iFeel “ The most advanced technology ever to be introduced in an iPod” Greg Pfeil Victoria Druckman

Market Research Constructed and conducted a survey regarding consumer interest in the iFeel “ We ’ re thrilled to report our best quarter ever, with the highest revenue and earnings in Apple ’ s history, ” said Steve Jobs, Apple ’ s CEO regarding First Quarter sales 22,121,000 iPods during the quarter, representing five percent unit growth and 17 percent revenue growth over the year-ago quarter Steve Jobs: "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters." with regard to Second Quarter $7.51bn revenues (up 43%) and profits of $1.05bn (up 36%) - compared to $5.26bn and $770m the year-ago quarter iPod sales grew to 10.64m; 1% units, 6% revenues share of the US MP3 market 71%

Constructed and conducted a survey regarding consumer interest in the iFeel

“ We ’ re thrilled to report our best quarter ever, with the highest revenue and earnings in Apple ’ s history, ” said Steve Jobs, Apple ’ s CEO regarding First Quarter sales

22,121,000 iPods during the quarter, representing five percent unit growth and 17 percent revenue growth over the year-ago quarter

Steve Jobs: "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters." with regard to Second Quarter

$7.51bn revenues (up 43%) and profits of $1.05bn (up 36%) - compared to $5.26bn and $770m the year-ago quarter

iPod sales grew to 10.64m; 1% units, 6% revenues

share of the US MP3 market 71%

Competitive Analysis Major Competitors Dell Inc. Microsoft Corporation- Zune Sony Samsung Strategies of competitors Few advertisements Focus on product attributes Nothing exciting or eye catching

Major Competitors

Dell Inc.

Microsoft Corporation- Zune

Sony

Samsung

Strategies of competitors

Few advertisements

Focus on product attributes

Nothing exciting or eye catching

Company Analysis User friendly products to enhance the lives of consumers Strong relationship with consumers Brand loyalty & positive brand relationship with public

User friendly products to enhance the lives of consumers

Strong relationship with consumers

Brand loyalty & positive brand relationship with public

Opportunity Analysis Competition targets same group Microsoft’s Zune Heavily saturated markets Mp3 market Music Market Video Market Software Market Computer Market Benefits of product User- friendly, durability, Apple care, new technology Different marketing approaches Fitness Approach Wellness Trend

Competition targets same group

Microsoft’s Zune

Heavily saturated markets

Mp3 market

Music Market

Video Market

Software Market

Computer Market

Benefits of product

User- friendly, durability, Apple care, new technology

Different marketing approaches

Fitness Approach

Wellness Trend

Target Market Analysis Target Market: current iPod owners and consumers between the age of 18-35 Message to target market User-friendly and hassle free Will not be confused when making own playlists Appeal: iFeel “feels” what you are feeling and adjusts accordingly What is not being met by competitors? Technology Reliability & trust of brand

Target Market: current iPod owners and consumers between the age of 18-35

Message to target market

User-friendly and hassle free

Will not be confused when making own playlists

Appeal:

iFeel “feels” what you are feeling and adjusts accordingly

What is not being met by competitors?

Technology

Reliability & trust of brand

Consumer Analysis Current Customers Brand loyal Own other apple products Suspect or prospect customers Athletes Health and wellness advocates

Current Customers

Brand loyal

Own other apple products

Suspect or prospect customers

Athletes

Health and wellness advocates

Objectives Generate awareness 71%  73% increase in Share of Market Goal Inform public of new product Explanation of why it is essential to update mp3 Create desire to update current mp3

Generate awareness

71%  73% increase in Share of Market

Goal

Inform public of new product

Explanation of why it is essential to update mp3

Create desire to update current mp3

Strengths Easy to reach, dedicated consumer base Simple and user friendly Innovative technology, unmatched by any competitor Strong brand image and existing brand name New Genius application for iTunes complements idea of selecting music to match user preferences Technological boom has left consumers with a desire to be the most up-to-date

Easy to reach, dedicated consumer base

Simple and user friendly

Innovative technology, unmatched by any competitor

Strong brand image and existing brand name

New Genius application for iTunes complements idea of selecting music to match user preferences

Technological boom has left consumers with a desire to be the most up-to-date

Weaknesses Current economic state (lowest consumer spending in 25 years) Brand viewed as higher quality- all might not feel is accessible Apple’s constant introduction of new ipod models may result in hesitance to invest in this product Product learning curve, some may view as too time consuming

Current economic state (lowest consumer spending in 25 years)

Brand viewed as higher quality- all might not feel is accessible

Apple’s constant introduction of new ipod models may result in hesitance to invest in this product

Product learning curve, some may view as too time consuming

Opportunities Advanced technology never existed in a similar product Core competency advantage Considered a reliable and trustworthy brand, consumer confidence (strong positioning) Conquering a new segment of the market

Advanced technology never existed in a similar product

Core competency advantage

Considered a reliable and trustworthy brand, consumer confidence (strong positioning)

Conquering a new segment of the market

Threats Weak economy Consumer resistance Competitors offering similar models of the product Cheaper knock-offs Intimidation by technology Disinterest in understanding how the product works

Weak economy

Consumer resistance

Competitors offering similar models of the product

Cheaper knock-offs

Intimidation by technology

Disinterest in understanding how the product works

Positioning Analysis “ Next best thing in technology” Technologically advanced but still user-friendly iPod to the next level Caters to the consumer’s needs Different beyond technology

“ Next best thing in technology”

Technologically advanced but still user-friendly

iPod to the next level

Caters to the consumer’s needs

Different beyond technology

Product Sleek design, mimics iTouch and iPhone Unmatched technology from competitors Encased in plastic box Includes headphones, Apple decals, one-year warranty, user’s manual, in-store tutorial voucher

Sleek design, mimics iTouch and iPhone

Unmatched technology from competitors

Encased in plastic box

Includes headphones, Apple decals, one-year warranty, user’s manual, in-store tutorial voucher

Pricing Tiered pricing levels Cost-plus strategy Competitive pricing Retailers have opportunity to modify- margin of difference absorbed by retailer

Tiered pricing levels

Cost-plus strategy

Competitive pricing

Retailers have opportunity to modify- margin of difference absorbed by retailer

Place Displayed on Apple website Available for in-store purchase or at select retailers

Displayed on Apple website

Available for in-store purchase or at select retailers

Promotion Strategy Personal selling: Educated employees Sales promotion: in-store tutorial Advertising: Internet, television, viral, print and outdoor media Public Relations: Product placement, press release

Personal selling: Educated employees

Sales promotion: in-store tutorial

Advertising: Internet, television, viral, print and outdoor media

Public Relations: Product placement, press release

Specific Action Program iTunes store introduction Marketing slogan to generate consumer interests “ The most advanced technology ever to be introduced in an iPod”

iTunes store introduction

Marketing slogan to generate consumer interests

“ The most advanced technology ever to be introduced in an iPod”

Budget Tiered pricing: 8G $299, 16G $399

Tiered pricing: 8G $299, 16G $399

Controls and Measures Measure share of market from 2008 compared to 2009 with iFeel Surveys regarding customer satisfaction From tutorial and general product Modify marketing plan based on consumer response

Measure share of market from 2008 compared to 2009 with iFeel

Surveys regarding customer satisfaction

From tutorial and general product

Modify marketing plan based on consumer response

Conclusion