1. Kaitlyn Igo
Overview
The company Apple has been a pioneer corporation that has revolutionized the way
Americans and people worldwide utilize technology.
According to a case study by John Aschcroft, Apple “has led to the sale of 575 million
digital devices and a market cap of $575 billion in just ten years. It has 585,000 apps in the App
store, producing 25 billion downloads since launch [a tool the company uses to] measure its
success” (Aschcroft 2).
One of its newer and highly successful products is the iPad. According to the case study,
the idea and launch of this product began in 2009 when analysts suggested Apple’s next
product cater to the video-game market. The case study says the company had already
experienced huge success with the launching of the iPod in 2001 and then the iPhone in 2007.
It was time for a innovative new product to emerge on the scene. Steve Jobs, the
founder of the company, recognized the gaming sector of the digital market was being
dominated by other large companies such as Sony. Instead of competing in that market, the
company introduced the iPad in April 2010.
Product
According to our text, “the actual product includes the specific features and styling of
the product, its quality, the brand name.”(Mueller 26).

2. Apple’s iPad has very specific attributes to make it the gadget with high quality along with a
stellar brand name. The iPad combines many different technological devices into one product.
It can be used for “the web, reading, sending email, enjoying photos, watching videos,
listening to music, playing games, reading e-books… [It has a] responsive high-resolution Multi
touch display [, which] lets users physically interact with applications and content. iPad is just
0.5 inches thick and weighs just 1.5 pounds; thinner and lighter than any laptop or netbook. [It]
includes 12 innovative apps, designed especially for the iPad and will run almost all of the over
140,000 apps in the App Store” (Aschcroft 11).
This technological device allows users to have a computer, a book, an iPod, a camera,
phone and a television all in one product to be taken with the user practically anywhere he or
she is going. Also, as the quote points out, the high resolution of the product allows for the user
to have a crisp view of whatever he or she is seeing on the screen. Arguably, the ipad
eliminates the need for someone to buy many individual-technological devices, but instead
combines them all in one product.
To be more specific, the iPad’s features include: a soft keyboard, the ability to import
photos from a Mac, PC or digital camera, see [the pictures] organized as albums and enjoy and
share them using iPad’s elephant slideshows. Watch movies, TV shows and You Tube all in HD,
or flip through pages of an e-book you downloaded from Apple’s iBook store while listening to
your music collection…. [It has] an ultra-wide 178 degree viewing angle” (Aschcroft 13).
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3. One of the overarching features about this product is that it intertwines the use of other
Apple products and devices that are or are not associated with the company, making it very
user-friendly.
For example, the quote says the user can import his or her photos using a PC or Mac,
one of the products is associated with Apple while the other one isn’t. Also the case study
points out, “iPad syncs with iTunes just like the iPhone and iPod touch using the standard Apple
30-pin to USB cable , so you can sync all your contacts , photos, music, movies, TV shows,
applications and more to your Mac or PC” (Aschcroft 13).
The versatility of the Apple products and in this case, the iPad makes it very appealing to
consumers because they don’t have to own strictly Apple products for an Apple product to be
applicable. Also the latest gadget purchased by the user still coincides with older versions of
Apple products. For example, as the quote points out, the iPhone coincides with the ipad.
This is appealing to a consumer because their dated technological tools are not obsolete
simply because something different makes a debut as the newest and must-have technological
devise. The user has more use for a new Apple product and is more likely to buy it because of
its versatility. This was an efficient and attractive marketing technique used by the company.
Appealing to Market Segments
According to an article titled Apple Ecosystem Incomparable, the writer coins this
marketing technique as “Apple’s Ecosystem.” The author says the ability for the company to
coincide with its competitors’ products and older inventions that the employees of Apple
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4. themselves produced while combining multiple technological tools into one device, makes the
company secure its lead in the marketplace.
The author explains why the company’s Apple-Ecosystem- marketing technique is so
successful. He uses the iPad as an example to show readers the success rate of the Apple
Ecosystem. “It has taken nearly 80 percent of tablet PC sales worldwide. [He continues his point
saying,] “Apple has put so much effort, integrating application developers, performers, music
companies, the media, publishers and its supply chain… Apple’s iTunes and I Cloud services
have served to expand its ecosystem, which in turn,’ has broadened consumers’ reliance on the
company” (Taipel 2011).
This quote proves that by the company intertwining a variety of playmakers into the
production of its products, huge success is achieved. For example, the media can be an opinion
leader in the public. By Apple incorporating this sector of the public sphere into its marketing
mix, positive feedback in the form of financial gains and large distribution worldwide is
accomplished.
Also the quote points out because Apple has created such versatility in its products, the
consumer has become dependent on the brand. A consumer feeling the need for a product
guarantees that the individual will continue to buy Apple products; consolidating its lead
position for technological tools.
According to the case study, Apple caters to four primary consumers: business, creative
professionals, education and high-end consumers. The company changed how it marketed to
these segments of people when it recognized a shift in technological use.
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5. For example, “in the year 2000, some 75% of sales were to traditional business and professional
markets. By 2011, the situation had reversed with almost 75% of sales in the consumer
markets. The drive for the consumer digital device had been secured; more than 500 million
devices sold the measure” (Aschcroft 5).
This shift to personalized devices for the individual user is how Apple markets the
majority of its products, including the iPad. According to a study done by Mintel, not only do
people want personalized tablets, they want multiple ones in their home. For example, “in just
three years on the market, household tablet ownership has reached 30% of internet users…
44% of tablet users have already acquired a second tablet… Ownership of multiple tablets is
heading toward the norm, rather than the exception… multiple tablets positioned in various
locations that all members of the household can use, in addition to tablets owned solely for
personal use” (Mintel 7). The trend toward many personalized tablets in one home is apparent.
Gone are the days of the single family computer. Now almost every member within a
household has a computer.
According to the same report, “half of all tablet owners have an iPad, twice the
penetration of any competitor” (Mintel 1). This quote proves that due to Apple’s unique
marketing strategies such as, the Apple Ecosystem, it comfortably has the top spot for
technological devices, especially in this case of the iPad.
Appealing to the General Market.
According to the previously mentioned report, “in just three years since the launch of the
iPad, personal tablet ownership has climbed to 30% of internet users. More than half of all
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6. internet users from households with incomes above $100K have a tablet in their household,
including 59 percent of respondents from the highest income bracket…” (Mintel 3). A chart
from Mintel’s executive summary reveals that when all tablet owners were combined in the
18+ category] 50 percent owned an iPad. The competitor in second place was Kindle, with only
maintaining only a 24 percent market share.
This quote arguably proves that the iPad along with the sale of tablets accrued a huge
popularity when it entered the market. The use and sale of the tablet has spiked.
Despite, this fact, Apple clearly has not lost its competitive edge over time. As seen by
the chart, its number one rival competitor Kindle, in regards to selling a tablet does not come
close to the quantity of sales of the iPad.
Clearly tablet users, in general, come from upper-middle class or wealthy homes. This is
a key fact about the general market that can help justify Apple’s pricing strategy when
marketing the iPad. According to a report from Mintel about Apple’s marketing strategies, the
reading stresses the company’s use of a simplistic, visual style in its advertising when
addressing the general market.
For example, “it uses a white background with the device in the center of the screen and
focusing on the vanity shots of its products. [When the company advertises specifically for the
iPad], people are shown using the iPad, the ads often depict a person’s figure performing
various tasks. For the iPad, Apple’s main marketing message focuses on the iPad’s wide range
of capabilities, as well as its crisp display and fast speeds. Ads convey the idea that an iPad can
do almost anything, anywhere” (Mintel 1).
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7. Although Apple’s general market mostly consists of wealthier, better educated citizens
who have an above average income status, simplicity is still the key component when
advertising Apple products. The author of this report makes a point of saying the company
purposefully does not bombard its targeted market with technological terms, instead it relies
on the visuals in the ads to do the explaining.
This proves that even if a company’s general audience is primarily privileged individuals,
the company appeals to many socioeconomic groups with a direct approach in advertising
through visuals and plain language. This point can be clearly proven by Apple’s worldwide
success.
According to the same report, another method the company uses to appeal to its general
market is the release of commercials on a regular basis that coincide with a current pop culture
event or the holiday season. For example, the reading says “around Oscar time, Apple
launched an iPad ad showing how consumers edit films and watch movies on the device. The
images were accompanied by upbeat music and fast changing text that would land on a word
related to what the iPad was doing. The quick moving images represents the iPad’s speed, and
the extensive lists of words shows everything the iPad can do”(Mintel 1).
Clearly, Apple is appealing to a younger audience in this ad because of the music and fast-
changing words. However, one could make the argument that the Oscars and generally all pop
culture are appreciated by people of all ages. Although the socioeconomic bracket for the iPad
is narrow, the age group of the general market is vast.
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8. According to a 2013 Infographic overview about what types of people own tablets and
how iPad compares to its competitors, the pictures show 21 percent of tablet owners are
between the ages of 18 to 24. Twenty two percent are between the ages of 25 to 34. Twenty
percent are between the ages of 35 to 44 and 19 percent are between the ages of 45 to 54. The
point made here is that there is 36-year-age gap between the youngest and oldest person most
likely to own a tablet. Obviously by incorporating pop culture via media, the ipad’s popularity is
widespread. After the last age group, the disparity between each age groups drops by several
percentage points instead of just one.
Like most companies, Apple greatly takes advantage of the holiday season when
appealing to all its market segments. According to the same reading, in 2012 it utilized it to
promote the iPad and the iPad mini. “The regular iPad shows a young girl playing ‘I’ll be Home
for Christmas on her ukulele, while her grandfather watches via a chat function from the iPad
mini. The ad shows the iPad and the mini can connect families who are far apart. The
commercial suggests iPads are perfect holiday gifts for any member of the family, no matter
their age..’” (Mintel 1).
This ad shows a couple marketing techniques Apple uses that were discussed earlier. First
the ad shows how the regular-size iPad, aka, older version still works with the most recent
version of the product. Second, it appeals to wide-age bracket for product. Therefore, the
commercial sending the underlying message to viewers that the product is so user-friendly that
even the very young and very old can figure it out. Advertising any tablet during the holiday
season is a necessity.
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9. According to the Infographic overview, “roughly half of all adult tablet penetration was
created via a gift with 15 percent of respondents having received a tablet as a gift. Kid and teen
ownership of tablets is likely to have been derived by a higher percentage of gift purchases still”
(Mintel overview). The importance of the holiday season or having advertisements that
promote gift giving is further emphasized in Mintel’s executive summary.
“On average, gift buyers have purchased three tablets for other people as presents. This
small group of gift givers (just 5% of the total internet sample) is driving half of tablet sales. Gift
givers are more likely to be aged 18 to 54 and from households above 75K in annual income”
(Mintel 3).
Once again, these quotes stress iPad or tablet owners in general are financially well off
and the age range of owners varies greatly. More importantly though, it shows the immense
profitability that is gained during the holiday season. The failure to advertise during this time of
year or promote gift giving, in general, could result in large financial losses for any of the tablet-
making companies, including Apple.
Niche Market
There has been no mention in the research of a specific multicultural market that Apple is
targeting in its market, however, there is an apparent niche market the company is assisting
with its products; education. Apple helps this sector of its market through licensing. According
to our text this when “a company offers a licensee…to trademark or patent, the use of a
manufacturing process, technical advice or marketing skills, in exchange for the rights to know-
how provided by the licensor…”(Muller 44).
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10. In this case, Apple is offering the iPad to schools and universities, showing them how to use the
product to its fullest potential to assist with students’ academic performance.
According to an article from ProQuest, “Apple is revamping the way in which it offers
licenses for apps with its volume purchase plan, effectively creating an App store for education
institutions. Schools and colleges can now buy a bunch of licenses and then allocate them to
students and teachers using their mobile device management software. After giving their
personal Apple ID to their educational institution, the student user can download the apps
whenever they like. Alternatively, the apps can be installed automatically on the student’s
machine by the institution’s MDM software…The institution can revoke and re-assign the
student’s license whenever the need arises. The licensing change also applies to Mac apps…and
iBooks. So now a student can be automatically issued with books” (ProQuest 2013).
Apple is changing the way students and teachers interact with each other and the course
material at all levels of learning. Clearly, the company thinks this is a good business
opportunity. It also is beneficial to the students because their dependency on technology can
now be utilized in a productive way that enhances their learning instead of technology
distracting them from it. Teachers and professors are now offered a new teaching mediums
that strays away from the traditional classroom setting, which the tech-savvy students might
find more enjoyable and remain engaged.
The article continues to explain how Apple’s products will enrich the classroom setting.
“Teachers and students will easily share photos, videos or documents between devices using a
new AirDrop feature. It uses Wi-Fi and Bluetooth to accomplish this task and it also encrypts the
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11. file for security purposes. So a teacher can share a document in class and a student can edit the
document and pass it back to the teacher. The feature can be a new form of handing out and
collecting class tests…. Access to these institution-issued apps will be a single sign-on…[To avoid
a distraction issue in the classroom,] teachers will be able to lock iOS devices into one specific
app for the duration of the class…[Education boards in certain parts of the country have taken
the steps to ensure Apple’s devices will be used for the upcoming school year.] the Los Angeles
Board of Education put in an order for $30m worth of iPads, which will be rolled out to 640,000
students by 2014… 31,000 iPads will be given this autumn, ready for the 2013/14 school year.
The devices will be preloaded with ‘educational curriculum designed to enhance instruction, so
the intention is not to replace the teachers with iPads alone. They will be using Pearson’s
common core system of courses, which will consolidate Pearson’s claim to be the world’s
largest education company” (ProQuest 2013).
It seems the future is here. Apple and the iPad have brought the term ‘interaction” to a
whole new level in the classroom. The company has already addressed the majority of issues
that could arise by putting this high-level technology in the classroom.
The important thing to recognize about using the iPad and other Apple products in the
classroom is the company and the school system is using technology to enrich students’
experience in the academic setting. Instead of viewing technology as something of a distraction
that students try to sneak into the classroom, teachers can engage their students by embracing
the same technology. The students are learning within a comfort zone that their generation has
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12. grown up with for years. This in turn, could increase a student’s concentration and academic
performance overall.
Distribution
According to the case study, Apple’s distribution strategy is multi-channel marketing. This
means they use a variety of outlets to sell their products. To be more specific, “the company
sells its products worldwide through its retail stores, online stores, its direct sales force and
third-party wholesalers, resellers, and value-added resellers… Third party; own retail, online
stores include iTunes, the apps store and the ibooks store… [As mentioned earlier,] the
company sells to consumer, small and mid-size businesses, education, enterprise, government
and creative customers” (Aschcroft 5).
As seen by the quote, versatility in Apple’s distribution process has been its key to
success. It has few limits on how it chooses to get its products familiar to the public.
One notable aspect of Apple’s distribution process is how the company chooses market
segments that show promise for the company. For example, by distributing its products to
educational institutions, Apple is getting vast exposure in the public, showing them the ample
benefits of its products while also continuing to maintain a positive reputation.
It defines an ingenious approach in maintaining a positive image to the public and
simultaneously enhanceing children’s educational experiences at all levels of learning. The
company’s methods of distribution and the segments they choose to market their products
reveals well-thought out marketing and public relations strategy efforts.
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13. The success of Apple’s distribution, marketing and public relations strategies can be seen
in the statement “by 2011,… has over 360 own retail stores, a strong online store and the
incredibly successful iTunes store and apps store,585,000 apps available leading to 25 billion
apps downloaded”(Aschcroft 21). These statistics show how effective the marketing and public
relations teams are for this company. They clearly have well-planned out strategies to keep
improving Apple’s products, sales and public image.
Pricing
According to the text, “typical pricing objectives include profit maximization, return on
investment and return on investment and increases on total sales volume or market share”
(Mueller 57). The iPad has clearly accomplished all aspects of pricing objectives. Profitability
and the amount of iPads sold worldwide are impressive.
According to the case study “Apple has so much confidence in the product offer, they are
never afraid to premium price. It’s a good way of testing demand to establish the supply chain.
Prices are more easily reduced following a product introduction than increased” (Aschcroft 13).
When a company like Apple has experienced so much success with its products in the
form of sales and consumer trust, it can afford to market its products at expensive rates,
knowing consumers will be willing to pay the price for the high-quality product.
The same source says that when the iPad was originally introduced on the market, it was
priced at $499. Personally, one of the reason’s Apple can market a product at this price is not
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14. just because of its high quality and consumer trust, but also because the company introduces
mini versions of its products to consumers.
Like mentioned earlier, Apple came out with the iPad mini, an even more portable, user-
friendly product than the original one; making it more appealing to consumers. Therefore,
people are willing to pay premium price for a dependable product with multiple uses.
In a report done by Mintel about the sale of the iPad and other tablets, the selling trends
of the product will follow Apple’s pricing strategy; be sold at top price then slowly decrease the
price while the amount of items sold increases. For example, according to the report, in 2010
when the iPad first came out and then tablets from other companies followed, profitability,
overall, was about $6 billion. By 2017, it’s anticipated profitability will reach $16.5 billion. In
contrast, the average price of the tablet dropped on average, $50 from 2010 then $100 from
2011, and $66 more dollars the following year.
The conclusion can be drawn that if this trend continues it will not be just high-end
consumers that will be able to purchase the iPad and other tablets, but also middle and
possibly, working class people. Decreasing the price is certainly not hurting the profitability for
Apple or other companies. In fact, the charts prove profitability is increasing as the price
decreases.
Competitors
According to the Infographic Overview, Apple has the lead in selling the iPad with 50
percent of tablet owners having this product. The competitors to follow respectively have large
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15. disparity between Apple and other tablet makers, which include: Kindle, Galaxy, Nook, Nexus
and Microsoft Surface.
Despite the decrease in price in Apple’s iPad over the years, consumers still have to pay
the premium price for the tablet. It is this aspect of the product that competitors of the
company are honing in on to try and get consumers to buy their product instead.
For example, in Mintel’s report about Apple and its competitors’ marketing strategies
when trying to sell tablets, the report says, “Amazon [which sells the Kindle] often highlights
how it offers the exact same quality and performance as other products… most notably, the
iPad, a fact Amazon likes to emphasize” (Mintel 9).
The message from Kindle in this quote is trying to appeal to the consumers’ sensibility;
don’t pay more for a product that can be bought elsewhere for cheaper and as Amazon claims,
for the same exact quality. However, despite this marketing message used by Amazon and
other companies, Kindle only accounts, as mentioned earlier, for 24 percent overall tablet sells,
compared to Apple’s 50 percent.
According to the Infographic Overview, Galaxy sells 14 percent of tablets, Nook sells 10
percent, Nexus sells seven percent and Microsoft Surface sells 4 percent. Despite other
companies’ attacks on Apple’s ipad’s expensive price, it still has a comfortable lead in its tablet
sales.
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16. Promotional Tools
Television advertising has been discussed earlier, but there are other promotional tools
Apple uses to make its product known to consumers. For example, most of the videos found on
YouTube are tutorials on how the iPad works and how the consumer can utilize the product to
its fullest potential.
There are in generally three to four videos that make up one tutorial. Twitter provides
much of the same guidance for the consumer on how to utilize the iPad. The site has a products
page, which breaks down the uses of the iPad into different sections using buzz words such as,
“expand your experience”, “search faster, better”, “share more simply”, “discover something
new.” Apple’s in-store advertising techniques cater to the holidays, the idea that the product
can do anything and targets the education sector of the market.
For example, Google Images first in-store ad shows the iPad with an image of a heart on
it. The text says “there is more than one way to say I love you. Give iPad or iPad mini.” Because
of the red heart, this ad gives a clue that its timeliness is geared to Valentine’s Day, but
arguably, it could be used for any holiday.
The next in-store ad on Google Images shows the iPad displaying pictures of a rocket
going to the moon and a submarine going deep in the sea. Once again, sending the message to
the consumer that the product can be taken anywhere and do anything, almost as if it were
invincible in water and space.
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17. The last ad on Google Images shows a picture of the iPad with a picture of Steve Jobs
displayed on its screen and off to the side in text it says “the iPad has been a real game changer
in Education. No technology has impacted how the teachers teach and students learn more
quickly and more profoundly. With iPad, the possibilities are endless.” This ad is once more,
showing the various uses of the iPad while appealing to a major niche market; education.
On the iPad Facebook page it has an “About” section telling the reader about the history
of the product, its general features and uses. It has a picture of the iPad and at the bottom of it
says currently 8,483,862 people like this topic. The Facebook page shows the viewer how many
of their own friends have “liked” the iPad page. Toward the bottom it shows pictures of people
using the product and related pages.
Conclusion
Apple’s marketing techniques to advertise the iPad have proven to be an incredible
successful. The product has changed the way people are able to accomplish various tasks all on
one device. It is exciting to think what the next version of the Apple product will be and what
new innovating must-have tech product will be the next rage. How fast will the retail stores and
online businesses keep up with the consumer demand? Apple has proven over and again that it
does not disappoint the heightened anticipation.
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18. Works Cited
“Apple has launched a raft of initiatives to lure the education sector” Naish, Richard Bizmedia
Ltd. Sep 2013. ABI/INFORM via ProQuest accessed October 2013
“Apple Ecosystem Incomparable” Tsmc, Chairman Asia Pulse Pty Ltd. Oct. 11 2011.
ABN/INFORM via ProQuest accessed October 2013
Ashcroft, John, PhD BSc. “Apple from the iPod to the iPad. A case study in corporate strategy.”
CBIM, FRSA. Second Edition 2012. http://www.johnashcroft.co.uk accessed 0ctober 2013.
Mueller, Barbara. “Dynamics of International Advertising. Theoretical and Practical
Perspectives. (2011 Peter Lang Publishing Inc. NY, NY).
Tablets-US-July 2013: Marketing Strategies. Mintel. Accessed October 2013.
Tablets-US-July 2013: Infographic Overview. Mintel. Accessed October 2013.
Tablets-US-July 2013: Executive Summary. Mintel. Accessed October 2013.
Tablets-US-July 2013: Market Size. Mintel. Accessed October 2013.
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