I PHONE A DVERTISING
S TRATEGY A NALYSIS
By - Liang Liu
February 10, 2011
[IPHONE ADVERTISING STRATEGY ANALYSIS]
February 18, 2011
Table of Contents
EXECUTIVE SUMMARY
MARKET ANALYSIS
............................................................................ 2
.................................................................................... 3
Property & Target ....................................................................................................... 3
Price ........................................................................................................................... 4
ADVERTISING STRATEGY ANALYSIS ......................................... 5
Common Method (Digital Marketing) ........................................................................... 5

Pull ...................................................................................................................... 5

Push .................................................................................................................... 5
Unique Strategy ........................................................................................................... 6

Cooperate with mobile companies ....................................................................... 6

Provide platform with apps................................................................................... 6

Story like ads ....................................................................................................... 6

International Launch ............................................................................................ 7

Good Will ............................................................................................................. 7
Method could be imitated ............................................................................................. 8

Promoting Events ................................................................................................ 8

Develop Slogan ................................................................................................... 8
1
[IPHONE ADVERTISING STRATEGY ANALYSIS]
February 18, 2011
IPHONE ADVERTISING STRATEGY ANALYSIS
Liang Liu
EXECUTIVE SUMMARY
Introduced by Apple’s chief executive Steven P. Jobs in 2007, Iphone is definitely
mostly talk-about consumer product in the mobile phone’s market ever. In only six
months, it successfully became the subject of 11,000 print articles and turned up
about 69 millions hits on Google. (New York Times, 2011) 1Being the BMW in mobile
devices, Iphone not only capture the most wanted properties such as multisensitive
touching and scratching resistance screen, innovative voice mail system, but also
embodied the brand culture of an easy lifestyle as long as cleverness that Apple
keeps on building. Owning an Iphone became the choice of those who admire hightech devices and leisure and comfortable life.
However, all good things seem to come to an end as the mobile phone market gets
more and more competitive. Especially when Google’s Android smart phone runs
surpasses Iphone. According to BrowseTool.com, in November 2010, the Android
smart phone gained more market share than the has-been leader Iphone. The
information provided by the retailing department indicated that some of the
advertising efforts got less attention from the market as we imagined. There is a
need to reprioritize and even to change the advertising plan Apple now is using on
Iphone. It is time for Apple to reflect on both its product itself and the marketing
strategies it has been using. The advertising group is busy finding a breakthrough for
the promotion at the same time cast away the obsolete tools.
Distribution (%) Smartphone
August-10
November-10
Points
Changed
Google (Android)
19.6%
26.0%
6.4
Apple
24.2%
25.0%
0.8
Microsoft
10.8%
9.0%
-1.8
Palm
4.6%
3.9%
-0.7
2
1
New York Times. (February 11 2011) Iphone. New York Times, Retrieved from:
http://topics.nytimes.com/top/reference/timestopics/subjects/i/iphone/index.html?scp=1spot&sq=iphone&st=cse
2
Chart retrieved from http://www.browse-tools.com/android-surpassed-apple/ (Jake 2011)
2
[IPHONE ADVERTISING STRATEGY ANALYSIS]
February 18, 2011
MARKET ANALYSIS
Property & Target
A cell phone becomes a necessity for us in nowadays lives, the features we care
include not only new technology, but also design and appearance, relative price and
associated plan. The trend tells us that people tend to choose the cell phone that will
help them attract other’s attention in public as well as aid of gaining reputation.
Furthermore, the web-assessable function turns into a major part of people’s
consideration when choosing the phone.
Iphone, in an all-in-one principle, is definitely a multi-tasking communicational
device that satisfies a variety of individual needs. We could also see Apple’s targeting
in its designs.

A scratch resistance screen with double side camera and retina display clearly
suite college students or teenagers who may not be so careful with their cell
phones and need to update their new photos to Facebook all the time.

The click-to-call, mail notification, air print functions just cannot be more
convenient for a business people who need to meet their need in short time
with just a tap.

Voice control, maps and compasses save drivers more time and allow Iphone
not to be a distraction when on the road.

If not others, a huge music fan would not let Iphone go just for its iPod
feature with iTune being the world’s largest Entertainment store.

Iphone 4’s video call function make
what people have dreamed about
come true. The only deficiency a
phone call captured than a face-toface communication is that people
hello to your kids, share a
cannot see the expression from the
smile from across the globe, or
other
watch your best friend laugh
side.
The
new
Iphone
overcomes the shortage.

With just a tap, you can wave
Besides other features, the most
at your stories1
attractive is the variety of Iphone’s
application database. Apple Store
now
has
the
world’s
largest
1
collection of mobile apps.
1
Face Time, (Feb 11 2011) Features, Apple Inc. Retrieved from:
http://www.apple.com/iphone/features/
3
[IPHONE ADVERTISING STRATEGY ANALYSIS]
Mobile
Portable
Digital
phone
GPS
camera
February 18, 2011
Iphone
Small
Business
iPod
tool
player
computer
Price
With the launching of Iphone 4, which could be owned with only $199 if sign a
contract with AT&T, Apple commands a significant price premium to lower its
previous Iphone 3G product to only $49. By applying price strategy to target both
business people who are willing to pay more for a new technology and those people
like students who want the cool device but have little money for it, the company
managed to cover a strong share in the mobile market. 1 The new pricing plan lured
an immense amount of people to help boosting Apple’s Iphone sales figure,
$300
Blackberry
Treo
$299
$299
$250
$200
Iphone4G
$199
$150
$100
$50
Iphone3GS
$49
1
AT&T. (February 11 2011) PDAs & Smart phones. AT&T.com. Chart retrieved from:
http://www.wireless.att.com/cell-phone-service/cell-phones/pda-phones-smartphones.jsp
4
[IPHONE ADVERTISING STRATEGY ANALYSIS]
February 18, 2011
ADVERTISING STRATEGY ANALYSIS
Common Method (Digital Marketing)
Just like other companies in the market, Apple has invested in nearly every possible
channel to bring the customer to the point of purchase. By combining multi-channel
communication, using both pull and push techniques to communicate with the
customers, the company approaches the customers from two different sources
creating differentiation from competitors and delivering product massage with added
value service or application.


Pull
o
Blogs: Articles are posted in industry blogs, forums, and discussion
boards to attract the
public attention.
o
Social Network: When
selecting the internet
distributing region, the
company chose to display
its ads in the websites
that have the largest
volume of visitors such as
Facebook, Twitter,
Myspace, Youtube and
etc.
o
Official
Sites:
Both
Apple.com and AT&T.com
are intensively promoting
the advantages the use of
Iphone gives.
o
Display Ads: TV
commercials and banner
ads are simultaneously
presented to the public
with dedicated design.
Facebook
Facebook
Twitter
Twitter
Myspace
Myspace
Youtube
Youtube
Flickr
Digg
Flickr
Digg
Digg
Digg
linkedin
linkedin
Events
Events
Meetup
Meetup
Rediit
Rediit
Kate
Kate
Pownce
Pownce
Upcoming
Upcoming
Push
o
Email Marketing: Apple sent emails to every Apple customer with the
introduction of Iphone products
o
Opinion Leader: Free Iphones are handed to them for review expecting
compliments from authorities and big shots.
5
[IPHONE ADVERTISING STRATEGY ANALYSIS]
February 18, 2011
Unique Strategy
In order to succeed in the competition with other mobile device manufactures, Apple
developed some inimitable and effectual advertising strategies. Although it is difficult
to determine which method is most important selling Iphone, the distinctive
approaches obviously added favorable impression to the product.

Cooperate with mobile companies
After four years, AT&T is no longer the only carrier for the Iphone products. No
wonder, the Verizon’s preorder rush not only built its own marketing history, but also
increase the profit of Iphone. According to MacRumors3, in as short as 17 hours, the
second carrier of Iphone,
Verizon, sold out its initial
stock for Iphone 4G. What’s
more
surprising
is
that
although the preorders were
begun to be taken in 3 am,
they sold more phones than any first day launch in history in just two hours. (Dan
Mead, 2011)4 When AT&T and Verizon are spar for the spotlight, Apple undoubtedly
became the biggest winner of the game. Both of them unintended advertised Iphone
as they promote their own data plan.

Provide platform with apps
Facebook, Twitter, Skype, Linkedin, etc., all these popular social medias have their
applications on Iphone. When people are addicted to using these social media to get
connected and keep on updating their news, what they want most is a device small
and light enough that they could carry with them all the time. So, Iphone offer them
a platform. App store has the world’s largest collection of mobile apps. The mutual
benefit between Apple and these networking websites is a big part of reason to
Iphone’s magical selling performance. The more you see “Available on Iphone”, the
more you want an Iphone, the more Iphones will be sold due to this advertising!

Story like ads
Apple keeps stimulating the market with new video ads
containing attracting features of Iphone. Its commercials not
only tell the audience about the improvements of the
innovative device from the previous version, but also
expressing the happiness people should have using sweet
stories. When you see the father trying to comforting the
daughter who does not smile because of her braces, when
you see the boy is so happy to see the Santa who is acted by
his father, you probably are moved by the little detail. The
portrait of a lovely life triggers the motivation of buying an
Iphone as if a new cell phone could really brings about a new
lifestyle. Apple communication has a unique style. It is
simple, smart and effective. And its minimalist style consists
in TV ads, print ads and in the online communications.
6
[IPHONE ADVERTISING STRATEGY ANALYSIS]

February 18, 2011
International Launch
Apple’s uniqueness is presented by its global view of the market in particular. The
reason why it is the focus not only in the United States but even in the other side of
the earth is that the company spread its news all over the world. As of December 25,
2010, the Company distributed iPhone in 90 countries through 185 carriers. In
January 2011, the Company announced plans to expand U.S. distribution of iPhone
to the Verizon Wireless network beginning in February 2011. (Apple, 2011) 1No other
cell phone manufactures cooperates in these many countries and with such spread
carriers. Apple’s success has its reason.

Good Will
Good will is the brand value of the company. According to Apple, its good will valued
741 million for the year ended 2010. In the image of strong brand essence,
continuous innovation, and loyal customer base, Apple significantly influences the
customers with its positive momentum. (Brad VanAuken, 2010) 2Thus the ones who
chase for new technologies tend to check out Apple’s product first than any other
brands!
1
Apple. (Jan 7 2011) Form 10-Q, UNITED STATES SECURITIES AND EXCHANGE
COMMISSION. Retrieved From: http://www.apple.com/investor/
2
Brad VanAuken. (October 18 2010), Ranking the top global Brands. Brand Strategy Insider.
Retrieved from: http://www.brandingstrategyinsider.com/2010/10/ranking-the-top-globalbrands.html
3
Arnold Kim. (February 03 2011). “Verizon sells out of Iphone Pre-Orders”. MacRumor.
Retrieved from: http://www.macrumors.com/2011/02/03/verizon-sells-out-of-iphone-pre-orders/
4
Dan Mead. (February 10 2011) “Verizon Wireless Has Record Sales On First Day Of IPhone 4”.
Verizon News Center. Retrieved from: http://news.vzw.com/news/2011/02/pr2011-02-04.html
7
Method could be imitated

Promoting Events
According to Blackberry, the company has a lot of events to promote their products.
In February alone, Blackberry will hold 7 Innovation Forums that introduce and
explain their products in major cities of United States and Canada. In the forum,
opinion leaders will be invited and to talk about their experience with the product.
Also, the newly designed software will be introduced to the public to help the public
gain more awareness of the unfamiliar products. This forum will help the old
customer of Blackberry to have more confidence of the company, meanwhile, the
events will attract large amount of public attention. Medias like industry magazines
and newspapers will heavily report related news thus increase the brand awareness.
This kind of promotion could gather more public attention than simply providing
Iphone products in Apple stores. Iphone has more topic and potential customer than
any other mobile devices. If Apple could hold events like this for Iphone products,
the increasing demand and expanded target segment would help Apple to beat its
competitors in the long run.

Develop Slogan
In 2009, HTC Company releases a press talking about its new advertising strategy:
Quiet Brilliant, part of which is to update its slogan to “You don’t need to get a
phone. You need a phone that gets you.” 1A slogan is an effect way to express a
company’s attitude and tenet. That being said, HTC’s new slogan give the customers
confidence in the powerfulness and humanized designs of the products accelerating
company’s sales. Moreover, the slogan is also a symbol of the company especially
with a catchy tune. The public will more likely to make up sentences resemble the
structure of this slogan thus increase the prevalence of the slogan upgrading
company’s recognition rate.
If Apple could design such a slogan that will remind people of Iphone when anyone
says only the structure of the slogan, Apple will attract more customer to check out
the Iphone products. With appropriate promotion, Iphone products would have
better sales performances.
1
AllHTC.( October 30 2009) HTC Quiet Brilliant—A New Strategy. HTCphones. Retrieved from:
http://www.htcphones.net/htc-quietly-brilliant-a-new-strategy/