Apple is one of the biggest companies in the world, which is known for its good quality. In the report the main headings will be The Company’s profile, The decision that Apple implemented, Pricing Decision, Alternative Pricing for Apple and Recommendation.
MISSION STATEMENTAs a leader in innovation, the mission statement of the Apple company should be equally innovative, inspiring and somewhat lofty, but officially and unofficially Apple’s mission is barely a mission at all.
Company Profile•Steve Jobs, Steve Wozniack, Ronald Wayne.•Apple was founded on 1st April 1976•They dealt with the sale of different electronics.
The decision that Apple implementedThe first factor that determines whether a product can be a costly or potentially costly-is the factor of demonstration. The most popular Apple products are just demonstrated to the category of goods – what to see, what they take with them: iPad, iPod, iPhone, MacBook. Thus the basic advertising of these products Apple was the “branding” that is not a denunciation specifications and the image of the holder. “You have Apple -, you are stylish, you’re cool, modern, trendy, you’re not like everyone else.”
Compared with its competitors, it does not offer anything other than possession of the device, though aesthetically and technically advanced, Apple has reached the level of the competition. Being stylish and cool like much, but in the possession of the device is not particularly outstanding beauties who can be loved, Apple’s products become a kind of social standard, the accessory that just has to be in every non-poor people.
In the pursuit of short-term profit performance and other vendors, the company is making the product “for the people”. Convenient products from Apple, their ergonomics as the “iron” and “software” are out of competition. To expand the range of products Apple, which are in the possession of a particular person, it may be the main reason.
The network effect.Becoming a consumer Apple, the person becomes a member of a huge network of people and services. Many companies now realize the advantages of creating a gaming community service and the content sales. But the example of the same with Nokia, which was unable to “roll” their service similar to ITunes, telling us : is primarily a brand and a network of loyal customers – a consequence of a strong brand. However, the network of Apple emerged even before the company in the mobile segment – the creative people around the world prefer products Apple, creating something like a private club.
A wide range of accessories.Apple Products is a leader in the number of possible accessories. This is again a consequence of product design and honed and approach to working with the “subcontractors” device that want to “spoil” and decorate. But this fact also adds appeal, though not the cause of brand strength in itself. Contact with a person-brand (brand personification).
Steve Jobs, active public relations themselves, their products and success became a cult persona during his lifetime. Product associated with the great man, always perceived “closer” than analog, beyond which there is a specific person. It is not surprising that the imagined or real “legacy” Jobs are beginning to exploit. Mainstream consumers do not need some kind of abstract bonuses, special features and content. He is interested in social evaluation in the first place. Super imposed on all other pleasant things. And the consumer pays to companies that give it to him. These factors led to decide what pricing decisions the company would set for their range of products. Pricing Decision
Apples pricing decision for the I-Phones was cost-plus pricing. Apple implemented that pricing decision to maximise profit. Cost-plus pricing is a method of setting prices in which the seller calculates all the cost of the production and add an amount to arrive at the selling price with profit. Apple’s aim is to have a maximum amount of profit with a good quality product, in order of that apple used price skimming strategy by introducing the product with a high price to meet the money which is spent of the cost of production.
Due to Apple having many competitors they had to use penetration pricing strategy to keep the prices low to compete with the other competitors and so that their product will succeed in the market. Alternative Pricing Decision For Apple
When Apple first introduced the iPhone they decided to price said product at a premium. In other words Apple applied a skimming price strategy to make up for the iPhone’s research and development expenses. Nevertheless at a later stage the introduced a penetration pricing strategy, over time Apple introduced new iPhones with more features and higher developed applications with lower or stable prices in order to keep their consumers loyal and still stay top in the market. However, an alternative to these strategies would be trial pricing.
Trial pricing is when a product or company introduces a product for a low rage price for a certain amount of time to attract attention and customers. The key aim of trial pricing is to gain the loyalty of customers to begin with and then consider revenue and profit after. In the case of Apple the only acceptable and beneficial substitute to free samples would be to offer certain products at a lower price to gain customer loyalty and/or interest.
1.Low cost for more Customers to introduce a new product.
2.To survive in the Market between the competitors.
4.Generate Profit and revenue in a fast period of time.
5.And recover it the Product itself by selling it expensive, when it settles in the market.