APPLE

Marketing Strategies

Architects of APPLE
Steve Jobs
Co-Founder/CEO/Director.
Perfectionist , co-founded APPLE with Steve

Wozniak.
Timothy Cook
Present COO.

Significance to
Leadership
Discovery of untapped resources.
More dedicated and loyal

customer base.
Higher profit margins.
New sources of sustainable
competitive advantage.

Research Methodology
Secondary research
Quality research
Environmental scanning and

monitoring.
Peer reviewed journal articles.

Situational
Analysis
Internal Factors

Corporate Culture
Work hard , Play hard mentality.
Worlds most admired company.

Organizational Structure
Non-Traditional
Team and department divisions.
Very informaland non-

hierarchical.
Cook still very much in control.

Operations
Corporate headquarters in

Cupertino , CA.
Most manufacturing in China.
More than 200 supplier code
stores worldwide.

Sales Breakdown
Sales
U.S.
Other
Countries
Total

$ Million

% of Total

16,870

44

19,667

56

36,537

100

Sales Breakdown
Operating Segments
Country

$Million

%of total

Americas

16,142

44

Europe

9,365

26

Retail

6,574

18

Japan

1,831

Other

2,625

Total

36,537

100

Financial News
April 20,2016: Apple announced

fiscal 2016 Q2 results

Revenue of $50.6 billion
Quarterly profits of $10.5 billion
Stock price $252.36/share
Holds over $40 billion of cash
reserves

Financial News

Financial Summary
Positive prediction for financial

growth
Profit margin leveling out
Strong Ratios

Marketing
Four Ps
Product
Price
Place
Promotion

Marketing Product
Apple Inc s Product

Strategy is:
Supply superior ease-to-use
Seamless Integration
Innovative industrial design

Marketing Product
Two main types of products
Hardware

Personal computers
Portable devices
Software
iTunes
Final Cut Pro

Marketing Price
Value based pricing model
Variables pricing for iTunes
Fixed pricing over all

We dont know how to make a $500

computer thats not a piece of junk
-Steve Jobs

Marketing Place
Distribution:Sales force
Third party wholesale

Marketing Place
Distribution Channels:
Resellers
Large distribution
Online stores
No franchises

Marketing Promotion
Promotional Techniques:
Test drive a Mac 1983
iPod as a contemporary art
Celebrity Involvement

Human Resource
Management
1. Recruiting
2. Hiring
3. Training
4. Retaining

HRM Recruiting
1) Online

2) Universities

3) Internships

Source: Apple

HRM Hiring
Online Application
Interview Process
Skilled Employee

Source: Apple

HRM Training
New Technology(SEED
Programme)
Career Advancement

Source: Apple

HRM Retaining
Fun, innovative work environment
Possibility for career
advancement
Product Discounts
Great Benefits
oHealth and Life Insurance
Source: Apple

HRM Retaining
Working at Apple is a whole different
thing. Because whatever you do here,
you play a part in creating some of the
best-loved technology on the planet.
And in helping people discover all the
amazing things they can do with it. You
could call it work, or you could call it a
mission. We call it a blast. - Apple

Source: Apple

Situational
Analysis
External Factors

Macroeconomic Factors
Demographic Factors
Technological Factors
Natural Factor

Technology
Industrial trends
Tablet PC
Internet Capabilities
Battery Life
Compatibility

Direct Competition
A product or brand that

competes in the same industry or

product category
Google-Android Software
Samsung-Smartphones
Microsoft-OS marketing System
Source: Hewlett-Packard; Dell; IBM

Indirect Competition
Product that provides an

alternative activity that one

might choose over using Apple
Video Games
Television
Digital Video Disc (DVD)

SWOT
Analysis

Strengths
Strong cash base
Intellectual capital
Technology leader
Brand image
Charismatic leadership
iTunes Store

Weaknesses
Lower profit margins
Dividends rarely paid
Lack of succession planning
Presence in business arena
Underdeveloped customer relationships

Opportunities
Digital business strategies
Customized user experience
Strengthen brand
Expand strategic alliance
Global expansion

Threats
Technology
Volatile customers
Competition

Google

Present Scenario
Apple has 98,800 employees as

of 2016.
Net profit increased from 8.5%
in 2014 to 11.1% in 2015.
EPS doubled since 2015 to
$2.33.
Positive Future Financial.