Marketing to Europe: iPod

Slide 1: 

Slide 2:  iPod Comparing Apple’s Marketing Strategy in the UK and France

Slide 3: Discussion Product Sophie Promotion Jamie Price Anna Place Andy Segmentation Ketan Recommendations Ketan

Slide 4: Success

Slide 5: 45M iPods sold since 2001

Slide 6: 14M Sold 4th Quarter 2005

Slide 7: iPods Sold (cumulative) 45M 40M 35M 30M 25M 20M 14m 15M 10M 5M 0M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2004 2005

Slide 8: 1 Billion Songs purchased and downloaded in past 3 years

Slide 9: 3M Songs purchased and downloaded per day

Slide 10: MP3 Player Market Others 27% iPod 73%

Slide 12: Product

Slide 13: iPod Family

Slide 14: 3 Level Analysis of iPod The Core Benefits Secondary Level Augmented Product

Slide 15: 3 Level Analysis of iPod The Core Benefits Secondary Level Augmented Product

Slide 17: Carry thousands of songs on the go Portable Music Player

Slide 18: 3 Level Analysis of iPod The Core Benefits Secondary Level Augmented Product

Slide 19: 3 Level Analysis of iPod The Core Benefits Secondary Level Augmented Product

Slide 20: Distinctive white colour Click-wheel Simple design

Slide 21: Simple user interface Easy to use

Slide 22: No difference in French and UK versions Language support for both in the software

Slide 23: No difference in French and UK versions Language support for both in the software

Slide 24: Minimalist packaging Reflects the iPod design

Slide 25: Minimalist packaging Reflects the iPod design

Slide 26: 3 Level Analysis of iPod The Core Benefits Secondary Level Augmented Product

Slide 27: 3 Level Analysis of iPod The Core Benefits Secondary Level Augmented Product

Slide 28: Brand premium product distinctive name instantly recognisable white earphones clickwheel

Slide 29:  iPod iPod shuffle iPod nano Market segmentation = increased shelf space

Slide 30:  AppleCare

Slide 31: iPod eco-system

Slide 32: accessories

Slide 34: Car integration

Slide 35: Car integration

Slide 36: Car integration

Slide 39: Product Lifecycle

Slide 40: Introduction Growth Maturity Decline

Slide 41: iPods Sold (cumulative) 45M 40M 35M 30M 25M 20M 14m 15M 10M 5M 0M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2004 2005

Slide 42: iPods Sold (cumulative) 45M 40M 35M 30M 25M 20M 14m 15M 10M 5M 0M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2004 2005

Slide 43: iPods Sold (cumulative) 45M 40M 35M 30M 25M 20M 14m 15M 10M 5M 0M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2004 2005

Slide 44: Promotion

Slide 45: Standardised Approach Centralised marketing team Economies of scale Consistent branding

Slide 46: Standardised Approach Centralised marketing team Economies of scale Consistent branding

Slide 47: Standardised Approach Centralised marketing team Economies of scale Consistent branding

Slide 48: Standardised Approach Centralised marketing team Economies of scale Consistent branding

Slide 49: Convergence of tastes

Slide 53: Ad United Kingdom

Slide 55: Ad France

Slide 57: Almost identical advert

Slide 60: TV Advertisement • Internationally recognised music star • No need for translation

Slide 62: Associative advertising

Slide 64: AIDA Awareness Interest Desire Action

Slide 65: Price

Slide 66: Disk Space Text Price

Slide 67: 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

Slide 68: Price Value 9 Box Model

Slide 69: Market in 2001 Sony iPod Creative (MD) Price £299 £200 £150 Songs 1,000 20 40 £ / Song 0.30 10 3.75 Market skimming

Slide 70: iPod in 2001 Perception Competitors Costs

Slide 71: 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

Slide 72: iPod in 2006 Perception Competitors Costs

Slide 73: 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

Slide 74: Cost plus pricing

Slide 75: Place

Slide 76: 2001 Apple.com Customer Apple Retail

Slide 82: 2002 Apple.com Customer Apple Retail Electronic Apple Customer Stores

Slide 83: 2003 Apple.com Customer Apple Retail Electronic Apple Customer Stores Apple Websites Customer

Slide 84: 2006 Apple.com Customer Apple Retail Electronic Apple Customer Stores Apple Websites Customer Apple Customer Supermarket

Slide 85: ✓ ✓ Apple.com ✓ Apple Retail ✘ ✓ ✓ Electronics ✓ ✓ Websites ✓ ✓ Supermarket

Slide 86: Apple Retail ✘ •Compete in stores that sell other devices •Lack of expert knowledge of product •Inconsistent personal selling

Slide 87: Segmentation

Slide 89: No boundaries Age Gender Race Continent

Slide 90: No boundaries Age Gender Race Continent

Slide 91: Psychographic target on the basis of some psychological trait, characteristic or life style

Slide 92: Problem?

Slide 93: Player Songs £ / Song Tape 15 1 CD 20 2 Flash 20 10

Slide 94: Player Songs £ / Song Tape 15 1 CD 20 2 Flash 20 10 iPod 1000 0.30

Slide 95: Solution?

Slide 96: Entire music collection in your pocket (for most people!)

Slide 98: Positioned itself as the choice for music fans with the artist promos

Slide 99: Recommendations

Slide 100:  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

Slide 101: ?