APPLE F A S H I O N
NEW LUXURY COLLECTION High-Tech Luxury Fashion Collection
Table of Contents C o mpa ny Ov e rvi e w B r and Mi s s io n an d Vi s io n C o mpe ti ti v e Lan ds ca pe A n al ys i s P r opo s ed B ran d Ex t en si on P r odu c t S t rat eg y P r ic i ng S t rat egy D i st ri bu ti on S t rat eg y Ta rget M ark et P r opo s ed P os it i oni ng B r and S t ory M es sa gi ng C o mmun i ca ti on S tr at egy Te am B i bl io gra phy
Apple Inc. COMPANY OVERVIEW Apple Inc. is an American multinational technology company that designs, develops, and sells consumer electronics, software, and online services. Founded in 1976 as a mere computer company, it evolved to making some of the world's most ubiquitous consumer devices and innovative marketing strategies for its products. For over two decades, Apple has grown to be the paragon of innovation, inspiring and opening the minds of among customers, developers and the industry. It is considered one of the Big Four tech companies along with Amazon, Google, and Facebook, making it one of the most successful companies in history.
STEVE JOB’S ORIGINAL, PERSONAL ETHOS
“To make a contribution to the world by making tools for the mind that advance humankind.”
Objective Apple’s vision statement is a reflection of where the company envisions its’ place in the future, as a continual superior in technological innovation. The company considers the rapid, fluctuating business landscape and industry market—which influences the possibilities of what the business can achieve. Relative to this, Apple’s mission statement highlights the cardinal areas it majors in, and the premeditated goals that drive it towards its’ overall vision. Apple’s cognizant dynamism has allowed it to successfully readjust their mission and vision statement over the years.
Brand Mission and Vision 2019 MISSION STATEMENT “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.”
2019 VISION STATEMENT “We believe that we are on the face of the earth to make great products and that's not changing.”
Competitive Landscape Analysis As the smartphone market is set for its biggest ever decline in the history of its category, Apple is faced with the fundamental challenge of growing to the next level. The new figures from Gartner reveal that the smartphone sales are expected to fall by 3.2 per cent in 2019. The decline in Apple stocks are also an indicator of a slowdown in sales growth.
Today, people tend to hold onto their phones longer. Instead, people are increasingly interacting with other connected devices. Apple has always been the pioneer of unique products. For decades, the brand has been known for its cutting-edge innovation. In order to stay relevant, it is imperative for the brand to stay true to its image. Two of the company’s top competitors, Samsung and Google have already secured patents for their smart clothing technology. Thus, we propose a high-tech fashion line for Apple.
Proposed Brand Extension
POMME LUXE (Apple Luxury) A High-Tech Luxury Line A category not yet thought of by the companies working on electronic textiles is the business wear. We propose rolling out a new brand under Apple - a high-tech luxury business wear, Pomme Luxe.
Pomme Luxe A HIGH-TECH LUXURY LINE The name Pomme Luxe, even though it is simply a translation of ‘Apple Luxury’ would give a stand-alone identity to the fashion line. It will also signify that the clothing line is here to compete with the best of the European brands. This brand extension will also provide an opportunity for Apple to capture the market segment that has been immune to its Apple watch. High-end watch buyers who wear Patek Philippe for instance, do not prefer smart watches. This consumer believes that smart watches lack the timelessness and elegance of a traditional watch. Rather than viewing a smart watch as an accessory, it is considered as an extension of the phones and tablets by many. Introducing business wear that not only feels luxurious but also keeps this customer updated (by providing connectivity to the phone) will help Apple to penetrate this market segment. Smart clothes or high-tech clothes are enhanced with technology to add functionality beyond that of the traditional use. Apple’s clothing line will be made of the best fabric with interwoven circuitry and a small hardware that will enable connectivity to the app on the smartphone using Bluetooth. It is vital for C level executives to always stay on top of things. Missing a single critical call or text can at times cost a lot to their enterprise. Apple’s smart business suits will notify the wearer even when he/ she is in a meeting and not accessing his phone or laptop. The app will let the wearer customize the functionality – for instance, restrict who’s call or what text should be notified.
Product Startegy P o mm e L u x e wi l l h a v e m e n ’s a n d wo m e n ’s b u s i n es s we ar. Th e me n ’s c o l l e c t i o n w i l l h a v e t w o - p i ec e s u i t s , s po r t s c o a t s a n d s l a c k s . Wome n ’s c o l l e c t i o n s wi l l h a v e d r e s s e s , s k i r t s , p a n t s a n d j a c k e t s . Th e e n t i r e c o l l e c t i o n wi l l b e m a d e o f I t a l i a n wo o l a n d s i l k . Th e u s e o f l u x u r i o us f a b r i c w i l l pl a c e t h e l i n e i n d i r e c t c o mp e t i t i o n wi t h t h e t op d e s i g n e r b r a n d s . H o we v er, t h e un i q u e f u n c t i o n a l i t y w i l l s e t i t a p a r t f r o m t h e r e s t .
Price Strategy Premium pricing strategy will be adopted for the new fashion line. Apple’s current products are also available at higher price points as compared to similar products in the market. However, the customer readily pays for the premium price for the unique brand experience. In order to stay true to its brand image, it is of paramount importance that Apple provides the same unparalleled quality and service to its fashion customers. The men’s suits will be offered in the price range of $1695 - $2195, sports coats around $1195 - $1395 and slacks around $795. The women’s jackets $795 - $1095, dresses from $595 - $795 and skirts and pants from $495 - $695
Distribution Strategy Pomme Luxe will have its own retail store in premium shopping complex and malls. This will let the company provide a unique and elevated brand experience to its customers. Additionally, it will also enable to have a tightly integrated system in place where any feedback from the customers can be directly taken to account by the company and acted upon. For the success of this new brand, it is essential to closely work with the target market and listen to their inputs. The customers, in turn will also trust the brand and eventually a loyal fan base can be built.
Target Market Pomme Luxe target market are successful business professionals and entrepreneurs who have extremely busy schedules. They are well-educated, most of them having postgraduate degree. They work as CXOs, senior executives or run their own businesses. These professionals are in mid-30s to 60s and lead an active lifestyle. Their day starts with a morning run or a quick workout on their Peleton. They listen to podcasts or get on conference calls during their commute to work. Their day is packed with a plethora of meetings and they usually go out to dinner meeting with a client. They shop luxury brands, value quality and are tech savvy.
High Fashion
Proposed Positioning The new brand extension will place Apple in a totally different quadrant that has not yet been tread by its competitors or even by the high-end luxury brands. Apple has always had the reputation of being a pioneer and Pomme Luxe will only further its brand image.
High-Tech
Brand Story of Vintage Apple It all started when John Scully took over Apple. In the 1990’s Apple was dying out because of its competition, lackluster products and poor branding. Scully, former marketing executive of Pepsi, decided to revitalize the company by flooding marketing with funds. This began Apple’s name for marketing in the business world. He boosted the budget from 15 million dollars to 100 million dollars which is a 667% mark up. This combined with Steve Jobs vision that “apple makes technology so simple that everyone can be a part of the future” made for a revolutionary and strong new way of marketing through loyalty. Though it has been a concept since the earliest of marketing, Apple is one of the few to strongly grasp at it and its proof is in its patriotically loyal customer base.
Brand Story of Apple x fashion Expansion to humble tech fashion The hardest hurdle the product will have to face is the fact apple and fashion has never been successful. Just look at the Apple glasses which were a complete fail. To avoid this, we want to establish a story of that of a fashion house. We would emphasis the designers and their process. We would have to find a way to balance separating Apple’s nerdy aesthetic with Fashion Avant Garde standards. The story is about the designers and apple the supporter. Apple is the one who brought these designers to the world and apple is the mother of the fashion house who uses their technology to bring integrate themselves into the fashion market. Apple needs to be humble and acknowledge the fashion industry and then will be welcomed with open arms (so long their deigns are good)
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Messaging of Vintage Apple Apple is Simple. Apple is clean. future. Apple is for everyone.
Apple is the
That is the message and Apple roots these messages in a strong sense of customer loyalty. With loyalty comes trust and ultimately sales. The company establishes this trust through Humanistic corporate culture and strong corporate ethics (volunteering and philanthropy). It puts the customer first and was one of the first companies to address consumer problems in later generations. Apple also prides itself on very unique and familiar vocabulary that is tied to it such as clean, simple, and future. These words establish a top-of-themind brand when mentioned and helps fulfill that customer loyalty. The products themselves are all about customer experience and want the customer to be satisfied and feel personable with the product. Even the apple store has �apple geniuses� and they are almost ironically known for their positive and welcoming attitude.
Apple marketing Distribution for positioning
Sales Promotion Advertisements
Instituional Promotion Publicity/Philanthropy
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Messaging of Apple x Fashion AxF is expensive. AxF is clean. Apple is the future. Apple is for everyone. The hard part about the fashion industry and Apple is the psychological marketing differences between them. Take Hermes for example who mark-ups there prices way beyond profit margin just to institute a high value item. Moreover, even fast-fashion brands like H&M burn clothes to avoid mass distribution which is directly contradictory to Steve Jobs idea of making the products available to everyone. To balance the two, we plan on following the pricing model of the Hermes bags and the messaging fashion industry (of course without the burning and being environmentally conscious because we are not monsters). To make the products more available, we would cut budgets largely from Institutional promoting and some from advertising to focus on sales promotion to make the products cheaper but with a high price tag. To uphold the awareness and brand name, we want to boost publicity stunts as that is how fashion products excel and so does apple. In this area we establish value.
Apple marketing Distribution for positioning
Apple marketing Distribution for positioning
Sales Promotion Advertisements
Instituional Promotion Publicity/Philanthropy
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Communication strategy of Vintage Apple Within the communication strategy, Apple has several principles that guide them in how to communicate and helps make the execution more precise and stronger. These points include: Simplicity is the ultimate sophistication Not selling products. It’s selling a brand These values are upheld by an institutional promotion which is a large majority of its marketing mix. Apple is a company that thrives on product placement, buzz marketing from media reviews, and positive customer experience. It spends its time not selling actual products but sell future products through its selling of a brand. This form allows communication with apple to be more fluid and personable, because the company genuinely wants to survive and to do so within its guiding communication principles, it has to establish good customer relationships. A very positive and fruitful strategy.
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Communication strategy of Apple x Fashion Within the communication strategy, Apple has several principles that guide them in how to communicate and helps make the execution more precise and stronger. These points include: Simplicity is the ultimate sophistication Not selling products. It’s selling a brand. The Apple x Fashion will follow this behavior but with a new brand story. They will sell the apple brand and their fierce expansion into a new market. The company will get backlash to stay in its own lane, but how it reacts to it determines how it will thrive. And our strategy is to be the most fierce devil wear Prada company. Like a makeover scene of a nerd in Prom. We will walk in with our apple and pants and get homecoming queen.
Madeline Musarra
Pomme Luxe
Brandon Chu
THE TEAM BEHIND IT ALL Shina Ahluwalia
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