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Chapter 1: Background n
Introduction
At present it is necessary to have a competitive advantage that is motivated
towards technological innovations in the business sector. Large numbers of
companies have to develop their products in order to be one of the leaders in the
marketplace. In this case, Apple Inc. which is a subsidiary of an American
Multinational Corporation called Silicon Valley can be counted as one of the most
remarkable technology firms in the world (Jobber 2010).
Apple was co-found by Steven Jobs and Steven Wozniak who began to create
the first Apple computer in a small garage in 1976. Afterwards they produced
Apple II which was the most successful desktop computer of its time and earned
the most revenue and profit in 1980 (successmagazine 2010). In 1996, Apple
purchased ‘Next Company’ which was an American computer firm for producing
an Apple operating system (the Mac OS) called Rhapsody. Then, Apple lost lots
of income. After that, Steve Jobs, as temporary CEO, rearranged focus on the
company’s efficiency and regain losses from their failure business by divesting
from Newton Company which is a product line of personal digital assistant (Data
monitor 2010). Apple Inc. introduced the iPod and the iPhone in 2001 and 2007
respectively. These products play a significant role for the success of Apple’s
history.
The previous name of Apple Inc. is ‘Apple Company Inc.’. The company has
changed its name to illustrate its expanding products and enlargement
concentrating on consumer electronics in January, 2007 (Data monitor 2010). To
present a new experience revolution of personal computers for serving
customer’s expectations worldwide throughout its introduction software,
hardware and Internet is Apple Inc.’s objective (Fundinguniverse 2010). The 20th
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century was an era of huge growth for Apple which launched the manufacture of
the personal computer. Moreover, Apple continues to develop new efficient
product according to its slogan ‘Think different’ or ‘think outside the box’
(Referenceforbusiness 2010). The company has participated in uniquely
designed computers, development and marketing, communication equipments,
computer servers, MP3 players, network solutions and related other computer
accessories, services and software (Data monitor 2010).
1.1) Business Reasons
Apple Inc. has sold its products worldwide both in online stores and retail stores
with fluctuated income. However, the company has made a great success in
revenue recently. During 2008, the Apple Inc.’s income were £22,735 million or
approximately $32,479 million which increased 35.3% from 2007 (Data monitor
2010). For the last three months to 26 June of 2010, Apple’s net income
increases to £22.8 billion from the quarter last year (BBC 2010).
Apple revenues can segment by geography and can divide into four regions
including The United State, Asia Pacific, EMEA (Europe Middle East and Africa)
and worldwide, as demonstrated in Figure 1:
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(Selected Currencies – US ($), Japanese Yen and Euro) 2008-2010
Figure 1.1: Apple Revenue Growth by Region (Hingley 2010)!
In terms of Asia Pacific, Apple’s expansion increases continuously because high
– tech products are booming in the past 12 months. Although, there is the
economic recession in Asia in 2009, Apple had still grown slowly without
decreasing sales revenue and profit. In addition, Apple has reached 70% in
Asia’s revenue growth as a massive accomplishment in 2010 (Hingley 2010). In
fact, Apple Inc. is not a big market share company in Asia but its global
reputation is rising sharply.
The important turning point of Apple is ‘iPhone’ which is greatly popular
throughout Asia Pacific. The emergence of the iPhone by Apple Inc. has
promoted sales volumes and profits especially in the Japanese market which is
the world’s fourth biggest number of iPhone users, as illustrated in table1:
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Table 1.1: iPhone Usage and Ownership across Asia (Russel 2010)
Global Rank Country Unique iPhones Identified
Population Ownership % Population
4 Japan 1,378,903 127,704,000 1.8
5 Australia 1,207,428 21,431,800 5.63
8 China 725,538 1,324,655,000 0.55
10 Korea, Republic of 530,235 48,607,000 1.09
11 Singapore 402,922 4,839,400 8.33
15 Hong Kong 299,720 6,977,700 4.3
20 Taiwan 174,266 23,046,177 0.76
24 Thailand 153,155 67,386,383 0.23
26 Malaysia 132,288 27,014,377 0.49
31 India 90,314 1,139,964,932 0.008
33 Vietnam 78,611 86,210,781 0.09
37 Philippines 58,041 90,348,437 0.06
39 Indonesia 50,657 227,345,082 0.02
56 Pakistan 22,025 166,111,487 0.013
62 Macao 13,205 542,200 2.44 !
According to table 1, Apple’s sale revenue in past six months, rose to $1.3 billion
including China, Hong Kong and Taiwan. The revenue has reached 200% when
compared over a year (Bangkok Post 2010). The record data will show you Apple
revenue in the Asian market. Thailand is a part of Apple’s Asia market segment
which is in 24th global rank of iPhone usage and ownership; even though, there
are no Apple stores, only retail stores in Thailand such as iStudio, and ibeat
which are premium authorised reseller and authorised reseller orderly (Macsiam
2010). These retail stores are the main channels for Thai customers because
they are not familiar with buying online (Boonruang 2007). Thailand is known as
one of the essential iPhone high market penetration growth rates because
several Thai people still use the smart phone. For this reason, Apple has many
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chances to create its new market (iPhone) for Thai mobile ownership (Russel
2010).
The rapid changes of the Thailand market have stimulated many businesses
especially Apple Inc. to manage their strategy for suitability to consumers in the
present and future.
According to Vertygoteam (2010), to achieve Apple’s strategy in these preceding
years, making advanced innovation, great design and style, being user-friendly
with service on the mind of their business and competence strategy conducts
Apple’s share value to rise 25 times. Apple provides ‘New Demand Creation’ that
doesn’t focus on competitiveness or gain advantage over competitors. On the
contrary, Apple emphasises its business to make competitors out-of-date through
technology and innovation. Apple also doesn’t highlight on preceding market
customer demand (Innodesign 2007).
From many Apple’s marketing strategies as above, I would like to know what the
major Apple strategy for Thailand technology market is and how popular Apple is
in Thailand?
1.2) Personal Reasons
Personally, I am very interested in Apple Inc. in Thailand. Many companies try to
produce the best product such as smart phone in the market share. One
successful product that is outstanding in Thailand is the Apple iPhone. There are
several products selling in Thailand including the desktop and laptop, Macintosh
software and operating system, LifeStyle Gatgets, iPod, iPhone and other
accessories. In addition, the influence of competitive manufacture has changed
the consumer’s trend in Thailand. The important tool for every business to be the
leader is strategy. In conclusion, I have chosen this topic for two reasons. Firstly,
I am strongly interested in Apple Inc. and have used several of Apple’s products.
The second is that I pay attention in the strategy and marketing management of
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Apple Inc. which has been created efficiently and with competency to be the
winner in Thai business.
1.3) Research Questions
This section will evaluate the significant subjects and hypothesis in research. The
questionnaires will be conducted in an easy way to answer and meet research
objectives numbers (2) and (3). Therefore research questions will examine the
following questions;
1.4) Questionnaires
1. What do you think about the Apple products in Thailand? Are they competitive?
2. What about the trend of Apple’s consumer behavior in Thailand?
3. Do you think market strategy can help Apple increase market share and profit?
4. How Apple continue be competitive advantage over its rival?
5. Do you think branding is vital to Apple strategy?
6. Do you have any recommendation for Apple to operate business in Thailand?
1.5) Research Objectives
1. To evaluate the business of Apple Inc. in the Thailand market.
2. To analyse the key marketing strategies and consumer behaviour of Apple
Inc. in Thailand.
3. To appraise the competitive advantage of Apple’s operation in Thailand.
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Chapter 2: Review of the Literature n
At the heart of the research, the literature review is a crucial section because it
contains the key concepts as a whole. Moreover, the objectives of the research is
also discussed as well as planned to approach by gathering important
information that is relevant to the research (Jewell and Hardie, 2010:24a).
There are four main parts in review of the literature as following:
Significance of Information and Technology business and Apple concept.
Consumer behavior and attitude.
Apple strategy marketing management.
Apple reseller
2.1) Significance of Information and Technology (IT) business
and Apple concept
The growth of an information technology (IT) business leads to severe
competition among the companies who deliver these kinds of products. In order
to survive in this tough business environment, they are required to diversify
products with higher technological innovation. Currently, the success of an IT
business depends on how strong its capability is to apply and utilise their strategy
on time over their competitor (Eisenbach, et al.,1999). Furthermore, IT marketing
has a high level of competition due to technology and innovation being in
constant development.
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According to Craven (2008) the Apple main idea as:
Apple operated the main concept company marketing under the principle of
thinking values scope from design and technology. The essential principle will
become valuable that gives Apple a unique high quality product (Craven 2008).
Apple classifies marketing concepts into three categories; customer oriented,
organisation objectives and coordinated market activities. These concepts define
the customer’s needs and give a competitive advantage over competitors
(Bernstein, 2007). The meaning of success is the measurement of a company’s
evolution from share leader to true brand leader. The co-value which shares an
advantage into a leadership position holds real gain benefit (Onpaper 2008).
This part will become clearer to the whole prescience concept of Apple in terms
of importance and define the main marketing concept that Apple applied in
business.
2.2) Consumer behaviour and attitude
Businesses are able to improve their strategy by understanding the consumer
behaviours and attitudes.
“Consumer behaviour” can be defined as the examination of persons, divisions or
organisations and operations that utilise to choose, keep safe, use and sell the
process of products and service, experience or human ideas to find a solution
that meets consumer satisfaction. The influence from this method will give
feedback to generate the consumer trend for the market in each area.
(Consumerpsychologist, n.d.).
Consumer behaviour theory to the Asian consumer is important for any business
that would like to achieve their market target with Asian consumers (Schutte and
Clarlante, 1998a: 4). Thailand is part of South East Asia which has a high growth
in the computer and electronics industry in recent years especially premium
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products. For instance, hard disc drives, circuits and part combination electrics,
and vehicles that Thailand export, place a high value in the businesses of
elements of computers and electronics. In 2010, Thailand is launching more
products to climb up in export market of computers and electronics (Bureau of
East Asian and Pacific Affairs, 2010).
According to Arnould, Price, and Zinkhan (2004), attitude stands for all areas of
business operation such as brand, service, objective and the person that
evaluates positive, negative or neutral. The right attitude can occur consistently
over time that why businesses should be understanding.
Understanding consumer behaviours in all aspects, both positive and negative in
Asia will bring feedback to adopt and improve the quality of products and
services. These also provide consumer motivations and consumer responses
(Schutte and Clarlante, 1998b: 71).
In this part, the leader will understand what represents present consumer
behaviour and attitude in Thailand marketing. This information will benefit
businesses that want to invest in other countries or open a new branch. To
understand the nature of consumers will protect the business from risk.
2.3) Apple strategy marketing management
Anderson and Vincze (2000:4) define marketing management as a business
operation that occurs continuously across business functions in all levels of
processes from devising to implementing strategy marketing.
Furthermore, marketing management can be considered when the planning cycle
is deficient compared with the rapid rate change which can happen in external
environment business (Aaker, 1995).
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Figure 2.1: Business Unit Strategic - Planning Process
(Kolter and Keller 2006:51)
It is essential to create the Business Unit-Planning Process as Anne and Rhonda
(1987) define the most appropriate way to organise business strategy in an
organisation at business unit strategic level. Business level strategy will
demonstrate how to control a portfolio of business.
2.3.1) Business Mission
David (1989) identified the understanding of business mission as the broader
company mission. Thus, it is the business’ fundamental function in terms of the
company aims to target major products and services for customers.
Organisation is able to compete in the market, market segmentation and the
targeting of goods and services. According to the strategy that Apple used in
their business, there are several types of strategy that can be applied and
adapted to Apple. The important strategies that are useful within the Apple
business are the following: (Data Monitor, 2010).
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2.3.2) SWOT
Baker (2000) defined SWOT as a major, effective tool for prognosis, which
depends on accurate diagnosis where is it comprised from strengths (S),
weakness (W), opportunities (O) and threats (T).
APPLE SWOT Analysis
SWOT Analysis will give an idea of how Apple becomes a loyalty brand through
its strengths, weaknesses, opportunity and threat as shown by the following
table. Apple offers ranges of products such as iPod, iMac, iPhone and iPad and
also related software. Apple has shown that the company has a strong brand
image, which allows the company to control the price of its product.
Nevertheless, the company gains a good market share but the high level of
competition in the industry is still remaining (Data Monitor 2010).
Table 2.1: APPLE SWOT ANALYSUS
Internal Challenges External Challenges
Strength (S) Weakness (W) Opportunity (O) Threat (T)
-Strong Brand
image
-Product recalls
-Changing Chips
supplier
-Fine growth in
smart phone
market section
-High competition
in technology
market
2.3.2.1) Internal Challenges
Susan, Aparna and Niclas (2003) define internal Challenges as widely
appraisement of internal environment possible factors for each business to
evaluate across strength and weakness.
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Strength (S)
Apple has a strong brand image which is widely well known and recognised
amongst customers. Recently, it has been shown that the rank of the brand
image of the Apple Company has decreased from 20th to 24th over the period
2008 to 2009 (Data Monitor 2010). The value of the company has increased
from $11,037 million to $13,724 million in 2008 (Bloomberg 2010).
Apple has been producing exceptional products such as iPod, iMac, iPhone, and
iPad which enhances Apple’s brand image due to varieties of products. As a
result of this, the sale and retailing of Apple are also boosted. Moreover, though
most of Apple products are likely to be at a premium price, the demands of the
consumer are significantly increased. For example, on the first day of launching
iPads, the company sold 1,500,000 units @ $499 per unit in the US in June 2010
(Independent Business News 2010). After a few weeks, iPhone4 was sold out of
stock for a while due to massive demand (Bloomberg 2010).
Weakness (W)
It has been announced by Apple that iPod Nano may possibly have faulty screen.
This is because a product’s set has screens which can be broken under impact
However; Apple is willing to replace all damaged items to customers. The
problem is likely to reappear with early iPods where batteries are out of order.
The battery has been recalled and battery cases have been offered to customers
who have faulty items (CNET News 2005).
In 2005, the company stopped an extensive relationship with IBM who were the
biggest chip supplier with Apple. Many specialists have disagreed with this
switching as the change could possibly confuse Apple’s consumers (CNET News
2009).
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2.3.2.2) External Challenges
David and Sheila (1998) mentioned external challenge and examined the
opportunity and threat in the environment. Opportunity is a probability method to
present product and service that can create a superior return. However, a lot of
chances can be perceived as threats to the business market of existing products
then may require a change in a particular product or development of new
products and service for the business to stay competitive.
Opportunity (O)
Apple has been showing opportunity in the Smartphone market section and is
forecasted from the worldwide market as having strong growth in the upcoming
year. Since 2007, apple began to launch the first multi-function mobile phone
(iPhone) which allows the customer to browse the Internet and use applications,
maps on a mobile phone. Apple has since become the third largest player in the
Smartphone market section in 2009. The iPhones have been shipped and
delivered to 80 countries distributors through different channels
(Marketingteacher 2010). The company realises the impact of strong growth of
the iPhone business; therefore they keep adding additional features to the
iPhone to make it even more edgy. By launching iPhones, the revenues of the
company is doubled at the rate of 93.3% ($13,033) 2009 being greater than
2008. Due to the innovative products; iPhone, iPod, iPad and etc which Apple
has been producing, it is predicted that the company will gain more market
shares in the Smartphone market section.
Threat (T)
The biggest threat to Apple’s company is mainly from competitions in technology
markets. To compete with other IT companies and maintain in a competitive
position, Apple has to work hard on market research and development. Customer
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demands can be subjected to economic down turn as most of Apple products are
relatively expensive. Market opportunities are the main market that Apple is
looking forward to focusing on e.g. iPhone. Even though, Apple realises that the
mobile industry has huge competition between experienced competitors but the
company believe they can gain a good percent of market share in the mobile
industry (Marketingteacher 2010).
Apple Business in the Thailand market can be a success by using correct
strategies. The methods to avoid failure and adjust strategy are helping Apple to
stand as a global business. According to Jobber (2010) most achievements
schemes are integrated of three pros, which include being better, being faster
and being closer, the significant key to understanding the target customers for a
business requirement is to receive an explicit performance differential over
rivalries.
2.3.3) Goal Formulation
Philip and Kevin (2006:54) identified goal formulation as a process that the
manager provides to describe objectives which are definitely elemental to
magnitude and time.
2.3.4) Strategy Formulation
According to Philip and Kelvin (2006:56) Michael Porter recommended after the
companies have achieved a comprehensible picture of their firms and
environments, the specific strategic alternatives could be progressed to another
level. It is clear that different companies have different alternative strategies and
situations. However, there are generic strategies, which can be used across the
ranges of the companies. The three main generic strategies that have been given
by Michael Porter are cost leadership, differentiation, and focus. These keys can
be applied when the company is looking for strategic alternatives, yet one of
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these should be followed at a time. For example, differentiation is the strategic
strategy that Apple has been pursuing.
McDaniel and Gates (2007) justify Marketing Mix as a market strategy that
lunches and mixes in all area of business such as product and service,
promotion, price and channel distribution. The essential key of this strategy is for
operation and response to meet the consumer needs in the specific market.
2.3.4.1) Promotion Mix - 4P
The marketing term known as a marketing mix is the fundamental and basic
strategy factor of marketing design. There are four elements of marketing mix,
which are argued by Waterschoot and Bulte (1992);
Product
Price
Place
Promotion
These days, the marketing mix has integrated into many organisations and
applied with wider a category of product goods and markets in order to obtain the
competitive advantages and sustainability of their organisation.
In addition, some author has combined other ‘P’s to marketing mix such as
people, process and packaging but the marketing today depends on 4’P’s as
discussed above. According to Gronroos (1991) the marketing mix known as the
4’P’s are as follows:
Firstly, product is the one part of the marketing mix, which considers about the
tangible, physical products including services. There are many factors that can
be determined in product elements such as brand name, quality, safety,
packaging, warranty and styling. As physical products, it represents various
conveniences and services. Moreover, the important thing that should be
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considered into product decision is the attributes of product goods that match
with the customers’ needs.
Secondly, price is another factor that should be taken into consideration in the
marketing plan because it is the one strategy that might be decided by several
elements such as cultures. For instance, some products have great value in one
culture but on the other hand it might not be good in another culture. Additionally,
the high quality of a product is obviously perceived as having a high price for
various product types. There are many elements of price decision, which are
volume discount, early payment discounts, seasonal pricing and price flexibility.
Furthermore, the distribution channels can determine the price. For example, the
product design should be suitable to package, transport and shelf.
Place considers getting product goods to the customer. It should be thought of
over the distribution channel, which is the connection between the consumable
goods and productions of business involved with market converge. In other
words, it provides product goods and services between consumers and
merchants. Increasingly, inventory management, warehousing, distribution
centres (DC), order processing, transportation and logistics are the factors that
have importance role in place decision.
Finally, promotion must combine with the other ‘P’s in the marketing mix.
Promotion is another strategy that seems like the communication channel of
marketing. It acts for the communication of information about the products that
expect to get positive feedback from customers. More importantly, the promotion
is the most obvious thing that can attract customers who have not purchased and
may not be interested in that product for whatever reason. Moreover, there are
three elements that take place in promotion decision, which are advertising, sale
promotion and publicity.
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2.3.4.2) Blue Ocean Strategy
Blue Ocean Strategy is a worldwide popular business strategy. The objective is
not concentrated on competition in the existing market but to make a new market
area (Cotrugli Business School 2008). Blue Ocean Strategy is to create a bound
value for both industry and its customers (Kim and Mauborgne 2005).
Figure 2.2: Red versus Blue Ocean Strategy (Blueocean 2010)
Source: http://www.blueoceanstrategy.com/downloads/bos_web.pdf
Kim and Mauborgne (2005) described Red Oceans as all the existing business
and business boundaries are identified and accepted. The rules for competition
are perceived. Businesses attempt to outperform their competitors to gain more
market share in existing demand. In terms of Red Ocean, the market space
becomes crowded, reducing probability of profits and growth. The product
becomes a commodity with cut throat rivalry.
On the other hand, Blue oceans stands for the unknown market space which
does not exist in present businesses. Blue Ocean is used to create customer
demands than to fight over existing ones. In addition, there are abundant
chances for both benefit and rapid in economic growth (Blueoceanstrategy
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2010). The competition is unrelated because the rules of strategy are waiting to
be established. Blue Ocean Strategy (BOS) can be described as having both
wider and deeper potential of market space that is not yet discovered.
(Aluebasedmanagement, 2010).
Apple implemented Blue Ocean Strategy to gain a digital music market share.
Apple noticed from the results of illegal digital music downloads totaling more
than two billion music files for each month in 2003. Apple then created a new
technology called “iTunes” which is an online music store where consumers can
download an individual song or an album of new or old music (Blueoceanstrategy
2010). iTunes has changed the music business globally from CD and cassette
and has been offering downloads at a cheap price of only 99 cents per song. The
competitive advantage innovation of iTunes and launching a new product “iPod”
has increased Apple’s business value in the global music industry (Economic
Journal Resource 2010).
This section will consist of inclusive acknowledgement in regards of marketing
management with Apple’s strategy in key marketing strategies to become
successful over competitive companies in several countries especially the
Thailand market. Several key marketing strategies and major competitiveness
that leads Apple to be a success are perceived.
2.3.4.3) Positioning Strategy
Segmentation decision is the way to introduce the business product position
strategy. The company has chosen the target segment; administration requires
developing a positioning strategy to contain the selected segment. Environment
is the most important factor that is an effect with consumer preferences that
imposes the company to rethink its positioning strategy. (Masaki and Kristiaan
2011:233) By positioning strategy, Apple changed its name from Apple
computers to Apple. Due to the company focus on consumer electronics rather
than a computer industry business (Forbes 2007).
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2.3.4.4 Global Banding
Global branding is an essential strategic issue to represent the global market.
Brand has the capability to automatically elicit shift in consumer behaviour that
can influence fashion automatically (Graninne, Tanya and Gavan 2008).
Nevertheless Philip H. Kotler (2000) defines a brand as
A name, term, sign, symbol, or combination of them which is intended to identify
the goods and services of one seller or group of sellers and to differentiate them
from those competitors (Kotler 2000).
Programme Formulation
When the fundamental strategies are accomplished, the detailed support
programme should be started. To be able to gain the technical leadership in the
market, the programme must be planned in order to strengthen the R&D
department.
R&D Strategy is used to explain the forwarding technology in both products and
production process (Greenley, 1989).
Implementation
Generally, most strategies are well stated at the high level of conceptual terms.
For better implementation of organisation, it requires to be explained at the
functional level, where more detailed policies will be provided. The following
functional areas are the specific policies that the strategies should be translated
to (Netmba 2010)
- Marketing
- Research and Development
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- Procurement
- Production
- Human resources
- Information systems
Feedback and control
Business has to track the outcome and monitor the new development strategy.
The company cannot control the environment, it is stable from year to year. In
contrast, environments change rapidly in an unpredictable way. Before it does,
the company requires to examine and evaluate all its process such as goals, or
even strategies (Philip and Kevin 2006:59).
2.4) Apple Reseller and in Thailand
In Thailand, there are no Apple stores open in this area. Apple authorised service
providers where retailers are allowed to sell Apple products in the Thailand
market. iStudio is Apple’s premium reseller store the smaller stores being called
iBeat.(Wisont 2009). The reason why different stores have different names is due
to the policy of Apple. For example, Apple allows the reseller to open as iStudio
when they open in the premium area is a decision made by Apple Thailand
management team (iStudio 2010).
The main Apple products and services are personal computers, portable
electronics and mobile phones. Apple also sells related software, operation
system and other accessories (Data Monitor).
This section will demonstrate how Apple’s gain a competitive advantage over
arrival companies. This is because Apple provides more choices of products and
services to consumers, online purchasing, high quality products and good
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support term services. Macsiam (2010), although Thailand has no Apple store for
consumers to buy the product, but there are 28 premium reseller stores
excluding ordinary reseller store to support consumer needs.
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Chapter 3: Research Methodology and Research Plan
n
3.1) Research Perspective
Jewell and Hardie (2010:56) state that in order to answer the research question
reasonably, there are major perspectives that include the following:
The first perspectives are (Jewell and Hardie 2010:56):
First Perspectives Characteristics
1. The positivist approach Can be measured by experiment which is adapted
discover the truth and fact.
2. The interpretivist
approach
Establishing analysis and interpretive valuing is
developed by method of data analysis
3. The realist approach Mentions culture, perception, and belief. To apply
for decision making in business area (Zhu 2006).
The second perspective is data collection which includes anthropologist
observation, experiment and geographic field trip. (Jewell and Hardie 2010: 57).
Last but not least, deductive approach, also as known as theory testing will
create a hypothesis or theory. Subsequently, it is necessary to try out theory in
order to find a map for the theory. In contrast, theory forming so-called inductive
approach will be initiated by gathering the data and consistently developing until
it begins with the theory. Furthermore, while the positivism is correlated by
deductive approach yet interpretivism is related by inductive approach (Jewell
and Hardie 2010: 57).
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The researcher has decided to select inductive and deductive approach to apply
in the research plan. This research perspective will plan to utilise information
both from quantitative and qualitative data collection. Jewell and Hardie
(2010:57b) state that the positivism is related to deductive approach whereas the
interpretivism is correlated with inductive approach.
3.2) Research Design
A methodology of research is gathering and analysing important data to perform
the solution in the research design (Sekaran and Bougie, 2010). In terms of
research design, there are five different types including cross-sectional,
experimental, longitudinal, comparative and case study (Bryman and Bell 2003:
44-69, Jewell 2010:71).
This research will be conducted through comparative design to assemble data
and also applied to compare each strategy that has been used for Apple’s
operation. According to Bryman and Bell (2007) the researcher chose to use
cross-sectional design because it is schemed to conduce towards over one case
at a time. This case study also gains advantages from previous work’s analysis
and theory to express data collection.
3.3) Data Collection Methods
This research consists of both secondary and primary data as major
methodology data collection methods that meet all of the research objectives.
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3.3.1) Secondary Data Collection
Secondary data is very often exploratory and/or descriptive and it will be able to
use in explanatory or causal study (McGivern 2009a). The first objective will be
completing by employing the up-to-date data collection from journals, articles,
newspaper and Internet in both English and Thai sources that relevant to this
topic. To collect the secondary data would gain clearer in objectives by
researcher entering e-library from Coventry University website to access some of
online database. For example, the online resources that the researcher uses to
find data and information which includes Emerald Global Market Research
Information Database (GMID), EBSCO, and Mintel.
Nevertheless, there are limited sources of secondary data so the researcher
decided to collect primary data for further information that generates objective
numbers (2) and (3)
3.3.2) Primary Data Collection
The researcher chose the two methods questionnaires and interviews to achieve
the objective numbers (2) and (3)
Questionnaires
One of the most popular data collection methods in survey strategy is the
questionnaire (Saunders, Lewis and Thornhill 2007:355). That was the main
reason why researchers would ensure all questions in a questionnaire collect the
correct data. In addition, the respondents could be comprehended and answer
the question as to succeed the research objectives.
However, the researcher provided 200 questionnaires to the Thai consumer who
used Apple’s product via monkey survey (www.monkeysurvey.com). There will
be separated in 200 questionnaires via Internet with Facebook and email. This
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research established 19 close questions and one open question. After they were
all approved from the researcher’s supervisor, the online questionnaires will be
sent via email, and web-ling on FaceBook. The target respondents have to be
controlled and accomplish with friends in Thailand, family, senior students,
friends of friends and researcher network connection to gain the feedback by
sharing a web-link on FaceBook and sending e-mail invitations. This research
questionnaires are set out clearly and easy to answer. The question expects to
get at least 50% of response rate and wait to get feedback within seven days that
will be adequate for this research.
Money and time saving are the benefits of using a questionnaire via the online
method. The researcher can launch a questionnaire by using the Internet to
broadcast the questionnaire. Jewell (2010:76) stated that however, the weakness
of a questionnaire was the complexity gathers the right people to take part on this
research and also judging how much time is to be taken by the people doing the
survey.
The researcher has known many people who are Apple’s consumers and
perceived Apple’s concepts and its competitive advantages. The researcher
strongly assures that they are fully capable to be representative.
Semi-Structured in-depth interview
According to Jewell (2010) in master dissertation, the semi-structured interview is
the most widely used for gathering data. While Marshall (1998:61) stated that the
choosing of people who can provide the researcher with the most data and
information is a strategy called informant sampling. Besides, according to Bell
(2005:158) mentioned that questionnaires and interviews are the same
procedures. The researcher conducts the preparation of interview questions the
same as questionnaires. Selecting the topic, design questions, concept of
analysis consideration and preparation of schedule and pilot.
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The researcher conducted interviews of six Apple staff who work at the Apple
retailer in Thailand. The researcher has a cousin who is employed as a manager
reseller store in Apple Thailand and he confirmed that the researcher possesses
the required abilities to interview him. So the researcher will have the information
from the interview of one Apple manager and at least six Apple staff who are not
difficult to approach because the researcher graduated in a Bachelor’s degree in
terms of Information Communication and Technology (ICT) and the researcher
has a friend who works for Apple and has connection with Apple retailer in
Thailand. The interview was conducted face-to-face and used the Internet by
skype program. Each interview lasted at least 30 minutes. The researcher
designed to interview on the skype program or the telephone instead. For the
interview questions,
For the first part of interview, this section is to require finding out more about their
personal background such as full name, company-name, position and total work
experience within the Apple retailer in Thailand. The researcher wants to know
important factors in order to understand the relevance given to these personal
answers in case there are opposing ideas.
The second type of questions in this research mentioned to the interviewee of its
competitiveness and the idea about Apple products in Thailand such as “What do
you think about the Apple products in Thailand? Is it competitive?” Next, the
questions refer to the trend of the Thailand market and study consumer
behaviour also in their way to make a decision to buy Apple products are also in
this part of questions asked. One question aiming at this know-how is “What
about the trend of Apple’s consumer behavior in Thailand?”
The third question is relevant to the subject of market strategy (Do you think the
market strategy can help Apple increase the market share and profit? How can
Apple continue to have a competitive advantage over its rival? And do you think
branding is vital to Apple strategy)
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The last subject is about recommendation of Apple strategy in Thailand’s market.
(Question: Do you have any recommendation for Apple to operate a business in
Thailand?)
The researcher will conduct from the general Apple concept to a specific
concept. Then start to interview with basic marketing strategies and a competitive
advantage from the other company. The result will meet the research objective
numbers (2) and (3).
This interview method will help the researcher to understand about strategy
marketing and management in the Thai market. The source directly from the
interview is very reasonable. Therefore the researcher will receive the effective
information to generate the right objective of research.
3.4) Limitations of research
Despite the many disadvantages of secondary data, they also post some
dangers. Using secondary data should always assess the accuracy of the data.
The researcher is afraid that they will not allow the researcher to interview six
people in Apple Thailand through face to face. Some branches of Apple resellers
are reluctant to provide company information. If it will be happen while The
researcher is collecting the research data, The researcher will interview in the
branch that the cousin is a manager.
Validity
According to Jewell (2010: 110) defined validity is disputably the most significant
standard which the question to research can be addressed. Validity is a key
concept in assessing the quality of research information to measure and give the
research an accurate result. The accuracy of research can be measured by
finding the relevant information. To review the research on effective interventions
to meet the participants through the questions as appropriate adjustments. Also
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for the accurate analysis of why the researcher had to study existing methods
and found the flavour to suit the research set out.
Reliability
The researcher realised that all of this research data would be matched in good
objectives. According to Jewell (2010:110) the reliable of research if it managed
in the way that supports other researchers to duplicate the result and the most
simplest method of understanding reliability is examine it in the in dept context of
questions in the survey. Furthermore, Bell (2005:117) defined the concept of
reliability as a scope to test or a method to generate a similar outcome under
constant conditions on all opportunities.
Generalisability
The research is an extent to find and summarise what research discovers and
utilises it to another context. The good quality of research is design for the
capability to generalise is maximised. Jewell (2010:110) defined external validity
or generalisability was referred to validity as above. A scope for the researcher
can be finding and applying another scope. The secret of the best researches is
to plan and design it in order for the capability to generalize. On the other hand,
car must be taken to resist the temptation too much.
3.5) Ethical Considerations
!
3.5.1) Research Ethics
The researcher understood clearly the requirement of Coventry University that
need researchers to submit all reports within their acknowledgments and ideas.
The researcher can be confidence do follow the Business Environment and
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Society (BES) ethics student handbook under BES ethics procedure at Coventry
University rules.
The questionnaires and interviews were discussed and approved by a supervisor
before launching. The researcher will not allow children, disorderly people or
elderly to do the questionnaire and not interview in an uncomfortable place.
Although the researcher make certain by doing a checklist before answering
questions and sign the Business Environment and Society (BES) compliance
form. For the BES form had to be approved by a supervisor and is attached with
this dissertation as an appendix.
The researcher will try to do the low risk ethical approval form with honestly
created and analysed research.
3.5.2) Plagiarism
The researcher has already read guidelines and understood the regulations and
rules of plagiarism in Coventry University. This research strictly follows the
plagiarism rules. According Coventry University Harvard Reference Style, the
researcher uses the citation and quotation. Not copy from other sources because
the researcher always summarised and paraphrased the author’s words into their
own words and then did the reference. Finally, the researcher will upload the
draft research document to check the anti-plagiarism program before submitting
the final research document.
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Chapter 4: Data Analysis and Presentation n
Introduction
The data analysis and presentation of this research comprises of two sections.
The first section is quantitative analysis where the study findings came from 200
online questionnaires responses. The second is qualitative analysis, to deliver
study findings in regards from five Apple staff and one Apple manager
interviewers.
4.1) Quantitative Analysis
The data of each questionnaire will be implemented to information through an
online survey called surveymonkey (www.surveymonkey.com) then presented in
the form of a table, bar charts where suitable. The data collection was selected
from 200 questionnaires of Thailand customers who have used Apple products
via email and FaceBook.
The researcher has separated the questionnaires into three parts; Part A:
Demographic information, Part B: General behaviour regarding Apple products,
And Part C is about customer perception of Apple products.
Study Finding
Part A: Demographic information
The report from this survey mentions gender, age, level of education, current
occupation and income range of Apple consumers in the Thailand market.
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From the 200 Thai respondents who have bought Apple products in the Thailand
market 124 respondents are female (62.3%) while Apple customers who are
male total 76 respondents (34.7%). The majority of respondents are aged
between 18-25 years old (111 respondents and 55.5%) but the minority category
age of respondent are more than 45 years old which covers 4 respondents or
2%. Most of the respondents, about 58.5% (117 respondents) have an education
level at Post graduate/Master degree level, followed by undergraduate which
shows 73 respondents (36.5%), Diploma 7 respondents (35%), high school or
below 2 respondents (1%) and Doctor/PhD 1 respondent (0.5%) respectively.
There are current occupations including: Unemployed person, Employee,
Student, Business owner and the other occupations. The majority of respondents
are Employees which covers 43.5% or 87 people of the total. Furthermore, it is
followed by Students, which shows 40% or 80 respondents from Apple Thailand
customers. Then Unemployed represent 7% or 14 respondents out of all. The
other two occupations of respondents are business owner and other occupations
covered 7% or 14 respondents and 3.5% or 7 respondents respectively. As
income level is concerned, they are divided into five ranges. The majority of
respondents covered the range of income £200 to £500 which represents 46.7%
or 92 respondents of the total. Next, there are 26.9% or 53 respondents with the
level of income £500 to £1000. Then there are 13.2% or 26 respondents covered
in the income in the period that is less than £200. Finally, the level of income
more than £1000 is at 3% or 9 respondents.
All the details and information of demographics are represented in the table
below.
Table 4.1: Demographic Characteristics
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Key finding No. of Respondent Percentage (100%) Gender
Male
Female
76
124
37.7
62.3
Age 18-25
26-30
31-35
36-40
41-45
Older than 45
111
50
25
7
3
4
55.5
25.0
12.5
3.5
1.5
2.0
Level of Education High school or below
Diploma
Undergraduate
Post graduate/ Master
Doctor/ PhD.
2
7
73
117
1
1.0
3.5
36.5
58.5
0.5
Current Occupation Unemployed
Employee
Student
Business Owner
Other
14
87
80
12
7
7,0
43.5
40.0
6,0
3.5
Income Range Less than £200
£200-£500
£501-£1000
More than £1000
26
92
53
20
9
13.2
46.7
26.9
10.2
3.0
Part B General behaviour regarding Apple products
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Figure 4.1: The sources that allow customers to know Apple products in Thailand market.
The pie graph above represents the sources that allow people to know Apple
products based in the Thailand market. It can be seen that the majority is 76.2%
or 141 respondents of the total had identified Internet with the minority being
22.7% or 42 respondents having selected newspaper as illustrated in figure 4.1.
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Figure 4.2: How people know Apple products categories.
This table demonstrates how people know Apple products and if a customer has
more chance to know in more than one way, respondents can select more than
one choice. As a result, there are 141 respondents or 76.2% who know from the
Internet, 100 respondents or 54.1% who know from word of mouth, 82
respondents or 44.5% who know from magazines, 68 respondents or 36.8% who
know from family and relatives, 49 respondents or 26.5% who know from Apple
retailers and 42 respondents or 22.7% who know from newspapers.
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Figure 4.3: Type of Apple product that customers have
The bar graph above illustrates Apple product categories that people bought in
the Thailand market with some of them selecting multiple Apple products that
they own. The product categories are iPhone, iPod, Apple’s other music related
products and services, Apple’s Internet software, Portable, Apple’s software,
Desktop, and iPad respectively. Most of the participants, about 70.3% or 120
respondents came from iPhone followed by iPod with 52.7% or 96 respondents.
Moreover, Portable and Apple’s other music related products and services
covered the same result from the survey, being 23.1% or 42 respondents.
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Figure 4.4: The criteria that make people buy Apple's products.
The bar graph provides information about significant criteria that make people
buy Apple products with 14 respondents answering N/A in this question and the
respondent capability of selecting more than one answer. The most significant
factor to encourage peoples interest in Apple products, is design which is covers
144 respondents followed by Innovative Technology (126 respondents), Product
Performance (122 respondents), brand (122 respondents), Material (41
respondent), Service (27 respondents) and Price (23 respondents) consecutively.
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The satisfaction of respondents following purchase of Apple’s products:
On the topic of respondents’ satisfaction, the following scales were applied as:
1 = Extremely dissatisfied
2 = Dissatisfied
3 = Neutral
4 = Satisfied
5 = Extremely satisfied
Table 4.2: Evaluation respondents’ satisfaction by using seven attributes
Attributes
Brand Design Material Innovative
Technology
Product
Performance
Price Service
According from the table above, there are seven attributes that respondents
evaluated. They are Brand, Design, Material, Innovative Technology, Product
Performance, Price and Service.
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Figure 4.5: Response choices of satisfaction criteria after people bought an Apple product.
As figure 4.5 represents the outputs from 184 respondents (16 respondents
skipped this question) which established that most respondents selected neutral
or satisfaction level 3 followed by dissatisfied or satisfaction level 2 and satisfied
or satisfaction level 4 respectively.
In regards to the result from figure 4.5, the majority respondents answered
Neutral (Satisfaction level 3) including the following attributes:
Brand: 44.8% or 82 respondents
Design: 48.9% or 90 respondents
Material: 53% or 92 respondents
Product Performance: 45.3% or 82 respondents
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As the questionnaires result shows the major question of respondents answered
Dissatisfied (Satisfaction level 2) which includes the follow attributes:
Service: 51.9% or 95 respondents
Price: 50.5% or 93 respondents
In addition, the results show that the most respondents selected Satisfied
(satisfaction level 4). It represents the attribute as the following:
Innovative Technology: 52.7% or 92 respondents
Figure 4.6: The level of Apple product satisfaction
Figure 4.6 represents the bar graph that demonstrates the result of ranking
attributes of this research which are brand, design, material, innovative
technology, product performance, price and service. As a result, the first rank of
these attributes is innovative technology followed by design, product
performance, brand, material, service and price respectively. In terms of
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satisfaction level, the key findings show the generally level of Apple product
satisfaction fulfillment at the goal level 4 or Satisfied after buying an Apple
product. Consider the criteria of innovative technology with the largest group of
respondents 52.7% or 97 respondent as illustrate by the figure 4.6.
Figure 4.7: The barriers that prevents people from buying Apple products.
From figure 4.7 it can be seen that 78.7% of 183 respondents (17 respondents
skipped this questions) had selected Apple’s product price, 21.3% covered by
limited availability in stores, 14.8% had chosen limited product capability, 14.2%
stated that Apple products are difficult to use and 11.5% had selected limited.
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Part C: Customer perception of Apple product
In terms of consumer satisfaction, there are five scales applied which are the
following:
1 = Extremely Dissatisfied
2 = Dissatisfied
3 = Neutral
4 = Satisfied
5 = Extremely satisfied
Table 4.3: Evaluation of consumers’ satisfaction by using nine attributes.
Attribute
Background of Apple’s
Activities
Believe market strategy is
a key to success
Consider the brand rather
than the price
Buy only at Apple store Software and Application
suitable for life style
Compare Apple’s product
feature with other
companies
Preference to buy Apple
products
Brand loyalty Consider after sale service
As the table 4.3, the researcher provided nine attributes that were evaluated by
consumers’ who responded to this questionnaire.
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Figure 4.8: The factors which customers consider when buying an Apple product.
As in figure 4.8 it can be seen that results from 179 respondents (21 respondents
skipped this questions) that generate the most respondents selected Satisfied or
satisfaction level 4 followed by Neutral or satisfaction level 3.
In terms of Satisfied or satisfaction level 4, the results that most respondents
selected include the following topics:
Believe market strategy is a key success: 87 respondents
Consider the brand rather than the price: 61 respondents
Buy only at Apple store: 57 respondents
Software and application suitable for life style: 66 respondents
Compare Apple’s product features with other companies: 66 respondents
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Preference to buy Apple product: 75 respondents
Brand loyalty: 69 respondents
In addition, the most respondents who selected in terms of Neutral or satisfaction
level 3 include the following topics:
Know background of Apple’s activities: 93 respondents
Consider after sale service: 71 respondents
Figure 4.9: The level of Apple consumer satisfaction
Furthermore, all the results generated consumers’ satisfaction level on nine
attributes as demonstrated in figure 4.9
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Questionnaires Data Analysis and discussions
1. To investigate the overall Apple consumers’ satisfaction and characteristics of demographics.
Figure 4.10: The relation between female and age rage of Apple consumer.
From table 4.1 characteristic demographics that represent the most respondents
of gender are female which covered 124 respondents (62.3%) who are Apple
consumers in the Thailand market from the total 200 respondents’ survey.
According to the cross relation finding of female and age, it can be seen that the
important relationship between them and consumer satisfaction illustrated as
figure 4.10. The majority group was female in the range of 18-25 years old that
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had been bought an Apple product. Thai teenagers (age 18-25) always bought
mobile with high technology such as iPhone that has more application and is
user friendly for daily-life. According to Apple’s profile report (2008) Apple has
operated an interest and service in a unique market segment. Apple has broad-
respect and has high value in the market brand which is attractive to teenagers
with long experienced users. These teenagers, especially females believe that
Apple products such as iPhone and iPod are likely jewelry accessories.
According to the level of education background from this research, Post
graduate/Master level majority group of respondents which is covered by 117
respondents out of 200 respondents followed by Undergraduate which covers 73
respondents. Due to the growth rate of telecommunications and Information
technology in the Thailand market growth is expected to rise by 20% in the year
2010 (All Business 2010). These results represent Apple product demand and
will increase in with both Post graduate/Master and Undergraduate level of
education, who require the products which have a trendy and fashionable image.
In addition, in terms of occupation and income, Thailand has a lower middle
income (NationMaster 2010). Income variability is the most relevant to
respondents in the range of £201 to £500 and £501 to £1000 consecutively while
most respondents current occupation are employee and student respectively; 87
respondents or 45.1% ; 80 respondents or 41.5%.
2. To investigate the overall Apple consumers’ satisfaction in terms of consumer behaviour characteristics.
According to the survey, 76.2% or 141 respondents overall know Apple products
from Internet. Online communication can be used to increase company profile in
order to raise awareness of that market segment. This is because through the
promotion mix, concepts can be changed or competition over competitors where
the market exists. For instance, Apple represents products via the Apple website.
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Moreover there is an advertising project from Youtube called the “Get a Mac”, the
most watched advertisement that has generated a lot of success (Ashcroft and
Hoey 2001)
Furthermore, there are 53.1% of respondents who perceive Apple products by
word of mouth. Mangold and Faulds (2009) suggested that product and service
should be conducted to encourage social media based conversation as word-of-
mouth.
3. To investigate the overall essential key success drivers
Based on the literature review in chapter 2, the key success of Apple in the
Thailand market involves Apple’s promotion mix.
Research results from questionnaires online represent respondents who took
part in this survey stated which Apple products have been the most popular with
Thai consumers. The iPhone covered 128 respondents followed by iPod which is
covered by 96 respondents from the total. iPhone was launched in June 2007, in
the USA with consumers queuing up for a chance to buy the iPhone which sold
over 500,000 units within a week. iPhone is the most successful Apple product
and has currently sold 42 million (IEEE Xplore 2010)
Kingsley-Hughes (2009) indicated the key successes of Apple as the following:
Products always improving innovation
There is an attraction with both new and existing consumers to a company that
always updates and offers high product value to the end-user.
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Advertising and Promotion
Apple has a huge funds and it provides a budget spread to international Apple
branches in terms of promotion mix strategy. This is because Apple Mac gains
competitively over the general PC.
Consumer satisfaction
The good response from consumers can be noticed not only by consumers re-
buying Apple products. However consumers can spread by word of mouth how
they are satisfied then bring in further sales in order to become brand loyalty.
Lack of Window
Window is the most popular operating system which was extensively used by
many consumers to be a lack of success, although many consumers shifted from
windows operating system to Macintosh operating system.
On the other hand, the most significant criteria when consumers buy Apple
products can be interpreted from the results of 144 respondents selecting Design
followed by innovative technology (126 respondents) then product performance
(122 respondents) respectively. Apple senior engineering manager ‘Michael
Lapp’ cited in Walters, 2008 said the organisation process proceeds throughout
the advancement of any applications while other competitors try unsuccessfully
to get a good design and be highly technologically innovative ( Walters, 2008).
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4. Apple products should raise consumers satisfaction
Figure 4.11: Apple sale revenue and Profits in Billions from 2001 to 2010
(£1 = $1.5548, at 9 Jan 2011)
http://lowendmac.com/ed/fox/11ff/apple-decade.html
Based on figure 4.11 it can be assumed that revenue and profit continue to
increase every year from 2001 to 2010. The objective of Apple is to be a leading
technology provider globally and develop state-of-the art products for consumers.
There is a probable trend that is the fast development distribution channel called
the “internet” which is a mass market for Apple in which iTunes was conducted.
ITunes represents the successful market strategy “Blue Ocean”. However Thai
consumers like to download illegal digital music and applications rather than buy
from iTunes. Apple lost market shares in this area so Apple attempts to offer tons
of music for consumer at a low price. (gotomanager 2010)
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4.2) Qualitative analysis
Qualitative data is a descriptive valuable data which is unable to measure
numerically. The researcher conducted interviews about the Apple market
strategy. These interview questions are designed to ask the person who works in
an Apple store in Thailand. These interviews allow interviewees to answer from
their own opinions, experiences and cognitions (Bogdan and Bilken 1982).
Furthermore, the researcher can find the final summary from collecting
documentary and semi-structured specific interviews. Then collecting and
improving until reaching the conclusion.
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Interview Result
Table 4.4: The result from six interviewees
Question Interviewvee1 (Apple manager)
Interviewvee2 (Apple Staff)
Interviewvee3 (Apple Staff)
Interviewvee4 (Apple Staff)
Interviewvee5 (Apple Staff)
Interviewvee6 (Apple Staff)
1. Could you please tell your name and your age please?
Not specify 32 years old
- Thipsucha S. - 25 years old
- Teerapat P. - 27 years old
-Sararin M. - 23 years old
-Prach S. -24 years old
- Vorapot S. - 28 years old
2. How long have you been working here?
6 years
2 years
Two and a half years
- 3 years -one year 4 months - 1 year
3. What do you think about the Apple products in Thailand? Are they competitive?
- Teenagers and workers, have fashionable. - The marketing mix is very significant in Thai market. - Yes
- The Apple’s products are quite popular in Thailand. People can notice that most of Thai people use iPhone 4 or Mac. -Consideration to measure the success on how many branches that launches in Thailand. - Yes
- Apple Thailand may lost some opportunity to sell the products to some of the Thai people that is eager to use a new product - Yes
- Apple is like a fashion. - Apple products are very popular especially iPhone - Thai people are strongly Apple addict. - Yes
- Apple products and its brand are unique. It is different from other competitors. -Yes
- Apple not only sells on computers but also introduces a new generation of digital products. - Apple products are well known about their performance and style. -Yes
4. What about the trend of Apple’s consumer behavior in Thailand?
- Thai consumers love to know and learn new technology and innovative products. Whatever in trend, they are tending to buy.
- Apple is a company with a great marketing and an elegant design of Apple’s products with multi-tasking that always stunning people. - Thai consumers think Apple is a Fashion brand.
- People in Thailand tend to use more of the Apple products. The reason may from the appearance of the products themselves, the quality of the products, and also about the belief that you will be cool to use Apple products
-The trend of Apple’s consumer behavior in Thailand tends to addict Apple product like Apple products’ family.
- Most of Apple’s consumers in Thailand try to move themselves to a convergent or bundle product.
-Most of consumers in Thailand have more than one Apple product.
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Question Interviewvee1 (Apple manager)
Interviewvee2 (Apple Staff)
Interviewvee3 (Apple Staff)
Interviewvee4 (Apple Staff)
Interviewvee5 (Apple Staff)
Interviewvee6 (Apple Staff)
5. Do you think market strategy can help Apple increase market share and profit
- Yes, sure. - The Advance Design System (ADS) often show the high technology with incredible features that allure consumers to buy their products. - People buy more product of Apple, it will increase the profit which will make a stakeholder who sees the opportunity invests
- Yes - Marketing strategy of Apple has a great impact on consumer behavior. in Apple and that will increase market share.
- Absolutely yes. - The strategy should be carefully planned since the consumer behavior of Thais is quite different from the western people.
- Yes -The strategy is really help to convince customer to really want their products.
-Yes - It would help if Apple try to push their product with different market strategy.
- Yes - The market strategy can help Apple to develop the package that can get the customer’s satisfaction and get maximize of its performance. - The market strategy can obtain maximum profit.
6. How Apple continue be competitive advantage over its rival?
- Apple has very strong positioning itself. - The trend of customers is also growing to the same way of strategies. - Even it is very competitive market in Thailand, Apple still can maintain sells, market share, also the profit, and Apple is still being the leader of the innovative brands in Thai market.
- Apple has to continue produce the products that best suite consumers’ satisfaction
- They have a great quality and innovation in their products along with the frequent improvement to their products.
- Apple keeps the identical of the design of their products. - Apple should create more products and more applications for the new markets.
- Apple products should be unique, reasonable price, cover all market sectors - To provide more customer service center in Thailand
-Keep and maintain Apple’s high standard.
7. Do you think branding is vital to Apple strategy?
- Yes - Branding is needed for Apple strategy.
- Yes - Branding is a very important strategy, it will keep consumer with Apple. They will think whatever they buy it has to be Apple.
- Yes - It is quite important. The brand always within customers’ minds. Making people recognize Apple with a product is important to the strategy.
- Yes - Brand royalty can make Apple gain very strong result in sale revenue and profit. -Brand name is often most valuable asset.
-Yes -The consumers satisfaction and brand loyalty are very important to its strategy
- Yes -Strong brand can create market share and profit in short time.
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Question Interviewvee1 (Apple manager)
Interviewvee2 (Apple Staff)
Interviewvee3 (Apple Staff)
Interviewvee4 (Apple Staff)
Interviewvee5 (Apple Staff)
Interviewvee6 (Apple Staff)
8. Do you have any recommendation for Apple to operate business in Thailand?
- Apple should consider expanding Apple stores with fully services in order to serve highly demand of the customers during the next year.
- The old generations still believe that Mac is for a person who uses for graphic design. Thus, Apple should change the perspective of that generation
- Apple Thailand should understand more to the customer behavior and adapt a strategy to Thais.
-Apple product should have move advertising and give more information about Apple products. - To provide service for customer who has interesting its products.
- Apple should expand Apple retailer and open Apple store in Thailand.
-Apple should research and apply technology and strategy to fit for local customer.
!
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Interview Data analysis and discussion
1. The competitiveness of Apple products
From the results from table 4.4 it can be assumed that all interviewees agree that
Apple products are competitive. According to interviewee 1, Thai general
manager of Apple retailer Digital Gateway, indicated that Apple products are very
competitive, as they are innovative products. The majority of Thai customers,
especially teenagers and workers all have a fashionable lifestyle. They like to buy
hi-technology products and are always up to date with the new version if it is
launched into the market.
As a result, the marketing mix is very significant in the Thai market if consumers
want to be the leader. Even Apple have to differentiate product features, specific
lifestyle of our customers, and so on. Apple still needs to spend on advertising
and promotion (Peattie 1997). Apple also needs to co-operate with their
telecommunication partner or the third party for the iPhone that people can see
from the launching of iPhone4 for example. Moreover, Apple is now developing
the application on iPhone with the retailer for customers
Regarding table 4.4, it can be seen that almost all interviewees answered Apple
products are unique which is differing from other companies and its brand is also
very popular. In terms of Apple product, it can be seen that the Apple brand is
fashionable. Some Apple products usually launch late in Thailand as the Apple
US thought that it is a third-world country and categorised it in the third wave of
their products launch. For example, iPad already launched in US about 6 months
ago, but it is going to release in Thailand about now (Apple 2011).
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2. The trend of Thai consumer behaviour
From the interview results, interviewee 1, said most of the customers among
teenagers until middle age of workers who love to perceive new technology and
innovative products. For example, Mac laptop and desktop computers, Apple has
unique features. In terms of the existing customers, they will continue to buy it.
For the new customers, it is not that hard to get them to buy this product.
In addition, Apple can maintain its sales as they have new versions to establish
into the market all the time. The important thing is the design of the iPod is not
dated and everyone wants to own at least one iPod.
Besides, iPhone, customers change their handset more often than other
categories. Honestly, some of Apple existing customers have changed to buy
other brands (BlackBerry Smartphone) in the same segment. Some of them stop
using their iPhone. Whenever Apple launches a new version, they always come
back to an Apple product while most of them have two handsets in their hand
instead.
Moreover, interviewee 2 answered that Thai consumer trend changes rapidly all
the time. The Apple product is a symbol of a modern digital gadget while the
other interviewees said Apple is a famous trend which is attractive to consumers
to buy Apple products and its family such as if consumers buy an iPhone, they
may buy iPod, iTouch, iPad or other products as well.
3. Apple market strategy in Thailand market
Most of the interviewees thought market strategy can help Apple to increase
market share and profit. From interview results, it can be seen that interviewees
2, 3 and 6 mentioned market strategy which has influenced Thai consumer
behaviour. However, Apple should recognise that Thai consumers have different
satisfaction from the West.
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Furthermore, interviewee 1 mentioned Technology and features are also an
important key market strategy for success that will make consumers buy more
products, resulting in Apple raising their sale revenue and profit. In terms of
market share, Apple had lost their market share to BlackBerry once when it was
coming. But when the iPhone4 was launched, everybody seemed to be bored of
the QWERTY keyboard and went back to the Apple multi-touch screen again
(Hopping 2010).
Apple moves forward on product and design, integration, lifestyle and comfort to
use. Apple market strategy consists of internal actions and cultures which were
constructed to fit the consumers’ needs for a strategy called “need-based
positioning”. Therefore Apple has produced a set of actions and culture to
differentiate from competitors to meet consumers’ requirement and market target
(switchtoamac 2009).
4. Apple competitive advantage and branding strategy
To reduce the risk of introducing a new product to enter a new market
segmentation by generating consumer experience and knowledge about
recognised the Apple brand (Aaker and Keller 1990). As the interview results, all
of interviewees showed that “Brand strategy” is very significant, leading Apple to
gain a competitive advantage from other competitors. Some Thai consumers are
Apple brand loyalty who exclusively purchase Apple products. In order for Apple
to be recognised as a premium brand which will be sold at a premium price.
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Chapter 5: Conclusions n
!The conclusion is brief from chapter 2, literature review together with analysis of
study finding from survey and interview in previous chapter in order to determine
how did Apple become so successful in Thailand market, consumers’ satisfaction
on Apple products and Apple competitive advantage over other competitors
included consumers’ behavior. Therefore, 200 questionnaires from the survey in
Thailand and 6 interviewees from Apple retailers’ stores in Thailand were
examined and provided to answer the researcher’s objectives as already
discussed in first chapter.
Firstly, the first objective is to evaluate Apple business in Thailand market. As the
literature review has shown the significant of Information and Technology.
Business and its environment can effect on marketing strategy especially
Thailand market where is high demand of IT products and high competition.
Secondly, regarding to second objective is to analyse the significant key market
strategies and Apple consumers’ behaviour in Thailand. From these results,
Apple’s constantly represent premium products and service to bring the best
digital life-style product to satisfy requirements of major target market.
Furthermore, Branding is one of the most remarkable strategies to lead more
Apple product make an impression the consumer in prospect. Most of Thai
consumers are brand loyalty of Apple products and service that the researcher
can identify from questionnaires and interview. Moreover Apple is trendy among
Thai consumers. Because of Thai always followed social mainstream and
fashion. Not only Apple builds self-extreme but also reflects high status in Thai
society. Thai people are accepted from other people.
Finally, according to third objective is to appraise Apple competitive advantage.
Apple and its products are uniquely that offer different multiple target with
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different features to vary consumers. Apple continues to be the master in design
and innovative technology products. This is represents how Apple so success so
far from competitors owing to differentiate of their products.
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Chapter 6: Recommendations n
The recommendation has drawn from the results of this research. The researcher
would like to suggest some recommendations on how did Apple so success in
Thailand market in order to complete three objectives.
The researcher would suggest Apple should comprehensive more to the
consumer behaviour and accommodate strategy proper to Thais. Apple Thailand
should try to release the products in the second-wave and at least focus more to
the demand and supply of each product by observing the consumers.
Moreover, Apple Thailand should consider extending Apple store and Apple
retailer store in order to service highly consumers’ demand during the next year.
In term of popular product such as iPhone4 is not enough for Thais now. Some of
consumers decided to buy from other countries or small private shop that also
bought Apple's products from other countries. This is effect Apple loss market
share in Thailand market.
Further more, the cost fix Apple accessories are very high. The researcher would
like to recommend decreasing that or having more discounts for Apple fan who
buy many products. The researcher thinks Apple is easy to break and the cost to
fix is very high. If Apple would improve this, more people will use Apple product.
Finally, Apple should make more advertising about brand and product is quickly
more than this. In Thailand market, there is no Apple Advertising. Most of people
know Apple update from Internet and word of mouth. It is sure if Apple creates
Advertising on TV, they will get more consumers over competitors.
