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Marketing Plan: Product Identification and SWOT Analysis

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Apple’s Brief History and Its Brands

Apple Inc is a publicly incorporated technology company, which has its head offices in Cupertino, California. According to CNN Business (2020), Steve Wozniak and Steve Jobs founded the technology giant company in 1976. The founders aimed at making computers which are sizeable enough for people to have them in their offices or homes. In particular, they wanted to design and develop user-friendly computer. Needless to say, Apple corporation has revolutionized the computer industry over the years with introduction of graphics and other different sorts of software. With its innovative approach, there has been upsurge of computer and phone sales and it is, in fact, touted as one of the most valuable companies since 2010 in the world. It is highly valued because it makes popular products with generous margins. The company designs digital gadgets, that encompasses of iPods, Macs, iPads, and iPhones. Its brands constituents of iBook, iMac, iWork, iLife, iCloud, and iPad (Apple Inc, 2020). Also, the company has introduced Apple Watch, and Apple pay brands which have created new business.

Apple’s core Products and Services

The core products offered by Apple include iPad, iPhone, iPod, Mac, Apple TV, Apple Watch, a portfolio of consumer and professional software application, OSX, iPhone OS(iOS) and watch OS operating systems, Apple pay, iCloud, and a wide range of accessory, support, and service offerings. Apple online service iTunes stores, Mac App Store, Apple TV+, Apple Music, and iCloud. Other services provided by Apple encompasses of Genius Bar, Apple store, Apple pay, Apple care, Apple pay card, and Apple pay cash (Apple Inc, n.d.).

Key Current Competitors.

Apple’s competitors include Dell, Samsung, Microsoft, Leveno, Sony, Hp, Asus, Huawei, Xiaomi, and Oppo. Samsung is the biggest Apple competitor which is the largest smartphone company accounting for 21.2% of the global market. Apple has been ranked as the second company with the most sold smartphone in 2019 behind Samsung, generating net sales of $142.3 billion.

SWOT Analysis of Apple Inc

Strength

The biggest strength of Apple is its brand identity. Their products have beautiful design, wealth, aesthetics, creativity, and simplicity. Apple can design and develop proprietary software, hardware, applications, and services. This enables the company to produce unique, easy-to-use products, and innovative and solutions for its customers (Jurevicius, 2020). Customized Apple’s premium products and use them because it produces unique, innovative, and easy-to-use products and service. Apple has a powerful brand supported by advertising and marketing capabilities which are strong. Apple’s brand is the most valuable and recognizable in the world. Also, it has a reputation for developing highly innovative, well-functioning products, well designed, and offering a great customer experience (Apple SWOT 2020 | SWOT analysis of Apple, 2020)

Weakness

The prices of Apple’s products are high. Standard PC laptops can cost as low as $200 while Mac laptops are priced roughly between $1100 and $1200+. Apple’s products are priced in a manner that suits middle and high-in-income consumers (Jurevicius, 2020). Low-income consumers cannot afford Apple’s products. Apple has a weakness of limited advertisement and promotions. Apple marketing depends mostly on its iconic and flagship retail stores. Incompatibility with other software is a weakness of Apple. Apple’s products are not compatible with other software or technologies thus making them incompatible with other devices.

Opportunities

One of the opportunities that Apple can capitalize on is consistent customer growth. For many, years, Apple has been dominating the technology sector. They offer quality and cutting –edge technology that provides a breakthrough in customer experience (Jurevicius, 2020). Apple has a customer retention rate of 92%. Also, Apple has qualified professional’s researcher’s product specialists and developers who are experienced in branding consumer products. An expansive distribution network is an additional opportunity for Apple. It has a chance of expanding its distribution network (Apple SWOT 2020 | SWOT analysis of Apple, 2020)

Threats

Competition is a threat to Apple. Apple competes with Samsung in the smartphone market and the entire Android market. In terms of technology, advancement competes with brands like Dell, Google, and Samsung. Market penetration is another threat to Apple. There has been a significant change in market penetration by other brands in the smartphone market. Android software is being used by companies such as HTC, Samsung, and Lenovo to create new smartphones (Apple SWOT 2020 | SWOT analysis of Apple, 2020)

Proposal for Apple’s Product that Requires Development of Marketing plan

The product or service line I want to develop a marketing plan for is iPad. Apple’s iPad is smaller than a typical laptop, but larger than the average smartphone. It does not have a keyboard or track pad but instead has a touch screen interface which is used to control the device. iPad runs Apple IOS operating system. I think this product deserves a more dedicated campaign. Apple’s iPad is highly priced thus marketing investment is warranted. In addition, Apple’s iPad faces high competition in the market. Many of iPad competitors offer expansion features like SD cards, memory slots and standards USB ports to connect with other devices while Apple’s iPad has only two connectors; a headache jack and a ‘’lightning port’’(The disadvantages of an iPad. ,n.d)

How to Achieve Competitive Differentiation

The four components of competitive differentiation encompass branding, support, packaging and quality. Through branding, a company’s product is easily identifiable as belonging to a particular company (Chandrasekar, 2010). To achieve competitive differentiation, for the Apple’s iPad, as well as create customer value, I would recommend branding of iPad by focusing on designs thus creating on the emotions. Packaging, on the hand, can aid in displaying, promoting and in making the product marketable (Chandrasekar, 2010). I would encourage the company to design iPad that makes customer feel good. The company needs to integrate simplicity and creative designs in Packaging of iPad so as to attract customers. Support would high in order to offer after sale services. Additionally, I would recommend the company to reconsider offering a high-quality iPad that last for longer period. The Apple’s iPads should meet and exceed not only the customers’ expectations but also particular requirements, specifications and standards.

References

Apple Inc. (AAPL). (n.d.). Yahoo Finance – Stock Market Live, Quotes, Business & Finance

News.

https://finance.yahoo.com/quote/AAPL/profile/

Apple Inc. (2020). Apple at work. Retrieved from

https://www.apple.com/business/

Apple SWOT 2020 | SWOT analysis of Apple. (2020, September 26). Business Strategy Hub.

Apple SWOT 2024 | SWOT Analysis of Apple

Chandrasekar. (2010). Marketing management: Text & cases. Tata McGraw-Hill Education.

CNN Business (2020). AAPL – Apple Inc company profile. Retrieved from

https://money.cnn.com/quote/profile/profile.html?symb=AAPL

Jurevicius, O. (2020, January 8). Apple SWOT analysis (5 key strengths in 2020). SM Insight.

https://strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html.

The disadvantages of an iPad. (n.d.). It Still Works.

https://itstillworks.com/disadvantages-ipad-

1023.html.