A Project Report On
Apple Inc. Prepared By 1. Navin Mistry 2. Milind Parmar 3. Darshil Shah
Roll No 135214 135213 135205
Index 1. Introduction 2. Major Cultural Factors 3. Effect of Culture & Subculture 4. Marketing Strategies 5. Reference Groups & Family Decision Making 6. Celebrity Endorsements 7. Degree of Involvement of Consumers & Marketing Tactics 8. Motivation theories of Maslow and McGuire 9. Central route and the Peripheral Route in the ELM Model. 10. J &D 11. Advertisements (Closure, figure and ground and grouping principles.) 12. Use of colours in the brands from personality and perception point of view. 13. Attitude change strategies used. 14. Examples of learning strategies used. 15. Brand Personality Concepts. 16. Decision making process normally followed and the factors influencing Purchases. 17. Role of family and children in the purchase process.
Index 1. Introduction 2. Major Cultural Factors 3. Effect of Culture & Subculture 4. Marketing Strategies 5. Reference Groups & Family Decision Making 6. Celebrity Endorsements 7. Degree of Involvement of Consumers & Marketing Tactics 8. Motivation theories of Maslow and McGuire 9. Central route and the Peripheral Route in the ELM Model. 10. J &D 11. Advertisements (Closure, figure and ground and grouping principles.) 12. Use of colours in the brands from personality and perception point of view. 13. Attitude change strategies used. 14. Examples of learning strategies used. 15. Brand Personality Concepts. 16. Decision making process normally followed and the factors influencing Purchases. 17. Role of family and children in the purchase process.
1. Introduction Apple Inc. is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system,the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software. As of August 2011, Apple is the largest company in the world by market capitalization and, therefore, also the most valuable technology company in the world, ahead of Microsoft.
Apple Inc.'s world corporate headquarters are located in the middle of Silicon Valley, at 1 Infinite Loop, Cupertino, California. This Apple campus has six buildings that total 850,000 square feet (79,000 m2) and was built in 1993 by Sobrato Development Cos. Time Line of Apple Products:
2. Major Cultural Factors Values, Ideas, Attitudes, Beliefs and Population which are the major factors affecting the consumers. Limited research on cultural factors related to US adoption and use of smart phones and mobile Internet has been completed. Those that have cite a number of factors specific to the US. Real-time gratification is relatively more important to US consumers, which can be gained through the value of entertainment applications in m-commerce. Thus, part of the success of iPhone can be attributed to its provision of real time gratification through entertainment applications such as games, etc. Another study showed perceived security (extent to which people believe the Internet is secure), perceived enjoyment (rewards derived through use of technology) and subjective norms (use of an innovation tied to one‟s social sta tus) were all found to be higher in the US. iPhone customers achieve personal enjoyment through the multitude of entertainment related applications available and perceived security in that all applications downloaded to iPhone have been approved by Apple, giving users that much-needed sense of security. Finally, subjective norms and social status are inherently part of iPhone user experience, with iPhone (much like the iPod) being seen as a status symbol. While culture varies by country and within countries, it is important for the iPhone to find cultur al „niches‟ that it could fill. These cultural niches have been filled for the most part through the applications and services provided, rather than the mobile devices, indicating that regardless of the hardware platform, cultural preferences can be met through software and content.
3. Effects of subcultures and social-class on Consumers' Behaviour Socio-cultural environment is becoming more and more significant in industrialized countries. Especially in the United States where diversity of nations work and live. Therefore, it is highly important to consider socio-cultural factors that might affect Apple company and, in consequence, the society itself. For example, each company has its slogan and colour of brand in marketing promotion and Apple also has its slogan which is “Thinking different” by what Apple shows that the motto is not easy to create because there should be considered such socio-cultural factors like faith, ethnicity, language and etc. In addition, population growth and population density has continually increased over the last ten years which mean that there is a big opportunity for Apple to attract more customers and diversify its products. However there should be made some analysis regarding the preferences of the customers due to the difference in faith, ethnicity, language and etc.
Moreover, rising education levels can also influence the company. The more society is aware of the product that is being promoted the less there will be a chance of buying low quality product. Firms may reduce the risk of gaining a bad “ethical” reputation by anticipating and adjusting for socio-cultural trends. For example nowadays people are aware of environmental issues and prefer to purchase goods that are being produced from recycled products or environmentally friendly materials. As to the Apple Company, it is promoting “green effort” campaign, meaning that the company is going to assemble products that contain fewer chemicals.
4. Marketing Strategy Used By Apple Inc.
The best way to market your product is to catching them young. Apple Inc is following the same model by doing several activities as mentioned below:
1.
Free Youth Programs
2. Free Trips for Teachers & Students
3. Apple Camp for Kids
4. College Night
5. One to One Learning on Purchase of MAC Book
Trainings Offered:
Personal Set up Facility
In the latest advertisement of Apple IPhone, they have targeted each & every segment. The Advertisement is full of attitudes & values to have the heavy impression on the consumers. Attitudes i.e. Logo, Brand Name, Consumer beliefs etc.
5. Reference Groups The products of Apple Inc fall under below mentioned reference groups in different aspects: Primary Groups:
In this group, consumer is mostly influenced cause of their similar interests, their friends serve a socialization needs. They provide companionship, security and opportunities to discuss the problem that one can‟t discuss with the family. Official Groups:
The best example is the colleagues and members of a club or association. The sheer amount of time that people spend at their jobs, provide ample opportunity for work groups to serve major influence on their consumption of products and services by those members. This groups are having high degree of influence.
Implicit Groups:
This are the groups whose affiliation is not formally defined, but they belong to same age, gender or educational background. They are sometimes called brand community. This operates on the community pressure to have a product which community have adopted to gain acceptance in community.
6. Celebrity Endorsement:
Since Apple Inc. has targeted almost all the segments of the market considering the demographic, geographic etc, they are not into the celebrity endorsement. This is because of the several reasons mentioned below:
1. Reputation of Celebrity may have adverse effect on band 2. Inconsistency in the professional popularity of celebrity. 3. Multi-Brand Endorsement done by celebrity. 4. Celebrities are endorsing a brand & using another one.
The Major Reason is the Image & Popularity of the celebrity is limited to several group of peoples. Some people may influenced by the product and some won‟t who are having disliking about the celebrity‟s image. This may lead to limited market which consists of peoples who are only influenced by celebrity only.
7. Degree of Involvement & Marketing Tactics Apple Inc.‟s Products are meant for limited decisi on making purchase. They are having high degree of involvement with the Product having Values & Importance.
Premium Customers Apple is having premium customers which choose to buy the premium product in the market attracted by style, fashion, and form. They are prepared to pay extra. Their demographic profile is different, and they are more affluent. This is a premium, sophisticated market that chooses high-end products and one that most marketers will want to tap. Usability There is some evidence that suggests that Apple tablets are easier to use and somehow more engaging. Easy WiFi connections may be part of the story, coupled with more apps, and a consistent app experience that encourages user engagement. If users spend more time on the device, and are using WiFi to surf recreationally on a big screen device while sipping a glass of wine on the couch in the evening, then purchases follow. Marketing Tactics
Quality is the most important aspect of any marketing campaign, since it all begins with the product or service being offered.
Without quality, no company can build the sort of stable momentum it needs to survive and grow. No matter what marketing brilliance Apple had employed, ultimately sub-par products would have done the company in eventually. Above all, some level of sophistication is key. This is essential in order to consistently beat the competition. For example, there is an unmistakable luxury that exists inside of Apple Stores. The products are interactively displayed so that users can touch and experience them, unlike in so many other stores. The beauty of it is that even the most simple products and services can give off an air of refinement. The staff is plentiful and accessible. Also, most of the stores offer free in-depth classes on how to use their products, adding to their allure. Doing this makes all of their products accessible even to novice users.
Consistent branding messages are another tactic employed by Apple.
Regardless of where an Apple product is purchased, it has the same level of quality. This puts forth a branding message of excellence that has attracted legions of loyal customers. Much like the dime store giant of days gone by, F.W. Woolworth, Apple set out to make their stores browse worthy. Each store is uniquely designed so that there is no doubt that people are in an Apple store. While there is nothing gratuitous about the design of Apple‟s products, the company has managed to make customers feel as though they are treating themselves to an elite product line that epitomizes a level of luxury like no other. They are packaged to be simplistically appealing, yet always do more than similar products. As a result, Apple customers feel special just for using their products. This is perhaps the most ingenious public relations strategy in retail marketing history.
Apple has sought to cultivate customer enthusiasm.
The basis for loyalty is enthusiasm. In order for customers to become loyal, they must be connected to the products and services they are using. Every savvy business marketer knows that it is the repeat customer who will sustain a business. Therefore, rather than spend so much time chasing after new customers, ensure that the existing ones are happy. Not only does this make the road to repeat business shorter, but the word of mouth advertising from satisfied customers is invaluable. When a company has fans camped out overnight in the rain for days just to be the first people to get new products, they have reached rock star level. By creating fans rather than just customers, a company is pretty much guaranteed a strong and loyal base. In today‟s competitive marketplace, this is essential for any business to survive.
8. Motivation Theories
Maslow’s Theory of Motivation
In the Maslow‟s Theory, Apple Inc. falls under two stages where product demand is created. The two stages are mentioned as below:
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Belonging & Love Needs Desire for love, affiliation & acceptance in the groups consumer is motivated to purchase a product.
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Esteem Needs Desire for superiority, self-respect & prestige. This needs relate to the individual‟s feelings of attaining certain status & accomplishment.
McGuire’s Theory of Motivation:
Apple Inc falls under below mentioned points in McGuire‟s Theory.
- Need for Self Expression Consumers are purchasing in order to built their self image which is in their perception.
- Need for Ego Defence Apple Inc. is such a brand which can fulfil such needs of this category of consumers.
- Need for Reinforcement To be rewarded for being so or having purchased Apple Inc‟s product need is generated.
- Need for Affiliation Affiliation is the need to develop mutually helpful and satisfying relationship with others. This is used by Apple Inc. Ex. In the Advertisement of Apple Iphone5, they have shown the features and tried to create affiliation vide showing the features which can be affiliated with the beautiful experiences & moments of life.
- Need for Assertion This need is there to enhance the self esteem of a person into the eyes of others. Apple is such a brand which serves the purpose of people having this kind of needs.
9. Advertisement which use the central route and the peripheral route in the ELM model.
Apple Inc. have advertised the Products with the both the routes in the ELM Model. Central Route:
Features are displayed & educating the customers towards the same as displayed below to motivate the customer to have purchase of a product.
Peripheral Route
Only cognitive attraction is intended to get with different ads having same theme with same product but with different situations. As shown is the below mentioned some Pictures the same message is conveyed to the attitudes of consumers to motivate at the needs fulfilment.
10. J&D and Subliminal Perception Just Noticeable Difference
White One Is Thicker (IPhone): Before its 10 month late launch, white iPhone4 was intensively rumored all over the world. Widely believed to be unreal, the white smartphone finally arrived in App store yesterday, April 28th. The Apple lovers are all happy, rushing to get one, but… there is one big BUT! The white iPhone 4 appears to be significantly thicker than its black counterpart. The pictures obviously prove it- the black one is 0.2mm thinner than the new white iPhone4. The reason for thickness is said to be the extra UV protection and other tweaks added to reduce the "unexpected interactions" between the cover's whiteness and the internal components. It seems that apple sacrificed a bit of slimness for the iPhone to function smoothly. White iPhone4 0.2mm thicker than its black counterpart The difference is so small that its actually below the JND (Just Noticeable Difference) edge for consumers with disarmed eye. But the implications caused by this 0.2mm are much greater than we can imagine- the problem is the cases! Unfortunately, Apple's own spec page doesn't highlight the change in thickness (measured at 9.5mm by TiPb). Instead it still shows a 9.3mm depth with a tiny disclaimer stating, "Actual size and weight vary by configuration and manufacturing process." This fact misleads case producers while creating tight fitted cases for iPhones, forcing to start manufacturing a new line of their product specially for white iPhone4. IPod‟s white headphones. Using white headphones to launch Apple‟s mp3 player wasn‟ t merely disruptive for a category with commonly black headphones, it was also own able as the iPod‟s signature colour. Further, the distinctive colour publicly identified the consumer‟s brand preference – a fact previously hidden in the consumer‟s pocket– creating a tribe-like community and encouraging a wider audience to join the digital music revolution.
Subliminal Perception:
Apple‟s product colour is itself is an example subliminal perception. The white colour stands for purity and normal. White colour is a symbol of peace and every person get attracted towards it because of its natural symbol even though this attraction may not have any significant value for that particular person.
11. Apply the popular meanings of colours for the brands in the sector.
Apple's first logo was designed by Steve Jobs and drawn by Ronald Wayne depicting,Sir.Isaac Newton sitting under an apple tree.The word 'Apple Computers' were drawn on a ribbon banner ornamenting the picture frame,and the frame itself have a quotation from words Wordsworth;
" Newton...A mi nd f orever voyaging thr ough strange seas of th ought...Al one"
Apple logo were replaced,by a monochrome theme of steel with a light shining behind it,but more interestingly let us the look at the byte in the Apple's Logo:
According to the designer Rob Janoff,it is not a reference to the computing term byte.
1 byte =8 bits 8(Eight) bits,or binary digit can be used to represent ,two states of information; ONE/ZERO ON/OFF TRUE/FALSE MALE/FEMALE IGNORANCE/KNOWLEDGE GOOD/EVIL The more bytes, more intelligence, the more information you can store or process faster.
Major Products, Apple Inc is having products IPhone, I Pad, Mac Book, I Pod. The colours used in the same are mentioned below with their meanings which are to be conveyed:
White:
Purity & Gentle Black:
Power & Elegance Silver:
Metallic refined, distinguished colour of riches, has cool properties like gray, but is more fun, lively, and playful. The colour silver is associated with meanings of industrial, sleek, high-tech, and modern, as well as ornate, glamorous, graceful, sophisticated, and elegant.
12. Explain the use of colors in the brands in your sector from personality and perception point of view.
Colors are used in the build of brand for the imaginary purpouse . Brand Personality Concept
Apple has a branding strategy that focuses on the emotions. The Apple brand personality is about lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams and aspirations; and power-to-the-people through technology. The Apple brand personality is also about simplicity and the removal of complexity from people's lives; people-driven product design; and about being a really humanistic company with a heartfelt connection with its customers. For the personality point:
For the perception point:
13. Discussed example of attitude change strategies used.
As per my understanding during the classroom discussion and the help of assigned textbook I found that, there are four ways to change the consumer‟s attitude.
1. 2. 3. 4.
By changing the consumer’s beliefs. By adding new beliefs. By changing attribute importance. By changing ideal points.
As concerned to our sector, There are various product ranges in our sector , it starts with apple‟s first computer to end with Apple i-phones!
To evaluate properly I would like to take one particular Product of the Brand. The Product is Ipad. 1. By changing the consumer’s beliefs.
When Ipad was launched it has assumed that Ipad is the gadget , which mostly uses for fun, gaming,music and specially for the teens and youngsters. By company‟s strategy of beliefs in consumers that – “ it‟s not only uses for teens or youngsters , even professionals can also use it with their regular day to work weather it‟s reading a novel or presentation in the office !
2. By adding new beliefs.
Some new beliefs can be added by using third party endorsements and authentic sources messages. Like more new features added into the ipad in frequent duration . for example : ios up gradation . i.e. ios 4, ios 5, ios6, ios7
3. By changing attribute importance.
Like in ipad there are several functions which are upgraded in ipad2 and the same functions plus upgraded (new) functions of ipad2 , come up with the new ipad (ipad 3).
4. By changing ideal points.
Here, I will take the other product of apple because for particular point the assigned product (ipad) will not fit into this properly . Let‟s see with ipod vs iphone – the same product almost the same features not only possible to make calls because there are no place for sim card.
14. Provide Example of Learning Strategy used.
Elements of learning :
Price Style Packaging Adv. Messages Store displays
“learning can facilitate marketer to build demand for a product by providing positive reinforcement”
As I learnt from the textbook and class ofcource, there are mainly 2 types of theories: 1. Behavioral learning theories 2. Cognitive learning theory
As per my sector I can not conclude the exact Brand position in manner of learning strategy , because of variety of products are there and of cource STE VE J OBS were there .
Identify the brand personality concept.
“Brand Personality refers to the perception that is created by the brand in the minds of the consumer.”
As I understand there are five main constituents of brand personality.
1. Name & logo
(A ) Early 1980’s Appl e has above logo and tagli ne.
(B ) L ater on l ogo remain same but col or h as been changed.
(c) Now i n 2012 once again color of l ogo has been ch anged.
2. Color
As we can observe though there were several time logo has been changed even colors of logos also changed but chosen colors always end with SOPHESTICATION tag. Weather it has been Rainbow Effect , Black or Silver But the value of brand logo remain the same . that‟s the beauty of this brand.
3. Performance
“Apple” today in consumers beliefs play role as a top class performer. In terms of quality measurements.
4. Premium Image.
Some of the parent products like ipad , iphone and Macbooks it self contains a premium image. (Because of its price concept)
5. Advertisement.
A very less advertisements give the society that‟s the main motto. Always talk with quality rather than advertisements. And this approach has been correctly proven.
15. What is the decision making process normally followed and factors influencing purchases?
As per my studies normally no particular decision making process are follows , because of its too much popularity among the consumers. (F or example : Any new iphone launch the consumers long queue at Apple Centre , U.S.A.)
So company has no need to be justifying in particular sector.
And when the talk is about influencing purchases the different place/ country ofcource measured.
: iphones in country INDIA- Price will always remain high with reference to $ ( F or example and INR .) In this situation it affects consumers to buy a premium product.
16. Discuss the role of family and children in the purchasing processing.
Today Apple is the brand which is suitable in all group of ages. In all group of ages people willing to buy this brand. Weather is talk about iPads for children iPods‟ for youngsters and macbooks for professionals a all must want this brand or else we can say that love the brand.
For, too much love company always want to expand more and more brand equity in the market for that reason company always come up with sale promotions. Educational Discounts Institutional Discounts Professional Discounts And Year & Sale discounts
Various type of above promotions always promoting more sales towards the brand equity. And as a result consumers buy products more and more whether he may be son, father, grandpa or she may be daughter, mother and grandma.
We can conclude this questions with above given some arguments which can be proper answer. -------------------------------------------------------------------------------------------------------------
