Apple Inc. is an American multinational corporation, which designs, manufactures and sells personal computers, consumer electronics and software, and provides related services. The business has experienced a tremendous growth from 2001 when it has introduced its iPod mp3 player. Apple Inc. is considered to be the most successful electronics company in the world.
Marketing Mix Today, Apple unveiled its new product, the iPad. The much publicized rumour about a tablet created by Apple is now a reality. Tablet pc’s have been around for a long time, but what makes the iPad different from the other market offerings? What strategy does Apple have in place in order to make this a runaway hit like its iPhone and iPod product lines? We’ll use the marketing mix (4 P’s) to see how Apple strategized its goal to make the iPad a bestseller.
Marketing Mix is the set of controllable, tactical marketing tools that the firm 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.
Apple sells a variety of electronic devices. In 2010, Apple introduced their first tablet, iPad. Ipad is a tablet device that has several features. It looks like a bigger iPhone or iPod Touch and possess a led touch screen interface. Its dimensions are 9.56 in x 7.47 in. It is also very thin and has a battery life of ten hours. This product has the ability to surf the internet, listen and purchase music, watch videos, view photos, read e-mail, read and purchase e-books and execute multiple applications. In fact, the multiple applications available for the iPhone will be fully compatible with the iPad! There will be different versions of the iPad at launch with different hard drive capacities and 3g capability. There will be a 16 GB, 32 GB, and 64 GB variants. Also all iPads will have Wi-Fi and are wireless-n capable. The iPad will also feature the latest Bluetooth profile and will have an on-screen keyboard for inputs.
The base model of IPad (16 GB) without 3g capability is the cheapest at $499, 32 GB at $699, this is I pad and I phone 5 prices and 64 GB will retail for $699. If a customer wants 3G capability they will have to pay an additional $130 on top of the base price. The consumer also has the option to sign up for AT&T data plan that allows them to have access to the internet virtually anywhere and in areas without Wi-Fi connections. The data plan is two tiered: the customer has a choice between $14.99/month for 250mb and $29.99/month for unlimited access. The data plan will also allow the consumer to access various AT&T hotspots for free.
Unlike the iPhone, the customer will not be locked into multi-year contractual obligation and they can terminate it at any time. As far as discounts go, Apple is known for charging higher, premium prices however, they usually offer $100 off certain products to college and University students. They also do special bundles for purchasing certain products during different times of the year. For example, I purchased a MacBook Pro during the summer and they had a promotion that gave me a free iPod and a free printer plus the $100 discount because I was a University student. They have done the same promotion for the previous two years as well.
Place There are multiple Apple stores across the Australia, 20 of them, in which all the apple products will be sold. Apple’s retail stores ensure high quality customer experience; provide direct contact with knowledgeable staff and increases brand awareness. Customers can also purchase the products online in Apple’s official website. Best Buy, one of Apple’s partners, also sells Apple products and also has a large retail footprint in the Australia. Amazon, one of the largest online retailers, also carries Apple products. Apple should gauge consumer demand and produce enough in order to satisfy the market.
Promotion In the past two decades, Apple has become well known for its advertisement. Its most significant ad campaigns include the “1984” Super Bowl commercial, the 1990s Think Different campaign, and the “iPod people” of the 2000s. Other than that Apple Inc. also held press conference to before each products launch debut the products. Several of the major techblogs, forums and websites also invited to cover the event. Given Apple’s track record of heavy promotion and advertisement of its marquee products, the future apple new product has a high probability of getting the same advertising treatment. The Mac, Iphone 5 and iPad is already highlighted on the front page of Apple website and the hour long keynote by Steve Jobs regarding the Mac, IPhone 5 and iPad are also available on the website.