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Tablet PC’s have been around for a long mime, but what makes the pad different from the other market offerings? What strategy does Apple have In place in order to make this a runaway hit like Its Phone and Pod product lines? We’ll use the marketing mix (4 Up’s) to see how Apple strategists Its goal to make the Pad a bestseller. To produce the response it wants in the target market. Price, product, place and promotion are the 4 Up’s or components that make up a marketing mix. Product Apple sells a variety of electronic devices. In 2010, Apple introduced their first tablet, pad. ‘pad is a tablet device that has several features.
It looks like a bigger phone or pod Touch and possess a led touch screen interface. Its dimensions are 9. 56 in x 7. 47 in. It is also very thin and has a battery life often hours. This product has the ability to surf the internet, listen and purchase music, watch videos, view photos, read e-mail, read and purchase e-books and execute multiple applications. In fact, the multiple applications available for the phone will be fully compatible with the pad! There will be different versions of the pad at launch with different hard drive capacities and g capability. There will be a 16 B, 32 B, and 64 GAB variants.
Also all pads will have Wi-If and are wireless-n capable. The pad will also feature the latest Bluetooth profile and will have an on-screen keyboard for inputs. Price The base model of Pad (16 B) without g capability is the cheapest at $499, 32 GAB at $699, this is I pad and I phone 5 prices and 64 GAB will retail for $699. If a customer wants 36 capability they will have to pay an additional $130 on top of the base price. The consumer also has the option to sign up for AT;T data plan that allows them to have access to the internet virtually anywhere and in areas without Wi-If connections.
The data plan is two tiered: the customer has a choice between $14. 99/ month for iamb and $29. 99/month for unlimited access. The data plan will also allow the consumer to access various AT;T hotshots for free. Unlike the phone, the customer will not be locked into multi-year contractual obligation and they can terminate it at any time. As far as discounts go, Apple is known for charging higher, premium prices however, they usually offer $100 off certain products to college and University students. They also do special bundles for purchasing certain products during different times of the year.
For example, I purchased a Macro Pro during the summer and they had a promotion that gave me a free pod and a free printer plus the $100 discount because I was a University student. They have done the same promotion for the previous two years as well. Place There are multiple Apple stores across the Australia, 20 of them, in which all the apple products will be sold. Apple’s retail stores ensure high quality customer experience; provide direct contact with knowledgeable staff and increases brand awareness.
Customers can also purchase the products online in Apple’s official website. Best Buy, one of Apple’s partners, also sells Apple products and also has a large retail footprint in the Australia. Amazon, one of the largest online retailers, also carries Apple products. Apple should gauge consumer demand and produce enough Promotion In the past two decades, Apple has become well known for its advertisement. Its most significant ad campaigns include the “1984” Super Bowl commercial, the sass Think Different campaign, and the “pod people” of the sass.
Other than that Apple Inc. Also held press conference to before each products launch debut the products. Several of the major technology, forums and websites also invited to cover the event. Given Apple’s track record of heavy promotion and advertisement of its marquee products, the future apple new product has a high probability of getting the same advertising treatment. The Mac, ‘phone 5 and pad is already highlighted on the front page of Apple website and the hour long keynote by Steve Jobs regarding the Mac, Phone 5 and pad are also available on the website.
Soot Analysis Strengths * Apple is leading innovator in electronic device technology * Customer loyalty * Good products reputation * Strong financial performance * Strong arresting and advertisement teams I Weaknesses * High price * Incompatibility with different operating system * Further changes in management * Defect of new products * Decreasing market shares I – Opportunities * High demand of pad mini and phones * TV launch * Growth of smartened and tablet markets * Strong growth of mobile advertising market * Increasing demand for cloud based services I Threats * Rapid technological change * Tax increases * Price pressure from * Rapid growth of Android operating system * Strong dollar * Samsung Competitors move in online music market Strengths Apple is leading innovator in electronic device technology Company’s core competency of producing innovative products is the strength the company builds upon and is able to bring the most innovative products to the market. Apple has been awarded the most innovative business in the world’ for the 3rd time in 2012. * Customer loyalty Apple is supported by strong customer loyalty. * Good products reputation Apple’s products are well known for its high innovation, design, function and its excellent business performance. Apple brand is now is the second most valuable brand in the world. * Strong financial performance Apple has a strong financial performance.
Company currently holds about $10,000,000,000 in cash, which can be used for acquisitions, buying back company shares and other matters. It also has higher gross profit margin than its main competitors. Company has currently no debt and is not directly affected by interest Apple has strong marketing and advertisement teams. Strong marketing and advertisement strategies can increase their sales, build superior stores and advertise their products. Weaknesses * High price Apple’s products are generally too pricey. It cost much more than its competitors devices. When there’s such a fierce competition, Apple products price becomes a weakness because consumers might go for similar quality but lower price products. Incompatibility with different operating system The ISO and SO X are quite different from other operating systems and apple’s software is unlike the software used in Microsoft operating system. Most of the users are more familiar with Microsoft’s operating system so they often choose to stay with their accustomed software and hardware. * Further changes in management Tim Cook became the new Apple’s CEO after Steve Job passed away last year. Two hive of retail, Scott Forestall and John Browbeat also decided to left the company and this will have an impact on company’s management. * Defect of new products Some of Apple’s products releases had clear faults and it might affect the sales of the products and company’s reputation of superior product performance.
Although this is not Apple weakness yet but one day it might eventually Jumps out time to time. * Decreasing market shares The less market share Apple has, the harder to persuade its potential customers to jump into using Apple’s closed ecosystem products. Opportunities * High demand of pad mini and phones After pad mini launched, its sales increased Apple’s market share in the tablet market and strengthened its competitive advantage. * TV launch ‘TV launch will support the sales of Apple TV. * Growth of smartened and tablet markets As more and more people start using smartened and tablet, it created a good opportunity to expand company’s share in these markets. Strong growth of mobile advertising market Apple has developed Ad advertising platform, which allows advertising on Apple phone, pad and pod touch. * Increasing demand for cloud based services Apple could expand its range of cloud services and software as cloud-based reveries is highly in demand. Threats * Rapid technological change Due to the rapid technological change companies are under the pressure to release new products faster and faster. The one that cannot keep up with the competition soon fails. This is especially hard when a company like Apple that always introduce but for the moment. * Tax increases The increase of tax will negatively affect Apple Inc. * Price pressure from Samsung Samsung has already asked Apple to pay higher price for its application processors.