Marketing Mix Of iWatch and 4Ps (Updated 2023)

The Marketing mix of iWatch analyses the 4Ps of iWatch, which includes the Product, Price, Place, and Promotion of iWatch. iWatch, or Apple Watch, is a product from its owner company, Apple Inc. It is a smartwatch and is associated with the consumer electronics industry. This product line was released in the year 2015 on April 24. In the second quarter of the financial year 2015, Apple Watch became a best seller with a supply of 4.2 million units. It faces lots of competition from the following companies-

• Sony
• Samsung

About iWatch

• Type: Smartwatch
• Industry: Consumer electronics
• Founded: April 24, 2015
• Founder: Steve Jobs, Tim Cook
• Headquarters: Cupertino, California, United States
• Area served: Worldwide
• Key people: Tim Cook (CEO), Jeff Williams (COO)
• Number of employees: Over 154,000+

iWatch Product Strategy

iWatch is a multi-performance watch with a touchscreen facility, and the smartwatch has unique features like health-oriented and fitness-tracking capabilities as it is integrated with other services and products from Apple.

The new Product Mix of iWatch in 2023 is as follows (Source).

1. Apple Watch Models: Apple offers different models of the Apple Watch, each catering to different needs and price points. This includes the standard Apple Watch Series, Apple Watch SE, and the Apple Watch Ultra. Each model varies in terms of features, build quality, and functionalities.
2. Watch Bands: A significant part of the product mix is the variety of watch bands available. These range from sports bands to luxury editions, allowing customization and personalization for different tastes, activities, and occasions.
3. Watch Faces and Customization: Apple provides a range of digital watch faces that users can customize according to their preferences. This includes various designs, complications, and information displays.
4. Health and Fitness Features: The Apple Watch includes various health and fitness features like heart rate monitoring, ECG, blood oxygen level measurement, fitness tracking, and exercise programs, making it a versatile tool for health-conscious users.
5. Connectivity and Communication: With cellular options, the Apple Watch allows for calling, texting, and data connectivity without needing a nearby iPhone. This enhances its functionality as a standalone communication device.
6. Apple Pay: Integrated with Apple Pay, the watch facilitates contactless payments, making transactions convenient without needing a wallet or phone.
7. Third-Party Apps: The Apple Watch supports various third-party apps available through the App Store, extending its functionalities in multiple domains like travel, entertainment, productivity, and more.
8. Accessories: Additional accessories like chargers, protective cases, and screen protectors are part of the product mix, enhancing the usability and longevity of the device.
9. Software Updates: Regular software updates provided by Apple add new features, improve existing functionalities, and ensure security, keeping the device up-to-date and enhancing user experience over time.
10. Apple One Integration: The integration with Apple One services, including Apple Music, Apple Fitness+, and iCloud, adds value to the Apple Watch by providing access to a suite of Apple’s digital services.

iWatch Place Strategy

Apple is a global brand, and since the product launch of its watch, is readily available in several countries and cities like the United States, Canada, India, the United Kingdom, South Africa, Indonesia, the Philippines, and Chile. The brand has a strong distribution network that is of immense help in making its products obtainable for consumers in most markets. During its early days, an individual had to make a booking for fitting and demonstration of the iWatch. It was unavailable via its Apple retail outlets but had to be ordered through its official website.

Later, the company changed its distribution policy, and selected models were accessible at authorized Apple retail stores, Apple outlets, and some luxury boutiques with which the company had tie-ups. Since June 4, 2015, the Apple Watch has been readily available at all Apple stores, and from August 24, “Best Buy” announced its decision to sell the Watch via its retail outlets. Later, Sprint and the T-Mobile US also announced sales through its retail stores.

Here’s the place strategy of iWatch.

1. Apple Stores Worldwide: The Apple Watch (iWatch) is prominently displayed and sold in Apple Stores globally. These physical retail locations offer customers a hands-on experience with the product, expert assistance, and a direct representation of the Apple brand.
2. Online Apple Store and E-commerce Platforms: The Apple Watch is available for purchase on the online Apple Store, providing convenience for customers to buy from anywhere. It’s also sold through various authorized e-commerce platforms, broadening its online accessibility.
3. Authorized Resellers and Electronic Retail Chains: Apple partners with authorized resellers and major electronic retail chains to distribute the Apple Watch. This strategy extends its reach beyond Apple’s retail channels, making it accessible in areas without an Apple Store.
4. Mobile Carriers and Network Providers: The Apple Watch is also available for models with cellular capabilities through mobile carriers and network providers. This allows for bundling with phone plans and offers an additional avenue for customers to purchase the product.
5. International Market Availability: Apple ensures that the Apple Watch is available in numerous international markets, aligning with the launch of new models and updates. This wide geographical availability caters to Apple’s global customer base and maintains its market presence worldwide.

iWatch Pricing Strategy

iWatch is one of the consumer market’s most convenient and functional devices. It is a personal product from Apple designed to be worn instead of carried. This wearable is of high quality, and the brand has adopted a premium pricing policy. Prices are no doubt higher than similar products of rival companies. Still, Apple has confidence in its loyal customers and realizes that people will buy Apple products both for quality and as a status symbol. Moreover, the Apple brand does not want to lose its competitive advantage and market share; thus, it has maintained its high prices.

Here’s iWatch’s pricing and marketing strategy.

1. Premium Pricing Strategy: Apple adopts a premium pricing strategy for the Apple Watch consistent with its brand positioning. This pricing reflects the watch’s high-end technology, quality, and the brand’s overall status as a luxury and innovative tech provider.
2. Tiered Pricing for Different Models: The Apple Watch comes in various models, like the SE, Series, and Ultra, each with different price points. This tiered pricing strategy caters to a wide range of customers, from those seeking more affordable options to those wanting high-end, feature-rich models.
3. Price Skimming for New Releases: When launching new versions of the Apple Watch, Apple often employs a price skimming strategy. They initially set higher prices for the latest models, which are gradually reduced over time. This approach targets early adopters willing to pay more for the newest technology.
4. Bundled Pricing with Apple Services: Apple sometimes uses bundled pricing, offering the Apple Watch with services like Apple Fitness+ or Apple Music at a discounted package price. This promotes their services and adds value to the Apple Watch purchase.
5. Dynamic Pricing for Accessories and Bands: The pricing for Apple Watch accessories, like bands and chargers, is dynamic. Apple offers various options at different prices, catering to different styles, functionality, and customer preferences.
6. Geographical Pricing Adjustments: Apple adjusts the Apple Watch’s prices based on the market and region, considering local taxes, import duties, and currency exchange rates. This geographical pricing ensures market relevance and competitive positioning worldwide.

iWatch Promotion Strategy

iWatch is a precise timepiece projected in the market as a fashion accessory. Apple has started several promotional activities to market this new product. The company has also emphasized special features like fitness and health-oriented via ad campaigns. Its ad campaigns are also advertised in electronic and social media, television, and print media through magazines.

Apple Watch was extensively advertised in Vogue magazine with a 12-page spread, primarily focussing on band styles and body combinations. The company has also put up several hoardings to increase its brand visibility. Time listed the Apple Watch as one of the 25 best inventions 2014.

Some Recent Video ads and Print ads for iWatch are:

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