Apple's new computer could erode sales of netbooks and tablet devices sold by PC makers, analysts say.
Apple’s (APPL) new iPad, a lightweight device that browses the Web and delivers media, may serve as an alternative to netbooks and pose a threat to PC makers.
Here are some of the markets in recent years about the situation iPad, marketing strategy and marketing mix.
2. Situational analysis
2.1 SWOT analysis
2.1.1 Weaknesses:
1. There are no facilities: Web Cam, so the limited support activities chat with your community.
2. Operating System is not based on Mac Operating System, so questionable in terms of program development.
3. Memory storage is too small. With a maximum capacity of 32 GB is too small for data storage for the needs of design, entertainment, and so forth, so that can not be said equivalent to a MacBook in terms of ability.
4. with the number of applications over 140 items so extravagant in its users, and in addition it is also difficult to remove the battery.
5. Multitasking capability is limited in; the more proves that iPad not synchronized with the notebook, because it is limited to the functional, so that it can be said iPad not a Smartphone, and not a notebook.
6.Screen size is too small only 24.8 x18, 97×1, 34 cm, making uncomfortable when used for playing videos and reinforced by the lack of an HDMI port.
2.1.2 Strengths:
1.Sun screen effect: Many people are concerned about this, I specifically tested, the transferred to half brightness, almost no impact on reading, such as Transferred to the brightest, estimated effects will be much better, perfectly acceptable. Although the sun was not the kind of extreme midday sun, but the Asus notebook screen out a place to see do not have to read …
2. batteries: batteries, do not know why some people say that the battery less than satisfactory, in fact, I play for a few days, feeling that the battery is very satisfied, continuous use are generally 8 hours or so right, the official data for the 10 hours, with WIFI + high-definition playback, then you may consume a little, feel, is the screen brightness on battery relatively large impact.
3. USB charging: iPad directly through the USB connected to the Windows systems will not be charged, In the Mac system may be charged by USB. Some reports say that only under the Apple USB charger. I tested in my MacBook Pro under Windows7 does not work, estimates for the operating system instead of computer hardware, so Apple users can also charge the black bar.
Headphones and speakers: iPad is not supplied headphones, and needs its own allocation. Headphone jack is a standard 3.5mm, can be connected to any headphone, and, like Apple's notebook, iPhone's headphones as iPad remote control when the use of songs, seemingly M8 headphones can control it. Tone sounds and the iPhone is very similar to the high quality, there is not more evaluation.
4.Data interface and charger: iPad use and iPhone, iPod Touch, like the data line, if you have these products, so congratulations to you, do not have extra time to go out with more than one line. IPod, like the appearance of power and very small, only iPad output current to be bigger, test iPod's power is also possible, but some of charging time president.
5. Bluetooth: You can use any Bluetooth keyboard, needs a lot of code where the word is very convenient. Not tested Bluetooth stereo headphones, do not know whether to listen to songs.
2.1.3 Opportunities:
1. The door to video has been pried wide open—think video, video and more video at all levels of marketing.
2. Mobile providers are taking one more step to being pure data providers. They have no choice—data wherever and whenever will be our reality and reaching people will only get easier.
3. Advertising will evolve and create new opportunities to develop richer and more connected messaging. Check out Time’s thoughtful video below.
4. If you can think of it, there will be an application to help sell it.
5. The death march for bookstores will accelerate. Books will be cheaper and easier to access and start to integrate video. Yes my friend, Moby Dick and all your favorite classics will have embedded imagery.
6. Words alone will feel naked. Expect commercials in books or contextual product placement.
7. Hand out more shovels for the hole being dug for video stores. Just a few more feet to go.
8. The movie studio will evolve into something else based on a different access and pay model.
9. Look for vertical market applications that redefine entire industries. Start with healthcare.
10. And of course, the biggest of opportunity of all: the idea that hasn’t be thought of (yet).
2.1.4Threats:
Besides the threat coming from the Amazons Kindle which has the same ability in the function that is as famous e-book, although in terms of design was mediocre. Amazon Kindle also have done backup on their online media from virus threats. Also in the sales package is cheaper than that sold iPad about $ 399, a book cover, power adapter, USB cable, Kindle Reader.
In addition to the Amazon Kindle, iPad will get serious threat from Adam Notion inc in tablet PC format, and also has several advantages that can be claimed as iPad compete with NVIDIA chipset support is very supportive iperasional time so that more efficient, greater resolution is 1080 P compare with iPad only 576P/480P maximum resolution, and Adam tablet support Adobe Flash Player, and based on Android operating system. According to Adam’s plan will launch tablets in February 2010.
Viewed from the development will be more interesting to see the Amazon Kindle, despite losing the specifications of the iPad, but by setting a price cheaper than iPad is a breakthrough from the Amazon, whereas the Adam Notion Inc that claims to have capabilities that exceed in the case iPad HDMI resolution, power consumption, to support applications, and operating system is still required proof of Adam’s side to compete with the iPad tablet PC segments.
Having seen the development was not in accordance with iPad is heralded. One of them according to CEO Steve Jobs as saying Apple iPad is collaboration between the iPhone and the MacBook, just a large version of the iPhone, so that it can be said only iPad as tablet PCs. According iPad plan will be launched globally in March and April 2010. The specifications and from the observations are not in accordance with reality than not compatible with a variety of applications, licensing programs outside Apple, is also the threat from competitors' products.
2.2 Industry analysis
A company may play multiple roles; iPad current position in the market is mainly the market leaders and market challengers. The face of PC, iPad is the challenger; the face of other systems, Tablet PC, iPad is the leader. The market leader, in order to maintain its top position, can take three actions.
"Extension of the market: finding new customers develop new uses and improve product usage.
Protection of market share: no status quo, innovation is the best defense strategy.
Increase market share: product updates, quality strategy, multi-brand strategy, a large number of advertising strategies, strong sales promotion. "
The role of challenger in the market does not have the winning conditions, do not easily play. But the market is unpredictable, iPad not necessarily always maintain the leading role, playing the Challenger is inevitable in every business, is the greatest challenge for iPad.
2.3 Competitive analysis
The following are the five major competitors to iPad:
2.3.1 RIM- PlayBook:About product performance and application, PlayBook may be more advantageous than the Samsung Galaxy Tab and may be the representative of the system configuration in the PC market. Of course, to buy Blackberry products not only its configuration, but also its professional performance in mobile communications and business applications. Especially it will be a right-hand man for business users, which is the largest advantage of PlayBook to competition.
A) Strengths:
1. Strong overall performance of products.
2. The perfect support for Flash and Camera with Two HD-level
3. Professional services on the e-mail.
B) Weaknesses:
1. On building sales channels are not professional.
2. There are some limitations on the production is a very small part of the overall product to the mass market. Although PlayBook is not listed, but its hardware configuration is the current PC market to the highest standards, many users are looking forward to its actual performance. As the RIM's CEO Leslie Ball said "PlayBook three to four times faster than iPad."
2.3.2 Android- Galaxy Tab:
Galaxy Tab was seen as the most powerful and iPad competitive products in the current market. It is a branch of Samsung; Samsung has a strong technical base in the processor, display and production aspects of terminal equipment.
A) Strengths:
1. There are many alliances and partnerships, and product variety. Consumers have several options for this product
2. Wide product sales to attract more developers, the subsequent expansion of a large space.
2.3.3 MeeGo:MeeGo have not yet produced the mainstream PC products. N900 listed before is more like a concept cell phone. MeeGo feature is that it implements the Maemo and MeeGo dual boot.
A) Strengths:
1. Products have a good compatibility and maturity of software and hardware.
2. A large number of users of Nokia and the traditional PC industry's position of the Intel is another advantage.
B) Weaknesses:
1. Systems are imperfect and no actual product launch at all.
2. There is no firm stance in improving the technical aspects of the system and lack of follow-up development efforts.
3. Ovi without strong competitive platform for other products.
2.3.4 WebOS:Although HP is the trump card, but the news spread very little about it with WebOS the PlamPad. HP previously announced that this product will eventually be used "Palm Pre" the trademark. It can be seen as Palm Pre larger version of the phone's screen and can provide a better view and more room for maneuver. Overall, PlamPad also difficult to leveraging iPad's position even more marginalized than MeeGo.
A) Strengths:
1. HP has great influence and improves the sales channels in the PC, consumer electronics and office equipment field.
2. Palm still has a full appeal in the consumer groups.
B) Weaknesses:
1. It is not a competitive advantage when HP products in the market alone influence and Palm's development efforts.
2. HP's product line is too wide to look after each other.
2.3.5 Windows:
A) Strengths:
1. High market share and the user are very familiar to interface and applications.
2. A variety of interfaces in the body and have good scalability.
3. APP development easier, resources are more abundant.
B) Weaknesses:
Microsoft has strict rules in terms of design, which requires all devices Windows Phone 7 must have a good camera. One of the conditions, the camera must be at least 5 megapixels.
The mobile for Windows Phone 7 limit to restrict camera access to a variety of applications. Thus, developers can not fully utilize the camera function.
Although Windows Phone 7 device can record and upload videos and images, developers can not use image sensors to do other fun things like video chat.
2.4 Customer analysis:
Even though the iPad doesn’t officially become available for another week, awareness is strong among certain key demographic groups, according to a new report by leading market research company The NPD Group. NPD’s Apple iPad: Consumers’ Perceptions and Attitudes report found that awareness is highest among current Apple owners, (82 percent), consumers with $100,000 or greater income (80 percent), and 18-34 year olds (78 percent).
Those demographic groups are the ones with the most interest in buying an iPad. Only 18 percent of all consumers surveyed expressed a real interest in owning an iPad while 27 percent of 18-34 year olds and 24 percent of Apple owners said they were extremely or very interested.
One of the main reasons Apple owners are interested in the iPad is because it’s an Apple product. Thirty-seven percent cited “liking the Apple brand” as a top reason for their interest in the iPad. That tied with “multi-touch screen”, which was also the number one reason driving interest among 18-34 year olds. The 18-34 year old consumer is also the most likely to play music and access the internet on the iPad.
For some consumers, and even among Apple owners, the prospect of spending $500 or more for a new device that doesn’t yet have a clear advantage over their other primary devices is unappetizing. Among the tech-savvy 18-34 year old demographic, 57 percent cited price as the number one reason they aren’t ready to buy; that’s 25 percent more than the overall percentage of non-interested buyers. Among Apple owners, 43 percent felt that the pricing was too expensive. But it’s not the price tag alone that’s making the iPad seem too expensive to these non-interested buyers. The other factor is that they are equating the iPad to a notebook or netbook replacement. Among 18-34 year olds and current Apple product owners “rather use a notebook or netbook instead” was cited by 51 percent and 44 percent respectively of those demographics as a reason not to buy.
Even those key demographics who expressed the most interest in the iPad aren’t making a strong commitment to purchase an iPad in the near future and that mirrors what overall consumers are saying. When asked what the likelihood of purchasing an iPad in the next six months was, 9 percent of all consumers surveyed said they were “extremely or very likely” to do so, as did 10 percent of 18-34 years olds and 9 percent of Apple owners. But there were a greater number of consumers who were “not very likely” or “not likely at all” to purchase an iPad in the next six months. Sixty-six percent of both the all consumers surveyed and 18-34 year olds don’t foresee an iPad purchase in their future, and 60 percent of Apple owners felt the same way.
2.5 Comments:
Apple dominates the digital music market.
Consumer focus, superb design and continuous innovation are the keys to Apple’s success.
A healthy ecosystem has helped expand iPad’s use and spurred its rapid growth and adoption
Content providers and competitive offerings pose a serious threat to iTunes but Apple has leverage to deal with it.
Apple is well positioned to become the Entertainment Hub.
3. Marketing Strategy
3.1 Marketing and product objectives
Most of us who've been in the industry for more than the decade have an image of Mac market share: They're a niche product. Love them or hate them, they're boutique merchandise, with a few percentage points of market share. Macs are 5% of all computers as of January, according to NetMarketShare.
However, let's take a closer look at those numbers: Apple's sales are skewed to premium PCs, priced at over $1,000. When you look at premium PCs alone, Apple has an astonishing 90% market share. That's right: Nine out of 10 PCs priced at $1,000 or more are Macs.
But what does that do to my conclusion? I said Apple dominates the premium PC market, which is driving excellent revenue and profits, but that domination is dangerous. It doesn't leave Apple much room to grow in premium PCs. Moreover, premium PCs are a risky market to be in, because the growth is in under-$1,000 PCs and netbooks, a market in which Apple doesn't have many products.
The iPad represents Apple's entry into the sub-$1,000 PC market, where there is much more room to grow.
3.2 Market segmentation:
Apple's product strategy is called a classic case of market segments. As far as possible with the traditional products in a different function to add more different is that Apple's strategy for a particular user experience based on user experience design products.
When the mobility from the point of view. Similarly, Apple's products also include a variety of devices such as input from the keyboard and mouse to the multi-touch and so on. Apple's iPod player and iTunes use of vertical integration, with 160 million credit card users to establish a consumer relations, and provides a simple discovery, purchase and transfer of consumer experience. This is the key to Apple's market segmentation strategy can spread and coordination.
3.5 Comments
General Public is the Buyer
Apple must continually innovate and increase content to maintain market share
Apple must maintain low price point avoid the public’s return to piracy
4. Marketing mix
4.1 Product:
“A product is a bundle of attributes include features, functions, benefits and uses that exist for the purpose of exchange to satisfy both customer and organizational objectives. A product can be one or more of a good, an idea, an event, an activity, a person or an experience.”[2] Firms need to focus on the development, require products with a unique selling point.
4.1.1 Hardware
| Model | Wi-Fi | Wi-Fi + 3G |
| Announcement date | January 27, 2010 | |
| Release date | April 3, 2010 | April 30, 2010 |
| Display | 9.7 inches (25 cm) multitouch display at a resolution of 1024 × 768 pixels with LED backlighting and a fingerprint and scratch resistant coating.[9] | |
| Processor | 1 GHz Apple A4 System on a chip | |
| Storage | Fixed capacity of 16, 32, or GB | |
| Wireless | Wi-Fi (802.11a/b/g/n), Bluetooth 2.1+EDR | |
| No wireless wide-area network interface | 3G cellular HSDPA, 2G cellular EDGE | |
| Geolocation | Wi-Fi Apple location databases | Assisted GPS, Apple databases, cellular network |
| Environmental sensors | Accelerometer, ambient light sensor, magnetometer (for digital compass) | |
| Operating system | iOS 4.2.1 | |
| Battery | Built-in lithium-ion polymer battery; (10 hours video, 140 hours audio, 1 month standby) | |
| Weight | 1.5 lb (680 g) | 1.6 lb (730 g) |
| Dimensions | 9.56 x 7.47 x .5 in (243 × 190 × 13 mm) | |
| Mechanical keys | Home, sleep, volume rocker, screen rotation lock, (mute switch on iOS4.2). | |
Pricing decisions are subject to an incredibly complex array of environmental and competitive forces. Price is most important for a product because it can help producer to attract customer and it can influence customer’s decision because it resembles what the buyer value most.
IPad’s pricing
STORAGE
| MODEL | 16GB | 32GB | GB |
| Wi-Fi | $499 | $599 | $699 |
| WiFi+3G | $629 | $729 | $829 |
4.3 Place:
The iPad represents Apple's entry into the sub-$1,000 PC market, where there is much more room to grow.
4.4 Promotion
With Every iPad purchased during this road show will enjoy FREE 10GB usage and FREE activation for your YES Huddle. The YES Huddle of course is a mobile Wi-Fi/modem that allows you to create a Wi-Fi hotspot anywhere you are. With 4G speeds, you’ll be able to surf at 4G speeds!
4.5 Comments:
In technology today, speed is the key to success in market competition. Of course, there are unanimously of the "vertical", there is the small thinks of the "Lien". Although these companies aim at iPad in the highly competitive and complex market, but there are too many competitors to divide up the market pie.
We can best learn from Apple is do not wait until the new thinking about how to market and then sell it. If Steve Jobs said: If you wait until this time thinking about these issues, more than 80% of new products to fail
5. Conclusion and Recommendation:
Looking back, iPad kinds of problems there pick a piece online: Apple's phone can not play phone, laptop does not take the network cable, desktop can not play games, mp4 not see the video, mp3 sound not, Tablet PC u can not read disk, and these are nothing, nothing. Although exaggerated, but it also tells us the confusion of these non-fruit powder
IPad listed on the Tablet PC Market in China is still huge. Mainly manifested in several ways: first, iPad through the influence of the Apple brand, effectively inspired the Chinese consumer, will range between mobile phones and notebook computers of mobile devices in the Chinese market had a literacy; s Second, so that China's Tablet PC business saw this vacancy blue ocean market outlook and situation. iPad after the release of huge sales, the demand that the tablet PC market is still very large; the third, iPad tablet PC market in China boost start. At present, China's Tablet PC market is still in its infancy, iPad appearance, opened the Tablet PC market space in China.
References:
1. ://wikipedia.jaylee /
2.Principles of marketing eleventh edition by Philip Kotler & Gary Armstrong
3. Foreign management section 215
4. Computer News 47, paragraph 92