Week 1 Assignment: Case Study 1
Running head: Case Study 4
Week 1 Assignment: Case Study
Alyssa Hall
MKT628 Global Marketing Management
September 2, 2018
The Great Debate
Years ago, I worked at T-Mobile where the bane of my financial security surrounded selling cellphones. In 2012 T-Mobile began carrying the iPhone for the first time and sales were projected to triple in the upcoming quarter of the release. Then the great debate began; iPhone versus Android. For years I was a avid supporter of Android devices, Samsung specifically. I was able to hack the Samsung interface and turn it into an Apple interface while still having the freedom of an Android device. Prior to T-Mobile carrying the iPhone none of us T-Mobile in used the iPhone nor knew much about its operating system. After about two weeks of training on the Apple operative system a divide began to happen in the store. Interestingly, when asked we preferred Apple or Samsung nobody had a solid answer. It came down to one overarching theme, connection. Those seeking to make the Apple switch wanted to easily connect with friends and family via the Apple communication service like iMessage, FaceTime, and Audio FaceTime. Those wanting to stay with Samsung wanted to feel connected and loyal to the Samsung band wagon. In 2013, I made the decision to switch to Apple and haven’t looked back. Everyone in my family and close friends were able to see the blue bubble messages and FaceTime while I was still in the “dark blue ages” (dark blue is Samsung’s brand color). I wanted to feel connected to my family and friends the way we all do so I made the switch.
Leading the Pack
Apple should not introduce a lower-cost iPhone to attract consumers who are not willing or able to pay a premium for an Apple device. In 2018, Apple maintained its’ 8-year reign as the world’s most valuable brand with a value of $182.8 billion, which is an 8% from their 2017 numbers (Badenhausen, 2018). Marketing strategies exist for a few key reasons, one being supply and demand. “Only Apple, thanks to its hard-core fan base, could get away with pricing a phone at $999 and proceed to sell 29 million of them in less than two months (Badenhausen, 2018)”. There is an old adage that says, if it isn’t broke don’t fix it. In his founding days Steve Jobs downplayed the need for market research and virtually any marketing for Apple because consumers don’t know what they want. Apple’s stock value and sales prove his point. One who has worked in sales can attest to this as well. Individuals can be easily swayed into breaking their monthly budget to get a magical device, purely because of the brand name. Apple does not sell just a device, Apple sells their brand by telling their stories. The power of storytelling has and will continue to stand the test of time in marketing strategies from pricing to new market entrants.
If Apple were to lower their prices it could have adverse effects on their sales. Rather than consumers waiting...
