Internal Analysis on Marketing Communication

Requirement

This assignment builds on the learning materials, activities, and discussions in Module 2 and on your first assignment. You will begin by preparing a situation analysis of the marketplace for your brand, and then use this analysis to describe its target market, and to identify the most promising segment in this market as your primary target segment. You will include the data-driven communication audit for your brand and your recommendations for improving the use of data-driven communication. By using this data, you will be ready to conduct a SWOT Analysis. From your prioritized SWOT, you will develop your integrated marketing communication objectives for the IMC plan.

Solution

Marketplace Situational Analysis
Internal Analysis

Strengths and weaknesses of the Apple iPhone 8 Plus

•    What are key attribute and benefits?
Apple iPhone 8 Plus is a revolutionary product in the field of smart phones. It is an amalgamation of design, style, innovation, and technology. With a smooth user interface and with a sleek design the Apple iPhone 8 Plus has been launched to capture the markets worldwide. 

•    Are the package and label consistent with brand Image? 
The package and label of the product is consistent with its brand image. The Space Gray iPhone 8 Plus comes in a dark gray box and the box contains the photo of the shiny back casing of the black iPhone, which makes it stand out. The elite design of the box and the color combination goes quite well with the brand image. Apple’s attention to details in making the box should be appreciated and its alignment with the product’s brand image should be applauded.
IMC and promotional organization and its capabilities
It is quite essential for Apple to spread and promote the brand message and guarantees to the target market segment with a specific end goal only to draw in the attention of the target customer segment. Integrated Market Communication (IMC) is an effective way that is used by companies to promote their brand image and their brand message among the stakeholders through the process of choosing the right media channel and the right promotional way including advertisement, newspaper advertisement, digital advertisement, sales promotion, etc. 

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The media used by the Apple iPhone 8 Plus are: 

  1. •    Advertisements to show the features of iPhone 8 Plus

  2. •    Sales Promotion like exchange offer, tie with network service providers

  3. •    Social Media like Facebook, Twitter, Pinterest and YouTube,

  4. •    Recently Apple-Reliance partners up with Jio offering seventy per cent buyback on Apple’s iPhone 8 and iPhone 8 Plus. 

  5. •    Apple resorts to a standard promotional tactic. It must be noted that a small group of hand-picked publications receive products before other publications and as usual “Apple distributed new iPhones to select technology and mainstream media outlets to allow them to publish reviews before the phones went on sale” (Comcowich, 2017).

  6. •    As a part of its CSR efforts, Apple has launched Apple Supplier EHS Academy, “an 18-month program that aims to improve employee health and safety in the industry throughout the globe” (Codelaxy Ltd., 2016).

•    Organization of promotional department: 
TBWA/Media Arts Lab has unveiled a set of advertisements for the iPhone promoting the range of applications available on the phone, but Apple has used several other companies to promote its product and to advertise on its behalf both online and offline.
•    Capability of Firm:
Apple has eyed for the South Asian emerging markets and its distribution partner Redington India have been preparing to make the sale out of any of the 3,000 stores Apple has across the country (Gadgets 360, 2017). The iPhone 8 Plus offers wireless inductive charging and customers willing to make use of the wireless charging have to separately purchase QI charging mats from Belkin and Mophie from the company’s website and stores (Gadgets 360, 2017). 
Previous IMC and promotional programs
Apple introduced iPhone 8 Plus in the market and the IMC techniques used by iPhone 8 Plus are: The IMC techniques were used by the Tide were

  1. •    Advertisements showing the innovative technology of iPhone 8 Plus. 

  2. •    Public relation through newspaper ads and social media promotion and advertising. 

  3. •    Celebrity endorsement of the product. 

  4. •    Multimedia Campaign featuring celebrities so that common consumers grow an urge to buy the product.  

BRAND IMAGE

Brand image is the perception of the customers about the brand. It can be defined as “a unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a specific brand” (Alam et al., 2011). Moreover, it must be noted that “Brand image is nothing but an organization’s character. It is an accumulation of contact and observation by people external to an organization. it should highlight an organization’s mission and vision to all” (Alam et al., 2011). 

iPhone 8 Plus is a luxury smartphone brand which is produced for particular customer segments. It is particularly popular among a wide array of demographics. The brand image of iPhone 8 Plus has been found to be strong amongst consumers by testing the strength, favourable and uniqueness of those associations (Alam et al., 2011). The differences in responses correlated with whether or not consumers use or do not use iPhone 8 Plus.  Apple’s iPhone 8 Plus has an overall high brand equity. The brand awareness of the product is quite high and this means consumers are very much familiar with the iPhone. This is due to “high awareness depth and breadth: strong brand recall and recognition exists amongst all respondents, which is indicated by the ease by which consumerscan retrieved iPhone from memory, as well as identity the iPhone and discuss its attributes and benefits. I addition, consumers connect the iPhone to a wide range of purchase situations and consumptions possibilities” (Alam et al., 2011).  With a stronger brand image, consumers perceive iPhone 8 Plus to be an innovative and luxury product which is technologically sophisticated and socially standardized for the upper reach. It is easy to use for tech-savvy individuals, but sometimes its affordability matter to a large extent making the purchase confined to particular customer segments. 

External Analysis

Customer Behaviour Analysis:
•    Who buys the product?

Smartphone buyers who are interested more in performance and innovation would be buying iPhone 8 Plus. Performance would be the benchmark when it would come to the purchasing decision of iPhone 8 Plus. Consumers who are lovers of super responsive UI will be more eager to buy the product. It would also be a great purchase for smartphone game lovers and for those who wants to do multitasking. It must be noted that iPhone 8 Plus’ “A11 Bionic is the fastest chip in smartphones, and delivers advanced new Neural Net capabilities demonstrated in its Face ID and other face mapping apps that apply augmented reality to enhancing live images” (Dilger, 2017). 

•    Who makes the decision to buy the product?
Generally, gadget savvy male members in the family buy the product.
 
•    Who influence the decision to buy the product?
The Person who influences the decision is basically responsible to usher technological innovation into the family sphere. He/she is also responsible for spreading and expanding the use of innovative telecommunication technology to the professional sphere. 

•    How is the purchase decision made?
Purchase of smartphones depends on several different factors. Some might buy the phone for its innovative nature and some might buy it to raise the social status. Some other might buy the iPhone 8 Plus for its super features that are conducive to multitasking while some others will just buy the product for self-appeasement and self-satisfaction. Some others might buy the product to stay ahead of others in the competition of possessing highly innovative telecommunication devices. 

•    Why do customer buy a particular brand?
There are certain reasons why customers buy a particular brand. To satisfy their certain levels of need, customers buy a particular brand. Customers buy a particular brand to experience the peace of mind. They might purchase a particular brand to save the time in decision-making. People might purchase a particular brand being status conscious and they might buy a particular brand to make a difference. Some others might buy a particular brand considering its value as well as its safety features. Apple iPhone 8 Plus is a brand that provides customers with almost all the factors that are necessary to appeal to their senses and rationality including reliability, innovation, style, design, technology, etc. 

 •   Where do they go, or look to buy the product?
Going by its popularity, iPhone 8 Plus is purchased online over several online sites and people also purchase the smartphone from Apple stores and other smartphone stores. Some of the online platforms from which customers might purchase iPhone 8 Plus are Amazon, Flipkart, Snapdeal, etc.
 
•    When do they buy? Any seasonality factors?
Though there is no seasonality factor in terms of purchasing iPhone 8 Plus; people tend to buy the product on occasions and in festival times. But it must be noted that the product is of great value in terms of multitasking and hence, it is needed on a regular basis. That is one reason why there is no particular seasonal choice on the part of the customers when it comes to purchase iPhone 8 Plus. 

•    What are customer’s attitude towards the product?
The customer’s attitude towards iPhone 8 Plus is quite positive. User feedback depicts that customers are quite satisfied with their iPhone 8 Plus and with the device’s features and functions. Most of the customers who were asked about their experience with the smartphone rated the iPhone 8 Plus with 5 star. 

•    What social factors influence the purchase decision? 
There are certain social factors that influence the purchase decision. Family, social status, reference groups – these three social factors influence the purchase decision in a thorough manner. It has been already discussed that family members render influence on the purchase decision of an individual and moreover, the status consciousness is yet another factor that motivates individuals to buy costly smartphones like iPhone 8 Plus. Moreover, references groups also render influence on the purchaser’s decision-making process either motivating or de-motivating her to purchase the concerned object. 

•    Do the customer’s lifestyles influence their purchase decision?
Yes, customer lifestyle is an important aspect in terms of making a purchase decision. It all depends on customer’s social status, product involvement and self-image.

•    Does demographic factor influence the purchase decision?
Yes, the demographic factors also influence the purchaser’s decision to purchase. These factors encompass ethnic factors social class, income factors, education factors, and occupation. 
Competitive Analysis:

•    Who are the direct competitors?
The direct competitors of iPhone 8 Plus are:

  1. •    Samsung S8 Plus 

  2. •    Google Pixel 2 XL

•    What key benefits and positioning are used by our competitors? 

  1. •    Samsung S8 Plus: The launching of Samsung S8 Plus unveiled the Company’s strong market positioning strategy. It must be noted that “Because of the company’s extensive range of not only consumer tech products, such as smartphones, tablets, wearables and PCs, but also TVs and other consumer electronincs, along with white goods like connected appliances. Samsung is uniquely positioned to deliver the most comprehensive connected hardware (and connected home) story of almost any company in the world” (O’Donnell, 2017). 

  2. •    Google Pixel 2 XL: The Google Pixel 2 XL has been perfectly positioned in the market. The primary advantage that the Pixel 2 XL has is its unique design and shape. In a phase where Android smartphones have become a homogeneous sea of sameness, the uniqueness of Pixel’s design has given the smartphone an upper hand in the market. 

•    What is our position relative to competition?
The Apple iPhone 8 Plus has been dominating the market and it has positioned well in the market, particularly in the American and South Asian markets. Market surveys show that “the latest iPhone trio dominated the global top-selling smartphone board in November 2017. Similarly, a CIRP study claims that the 2017 iPhone line captured 61 percent of the total Apple iPhone market in the US in the fourth quarter” (Singh, 2018). 

•    What promotion strategies are competitors using?
The promotion strategies used by Samsung S8 Plus and Google Pixel 2 XL are almost same such as advertisements, social media, public relations through prints and newspaper, sponsorships, media release and community programs. 

Environment Analysis:

With time and technology market trends are changing in the field of smartphones. The emerging marketing trends are: 

•    Market Initiative: Market initiative is basically the marketing effort of the company to bring awareness to the consumers about the actual product, its characteristic features, its benefits, and its value. The Company that succeeds in initiating the market invasion acquires more customers.

•    Online Retail: Online purchasing is one of the fastest growing distribution channels. People prefer to buy online because it is a convenient and cost effective process of buying smartphones online. There are greater options and there is also advantage of home delivery. Moreover, discounts are also there in respect of purchasing online, and hence, purchasing smartphones from online stores is the now one of the most dominating trends. 

Marketing Mix

  1. •    Product: The product that I chose is Apple iPhone 8 Plus that belongs to the smartphone category and has been dominating the market since its inception. 

  2. •    Price: As per pricing strategy of Apple, iPhone 8 Plus is available at $799.

  3. •     Place: The product is available in Apple stores, in online marketing platforms, in big electronic stores, in Apple stores at super malls, etc. 

  4. •    Promotion: Advertising campaign focusing ease-of-feature, social media campaigning, sales promotion like incentives, public relation and personal selling.

Part 3: Swot Analysis
STRENGTHS

  1. •    Brand equity: For its brand equity, Apple has remained as one of the top most companies of the world. Its iPhone is a brand with a promise. 

  2. •    Tag of innovation: Innovation has always been the hallmark for Apple iPhone and the Company is responsible for many tech revolutions (Bhasin, 2018). 

  3. •    Consumer loyalty: iPhone consumers are thoroughly loyal to the product and to the brand. The brand loyalty of Apple iPhone can be compared with the brand loyalty of Harley Davidson (Bhasin, 2018). 

  4. •    Amazing software and operating system (OS): Apple’s operating system IOS is a renowned, appreciated and respected mobile platform that gives iPhone its remarkable technology, speed and flexibility. The great user interface of iPhone 8 Plus should also be considered as an added strength. 

  5. •    “Wide developer support/control in the hands of users” (Bhasin, 2018). 

  6. •    Design consistency

WEAKNESS

  • High price: Apple iPhone 8 Plus is costlier than its direct competitors like Samsung and Google Pixel even though all the smartphones have almost the same features. 

  • Limitations: Non-removable battery and monotonous design should be considered as two greatest weaknesses of iPhone 8 plus.

OPPORTUNITIES

  1. •    There is a market potential for smartphones and in such a phase the iPhone 8 Plus would thrive well. 

  2. •    Continued technological advancement gives the iPhone 8 Plus the competitive edge that would help the brand in keeping its hold on the market for long. 

  3. •    More dependency on digitization would make the iPhone 8 Plus more appealing to the consumers. 

  4. •    Apple iPhone 8 Plus is expanding globally and this geographic expansion is going to provide higher opportunity for market hold to Apple’s most popular brand. 

THREATS

  1. •    Android: The Android operating system is the greatest threat to the operating system of Apple iPhone 8 plus. Free access to android makes the threat even grimmer. 

  2. •    Samsung is yet another threat to Apple iPhone because Samsung has a large arsenal of smartphones coming in all shapes, sizes and varities (unlike the monotony in iPhone’s design). 

  3. •    Lack of innovation. 

Part 4: IMC Objectives

•    IMC objectives to guide the development of your IMC plan

Based on the SWOT analysis, the three objectives for developing IMC plan are

  1. •    Affordability among customers in both urban and rural areas. 

  2. •    Ability to lower the price.

  3. •    Bringing along innovation. 

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References 

  • Alam, S.M.M., Hasan, M., Mostafa, M.G., Ali, M.M., Datta, P., & Zaman, S. (2011). Brand Image and Brand Positioning of iPhone. Retrieved January 31, 2018, from https://www.scribd.com/doc/52132994/CB-Brand-Image-and-Brand-positioning-of-iphone

  • Bhasin, H. (2018). SWOT analysis of Apple IPhone. Retrieved January 31, 2018, from https://www.marketing91.com/swot-analysis-apple-iphone/

  • Codelaxy Ltd. (2016). Corporate Social Responsibility of Apple. Retrieved January 31, from https://www.slideshare.net/CodelaxyLtd/corporate-social-responsibility-of-apple

  • Comcowich, W. (2017). The Genius of Apple’s iPhone X Public Relations Strategy. Retrieved January 31, 2018, from https://glean.info/genius-apples-iphone-x-public-relations-strategy/

  • Dilger, D.E. (2017). Editorial: who will buy iPhone 8? Retrieved January 31, 2018, from http://appleinsider.com/articles/17/09/20/editorial-who-will-buy-iphone-8

  • Gadgets 360 (2017). iPhone 8, iPhone 8 Plus India Pre-Orders Begin September 22, Distribution Partner Says. Retrieved January 31, 2018, from

  • https://gadgets.ndtv.com/mobiles/news/iphone-8-iphone-8-plus-india-pre-orders-begin-september-22-distribution-partner-says-1749904

  • O’Donnell, B. (2017). With its Galaxy S8, Samsung is building a powerful platform without an OS. Retrieved January 31, 2018, from https://www.recode.net/2017/4/5/15195042/samsung-s8-galaxy-smartphone-platform-os-metaplatform-bixby-assistant

  • Singh, J. (2018). iPhone X, iPhone 8, iPhone 8 Plus Dominate Global Smartphone Market: Counterpoint. Retrieved January 31, 2018, from https://gadgets.ndtv.com/mobiles/news/iphone-8-plus-x-market-domination-counterpoint-research-cirp-1803569

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