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Apple iPod Product Life Cycle (PLC) in 2009
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Apple iPod Product Life Cycle (PLC) in 2009 Presentation Transcript

  • 1. Product Life Cycle Analysis of Apple iPods In 2009 iPod Nano iPod Shuffle iPod Touch
  • 2. Sameer Mathur BuddingMarkets.com Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009
  • 3. Agenda • Evaluate Apple’s iPod products with respect to their stage in the Product Life Cycle • Recommend a Marketing Mix strategy for iPod products in the –Growth Stage –Decline Stage
  • 4. Apple iPod Products in 2009 iPod Nano iPod Touch iPod Shuffle iPod Classic iPhone http://www.apple.com/ca/ipod/compare-ipod
  • 5. Apple iPods in 2009 • iPod® is the world’s most popular family of digital music players with over 220 million sold. • Apple’s 2009 holiday lineup includes iPod shuffle in five great colors starting at just $59; • iPod classic® in a new 160GB model holding up to 40,000 songs for $249; • The new iPod nano® with a video camera available in nine colors starting at $149; • The revolutionary iPod touch® starting at the $199.” http://www.apple.com/pr/library/2009/09/09shuffle.html
  • 6. iPods = 28% of Apple’s 2008 Revenue 28% 27% 7% 10% 6% 17% 5% iPod Portables Desktops Other Music Related Products and Services Software, Service, and Other Net Sales iPhone and Related Products and Services Peripherals and Other Hardware Datamonitor USA – www.datamonitor.com. (March 16th 2009). Apple Inc. Company Profile.Retrieved from http://www.marketlineinfo.com/library/DisplayContent.aspx?R=5B0A0C20-9BB6-4284-A575-AC0F2261F45C&N=4294839864
  • 7. over 220 million iPods sold http://geekwhisperin.files.wordpress.com/2009/05/total-ipods-sold-till-june-2008.jpg
  • 8. over 220 million iPods sold IPod. (2009, October 27). In Wikipedia, The Free Encyclopedia. Retrieved 00:30, October 28, 2009, retrieved from: http://en.wikipedia.org/w/index.php?title=IPod&oldid=322292309
  • 9. Product Life Cycle – Theory Review 1 - Introduction stage: • product is first introduced, • sales grow slowly profit is minimal • spend a lot on advertising, • few competitors with same product, • company restricts the number of variations of the product to ensure control of product quality 2 - Growth stage: • Rapid increase in sales, • Competitors appear, • Profit peaks during this stage: people are trying it; “repeat purchases” • Changes start to appear in the product, an improved version is created or new features are added to original design, to differentiate from competitors. Marketing 7th edition, p. 280-281
  • 10. Product Life Cycle – Theory Review 3 - Maturity stage: • Slowing of industry sales, profit declines • Competitors begin to leave market, • Consumers are repeat purchasers or have tried and abandoned it, • Few new buyers, market attention toward holding market share or further product differentiation, • Reduce marketing costs by improving promotional distribution efficiency. Ex. conventional TVs 4 - Decline stage: • Occurs when sales and profits begin to drop, • Environmental changes, technological innovation often precedes the decline stage, • New technologies replace older technologies Marketing 7th edition, p. 280-281
  • 11. What Stage Are iPods In (2009)? • iTouch: Growth (relatively new product, new features, high demand, advertisement) • iPhone: Growth (relatively new product, new versions, very high demand, advertisement “improved iTouch”) • iPod Nano: Growth (people are still buying it, new versions, high demand, advertisement) • iPod Classic: Maturity (oldest product, limited promotion, limited features, differentiate with high memory) • iShuffle: Decline (older product, limited promotion, limited memory, no screen, better technology exists)
  • 12. 1st Release Dates • iPod Classic: October 2001 • iPod Mini: January 2004 • iPod Shuffle: January 2005 • iPod Nano: September 2005 • iPod Touch: September 2007
  • 13. Popularity (October 2009) Top 5 Best Sellers online Amazon.com eBay.com 1. iPod Touch (3rd) 32GB 1. iPod Touch (3rd) 64GB 2. iPod Touch (3rd) 8GB 2. iPod Touch (2nd) 8GB 3. iPod Classic (7th) 160GB 3. iPod Nano (4th) 8GB 4. iPod Touch (3rd) 64GB 4. iPod Classic (6th) 160 GB 5. iPod Nano (5th) 8GB 5. iPod Touch (3rd) 32GB
  • 14. Apple’s Current Strategies • On website: focus on the NEW  applications, product updates, new features, new iTunes version • Effective advertising: unique, catchy, colourful • Effective promotion: student bundle discounts, package deals • Informative website: which iPod are you? • Online store: exclusive products • Limited Edition products • New colors, shapes, sizes, memory, video option • iTunes: constant updates, improvements • iPod engraving on products
  • 15. Stages In The Product Life Cycle Growth Decline Marketing Objective: Stress differentiation Harvesting or deletion Competition: More Reduced Product: More versions Best sellers Price: Gain market share, deal Stay profitable Promotion: Stress competitive differences Minimal promotion Place: More outlets Fewer outlets Marketing 7th edition p. 279
  • 16. Marketing Mix For iPod Touch (Growth Stage) • Product: “A great pocket computer”. Music, movies, games, apps at fingertips. • Price: 8GB : $219; 32GB: $329; 64GB: $429 • Promotion: Advertisement on TV, billboards, magazines. Focus on numerous applications. • Place: Online, Apple Store, Best Buy, Costco. http://www.apple.com/ca/ipod/compare-ipod-models/
  • 17. Recommendations • Continue emphasis on new applications • Emphasis: “pocket computer” (built-in Wi-Fi) • Continue on catchy and unique commercials • Make it more compact: thinner, lighter • Perhaps more colors • Market to students; potential study device http://www.independent.co.uk/student/postgraduate/mbas-guide/turn-on-your- ipod-and-learn-1795521.html
  • 18. Marketing Mix For iPod Shuffle (Decline Stage) • Product: Plays music • Price: 2GB: $69 ;4GB: $89 - $109 • Promotion: Focus on small size and low price. Less advertisement than other products. • Place: Online, Apple Store, Best Buy, Costco. http://www.apple.com/ca/ipod/compare-ipod-models/
  • 19. Recommendations HARVESTING OR DELETION? - Keep it (harvest) • Add a small screen: ability to chose song • Add FM radio feature • Target market: music lovers, people who do not need/want the other features • The key: very small size • Focus on simplicity • Even with the screen, can still remain the least expensive and smallest iPod
  • 20. Over 1 Million views from more than 100 countries Prof. Sameer Mathur Top 1% most viewed Over 250 presentations on Marketing www.BuddingMarkets.com