Apple Iphone

Table Of Contents

• Company Profile• Data of Smartphone Users in India• Why Apple iPhone is a failure in India?• Marketing Mix• SWOT Analysis• Strategies for Capturing Indian Market• Conclusion

About the Company

April 1st,1976 - Founded

January 3rd,1977 – Incorporated and is now called as Apple Inc.

Headquarters - Cupertino, California

Co-founders - Steve Jobs, Steve Wojniak

CEO – Tim Cook

Industry - Computer software, hardware and electronics.

Sales & Revenue

Sold 125 Million iphones in 2012

Apple Made $156.5 Billion in 2012

Firm made the profit of $41.66 billion in the year 2012

Total Cash Reserves-$137.1 billion

There are 27 million smartphone users in urban India: Nielsen

survey 

• Mobile Phone users in india-India is considered to be one of the fastest growing mobile markets with around 900 million mobile phone users, according to TRAI (Telecom Regulatory Authority of India)

• Growth- The smartphone market in the country surged by 17 per cent

• Usage Pattern Of Smartphone Users-22 million people use their smartphones for social networking, 24 million use it for online searching, 21 million for looking up app stores and 19 million each use these devices for chatting and mailing, respectively.

• Around 16 million users view streaming videos; another 16 million use smartphones for maps and navigation while 8 million each use it for banking & finance, travel, shopping and accessing Web portals.

Why Apple iPhone is a failure in India?

• Pricing Strategy-India is a price sensitive market.• Lack of Promotion & Advertising for indian

consumers- Apple didn’t run any of its own campaigns in India.

• Ineffective Distribution model-In India apple has only 2 distribution agency ie Redington and Ingram Micro

• Retail Stores-Apple has no official, self-owned retail stores in India all of them are the mixture of official and unofficial Resellers .

Marketing Mix Of APPLE IPHONE

PRODUCT

• Iphone 2g(first generation) was launched on June 2007 and later comes the next generation Iphone that is 3g,3gs,4g,4gs and

• Finally comes Iphone 5 on Nov 2, 2012.

• Dimensions have also been changed throughout the years.

PRICE

• There is no doubt that pricing plays an important role in any field or industry.

• Adopted Psychological Pricing

• EMI options to the customers

Revised Price

Iphone 5 (In rupees) (In rupees) (In rupees)

MODEL OLD PRICE REVISED PRICE

SAVINGS

16GB 44,000 39,990 4010

32GB 54,000 49,990 4010

64GB 60,000 55,990 4010

PLACE

• Self owned retail outlets ie (tier I cities)-By having the self owned retail outlets we can eliminate the intermediaries.

• Franchise Retail Outlets-Opening franchise retail outlets in tier II and Tier III cities, such that the product is readily available to the potential customers

• Massive rollout at the leading retail chains (future group,Vijay Sales,Next retail etc) -Again for the availability purpose and also for the convenience to the potential customers.

PROMOTIONS

• To offer Students discount

• A massive TV campaign should be planned before launching the iphone.

• Create a Buzz everywhere-Both Online and offline

• Free Designer Cover with an iphone

Positioning

It’s not just a phone, it’s an apple iphone

STRENGHTHS WEAKNESSES

Well recognized ,product differentiation, unique design, easy to use product

Strong brand image, Brand stability ,High brand loyalty

Easy to Carry

ITUNES App for music and movies lover

Strongest player in mobile apps market More than (350,000 apps)

•High Price

•Limited Distribution Channels

•Product recalls, defects may harm reputation and as significant warranty and other expenses

SWOT ANALYSIS

Opportunities Threats Strong growth in smartphone markets to

boost Apple’s revenues

Robust outlook for mobile advertising market provides growth opportunity

Mobile advertising market is forecast to reach approximately $25 billion by 2015

Increasing demand of online music and other like cloud based services.

Rising popularity of Google Android may affect its market share

Very reliant on specific suppliers and component providers

Intense competition

Highly dependent on consumer purchases

Strategies to Capture Market in India

• Stronger Distribution Networks

• More number of retail stores for easy access

• Lowering the cost of products and maintaining the same quality standard.

• Tie ups with all the leading ecommerce companies (flipkart.com,jabong.com,amazon.com etc)

Conclusion

• It can be concluded that no company is big or small in terms of capturing market or attracting customers.

• If the marketing strategies are formulated and executed properly then the company is bound to earn profit.

• Therefore apple iphone has seen and understood the flaw and have redesigned its marketing strategies as per the current market trend and is now expecting a boom in its sales particularly in india.