Introduction
The marketing approach used by Apple to promote its Apple Watch is based on the company’s mission. Indeed, the mission statement of the Apple Corporation holds that the organization strives for performance excellence in an attempt to ensure exceptional customer experience (Podder & Paul, 2020). The company’s Apple Watch product has been one of the significant wearable device lines. The marketing plan for this product is addressed in this paper through the perspective of situational analysis, SWOT analysis, marketing objectives, and strategies.
Situational Analysis
The environment in which a company function informs its marketing decision-making. In terms of its internal environment, Apple posits itself as a leading manufacturer of “smartphones, personal computers, tablets, wearables and accessories,” and related services (Apple Inc., 2021, p. 1). With a history of over forty years, Apple continues to lead technological trends in the digital device innovation industry (Tien, Dat & Chi, 2019). Currently, the range of Apple’s products includes iPhone, Mac, iPad, wearables, home, and accessories (Apple Inc., 2021). As for services, they are comprised of advertising, Apple Care, cloud services, digital content, and payment services (Apple Inc., 2021). The company’s financial performance is characterized by a steady growth, which is exemplified by a net sales increase of “33% or $91.3 billion during 2021 compared to 2020” (Apple Inc., 2021, p. 20). Due to continuous innovation, Apple remains competitive in an aggressive industry (Kotler et al., 2020). In terms of non-financial performance, the company successfully distributes its primary products and services with the innovations applied for their updating each year.
Apple’s economic setting is characterized by its dependence on global economic trends in general and domestic economies of the countries where the organization has its operations. The economic crises after COVID-19 have been damaging for the company (Apple Inc., 2021). When analyzing Apple’s social and cultural environments, one might note that the overall consumer preference for wearable technology creates an opportunity for sustainable success (Apple Inc., 2021). Importantly, the technological environment is particularly relevant to Apple because of the necessity to obtain a stable position in a competitive industry of digital device manufacturing (Kotler et al., 2020). Thus, the environmental analysis allows for stating that Apple relies on economic, social, and cultural trends while leading change in the technological sphere.
SWOT Analysis
The company’s value is the highest in the industry; it has a reputable brand; the technological, research, and development aspects drive industry trends (Apple Inc., 2021; Li, 2021). As for the weaknesses, the company is predominantly concentrated on high-income consumers, limiting its potential customer base growth; its products and services are high prices (Podder & Paul, 2020). In addition, the company’s expending in software development and streaming services is perceived as a weakness due to insufficient expertise and high competition in these fields (Apple Inc., 2021; Podder & Paul, 2020). Overall, the company’s powerful internal features outweigh its weak points.
As for the external environment, the company’s potential opportunities involve its advancement in terms of technologies, human capital, and sustainability. Indeed, the company has an opportunity to maintain its stable customer base growth using price differentiation and continued global presence (Li, 2021). The strive for green technology, talent attraction with the prioritization of diversity and inclusion, and the investment in wearable technologies are potential successful areas of operations (Li, 2021; Tien et al., 2019). As for the threats, the company envisions multiple risks associated with the unstable economic situation and the entry of new rivals into the industry. Moreover, the company faces significant competition; its performance is at risk due to legal and political strategies in countries where the company has its suppliers and distributors (Apple Inc., 2021). Thus, the critical points informed by the environmental analysis include the need for strengthening competitive advantage, investment in wearable technologies, and diversification of pricing policies.
Marketing Objectives
The corporate marketing objectives of Apple include increasing market share and establishing a leading competitive position in terms of technological development. According to Apple Inc. (2021), the convenience of use, exceptional consumer experience, and brand reliability are the priorities for the organization. As for the specific marketing objectives for Apple Watch are related to promoting the product among a range of potential customers within the premium market segment. The company positions the products as unique, innovative products, which is why the marketing objective is to target the premium demographic to achieve customer loyalty to the exceptional quality of the product (Podder & Paul, 2020). Overall, the objective is based on the ability to sustain the current premium consumer base and expand it to obtain more competitive advantages.
Marketing Strategies
The target markets for Apple Watch are the consumers from a high-income level community on a global scale with interest in technology. In terms of product quality, the wearable device offered by Apple is reliant on recent digital developments and yields an exceptional consumer experience, which is supported by brand reliability (Apple Inc., 2021). The consistency of product quality is ensured through the company’s customer support services and Apple Care, which are designed to ensure that consumer needs are prioritized.
As for the pricing strategies, the pricing is motivated by market segmentation and targeting of premium consumers. Apple “successfully attracts customers into its stores while also driving sales per square foot to a magnitude greater than any other typical retailers” (Podder & Paul, 2020, p. 31). The establishment of high prices for the product is induced by a high pricing competition in the industry and the differentiation strategy utilized by the organization (Apple Inc., 2021; Tien et al., 2019). The promotional strategy used by the company to market Apple Watch is characterized by an experiential approach (Podder & Paul, 2020). It relies on limited advertising and showcasing of the product, with acute attention paid to the consumers’ in-store experience. The value is created through the branded positioning of the product that implies exclusive access to the Apple Watch for premium consumers.
Conclusion
As for product strategy, Apple offers customers a high-quality product made from expensive materials. Thus, the price is consistent with what level of device the consumer receives. Apple Watch is currently at the growth stage in the product life cycle. The product delivers value through exceptional quality and experience convenience prioritization. It is recommended to maintain the product strategy to meet the need of the target market.
The company releases new devices every year, so the main recommendation may be to reduce the starting price. However, Apple uses high-quality materials such as glass and aluminum, which is why the company has decided not to cut prices permanently. Since value is created via high prices for differentiated products of premium quality, it is recommended to diversify pricing strategies by offering discounts to loyal customers.
The corporation was able to attract other companies to conduct promotions instead of itself. All iPhone advertising is paid for by network operators who want to sell Apple products. For promotional strategy, it is recommended to diversify promotional campaigns by intensifying conventional advertising to meet the target market’s needs and expand the consumer base for consistent competitive advantage.
References
Apple Inc. (2021). Form 10-K. Web.
Kotler, M., Cao, T., Wang, S., & Qiao, C. (2020). Marketing environment in the digital transformation. In Marketing strategy in the digital age: Applying Kotler’s strategy to digital marketing. Web.
Li, Y. (2021). Apple Inc. analysis and forecast evaluation. Proceedings of Business and Economic Studies, 4(4), 71-78.
Podder, R., & Paul, S. (2020). Marketing as an experience design: Experiential marketing in the context of luxury brands. In 4th International Conference on Business, Management, and Economics (pp. 27-36). Web.
Tien, N. H., Dat, N. V., & Chi, D. T. P. (2019). Product policy in international marketing comparative analysis between Samsung and Apple. International Journal of Research in Marketing Management and Sales, 1(2), 129-133.