Findings and discussion
Apple Incorporation has over the past few years appreciated the importance of market research. One of the factors that have led to this transformation is the intensity of competition within the PC and mobile device industry. In 2011, Apple Incorporation enjoyed a substantial market share within the iPads segment (Vascellaro, 2012).
During this period, iPads were new product in the market. Moreover, competition within this market segment was relatively low. However, this trend has changed significantly. More investors have ventured into the industry in an effort to exploit the growing market opportunity.
Currently, Apple’s competitors are increasingly investing in research and development in an effort to gain a substantial market share. The firm faces intense competition from Google Nexus 7 and Microsoft Surface which has led to a decline in Apple’s market share with regard to tablets from 81% to 52%.
The high rate at which firm in the PC and mobile device industry are investing in research and development has motivated Apple to continuously develop its products in order to ensure that they are aligned to customers’ tastes and preferences. According to Tassi (2012), market research plays a significant role in developing a company’s competitive strength.
Before introducing the new iPad Mini, Apple conducted a market research. The market research was aimed at gathering market information on two main variables, which include the consumer and the competitor.
Findings of the market research revealed that the firm’s competitors are increasingly courting their customers in order to determine their next big move. Consequently, Apple will be forced to start courting its customers in order to gain valuable market information (Vascellaro, 2012). The research revealed that there is a high market opportunity for the firm’s products. This is mainly so in emerging markets such as China (Vascellaro, 2012).
Chinese customers are amongst the greatest enthusiasts of smart phones. According to Brian White, the smaller iPad will present a substantial growth opportunity for Apple compared to the current iPad. However, the firm will be required to ensure that the product features developed appeal the target customers. Vascellaro (2012) asserts that customers in both developed and developing economies are increasingly being appealed by new smart phone and tablet features.
By analyzing its customer’s feedback, Apple Incorporation revealed that customers increasingly prefer smaller devices for convenience. This is one of the issues that the firm will take into consideration in the process of designing the iPad Mini. The firm will ensure that the screen of the iPad is approximately 7 to 8 inches long (AppleInsider, 2012).
In addition to new features, the likelihood of iPad Mini succeeding upon its introduction in emerging markets such as China is also enhanced by the fact that customers have developed a high level of trust towards Apple’s brand due to its unique design. A study conducted by the firm in seven countries on reasons that motivate customers to select their specific stores in their purchasing process revealed that most customers prefer Apple due to the high level of trust associated with the firm’s products.
Fifty four (54%) of the customers interviewed in China and US cited ‘trust Apple brand’ as their core reason for purchasing Apple’s products. On the other hand, 67% of customers interviewed in China cited the products’ design and physical features are their main motivation towards Apple’s products.
This presents a unique market opportunity for Apple to exploit in the course of developing the iPad mini. Adherence to customers’ needs and wants will increase the likelihood of the product gaining sufficient market acceptance upon its introduction Vascellaro (2012).
From the market research conducted, Apple Incorporation identified the education sector as one of the new market segment for its iPad Mini. According to Brian White, a renowned market research analyst, there is high probability of iPad Mini succeeding within the education sector.
This arises from the fact that educational institutions are increasingly encouraging students to use technology in their learning process. In the course of designing the iPad Mini, Apple appreciates the need to exploit this opportunity. Consequently, the firm will integrate the element of portability.
This will play a significant role in increasing the rate of iPad Mini utilization by students. Moreover, the convenience nature of the iPad Mini will stimulate iPad owners in developed economies to purchase the second and smaller model (Hughes, 2012). This will be made possible by the fact that the firm will integrate iCloud technology which will enable iPad users to swap between regular sized iPad and the iPad Mini.
In the course of introducing the iPad Mini, Apple’s management team intends to set the price of the product at $ 300 which is relatively high according to most customers (Oliver, 2012). However, the firm projects that the product will gain sufficient market acceptance. This will arise from the fact that the new product features will successfully lure customers to purchase the product.
In summary, findings of the market research reveal that there is a high probability of the iPad Mini succeeding upon its introduction in the market. Firstly, the new product features will appeal a large number of potential customers and existing customers in the developed and emerging economies.
Additionally, the unique design and usability of the iPad Mini will increase its utilization amongst new customer categories. By ensuring that the new iPad is effectively designed and developed, Apple Incorporation will be able to gain substantial market share within the PC and mobile device industry that has become very competitive.
Reference List
AppleInsider: Bloomberg, smaller iPad to launch by year’s end. (2012). Web.
Hughes, N. (2012). iPad Mini may give Apple larger market opportunity than current iPad. Web.
Oliver, S. (2012). Apple telling suppliers to prep for mass production of smaller iPad. Web.
Tassi, V. (2012). iPad Mini proves major for apple shares. Web.
Vascellaro, J. (2012). Turns out Apple conducts market research after all. Web.