This presentation is about different marketing strategies adopted by Apple Inc. to generate sales and penetrate the market and generate recurring sales.
2. About Apple
• Apple Inc. is an American multinational technology
company headquartered in Cupertino, California that
designs, develops and sells consumer electronics,
computer software and online services.
• Apple was founded by Steve Jobs, Steve Wozniak &
Ronald Wayne in April 1976 to develop and sell
Wozniak’s Apple I personal computer.
• On August 19, Apple became the first US company to
cross $2 trillion market cap, securing a position as the
most valued company in this world.
3. Marketing Strategy
• Marketing Strategy adopted by the company is called
‘HUNGER MARKETING’
• In one common application, a company offers a product for
sale and attracts customers with bargain pricing. The
business then limits the available supply. This creates a
‘manufactured shortage’. The demand for product ideally
remains same or even grows, and prices go up as a result.
This leads to more profits. Hunger Marketing uses customers
emotions like desire to get something that’s difficult or
impossible to obtain, to drive sales.
4. HOW APPLE USES HUNGER
MARKETING ?
• It is widely agreed that Apple is the company most known for
applying HUNGER MARKETING very well. They start with
exceptionally innovative products (iPad, iphone, Airpods, Apple watch
etc.) they create a lot of buzz around those products, and at times a
bit controversy. This gets the people excited to see their offerings
come to market.
• The company then deploys two techniques. They make their
audience wait for the release of this latest product, and they limit
availability. Result is that owning the product becomes a social, status
symbol.
5. Apple Skimming Price Strategy
• Price can be narrowly defined as the amount of money charged for product or
service. Moreover, It is the sum of all the values that customers give up in order
to gain benefits of having or using a product or service.
• Apple follows a Skimming price strategy by which the firm changes the highest
initial price that customers will pay and then it lowers it over time. As demand of
first customers is satisfied, competition enters the market, the firm lowers the
price to attract the other price-sensitive segment of the population.
• Main goal of this strategy is to gain maximum profit in the short run rather than
to get maximum sales.
6. Apple Skimming Price Strategy
• Advantages
• High Price = High profit
• High Price based on product positioning
• Suppress Competitors at each stage
• To meet psychological needs of the customers
7. Apple Social Media Presence
• Twitter – 5.1 million followers
• Facebook – 13 million followers
• Instagram – 24 million followers
Apple has over 35 million followers across social media platforms but they do not
have any product related posts to market their new products or services at all.
Here’s WHY !
• Apple doesn’t need the extra exposure :- Everyone knows who Apple
is. They create so much buzz with their launch vents each year that
people will literally form a line outside their store, stand day and night
just to grab the new tech released by the company.
8. The biggest advantage to Apple not
using Facebook or Twitter is lack of
negative comments from users clogging
their feeds. Users are still able to tweet
to Apple but nobody other than the
user’s followers are going to see it.
WHAT ABOUT INSTAGRAM ?
Unlike Facebook and Twitter, Apple is
active on Instagram. However, they
have a very strategic approach to that
platform as well. Apple indirectly sells
their product. They do not come out
and say “Buy the new iPhone” but they
post the pictures that directly come
from an iPhone. Realizing and
understanding that Instagram is a very
visual platform, they positioned their
strategy to a spot where all their
content is user generated & shot from
an iPhone itself.
9. Why people keep buying Apple products?
• Apple’s ecosystem is the key to its success
• iTunes, iOS, Apple TV, Apple watch, siri, Home all tie up together
• Once a consumer invests in the ecosystem, it’s hard to get out of it
• Competitors aren’t that good at ecosystem