Apple's AirTags a solution to a problem 🔍 Evolving Strategies

EVOLVING STRATEGIES

This week’s opportunity to evolve your strategy

Apple's AirTags a solution to a problem

Quick read:

• Apple found an opportunity to a solve a customer in the travel industry and sold 35 million AirTags making $1 billion in revenue.

• Leverage first mover status to create a strong brand recognition in the new market, and capture revenue.

• To evolve your strategy understand your market, and create a solution for a customer problem.

The digital sales strategy of Apple AirTags:

AirTags were the first of it's kind with the soul purpose of helping customers find their lost luggage at airports. They were initially marketed for travellers as more people were starting to get on planes again, and luggage was getting lost regularly. After almost 2 years in a pandemic, airlines weren't able to handle the volume of travellers coming through and luggage being lost was a huge customer irritant. AirTags were marketed as a luggage finder for iPhone holders, connected through bluetooth. They are inexpensive items that come in around $30 Canadian for 1 AirTag.

Introduced in April 2021, just as the world was starting to open up again and people starting to live their lives normally. The downside was that airports and airlines weren't prepare for the volume of people travelling again. They had lost their footing with smaller groups of travellers for over a year and lots of empty seats on planes. Inefficiencies lead to thousands of pieces of luggage being lost and misplaced.

Apple stepped in with the AirTag, small and compact. Throw it in your suitcase and track it as you head on your travels. 35 million units were sold in 2022. That's a lot of revenue coming in for a product that's designed to help customers when airports can't.

How it impacts your business:

Apple was first to enter the market of luggage finder, a niche market. They took advantage of first mover status by being first to enter market and gaining a competitive advantage. They kept up with changing markets and trends to identify a gap in the travel industry. Although a short period possibly for the need for luggage finders, still an opportunity that wasn't missed.

It's a simple design that's compact to make it easy to fit into your luggage. Easy to use and connect, it solved a customer problem. In a fairly new market, Apple had made $1 billion in revenue since the launch of it's product in April 2021 through to December 2022.

The first mover status allows your business to grab a foothold in the market by being first to enter the market. It allows your business to create a strong brand recognition with your products. In this case Apple did that with it's AirTags. When you think of getting a device to find your lost luggage, you think of AirTags. How it's positioned now is to help you find your keys, purse, backup and other things you may lose. They've pivoted the purpose of the product to encompass other aspects of customers' lives.

How to apply this:

What you should takeaway and apply to your digital sales strategy:

1. Look at market changes

2. First mover status

3. Create a solution for a problem

Look at market changes

Stay up to date with market shifts and changes that are regularly happening, understand how customer behaviours are changing. Whether good or bad, it's an opportunity to see how things are evolving. When you find an opportunity to innovate a product, bring that to your customers.

If Apple hadn't been keeping up with market changes they wouldn't have come up with AirTags. By watching changing markets and understanding the customer problems they found an opportunity to innovate a new product.

First mover status

When you find a way to solve a customer problem, aim to be the first in the market. It gives your business a competitive advantage by positioning your business in that market, and gaining sales before others entering the market. First mover status has been proven to given businesses a competitive advantage in new markets, creating a strong brand position and gaining sales.

Create a solution for a problem

Apple understood a customer segment, identified an opportunity to solve a problem for them. Don't create a product based on what your business wants and try to sell it. Instead understand your customers and the market, to see what customer pain points they have and create a product to solve their problems.

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