1. Introduction
Apple has intrigued marketing experts and business strategists around the world to think why Apple is so successful, and what is the secret behind its success?
From 2004 to 2022, Apple has enjoyed an unparalleled revenue growth:
There is no single answer to this question. Apple has gained market leadership position by devising its own secret formula. Almost everything that carries the Apple’ brand name succeeds.
Source: Larichia (2022)
From $8.2 billion in 2004 to $394.33 billion- the growth is astounding!
Apple’s success is not confined to making billions of dollars. In fact, it has changed the game in its niche in a way that no other company is yet able to compete it. Almost all of the Apple’s products have revolutionized their respective market spaces.
The secret behind Apple’ market leadership lies in its effective marketing strategy.
In this article, we present Apple’s Marketing strategy analysis to find its successful formula. We discuss Apple’s business strategy in light of 4-P model, and analyze how different Apple strategies have enabled firm to become a huge success case for rest of the world.
2. Apple’s Marketing Strategy Analysis
The secret to Apple’ market leadership largely resides in Apple’s marketing strategy, and the strong alignment between its marketing mix components. Let’s explore the Apple’s success recipe in light of marketing-mix model.
2.1. Apple’s product strategy
Apple’s product strategy focuses on quality rather than quantity. By adopting a product-driven approach, Apple first develops its products, and then seeks out the market for it. An interesting aspect of Apple marketing strategy is that it believes on the philosophy that customers don’t always know what they want. Rather than spending millions of dollars on market research, Apple installs the innovative features in its products, and makes customers to want the product.
A well-diversified product portfolio of Apple ranges from offering-IPhones, iPads, Mac, wearables and accessories to offering services like AppleCare, cloud services, streaming services (Apple TV Plus) and payment services.
The product strategy is in line with Apple brand values, which are to make great products, focus on continuous innovation, and keep things simple. Marketing of Apple is done in a way that positions the brand in a minimalist, yet efficient way.
From Steve Jobs to Tim Crook, Apple has retained its core brand values. After becoming CEO, Tim Crook extended the Apple company values by including- diversity, inclusion, accessibility, privacy, responsibility and sustainability. These core brand and company values set a strong product positioning in customers’ mind, and that’s the reason Apple shares a strong emotional connection with its customers.
So, the first success ingredient of Apple’ success is-
Develop a product with a strong appeal to target customers, a product strategy that could deeply connect with the target audience, and is strongly aligned with the core brand values!
2.2. Apple’s pricing strategy
Being positioned as a luxurious brand, Apple adopts premium pricing strategy, and justifies its premium prices by combining it with exclusivity, innovation and premium branding. The target market of apple includes middle to high income customers who seek taste of innovation and exclusivity. So, its premium pricing strategy goes well with its customers, and is also well-aligned with its product strategy. The SWOT analysis of Apple considers Apple’s premium brand image as one of its key strengths.
As Apple is recently expanding its service portfolio, the company charges freemium pricing for most of its products. Like, it offers 5GB free iCloud storage, and then charges recurring fee if customers need more storage capacity.
The second success ingredient of Apple’ success is-
Choose a price strategy that is well-justified, shares strong alignment with product strategy, and reinforces the brand image in customers’ mind.
2.3. Apple’s place strategy
Apple uses both- online and offline distribution channels to distribute its products, and widen the reach around the globe. Apple has opened its outlets around the world from where customers can directly purchase the products. To ensure convenience, Apple sells its products through its website, as well as through various online portals like Flipkart and Amazon. To further extend the reach, Apple has authorized various corporate re-sellers to sell the products.
Here, Apple understands the importance of preserving a premium brand image. So, in line with its premium product and pricing strategy, Apple handpicks the stores based on their location, size, design and monthly sales.
The third success ingredient of Apple’ success is-
Choose a place/distribution strategy that widens the reach and ensures convenient availability without affecting the product positioning!
2.4. Apple’s promotion strategy
Apple promotes its products through various channels, including electronic media (TV advertising), print media (like Vogue), digital media (social media marketing), personal selling (through Apple’s stores), and sales promotion (through authorized re-sellers). Company also uses public relations to optimize the brand image.
However, the secret behind Apple’s market leadership is not confined to these traditional promotional techniques. To integrate innovation in its promotion strategy, Apple strategically places its products in Apple TV+ shows. A recent report by Wall Street Journal revealed that Apple placed 120 Mac-Books, 300 iPhones and 40 Air-Pods pairs in certain scenes throughout 74 episodes.
Another innovative promotion strategy is the Apple’s ConnectED initiative, which proved to be a huge success during pandemic. In line with its core value- sustainability, Apple took this initiative to promote its business along with improving the formal education outcomes for the society.
Apple Events is another promotional strategy that plays an important role in making Apple so successful. The digital marketing campaigns along with Apple Events (message based communication mechanisms) are testaments of how smartly Apple is investing on its branding and marketing strategy to preserve its market leadership position.
The fourth success ingredient of Apple’ success is-
Think innovatively, and experiment with new promotional methods. Choose multiple promotion channels, but don’t forget integrating creativity. Align the promotional strategy with the brand image and core brand values.
So, after conducting Apple’s Marketing strategy analysis, can we now answer why Apple is so successful?
3. Secret behind Apple’s market leadership
3.1. Unique value proposition
Apple focuses on value, and not on price. Instead of getting caught up in price wars, Apple offers unique value proposition, and thus, is not afraid of charging premium prices. By adopting a customer centric approach- from design, value to operating system-Apple keeps its customers in mind. So- user experience is the Apple’s unique value proposition.
The value proposition is also in line with Apple company objectives.
The objectives of Apple company outline the company’s desire to develop products that reflect target market’s needs and preferences. Key Apple business objective is to offer best experience to its target market through innovative software, hardware, and internet offerings.
Lesson learned:
Stand out of competition by telling what you offer, and give a compelling reason why you should be preferred. Link your value proposition with core business objectives, and communicate it clearly to your target market.
3.2. Blend creativity and simplicity together
Apple regularly upgrades its software, but rarely changes the user interface and physical structure. Does Apple lack creativity? Certainly No. Apple is known for innovation and creativity. But here, Apple is teaching how creativity and simplicity could be blended together by adopting a minimalist style.
Why Apple does so?
Because its target market loves aesthetically pleasing minimalist designs that reduce distractions and allows the users to focus on more important features.
Lesson learned:
Keep brand inspiring, creative yet simple to NOT overwhelm your audience. Understand what your customers want, even if they don’t know themselves what they actually want.
3.3. Loyal community of users
Apple builds an eco-system. The moment customers purchase Apple’s product, they enter in a whole Apple sphere. The company offers software, cloud storage, and access to its online store. By doing this, Apple makes its customers feel like they are part of exclusive Apple community. No Doubt, Apple has taken an inspiration from Amazon, and has been quite successful in it.
Lesson Learned:
Build a loyal community by building a brand eco-system that offers exclusive customer experience, and makes customers feel like they are strongly connected with the brand.
3.4. Total brand experience
Apple offers a total brand experience! An experience that is made visible at every touchpoint across buyer journey. The brand focuses on a niche segment, and then aligns all its branding and marketing efforts to make them feel privileged. As customers enter Apple store, they get a highly personalized experience. Ranging from product design, manufacturing to marketing, Apple does not forget its customers, and thus provides an enriching total brand experience.
Lesson learned:
Extend focus from enhancing products/services to enhancing total brand experience. Your customers interact with you at multiple touch points throughout their journey. So, consider product features, customer service, marketing techniques and overall branding efforts all together while keeping your customers in mind.
3.5. Adopt innovative marketing strategies
Apple builds long-term customer relationships by adopting innovative marketing techniques, ranging from emotional marketing to storytelling technique, Apple knows how to connect with its customers. Think Different campaign is a good example of Apple marketing strategy success.
Lesson learned:
Develop an emotional bond with your customers by integrating rational and emotional appeal together while developing marketing strategies.
4. Recommendations
Here, we sum up the key lessons learned from analysis of Apple marketing strategy:
• Ensure your product strategy is in line with core brand values. Develop products with strong appeal to the target audience
• Choose a justifiable pricing strategy that is strongly aligned with product strategy, and reinforces brand image
• By learning from Apple brand strategy, integrate innovation in every aspect of marketing to build strong brands.
• Distribution strategy should not only widen the reach and offer convenient availability, but should also go well with the product positioning.
• Choose innovative and creative promotion methods. Focus on emotional marketing, and choose promtional channels that reinforce brand image.
• Strengthen ties with customers by building online customer community. Keep customers engaged in the community by making interactions meaningful.
• Provide a strong reason WHY customers should prefer you, and not your competitors.
• Understand your target audience. Even if they cannot understand their own needs!
• Blend creativity with simplicity while developing marketing strategy. Do not overwhelm your audience!
• Offer a total brand experience by enhancing brand-customer interactions at all possible touch points.
5. Bottom line
There is no single formula for success. Apple gained success as a market leader largely because it understands, and connects with its customers. There is a lot to learn from the Apple’s success story, and encapsulating all ingredients of Apple’s success in a single article is not possible. To know more about Apple, have a look on Apple’s SWOT analysis.
6. References
Statista. (2022, November 10). Apple’s revenue worldwide 2004-2022.
Journal, W. S. (n.d.). Hundreds of iPhones Are in ‘Ted Lasso.’ They’re More Strategic Than You Think. WSJ.
SRI International. (2022, July 19). The Apple and ConnectED Initiative: Three Case Stories.
Review, M. (2022, March 10). Why Apple Event is an Essential Part of Apple’s Success? Mirror Review.
Team, T. B. O. (2022, November 30). Think Different: Apple’s Blue Ocean Formula for Success. Blue Ocean Strateg
