Apple's iPhone Advertising Campaign - Case Study Example

Apple’s iPhone Advertising Campaign 1.0 Introduction Apple Inc is currently worth $ 624 billion and is ranked the most valuable brand globally with a brand value of $ 98.3 billion (Schweizer, 2013). The company is known as epitome of innovation with one of the products being Iphone range of Smartphone. In terms of sales volume globally of smartphones, Samsung has the market leadership at 32% followed by Apple at 12% (Kovach, 2013). However, in US, Apple’s iPhone accounts for 40% of the US smartphone market share (Schweizer, 2013). To attain such position in the market implies that there is a concerted effort including innovation and aggressing marketing through actions such as advertising. Advertising has an integral role in convincing existing and prospective customers about value to be derived in purchasing certain product (Pickton & Broderick, 2005, p.458). This report analyses Apple’s iPhone advertising campaign which is on TV, Online and in magazines/newspapers with the focus being on Gold iPhone 5s advertisement. 2.0 The Advert Marketing is one of the key areas that companies utilise to increase their sales. By having a right marketing strategy, a company reaches its target market hence selling its products. For Apple, it has used television advertisements in comparing its products to those of the competitors. This has ultimately built a brand image for the company’s products as it has become a household name among consumers. These humorous adverts develop the company image. the key marketing strategy that has driven Apple to where it is today is its secretive and selective unveilings. Through this marketing strategy, Apple keeps it a secret on products to be released. More so, it holds “invitation-only press events” when new products are being unveiled (Modi et al, 2010). Thus, this creates a lot of suspense and hype on the market. Apple Inc engaged TBWA\Media Arts Lab, to create an advertisement that could spur their capacity to unlock the deeper magic of their brand (Gianatasio, 2013). Gold iPhone 5 s is the 16th generation of iPhone smartphone series and the successor of iPhone 5 whose production had been discontinued. After the launch of gold iPhone 5s by Apple Inc, they did a print version of an Ad in the back pages of several magazines (Hamburger, 2013). One week after doing the print version, the company launched the TV/ video version with the spot labelled “Metal Mastered”. In TV, the video advertisement ran for 30 second. The advert got a debut during Fox’s NFL coverage and it was the edited version that was shown during the launch of the same product. In the video advert, a liquid gold spills across the screen in a T-100 style and then consolidates into an iPhone accompanied with background soundtrack of “Ohh La La” from Goldfrapp’s that has been in other ads for other competing brands such as Motorola (Gianatasio, 2013). Subsequently, after formation of the gold into a phone, a pointer finger emerges from the bottom edge, selects the home button and unlocks the phone (Hamburger, 2013). In a nutshell, it is a brief version of the video showed during the launch of 5S/ 5C in mid September. 2.1 Target Audience The most common parameter of knowing the target audience is pricing, but since in the advertisement that pricing is not revealed, the report will employ analysis through proxy/ deductive reasoning so as to deduce who are the target market. The parameters that can be exploited within this context are such as colour and background music. The greatest proxy that is integral in determining who the target audience is the Gold liquid. In regard to the gold liquid/ colour used in the advertisement, we can infer that the target audience are people falling in the lower upper, mid, mid-upper and upper class of the society because such phones are not lower end products. The rationale for such argument is anchored on the basis that Gold is an object of desire and is always associated with luxury and majority of those who can afford it are one who in Maslow’s order of hierarchy are the ones who have attained or on way to se self actualisation (Berry, 1994). This then implies that the ad targets people who are in developed nations where standards of living are high and they have that extra disposable income to spend on luxurious goods. Equally we can infer the fact that for people in emerging economies, the most targeted are those who are able to afford the price. 2.2 Features/ Benefits and Occasion From a generic perspective, Apple Inc under their brand of iPhone are known to produce innovative products that ‘wows’ the customers (Gupta, 2013). The company exploits her core capabilities so as to deliver innovative, user-friendly products and slim product. The key to creating ‘wow; aura is by embracing technology. The company develops products that are “fashionable and of state-of-the-art” (Modi, 2010). iPhone 5s brand has numerous features since it is the sixteenth generation of iPhone so as to meet the expectations of the customers. These features include most advanced mobile operating system, touch ID button, and high speed camera (see appendix 1 for more details). Thus, the benefits derived from the purchase of this gadget are enhanced portability owing to its advanced features for either office application or social functions. The advert for the phone and the phone itself is fit for all occasions. The key theme in this smartphone is to address the need for tech savvy individual for either official/ office functions or for social purposes (see appendix 1). While the product in itself is not gold coated, the advert targets individuals who like to show their economic and social status through gadgets they own. Gold is a symbol of class within the context of social status and depicts one as a cool and savvy individual. 2.3 Positioning and Informative Level Positioning of advert can be conceptualised in two perspectives. The first is it appears. For instance, for TV ads, it can be positioned to appear during prime time such as during breaks of live commentaries of live games such as American football or English premier league. For print advert in magazines positioning relates to page numbers. The second conceptualisation relates to how the advert itself is located within the frame. In regard to the first context, in television advertisement, the advert was well positioned since it appeared during Fox’s NFL live coverage (Gianatasio, 2013). On the other hand for print magazine, the advert was located on back pages and thus, was not well positioned (Hamburger, 2013). In relation to second conceptualisation, the position within the frame was equally fine. In a T-100 shape, the gold liquid forms into 5s iPhone at the bottom of the screen (Murphy, 2013). According to the theme chosen, the advert can be ranked as informative. First the metal themed song coupled with the Gold colour creates an aura of luxury associated with gold materials. Indeed such appearance is in sync with their affinity to ‘midas model’. This creates a perception to the buyers that the 5s model is a luxurious brand that creates a higher social status to users. The T-100 formation of liquid gold into a cool 5s gadget also symbolises the concerted effort that has been applied in manufacturing the phone. It is a known knowledge that gold undergoes a super refined process so as to deliver glittering ornaments and as such the same can be inferred on the manufacturing process of the 5s smartphone. Equally, a pointer finger appears from the bottom of the frame, clicks the home button, and unlocks the phone (Humberger, 2013). This is a plus since it gives an introductory preview on the available features of the phone. Lasly, while the advert is not yet associated with celebrity, it informs in its own right, and with the association it has been give after being labelled "The Kardashian Phone" contributes to the ultiamate focus of informing the audiences who are the prospective purchasers. 3.0 Marketing Mix Elements Marketing mix entails application of wide arrays of strategies so as to address the needs of customer from marketing perspective based on market information derived from market research (Chartered Institute of Marketing, 2009, p.7). the subsequent subsection asses how the advert address customer demands through the 4Ps/ marketing mix (product, price, promotion and place) so as to enable it undercut competitors, lock in customers while locking out competitors so as to gain and sustain in market leadership position. 3.1 Product A manufacturer has an option of creating greater value to customers, either by means of lowering prices or through providing greater benefits and services that will justify higher prices (Strasser, 2011, p.17). A product should add value to the final consumer. While advertising, the advert should albeit through information convince the prospective consumer that the product will add value their needs. Based on appendix 1, iPhone 5 s has various features that add value to the end user. The content then would be to establish based on the advert is the product adds value. In this regard, we examine how the advert communicates the brand to the audience. Indeed there is explicit communication of the product based on how they have used gold colour which is a symbol of luxury. Secondly, the metallic themed background song creates a strong perception of strong and durable product. Thirdly, after the phone has formed, they display various colours of 5s which are equally thin and synonymous with Apple inc. Fourth, in the advert, the device's Touch ID fingerprint sensor are displayed, thus showing the level of innovation in the product. Indeed, they cap all the above by assuring consumers that through the phrase "Designed by Apple in California". From a critical perspective, the only shortcoming is based on the fact that liquid gold colour can be equally associated with chocolate or lubricant advert. Moreover, the advert theme song was not creative and original since it has been used in other smartphone advertisement by Motorola. Such blind coping can create confusion on consumers mind on whether it is Apple which is advertising their smartphone or Motorola. 3.2 Pricing Strategic price position is critical in capturing customers (Sengupta, 2005, p.12). In the advert there is no price indicated about the product. Whether this was a deliberate or a mistake is debateable. To establish or why the price has tag was not fixed in the advert remains a speculative adventure. The first reason that might have lead to not fixing the price tag squarely lies on the fact that apple is a multinational corporation with global reach. On the other hand we know that different economies use different monetary units/ currencies and that tax regimes differs per country. This is irrespective of the fact that US dollar has been the most utilised currency. Based on this knowledge and the fact that the advert targeted global audience that is not restricted within a given geospatial location, the absence of the price tag worked wonders because they allow licensed distributors and retails to fix localised price as per the various monetary policies of different countries. Additionally, this saves them the embarrassment of appearing insincere if the fix a price tag yet is sold in a given country the prices goes beyond the advertised price owing to different monetary policy regimes. 3.3 Place Distribution is an integral element is ensuring that a product reaches the ultimate consumer. This can only be attained through wide distribution network by licensed distributors, agents, partners, service centres and online stores. In order to reach its target market, the company uses different distribution channels to sell its products. There are online stores, as well as physical retail stores where consumers can acquire the company’s products (Apple, 2013). There is no much information about the distribution points available. However, this might not be challenge to Apple since most of their target customers are high end individuals who are well informed and thus, are able to purchase in licensed outlets and through online platforms. 3.4 Promotion To Apple, the iPhone is the product that brings in a lot of revenue. Satariano (2012) “The iPhone (AAPL) is Apple’s top-selling product, accounting for 53 percent of its sales in the quarter that ended last December”. With the new iPhone 5s coming with new features like faster internet connection and new body design, the sales are expected to increase. To leverage on their number one product, it is prudent to offer promotional services on such product through pricing, offering free branded merchandises, after sales services and advertisement. In the advert such attempts are not outlined. The only promotional attempt is the advert. The advert comes out as an effective mechanism since they placed it in various leading magazines and at prime time viewership during Fox’s NFL match. 4.0 Critique and Recommendations 4.1 Critique The one area that the advert failed is the lack of originality. Contrary to such trend, new advertisements should bring freshness and elicit urge to purchase the product that is being advertised. According to Gianatasio (2013), “swirling-fluid imagery is nothing new”. If it is something which is not new and it does not create that required aura and oomph that builds internal urge to buy a product then it is a failed advert. To affirm the same, Hamburger (2013) observes that the "Ooh La La" sound track by Goldfrapp which is metal themed has been utilised by various direct competitors of Apple. For instance, they note that Motorola while advertising their new Motorola KRZR smartphone in 2005 utilised the same sound track. Moreover, observers note that the same track was originally employed by LG chocolate advert, therefore making them the pioneer in such advert. As such, it not only lack of originality that has been exhibited, but also to an extent there is confusion if taken from the concept of branding and the role of brand in creating unique distinction since the same soundtrack is associated with direct competitors. Equally, the advert before formation of the phone out of the liquid gold can create clutter on the mind of target audience. The rationale for such arguments is anchored on the fact that other products such as chocolate, cola, motor oil, liquor or Velveeta (Gianatasio, 2013). Lastly, in advert, they have focused more on aesthetics of the phone instead of having a balance and address other integral aspects such as functionality. For instance, they talk less about the functionality of the software yet they claim that iPhone OS is the best in the market. Despite of the two shortcomings, the advert has some positive aspect that can help the firm unlock their potential by making clients think differently. Generally, it is a precise piece of advert that brings to the attention of the audiences that iPhone comes in gold. The symbolisation that gold creates is massive since it is associated with luxury and cool lifestyle that prospective consumer wish to associate with. This shiny gadget advertised then attains some desired goals. 4.2 Recommendations The one recommendation that future adverts should take into consideration is originality. The second aspect is they should equally include more aspects of functionality as compared to aesthetics. 5.0 Conclusion The focus of the report was to asses Apple’s iPhone advertising campaign which is on TV, Online and in magazines/newspapers with the focus being on Gold iPhone 5s advertisement. The report established that the report established that the 30 seconds advert done TBWA\Media Arts Lab was an effective means of communication. However, it had certain shortcomings. For instance, it lacked originality and focused more on advertising aesthetics as compared to functionality. References Berry, C. J. (1994). The idea of luxury: A conceptual and historical investigation (Vol. 30). Cambridge: Cambridge University Press. Chartered Institute of Marketing. Marketing and the 7ps: A brief summary of marketing and how it works. 2009. Retrieved on 7 December 2013 from: www.cim.co.uk/filestore/resources/10minguides/7ps.pdf. Gianatasio, D. (21 October, 2013). 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London: Cengeage Learning. Appendices Appendix 1: Apple iPhone 5s detailed specifications Source: NDTV, 2013. Read More