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    1. 1. Apple Innovation Group <ul><li>Dorota Mishra </li></ul><ul><li>Leo Olan </li></ul><ul><li>Andrea Milovansky </li></ul><ul><li>Nick Uzzilia </li></ul><ul><li>Muhammad Bhatti </li></ul>
    2. 2. Apple’s Mission Statement “… Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings ”
    3. 3. ? Computers Software iPod/iTunes Apple’s BCG Matrix
    4. 4. Apple’s Evolution
    5. 5. Introducing the Apple iRead
    6. 6. Apple iRead (open view)
    7. 7. <ul><li>Memory: </li></ul><ul><li>2GB of Flash memory </li></ul><ul><li>Battery: </li></ul><ul><li>Rechargeable, Lithium Ion </li></ul><ul><li>Dimensions: </li></ul><ul><li>6 x 8 x 1.1 inches </li></ul><ul><li>Weight: </li></ul><ul><li>7.5 ounces </li></ul>8 inches 6 in. 0.5 in
    8. 8. Apple iRead <ul><li>Holds 500 books with full-color illustrations & cover art </li></ul><ul><li>Stores 1,000 note pages & 250 bookmarks </li></ul><ul><li>Plays embedded video clips and sound bites </li></ul><ul><li>Built in Merriam-Webster </li></ul><ul><li>Compatible with most iPod accessories </li></ul>
    9. 9. Product Positioning Advanced Feature Set: (i.e: search, multimedia, rich capabilities) Outdated Features Closeness to Book Form (i.e: intuitive, portable) Inconvenient Form Factor for Reading iRead Laptops Tablet PCs PDA Traditional Book
    10. 10. iPages eBook Store <ul><li>500,000 different book titles </li></ul><ul><li>12 categories of books </li></ul><ul><li>Books available in 22 languages </li></ul><ul><li>Competitive pricing </li></ul><ul><li>Easy search and download </li></ul>
    11. 11. Marketing Objectives <ul><li>To generate significant sales in order to cover up R&D costs </li></ul><ul><li>To rapidly gain market share and lock-out potential competitors </li></ul>
    12. 12. Segmentation Characteristics <ul><li>Belongs to Generation X or Y </li></ul><ul><li>Well-educated </li></ul><ul><li>Sufficient disposable income </li></ul><ul><li>Early adopter </li></ul><ul><li>Follows “think different” attitude portrayed in Apple’s brand and products </li></ul>
    13. 13. Potential Target Markets <ul><li>Students (in schools and colleges) </li></ul><ul><li>Early tech adopters </li></ul><ul><li>“ Cult of Mac” </li></ul><ul><li>Bookworms </li></ul>
    14. 14. Marketing Strategy <ul><li>Mass-market penetration strategy </li></ul><ul><li>Barriers for competitors </li></ul><ul><ul><li>Our cost will be lower by the time new entrants arrive </li></ul></ul><ul><ul><li>Extra profit will go into further promotions </li></ul></ul><ul><li>Apple’s strengths </li></ul><ul><ul><li>Strong financial resources </li></ul></ul><ul><ul><li>Incomparable engineering capabilities </li></ul></ul><ul><ul><li>Vast reach in promotional channels </li></ul></ul>
    15. 15. Promotion <ul><li>Buzz Effect </li></ul><ul><li>Print advertising </li></ul><ul><li>Television </li></ul><ul><li>Free iPage samples upon purchase </li></ul>
    16. 16. Distribution <ul><li>Apple Company Stores </li></ul><ul><li>Apple Web Site </li></ul><ul><li>Large tech retailers (i.e. Circuit City) </li></ul>
    17. 17. Competitive Advantages <ul><li>First mover advantage </li></ul><ul><li>Apple’s unique brand image </li></ul><ul><li>Creating synergies with other Apple products </li></ul><ul><li>iPages locks users in to Apple’s format </li></ul>
    18. 18. Questions & Concerns <ul><li>Piracy concerns </li></ul><ul><li>Publishers may resist change </li></ul><ul><li>Any Additional Questions? </li></ul>

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