Apple Marketing Strategy Essay
1. Apple Marketing StrategyApple has been so successful in these last years thanks to his fresh, imaginative way to think and do its business: awinning combination of exceptional products, great style and design, great strategy, innovative marketing, sleekand enticing communications.Apple owes its overwhelming success in the last years to the iPhone and to the smart iPod and iTunes productcombination, a combination of a great hardware piece with great style, great software, great performance, userfriendly interface, with a good e-business service. The iPod + iTunes halo effect and new great Mac computers andMac OS software did the rest in increasing Apple revenue stream.
In the 5 years between 2003 to 2008 the Apple share value increased 25 times, from $7.5 to $180 per share. At july2008 prices, before the US Financial Crisis, Apple stock market capitalization was $160 billion.In January 2010 Apple shares topped the $210 mark.But even the best companies with the best products have bottleneck factors which often avoid full exploitation ofthe opportunities.The iPod.Few people are aware – and few market analysts too – that for the first 3 years the iPod was an absolute flop. TheiPod was launched in october 2001, and between 2001 and 2004 iPod sales were between 100-200 thousand unitsper quarter, very far from todays 10-20 million units per quarter, and the iPod sales were not even covering theproduct research & development costs.
Then, in June-Aug 2004 something happened, and iPod sales began to grow strongly, quarter after quarter. Today,we all know where the iPod stands, and what a remarkable success it is.The iPod made the fortune of Apple, and it stands out as the major turning point in the company growth.Few people know that the iPod + iTunes business idea was not conceived inside Apple, but was proposed to Appleby an outside source, a music lover and Engineer named Tony Fadell.More on Tony Fadell and on the iPod marketing on iPod Marketing StrategyThe iPod marks another outstanding result in marketing:the annihilation of competitors.
To know more see the analysis onThe iPod competitorsIt should be noted that, since the second generation of iPods in 2002, the iPods were made compatible not only withthe Mac operating systems but with Microsoft Windows operating systems as well.We should ask ourselves (and to Steve Jobs): how many iPods would have been sold if the iPods would had beencompatible only with Mac operating systems?Where the iPod is manufactured and assembledThe iPhone.
The pipeline of new products which came out from Apple in the last years is impressive, and overwhelming. In 2007,with the successful launch of the iPhone, Apple has marked another milestone in its development and growth.And moreover, the iPhone enters a market – the market of mobile phones – a market which is mature, and saturated.Nonetheless, Apple has been able to develop a revolutionary product, and to change the paradigm in the mobile
2. Phone market.The iPhone is 5 years ahead of all its competitors. A wonderful product, amazing user interface, great design. It isnot only a mobile phone, it is a product between a mobile phone and a laptop computer. Even calling it asmartphone is not enough.In July 2008 Apple launched the second generation iPhone, the iPhone 3G.The iPhone 3GS.In June 2009 Apple launched its third generation iPhone: the iPhone 3GS.The iPhone 3GS has a 3 megapixel autofocus camera, video recording and editing capabilities, voice control, longerbattery life, 7.2 Mbps HSDPA internet connection. iPhone 3GS is twice faster than the iPhone 3G.
The iPhone 3GSprices: $199 for the 16GB model, $299 for the 32GB model.more on the new iPhone 3GS on the iPhone 3GS page.More on iPhone Marketing on the iPhone Marketing Strategy page.Apple did great. no doubt. However Apple has done some serious mistakes.The most serious mistakes Apple has done concern marketing and distribution strategies in Europe.Apple has overlooked the European markets, and missing big numbers in unexploited sales. With better marketingstrategy, better communication and distribution, Apple could have made 300% more revenues in Europe in the last 4years. Apple Marketing in EuropeWe met with with Erik Stannow, Apple Vice President of Marketing for Europe & EMEA.
We have been talking withErik Stannow about the marketing and distribution issues of Apple in the European markets and we gave somevaluable suggestions to improve the Apple marketing strategy and distribution in Europe.Well, it seems that in Cupertino they dont care so much about Europe.Steve JobsIf we talk about Apple success, about Apple great products, we need to talk about Steve Jobs. Steve Jobs has beenand is the great mind behind all this.Steve Jobs is a genius, he is a magician, too. He is the most skilled guy in introducing new products – “… one morething” – the most skilled in presenting the key features, and he is a great communicator.
Even more important, Steve Jobs has Vision. Vision in the strategy, Vision in the product development, Vision in thealliances.Apple Communication Strategy.Apple communication is sober, intriguing, simple, clear, minimalist and clever. And it has a style of its own. Both inthe tv ads, both in print ads, both in the online communications. A lesson to be learned by many companies in theworld. Well, of course when you have great products it is much easier to entice the costumers, but neverthelessdoing it with style and cleverness is a very good point.
It boosts sales, but enhances the brand value too.The famous “I am a Mac, I am a PC” tv ads are a milestone in communications. Smart, simple, effective andhumiliating (for Microsoft …).More on Apple Communications and on the Apple Commercials “I am a Mac I am a PC” on the AppleCommunication Strategy page.
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