I wrote Marketing plan about Apple Watch. Please read my plan and make Excutive
ID: 331947 • Letter: I
Question
I wrote Marketing plan about Apple Watch.
Please read my plan and make Excutive summary based on my plan.
MARKETING STRATEGY
Segmentation, Targeting, Positioning
Positioning of Apple’s Series 3 Watch heavily relies on the attributes and benefits it contains. The Apple Watch Series 3 positions itself in the minds of consumers as a “lifestyle brand” more than anything else, thanks to its simplistic use, smart device capabilities, dedication to a proactive and healthy lifestyle, and superior construction. Although many brands position themselves as lifestyle brands, trying to be with the customer every step of the way, not all can say that they have done it. With the new waterproof design, making the device more rugged, along with looking at many of the ad campaigns that you will see later in this report, Apple is looking to be just that; the brand that is with you every step of the way.
Breaking it down further, we broke Apple’s methods into four parts: geographic, demographic, behavioral, and psychographic. Geographically, Apple is located and recognized worldwide, but for this report we will be focusing on the United States, with an urban density. The urban density involves all people inhabiting a given urbanized area. The demographic of the customer base is set to be males and females from the age of 20-45, across all types of people from the bachelor stage to a full nest second stage, meaning families with children over 6, but younger than college age. Apple typically segments its consumers for the apple watch into upper middle class or high earners, with a professional or managerial occupation. Looking deeper, and focusing on the consumers behavioral types, we found that Apple’s segment on the market for the degree of loyalty is high loyalty people. Typically, the most avid fans of Apple will purchase an Apple Watch only after a great experience with other, more basic Apple brand products - such as the iPhone and MacBook. The benefits sought for this segment of the market are consumers who tend to be recreational and expressional. Apple segments the market
into those who tend to be determined and ambitious. Overall, the psychographic research showed that these people are more upper class social status, with an explorative and active lifestyle.
Marketing Channels
Apple has made itself accessible from many different locations. For example, you will see that Apple has a support application, simply for people looking to troubleshoot their issues or connect with Apple support advisors. Besides this, there is an Apple shopping application, that can be used to compare and contrast different products that they are selling in order to make your next purchase easier to decide. They also have their website which is formatted properly to be user friendly on both computer or mobile device.
When thinking back to many of the ways that Apple connects with customers, we see it through applications, tv commercials like shown below in the marketing tactics, along with billboards that are most commonly seen on some of the tallest buildings in large cities like Chicago, New York, or Nashville.
Marketing Communications Mix
While Apple successfully has branded its products, including the Apple Watch in all different facets, it has had most of its success in the following four areas:
From and advertising perspective, the Apple Watch Series 3 now comes with LTE, GPS, and cellular support, and that is the main focus of a lot of their advertisements. Their focus on fitness being implemented into a healthy lifestyle is shown in their end-of-year holiday ads, titled “Swim”, “Snowboard”, “Soccer”, and “Workout”. All of these advertisements came in the form of 15-second videos with the umbrella term, “The Gift of Go” as seen in exhibit 5. Ultimately,
Apple’s focus with these ads was on thrill seeking people aiming for a healthy lifestyle. Each of the four advertisements showed a different aspect of the Apple Watch Series 3. All of the advertisements shared a similar style, but where the “Workout” ad showed how Apple Music works through the watch, “Swim” focused on the workout app programmed into it. (Potuck).
Apple continually boasts booming sales through advertisement, as advertising is the main form of communicating the product to customers. The company produced multiple dozens of ads throughout 2017, each with a specific goal. One advertisement showed how no matter what your zip code or your upbringing, Apple can be easily implemented in to your life. Another showed how simple it is to pair the iPhone 7 with the new Apple EarPods. Most of their advertisements come in the form of videos.
When reflecting on some of the events and experiences that Apple either hosted or were a part of, Apple held two major events during 2017, on June 5th and September 12th. The aim of these events was to inform loyalists of the Apple brand about changes to the company and upcoming products to generate excitement about what was to come. The June 5th event, otherwise labeled as a Keynote, boasted a proud array of new products, including the enhanced iPad Pro, an expansion to the Mac family, and a brand new HomePod. The September 12th Keynote displayed a new generation of iPhone, the Apple TV 4K, and of course, the Apple Watch Series 3 with cellular connectivity. During the latter Keynote event, which took place for the first time at the Steve Jobs Theater, paid homage to the original founder of the product.
During the events, many influential people spoke of the products. Tim Cook, current CEO, was even one of the guest speakers, introducing the Apple Watch Series 3. Tim Cook also has joined many technological summits during the 2017 year. One of the biggest examples of this was his arrival at the White House Tech Summit (Lapowsky). This tech summit brought
together today’s most influential people in technology and aimed at fixing the ailments at the intersection of government policy and technology.
Being prepared for anything that comes its way, Apple wouldn’t be successful and maintain its solid reputation without its Public Relations strategy (Glean). Apple has an eight-step PR plan that allows them to remain one of the most respected brands of modern times:
** Storytelling. The CEO of Apple recognizes a problem and then offers a solution with one of Apple’s products.
** Simplicity. Press releases of the products were easy to comprehend for consumers.
** Learn from failure. Take failures and alter them to create the next best thing.
** The Golden Circle strategy. Compel the audience and compel your partners – answer what the purpose is, how the company fulfills its mission, and what it does to tackle its core belief.
** Reviews. Pay attention to all reviews – good or bad. Tailor material to different target audiences.
** Top-down secrecy. Do not let word leak on newest product launches.
** Press releases. Use in-depth but easy to understand product descriptions. Use single word adjectives to describe products (e.g. iPhone is revolutionary, iPad is magical).
** Culture marketing. Establish the brand as high-profile, make the product available to businesses and individuals.
When analyzing Apple’s online and social media presence, we found that they have very high relevance and are active, and well known. Apple globally has 137 different online locations, tailored to specific regions, making it easier and more intuitive for all different types of consumers. Apple is definitely location aware, using geolocation to easily communicate with people visiting their website.
Apple has a large social media following as well. On Facebook alone, the company boasts a rather impressive 11 million followers. Apple uses the platform as a more informative approach to connect with consumers. Apple has a main twitter account with 1.76 million followers, but they haven’t used it yet. However, they have alternate separate channels such as Apple Music and iTunes, where they seem to mostly target millennials, offering insight on the products in a “fresh” and “modern” way. Apple’s Instagram is a different story. While they do have a large following (of nearly 5 million people), the pictures they post tell a story more about their consumers than it does talk about the products. It’s a smart approach to give the consumers a sense of connectivity with the brand, vs. feeling like they are being sold something.
Marketing Tactics
During the year of 2017, Apple had three different series of watches: Series 1, 2, and 3. Each series of watch came with their own special functions and features, but most of the marketing tactics for 2017 were for their newest device to the Apple family: The Apple Watch Series 3. What made this device so special was its ability to connect to a cellular connection without having your phone or mobile device nearby. This would allow for its user to send text messages, make phone calls, from wherever you are no matter what you are doing. We saw this
in a one of their advertisements that they called “Surf” which was a 45 second clip, where we attached a screenshot below in exhibit 6.
In the video you will see an individual out surfing and while catching a giant wave, their watch is starting to ring, showing that they are receiving a phone call. This is the first Apple Watch that would allow it to function like this, since the Series 1 cannot even be submerged in water, and the Series 2 you need to have your phone within Bluetooth range which is around 100 meters or 328 feet in order to receive call notifications to your watch.
For this marketing plan that they released for their newest product, we felt that they were mostly targeting more active individuals, who have a high focus on living a healthy lifestyle. With this being said, we are looking at age range of mostly young adults that we would say are around 18 - 27 years of age. Showing the cellular capabilities and showing that no matter what it is you are doing, you can be connected wherever life takes you.
In another advertisement, more focused on the Apple Watch Series 2, Apple released a 1 minute and 15 second video titled “Live Bright” with a screenshot shown in exhibit 7.
In the video you will see several different individuals doing things like stretching, paddle boarding, hiking, going down a water slide, playing basketball, swimming, etc. The Apple Watch Series 2 was their first watch that was fully waterproof, so this was the first watch they really started to push the whole lifestyle device, and pop culture icon symbol, where the video focuses heavily on the use of the fitness tracking functions. You will see individuals “closing their rings” meaning that they stood for a certain number of hours throughout the day, exercised a certain number of minutes, or burned a certain number of calories. With its waterproof functionality, they advertise their addition of swim exercise tracking mode, which they show in the video of an individual swimming and checking their activity rings. You will see other athletes checking their
heart rate, being able to make sure g sure they stay within their desired range in order to achieve their personal fitness goals.
Similarly to Apple’s other advertisement for their Apple Watch Series 3, called “Surf”, we believe that Apple is targeting young adults ranging in age from around 18 - 27 years of age, where fitness and a healthy lifestyle is towards the top of their list of priorities showing this particular group all of the available functions like heart rate tracking during while in exercise mode or the and breathing monitor to help you in the recovery mode during your post workout meditation.
While watching this advertisement, we also picked up on another hidden message that Apple may be portraying. Throughout the video you see lots of diversity: people of different races and ethnicities, along with seeing a wide range of colors and exercises or activities going on. Apple is aiming to reach each and every market, whether you play basketball, or hike, or swim, or skydive, this watch can fit your lifestyle and serve many purposes. Also, we believe all the flashes of colors and different activities also support customization within the watch. When you purchase your Apple Watch, you are given many options for which watch band you would like equipped whether that is the solid colored sport band build for any lifestyle, or the patterned nylon band that focuses on total comfort. Whatever mood you are feeling that day, or whatever activity that you are going to be partaking in, Apple has a band for you, like shown in exhibit 8.
In the next advertisement that Apple released for their Apple Watch Series 3, you see them introducing how the watch can be used with Apple Music, and how you have the capability of listening to 40 million songs, all from the little, yet very powerful device on your wrist. This was shown in a 1 minute and 10 second video called “Roll” with a screenshot shown in exhibit 9. In the video you see an individual that is using three different Apple products or services
and shows the connectivity that the devices have together. This individual has an Apple Watch Series 3 and has his Apple AirPods headphones connected straight to the Apple Watch via Bluetooth, where he is able to wirelessly listen to over 40 million different songs just by picking songs from his watch. In the video you see the individual skating all around public buildings, offices, etc. doing impressive skateboarding tricks while jamming out to his favorite songs. You see his energy become contagious as other people do flips as their final act before disbursing. Music has always had a positive impact on so many people and can make the most gruesome task much more fun and enjoyable. With this being said, Apple is able to help people get connected to their favorite music and jam out to their favorite artists wherever they are, while doing whatever they need to do, like in this video, skateboard.
Similarly, to many of the other marketing ads that we have seen from Apple, especially in the year of 2017, like “Surf”, and “Live Bright”, Apple targeted their younger crowd, particularly young adults from the ages of 18 - 27 who are focused on living active and healthy lifestyles. They are able to be connected to their music wherever they are, without the need for their mobile device to even be on them in that moment. They also are able to bring in their Apple Music service to show the 40 million different options available, while also showing the sleek, simple, and convenient design of the AirPods and how all of these powerful devices and services can work together to bring the consumer one incredible outcome.
One of Apple’s most powerful marketing advertisements was their video called “Dear Apple” (like shown in exhibit 10) which they released and played right before their largest watched event of 2017. They started with this 2 minutes and 38 second video of different individuals from all around the world, speaking their native languages, telling their stories of how the Apple watch has impacted their lives.
Throughout the video, you can meet some very inspiring individuals, telling their stories. You hear from Olympians, ballet dancers, marathon runners, fathers, and even a 99-year-old woman who loves to travel the world. People talk about their journeys with losing weight, and bettering themselves, by closing their activity rings. When their rings aren’t closed, they tell stories of doing jumping jacks, or push-ups to quickly move their rings before the time runs out. Besides the fitness aspect, the emotional advertisement goes on to show individuals in car accidents, where the phone wasn’t accessible, and they were able to call for help using their Apple Watch. The video then goes on to show a concerned Dad who can use the benefits of the Apple Watch to monitor his daughter’s diabetes.
I think the video was their most powerful ad for 2017, being one of Apple’s first advertisements to really try and touch viewers emotions. Many people think of it as just a watch, where you can track your workouts, or see a text message. But Apple goes onto show that the possibilities are endless of things you can do, and some of the moments where the watch can really serve a crucial purpose in your life.
What we also found interesting about this advertisement was the wide range of ages. You saw a little girl wearing the watch, probably around the age of 10 years old. Or another woman who said she was 99 years old. This is one of Apple’s only advertisements, especially for the Apple watch, for the year of 2017 where the target market was not focused on a specific number, but rather showing all of its users that it can be used in so many different ways, and can be applied to people of all ages, health statuses, and ethnic backgrounds.
Explanation / Answer
Apple watch is a limited market product, buyers for apple watch are you in the high class people who share less percentage of the overall market which Apple focuses with its products. Apple watch has direct competition with small scale as well as large scale wearable devices. Large-scale wearable devices suggest Moto 360 has given date of completion to Apple watch as their design was very aesthetics as compared to the apple watch.
Apple analysis forward a customer and capturing the growing vehicle market has a very limited reach. This Limited reach is because of the Limited buyer of the products in the society. People usually prefer Apple watch with the high end on the latest mobile phones. Introduction of new Apple iPhone models has increase the sales of the Apple watch as it is considered as a premium smart watch for mobile phone segment.
Apple has been very unsuccessful in understanding about the segmentation of the market. This segmentation of market should have been done according to the buying capacity of the buyers. Miss understanding of the buying capacity of the buyers has definitely decrease the overall effectiveness of the Apple. This decreasing understanding of the market on segmentation of the market according to the uses of the iPhone has definitely impacted overall sales of Apple watch in the different markets.
Apple watch was primarily focused on the rich countries such as European countries and the United States of America. Apple does not include developing countries such as India which is one of the the biggest market for the Apple products. People usually do not buy expensive variables in these countries and Apple was not able to determine the price. For the products according to the developing countries which is one of the most major part of their overall sales across the globe. By having a wrong understanding of the market Apple was very unsuccessful in creating proper market segmentation and apple watch failed to capture the specific market and the overall sales fall down by a large scale.