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Marketing to Europe: iPod

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A look at Apple's marketing strategy for the iPod in Europe, and how it differs on a country by country basis

A look at Apple's marketing strategy for the iPod in Europe, and how it differs on a country by country basis

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    Marketing to Europe: iPod Marketing to Europe: iPod Presentation Transcript

    •  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
    • ?