Analysis, segmentation and marketing mix of Apple


The goal of this article is to analyse the current position of the business which includes the merchandise, current proper position, and current financial strength. Various kinds of marketing tools are being used in this report. PEST analysis and Porter's five push model for looking at the exterior environment. SWOT examination for looking at the inner environment of the organization. This statement also looks into market segmentation and the marketing mixture of the product.

Apple was first introduced by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976 to advertise and sell the Apple pc kit. The first computer sets were palm built and was retained for a general population display first at the homebrew computer laboratory. This computer kit contains Motherboard with Memory, CPU, plus some video chips. Since that time apple attended a long way on the market all over the world and they're one of the leading companies in electronic digital products. This can be known with the information given below

Current Strategic Position

Apple thinks in continuous improvement and they look into all the main element sectors like environment, health insurance and safe practices management systems and the quality of our products, processes and services.

Looking into the Rule and goals of Apple, Apple has lay out their own ideas where they turn to meet all medical and safe practices requirements, promote energy efficiency, and their main goals are; invention is the most crucial thing for apple, to increase the amount of sales of the merchandise in the education field, providing new and user-friendly software for the clients, and last but not minimal providing high quality products to the customers.

Looking into the current tactical position of Apple, with the intro of its own operating-system, hardware, software program, and with a totally new design, Apple appears to meet all the customer requirements like new products, simplicity, and an impressive design of the product. Apple is currently focusing on, brand understanding and improving the merchandise by increasing the financial investment on marketing and advertising campaign, they are looking at broadening the retail segment by starting more range of stores all around the globe, they are considering keeping it up with the competition by implementing a cost leadership strategy, and they are seeking to continue the trustworthiness of being the leader in creativity for new technology by putting into action product differentiation strategy.

Looking into the current fund position of Apple, on October 19, 2009 Apple announced the financial results for the year 2009. The company posted earnings of $9. 87 billion and a online quarterly profit of $1. 67 billion. These results can be set alongside the earnings of $7. 9 billion and net quarterly earnings of $1. 14 billion in the last year quarter. International sales also helped 46% of the quarter's revenue. Gross margin is 36. 6% when compared to the previous season quarter which was 34. 7%.

Apple come to 17% increase when compared to the previous time quarter by successfully advertising 3. 05 million Macintosh personal computer computers during the quarter.

PEST examination and Porter's five causes are incredibly important tools to determine the external environment of Apple

PEST Analysis

Political Factors

Different countries have different rules and regulations which can act as a confident or a negative barrier which can bring about restricting the companies or lend opportunities to the business. Good thing for Apple is NAFTA, European Union and other regional trade open doorways so the company can have a wider market in Europe, Asia, Latin, and America which may offer tremendous potential to the company. Beatles lawsuit against Apple make a difference the reputation of the business in a poor way. There's a direct effect on the entire business of the business (Apple) because of the political uncertainties brought on by terrorism. Apple depends on the government to provide a offer and intellectual property from third parties.

Economic Factors

Apple has been damaged in the last calendar year by the poor economic which resulted in low consumer spending. Nevertheless the current market shows consumer spending, some amount of improvement, and investment might increase as well. In US due to the weak economical condition the educational section is encountering a big loss in many states. Hence it has caused a poor impact on the Apple's sales in the educational portion. With respect to sales of product Apple having an internationally market can be damaged by currency exchange rate and by international trade polices as they have the components of the merchandise from foreign suppliers.

Social Factors

Apple have designed their own computer systems and their own software's which can only help this generation as the computer and internet usage is swiftly growing worldwide. With all the introduction of Macintosh personal computer people have more info, gain more knowledge about different types of personal computers and becomes a good source of opportunities for the Apple computer industry. Education has become the primary concern for the new generation which is a main factor for the business's business. Community factors likewise incorporate internet revolution, shopping on the internet, Brand awareness of the company.

Technological Factors

Technology is experiencing an instant increase in this era, and people appreciate more and more innovative changes in their systems and are moving over over to the new information equipment and Apple have been successful in providing new gadgets. There's a rapid development in the consumption of the internet which is also a good chance for the company. The traditional desktop is now outdated with new products coming into the market like Mac notebook computers. This new technology can be used in universities, collages, and by experts as they will be in a position to gain the more knowledge and this in turn increases the demand of the product.

Porter's five forces

Porter's five forces model is a great model to work with to analyze a specific environment of a business. In this article we are entering the Personal computer industry and hence Porter's model can help us to find out about

Competitive Rivalry

Competitive rivalry for Apple is high as it is a competition on the list of big companies which is fierce as everyone is aiming at a more substantial market share, intense price reductions and changes. Computers are differentiated as hardware / software configurations. Competition is principally established one cost. The primary rival for Apple is Microsoft. Microsoft also offers their own operating system but is providing it to the clients in an exceedingly cheap price in comparison with Apple. Hence I could say that there surely is a brutal price competition.

Bargaining Electricity of suppliers. (Low)

Looking into Apple, the business is highly dependent on component suppliers. In case the supplier needs to increase his gains he can put pressure on the market by providing the components at a higher price. Apple is working at an increased risk than other because they are dealing with only few determined suppliers.

Bargaining Ability of customers. (Low)

In the Laptop or computer world there is high number of suppliers in the industry and Apple being a part than it, has its product price higher than the other company products. Hence there will be great deal of options for the clients to choose the cheapest and the best product.

Threats of substitutes. (Low)

In today's generation PCs signify 90% of the marketplace share as they have multiple configurations, performance and prices. Looking into Apple they have their own operating system called as Mac and there is absolutely no product competing in the market.

Threat of new access.

In the world of Computers any company which has a new technology that is reliable in terms of price and performance is recognized as a threat to the industry. Looking at Apple there is absolutely no risks from any new entrants as there is absolutely no product competing on the market. Apple has a very good brand image and it'll be very difficult for the new entrants to cause a hazard to the company.

SWOT evaluation is also an essential tool which will help in establishing the internal environment of Apple

SWOT Analysis

SWOT evaluation is a market tool which really helps to understand the strengths, weakness, opportunities and hazards in a business. During the tactical planning process the most commonly used tool is SWOT.


Corporate reputation is high.

Apple companies have their own product and their own operating system hence they have a good control over the product.

Leader in invention and product differentiation.

Apple has a very good tactical alliance with Horsepower.

Creativity style.


Apple has establish high prices on the products.

Apple has high inventory in their products.

Apple has problems in circulation of these products.

Apple has too many products.


Demand for innovation.


Growing industry.

Employee benefit programme.

Opportunity to make a new software market segments and selling the hardware in those market segments.


There is brutal competition on the list of PC industry.

Loss of market share.

Price competition.

Increase in supply's costs.

Market Segmentation

The market segmentation includes

Demographical bases.

Geographical bases.

Behavior bases.

Psychographic bases.

2. 1 Demographical bases (years, family size, life routine, occupation)

Looking into Apple, the Demographical market segment is successful because they're developing products on this, life cycle, job of folks. They may be distributing their products into various places and the PCs are categorized on get older, family size, for example they would have more video games and entertainment in the PCs for the youngsters and a professional PC with all the current latest software's.

2. 2 Physical bases (claims, regions, countries)

Looking into the physical bases of Apple they established their business across the world like U. S. , South America, European countries, Japan, and Australia.

Recently Apple thought we would implement a vertical growth strategy and commenced extending their own retail stores. The business also offers its product via third-parties sellers, or via internet through their own website or through the iTunes online music stores.

2. 3 Patterns bases (product knowledge, usage, attitudes, and responses)

In this market portion Apple providing good product knowledge to the clients by advertizing on search engines, T. V. as they have a very good brand image. By using brand image they may be continuously coming up with new ideas and products and appealing to the customers. Apple offers a good response rate as many of the clients are looking for new designs and ground breaking products which Apple is efficiently delivering.

2. 4 Psychographic bases (lifestyle, worth, personality)

Looking into Apple the psychographic market segment is successful because they're growing products on the lifestyle of people such as Mac book for the younger generation. Apple having a good brand image has very value for its products as they are different and progressive. Looking at the personality (style) sector Apple offers their products with different colors for the folks who like extravagant colors.


Marketing combination is the mixture of the merchandise, the purchase price, place and campaign. These are popularly known as Four Ps. Once the marketing condition like political, social, monetary, and technological factors change even the marketing blend should be changed.

The four Ps are detailed as below

3. 1 Product:

Apple is committed to sell original, good looking products which may have an easy-to-use program. The business offers a variety of personal computing products, related devices and different third party hardware-products. Furthermore, the company offers software products (Macintosh OS X), server software and related solution; professional request software; and consumer, education and business oriented request software. Apple has been very impressive by finding new usages because of its Macintosh personal computer computer, such as desktop publishing and strong images/animation capacities. The Mac functionality for managing multimedia system files from video cameras, DV recorder and MP3 devices has been extremely popular and successful.

3. 2 Price:

Apple price is known to be above average in the industry. The company is by using a differentiation strategy and focuses more on development, and quality. This strategy is justifying their prime prices. Currently, however, their new technology and their high cash flow allowed them to lower their price and offer more discount to certain markets such as the education market. This new costs strategy can help Apple to compete better with the non-Mac customer market but might cause some concern with the brand image/popularity.

3. 3 Place:

Apple's operating segments are made up of

U. S.

South America




Recently Apple thought we would execute a vertical progress strategy and began increasing their own shops. The business also offers its product via third-parties sellers, or via internet through their own website or through the iTunes online music stores.

3. 4 Offers:

The best in the Apple Mac pc is that melodies can be performed only from iTunes and therefore Apple In 2003, created a proper alliance with PepsiCo. The Pepsi iTunes music promotion calls for individuals to work with the winning code found under the Pepsi's container caps products to redeem sounds from Apple's iTunes music Store. This promotion has already been successful for both companies and increased the awareness of the iTunes occurrence on the market.

In 2003, Apple also released marketing partnerships With America Online that are aimed at driving a vehicle iTunes use deeply in to the mainstream. Apple pcs could play a song only from the iTunes. Apple and America Online have decided to put iTunes "buy this music" control keys next to every song that's posted in AOL's music service, which its 25 million clients can access. Pressing the button will automatically release the iTunes music jukebox and get started downloading the song; billing will be managed through the customer's existing layout with AOL.

Apple has a jv with Hewlett Packard. Apple has produced an iPod for Computer users and the success of this product was a great way for the business to fully capture non-MAC users.

The company' also drew on endorsements from music personalities. In 2005, Apple Computer has initiated a collaboration with Wal-Mart that noticed the iPod shuffle included at Wal-Mart discount locations around the united states.

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