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SOME PEOPLE:

MAKES THINGS HAPPEN – THEY BUILD RAILROADS

PARTICIPATES WHEN THINGS HAPPENS – THEY RIDE THE TRAIN

WATCHES OTHERS PERFORM – THEY WATCH THE TRAIN PASS


BY

WONDER IF THERE ARE ANY NEW TRAINS RUNNING – THEY


JUST MISSED IT
ABOUT COMPANY
April 1st,1976 - Founded

January 3rd,1977 - Incorporated

Headquarters - Cupertino, California

Co-founders - Steve Jobs, Steve Wojniak

CEO - Steve jobs

Industry - Computer software, computer hardware, consumer electronics.


VISION AND MISSION
VISION
“Man is the creator of change in this world.
As such he should be above systems and
structures, and not subordinate to them.”
 MISSION
“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.”
PRODUCTS AND FIGURES
Hardware - Mac(personal computer series),Apple Remote Desktop

Software - Mac OS X, Mac OS X Server ,Quick Time, i Tunes, i Life,


Programming language LOGO etc.

Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV

Online stores- i Tune store( 2nd best behind Walmart)

Apple Care customer service centre, Apple Care Support

Retail stores - 200( in 6 countries)

Competitors - IBM, Microsoft Windows


PRODUCTS
Core Competencies
• Differentiation

• Value Creation

• Innovation

• Quality
5 C’s
• Customer- Transcends across all ages
• Company Skill- Innovation, Differentiation
• Competitors- Dell, IBM
• Collaborators- Nike, Century Fox, Disney
Studio’s, EMI
• Context-
SWOT ANALYSIS
STRENGTHS WEAKNESSES

High quality product. Focusing on internal engg.


more than marketing
Easy to carry products
High price
Huge consumer base loyal
to apple
Had difficulties on some of
Product diversification its products’ quality control

Control over products


SWOT ANALYSIS
OPPORTUNITIES THREATS
Less expensive new product No market research
lines with quality.
Technology changes at a
rapid rate.
Flexibility to its users.
Forced to develop new
Entering countries like products.
India, China
Overburden of expectations
PORTER’S FIVE FORCES MODEL
LOW
Threat of
new
entrants

HIGH

Competitive
Bargaining power of Bargaining power of
Rivalry within
suppliers customers
the industry
VERY INTENSE
LOW

Threat of
substitutes
VERY HIGH
THREAT OF NEW ENTRANTS
Streaming audio and video with v-cast (Verizon)

On demand online services (similar to i-tunes)

New entrants with cheap alternatives. ( Sony


Walkman series)

New entrants with new technology. ( Sony Mp3


players with Bluetooth technology)
BARGAINING POWER OF SUPPLIERS

Suppliers of processors and computer memory (IBM,


Intel)

Supplier of tv and movies (Disney, ABC, Fox, Sony)

Sources of music (BMG, Sony, Warner, Universal)


BARGAINING POWER OF CUSTOMERS

Customers share music using peer-to-peer networks


without paying for music (Ares, Limewire)

Retailers may pressure for lower prices or better terms


(Distributors)

Consumers/Businesses may reduce spending on


computers if they fear economic downturns (Consumer
Attitudes & Behaviors)
THREAT FROM SUBSTITUTES
Satellite radio for music (World-Space Radio)

Entertainment media, media and music (XBOX, PS2,


Mp3 players)

Alternative means to acquire music (Music CDs,


DVDs)

Alternative sources for videos (Cable, Broadcast,


Theatres)
The Journey Towards………..

The
The Most
Most Admired
Admired Brand
Brand

Most Successful Integrated


Marketing Strategies

Customer Employee Social


Excellent
satisfaction benefits concern
product
HARDWARE:
• 1977-launched Apple-II microcomputer
 Differentiation By :Technology(Color graphics and open architecture)

• 1983-84- introduced LISA 1st commercial PC with graphical user


interface and targeted schools by adapting LOGO language

• 1990s - market share decreased due to rivalry from microsoft


and IBM PCs

• 1997- introduced Apple store, an online retail store


 Facilitated customers , more purchase options
SOFTWARE:
• 2000s- expanded focus on software and promoted its
products as “ digital hub”
Introduced its own OS and continuous improvements and value
addition was done

CUSTOMER RETAIL EXPERIENCE :


• 2001- launched first official retail store

Hardware software user experience of a retail environment


• 2001- launched iPod
Factors of success for iPod
- Slick design
- Timing the market
- Collaboration with music industry
- Ease of use
- Many innovative versions with attractive features
 iPod was the market leader with 73% market share in
portable music player
• Change of name from Apple Computer, Inc. to Apple Inc.
• Another innovative milestone- iPhone, launched in 2007
 The innovations ( product enhancement)made in iPhone
helped company to maintain its top position-75% of market
share

• Customer care:
AppleCare- to meet need of individuals and business
Apple’s self-servicing account program- for institutions and
businesses for repairing only their own products
Apple’s service provider program- for resellers and service
provider offering services to Apple customer
• Employee Benefits:
- Supports diverse group of people on campus
- Offers Flexi-programs for employees
- E.g. FlexiBenefit program, FlexiDollar program
- Excellent Training and Development including four categories:
‘Offer or Efficiency’ program
‘business driven needs ’program
‘Personal development’ program
‘ General awareness ’ program
• Thrive to become greener Apple:
- Being critisised for not being leader in removing toxic
chemicals and not properly recycling
- Investigating its current practices
- Four main areas of attention are: product and packaging
Responsible manufacturing
Energy efficiency
Recycling
PERCEPTUAL MAPPING
Highly innovative,
High quality

Microsoft
Apple

Fashionable, User friendly


Young , up-to-the-minute

Sony
Less innovative,
Moderate quality
Market Growth BCG Matrix

H
I PAD I PHONE 3G
I
G
I POD TOUCH MAC BOOK PRO
H
I POD NANO

10
I SUCK
I POD SHUFFLE

L QUICK TAKE-
IPOD NANO
O CAMERA
W MAC
EAR BUDS
NOTEBOOKS

LOW 1 HIGH Relative market share


Effective strategies to create Loyal Customers

Customer
Repurchase
• Innovation Loyalty
• Complete Solution:
Apple’s products complement and complete each other
e.g. Buy an Ipodand music can be downloaded via iTunes

• Varied Products:
Many customers may not ready to buy an Apple computer, but they are
willing to give gadget like iPod and iPhone a try

• Proprietary formats:
Products are often not compatible for use with other systems ; hence
costumers not likely to go for other product

• Products that deliver:


Careful consideration for what consumers are looking for . The products
are a result of extensive research and strong design
• Consistency:
All the products have the basic Architecture and fulfil customers
expectations everytime they purchase and this makes their
purchase and Re-purchase decision easy

• New innovations:
Though the Architecture of the products is consistent, its portfolio
is not. Occupies place in living rooms ,pockets, offices of
customers, making it easy to stay loyal to the brand they already
use

• Attractiveness :
Form packaging to easthetic design to user-interphase experience,
Apple makes it product attractive and accessible
STP
• Segmentation –
– Psychographic
• Lifestyle
• Personality
– Behavioral
• Loyalty status – Strong
• Attitude towards the product
• Benefits : Quality
Target Market
• Middle/Upper income folks who are willing to pay a bit more for a
better user experience.  

• People who like to have fun with technology. No other platform


offers as many entry level tools (the whole iLife bunch and more).
 
• Music enthusiasts and fans ages 12-35. 

• Craative professionals in media and design. 


STP
• Positioning

• Frame of Reference –
Technology (e.g IBM , Sony)

• Point Of Difference –
– Eg- iPhone – “All in one” features
STP
• Positioning Options –
– Image/Personality Positioning – Justin Long
– Quality Positioning
STP- Positioning
PRODUCT POSITIONING STRATEGY
• Positioning Multiple Brands
– Mac Book
– ipod
– Iphone
– Mac mini
• Position Defense Strategy- occupies the most
desirable position in customer’s mind ,makes
brand almost impregnable
Pricing Strategy
• Price Skimming
• Eg: June 2007, Apple introduced 8 GB and 4
GB i-Phone for $ 599 and $ 499 respectively
but after the success Apple discontinued the 4
GB variant and continued its 8 GB variant at $
399. They first charged premium price and
skimmed the market but later reduced the
price.
PRODUCT SCOPE STRATEGY
• A company with a single product has nowhere to go
if that product gets into trouble.
• Multiple products
– Technologically Related products
PRODUCT-DESIGN STRATEGY

• Standard products
• People driven – Aims at removing complexity
from people’s life
• Eg-iPhone
PRODUCT – ELIMINATION STRATEGY

• Sick products should be eliminated.


• Apple’s Eliminated Products –
– Apple discontinued less expensive $499 (4GB)
iphone model
– Dropped iPod mini
– QuickTake
– Earbuds
NEW PRODUCT STRATEGY
• Product Innovation Strategy
– satisfy a need in an entirely different way.
Apple Computer Apple II LISA
1976 Microcomputer 1983
1977

Powerbook line
of Computers Macintosh
1991 1984
NEW PRODUCT STRATEGY
• Apple leads the computer industry in
innovation.
• New innovations
– iPhone – New market & business for Apple in the
Smartphones market
– iPod touch – New segment of buyers in MP3
players market
DIVERSIFICATION STRATEGY
• Concentric Diversification
– Synergy with existing business
– Providing overall digital end-to-end experience
RECOMMENDATIONS
Lowering the cost of products and maintaining
the same quality standards

Market Research

Continuous innovation to expand

Outsourcing of work
What the experts say…..
Gene Munster of Piper Jaffray- says, “ Apple will
have lots of competition in the movie rental
arena, but Apple is setting the table for the
consumer movie experience for the next 25
years. The set top box introduced by Apple in
2007, delivered video and other multimedia
content from the PC to a television”.
Steve Jobs Says, “ We realized that for almost all
future consumer electronics, the primary
technology was going to be software and we are
pretty good at software. We could write
applications like iTunes on the Mac or even PC.
We could write the software in the device, like
you might put in an iPod or an iPhone. And we
could write the back-end software that runs on a
cloud , like iTunes.”
Presented by
• Vrushali Parab 71
• Girish Punjabi 75
• Hitesh Shah 94
• Mugdha Shelatkar 102
• Aditya Sinkar 106

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