MARKETING MANAGEMENT

Globalization and marketing strategies of Apple Inc.

Submitted by: -

Shristi Singh: - 23010324084

Symbiosis Law School, Hyderabad, Symbiosis International (Deemed) University,

Hyderabad

16th March, 2024

Under the guidance of

Mr Kishore Kumar
ABSTRACT

Apple Inc. is a multinational technology company that has revolutionized the way we live, work,
and communicate. It is through the identification of Apple’s target market segments, evaluates
market trends impacting marketing strategies, and compares its competitive advantages, and
challenges against key competitors that value is added to the study. Additionally, understanding
Apple’s marketing mix strategies, including product portfolio analysis, its promotional activities
throughout its growth years, pricing strategies, and distribution channels. The significance of
comprehending brand management and innovation in shaping Apple’s marketing and consumer
protection as well.

KEYWORDS: Apple Inc., strategic marketing, brand management, innovation, consumer

behavior

INTRODUCTION

One of the most influential and innovative multinational technology is Apple Inc. understanding
its strategic marketing management in this research paper as it stands high like a beacon of
innovation and excellence in the business world. It seeks to analyze various facets of Apple’s
promotional strategies, including product development, brand management, innovation, and
consumer behavior. By examining these aspects comprehensively, the research aims to uncover
the extensive principles and practices that Apple adopted at its corporation to ensure success in
the world of competitive technology.
Comprehending its management is not only crucial not only for academic purposes but also for
practitioners in the field of marketing management. By dissecting Apple’s strategies this research
offers valuable data and information that can be applied to other aspiring companies to enhance
their marketing position and achieve sustainable growth.

NEED FOR STUDY

Understanding that the existing literature is not as extensive as covering marketing strategy,
brand management, and innovation altogether, the need for this study arises as it
comprehensively analyzes every aspect of Apple’s strategic market management and its
globalization throughout the world.
This study aims to address this gap by conducting a thorough analysis of Apple Inc.'s strategic
marketing management.
This research not only contributes to academic knowledge but is involved practically as well.
Industry practitioners and policymakers can stay aware of emerging trends in strategic marketing
management and adapt their strategies accordingly to remain competitive in the rapidly evolving
marketplace. By analyzing Apple's successful marketing strategies, other companies can gain
valuable insights. Learning the nuances of Apple's strategic marketing approach can offer
businesses in various industries practical guidance and valuable lessons. By analyzing Apple's
successful marketing strategies, other companies can gain valuable insights.

SCOPE AND LIMITATIONS OF THE STUDY

The boundaries of this research will primarily focus on specific aspects of Apple Inc.’s
marketing strategies within the context of strategic marketing management. The following
aspects are analyzed:

1. Product Development at Apple is one of the key components of its success throughout
these years, its focus on its elegant build and premium pricing strategy.
2. Apple establishes its brand identity through its certain market positioning and its
communication to the masses through relatable ads addressing its setbacks, and
introducing customer engagement as well.
3. Constant innovation of products at Apple keeps the customers engaged and up-to-date in
terms of understanding the updates that come with each product.
4. Consumer Behavior: Analysis of factors influencing consumer preferences, purchasing
decisions, and brand loyalty about Apple’s products.

These aspects are key elements of this research paper and provide a scope of enrichment and
knowledge to budding entrepreneurs.
The limitations that may affect the validity include:
1. There is a limit to reliable and comprehensive data in regards to Apple Inc. as it is a tech giant
the limitations include internal decision-making processes and proprietary information.
2. A thorough analysis of Apple’s marketing strategies may be time-consuming, and the study
needs to be adjusted accordingly.
3. There might be certain changes in external conditions such as the marketing environment,
competitive dynamics of different tech companies, or monotonous markets which may affect the
validity of the data found.
4. Apple Inc.’s marketing conditions may differ from several companies and may not be
generalizable due to indifferences in the industry, market context, and organizational culture.

Acknowledging these limitations may help us understand the study’s rigor and ensure that the
data found is applied appropriately.

LITERATURE REVIEW
 1) A Critical Analysis of Internal and External Environment: Case Study of Apple Inc:
Choo Eern Yie Choo Eern Zhi Nicole Tham Seow Ping
This literature provides insights into the business models that Apple follows and the evaluation
of the strategic capabilities of the tech giant. It focuses on Apple’s business model, key
partnerships, resources, value propositions, revenue streams, customer segments, distribution
channels, cost structure, and strategic positioning. The frameworks and tools included in the
review were as follows:
a) It talks about Osterwalder’s Business Model Canvas that Apple follows, Apple's success
lies in a comprehensive approach that combines product advancements and meticulous
business strategy. By recognizing the significance of both innovation and strategic
planning, Apple ensures its competitiveness and sustained profitability.
b) It also mentions key partnerships which consist of app store developers, manufacturers,
and players in the entertainment industry such as music and movies. These partnerships
contribute significantly to Apple's ecosystem and market dominance, particularly evident
in the success of the App Store and iTunes.
c) Acknowledging Apple’s engagement in various key activities ranging from design to
quality control to manufacturing and software development. The company's marketing
campaigns, research initiatives, product design, and development efforts are crucial in
providing customers with compelling offerings that meet their needs and expectations.
d) Analyzing the resources that Apple utilizes which include human capital, physical assets
like retail stores, etc, and intellectual properties like trademarks. These resources are
carefully and effectively employed to support the needs of numerous customers around
the world, thereby ensuring the business remains competitive in the market.
e) Value propositions observed revolve around performance, brand/status,
convenience/usability, and design. Understanding that the company prioritizes creating
products that are easy to use, feature cutting-edge technology, and boast superior design
and performance. Offering warranties and guarantees to minimize any concerns
customers may have, to make sure they provide satisfaction with the highest quality of
their products.

Strategic Analysis and Recommendations:

i) Talking about Apple’s Internal Factor Evaluation Matrix it mentions its excellence in
its brand authority, innovative products, loyal customer base, and marketing skills.
However, to maintain its growth, it must tackle challenges like high prices and labor
concerns in its production line.
ii) It mentions the opportunities through the External factor evaluation matrix like
expanding product lines, enhancing online presence, and targeting international markets.
Threats such as competition from Spotify and intense industry rivalry necessitate
strategic responses to maintain market leadership.
 2) A Critical Analysis of the Internal and External Environment of Apple Inc.,
authored by Usman Ali Khan, Mohammed Noor Alam, and Shabbir Alam.
Environment Analysis:
Apple's strengths and weaknesses were analyzed within the industry it operates in.
External influences beyond Apple's control were also considered. SWOT and PEST
analyzing techniques were used to analyze Apple's strengths and weaknesses, as well as
potential threats and opportunities in the competitive industry. These analyses took into
account political, economic, social, and technological factors as well in order to
determine a comprehensive background check on the marketing strategies introduced in
the company.

SWOT analysis assists businesses evaluate factors within their control (internal
environment) and influences from outside their control (external environment) to conduct
strategic planning. Internal strengths and weaknesses include aspects like resources,
potentials, and culture, while external opportunities and threats come from market trends,
competition, and other factors beyond the company's direct influence.
STRENGTHS:
Apple has seen impressive sales increases and efficiently handled its finances. It
boasts a highly recognizable brand thanks to its relentless pursuit of innovation
and R&D investment. Apple possesses a vast and dedicated customer base,
cutting-edge products, and a solid distribution network.
WEAKNESSES:
Apple relies heavily on iPhone and iPod sales for revenue. The company has a
limited number of physical retail stores worldwide. Apple's high prices may make its
products inaccessible to some consumers. Sales of certain product lines are slowing
down.

PESTEL Analysis:
● Political: Apple faces political risks globally due to its supplier contracts and
international sales.
● Economic: Economic factors like global recession, slow growth, and currency
fluctuations affect Apple's sales and profitability.
● Social: Apple responds to customer expectations through acquisitions, alliances,
and investments in growth markets like India.
● Technological: Apple leads in innovation but faces challenges in R&D investment
and software compatibility.

This literature review thoroughly examines Apple's business capabilities, external influences, and
how they affect the company's goals. It identifies Apple's advantages, disadvantages, potential
benefits, and risks in the global marketplace, along with key strategies and issues involving
corporate governance, ethical practices, and overall business direction.

3) Value Creation and Value Capture: Analysis of Apple Company Thi Ngoc Thuy Doan,
Huu Hao Nguyen
The literature review delves into strategies and mechanisms through which Apple increases its
value and captures the attention of its customer base through emotional connection or through
media that the customer base can relate to. It delves into its business model, innovative products,
customer-focused offerings, revenue sources, competitive strengths, and strategies for
maintaining market dominance.

RESEARCH METHODOLOGY
1. Literature Reviews are a key component of this paper, as it promotes gathering insights
from existing literature, academic papers, articles, and books related to Apple Inc.’s
marketing strategies.
2. The empirical analysis involved in the paper includes a combination of both qualitative
and quantitative data with the inclusion of financial data, market trends, consumer
behavior studies, consumer reports, and graphs.
3. The paper incorporates case studies of Apple Inc., to provide real-world examples and
problems in relation to handling a tech giant and how a company has implemented its
marketing strategies which has led to globalization.
4. It also involves the analysis of strategic marketing strategies of Apple Inc. using research,
data analysis, and real-world examples. It assesses the effectiveness of Apple's marketing
techniques, evaluating how product innovations, pricing choices, promotions, and
distribution channels have contributed to its market leadership. The analysis examines the
impact of Apple's high-end pricing strategy on brand reputation, consumer behavior, and
its ability to stand out in the market.
5. The report ends by offering recommendations and suggestions on how to improve
Apple's global marketing plans based on the data and analysis. Recommendations can
cover a wide range of areas.

OBJECTIVES OF THE STUDY

1) Examining the effectiveness of Apple Inc.'s marketing tactics in the global tech industry.
Analyze how product innovation, pricing decisions, promotional campaigns, and
distribution channels contribute to their continued dominance in the market.
2) Evaluating how Apple’s product development contributes to the global market.
 3) Understanding the effect of Apple’s premium pricing strategy on brand perception,
consumer behavior, and brand differentiation.
4) The role of Apple’s global promotion strategies and how it is impacting the company.
5) Identifying and analyzing the challenges faced by Apple in global marketing, such as
economic trends, and customer preferences.
6) Providing valid recommendations for the enhancement of Apple’s global marketing
strategies, with its focus on product innovation, pricing adjustments, effective promotion
campaigns, etc.

ANALYSIS AND FINDINGS

In the ever-changing times, with the constant ups and downs in the economy, electronic products
have become one of the most important things in society. Without any question, Apple is one of
the leading companies in the technological industry. Apple’s profits sore throughout these recent
years. In this era of competitive brands, analyzing the nature of Apple’s success through its
marketing strategies.

APPLE’S REVENUE

I) SWOT ANALYSIS
STRENGTHS:
In 2021, Apple continued to roll out new and improved products that dominated the market,
boosting revenue. The company's commitment to making top-notch stuff and its reputation for
quality drove consumer demand. To boost its revenue and sales, Apple launched advertising
campaigns featuring famous people, which increased consumer interest and sales. This not only
attracted a large customer base but also encouraged word-of-mouth recommendations which
increased trust, resulting in significant revenue growth for the company.

WEAKNESS:
Understanding Apple’s constant improvement in its efficiency towards manufacturing,
occasional incidents like screen damage and Apple being too weak and other accidents have been
put forward but to fix this Apple has established robust quality customer care and quality control
to address these issues promptly. Furthermore, one of the top priorities is providing product
safety and reliability.

OPPORTUNITY:
Apple continues to release a wide range of products, each with its unique features and
innovations. This strategy helps establish a connection with the old customers as well as bring in
new customers. Apple’s strong brand reputation and loyal customer following contribute to a
steady increase in product adoption. This trend of acceptance by the consumers and growing
market further solidifies Apple’s position in the industry.

THREAT:
Apple faces stiff competition in the tech industry. Despite its strong position, it contends with
Android devices, like Samsung, and other rivals. The constant evolution of technology forces
Apple to innovate constantly in product design, features, and user experience to maintain its
edge.

II) Environmental Analysis:

In recent years, Apple has continued to prioritize research and development as well like it used
to, understanding the need of product innovation and marketing strategies through it. The
demand for Apple products such as Mac and iPad remains significant, with sales of these
continuously holding up the company’s revenue. However, economic fluctuations, including
recessions, can impact customer demand and lead to temporary declines which may prove
dreadful for the company.
Its operations in the United States prove its focus on high-tech industries, with substantial
investments made in these sectors. However, in China, it is observed that Apple faces challenges
related to the political environment and foreign trade policies. Apple needs to be compliant with
China’s local regulations to establish itself in the Chinese tech market.

III) 4 P’s:
Product Design: Apple’s product design is what makes it stand out most distinctively in the tech
market. It is known for its sleek, elegant design which has made the company known for its
classy touch to its products. Apple’s design philosophy includes simplicity, functionality, and
aesthetics, which has enabled the company to differentiate itself from its competitors and it
places a certain appeal to customers who hold high value to high-quality products. Apple’s main
focus on design has been one of the major contributors to the company’s success throughout the
years.

Pricing Strategy: Its cost structure is based on a premium pricing strategy, where Apple charges
its customers more money in comparison to its competitors, it makes sure that the company’s
image is consistent with its prices. Even though this strategy may limit the company’s market
share, it has enabled Apple to maintain its profitability and appeal to consumers who are willing
to pay premium prices for the high-quality products they acquire.

Promotion: Apple's marketing plan revolves around building a powerful brand image and
highlighting the advantages and distinctive qualities of its products. To promote its products and
raise brand recognition, the company employs a variety of advertising and marketing initiatives,
such as product launches, television ads, and social media campaigns. Apple's promotion
approach has succeeded in establishing a strong brand image and positioning the company as a
technological leader. Additionally, Apple's commitment to delivering exceptional customer
experiences, as seen in its well-known product launch events, has contributed to its success.

Place: Apple's sales strategy focuses on providing customers with convenient and satisfying
shopping options. They have a large global network of over 500 physical retail stores,
strategically situated in high-traffic locations and shopping centers. This makes it easy for
customers to find and visit Apple stores. Apple also has an established online store created in
1997, which has become an essential part of its sales strategy. The online store provides
customers with an extensive product selection, customization options, and delivery services,
making it an accessible and efficient way for customers to purchase Apple products.

IV) Challenges
Throughout its establishment, Apple has faced several challenges including global economic
fluctuations, changing customer preferences, and intensified competition. Nonetheless, Apple
has demonstrated an ability to adjust its marketing strategies to overcome these challenges,
enabling it to retain its dominance as a prominent tech enterprise.
Apple has experienced challenges due to global economic fluctuations that have affected its
sales. During the economic downturns, consumers were hesitant to buy high-priced tech
products, which impacted Apple's profits. To address this, Apple introduced more budget-
friendly products like the iPhone SE and iPad Mini to cater to consumers sensitive to price. This
strategy helps Apple sustain its market position and revenue during uncertain economic times.
Apple has encountered evolving customer demands as technology advances. Consumers seeking
products tailored to their needs, easily customizable, and user-friendly. To meet this challenge,
Apple prioritized creating new features and technologies that enhance the user experience. They
implemented innovative features like Face ID and Touch ID, customizable watch faces, and
widgets to cater to customers who value personalization and ease of use.

Technological advancements and increasing consumer demands continuously drive innovation,

leading to the convergence of products and industries. Apple distinguishes itself through its
relentless technological innovation, which allows it to maintain a leading position and gain value
ahead of competitors. By consistently innovating and exploiting a time advantage, Apple can
cultivate its loyal customer base and reinforce its brand. However, if Apple fails to sustain its
technological edge, it risks losing its competitive advantage.

SUGGESTIONS

i) Apple should continue investing in research and development to keep innovating and keep its
loyal customer base engaged with its newly released technologies constantly.
ii) While it should keep maintaining premium pricing for its flagship products, Apple should
consider introducing a range of affordable products as well, so it can attract a more price-
sensitive customer base.
iii) An increase of investment in marketing should be done by Apple and it should promote its
products through advertising campaigns as well.
iv) It should expand its distribution channel in regards to reaching a wider audience as well.
v) Customer engagement should be its top priority, it should introduce loyalty programs for
valuable customers as well.

BIBLIOGRAPHY:
1. Doan, Thi Ngoc Thuy, and Huu Hao Nguyen. "Value Creation and Value Capture:
Analysis of Apple Company."
2. Yie, Choo Eern, Zhi Nicole Tham Seow Ping. "A Critical Analysis of Internal and
External Environment: Case Study of Apple Inc."
3. Khan, Usman Ali, Noor Alam, Mohammed, and Alam, Shabbir. "A Critical Analysis of
the Internal and External Environment of Apple Inc.