Apple Inc.

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timer Asked: Nov 18th, 2016

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This is the paper which you helped me before, but I got a low score due to less information. Can you help me revise this paper? There are some suggestion from my professor. There is no information about want and need. Please help me add information here.

Apple Inc.
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Apple Inc.
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Apple Inc.
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Running Head: APPLE INC. MILESTONES Apple Inc. Milestones 1 APPLE INC. MILESTONES 2 The failure or success of a company entirely depends on the managerial decisions formed by the leadership of the company. Every company’s corporate strategy must be aligned with the set objectives and goals and requires continuous assessments and evaluations to ensure goal focus is maintained. Over the years, Apple Inc. has been one of the most valuable companies in the world whose success has been greatly influenced by the managerial decisions. The corporate mission statement of the company focuses completely on the existing products and offering by the company in the preset day. Since, a corporate mission defines the future vision of the company, the Apple business is driven by its corporate mission. The company mission statement has evolved overtime to cater for changing market conditions and organizational changes. In this regard the paper will analyze the branding and ideal context as well as the product or service need of Apple Inc. The mission statement currently states that “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile and computing devises with iPad.” These details are vital in setting the baseline for the future launch of Apple new products and service. Apple new products and services are in line with its mission statement of defining the future of mobile and computing devices in that the company continually invests in research and development on mobile devices, internet and other related media. The corporate mission of the company is reliable and accurate in defining the company’s situation and goals (Aguirre‐ Rodriguez, 2014). Apple Inc. should market its products through linking both internal and external markets. This can be achieved through ensuring that its employees have a passionate and emotional APPLE INC. MILESTONES 3 connection with the new products and services even before they are availed in the market. In winning the internal market, the company should ensure that the products and services are of good quality. In the presence of such connections, the employees will not be able to undermine other advertising expectations. When the apple employees care about and believe in the brand, they will be inspired to perform and it increases their loyalty to the company. A common identity and sense of purpose unites employees hence motivating them to spread a positive word of mouth about the company and all its brands. The marketing department should be able to convince the employees of the brand power and the brand uniqueness. They should also inform them of the branding efforts and the new advertising campaigns about the company new products without basically selling them the ideas. For external marketing, Apple uses distinct and unique brand image, design, functions and software’s with well-defined marketing strategies. For instance, all marketing materials and product lines should be different in packaging, branding, advertisements and even quality to entice customers each in its own way that is incomparable to the competitors. Apple also utilizes the strategy of marketing the new products through making clear presentation that reveals all the details about the new product to reporters, the people and mass media and impressing them on the uniqueness of the new product before it is actually launched in the market. This ensures that the expectations of the consumers are embraced and the brand image is maintained for the success of the new product in the market. The company also invests heavily in advertisements and social medial marketing of the products creating a wide knowledge of the launch of the new product its capabilities to prepare the consumers of what they expect (Gruner, Homburg & Lukas, 2014). APPLE INC. MILESTONES 4 In order to maximize on profits, Apple utilizes skimming strategy at the launch of its products before its competitors create substitute products at low prices. The company utilizes a multifaceted strategy that Steve Jobs its former CEO had developed. The strategy involves the creation of small number of new products that focus entirely on high end, prioritizing maximization of profits over market share developing such and effect on the customer’s expectation to crave for more of Apple new products. Its objective is to initiate premier new products with features of high quality compared to the competitors and add a premium on the prices. For instance, the market share of Apple ranges between 15% and 12% compared to the global market share of Samsung which is 32%. The company increases the demand for its products through marketing attractive and unique products with price differentiation sin different segments in the globe. Despite the high competition, Apple has been able to align its marketing strategies with marketing position and corporate mission through attaining power over introduction of new products, product differentiation, effective branding and packaging, and innovative advertisements. It has therefore been capable to set up artificial entry obstacles for competition by concentrating on customers who are enthusiastic to pay more and sustain a premium price per unit volume cost. It narrows down to small basic questions like why buy Mac and not Dell? Instead of buying LG why buy Apple? Apple as a company is keen on understanding consumer behavior and tailor their products to meet their specific need. Understanding consumers need and what is expected in the market has helped the brand to structure a core segment of enthusiastic discipline of its consumers. For instance, there are some consumers who are fanatically devoted to Apple products to the extent of buying two iPhones for oneself. The company possess a rare ability of creativity genius and marketing that has enabled it to get inside consumers’ minds and understand what really APPLE INC. MILESTONES 5 captivates them. The consumer behavior is influenced by psychological, social, personal and cultural purchase influence as well as other non-controlled factors such as social classes and subcultures. This Apple love affair with the consumers has enabled the company to successfully introduce new products in the market and has produced stunning sales and profit results (Jefferson & George, 2014). Apple consumers have the unsatisfied need of products that represent their lifestyle and values that are distinct from many others. The products should have a lifestyle personality that represents an exclusive intellectual characteristics that differentiate a person or a group like defensiveness, self-confidence, adaptability, autonomy and dominion. These gap in the market has enabled Apple to grab the opportunity and close it through availing new products that meet the consumer needs of lifestyle and values. Apple consumers seek information to fill their need in the Apple stores. The company has provided an environment whereby the consumers can interact at an individual level with experts at the retail stores where they connect and air their needs and expectations in the new products. This enables the company to tailor made the products specifically to meet the specified needs of the consumers through putting their consumers first (Nielson, 2014). The products of Apple from the old to the new launch of Macs can be purchased through Apple stores, retail stores and online in the Apple website. Consumers have the choice of collecting adequate information about a company products online from the internet shopping sites like Amazon.com and other consumer-generated review sites like Epinions.com. This sites offers the consumers price information, buying tips and product rating that they can rely on before making the bold decision of investing in product. Other buyers consider company websites, salespeople, brochures and advertisements to collect information about a product before buying them. This has enabled global availability of the company’s products in different market segments APPLE INC. MILESTONES 6 as well as adequate information about the products making it easy for customers to access know what they want and buy it. The target market for the company includes teenagers, university and college students, business people, adults, young children’s and kids. The target market choice of Apple products is the best because it caters for all types of customer needs. For instance, the teenagers prefer to use MacBook, iPads and iPhones to quickly and tidily record notes.in addition, the devices are very light and portable hence can be carried anywhere. Business people also find it convenient to use Apple products in communication as well as sharing well organized documents with colleagues and business partners making the devices perfectly fit for the purpose. Adults also find iPhones mesmerizing in terms of camera quality, browsing in the internet, communication and map directions enabling them to maintain their loyalty with the brand. The brand has therefore been able to reach the needs of each of the stated target markets effectively and efficiently gaining competitive advantage through market segmentation and product positioning (Larivière et al, 2013). All companies face two categories of costs that include fixed and variable costs. Fixed costs are costs that remain constant during the entire financial period and are independent of output. Such costs are not subject to change hence are considered sunk and they range from rent, machinery, building among others. Variable costs on the other hand represent those costs that are subject to change and rise at a constant rate with respect capita and labor. They may include production materials, wages, utilities and many others. For instance. Considering the short-run production of iPhone 5; APPLE INC. MILESTONES iPhone 5 per unit Fixed Costs Variable Costs Item price Mark up 7 Amount $61.18 $226.85 $650 $ 68.9 The company managed to sell 12.3 million iPads in 2014 the third quarter and the fixed cost per unit can be determined by apportioning the fixed cost with the number of unit sales. In comparison with the information with the previous year’s iPhone sales, the current market for the devices has in the last five quarters declined significantly. If the company continues to lose its market share, there will be a significant fixed cost per unit rise in the long run causing a decline in profits forcing the management to develop new strategies that are less expensive and offer faster updates (Liu, Kim & Wang, 2016). Variable costs are also affecting Apple especially labor and raw materials in manufacturing new products. Based on research and development, the company is able to know the demand in which high demand results to high cost of production in terms of labor and materials. In the short term, this may cause the company to invest huge amounts in production of the new product causing a temporary loss. However, the variable cost should be controlled to ensure it does not go below the average amount. In the long run, the variable cost reduce as the company produces less of the product and gains more profit on the units already in the market. Apple utilizes a premium pricing strategies for all its products because its objective is to provide a high quality device that gives the customers a great experience. It echoes the four plans by Steve Jobs that stated that the company will offer small number of products, focus on the high end, give priority to profits over market share and create a halo effect that makes people starve for new Apple Products. In this respect, apple products happen to be highly differentiated from those of competitors like Samsung hence occupy a very distinctive competitive edge in the minds of the APPLE INC. MILESTONES 8 customers. Samsung offers mobile devices at low-cost pricing strategy in comparison to Apple hence attract many customers due to affordable prices. This price differentiation is created due to the product differentiation of the two companies with Apple going for a more distinctive and unique touch that gives the customers a sense of expensive lifestyle and values. Even though Apple products are highly costly, the company has continually been one of the most successful innovations realizing huge profits that are much high compared to its competitors. Due to the brand effectiveness and reputation the company has built over the years it has been in operation, the customers have been able highly appreciate apple products from iPhone, iPads, Macbooks, iMacs among others highly distinct products. In this respect, the customers have been able to maintain brand loyalty and continually starve for new Apple products which quench their thirst of highly valued features they possess. Therefore, the customers are more than willing and able to purchase Apple products at a premium per unit item without complain with regards and appreciation of quality and uniqueness the products are identified with. For instance, the price of iPhone 7 32 GB is $399.99 and customers are willing to pay up to $670 for a 128GB iPhone. The customers are willing to pay at least $100 more for Apple products than for its competitor like LG and Samsung. These is due to customer preference of the brand which has never disappointed in the past decade of operation in quality and uniqueness. Apple products give the consumers the feel of being better simply because they possess an Apple phone. The advertisements are very attractive and breathe of lifestyle, value, class, passion, innovation and style that everyone would be part off. This has been the motivation of Apple customers to continually purchase the very expensive termed products as the company keeps evolving and availing new exciting and refreshing products launches. The company is consistent APPLE INC. MILESTONES 9 in its products and avails devices that are user friendly and readily available in all market segments (Taylor & Granatstein, 2013). The skimming pricing strategy also known as premium strategy is the most appropriate for Apple Inc. this is because Apple customers are loyal and happy with new Apple products hence willing to pay a premium in order to acquire them hence the company is able to maximize on profits. Due to product differentiation, the company is able to attain a large market share as a result of lack of close substitutes in the market and there are barriers to market entry. Apple symbolic authority and power has been able to have excess control over the wallets of consumers despite the high prices for their products in comparison with androids with similar technical specifications. However, the gap between pocket-friendly and premium smartphones is narrowing and many people have started targeting the low priced smartphones a move that will threaten the future of Apple products if the company goes on with the premium pricing strategy. In conclusion, Apple has chosen a milestone direction within the market place. The company has over the years proved to have a strong organizational purpose within the market place, knowledge of consumer preferences and how to meet them timely with the appropriate pricing strategy that maximizes shareholders interest. The management is therefore fully capable of maximizing the efficiency of the business activities and more probable in satisfying the needs of the targeted market segments. The company had been able to differentiate its products from those of its competitors through branding with respect to buying style, demographics and personality. Since, a corporate mission defines the future vision of the company, the Apple business is driven by its corporate mission. Therefore, the paper has analyze the branding and ideal context as well as the product or service need of Apple Inc. References APPLE INC. MILESTONES 10 Aguirre‐ Rodriguez, A. (2014). Cultural factors that impact brand personification strategy effectiveness. Psychology & Marketing, 31(1), 70-83. Gruner, R. L., Homburg, C., & Lukas, B. A. (2014). Firm-hosted online brand communities and new product success. Journal of the Academy of Marketing Science, 42(1), 29-48. Jefferson, D. A., & George, B. P. (2014). Creative market segmentation process, global positioning, global product design and successful global brands. Larivière, B., Joosten, H., Malthouse, E. C., van Birgelen, M., Aksoy, P., Kunz, W. H., & Huang, M. H. (2013). Value fusion: the blending of consumer and firm value in the distinct context of mobile technologies and social media. Journal of Service Management, 24(3), 268-293. Liu, H., Kim, K. H., & Wang, H. (2016, July). The Influence Of Sustainable And Innovative Product Packaging On The Chinese Consumer Behavior. In 2016 Global Marketing Conference at Hong Kong (pp. 1736-1736). Nielson, S. (2014). Apple’s premium pricing strategy and product differentiation. Market Realist, 6. Taylor, M., & Granatstein, D. (2013). A cost comparison of organic and conventional apple production in the State of Washington. Crop Management, 12(1).
MBA 560 Milestone One Guidelines and Rubric This milestone establishes your chosen organization’s direction within the marketplace. This is important because it drives the subsequent activities, milestones, and the final project. Without a strong sense of the organization’s purpose within the marketplace, knowledge of consumer trends, and how to meet target market needs at the appropriate price, management is less likely to maximize the efficiency of business activities and more likely to miss fully meeting the needs of its chosen target market. This milestone establishes how the organization will differentiate itself from its competition through branding with a unique product or service offering designed to meet specific consumer needs or desires that are shaped by their demographics, personality, or buying style. Specifically, the following critical elements must be addressed: Section Two: Branding and Idea Context For your project idea, write a short paper that addresses the following:  Corporate mission and how the new product or service aligns with it  Defining features of the product(s)/service(s) o How the product will be marketed internally and externally o How the company is differentiating from competition o Alignment of pricing with market position and corporate mission  Your substantiated opinion of brand effectiveness Section Three: Defining Product or Service Need For your idea, continue your paper by addressing the following:      Behavioral and/or lifestyle demographics of the targeted consumer or buying style of organizational buyer and why they are a good choice What unsatisfied need the product/service fulfills How the customer/buyer seeks information to fill the need How the product is purchased (characterize the buying situation) Why your chosen target market is the best choice Section Six: Pricing Using the idea that you have chosen, finish your paper by covering the following:  Explain the fixed and variable costs and how these fit with the company’s short- and long-term goals. Use a narrative with a table to show calculations for cost categories. Provide reasonable estimates for each of the categories. Specific or in-depth financial analysis is not necessary.  Examine competitors’ pricing and explain reasoning for differences.  Estimate how much you think the target market is willing to pay for your product/service. Is this due to preferences for social responsibility, ethical behavior, or other intangibles?  What pricing strategy (skimming, penetration, economy, or premium) is most appropriate and why? Guidelines for Submission: Milestone One should utilize double spacing, 12-point Times New Roman font, one-inch margins, and discipline-appropriate citations. It should be 8-10 pages in length and follow all APA formatting requirements. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Context: Defining Features Context: Fits Context: Effectiveness Proficient (100%) Lays out the key defining features of company’s brand and how these features drive business decisions Assesses how new idea fits with company’s existing brand and how that impacts business plan, supported by relevant research and analysis Evaluates effectiveness of existing branding efforts, including implications for new product or service, supported by relevant analysis Needs Improvement (70%) Lays out defining features of company’s brand and how they drive business decisions, but response omits key features, contains inaccuracies, or connections between brand and decisions are perfunctory Assesses how new idea fits with company’s existing brand and impact on business plan, supported by research and analysis, but response is cursory, omits key details, contains inaccuracies, or support is not relevant Evaluates effectiveness of existing branding efforts, including implications for new product or service, supported by analysis, but response is cursory, omits key details, contains inaccuracies, or support is not relevant Not Evident (0%) Does not lay out defining features of company’s brand and how these features drive business decisions Value 8 Does not assess how new idea fits with company’s existing brand and how that impacts business plan, supported by research and analysis 8 Does not evaluate effectiveness of existing branding efforts, including implications for new product or service, supported by analysis 8 Need: Target Market: Basic Demographics Analyzes key demographic features of target market, supported by relevant research Need: Target Market: Other Analyzes other behavioral or psychographic characteristics of target market, supported by relevant research Need: Want or Need Analyzes how new product or service meets a specific want or need of target market, supported by relevant market research Need: Why Defends choice of target market relative to product success, based on analysis of target market’s characteristics, needs, and wants Pricing: Costs Determines fixed and variable costs associated with new good or service and how costs fit with company objectives, supporting narrative with table showing calculations and assumptions Pricing: Pay Judges how much target market is willing and able to pay for product or service, using target market analysis and research on close competitors’ prices to justify response Analyzes demographic features of target market, supported by research, but response is cursory, omits critical features, contains inaccuracies, or support is not relevant Analyzes other behavioral or psychographic characteristics of target market, supported by research, but response is cursory, omits key characteristics, contains inaccuracies or support is not relevant Analyzes how new product or service meets a specific want or need of target market, supported by market research, but response is cursory, omits key details, contains inaccuracies, or support is not relevant Defends choice of target market relative to product success based on analysis of target market’s characteristics, needs, and wants, but defense is cursory, illogical, contains inaccuracies, or is not wellsupported Determines fixed and variable costs and how fit with company objectives, supporting narrative with table showing calculations and assumptions, but response omits key details, contains inaccuracies, or is based on faulty assumptions Judges how much target market is willing and able to pay for product or service, using target market analysis and research on close competitors’ prices to justify response, but response is cursory, contains inaccuracies, or is not wellsupported by research and analysis Does not analyze key demographic features of target market, supported by research 8 Does not analyze other behavioral or psychographic characteristics of target market, supported by research 8 Does not analyze how new product or service meets a specific want or need of target market, supported by market research 8 Does not defend choice of target market relative to product success, based on analysis of target market’s characteristics, needs, and wants 8 Does not determine fixed and variable costs associated with new good or service and how costs fit with company objectives, supporting narrative with table showing calculations and assumptions 8 Does not judge how much target market is willing and able to pay for product or service, using target market analysis and research on close competitors’ prices to justify response 8 Pricing: Preferences Pricing: Strategy Writing (Mechanics/Citation) Evaluates whether targeted consumers are willing and able to pay more for product or service if it aligns with their preferences for socially responsible and ethical behavior, justifying response with evidence Justifies pricing strategy and price selection for new product or service in light of analysis Minor errors related to organization, grammar, style, and citations Evaluates whether targeted consumers are willing and able to pay more for product or service if it aligns with their preferences for socially responsible and ethical behavior, justifying response with evidence, but response is cursory, contains inaccuracies, or is not wellsupported by evidence Justifies pricing strategy and price selection for new product or service in light of analysis, but justification is cursory, illogical, contains inaccuracies, or is poorly-supported Some errors related to organization, grammar, style, and citations Does not evaluate whether targeted consumers are willing and able to pay more for product or service if it aligns with their preferences for socially responsible and ethical behavior, justifying response with evidence 8 Does not justify pricing strategy and price selection for new product or service in light of analysis 8 Major errors related to organization, grammar, style, and citations Earned Total 12 100%
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