Essay, 4 pages (950 words)

Success of the apple new ipad marketing essay

Distribution strategies are a major key to success of the apple new iPad, which are maximizing sales revenue and profits margin. There are only a few selective retail shops in Australia which sell Apple products such as JB HIFI. Apple distributes its iPad to local telecommunication service provider such as Vodafone, Optus, and Telstra, to sell to its customers.

Apple Inc has chosen a hybrid distribution channel innovating its own online store, Physical store and retail point of the local telecommunication services provider.

One of the major distribution channels of apple new Pad is owns network of retail stores which gives major advantage of distribution of the iPad. It has 301 retail stores in ten major countries providing apple products and services to increase its sales and area of distribution. Throughout the indirect distribution channels, it has 3000 retailers and 320 large distributors providing apple product and services all over the world. For Example apple penetrated the European market by using a wide range of retailers. The company to-day wishes to reduce the amount of retailers and instead focus on only Apple Centers.

The second major distribution channel is apple new iPad using direct channel by online store serving customer 24/7 to 36 countries where apples products and services sold Apple is expanding and improving its distribution capabilities by opening its own retail stores in key cities around the world in up-market, quality shopping venues.

The very successful Apple retail stores give prospective customers direct experience of Apple’s brand values.

Target Market and Market segmentation

Apple ipad segments its target market in three different areas such as demographic, geographic and psychographic

Demographic: in terms of demographic market sagementation the new ipad is targeting the Generation X and Y cohort. Generation X represents mostly working people and they most have already established successful career. This generation group’s income has medium and high level and steady and enabling them to afford expensive and sophisticated apple’s ipad devices and would be definitely satisfied by the high- technology apple products.

Generation Y would represent mostly young adults and teenager studying at high school and university. This generation group are becoming more and more modernist. The emerging of new technology, generation Y has attracted and interested with new technology and willing to by this apple’s advanced technology product such as the new ipad in present and future. This young adults are usually not yet married and do not have to supported any family. Therefore they will have a lot of money to spend on these sophisticated products.

Geographic: Apple is segment the market and targeting on consumers’ basis of living in metropolitan and urban city areas rather than those people living in rural area. . This people usually have high income, fixed, steady, therefore they have a higher purchasing power.

Psychographic: Apple ipad targets consumer with the needs & wants for entertainment. Ipad is built on to be unlimited gadget, which is portable entertainment tablet. With the increase in consumers who are constantly in need of entertainment, the new iPad’s versatile product features, functions and applications are their best choice.

The target market of this new Ipad is expected class A market ranging from high school to university students, Professionals and Executives with higher storage capacity and speed. The class B target market of iPad is predictable for mass appeal children from pre-school to secondary students while aged people can also be targeted with same features but with lower storage capacity and speed.

The Few pillars apple identify the target market of new ipad. These are following



Stay connected

Age 25-54

Primarily Male

High salaries

Multi task

Corporate and professional

Goal oriented

Age 18-25

Mixed Gender

Budgeting skills



Age 20-40

Primarily Female

Secondary Education

Tech Savvy

Brand Positioning Strategy

Apple new iPad indeed demonstrates a variety of positioning strategies based on the target audience. The apple new iPad, has aimed at the market gap between Smartphone’s and notebook PCs. The 9. 7″ size of the product is between these two product types, and computing power has also been designed so as to fall in between these two products.

Apple use the positioning strategy distinguished a brand or product by specifying who might use it. By defining product user, Apple positions the new iPad as a versatile, convenient, value added devices for professionals and personal use. This style of brand positioning differentiates itself from competitors in order to meet the needs of their target customers. The target customers of the iPad are business professionals and students. The technology that Apple brings is fast paced and competitors find it hard to keep up. The brand is known for quality at an understanding price.

Maintaining the brilliant strategy that the iPad has will continue to make this product successful. According to an article written by Brian Heater, the new iPad sold over three million units in the first four days on the market. Apple took 74% of the tablet market in first quarter of 2012. Dominating the market, Apple continues to haven impressive positioning strategy.

http://blogs. computerworld. com/sites/default/themes/cw_blogs/cache/files/u175/101115. jpg

http://photos. appleinsider. com/changewave-120605-1. jpg

ChangeWave 2

Dailymail. com. uk (2012), Is the Apple getting a litte brother? Apple to launch a smaller and cheaper machine that could be on shelves on autumn, [online] Available at:   http://www. dailymail. co. uk/sciencetech/article-2169079/iPad-Mini-Apple-launch-smaller-cheaper-machine-shelves-autumn. html [Accessed: 29 September 2012]

Store. apple. com (2012), Apple Store, [online] Available at: http://store. apple. com/us/buy/home/shop_ipad/family/ipad/new_ipad [Accessed: 26 September 2012]

Swenson C. (1990), Selling to a Segmented Market: The Lifestyle Approach, New York, Quorum Books. p 1

T3. com (2012), New Ipad, mini release, date, price, specs, news and rumours. [online] Available at: http://www. t3. com/news/apple-ipad-mini-rumours/price [Accessed: 05 October 2012

Ryan Faas (2012) Positioning Apple’s new iPad 3 as a channel play What does the new iPad mean to business? http://www. mec-security. com/index. php/en/it-news/94-positioning-apples-new-ipad-3-as-a-channel-play Accessed: 23 September 2012]

Market segmentation and product positioning of apple new ipad mini http://ivythesis. typepad. com/term_paper_topics/2012/07/market-segmentation-and-product-positioning-of-apple-new-ipad-mini. html [online] Accessed: 05 October 2012

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