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Marketing Strategy For The Apple Ipad 2

Paper Type: Free Essay Subject: Marketing
Wordcount: 1571 words Published: 4th May 2017

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A big question arises in everyone’s mind that why is Apple launching IPAD 2 in a quick span of time. As we know most of products follow a normal product life cycle which are accepted only by the early adopters and then slowly gain mainstream popularity but in case of apple Ipad this things doesn’t work as the product is getting to mainstream customers faster than anything.

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Steve Jobs is a master of demand and supply as he creates hysteria over new products launches. Recently his products are following a product life cycle of less than 12 months i.e. I phone 3GS to IPHONE 4 and now in July he is all set to launch I phone 5.Ipad 2 is prime example of Apple strategy. But the question in case of IPAD 2 question arises in everyone minds that if the product is doing well than what are the need of launching a new version of it.

In a recent article bbc.co.uk has unveils the mystery as hey mentioned that the market share of IPAD was declining as till September 2010 it accounted for 95% of the sales of tablet computer but at the end of December it declined to 75%(www.bbc.co.uk). The main reason for the decline of share was considered to be the launch of new tablet device which was mainly based on Google’s open source android system and other competitors have also began to appear i.e. Microsoft’s Windows 7 and HP’s WebOS(www.bbc.co.uk).

Customer-Value-Based Marketing Strategy

Marketing strategy has the ability to both create and deliver customer value. Marketing basic role lies in effective strategies that can differentiate its products from its rivals products(Laird,1997). The discussion mentioned below b will represent key areas which will relate Apple IPAD 2 marketing strategy that can be linked directly with customer value perceptions.

Product Development Strategy

According to Laird,(1997)”Firms have to make sure that the voice of the customer is being represented in the product development method”, In case of IPAD 2 firm have make sure about the requirements of the customers in product development. As we know that IPAD 1 was lagging behind in the some of the main features and customers were not happy with it and it can be seen by the decline in share as well. Apple in case of IPAD has changed its product life cycle to 12 months. Nagle.T and Holden.R,(1995) have stated that marketing has a major strategic role that would make sure that firms products are designed in a way that directly relates to customer value. In case of IPAD 2 the product development strategy is fulfilling the criteria as the product is designed on the basis of customer value.

Market Segmentation Strategy of IPAD 2

According to Kotler,(2006)”Market segmentation is a process of slicing a market for particular products or services into a number of different segments according to the purchasing behaviour and habit of customers so as to select and confirm the target market”. Market Segmentation should meet the following criteria i.e. geographic factors, psychological factors and behaviour factors. In case of Apple IPAD 2 ,it is able covers the diverse products with a new slim design, exterior performance and price which is analysed on the basis of demographic factors.

As far as physiological factors is concerned IPAD 2 has got the superiority as being the latest products and with if we compare it with marketing concept latest products are more popular among customers. In case of behaviour factors customer loyalty comes into picture. It is evident that Apple inc has got a market reputation in proving the best and innovative products and that is helping the firm in becoming market leader. I Pad 2 is a Apple product and other product of Apple will help it in the initial sales and in the later stage it will help the other products sales due to its unique features.

Apple IPAD 2 has got a big market segmentation but they have to be cautious about the measurability, availability of benefit, accessibility and diversity while subdividing the market.

Positioning Strategy

According to Czepil.J,(1998)”Positioning Strategy represent a firm decision of how and where it will use its distinctive value creating competencies to create competitive advantage. Trout.J,(1996) have given some key points on which sound positioning is based on i.e.

Recognizing the relevant value drivers,Assesing the qualified significance of the drivers in the consumers decision making procedures, Establishing a comparison with the rival products, maintain a focus on the information required by customer to take the purchase step.

In case of IPAD 2 key value drivers are its effective new features which company is promoting i.e. video calls,hdmi port, slim size,3G wireless system etc.Comapny has recognized the key value indicators and are strictly focus on these features and are trying to make it as its unique selling propositions. Firm has established a comparison with its rival products i.e. launch of Google open source android system and after the comparison I PAD 2 is been launched in the market as IPAD 1 was lagging behind it. Apple is known to be the market leader in innovative products and they know the trick of how they can inform the customer about their product. There was a massive news about the IPAD 2 in the initial stage then Steve Jobs unveils the product in a massive ceremony. Everything was covered by the world media even if you log on to apple website the first thing you will notice is the advertisement of IPAD 2.

Distribution Strategy of I PAD 2

After lying in the background for a significant period of time, Distribution strategy is being viewed as an important component of marketing strategies(Nagle.T and Holden.R,1995).I PAD 2 has smartly used reputed distribution strategies while forming alliances with the telecom service providers i.e. Vodafone,3 mobile etc.

Pricing Strategies of IPAD 2

According to Nagle.T and Holden.R,(1995)”The main aim of value based pricing strategies is to take advantage of the return to the company through price charged for the value created for the customer. Apple Inc has changed its pricing strategies with the launch of IPAD as the price was lower than what it was anticipated. The base model price is £429.00 for the 16GB, £499.00 for the 32GB and £599.00 for the 64GB model .It was quite much surprising for customer but there were some reasons for changing its pricing strategies i.e. Apple Inc don’t want to repeat the mistake they made while pricing I phone as it was launched at $599 and was forced to reduce it to $399 in two months and later to $199.With IPAD they are entering a new market and low pricing strategy can help them in revenue generation. In case of IPAD 2 the price will range from £399.00 for the 16GB, £479.00 for the 32GB and £559.00 for the 64GB.With IPAD 2 is following the same pricing strategies and its rival products are still priced high i.e. MOTOROAL XOOM etc.This approach will help Apple in having more competitive advantage.

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Target Marketing

According to Gummerson.E,1998)”Market targeting is the process of evaluation of each market segments, attractiveness and select one or more segments to enter”. A firm should select a market that has the potential for great opportunities. One of the important criteria of target marketing includes that rival firm haven’t got full control of the market yet. I PAD 2 is in line with the standard target market choice. It is evident that PC occupies the market but it be reaching its saturation level and customer are looking for something more innovative, I PAD 2 can easily be fitted in their criteria.

Gronross,C.(2006) stated that ” Strategically company can choose between three marketing strategies i.e. Undifferentiated Marketing, Differentiated Marketing and Concentrated Marketing. The factors which can influence the selection includes the strength of the firm, product homogeneity, market homogeneity and competitors target market strategy etc”.

Given that the product in computer industry are heterogeneous, so Apple should practice its marketing strategy in a differentiated approach. Although IPAD2 is a successful successor to IPAD 1,but there are success stories of other tablet PCs along with new entrant’s agree to stretch their market share. If Apple IPAD 2 practice a differentiated marketing approach they can successfully reach the various demands of the ever fascinating computer industry. Apple should engage innovative marketing strategies and target established geographic and demographics.


To conclude, I believe that the new version of the I Pad will be more popular among people who are older and are light or non-users of computers. It offers a very simplified and elegant user experience at an affordable price. The product is following differentiated marketing strategy so it takes advantage out of it. The new features included in the IPAD 2 will be its unique selling proposition. According to the current market circumstances Apple Inc frame and high quality services can bring in more market. As long as by innovation constantly, and can makes product more humanisation IPAD 2 future market will be bright.


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