Final-Term Report Subject Marketing Management.pdf

Therefore, in 2020, Apple first launched 4 iPhone product lines with 4 different prices so that consumers can own the latest and most powerful Iphone in the world at a price suitable for

UNIVERSITY OF ECONOMICS AND FINANCE HCMC

CR)

UEF ĐẠI HỌC KINH TẾ TÀI CHÍNH

FINAL-TERM REPORT

SUBJECT: MARKETING MANAGEMENT

LECTURE: LE HONG DAC (MBA)

Group 7: Tengita

GROUP MEMBERS Bui Tan Phat

V6 Duy Hung Truong My Hoa Nguyễn Quốc Hưng

Table of contents

I Introduction

The Covid 19 pandemic has had a huge impact on all businesses around the world, including Apple, because they understand that consumer income will be reduced when the pandemic occurs Therefore, in 2020, Apple first launched 4 iPhone product lines with 4 different prices so that consumers can own the latest and most powerful Iphone in the world at a price suitable for their needs income There are: Iphone 12 mini, Iphone

12, Iphone 12 Pro, Iphone 12 Pro Max

A ANALYSIS OF THE SITUATION OF THE TECHNOLOGY INDUSTRY AND APPLE

1 Introduction about Apple Inc

Apple Inc (NASDAQ: AAPL, LSE: ACP) is an American computer technology corporation headquartered in Silicon Valley in San Francisco, California Apple was founded on April 1, 1976 under the name Apple Computer, Inc., and changed its name in early 2007 With annual global product sales of US$13.9 billion (2005), and has 14,800 employees in many countries, products are personal computers, software, hardware, music players and many other multimedia devices The most famous products are Apple Macintosh, iPod music player, iTunes music player, especially iPhone phones and iPad tablets The main places of sales and service are the US, Canada, Japan and the UK

In 1977 when the Apple II was launched and hit the market The special thing about Apple II is the appearance of VisiCalc software This was a tool that helped Apple get closer to big businesses and helped Apple become one of the main competitors of the big computer companies at the time, Tandy and Commodore

In 1984, Apple released the Macintosh, the first personal computer sold without a programming language

In 1985, a major conflict between founder Steve Jobs and the company's CEO at the time Sculley caused Jobs to leave the company and Apple had to face difficulties in the following years

On July 4, 1996, Steve Jobs returned to Apple and took the position of CEO of the company, he created an impressive advertising strategy that is: "Think Different" with the participation of a series of artists and designers famous science

In 2007, Apple introduced the iPhone - a product that changed the whole concept of the previous buttonless phone, it created innovation around the world

Since then, Apple has always created attention every time it launches its products and has become the most valuable company in the world in 2020

Like every year, our iPhone launch event is always noticed by consumers, without wasting consumers’ expectations, at the time of launch, this is the most powerful phone in the world, affirming the position of our leadership position in the smartphone industry

In addition, these are the first product lines to use 5g that we launched on the market, the iPhone 12 Pro Max is the first phone with a size of up to 6.7 inches

In this iPhone product launch event, we also called on everyone to join hands to protect the current living environment, and we act by removing the charger on our Iphones

With its actions, We have shown consumers about the world's most advanced technology

in the smartphone industry that any consumer wants to own an Iphone

5 Distribution Channel

Our direct distribution channel includes their physical stores and their online store We physical stores allow them to really control their brand image and customer perception of them All our stores worldwide have the same clean white design with a high employee to customer ratio This creates a really strong brand image in consumers’ minds as we are seeing the same design everywhere they go We also often open their stores in high traffic locations to get as much exposure as possible We also sell directly through our website Our website can be accessed from all parts of the world and offer a huge range of languages

digital economy market in Southeast Asia The high-income population group in Vietnam accounts for about 20% of Vietnam's population

9, Market growth

iPhone 12 series sales surpassed 100 million units in April 2021 Compared to its predecessor, iPhone 11, this result was reached two months early Revenue of Iphone 12

is twice as much as that of Iphone 11 and nearly 3 times that of Iphone X and Iphone 13

is expected to nearly double Iphone 12

10 Market share

From July 2020 to July 2021, Apple is the largest mobile supplier in Vietnam with 33.54% (statcounter)

B THE BASICS-MODELS FOR BUILDING MARKETING STRATEGY

1.1 Mission

-Apple mission is “to bringing the best user experience to its customers through its imnovative hardware, software, and services.” And in a manifesto dated 2009 Tim Cook set the vision specified as “We believe that we are on the face of the earth to make great products and that’s not changing.”

*With that statement Apple has given the following advertising targets:

-One of the world’s strongest brands and unique: Every Worldwide Developers

Conference - WWDC is an information technology conference held annually by Apple Inc always attract a lot of people around the world watching to know new software related products such as 10S, MacOS, WatchOS, TvOS and other related services It’s a big advantage for the new version of iphone to being know by people around the world -The customer buys products to self-actualization: The price of the iphone 12, iphone 12 pro and iphone 12 promax didn’t cheap So it’s target to the high-end customer like businessman,etc

-Bring the best value to the customer: with the available ecosystem (macbook, airpod, tpad,etc ) apple want the customer use iphone can integrated with the experience from the ecosystem

+Better Hardware and Software Integration: Android phones have offered haptic feedback for ages, but the Taptic engine in the new iPhones promises to be super efficient Only Apple ties hardware and software together like this

+Great Cameras: The new iPhones are also looking to take the selfie crown from Android phones The FaceTime HD has a new Retina Flash feature that boosts the brightness of the screen to double as a flash Especially the iphone 12 with 3 cameras want to make movies like the movies

+Works beautifully with Macs: If you haven't tried a Mac in a while, you might be surprised to know just how well iPhones work with them For instance, with the Continuity feature in OS X, you can use your MacBook to send and receive text messages and even receive and place calls All you have to do is keep your iPhone nearby

-The value from the brand: with the longspan of iphone from 2007 Iphone have the big loyalty customer who want mobility, flexibility and reliability are key to satisfying everyone involved in the marketing process The customer has to be able to use the iPhone everywhere and always have a connection, it needs to be possible to use it the way you want it to use, and you have to be able to rely on your iPhone to work at all times There are a couple of types of needs, but the need for an iPhone 1s a social one The need to be in touch and to receive belonging

-Positioning products and brands:

The world’s 2nd most valuable brand with a brand valuation of $146+ billion, Apple over the past many years have created a niche that no other product in its category has been able to achieve If you are paying a premium price, you expect an unmatched product quality.And this is what is expected from Apple as a brand.“YOU GET WHAT YOU PAY FOR” Apple enjoys one of the highest price points in the industry, to the envy

of it’s competitors, who all bang on about ‘value for money’ Apple has positioned itself

to be a lifestyle product for wealthy people, innovators and people with good jobs Apple has become a desired product but not easily affordable This premium positioning helps Apple in the long term

1.2 Money

According to Pathmatics, Apple was spend 30 millions advertising on social media especially Youtube Since the beginning of Q3 2020, Apple relied heavily on desktop display ads, followed next by the desktop video format Combined, social media and mobile advertising make up barely over 10% of Apple’s total ad placement budget Looking at individual creatives isn’t enough to get a representative picture of Apple’s advertising habits in the past two quarters That’s because the company has spent over

$168 million promoting 3,530 different creatives in this timeframe, showcasing the benefits of each of its new products from many different perspectives — privacy and security, modem convenience, technical specs, and trendiness all included

1.3 Manpower

Thuyét trinh:

-Have Apple Store Leader Program every year to recruit the talent

-Almost, the employees have Bachelor degree, Master degree

-The staff at the store are trained hard and soft skills before working to bring the best experience to the customer

-In software service, it is advisable to keep high number of employees in surplus This is because the software service oriented companies get new projects at any point of time, and they must have sufficient manpower available to start working on that

- In manufacturing and public sector, the surplus manpower would be minimum And even though when they need additional employees they get them in the form of contract labors

1.4.Marterials:

-The designed in the headquarters Cupertino, California, United States

-The product manufacture in the factory in China, Singapore, German, etc

1.5 Methodology:

-Apple generated $274 billion revenue in 2020, 50% came from iPhone sales Apple’s services division was the second largest segment, responsible for 19% of the company’s revenue in 2020 Apple sold 194 million iPhones, 71 million 1Pads and 20 million Mac and MacBook units in 2020

-> Since 2020, Apple has split its business into five segments: iPhone, iPad, Mac, Services and Wearable, Home and Accessories The iPhone generates the majority of Apple’s revenue, but Services and Wearable, Home and Accessories have both seen increased priority in the past few years, as Apple tries to find new ways to prevent revenue stagnation

2 Pestle Model

Political -Improving free trade policies (opportunity)

-Stable politics in developed countries (opportunity)

-Trade disputes, especially between the U.S and China (threat) -The cost of finding alternatives to Chinese manufacturing could be high for Apple This could lead to increased prices for Apple products

-Apple’s dependence on Chinese manufacturing and markets makes

it vulnerable to political unrest in that country

-Apple could become the target of growing nationalism and anti- Americanism in China, which could reduce its market share -Apple’s close association with China could become a political issue

in countries like the United States and Japan if China were to be perceived as a threat

Economic -Stable economies of developed countries (opportunity)

-Rapid growth of developing countries (opportunity)

-Increasing disposable incomes among target customers

(opportunity)

- Increased labor costs in China could take away the cost advantage

of some Apple products

- Stagnating middle-class incomes in some developed countries, including the United States, could shrink the potential market for higher-end consumer goods such as those marketed by Apple

- Astrong U.S dollar could increase exchange rates, making it more expensive for Apple to do business in key markets like Europe and China

Social

-Rising use of mobile access (opportunity)

-Increasing dependence on digital systems (opportunity)

-International anti-Apple sentiments (threat)

- The biggest growth in consumer spending in coming decades will

be in areas of the world such as Africa where people are unfamiliar with Apple products

- Consumers in those markets and younger people in Apple’s established markets, such as the United States, lack the strong

emotional attachment to Apple products that drive sales

- There is a backlash against expensive and stylish products among some customers in the United States and Europe

- Ethical concerns about Apple’s manufacturing m China could limit its products’ appeal among socially-conscious consumers

- Apple’s close association with China could offend some potential customers in other regions, such as North America and Europe, particularly if tensions with China rise

- Apple’s music marketing strategy has created resentment and led to public criticism from major recording stars that could tarnish the brand’s image

-Increasing technological integration in businesses (opportunity) -Growing mobile market (opportunity)

-Growing technological capabilities of other firms (threat)

-The number of new consumer products Apple can bring out is limited Many of its new offerings, such as Apple TV, will have a limited market

-Growing use of smartphones and tablets will lower demand for -Apple’s popular personal computers

-Apple’s proprietary operating system can limit the variety of applications available to smartphone users

-The growing capabilities of cyber criminals make Apple’s systems less secure and take away one of its strongest competitive

advantages: its reputation for high levels of security and safety

Environmental

-Business sustainability trend (opportunity)

-Energy efficiency trend (opportunity)

-The effect of the Covid-19 pandemic (Threat)

-Pollution and other environmental side effects from manufacturing facilities in China are a growing concern This could lead to increased regulation and higher manufacturing costs at some point in the future

-China’s efforts to cut greenhouse gases and limit fossil fuel use could increase electricity rates and manufacturing costs for Apple in that country

-Climate change created by global warming could disrupt

transoceanic shipping and Apple’s supply chain

-Concem about energy use and other side effects from data centers could lead to increased regulation and costs

-Apple is highly vulnerable to increases in electricity costs because

of its dependence on data centers and other Internet infrastructure

-Legal challenges against Apple’s policies and practices (threat) -Mobile phones are not subject to VAT exemption Then this item will enjoy the tax rate of 10% (threat)

-Apple has recently entered the highly regulated financial services sector via Apple Pay This could increase the level of regulation and government oversight it faces.[2]

-By offering financial services, Apple could face increased levels of litigation

-News reports indicate that Apple is planning to enter another highly- regulated sector: automobile manufacturing [3] Entering the auto business could increase regulatory, insurance and litigation costs at Apple

-Apple depends on a variety of products covered by intellectual property laws, such as software and music, for much of its income This leaves the company highly vulnerable to both piracy and litigation

is in third place with 13% of the share thanks to its flagship product, the iPhone Founded