Apple iWatch (new product launch)
The iWatch has two sets of prices. The 38mm model is cheaper in comparison with the 42 mm offering. The iWatch is more functional as the product provides the user with several utility services. It not only tells time but also offers different services such as making phone calls, provide fitness applications, checking in for a flight, and many more (Swider and Beavis, 2015). The tangible aspects of the product include its design in the form of having a sleek interface of the watch, in addition to two different watch sizes of 38mm and 42 mm. On the other hand, the intangible features of the product include its quality. It is impossible to match the quality of the products provided by the company. In addition, the iWatch works in tandem with the iPhones. The intangible attribute lies with the operating system of the Apple products, which cannot be matched by other rival companies that use other operating systems such as Android (for Samsung, its nearest market-share competitor) (Swider and Beavis, 2015).
The company uses three different direct marketing channels one of these is the Apple Online Store where the channels appears in the form of: Producer – Consumer. The second direct channel is using the different Apple Stores where only Apple Products are retailed directly to the consumer, which also takes the similar form of Producer – Consumer. The third direct marketing channels takes the form of strategic channel alliances where Apple products are sold in a store within a store. The indirect marketing channels take into consideration the wholesalers and retailers as marketing channels Producer- Wholesaler-Retailer-Consumer. In this case, the wholesaler and the retailer is the link between the producer and the consumer. The indirect sales uses online sales or catalog salesProducer Retailer Consumer.
Type of Consumer Offering
Products and services can be classified in different ways. Consumer offerings fall into four general classifications, which are specialty offerings, convenience offerings, shopping offerings and unsought offerings. The product offering in discussion, in particular, lies in the shopping offering category. This category is one in which the customers make considerable determination to make comparisons and choose a brand. In this case, the consumers are certain that there are dissimilarities between comparable shopping offerings and want to discover the right product or the best price. For instance, the consumers will compare the features and the prices of iWatch from Apple and the comparable product from Samsung. Centered in the new target market (that is the youth), this category of the offering would not change. This is because the youth use the internet and social media to determine the features, benefits and best prices of the product offering (Tanner and Raymond, 2015).
Product line extensions or new product development
The current product ought to be modified to more fully meet the needs of the new target market. It is well-known that the youth use their gadgets and devices extensively. One of the downsides of the Apple iWatch is that its battery does not last for as long as the consumers would want (Gibbs, 2015). Another downside is that not all youths are able to afford the iPhone 5 or iPhone 6 (Gibbs, 2015). Therefore, another modification would be to ensure that the product is able to function in tandem with other iPhone versions. These changes would not necessarily constitute a new product but rather a product line extension. For instance, the introduction of iWatch for iPhone 4 and iPhone 4s would effectively bridge the gap. The product line extension would allow the offering to occupy uncontested space in the perceptual map for the target market (Gibbs, 2015).
Product lifecycle comprises of Four stages: the introduction stage, growth stage, maturity stage and decline stage. As a product offering, the Apple iWatch is now in its growth stage. The product was introduced to the market at the start of the year. Now, the consumers already know the benefits of the product and are now purchasing the products. In turn, Apple Inc. perceives an increase in growth sales and the profits generated. The changes mentioned in the aforementioned section, would change the lifecycle stage (Pride et al., 2010). This is because the introduction of the other iPhone products such as iPhone 4 and iPhone 4s would take back the lifecycle stage to the introduction stage in the product lifecycle. This would mean the increase in capital and funds for the lifecycle marketing strategy (Pride et al., 2010). In particular, there would be need for advertisement and marketing funds to ensure that the consumers are aware of the new product extension in order to ensure sales (Pride et al., 2010).
Gibbs, S. (2015). Concerns raised over Apple Watch’s lack of theft protection. The Guardian. Retrieved November 11, 2015 from: http://www.theguardian.com/technology/2015/may/14/concerns-raised-over-apple-watch-lack-of-theft-protection
Pride, W., Hughes, R., Kapoor, J. (2010). Business. Ohio: South Western Cengage.
Swider, M., Beavis, G. (2015). Apple Watch review. Tech Radar. Retrieved November 11, 2015 from: http://www.techradar.com/reviews/wearables/apple-watch-1264567/review
Tanner, J. F., Raymond, M. A. (2015). Principles of Marketing: Types of Consumer Offerings. Retrieved November 11, 2015 from: http://catalog.flatworldknowledge.com/bookhub/reader/5229?e=fwk-133234-ch06_s02
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