Marketing 2.0

Is Apple buying McLaren?

Wow, are you ready for supercars from Apple? If this rumor is true, Apple is negotiating to purchase McLaren. The company makes high-end sport cards, operates a Formula 1 team, and has a lot of expertise in engineering. The speculation is that Apple needs more automotive expertise to build its rumored autonomous vehicle, codenamed the Titan project. One thing is for sure. It would qualify as a small investment for a company the size of Apple with all of its cash reserves. It would also confirm the rumors that Apple will enter the EV sector of the automotive market.

Will Apple Buy McLaren? | Automobile Magazine.

How high-growth companies drive sales

Good article from McKinsey on how companies are driving sales growth. The authors of a new book titled Sales Growth: Five proven strategies from the world's sales leaders are interviewed and they summarize their key findings. The core strategies they discuss include:

1. Identify growth opportunities through analytics and customer trends
2. Use multiple channels to reach customers
3. Invest in sales operations and align marketing with technology
4. Train, coach, and mentor sales people
5. Provide consistent leadership from senior management

Let’s talk about sales growth | McKinsey & Company.

Lower iPad prices

OK, it looks like something significant was announced at the iPhone event yesterday — lower prices for the iPad. Or maybe that was a stealth announcement. Anyway, it's definitely something I can get behind. I think it's time to upgrade to the 9.7" iPad Pro. With 128gb of storage, the price has been lowered to $699. Happy upcoming birthday to me!

Apple quietly refreshes iPad line with higher capacities, lower prices.

Another boring Apple launch event

Wow. Why did Apple even bother to hold an event with such and underwhelming set of new and (slightly) improved products? Why not just post them on the Apple site, stock them in the stores, and issue a press release? I've collected a couple of reviews from people who are more committed than I am to spend the time documenting the changes. I can sum it up in two short phrases:

1. The phone loses its headphone jack.
2. The Watch gets GPS.

That is all.

 http://www.recode.net/2016/9/7/12837562/iphone-7-camera-airpods

IPhone 7 and Watch Updates: Breaking Down Apple’s Announcements - The New York Times.

The smartphone boom is finally over

Image source: Marketing land

Take a look at recent data from IDC. The hottest product in the world is finally running out of steam. Market growth in 2016 will be less than 2%. This is especially bad news for Apple. They have been relying on the iPhone for much of their sales growth over the past five years. There's no longer a compelling reason for users to continue to upgrade their phones.

After 9 years, the smartphone boom is finally over.

Microsoft bashes Apple

Apple's products are in a trough at the moment. Laptop designs are stale. iPad sales are falling. Customers are waiting for the iPhone 7 to arrive. In the meantime, Apple's competitors are moving forward with innovative products at a faster pace than the behemoth from Cupertino. For example, here's an ad for the Surface Pro which beat the iPad Pro to the market as a laptop replacement. Apple still has a lot of loyal customers but the sales momentum cannot continue without some truly good products. One of my colleagues recently ditched his 12" Macbook because it runs too slow for his processing needs. Apple is charging $1,300 for a small laptop with a slow, mobile processor. At some point, even the fanboys start to notice the Emperor is wearing no clothes. 

Using digital tech to enhance the customer experience

Image credit: Networked India

Here's a short but very good article from Forbes on how traditional retail and hospitality companies are using digital technology to enhance their customers' experiences. Example? Disney has invested over $1B for solutions like the Magic Band that improve a visitor's overall experience in their theme parks. Over 70% of travel and hospitality companies are providing customers with mobile apps. These investments in technology usually offer personalized choices, digital engagement, enhanced recognition, and proactive solutions. 

What's So Sensational About Your Customer Experience? - Forbes.

 

Hyundai positions Genesis as a luxury brand

Following the script of Toyota with its Lexus brand and Nissan with Infiniti, Hyundai is establishing Genesis as its luxury brand. Nothing really new about that. Marketers understand that to appeal to multiple segments in any market, they usually need to develop unique brands. What I did find interesting in this article from the Globe and Mail are the strategies. You can order the car online and have it delivered to your home. Is Hyundai taking a cue from Tesla here? 

The book of Genesis: How Hyundai plans to sell a luxury brand - The Globe and Mail.

Coach drops department stores

Apparently, Coach is tired of the constant discounting that department stores are doing to try and hold on to customers. The brand's image has been cheapened and now it's cutting off stores that rely too much on discounted prices. No specific retailers have been named but I can imagine this might include Macy's and even Lord and Taylor. The irony is that Coach operates its own outlet stores where 50% discounts are the norm.

This is the problem that luxury and near-luxury brands face. They expand distribution in order to boost sales but their band image begins to suffer. Michael Kors has the same problem right now. Over exposure leads to a change in customers'  perception of the brand. You cannot have it both ways. Exclusive brands tends to have limited distribution and very limited discounting. When was the last time you saw a clearance sale on Cartier or Louis Vuitton? Or Apple for that matter? That would be never.

Marketers need to understand that brand image is closely connected to price. Most department stores are trapped in an endless cycle of sales and markdowns. Is that the environment for your brand? If you are a mass marketer then you are probably okay with this. For luxury brands, it debases the brand. You end up like Michael Kors with its "basic bitch" image. 

Coach doesn’t want department stores cheapening its image | New York Post.

Ditch my laptop for an iPad Pro?

I'm trying to decide whether to upgrade my four-year-old MacBook Air or replace it with a 9.7 inch iPad Pro. I like Apple's latest 12 inch MacBook but it's pretty old technology, not that powerful, and is pricey at $1,299. I just read a review by Walt Mossberg (link below) of the new Logitech Create keyboard paired with the iPad. Sounds like a good combination. Sad to say, but innovation in the market seems to be coming from companies other than Apple these days.

Mossberg: The 9.7-inch iPad Pro might be your lightest laptop, thanks to Logitech | The Verge.