Nirma Case Study_1405002

Apple Inc. Case Study 1405007

Steve jobs is the founder of this multi-billion dollar empire. It is one of the few start-ups which started in garage and transformed into the most valued organization. The company is mostly build on ideology of Steve jobs, to make it simple but innovative.

                                                                                                                                                            

About Technology Industry

Technology industries are basically who produces Computer hardware, Computer software, Consumer electronics, Digital distribution, gadgets, smart appliances etc. Apple, Samsung, Nokia, Microsoft, Dell, Lenova, Motorola etc. are the examples of technology industry. Tech industry is the most growing field of modern times with continuous improvement and inventions the world is different only in just 1 months

About Apple Inc.

Apple Inc. is an American multinational corporation headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, online services, and personal computers. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smart phone, and the iPad tablet computer. Its online services include iCloud, iTunes Store, and App Store. Its consumer software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and productivity suites.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to develop and sell personal computers. It was incorporated as Apple Computer, Inc. on January 3, 1977, and was renamed as Apple Inc. on January 9, 2007, to reflect its shifted focus towards consumer electronics.

Apple is the world's second-largest information technology company by revenue after Samsung Electronics, and the world's third-largest mobile phone maker after Samsung and Nokia.

The company’s best-known hardware products include Macintosh computers, the iPod, the iPhone and iPad. As of January 2012 the company operates 284 retail stores in ten countries, and an online store where hardware and software products are sold. Products- are goods or services that can be offered in an exchange for the purpose of satisfying a need or want. Apple’s approach is to focus on a small range of products and to act like a small boutique in delivering these artistically designed products. Apple’s branding may be termed ‘sleek, cool and hip’ and these qualities are increased by Apple’s loyal customer base. Apple acts as a trendsetter and their products are as much about the technology as they are fashion accessories.

The positioning of Apple’s products are of high quality, innovative and modern.

The packaging’s of Apple products are as much important as the actual technologies themselves. Attention  to the fit and finish of the box or packaging is a major part of Apple’s marketing strategy. A great deal of energy is invested in ensuring that every part of their products looks eye-catching, from the sleek hardware to the large photos on the box. The packaging is also an essential element to protect the products and package designs must incorporate this feature

Success Parameter

Growth Rate

In 2013, Apple Inc reported a dividend of 1.63 USD, which represents a significant increase over last year. The 19 analysts covering the company expect dividends of 1.82 USD for the upcoming fiscal year, an increase of 11.94%. 

Apple reached a financial pinnacle in 2012 when it became the most valuable company of all time. Thepeak value was not sustained, however, but the brand’s financial performance in 2012 was even stronger than 2011Growth RateIn 2013, Apple Inc reported a dividend of 1.63 USD, which represents a significant increase over last year. The 19 analysts covering the company expect dividends of 1.82 USD for the upcoming fiscal year, an increase of 11.94%. 

Market Share

 Apple share continues to hover around 40% to 41% which it has been doing since 20112-13 year.

Apple and Google combined have increased their share of the U.S. Smartphone market from 90.6% a year ago to 93.4% in February 2014.

Profit

Apple announced financial results for its fiscal 2014 second quarter ended March 29, 2014. The Company posted quarterly revenue of $45.6 billion and quarterly net profit of $10.2 billion, or $11.62 per diluted share. These results compare to revenue of $43.6 billion and net profit of $9.5 billion, or $10.09 per diluted share, in the year-ago quarter. Gross margin was 39.3 percent compared to 37.5 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.

Marketing Strategy of Apple Inc 

Apple was voted the overall winner of the 2012 CMO Survey Award for Marketing Excellence… yet again. Apple has been selected as the winner or co-winner for five consecutive years by the sample of top marketers. So why is Apple a great marketer? Here are Apple’s original three points: Empathy, Focus and Impute.

Apple has used these principles to become the world’s most valuable company (measured by market capitalization) and one of world’s most valuable brands. Here are ten strategies Apple has used to become one of the world’s greatest marketers:

•        Hire customer-obsessed, empathetic employees.
•        Iterative customer involvement.
•        Protect against scope creep and feature bloat.
•        Build compatible experiences.
•        Enable customer discovery and differentiation through Apple Stores.
•        Devise a business model that creates ongoing customer value.
•        Cannibalize when necessary. 

Innovation

•            With the customer at the nexus of everything it does, Apple continues to respond to emerging needs, improve its products, and break new ground in design and performance. The next Mac OS X, Mavericks, promises to keep users’ digital lives flowing seamlessly from device to device, and the new Mac-book Air boasts “all day” battery life. 
•             Living up to the brand’s iconic “Think Different” campaign, Apple’s designers and engineers remained the operating system that powers the iPhone, iPad, and iPod touch. Incorporating a more sophisticated tool to help protect users’ data and discourage theft, iOS 7’s innovative new features include an activation lock, which prevents a stolen phone from being reactivated, even if a device is wiped. 

 

Apple USP                              “THINK DIFFERENT”

Company main goal is to bring something new and innovative which can be part of the lives of people

Differentiation

•        Apple attempts to increase market demand for its products through differentiation, which entails making its products unique and attractive to consumers.
•        The company’s products have always been designed to be ahead of the curve compared to its peers.
•        Despite high competition, Apple has succeeded in creating demand for its products, giving the company power over prices through product differentiation, innovative advertising, ensured brand loyalty, and hype around the launch of new products. 
•        Apple's mobile operating system, iOS is restricted to Apple devices. This gives a sense enchantment and individuality to Apple's product. Apple cashes on this uniqueness; they tell the world that only they can deliver the very best no one else. And the customers do oblige.

Value Creation

As per apple, Value is not created by cost adding or branding more Value is anything that customer is willing to pay for. Apple creates value in their products by innovation, their superior design, aesthetic look.  Value is created by seeking innovations and creating an organization that can implement them. 

Value Capturing

Pod, the iPad and the iPhone are big money makers for Apple. While other companies are thrilled to be part of the supply chain for these highly successful products, their benefit in dollar terms pales in comparison to Apple’s. Among countries, China’s economy continues to play a surprisingly small role in comparison to the U.S., Korea, Japan and Taiwan.

Value Communication

Apple has mastered the art of demonstrating values without words. Apple has values like “design is paramount,” “form over function,” and even “Apple is cool.” 

Value Exploration

Company has always tried to explore new and add new perspective to any product. The company has carved itself a niche in the tech industry.

Internal and external marketing Strategy 

• Apple is one of the biggest technological designers in the world. The company manufactures and markets personal computer and technological gadgets such the well know iPod, iPhone, iPad and other hardware and software products.
• Apple also designs the applications that are going be used into this personal computers. Apple is one of the few companies in the industry of computers that designs and manufactures the entire product, from the hardware to the applications which are used in an Operational System also created by them.
• Apple has created a selling strategy by the creation of online stores, direct sales forces, third party wholesales and resellers in most of the countries around the world. Plus their own retail stores which are very sophisticated and unique in comparison to the competence stores, created an advantage over theme.
• Apple’s creates their products having in mind that the personal computers have entered into a new era in which all the new digital devises and other electronic products work around the computers. As we can mention the iPod the iPhone and the iPad, and even the Apple TV, all of these products are linked to each other making the personal computer the HUB of al these components that permanently share media and information through an internet connection, adding value to the internet and other pheriferical devices.
• The company will always be pursuing their strategy of creating devices that are linked to each other, creating a digital life by linking computers to electronic devise.

Customer satisfaction and dissatisfaction 

Create A Channel For The Perfect Customer Experience

     Rather than leave its primary customer interaction to random employees of big box stores, Apple took the risky and expensive step of creating its own chain of retail stores. By creating the Apple store – a store devoted to selling Apple’s own products – Apple created an environment that allowed them to manage every detail of the customer experience and dictate the customer’s interaction with Apple as a brand.

 Design An Environment For Customers To “Hang Out”

Not only did Apple’s retail gambit help them build the most valuable brand in the world, the Apple stores themselves are the most profitable retail spaces in the world, generating an average of $5,600 per square foot of retail space.

Rather than have their staff pressure customers into sales, customers are greeted by smiling, knowledgeable, passionate employees who encourage customers to experience the product. Apple managed to turn shopping for computers and phones into an enjoyable customer experience.

 Minimize Customer Service Problems With Tight Quality Control

Apple has taken unprecedented steps to ensure that the user experience for their smart phones and tablets are strictly controlled at a scale never before seen in mainstream operating systems. In their App store, Apple vets every piece of software before it can be installed onto an iOS device.

 View Customer Management as a Long Term Investment
     Studies have shown that these decisions have been directly responsible for Apple consistently placing number one in customer service satisfaction studies. These policy decisions all stem from viewing customer management as a long term investment towards building customer loyalty and improving retention.

 Have A Laser Targeted Business Focus

Steve Jobs understood that Apple was delivering more than just computers, phones and portable music players, Apple was delivering cool, elegant, reliable products that stood out from the crowd, and thus allowed its users to stand out from the crowd. By focusing only on delivering this experience to customers, Apple was able to build incredible – nearly fanatical – customer loyalty and user satisfaction.

Customer Retention and Survival

Attraction

·         New innovative products

·         Precious brand name

·         Making Unique product

·         Using huge marketing

·         Aesthetically strong products

Retention

• Approach with a personalized, warm welcome
• Probe politely to understand all customer needs
• Present a solution for the customer to take home today
• Listen for and resolve issues and concerns
• End with a fond farewell and invitation to return

Survival

·         The company has established a "heartfelt connection" with its customers.

·          This can take several forms, from building trust to establishing a community around a product.

 In Apple's case, its products are designed around people: "Take the iPod, it brings an emotional, sensory experience to computing.

Wants

• New innovative product
• Continuing large customer base
• Maintaining brand status

Demand

• Flexibility
• Mobility
• Reliability

Needs   

• Threat of competition
• Threat of buyers and suppliers
• Threats of substitutes

Marketing Mix

• Simple Concept
• Think about Cake- All cakes contain sugar, eggs, flour and milk.
• You can alter final cake by just changing the different amount of mix elements. So for sweet cake,       add more sugar.
• It is the same thing with marketing mix.
• The offer you make to your customer can be altered by varying the marketing mix.

PRICE

• Apple is a premium brand computer that does not attempt to compete on price. The company has reduced prices after some initial product launches.
• Apple adopted the “best fit segment” pricing strategy (skimming), where the early adopters were targeted who are less price sensitive and want to receive the benefits of new technology.
• The Apple iPad is priced at a minimum of $499
• Apples iPad pricing strategy includes the flexibility to lower the prices if consumer response dictates such action. This would be consistent with a similar $200 price cut on the iPhone in 2007.
• In 2009 Apple announced a reduced cost pricing structure for iTunes – songs will cost 69 cents, 99 cents or $1.29.

Place

• Apple, Inc Headquarters are located at is located at 1 Infinite Loop, Cupertino, California.
• The Apple Consultants Network includes independent professional service providers and technology consulting firms that specialize in Apple and third-party solutions. Certified on Apple technologies, these providers deliver on-site technology services and support to home users and businesses of all sizes.
• The company is clever to use the use the touch points of established networks (Vodaphone, O2, Orange, T-Mobile etc.) 
• Apple service providers are certified technicians, who complete regular Apple training and assessments, and offer repair services, and exclusive access to genuine Apple parts They are located in Asia/Pacific, Africa, the Middle East Europe and Latin America.

      

Promotion

• A wide range of certification exams and courses offer innovative learning opportunities for IT and creative professionals, educators, and service technicians—delivered exclusively by Apple Certified Trainers.
• The company uses all forms of advertising to gain attention, they appear on a regular basis on newspapers, TV, billboards etc. 
• In-store promotion and awareness helps in personal selling where the users can touch and test.
• Cross Promotions: the channel partners like Sprint, Orange, Vodaphone etc. promote iPhone packages on their websites and from printed booklets.
• Also the CEO has impressive presence in front of media to market the brand.
• The online Apple Store offers free shipping for orders over $50.
• The online Apple store offers iTunes gift cards.
• Apple provides a $100 rebate when you purchase a Mac or specific printers from the online store.
• Apple has packaged back-to-school offers, including some aimed at college students.

People

• The company wants to be in direct touch with the consumers and “when they feel it,  they will buy it” strategy.
• Stephen P. Jobs is the Chief Executive Officer of the Executive Board at Apple, Inc
• Non Executive Board Directors include William V. Campbell, Millard S. Drexler,    Albert Gore, Andrea Jung and Author D. Levinson.
• Some certified Apple service providers offer additional services beyond repairs and parts such as such as data transfer, data recovery, upgrade services, and onsite deployment and installation.
• The Apple Care Professional Video Support gives you direct access to Apple’s Professional Video Technical Support team via telephone and email 12 hours a day, seven days a week.

Physical Evidence

• Apple Inc’s main website is located at http://www.apple.com
• The Company has a good packaging strategy which makes the product look attractive and stylish on the shelf.
• The company has Apple Care service to resolve the problems and services offered by the company, geniuses’ bars to meet the direct customers and teaching them to make better users.

Process

• Apple converts new customers and secures their loyalty through a corporate emphasis on customer service.
• Apple seeks to attract its target market through bold public relations events (such as the MacWorld Expo) as well as advertising imagery which borrows from contemporary modern art.
• Apple has expanded its distribution channels in recent years including the addition of Wal Mart.
• Apple, Inc offers special discounts on refurbished MacIntosh computers, iPod Nanos, and the 8GB iPod Touch. In each case a 1 year warranty is included on the all product.

Target Market

• Apple’s target market consists of people with these characteristics:
• The Age groups of: 12-35 for Music Fans;
• Both Genders;
• Middle and upper economic class; that doesn’t hesitate paying more for a product that offers             higher quality and better experience;
• The educational level is mostly secondary or higher. Depending on the product, it could be a 5th grader as well as a professional filmmaker;
• Mostly residents of U.S. and Europe, but generally globally resided. Within the countries, the               target market mainly resides the cities
• From the lifestyle point of view it is people that get pleasure from technology and music but also           business people and graphic and moving media professionals.

        

       Target customers

       Students - Popular, fashion, functional, multimedia,

       Academic-  world Functional, practical, logical, good operating system,

       Creative-  professionals Creative, modern, activate, fashion, unique,

       Business and individual Worth, good value for money, modern

Market Segmentation

• Apple operates mainly in the technology industry, which is segmented in smaller sectors, like the     Computer Industry, Mobile-Device Industry etc. Apple is active in a number of segments,                 depending on the product-nature.
• The computer industry: with the iMac and MacBook desktop and laptop computers and partially         with the Apple TV  
• The smart-phone industry: with the iPhone
• The online-music industry: with iTunes
• The music-device industry: with the iPod
• The technological tools industry: with devices used for the main products mentioned above.

The 4 S’s of Marketing

 The 4 S’s

1. Service Dominant

2. Social Interaction

3. Sales Engagement

4. Superior Knowledge

Service Dominant That service elements of a product offering are far greater and more profitable than the product elements example: Apple® iPod + Apple® iTunes = Apples SDL offering

Social Interaction Organization Technology Long term relationships Technology Structure Institutionalisation, Adaptations Structure Strategy Interaction Process Individual Aims Experience Short term exchange episodes Experience Skills Products/services Skills Information Financial Social Source: Adapted with permission from Hokinson .

Sales Engagement • Sales are the connector and sculptor of business relationships • That offline and online gaining and retention of customers is crucial • Need to identify new market segments of Blue Ocean are important Source

Superior Knowledge • Knowledge is the defining competitive advantage today for sales and marketing professionals • It encompasses – Critical thinking – Brainstorming – Creativity – Calculated risk taking – Entrepreneurship

Philosophical Environment

       Undercover meetings! Stealth product developments! The world’s most successful company is obsessed with privacy.

      Many amazing things about Apple is how scrutinized it is. Rarely have a company, its products, and its top executive  the late Steve Jobs  been so thoroughly examined. And yet, for a corporation so frequently discussed, Apple is poorly understood. Its products are ubiquitous, but information about the institution is scarce which is exactly how Apple wants it. Apple steers the conversation to its gadgets  for sale at an Apple store near you!  not its modus operandi. company labors to keep the world from knowing what’s going on inside its walls, with secrecy, both external and internal, being one of Apple’s key tools. It’s ironic, really. The business world keeps nattering on about the importance of corporate transparency, yet the most successful company in the world is beyond opaque.  Apple’s covert ways and provides a road map for less-buttoned-up companies to follow.

·     Apple employees know something big is coming when the carpenters appear in their office building. New walls are quickly erected. Doors are added and new security protocols put into place. Windows that once were transparent are now frosted. Other rooms have no windows at all. They are called lockdown rooms: No information goes in or out without a reason.

Marketing Environment  

Apple's marketing environment factors are several which includes, technological factor, inflation, and competitive factor. As we experience changes in our environment Apple's strategy tries to remain constant focusing on their major impact on their environment. When it comes to the technology aspect, Apple use various technological innovations that help in increasing productivity and improving the quality of their products. Although Apple had faced some problems with their products that where affecting the environment and its consumers. Apple executed those changes into solving them by showing their customer that Apple Cares, and giving them information on their future improvements on their products. As new season comes Apple tires to improve their products by reinventing their previous products and making them more creative, enjoyable and more usable that always impact the society. One of Apple's improvements that helped within the environment was when Apple started removing toxic part on their products, and providing products with less materials, lighter in weight and sizes also products with less electricity consumption. In our environment many consumers are concern on what they purchase, and they make sure is worth the products.

      When it comes to competition, Apple's makes sure they stay on the top with their high-tech products within the market. By creating very modern, advance and usable products. Apple's mainly competition are Microsoft, other main computer companies, and even music products in the music industry. Apple provides as huge variety of uses in their products such as the iPod and iPhone. Within the environment Apple's consumers are based on age, professionals and everyone else. Many young people, professionals, college students are their primary customers and so Apple popular products attracts those customers, that in the competition market other company stay behind and Apple strives in changes of the environment.