The key purpose of the report is to understand the importance of brand positioning of the new product “Apple iPhone” in Chinese market. Further, the report focuses on identifying and analyzing various factors that are required to be considered while developing brand positioning strategy for the product. Additionally, the paper identified market leaders producing and delivering similar product in Chinese market for attaining effective brand image and competitive advantage. It needs to be mentioned that with the help of proper understanding of the brand position of the product, the marketer of the entity will be able to examine the impact of introducing this product in the Chinese economy. This has been evident that the current paper deals with incorporation of customer adoption process based on which Apple iPhone will be able to acquire strong customer loyalty in the Chinese market. Hence, the paper has shed light on the pricing strategy decision that has been considered for gaining effective brand position in the Chinese market in context to the introduction of new product (Apple iPhone).
Introduction of a new product in a market requires implementation of marketing management for achieving business objectives, goals and competitive advantage. Marketing management is determined to be a procedure that aims at developing and implementing an effective plan through considering aspects such as promotion, pricing and ideas related to distribution of products and services in a market. In addition to that, marketing management will assist in accomplishing business objectives and goals through improving overall performance and growth of the company. In this paper, Apple iPhone as a product will be considered for understanding its brand position in Chinese market. Further, the study will discuss about consumer adoption process along with pricing decision strategy for achieving effective brand image and competitive advantage in the long run.
In accordance with the paper it has been evident that the paper aims to claim the effectiveness of the strong brand positioning in dealing with the competitive marketing functions. In order to determine the effectiveness of the effective brand positioning Apple I-phone it will be important to cater the concept of brand positioning. It has been evident that the brand positioning refers to the conceptual place where Apple I-phone needs to position its targeted market in order to perform the marketing functions and create effective profitable synergies in the successful manner. According to Gengler and Mulvey, (2017), there are different mechanisms and factors that facilitate the creation of effective brand positioning that includes brand positioning, brand sponsorship, brand development and brand name selection. In relation to the scenario of Apple I-phone it has been evident that the company follows the strategy of executing experience as the brand position that emphasises upon the emotional branding that is its key to successful survival. It has been evident that the Apple I-phone’s brand positioning strategy critically reflects upon the significance of the core beliefs that considers the implications of innovation, imagination and design. Since the brand development is the procedure of growing the brand name in the competitive market and establishment of the product advantage that critically emphasises upon the brand resonance in the competitive market. Since the Apple I-phone is one of the core products of Apple Inc, it is critically important that the products are positioned in such a manner that facilitates the performance in the Chinese market in the successful manner (Dissanayake and Amarasuriya, 2015). Thereby the product’s brand positioning strategy creates significance on the humanistic corporate culture, visual and verbal vocabulary this helps the company to address the emotional benefits and better brand awareness in the successful manner.
The advancement of technology has helped number of entities across the globe to manufacture and distribute high quality products related to cellular phones. Apple is known to be one of the reputed entities producing high quality phones through incorporating attractive features. However, there are a number of companies in Chinese market that distributes similar products (Jun and Park, 2017). Major market leaders for the chosen product (Apple iPhone) are Dell, IBM, LG, Huawei and HTC. The company manufactures a variety of cellular products through using advanced software and applications that have helped it to acquire effective competitive advantage in the Chinese market.
Development and implementation of niche for promoting a new product in the market is considered as imperative for any business. Therefore, it can be stated that the top leaders selling cellular products in the Chinese economy have introduced a number of niche. This needs to be mentioned that niche is determined to be one of the crucial and significant branding strategy that assists in achieving effective brand image and reputation in the market. It has been observed that the competitors of Apple iPhones such as Huawei and LG focus on rendering high quality products at an affordable price (Moslehpour and Le Huyen, 2014). Therefore, the consumers finds it attractive to buy the products of competitors of Apple iPhone as similar features are provided in competitive prices. On the other hand, competitors focus on providing a wide range of features and application in cellular products at cheaper prices. This has been evident that the price of Apple iPhone is higher compared to other cellular phones. This creates a barrier for Apple products to attract potential customers in Chinese market.
Apple is known to be an American company delivering high quality cellular products across the globe. Additionally, the Apple iPhone is ranked as the fifth topmost industry. However, Apple iPhone products are duplicated by entities such as Google and Samsung through improving and enhancing Android software. Therefore, it develops barrier for the company to acquire effective economic growth and brand reputation in the Chinese market as customers are provided with similar product at a cheaper price (Moslehpour and Le Huyen, 2014). Therefore, it can be stated that Apple iPhone is a challenger for established brand as the companies tries to imitate features and applications provided by this entity.
In accordance with the significance of effective brand positioning it can be stated that illustration of the consumer adoption process of the product critically requires effective consideration in detailing the business performance in the successful manner. It has been evident that the consumer adoption process that starts with the mental process of individual passing through the product awareness and adopting the innovation in the successful manner. A new product perceived by the consumer in the particular area considers the significance of 5 stages including product awareness, product interest, product evaluation, product trial and product adoption. In relation with the particular product it can be stated that the consumer adoption process goes according to the stages that confines the strategies of brand positioning in the successful manner. Apple I-phone has considered implicating the five stages in the consumer adoption process that needs consideration of tech enthusiasts, visionaries, pragmatics, conservatives and sceptics (Pham and Ho, 2015). In relation with the research it has been evident that the product adoption cycle considers the significance of innovative ideas that critically ideates the performance of I-phone’s in the competitive market in the effective manner. Thereby it can be stated that the product authority considers the significance of consumer needs based on the brand benefits that creates effective brand significance in the successful manner.
One of the reputed brands in the electronics market is ‘Apple'. Every year the company launches new devices with innovative and advanced features and the pricing of their devices is very high (Liu et al. 2019). In respect to this, the organization of Apple for the China market would follow is Premium Pricing Strategy for its iPhone which is going to be illustrated below:
Taking into consideration and the population of the Chinese market Apple has implemented its premium pricing strategy in the country. In comparisons to other major mobile companies like Vivo, Oppo, Huawei, and others the price of the iPhone is quite high (Liu et al. 2019). The price of the iPhone is high only because of the mobile phones that Apple provides to its customers are different from other companies. The company provides creative, innovative and reliable mobile phones and targets the young generation of China. Despite high competition in China, Apple had created a huge demand for its product (Dissanayake and Amarasuriya, 2015). The pricing of their mobile devices is mainly kept high because of its ‘Operating System' that the company provides. The OS of the iPhone is very reliable, and the mobile functions without any disruption and failure. However, the advanced features and technology of the iPhone grab the attention of the consumers for which they are interested in paying huge amounts.The company first surveyed the Chinese market analyzed other companies and the demand for mobile phones with in the country. In this way, the firm penetrated the market by keeping its price high and premium than its competitors. Apple does not invest much in advertisement neither does any kind of sponsorship which makes the pricing of their mobile phones higher. Premium pricing strategy could create higher profits and increase the branding value (Liu et al. 2019).
Apple's iPhone mainly targets those customers with whom they want to continue their business at present as well as in the future. Apple mainly targets all ages but mainly for this product it targeted the young people with whom doing business can be profitable (Giachetti, 2018).
The positioning of Apple's iPhone is done by promoting and advertising the brand. The brand positioned itself through its loyalty to the features towards the customers
Apple offers advanced features, innovation, creative design, and the most important factor is that the features are reliable in context to the iPhone. The organization has ensured that the phones that they provide are superior to others in all aspects. Hence, customers can buy their products without having any second thoughts (Liu et al. 2019).