Introduction
The new product chosen for the report is the iPhone 12, and the following sections are going to discuss various aspects and concepts regarding it. Marketing concepts like brand positioning, status in the market in comparison with competitors, consumer adoption process, pricing strategy, and other related discussions would help understand possible position and place of the product in the market.
Product or Service’s Brand Positioning
The product for analysis in this report is the iPhone 12 that is going to be launched in 2020 by Apple Inc. The brand positioning for the chosen product would be a similar one to it has been with other brands of the company in the past. The brand positioning of the iPhone 12 is slightly different because of some fundamental differences with its expected launch. Rumors associated with the iPhone release indicate that iPhone 12 would accompany many features and attributes that are different from previous models from the company. Some analysts have expected that iPhone 12 would come with six models (Heisler, 2019). A more reliable battery with the battery protection model and the 5G technology are dominant features. In the presence of these features, the company must attract high-end consumers who are tech conscious. The positioning of any brand from Apple Inc. is high and well respected because the company does not compromise on quality. The estimates indicating high sales of the product show high positioning for the product. In the STP strategy of the company, segmentation, targeting, and positioning strategies have collaborated to guide the company with this product. Availability of the product with different models and all models with the latest technology can make iPhone 12 a model that is the top-selling product for the company. The positioning of the iPhone 12 may be influenced by four factors contributing to it. These factors are brand awareness and identity, quality and convenience, personality, and association, and performance of a brand (Lakshmi and Kavida, 2018).
Market Leaders for the Chosen Product or Service
Apple Inc. is a well-respected brand in the Smartphone industry because it does not compromise on quality. However, it is not a market leader because of the high prices of its products. Therefore, many markets across the world may not become attractive markets for their products. However, the case for the iPhone 12 is much different. The reason is that it would come with 5G technology. With the latest technology, every Smartphone is high in price. The affordability of the majority of customers for 5G compatible Smartphone is low. Competitors of Apple Inc. are also coming with their brands with 5G compatibility, and their prices are much higher. However, analysts have predicted that in 5G technology compatible Smartphone, iPhone 12 can become a market leader. Although this market leads may be short term because competitors like Huawei and Samsung have been presenting intense competition for Apple Inc. Even short-term market leadership by iPhone 12 may cause competitors to decrease the prices of their models (Eadicicco, 2019).
Niche for the Product or Service
Apple Inc. has a unique strategy for its business that it does business in a niche. It might have been a costly strategy because the company has been losing market share for its smart phones. However, the confidence of the company in its approach is high. The use of 5G technology and the battery protection model has extended attributes in products from the company (Spence, 2019). The 5G technology is revolutionary and an innovation worth of high price. Many countries do not have the technology, and still, the whole United States has not had access to 5G technology. It shows that iPhone 12 would go further into the niche market and would have fewer opportunities for the company to grow. The feature of the battery protection mode in the iPhone 12 would add more reliability to the model that would make it a dream model for Apple’s products lovers. Therefore, the company can charge a high price for its models in 2020. It would make the company serve the niche. In the 5G technology niche, the company can become a market leader on a short-term basis as well. The niche market for iPhone 12 would lead to conspicuous consumption because it gives them a role as opinion leaders. Niche products can award this role (Schaefers, 2014).
The Position of the Product to Well-established Products or Brands
Well established products in the 5G technology category and high-performance battery category are many, and competitors are offering products. Samsung, Huawei, and LG have come with 5G compatible products, and they are also offering products with higher performance battery for its customers. Therefore, iPhone 12 would be a later-comer in the category as competitors have already come ahead with products. Even due to this fact, iPhone 12 would not be a follower in the product category because 5G technology is not widespread. It is usually a tradition of Apple Inc. to bring innovation in its products that are very different from products offered by its competitors. However, there are expectations from analysts that in the short term, at least, the iPhone 12 would be the leader in the 5G compatible category of smart phones. In the long run, Samsung will replace it to become a market leader in the Smartphone category. In this context, the product is going to be a challenger for well-established brands by competitors. The company has a sound and robust innovation process and operations that are unmatchable by any of its competitors. It is the reason that the company enjoys a loyal market segment. The high position of the product among competitors is the result of a series of company’s blockbuster products, including iPhone, iPad, iPod, and other products (Mitchell, 2014).
Consumer Adoption Process for the New Product
Generally, the consumer adoption process starts from product awareness that translates into consumer interest. After the evaluation and trial of the product, they finally adopt the product. In the case of iPhone 12, the awareness and interest stages are generally complete because of the high market worth and interest in Apple’s smart phones. However, the evaluation and trial stages come along with each new model of the company. In the case of the iPhone 12, the adoption process would generally be higher because of the new features and technology expected in this new model. The expected sales figure for iPhone 12 is higher than the previous models (Mayo, 2019). In this context, the new product’s consumer adoption process would be faster and broader.
Learning and Adoption of Products by Consumers and Estimated Time for Adoption
Learning about iPhone 12 is not difficult because soon after the release of the iPhone 11, there is a series of rumors about possible features of the upcoming iPhone. Greater recognition of the company and its technology-intensive products help customers learn about its products early and effectively. The market share of iPhone products in the United States is high, and globally, the company entertains a constant market share. However, analysts note that iPhone 12 might bring more sales than previous iPhones (Eadicicco, 2019). There are some authentic reasons why high sales are expected with it. With the full adoption of the iPhone 12, it is useful to note that heavy users and early adopters would be its customers. It is the reason why the company’s market share does not consist of masses. So far as early majorities are concerned, the company may target them because they may wait to see expected features in iPhone 12 to work. The estimated time for full adoption of the iPhone is until the third quarter after its release. For example, the company has decided to reduce a 25 percent reduction in the production of the iPhone 11. It means that until the second quarter, the company starts settling for a decline in production. It is an indication of full adoption from customers. The relationship of usage behavior, perceptions, and technology features play an essential role in consumer adoption. In research, the post-adoption stage has been examined for older adults that they are still in the early adoption stage as they report complexity in technologies (Li and Luximon, 2018).
Pricing Strategy Decisions for the Product or Service
Apple Inc. would choose a value-based pricing strategy because the company considers its product features to decide on this critical element of pricing. Pricing strategy may opt for a cost-based strategy, a competitor-based approach, or a value-based pricing strategy (Vidrova, Kliestikova and Nadanyiova, 2019). The chosen product for this paper would also consider a value-based strategy in pricing because of its emphasis on value. This paper has discussed various attributes of the iPhone 12 that are unique to it. Therefore, the value-based pricing strategy would work for it.
Conclusion
The paper concludes that iPhone 12 would have a high position and market leadership for customers. The inclusion of 5G technology, more reliable batteries, and more models with the release would make the product highly accessible among competitors. Therefore, the chosen product would perform better in the market upon its release in 2020.
References
Eadicicco, L. (2019) Apple is predicted to beat Samsung and Huawei to become the leader in 5G smartphones next year, even though it’s late to the game, [Online], Available: https://www.businessinsider.com/apple-iphone-12-5g-smartphone-beat-samsung-2020-2019-11.
Eadicicco, L. (2019) Next year’s iPhone is starting to take shape, and it already looks like Apple could be on its way to reclaiming dominance in the smartphone industry, [Online], Available: https://www.businessinsider.com/apple-iphone-12-5g-sales-return-to-growth-2019-10.
Heisler, Y. (2019) Report: Apple may release six different iPhone 12 models in 2020, [Online], Available: https://bgr.com/2019/12/09/iphone-12-release-2020-six-models-leaks/.
Lakshmi, S. and Kavida, V. (2018) ‘Factors Contributing to Brand Positioning of Smartphones Among College Students in Chennai: A Study’, IUP Journal of Brand Management, vol. 15, no. 1, pp. 55-65.
Li, Q. and Luximon, Y. (2018) ‘Understanding Older Adults’ Post-adoption Usage Behavior and Perceptions of Mobile Technology’, International Journal of Design, vol. 12, no. 3, pp. 93-110.
Mayo, B. (2019) Apple reportedly forecasting >100 million iPhone 12 sales in 2020, thanks to 5G demand, [Online], Available: https://9to5mac.com/2019/11/25/iphone-12-5g-demand/.
Mitchell, W. (2014) ‘Why Apple’s product magic continues to amaze – skills of the world’s #1 value chain integrator’, Strategy & Leadership, vol. 42, no. 6, pp. 17-28.
Schaefers, T. (2014) ‘Standing out from the crowd: niche product choice as a form of conspicuous consumption’, European Journal of Marketing, vol. 48, no. 9/10, pp. 1805-1827.
Spence, E. (2019) New iPhone 12 Leak Reveals Powerful Feature, [Online], Available: https://www.forbes.com/sites/ewanspence/2019/12/09/apple-iphone-12-new-leak-rumor-battery-power-specs-5g-launch-date/#7f8df499649e.
Vidrova, Z., Kliestikova, J. and Nadanyiova, M. (2019) ‘How To Use The Value-Based Pricing Strategy To Increase Profits Of Company?’, Economic and Social Development: Book of Proceedings, pp. 383-390.
