1. How has apple developed extreme loyalty among consumers that has resulted in

Question

  

1. How has apple developed extreme loyalty among consumers that has resulted in an almost cult-like following?

2. Describe the role of Apple stores as an important part of its marketing strategy.

3. What will Apple need to do to maintain product innovation and customer loyalty?

2 Apple's Winning Marketing Strategy CASE Synopsis: Few companies have been able to master the arts of prodact innovation, a "cool" brand mage, and customer evangelisns like Apple. After nearly collapsing under a doud of bankraptcy in the mid-1990s, late Apple CEO Steve Jobs was alble to save the company he created chrough product innovaticn, a masterful marketing program entrepreseurial corporate culture. This case reviews Apple's history and remarkable cometack with an eye toward the e marketing strategies that created the company's case abo esamines many of the challenges faced by a company that continually pushes the boundaries of marketing practice to stay on top of the consumer electronics and computer industries innovation, marketing program, prestige pricing, coempetition, changing technology, customer loyalty, forein sourcing, intellectual property, privacy issues, corporate aulture, sustasinability ew companies can boast that they have fans that sleep outside its doors to be the first to snag its latest products, but such is the case wish Apple. Inc. In 2011, Apple surpassed Google to become the most valable global brand, with an estimated value of $153 billion. Headquartered in Cupertino, California, Apple has transformed itself from a company near hankrupkcy in 1997 (with a stock price of $3.30) to the world's most valuable coempany in 2012 (with a stock price of moee than $600). Many companies have tried to copy Apple's strategies, but none have reached the ?conic status of Apple and its products. Some believe that Apple's success stems from a combination of several factors, including the leadership qualities of late CEO Steve Jobs, a corporate culture of enthasiasm and innovation, and the revolationary products for which Apple has become known. While every organization must acquire resources and develop a basiness strafegy to pursue its objectives, Apple has excelled in both leadership and operations. One of the company's most important resources is its employees, and the company has effectively recruited, trained, and ployees to create loyalty. Another resource is suppliers, and Apple has created a highly efficient and effective sapply chain with most of its production in China. Apple has also mastered core research and development skills that have allowed the company to translate its technological capabilities into products that consumers want and are willing so pay a prenmium price to oblain. The capstone of is its retail stores that have become a role model for its competitors, Apple's strategy atdl lawrper herd. Ustversity of New Meskco prpared this ase undes thr drection of OC Ferredl for dasroon áscusion rather dhan to Mastrate eflecthve or ineffective handling of un dminstra O.c 327

Explanation / Answer

1. Apple has rightfully understood the approach to be followed to make the consumers, an addict fan of its products. Its marketing and products department has done appropriate research in understanding the marketing mix for Apple’s products. The launch of new products is done by creating an aura for the same, thus consumers keep waiting in anticipation for the launch. Apple products have also become synonymous of status symbol and feel proud of possessing it. This perception has been totally based on the years of good quality and innovative products offered by the company.

Another aspect, which has led to the fan base of the company, can be the aura of its late CEO and founder Steve Jobs. Jobs was a very charismatic leader and his charm had won the company, many followers.

Apple never takes its competition lightly. They keep a tap on the products of the competitors and accordingly it aims at maintaining its competitive advantage in the market. All these factors have led to the huge fan following and loyalty among consumers for its products.

2. Apple stores are designed with the objective of providing exceeding consumer experience to its customers. All Apple stores run with the philosophy of its founder, Steve Jobs that after sales service of the company must be outstanding so that the consumer experience must be enriching. The placement of Apple products in the store is strategically placed so that the accessories attract a consumer who comes to buy a parent product. Consumers also get the change to use the product in the stores, which helps them in making the purchase decision. The staff of the stores is given specific training to be able to treat the diverse consumers in the best possible way. So, the importance of Apple stores is quite critical for its marketing strategy.

3.To maintain product innovation and customer loyalty, Apple needs to keep coming up with innovative, yet quality products at frequent intervals. Its R&D cell and products department must be able to keep up with their research and product strategy and help Apple in maintaining its competitive edge. Its marketing department must be able to keep the consumers engaged and keep maintaining the aura of Apple products in the market.

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