Marketing of High-Tech Products

Group 1

Apple Inc. : Price Strategy in India

Team
Aditi Samanta (21BM63025)
Soumajit Chail (21BM63057)
Pratyush Raj (21BM63037)
Akshunya Mishra (21BM63045)
Sougata Das Chakrabarty (21BM63166)
Soumyaneel Banik (21BM63165)
Q1 How does Apple’s typical customer or target consumer
in India differ from an Apple customer in North
America or a premium Samsung customer.
How does Apple’s typical customer or target consumer in India
differ from an Apple customer in North America or a premium
Samsung customer
• Apple's typical customer or target consumer in India differs from an Apple customer in North America or a premium Samsung
customer in several ways.
• Firstly, the average income of consumers in India is much lower than that of North America, which makes affordability a
significant factor for Indian consumers. As a result, Apple's target consumer in India is more likely to be someone who is
willing to pay a premium for quality and status but may not necessarily be able to afford Apple's top-of-the-line products.
• Secondly, in India, the majority of smartphone sales are dominated by Android devices, and Samsung is a popular brand
with a significant market share. In contrast, Apple has a higher market share in North America. Therefore, Apple's typical
customer in India is likely to be someone who is considering switching from an Android device to an iPhone, rather than
someone who is already an Apple customer.
• Thirdly, cultural differences also play a role in defining Apple's typical customer in India. For example, in India, there is a
strong emphasis on social status and prestige, and owning an Apple product is often seen as a symbol of success and
affluence. This is not necessarily the case in North America, where Apple's products are seen more as a status symbol for
tech enthusiasts.
• Overall, Apple's typical customer in India is someone who values quality and status but is also sensitive to price. They are
likely to be someone who is considering switching from an Android device to an iPhone and sees owning an Apple
product as a symbol of success and affluence. In contrast, an Apple customer in North America or a premium Samsung
customer may be more focused on the latest features and technological advancements, and less on the price.

4
 How is it promoted or advertised
• Apple promotes and advertises its products in India through various channels, including television, print media, online
advertising, and social media.
• Television is a popular medium for advertising in India, and Apple regularly airs commercials during prime-time slots.
These commercials often feature celebrities and showcase the latest features of Apple products.
• Print media, such as newspapers and magazines, are also used to advertise Apple products in India. The company often
runs full-page ads that highlight the features and benefits of its products.
• Online advertising is also a significant part of Apple's promotional strategy in India. The company invests heavily in
online advertising through various platforms, including Google, Facebook, and Instagram. These ads are targeted at
specific audiences based on demographics, interests, and behavior.
• Social media is also an important platform for promoting Apple products in India. The company has official accounts
on various social media platforms, including Twitter, Facebook, and Instagram, where it regularly shares updates,
product information, and engaging content. Apple also collaborates with influencers and bloggers to reach a wider
audience and generate buzz around its products.
• In addition to these channels, Apple also has a network of authorized resellers and service centers across India. These
stores provide customers with hands-on experience with Apple products and offer after-sales support.
• Overall, Apple uses a combination of traditional and digital marketing channels to promote its products in India, targeting
different segments of the population with relevant messaging and content.

5
Q2 Q: Why does Apple have a competitive
advantage over its competitors?
 • Apple has built a strong brand image over the years, thanks to its innovative and high-quality products
Strong brand • Consumers associate Apple with quality, innovation, and exclusivity, which gives the company a competitive edge.
image • Apple has been able to leverage its brand image to maintain a loyal customer base and command premium prices
for its products.

• Apple's products are known for their unique design and sleek appearance.
Unique product • The company's design language is instantly recognizable, and it helps differentiate Apple from its competitors.
design • Apple's products are designed to be intuitive and easy to use, which enhances the user experience and
strengthens customer loyalty.

• Apple's closed ecosystem, where all hardware and software are developed by the company, gives it a competitive
Closed advantage.
ecosystem • By tightly controlling the user experience, Apple can ensure high levels of quality across its products.
• The closed ecosystem also helps prevent compatibility issues, which can be a problem with open platforms.

• Apple's marketing strategies are highly effective in creating a perception of exclusivity and desirability around its
products.
Strong
• Apple's advertising campaigns are often visually stunning and emotionally impactful, which helps create an
marketing
emotional connection with consumers.
• Apple's marketing efforts have helped create a strong brand identity that resonates with customers
• Apple has an extensive distribution network that enables it to reach a wide range of customers.
Strong • This network includes its own retail stores, online channels, and partnerships with third-party retailers.
distribution • Apple's retail stores are often located in high-traffic areas and are designed to be visually stunning
network • The company's online channels also allow it to reach customers in remote areas or those who prefer to shop
online.
Q3
What are Apple’s pricing options for
the iPhone in the Indian market?
Q3: What are Apple’s pricing options for the iPhone in the Indian market?
Keeping Premium Prices Discriminatory Pricing

• Maintaining its global reputation of being a • Discriminatory Pricing Model

premium brand • Charge customers on the basis of their ability to pay
• Maintaining its exclusivity throughout the globe • Reducing Brand Premium
• Targeting only high end customers • Leveraging Economies of Scale with reduced prices
• Charging high Brand Premium justifying its inducing easier market entry to a broader base
existing image

Manufacturing excellence to reduce prices Partnerships and Offers, maintaining brand image
• Selling Old iPhone Models at lower Prices
• Focusing on Make in India
• Offering financing options to make purchase
• Eliminating heavy custom duties and taxes
available at monthly installments
• Focusing on manufacturing excellence and
• Partnering with telecom operators to offer
economies of scale to keep Cost of Production low
subsidized iPhones with post paid plans
• Premium quality at low price to a market sensitive
• Maintaining Brand Image but still selling to a
of Value for Money
broader base with multiple offers and partnerships
Q4 What should Apple do?
What should Strengths Weaknesses

Apple do? Third Can leverage Third Party’s local market Can be tough to enforce Quality
Apple should start with a Franchise Network Party and awareness and logistics + Get Continued Experience across all Stores + Can be
Franchise Revenue from Royalty/Margins from sales tough to understand the true demand +
of Stores. This will reduce the cost of + low cost option to start sales + can be difficult to convey brand image
Partners
operations, by leveraging the Third Party’s
local market awareness, while Apple can focus
on product Quality and build the Brand in the
new market. It is essential to have Offline
presence. As the product price is high and this All is good only when your website has
means that the customers' may want a touch reach and customers are using it. So the
Online Easy to start option + low cost + easy to
and feel experience to build product faith communicate brand message and image + question is how do you ensure traffic to
before spending. Business ability to track demand
your website + customers will want a
touch and feel experience for high priced
products, how do you ensure that?
Then as the product captures the market, it
can open its own Retail Offline+Online model.
The Offline store can cater to Apple loyalists to
provide a niche experience in line with the
brand communication. The Online store is the Costliest Option + how do you develop
Ability to control quality and store
Retail experience + develop and control value your logistics network + how do you plan
way of the world now, and it only makes sense to recover your costs when your product
for a high-tech product to be sold in an high- Store chain + provide premium experience + is still new + how to attract customers to
Network earn more revenue + build brand premium
tech online website. and image your shop
Q5 Can Apple succeed in India using its current
global premium pricing strategy?
 Because of India’s price-sensitive consumer base, Apple has struggled to gain a sizable market share with its premium
Price-sensitive pricing strategy. India is a diverse country with a large population and a rapidly growing economy. But, while the
but Growing
middle class is expanding, the majority of the population still falls in the low-income category. Therefore, there is a
Market
huge price-sensitive market in India that Apple cannot ignore if it wants to gain significant foothold in the country.

• To appeal to both premium and price-sensitive customers, Apple may use a differential pricing approach to target
Balancing different market segments. However, this could be dangerous because it could weaken Apple's exclusive and high-
Between end image, which the company has worked hard to cultivate over the years.
Brand Image • On the other hand, it might be a mistake to just concentrate on the premium market while completely
& Market disregarding the price-sensitive sector. Additionally, Apple faces fierce competition in India from other premium
Share smartphone manufacturers like Samsung and OnePlus, and if it ignores the price-sensitive market, it could lose
out on a growth potential.

• Therefore, it would be wise for Apple to adopt a hybrid strategy that balances its premium image with the needs
of price-sensitive consumers in India. Apple could consider launching a range of products specifically designed for
Hybrid the Indian market that are more affordable than its current offerings. These products could be priced
Strategy & competitively while still maintaining the high quality and exclusive features associated with the Apple brand.
Cost
Reduction • Apple could also consider partnering with local distributors or retailers to reduce the cost of distribution and
make its products more accessible to price-sensitive consumers. The company could also offer financing options
or installment plans to make its products more affordable for consumers with lower incomes.
Thank You