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Marketing mix of Apple
iPad

Renzil D’cruz
http://RenzilDe.com/
http://about.me/renzilde
http://linkedin.com/in/renzilde
What Does Apple Do?
• Apple is an innovative company that manufactures,
markets, and sells many kinds of consumer
electronic devices.
• Apple has developed a series of computers, phones,
portable media players, software, and many other
products that have advanced technology from what
it used to be, as well as creating new needs from the
consumers.
iPad
• The iPad is a line of tablet computers
designed and marketed by Apple Inc.
• which runs Apple's iOS operating
system.
• The first iPad was released on April 3,
2010;
• fourth-generation iPad and iPad Mini,
were released on November 2, 2012.
Slogans use too attract audience
iPad
•

"The iPad is..." (2010) Used in the iPad TV ads.

•

"A magical and revolutionary device at an unbelievable price." (2010) Used on apple.com and Keynote to
promote and introduce the new iPad.

•

"Thinner. Lighter. Faster. Facetime. Smart Covers. 10 hour battery." (2011) Used on apple.com to promote
and introduce the iPad 2.

•

"Now with iOS 5 and iCloud, it just got even harder to put down." (2011) Used to promote iOS 5.

•

"Resolutionary" (2012) Used to promote the new iPad and its Retina Display.

•

"Every inch an iPad" (2012) Used for the iPad mini launch.

•

"Just as stunning. Twice as fast." (2012) Used to promote the 4th generation iPad.

iPad mini

•

"Every Inch a cool iPad." (2012) Used to introduce the iPad mini at the Keynote, online, and on TV

•

"There's less of it, but no less to it." (2012) Used to promote it on the website of Apple
How is the price of iPad determined?
• Determined by the interaction of supply and demand curve
• Intersection between these two curve provides us with the
equilibrium point

Renzil D’cruz
http://RenzilDe.com/
http://about.me/renzilde
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Cost of iPad
Type

iPad mini

iPad 2

iPad(with
Retina display)

Wifi

16GB $329
32GB $429
64GB $529

16GB $399

16GB $429
32GB $529
64GB $699
128GB $799

Wifi+Cellular

16GB $529
32GB $559
64GB $629

16GB $529

16GB $629
32GB $729
64GB $829
128GB $929

cost
Gradient on X-axis and Y-Axis
Gradient of demand curve

Gradient of Supply curve

• Many substitutes of iPad
available

• Easily stored
• Luxury good

• Large proportion of income
spent (around $SGD 600-900) • Easily transported
• Supply for iPad is price elastic
• Luxury good
• Demand for iPad is price
elastic

• Gradient – Gentle

• Gradient- Gentle
Sales of iPad

Renzil D’cruz
http://RenzilDe.com/
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Model
Status

iPad (1st
generation)
Discontinued

iPad 2

iPad (3rd
generation)

iPad (4th
generation)

iPad Mini

Available

Discontinued

Available

Available

16, 32, 64 GB:
October 23, 2012

Announcement date

January 27,
2010
March 2, 2011

March 7, 2012

128 GB: January
29, 2013
October 23, 2012
16, 32, 64 GB:
November 2,
2012

Release date

April 3, 2010

March 11,
2011

128 GB: February
March 16, 2012
5, 2013

November 2,
2012

32, 64 GB: March
7, 2012

Discontinued

March 2, 2011

16 GB: In
production

October 23, 2012

In production

In production
Timeline
Target Market
More Big Size Screen, More Powerful Sound!

• Music Market
•

Live Concert

•

Music Video

•

More extensive music
information available

 Through iTunes, its market can be grow able.
Renzil D’cruz
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http://about.me/renzilde
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Movies Market

Enough size watching & feeling

• Making new Video Market area
– DVD at home
– iPad@everyplace

 Also through iTunes, its market can be growable.
Natural VOD device

TV market
• There are many cases to use computer, which only displays
PPT or image Slideshow.
 Intuitive Interactive Touch demonstrating is available.
Newspaper/Magazine Market
• comportable size to read
• Easy to scrap & share
• NY times already made App
for iPad

 Paper Media can have more
subscriptors Through iPad
(more subscriptors, more money)

Natural size READING!
Book Market
• ePub baed iBooks market is opened.
• Through iTunes and iBooks App, anytime users can
download and use it.

• Kindle are in danger?
– Penguin, Macmillion, Simon & Shuster, HarperCollins, Hachette Book Group
are contracted. Will be more.
Game market

Dynamic & Powerful

• Need for speed, Nova for iPad is revealed.
– It’s real Realistic. People with cheered in the show.

 Like Nintendo DS, PSP,
Now PS3, XBOX are in danger.
What iPad users do?

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SWOT
Strengths:

• Products/Branding
• Marketing/Advertising
• Ease of Use and Quality
• Strong Brand Name For iPad
• Brand perception

• Innovation and Improvement
Weaknesses:
• Non-Compatibility

Opportunities:
• Stock Investments
• Jobs-Moving Up

• Trend

Threats:
• Copy-Cat Products/ Competitors
• Market Share-PC’s

• Price

• Too Broad

• Proprietary

• Low cost Product

Renzil D’cruz
http://RenzilDe.com/
http://about.me/renzilde
http://linkedin.com/in/renzilde
Renzil D’cruz
http://RenzilDe.com/
http://about.me/renzilde
http://linkedin.com/in/renzilde
Rank

Vendors

2011
Shipments

Market

2012

Market

2009/200

Share

Shipment

Share

8 Growth

1

HP

18,781

26.9%

16,218

24.7%

15.8%

2

Dell

17,099

24.5%

19,276

29.4%

-11.3%

3

Acer

7,983

11.4%

6,106

9.3%

30.7%

4

Apple

5,579

8%

5,158

7.9%

8.2%

5

Toshiba

5,379

7.7%

3,788

5.8%

42%

Renzil D’cruz
http://RenzilDe.com/
http://about.me/renzilde
http://linkedin.com/in/renzilde
Conclusion
In the short run..
• Decrease the price of iPad
• Marketing of iPad is now vital due to changes in consumer taste
• Establish the uniqueness of the iPad as compared to other goods
such as the Samsung Galaxy tab

• Increase demand which leads to increase in profits for producers
Renzil D’cruz
http://RenzilDe.com/
http://about.me/renzilde
http://linkedin.com/in/renzilde
In the long run…
• Aim of producers is to
maximise profit
• iPad market is reaching its
optimum
• Decline sets in after optimum
due to presence of better
products and changes in
consumer taste.
Renzil D’cruz
http://RenzilDe.com/
http://about.me/renzilde
http://linkedin.com/in/renzilde
Thank You.
• Questions ???

• Comments #@$%
• Concerns !!!
facebook.com/renzilde
twitter.com/renzilde
linkedin.com/in/renzilde

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Marketing mix of Apple iPad

  • 1. Marketing mix of Apple iPad Renzil D’cruz http://RenzilDe.com/ http://about.me/renzilde http://linkedin.com/in/renzilde
  • 2. What Does Apple Do? • Apple is an innovative company that manufactures, markets, and sells many kinds of consumer electronic devices. • Apple has developed a series of computers, phones, portable media players, software, and many other products that have advanced technology from what it used to be, as well as creating new needs from the consumers.
  • 3. iPad • The iPad is a line of tablet computers designed and marketed by Apple Inc. • which runs Apple's iOS operating system. • The first iPad was released on April 3, 2010; • fourth-generation iPad and iPad Mini, were released on November 2, 2012.
  • 4. Slogans use too attract audience iPad • "The iPad is..." (2010) Used in the iPad TV ads. • "A magical and revolutionary device at an unbelievable price." (2010) Used on apple.com and Keynote to promote and introduce the new iPad. • "Thinner. Lighter. Faster. Facetime. Smart Covers. 10 hour battery." (2011) Used on apple.com to promote and introduce the iPad 2. • "Now with iOS 5 and iCloud, it just got even harder to put down." (2011) Used to promote iOS 5. • "Resolutionary" (2012) Used to promote the new iPad and its Retina Display. • "Every inch an iPad" (2012) Used for the iPad mini launch. • "Just as stunning. Twice as fast." (2012) Used to promote the 4th generation iPad. iPad mini • "Every Inch a cool iPad." (2012) Used to introduce the iPad mini at the Keynote, online, and on TV • "There's less of it, but no less to it." (2012) Used to promote it on the website of Apple
  • 5. How is the price of iPad determined? • Determined by the interaction of supply and demand curve • Intersection between these two curve provides us with the equilibrium point Renzil D’cruz http://RenzilDe.com/ http://about.me/renzilde http://linkedin.com/in/renzilde
  • 6. Cost of iPad Type iPad mini iPad 2 iPad(with Retina display) Wifi 16GB $329 32GB $429 64GB $529 16GB $399 16GB $429 32GB $529 64GB $699 128GB $799 Wifi+Cellular 16GB $529 32GB $559 64GB $629 16GB $529 16GB $629 32GB $729 64GB $829 128GB $929 cost
  • 7. Gradient on X-axis and Y-Axis Gradient of demand curve Gradient of Supply curve • Many substitutes of iPad available • Easily stored • Luxury good • Large proportion of income spent (around $SGD 600-900) • Easily transported • Supply for iPad is price elastic • Luxury good • Demand for iPad is price elastic • Gradient – Gentle • Gradient- Gentle
  • 8. Sales of iPad Renzil D’cruz http://RenzilDe.com/ http://about.me/renzilde http://linkedin.com/in/renzilde
  • 9. Model Status iPad (1st generation) Discontinued iPad 2 iPad (3rd generation) iPad (4th generation) iPad Mini Available Discontinued Available Available 16, 32, 64 GB: October 23, 2012 Announcement date January 27, 2010 March 2, 2011 March 7, 2012 128 GB: January 29, 2013 October 23, 2012 16, 32, 64 GB: November 2, 2012 Release date April 3, 2010 March 11, 2011 128 GB: February March 16, 2012 5, 2013 November 2, 2012 32, 64 GB: March 7, 2012 Discontinued March 2, 2011 16 GB: In production October 23, 2012 In production In production
  • 11. Target Market More Big Size Screen, More Powerful Sound! • Music Market • Live Concert • Music Video • More extensive music information available  Through iTunes, its market can be grow able. Renzil D’cruz http://RenzilDe.com/ http://about.me/renzilde http://linkedin.com/in/renzilde
  • 12. Movies Market Enough size watching & feeling • Making new Video Market area – DVD at home – iPad@everyplace  Also through iTunes, its market can be growable.
  • 13. Natural VOD device TV market • There are many cases to use computer, which only displays PPT or image Slideshow.  Intuitive Interactive Touch demonstrating is available.
  • 14. Newspaper/Magazine Market • comportable size to read • Easy to scrap & share • NY times already made App for iPad  Paper Media can have more subscriptors Through iPad (more subscriptors, more money) Natural size READING!
  • 15. Book Market • ePub baed iBooks market is opened. • Through iTunes and iBooks App, anytime users can download and use it. • Kindle are in danger? – Penguin, Macmillion, Simon & Shuster, HarperCollins, Hachette Book Group are contracted. Will be more.
  • 16. Game market Dynamic & Powerful • Need for speed, Nova for iPad is revealed. – It’s real Realistic. People with cheered in the show.  Like Nintendo DS, PSP, Now PS3, XBOX are in danger.
  • 17. What iPad users do? Renzil D’cruz http://RenzilDe.com/ http://about.me/renzilde http://linkedin.com/in/renzilde
  • 18. SWOT Strengths: • Products/Branding • Marketing/Advertising • Ease of Use and Quality • Strong Brand Name For iPad • Brand perception • Innovation and Improvement Weaknesses: • Non-Compatibility Opportunities: • Stock Investments • Jobs-Moving Up • Trend Threats: • Copy-Cat Products/ Competitors • Market Share-PC’s • Price • Too Broad • Proprietary • Low cost Product Renzil D’cruz http://RenzilDe.com/ http://about.me/renzilde http://linkedin.com/in/renzilde
  • 21. Conclusion In the short run.. • Decrease the price of iPad • Marketing of iPad is now vital due to changes in consumer taste • Establish the uniqueness of the iPad as compared to other goods such as the Samsung Galaxy tab • Increase demand which leads to increase in profits for producers Renzil D’cruz http://RenzilDe.com/ http://about.me/renzilde http://linkedin.com/in/renzilde
  • 22. In the long run… • Aim of producers is to maximise profit • iPad market is reaching its optimum • Decline sets in after optimum due to presence of better products and changes in consumer taste. Renzil D’cruz http://RenzilDe.com/ http://about.me/renzilde http://linkedin.com/in/renzilde
  • 23. Thank You. • Questions ??? • Comments #@$% • Concerns !!! facebook.com/renzilde twitter.com/renzilde linkedin.com/in/renzilde