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Apple Marketing Strategy
Apple owes its overwhelming success to the
smart iPod + iTunes product combination, a combination
of a great hardware piece with great style,
great software, great performance, user friendly
interface, with a great e-business service.
The iPod + iTunes halo effect and new great
Mac computers and Mac OS software did the rest
in increasing Apple revenue stream.
In the last 5 years the Apple share value increased
25 times, from $7.5 to $180 per share. At july
2008 prices Apple stock market capitalization
is $160 billion.
But even the best companies with the best products
have bottleneck factors which often avoid full
exploitation of the opportunities.
The Apple iPod.
Few people are aware - and few market analysts
too - that for the first 3 years the iPod was
an absolute flop. The iPod was launched in october
2001, and between 2001 and 2004 iPod sales were
between 100-200 thousand units per quarter,
very far from today's 10-20 million units per
quarter, and the iPod sales were not even covering
the product research & development costs.
Then, in June-Aug 2004 something happened, and
iPod sales began to grow strongly, quarter after
quarter. Today, we all know where the iPod stands,
and what a remarkable success it is.
The iPod made the fortune of Apple, and it stands
out as the major turning point in the company
growth.
Few people know that the iPod + iTunes business
idea was not conceived inside Apple, but was
proposed to Apple by an outside source, a music
lover and Engineer named Tony Fadell.
More on Tony Fadell and on the iPod marketing
on iPod
Marketing Strategy
The iPod marks another outstanding result in
marketing:
the annihilation of competitors. To know more
see the analysis on
The
iPod competitors
It should be noted that, since the second generation
of iPods in 2002, the iPods were made compatible
not only with the Mac operating systems but
with Microsoft Windows operating systems as
well.
We should ask ourselves (and to Steve Jobs):
how many iPods would have been sold if the iPods
would had been compatible only with Mac operating
systems?
Where
the iPod is manufactured and assembled
The Apple iPhone.
The pipeline of new products which came out
from Apple in the last years is impressive,
and overwhelming. In 2007, with the successful
launch of the iPhone, Apple has marked another
milestone in its development and growth.
And moreover, the iPhone enters a market - the
market of mobile phones - a market which is
mature, and saturated. Nonetheless, Apple has
been able to develop a revolutionary product,
and to change the paradigm in the mobile phone
market.
The iPhone is 5 years ahead of all its competitors.
A wonderful product, amazing user interface,
great design. It is not only a mobile phone,
it is a product between a mobile phone and a
laptop computer. Even calling it a smartphone
is not enough.
And on July 11, 2008 Apple has launched the
second generation iPhone, the iPhone 3G. More
on the iPhone on iPhone
Marketing Strategy
The iPhone
3G Price in Europe
Apple did great. no doubt. However Apple has
done some serious mistakes.
The most serious mistakes Apple has done concern
marketing and distribution strategies in Europe.
Apple has overlooked the European markets, and
missing big numbers in unexploited sales. With
better marketing strategy, better communication
and distribution, Apple could have made 300%
more revenues in Europe in the last 4 years.
Apple
Marketing in Europe
We met with with Erik Stannow, Apple Vice President
of Marketing for Europe & EMEA. We have
been talking with Erik Stannow about the marketing
and distribution issues of Apple in the European
markets and we gave some valuable suggestions
to improve the Apple marketing strategy and
distribution in Europe.
Well, it seems that in Cupertino they don't
care so much about Europe.
Steve Jobs
If we talk about Apple success, about Apple
great products, we need to talk about Steve
Jobs. Steve Jobs has been and is the great mind
behind all this.
Steve Jobs is a genius, he is a magician, too.
He is the most skilled guy in introducing new
products - "... one more thing" -
the most skilled in presenting the key features,
and he is a great communicator.
Even more important, Steve Jobs has Vision.
Vision in the strategy, Vision in the product
development, Vision in the alliances.
Apple Communication
Apple communication is sober, intriguing, simple,
clear, minimalist and clever. And it has a style
of its own. Both in the tv ads, both in print
ads, both in the online communications. A lesson
to be learned by many companies in the world.
Well, of course when you have great products
it is much easier to entice the costumers, but
nevertheless doing it with style and cleverness
is a very good point. It boosts sales, but enhances
the brand value too.
The famous "I am a Mac, I am a PC"
tv ads are a milestone in communications. Smart,
simple, effective and humiliating (for Microsoft
...).
More on Apple Communication and on the Apple
Tv ads "I am a Mac I am a PC"
on the Apple
Communication page.
Update:
Google Chrome. The
New Browser From Google.
On September 2, 2008, Google launched its new
browser, named Google Chrome. Analysis on Google
Chrome at Google
Chrome Browser special page.
Google Chrome. The new Browser from Google.
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