Apple Inc.

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Central Problem

The case study analysis is based on Apple Inc’s products and its marketing abilities to satisfy loyal consumers. It discusses how Apple has been able to keep producing competitive and innovative products, in keeping with the changing demand and tastes of consumers.

Apple Inc is a leading innovator producing designs with no substitutes in the market. Some of these “product innovations include the iPod, iMac, iPhone, and iPad” (Kotler & Keller, 2012). However, the company has to play hard to remain competitive through the manufacture and the marketing of revolutionary products.

Analysis of Situation

The market for Apple evolutionary products is well segmented and differentiated. By targeting the music lovers (Kotler & Keller, 2012), Apple Inc has been able to market the iPod to people who love to listen to music at any place and time. The most appealing aspect of Apple’s marketing abilities is the ability to reach all people even if they have never had the chance to use its products.

For reason, the company has been able to displace the Walkman with the innovative iPod. Apple has also managed to shift its marketing strategies and involved mass electronic retailers in an attempt to quadruple the number of existing outlets (Kotler & Keller, 2012).

To advertise, the company uses the pull strategy whereby marketing activities are directed towards the final consumers with the aim of inducing them (Kotler & Armstrong, 2010). This strategy has seen the iPod increase its popularity, in effect increasing the market share of Apple’s products and performance. Through personal selling, the company was able to sell millions of pieces of iPhones in 74 days (Kotler & Keller, 2012).

Apple Inc has been targeting the technologically savvy generation that understands modern methods of marketing. The company has been using valued added pricing strategy by reducing the prices of iPhone and including new features like apps, video games, video capabilities, impressive pictures, and fast processor. The launch of the iPad has increased Apple’s market share even more.

The strength of Apple Inc is that it has invested in research and development to design new products using the latest art of technology. The success of iPod has enabled the company to successfully reach the different segments in the market (Marketing Teacher Ltd, 2011). This has increased its market share and paved way for its other products like the iPhone and iPad. The company has also specialized in IT brands for its products.

This has ensured repeat business for loyal customers. On the other hand, one of the weaknesses of Apple Inc is a report that the Apple iPod Nano screen was faulty (Marketing Teacher Ltd, 2011). This forced the company to replace the faulty devices and batteries.

There has been a complaint on the downloadable music files (Kotler & Keller, 2012) as well, and this has put Apple under pressure to increase the price of music (Marketing Teacher Ltd, 2011). Music producers see iTunes as a weakness that is affecting the music industry.

Identify Alternative Strategies

Alternative strategy applicable in ensuring that Apple remains on top of producing innovative products includes increased research and development. This can only be achieved through the allocation of finances to programs to increase innovations.

This would increase its market share by keeping loyal customers. The drawback is that Apple requires financial investment in these programs. Another strategy could be a continuation with value added pricing strategy to increase customers and market share. Its drawback is to invest more financially.

Course of Action

Apple should continue investing more in research and development to design more innovative products that would satisfy its loyal consumers. This would sustain the organization’s goals although it would have an impact on its budget as more finances would be required. It is recommended that the company adopts the alternative strategies discussed.

To achieve this, Apple Inc has to increase its financing, carry out market research to determine consumer satisfaction and how the company is fairing in the market. Apple also needs to undertake an evaluation of the actual and standard progress of its innovative products as a way of checking market and product performance.

Reference List

Kotler. P., & Armstrong.G. (2010). Principles of Marketing. New York: Pearson.

Kotler, P., & Keller, K. L. (2012). Marketing Management (14 ed.). New Jersey. Pearson/Prentice Hall.

Marketing Teacher Ltd. (2011). SWOT analysis Apple. Web.

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