Marketing analysis of Apple

Northumbria University

MK0389

Global Marketing and Communication: Apple

Total Word Count: 2919

GANDON Louis

W15043743

Table of content

Introduction        4

1.        Global, local and glocal strategies for Apple        5

1.1.        Distribution:        5

1.1.1.        Apple distribution structure        5

1.1.2.        In store distribution        5

1.1.3.        Online distribution        6

1.1.4.        Other distribution channels        6

1.1.5.        Conclusion        7

This allows to realize that Apple performs a global distribution and is located in the utility place by offering its products in most countries.        7

1.2.        Product        7

1.2.1.        Tangible products        7

1.2.2.        Intangible products        8

1.2.3.        Life cycle        8

1.2.4.        Innovation strategy        8

1.2.5.        Conclusion        8

2.        Apple target market        9

2.1.        Apple general target        9

2.1.1.        Geographical approach        9

2.2.        Personal computer target        9

2.3.        Conclusion        10

Conclusion        11

Appendix A        12

Appendix B        13

Appendix C        14

Appendix D        15

Bibliography        16

Introduction

Apple Inc. was founded in 1976 by Steve Jobs and Steve Wozniac in California as Apple Computer Company (AFP, 2011). Apple will experience significant growth by selling only computers until the 2000s. It will then diversify to become today a famous multinational electronics company capitalized at more than 750 billion dollars in 2014 (Fechner, 2015).

The interest of this study will be to encourage local companies to export by studying the strategy of Apple in terms of globalization, localization and glocalisation and the strategies that the company has chosen to target its consumers. For this purpose, it will be composed of two parts, including for the first the study of Apple’s marketing mix of, and in particular the range of products that it presents as well as its distribution circuit. Finally, the target market of the company will be studied on a worldwide scale.

1. Global, local and glocal strategies for Apple

This part will analyze the development of Apple’s strategy for the distribution side as well as for the product side.

1. Distribution:

According to Keegan and Green (2017), distribution channels for a company allow it to create added value for the end consumer. They define three types of distribution utilities which are the place utility, time utility, form utility and information utility. They also allow the company to have a competitive advantage and better position itself in its sectoral market.

The distribution of Apple will be analyzed in order to define in which utility apple is situated.

1. Apple distribution structure

The company selling its products all over the world several chains of distribution were chosen according to the needs. Indeed, it is possible to buy Apple products directly in stores of the brand, at authorized dealers, partners, or even online.

For purchases in the store or on its site, the distribution goes through a direct circuit from Apple to the end customer.

For purchases through apple official resellers, the distribution goes through a short circuit by adding the distributor.

Finally, the purchase in specialized stores goes through a wholesaler, then a distributor to finally reach the customer (Richaud, 2016).

1. In store distribution

The first biggest distribution point of Apple is to be its own stores: The Apple Store. The idea of creating these points of sale came from his former CEO Steve Jobs in 1999 (Smith, 2017).

Today, Apple has more than 500 Apple stores (including 272 in the United States) in 23 countries. These stores are regularly built in iconic places like on the famous 5th Avenue in New York, or soon on the Champs-Elysees in Paris. However, a large part of these stores has been built directly in supermarkets especially for United-States (Apple, 2018).

When we look at aesthetics, all the Apple stores are internally designed by Eight Inc., a San Francisco-based company. The exterior design is done by renowned architects from the country concerned (Smith, 2017).

From an internal point of view, all the Apple store are arranged in the same way, there is always luxurious materials (wood, aluminum, or glass) and big stairs. The space is also very important, when you enter an apple store, you can feel appeasement and well-being.

This sensation is also influenced by relaxing ambient music played loop by apple.

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