1. Executive Summary This report was commissioned to analyze the current practices of marketing mix of Apple Inc.

and suggest Apple Inc. on how the business incorporating green practices with the aims of reducing operational costs, creating values, increasing sales and minimizing the environmental impact through marketing activities. The research shows on how Apple Inc. using marketing mixes strategies to achieve their success in nowadays. For product strategy, Apple Inc. is using less material to manufacture their product. For distribution strategy, Apple Inc is distributing their product with varies stores with two channels which is direct channel and indirect channel. For promotion strategy, Apple Inc has launched a campaign call Get a Mac. For the last strategy which is pricing strategy, Apple Inc used skimming pricing strategy to place their product as quality product. Further investigation reveal that the marketing opportunities of Apple Inc. Apple Inc have facing marketing opportunities such as feeding the base, the addicted of gamer and appealed to an older market. Based on the study, we recommended Apple Inc to remove PVC out of their product to achieve the objective to go green. Besides, Apple Inc can also educate customers about goes green. 2. Business Overview 2.1 History During 1976, Apple was founded in a garage in Santa Clara, California. Apple was the original idea of Steve Wozniak and Steve Jobs, who try to supply easy software for the non-experts to use computers. Between 1978 and 1980, the company undergoes the initial public stock offering. In 1983, Steve Wozniak leaves the Apple Inc. and Steve Jobs hired away John Sculley from Pepsi to be the president of Apple Inc.. The day after experiencing lack of success of products, Apple remove the Macintosh computer in 1984 to overcome, to create the stage for Apple to step into the development and being recognized by public. In 1985, Steve Jobs was forced to leave the Apple Inc.. After Jobs leave the company, John Sculley ignored the Microsoft founded by Bill Gates to appeal for Apple and refusing to license the Macintosh operating system to Microsoft. Bill Gates purchased and developed

international operating standard systems which call DOS operating system for over 90 percent of all personal computers in the world. By the late 1980s, the earnings of Apple suddenly move downwards because of the competition from the Microsofts Window operating system and the miserable failure of Apples Newton handheld computer, John Sculley was force to resign. In 1997, Apples current CEO, Gilbert Amelio, planned to purchase the company NextStep from the Steve Jobs. The next operating system was a huge improvement compared with the Macintosh operating system. It was hoped to upgrade and make an necessary repair of the Macintosh operating system at the purchasing time of the Next operating system. In 1998, Gilbert Amelio was ousted from his position as Apple CEO and Steve Jobs succeed returned as interim CEO. Steve Jobs control Apple by smithing a surprising relationship with the Microsoft by liberate Macintosh version of Microsoft's popular office software. To protect Apples drop rate market share, Steve Jobs revoked the licensing of Macintosh operating system from the chief imitator Power Computing. Apple carried out others cost saving measures, including call off the Newton handheld computers and the printers. Steve Jobs returned, Apple Inc. produced 12 versions of Macintosh computers with none profitably. The professional series of Macintosh computers would have the Power Mac desktop series and Power Mac laptop series. The consumer series would have the iMac desktop series and iBook laptop series. These were the two markets that concentrated by the Apple company after the refocused of Steve Jobs. Steve Jobs real value for Apple has been his willingness to be innovative. After his return, he was oversaw the introduction of the iMac line of personal computers with innovative all-in-one design and five colour was the herald of changes and the coming of the new product. The time iMac cause an up roar of the world because of the personal computer become anything but personal. Apple again becomes the innovator in the market under the control of Steve Jobs. His leadership led to the adoption of USB and later the Fire wire ports for digital connection of computers to the peripherals. The Apple's introduction of the AirPort that heralded of wireless interconnectivity to come. Apple's current line of products and services ranges from the tiny Mac Mini to the ultra powerful PowerMac G5. Introduction of the iPod digital music player and the iTunes music site have again put Apple at the forefront of the digital computing age.

2.2 Vision Statement In 1970s, Apple kindled the personal computers revolution with the Apple II and altered the personal computers with the Macintosh in 1980s. Apple promised to bring the best experience of personal computing to student, educators and creative professional, consumers around the world through the innovative software, hardware, and Internet offerings. 2.3 Mission Statement Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

3. Content 3.1 Product Strategy Product strategy is the strategy that involves more than only deciding what goods or services the firm should offer to consumers but also includes the decisions about customer services, package design, brand names, trademarks, patents, warranties, lifecycle of a product, positioning the product in the marketplace, and new-product development. Apple reports that environment impact comprehensive. The problems we focus on our product are what happens when we design them, what happens when we make them, and what happens when you take them home and use them to do this report. First of product strategy we carried out is the manufacturing. Manufacturing is including the extraction of raw materials and product assembly which are around 4,298,000 metric tons (45%) of Apples total greenhouse gas emissions. In the past ten years, Apples designers and engineers first created the smaller, thinner, lighter product. As the product become more powerful, but Apple company using less materials to produce and generating fewer carbon emissions. For an example, Apple company reduce 50 percent of materials and 35 percent of carbon emission to produce the 21.5-inch iMac which is more powerful and has a large screen if compare with the first generation iMac. The toxic substances removal is the green product design which is considering the environmental affect of the materials used. Our goal is continue leading the industry to removing or reducing the environmentally harmful

substances from the materials which are glasses, plastics, and metals in our product to the paper and the ink in our packaging. The presence of toxic substances such as arsenic brominates flame retardants (BFRs), mercury, phthalates, and polyvinyl chloride (PVC) in products is the best environmental challenge facing by our industry today. Apple is committed to ensure that working conditions in our supply chain are safe, workers are treated with respect and dignity, and the manufacturing processes are environmentally responsible. Next is the transportation. There are 510,000 metric tons (5%) of greenhouse gas emissions are the result of transporting Apples products from the assembly locations to the distribution centre in different region where the product sold. Apple employs expert designers and engineers in develop the product packaging as small, light and protective as possible to reduce waste of materials and also help in reducing of the gas emissions during the product transportation. For an example, the packaging of the Mac Book today is 53 percent smaller than the first generation. This means that 80 percent more Mac Book boxes fit on each shipping tray, more trays fit on each boat and plane and there will be fewer boats and planes are used for the transportation. After that is the product use. The uses of Apple products produce 4,456,000 metric tons (46%) of gas emissions of the Apples total greenhouse gas emissions. When plug in Apples products and start using them, the majority of greenhouse gas emissions are produced. Apple company design the products to be as energy efficient as possible because to make sure both of the hardware and the operating systems able to work together to save power. For example, Mac mini through innovations both big and small, it uses as little as one-sixth the power consumed by a typical light bulb. Mac mini even uses less power than a single 13-watt CFL light bulb, making it the most energy-efficient desktop computer in the world. After that is the recycling part. From the Apples total greenhouse gas emissions, there are 62,000 metric tons (1%) of gas emissions in the recycling. To recycling begins the design stage, Apple company create compact and efficient products that require less materials to produce. The materials used by the Apple Inc. are arsenic-free glass, high-grade aluminium, and strong polycarbonate which are high value for recyclers for claim for use in new products. All electronic waste collected by Apple voluntary and regulatory programs worldwide are processed in the region in which it was collected. Apples recyclers comply with all the

applicable health and safety laws, and Apple does not allow any prison labour at any stage of recycling process. Next will be the facilities in the Apple Inc. There are 278,000 metric tons (3%) of greenhouse gas emissions of Apples total greenhouse gas emissions in Apple facilities that including corporate office, distributions centres, and the retail stores. Apple focuses on products design and innovation although taken important steps to lessen greenhouse gas emissions produce by Apple company facilities worldwide because company such as DELL and HP report on their facilities as a result of the impact on the environment. Apple reduces energy use in facilities on a number of ways by renewable energy with eliminating 19,200 metric tons of gas emissions. In addition, Apple has state-of-the-art digital controls, highefficiency mechanical equipment, and monitoring technology for years, and continues to investigate even better ways to run our facilities more efficiently. Last is the total carbon footprint for Apple Inc. For 2009, we estimate that Apple was responsible for 9.6 million metric tons of greenhouse gas emissions. For the past two years, Apple has used a comprehensive life cycle analysis to determine where greenhouse gas emissions come from by adding up the emissions generated from the manufacturing, transportation, product use, and recycling of the products, as well as the emissions generated by our facilities. Apple design the product with less material, ship with smaller packaging, be free of many toxic substances, and be as energy efficient and recyclable as possible and in every new product, Apple continue minimizing the environmental impact. About 97 percent of Apples carbon footprint is directly related to our products from manufacturing to customer use to recycling. The remaining 3 percent is related to Apples facilities to make the offices more energy efficient, Apple is focused on reducing the impact our products have on the environment. 3.2 Distribution Strategy If you build it, will they come? When they come, will it be in stock? . This is Apples distribution strategy. Apple has been so successful in these few years thanks to his fresh, imaginative way to think and do its business: a winning combination of exceptional products, great style and design, great strategy, innovative marketing, sleek and enticing communications.

Apple is distributing their product with varies stores but with two channels, which is direct channel and indirectly channel. Direct channel means a producer supplies or serves directly to an ultimate user or consumer, without any middleman (agent, distributor, wholesaler and retailer). For example, online Apple store (iTune) and Apple retailer store. While indirectly channel means a producer supplies their good through distributors, wholesalers and retailers that best suited for their product to obtain the best market share. It also allows them to focus on producing on their goods. For example, Ingram Micro/ Best Buy, Mac Mall online. Apple online store (iTune) is visibility on web and its worldwide, over 36 countries can access to this web and it has high level of service. This channel is highly level of control from Apple. Other than this, large distribution drives a huge volume of traffic. Its very problematic due to inexistent purchasing experience. Therefore, Apple chooses selected retailers only to maintain their quality of product. It is also separated space in that particular store and serves and serviced by Apple staff. Other than those mentioned above, Apples advanced supply chain management leads its company to have a very profitable business. There are 3things that Apple makes it perfected. Firstly, low overhead, for example: Apple outsources labour to China or Taiwan because there supply very cheap labour and favourable taxes. Next, low cost of goods sold. By shouldering part of the factory production, Apple gets major discount and get very cheap raw materials. What Apple did was they use its cash hoard to pay for the construction cost (or a significant fraction of it) of the factory in exchange for exclusive rights to the output production of the factory for a set period of time (maybe for 6 to 36 months), and then they get a discounted rate afterwards. Lastly, effective supply chain, this can ensures that customers get the products at the shortest time. Apple has access to new component technology months or years before its rivals. This allows it to release ground-breaking products that are actually impossible to duplicate. According to AMR research Apples is the best supply chain in the world for the third year. Apple has the ability to bring together two sides of the supply chain (digital and physical) efficiently and at increasingly low cost is a central plank to rise to global dominance. A number of analysts make the point that Apples supply chain is in key respects different from those of most companies, in that it comprises physical and digital components in a way unseen before, with the companys revenue and growth coming increasingly from

the digital side. The changing nature of this two-sided supply system has led some to suggest that Apples supply chain is a new type of beast entirely.

3.3 Promotion Strategy From our research show that among all of the technology companies, Apple is often perceived to have something that indefinable element of cool likes of rivals Dell, Microsoft, and Hewlett Packard lack Instead, Apple have carefully cultivates a specific image for itself, and a cornerstone of those efforts is its keyword target advertising .They have create a lot of attractive and creative advertisement to grab consumers attention especially during the 30-second spots that air on television. Since 1984, Apple started to has long history of exceptional advertising and turn to become director of analysis at NPD Group which referring to the iconic Super Bowl commercial that introduced the Macintosh to the world. Thus ,they is calling advertising a core pillar of Apples strategy which able for bringing in new people to choose and more attention about Apple new products .In the following year , there are such amount of Apple products was appear for that growing audience to consider. During last duration, Apple has design and creates another major product line such as iPhone to its existing Mac and iPod offerings. As we know, all of the three product areas have same and common qualities included namely, style and ease of use. Currently, Apple has organized a campaign for the Mac which name as Get a Mac. Its considered as simple and straightforward to give out a message as the name would suggest. They think over to overture which could appeal to the vast majority of computer users .In the other way, the Get a Mac more focus on the Mac features which include the advertising campaign for iPod I more about style than substance.

When sales promotion for Apple started, Apple will know how to focus and use some promotional method such as using special short term technique to persuade and attract the members of target market to respond or undertake their own Apple product. Apple has used certain method to gain the loyalty ladder to market to existing consumer. For example, Apple have uses money back guarantees after the purchaser, promote the Apple item with some lower purchase price and rebate some free gift after buy certain amount of product. The

Apples stores are very distinct and captivating from many other electronic stores because they display all of their products for consumer to experience hands on. Consumers are allowed to search from web on any of their brand new computers, listen to the latest iPods, and experience the iPhone with its features. In addition, this will let consumer get comfortable with the products and familiarize themselves with it. This is a major consumer sales promotion that Apple has developed.

Apple has always been into attracting consumers in many other possible ways. From building an incredible amount of buzz until persuade consumer to buy Apple products, Apple can be considered a small business world to become a model and huge in technology market. They have public their product in mass media such as internet webpage purposely to let people more understand Apple product .Recently, they has intro with a new application called Mac OS X Download. Mac OS X Downloads let users test drove and downloads the new application that integrate the latest Mac technology. Featured applications are categorized for easy browsing making it easier for consumer to find out what they are looking for any of Apple product when consumer needed. Nowadays, Apple is widely regarded as one of the most effective companies at launching product. Besides, Apple able to generate interest and excitement over even minor product launches, All of this because of successful widely publicity of Apple and reputation for creating innovative, elegant and functional hardware with software.

Everything from Apple consider elegant and functional for consumer. From industrial design, packaging, accessories and even the products web site, Apple is polished to enhance usability, and Apples overall image as a maker of insanely great consumer product. Nowadays, Apple tries to build up their image with new identity through go green. Apple are going to remove toxic chemicals from their new Apple products such as MAC, iPad, iPhone and to more aggressively recycle Apples old products. The dangerous chemicals will be eliminating by Apple to reduce the side effect of using product of Apple. From electronic products are found in very small amount, but still there are one toxic substance that some companies still ship by pound, and thats the lead contained in their cathode ray tube(CRT) displays. A typical CRT contains approximately 3 pounds of lead, means that 1.36kg of lead contained. Apple became the first company in the computer industry to completely eliminate

CRTs. The effect has been stunning our first CRT-based iMac contained 484 grams of lead; our current third-generation LCD-based iMac contains less than 1 gram of lead. It is not about bruising Apples image, Apple should be a model of environmental leader which able to be at the forefront of green technology.

3.4 Pricing Strategy Skimming pricing strategies is referred to setting high initial price of a compared with the prices of competing products basically apple companies sacrificing sales to gain high profits. Apple uses this strategy in order to reimburse their cost of investment put into the original research of the product. For example: iPhone, iPad and MacBook Pro. The price are not worthy to their products. This strategy employed only for a limited period of time as a way to recover most of the investment of research and high development costs of a product. Price cover real cost of production seems that customers do not feel exploited. Early users of a product/service because they are relatively less price sensitive than others. Early users are targeted because their need for the product is more than others or they understand the value of the product better than others and this strategy target on high income family. No competition among apple competitors customer will be willing to pay a higher price to first have their hands on the product.The skimming price provides a healthy margin but risks a depressed sales volume and seller receiving fair margin their future business would not be affected. Apple products do not have hidden prices in maintenance, service and advice. If products have any problem, customers can contact apple customer service to get technical support. Customers can try self service by using online service assistant. Apple skimming pricing strategy is presented at two levels. First, the price of the same model is diminishing with time; especially when Apple is introduce the newest version of the iPhone. Second, the price of every next generation model launched on the market is less expensive than its predecessor. Sure, decreases in prices will lead more consumption in society. More people are affordable to buy these luxuries products. Apple use rebate strategy when buyers buy a new qualifying Mac with Apple buyers will get a free $100 Back to School Card to use on the Mac App Store, the App Store, the iTunes Store, and the iBookstore. Other than that, when buyers buy a printer with MacBook, they can save up to $100 via rebate.

Apple also applies psychological pricing. Psychological pricing is defined as certain prices or price ranges make products more appealing than others to buyers. The marketer wants the consumer to respond on an emotional, rather than rational basis. Apple incorporates psychological pricing in a different way. Most of apple products are using odd pricing strategy. For example: iPad RM 1499,iPod shuffle RM179, iPod nano RM549, MacBook Pro RM 3099 and MacBook RM8199. Many people assume that a price of RM1499 appeals more strongly to consumers than RM 1500.Buyers emotional respond and interpret it as RM 1490. While this strategy applies to product-line pricing, would urges consumers to step up to the next model and pay more for a higher model. For example, the RM2099 iPad yields the best value because the price per GB is RM32.8 (RM2099/64) while the RM1499 yields a price per GB of RM93.69 (RM1499/16). Buyers wanting to purchase the 16GB initially, but ended up purchasing the 32GB or 64GB model. Apple use product line and set the price differences between the upgrades of a product or service. Apple has different versions of the iPad2 and all will have different prices. One of the versions will have 3G While, another have 3G and Wi-Fi, which some customers may believe this will add value to the iPad. Below are the prices ranges for iPad 2 in Malaysia. Wi-Fi Only: iPad iPad 2 2 16GB 32GB (RM (RM 1499 1799 or or above) above)

iPad 2 64GB (RM 2099 or above) Wi-Fi + 3G: iPad iPad 2 2 16GB 32GB (RM (RM 1899 2199 or or above) above)

iPad 2 64GB (RM 2499 or above) Apple use this pricing strategy that charges customers difference prices for the same product or service based on individual bargaining. In pure price flexibility, the seller will charge each customer the maximum price that he or she is willing to pay. Apples price cut is an example of a strategy where it charges people different prices depending on their desire or ability to pay. Apple gain wide profit margins from those willing to pay a premium price.

Apple reduced $200 from the original price of the iPhone just two months after its release. After a flood of complaints by its customers, Apple attempt to rectify complaints by offering $100 store credit to early iPhone customers. Apple Inc receiving a fair margin and gain satisfaction of early buy iPhone customers. Apple use bundle pricing strategy ingrouping items together and selling them for less than if each item were purchased separately. Buy an Apple product and you'll spend more on future. For every iPad or iPhone sold, Apple likely counts on your future song purchases, video rentals, and soon iAd clicks on app advertising. Every mobile handset, for instance, has some of its costs buried in future monthly data fees over a two-year phone contract. The price over time is much more than what you think picking up the Apple gadget. Apple makes customers willing to pay more and have hidden prices in future. 4. Market Opportunity When the launch of iPad, Apple facing some marketing opportunities. The major opportunity during launching iPad is the building business advocates which are the business use. Which iPad launched as an electronics device, Apple ignored this new type of tablet computer fills the needs of businesses from restaurants to hospitals in its initial launch marketing. Feeding the base also is one of the opportunity faces by Apple during launching iPad. Apple tried to keep news and information about iPad. Apple gives the lawful power or authority to its nation of rabid supporters because the replacement of the acting likes a stonecold corporation. Apple no need to make known of a new product but could have done a few things to reward the fans and early adopters. Through the engaging bookworms, there is no secret that new iPad will drive an entire new business channel of the iTunes Store with the Digital books because of the price cheaper than the printed books and can be sell to the readers including teachers and students. Apple Inc also facing problem on appealed to an older market. This is because iPad has to appeal to older electronics users but iPhone or iPod doesnt have to appeal. Portable electronic devices were too small and hard to read for older users such as net books, iPad gives an easier to old users because of the screen size is with a simple user surface.

Last marketing opportunity face by the Apple Inc is the getting gamers geeked. Apple has been adding games on the iPhone and iPod touch, with the iPad launching, gaming is being more important on the device as well. Gamers are excited about new game; there is no dedication for channels online to show upcoming games as well as the critical mistakes of the game developers in inbound marketing. Sales of iPad could be increased by building a content network to hype up the launch. 5. Recommendations In today market, consumers are more concerned product that is environmentally friendly. Especially consumers across North America are trying to change their attitude to lead more environmentally friendly lives and becoming more conscious of how damaging many of our current practices are. To be a success company, Apple should take part in social responsibility by emphasize on go green and this could help in improving public image of the company. Starting a green business has advantages over competitors. Now, environmentalism is still growing so Apple Inc will be starting a business on targeting a growing market. Institute of Public and Environmental Affairs and China Environmental Groups in China Say Apples not green and at the bottom of a 29-company list ranking corporate responses to pollution and safety concerns at their factories. Apple green policy is not working and they should find other alternatives to solve this problem. Apple company environmental practices are less than competitors, particularly HP and Dell take part in environmental programs such as recycling computers, phasing out toxic chemicals like PVC from its computers, ensuring transparency and a willingness to talk to environmental groups. Apple is not being leader in removing toxic chemicals like PVC from its new products. This had make customers, shareholders, employees and the industry confuse as Apples desires and others plans to become a green company. Apple should remove toxic chemicals from new products. Toxic chemicals in electronics lead a big problem to the environment. Every year, more and more technology gadgets been produced and disposed. This cause more toxic pollution when new product are produced and when they are thrown away. Apple can phase out worst chemicals from its product and production process. Apple Inc should follow other companies for example Dell and HP set a date to remove PVC from their product. As we known, major new product like iPod Nano and MacBook still contain PVC. Start from

now, apple should change and all new Apple product launched should be free of the worst toxic chemicals in the production process and product themselves.

Apple does not have some take back programs especially in Asia. This service must enforce by law for example in Europe and Japan. Only under pressure condition, apple just offer computer take back campaign, iPod and mobile phones take back program in the U.S. These entire programs only apply in the U.S. and overall are not effective. Some of their take back program just only Mac or PC desktop and notebook computers qualify for the Apple Recycling Program. If Apple Inc can apply this policy to worldwide and all types of computer and computer accessories this could increase their sales. By organize take back program, customers can turn that computer youre not using anymore into a brand-new Mac, iPod, iPhone, or iPad. Apple Inc should recycle product as their responsibility and not charge customer for recycle. This would be a big step to preventing most Apple products from ending up thrown in the e-waste. In addition, apple Inc should not just focus on go green of their product production process. Apple can educate customers and letting people especially loyalty customers know what their company are doing as well. What a company need to do is whatever company are doing to enhance the environment, just send e-mail to let customers know their green marketing campaign. Apple company should educate public know a single use plastic bag takes about one thousand years to decompose and know why single use plastic bags are environmentally disastrous and that you and your business care about the environment. Other than that, apple company should let their loyalty customers know how to prevent waste by buying product that are energy efficient, used or reusable, made with recycled content or are recyclable, no packaging or reduced packaging . Apple Inc can go green by giving customers an opportunity to participate through letting the customer take part in positive environmental action. Suppose that apple Inc have decided their business will no longer use plastic bags to wrap customer purchases and participate customers to stop the proliferation of plastic bags in landfills by using recycle bag. As we known, plastic bags takes about one thousand years to decompose Apple company should ensure that none of their business practices contradict your decision not to use plastic bags. So, customers would feel that your company really concern about environment and willing to take part too.

Conclusion, more and more companies are practice go green in many way of their business. If Apple Inc still lags behind, they will miss out their opportunities and competitive advantages over their competitors. 6. Conclusion Based on the findings, Apple Inc has been very successful by using the marketing mix strategy. The finding indicate that Apple have using skimming price strategy to place themselves as a quality product in the market. Besides, Apple also launching a Get a Mac campaign to attract many new customers. Apple Inc is facing some marketing opportunities such as feeding the base, appealed to enter an older market and getting games geeked. We have suggest Apple Inc. to make a clear stand for being a green company by removed PVC from their product. Besides, Apple Inc should recycle their product to prevent most of their product ended up thrown in the e-waste. From the report, we learn the business strategy used by Apple Inc and their history. We also learn about how they created the marketing opportunities by their product.

7. References David L. Kurtz , (2010). Principles of Contemporary Marketing, International Student Edition , South-Western 2010. Retrieved on 16 June, 2011. Apple and the Environment (2011). Retrieved on 19 June, 2011, from

http://www.apple.com/environment/
Apple Inc Marketing And Distribution Strategy, Kaushik Mukherjee (2010). Retrieved on 20 June, 2011, from http://www.slideshare.net/Nanor/distribution-policy-apple-presentation