Market Segmentation of iPhone
Fifteen years ago, all of us were using phones. But then, as the spread of Apple began wider and wider, most of us are using iPhones. And let us be truly honest here: how often have you said ‘oh, let me pick up my iPhone pretty quick’ instead of saying phone? Exactly, that’s what I thought. That is because this product has gained was too much respect and recognition among all age groups of people. Most people in one room are basically iPhone users. So, that diving deeper into this brand’s marketing strategies to understand its hidden secrets would be a good idea.
First and foremost, we are going to take a look at the segmentation strategy of iPhone.
This short video is going to be our guide for that.
This is an advertisement for iPhone 13, a recent addition to the iPhone family. Right off the bat, we can clearly sense that the video is addicting which suits the branding of the company pretty well. The music they chose for the video, the theme, the short storyline, and everything keep people watching.
It starts when we see a mailman getting ready to deliver his packages of the day. He is our main character. He gets outside, gets a ray of sunshine on his face and gets ready to conquer the world.
The additional touch is him getting out his iPhone 13 from his pocket, the tool that is going to be his guide throughout the journey. And that is the first feature that we see about the phone. Without a GPS, most of us would not be able to survive these days.
We can see that it is raining, but that is not a reason for our character to hold back. Rain is a beauty in nature. But to add up to that, the new iPhone is water-resistant. Walking in the rain or driving a motorcycle while it is raining should not be a problem.
The narrow roads, and dangerous driving are some other barriers that the character faces while doing his job. He delivers the packages to everybody with no difficulties.
Even if some random car’s careless driving causes the character to be soaked in mud, he is still alright. This is where we see the second amazing feature of the phone. The iPhone has a ceramic shield. The latter prevents your mobile from facing certain risks after drops.
Then we observe the monumental camera quality of the iPhone 13. Again, this feature is shown to us while telling us something about the character. He looks like he is in a motorcycle park having fun performing all his delightful tricks. The phone has a cinematic mode which assures you to have the best quality videos to ever exist.
He continues his job while taking on some dangerous roles. For example, he jumps from the sidewalk to the main road with his motorcycle. And then he continues driving pretty fast. You guessed it, that is supposed to hint at another feature, the superfast network, and wifi.
Even after his long workday, the battery of the phone is still alive. So he can go meet up with some friends and be entertained for the rest of the night.
Speaking of the night, this phone also allows you to take photos and videos with the night mode on. The qualities of those will still be amazing because this is a thoroughly designed feature.
The video ends with another risky trick with the motorcycle, and then we get a zoom out of the city. That leaves the rest of the adventures to our imagination.
The most obvious hint that we get from this video is the constant obsession with risk-taking. We see it multiple times through the ad when the character speeds, rides through questionable and dangerous roads, etc.
Then, we can clearly gather that it is important for our character to enjoy his day. Whether that satisfaction is accompanied by work, the latest digital devices, or friends, it is an important aspect of life.
And lastly, he is pretty much using the newest product that has just come out. He is staying on top of trends, and the contemporary world. All of that because he is supposed to be standing out in the crowd.
So, what can we infer?
Clearly, the segment that iPhone has chosen to target is Hedonists.
What do we know about this segment?
Lifestyle and values:
Life is short, and no one really knows how short it is. Therefore, it is important that every day is filled with as much adventure and enjoyment as possible. Hedonists tend to do crazy stuff to make their life entertaining.
For example, let’s say you are at a concert with a Hedonist. They could potentially jump on the stage and show themselves off in front of everyone.
This segment is incredibly sociable. They are always around bigger groups of people performing all sorts of activities. Their interests really do vary. They can go to a bar one minute, and the next minute you will see them in a shopping center.
On rare occasions, Hedonists will invite some of their friends over to their house. Again, they have to entertain themselves somehow. So they could, for instance, watch a football game and have a beer or two with some crunchy chips.
Hedonists are fine with challenges. If they feel even the slightest bit of boredom, they will make impulsive decisions. Those could be changing a job, a school, and even friends and relationship partners. This is practically the main reason why relationships for this segment are not very long-lasting.
Hedonists will quite often go out to new places and introduce themselves to new people. This is again due to their enthusiasm, interest, and quick tendency to get bored.
Whenever this segment does the shopping, they either buy clothes or any gadgets that are trendy at that moment. Their budget may be low, but you will never be able to tell.
Hedonists deeply care about their appearance. It is one of the most important aspects of their lives. They have to stay up-to-date with the latest fashion. This makes them look unique, original, and eye-catching. Also, looking good is a sign of well-being, which is another thing that Hedonists consider. If Hedonists diet to lose weight, they do so for their look, not for health purposes.
The main motivation of work for Hedonists is money. They like to have everything under control at work.
Hedonists have a stereotypical ‘macho’ mindset. “If you are drinking, then you better get drunk.” “If you are a woman, stay at home.” “If you are a man, you should not cry.”
Among all this hectic lifestyle, family falls at the bottom of Hedonists’ priority list. However, every once in a while, Hedonists may share a meal with family.
Attitude to shopping
Hedonists mostly go for mainstream brands. In their minds, mainstream brands better the image of the person.
Here and there, Hedonists will purchase authentic goods. But honestly, they do it for showing off again. They want to show their gratitude for genuine things to get noticed in the crowd.
Putting quantity over quality is not an exclusion from Hedonists’ shopping behavior.
Hedonists are impulsive shoppers. They are not the kind of people who plan their shopping trips.
Sometimes Hedonists will utilize domestic brands. However, that is only when those goods are in fashion.
This segment loves visiting small shops, but they will still spend a good amount of time finding the best possible items.
Interesting facts about Hedonists:
Hedonists
- hang out with friends a lot
- really like large dance clubs with the big crowd
- often go to pubs, bars, cafes, cinema
- watch the latest films whenever possible
- attend exhibitions of their interest
- love cars and motor shows
- occasionally play lottery
- are not really keen on media consumption
- media is essentially for entertainment
- are average users of magazines
- sometimes watch TV, only the mainstream channels
- use the internet to communicate and make life more interesting
- also, use the internet for online shopping
- are below average radio listeners
Now, let’s talk about the positioning plan of iPhone.
Brand positioning is one of the most important aspects of marketing. Promotion and advertising provide the possibility of a correct brand positioning. The key components to brand positioning are brand identity, the brand’s elements, product, and communication.
Now, it is our goal to understand the positioning of Apple.
From the consumer’s perspective, positioning is the emotional connection with a brand. Apple has done a great job at turning this into a strong bond. The brand continuously travels to the mind of the consumer. Apple always comes up with new products that are improved versions of the previous ones. Apple’s products always incorporate modification, design, and creativity.
Of course, the fact alone that Apple is a luxury brand provides a powerful emotional bond with its consumers.
The brand identity of Apple is outstanding by all means. The brand’s values, Tagline, wonderful employees, etc., are all little components that have made Apple what it is today.
The products of apple have been different since the beginning. For example, Apple Macintosh was the initial private computer with a mouse and a graphical interface.
Apple always makes sure to incorporate creative and innovative thought-process behind making every new product. And that is one of the main reasons why this brand is so highly demanded.
Have you ever heard the phrase “More is less”? Well, that is what Apple goes by when it comes to its advertisements. Apple always makes simple ads with less color, straightforward message conveyance, etc. That is another thing that has attracted so many customers throughout the years.
Lastly, we are going to analyze the Marketing Mix of iPhone.
A marketing mix looks at a company from a business point of view while considering four factors. Those are product, pricing, place, and promotion. As all of those start with a ‘P,’ you can also refer to Marketing Mix with 4Ps.
Now, let’s look at those components one by one.
Product:
Every year, iPhone makes a new product. While it would be predictable to assume that the old products start getting profits, it would be a wrong opinion. As the prices of the older products get lower, a whole other consumer segment enters the picture.
Every feature in every phone is well-thought-out. Even the app store is demanding. It includes innovative apps. A lot of those apps join your iPhone with your MacBook. As a result, Apple makes sure that all of its products gain the same amount of recognition, as they are pretty much interconnected.
At the moment, iPhone suggests a 5G connection, super retina displays, etc.
Pricing:
iPhone goes by a price skimming strategy.
What does a skimming strategy mean exactly?
The company puts a lot of money into its R&D and the X-factor to sell more products at higher prices.
As Apple is a luxury brand, it does not typically offer discounts. The consumer number keeps growing and growing. So we can see how the target segment is perfectly fine with the pricing.
Apple works hard to make products that will make the experiences of the consumers worthwhile. Thus, the high pricing of iPhones is just right if we consider all aspects of making those phones.
Place:
iPhone has a strong distribution channel. These phones are sold in I-stores, independent stores, online, second-hand markets, and after-sales.
I-stores are the ones where only Apple products are sold. The employees there are highly intelligent and provide customers with the best service. They make sure that consumers leave the store in a great mood.
Independent stores are pretty similar to premium stores. The only difference is that they buy the goods from distributors and not the company.
iPhones are available on lots of websites ranging from eBay, Amazon, etc. Lots of people find more convenience in purchasing luxurious items from the comfort of their homes.
eBay is also a second-hand market. Second-hand markets ensure a product’s durability and better use after one person is done with it.
And, of course, after-sales services are another way iPhone sells its products.
Promotion:
Whenever iPhone comes out with a new product, the latter is going to have a catchy tagline. That is the first thing that iPhone does correctly with promoting its brand.
The advertisements that iPhone puts out there are never about bringing other brands down. Instead, those are about the monumentalities that come with every new product.
The company also benefits from its correct usage of Social Media, YouTube, etc.
Currently, iPhone is not facing any major competition. The reason behind that is its loyal consumer base.
Ultimately, this blog helped us understand all the hype about iPhone. Yes, it is a luxurious brand, and the products it makes are pretty expensive. The company works on every detail to make the consumer experience as amazing as possible. Thus, thinking about it justifies the price. For more fun, interesting, and why not even educational blogs like this, do make sure to check out our main website. We quite regularly come up with new blogs, so stay tuned!
