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Think Different: The Decade of Apple
 

Think Different: The Decade of Apple

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As the revolutionary iPod celebrates its tenth anniversary and Apple announces a new iPhone, Compete looks back at how Apple has changed the game for consumer electronics … from product portfolio ...

As the revolutionary iPod celebrates its tenth anniversary and Apple announces a new iPhone, Compete looks back at how Apple has changed the game for consumer electronics … from product portfolio planning to online marketing, to channel and distribution strategies.

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    Think Different: The Decade of Apple Think Different: The Decade of Apple Presentation Transcript

    • Think Different: The Decade of AppleHow Apple Changed the Rules of Consumer Electronics Marketing
    • Today’s Presenters
      Chris Collins, Director, Technology & Entertainment at Compete
      Alyssa Maine, Marketing Coordinator, Marketing at Compete
    • Webinar Logistics
      Today’s webinar will be recorded. You will be emailed a link to the deck and recording.
      Please enter your questions in the Questions box. We will answer as many as possible at the end.
      If you have technical difficulties, try loggingback in or use a different browser
      The Twitter hashtag for today’s webinar is #competetech
    • About Compete
      Who We Are
      Who We Work With
      • The fastest-growing digital measurement company in the US
      • The leading provider of market research and competitive intelligence, based on billions of online, mobile and survey inputs from millions of consumers
      • Part of WPP and Kantar Media; partner relationships provide a holistic view of consumer behavior, attitudes and preferences
    • Today’s Agenda
      The Decade of Apple
      Marketing Mastery
      Brand Awareness
      Brand Engagement
      Product Consideration
      Online & Offline Conversion
      Looking Ahead
    • The Decade of Apple
    • 2001
      2003
      2005
      2007
      2009
      2011
      $7.75
      $10.36
      $53.61
      $153.47
      $185.33
      $412.14
      Source: Yahoo Finance; average stock price for September of 2001-2009, closing price on September 14 2011
      A Decade of Apple: Products & Profits
    • Brand Awareness
    • MythApple doesn’t spend a lot on marketing
      RealityApple spends a lot on marketing -over $3 billion in the last five years
      (They just spend it really well)
      Source: Apple 10-K Filings; Compete Estimates
    • Big Ad $ = Great Brand Awareness (Part 1)
      Website Traffic, By Unique Visitor
      January 2008 – August 2011
    • Big Ad $ = Great Brand Awareness (Part 2)
      Mobile Website Traffic, By Unique VisitorJune 2011
      Source: Groundtruth
    • Brand Engagement
    • But Awareness ≠ Engagement
      $100+ millionAd Campaign
      6+ millionUnique Visitors to DroidDoes.comin Q4 2009
      ~2 million
      “Click & Bounce”
      Unique Visitors
    • Brand Engagement is Emotional
    • Emotional Engagement = 2M Shoppers / Month
      Website Traffic Demographics
      August 2011
      Total Visitors
      35.4 million
      @ 49% Female:
      17.4 million
      @ 43% Female:
      15.2 million
      Net “Unaddressed” Female Shoppers:
      2.2 million
      57%
      51%
      49%
      43%
    • Product Consideration
    • Product Portfolio
      The collection of products and services that make up a company
    • Portfolio Rationalization -> Product Consideration
      Phone Interest (L - bar) and # of Models (R - dot), By Brand
      June 2008 and April 2011
      April 2011
      June 2008
    • Online & Offline Conversion
    • Apple Excels at Converting Product Consideration
      Online Purchase Funnel Fallout
      August 2011
      iPhone (n= 288K Engaged Shoppers)
      Fascinate (n= 21K Engaged Shoppers)
    • Looking Ahead
    • Near Term: Strong Demand for Sprint iPhone 4S
      CellPhone Owners Waiting For Specific Device
      Q3 2010, Q4 2010, Q1 2011, Q2 2011
      Q: Why is that you do not own a smartphone (a phone with advanced PC/email/Internet functionality)?
      Percentage answering “I am waiting for my wireless service provider to offer a specific smartphone”
    • Longer Term: Apple Dominance Will Slow
      Strengths
      Threats
      • Extending product lifecycles
      • Markets are still growing; Apple has small market share
      • Legacy of Steve Jobs
      • Law of large numbers
      • Fickle consumer tastes
      • New competitors (i.e Amazon)
    • Thank You.
      Christopher Collins
      Director, Technology and Entertainment
      ccollins@compete.com
      617.933.5641