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Team E, 2016
Strategy and Positioning Analysis: Apple’s iPhone 7Likely responsesSales will go up once releasedSales did not go up, not as successful as planned. Will be purchased, but will likely not grow sales from last model.Target Market SegmentsDemographic:Demographicsegmentation means identifying markets based on several shared traits,including age, race, gender, marital status, income, education and occupation. Thus, the phrase “ademographic” refers to amarketsegment with common traits. Although Apple is considered apremium brand and many products come with a premium price tag, teens are considering one ofthe primary Apple target market demographics. This is because teens are attracted to the value ofan iPod and this translates into wanting iPhones, Macs, and other products later on in life(Gaille, 2015). A majority of Apple’s target demographics admit that their loyalty is blind to thebrand. Only about half of iPhone users say they’re impressed with their phone. Windows phonesactually outsell the iPhone in two dozen countries (Gaille, 2015). Who Are the Best Customers for Apple?54% of consumers who purchase an iPhone say that their last phone was also aniPhone (Gaille, 2015). Team E, 2016
Strategy and Positioning Analysis: Apple’s iPhone 71 in 4 people say that they’ve purchased Apple products because their friends also hadan Apple product (Gaille, 2015). For people who have purchased multiple Apple products in the past five years, lessthan 30% say that the iPhone is the best phone on the market today (Gaille, 2015). Just 0.3% of people in a recent survey stated that the interface created by Apple is thereason why they prefer the brand’s products (Gaille, 2015). The average household income for Mac owners is $98,500 (Gaille, 2015). 2 out of every 5 Mac owners is younger than 34 (Gaille, 2015). Apple is a premium brand that is associated with a premium income level. It is a brandthat everyone may want, but not everyone can afford. For this reason, the best customers forApple tend to be younger and wealthier, so Millennials tend to be the next preferred targeteddemographic after teenagers. Millennials are hooked into technology like no other generation,exploit the benefits Apple can provide, and this leads to more wealth for them and more sales forApple (Gaille, 2015). PsychographicApple has a branding strategy that focuses on the emotions. The Apple brandpersonality is about lifestyle; imagination; liberty regained; innovation; passion; hopes, dreamsand aspirations; and power-to-the-people through technology. The Apple brand personality isalso about simplicity and the removal of complexity from people’s lives; people-driven productTeam E, 2016
Strategy and Positioning Analysis: Apple’s iPhone 7design; and about being a really humanistic company with a heartfelt connection withitscustomers. The Apple brand is not just intimate with its customers, it is loved, and there is areal sense of community among users of its main product lines.