Future for the Brand.

After many rumours and speculations which started as early as in 2006, the first generation iPhone was launched in the US on June 29, 2007.
The second generation iPhone, the iPhone 3G, has been launched on July 11, 2008.
3rd gen. in march 2010 and 4th gen is yet unreleased in the country.

Apple has been able to develop a revolutionary product, and to change the paradigm in the mobile phone market. Apple did great on the product side, no doubt. However Apple has done some serious mistakes in the marketing of the iPhone.
.A total of 17.4 million iPhones had been sold worldwide until December , 2008. Of these, 11.3 million 3G iPhones have been sold between July 11 and December 27, 2008.
4.4 million 3G iPhones were sold in the quarter ended December, 2008.
Previously a total of 6.1 million first generation iPhones had been sold in US, UK, Germany and France.

From these data it comes that, in spite of the serious marketing mistakes done by Apple, the iPhone has been a huge success globaly. But in India the iphone failed badly and this has shown apple’s lack of understanding of the Indian market


Limitations
• The marketing strategy of a company is confidential, and therefore it is imperitive to use sources other than the company to analyse its marketing strategy.
• There may be a mistake in interpretation , for eg, we may feel that apple has not sold too many iphone in India so it has failed in its marketing strategy but it is possible that apple’s strategy was not to sell to many iphones but to test the Indian market with the help of its partners Vodafone and Airtel before it comes to retailing itself.

Marketing Research

Apple uses a large variety of consumer research in order to further improve the iPhone as the market changes. Staying close to the end user and listening to the customer has been paramount to apple success. Through the use of focus groups, feedback from consumer surveys and brand awareness studies to insure apple know of the iPhone is view by the world. Targeting segments are important in order to extend the iPhone reach to business and a broader professional base. Four age groups are targeted: 15-20 years, 20-25 years, 25-45 years, and 45 years and up. These groups give an expansive view of the study groups to include middle and upper income individuals. High School and College aged people demonstrate social uses. The 25-45 years group is used to determine business application and social/personal use, and finally the 45 years and above give us plan to market to more senior well-refined group. This research is done through surveys (via email campaign through portals such as, iTunes and other on-line application developed for the iPhone) and interviews (in stores) with the same age groups listed above. The surveys target not only to current Apple customers but also consumers not currently using Apple products. It is important to weed out members who have a bias view to insure non-prejudice data. In order to bring the iPhone to the front of the business world it is important to research different ways to grow the 15-25 year old group into business uses of the product. Brand awareness will be an important tool in taking the Apple brand from "social cool" to "business cool".

Apple also ask for feedback on iPhone features, and implement those changes most important to the end user in the next generation iPhone. To ad incentive, and encourage users to participate it offers opportunities to win gift certificates. In addition, apple uses customer satisfaction studies provided by various private third party firms to get a larger non-biased sampling.

Marketing and Communication

Apple integrated its message of revolutionary communications and audio/visual experience together in all of its media advertisements. Prominently featured to differentiate its product against others is the touch screen functionality. Apple also emphasize its brand prominently and associated the iPhone with the iPod's groundbreaking lineage. Apple’s ads are original but tasteful at the same time. Research about media consumption patterns of its targeted audience helped its advertising agency choose appropriate media and timing to reach prospects before and during product introduction. A massive TV campaign was done in the month of August-September where the ads talked about the iphone’s features. Thereafter, advertising will appeared on a regular basis to maintain general public awareness and communicate various differentiation messages to several targeted groups. To attract, retain and motivate channel partners to push the product, apple sent personnel to inform them on how to market the iPhone.

Pricing

Apple set its base model 8gb at a high Rs 31000. Larger 16gb models was priced at Rs36000. Apple provided a color variant in the 16gb version by giving the option to chose a white color iphone. Apple may lower its prices to ensure it establishes market dominance in as short of time as possible.

Distribution

Apple had initial rollout in the US and UK, but with the launch of second generation iphone-the iphone 3g apple had a rollout worldwide at all reputable major retailers online and brick n mortar stores along with cellular phone providers. All Apple Stores the Apple website dedicate themselves to the iPhone and also provider channel partners by providing product demonstrations. Eye catching displays can be found at all physical stores featuring the iPhone to make the product stand out from the pack. Airtel and Vodafone had the iPhone on display a full month before its worldwide release. This was designed to lure consumers into the stores and see the iphone.

• In the US, AT&T and eventually other major cellular providers like Verizon. Goal is availability with all phone providers.
• In India Vodafone and Airtel, the phone is locked to their SIM.
• Purchasable direct from Apple online, and from major third-party online retailers like Amazon.com.
• Apple stores in U.S., Japan, U.K., Canada, and worldwide.
• All major electronics retailers: Wal-Mart, Best Buy, Circuit City, etc.

SWOT Analysis

Strengths

Innovative – The iPhone has an innovative touch screen that is patented and unmatched by any other mobile product today. It also has many functions of other mobile products all in one device.

Compatibility –The phone works with iTunes and with other Mac/Apple products like the new Apple TV, allowing for wireless connectivity to the big screen. The iPhone is also compatible with many Mac OS software tools. Mac OS compatibility means that the iPhone has limitless potential for upgradeability.

Ease-of-Use – The all-new touch screen interface making operations extremely intuitive. It is radically different from those of other phones or PDAs that recognizes multi finger gestures, just as the human hand normally behaves. The Mac OS X application imbedded into the iPhone assures users will easily recognize what they can do.

Brand awareness – Apple is well known for cool essential gadgets like the iPods along great technological innovations like the original Macintosh.

Quality – The iPhone has one of the brightest and most scratch resistant screens in the market. It also has a fine metallic finish that is durable and light. The software suite included is also unsurpassed with their ease of use and resistance to computer viruses.



Weaknesses

Image – The Apple brand is not targeted towards business people, which most smart phones have targeted. Does not have a reputation as being compatible with the corporate world.

Price – Apple does not yet offer lower priced models for more cost conscious consumers.

User Interface – Touch screen interfaces suffer from the problem of “gorilla arm,” in which long-term use of a flat, solid surface for input becomes uncomfortable.

Opportunities

Increasing demand and expansion to a new target segment – Apple will continue to target the business productivity market who wants an all in one computing solution. But as technology advances and smart phones get cheaper companies also have a great opportunity to target people who want entertainment. Apple will attract these consumers and get iPod users to upgrade to iPhones.

Upgradeable – Since software on the iPhone can be updated, it allows new exciting features to be brought in which take advantage of the touch screen ability. Future versions will also be hardware upgradeable. Recently iphone software 2.2 update was released.

Partnerships – Apple can collaborate with many powerful global mobile phone companies to flood the market with iPhones, which reduces costs in marketing and increases revenue through long-term agreement deals. Vodafone and Airtel In India.


Threats

Increased competition – Smart phones are easier to make now more than ever. More companies may enter the market, given that there are few barriers to entry other than patents. Competitors or even Apple contractors can maneuver around patents to create similar devices. Samsung Omnia, Blackberry Storm.

Downward pricing pressure – The iPhone is marketed as a high-end phone, but phone prices are almost certainly going to fall when other companies undercut the price of iPhones. Vodafone is providing Rs 5000 off in the form of monthly bills.

Difficulty expanding into Asian market – There is less hype and interest in Asia since smart phones are better known and already widely used.

Marketing of the iphone

The iPhone targets consumers who need to store information and communicate or people who want entertainment on the go. Apples target segments consist of professionals, students, corporate users, entrepreneurs, and health care workers. Currently, the market for high-end phones like the Apple iPhone is small in India. Few people want Internet, video, and PDA features in one device because of the high price. The smart phone market is still relatively small compared with general phone market. The market will rapidly increase in coming years due to lower prices and greater power.