A study on the marketing strategies of Apple Inc (Dissertation)

''A study on marketing strategy of Apple'' December 2012

I

''Critical Analysis of using marketing

strategies of branding Apple Inc''

Maha H


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Declaration

I hereby declare that this dissertation is my own original work and is the result of my own investigations.

This dissertation research was conducted to fulfill the requirements of BA (Hons) in Business

Administration (Marketing) associated with University of Wales.

XYZ

December, 2012


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Acknowledgement

I would like to thank a bunch of people who helped me in completion of my dissertation like:

My facilitator for guidance and support throughout the dissertation.

All respondents and friends for filling in the questionnaires.

My family for constant support and motivation.


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Abstract

, computer nicsconsumer electro Apple Incorporation is a multinational company that creates and sells

The. billion about US$16 363 stores worldwide, with global sales of , insoftware, and personal computers

are mainly iPad and the iPhone , iPod line of computers, Macintosh like known products-company's well

e due to high brand awareness related to these products. Apple recognized as a source of competitive edg

, Final Cut Studio ,Aperture, iWork ,iLife ,iTunes , Mac OS Xalso sells other branded products like,

.iOS browser and Safari, Logic Studio

The main objective of this study is to analyze the importance of using marketing strategies of branding in

Apple Inc. The study will help to find out about the related benefits of branding mainly. The details of the

study will help us to learn about the consumer's awareness about the brand and how their loyalty can be

increased in order to gain a competitive edge. Also, analyzing the importance of branding can help us to

find out about the Apple brand's strengths, weaknesses, opportunities and threats, by using SWOT

analysis tool and by using STP process, we can know how to segment the market, target the customers

and position the products/services. Whereas, by using 4 Ps of marketing mix, we can find out about the

branded product, its price, promotion and placement.

Therefore, since the competition in the technology industry is increasing, 'A study on using marketing

strategy of branding in Apple' will help the company in staying at the top of consumer's mind, to cope up

with the changes, to gain competitive edge, to attain goals set by the company, to make improvements for

the future related to products, its pricing strategy, communications used to promote and the placement of

the product. Therefore, it will help us to evaluate whether branding will affect Apple Inc's success rate or

not.

http://en.wikipedia.org/wiki/Consumer_electronics

http://en.wikipedia.org/wiki/IPad

http://en.wikipedia.org/wiki/IPhone

http://en.wikipedia.org/wiki/IPod

http://en.wikipedia.org/wiki/Macintosh

http://en.wikipedia.org/wiki/Final_Cut_Studio

http://en.wikipedia.org/wiki/Aperture_(software)

http://en.wikipedia.org/wiki/IWork

http://en.wikipedia.org/wiki/ILife

http://en.wikipedia.org/wiki/ITunes

http://en.wikipedia.org/wiki/Mac_OS_X

http://en.wikipedia.org/wiki/IOS

http://en.wikipedia.org/wiki/Safari_(web_browser)

http://en.wikipedia.org/wiki/Logic_Studio


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Table of Contents:

Chapter no Topic Page no

Declaration……………………………………………….. II

Acknowledgment…………………………………………. III

Abstract………………………………………………….... IV

Table of Contents………………………………………… V

List of tables and figures………………………………… VI

Chapter 1 Introduction

1.1 Technology Industry…………………………………...

…………………...1.2 Introduction to Apple Incorporation

1.3 Motivations of research………………………………..

1.4 Research Objectives……………………………………

1.5 Research question……………………………………...

1.6 Organization of Study………………………………….

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Chapter 2 Literature Review

2.1Introduction……………………………………………..

2.2 What is branding?...........................................................

2.3 Benefits of branding a company (Apple)………………

2.4 STP Process……………………………………………

2.5 4 Ps (marketing mix) of Apple………………………...

2.6 SWOT Analysis of Apple……………………………...

2.7 Apple's competitive edge………………………………

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4

6

8

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Chapter 3 Methodology

3.1 Purpose of the study……………………………………

3.2 Type of research………………………………………..

3.3 Research Method………………………………………

3.4 Types of data…………………………………………..

3.5 Target population………………………………………

3.6 Sample size…………………………………………….

3.7 Sampling Method………………………………………

3.8 Data Collection methods……………………………….

3.9 Questionnaire design…………………………………...

3.10 Hypothesis………………………………………….

3.11 Pilot Survey………………………………………...

3.12 Limitations and Remedies to overcome them……...

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Chapter 4 Data presentation, findings and analysis

4.1 Response rate graph……………………………………

4.2 Data presentation , Findings and Analysis…………….

4.3 Hypothesis……………………………………………..

4.4 Summary of the findings

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Chapter 5 Conclusion and Recommendations

5.1 Conclusion……………………………………………..

5.2 Recommendations……………………………………..

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Bibliography………………………………………………. 41


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Appendices

Appendix A – Cover letter……………………………….

Appendix B – Questionnaire……………………………..

Appendix C – Plagiarism Report………………………...

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FiguresList of Tables and

Page no Figure no Page no Table no

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9 2 24 2

10 3 24 3

10 4 25 4

10 5 25 5

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23 8 27 8

24 9 28 9

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SECTION II

CHAPTER 1: Introduction

1.1 Technology Industry

Wiki invest (2012) Technology states, the technology industry provides foundation for activities such as,

chip production, information and communication systems, and computer systems. The companies

belonging to this industry serves as developers and manufacturers of the products which increase

efficiency and production of cell phones, computers, televisions, and other communication and

information systems. It is a huge industry with a high growth potential, but it is sometimes go through

volatile cycles, like the semiconductor industry. As chips are getting smaller and globalization is

increasing, demand for faster and efficient technology, demand for technological industry in increasing.

1.2 Introduction to Apple Incorporation

Apple Incorporation is a multinational company that creates t, tha ,states Apple store(2012) Wikipedia

363 stores , computer software, and personal computers, selling inconsumer electronics and sells

on company was first foundedThe .billion in merchandise about US$16 ide, with global sales ofworldw

and then Ronald Wayne , andSteve Wozniak ,Steve Jobsby , California Cupertino April 1, 1976 in

he company was named as Apple Computer, Inc before for the first 30 Ted on January 3, 1977. incorporat

The company's years. The word "Computer" was then removed from its name on January 9, 2007.

Now the company's .consumer electronics on personal computers shifted towardswas traditional focus

, along with their iPad and the iPhone , iPod line of computers, Macintosh known products are the-best

suite of iLife media browser, iTunes , )operating system( Mac OS Xother line of products including,

(professional Aperture (suite of productivity software), iWork multimedia/creativity software,

, a Logic Studio industry),-(suite of professional audio and film Final Cut Studio photography package),

(mobile operating system). iOS web browser and Safari suite of music production tools;

1.2.1 Mission statement of Apple Inc

According to Apple Inc (2012), ''Apple designs Macs, the best personal computers in the world, along

with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its

iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App

Store, and has recently introduced its magical iPad which is defining the future of mobile media and

computing devices.''

Another mission statement is:"Apple is committed to bringing the best personal computing experience to

students, educators, creative professionals and consumers around the world through its innovative

hardware, software and internet offerings."

http://www.wikinvest.com/wiki/Networking_%26_Communication_Equipment

http://www.wikinvest.com/wiki/Computer_Hardware_Manufacturing

http://www.wikinvest.com/wiki/Semiconductor_Cyclicality


http://en.wikipedia.org/wiki/Ronald_Wayne

http://en.wikipedia.org/wiki/Steve_Wozniak

http://en.wikipedia.org/wiki/Steve_Jobs

http://en.wikipedia.org/wiki/Cupertino,_California


http://en.wikipedia.org/wiki/IPad

http://en.wikipedia.org/wiki/IPhone

http://en.wikipedia.org/wiki/IPod

http://en.wikipedia.org/wiki/Macintosh

http://en.wikipedia.org/wiki/ILife

http://en.wikipedia.org/wiki/ITunes

http://en.wikipedia.org/wiki/Operating_system

http://en.wikipedia.org/wiki/Mac_OS_X

http://en.wikipedia.org/wiki/Aperture_(software)

http://en.wikipedia.org/wiki/IWork

http://en.wikipedia.org/wiki/Logic_Studio

http://en.wikipedia.org/wiki/Final_Cut_Studio

http://en.wikipedia.org/wiki/IOS

http://en.wikipedia.org/wiki/Safari_(web_browser)


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1.2.2 Vision Statement of Apple Inc “We believe that we are on the face of the earth to make great products According to Apple Inc (2012),

and that’s not changing. We are constantly focusing on innovating. We believe in the simple not the

t we need to own and control the primary technologies behind the products that complex. We believe tha

we make, and participate only in markets where we can make a significant contribution. We believe in

hat are truly important and saying no to thousands of projects, so that we can really focus on the few t

pollination of our groups, which allow us to -meaningful to us. We believe in deep collaboration and cross

innovate in a way that others cannot. And frankly, we don’t settle for anything less than excellence in

honesty to admit when we’re wrong and the courage to -company, and we have the self every group in the

change. And I think regardless of who is in what job those values are so embedded in this company that

Apple will do extremely well.”

1.2.3 Objectives of Apple Inc

As stated on the website Apple Inc (2012) are:

To obtain products and services within tight timeframe, at a cost providing the best value to the

customers and shareholders.

To keep creating and releasing computers and consumer electronics those are user-friendly.

To open more stores even on international locations to increase sales and dominate world market.

To innovate on a regular basis.

1.2.4 Major competitors of Apple Inc

Samsung, Microsoft, Dell, HP, Blackberry, Nokia

1.3 Motivations of research:

As the competition in the technology industry has increased, it has become mandatory to make a study on

the importance of using a marketing strategies of branding for Apple, to stay at the top of consumer's

mind, to cope up with the changing environment, to gain competitive edge, to make improvements in

future and to attain goals set by the company.

1.4 Research Objectives:

To analyze the importance of using a marketing strategies of branding for Apple Inc and to find out

how STP strategies helps Apple's brand.

To find out about the benefits of branding for the company and to find out how branding helps to gain

a competitive edge by differentiating themselves and how it increases customer loyalty and increases

brand awareness.

To find out about the branded product and its related price, promotion and placement and to find out

the strengths, weaknesses, opportunities and threats the company may be facing.


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1.5 Research question:

1.5.1 Leading question:

What benefits will Apple and its customers benefit from after using branding marketing strategy?

1.5.2 Subsidiary questions:

Does branding allow Apple Inc to communicate company's objectives, mission and vision clearly to

their customers?

Does branding helps Apple to differentiate its products from its competitors, by gaining competitive

edge?

Does branding allow Apple's customer to easily recognize and recall the company and its products?

Does branding allow Apple Inc to charge premium for its products and yet maintain customer loyalty?

How will using STP strategies, 4 Ps of marketing mix and SWOT Analysis help to enhance Apple's

brand?

Does branding really contribute in making a difference in Apple Inc's success?

1.6 Organization of Study:

Chapter 1: Introduction

Chapter 2: Literature Review

Chapter 3: Methodology

Chapter 4: Research findings, data presentation and data analysis

Chapter 5: Conclusion and Recommendations


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CHAPTER 2: Literature Review

2.1 Introduction

This section will provide the details about the qualitative data, providing a foundation for all the details to

follow.

2.2 What is branding?

According to Kotler (1999), branding is a ''name, term, sign, symbol or design, or a combination of all

these that identifies the goods and services of one seller or group of sellers and to differentiate them from

those of competitors.''

Branding does not only allow your target market to choose your company over the competitor's, but it

helps in getting your prospects to see you as the only company that provides a solution to the consumer's

problems.

It provides a company’s with a recognizable and trustworthy badge of originality, an intangible guarantee,

i.e. a promise of performance that the product will meet with desired consumers' expectations.

2.2.1 Apple's Branding Strategy

According to Marketing minds (2012), Apple Inc. uses the Apple brand to compete across several highly

competitive markets, including the personal computer industry with its Macintosh line of

computers/laptops and related software, the consumer electronics industry with products such as the iPod,

digital music distribution through iTunes Music Store, the smart phone market with the Apple iPhone,

magazine, book, games and applications publishing via the AppsStore for iPhone and the iPad tablet

computing device, and movie and TV content distribution with Apple TV. The company is also

establishing a very strong marketing presence relative to the rival (Google) in the advertising market, via

its business Apps and iAd network.

Steve Jobs, the co-Founder of Apple, described the company as being a "mobile devices company",

largest in the world as their revenues are bigger than Nokia, Samsung, or Sony's mobile devices business.

2.2.2 Brand Awareness

It is when the consumers are familiar about the life or availability of the product. It is the degree to which

consumers associate your brand with a specific product/service.

As indicated by Management study guide (2012) in their article '' What is brand awareness?'', Brand

awareness may include of:

Brand recognition- is when the consumers have good knowledge of brand when they are asked

questions related to a specific brand and they are able to differentiate a brand on the basis of having

noticed or heard about earlier.

E.g. Is I-phone related to Apple or Samsung?

http://marketing.about.com/cs/brandmktg/a/whatisbranding.htm

http://www.apple.com/investor

http://www.apple.com/

http://advertising.apple.com/


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Brand recall- It allows a customer to recover a brand from his memory when given the product

class/category, needs satisfied by that category or buying scenario as a signal, i.e. if they are able to

recall the brand from their memory.

E.g. Showing a logo of Apple's brand, and asking which brand does this logo belongs to.

2.2.3 Apple's brand personality

As stated by About.com (2012), ''What is branding and how important is it to your marketing strategy?'',

a good brand helps a company to achieve these objectives:

Helps to deliver the message clearly

It confirms your company's credibility

It connects your target prospects emotionally

It motivates the buyer

It strengthens user loyalty

Apple has a branding strategy that focuses on the emotions. Apple brand's personality is about

lifestyle, imagination, liberty regained, innovation, passion, hopes, dreams and aspirations, and

power-to-the-people through technology. The Apple brand personality is also about simplicity,

making life easier for people as they have people-driven product design, and is a humanistic company

with a heartfelt connection with its customers.

2.2.4 Apple's Brand equity

According to Investopedia, it is the premium value that the company realizes from a product with a

recognizable name as compared to its generic equivalent firm. Companies can create brand equity for

their products by making them memorable, easily recognizable and superior in quality and reliability.

Also, mass marketing campaigns may help to create brand equity. Brand equity is said to be positive if

the consumers are willing to pay more for a branded product than for a generic one.

Brand awareness plays a key role in building brand equity. Create reliable brand image, slogans and

taglines, helps to strengthen brand awareness which therefore improves brand equity.

Marketing minds (2012) also states, Since Apple has strong brand awareness, it has high sales and high

market share, and the consumers are well acquainted and familiar with the brand and its products. They

are also willing to pay premium price for their products, relative to the competitor's brand due to Apple's

positive brand equity. Apple is not just intimate with their consumers but there is a real sense of

community among users of its main product lines. Therefore, this also helps to create consumer's brand

loyalty (where brand loyalty is when the consumers become committed to your brand, choosing it over

competitors and making repeat purchases over time.)

http://www.marketingminds.com.au/branding/brand_profile.html#personality


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2.3 Benefits of branding a company (Apple)

2.3.1 Emotional Appeal – As stated by Clarity marketing LTD (2005), emotional appeal helps a great

deal in targeting customer's emotions with product names. A strong, recognizable brand will acts like a

‘short cut’ in decision making process, as the customers don't dither over alternatives or compare options

where there is no clear point of difference, and instantly chooses your brand as they know what it stands

for. For instance, as Apple manufactures technological items, the name of each product clearly reflects

technological aspects like iPod touch, which indicates that it is a product that allows you to play and

choose music through touch properties. It therefore, helps in creating an integrated appeal to specific

emotions promoting the product recognition and sales.

2.3.2 Memorability and Familiarity – According to Marcia Yudkin (2012), brand helps to create a

reputation and good will for a company. It is very hard for customers to refer to a company as "that

whatsitsname store" or to refer business as "the shop from the Yellow Pages." In addition to the company

name, it gives people to give constant reminders reinforcing the identity of companies they will want to

buy from. Memorability can come from the logo, its design, color, style etc which helps to nail your

company's name in the minds of the public.

Similarly, after your brand is nailed in the minds of your customers, that’s when your customers have

become familiar and aware of your company’s existence in the market. Branding allows having huge

effects on non-customers too. Psychologists' studies have proved that familiarity develops liking for it.

Also, the customers who have never bought from your company, may many tomes be willing to

recommend your company to others even without having any personal knowledge of your products or

services.

Therefore, the half bitten Apple logo and the brand name 'Apple' help a great deal to help customers

remember, be familiar and recommend the brand to others.

2.3.3 Premium image and Premium price - Branding allows a company to differentiate themselves

from competitors existing in the market, because of which instead of dealing with price-shoppers the

customers become eager to pay a higher price for your company's goods and services. A strong brand let

the customers associate themselves as being a company that offers premium quality, trendy products and

is offering unique products that other companies are not offering.

2.3.4 Extensions - When your company's brand is well-established, you can spread the respect you've

earned to a related new product, service or location and win acceptance easily of the newcomer. For

instance, when Apple introduced a new product extension line of Ipad, the customers trusted the brand so

they didn't feel reluctant and bought Ipads anyway, making these tablets quite popular of its kind in the

market.

2.3.5 Loyalty - When customers have a positive experience with your company's brand, they are more

likely to buy your products and services again in future rather than the competitors. Customers that are

closely bonded with your brand's identity may not only repurchase what they bought earlier, but may also

buy related items of the same brand, and recommend your brand to others and resist the lure of a

competitor's price cut. The brand identity helps to create and anchor such loyalty.


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Apple's loyal customers wait every year to buy a new version of iphone every year, regarding the high

price and numerous other phones existing of competitors brand in the market.

2.3.6 Lower marketing expenses – Branding helps a company to invest less in marketing (promotion)

expenses, though you need to invest money in order to create a brand, but it's more like a one off

investment as once it's created you can maintain it and do not need to tell the whole story about the brand

every time you market it. For instance, Apple promoting for iphone by Apple, everyone knows that

iphone is a touch phone produced by the brand Apple.

2.3.7 Greater company equity- Branding your company allows you to get more money when you decide

to sell it. Also, it allows the company to borrow loan even if the company's facilities and inventory

vanished, just because of their brand name. Similarly if Apple Inc founder ever decides to sell the

company he will get more money.

2.3.8 Less Risk and Quality Assurance –Lynne Haley Rose (2012) states, when you market a

product/service with a strong, positive brand association, you communicate an assurance of quality to the

potential customers, which makes the consumers more likely to buy from your branded company rather

than a no name company. Often, superior sales are due to the trust and expectation of quality that the

recognized brand has established through an integrated marketing program. This is the reason that

customers prefer to buy Apple's products rather than those that are unbranded.


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2.4 STP Process

It consists of a set of three strategies namely (Segmentation, Targeting and Positioning) that is created

after branding, and further helps in developing marketing strategies for Apple's brand.

Figure 1: STP process

2.4.1 Segmentation- As stated by University of Southern California (2012), when the market is divided

into sub groups, known as market segments, in order to create product differentiation strategies

and to exploit these segments to the firm's own use. There are several segmentation techniques

that can be used, like:

Demographic segmentation: It is when the market is segmented on the basis of age, gender,

education, income, occupation, etc.

Geographic segmentation: It is when the market is segmented on the basis of city, state, region

or country.

Psychographic segmentation: It is when the market is segmented on tha basis of life style, Social

class (Upper class, middle class, lower class, blue collar, and white collar), behavior, opinions

(liberal/conservative), values or ethics.

Apple Inc segments their market by:


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Figure 2: Apple's segmentation

As we are in an age of mobile computing, it helps to see the continuum of connected devices from the

perspective of their means of mobility; namely, whether they are wear-able, pocket-able, bag-able or

portable.

According to Mark Sigal (2010), Such diverse set of device Apple offers from physical buttons,

keyboards and moue to multi-touch and tilt, providing a window into the types of use cases and

workflows that they are used for optimizing.

Apple has used their vertical integration of the iPod media player and the iTunes marketplace, to their

advantage as it creates a billing relationship with 160 million consumers via simplified discovery,

purchase and distribution, providing a window into how their market segmentation approach is

simultaneously harmonious and discrete.

The iOS-based Apps and their corresponding “ecosystem surround” directly overlay on top of iTunes and

the iPod media player. This approach is like business school study of how companies can apply strategies

and tactics across product lines and product lifecycles.

Therefore, Apple has the ability to be judicious in its implementation of differentiating hardware

components at the display, phone, camera and video capture level.


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2.4.2 Targeting- It is the second stage of the STP process. After the market has been separated into its

segments, the marketer will select a segment or series of segments to target at, and then resources and

efforts will be targeted at the segment.

Different targeting methods can be used by the firm, like:

1. One supplier targeting a single segment with a single product.

Figure 3: Targeting 1

2. One supplier with one product, targeting all segments.


3. One supplier, with several brands and targeting different segments for each brand.



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Apple Inc has been using the second approach of being one supplier that is targeting many segments.

According to the Matt Asay, (2010), Apple mainly targets people, as it focuses on users and lets them

decide how and where they’ll use their products.

2.4.2 Positioning- According to Switchtomac, 2009 'Understanding Apple's positioning', positioning is

the third and final part of the STP process. Positioning is one of the simplest and one of the most

useful tools for marketers. After segmenting a market and then targeting a consumer, you would

proceed to position a product within that market.

Positioning is all about the 'perception', and it may differ from one person to another. E.g. What

you perceive as quality, value for money, etc, maybe different to another person's perception

about it.

Apple is positioned as a premium brand in the mind of the customers that demands and earns a

price premium. This price premium spans the entire Apple product lineup encompassing the

Macintosh, iPod, iPhone, software, and accessories. Therefore, Apple's has positioned them to

target a less price sensitive customer, thus which has created a culture and a set of activities

through which Apple differentiates itself from competitors to meet the needs of their targeted

customers.

2.5 4 Ps (marketing mix) of Apple

2.5.1 Product:

According to Boseng (2011), Products are the goods and services that a business provides for sale

to target the market. Apple like any other company began with the products. At first Apple

computers (MAC) were considered as an overpriced niche product with a low market share. Only

communications segment considered it as a great took for design and AV applications, but the rest

of the people remained loyal to the traditional PCs; but Apple continued to build their base of

brand advocating through design, combining unprecedented features and innovative styling. In the

recent years, Apple diversified it product mix by introducing new line of products, keeping up

with the competitive consumer electronics market. Some of their well known products such as the

iPod, a portable music player was the first product range that was launched to compete in the

portable media player market and not after long came the iPhone (the most innovative device that

has several features like mobile phone capabilities, music player, small personal organizer and

portable computing, all put in a one tiny handheld which dominated the mobile phone market).

What makes iphone unique is that it allows customization to be done suiting the individual needs

accordingly, making it relevant to its target market. Other famous products of Apple comprises of

ipad, another handheld touch form of mini-computer and Apple TV.

2.5.2 Price:

According to CJ (2011), Price concerns with the amount of money that customers should pay in

order to purchase the company's products. Apple has never considered pricing as one of the

competitive advantages. They only use their best resources to make a great final product first, and

then only worry about the costs. The only buck to this trend we have seen now is with iPad.

Apple’s competitors release their own tablet devices, but none of them are coming any closer to

iPad’s entry price of $499 even when everything is equal in regards of the hardware and


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component quality. It is clearly seen that Apple is leveraging some of the supply chain advantages

earned from the iPhone and iPod with regards to materials like touch screens and flash memory in

order to keep iPad’s pricing down, which will prove very difficult for the major competitors to

approach in the near term. Rival firms such as Samsung operate in many different business

segments that ties together the multiple component suppliers, would probably come close over

time, but it assuredly is an uphill battle for even the best of them to compete in the short-term.

Therefore, the high price charged for its products also portrays the high quality of its products, for

which customers are willing to pay for.

2.5.3 Promotion:

According to Villing and Company (2011), promotion refers to the act of communicating the

benefits and value of your company's product to their consumers. Apple’s commercial spots are

instantly recognizable by everyone whether you are a fan of their products or not. It is easy to

identify their commercials immediately because of the use of the simplistic approach of the layout

of their product featured on a white background, with catchy music playing in the background,

using the approach ''Less-is-more products, meets less-is-more advertising''. Everything in their

advertisements are visual, and visually plentiful, but not overpowering as some ads can be. When

a new product gets launched, along with the press conference, several major tech blogs and

websites also take part in covering the event. Apple spends half billion dollars annually on paid

media, which is actually lesser than rival brands Microsoft and Dell. However, given the

memorability of Apple’s advertisements, it seems to be more pervasive than it actually is. In

addition, if there was a poster child for the powers of word-of-mouth marketing and brand loyalty,

it would be Apple.

2.5.4 Place

Villing and Company (2011) states, Place is related to the distribution, location and methods of

getting the product to the customers. Apple has adopted a hybrid distribution channel involving an

online store, physical outlets and the retail points of the exclusive mobile service provider and its

online store. Apple recognized that by getting their products used by students, could influence

brand preferences more in the development years of a new generation of computer users. The

most dramatic 'Jobs-led' initiative involved the 4th element of marketing mix “place”, which was

the opening of its now iconic Apple retail stores. Apple expanded its consumer reach by building

numerous new retail outlets, owing and operating around the world in the last ten years. It has also

placed their products from iPods, iPads, and iPhones in about every store that sells electronics

these days. Also, from numerous retail outlets to a great e-commerce website, like Amazon,

Apple's website, making their products as easy to buy for consumers as anything out there today.


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2.6 SWOT Analysis of Apple

It is a method of is a method of analyzing a business, its resources, and its environment.

Figure 6: SWOT Analysis Model

To evaluate the progress, success, and faults of Apple Inc, SWOT analysis is being used. SWOT analysis

is a strategic planning tool which helps to evaluate the strengths, weaknesses, opportunities, and threats of

an organization. It helps in identifying the internal and external areas that needs improvement and internal

and external areas that can be proved successful.

2.6.1 Strengths

According to Slideshare (2012) 'SWOT Analysis for Apple',

Strengths relates to the resources and capabilities that can be used in developing a competitive advantage.

Apple has positioned itself to be a pioneer of producing high tech and innovative products in the

computer (MAC), mobile (iphone) and electronics (ipad, ipod) industry.

It is one of the original hardware producers in the market that controls both the manufacturing of

its products as well as they create their own internal components for the core of its computers.

Apple has a set of standards for high quality products in order to meet customer satisfaction.

It has a strong and dedicated Research and Development department which helps in creating of

new efficient, innovative, compact, user friendly and feasible to use products.

A company known for having the most brand loyal customers who buy their products for quality,

regardless of the high price. Such powerful loyalty of customers means that Apple has a strong

positioning of their brand and that they not only creates new customers but retains them, as they

keep coming back to avail the company's products and services, which also motivates the

company to extend their product line like with the recent introduction of the tablet (ipad).


14

They have a strong presence in the corporate and education segment, with a strong brand name

known globally.

They do smart marketing, that is clever and which takes advantage of customer's frustrations with

other brands products.

Eye catching retail stores with high tech products and providing experiences of Apple's software.

2.6.2 Weaknesses:

According to Knowledge Wharton high school (2012), Weakness relates to the absence of the strength.

Increasing competition in the market, many similar producers of tablets, smart phones and

computers, therefore it may be a difficult task of ensuring consistency and quality for its products.

Failure of notability and lack of promotion of two of their products Apple TV and Mac mini.

Decision to restrict iphone to a single mobile operator (non jail break phones) was an issue in

many countries.

Pressure on Apple to increase the price of their music download files on itunes as many of the

music industry artists make more money from iTunes (i.e. downloadable music files) than from

the CD sales. The company is resolute, and if they start giving it in to for the music producers, it

may be perceived as a commercial weakness.

Premium pricing for all products lose a potential customer base that are price conscious.

Very proprietary and controlling as they have their own operating system (MAC and ios), this

keeps design control inside and up to standards, but it does not have a wide adaptation of its

hardware, especially computers, where it has a relatively small market share. Apple has veto

power over Apps sold.

2.6.3 Opportunities:

According to Muller (2010), Opportunities are the external factors that help in achieving the objectives of

the firm.

Constant growth of the computer, mobile and technology market, allows room for Apple's

products demand in the future.

Growing market of green and energy saving products

Joint venture, to maintain good relationships with companies and to eliminate competition.

More international expansion into the Asian countries.

Market gap, filling it in by introducing new features and technology. E.g. iphone being used by

business professionals more often now due to its new features and functions.

To introduce new line of products related to the same mobile, computers and electronic market but

aimed at the price conscious customers.

The use of Intel chip will allow new machines of Apple to be compatible with Windows

Operation System which can be used to develop iTunes and music player technology to be applied

to a mobile phone. Apple should continue to create such opportunities through new and innovative

software markets in order to strive to introduce its groundbreaking hardware into these markets.

http://wiki.fool.com/How_to_Get_to_the_Break-Even_Point_in_Market_Share%3F?utm_source=Fool&utm_medium=links&utm_campaign=market%20share&source=ihlsitlnk0000001


15

2.6.4 Threats

According to Slideshare (2012), Threats are the external factors that do not support in achieving the

objectives of the company.

High completion in the market with mass existence of technology giants like Microsoft, Dell,

Samsung, HP, HTC, Nokia, Toshiba, etc, making the market highly saturated.

Shifts in consumers tastes from Apples products to other firm's products.

Emergence of substitute products like Samsung Tablet, which has a potential to kill the need of

having a phone along as it allows making calls along with the tablet features.

Increasing trade barriers and introduction of new regulations.

Premium pricing for its products, may not be affordable by all therefore losing vast number of

potential customers.

Global recession as it may reduce wants of the customers.

2.7 Apple's competitive edge

According to Trellian (2012), Competitive advantage is defined as strategic advantage; it is when a

business entity has a benefit over its rival entities within its competitive industry. Achieving a

competitive advantage helps to strengthen and position a business better within the business

environment.

2.7.1 Apple Marketing

According to Rob Enderele (2004), Apple really stands out in its marketing. The company simply

seems to understand what will get people excited about its products and services, then only it

executes on its vision. They don’t talk about features or technology, but about how the computers

will make your life better. Apple has also not been afraid of in-your-face campaigns. The company

has run campaigns that have shown Intel-based laptops catching fire and getting flattened by

steamrollers. Also, the place where Apple puts its logo on its products is unique; on laptops the logo

is right side up when the screen is open. As Apple believes that the logo is not for the person who

bought the computer but for the person who is in the market for one. It is good advertising placement

which should not be a throw-away design element. Apple also does the best placement in the TV

shows which really showcases a logo. Even when the other vendors get a spot, their logos are quite

hard to see, as their logos on laptops do not light.

2.7.2 Apple's hardware and Software

According to Ben Benjarin (2011), the rest of the PC industry is struggling with differentiation,

Apple has had it since day one. Apple is as good of a software company than a hardware company.

Apple makes extremely good hardware as they are the only ones who can make hardware worthy to

run their software. Steve Jobs once stated that, “People who are serious about great software need to

also be serious about great hardware.” This is why Apple makes software that allows to makes

hardware decisions in order to maximize the value of their software. Not only do they make a great

Operating system which sets them apart but also they create extremely good “core” software named

as iLife. Apple’s iLife software is far better than most of the third party softwares used for creating

movies, music, DVDs, etc. Therefore, most of electronics companies are either hardware or software

companies only, they are not both like Apple which makes Apple to stand out among competitors.

http://en.wikipedia.org/wiki/Competitive_advantage

http://techpinions.com/apples-competitive-advantage/5


16

2.7.3 Apple is organized differently from all other competitors

As indicated by Andrea Regnette (2011), All the consumer electronics companies are organized

as Business Units, which tend to be fully integrated with their own R&D and P&L. Usually these

Business Units are in competition with each other and may carry a high risk of weakening the brand

equity and lowering loyalty to any company. Apple on the other hand is organized as being a

company that manages products, not categories. Apple has one R&D base that is common across

most products, and looks at one P&L, despite its huge turnover. As a result, Apple's products are all

fully compatible with one another, accessories can be used on multiple products and in short, and

consumers enjoy a great brand experience. This approach allows customers to have great trust in the

brand.

2.7.4 Apple's retail strategy

Apple has their own retail stores, though many of the companies failed miserably at having their

own stores. However, for Apple this has been one of the most brilliant moves they made. The

reasons that why some other companies tried owning their own stores and failed was due to location

or a lack of priority, but Apple got both of those correct.

Apple had been very careful about how people buy their products, they authorized retailers with

small shops that carried Apple’s products and accessories, also they provided an outlet for support

and repair. They later decided to control the retail experience themselves instead if investing heavily

in external retail experience.

Ben Benjarin (2011), also adds that location plays a significant role; they have their stores located in

malls, as the consumers are already in shopping mode. The location plays well into supporting

Apple's strategy. The fact that consumers can go in and get support or repairs for their products and

then get some shopping done while they wait is a bonus. Primarily it is a priority that Apple places

focus on their retail strategy which has set them apart from those who have tried retail and other

outlets in the past. Apple spends top dollar on the look and the in-store experience and it shows.

However, there is always room for improvement in Apple stores, they have assembled a strong team,

experiment heavily, and listen to customers.

Since, Apple owns their own retail experiences they get a chance to have direct conversations with

their customers and potential customers. This helps Apple to think about future needs of their

customers and how their products can help them to solve current and future problems.

http://www.huffingtonpost.co.uk/andrea-ragnetti/apples-competitive-advant_b_936215.html


17

CHAPTER 3: Methodology

3.1 Purpose of the study:

The main purpose of the study is to attain these research objectives:

To analyze the importance of using a marketing strategies of branding for Apple Inc and to find out

how STP strategies helps Apple's brand.

To find out about the benefits of branding for the company and to find out how branding helps to gain

a competitive edge by differentiating themselves and how it increases customer loyalty and increases

brand awareness.

To find out about the branded product and its related price, promotion and placement and to find out

the strengths, weaknesses, opportunities and threats the company may be facing..

3.2 Type of research

Descriptive Research - According to Ghauri and Gronhaug (2005), descriptive research is conducted for

the purpose of finding answers to the structured questions like, who, what, where, when, why and how. It

helps in clearing the distinctiveness of a population or an observed fact. As stated by Zinkmund (2000),

“descriptive research studies are based on the previous understating of the nature of the research

problem”.

It mainly involves the use of methods like: surveys, observation, secondary data, panels, etc.

E.g. of application: Who are our existing competitors? How strong is our brand image?

Therefore, descriptive research has been used since dissertation requires to answer structured questions

like who, what, where, when, why and how, allowing answers to be distinctive of the observed facts.

Surveys and secondary data is used is mainly used to conduct the research.

3.3 Research Method

The research method used for the research is:

Survey Method

According to Kotler, Armstrong, Ang, Leong, Tan, Tse, (2005, page 119), Survey research is the most

widely used method to collect primary data; this approach is best suited for gathering detailed

information. Survey research is very flexible; it can help to obtain many different kinds of information in

many different situations. Researchers can select target groups for asking questions about their

knowledge, attitudes, preferences and behavior

In order to gather information regarding the marketing strategy of branding in Apple, a survey

questionnaire will be used to collect data due to its flexible property of providing different kinds of data

i.e. both qualitative and quantitative.


18

3.4 Types of data

3.4.1 Primary data – It is the first hand obtained data for any issues or specific information collected

directly through thorough observation and research. (Kotler, Armstrong, Ang, Leong, Tan, Tse, (2005),

Page 118)

Researchers here are using survey (questionnaire) method to obtain the primary data regarding the

respondent's views about using branding strategies and related marketing strategies related to Apple.

3.4.2 Secondary data – It is the second hand data obtained by the use of secondary sources such as

articles, books, journals, internet, etc. (Kotler, Armstrong, Ang, Leong, Tan, Tse, (2005), Page 117)

For the research related to the marketing strategy of branding Apple, the secondary data was collected via

the use of internet (websites, articles and journals) and books mainly. The secondary data collected was

presented in the dissertation in the form of a literature review. The citations and referencing states clearly

from which online websites, published articles or journals the data was collected from. Few of the reasons

that the secondary data was also collected along with primary data were because of its readily available

nature, and it helps to support primary data, making it more specific as it helps to uncover the gaps,

deficiencies and other information that needs to be collected. Also, since it is economical, and saves time,

efforts and expenses, it provides a quicker solution to the problem. The secondary data collected

answered a few questions about what benefits did branding bring Apple, who the competitors are, and

Also, it helped a great deal to get a clearer view of Apple's segmentation, targeting , positioning and

marketing strategies, along with SWOT analysis model that was used to analyze the data. The secondary

data helped a great part in achieving most of the objectives of the research like how primary data did, and

it supported the primary data research thoroughly.

3.5 Target population

The target population that this dissertation is aimed at consists of working people and students belonging

of both sex (female and male).

3.6 Sample size

The sample size chosen for this research consist of 50 people.

3.7 Sampling Method

According to Statpac (2012), there are mainly two types of sampling methods like:

3.7.1 Probability sampling- it is when each sample has an equal chance of getting selected.

3.7.2 Non-probability sampling- It is the exact opposite of probability sampling as the chance of getting

selected is unknown.

Simple random probability sampling (It is the basic method of probability sampling, where each

member of the population has an equal chance of getting selected) along with Non-probability

Convenience (when the most conveniently available sample is selected) and judgment sampling (when

the samples are selected by experts based on their judgment) is used to conduct the survey research.


19

3.8 Data Collection methods:

According to University of Wisconsin (2012), The data collection method used for gathering data for the

research of marketing strategy of branding in Apple is a questionnaire (It is a survey method in which a

set of questions are given to the respondents to fill in, in order to collect data)form. A questionnaire in a

web based form is being used, containing of all close ended –questions with set responses is being used.

(Source:, Accessed: 24th

October 2012)

Perks of using a questionnaire in a web based form are that it is relatively cheap, covers a large

geographical area and takes comparatively less time than other data collection methods.

3.9 Questionnaire design

Like to the web based survey questionnaire: http://obsurvey.com/S2.aspx?id=B7A39096-9CFD-4BE2-

9FFF-B3B2AD11EFF6

The questionnaire mainly consisted of all close ended questions to find the responses suiting the

respondents from the given choices in order to find the exact information required and to minimize the

time required to fill in the survey, with one rating scale question with rating ranging from (1 to 5), in

order to collect quantitative data associated with the research along with qualitative, also rating scales

helps to find the respondents perceptions related to the questions asked.

The purpose of each question added to the questionnaire is described below:

Q1. Name – to identify each respondent

Q2. Email Address – for authenticity of respondents answering the survey

Q3. Gender – to find out the ratio of gender interested in Apple Inc

Q4. Age – to know the age group of respondents interested in Apple Inc

Q5. Monthly Income - to know the income group of respondents buying or interested in Apple, further

indicating their social class

Q6. Are you brand conscious? – to find out about respondents perceptions about branded businesses to

regular businesses.

Q7. Do you think branded products are better than the regular products in the market? – to find

out if using branding strategy helps to differentiate a company's products/services from others.

Q8. What differentiates branded products from regular products? – to find out about the factors

considered important by the respondents when using a branding strategy

Q9. Have you ever heard about the brand Apple? - to discover about the respondents ability of brand

recall, recognition and brand awareness and to find out if branding helps in communication the firm's

mission, vision and objectives to the respondents

Q10. How did you first hear about Apple Inc? - to find out about the success rate of using promotional

marketing strategy

http://obsurvey.com/S2.aspx?id=B7A39096-9CFD-4BE2-9FFF-B3B2AD11EFF6

http://obsurvey.com/S2.aspx?id=B7A39096-9CFD-4BE2-9FFF-B3B2AD11EFF6


21

Q11. a) Have you ever owned one of Apple's products or used one of their services? – to know about

the purchasing power of respondents and success rate of implementing a branding strategy

b) Which products of Apple have you owned? - to find out about the most successful product line

Q12. When thinking about Apple, which of the following do you mainly associate Apple with? - To

find out about the market positioning of Apple over competitors

Q13. What makes Apple's products different from other brand's products? – to find out the success

factor of Apple's products in comparison to competitors

Q14. How would you rate Apple's products and services on a scale (1 to 5), where 5 being Excellent

and 1 being Poor. - To find out about the satisfaction level of the respondents about the overall products

and services of Apple

Q15. What do you think about Apple's products pricing? – To find out if the respondents are

receiving value for money.

Q16. Where do you usually shop for Apple's products? – To find out about the successful

distribution marketing mix strategy

Q17. When buying a smart phone, which brand would you prefer to buy? – to find out about the

positioning of Apple's products in comparison to competitors in the mobile market

Q18. When buying a Pc or a laptop, which brand would you prefer to buy? - to find out about the

positioning of Apple's products in comparison to competitors in the computer market

Q19. Do you think Apple's products should be charged premium for? – to find out respondents views

about the high set price for their products

Q20. Would you have still considered purchasing Apple's products, if Apple wasn't a branded

company? – to find out if branding made a huge difference to Apple's success

All in all, these questions helps Apple Inc to attain the objectives of the research and solve the issues

related to branding and marketing strategies.


21

3.10 Hypothesis

3.10.1

: = 50 % as many respondents prefer branded products to regular products

: > 50% (significantly higher) numbers of respondents prefer branded products to regular products

3.10.2.

: = 80 % of the respondents perceive high quality as being an important factor of branded products

than other factors

: ≠ 80 % (significant change) in the number of respondents who perceive quality as being an

important factor of branded products than other factors

3.10.3

: = 50 % as many respondents think Apple's products deserve to be charged premium for to those

who don’t

: < 50% (significantly lesser) numbers of respondents think that Apple's products deserve to be

charged premium for

3.11 Pilot Survey

It is a preliminary study done before a completing a survey and it helps in testing the effectiveness of the

proposed method. For this research, 2 survey questionnaires were used as pilot survey, filled up by 1 male

and 1 female. Later, due to their feedback and recommendations, few questions were deleted and few

were changed and inserted. Therefore, the result of pilot survey helped a lot in determining the

understanding level of the respondents.

3.12 Limitations and Remedies to overcome them

1. Language barrier as some respondents were not able to fill in the questionnaire due to their limited

knowledge of English.

A translated version of questionnaire can be prepared in few of the commonly spoken languages.

2. A sample of 50 respondents was used due to cost and time restrictions.

A large sample should have been taken in order to minimize response errors.

3. In the web based form of questionnaire, there may be a chance that due to lack of understanding of

few respondents, few guessed answers may have resulted due to lack of personal contact with the

respondents.

Try to supervise the person filling the questionnaire.

4. Time elapse rate was high when receiving back the answered questionnaire, especially since the

questionnaires were mailed to the respondents.

Try to send constant reminders to the respondents to fill in the questionnaire faster.


22

5. Some respondents may not have used Apple's products/services but may have filled up the survey,

just to look smart or well informed.

Try to use quota sampling method.

6. Due to time constraints as a simple random, convenience and judgment sampling methods were used

for the survey.

Try to use more appropriate methods next time in order to reduce randomness and to reach target

audience.

7. Uneven gender distribution due to more convenience of women available and willing to answer the

questionnaire.

Try to distribute questionnaires equally among both men n women.


23

CHAPTER 4: Data Presentation, Findings and Analysis

4.1 Response Rate Graph

The total time it took for 50 responses to get collected for this research was almost 1 month (October 5 –

November 8).

Figure 7: Response graph

4.2 Data presentation, Findings and Analysis

Q1. Gender?

Table 1: Gender

Figure 8: Gender

Figure 7, shows the gender (demographic factor) of 50 respondents who participated in the survey. 64%

female respondents and 36% male respondents, i.e. majority consisted of female respondents.

Frequency Percentage

Male 18 36%

Female 32 64%

Total responses 50


24

Q2. Age?

Table 2: Age

Figure 9: Age

Figure 8, shows that majority 68 % of the respondents belonged to the age group (21-25), along with 22%

belonging to (16-20) and rest minority between 4 %(26-30),6%(31-40) and 2%(Above 40).This proves

that Apples customers mainly consisted of young people.

Q3. Monthly Income

Table 3: Monthly Income

Table 3: Monthly Income (SR)


Below 15 0 0%

16-20 11 22%

21-25 34 68%

26-30 2 4%

31-40 3 6%

Above 40 1 2%

Total Responses 50


Below 1000 17 34%

1000-5000 23 46%

5001-10,000 6 12%

10,000-20,000 3 6%

Above 20,000 1 2%

Total Responses 50


25

Figure 10: Monthly Income (SR)

Figure 9, shows that majority of the respondents income fell into the range of 46% (1000-5000) and 34%

(Below 1000) Saudi Riyals, along with minority 12 %, 6% and 2% falling between the range of (50001-

Above 20,000).Therefore, results also help to possess the social class of majority of the respondents,

which belongs to a lower income group as the research mainly consisted of young people consisting of

students and fresh career starters mainly.

Q4. Brand Conscious?

Table 4: Brand Consciousness

Figure 11: Brand Consciousness

Figure 10, shows that majority (68%) of the respondents happen to be brand conscious, who consider

branding an important factor whereas, minority (16%) were found to be not brand conscious.

Q5. Do you think branded products are better than regular products in the market?

Table 5: Branded products VS Regular products


Yes 34 68%

No 16 16%

Total responses 50


Yes 38 76%

No 12 24%

Total responses 50


26

Figure 12: Branded products VS Regular products

Figure 11, shows that majority 76% perceives branded products as being better than the regular (un

branded) products, and minority 24% thought vice versa.

Q6. What differentiates branded products from regular products?

Table 6: Differentiation between branded VS regular products

Figure 13: Differentiation between branded VS regular products

Figure 12, shows that the factor Quality with majority 86% of the respondents votes was considered to be

the most perceived factor linked with branded products from regular products. The other factors such as

Brand name itself (44%) and Price (38%) were also linked as being important factors, along with minority

of the votes for factors such as, Appearance (26%) and Other (8%).

Q7. Have you ever heard of the brand Apple?

Table 7: Brand Awareness


Brand name 22 44%

Price 19 38%

Appearance 13 26%

Quality 43 86%

Other 4 8%

Total Responses 50


Yes 38 76%

No 12 24%

Total responses 50


27

Figure 14: Brand Awareness

Figure 13, shows that all respondents (100%) have heard about the brand Apple, which shows that the

brand Apple has effective and successful brand awareness.

Q8. How did you first hear about Apple Inc?

Table 8: First heard about Apple

Figure 15: First heard about Apple

Figure 14, shows that the most effective marketing strategy of Promotion, through which the respondents

heard about the brand Apple was Word of mouth (54%) and Internet/Social media (52%) along with other

ways of advertisements like TV advertisements (22%), Newspaper/Magazine (20%), Outdoor

advertisements (14%) , Flyers (4%) and Sponsored events (2%).


Word of mouth 27 54%

Internet/Social Media 26 52%

TV Advertisement 11 22%

Flyers 2 4%

Outdoor Advertisements

(boards/buses)

7 14%

Newspaper/Magazines 10 20%

Sponsored Events 1 2%

Total Responses 50


28

Q9. Have you ever owned any of the Apple's products or used one of their services?

Table 9: Used Apple's products or services

Figure 16: Used Apple's products or services

Figure 15, shows that majority (80%) of the respondents have used and owned Apple's products/services,

with only minority (20%) of the respondents who haven't. Therefore, this proves that Apple's marketing

and branding strategies are quite effective.

Q10. Which products of Apple have you ever owned? (Answer this question)

Table 10: Apple's products/Services owned

Figure 17: Apple's products/Services owned

Figure 16, shows the products/services owned/used by the 80% of the respondents, Majority (62.5%) of

the respondents owned Iphone, (57.5%) owned Ipod and minority (37.5%) owned Ipad and used Itunes

with only (12.5%) used Mac Pc/Laptop.


Yes 38 76%

No 12 24%

Total responses 50


I-pod 23 57.5%

I-phone 25 62.5%

I-pad 15 37.5%

Mac PC/Laptop 5 12.5%

I-tunes 15 37.5%

Total Responses 40


29

Q.11 When thinking of Apple, which of the following do you associate Apple with?

Table 11: Apple's positioning

Figure 18: Apple's positioning

Figure 17, shows how well Apple's positioning strategy implemented, it was noticed that majority of the

respondents associate Apple with All of the above (40%), Smart phone (30%), and minority associations

are made with Music (16%), PC/Laptop (10%) and Other (4%).

Q12. What makes Apple's products different from other products?

Table 12: Differentiation factor of Apple's products from competitors


Smartphone 23 30%

PC/Laptop 25 10%

Music 15 16%

Other 5 4%

All of the above 15 40%

Total Responses 50


Brand name 19 38%

Design/Style 24 48%

Features 21 42%

Technology 22 44%

Price 11 22%

Quality 19 38%

Innovations 15 30%

Total responses 50


31

Figure 19: Differentiation factor of Apple's products from competitors

Figure 18, shows the results of differentiation factors that make Apple unique from competitor brands, it

was noticed that majority of the respondents answered Design/Style (48%), Technology (44%), Features

(42%) as being the top differentiating factors along with other factors like Brand name and Quality

(38%), Innovations (30%) and Price (22%).

Q13. Rating of Apple's products and services [(1 to 5) where, 5 is Excellent and 1 is Poor]

Excellent Good Average Fair Poor Total responses

Frequency 17 26 4 2 1 50

Percentage 34% 52% 8% 4% 2% 1.9% (Average)

Table 13: Rating of Apple's products/services

Figure 20: Rating of Apple's products/services

Figure 19, shows the satisfaction level of the Apple's customers by their products and services, it shows

that majority (52%) of the respondents rated the service as being good with an average rating of 1.9.


31

Q14. What do you think about Apple's pricing?

Table 14: Pricing perception about Apple's products

Figure 21: Pricing perception about Apple's products

Figure 20, shows that majority of the respondents find Apple's pricing as being Expensive (72%), and rest

(28%) find it Affordable with (0%) finding it cheap, which indicates that majority find the pricing to be

high

Q15. Where do you usually shop for Apple's products?

Table 15: Apple customers shopping place

Figure 22: Apple customers shopping place

Figure 21, shows the results of the successful placement marketing strategy, it was noticed that majority

of the respondents shop at Retail outlets (48%) and rest shop at Apple outlets (32%) and Online website

(20%).


Expensive 36 72%

Affordable 14 28%

Cheap 0 0%

Total responses 50


Online (Apple's

website, e-bay,

other)

10 20%

Apple outlets 16 32%

Retail outlets 24 48%

Total responses 50


32

Q16.When buying a cell phone, which brand would you prefer to buy?

Table 16: Preferred cell phone brand

Figure 23: Preferred cell phone brand

Figure 22, shows a competitive brand analysis between the most preferred cell phone brand, it was

noticed that Apple Iphone received majority (42%) of respondents votes, Samsung Galaxy phones (34%)

and minority votes for Blackberry (16%) , Nokia (6%), Other (2%), and )% votes for HTC and LG.

Q17.When buying a PC/Laptop, which brand would you prefer to buy?

Table 17: Preferred PC/Laptop brand


Apple (I-phone) 21 42%

Samsung (Galaxy phones) 17 34%

Blackberry 8 16%

Nokia 3 6%

HTC 0 0%

LG 0 0%

Other 1 2%

Total responses 50


Apple (Macintosh) 19 38%

Dell 15 30%

HP 5 10%

Sony 4 8%

Toshiba 2 4%

Compaq 0 0%

Acer 1 2%

Packard bell 0 0%

Asus 4 8%

Other 0 0%

Total responses 50


33

Figure 24: Preferred PC/Laptop brand

Figure 23, shows a competitive brand analysis between the most preferred PC/Laptop brand, it was

noticed that Apple (Macintosh) received majority (38%) of respondents votes, Dell (30%) and minority

votes for HP (10%) ,Song and Asus (8%), Acer (2%) and Packard bell and Other with (0%).

Q18.Do you think Apple's products deserve to be charged premium for?

Table 18: Premium pricing

Figure 25: Premium pricing

Figure 24, shows respondents views about whether Apple should charge premium for their products, it

was noticed that majority 64% of the respondents think it don't deserve to and the rest 38% thought it

should, which indicates that the respondents may not be getting value for money as there are many similar

competitive brands in the market.


Yes 19 38%

No 32 64%

Total responses 50


34

Q19.Would you have still considered to purchase from Apple if it wasn't a branded company?

Table 19: Branded Apple VS unbranded Apple

Figure 26: Branded Apple VS Unbranded Apple

Figure 25, shows that majority (52%) of the respondents would have still chosen Apple if it was not a

branded company, and rest (48%) would not have chosen Apple if it wasn't branded. The results are quite

controversial as they are quite close to each other and the majority of the respondents, who may have still

bought from Apple, are the respondents who are loyal to Apple's products, which in a way are brand

loyal.


Yes 26 52%

No 24 48%

Total responses 50


35

4.3 Hypothesis:

4.3.1

: = 50 % as many respondents prefer branded products to regular products

: > 50% (significantly higher) numbers of respondents prefer branded products to regular products

Rejection region: Reject , Accept

Acceptance region: Reject , Accept

Figure 27: One tailed (significant increase) test

Test level= 5%

Critical z-value >1.65

Table 20: Branded products VS Regular products

Ps =

= 0.76

Test statistics z =

=

=

= 3.66

Location of test statistics: Rejection region

Therefore, Reject , Accept as there is sufficient evidence to indicate that there is a significant

increase in the number of respondents who prefer branded products to regular products.


Yes 38 76%

No 12 24%

Total responses 50


36

4.3.2

: = 80 % of the respondents perceive high quality as being an important factor of branded products

than other factors

: ≠ 80 % (significant change) in the number of respondents who perceive quality as being an

important factor of branded products than other factors



Figure 28: Two tailed test

Test level= 5%

Critical value: Zc < -1.96 or Zc > 1.96

Table 21: Quality VS other features

Ps =

= 0.86

Test statistics z =

=

=

= 1.05

Location of test statistics: Acceptance region (z=0)

Therefore, Reject , Accept as there is sufficient evidence to indicate that there is a significant change

in the number of respondents who perceive Quality as being an important factor of branded products.

Therefore, more than 80% perceive quality as an important factor of branded products.


Brand name 22 44%

Price 19 38%

Appearance 13 26%

Quality 43 86%

Other 4 8%

Total Responses 50


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4.3.3

: = 50 % as many respondents think Apple's products deserve to be charged premium for to those

who don’t

: < 50% (significantly lesser) numbers of respondents think that Apple's products deserve to be

charged premium for



Figure 29: One tailed (significant decrease) test

Test level= 5%

Critical z-value < -1.65

Table 22: Premium pricing

Ps =

= 0.38

Test statistics z =

=

=

Location of test statistics: Rejection region

Therefore, Reject , Accept as there is sufficient evidence to indicate that there is a significant

decrease in the number of respondents who think that Apple's products deserve to be charged premium at.


Yes 19 38%

No 32 64%

Total responses 50


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4.4 Summary of the survey findings

After analyzing the survey findings, it was found out that more women than men bought from Apple.

Most of the respondents were young, belonging to a low income group as most of them were students or

fresh career starters. Most of them were brand conscious who perceived that branded products are better

than regular products, as they offer better quality products. They mainly liked to shop for Apple’s

products at retail outlets. Majority of them first came across Apple through word of mouth, which may be

due to a recommendation received from a friend or family. They associated the brand Apple with almost

everything like smart phones, PC/Laptops, music and other technological items.

The findings also highlighted few problems that Apple maybe facing, like:

1. High prices and High competition: Most of the respondents find Apple’s pricing to be high and they

do not prefer to pay premium for their products due to the availability of similar kind of competitor’s

products existing in the market.

2. Fewer store outlets – as Apple stores are located mainly in public places like malls, technology streets,

etc., for many customers they are not easily accessible.

3. Lack of promotion – for some products like Apple TV very less promotion is being done.

4. Existence of similar products in the market produced by competitive brands, which can easily be

substituted by the customer.

5. Other problems and threats have been mentioned in the literature review through secondary data

information in the form of Weaknesses and Threats, while doing SWOT Analysis.


39

CHAPTER 5: Conclusion and Recommendations

5.1 Conclusion

The main aim of the dissertation was to conduct a study on the marketing strategy of branding in Apple.

The study helped apple to find out more about the segmentation, targeting, positioning, branding

strategies and marketing mix strategies. Furthermore, a SWOT analysis was done to recognize the

strengths and weaknesses of Apple along with the opportunities and threats that the company may be

facing. The analysis helped Apple in identifying the success factors that will help in gaining a competitive

edge; allowing it to increase profit, brand power and customer loyalty proving it to be a well-known,

leading and a successful company in the saturated technology industry. Survey findings were made to

find if the marketing strategies of branding are proving to be effective or if any changes are needed to be

made in the future. The literature review consisting of the secondary data and the descriptive survey

research consisting of primary data, they both helped in fulfilling the objectives of the dissertation, which

helped in conducting a study on the marketing strategy of branding, by recognizing the problems that

Apple maybe facing in order to improve or eliminate them.

5.2 Recommendations

5.2.1 Provide value for the products offered

If a perception is created that Apple is offering its customers with fine products with premium quality in the

industry, which is not being offered by others; than Apple should be able to differentiate themselves from their

competitors in order to still keep premium pricing for their products.

5.2.2 Conduct more aggressive promotion

Increasing promotional programs never proves to be damaging for any firm, but only proves to be beneficial,

it not only helps to attract potential customers, but also new customers boosting customer traffic and sales.

Apple should also start creating 'TV commercials', in such a way that educate the customers about the latest

technological product, making it seem more appealing. Also, they should start focusing on advertising all

products not only new products in order to meet the sales target for all products.

5.2.3 Make maximum innovations

Technology market is a highly competitive market, it’s very easy for competitors to clone your products

and sell as new products by making small innovations. Therefore, it has become very important to keep

making constant innovations in design, features and specifications in order to differentiate your product

from competitive brands and to be able to dominate the market.

5.2.4 Offer price reduction offers from time to time

Instead of not charging premium, price reductions, free gifts, vouchers, VIP cards, etc. can be made for a

limited period of time, to allow customers to buy from Apple more often. Thus, this may help Apple to attract

new target group customers increasing its fan base, along with sky rocketing its brand loyalty and sales.

5.2.5 Open more Apple outlets in different areas

Since Apple relies on online, direct and retail distribution methods, it’s important for Apple to expand its

direct reach through its own stores and retail stores by locating stores in a more reachable district, like

residential areas so that people can have an easy access to the stores.


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5.2.6 For further recommendations refer to 'opportunities for Apple’, which were identified on page 16 of

chapter 2 (Literature review)


41

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A study on the marketing strategies of Apple Inc (Dissertation)

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