Executive Summary
This case study provides insights into Apple’s market strategy for their Apple IPad products that launched in 2011. It also provides an assessment of the Indian market and how it reacted to the launching of Apple’s IPad. Other tablet models that were in competition for market entry are also explained to provide comparison amongst the launching of the tablets and the make and models.
Introduction
Founded in 1976 by Steve Jobs, Apple has since then positioned themselves as the leading brands in phones and PCs. Over the course of the years, tablets started to become relatively popular, and Apple was able to hone in and launch their first IPad. They were able to garner 83 percent market share in the first year in the global tablet market. Apple IPad was one of the fastest products to cross $1 billion revenue. When Apple IPad2 entered the market, it attracted more consumers and provided more revenue for Apple due to its new sleek image. The IPad 2 was 33 percent thinner and 15 percent lighter than the original, and was to be sold in the Indian market at the same price as the first IPad that launched. Apple’s target market was also diverse in that it attracted college students, average consumers and professionals.
The Indian Market for Tablets
India is an emerging market that is growing fast in economy and population. In 2011, tablets started to become very popular within the nation. Samsung was the first to take advantage of the market in India, which led to acquire 45.8 per cent share of the country’s 158,000 media tablets that were sold within first 9 months of the launch. Followed by Samsung was research in Motion (RIM) Playbook who held a 21 percent share. Apple was a late entrant, and held 18.4 percent.
Strengths
Apple’s strength within the market stemmed from their product strategy. They used a limited option approach when it came to providing choices for its customers. With the limited options approach, they wanted to keep consumer’s minds from being beleaguered and indecisive. They kept their line of products mininmal , and when it came to the iPod, iPhone and IPad, the number of modifications provided was limited as well.
Another strength that IPad possessed was their marketing strategy which forced usage through its application in various sectors. The iPad 2 was beneficial in that it had a broader target market, from business professionals, to college students. It made its occurrence felt with the wide range of industries which includes education, entertainment, sports, research and travel. Examples of applications it came with was the Blomberg Finance App, University of Cambridge App, ESPN Cricinfo App, and Reel Cinemas UAE App.
Weaknesses
Apple was a worldwide leader for tablets, but they had lost that position in the Indian markets to Samsung. Apple didn’t fully understand the Indian market, and also underestimated their potential. By the end of 2011, RIM’s Playbook had also surpassed them in market share figures in India. The Sequence of Launches can be shown in Exhibit 2. Apple launched their Apple iPad in April, and waited nine months to launch in India. They had the biggest gap of launching their product in India and the US, compared to the other tablets. Samsung managed to launch their Samsung Galaxy Tablet in both India and US in November. In addition, they launched the dual camera, and took advantage of the many drawbacks that Apple had missed.
Another weakness was that Apple’s Distribution Chain was not in line with the Indian market. Apple was able to set their products in third party dealer stores, hypermarkets, service providers and licensed iStores. Comparatively, the Indian market had very limited options to purchase the iPad. Their channels were very few. It was also difficult for retail stores to handle enquiries due to lack of stock and untrained staff. Lastly, the Indian market was very price sensitive, they were looking forward to owing devices at a low value with high quality.
Recommendations
One recommendation for Apple shifting gears within the Indian market would be to introduce new products with lower prices. Since consumers in India are still price sensitive, it may attract more consumers into buying the IPads, which in turn will increase their sales and revenues. Cutting the price may tarnish the brand’s image, so another solution would be to hold longer sales to build excitement amongst consumers, and attract clientele.
Another strategy that Apple can adopt is setting up Apple Stores in India, and training employees on the processes of Apple. With an expansion of Apple stores in India and trained staff, this can push Apple products out to consumers, and provide consumers the Apple experience. In addition, setting up more stores in different parts of the city will position Apple in front of more potential consumers.
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