There is a pretty good chance that a large number of consumers are familiar with

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There is a pretty good chance that a large number of consumers are familiar with more than one or two Apple products. Apple has a lot of loyal customers across the globe.

Far fewer people know that in September 1997, Apple was two months from filing for bankruptcy. In 1995, Apple launched the PowerBook 5300, the first Power PC- based PowerBook. Unfortunately, this product received low consumer acceptance due to problems with its batteries as well as its performance, leading to a damaged market reputation for Apple. Originally the PowerBook 5300 was designed to use Lithium-ion batteries. However, some of these new batteries burst into flames. Switching to NiMH (nickel metal hydride) made the battery inefficient. Moreover, PowerBook 5300 was slower than expected. At the same time, Microsoft’s Windows 95 multimedia operating system was released. This created further pressures to keep Apple alive in a world dominated by Windows-Intel-based PCs. Apple began losing customers, the focal point in value chain delivery in marketing.

Steve Jobs, Apple’s co-founder, who returned to Apple in 1997 taking the leadership role, undertook several initiatives. He negotiated a $150 million investment from Microsoft in return for non-voting shares, exploiting Bill Gates’ concern about what a failed Apple would mean to Microsoft’s anti-trust case with the Department of Justice.

Capitalising on the second chance, Jobs streamlined Apple’s product range, deleting underperformers to deliver value for customers. He cut all of their desktop models back to one. In the laptop category, he similarly cut all models back to one. Printers and other peripherals were all delisted from Apple’s offering. He also cut the distributors and five out of six national retailers. In brief, Jobs simplified Apple’s offering for customers by removing the business activities that failed to deliver value for customers.

To stimulate growth, Apple, under the command of Steve Jobs, launched the iPod music player and iTunes in 2001, iPhone in 2007 and iPad in 2010. These products have contributed to building Apple’s reputation as the world’s most innovative firm, leading to strong results.

In Australia, iPhone, for instance, captures 46 per cent market share. When releasing the first iPad in 2010, Jobs reported that there had been 50 million visitors to 284 stores worldwide in the previous quarter. In the 18 months since its inception, the

App store had offered more than 140,000 applications that attracted 3 billion downloads.

These products have returned customers’ hearts back to Apple. Apple has won fanatical customers, who are willing to line up in front of stores to be the first customer to buy the new product. Everyone, including the diehard fans, is watching Apple’s next moves. Customers continually raise their expectations, making it more challenging to create value for customers. When releasing the iPhone 7, current Apple CEO, Tim Cook, announced changes that include upgrades to the battery and processor, enhanced camera technology and water-resistant casing. However, the most notable change is not about adding something new. Rather, it is the removal of the headphone jack, the circular port where users can plug in their headphones. This product again focuses on making customers’ lives better. On its release day in Sydney on 16 September 2016, diehard Aussie Apple fans began waiting in line 48 hours before the product hit the store.

A series of successful innovations in winning customers’ hearts has brought Apple a dramatic sales increase from US$7 billion in 1997 to US$233 billion in 2015. The balanced combination of marketing mix variables delivered through innovation has seen Apple winning the crown as the most valuable brand globally in 2016. How long will Apple enjoy this success?

Q:

1 setect one Apple product and outline its value tor customers.

2 Marketers aim at creating superior value for customers. Describe how the value that Apple delivers its customers s related to its financial performance DISCUSSION

3 Apple iPhone 7 was launched on 16 September 2016 in Australia. This product has removed dthe headphone jack. In your opinion, is this the right decision to create value for customers? 0utline your argument,

Explanation / Answer

1. Apple Iphone is one of the most prolific product that Apple has introduced in the market a decade ago. This created a revolution in the market. The major pro of an Iphone is the security it provides to its consumers. In today's scenario, where devices are getting hacked and individual's data is getting used for illegal uses. In this segemnt, Apple provides 100% security to its phones. This has been proven year after year where Apple organises a set of hackers who are highly recommended or talented and till date they have not been able to crack or enter into an Apple database.

2. Apple has a strategy to not innovate new things but to deliver products with an improved version. This concept helps in syncing with individuals better as they are getting a product which they already know about but in a more sophisticated manner where they can flaunt their purchase and also enjoy the new benefits that they are getting from an Iphone. This value means a lot to customers and they are ready to buy a product even it is priced higher as they feel they get the value for their money. In other words, Apple has started to build their loyal customers which helps them excel in their financial performance.

3. The Iphone 7 comes with no headphone jack, the reason for this is that Apple wanted to give an additional and improved feature to its customers. By removing the headphone jack, they had the space to insert an additional chip which helps unlock the Phone through the thumb which is called Touch ID. The Touch ID was something very new in the mobile market and nobody ecpected this new feature. The value of securing the phone even it is lost or comes in somebody else's hand, their phone is secure and they can trace the same through Icloud. This value overshadowed the removal of headphone jack.

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