Strategy Positioning Paper Essay

Custom Student Mr. Teacher ENG 1001-04 30 May 2016

Strategy Positioning Paper

Apple is one of the most innovative companies that were ever created to surface our technology world. Founder created it Steve Jobs and two others in 1976. Apple is an “American multinational corporation headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, online services, and personal computers” (“Apple Inc.”, 2014).Apple is most known for its hardware products such as the Mac computer, IPod, IPad, and the infamous IPhone smart phones, just to name a few. The sleek design of all these products mentioned, is one of the major components that separates this line from its competitors. Having a collection of Apple products is in very high demand across the globe, due to its popularity, speed, and overall technology performance. It has over 400 retail stores across fourteen countries.

It does not surprise Apple customers when they develop something great and market it to the world seeing that Apple has estimated revenue of $170 billion. Most Apple consumers are ready for something new to be launched, just so they can get their fingers on it. Apple, Inc. is introducing a new product called the iFlash. It is a portable flash drive combined with a charger, having a flash drive on one end and a charger on the other end. The iFlash comes in varies GB of 8, 16, and 32, with its compatibility with all Apple products. It also comes with a docking station that it connects to so that it can charge itself. It gives you the luxury of being able to charge your phone on the go without worry about finding an outlet to plug it into.

The iFlash lets you have the freedom to charge your phone, without being connected to a power source, which is great for this “on the go generation”. The iFlash is also Wi-Fi capable which means that whenever you have Wi-Fi capability you can upload and sync your phone with iTunes and iCloud as well as perform any updates that are needed to any applications or to your operating system. The built in flash drive allows you to save information from your phone to the flash drive if needed or you can use it as a portable flash drive on its own. A SWOT analysis of the organization and offering

Recognition of Brand

Many people are around one area, could leave the Wi-Fi in slow connection Opens opportunities to downloading to a computer without the use of a cord attached to it Workers being exposed to Benzene and N-Hexane

The table shows that iFlash could be an advantage or disadvantage with the company. IFlash gives this now on the go generation the opportunity to get things done and stay updated without the fear of finding an outlet to plug into. Many companies that work with electronics have to worry about workers being exposed to Benzene and N-Hexane. Both of them could be critical, however, Apple practices going green. Apple likes to use some of their older projects to help advance the company and gain additional knowledge about the iFlash. The iFlash is yet another fantastic technological creation from Apple that will give its users the benefit of saving data, including pictures and videos without having to plug into or log onto a computer at all. At the same time, the iFlash will allow the charging of any Apple device without having to plug into an electrical outlet. Both of these functions are wonderful alone but together they make for an extremely useful device. According to Porter’s five competitive forces, however there may be a significant amount of competition almost immediately.

Because of the fact that mobile device industry is so profitable there will surely be a number of threats of new entrants as has been the case for almost all advancements in the industry. One thing that Apple does have however is an extremely loyal customer base, which will certainly help with the success of the launch of the product. Apple customers are so loyal in fact, that some actually camp out in front of stores in anticipation of the release of a new product, in particular the iPhone. The threat of substitute products or services is also very prevalent and in fact to some degree already available. There are both portable chargers and flash drives already available however not as a combination, which is where our product is different from any other. There is also the factor of bargaining powers, both of the customers as well as the suppliers.

Apple has a substantial production and distribution operation however, whenever a new device is introduced there is inevitably a backlog because of the popularity of the product. This in essence would create a bargaining power for the customer however since Apple is so popular and established it does not. This might however create a bargaining power for the suppliers because they know that the demand for the product is huge and they could possibly play on that to charge more to produce the device. The competitive rivalry is alive and well in this industry perhaps more than any other industry today.

Market Segmentation Base

Apple should segment the market on the following basis. Accessible: The selected segments should be reachable in terms of communication or distribution channels. Identifiable: The market segments should have differentiable measures that are easy to identify while segmenting them. Durable: The segments should be stable enough to manage changes in the cost of product offerings (McDonald, 2012). Substantial: The market segments should be large enough to justify the use of resources for targeting them. Unique Needs: The segments should be able to respond to marketing mix differences to justify separate offerings. By using all these variables, demographic segmentation strategy will be used to segment the target market. It will also cover age, occupation, income, attitude, buying pattern etc.

Target Market

Because our product will be used with Apple computer, iPad, iPod, and iPhone and is sold in our Apple store, our market can potentially be anyone with an Apple computer, iPod touch or an iPhone. Apple has sold an estimated 33 million total iPhones and 13 million iPod touches, and 14.1 million IPad. This means the market consists potentially of about 60 million Apple. Specifically, we are going after two target markets. The first market will be teenager/college students, ages 16 and above. This market is interested in socializing, music, gaming, recording school notes, and being able to have them at any time. What we can offer them is a device that will be convenient in use and allow quick availability of content for the student. We are providing them the flexibility to have their products and apps available at all time. The other market we are going after is the business peoples. This person is primarily male or female from the age of21-55.

This market is interested in being able to transfer their apps, music, or reports from one device to the next. This device allows business people to finish work efficiently and securely on multiple devices. In addition, the businessperson can upload or download material at will. Carrying these small devices make moving data, software and material from one device to next much easier. This product provides the average consumer the resources to move, data, software music, and apps from one product to the next. The reality of the target market is going to be anyone with an apple iPhone or iPod or those who are thinking of getting an apple product.

The main audience is going to be teens, young adults, college age, and adults because they are the main audience for the apple products. “Apple products are also useful to young children and kids. The reason for this is that devices such as iPods and iPads are easy to use due to their touch screen quality, which is good for children. Parents can download learning game apps on Apple devices to teach young children and kids.” This product is can be used to charge two to four apple products at the same time so it will save ample time in charging products.

Emotional and Logical Driver

The popularity of our devices link to a device that allow them all to talk and interlink will be quickly becomes a great seller for Apple. We will also target the need for a device that allows business people and student to have accessibility to their data at any location and at any time. Logically, this device will make business and studying much easier. The driving force for this product will be need, available, and convenient. “Adults are also one of Apple Inc.’s target markets. IPhone’s are useful to adults for their everyday needs such as phone calls, map directions, internet connection, documents, and cameras. Carrying these small devices makes adults lives much easier for communicating daily.” Apple products are used by people of all ages for just about anything you can think of from watching a moving to doing business. Many students use their iPhone to do homework (myself included) because it is much easier then carrying around a laptop all day. The tablet is a common item among students of all ages because it is smaller than a laptop but is capable of doing the same thing a computer can.

“Teenagers are considered one of Apple Inc.’s target markets. Teenagers use iPods for many reasons. Some of these reasons are to socialize with friends, listen to music, and go on Facebook, MSN, twitter etc. There are also many gaming apps that appeal to them. IPods have become quite a trend with teenagers” (“Apple Inc.’s Target Market”). Teenagers live on their apple products, without them they would not know what to do with themselves. Apple has the appeal to the teenage population with all their products. Adults are also one of Apple’s target markets due to the convenience of using it helpful tools such as map direction, internet connection, receiving and sending documents, and the camera. Carrying these small devices makes adults lives much easier for communicating daily.” “Business People are very intrigued by Apple products. All Apple devices (iPhone’s, iPad’s, MacBook’s etc.) have a business quality that is very useful. These devices are used to finish work efficiently and to communicate with clients easily. In addition, sending documents is easy and organized” (“Apple Inc.’s Target Market”).

Apple products are used by people of all ages for just about anything you can think of from watching a moving to doing business. Many students use their iPhone to do homework (myself included) because it is much easier then carrying around a laptop all day. The tablet is a common item among students of all ages because it is smaller than a laptop but is capable of doing the same thing a computer can. Apple has implemented the strategies of push and pull in order to reach their target market. Because of push strategy, the product was placed in front of the consumer. By means of advertising as well as making sure, the customer is mindful of their new product the iFlash, which are a charger on one side and a flash drive on other. However, this approach works extremely well for low price product and drive investment product.

There are several ways Apple Inc. can implement the push strategy in order to enhance knowledge of their new product the iFlash. Operating the market to reassure the request of the retailer, promoting the iFlash face-to-face or display area, Apple Inc. can reassure other retailers to stock their product. Although, at times companies must cooperate with retailer to stock an individual product since retailers does not have much space. Nevertheless, want to stock products that will sell, well-organized supply chain allowing retailer supply, packaging design to encourage the purchase, and point of sale displays (Marketing Made Simple.Com). In the meantime push strategy also work best for wholesalers, suppliers inventors and others that by this time has already established a connection with operators.

Then there is pull strategy, which Apple Inc. can use to increase demand that encourages customers to pursue an individual product aggressively the iFlash. However, it is intended mainly for the end customers. Nevertheless, a well built and able to be seen brand is required to make certain that the pull strategy is a success. Although, there are many ways a company can apply pull strategy to endorse their brand such as creating advertising strategies that involve the mass media promotion of a product. Customer relationship management that ensures current consumers is mindful of an innovative product that will fill an individual requirement, referral, and sale promotions and discounts.

By exercising, those policies drive the demand for the iFlash product. However, because of the demand retailer are pushed to pursue the product as well as to stock on the shelves in their stores. Meanwhile, Apple productively implements the pull strategies to introduce their products such as iPhone, iPads, iPods and their newest product the iFlash. However, several companies are willing to apply a mixture of push and pull strategies in order to have a productively market product.

The strategies that were provided above explain the needs that drive purchase in our current company, which is Apple Inc. It also explains how to encourage retailers to promote its product within their stores. However, it also shows the drive to get customer to purchase iFlash, which is a useful product, it help if your iPhone, iPad, iPod, or Apple laptop has to be charge. For an instant, let us say that one has a meeting and the information that is require located on that hard drive, which can be helpful within that section. However, push and pull strategy help companies to push its product such as place, price, and promote to have a successful product as well as loyal customers. The industry category that Apple falls under would be that of the technological device and applications. This is one of, if not the fastest growing and most competitive industry categories today. Technology is advancing at such a staggering rate that it is often said that once one purchases a new device such as an iPhone or iPad it will soon be out of date because the next model will be available in the near future.

That should not detour a person from purchasing the product however, just know that if you want the newest and best model you will have to continuously upgrade, which is quickly becoming the norm. This is also in fact how Apple solves the target’s needs, because the reason the advancements and next generation models are developed so rapidly is because both the developers and consumers recognize new options that could be made available or improved. Even when only minimal improvements or new options are recognized, a new model with those options included is developed and distributed virtually always with extremely successful sales. IFlash’s main competition would be Samsung being that they would try to duplicate the same technology as iFlash. Another competitor would be Energizer or any other type of battery maker. However, they would be unsuccessful in the industry because constantly buying batteries to maintain a charge on the devices can be expensive and inconvenient.

IFlash would be different from other competitors because while they still struggle with wires bending, breaking and being lost, the iFlash USB is a portable device that is conveniently stored with a person’s portable device for protection. What makes your organization different from its competition? When it comes to competition, Apple Inc. is truly in its own category. Apple does not just sell devices; it sells online services as well. You have the online Apple store to purchase the latest products, ITunes for media browsing, Safari web browser, and IOS operating system. Apple also has its own retail store that touches 14 countries.

This store is not your average retail store, its high tech design and Genius bar to help customer with any technical support. This store also provides presentations and workshops to train the public on new products. Having something so beneficial for the public to utilize definitely sets them apart from its competition. Apple as a company has proven its relevancy in today’s market. Its products are in very high demand, being the largest “Apple is the largest publicly traded corporation in the world by market capitalization, with an estimated market capitalization of $446 billion by January 2014” (“Apple Inc.”, 2014). Product, Pricing, and Channels


Apple Inc. incorporated in 1977. Their business model has been design, production, and promotion of personal computers, messaging and communication devices, mobile media, laptops and other portable digital equipment. The company also produces a wide range of associated software applications, secondary merchandise, and services, the most well-known among these: iPhone, IPod, iPad, Mac Book, IOS and OSX systems. Apple recently purchased a seed company from Silicon Valley that focuses on I-Flash Charger. A detailed description of the features of your product or service including how it solves the needs of your target market Apple, Inc. has introduced a new product called the iFlash. It is a portable flash drive combined with a charger, designed for people who need to multi task on a daily basis. Having a flash drive on one end and a charger on the other end, has its simplicity and over all convenience. . The iFlash comes in varies GB of 8, 16, and 32, with its compatibility with all Apple products. It also comes with a docking station that it connects to so that it can charge itself. It gives the average person on the go, the luxury of being able to charge your phone without worrying about finding an outlet to plug it into.

This iFlash lets you have the freedom to charge your phone, without being connected to a power source, which is great for this fast-paced generation. The iFlash is also Wi-Fi capable which means that whenever you have Wi-Fi capability you can upload and sync your phone with iTunes and iCloud as well as perform any updates that are needed to any applications or to your operating system. The built in flash drive allows you to save information from your phone to the flash drive if needed or you can use it as a portable flash drive on its own, and save work from a desktop computer or laptop. This new product was created with much thought to make your everyday task that much easier. A description of how marketing efforts will change with each phase in the product life cycle Since a very well established firm such as Apple is introducing the iFlash, it will have a great chance for very successful profit margins.

The introduction itself is expected to be very successful as with many other Apple products introduction where in many cases people actually camp out hours, even days before the release. The lines at Apple stores when a new product or new version of a popular is being released are always extremely long but the consumers do not care, or rather, they do not let that stop them from wanting to be one of the first to own the hot new Apple product. That being the case, during the marketing introduction phase of the iFlash’s life cycle the marketing strategy will be to have ads on T.V. during popular shows, as well as in printed publications that appeal to a tech savvy and in that case maybe younger consumer group.

During the market growth phase we believe the iFlash will have shown how wonderfully convenient it is and is necessary have. Therefore the product will then be market to a much wider range of a consumer group and ads will be place in other types of publications, and ads on T.V. and radio will be during different times of the day as well as during different programs and on different stations to appeal to that wider demographic. “In the market growth stage, industry sales grow fast—but industry profits rise and then start falling. The innovator begins to make big profits as more and more customers buy. Nevertheless, competitors see the opportunity and enter the market (Perreault, Cannon, & McCarthy, 2014). That being the case we expect there to be copycat products as there usually are so prices will have to be adjusted accordingly because some customers will not care if the product is of the same quality as the iFlash if it is half the price.

During the life cycle phases of market maturity and especially the sales decline phase, we will begin to develop a new generation of the iFlash with new capabilities and perhaps at a better initial market price. The packaging you will use for your product or service and how it will add value When it comes to packaging, it may appear as less important to some customer electronics companies. Meanwhile, Apple impressions on their packaging design are taken very seriously. The way Apple package its iFlash and other products, everyone who has opened an Apple product of any kind know that Apple’s packaging is well designed. It reflects a consideration in which many companies do not take the time distribute. Therefore, packaging for Apple is more than how products are placed securely inside its package. Apple’s packaging always looks clean and simple, and the iFlash packaging will be true for the brand. However, the art of the cover of the box is a small size box for the product, which would be inside. In other word, it would be the perfect marketing message, building expectation and making the product the center of attention.

Meanwhile, the only other graphic arts on the package are the Apple logo, and the name of the product would locate in the side of the box. Therefore, with the iFlash, being a flash drive on one side, however, the space on the iFlash runs from 8GB to 32GB, which is good for storing pictures and another source of information. The packaging Apple created for the iFlash is unique and made exactly to fit the iFlash, which is stored safely in its box. The appropriate pricing strategy for your product or service and the price you will set at launch The appropriate pricing strategy that will be used upon initial launch of the iFlash would be premium pricing. “Premium pricing strategy establishes a price higher than the competitors. It’s a strategy that can be effectively used when there is something unique about the product or when the product is first to market and the business has a distinct competitive advantage” (Richards, 2014). Since the iFlash will be the first to market, the competitive advantage would be at 100%. Until competition and knock-offs hit the market Apple can continue to charge premium pricing on the product.

The iFlash will be offered at four different price points based upon the USB flash drive memory capability. The 2GB will be launched at $19.99 and will be available in the same colors that are available for iPhones. The 8GB will be launched at $29.99, 16GB launched at $39.99, and the 32GB iFlash will be launched at $49.99. By offering these products at the available pricing, the consumer will notice that the prices are not that much different, and in some cases cheaper than just purchasing a USB flash drive it, and the iFlash performs an additional function! Even if competition comes into play, the iFlash is reasonably priced for an Apple product, and as with all other Apple products, customers have proven willing to pay for quality over price preference. Since the iFlash will be the only product of its type available as a dual feature product, the hype will be instant and hope that the buzz will remain as people flock to purchase the product. The ability to carry around your data and charge your phone at the same time without being tied to a wall outlet allows an iPhone user to be more on the go than before and have more capability to share information, save information, and transport their information.

The ability to take the iFlash anywhere and charge your phone from a portable location is a feature that has not yet been offered from any phone competitor to date. By setting, the pricing amounts at the above points Apple can decide to lower them if needed once competitors enter the market, however, based upon the features and quality of the product Apple believes this is a valid and acceptable pricing strategy, which has been set for initial launch. The channels of distribution you will use to sell your product along with a description of how each channel partner will add value “Apple’s stores are among the most successful brick-and-mortar shops around, generating more revenue per square foot than any other retailer in the United States, including Tiffany.” (Paczkowski)

Apple has over three hundred and seventy two store in the United States but the retail outlets sold 40% of the merchandise from Apple. Apple deals with all the phone outlets plus Best Buy, Wal-Mart, and Amazon. The main revenue the company makes are from the channels distribution centers, Amazon is a big seller because of the Internet availability, and they deliver quickly. The phone centers such as Sprint, Verizon, T-Mobile, AT&T, and Best Buy are hands on type of distribution center where you can look at the product in real time make it easy for Apple consumers to buy or look at the Apple product.

“Apple is using two major distribution channels to reach the end-user. Direct distribution: Apple established the retail stores in different regional location; it displays the product and provides the information and support to the end-user directly. Indirect distribution: Apple used the intermediary organization to Fragmenting bulk supplies of inventory, provides the financial services to retailers and Increase ease of customer purchase, beside, Apple minimize the transport costs by monitoring and operating a warehouse close to the intermediaries.” The supply chain for Apple products are a vast majority because Apple knows how and what the consumers want and the suppliers are more than happy to get the product for them. Apple products are a worldwide enterprise and the consumer continues to want more so Apple produces more and supplies the chain.

With the Apple Standard being adopted as the Industry standard and Apple becoming the major supplier of digital software to the Consumer Electronics industry Apple is in a unique position to leverage its design and innovation capabilities to make high quality digital products for this market. Apple can then use the differentiation strategy to command premium for its products based on the quality and features. They would then become a niche player in the upper and premium end of the digital products market.


The Apple iFlash has the potential to change the mobile device market. The method of presentation is going to determine how quickly this will happen. The competition will follow the product through its distribution channels, but this product will lead the market exclusively for a significant period. It is during this time that Apple will focus most on developing and perfect the unique functions of the product. The pricing strategy and distribution phases will extract maximum profitability. In the current world, everything has turned digital. Today, the use of iFlash has influenced considerable factors that have effectively enhanced storage and mobility. This has influenced a great challenge to the upcoming generation because of the new devices and the course outline they cover in their institutions. However, Apple Inc. created a suitable device that can meet all the need of the current generation. In general, the target market of the iFlash is the current and the upcoming generation.

Research shows that most youths are attracted to Apple products because their brains are intelligent, and they believe that this is the right device. The device can store information and link Apps to multiple devices. In addition, the iFlash has suitable features compared to other storage devices. This iFlash will be widely used because of its speed, compatibility and efficiency compared to other storage devices. Your promotional strategy for your product or service, including how you may use the following; Advertising, Public Relations, Digital Marketing, Sales Promotion, Direct Marketing, Event Marketing, Outdoor

The promotional strategy for the iFlash would be what is typical from Apple. Advertising is a key so there would be numerous clever televisions, radio and printed advertisements to inform the public of Apples new product the iFlash. Because of the fact that Apple already has very loyal following the advertisements would primarily focus on bringing new customers over to the Apple line of products but also to inform those that already own Apple products how beneficial it would be to own an iFlash.

Public relations would be handled in all Apple store locations as well as all other subcontractors that have agreements to sell Apple products. Obviously, Apple stores would have great promotional deals on the iFlash as well as all other Apple service providers that sell Apple products and services and we would offer promotional discounts all around for the purchase of an iFlash. Apple plan to take full advantage of social media to advertise the great benefits of owning an iFlash and will send digital messages to current customers. That already own an iPhone or iPad so they may see firsthand what a great product the iFlash is.

The iFlash will also be marketed at popular events such as sporting events and music concerts to allow the public to see how wonderful a product is and how it could help them. Both save the images and videos that they have taken on their iPhones as well as to insure that they have a full charge to take as many pictures and videos as they want without worrying about storage capacity. As we, all know our hand held devices are fantastic for capturing important or fun times in our lives but often times the capacity is limited because we have done so many times. without saving our images or videos to an external drive and when another moment that we want to capture occurs our device is unable to because the memory is full or your device has used its charge and not only can you not capture the occasion but you may not be able to call someone in case of an emergency. With an iFlash in your pocket, this will never happen again. The effect professional selling may have on your offering

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  • University/College: University of Arkansas System

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 30 May 2016

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