Date of submission: ……………………….

……

Mark: 30…..……….….………………………….……

No. of pages including cover:

Assignment
Semester: Spring 2021/2022
Faculty : Business Administration
Department : Marketing Division/ program: 2021/2022
Course Name : Services Marketing Course Code:

Student's Name: Alaa Ali Al Arab (202101434)

Razan Jalal Chelech (202101343)
Rayana Mosbah Baalbaki (202101754)
Title of project: Apple Smart Glasses

Project Mark Out of

1 30 Total marks in letters

Instructor’s Name: Ali Abou Ali

Signature: …………………………….……………….……………….…..….…….

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Table of Content:
1. Overview of the Company…………………………………………
 Company overview and History …………………………………………………………
 Situation Analysis …………………………………………………………………………………………………….

2. Market Summary
 Market Capacity ………………………………………………………………………
 Market Requirements…................................................................
 Market Trends ……………………………………………………………………………………………..

3. SWOT Analysis
 Strengths……………………………………………………………
 Weakness……………………………………………………………
 Opportunities …………………………………………………….
 Threats ……………………………………………………………..
4. Competition Analysis…………………………………………………
5. Customer profile ………………………………………………………
6. Communication Behavior …………………………………………
7. Mission Statement …………………………………………………..
8. Vision Statement………………………………………………………
9. The 7 P’s of Marketing Product…………………………………
 Price…………………………………………………………………….
 Promotion ……………………………………………………………
 Place ……………………………………………………………………
 People ………………………………………………………………….
 Process…………………………………………………………………
 Physical Evidence………………………………………………….
10. References ………………………………………………………

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 1. Overview of the Company

A. Company Overview and History:

Apple Inc., founded in 1977 in California, is a global designer, manufacturer, and marketer
of mobile communication and media devices, personal computers, and portable digital
music players. Apple is the world's largest IT Company in terms of revenue and total assets,
as well as the world's second-largest mobile phone manufacturer. In addition, the company
sells related software, services, accessories, networking solutions, and third-party digital
content and applications. Globally, the company serves consumers, small and medium-
sized businesses, as well as education, enterprise, and government customers. In addition,
the company sells its products through its retail and online stores, as well as its direct sales
force, as well as third-party cellular network carriers, wholesalers, retailers, and resellers. It
operates in the following geographic areas: The Americas, Europe, and Greater China,
Japan,and Rest of Asia Pacific

B. Situation Analysis:
Industry Analysis: There aren't a lot of serious contenders for all-purpose Smart Glasses.
Apple is a large, trustworthy technology company with a competitive advantage and the
potential to be the leading seller of Smart Glasses. Because Apple is clearly the market

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leader in the Smart watch industry, Smart Glasses have a lot of potential, especially
considering the current industry of wearable technology and augmented reality products.
Market Summary:
Market Capacity: The current market is extremely small and can be considered niche. The
majority of the 12 companies that are producing and selling Smart Glasses to the general
public are small businesses, but there are some large corporations involved, with Google
and Microsoft being the most well-known. The 12 companies that are currently selling
Smart Glasses are doing so for a variety of reasons. Some of the glasses, such as those
made by Epson and Sixth Sense, are intended to be augmented reality (AR) devices rather
than Smart Glasses applications. Others, such as Google, Epiphany, Eye Tap, and
Microsoft, are glasses that function as a heads-up display (HUD) system. Smart Glasses
had a slow start, but the estimated number of users is currently around 4.3 million. While
the first Smart Glasses were sold in 2014, the only data available was from recordings made
in 2016.

Market Requirements: The smart device market is currently designed to fill in the small
gaps in people's daily lives. To meet people's daily needs, a wide range of smart devices are
available. Currently, the market is focused on the demand for mobile, rechargeable devices
that can connect to the internet or cellular networks in most locations. These devices must
be reasonably priced and resistant to daily wear and tear. To be more specific, Smart
Glasses must have the same relative profile as a standard pair of glasses and weigh the
same amount, give or take a few ounces more than a standard pair of glasses. Where our
Smart Glasses can benefit are market needs that are not currently being met by smart
devices. The primary requirement is to be able to operate without using one's hands.
Smart Glasses are worn like regular glasses, with the exception that they do not need to be
held in place by the hands and instead balance on the bridge of the nose and the tops of the
ears. Smart Glasses benefit from being hands-free. This means they can be used safely
while driving a car or other vehicle, as opposed to a typical smart device, which requires
user input via hand motions and strokes.
Another issue that needs to be addressed is the dexterity of the glasses. Smart Glasses
provide a level of dexterity that a handheld device cannot. Being able to remain hand-free is
a glaring issue that plagues all smart devices, except Smart Glasses.
Finally, smart devices must be multifaceted and seamlessly integrated. These devices must
be able to handle multiple tasks while also blending into the aesthetics of the glasses and
overall image.

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 Market Trends: The market share of smart devices is increasing due to the entry of a large
number of technologically led companies. From 2017 to 2022, the global Smart Glasses
market is expected to grow at a compound annual growth rate (CAGR) of 125.8 percent,
reaching approximately $20.0 billion from $340.4 million in 2017.
Wearable computing devices that add information to what the user sees are referred to as
smart glasses. These devices operate similarly to mobile phones and tablets, and are
capable of processing and implementing a variety of programs and applications. The
majority of Smart Glasses on the market today include touch and voice command
capabilities. Smart Glasses, in general, include both virtual reality (VR) and augmented
reality (AR) headsets.
The user is completely immersed in a virtual environment in VR, whereas digital
information is projected on top of the real world in AR.

SWOT Analysis:

Strengths: Apple is one of the world's most recognizable and powerful brands. This
company can introduce new products and sell them solely on the strength of its brand name.
Over time, Apple has surpassed Google to become the world's second most valuable brand.
By 2018, the value of the Apple brand will have risen to $300.6 billion. Its brand value was
only $15.98 billion US dollars in 2006. Furthermore, Apple employs a premium pricing
strategy that results in high profit margins. Profits are maximized even when sales are low
due to the strong brand name and premium pricing strategy. These high profit margins
enable Apple to invest in brand building and R&D activities. By doing so, Apple not only
raises brand awareness, but also embraces technological advancement to maintain a
competitive advantage over competitors.
Its brand value was only $15.98 billion US dollars in 2006. Finally, Apple is capable of
competing in a wide range of fields. Apple has competitive advantages in hardware,
software, services, and application software that few companies can match, with the
exception of Google and Samsung.

 Product ecosystem that is diverse

 Brand image that is strong
 Profit margins are extremely high.

II. Weakness: While Apple's premium targeting and pricing strategy is a profit-
maximizing strength, it can also be a weakness. The high-end targeting results in a smaller

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consumer base, and the high pricing necessitates product design and quality innovation.
Customers have high expectations for Apple because they revolutionized the technological
market. Customers will expect software and hardware updates, and it will be difficult to
meet these expectations on a consistent basis. Customers who are price conscious may be
tempted to switch to other brands, such as Samsung, which produce products with
comparable specs and lower prices. People in China and India, for example, are switching
to Android phones, such as Samsung, due to Apple's high prices products. Consumers
always want the brand to outperform its own expectations, and shortcomings lead to
dissatisfaction among its customers and fans. High product costs imply a loss of market
share. It causes problems when economic activity is low. The decline in market share is
exacerbated by a lack of distribution centers, which limits market reach.
 Expensive selling prices
 Targeting the upper crust
 Distribution network is limited.
Opportunities :In the technology industry, technological advances are always an
opportunity
and from a premier company like Apple advancement in the form of
development of new product lines is expected. The demand for these new
products will only increase. These new product lines can target a large
customer base and perhaps even look at the lower end of the pricing range. In
terms of development of new production lines or even the expansion of small
product lines, Apple has Apple TV, the Apple Watch, and even the Apple
electric car project. Apple can expand its distribution network because a small
distribution network is a weakness to any company. Apple should try to
expand its distribution channel to reach potential customers in the global
market. Factors such as a larger distribution network will propel growth going
forward or even drive up current sale numbers.
 Expansion of distribution networks
 Development of new product lines
 Higher sales volumes based on rising demand

Threats: Competitive rivalry from other technology creators, such as Samsung, as well as
the possibility of imitation Apple products on the market are among the most serious threats
to the company. These elements can create roadblocks that impede growth and profitability.

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Apple faces competition in a variety of markets, including laptops, smartphones, and Apple
TV. To keep up with its competitors, Apple must have strong fundamentals in order to
maintain competitive advantages. The rising cost of labor involving contract manufacturers,
such as those in China, reduces profit margins and may cause the price of Apple products to
rise further. Because of the large number of firms that imitate the design and features of
Apple products, the threat of imitation is significant. To avoid this, Apple must take steps to
make it difficult to copy their products and work on an innovation strategy to compete.
 Increasing labor costs
 Imitation and aggressive competition

Competition Analysis:
Primary rivals:
Microsoft: A massive electronics and software company that created the first major Smart
Glasses product. They have a global reputation, global coverage, and a strong financial
foundation.
Vuzix: The leading electronics developer in the field of AR wearable, with over 60 patents,
and a well-known brand in the field of Smart Glasses.
Google: Google is a multinational technology company based in the United States that
specializes in Internet-related services and products such as online advertising technologies,
search engines, cloud computing, software, and hardware.
Samsung: is a conglomerate of approximately 80 companies. It has a wide range of
activities, including construction, consumer electronics, financial services, shipbuilding,
and medical services.
Company: Apple's wide range of differentiation helps it stand out. Differentiation in
function and design contribute to the firm's goal of market leadership through innovative
products. Apple's business is built on innovation. However, in order to improve its
application of this generic strategy, Apple must aggressively penetrate markets

Customer Profile: The primary customer target is the professional with a middle-
upper income who needs to coordinate their busy schedules and communicate with
colleagues, friends, and family. This segment is for business owners, large-scale
coordinators, media members, and others who can use a hands-free device to organize and
streamline their daily tasks. Our product fits this segment because it addresses the needs of
the professional markets.

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Secondary consumer targets include high school, college, and graduate students who
require a single portable multi-function device. This segment includes students who must
balance their classwork and schedules with extracurricular activities and functions.
It also reaches students in elementary and secondary schools who need to coordinate their
assignments and resources. With the growing technological influence in younger
generations, our product will fit this segment nicely.

Communication Behavior: YouTube, where the majority of shoppers in

this demographic can be found, making it an excellent channel for reaching and gaining
younger subscribers
Other video platforms, like TikTok and Instagram, which are also popular for this age
range.

Mission Statement: Apple creates Macs, the world's best personal computers, as well
as OS X, iLife, iWork, and professional software. Apple, with its iPods and iTunes online
store, is at the forefront of the digital music revolution. With the revolutionary iPhone and
App Store, Apple reinvented the mobile phone, and the iPad is defining the future of
mobile media and computing devices. Through its innovative hardware, software, and
Internet offerings, Apple is dedicated to providing the best personal computing experience
to students, educators, creative professionals, and consumers worldwide.

Vision Statement: "We believe that we are on the planet to make great products, and
that will not change." We are always looking for new ways to innovate. We believe in the
straightforward rather than the complex. We believe that we must own and control the
primary technologies that underpin our products, and that we should only participate in
markets where we can make a significant contribution. We believe in turning down
thousands of projects in order to focus on the few that are truly important and meaningful to
us. We believe in deep collaboration and group cross-pollination, which enables us to
innovate in ways that others cannot. And, to be honest, we don't accept anything less than
excellence in every department of the company, and we have the self-awareness to admit
when we're wrong and the courage to change. And I believe that regardless of who is in
charge, those values are so deeply ingrained in this company that Apple will do extremely
well."

Positioning: By utilizing product differentiation, the Smart Glasses are positioned as a

versatile, convenient, value-added device for personal and professional use.
Consider the convenience of having a single device for communication as well as music,
pictures, video, and full Internet access.

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The Smart Glasses will be marketed as both professional and stylish.

The 7 P's of Marketing Product:

Product: Apple's product element of the marketing mix is distinguished by its simplicity in
design and ease of use. Apple products are also\known for their durability and high quality
and integrate innovative\features and capabilities. Although the product line is limited, the
products are available in a variety of sizes and colors. Furthermore, the multinational
technology company regularly upgrades its products and services with mobile updates and
releases new product iterations with upgrades in each iteration on an annual basis. Apple
products are well-known for their ease of use, which is a major strength of the Apple brand
and all of its products

Price: Apple will use a premium pricing strategy, which will offer products at a higher
price than competitors.
Apple employs a premium pricing strategy.
The materials cost $360.
$1450 in retail > $1,090 in profit per phone
Promotion:
Apple will use the following strategies to boost growth and demand:
 Advertising (via the usual Apple websites, emails to brand product owners, and tech
expos showcasing the AR technology).
 Price Skimming (Price skimming contributes to the creation of a high-quality image
and perception of the product. It provides the company with a high profit margin).

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  Personal selling (directly addressing emails of brand users as well as users of AR
technology to ensure a more comfortable and confident purchase within our
consumer niche)

Place: 1 Infinite Loop, Cupertino, California is the address of Apple's headquarters. It

operates 506 retail locations in 25 countries, including 272 in the United States. Apple also
collaborates with retailers such as Walmart, Target, and RadioShack, as well as AT&T,
Verizon, and Sprint.

 Collaborations: Apple can work with powerful global mobile phone and eyeglass
companies to flood the market with Smart Glasses. This will reduce marketing costs
while increasing revenue through long-term agreement deals.

 Apple Stores: The world's largest information technology company by revenue

operates 499 retail stores in 22 countries around the world. Apple Retail Stores are
large, well-designed spaces where customers can use products and receive friendly
assistance from customer service representatives.

 Online Stores: Customers can purchase Apple products from the company's official
website, https://www.apple.com/.
 Wholesalers: Apple works with a large number of wholesalers to distribute a large
portion of its products and services.

People: People are an inaugural part of any business.

Steve Jobs, one of the masterminds behind Apple, has an iconic, celebrity identity.
Generally speaking CEO’s are not known as visible public figures, however, Apple has
excelled from having Jobs (and now Tim Cook) in the public eye. Their CEO acts as the
frontier for the brand and hosts of various events throughout the year.
As well, according to research, happy employees are 20% more productive than their
unhappy counterparts. And that boost could be achieved by
1-just spending $2/person on snacks and food.
2-when employees work in teams, rewards are applied to team performance.

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3-letting employees use company products regularly, giving them discounts, and even some
products as free gifts to them.
4-offers employee’s regular training sessions to improve their skills and help them develop
better ideas.

Process: Apple's best marketing strategy in the past has been to create mystery about
what they are up to next with product launches and announcements that keep what they are
up to under wraps until the big reveal. The most effective advertising strategy Apple has
used is to create uncertainty about what they will do next with product launches and
declarations that keep what they are up to a secret until the big reveal. Apple has gone even
further by leaking specific information and starting rumors in order to increase the
mystique surrounding a product launch. They really know how to get the audience excited.
Normally, marketers tell their customers everything they know about a product, but Apple
builds anticipation by withholding information and leaving everyone to speculate.
Wholesalers: Apple works with a large number of wholesalers to distribute a large portion
of its products and services
Physical evidence:
Cleanliness, dress of staff, attractive wall colors, website experience, the unique
packaging, brochure designs are some of the many factors in determining the customers
decision towards buying that service.
As well, Apple’s unique apple logo. There are no tag lines, or clever words — none are
necessary, their logo suffices to grab attention worldwide.

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References:
Bloomberg.com
Apple.com
https://medium.com/vr-first/a-summary-of-augmented-reality-and-virtual-
reality-market-
size-predictions-4b51eaSe2509
https://www.marketresearchengine.com/wearable-devices-market
https://www.statista.com/statistics/610532/smart-ar-glasses-revenue-
worldwide/
https://www.lifewire.com/best-smart-glasses-4172796
https://www.wareable.com/ar/the-best-smartglasses-google-glass-and-the-rest
https://www.enjoyvue.com/
https://www.vuzix.com/products/blade-smart-glasses
https://9to5mac.com/2019/02/12/smartwatch-sales-in-2018-apple/

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