Marketing mix of Apple iPad

Renzil D’cruz

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What Does Apple Do?

• Apple is an innovative company that manufactures, markets, and sells many kinds of consumer electronic devices.

• Apple has developed a series of computers, phones, portable media players, software, and many other products that have advanced technology from what it used to be, as well as creating new needs from the consumers.

iPad

• The iPad is a line of tablet computers designed and marketed by Apple Inc.

• which runs Apple's iOS operating system.

• The first iPad was released on April 3, 2010;

• fourth-generation iPad and iPad Mini, were released on November 2, 2012.

Slogans use too attract audience iPad

• "The iPad is..." (2010) Used in the iPad TV ads.

• "A magical and revolutionary device at an unbelievable price." (2010) Used on apple.com and Keynote to promote and introduce the new iPad.

• "Thinner. Lighter. Faster. Facetime. Smart Covers. 10 hour battery." (2011) Used on apple.com to promote and introduce the iPad 2.

• "Now with iOS 5 and iCloud, it just got even harder to put down." (2011) Used to promote iOS 5.

• "Resolutionary" (2012) Used to promote the new iPad and its Retina Display.

• "Every inch an iPad" (2012) Used for the iPad mini launch.

• "Just as stunning. Twice as fast." (2012) Used to promote the 4th generation iPad.

iPad mini

• "Every Inch a cool iPad." (2012) Used to introduce the iPad mini at the Keynote, online, and on TV

• "There's less of it, but no less to it." (2012) Used to promote it on the website of Apple

How is the price of iPad determined?

• Determined by the interaction of supply and demand curve

• Intersection between these two curve provides us with the equilibrium point

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Cost of iPad Type cost

iPad mini iPad 2 iPad(with Retina display)

Wifi 16GB $329 32GB $429 64GB $529

16GB $399

16GB $429 32GB $529 64GB $699 128GB $799

Wifi+Cellular 16GB $529 32GB $559 64GB $629

16GB $529

16GB $629 32GB $729 64GB $829 128GB $929

Gradient on X-axis and Y-Axis

Gradient of demand curve

• Many substitutes of iPad available

• Large proportion of income spent (around $SGD 600-900)

• Luxury good

• Demand for iPad is price elastic

• Gradient – Gentle

Gradient of Supply curve

• Easily stored

• Luxury good

• Easily transported

• Supply for iPad is price elastic

• Gradient- Gentle

Sales of iPad

Renzil D’cruz

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Model iPad (1st

generation) iPad 2

iPad (3rd

generation)

iPad (4th

generation) iPad Mini Status Discontinued Available Discontinued Available Available

Announcement date

January 27,

2010 March 2, 2011 March 7, 2012

16, 32, 64 GB:

October 23, 2012

October 23, 2012

128 GB: January

29, 2013

Release date

April 3, 2010

March 11,

2011 March 16, 2012

16, 32, 64 GB:

November 2,

2012

November 2,

2012

128 GB: February

5, 2013

Discontinued

March 2, 2011

32, 64 GB: March

7, 2012

October 23, 2012 In production In production

16 GB: In

production

Timeline

Target Market • Music Market

• Live Concert

• Music Video

• More extensive music information available

Through iTunes, its market can be grow able.

More Big Size Screen, More Powerful Sound!

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Movies Market

• Making new Video Market area

– DVD at home

– iPad@everyplace

Also through iTunes, its market can be growable.

Enough size watching & feeling

TV market

• There are many cases to use computer, which only displays PPT or image Slideshow.

Intuitive Interactive Touch demonstrating is available.

Natural VOD device

Newspaper/Magazine Market

• comportable size to read

• Easy to scrap & share

• NY times already made App for iPad

Paper Media can have more subscriptors Through iPad (more subscriptors, more money)

Natural size READING!

Book Market

• ePub baed iBooks market is opened.

• Through iTunes and iBooks App, anytime users can download and use it.

• Kindle are in danger?

– Penguin, Macmillion, Simon & Shuster, HarperCollins, Hachette Book Group are contracted. Will be more.

Game market

• Need for speed, Nova for iPad is revealed.

– It’s real Realistic. People with cheered in the show.

Like Nintendo DS, PSP, Now PS3, XBOX are in danger.

Dynamic & Powerful

What iPad users do?

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SWOT Strengths:

• Products/Branding

• Marketing/Advertising

• Ease of Use and Quality

• Strong Brand Name For iPad

• Brand perception

• Innovation and Improvement

Weaknesses:

• Non-Compatibility

• Price

• Proprietary

Opportunities:

• Stock Investments

• Jobs-Moving Up

• Trend

Threats:

• Copy-Cat Products/ Competitors

• Market Share-PC’s

• Too Broad

• Low cost Product

Renzil D’cruz

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Renzil D’cruz

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Rank Vendors 2011

Shipments

Market

Share

2012

Shipment

Market

Share

2009/200

8 Growth

1 HP 18,781 26.9% 16,218 24.7% 15.8%

2 Dell 17,099 24.5% 19,276 29.4% -11.3%

3 Acer 7,983 11.4% 6,106 9.3% 30.7%

4 Apple 5,579 8% 5,158 7.9% 8.2%

5 Toshiba 5,379 7.7% 3,788 5.8% 42%

Renzil D’cruz

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Conclusion In the short run..

• Decrease the price of iPad

• Marketing of iPad is now vital due to changes in consumer taste

• Establish the uniqueness of the iPad as compared to other goods such as the Samsung Galaxy tab

• Increase demand which leads to increase in profits for producers

Renzil D’cruz

http://RenzilDe.com/ http://about.me/renzilde

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In the long run… • Aim of producers is to

maximise profit

• iPad market is reaching its optimum

• Decline sets in after optimum due to presence of better products and changes in consumer taste.

Renzil D’cruz

http://RenzilDe.com/ http://about.me/renzilde

http://linkedin.com/in/renzilde

Thank You. • Questions ???

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Thank You. • Questions ???

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• Concerns !!!

Thank You. • Questions ???

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• Concerns !!!

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