UNIVERSITY OF NORTHAMPTON FOREIGN TRADE UNIVERSITY
SCHOOL OF BUSINESS HO CHI MINH CITY CAMPUS
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END-MODULE ASSIGNMENT
Module: Principles of Marketing Management
Code: MKT3017
MARKETING AUDIT REPORT
FOR EXAMINERS ONLY
Student: NGUYỄN HUY PHÚC Grade (in number):
………………..
Student ID: 2105025058
Grade (in words):
Cohort: K60NOB ………………..
Semester: I Examiner 1
Academic year: 2024-2025 (Signature & Fullname)
………………..
Headteacher: Võ Thị Thanh Hằng
Examiner 2
Submission date: 8 December 2024 (Signature & Fullname)
Student’s signature: ………………..
Ho Chi Minh City, December 2024
UNIVERSITY OF NORTHAMPTON FOREIGN TRADE UNIVERSITY
SCHOOL OF BUSINESS HO CHI MINH CITY CAMPUS
----------***---------- ----------***----------
END-MODULE ASSIGNMENT
Module: Principles of Marketing Management
Code: MKT3017
MARKETING AUDIT REPORT
Student’s fullname: NGUYỄN HUY PHÚC
Student ID: 2105025058
Cohort: K60NOB
Semester: I Academic year: 2024-2025
Lecturer: Assoc. [Link] Phạm Hùng Cường
Ho Chi Minh City, December 2024
STATEMENT OF AUTHORSHIP
Except where reference is made in the text of the end-module assignment, this assignment
contains no material published elsewhere or extracted in whole or in part from an assignment which
I have submitted or qualified for or been awarded another degree or diploma.
No other person’s work has been used without due acknowledgements in the end-module
assignment.
This end-module assignment has not been submitted for the eveluation of any other modules
or the award of any degree or diploma in other tertiary institutions.
Ho Chi Minh City, 8 December 2024
Nguyen Huy Phuc
TABLE OF CONTENT
S
EXECUTIVE SUMMARY................................................................................................................1
1. Introduction................................................................................................................................1
2. Background.................................................................................................................................1
3. Macro-environment analysis.......................................................................................................2
3.1 Political and legal factors........................................................................................................2
3.2 Environment factors................................................................................................................2
4. Micro-environment analysis.......................................................................................................3
4.1 Company.................................................................................................................................3
4.2 Customers................................................................................................................................4
4.3 Suppliers..................................................................................................................................4
4.4 Perceptual map........................................................................................................................4
4.5 Competitors.............................................................................................................................5
5. SWOT Analysis..........................................................................................................................6
6. Strategic Priorities......................................................................................................................7
7. Conclusion..................................................................................................................................8
REFERENCES...................................................................................................................................9
EXECUTIVE SUMMARY
This marketing audit examines Apple's performance regarding the iPhone in China which is
the biggest market for smartphones with strong local brands like Huawei and Xiaomi. The PESTLE
framework, competition analysis and SWOT analysis are used in the report to investigate Apple’s
external and internal environments. The firm’s large market share has been attributed to its creative
products, premium brand identity, and the fondness of the client. However, there are problems like
the high cost of their products, growing local competitors, and shifts in the consumers’ needs
toward cheap and inventive offerings. Still, there are opportunities such as economic advancement
in the world’s second largest economy, a rising middle class, and e-commerce. Last section is about
strategic priortities of Apple in the upcoming year.
1. Introduction
This following marketing audit report will focus on Apple iPhone's performance in the Chinese
market, the world's largest cellphone market, where Apple confronts strong rivalry from indigenous
brands like Huawei and Xiaomi. Besides it includes a contextual examination of the external and
internal environments, competition analysis, and customer analysis. It also evaluates the company’s
present framework and SWOT model and makes recommendations for improving marketing
performance.
2. Background
Apple Computer, Inc. was established on April 1, 1976, by college graduates Steve Jobs and
Steve Wozniak, who envisioned transforming public perceptions of computers [Macworld, 2006].
Apple Inc. CEO Steve Jobs debuted the iPhone to the public on January 9, 2007, during a keynote
event. Apple is an international leader in cell phone technology and the driving force behind the
mobile phone industry's sustainable growth (Zhaoxiang Li, 2023, p19). Apple considers innovation
to be their core value, arguing that "technology is most powerful when it empowers everyone"
(Zhaoxiang Li, 2023, p19). The first generation iPhone model, dubbed iPhone 2G due to its lack of
3G connectivity, was introduced in the UK, France, Germany, Ireland, and Austria. Initially, the
first-generation iPhone had few functions beyond phone calls and text messages. The iPhone's
popularity can be attributed to its innovative features, including the first finger-sensitive
touchscreen and apps not found in other phones at the time. They focuses on those with incomes,
including learners, working managers, and administrators (Johnson et al, 2012).
During three years of the iPhone's launch, Apple were selling more than 50 million
smartphones. In 2018, Apple became the first corporation to be evaluated at one trillion dollars due
to the popularity of iPhones, and two years later it doubled that amount. These sales figures are
steadily increasing. The iPhone which is its primary products of company, holds a significant
market share in the China, accounting for nearly a half of smartphone sales in late 2024 (Ahmed
Sherif, 2024). In 2023, Apple reported $73 billion in revenues from the bigger China region,
accounting for 19% of its total sales (Reuters, 2025).
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3. Macro-environment analysis
3.1 Political and legal factors
The ways in which Apple sells its goods and services to the Chinese market can be evaluated
with a larger context faced by the company in the Chinese market competition, for instance, through
the macro environment by applying PEST (Payne 2017, p.51). Firstly, it appears that the company
faces, in relation to Apple itself, a political stability environment in China, that notwithstanding
some potential constraints and corruption within the Chinese government, the company is able to
sell and promote its products in the Chinese market. Secondly, there is an income differentials in the
marketing strategies, Apple can exploit the fast growing economic amplitude of the Chinese market
aided with the cheap labour and the increasing spending of Chinese customers. Finally, as
technologies remains one of the key and distinct advantage that Apple is using to penetrate Chinese
market wherein the company intends to convince the Chinese buyers that it is better than many
other companies. (Khan et al, 2015, p. 955). In reality, the newest technology employed in Apple
products attract to numerous Chinese buyers, converting them into committed users of Apple.
3.2 Environment factors
During 2012-13, the rate of joblessness in the US was 7.9, while in China and Japan it was 4.1
and 4.6, respectively (Apple 10-K). These factors contributed to a decline in sales growth. China is
an important market for Apple because of its status as an international economic. The economic
expansion of China has resulted in a large middle-class population with rising financial resources,
driving up demand for premium cellphones such as the iPhone (Keith, 2024). However, changeable
economic conditions, such as reduced GDP growth in the past few years, can have an impact on
customer spending, particularly on luxury products. The macroeconomic climate provides
opportunity for business growth. This part of the PESTLE/PESTEL analytical methodology
emphasizes environmental developments and their implications for business (Jahan, S. A. & Sazu,
M. H. , 2023).
Figure 1 : The figure is showing PESTLE Analysis in China, 2024
Cited from : Jim Makos (2024). PESTLE Analysis of China: How the Sleeping Giant Woke Up and
Got to Work [online] Available at: [Link]
The Currency swings among the Chinese Yuan and the US currency also impact Apple's
pricing tactics. A lower Yuan could render the iPhone more costly for Chinese buyers, thus
reducing sales. Furthermore, economic regulations, such as import taxes, can test Apple's
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competitiveness versus local companies like Huawei and Xiaomi (Jessica Lombardo, 2024). The
rapid rise of Chinese e-commerce sites, such as Alibaba and [Link], provides Apple with further
market penetration prospects. These platforms correspond with increasing customer expectations
for online buying, promoting larger accessibility (Contributor, P., 2021).
4. Micro-environment analysis
4.1 Company
Apple company is a prominent enterprise in the creation and production of electric gadgets,
has a diverse product line, a strong reputation, and the ability to innovate, allowing it to lead the
industry in the worldwide market (Sangari et al. 2015, p. 209). Initially, the company Apple has a
high recognition among its numerous enterprises in the Chinese marketplace. Some buyers perceive
Apple devices as representing cutting-edge and excellent user experiences. Others value the peer
impact and use Apple items to demonstrate their higher social position amongst their peers (Cantrell
et al., 2017, p.2). Apple's high reputation stems from many years of efforts to provide creative and
consumer-friendly devices and services. In addition, Apple Inc. produces only between two and
three iPhone models per year, permitting the research and development group to concentrate on the
unique style in order to maintain outstanding products (Katsikeas et al., 2016, p. 6). This is one
benefit over plenty of rivals, such as Huawei, who offer multiple quality product designs and must
split the resources they have to build numerous variations in operations (Katsikeas et al., 2016, p.
6). On the other hand, certain consumers are criticizing the price tag of products from Apple since
they did not have choices of low-cost things. Thirdly, Apple is forming a community of committed
consumers in order to establish and sustain brand loyalty, as well as generate profits and
competitive benefits from connecting with them (Chen et al., 2015, p. 479).
Figure 2 : The picture is showing that Which is the Most Popular Phone Brand In China?
Cited from Nana Appiah (2024)What Phone Brand is the Most Popular Internationally? [online]
Available at: [Link]
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4.2 Customers
The majority of Iphone's users in the Chinese market are affluent and youthful, with a strong
preference for Apple products and services. There are two important segments on which Apple
focuses on its marketing efforts. The first major component is young and vibrant workers with high
salary levels. They are able to spend on Apple's products. A great deal of the company's loyal
consumers have been updating their Apple goods with new models for years (Kashmiri &
Mahajan2015, p. 288). As a result, these consumers are extremely devoted to Apple's products,
making them valuable customers that Apple Inc. should stress through its different advertising
efforts (Kashmiri & Mahajan 2015, p. 288).
The second crucial sector consists of clients who are particularly sensitive to design and
cutting-edge technology. Instead of remaining devoted to the iPhone's products, those consumers
are sensitive to trends and the latest technology, which may providing fresh experiences for the
target audience in the competitive market (Miles 2017, p. 437). The two-key section mentioned
above will assist Apple understanding the characteristics of its target clients.
4.3 Suppliers
Apple's manufacturing facility is primarily reliant on a large network of suppliers in China,
highlighting the need of an effectively optimized supply chain. China is both a core production
center and a crucial market for Apple as well as large labor. These vendors are critical in delivering
top-notch parts such as electronic components, camera modules, and batteries, which are all
required to maintain Apple's luxury product standards.
Management of supply chains in China exemplifies the imperative of synchronizing
operations with consumer wants and market developments. Supply chain management in China
demonstrates the need of aligning operations with customer wants and market developments
(Johnson, J.E. and Haug, P. 2021, p701). Apple prioritizes vertically integrated operations and
managing relationships with suppliers to sustain its competitive advantage and adjust to market
shifts. For example, fast shifts in customer tastes in China, such as the desire for environmentally
friendly products, have prompted Apple to collaborate with suppliers to implement more
sustainable processes.
4.4 Perceptual map
The market share of Apple is driven by experience, which appeals to buyers' minds and
hearts. Apple's marketing approach focuses on high price and prenium product, with a focus on its
reputation through expensive prices.
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Figure 3: Perceptual mapping of Apple iPhone
Cited from: Geoff Fripp (2024) Perceptual mapping of Apple iPhone [online] Available at:
[Link]
[Link]
4.5 Competitors
Firm positioning within its competitive industry has always played a vital role in marketing
mix elements such as price, place, promotion, and product (Faghih et al. 2018, p. 16). Huawei,
Samsung, and Xiaomi are the strongest competitors of Apple in the Chinese market, each of them
have special features and affordable price ranging from low to high. Competitors assessments could
well-identify and compare Apple's competitors based on two factors: cutting-edge technologies and
affordable costs (Mills 2015, p. 643). The following figure summarizes the positions of Apple and
its competitors years over years.
Figure 4: Year over Year comparison of China's top smartphone manufacturers
Cited from: Team Counters (2024) Apple drops to fourth place in China's smartphone sales
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[online] Available at: [Link]
place-in-chinas-smartphone-sales
From the figure we can see that Huawei expanding by 64% and Apple dropping by a massive
24%. The most popular smartphone maker in China for the beginning 6 weeks of 2024, Vivo had an
18% revenue share, followed by Huawei in second position and Honor in third with 16% . This
highlights the need of Apple having a more targeted marketing plan to better reach this billion-
person market as well as Apple should partner with other brands to produce compatible products
(Khan, et. al,2015). The numbers take Huawei ahead of Apple, but only slightly, and no where near
the margins suggested by the 64% growth as compared to the 24% decline. "Huawei was back
strong at the high end, while OPPO, vivo and Xiaomi squeezed Apple from the middle," noted the
senior analyst Mengmeng Zhang.
5. SWOT Analysis
The SWOT table, which assesses the internal and external environments and challenges of the
Apple in relation to the opportunities and threats presents a working strategy in the chinese market.
Table 1: SWOT analysis
Strengths Weaknesses
The unique value proposed to the target customers The high prices criticized by some
Good reputation as one global famous example of customers
providing high quality services products and services The limited models available for the
The capabilities of organizing a community with loyal customer Limited innovation with new
customers products in recent years
Opportunities Threats
Rapidly economic growth in China, to result of Fierce competitions from the many
increases in demands of the target customers competitors Changing tastes of the
Technological advances, to mean new experiences for customers while they possess several
the target customers Increasing requirements of options and benefit from less changeover
customers to require fashion and innovative products, expenses.
such as provided by Apple. Launching new businesses in China.
Table 2: Internal Environment and External Environment
Opportunity (O): Threat (T):
The customer electronics The economy of the China is
External and Internal
industry is vast, with a deteriorating, and customer trust is
Environment
strong preference for dwindling. Moreover, battling many
premium products. powerful.
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Advantage (S): ST Strategy (Diversification
The SO strategy (the
Excellent awareness of the Strategy):
expansion strategy):
brand image. Using the benefits of modern
Involves capitalizing on
Emphasis on R&D. technology, creativity, branding, and
electronic product sales and
Excellent creativity ability. marketing, as well as the elevated
reducing costs through
Effective implementation of profit margin of premium products to
outsource and rival
new technology and research counteract the financial crisis and
suppliers.
findings rivals' low-cost competition.
Disadvantage (W): Diverse WT Strategy (defensive strategy):
product portfolio, Wo strategy (twist strategy) To boost productivity while lowering
prioritizing technological involves outsourcing and costs, emphasize the need of
innovation over profit support. methodical management in both cost
maximization. and quality management.
6. Strategic Priorities
Based on Apple's current status and SWOT analysis, a several priorities have been determined
for the coming fiscal year.
Expand the price strategy.
The previous iPhone models can be marketed to low-income clients without immediately
ceasing production when the new ones hit the market. This method can significantly boost Apple's
appeal to customers at lower income. Simultaneously, they should adopt a customer-oriented
pricing strategy based on the various needs of customers with varying spending levels. For instance,
they should apply lower model in order to attract more customers with different needs, such as the
elderly who only require basic smartphone feature.
Enhance the product line.
In the era of large-screen supremacy, Apple has marketed small displays as device benefits
such as the 4-inch design, which is easier for people to control with one hand. Therefore, Apple
should bring back the mini-series for those who prefer to use one hand. In addition, Apple should
begin to research widespread foldable display cellphones. Their competitors which is Samsung and
Huawei are already have produced foldable displays that possess distinctive characteristics. This
prevents Apple from competing with their rival companies in the China marketplace.
Enhancing Marketing Strategies.
Apple can no longer depend only on word-of-mouth advertising for their new Iphone in
China. Instead of that, they should try advertising. The advantage of the advertising is that
advertising messages could also emphasize the new innovations that these products possess or the
superiority of these products over their rivals in order to draw more customers. Hence, they should
in the future think about having commercials using pictures taken with the iPhone and advertising
the phone’s feature of taking photographs. This approach has the ability to suprise a client and
makes a client is likely to have a curios for trying a new things.
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7. Conclusion
The Chinese market has an inherent preference for Apple’s iPhone from a variety of diverse
viewpoints, such as the brand’s prestige in terms of creativity and quality as well as its fan base,
however, there are other Chinese companies who are giving tough competition to Apple, such as
Huawei. Apple iPhone’s price strategy is challenging for the wider group of people. These factors
are further worsened by Socioeconomic trends that make the market understand that their offering
needs to be cost-effective and cutting edge. Further for Apple to be able to hold its position in the
market, they has to adopt a more dynamic pricing strategy, develop more advanced technologies
and enhance local advertisement policies targeting Chinese consumers.
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Ahmed Sherif (2024). Apple iOS mobile market share in the UK 2011-2024, by month [online].
Available at: [Link]
kingdom-uk/. (Accessed 7 Dec. 2024)
Jessica Lombardo (2024). Apple PESTLE/PESTEL Analysis [online]. Available at:
[Link] (Accessed 7 Dec.
2024)
Keith (2024). PESTEL Analysis For China [online]. Available at:
[Link] (Accessed 7 Dec. 2024)
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Macworld staff (2006). Apple: the first 30 years [online]. Available at:
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