What do you think was the main reason for iPhone’s success in America?
As I am sure, the main reason for the success of Apple in America was their perfect understanding and use of the 7 P’s of marketing (Tracy 2004). The company has produced a high-quality product, understood when the price needs to be lowered and acted so, managed to promote their product so well that people have idolized it, used attractive packaging and right places to sell it, initially positioned its product as superior and sophisticated and attracted the right target market (young people using the product for personal needs rather than business).
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With tough competition from Nokia, HTC and Blackberry, do you think iPhone is as successful in Europe as in America? Why or why not?
It is true that after its introduction to Europe, the iPhone has faced strong competition with Nokia, HTC, and Blueberry. However, it is clear that the iPhone is now as successful in Europe as in America. At first, the competitors were stronger, but nowadays, the main reason, for which the iPhone is in a superior position, is IOC (Tung 2015). Symbian, the operating system of Nokia, is now considered a disadvantaged system; moreover, Nokia is now facing a serious decline and is almost out of the competition. Blueberry OC and Android are currently losing their positions to IOC in Europe. Since IOC is more sophisticated and less prone to breakdowns, the iPhone is likely to continue being successful in Europe.
Help Apple to formulate a strategy and a marketing plan for Europe
In my opinion, Apple needs to employ the following strategy in Europe. First, it is necessary to stop their agreements with mobile network operators (Faheem 2008, p. 630). Such agreements are dissatisfying the customers and making them unlock phones to use their network of choice. Second, the prices need to be lowered since the iPhone is still known as an expensive phone.
The marketing plan for the iPhone in Europe can proceed as follows:
- The target market should be enlarged. The already existing target market should be kept, as it has proven to be successful. The current target market includes Millennials, who use phones for personal purposes and prefer active online communication. Apple needs to include older generations to its target market, as well as the individuals using smartphones for business.
- Apple needs to keep its unique selling proposition the same, i.e. make its products speak for themselves instead of inventing a motto.
- The prices need to be lowered to suit European customers.
- The distribution policy should make iPhones as available as possible. The company must be able to meet the demand of prospective customers.
- The typical Apple promotion strategy (creating buzz around its products) needs to be changed. As time passes, it makes people more ironic and irritated than excited. The company should employ a more stable promotion mode.
- The current online marketing strategy of Apple is workable and should be preserved.
Do you think Apple’s superior technology is helping it to achieve market shares?
In my opinion, being technologically superior allows Apple to gain market shares and defeat its rivals in the market. As it was said, many people now consider iOS more sophisticated that Android and Blueberry OC (Tung 2015), not to mention Symbian. Apple produces more durable batteries than Android, which has an important impact on customers’ buying decisions. IOC works faster and is far less inclined to random shutdown than Android. In addition to these facts, Apple, unlike many rivals (such as Samsung) launches new devices only when it is able to produce something even more sophisticated, which is a winning strategy. Due to these factors, Apple’s sales are currently rising and are likely to continue being that way.
Faheem, H 2008, Apple Inc.’s iPhone: Can iPhone maintain its initial momentum. Web.
Tracy, B 2004, ‘The 7 Ps of marketing’, Entrepreneur. Web.
Tung, L 2015, ‘iPhone sales growth in Europe as buyers ditch their Androids for Apple’, ZD Net. Web.