Apple iPad 1st Generation 16GB Part Three: Environmental Scan and Segmentation/Targeting

Group 2 Ladorise Bedard-Webb, Mersadees Henry, Kevin Muvunyi, Thi Pham, Megan Steele, Whitney Wang

Key Points
Sales of iPads Globally Environmental Scan Demographic Segmentation Psychographic Segmentation

Targeting Strategy
Multi-Segment Strategy

Global Sales
Apples international sales:
61% of total net sales (2012) Mostly come from Europe, Japan and Asia-Pacific segment

Apple has made billions of dollars in revenue since the iPad

1st Generation was launched

Apples Top Markets

Three major segments:
Europe: European
40000 35000 30000 Revenue (in millions) 25000 20000 15000 10000

countries, Middle East, and Africa Japan Asia-Pacific: Australia and Asian countries
Total sales by region China: the fastest-growing

Europe
Japan Asia-Pacific

5000 0 2010 2011 2012

market

Figure 1: Apples Total Sales by Region (2010 2012)

Global Brand
An estimate of 62% of total iPad sales comes from

international markets
iPad is sold worldwide through Apples retail stores, online

stores, third-party cellular network carriers, wholesalers, and retailers

Environmental Scan
Social
Economic Technological Competitive Demographic

Significant Trends
Popularity of Apple
Expectations

Sales continuing to increase

(Form 10-K, 2011)

Economic Forces
Opportunity
Customer loyalty = raised prices (Strengths, Weaknesses, Threats: The SWOT Analysis, 2012, March 20)

Threat
Current economic status in America

Social Forces
Opportunity Societys concern about environment Apple is making products environmentally friendly
(Apple The Story Behind Apples Environmental Footprint) Figure 2: Apples Environmental Footprint

Threat Lack of products sold for business purposes

(Strengths, Weaknesses, Opportunities, Threats: The SWOT Analysis, 2012, March 20)

Competitive Forces
Opportunity
Patience Ability to wait for better (Understanding Apple SWOT Analysis, 2012, November 7)

Threat
Target on Apple Growing market for tablets

(Strengths, Weaknesses, Threats: The SWOT Analysis, 2012, March 20)

Technological Forces
Opportunity
Technology of iPad compatible with all generations (Apple Accessibility 2013)

Threats
Product issues and problems (Apple Quality Complaints)

Demographic Forces
Opportunity Generation Y
1979 1994 Contributes the most towards the sales increase of technological

products like the Apple iPad Tech savvy

Threat Baby Boomers

1946 1964

Hard to get this group to contribute to iPads sales

youngest members of the Baby Boomers were already in their 20s

when the first Apple product came out (Bobis, 2010).

Demographic Segmentation
Age
Income Gender

Family Life-cycle

Age Segmentation
Targeted to almost every

age
Mainly 25-34 year olds

iPad is for the normal

people of the world Steve Wozniak

School Work Entertainment

Figure 2: iPads Target Age Group

Income Segmentation
Middle/Upper income folks

who are willing to pay a bit more for a better user experience (Who are apples target).
high earners, making more

than $100,000 a year (Hughes, 2010).

Figure 3: iPad Purchasers Income

Gender Segmentation
Gender Neutral
However, maybe more for

guys
gaming device

For people who like to have

fun with technology (Who are apples target).

Family Life-Cycle Segmentation

Not targeted to any particular family life-cycle segment
Martial status Age Presence of a child or not

iPad is for everybody

Dad with a wife and kid Student attending school

Single parent

Psychographic Segmentation

Why Apple?
Convenient
Trendy Media buzz Natural user interface touch
A middle-age woman said she saw it as an opportunity for her

computer-averse mother to Web surf and e-read. The iPad's finger-centric point-and-flick interface (and conspicuous absence of a mouse and keyboard) offers a more intuitive way to use a computer, she said (Apple Store.).

Apples Target Market Strategy

Changed its marketing strategy
Concentrated targeting to Multi-segment targeting

Multi-Segment Targeting
Introduced new products
iPods iPhones iPads

iTunes App Stores

Multi-segment Strategy - Advantages

Gigabytes
More storage options

App Store
Over 700,000 apps Variety fits everyones needs and wands

iTunes
Music

Movies

Multi-segment Strategy - Disadvantages

Cost Production and Promotion Market Research Advertising
Commercials $3,500 - $5,000 for production Get a Mac Campaign A total of 67 commercials in North America alone Ran from 2006 2009

Over $100,000 a year

Cannibalization

Overall
Apples multi-segment strategy is helping the Industry financially Expectation of new products Brand loyalty Apples iPad 1st Generation is a widely recognized product in the world Revenues comes from more than 12 other countries in the Retail Segment There are a number of economic, social, competitive, technological, and

demographic forces that provide Apple with many opportunities, as well as threats. Apple needs to be aware of these opportunities and threats in order to maintain a successful company.

Demographically, Apple iPads are not gender or family life-cycle specific. As for age, it is for everybody however more towards 25-34 year olds. Income middle/upper class
Psychographically its the device that everybody wants for many reasons Everybody has one, easy to use, convenient and many more reasons!

References
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http://www.apple.com/accessibility/
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http://applequalitycomplaints.blogspot.com/
Apple Inc. (n.d.). Apple. Retrieved February 02, 2012, from

http://www.apple.com

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Strengths, Weaknesses, Opportunities, Threats: The SWOT Analysis.

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