final project apple marketing plan

Apple is also working on new technology concepts such as the iPhone, Apple TV, and many features of its upcoming operating system, Mac OS X "Leopard." For the first 30 years, the corpora

DAI HOC QUOC GIA HA NO!

TRUONG QUOC TE

VNU-INTERNATIONAL SCHOOL

SUBJECT: PRINCIPLE OF MARKETING COURSE CLASS: INS200303 PROFESSOR: Nguyen Thi Huong Ly

FINAL PROJECT APPLE MARKETING PLAN

2 The development process of Apple

3 The visions and missions

Il: Apple marketing Strategy & Marketing Mix (4Ps)

IV Macro environment

I, Executive summary

In the previous 10 years, Apple Inc has become one of the most well-known businesses Apple has not just created and sold excellent products new importantly, the company has been working hard to create a fantastic platform and environment for its loyal users, from which it can offer new applications and services Some product sales are dropping, either as markets mature (e.g., smartphones) or as the industry as a whole falls (e.g., music players and computers) Apple is up

against well-known and well-funded companies such as Alphabet, Samsung, Amazon, and HP, as

well as newcomers from China like Huawei and Xiaomi

II Introduction of the company

1 Introduction

United States that specializes in the design and manufacture of consumer

California, and the company develops, sells, and supports a variety of personal computers, portable media players,

computer software, and computer

hardware accessories Apple is also working on new technology concepts such as the iPhone, Apple TV, and many features of its upcoming operating

system, Mac OS X "Leopard."

For the first 30 years, the corporation was known as Apple Computer, Inc., having been founded

on January 3, 1977 Apple eliminated "Computer" from its corporate name on January 9, 2007, to reflect that the company, which was originally best recognized for its computer products, now offers a broader range of consumer electronics items The name change, which came after Apple unveiled its new iPhone smartphone and Apple TV digital video system, reflects the company's

continued push into the consumer electronics sector, in addition to its traditional focus on

computers

Apple also has an online store where you can buy hardware and software, as well as the iTunes

Store, which has a huge selection of digital music, audiobooks, games, music videos, TV episodes,

and movies The Mac line of personal computers and related peripherals, the iPod line of portable

media players, and the iPhone, which has a confirmed release date of June 29, 2007 in the United

States, are among the company's best-known hardware products The Mac OS operating system

and the iLife software suite, a collection of integrated amateur creative software products, are two

of Apple's most well-known software products All Macs sold come with both Mac OS and iLife

Furthermore, Apple is a major provider of professional (as well as "prosumer") music and film-

industry software Final Cut Pro, Logic Audio, Final Cut Studio, and similar industry tools are

among Apple's professional and "prosumer" apps, which run largely on Mac computers

2 The development process of Apple

During the past 35 years, the Apple company has grown at an incredible rate, always receiving the attention and admiration of the public Many CEOs around the world have seen Steve Jobs as a good example to follow Apple's history of formation and development has always been associated with breakthrough turning points in the creation of new generation electronic technology products

The early years: 1976-1980:

Apple was founded on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronal Wayne to sell the Apple I personal computer product suite The product was built by Wozniak and was first announced at Homebrew Computer The Apple I was sold with the motherboard included, and it was little more than what we consider a complete personal computer product today Apple I started selling in July 1976 with a market price of $666.66

Apple incorporated on January 3, 1977 without Wayne, who sold all of his shares to Jobs and Wozniak for $800 Millionaire Mike Markkula helped with essential business experience and a

$250,000 investment during Apple's infancy

In 1977, Apple released the Apple II This product showed the mark of Apple and Steve Jobs (Apple CEO) when it was said to be the most modern-looking personal computer at that time, the shell was made of plastic and did not have any screws on the case

In 1979, Steve Jobs introduced the Apple II], creating a giant breakthrough in computer technology when he introduced the first user interface into computer technology This is extremely important for the advancement of the personal computer industry

1982-1985:

Steve Jobs started working on the Apple Lisa in 1978 but in 1982 he moved from the Lisa team to take over the Jef Raskin project, lowering the cost of the Macintosh computer Lisa became the first personal computer sold to the public with a GUI but was a commercial failure due to its high price and limited software

In 1984, Apple released the Macintosh computer through a program It was directed by Ridley

Scott, aired during the third quarter of Super Bowl XVII on January 22, 1984, and is considered a

landmark event for Apple's success

Rise and Autumn: 1986 - 1993

In 1991, Apple introduced the PowerBook, which established the modern form factor and ergonomic layout of notebook computers During this time, Apple experimented with a number of

other non targeted consumer products including digital cameras, portable audio CD players, speakers, video consoles, and television devices In the end, all this proved "too little, too late" for Apple as its market share and stock price continued to slide in the stock market

Regenerative efforts: 1994 - 1997

In 1994, Apple allied with IBM and Motorola in the AIM alliance The goal was to create a new computing platform (PowerPC), which would use hardware from IBM and Motorola along with software from Apple That same year, Apple introduced the first Power Macintosh of many Apple computers using IBM's PowerPC microprocessor On November 10, 1997, Apple introduced the Apple store, tied to a new build-to-order manufacturing strategy

Return profit: 1998 - 2005

On August 15, 1998, Apple introduced a new all-in-one reminiscent of the 128K Macintosh

computer: the iMac Mac OS X, based on NeXT's OPENSTEP and BSD Unix, was released on

March 24, 2001, after years of development and initially established its position in the market

Intel Transitions: 2005-2007

The MacBook was Apple's first laptop with an Intel processor It was announced in January 2006 and aimed at the professional market Apple also introduced Boot Camp to help users install Windows XP or Windows Vista on their Intel Mac alongside Mac OS X Although Apple's market share in PCs has grown, it is still far behind the competition compete using Microsoft Windows, which has only about 8% of desktops and laptops in the US

Consumer electronics mobile phone era: 2007 - present

At the Macworld Expo on January 9, 2007, Jobs announced that Apple Computer would be known

as Apple Inc, due to the fact that computers were no longer the sole focus of the company This shift reflects the company's shift to emphasizing electronic mobile devices from personal computers The event also saw the announcement of the iPhone and iPod Touch After years of speculation and numerous leaks, Apple announced a large screen, tablet-like media device called

the iPad on January 27, 2010 In June 2010, Apple launched the Fourth generation iPhone In

September 2010, Apple refreshed its iPod line of MP3 players, introducing an iPod Nano multi- touch, iPod Touch with FaceTime, and iPod Shuffle with buttons In addition, Apple updated their MacBook, their notebook computer, and the iLife suite of applications, and released Mac OS X

Lion, its latest version of Mac OS X

3 The visions and missions

Apple's vision and mission are "Challenge the status quo, change the perspective of

thinking" This is different from competitors in the market, Apple has never defined itself by what Apple does, instead of defining itself by what others do

Like what the late president and first CEO of Apple Steve Jobs once shared, "marketing is the value stories you will bring to customers", wishing to change from the perspective of the customer's thinking from the brand's own culture Therefore, when it comes to Apple, people will

immediately think of simplicity, elegance, and creativity Of course, such thinking is not a

coincidence but the creation of Apple over the years From there, it shows the difference that can only be made by Apple, that mission is also the foundation for creating the No 1 success in the

field of modern innovation today

For Apple, breaking with tradition is a long-term mission, a fundamental direction for the company's innovation The most important thing is constant change, so the mission is also a shining example with the perfect combination of innovation and effective communication

Il: Apple marketing Strategy & Marketing Mix (4Ps)

APPLE’s strategy examines the brand using the marketing mix framework, which includes the

4Ps (Product, Price, Place, Promotion)

Price

This element of the marketing mix sets prices, price points, and price ranges for the company’s products Apple Inc uses the following pricing strategies:

Premium pricing strategy

Freemium pricing strategy

Skimming pricing strategy

Geographical pricing strategy

The premium pricing strategy involves offering products at a premium In theory, a premium is

an amount that is applied in addition to the typical or common price.As a result of using the premium pricing approach, Apple charges high prices for its goods For instance, 1Phones often cost more than Samsung cellphones Profit margins are increased via premium pricing Although Apple Inc.'s SWOT analysis identifies such high costs as a vulnerability, the business uses premium pricing in conjunction with premium branding and inventive creativity Such a combination ensures competitiveness Creative innovation is supported by Apple’s organizational culture.The business also employs a freemium pricing model in addition to premium pricing This price model combines "free" and "premium" pricing into one Freemium pricing 1s offered without charge, but users must pay to access additional, better, or more sophisticated capabilities For instance, the business provides free 5 GB of iCloud storage However, clients must pay an ongoing cost to add greater storage space In this way, premium branding and the corresponding product design and development activities are in line with Apple's marketing mix Additionally, Apple exploits price skimming when it initially sets prices for newer models substantially higher and then

later lowers them This is the trend with iPad, iPhone Every year, new iPhones are constantly

being sold at a higher price than the old product Apple gives the reason that the quality of the product has improved Apple is an international brand, so it also needs geographic pricing, because

of the difference in the exchange rate between USD and domestic currency.Same product Iphone

14, but because of geographical location, countries have different prices

Product

This marketing mix component influences the business organization's outcomes In this illustration, Apple's product mix consists of goods and services that are classified as or rely on information technology However, the corporation continues to diversify its product offering, raising the prospect of including non-IT-related items in this 4P component Apple Inc.’s main product lines are as follows:

These product lines are associated with human resource utilization and business processes based

on product-based divisions, which are a characteristic of Apple Inc.’s corporate structure The Mac product line comprises desktop and laptop computers in various sizes for a variety of market areas

The iPad, iPhone, iPod, and Apple Watch, on the other hand, share a number of features with Mac

products This element of the marketing mix exemplifies the company's approach to consumer electronics The company's current digital content product range consists of digital music, movies, e-books, and games Apple Inc distributes digital content via its hardware, including the Apple

TV, its software, and its mobile apps.Moreover, the company’s 4Ps include products based on

cloud technology, which allows customers to store and access their data, and use the software as a

service (SaaS), such as 1Work for iCloud The product lines in this 4P element are based on the outputs of the product development growth strategy (see Apple’s Generic Competitive Strategy & Intensive Growth Strategies) This component of the marketing mix illustrates the transformation

of Apple Inc from a computer technology company into a more diversified company with a strong emphasis on information technology

Place

This part of the marketing mix is choosing the right locations or channels via which the business distributes its goods The business case for Apple Inc includes both company-owned facilities and other parties that the firm has given permission to market its goods Apple's distribution plan includes the places listed below:

MacBook models as well as accessories made by other businesses Customers may also purchase

goods through Apple's website and mobile and desktop online shops The company's website offers consumer gadgets for sale to customers Online stores for PC and mobile, including the App Store

and the iTunes Store, offer apps, music, movies, and other digital material The inclusion of these

online distribution channels in this area of the marketing mix helps to maximize the market reach ona global scale Authorized retailers are a part of Apple Inc.'s distribution strategy as well These shops have locations in several important locations, including malls, in different marketplaces all over the world Large retailers such as Walmart and Best Buy are among the vendors Some approved resellers sell through their own storefronts as well as through their Amazon seller accounts Furthermore, the business has partnerships with several telecommunications carriers,

including Verizon, AT&T, and Sprint, to include iPhone units in certain of their

telecommunications service packages offered to subscribers in local or regional target areas As a result, Apple's marketing strategy incorporates both online and offline distribution channels

business has relationships with a number of well-known websites Additionally, the business

employees of the Apple Store engage in personal selling by giving customers information about certain products with the intention of persuading them to make a purchase Sales promotion is another component of the 4Ps, and it normally takes place in Apple Store locations and authorized reseller locations For example, when combined with larger or more expensive products, numerous businesses sell obsolete versions at reduced prices In addition, the company uses public relations

to strengthen its brand Think about Apple Events and new product leaks Product features, press releases, and exclusive interviews are painstakingly prepared and executed to maximize positive publicity The corporation is also involved in a variety of programs, such as ConnectED, which aims to improve results in formal education while exposing the company and its products These activities are linked to Apple's stakeholder management and CSR strategy The company uses these communication tactics to achieve its objective to develop its client base internationally and

to meet marketing mix criterion 12

IV Macro environment

The majority of Apple's distant or macroeconomic external issues generate opportunities This component of the PESTEL/PESTLE research paradigm identifies market and industry circumstances that affect businesses In this instance of Apple Inc.'s external analysis, the following economic external factors are the most pertinent:

Economic stability in developed nations ( opportunity)

Rapid development in underdeveloped nations (opportunity)

Increasing target consumers’ disposable incomes (opportunity)

Apple's expansion is facilitated by the economic stability of industrialized countries However, in terms of assistance for building the technology firm, the rapid expansion of emerging nations is a more significant economic external 6 aspect m this PESTEL/PESTLE study example For example, Apple may raise its income by selling in these international markets due to the strong economic development rates of Asian countries In order to capitalize on these economic prospects,

it is critical to analyze worldwide competitive factors, as stated in Apple Inc.'s Porter's Five Factors study These external strategic elements suggest the possibility for growth for the corporation and its competitors, particularly huge international corporations such as Samsung According to this section of the PESTEL/PESTLE analytical paradigm, speed and effectiveness are crucial in Apple Inc.'s development and expansion activities since rivals are also pursuing these economic possibilities Apple's current economic opportunity is the increase in the applicability income of its target customers and the rapid growth of developing countries In Vietnam, in 2021, Apple had

a spectacular growth year when successfully shipping 1.4 million smartphones in Vietnam, accounting for 8.9% of the market share, growing by 66.2% In addition, Apple continuously poured investment capital into India and Indonesia, amounting to 1 million USD

Demographic

Apple goods are renowned for being distinctive, cutting-edge, and expensive (Dudovskty, 2019).With these characteristics, Apple has become one of the most prestigious brands in the world, elevating its standing among customers the majority of residents of even while certain Apple items are still marketed to the rich minority in the LEDCs, the third world countries do not have the needed money to acquire an Apple gadget, hence Apple's products are instead focused towards more developed nations like the US

Technological

In Apple's distant or macro environment, technical external variables typically present business possibilities The impact of emerging technologies and technical trends on business is assessed in this component of the PESTEL/PESTLE analytical methodology conditions The following technological external aspects in Apple's external analysis scenario are the most important: Growing possibility for cloud compute

Increasing technology integration in enterprises

Growing potential in the mobile industry

Increasing technical prowess of competing businesses( threaten)

According to this PESTEL/PESTLE study of Apple Inc., there is a chance for the company to expand due to the rising demand for cloud computing Cloud services are now available from the corporation, albeit in a restricted capacity Utilizing this chance, together with Apple's assistance Inc.'s corporate structure, building up a larger cloud infrastructure, and providing cloud computing services might enhance the company’s profitability Accordingly, the chance to improve the company's services and expand the business by making its technical products and services available to additional clients, including organizations, is presented by the external strategic aspect

of expanding technological integration The expansion of the mobile market is also included in this PESTEL/PESTLE analysis as a potential source of revenue growth for Apple Inc., especially through the App Store and associated digital content distribution platforms However, the corporation is threatened by other companies’ technical development since more new competitors could enter the market

The Political

The laws, governmental entities, and pressure groups that affect and impose restrictions on numerous social organizations and individuals make up the political environment The political environment is intimately tied to the social and economic ones You should be aware of things What is the government's position on marketing ethics, culture, religion, and the economy? Since

2002, Apple has contributed about $580,000 to political causes Due to insufficient and perhaps inaccurate reporting at the state level, the Cost cannot be established precisely It has not made its political donations publicly known The retail industry's advocate is the retail industry leader organization (RILA) The American Electronics Association (AEA) counts them among its principal members.Because Apple deals with complex technological devices, it mostly represents

the technology segments.This alters the state, federal, and worldwide governments; business possibilities and money access are made available; a variety of business services and networking

activities are offered

Social and culture

This environment is primarily concerned with how people behave and what is popular, as well as

cultural aspects like values, ideas, attitudes, and beliefs, as well as the population of subgroups

that influence how consumers behave while making purchases It is necessary to consider the cultural traits and trends in various markets The marketers have this information down pat Apple Inc uses more cutting-edge technologies to appeal to younger generations Worldwide adoption of

the iPhone, iPod, and Mac computers has occurred Nearly every societal segment, whether young and elderly, is a target market for the organization They created the technology, software, and colors in accordance with it This type of target market offers more substantial revenue streams The majority of them in the US and the UK use iPhones and other devices made by Apple Inc I hope it will be in the generations to come

V Competitive analysis

Some of the world's top competitors are competing directly with Apple, such as Google, Amazon, Samsung, Dell As you know the features and applications of Android and iOS are similar, but the function is not inferior Apple manufacturers’ premium products target high-end markets only but this is a greater advantage for its competitors who sell their products to low and high-end consumers Apple manufacturers’ premium products target high-end markets only but this is a greater advantage for its competitors who sell their products for low and high-end consumers Therefore, it is completely understandable to switch from 10S to use Android at a lower price In the second quarter of 2019, Samsung has an increase of 1.1% compared to 2018 while Apple suffered the biggest drop by selling a little more than 38.5 million iPhones in the same period

which is a drop from 44 million sales made in 2018 (Woollaston, 2019) Therefore, it is completely

understandable to switch from 10S to use Android at a lower price In the second quarter of 2019, Samsung has an increase of 1.1% compared to 2018 while Apple suffered the biggest drop by selling a little more than 38.5 million iPhones in the same period which is a drop from 44 million sales made in 2018 (Woollaston, 2019)

VI SWOT Analysis

To understand 's current position in the market, it is important to conduct a SWOT analysis (SWOT stands for Strengths, Weaknesses, Opportunities, and Threats) This analysis helps to identify the internal and external factors that affect a company's ability to achieve its goals In the case of Apple, the SWOT analysis will provide insights into the company’s strengths and weaknesses, as well as opportunities for growth and potential threats to its success

1 Strengths of Apple

Apple Inc is a multinational technology company that has been able to establish a strong presence

in Vietnam's market The company has a number of strengths that have contributed to its success

in the country In this essay, we will examine some of the key strengths of Apple in Vietnam's market

- Powerful brand: Apple's brand reputation is a major strength in the Vietnam market The company is known for its innovative and high-quality products According to Interbrand and Forbes, the Apple brand is worth US$234.241 billion and US$205.5 billion (reference)

- Apple's marketing strategy: It has been reported that Apple's strong brand recognition and

reputation are attributed to its advertising and marketing capabilities For more than three decades, Apple has depended on the external advertising agency TBWA/Chiat/Day to launch their marketing and advertising campaigns, which resulted in the iconic '1984' and 'Think Different’ advertisements, creating an iconic brand image (ref) Recently, the company has been focusing on strengthening its in-house advertising and marketing teams by hiring talented individuals, which

is expected to reduce costs and improve marketing and advertising capabilities Apple's ability to create exceptional marketing campaigns, superior advertising skills, premium quality products, and excellent customer experience has made it possible for the company to establish the most influential brand in the world

- Apple’s product ecosystem: Apple's product range is another strength in the Vietnam market Offering a wide range of products allows Apple to cater to a diverse range of customers with different needs and preferences The company's products are also designed to work seamlessly together, which creates a convenient and integrated experience for users

Apple’s product ecosystem is comprised of:

e Hardware products: Products include iPhone, Mac computers, iPad, AirPods, Apple TV,

Apple Watch and other computer hardware as well as consumer electronics

e Software: Apple provides operating systems for every product category it sells The main operating systems that go with Apple products are 10S, macOS, iPadOS, watchOS and tvOS

e Application software: Includes applications such as iLife, 1Work, iMovie, Safari, Final Cut

Pro, Apple Books and other applications which enable users to use Apple products for work

or entertainment

® Services: The company offers many services to its users, including App Store, Apple Music, Apple News+, Apple TV+, Apple Arcade, Apple Card, Apple Pay, iCloud, AppleCare, licensing and many other services

Apple Inc has a competitive edge due to its capability to create its own hardware, software, applications and services that are unique, innovative, and user-friendly These products and services are designed to work seamlessly together within the Apple ecosystem, and this is the key reason why customers are willing to pay a premium for Apple's products and enjoy using them

No other company can replicate this advantage

Samsung Electronics, which is Apple's biggest competitor, does not have a complete operating system and provides limited apps and services to its customers Google, the second biggest competitor of Apple, is proficient in developing software, applications, and services, however, it has only released a few hardware products that were not successful In short, there are very few companies other than Google and Samsung Electronics that can compete with Apple's competitive edge

- Loyal customer base: Apple’s retention rates in the smartphone market are the highest among its major rivals According to BankMyCell, Apple retains 74.6% of its customers, compared to Samsung’s retention rate of 63.9% and LG’s 40.7% (ref)

750 40%

Brand Keys, a consultancy agency, issues a “Customer Loyalty Engagement Index” study each

year Apple examines the world’s top brands in many industries and how loyal customers are to

- Apple's distribution network: The company has a number of retail stores and Apple authorized resellers (AAR) in Vietnam, which makes it easy for customers to purchase its products In addition, Apple's online store allows customers to buy products from the comfort of their own

homes In the list of AAR in Vietnam, we can call some names Vietttel, FPT Shop, Shop Dunk,

CellphoneS, Hoang Ha Mobile, Mediamart, TOPZONE(The Giioi Di Dong), In 2021, The Gioi

Di Dong earned around 450 million U.S dollars in revenue from selling Apple products The Gioi

Di Dong is among the largest consumer electronics retailers in Vietnam, and a major distributor

of Apple products in the country By 2022, the revenue from Apple items of this retailer was forecast to amount to 750 million U.S dollars, accounting for around 40 percent of the total revenue of Apple in Vietnam

Revenue of Apple products sold by The Gioi Di Dong in Vietnam between

2020 and 2021, with a forecast for 2022 (Source: Statista.com)

In conclusion, Apple's brand reputation, product range, marketing strategy, distribution network, and customer service are all strengths that have contributed to its success in the Vietnam market The company's ability to cater to a diverse range of customers and provide high-quality products and services has helped it to establish a strong presence in the country As Vietnam's economy continues to grow and its middle class expands, Apple is well-positioned to continue its success in the market

2 Weakness

Despite its global success, Apple has struggled to fully penetrate the Vietnamese market, and has faced several weaknesses in its efforts to establish a dominant position in the country

- High pricing: One of the key weaknesses of Apple in the Vietnamese market is its high pricing Apple products are generally considered to be among the most expensive in the market, which

makes them unaffordable for many Vietnamese consumers In a country where the average annual income is relatively low (GDP gets 4,2 million VND/person/month in 2021), the cost of Apple

products can be prohibitive for many people This has created an opportunity for competitors to offer more affordable alternatives, which has hindered Apple's ability to establish a dominant market position

- Over-reliance on one product: Apple’s major weakness is its reliance on iPhone sales to generate the majority of its revenue According to Apple’s financial report, the company receives US$142.381 billion or 54.7% of its total revenue from iPhone sales alone in 2019

- Apple ”s few successful innovations: Apple's innovation has been criticized for slowing down, with the company failing to introduce any major disruptive products or services since the iPad This lack of innovation has been reflected in rankings such as Fast Company's "The Most Innovative Companies of 2019",(ref) where Apple was only awarded the title once since 2012 Even Forbes, which has its own list of the 50 most innovative companies in the world, doesn't include Apple in the list (ref)

3 Opportunities

- Country's young and tech-savvy population: Nearly 70% of Vietnam's population is under the age of 35, which means that a significant portion of the population is made up of millennials and members of Generation Z This demographic is highly connected and digitally literate, with a strong interest in technology and a willingness to adopt new products and services Additionally, the country has a high level of digital literacy and a strong interest in technology This presents a significant opportunity for Apple to target a highly receptive audience that is likely to be interested

in its products

- The fastest-growing middle class: According to Boston Consulting Group, reports Nikkei Asian Review, Vietnam currently has the fastest-growing middle-class population in Southeast Asia Vietnam becomes a juicy target for Foreign Brands like Apple Company The firm defines this class as those who earn at least US$714 a month Between 2014 and 2020, this income group will likely double in size to 33 million people, accounting for a third of the country's population