MacBrand Extension

Mwblib BasumataryPGP30147, Sec A

Dated: 09.07.2015

Apple Inc. the manufacturer

Steve Jobs, Steve Wozniak and Ronald Wayne

Founded in April 1976 - incorporated in 1977

Apple I a motherboard based computer

Apple II desktop platform for VisiCalc (killer app)

Apple Lisa – first publicly sold PC with GUI

Macintosh in 1984 powering Desk Top Publishing

1980s 1990s

Computers

MusiciPods

MusiciPods

Phones

Tablets

Software

Computers

MAC

Computers

2000s

Apple Inc. product extension

…extending brand Apple

Apple Inc. Apple products 2015

MAC the brand

From Macintosh in 1984……to 7 more Mac

iPod1%

Mac16%

iPhone55%

iPad13%

iTunes11%

Others4%

Apple Inc. Revenue by CategorySource: Apple Annual Report 2014

2011 2012 2013 2014 2015*

206.1 201.1 177.2 162.4 163.8

167.3 148.1 137.9 133.5 129.7

Global Computer Sales (in millions)Forecasted for 2015

Source: IDC

Laptop Desktop

Lenovo20%

HP19%

Dell13%

Acer8%

Apple6%

Others33%

Apple Computers Desktop + LaptopMarket Share 2014

Source: IDC

2011 2012 2013 2014 2015*

0%

-6%

-10%

-6%

-1%

PC Industry Growth 2011–15*Forecasted for 2015

Source: IDC

Percentage Change

MAC comparative category growth

MAC quarterly Mac shipments

The 4Ps of Mac

Product

High performance personal computers

Premium laptops and desktops

Superior material and simple design

A well managed product line

Price

Premium pricing yet affordable

No sales discount

Comparative framing of prices

Price skimming for educational usage

Place

Multiple channel retailing

Direct online selling

Apple store chains

Well supported service centers

Promotion

Integrated Marketing Communication

Comparative advertising with rivals

Product bundling discounts

Robust after sales service

Apple Mac computer’s 4Ps is driven by Apple’s Brand Mantra - ‘Think

Different’

Product

MacBook Air

Mac Pro

MacbookiMac with

Retina Display

iMac

MacBook Pro

Mac Mini

…extending brand Mac

Price

Mac is a premium personal computer brand line. It does not compete on price but, uses pricing as a premium indicator. The company seldom reduces prices. Apple uses skimming and premium pricing strategies.

Mac Type Price Other Brands

MacBook $1299 $599 - $899

MacBook Air $899 $599 - $799

MacBook Pro $1299 $499 - $1099

iMac $1099 $499 - $799

iMac with Retina Display $1999 $1399 - $2099

Mac Pro $2999 $699 - $2999

Mac Mini $499 $399 - $799

Place

Despite Apple Mac personal computers being premium products they are sold at both exclusive retail outlets as well as at mass channels like MediaMarkt and Walmart. Direct online selling with free delivery.

Apple Store MediaMarkt

Promotion

Apple uses mixed promotion strategy for it’s Mac computers

Free shipping for purchases over $50 in the US

Special pricing schemes for education related purchases

Discounted pricing for its refurbished products

IMC targeted at young and design conscious consumers

Apple stores and iTunes gift cards

Thank You