At this point, it is necessary to develop a marketing campaign for such a product as the iPhone. We intend to target well-to-do people of both sexes whose age ranges between 20 and 40. Special attention should be given to the urban population. There are several reasons why this audience was chosen. First of all, this segment constitutes approximately 30 percent of the country’s total population (CIA, unpaged).
This market includes more than 50 million people and it grows at 1, 069 percent per year (CIA, unpaged). Thus, this statistical information suggests that this target audience will be extremely profitable. To some extent, this strategy is similar to those ones which Apple uses in the United States. The main difference is that American target market of Apple also can include children, adolescents, and elderly people.
We have narrowed down the target market for several reasons. Namely, children and adolescents are financially dependent on their parents and they can hardly make purchasing decisions on the own. The problem is that in Indonesia not every parent can buy an iPhone for his/her child or children. Furthermore, those people whose age ranges between 50 and 70, may not feel affiliated to Apple as a brand.
Another important issue is the psychological profile of this group. First, we need to speak about the needs and values of these people. They want to use product which can create extra value for them. Their main priority is the functionality of the smart phone. Certainly some of them can be price-sensitive, but they can afford older versions of iPhone. The second aspect is the lifestyles of this population. Overall, it is possible to say that many of them are self-actualizers and esteem-seekers who try to fulfill their potential and gain recognition of others. Therefore, such a product as iPhone can greatly appeal to them.
On the whole, these people have several distinguishing characteristics: financial independence, increasing demographic growth, awareness about the brand, and need for achievement and recognition. From psychological perspective, this marketing approach can be applicable to both Indonesia and the United States.
The positioning strategy will be mostly based on product differentiation. IPhone should be regarded as a product that offers customers more fulfilling experiences, namely, better Internet functionality, more user-friendly interface, improved management of multimedia files, and ability to install a variety of applications. Each of these characteristics can be of great importance to middle-aged working people.
Increased functionality of iPhone can help them pursue many of their interests, including creativity. Thus, this product can appeal to those customers who may be called self-actualizers. Another aspect of product differentiation is the design of this smart phone. For example, iPhone is one of the thinnest smart phones available on the market, and this feature can be of great importance to people seeking recognition and self-esteem. Therefore, the positioning statement can be summarized in the following way: iPhone is a unique combination of increased functionality, cutting edge, and reasonable price. Overall, one can argue that this positioning strategy can be applicable to the United States and Indonesia.
At this point, it is vital for us to discuss various elements of the marketing mix, or Four P’s as they are also known.
Apple can market each of iPhones representing several generations, for example iPhone 3GS, iPhone 4, and iPhone 4S. In this case, the main task is to make sure that these smart phones are affordable to people of various income levels. The thing is that some Indonesian people may not be able to buy iPhone 4S, however, iPhone 3GS can appeal to them. The second aspect is differentiation of the product.
As it has been said before, the emphasis must be placed on excellent design, functionality, and price. Thus, the main peculiarity of Indonesia market is that the company should also take into account price considerations of the customers. This is its key distinction from the US market.
At this point, it is rather difficult to determine the exact price of iPhone; the thing is that there are different versions of this smart phone. However, our recommendation is that the price should be within the range of $200 and $450. This strategy will ensure that this product will be accessible to a greater number of buyers. As a result, Apple will be able to increase their sales rate and establish a larger customer base in Indonesia.
The company should promote its product by means of advertising. The main communication channels will be such medial as television, billboards and printed press. Advertisements should underline such aspects as appealing design, functionality, and price. At the stage when this product wins the loyalty of the customers, it is quite possible to rely on word-of-mouth advertising.
The customers must be able to access the product in several ways. For example, it is quite advisable to open specialized Apple stores that will sell iPhones as well as other products manufactured by this company. The key rationale for this approach is that the company should target the ultimate users of the product rather than intermediaries such as retailing chains. The second distribution channel is the Internet. The buyers should be able to purchase iPhone via the website of the company. Thirdly, only a small proportion of the production units must go to retail stores.
Central Intelligence Agency. The World Factbook: Indonesia, 2009. Web.