The iPad is in the Growth Stage in the US market, while in the Indian market it is in the Introductory Stage.

11

Packaging

The packaging for iPad is highly recyclable. It uses corrugated cardboard made from a minimum of 28 percent post-consumer recycled content, and molded ber made entirely from recycled content. In addition, its packaging is extremely material efcient, allowing up to 38 percent more units to be transported in an airline shipping container compared with the original iPad. The following table details the materials used in iPad 2 packaging. Material
Paper (corrugate, molded ber) High-impact polystyrene Other plastics

Retail box
205g 68g 9g

Retail & Shipping Box

492g 68g 9g

12

SWOT Analysis
The SWOT analysis assists organizations to identify the strengths and weaknesses of an organization which are internal and opportunities and threats which are external. This will help in understanding how Apple can utilize its strengths and opportunities and overcome its threats and weaknesses to survive in the global competitive market. Strengths Brand perception - Apple is very successful innovative company. Sales of its iPod , Macintosh computers have developed it as favorable brand and given wider access to series of brands like iPhone, iPad. Apple products are usually associated with image of fun, sophisticated, and quality. Ease of Use and Quality - Apples products are easy in use and handle to carry. Its touch screen is totally different from other phones and PDAs that recognize multi nger gestures. Apples products have higher standard of quality. The iPhone and iPad screens are scratch resistant, thin in shapes, and light weight. Innovation and Improvements - Innovation and capability of improvements its products are the strengths of Apple, which can be seen as 6 times upgrading its iPod products and recently launched a revolutionary device iPad tablet.

Weaknesses Price - Apple products are often expensive and only can be afforded by certain group. Therefore, keeps it away from potential consumers and giving them chance to opt other competitors brands such as Sony, Dell, HTC, Etc. Faulty Products - Apple has faced problems in its iPod Nano product which proved faulty in screens and whereby the screen easily break under impact and also complaints about early iPod batteries.

13

Opportunities Better quality control implementation - The Apple Inc. can also implement better quality control procedures to enable in providing more magical and revolutionary quality product to consumers. Introduction of new products - Apple has massive designing, and manufacturing techniques in developing new products to its customers as compared to competitors like Dell, HP, and HTC. Therefore, Apple can penetrate in leading the market through the differentiation of its new products from its competitors.

Threats Strong Competition - Apple is facing tough competition in todays global oligopoly as industry is being inuenced by many major competitors such as Nokia, Samsung, Dell and others. Financial crisis and political instability - Todays inconsistency of global nancial stability and world stock market have major impact on companies prot. So the introduction of new products could affect Apples position badly as nancial crisis force people to retreat and not support any new products due to personal nancial problems. Apple can also face political instability in some countries such as internal political power struggle, transition of ruling power and others. These dilemmas can affect launching of new products in certain countries such as Asia, South Africa and others, even with vast market opportunity.

14

Recommendations
Apples strategy of differentiation has its focus upon producing unique and innovative products for its customers which are not provided by other competitors in the global markets. The majorsuccess key of Apple is that it offers superior quality and innovative products and services to its users with prime emphasis upon innovation and design. Therefore, marketers must focus upon their advertisements that promote these ve actors to inuence consumer buying decisions. This will create a buzz in the market and gradually the image as a premium high tech pc device will strengthen all over the world which will contribute towards its brand equity. The spread of this innovation will be inuenced mainly by its attractiveness, quality, price, promotion and durability. Customers make high involvement purchase decision for innovative products as it involves high risks. Moreover, Apple being the rst one to enter the market with a highly innovative device will lead to its strong brand image building in the competitive global market. Apple can create a competitive advantage that is not imitable by its competitors. As Apple is known for its quality and innovation as the rst energy drank, it has captured a very large customer base as compared to its competitors but to maintain this customer base or increase the number, it must focus upon developing sustainable competitive advantage through its human resource which ultimately leads to excellent customer relationships. The 4 Ps of marketing also require changes and continuous improvements to survive in todays highly global business environment. The marketing campaigns can emphasis upon the design and reliability of the iPad in future to make the most reliable functioning device in the market. This will strengthen the brand equity as well as help in surviving successfully in the competitive global market. The positioning of Apple can be altered according to the market trends, the children and teenagers can be the target for iPad in future.
15

Bibliography
Hall.D & Jones. R., Business Studies (2nd ed.), Marketing Mix, 2000 Schein, E.H., Marketing Management. The Jossey-Bass Business & Management Series, 2000 Borrington.K & Stimpson.P., Business Studies (2nd ed.), Marketing, 2004 Kotler.P, Marketing Managment - ASouth Asia Perspective (13th ed.), 2009. The Apple Website : http://apple.com Wikipedia

16