Apple started off as an innovative company with new concepts and ideas. At the present moment, it is one of the most well-known corporations in the world. Based on the organization’s history, it is certain that the company has been through all stages. The introduction stage was exemplified by low production, an emphasis on an advertisement, and the establishment of the brand as a reliable and innovative technological retailer. During the growth stage, sales were increasing, and iPhones and MacBooks were becoming more profitable products since consumers were familiar with the brand and its performance. However, as Apple reached the maturity phase, the profit became more steady and predictable, and the competition reached higher rates. Samsung is the corporation’s biggest rival in the market.
While Apple used to be famous for its innovative approach and excellent services, other companies are becoming more advanced. This makes Apple products as exclusive and practical as the goods that other technological corporations sell, creating fewer growth opportunities. A market strategy that Apple implements to keep sales high is market modification. The company sells different products, including phones, tablets, and computers. The corporation diversifies the market by selling home items (from air conditioners to thermostats). Another strategy used by the company is frequent product modification. Apple is known for making slight changes to iPhones every year, creating a consumer demand to change their devices every time a new one is launched.
An example of a company in the growth stage is Monster Energy Drink. The product is popular, yet it is not as widely known as the biggest rival, RedBull. However, Monster Energy Drink is becoming more available, and the revenue of the company has increased. The marketing strategies highlighted during this stage are focused on keeping the market growth high for the longest possible time. This is often achieved by launching new products, which is exemplified by Monster with the frequent appearance of new flavors. Moreover, the company keeps the prices low to be able to compete with the slightly more expensive RedBull drinks and prevent new rivals from entering the energy drink market segment. Monster Energy Drinks can often be found at a reduced price or within promotional offers, which allows the brand to widen the array of possible consumers. All these strategies are common among companies within the growth stage of the lifecycle. The fact that Monster Energy Drinks follows the same policies illustrates that their products are in the second stage and are yet to peak and become the primary energy drinks on the market.
The two different stages diversify how the companies have to approach marketing. In terms of Apple products, the company must advertise primarily before a new launch since the majority of the world population is already aware of the brand. Moreover, the brand can pay more attention to diversification through new products. At this point, iPhones and MacBooks are still the most popular goods sold by Apple. While this strategy is risky, researchers found a correlation between risk-taking and performance in the maturity stage (Shahzad et al., 2019). A focus on other home items may be beneficial for the company’s revenue and the launch of another hit good that consumers will be eager to purchase.
Monster, however, should adopt a different strategy that aligns with the brand. While Apple cannot afford to lose a sense of exclusivity by lowering prices, this is precisely what Monster should do. The brand should advertise their products as more affordable than their competitors to keep the growth stage for as long as possible. Moreover, launching more flavors before holidays or as limited seasonal energy drinks can create a higher demand for their goods. The strategy is different for the two suppliers due to the contrast in life stage and the overall branding that both corporations are keen to promote.
Reference
Shahzad, F., Lu, J., & Fareed, Z. (2019). Does firm life cycle impact corporate risk taking and performance? Journal of Multinational Financial Management, 51, 23–44. Web.