Executive Summary
Apple Inc. is a successful technology company headquartered in Cupertino, California. The company designs and distributes personal computers, iPhones, iPods, and other digital services like music stores. iPhone is the flagship project of Apple, whose sales have been increasing exponentially. This report audits the company’s marketing strategy as it expands to the United Arab Emirates (UAE).
Although the company has used traditional means of advertisement, it is changing its strategy to meet the dynamic corporate domain. Leveraging technological advancement to reach customers is vital to increase the market size. It is imperative to note that Apple enjoys a huge brand following as it has many loyal customers. It has a robust retailing strategy which helps it penetrate markets worldwide. Since the company has had favorable trends, it can be assumed that it will continue on a positive trajectory, increasing sales.
Apple’s marketing mix is the core of its brand strategy and helps it gain numerous customers. The products are specially designed to meet customer needs and are upgraded every year with relevant software updates. The company has won several awards for product packaging and unique features like internet connectivity. Further, the brand uses a premium pricing strategy by increasing prices. Since there is demand inelasticity, the products are bought regardless of the higher price.
Product distribution determines how well the product enters the market. The company has selected Mindware to be the sole Apple dealer in the UAE, where all the products are imported through the company. Additionally, the iPhones are distributed through retailers stationed in strategic parts to serve the entire market. Apple uses robust promotional strategies to meet both the target audience and prospects to increase its base.
Nature and Characteristic
Apple Inc. is a multinational corporation specializing in technology products. Although it has its headquarters in America, it sells its products globally. Paying a visit to Abu Dhabi shared a glimpse of how Apple leverages a holistic marketing strategy to increase its customer base. Apple has numerous stores in the United Arab Emirates and stocks technology products under one roof. iPhones are the most stocked Apple products in the UAE stores, giving customers various choices. The brand specializes in luxurious goods and offers different options for its vast pool of customers.
Apple’s core desire is to revolutionize the technology market and customize services to meet customers’ needs. The company’s archetype has made it the symbol of originality, self-expression, and creativity (Kotler and Keller, 2016). The presence of interactive websites where one can order phones online increased customer convenience. The brand stocks preselected stores in the UAE to meet unique customer needs. The purpose of the paper is to conduct a critical analysis of Apple’s marketing mix by analyzing the customer base, the 4Ps of marketing, and the possible areas of improvement to attain success.
Apple’s Customer Analysis
Apple’s target market includes the young population and people of middle age. The typical consumer profile for the brand includes middle- to upper-income people (Yamoah and Acquaye, 2019). It is a famous brand in affluent societies in the UAE that appreciates technology and design (Adıgüzel, 2020). More women in the Arab Emirates use the product compared to their male counterparts at a percentage ratio of 66:34 (De Guzman et al., 2022). The age bracket where the most potential customer lies is between eighteen and forty-five (Christensen and Raynor, 2003).
Most of the customers are either single or married with young children. Ranking the UAE market by age showed that millennials and generation X took the first and second positions, respectively (De Guzman et al., 2022). The company can, however, improve its profitability if it focuses on differentiation to meet unique customer needs by age because there is no one-fit-all solution in the technology domain. The behavioral characteristics of the customers are determined by their preference for iPhones, with the first quarter of 2022 selling over 44.6 million iPhones (De Guzman et al., 2022). The exponential increase in iPhone sales has a ripple effect on revenue.
The younger population in the Arab world is more responsive to online advertisements since most spend most of their time surfing the internet. 89% of Apple users are loyal and likely to buy Apple products for digital use (Oyenuga et al., 2021, p.16). 78% of loyal customers will refer the products to friends and relatives (Yamoah and Acquaye, 2019, p. 12).
The satisfaction rate makes navigating the competitive market easier for the brand. The consumer’s decisions are highly affected by promotional programs. Unique smartphone applications increase demand as they solve real-world problems (Emirates News Agency, 2022). The demand is directly proportional to the number of applications developed, as the customers need technologies to solve their daily challenges.
Product Analysis
The iPhone is among the most traded Apple products, courtesy of its popularity in the UAE. As the brand increases its presence in the region, iPhone will likely experience higher sales (Online shopping no date). Apple iPhone releases software updates yearly to stay in touch with existing and prospective customers, increasing loyalty. The iPhone sold in the UAE has special features and applications unique to the customers in the region, such as maps and tourist attraction sites (Christensen and Raynor, 2003). The iPhone has a higher brand recall, and more customers are attracted to the product due to its unique design features and meticulous packaging.
Apple’s unique product features allow users to enjoy different services, such as storing high-quality photos and videos. As a result of the sales of the iPhones, giant camera sellers in the UAE, such as Nikon, are recording declining sales as customers prefer using iPhone cameras with artificial intelligence features (De Guzman et al., 2022). The intangible benefit clients get is the prestige associated with the product (Yamoah and Acquaye, 2019).
It is designed to meet the different market demographics as a luxury product. Customers download and install applications relevant to their demands and unique needs (iSTYLE UAE, 2023). The current models in stock range from iPhone 6s to iPhone 14 Pro Max (Tunjungsari et al., 2020). The product beats its competitors because it is not static and changes according to the customer’s needs.
Price Analysis
Pricing is the most critical aspect of a marketing mix as it determines sales. The company uses premium pricing and skimming to set the prices of its products in the UAE (iPhone at best price in Dubai, no date). Products are launched with high prices to meet the luxury standard market demands, but the prices reduce as newer models are unveiled. According to Khaleej Times (2023), iPhone prices have remained constant in the market for over 15 years. Apple iPhone could perform exceptionally well if it adopted price discrimination to meet customers of different economic statuses.
Price discrimination can be sustained in the company because it can use economies of scale (Kotler and Keller, 2016). Marketing offers such as selling half price for the first one hundred customers are likely to increase sales and maintain brand loyalty. Apple iPhone, however, does not leverage price discrimination and focuses on higher prices because of the brand image it has created (Gulf News 2023). It is essential to introduce fair prices to retain customers to competitors such as Nokia and Samsung, investing heavily in research and development.
The primary product determinants include the cost of production, demand, image, and competitor’s price. The iPhone prices are, however, determined primarily through the brand image. Price elasticity is more common in brands with lower loyalty. iPhone prices are not elastic because of the brand image, and regardless of the price increase, customer loyalty is not affected (Akter et al., 2022). Introducing price elasticity in the product will likely attract new customers and improve the brand’s customer base (De Guzman et al., 2022). iPhone has a perfectly inelastic demand curve, meaning all the products will be purchased regardless of price.
Apple Distribution Analysis
The four Ps of the marketing mix includes product, price, place, and promotion. The place is an essential aspect of the mix as it involves the distribution of goods to the customers. Retailers are the best distribution channels that can be used to reach a vast pool of customers quickly (Buy apple iPhone at best price: Virgin Megastore, no date). Apples selected Mindware to be the official distributor of the products in the UAE. The distributor is in Dubai and serves the region (Isa et al., 2020).
The distribution channels could, however, be improved if the company moves down to the distribution chain and have local retailers get the product directly from the manufacturer (iPhone, no date). Although the online presence is heavily covered and most prospects in the UAE are aware of the product, accessing it is limited to large towns (Daugherty and Wilson, 2018). Therefore, people living in rural areas depend on online purchases and deliveries made by Apple agents in their nearest shopping centers.
The United Arab Emirates is a dynamic market that leverages a variety of selling options. Apple must therefore analyze all the distribution channels and select one with the enormous traffic to increase its customer base. iPhone is obtained in the UAE market through different means, such as direct mail, online purchases, wholesalers, and retailers (Akter et al., 2022). Apple can increase its presence in the UAE by cascading online advertisements with a robust distribution network for prospective to access the product quickly.
Promotional Analysis
Product promotion is making a product known to customers and prospects. Apple leverages multiple promotional platforms to make its products known globally. It uses T.V. commercials, internet advertising, and sales agents for marketing the brand worldwide. It further leverages traditional media, such as newspapers and social media platforms, to reach millions of customers (The National, 2023).
Apple applies a four-pronged strategy to reach its target customers and develop strong sales relationships. The strategies include sales promotion, advertisements, public relations, and general selling. The messages in keynote speeches delivered during product launches publicize the company (Daugherty and Wilson, 2018). Apple can, however, do better if it leverages social listening and interactive web platforms to get customer concerns and address them in its designs.
Apple applies a holistic marketing approach to reach present and prospective customers. It invests in social media to communicate its new products, updates, and special announcements. The company uses social listening and active involvement to collect feedback from social media users. Further, national T.V. campaigns are used because they reach many prospects. Apple uses through-the-line marketing, an integrated approach where a brand uses robust communication means to collect customer feedback.
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