Marketing Strategies For Introducing A New Product In The Market: A Case Study Of Apple's DSLR Essay.

This topic is the first of the four marketing mix strategies. We’ll introduce concepts, tools and techniques that will help you make decisions for all aspects of delivering our offering to the marketplace. We’ll utilise the traditional 4Ps but hopefully cover all other elements that may contribute to an extended marketing mix.In this topic we’ll look at the Product ‘P’, where ‘product’ is to be considered in its broadest sense as our ‘offering’ to the market. It thus includes physical goods and all types of service deliveries. First, we’ll look at a technique for analysing our product from the customer’s viewpoint, offering satisfaction in a series of levels. We’ll go on and consider the distinct characteristics of services and how these may pose specific challenges for marketing. Then we’ll address some specific product
decisions: differentiation, packaging and the product mix.

In the competitive market, advancement of technology in the electronic devices plays a vital role in the business world. Companies need to use strategy tools in the activities of marketing (Baker, 2014). The big brand Apple has carried different strategies on innovation, being among the market leader in the competitive industry. The Apple has gained the brand value in the market with the advantage of its strong financial position and excellent data access manager (McLaughlin and Bridgman, 2018).

The company also has faced some disadvantages such as changing management and ineffective use of the cloud. In the external environment, Apple is famous for their smartphones while it needs to be beware of the competitive rivalry arising out of technological advancement (Nagle and Muller, 2017). The uncertain economic condition and pressure from regulatory bodies has created a great impact on the company (Baltes, 2015).

The company is continuously trying to stand in the fluctuating market; various strategies have been adopted by the company and continuously focusing on innovation (Khan, Alam, and Alam, 2015). The company has a planning to launch a new product in the market. It is in the pipeline and about to come within next one year. The company is working on launching Digital Single-lens reflex camera which has a probability to be launch in December of next year.

In the following context, there will be a detailed discussion on the way product will be introduced in the market, in which there will be a detailed analysis of market which covers situational analysis, the targeting market, segmentation and the promotional activities that has a planning for the new product. There will be an overview of various marketing strategies that will be used to launch the product and the process of implementing the plan in the market for the final product to be launch or introduce.

Background of Company

Steve Wozniak and Steve Jobs introduced Apple on April 1, 1976. It has been represented as a multinational technology-based company. Headquarter of the company is in California. Apple has over 240 stores which cover all over the world (Fang, Zhang, and Li, 2014). Apple is known for consumer goods and evaluating its value requires understanding its products and consumers. It has established a unique reputation in the electronic industry of consumer with a strong consumer base. The company began to transform itself into a mobile device company, integrating its products into every days life (Nicolas Marin Ximenez and  Sanz, 2014).

Mission and Objective of Apple

The company has introduced and designed various electronic devices which include a personal computer, mobile phones, watches, portables digital music, and other media devices. The Apple is dealing with the products of iPhone, Ipad, Macbook, Apple Tv, Airports, iPod, I watch, Ios App Store (Piao and Kleiner, 2015). It covers various ranges in the same products. Apple developed, design and sold computer software, computer electronic and also deliver online services.

Company Mission

The main mission of the Apple is to provide innovative hardware, software as well as internet offerings to the customers around the world. Apple designs Mac that which will be considered as the best personal computer in the world along with professional software, OS X, iLife and iWork. The iPods and iTunes online store leading in the digital music revolution. The company has focused on reinventing the mobile phones with its revolutionary features and App Sores. It defines the future of mobile media and computing devices with iPad of Apple (Pace, 2017).

The company has a mission to ensure to meet the standard of social responsibility at a great level by providing safe working condition, treat employees fairly and adopt environmentally responsible manufacturing process wherever products of Apple are made (Clarke and Boersma, 2017).

Objective

• The main objective of Apple is to introduce products which are a free-from hassle that provides service and employment for the customer.
• The company focus to create ground-breaking products with an objective to deliver something new and exciting to the world.
• The next strategic objective is to manage stable competitive advantage and must provide world-class innovation and integration through deliver quality goods and services and empowering themselves to defeat their competitors in the market condition.
• Enhancing and expanding investment of the company in research and development (Guler, Gannon and Sicchio 2016).
• Marketing Objectives

Apple has a target to expand or wider their sale to those customers, who have not used any product of Apple yet. Therefore, the main objective of marketing a new product is to be (Ocasio and Joseph, 2017):

• To lead as a supplier of DSLR in all market in which the company operate
• To increase the sale of the product by twenty-five percent
• Increase the revenue of the company by twenty percent
• To uplift the market share of the company by at least ten percent
• Encourage the existing customers to increase the use of the product
• Expand the existing market by twenty-five percent till the next year
• Innovate and dictate the movement for future technology
• Expand nationwide chain of Apple store globally

Marketing Strategy

In the SWOT analysis, if Apple represents the achievement of the company used its competitive advantage to become the dominant player in the technology industry. It identifies all the key strength, weakness, opportunity and threat that may affect the company most. The analysis is explained in below points (Coorevits, Schuurman and Logghe, 2016).

Strengths

• Core competencies

The company is expertise in technologies which is the biggest strength lies in the focus they have on their core competency. The company develops and design its own hardware, software, application and services that allow the company to introduce DSLR which represent a unique, innovative and easy to approach the customers.

• Brand image

The company Apple is the most recognizable and valuable brands in global. The company has an image in the market of developing highly innovative, well functioned and well-designed products as well as great customer experience and sound financial performance. Thus, the DSLR can easily take a step in the market because of the brand image of the company.

• Premium products

Marketing Strategy

The products of the company are of premium quality therefore only premium class customers are the target of the company. DSLR also include in the premium product thus, it would be easy for the company to target the customer because the premium customer is the existing user of the company.

• Strong advertisement and Marketing Capabilities

Apple is a well-known brand in the world. The company has a strong advertisement and the marketing strategies of the company are at a string level, therefore, the company can launch their new product which is DSLR in the market through advertisement and marketing capabilities.

Weakness

• Complex device

The company may face the issue of a complex device. As the product is not easy to understand by the new people which may create lag in purchasing DSLR by the customers

• Expensive product

The product of the company is always quite high. The company faces the issue of targeting the customers as they can target only premium customers for the product which limit the market segmentation of the customer. The company may lag in the pricing of the product because the price is quite high for the DSLR which may stop the customers to buy the product.

• Inability to satisfy the mass market

Apple caters more to the specialist group than the mass market and thus they have been more successful with mobiles that customers want primarily because of their attention to details. The company unable to safety market which may give them volume but instead need to focus on value.

Opportunity

• New Market

The technology of optical has expected to grow in near future; therefore it is the opportunity for the company to enter in the optical market with a strong research team working in this domain.

• New technology

The company is known for the innovative product in the market therefore, Apple can maintain their image by introducing new technology in the market. It is the opportunity for the company to introduce a new product which is DSLR in the market.

• Expansion of brand

It is the opportunity for Apple to expand their brand in the competitive market by introducing DSLR or entering in the market of optical technologies.

• New Segment market

The company target the new segment market for DSLR such as young people, professional photographers which help the company to cover the huge market in the competitive world.

Threat

• Competition

Apple as a company does not have any threat but as a product, each of the products is I facing a strong threat from the competition. The company is launching a new product which is going to face competition especially from other brands such as Nikon, Canon, Casio, Kodak, Panasonic and Olympus.

• Changing trend in the technology

SWOT Analysis

The changing trend in the technology creating a huge threat to the business engaged in this sector primarily because of the cost to be invested in research. Therefore, the company may face such issues while introducing the DSLR.

Segmentation Targeting and Positioning

 Apple utilizes the market segmentation to subdivide the target into various categories which are based on their demands, interest, and needs. It helps the company to recognize the aspects of their target market. The segment of market is based on behavioral, psychographic, demographic and geographic which are explained in below points (Al-Refaie and Bata, 2016):

• Demographic - The main target for the company is customers consist of individuals with the age group between 18 to 42 years old, professionals who are associated with technology and corporate customers with the range of income between medium to high.
• Geographic- the company has a target to launch the DSLR all over the world and deliver the product in every store of the company to cover maximum customers for the product.
• Psychographic – The Company has decided to put efforts on those customers who mainly use the camera for entertainment purpose and for amateur photographing and the gentry of high class in the market.
• Behavioural- the benefits cover good price-quality proportion with the potential user. The uses of the product can be low, medium or high it depends on the work of the individual. It can be used for any occasion to capture the memories.

While marketing the product, Apple requires designing a marketing mix which is effective and includes price, product place and promotion to achieve the desired goal (Londhe, 2014). The marketing mixes are explained in below points:

Product

The DSLR of Apple is the new product in the market. The company high spot its unique features to attract the customers. The features cover:

• High resolution
• USB 4.0 interface
• 35 MP APS-H crops
• 1090/31p video and 58 megapixel sensor of CMOS
• The more features of the product covers 6fps continuous shooting
• It allows users to capture extra resolution.
• Apart from this company ensure the audience that the product is durable with high quality by using superior quality of the material.

Place

Apple has a strong supply chain which will be used to introduce DSLR in the market. It will be distributed in its own retail outlets and online stores along with dealership with others other stores. The company will adopt a hybrid distribution strategy and place the product in the warehouse thus; products will be easily accessible by the customers. Apple will also use the source of retailers which handles e-commerce such as Amazon, Snape deal and eBay to cover more customers with its new product.

Price

The success of any product greatly depends on the price of the product. To attract potential and loyal customer, the company balance the equilibrium between cost of production and selling cost. The company will adopt the model of competitive pricing for the reason that the aggressive competition forms such as Nikon, Sony, Canon, and Olympus.

Promotion

In the promotion marketing mix, the approach is categorized by trade shows, advertisement, and public relation because the DSLR of Apple is new in the market. The important tool in the market for promotion is an advertisement. Through the advertisement, the audience will get know about the new product launch by the company. The information in the advertisement about the DSLR is accessible to prospective customer through radio, newspaper, social media (such as Facebook, YouTube, Websites), magazines, television, mobile application and so on. This is the best way to introduce a DSLR of Apple in the market.

PESTLE Analysis

Conclusion

The PESTLE analyses of the company are explained in below points (Lake and Drake, 2014):

Political Factors- the Apple majorly earn the sale contribution for the outside U.S which is amounting to more than $113.8 billion, therefore any political insurgency in these countries can greatly affect the company negatively. The DSLR of the company will be launch after analysing the political factor.

Economic factor- The high rate of U.S dollar has a possibility to increase the exchange rate which makes it more expensive for the company to introduce a new product which is DSLR in the market of Europe and China.

Social Factor- it has been analyzed that the world such as Africa will have biggest growth in consumer spending in upcoming decades. It will be spread in the areas of where people are not familiar with the products of Apple. Therefore, the Apple can expand their new market and can launch DSLR in such countries.

Technological Factors- The increasing demand for smartphones and tablet may lower the demand for DLSR or a company.

Legal Factor- The new product launch by the Apple could increase litigation, insurance and regulatory cost at company Apple.

Environmental Factor- China is now focusing on gases such as greenhouse and focusing on limit fossil fuel which has a possibility to increase electricity rate and cost of manufacturing for the DSLR of apple in the country.

Market Analysis

The market for the digital camera is highly mature and is highly flooded with slow growth. The market for imaging and the optical product is capital intensive with automated machinery which is resulting in high exodus obstacles while it is overcrowded by other companies at the same time in the Meta market.

Competitive Analysis

With the flourishing DSLR market and the advancement of technology, that can change the competitive scenario for the Apple. The market for digital imaging is not constantly crowded by the peer’s companies such as Kotak, Canon, Nikon but it is also becoming the target sector for the companies such as Panasonic, Samsung and so on. The company needs to enter into a licensing agreement to cope up with the competition such as HP Inc., Ricoh Company Ltd., and other companies for generating competitive product and services and leveraging its technical know-how (Chen and Ann, 2016).

Industry Analysis

The industry analysis cover porter five force framework which is explained in below points (Pisano, 2015):

(Source: Closa, 2018)

Threat of New entrance

Apple is entering a new market with the product of DSLR which carries innovation and different ways of doing things that put more pressure on the company through a strategy of lower pricing, reduction in cost and providing new value propositions to the customers. Apple has to cope up with such challenges and build effective barriers to protect the competitive advantage.

Bargaining Power of Suppliers

The suppliers play a prominent role in the industry of business equipment. The powerful suppliers use their negotiation power to extract higher price which may create a great impact on Apple by lowering the overall profitability of DSLR.

Bargaining Power of Buyer

The customers always demand a quality product at lower or minimum price. This may put a pressure on company profitability in the long run. The customer of Apple has the higher bargaining power and high ability to pursue increasing discounts and offers on DSLR.

Threat of Substitute Products or Services

The company may face the threat of the same product and services in the market. Therefore, it can cope up by offering a unique value proposition of DSLR from the present offering of the industry.

Rivalry among the existing competitors

Apple will introduce the DSLR in a business equipment industry of competitive world. It can take a toll on the overall long-term profitability of the organization.

Marketing Budget for Apple (In million Dollars)

Particulars	1st	2nd	3rd
Traditional advertisement	5000	7000	9000
Direct marketing	22000	19000	18000
Sales	17000	14000	15000
Social Media marketing	5500	6400	7300
Total	49,500	46,400	49,300

Promotional Budget Plan (In million Dollars)

Item	Price(excluding GST)	GST	Price (including GST)	Total Value
Social media	300	70.00	370	250
E-mail marketing	700	50.00	750	500
Website	1500	150.00	1650	750
Retail advertising	450	50.00	500	550
Flyers	300	50.00	350	580
Banners	400	70.00	470	560
Search engine optimization	1000	90.00	1090	1090
TOTAL	$4,650	$530	$5,180	$4,280

Implementation Plan

Activity	Time Period	Authority	Objective of Growth	Concerned Department
Business Plan Initiation	2 month	Marketing Manager	Increase the number of the product of the company	Marketing Department
Analysis of Market	15 days	Research manager	Analyse the demand and compete in the market	Research and Development Department
Hiring of Expert	15 days	Manager of HR	The hiring of an expert for new product	Department of Human Resource
Budget Plan	1 month	Financial Manager	Analysis of financial requirement for the product	Finance Department
Production Process Start	2 month	Head of Production	Provide best quality product	Department of Manufacturing
Development of Software	2 month	Designing Experts	Introduce smart technology for the product produce	Department of Information Technology
Advertisement and Promotion	2 month	Marketing Manager	Aware about the product to the customer at the maximum level	Department of marketing
Distribution	1 month	Supply Chain Manager	Availability of product in every store and outlet of the company	Supply Chain Department
Sales	1 month	Sales Manager	Selling of product online and offline to maximize the sale of the product	Sales Department

Recommendation

Therefore, it is recommended that the company should analyze the market properly before introducing DSLR in the market because the company has huge existing competitors in the market. The price of the DSLR should depend on the competitive price and DSLR should have some unique features that separate their product from other companies. The Apple should review the PESTLE analysis properly which may prevent from the negative impact on the company.

Conclusion 

From the above, it is concluded that marketing strategy plays a prominent role in the competitive world. Every organization need a strong marketing strategy to sustain the market or for entering a new market. Various strategies have been adopted by strong companies to make a brand and exist in the competitive world.

The Apple is one of the biggest brands in the world. The company is planning to launch a new product in the market which is DSLR. It would not be tough for the company to introduce a new product because the company has the strength of a brand name and strong marketing strategy which will apply to launch the product.

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