Bm Case Study Apple I Pod

Product: Portable

Music Player

Brand(corporate):

Brand(family): ipod

Presented by:

Radhika Sukhani

Anjali Sharma(NA)

Ashutosh Nautial(NA)

iPod: Creating and Iconic Brand

1976 Apple was found

1977 The Apple II microcomputer was introduced

1983 Apple employ a graphical user interface

1984 Macintosh was introduced

2001 iPod was introduced.

2005 iPod Nano was introduced

2006 iPod Nano (2nd Generation) was introduced.

2007 iphone was introduced

How evolved

Digging roots: iPod

Napster: digi music introduced

P2P

Pressplay

Winamp + real player

FireWire

iPhoto + iMovie

itunes

iPod

Other mP3 players

Consumers for iPod:

Initial TG for digi music: computer users+ users with passion for music

WOM marketing: Mac users first spread the word!

iPod targeted people who were tired of the complicated mp3 players and awaited simplicity.

the

public’s

perception

Problems with other PMP’s

Storage capacity&

Portability Complexity of design & usage and Battery life

Communication and distribution

Quick

Understanding brand image of iPods

Before iPods there were Mp3 players!!

ipod everywhere:

Love – Mystery, Sensuality, Intimacy

Respect – Performance, Trust, Reputation

Products – Low Love, Low Respect

Fads – High Love, Low Respect

Brands – Low Love, High Respect

Lovemarks – High Love, High respect

Lovemark’s Love/Respect Axis

Performance Features – Mckinsey Quarterly 2003, Vol #4

TOM: Consumer Survey

•clean •good-looking• reliable•freedom•cool•status•“it makes you happy”, •“typical Sony product”, “classic Apple product”, •user-friendly• neat•“an image thing”

•“the iPod” not something like “Apple’s new mp3-player”.

RESONANCE:

LOYALTY

ATTACHMENT

COMMUNITY

ENGAGEMENT

JUDGEMENT:

QUALITY

CREDIBILITY

CONSIDERATION

SUPERIORITY

FEELINGS:

WARMTH

FUN

EXCITEMENT

SECURITY

SOCIAL

APPROVAL

SELF-RESPECT

SALIENCE:CATEGORY

IDENTIFICATION

NEEDS SATISFIED

PERFORMANCE: PRIMARY

CHARACTERISTICS &

SECONDARY FEATURES

PRODUCT RELIABILITY,

DURABILITY &

SERVICEABILITY

SERVICE EFFECTIVENESS,

EFFICIENCY, & EMPATHY

STYLE AND DESIGN

PRICE

IMAGERY:USER

PROFILES

PURCHASE & USAGE

SITUATIONS

PERSONALITY &

VALUES

HISTORY, HERITAGE,

& EXPERIENCES

Sub-Dimensions of CBBE Pyramid

Breadth:↑Purch+ Consumption considerationDepth:↑recognition + recall+ identification for catagory of membership

Great design + style + Price range+ product reliability n features

Clearly defined TG + attached PromotionsWell defined distribution channelCreated the iPod gang

Brand quality– Value↑– Satisfaction↑

Brand credibility– Expertise– Trustworthiness– Likability

Brand consideration

– Relevance↑

Brand superiority

– Differentiation↑

↑

Mainly for:Fun & excitementSocial approval & respect

Resonance marked the journey for ipod each parameter was rated high

Business model: Razor Model

itunes

ipodsitms

+

ipods

Compatible ipods with windows

OS

ipodaccessories

iPod as a cultural artifact

1st Generation

Launch – November 10, 2001

Priced at $399

5 Gb Gigabyte

“IDIOTS PRICED OUR DEVICE”

Not compatible with Windows

No MP3, infact AAC format was used

Advertisement – “1000 songs in your pocket”

IT WAS A SUCCESS BUT NOT A SENSATION

1st Generation

• Launched in July 2002

• Bigger Storage Capacity [10Gb & 20 Gb]

• Lesser in Price

• Mechanical Scroll Wheel Replaced

• Heavier due to casing

Announced it Windows Compatible Version

2nd Generation

• Sold 381,000 Units in FY 2002

($143 million revenue)

• Won Gold Medal from Business Week Industrial Design Excellence Award 2002

• Won Gold Medal from Art Design awards in UK

FACTS

3rd Generation

What made it a big hit ?

• 40 Gb Hard disk

• Slightly smaller in size

• Had more distinct beveled edges

• Came with a docking station

• Had a touch sensation button with RED BACKLIGHT

• Purchasing online from Apple store offered to engrave 2 lines of laser text on the back of IPOD

3rd Generation

1. Allowed user to own music

2. Allowed Portability

3. ITMS – the 1st legal digital music store to offer music from all 5 majors record labels.

It offered 2 lac songs library

Featured rules for downloading & copying

(They were uniform across all available songs)

ITMS ( I tunes music store )

FACTS

• Enabled to download 1 song for 99 cents

• Entire Album for $9.99

• In the 1st week – 1 million songs sold

• After 16 days - 2 million

• By early September - 10 million

Market players

San disc: affordable price and huge capacity

Sony

Microsoft ‘Zune’: New Competitor

Wireless Feature & music store service

CreativeIriver: Innovative design and low price

Samsung: compactness and

durability

high

low

Off

eri

ng

s

Factors of Competition

Consumer

Focus

Design

Innovation

“Cool”

Factor

Engineering

Prowess

Manuf.

Capability

Ease of Use

Price

Ecosystem

/ Alliances

Market

Share

Value curve: Competition outlook

1.

2.

3.

4.

iPod =

The simplicity of

“DESIGN”

(not only its look & feel but its functioning)

Customer

Emotional

Consumption

Value

Consumption

Design as a primarypurchasing decisionfactor

Technology

Friendly

Trends

Friendly

Price-performance sensitivity Value = Benefit/Cost

Get used to using electronic devices Widespread using of handhelddevices such as PMP

Apt to not being fallen behind to the trend

iPod

Schema: Consumers

Consumer characteristics:

•Conscious, “…they are into

interesting things

•“… have a stronger relation to

their ipod [than do Mp3

players]”

•Clubkid

•DJ

• designers

• architect

• aesthetic person

•“Know what’s going on”

• “Music-interested people”

•urban people

expensive

portable

high performance

cool

Must haveUser friendly

cute

Status symbol

STP:

30 40 Age2010

TechnologyEnthusiasts

Visionaries

Pragmatists

Conservatives

Skeptics

“iPod is a fashion of young age.”

1000 songs in your pocket!

Marketing Mix: Product

iPod Classic

Marketing Mix: Product & Price

iPod Shuffle

Marketing Mix: Product & Price

iPod Nano

Marketing Mix: Product & Price

iTouch

Marketing Mix:

Marketing Mix: Promotion

Show up everywhere!!!

Marketing Mix - Promotion

Experience Marketing

: Touch, Feel, and Purchase

Secret Marketing

??

Conceal news of new product

as long as they can hold.

Maximize mystique of the new

product. Strict guideline of

‘Information leak’ by the

internal employee.

The Apple Store is the best

place to learn everything

there is to know about

the iPod.

Other initiatives

Marketing Mix: Place

retailerswebsite AppleStore

Other innovative distribution scheme(s)•Partnership with radio shak which had 7000 outlets.•At airports•Duke university: distribution of free iPods and eventually at subsidized prices.

Accessorize!!!

Accessorize….!!!

Co- Branding initiatives

Innovation in iPod : iBreath

Sandisc: The Envious competitor!

•iPod became first to use compress technology•iPod was first commercial brand to market portable MP3 successfully.•The capacity to store thousands of songs.•Many celebrities liked it•Cool and sleek design•Click wheel concept (Menu selection)•Good interface software - itune•Simple to use•Product came from Apple, known for cool gadgets.•got rid of CD player, all music in one place.•Ability to keep Music,Photos, Movies and Games at one place.•massive advertising done for this product.•People’s support for device

Reasons for iPod boom

Thank you!!!