Iacobucci (2014) mentioned that the success markers would develop the suitable products that can well satisfy the customers, and to gain better popularity in the market. In order to achieve the long term success, companies need to continue developing the new products that can fit for the new demand of the customers (Bendoly, Bharadwaj & Bharadwaj 2012). Without doing so, the company may not be able to achieve the sustainable success.
Kahn et al. (2012) pointed out that the product development should well consider the needs of the target customers. Apple could be the good example for how a company could sustain its success by continuing developing the new products that lead to the trend. The successful launch of the iphone products has lead to the new era of the mobile phone products, which lets the smart phone dominate the market. By understanding the customer’s needs, as well as the technology development trend, Apple developed the new product which redefines the market. Therefore, this could show how effective new product development could be the key for the company’s long term success.
It appears that Apple has launched the iphone 6 and iphone 6 plus in 2015, which has the relatively larger size than its previous iphone products. However, although such new iphones have many innovation design and advanced functions that could well satisfy the target customers, many customers would still prefer the iphone with the smaller size. Therefore, as the companies need to well consider their customer’s demand in the new product development, and there is a strong demand for 4′ iphone, Apple has recently launched iphone 5 SE, which is the iphone product with smaller size and nearly same features as iphone 6 (Hugo 2016). Therefore, this could help the Apple to better satisfy its customer’s demand. As Hugo (2016) reported, the demand for iphone 5 SE is high, as there is a stock shortage for such product. However, it appears that the iphone 5 SE would only cover the small number of the target customers, and it may not help the company to change the trend for the decline in its sales, due to more and more competitors develop the similar smart phone products to reduce the advantages that iphone products have. Since the market expect that Apple would experience the first decline for its sales units for the iphone products, Apple would need to spend more efforts in the product development in its next generation iphone.
Another thing that marketers need to consider would be the brand equity. The products with higher brand equity and brand awareness could have more chances in market success, as both the brand equity and brand awareness could promote the sales of the company (Iacobucci 2014). In this case, it appears that Apple has built the strong brand equity for its iphone products, and the brand awareness for the iphone is high. As a result, there would be the great expectation for the new generation of iphone products, and they have the strong brand loyalty. Therefore, if Apple could continue developing the iphone products that can satisfy its customer’s needs, it could ensure its sales revenue in the future, and sustain their market success.
WordPress username: tianshili
Deakin email address: email@example.com
Tianshi li 214183746
Bendoly, E, Bharadwaj, A and Bharadwaj, S 2012, ‘Complementary Drivers of New Product Development Performance: Cross‐Functional Coordination, Information System Capability, and Intelligence Quality’, Production and Operations Management, vol.21, no.4, pp.653-667.
Hugo, N 2016, ‘Apple’s new 4″ iPhone SE continues to see stock-outs, shipping delays’, Apple Insider (April 06), viewed on 8th April, 2016, from http://appleinsider.com/articles/16/04/06/apples-new-4-iphone-se-continues-to-see-stock-outs-shipping-delays.
Iacobucci, D 2014, Marketing Management (MM4), South-Western, Cengage Learning, Mason.
Kahn, KB, Barczak, G, Nicholas, J, Ledwith, A and Perks, H 2012, ‘An examination of new product development best practice’, Journal of Product Innovation Management, vol.29, no.2, pp.180-192.