1. Introduction
1.1 Introduction of Apple Inc.
Apple Inc. is an American technology company which headquartered in Cupertino, California, being founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976 and going public in 1980. And it designs and sells electronics, computer software as well as online services. In 2007, Jobs announced that Apple Computer Inc. was renamed Apple Inc.
Apple is the biggest information technology company by revenue in the world. It maintains 499 retail stores in 22 countries as of 2017. The company has been ranked as the most valuable brand around the world.
1.2 Introduction of iPhone
The first-generation iPhone combined a 2.5G quad band GSM and EDGE cellular phone with features found in handheld devices.
The iPhone 3G has 3G networking and assisted GPS navigation.
The iPhone 4 featured a gyroscope for enhanced gaming, a 5MP camera with LED flash and Face Time video calling.
The iPhone 5 has a 4-inch display, 4G LTE connectivity, and the upgraded Apple A6 chip, among several other improvements.
The iPhone 6 and the iPhone 6 Plus，both have screen sizes over 4-inches. The iPhone 6S, and iPhone 6S Plus introduced a new technology called 3D Touch.
The iPhone 7 and the iPhone 7 Plus feature improved system and graphics performance, add water resistance, a new rear dual-camera system on the 7 Plus model.
The iPhone 8 and the iPhone 8 Plus improved display technology, upgraded camera and wireless charging.
2. Marketing Environment
2.1 Macro-environment
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2.1.1 Political Factors
With the improvement of China's socialist market economy system, market environment of iPhone is improving. The introduction and revision of various laws that have great influence on marketing will provide more guarantees to the buyers and sellers of iPhone. 2.1.2Economic Factors
IPhone has always been a high-end and it has a considerable price. So Apple Inc.’s position in the Chinese market is only on a small proportion of its customers. The high price is a major obstacle to its popularity in China. But with the development of China's economy, individual's income has been improved. Thus, the disadvantage of its high price will not affect competitiveness of iPhone so much.
2.1.3 Sociocultural Factors
IPhone has entered the Chinese market lately, and it is not in the competitive position with some famous brands. But Chinese’s values keep changing. Mobile phone users pay more attention to the entertainment and Internet functions. These are all iPhone's strengths. So it can attract more and more people. 2.1.4 Technological Factors
Globally, iPhone’s technology level is the world's leading level, and China's technology level, far less than Apple Inc. Therefore, this is beneficial to iPhone, which is famous for its high technology and innovation.
2.2 Micro-environment
2.2.1 Strength
1. The reputation of brand is its biggest advantage, which can attract a lot of Apple fans' attention and irrational purchase.
2. IPhone's revolutionary value chain and marketing strategy are unable to imitate and follow up other mobile phone manufacturers in time.
3. The closeness of the hardware and software and the operating system. Software permissions control, prevent cheating software and virus software. 2.2.2 Weakness
1. Its flexibility of market strategies is not so good. Apple Inc.'s market
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strategies and product strategies are lacking in pertinence to the market.
2. Its price of the product is much more expensive than other brands. IPhone targeting customers are middle and high level consumers, whose price determines that they are not the choice of popular products.
3. Its supply chain management is not so perfect. The supply capacity of some key parts is insufficient. 2.2.3 Opportunity
1. The global economic situation is sluggish, the importance of consumers in the Chinese market has increased, the new products offering and exchanging activities have been placed in the first place, which has enhanced consumer confidence.
2. Apple Inc. has reached an agreement with China Union Pay in the field of mobile payment to promote its brand new mobile payment, Apple Pay, to give consumers a new payment experience to stimulate further sales. 2.2.4 Threat
1. Apple's biggest threat comes from the operating system; the Android system has become a powerful competitor, the emerging Windows Phone system, and the market share of apple iOS, especially in the high-end market.
2. Samsung, Lenovo, HUAWEI and other brands will easily impact people's attention on iPhone, especially when Apple has not released new products.
3. STP Strategies 3.1Market Segmentation
1. Business type: mainly used by workplace users from the age of 30 to 45 years old. They have a steady income and the ability to purchase smart phones at all prices. And they have higher requirements for data transmission and continuity and quality of mobile phone.
2. Entertaining: mainly used by students and young office workers. The characteristics of the group are that they are younger than the business type, and the economic ability is weaker.
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3.2Market Targeting
From the existing appearance and functions of iPhone, Apple Inc. has always regarded the fashionable young people as the main target customers. The young have very high demands on the functions and appearance of mobile phones. IPhone is the primary audience for young people who pursue fashion, love music and take pictures.
In addition, iPhone also has very powerful business functions. For example, document processing and mail delivery. IPhone meets the requirements of business men, so iPhone is also a mobile phone for business people. Finally, in US market, one of the most important target groups is video enthusiasts.
3.3Market Positioning
IPhone's market positioning is a creative high-tech fashion intelligent communication product. In the intelligent communication market, it represents the forefront of technology. You have iPhone is to have fashion. IPhone's constant pursuit of innovation is an important reason why it attracts consumers who have brand loyalty.
4. Marketing Mix 4.1Product
China Unicom cooperates with iPhone, it provided a variety of packages and value-added services for iPhone, and iPhone has a first-class after-sales service, through the official website of Apple to seek services, or send mail to customer service to solve the problem. If it is a problem on the fuselage or function, it can be sent to the nearest repair shop for repair.
4.2Price
IPhone uses the skimming price method to make the price as high as possible for the high level of income in the subdivision market, and the high profit of the product in the short term. At the same time, it also embodies the image of high grade and good quality, so as to stimulate the consumer to decide to buy. Its pricing
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requirements are two points: 1) is a new product, compared with the same industry to have a certain difference of 2) the life cycle of the market is shorter, style color technology refurbished faster.
4.3Place
At present, the marketing channels of iPhone can be divided into six types. 1. Distributor: Apple Inc. has two independent distributors in China. They have their own branches in all provinces of the country, and both sides represent Apple Inc.’s different series of mobile phone products.
2. Straight shop: Apple Inc. has opened up outlets around the world, selling iPhone directly to consumers through direct outlets.
3. Unicom custom-made: The Apple Inc. has drawn on its model of selling terminal products by operators in the local market of the United States, and signed exclusive agreement with China Unicom to sell exclusive iPhone bound to China Unicom.
4. Retailers: In China, iPhone has 83 large retailers signed a direct supply agreement with the Apple Inc., which have a greater price advantage and market support than the ordinary retail stores.
5. Retail stores: Retail stores sell products directly to Apple Inc. distributors in China for terminal sales.
6. Online ordering.
4.4Promotion
Apple's unique promotional strategy has made a significant contribution to the success of iPhone’s selling and it includes three stages.
1. In the first stage, the information communication channel is skillfully used. 2. The second stage is a downplaying of product information. 3. Third stage depth analysis of product creativity.
5. Problems and Solutions
Problem1: The price of iPhone is too expensive for normal individuals.
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Solution: At present, buyers can choose payment by instalments. Although iPhone is expensive, by this way, customs can pay for their iPhone in several months. It can reduce the economic pressure of customers. And another way is replace the old one with the new one. When buyer wants to have the latest product, their old iPhone will leave unused. Apple Inc. allows buyers use the old one as a part of money to buy products which they want.
Problem2: Disregard the concept of network marketing. IPhone, though still having a large number of fans to support its products, has led to a lack of the idea of Internet marketing, which has not been reduced until the Apple Inc. has established its own sales website, but the range of consumption has been reduced greatly.
Solution: Widening the channel of marketing network. Mobile phone sales on the Internet, as the network becomes more and more popular, more and more youth choose online shopping. The Apple Inc. can learn a lot of from HUAWEI.
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Appendix
Market research about iPhone
We have designed this questionnaire to find out the future market of iPhone. Here we want to take up two minutes to help fill out the questionnaire. Our investigation is conducted in secret, so please feel free to fill in it. We hope to get your true opinions and valuable opinions, and sincerely thank you for your support and cooperation.
1. What is your gender? [Single Choice] A. Male B. Female
2. What is your age group? [Single Choice] A. Under 18 years old B. 18-25 years old C. 26-35 years old D. 36-45 years old E. Over 45 years old
3. What is your job? [Single Choice] A. Student
B. Liberal professions C. White collar D. Self-employed laborer
4. How much is the price you can accept? [Single Choice] A. Under 1500 Yuan B. 1500-2500 Yuan C. 2500-3500 Yuan D. 3500-4500 Yuan E. Over 4500 Yuan
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5. How often do you change your cell phone? [Single Choice] A. Within six months B. Six months to a year C. One to two years D. Over two years
6. Concerns about buying a mobile phone. [Multiple Choices] A. Price B. Function C. Brand
D. After-sale service E. Appearance
F. Other: 7. What brand of mobile phones do you like? [Multiple Choices] A. Nokia B. Samsung C. iPhone D. HUAWEI E. OPPO F. vivo
G. Other: 8. How much do you know about iPhone? [Single Choice] A. Know very well B. Just know it
C. Once heard of the brand D. Never heard of it
9. How to learn about information of iPhone? [Multiple Choices] A. TV, Internet, magazine advertising B. Outdoor billboard
C. Experience store, Speciality stores D. Recommendation from others
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10. If you have iPhone, what attracts you to choose it? [Multiple Choices] A. Fashionable appearance
B. High content of science and technology and humanization of design C. The influence of the brand D. Vanity
E. To show your taste and prove your economic ability
11. Do you conform to your original purchase desire after purchasing this product? [Single Choice] A. Value for money B. Value of money C. No special feeling D. Feel regret E. Very disappointed
12. Do you think the price of iPhone is reasonable? [Single Choice] A. Too expensive
B. A little more expensive, but value of money C. Be able to accept D. Not bad
13. What do you pay more attention to on the requirements of the mobile phone? [Multiple Choices] A. Brand B. Price C. Quality D. Function E. Configuration F. Thickness G. After-sale service
H. Other:
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14. What do you think is the most attractive part of iPhone? [Multiple Choices] A. Videophone
B. High resolution of Retina display C. The real game experience D. Ultrathin
E. The hardware is equipped with a powerful, multitask processing function F. Other: 15. What do you think the iPhone series need to be improved? [Multiple Choices] A. Price B. Appearance C. After-sale service D. Distribution channel
E. Other: 16. Your advices:
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References
[1] 刘宁. 苹果手机在中国市场的营销策略研究[D].湖南:湘潭大学,2012. [2] 徐帆. 苹果手机在中国的营销策略研究[J].科技资讯,2015,(11). [3] 肖云南.国际市场营销[M]. 北京:清华大学出版社,2016. [4] 郑琦.营销英语[M].天津:南开大学出版社,2016.
[5] 朱一彬.浅析iPhone手机的市场定位及营销策略[D].江苏:江南大学,2016.
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