29 Jun MKT 421-Strategy and Positioning Analysis
Question
Strategy and Positioning Analysis Part 2 1 Strategy and Positioning Analysis Part 2
April 25, 2016
MKT/421 Introduction
There is always something new and innovative hitting markets across the world in terms
of technology. Apple has been a company known to push the limits of technology and provide Strategy and Positioning Analysis Part 2 2 new and exciting technology for many people to enjoy. In this analysis the team is going to
describe the marketing efforts and marketing mix that will change the life cycle of the product
IPad. The team will also explain the new packaging, the pricing strategy, and also evaluate the
channels of distribution and how each channel partner will add value to the Apple.
Marketing efforts and marketing mix
At the first stage of the product life cycle is the launch stage of the product when the
product is to be positioned in the market. At this stage the marketing strategy will mainly be
directed at differentiating the brand from the existing brands. At this stage the marketing efforts
will mainly be directed at highlighting what features make the product different from the other
products and what are the unique benefits that it offers to its customers. At this point, the product
will be promoted using the digital channels mainly like on the web as well as through the media.
At the first stage the media publicity is most usually suitable for guiding the launch of products
like the one under discussion.
Some specific points of use at this point are as follows: “What makes the product different from competitors? What benefits does the product offer to consumers? How relevant is the product to the consumer’s needs and requirements? What is your product’s USP (Unique Selling Proposition)? Strategy and Positioning Analysis Part 2 3 What kind of technology does your product use? Is it unique enough to be highlighted”
(Mikoluk, 2014). The next stage is the growth stage where the marketing efforts are aimed at sustaining the growth
as long as possible. At this stage the aim shifts from certain awareness to draw attention to the
trial of the product. The marketing efforts in this stage will be directed at creating product
conviction. Promotional efforts will get directed towards attracting more and more consumers.
The efforts will also be geared towards preventing competition from eating into the product’s
market share. Focus will be placed on entering new market segments. In this regard the company
will look into the new markets where the sales of the product is possible and where it is easy to
tap into the customer base based on the product’s price and the customers’ purchasing ability.
Digital marketing channels including social media will be used to market the product before
wider customer segments. Advertising efforts too will be geared towards obtaining conviction
rather than just creating awareness. As the phases of the product life cycle change so will the
marketing efforts will continue to be updated. Sales are at their peak during the maturity stage.
However, at this stage the competition also becomes intense. The competition gets fierce as the
competitors enter the market with alternative products. This gives rise to difficulties. The severe
fight may give rise to a need to adopt aggressive/offensive strategies to defeat the competitors.
The marketing efforts at this stage need to be geared towards sustaining the sales as well as
converting the non-users into users which can be done by highlighting the exceptional benefits of
the product. Product modification is also an effective strategy that can be used at this stage to
effectively increase the usage of the product. IPad is a unique product that is equipped with Strategy and Positioning Analysis Part 2 4 unique features. Even sight twist or modification can help reintroduce the product equipped with
new features. This will help at attracting new customers as well as at increasing the popularity of
the product and the brand. The last stage is the decline stage where the sales of the product start
declining. At this stage the company has two options. It can either drop the product or continue
by making improvements to the existing product. The company can either introduce a new
product in its place or it can make improvements to the product and keep trying to attract new
customers. In case it drops the product, it can replace it with a new product bring the cycle to its
end.
Packaging
When Apple has to make decisions on the packaging they must take many factors
into consideration for the proper packaging. The packaging for Apple’s products must be
packaged with the product protection as the utmost importance in mind. The package design is
very important for advertisement and product identification. The appearance the product at time
of sale is very important for customer satisfaction and the eye catching product packaging is
great for advertisement.
There are a variety of different reasons that Apple is very aware of the necessities for the
packaging of their products. Packaging of Apple’s products are utilized for an advantage of
reducing the lost cost of breakage during the promotional push or pull strategies, product
protection during the shipment and delivery stages of the product, products in packaging is an
extra protection for theft, tampering and or damage at any stage for the product from the
distributor to the customer. Apple’s products that are purchased from an impulse buy basis is Strategy and Positioning Analysis Part 2 5 generally a result of the message the packing is communicating to the buyer. The escalating
number of products being sold without physical personal customer service is rising quickly,
which means the product packaging must be designed to promote and sell itself.
Apple conducts in depth research for the proper marketing strategies which are necessary
for the organization to stay abreast of the ever so evolving innovations for the electronic
technology world and their competitors working the technology market. It is Apple’s interest to
use every opportunity to display product promotions. The packaging is a complement of
promotional opportunities Apple takes advantage of, as well as, the product package design
communicating directly with the potential customers, online purchases, and displaying the core
benefits of the products. The increase of products being sold without customer service assistance
is increasing with time, so it is very important that the package design stimulate and
communicate to sell itself.
“One after another, the designer created and tested an endless series of arrows, colors,
and tapes for a tiny tab designed to show the consumer where to pull back the invisible, fullbleed sticker adhered to the top of the clear iPod box. Getting it just right was this particular
designer’s obsession.
What’s more, it wasn’t just about one box. The tabs were placed so that when Apple’s
factory packed multiple boxes for shipping to retail stores, there was a natural negative space
between the boxes that protected and preserved the tab.” (Network world, 2012)” Strategy and Positioning Analysis Part 2 6 Analysis of pricing strategy
The Apple philosophy has been and continues to be focused on creating a high end
product, offer a small number of products, give priority to profits over market share, and to
create a halo effect that makes people starve for new Apple products. These philosophies are
driven by differentiating there products and lead the curve compared to their peers.
There are several pricing strategies that can be used; Competitive-Based, Penetration
Strategy, Loss Leader, and High-End Strategy. Competitive based pricing focuses on what the
competition is charging. The goal is to meet or beat those prices. Penetration strategy is used for
loyalty building. Strategy offers high-quality products at a lower price than expected. The
strategy is known to increase the lifetime value of the customer. Loss leader pricing strategy is
also known as promotional pricing strategy, the goal being to acquire new customers even if you
don’t make a profit from the initial sale. This strategy prices certain products below cost, taking a
loss so that the customer engages with the business. High-end pricing strategy takes The
opportunity of a segment of consumers who believe highly that quality comes at a premium
price. They do not compete pricing with their competitors, The objective is not to be the lowest
price in the market but rather the highest. The strategy provides a higher profit margin for each
sale.
At Apple they believe in creating a premium product and charging a premium price. At
apple they utilize the high-end pricing strategy including the minimum advertised price strategy.
“Apple uses a retail strategy called “minimum advertised price” (or MAP). Minimum advertised
pricing policies prohibit resellers or dealers from advertising a manufacturer’s products below a Strategy and Positioning Analysis Part 2 7 certain minimum price. MAP is usually enforced through marketing subsidies offered by a
manufacturer to its resellers.” (Market Realist, 2014). We have discovered over time the average
selling price today for an Ipad is $415, with that in mind Apple has created the Ipad Pro because
it’s always an opportune time to create a premium product that the consumer is anticipating.
Based on the Apple philosophy of premium product for a premium price we will launch starting
at $799. The Ipad Pro will not disappoint even the most difficult critic. The Ipad Pro has a
massive screen of 12.9 inches, with options of 32GB, 128GB and the 128GB model with LTE
connectivity, preloaded with ISO 9, ten hour battery life and graphics with 5.6 million pixels
making it one of the most advanced displays built. Channels of Distribution Strategy and Positioning Analysis Part 2 8 Because there are a number of target markets, distribution channels for the iPad, Apple can
use multi-channel distribution plan that include channels such as direct to consumer sales through
e-commerce as well as through retail intermediaries such as Walmart, Target and Best Buy. To be
effective, the biggest and probably the most effective part of their strategic plan was to introduce
the Apple store outlets as a direct channel of distribution. (Kerin, Hartley, & Rudelius).
Initially, Apple will use selective distribution method by selling through intermediaries
that give special attention to their products. Once demand increases and more retailers want to
carry the iPad, the focus will change from selective distribution channels to an intensive
distribution channel which will widen their reach to multiple target markets. The internet offers a
resource for direct distribution to consumers, while representing an easier to manage resource
with a smaller volume of sales as compared to the mass markets of storefronts. In an effort to
answer customer questions and assist in making buying decisions, Apple is selling the iPad
through its own retail outlet. By selling their device at the instore location, Apple can meet the
demands of lower volume sales. At this level of marketing, managers can easily identify changes
in demands and consumer attitudes while addressing consumer concerns.
Conclusion
To sum it all up, we have covered the marketing efforts as well as the marketing mix that
change with each phase in the product life cycle. At the first stage of the product life cycle is the
launch stage of the product when the product is to be positioned in the market. At this stage the
marketing strategy will mainly be directed at differentiating the brand from the existing brands.
We also discussed the packaging and how it adds value to the product. When Apple has to make Strategy and Positioning Analysis Part 2 9 decisions on the packaging they must consider the many factors for proper packaging. The
package design is very import for advertisement and proper identification. The Apple
philosophy has been and continues to be focused on creating a high end product, offer a small
number of products, give priority to profits over market share and to create a halo effect that
makes people starve for new Apple products. With the average selling price today, Apple has
been able to create the Ipad Pro because it is always a chance to create a quality product that
consumers are looking forward to having. References Strategy and Positioning Analysis Part 2 10 Mikoluk, K. (2014). Positioning Strategy: The Basics of Positioning Your Business. In UDEMY.
Retrieved April 23, 2016, from https://blog.udemy.com/positioning-strategy/ Kerin, R., Hartley W., & Rudelius, W. (n.d). Marketing: Managing marketing channels and
supply chains (12th ed.). New York, NY: McGraw-Hill Irwin. Inside Apple’s secret packaging room, Network World, 2012, Retrieved From:
http://www.networkworld.com/article/2221536/data-center/inside-apple-s-secretpackaging-room.html
Atlas.(2016). Retrieved from https://www.theatlas.com/charts/NyvuNiDt
Chron. (2016). Retrieved from http://smallbusiness.chron.com
Huffington Post.(2015). Retrieved from http://www.huffingtonpost.com
Market Realist.(2014). Retrieved from http://marketrealist.com
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