Mongolia’s Iphone 5, Essay Example

With the recent release of the Iphone 5, the demand in international countries has grown increasingly greater.  The Iphone 3, 4, and 4s has had success in Mongolia to-date.  Currently there are 3 million people that reside in Mongolia.  This land-lock, bordering Russia and China is continually pursuing the economic advancement of their country.  According to the notebook, Mongolia’s economy is dependent on mineral mining, animal products, textiles, and livestock.   This is just a few examples of the professions that could benefit from the technology that comes along with the Iphone 5.  With such a high demand product, marketing should be easy, but this high demand product comes with a hefty price tag.

Competitors of the Product

In the Mongolian market it is important to see the type of competition that the Iphone 5 is facing when entering this market.  “Blu click, Samsung B2100, Motoralo EX2100, Samsung C3050, Motorola V3 RAZR, Samsung GTI5500 Galaxy Europa, Iphone 4, and Iphone 4s.” (What Phone) Many of the phones have limited options, and are primarily used for phone calls and texting.  The Iphone 4 and Iphone 4s have similar characteristics as the Iphone 5, but are not fully evolved to the level this new version has.   The competition in the cell phone industry is limited.  Certain phones have to operate on select networks, taking out many of the popular phones that are utilized in the United States. 

According to the notebook, “the basic business customs and practices coincide with the common practices in the United States.”  Many professionals rely on phones with the capabilities that the Iphone 5 offers.  This provides an opportunity for a “mobile office”.  This is access to every necessary tool such as internet and email, while being on the go.  Many of the alternate phones do not offer the same options.  The strongest competition for entering the Mongolian market will be the earlier versions of the Iphone 4 and Iphone 4s.

Target Market

There are many avenues that can be taken to market the new Iphone 5.  Due to its reputation and its previous models, the new 5 typically appeals to all demographics.  According to the notebook, the average monthly income is $150.  This makes it very difficult to be affordable in every household.  Therefore, targeting the professionals and the higher income bracket will make it a more marketable product.  Whereas is could appeal to teenagers or young adults, it is highly unlikely that this would be the market that would be able to afford a product in this pricing category.

Targeting the working individuals would be the best route for Apple to take.  “In a country where three million people are spread over 1.5 million square kilometers (Mongolia is the least densely populated country in the world), communicating without mobile phones can be difficult and expensive. Just think how hard it would be to get a message to a herder somewhere in the hills, or to someone in a ger in the next valley. It’s easy to see that mobile technology is more than a convenience in rural Mongolia.” (Lawrence)

Market Strategy (Product, Price, Promotion, and Distribution)

The product is the best way to market this high of a price tag.  The Iphone 5 has the capability to do virtually everything from a high resolution camera, apps that operate financial, social, and entertainment options, and internet at the touch of a button.   In addition it offers the option to use it as a phone or to text.  Marketing the features of this visibly appealing, sleek model will create the need.  “Look at iPhone 5 and you can’t help but notice the exquisite chamfer surrounding the display. A crystalline diamond cuts this beveled edge. It’s what gives iPhone 5 its distinctive lines. Fitting for a phone so brilliant.” (Lam) Highlighting the product it the best way to market to a country that where the poor are poor and the rich are rich, and very little in between.

The price of the Iphone 5 can be quite steep.  According to the notebook, Mongolia is not a country that is known for its wealth.  It is comprised of many poor individuals.  Much like what we are familiar with, the rich get richer, and visa versa.  The price of the Iphone 5 can run from $199 all the way to $850 depending on the contract and GB associated with the phone.  For any individual to be willing to pay that big of a price, they have to be able to associate their personal needs with the service this phone will provide.  In this type of a country, it can’t simply be based on the Iphone 5 being the “latest and greatest”.

Promotion of this product can be done in several ways.  It can be through word of mouth, target market, or overall benefit of the product.  Iphone 5 is bringing business to Mongolia through their usage of lithium.  Nova Mining President James Dilger said, “The Iphone 5 orders sold out in minutes on Friday and analysts are predicting that retailers will see lines as long as the record queues seen for the iPhone’s original debut in 2007. I am glad to say that we have made moves to place Nova Mining Corp in the best possible position to benefit.” (Nova Mining) This is a good way to promote the product; it is creating more jobs for them.  Buying one is simply promoting their economy as well.

Lastly, distribution will be a key in the marketing strategy.  Part of the popularity of the Iphone 5 in the United States is the limited availability of this product.  It sold out one week prior to its release and is currently around a month behind on current orders.  This heightens the demand for the product and is also a brilliant marketing strategy.  The higher the demand, the higher the sales will inevitably be.  When this product launches in Mongolia, the stock will not exceed the demand.   This will cause media attention and increase the desire.  Even individuals who have no original intentions of buying this phone will wonder why everyone wants it.

Mongolia’s plan to launch the Iphone 5 has the ability to generate an excessive amount of revenue.  Currently there is no real competition for phones of this capability, and the need for its features is growing as well.  Targeting the correct market will require referencing the notebook and finding the best fit for this product.  Finally, the marketing strategy will address product, price, promotion, and the distribution of the product.  The product and its features will be the key component of the strategy, but the other areas will be utilized as well.  By following the marketing plan, it will ensure the desired success with the launch of the new Iphone 5.

References:

Lawrence, Dave. ”Can you hear me now? Yes – Mobile phones in the Mongolian Countryside.” World Bank Group, 2012.  20 Nov. 2012. Web.

“What Phone Should I Choose?” Cellular Abroad, 2012.  20 Nov. 2012. Web.

“Nova Mining Corp Betting iPhone 5 Launch will Drive Lithium Prices Exponentially Higher” Mongolia Economy and Finance, 2012.  20 Nov. 2012. Web.

Lam, Kempton. “Scuff Marked iPhone 5 Deceptively Promo as “Finely Crafted Watch” Precision?” Examiner.com, 2012. 20 Nov. 2012. Web.