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Bm Case Study Apple I Pod


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Bm Case Study Apple I Pod

  1. 1. Product: Portable Music Player Brand(corporate): Brand(family): ipod Presented by: Radhika Sukhani Anjali Sharma(NA) Ashutosh Nautial(NA) iPod: Creating and Iconic Brand
  2. 2. How evolved 1976 Apple was found 1977 The Apple II microcomputer was introduced 1983 Apple employ a graphical user interface 1984 Macintosh was introduced 2001 iPod was introduced. 2005 iPod Nano was introduced 2006 iPod Nano (2nd Generation) was introduced. 2007 iphone was introduced
  3. 3. Digging roots: iPod iPod itunes Consumers for iPod: Initial TG for digi music: Other mP3 players computer users+ users with passion for music iPhoto + iMovie WOM marketing: Mac users FireWire first spread the word! Winamp + real player iPod targeted people who were tired of the complicated Pressplay mp3 players and awaited simplicity. P2P Napster: digi music introduced
  4. 4. the public’s perception
  5. 5. Problems with other PMP’s Storage capacity & Portability Complexity of design & usage and Battery life Communication and distribution Quick
  6. 6. Understanding brand image of iPods Before iPods there were Mp3 players!!
  7. 7. ipod everywhere:
  8. 8. Lovemark’s Love/Respect Axis Respect – Performance, Trust, Reputation Brands – Low Lovemarks – High Love, High Love, High respect Respect Love – Mystery, Sensuality, Intimacy Products – Low Fads – High Love, Love, Low Low Respect Respect
  9. 9. Performance Features – Mckinsey Quarterly 2003, Vol #4
  10. 10. TOM: Consumer Survey •clean •good-looking • reliable •freedom •cool •status •“it makes you happy”, •“typical Sony product”, “classic Apple product”, •user-friendly • neat •“an image thing” •“the iPod” not something like “Apple’s new mp3- player”.
  11. 11. Sub-Dimensions of CBBE Pyramid Resonance marked the RESONANCE: Brand quality LOYALTY journey for ipod each – Value↑ ATTACHMENT parameter was rated – Satisfaction↑ COMMUNITY high ENGAGEMENT Brand credibility – Expertise FEELINGS: – Trustworthiness ↑ WARMTH – Likability JUDGEMENT: FUN QUALITY EXCITEMENT Mainly for: Brand consideration CREDIBILITY Fun & excitement SECURITY – Relevance↑ CONSIDERATION SOCIAL Social approval & SUPERIORITY respect Brand superiority APPROVAL – Differentiation↑ SELF-RESPECT PERFORMANCE: PRIMARY IMAGERY:USER CHARACTERISTICS & PROFILES Clearly defined TG + SECONDARY FEATURES attached Promotions Great design + style + PURCHASE & USAGE PRODUCT RELIABILITY, Well defined Price range+ product SITUATIONS DURABILITY & distribution channel reliability n features PERSONALITY & SERVICEABILITY Created the iPod gang SERVICE EFFECTIVENESS, VALUES EFFICIENCY, & EMPATHY HISTORY, HERITAGE, & EXPERIENCES Breadth:↑Purch+ STYLE AND DESIGN Consumption PRICE consideration Depth:↑recognition + SALIENCE:CATEGORY recall+ identification for IDENTIFICATION catagory of membership NEEDS SATISFIED
  12. 12. Business model: Razor Model Compatible ipods with ipod itunes windows accessories OS itms ipods + ipods
  13. 13. iPod as a cultural artifact
  14. 14. 1 stst Generation 1 Generation Launch – November 10, 2001 Priced at $399 5 Gb Gigabyte “IDIOTS PRICED OUR DEVICE” Not compatible with Windows No MP3, infact AAC format was used Advertisement – “1000 songs in your pocket” IT WAS A SUCCESS BUT NOT A SENSATION
  15. 15. 2nd Generation • Launched in July 2002 • Bigger Storage Capacity [10Gb & 20 Gb] • Lesser in Price • Mechanical Scroll Wheel Replaced • Heavier due to casing Announced it Windows Compatible Version
  16. 16. FACTS • Sold 381,000 Units in FY 2002 ($143 million revenue) • Won Gold Medal from Business Week Industrial Design Excellence Award 2002 • Won Gold Medal from Art Design awards in UK
  17. 17. 33rdGeneration rd Generation What made it a big hit ? • 40 Gb Hard disk • Slightly smaller in size • Had more distinct beveled edges • Came with a docking station • Had a touch sensation button with RED BACKLIGHT • Purchasing online from Apple store offered to engrave 2 lines of laser text on the back of IPOD
  18. 18. ITMS ( I tunes music store ) 1. Allowed user to own music 2. Allowed Portability 3. ITMS – the 1st legal digital music store to offer music from all 5 majors record labels. It offered 2 lac songs library Featured rules for downloading & copying (They were uniform across all available songs)
  19. 19. FACTS • Enabled to download 1 song for 99 cents • Entire Album for $9.99 • In the 1st week – 1 million songs sold • After 16 days - 2 million • By early September - 10 million
  20. 20. Market players Sony San disc: affordable price and huge capacity Microsoft ‘Zune’: New Competitor Samsung: compactness and Wireless Feature & music store durability service Creative Iriver: Innovative design and low price
  21. 21. Value curve: Competition outlook high Offerings low Consumer Price Manuf. “Cool” Market Focus Capability Factor Share Design Engineering Ease of Use Ecosystem Innovation Prowess / Alliances Factors of Competition
  22. 22. 1 . iPod = The simplicity of 4 . “DESIGN” 2 . (not only its look & feel but its functioning) 3 .
  23. 23. Customer  Get used to using electronic devices  Widespread using of handheld Emotional Consumption devices such as PMP  Design as a primary Technology purchasing decision Value Friendly Consumption factor  Price-performance Trends sensitivity Friendly  Value = Benefit/Cost  Apt to not being fallen behind to the trend
  24. 24. Schema: Consumers Consumer characteristics: •Conscious, “…they are into cool high interesting things performance •“… have a stronger relation to expensive their ipod [than do Mp3 players]” Status symbol •Clubkid iPod portable •DJ • designers cute • architect User friendly • aesthetic person Must have •“Know what’s going on” • “Music-interested people” •urban people
  25. 25. STP: Skeptics Conservatives Pragmatists Visionaries Technology Enthusiasts 10 20 30 40 Age 1000 songs in your pocket! “iPod is a fashion of young age.”
  26. 26. Marketing Mix: Product iPod Classic
  27. 27. Marketing Mix: Product & Price iPod Shuffle
  28. 28. Marketing Mix: Product & Price iPod Nano
  29. 29. Marketing Mix: Product & Price iTouch
  30. 30. Marketing Mix:
  31. 31. Marketing Mix: Promotion Show up everywhere!!!
  32. 32. Other initiatives - Marketing Mix Promotion Secret Marketing Conceal news of new product ? as long as they can hold. ? Maximize mystique of the new product. Strict guideline of ‘Information leak’ by the internal employee. Experience Marketing : Touch, Feel, and Purchase The Apple Store is the best place to learn everything there is to know about the iPod.
  33. 33. Marketing Mix: Place website AppleStore retailers Other innovative distribution scheme(s) •Partnership with radio shak which had 7000 outlets. •At airports •Duke university: distribution of free iPods and eventually at subsidized prices.
  34. 34. Accessorize!!!
  35. 35. Accessorize….!!!
  36. 36. Co- Branding initiatives
  37. 37. Innovation in iPod : iBreath
  38. 38. Sandisc: The Envious competitor!
  39. 39. Reasons for iPod boom •iPod became first to use compress technology •iPod was first commercial brand to market portable MP3 successfully. •The capacity to store thousands of songs. •Many celebrities liked it •Cool and sleek design •Click wheel concept (Menu selection) •Good interface software - itune •Simple to use •Product came from Apple, known for cool gadgets. •got rid of CD player, all music in one place. •Ability to keep Music,Photos, Movies and Games at one place. •massive advertising done for this product. •People’s support for device
  40. 40. Thank you!!!