

 iPod
Comparing Apple’s Marketing Strategy in the UK and France

Discussion
Product Sophie
Promotion Jamie
Price Anna
Place Andy
Segmentation Ketan
Recommendations Ketan

Success

45M
iPods sold since 2001

14M
Sold 4th Quarter 2005

iPods Sold
(cumulative)
45M
40M
35M
30M
25M
20M
14m
15M
10M
5M
0M
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2004 2005

1 Billion
Songs purchased and downloaded in past 3 years

3M
Songs purchased and downloaded per day

MP3 Player Market
Others
27%
iPod
73%

Product

iPod Family

3 Level Analysis of iPod
The Core Benefits
Secondary Level
Augmented Product

3 Level Analysis of iPod
The Core Benefits
Secondary Level
Augmented Product

Carry thousands of songs on the go
Portable Music Player

3 Level Analysis of iPod
The Core Benefits
Secondary Level
Augmented Product

3 Level Analysis of iPod
The Core Benefits
Secondary Level
Augmented Product

Distinctive white colour
Click-wheel
Simple design

Simple user interface
Easy to use

No difference in French and UK versions
Language support for both in the software

No difference in French and UK versions
Language support for both in the software

Minimalist packaging
Reflects the iPod design

Minimalist packaging
Reflects the iPod design

3 Level Analysis of iPod
The Core Benefits
Secondary Level
Augmented Product

3 Level Analysis of iPod
The Core Benefits
Secondary Level
Augmented Product

Brand
premium product
distinctive name
instantly recognisable
white earphones
clickwheel


iPod
iPod shuffle iPod nano
Market segmentation = increased shelf space

 AppleCare

iPod eco-system

accessories

Car integration

Car integration

Car integration

Product Lifecycle

Introduction Growth Maturity Decline

iPods Sold
(cumulative)
45M
40M
35M
30M
25M
20M
14m
15M
10M
5M
0M
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2004 2005

iPods Sold
(cumulative)
45M
40M
35M
30M
25M
20M
14m
15M
10M
5M
0M
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2004 2005

iPods Sold
(cumulative)
45M
40M
35M
30M
25M
20M
14m
15M
10M
5M
0M
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2004 2005

Promotion

Standardised Approach
Centralised marketing team
Economies of scale
Consistent branding

Standardised Approach
Centralised marketing team
Economies of scale
Consistent branding

Standardised Approach
Centralised marketing team
Economies of scale
Consistent branding

Standardised Approach
Centralised marketing team
Economies of scale
Consistent branding

Convergence of tastes

Ad
United Kingdom

Ad
France

Almost identical advert

TV Advertisement
• Internationally recognised music star
• No need for translation

Associative advertising

AIDA
Awareness
Interest
Desire
Action

Price

Disk Space
Text
Price

Size 512MB 1GB 2GB 4GB 30GB 60GB
Price £49 £69 £139 £179 £219 £299
Difference +£20 +£50 +£40 +£40
+£80
£/GB £95 £69 £70 £45 £7 £5

Price
Value
9 Box Model

Market in 2001
Sony
iPod Creative
(MD)
Price £299 £200 £150
Songs 1,000 20 40
£ / Song 0.30 10 3.75
Market skimming

iPod in 2001
Perception
Competitors Costs

Market in 2006
Price £220 £220 £199
GB 30 30 20
Songs 7,500 7,500 5,000
3p 3p 4p
Price / Song
Apple iPod Creative Vision:M SONY NW A300

iPod in 2006
Perception
Competitors Costs

Price £299 / €424 £308 / €446
Sales Tax 17.5% 19.6%
Ave. Salary £21,300 / €31,200 £16,663 / €24,400
% 1.4 1.82
£1 = €1.42

Cost plus pricing

Place

2001
Apple.com
Customer
Apple Retail

2002
Apple.com
Customer
Apple Retail
Electronic
Apple Customer
Stores

2003
Apple.com
Customer
Apple Retail
Electronic
Apple Customer
Stores
Apple Websites Customer

2006
Apple.com
Customer
Apple Retail
Electronic
Apple Customer
Stores
Apple Websites Customer
Apple Customer
Supermarket

✓ ✓
Apple.com
✓
Apple Retail ✘
✓ ✓
Electronics
✓ ✓
Websites
✓ ✓
Supermarket

Apple Retail ✘
•Compete in stores that sell other devices
•Lack of expert knowledge of product
•Inconsistent personal selling

Segmentation

No boundaries
Age
Gender
Race
Continent

No boundaries
Age
Gender
Race
Continent

Psychographic
target on the basis of some psychological trait, characteristic or life style

Problem?

Player Songs £ / Song
Tape 15 1
CD 20 2
Flash 20 10

Player Songs £ / Song
Tape 15 1
CD 20 2
Flash 20 10
iPod 1000 0.30

Solution?

Entire music collection in your pocket
(for most people!)

Positioned itself as the choice for music fans with the artist promos

Recommendations


1 Maintain single global product for all markets
2 Develop Apple stores in main French cities such as Paris
3 Continue leveraging iPod brand into new areas

?