APPLE INC.

Byte into an apple

PRESENTED BY

Nabeel Waris Kidwai B-33

OBJECTIVES

• PRIMARY OBJECTIVES: » To understand the evolution of Apple Inc.» To understand the marketing strategies of Brand

Apple» To evaluate the Niche segment of customers and

consumers of Apple Inc.

• SECONDARY OBJECTIVES:To critically evaluate the market of Computer software,

computer hardware and consumer electronics with special reference to the product verticals of Apple Inc.

RESEARCH METHODOLOGY

• RESEARCH DESIGN : EXPLORATORY RESEARCH DESIGN

• SAMPLING: Not needed as the Project was Secondary Data Based.

ABOUT COMPANY

April 1st,1976 - Founded

January 3rd,1977 - Incorporated

Headquarters - Cupertino, California

Co-founders - Steve Jobs, Steve Wozniak

CEO - Steve jobs

Industry - Computer software, computer hardware, consumer electronics.

Revenue - US$ 19.3 Billion

PRODUCTS AND FIGURESHardware - Mac(personal computer series),Apple Remote Desktop

Software - Mac OS X, Mac OS X Server ,Quick Time, i Life, i Work, Logic pro, Cinema Display etc.

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

Employees - 19,787 full-time ; 3,399 temporary (March 31,2007)

Retail stores - 183( 1st in Manhattan, New York)

Competitors - HP, IBM, DELL

PRODUCTS

Marketing Strategies of APPLE Inc.

“ THINK DIFFERENT “ :

• "Think Different" is an advertising slogan created for Apple Computer in 1997 by the Los Angeles office of advertising agency TBWA\Chiat\Day. It was used in a famous television commercial, several print advertisements and a number of TV promos for Apple products. Apple's use of the slogan was discontinued with the start of the Apple Switch ad campaign in 2002. The slogan may have been a play on the venerable IBM Think motto coined by Thomas J. Watson

• Television commercials

• Significantly shortened versions of the text were used in two television commercials, known as "Crazy Ones", directed by Chiat/Day's Jennifer Golub

Print advertisements

• Print advertisements from the campaign were published in many mainstream magazines such as Newsweek and Time. Their style was predominantly traditional, prominently featuring the company's computers or consumer electronics along with the slogan.

• Advertising of the ‘ REVOLUTIONARY ‘ iPOD

Reception and Impact• Upon release, the "Think Different" Campaign proved to be an enormous success

for Apple . Critically acclaimed, the spot would garner numerous awards and accolades, including the 1998 Emmy Award for Best Commercial and the 2000 Grand Effie Award for most effective campaign in America.

• In many ways, the new ad campaign would mark the beginning of Apple's re-emergence as technical giant. In the years leading up to the ad, Apple had seen many of even its most staunch supporters switch over to other competitors in the market offering more sophisticated and better equipped processors. Even worse, the company had lost hundreds of millions of dollars due to the failure of Apple Newton, a billion-dollar project that proved to be critically, and commercially, unsuccessful. Appealing to the "counter-culture" image Apple had gained in its earlier years, the "Think Different" campaign, along with the return of Steve Jobs, put a bright spotlight on the company and consequently on many of the new products that were being announced, chief among them the immensely successful iMac personal computer and later the revolutionary Mac OSX operating system

SWOT ANALYSIS

STRENGTHSOne of the oldest hardware manufacturers.

Control over the product.

High quality product.

Easy to carry products

Huge consumer base loyal to apple

Product diversification

WEAKNESSESFocusing on internal engg. more than marketing

High price

Consumer faced problems with faulty batteries

Had difficulties on some of its products’ quality control

Not issued dividends

SWOT ANALYSIS

OPPORTUNITIES

Less expensive new product lines with quality.

Product line is functional and attractive.

Flexibility to its users.

ipods are able to communicate.

New car models with ipod connectivity.

THREATSPressure from competitors.

Substitution effect

Technology changes at a rapid rate.

Forced to develop new products.

EXISTING RIVALRY

Windows OS and media player for playing music and video ( Microsoft)

Competition to Mac OS X (Linux)

Alternate sources of computer hardware (Dell, HP, Lenovo)

Small stylish MP3 players (Creative, Samsung)

Online music stores similar to itunes stores (Napster)

THREAT OF NEW ENTRANTS AND

THREAT FROM SUBSTITUTESStreaming audio and video with v-cast (Verizon)

On demand online services (similar to i-tunes)

New entrants with disruptive technology (The “next google”)

Satellite radio for music (XM, Sirius)

Entertainment media, media and music (XBOX, PS2)

Alternative means to acquire music (Music CDs, DVDs)

Alternative sources for videos (Cable, Broadcast, Theatres)

RECOMMENDATIONS FOR COMPANY:

Lowering the cost of products and maintaining the same quality standards

Can form joint – ventures

Knowledge Management

More number of retail stores for easy access

Continuous innovation to expand

FOR OTHERS:Do not compromise on price for quality

Choose the products based on individual needs

Be unique and different

LIMITATIONS OF THE PROJECT

Time frame for completion of the project was limited to a very short span.

Apple inc. was not approachable for the critical comments on their marketing strategies because of their Data Sharing policies.

Being a Secondary data based Report the Direct connect with Consumers was missing.

THANK YOUMOVING AHEAD WITH UNIQUENESS