SCHOOL OF BUSSINESS


PRINCIPLE OF MARKETING
Instructor: Tran Tien Khoa
 APPLE WATCH SERIES 4
REPORT
GROUP 5

GROUP MEMBER
1. Đỗ Mỹ Uyên IELSIU17013
1. Huỳnh Phạm Hoài Thương BAFNIU17058
2. Phan Ngọc Đan Thanh BAFNIU17033
3. Trương Như Ý BABAWE17049
4. Từ Gia Huy BABAIU17136
5. Lê Đăng Quang BAFNIU17065

OUTLINE
1. INTRODUCTION
A smartwatch is a portable device that's designed to be worn on a wrist.
Smartwatches — like smartphones — use touchscreens, offer apps, and often
record your heart rate and other vital signs. Apple Watch is a line of
smartwatches designed, developed, and marketed by Apple Inc. It incorporates
fitness tracking and health-oriented capabilities with integration with iOS and
other Apple products and services.
Apple Watch relies on a wireless connection to an iPhone to perform many of its
default functions such as calling and texting. However, Wi-Fi chips in all Apple
Watch models allow the smartwatch to have limited connectivity features away
from the phone anywhere a Wi-Fi network is available.
History:
Development:
While digital watches have been around for decades (some with abilities like
calculators and unit converters), only in the 2010s did tech companies begin
releasing watches with smartphone-like abilities. Rumours surrounded an
Apple-developed wearable device back as far as 2011, which conceptualized
the device as a variation of the iPod that would curve around the user's wrist
and feature Siri integration with a curved display. It is reported that Apple's
smartwatch project was "beyond the experimentation phase in its
development", which had a team of at least 100 designers working on the
project.
· Unveiling:
In April 2014, Apple CEO Tim Cook said that the company was planning to
launch new product categories that year, but did not reveal any specifics. On
September 9, 2014, during a press event where the iPhone 6 was also
presented, the new product was introduced by Tim Cook as "the next chapter
in Apple's story" with a video that focused on: its design, the various
combinations of bands and case styles that would be available to the
consumers. After the reveal video, the auditorium was filled with prolonged
applause and a standing ovation as Tim Cook reappeared onstage wearing an
Apple Watch. Tim Cook explained that Apple Watch was "a precise
timepiece, a new intimate way to communicate from your wrist, and a
comprehensive health and fitness device.
· Advertising:
In comparison to other Apple products and competing smartwatches,
marketing of Apple Watch focused more on advertising the device as a
fashion accessory; a 12-page advertising spread for Apple Watch in an issue
of Vogue focused primarily on the different combinations of body and band
styles available, and downplayed the technological aspects of it.
· Releasing:
Pre-orders for the Apple Watch began on April 10, 2015, with the official
release on April 24. Initially, the Apple Watch was not available at the Apple
Store. Customers could make appointments for demonstrations and fitting,
but the device was not in-stock for walk-in purchases and had to be reserved
and ordered online. By the end of September, Best Buy announced that it
would begin stocking Apple Watch at its retail stores. Apple Watch went on
 sale in India on November 6, 2015. The device also launched in Chile, the
Philippines, Indonesia, and South Africa.
· Named:
The device was not branded as "iWatch" (which would put it in line with its
pre-existing product lines such as iPod, iPhone, and iPad) due to trademark
conflicts in certain territories. In the United States, the "iWatch" trademark is
owned by OMG Electronics – who was crowdfunding a device under the
same name, and is owned in the European Union by Irish firm Probendi. In
July 2015, Probendi sued Apple Inc. for trademark infringement, arguing that
through keyword advertising on the Google search engine, it caused
advertising for the Apple Watch to appear on search results pages when users
searched for the trademarked term "iWatch".

. Functions:
Notifications: For example, the newest Apple Watch includes a fall sensor. If
you fall while wearing the watch, the watch senses your subsequent
movement; if it doesn't detect any, it'll send a series of escalating
notifications. Fail to respond to the notification, and the watch will assume
you're injured and alert authorities on your behalf.
Apps: Beyond displaying notifications from your phone, an Apple Watch is
only as good as the apps it supports. For example, using Apple Watch with
a dedicated purpose, such as for hiking or diving, generally support the
apps they need to accomplish that purpose without the opportunity to add
other kinds of apps.
· Media management: For example, when you're listening to music on an
iPhone using Apple's Air Pods, you can use your Apple Watch to change
volume and tracks.
· Answer messages by voice: tap one button and get a “ping!” even if your
phone is on silent.
· Fitness tracking: provides a minor motivation to keep your physical activity
up. Especially if you are prone to do it well one day and forget to keep it
up another.
· GPS: a GPS for tracking your location or receiving location-specific alerts.
· Heart rate monitor: encourages exercise for 30 minutes per day, burn up a
set number of calories and to spend time standing up so you’re not sitting
down all the time.

· Good battery life: get you through the day, with normal use, with a bit of
juice still left to go. Battery use varies; the Apple Watch typically gets 18
hours of normal use on a single charge.
Design:
The Apple Watch is available in multiple variants, distinguished by different
combinations of casing and interchangeable bands.
· Mechanism: enable the straps to be interchangeable.
 · Input: includes a "digital crown", which can be turned to scroll or zoom and
pressed to return to the home screen, and a touchscreen, which makes it
capable of distinguishing between a tap and a press.
· Side button: display recently used apps and access Apple Pay.

· Charging: using a cable similar to the MagSafe cable from Apple's

MacBook family of laptops.
· “Power reserve" mode: allows the user to continue to read the time for an
additional 72 hours, then reverts to its original mode when recharged.
· Withstand splashes of water: such as rain, hand washing, swimming and
surfing.
Types of Apple Watches:
A. Hardware:
· Apple Watch Series 1:
The first-generation Apple Watch, colloquially referred to as Series 0, uses
the single-core S1 system-on-chip. It does not have a built-in GPS chip,
instead relying on a paired iPhone for location services. It uses a linear
actuator to provide haptic feedback when an alert or a notification is
received, and is used for other purposes by certain apps. The watch is
equipped with a built-in heart rate sensor, which uses both infrared and
visible-light LEDs and photodiodes.All versions have 8 GB of storage; the
operating system allows the user to store up to 2 GB of music and 75 MB
of photos. When the Apple Watch is paired with an iPhone, all music on
that iPhone is also available to be controlled and accessed from the Apple
Watch.
· Apple Watch Series 2:
The second generation has two tiers. It has a lower starting price than first
generation watches and the dual-core Apple S2 processor, water resistance to
50 meters, a display twice as bright, and a GPS receiver.
· Apple Watch Series 3:
The third generation features a faster processor: the dual-core S3, Bluetooth
4.2 vs 4.0 on older models, increased RAM size, and available in a variant
with LTE cellular connectivity. Siri is able to speak due to the increased
processing speed of the Watch. The Series 3 Apple Watch is explicitly not
compatible with iPhone 5 devices, requiring users to have an iPhone 5S or
later for the GPS-only model, or an iPhone 6 or later for the cellular-enabled
model.
· Apple Watch Series 4:
The fourth generation features larger displays with thinner bezels and rounded
corners, a slightly rounder, thinner chassis with a redesigned ceramic back, a
new S4 64-bit dual-core processor capable of up to double the S3's
performance, new options for watch face customization, and a new electrical
heart sensor which works by measuring the potential difference between the
wrist and a finger from the opposing hand into the S4 Module over 30
seconds.
· Apple Watch Sport:
The aluminum cases and sport bands or woven nylon bands; Apple Watch
Nike+ comes with aluminum cases and Nike sport bands or sport loops;
Apple Watch Hermès uses stainless steel cases and Hermès leather watch
bands (also included is an exclusive Hermès orange sport band)

B. Software:
Apple Watch runs watchOS, whose interface is based around a home screen with
circular app icons. The OS can be navigated using the touchscreen or the crown
on the side of the watch.
· watchOS 1.0.1: featured performance improvements and support for
additional emoji and languages, released on May 29, 2015.
 · watchOS 2.0: featured new features and more general improvements to
Apple Watch. Following the software update, some users experienced
issues with lag.
· watchOS 3.0: keep apps running in memory as well as receive background
updates and refreshed information. An updated Control Centre and new
reply options on Messages. Several new watch faces have also been
added, including Minnie Mouse, along with the ability to switch watch
faces from the lock screen simply by swiping.
· watchOS 3.1: released to the public on October 24, and near the end of
March, 2017. Both updates added minor improvements and bug fixes.
· watchOS 4.0: features a proactive Siri watch face, personalized activity
coaching, and an entirely redesigned music app. It also introduces
GymKit, a technology platform to connect workouts with cardio
equipment.
· watchOS 5.0: an instant watch-to-watch walkie-talkie mode, all-new
Podcasts app, raise-wrist-to-speak Siri, customizable Control Center, and
the ability to access notification center and control center from apps.

2. LITERATURE REVIEW
APPLE INC.
Apple Inc. is an American multinational technology company headquartered in
Cupertino, California. Apple, was founded on April 1, 1976 under the name
Apple Computer, Inc., and changed its name to Apple Inc in early 2007, by Steve
Jobs, Steve Wozniak, and Ronald Wayne.
In 2005, with an annual global sales of US $ 13.9 billion, 74 million iPhone
devices were sold in the fourth quarter of 2014 alone and there are more than
98,000 employees in many countries and products. are personal computers,
software, hardware, music devices and many other multimedia devices.
The truth behind the scenes is not that Apple has a large group of customers that
are too dedicated and passionate about their products, or the company as a whole.
The reality is far more simple and obvious: Apple simply has a large group of
very satisfied customers and that's the secret ingredient left out of nearly every
analysis.
Apple Product Growth And Valuatation.

Apple’s 1997 “Think Different” marketing campaign was one of its most
memorable ever. Billboards and banners featured huge black-and-white portraits
of performers, artists, scientists, and political leaders whose outsider ideas
eventually became mainstream. The implicit message was that Apple’s “insanely
great” products were for quirky rebels who would one day dominate the world.
The photo of Steve Jobs on the cover of his posthumous biography would have
fit right in.
The Apple of today is turning its back on that creative class. Apple no longer
designs for creators of digital media, who tend to be very demanding about
product quality. Instead, Apple builds for consumers—in both senses of the word:
people who spend their own money, rather than their companies’, and people
who consume digital media, as opposed to people who produce it. Focusing on
digital consumption has made Apple wildly profitable, but the company’s
products have trended downwards in quality, flexibility, and even reliability.

Apple appears to be suffering from growing pains. The company—which

declined to comment for this article—seems increasingly overwhelmed by the
wide range of products and services that it has created, and is responding (quite
logically) by spending significantly less effort on items that appeal to a shrinking
percentage of its customer base—a group that unfortunately includes digital
creators. The danger is that by focusing on consumption, rather than production,
Apple will jeopardize the very essence that first made its products insanely.
The Good Apple
From one perspective, Apple's world could not be rosier and its future shinier.
Rising from the rubble of a disintegrating company in 1997, Apple has reached
the pinnacle of success in 15 short years. With a market capitalization of over
$500 billion, Apple is amongst the most valuable and highly profitable
companies in the world.

Its remarkable success lies in the company's ability to create truly innovative
products with vast customer appeal. Apple flouts the conventional wisdom of the
consumer electronics industry, which emphasizes low cost, "me-too" products,
and a continuously shortened product life. Instead, Apple has opted for constant
and discrete product innovation, resulting in fanatic consumer loyalty and a high
level of profitability.
The Bad Apple

So why does Apple treat its customers and workers by two different standards?
When it comes to customers, Apple is a bold innovator that leads the industry
into new directions and forces others to follow. However, when it comes to the
management of its supply chain and treatment of workers in the Chinese factories
that make its products, it hides behind the constraints of prevailing industry
practices. What is even more disconcerting is the fact that these practices are in
violation of not only local and national laws, but also of Apple's own voluntary
self-imposed code of conduct. It is important to note that this voluntary code of
conduct breaks no new ground. It is at best a modest attempt to ensure that
workers will be treated fairly and provided with a safe work environment.

Yet the violations continue, despite years of monitoring factories where Apple's
own audits show persistent non-compliance and despite these factories' repeated
broken promises to improve.

Apple's Strategic Profile - Value Culture vs. Cost Culture

In my view, Apple's good and bad sides both emanate from the same business
philosophy: adroit exploitation of market power for the sole benefit of the
company and its investors. This model does not consider "what is fair" but what
is competitively achievable in higher prices for products sold and lower costs for
products made.

Value Culture: When it comes to customers, Apple applies the notion of value,
i.e., a pricing strategy that is driven by its focus on the value—real and perceived
—to its customers. The customer is willing to pay a price that is equal to the
product's perceived value to the customer. Hence, as long as the customers are
satisfied, Apple is under no obligation to reduce its prices.
Apple’s first step is usually to develop a product that the customer would want
then they move on to bringing the product to the customer. Apple has been able
to go above Microsoft because Microsoft opts to first earn money. Their main
focus is on competing with Apple and not giving their customers an experience
that would really satisfy them and leave them happy. Believe it or not; customer
experience plays a very important role in determining whether or not customers
will buy your product.
Simply put, Apple gives customers what they want and they do not take any time
to play games like many other companies do.

3. MICRO ENVIRONMENTAL ANALYSIS OF

APPLE WATCH
The aim of this analysis is to investigate the environment in which Apple
operates in for their smart watch.
1. Bargaining power of Customers.
1.1. Quantity of customer.
- Apple watch series 4 with more special features and higher convenience than
Apple cell phone (Iphone) have hit the psychology of the majority of customers.
The revenue of the second quarter of 2019 was reported with nearly 5 billion
USD of which 3/4 of revenue came from new customers. When the increase in
quantity of customer is happen, it will make the buyer power weaker.
1.2. Customers preferences.
- For smart watches that are currently on the market, a common drawback
between them is that the display screen is smaller than the cell phone, making the
operation even more difficult. However, Iwatch series 4 has overcome this
disadvantage by increasing the screen size and resolution to a more appropriate
level than the previous series 3 and also reducing the thickness of the product to
ensure aesthetically. Besides, the health protection function only available on the
phone has been first integrated on this wearable device. This important point
makes customers consider and prefer more in this iwatch than other similar
products, which means the buyer demand is higher that make the buyer power
weaker.
1.3. Switching costs.
- Because Apple has a special separate operating system, their products are
closely connected but separate from other similar products on the market.
Besides, Apple software and media only works with Apple devices. Therefore,
when using the Iwatch that users switch to a smart watch of another brand, the
previous purchased media will not be used anymore. This will be even more
evident if the customer is using both Iwatch and Iphone at the same time, the
connection between two devices in one operating system will be lost when
changing one of them, therefore the convenience between them will also be lost.
In this sense, Apple’s customers’ bargaining power is low. It would cost so much
for users to change operating systems that many would not unless quality became
a major issue.
2. Bargaining power of Suppliers.
2.1. Quantity of suppliers.
- The development of apple in general and of Iwatch in particular is indisputable,
so there always has a certain number of suppliers who want to cooperate with
them. In addition, more and more oversea suppliers are joining in with local
suppliers, making competition even stronger. The number of suppliers is always
stable and tends to increase so that Apple always has a lot of options to choose,
the bargaining power of suppliers is also weaker.
2.2. Uniqueness of the product offered.
- Although there are many suppliers who want to cooperate, there are still some
cases where the bargaining power of the supplier becomes stronger. Some
components in the Iwatch come from relatively scarce sources of materials or
need to have a certain level of technology to exploit. Others have to be adapted
and manufactured with a special formula to match the level of expertise of the
product. Therefore, suppliers of these special components have more power
supplier.
2.3 Scale of the suppliers.
- The scale of suppliers is also a factor affecting bargaining power. Because the
market of the Apple watch is quite specific so the quantity and quality of the
supplied components must also be guaranteed. If the provider has a financial
limit, this would be a disadvantage in negotiating. Conversely, suppliers with
large scale and high capital will gain more advantages.
3. The threat of Substitute Products.
3.1. The old substitute.
- Products in the field of technology are constantly innovating and developing.
However, there is still a part of consumers who feel they have not adapted to the
new technology or have not felt that the new technology can help their lives
better. So they did not choose new products and faithfully use the old one. Apple
watch series 4 is an advanced product but for this customer department, it is still
unattractive them because of the unsuitable price and features. Then, the threat of
substitute products for iwatch is now stronger.
3.2. Minimalistic living trend
- Because of the rise of a number of social issues related to "technology
diseases", a part of customers is moving towards a simpler lifestyle. Since then
they have also selected products that are less related to advanced technology but
prefer primary items. In this case, smart watch is not able to attract them that
make the threat of substitute products stronger.
4. The threat of new Entrance.
4.1. Obstacles and risk from entry cost
- The market of Apple watch series 4 is quite advanced and expensive. So when a
new company wants involve in, it will have to overcome many obstacles and
risks. The new company must have a large investment drill to learn high-end
technology, search for skilled workers and advertise product information on a
large scale. This is relatively difficult because the position and influence of the
Apple brand is very stable. So there are quite a few new companies that want to
try it in this field which make the low threat of new entrance.
4.2. Creative copyright.
- For some specific products, the patent company will register copyright for their
products. So, this will be a challenge for new entrants because they will most
likely be sued for creative copyright infringement if they enter the market
without being careful. In the case of Iwatch series 4, Apple only registered
trademark rights but not exclusive products or technology. So this is a safe point
for new companies joining this field, which increases the threat of new entrance
for the Iwatch.
5. Intensity of Rivalry
5.1. Unique operating system
- From the beginning of this field, Apple has chosen for itself an unique
direction. They build an operating system for their own products, so that their
technology products have interrelated relationships, working together in a tight
and convenient way. This point has attracted many customers who have bought
an Apple technology product to other products related to it. The clear example for
this is the good connection between Iphone and Iwatch, which helps busy
entrepreneurs solve many problems more quickly. Although there are also some
brand competitors that are going in this direction but Apple Iwatch still has a
higher advantage because of the leading and constantly growing that makes the
competitive rivalry weaker.
5.2.

4. MACRO ENVIRONMENTAL ANALYSIS OF

APPLE WATCH
DEMOGRAPHIC
Profound plunging into the demographic factors, we can see that age and pay
social gatherings can be considered as one of portion factors. The highlights
furnished with the iWatch has more accentuation on sound way of life and notice
of wellbeing schedules, it likewise goes about as an on the clock heart observing
gadget (Apple, 2015). The highlights typified inside the item will in general pull
in the more youthful to medium age range (16-40 years). The value demonstrated
would be relied upon to be 300 pounds or more (Suleman et.al, 2015). As
demonstrated by macrumors.com (2015), the cost of the item will just increment
to dramatically multiply its beginning rate with taking an increasingly costly
variation.
ECONOMIC
Obtaining power relies upon the World's financial conditions. As indicated by
recent years, joblessness rate is high in numerous nations which cause to
diminish the closeout of Apple items. Another reason was increment in oil costs
which causes expansion in world's economy. Because of these financial
components, obtaining intensity of individuals scaled down which contrarily
influenced the closeout of Apple items because of its more expensive rate.
However, at this point world's monetary conditions are showing signs of
improvement and friends has acquired itself remote monetary forms, so Apple
income has expanded in the worldwide market (Apple Inc. 2012).
The obtaining intensity of customers is straightforwardly corresponding to the
monetary conditions in the nation. (Jeynes, 2013). The perspectives should have
been considered here are the financing costs, expansion work level and future
Gross Domestic Product (GDP) per capita (Friesner, 2014).
As per the Bank of England.cp.uk report (2014) for economic conditions in UK,
the domestic demand has increased, however the global growth for the market
seems to have weakened. The inflation rate in UK fell to 1.2% in September
2014 which is all-time low in the previous 5 years which is offset of keeping the
Consumer price index (CPI) at benchmark inflation rate of 2%. The factors
leading to inflation rate fall encountered are cheap transportation cost, low price
range for game consoles, tablet and computers. The reduction in inflation rate
may cause the increase in interest rates by early 2015 (BBC, 2014)
In spite of the fact that the present situation appears to search useful for
purchasers with lower rate of expansion, the expansion in financing costs can
influence the clearance of Apple watch with its discharge to be propelled around
a similar time period.
NATURAL
Material Efficiency
Apple's ultracompact item and bundling plans come out on top in material
effectiveness. Decreasing the material impression of an item augments shipping
productivity. It likewise decreases vitality devoured amid creation and material
waste created toward the finish of the item's life. Apple Watch Series 4 (GPS)
cases are made of aluminum—a material exceptionally wanted by recyclers. The
diagram underneath subtleties the materials utilized in Apple Watch Series 4
(GPS)
Material Use for Apple Watch Series 4 (GPS)
44mm Aluminum Case with Sport Band
TECHNOLOGICAL
Apple because of its imaginative and innovatively shrewd driven items, it is
significant for the firm to comprehend the effect of mechanically forward items
on its buyers (Jeynes, 2013).
As indicated by Ballard (2014), an ongoing report on wearable innovation
demonstrates that buyers in UK are not staying aware of the pace and is failing to
meet expectations to embrace wearable innovation like Apple watch.
The study additionally said that just 27% of British individuals would utilize
wearable innovation, which is a long way behind as China had a high effect of
73%. Likewise, individuals in UK might want to utilize the wearable innovation
just on the off chance that it was given by the business.
Another review directed (Allan, 2014) recommends that UK would lose around 9
Billion pounds throughout the following year because of languid method
 for innovation use. According to confirm discovered, shoppers are bound to
utilize new innovation like Apple watch, it there is proper measure of
inspiration to utilize it, subsequently spotlight can be made on worldwide
organizations to look for the estimation of this item
POLITICAL
The government laws and guidelines of the nation in which the organization
intends to fabricate or exchange their item represents a political test to them
(Friesner, 2014). A significant part of this to consider is the administration
guidelines, charges, political solidness and business strategies. Be that as it may,
as Apple is a US organization, this has a gigantic favorable position as far as
setting up exchange concurrences with parcel nations just as worker's guilds
(Ukessays.com, 2015).
One challenge that Apple faces as far as working with in the computerized age is
the administration demands for data. Apples strategy is to be
straightforward that resides with the law, anyway Apple claims not to work
with government organizations to make an indirect access into its
administrations and items and that they will never do. (Apple, 2015). The
valuing of Apple items may change in the UK and may will in general go
up as the duty approach in UK for VAT would shoot up from 17.5% to 20%.
(Ukessays.com, 2015)
CULTURAL
The social-cultural factors incorporate everything to do with the social and social
impacts of individuals living in the UK. Albeit thought about emotional in nature
all together for gathering of information, a portion of the impacts are of learning,
memory, recognition, way of life and culture of customer (Friesner, 2014). Some
extra conduct can be of identified with religion, populace development rate and
media impact. Apple should remember the achievement of it new item dependent
on these elements. (Ukessay, 2015)
According to the BBC business investigation (2014), the UK economy is
becoming quickest among the creating countries. This gives us a feeling of the
buying power customers in UK, which can be viewed as great. As indicated by
Belfield et.al (2014), in spite of the fact that the present economy of individuals
in UK has balanced out, the neediness line list had dropped down with the
decrease in normal pay and the more youthful age thinks that it’s hard to keep up.
These exceedingly impacts the way of life of shoppers with their obtaining
choice and Apple watch can be thought of focusing on more youthful ages that
are increasingly well-off with innovation improvements.
In UK, English language is dominated with 90% of populace and 59% after
Christianity generally according to 2011 data. The training level in UK is high
too with 74 % of grown-ups accomplishing identicalness of secondary school
confirmation, which makes better shopper mindfulness and thus individuals will
in general settle on educated obtaining choices (business culture, 2015)

5. 4P MARKETING STRATEGY
 Apple’s Products (Product Mix)
Apple is well-known for its collection of technological products and services
which are updated and outgrown everyday to meet customers’ demand. This
element of marketing strategy allows customers to purchase and make various
buying decision . The product mix of Apple include:

- Breadth:

Mac
iPod
iPhone
iPad
Apple TV
Mac OS X
iOS
iCloud
Keynote
Apple Watch
- Line:
iMac
MacBook/Pro/Air
iPad 2/3/Air/Mini
iPod/Classic/Shuffle/Nano/Touch
iPhone 3G/3Gs/4/4S/5/5S/5C/6/6s/6+/6s+/7/7s/7+/7s+/8/8+
iOS
OX X
iWork
Depth:
iOS 2.3/3.0/4/5/6/7/8/9/10/11
iPhone 8gB/16gB/32gB/64gB/128gB/256gB
iPod 8gB/16gB/32gB/64gB
iPad 8gB/16gB/32gB
Of all the 4Ps elements, Products plays an important role in defining the brand and
capturing the brand’s value. The business gradually expands its product mix, not
only focusing on updating and releasing new version of existing products but also
creating extra new product and service lines. At present, customers can purchase
other products and service belong to Mac, Watch or TV category.
As for the Apple Watch, the product line for this specific item include:

Apple Watch Series 3

Apple Watch Series 4
Apple Watch Nike+
Apple Watch Hermès
Bands
Accessories

This category includes various of Apple Watch models with updated features
equipped on each products in order to replenish and vary customers’
decision on choosing what Apple watch product to purchase. Every
version of Apple watch contains equivalent features such as
communication, fitness, app usage and Miscellaneous yet possesses
different small details as to be recognizable. In diversifying its product
lines, the company has been successfully satisfies market demand, show
an improvement in revenues and profit, and indispensably spreads risk
in the technology business. In terms of risk, a more diverse product mix
lower the company’s dependence on just one or a few market segments.
This element of Apple’s marketing mix indicates that the brand
innovates new versions of one product, preferable iWatch to attract
more customers and improve its business stability.

Place/Distribution in McDonald’s Marketing Mix

This element of the marketing mix enumerates the venues or locations where
products are offered and where customers can access them. Apple’s retailers are
the most prominent places where the company’s products are distributed.
However, the business utilizes various places as part of this 4P variable.

After Apple’s product being manufactured and examined, they are widely
distributed within the US and all 24 countries where 506 its retail stores located,
including 272 in the United States and 234 elsewhere, since May 2001. This
quantity of distribution has not include certified local retail stores which
assembly increases the number of Apple’s retailers, such as The gioi Di dong,
Cellphones, etc. in Vietnam. Of all 506 Apple’s retail store, the number of stores
in China accounts for roughly 70%, which makes China the largest market of
Apple. As the company developing, Apple maintains its stable and rising
numbers of retailers all over the world yet rising number of customers and
buyers. This wide network of retailers generates most sales revenue for the
company.
·
Apple also acts as a an online retailer providing products on their website
www.apple.com. Furthermore, the business also grows out to other qualified
online platforms as Amazon, EBay, Shopee, Zalora, etc. have also been
authorized to distribute Apple’s goods. These virtual places are where customers
can access information about the company’s products and buy these products.
Customers who do not have access to one of the Apple’s distributor now share
equal opportunity with in-store buyers as they can purchase the identical product
without coming to an Apple store. This element of the marketing mix supports
McDonald’s corporate vision and mission statements, especially in serving more
customers around the world.
· Within a region, Apple stores and certified retailers are usually located in the
crowded, built-up area to draw the attention of various potential buyers,
especially those with higher income. Also, to generate customers’ eagerness
and create greater chances to be chosen, Apple stores and certified retailers
are often chosen to be surrounded by different “competitors” in the same
field, such as Samsung, Huawei, Oppo, Sony, etc.
McDonald’s Promotion (Promotional Mix)
In marketing, promotion is an important task to decide what tactics should be
used in order to communicate with potential customers yet boost brand
recognition and sales. By these tactics, Apple’s products have becoming one of
the most wanted brands:
Advertising: Apple has invested a large sum of money to promote its products,
particularly iWatch, through many advertising platforms such as television
advertisement, E-commerce advertising, print media (public billboards, panels,
posters, flyers), mobile advertisements in buses, trams, elevators, etc. By using
public appearance to make their product’s images widespread, many people are
impressed, recognized the product and supposed to take a look online or visit one
of the stores. Apple also exclusively hold exhibitions for every latest-launched
product for people to have a closer look, test and experience new features. By
that action, Apple creates trust and gains customers loyalty due to the
commitment of smooth-functioned product.
Direct marketing: Apple also uses technique “Word of mouth” on billboards,
YouTube, Twitter, Facebook, etc to promote iWatch due to the fact that “Word of
mouth” is an informal communication about the benefit of the and plays an
important role on satisfying customers. The sale staffs are one of the key factors
in the success of public relation and “Word of mouth”. This technique also
circulates on the internet and has the potential to be the most valuable asset to
boost Apple’s online sales. Occasionally, the company also uses direct marketing,
such as for corporate clientele, local governments, or community events and
parties.
Public relations: Nowadays, we can easily see a celebrity using iWatch or in a
show. This action is called Product placement, a way to promote from Apple’s
strategies. It will create a huge impact on customers’ opinion and behavior, make
them believe in the quality of iWatch and want to have the same one with their
idols, then boost Apple’s sales.
Promotions: Apple do not provide “sales off” frequently, however, there is still a
chance for customer to purchase a less expensive Apple’s product in particular
occasions within a year, for example Black Friday, Thanksgiving, Christmas, etc.
Beside these unseen tactics, Apple also has visible approaches in order to gain
customers’ attention. Apple’s packaging has always been considered as one of
most classy and professional designs, bringing customers the feeling of absolute
satisfaction after purchasing. The modern yet stabilized design at the same time
keeps the loyal customer and attract new customers.Apple’s store and certified
retailers always appear in Spacious spaces, vivid lights, products being arranged
purposefully also the factor helps Apple gaining its revenue.
McDonald’s Prices and Pricing Strategies
Apple is a premium electronic brand that does not attempt to contend with its
rivals' valuing. Apple utilizes value skimming on its items, though the underlying
cost of the items gets decreased after some time. All items are premium valued
which is functioning admirably for Apple, as they are moderate reasonable.

The item's life cycle influences the estimating of later items, as there is another
form/age of every item discharged each year. As those items age, they become
less famous, consequently the interest reduces, the costs diminish and the
refreshed variants discharged.

Following a couple of long periods of being discharged, the new items may
lessen their costs by $50-100, contingent upon how much the underlying cost
were, and on the dimension of interest for that specific item.

6. CONCLUSION

REFERENCE
Academia.edu, Arijit Kumar Saha, Marketing Strategy of Apple: Apple’s
Marketing Strategy, 6-7. Retrieved from
https://www.academia.edu/6382737/Marketing-Strategy-of-Apple

APPLE.COM
Apple Mapped: Countries with official Apple websites, stores, and retail stores
https://appleappraisal.wordpress.com/2010/02/23/apple-mapped/

Apple Watch Series 4 GPS. (2018), Environment Report. Retrieved from

https://www.apple.com/environment/pdf/products/watch/Apple_Watch_Series4_
GPS_PER_sept2018.pdf
BBC News, (2014). UK inflation rate at five-year low. Retrieved from
http://www.bbc.co.uk/news/business-29611742
Business Culture, (2015). The UK. Retrieved from
http://businessculture.org/northern-europe/uk-business-culture/
Cliffton Pereira. (2015), Marketing And Value Chain: Apple Watch (Msc Value
Chain Management, University of Kent). Retrieved from
https://www.academia.edu/11141073/Marketing-_Analysis_of_Apple_Watch
Darren Allan, (2014). UK economy stands to lose £9bn due to the sluggish pace
of smart technology adoption | ITProPortal.com. Retrieved from
http://www.itproportal.com/2014/10/24/uk-economy-stands-to-lose-9bn-due-to-
the-sluggish-pace-of-smart-technology-adoption/
MacRumors Staff (2019). Apple Stores
Keep track of Apple's retail stores worldwide. Retrieved from
https://www.macrumors.com/roundup/apple-retail-stores/
Martin (2014). Understanding the Marketing Mix Concept - 4Ps. Retrieved from
https://www.cleverism.com/understanding-marketing-mix-concept-4ps/
Roger Jeynes (2013). The Complete (External and Internal) Analysis of
Apple.Inc and its SWOT Analysis. Retrieved from
http://www.academia.edu/7103572/The_Complete_External_and_Internal_Analy
sis_of_Apple.Inc_and_its_SWOT_Analysis
Tim Friesner, (2014). PEST Analysis - Marketing Teacher. Retrieved from
http://www.marketingteacher.com/pest-analysis/
Ukessays.com, (2015). Internal and external business environment of Apple.
Retrieved from
http://www.ukessays.com/essays/marketing/internal-and-external-business-
environment-of-apple-marketing-essay.php
Wikipedia, Apple Inc.. Retrievied from https://en.wikipedia.org/wiki/Apple_Inc.
DUSITA A, Literature Review: Apple Inc. Retrieved from
http://betterbests.weebly.com/literature-review.html