Essay about Apple Iphone - How It Gained Popularity in the Mass Market.

5272 Words Sep 4th, 2012 22 Pages
Apple iPhone: How it has gained popularity in the mass market.

INTRODUCTION
This case study examines Apple Inc and aims to deconstruct how Apple has employed a variety of marketing techniques to understand its customers and deliver the iPhone to the global mass market. The iPhone has revolutionised the smartphone market through savvy customer driven product design and effective marketing. Bajarin (2011, p.1) suggests that with the global smartphone category projected to grow at 49.2% over the next five years, Apple faces the challenge of mitigating market share loss in an environment where competitors are now able to offer a comparable operating system in Android. Moreover with Android’s open system which allows it to partner with
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Additionally Apple’s vertically integrated structure will allow it to capitalise on owning and controlling intellectual property and deliver a unified customer experience with its various products across the mass market, potentially harnessing the power of the brand to influence buyers across the entire suite of Apple products (Stadie & Kutcher 2011, p.1).
A possible disadvantage of iPhone’s expanded segmentation strategy is the threat that this could present to the coolness of the brand and the subsequent ability to charge a premium price level for the product. As Hartley-Brewer (2000, p.1) explains, there is an evolving perception that mobile phones are a necessity to society. With this Stadie & Kutcher (2011, p.1) believe competition and innovation amongst players is rapidly expanding which will lead to a long term position where the mainstream public won’t be prepared to pay a considerable premium for stand out design and ease of use. Bearing this in mind, Apple may be forced to revaluate its pricing and product strategy or else face the impact this may have on its share price and brand equity. This opportunity may evoke consideration around an extension of the iPhone brand or development of a flanker strategy to allow it to provide alternate SKU’s or brands to target different markets.
As Stadie & Kucher

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