Description
It explains new product development, marketing mix, BCG analysis, SWOT analysis, problems faced by apple ipod.
APPLE I-POD
MARKETING MANAGEMENT 1
Semester 2, Term 1 Group – 4 , SECTION - A
Ashish Nahata Pranav Jaswal Adhiraj Choudhury Virendra Goliya Subham Ronghe
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
10927809 10927811 10927876 10927877 10927879
1
Agenda
The Journey
New Product Development Decision Process
Marketing Mix BCG Analysis SWOT Analysis Issues Recommendations
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
2
I-POD- The Walkman of the 21st Century
Apple I-Pad
2007 2005 Apple I-Pod Nano and Shuffle
2010
Apple TV and I-Phone
2001
Apple I-Pod launched (Classic) 1989 Enters the Walkman. 1978 1960’s Early affordable portable radios 1979 Sony enters the market with with personal tape player TC-D5 (costly)
50 million units sold
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
3
THEN
Sony Walkman
NOW
iPod Classic
iPod Shuffle
iPod Nano
iPod Video
iPod Touch
4
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
The New Product Development Decision Process
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
5
New-Product Development Decision Process (iPod)
• iPod originated with a business idea dreamed up by Tony Fadell, an independent inventor. • A portable device for downloading audio/video from the internet
Idea Generation
Screening
• Steve Jobs considered this idea after going through the idea of Tony Fadell which was earlier discarded by Microsoft.
Concept • A portable device for downloading audio/video from the internet along with a site with downloadable Development software and applications and Testing
Product Development
• Apple hired Fadell in early 2001 and assigned him a team of about 30 people, including designers, programmers and hardware engineers and announced the release of the iPod, their first portable music player on October 23, 2001. • To test that ipod will meet market expectations Apple conducted alpha testing ( within the company )
Market Testing
Commercializat • Ipod was launched in 23 October 2001 and from there on Apple introduced different models for different Customer segments and which helped them to become market leaders. ion
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
6
Production adoption process
Awareness The consumer becomes aware of the innovation but lacks information Interest The consumer is stimulated to seek information about the innovation.
Adoption The consumer decides to make full and regular use of the innovation.
Trial The consumer tries the innovation to improve his or her estimate of its value.
Evaluation
The consumer considers whether to try the innovation.
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
7
MARKETING MIX
THE 4 P’s
Product
Price
Place
Promotion
Own choice of music, book and literature Positioning Brand Image and loyalty Quality and Style
Television High pricepremium segment Fashion Statement
Direct DistributionStores
Indirect DistributionIntermediaries
Magazines Billboard Newspaper Tie-ups e.g subiksha, mobile store
Indication of the tremendous opportunity that this sector holds
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
8
Bringing I Pods to your home…
Word of mouth marketing Tie up with social causes
Institutional tie ups
Education discounts Stores on campuses Promotional offers Eg free music from iTunes,vouchers ,live performances at Apple stores
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
9
Tie ups with companies
Integration with Airlines ?Air France, Continental, Delta, Emirates, KLM and United to deliver the first seamless integration between iPod and in-flight entertainment systems (started in 2007)
APPLE
Integration with automobiles ?Tie ups with General Motors, Ford, Mazda. ?More than 70% of newmodels US automobiles will offer seamless integration with iPod
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
10
Tie ups with companies
Nike + iPod Sport Kit
APPLE
Collaboration with Hewlett Packard ?HP branded version of the iPod. ?HP pre-installing iTunes on its PCs
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
11
iPod Promotion
Integrated Marketing Communication Cool Factor + Design + Simplicity Power of a minimal message, where the images tell you the story of the product better than a thousand words
TV Commercials Dark coloured dancing silhouettes against neon coloured backdrops Choice of music: hip-hop, techno and garage rock Ads have featured famous bands/singers like U2, Eminem and Bob Dylan
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
12
iPod Promotion Contd....
Buzz Marketing Getting the product seen at the right places, in the right hands.
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
13
Retailing
? ? ? ?
Attractive well designed stores. 170 stores in different countries. Visited by 9m customers every month. Newest retail option: iPod vending machines!
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
14
Promotion through iTunes
I tunes arrive
• Brought Music stores to homes • Full compatibility with the iPod
Leverage Internet
• Banked on Internet Penetration • Leveraging on a strong online retail music store to drive iPod sales. • Does not offer any other advertisements, except the iPod, hence offering the iPod technology as a complement to the intangible web good.
Online Marketing
Combined the Player and Songs in a big way for the First Time ….
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
15
Modes of getting songs
Buying
Sharing
Transfer from PC
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
Radio
16
Competitors
“Zune”Microsoft
“Sansa” SanDisk
Toshiba “Zen” Creative “iriver” - Clix
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
17
Competitive Advantage
high
Offerings
low
Consumer Focus Design Innovation Price Manuf. “Cool” Capability Factor Engineering Ease of Use Prowess Market Share Ecosystem / Alliances
Factors of Competition
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
18
BCG Analysis
High Growth stage of market
High market share
•Apple iPod is currently in the growth stage, where more and more people are aware and purchasing the product. • High growth in sales and profit. •Highly competitive. •Opportunities for wider distribution.
Star stage
iPod has over 90% share of the market in the category of portable players and 70% in the category of all music players (Wikipedia)
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
19
Strengths and weakness
Appealing to both males and females • User-frendliness • Past products have had a good reputation • Advanced key technology • Product innovation skills
• High prices may push potential customers to competitors with affordable prices •The product has a narrow product line therefore unable to expand into other markets • Poor use of promotional strategy, as consumers were not properly introduced on the products significant use.
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
20
Opportunities and threats
Opportunities
Threats
Growing market trend
Tough laws being placed on internet MP3 downloads
Opportunity for fast market growth as parents may see this as an educational device as it is able to read books
Opportunities and Threats
Entry of imitators . Loads of low price mp3 Players
Leveraging on I-tunes- update with popular Indian music genres
Gray Markets (60-90% iPod Sales in India are in Gray Markets).
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
21
Issues
Iphone is similar to the iPod touch, but has the functionality of the cell phone. This decreased the sale of iPod Touch drastically IPod burning out when kept for charge, 2007
Product carnivore A P P L E
Issues with blogs
IPod goes into sleep mode once the battery is low. It cannot be started again and remains always in the sleep mode . (2001)
Some consumers believe that the quality offered by Apple is equal to the quality of the other MP3 players but at a higher cost.
Software problems
Cost
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
22
APPLE's Wish…
Internet Penetration in Countries. China around 9% and India around 7 %
Non-Existence of Gray Markets .
Develop an admirable/exceptional goodwill that can have monetary value in future
Awareness- Online payment through credit cards.
What’s the “PANACEA”
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
23
Recommendations
iPod should create advertisements for all age groups.
Social Networking iPod should hold events, competitions, fairs, etc for its iPod community members, where the consumers can meet and share their likes and dislikes. Recommendations Product differentiation is a key factor iPod should have for all the products. iPod is well differentiated from its competitors, but the differentiation amongst different iPods is a little vague.
Develop direct purchase of songs using their iPod. This way, people who are not techno savvy or don’t have a computer can still purchase an iPod to listen to music.
Increasing brand visibility ,preventing product cannibalization and innovation is the key
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
24
References
•Official websites of Apple, Sony, Microsoft •Computer Industry Almanac –Press releases •Apple, “Invester Relations” http://phx.corporate-ir.net/phoenix.zhtml?c=107357&p=irol-faq#corpinfo2 •Apple Defects http://www.appledefects.com/?cat=7 •Cnet News, “Who’s buying iPods?” , http://news.cnet.com/Whos-buyingiPods/2100-1041_3-5577396.html?tag=st.rc.targ_mb •D’Souza S, “An Old Lesson on Target Audience… the iPod Way”, http://www.marketingprofs.com/5/dsouza40.asp •Metroxing, ”The Success of iPod is not because of Marketing”, http://homepage.mac.com/metroxing/iblog/B1641024610/C1851367553/E4100084 64/index.html
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
25
doc_333974658.pdf
It explains new product development, marketing mix, BCG analysis, SWOT analysis, problems faced by apple ipod.
APPLE I-POD
MARKETING MANAGEMENT 1
Semester 2, Term 1 Group – 4 , SECTION - A
Ashish Nahata Pranav Jaswal Adhiraj Choudhury Virendra Goliya Subham Ronghe
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
10927809 10927811 10927876 10927877 10927879
1
Agenda
The Journey
New Product Development Decision Process
Marketing Mix BCG Analysis SWOT Analysis Issues Recommendations
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
2
I-POD- The Walkman of the 21st Century
Apple I-Pad
2007 2005 Apple I-Pod Nano and Shuffle
2010
Apple TV and I-Phone
2001
Apple I-Pod launched (Classic) 1989 Enters the Walkman. 1978 1960’s Early affordable portable radios 1979 Sony enters the market with with personal tape player TC-D5 (costly)
50 million units sold
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
3
THEN
Sony Walkman
NOW
iPod Classic
iPod Shuffle
iPod Nano
iPod Video
iPod Touch
4
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
The New Product Development Decision Process
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
5
New-Product Development Decision Process (iPod)
• iPod originated with a business idea dreamed up by Tony Fadell, an independent inventor. • A portable device for downloading audio/video from the internet
Idea Generation
Screening
• Steve Jobs considered this idea after going through the idea of Tony Fadell which was earlier discarded by Microsoft.
Concept • A portable device for downloading audio/video from the internet along with a site with downloadable Development software and applications and Testing
Product Development
• Apple hired Fadell in early 2001 and assigned him a team of about 30 people, including designers, programmers and hardware engineers and announced the release of the iPod, their first portable music player on October 23, 2001. • To test that ipod will meet market expectations Apple conducted alpha testing ( within the company )
Market Testing
Commercializat • Ipod was launched in 23 October 2001 and from there on Apple introduced different models for different Customer segments and which helped them to become market leaders. ion
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
6
Production adoption process
Awareness The consumer becomes aware of the innovation but lacks information Interest The consumer is stimulated to seek information about the innovation.
Adoption The consumer decides to make full and regular use of the innovation.
Trial The consumer tries the innovation to improve his or her estimate of its value.
Evaluation
The consumer considers whether to try the innovation.
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
7
MARKETING MIX
THE 4 P’s
Product
Price
Place
Promotion
Own choice of music, book and literature Positioning Brand Image and loyalty Quality and Style
Television High pricepremium segment Fashion Statement
Direct DistributionStores
Indirect DistributionIntermediaries
Magazines Billboard Newspaper Tie-ups e.g subiksha, mobile store
Indication of the tremendous opportunity that this sector holds
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
8
Bringing I Pods to your home…
Word of mouth marketing Tie up with social causes
Institutional tie ups
Education discounts Stores on campuses Promotional offers Eg free music from iTunes,vouchers ,live performances at Apple stores
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
9
Tie ups with companies
Integration with Airlines ?Air France, Continental, Delta, Emirates, KLM and United to deliver the first seamless integration between iPod and in-flight entertainment systems (started in 2007)
APPLE
Integration with automobiles ?Tie ups with General Motors, Ford, Mazda. ?More than 70% of newmodels US automobiles will offer seamless integration with iPod
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
10
Tie ups with companies
Nike + iPod Sport Kit
APPLE
Collaboration with Hewlett Packard ?HP branded version of the iPod. ?HP pre-installing iTunes on its PCs
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
11
iPod Promotion
Integrated Marketing Communication Cool Factor + Design + Simplicity Power of a minimal message, where the images tell you the story of the product better than a thousand words
TV Commercials Dark coloured dancing silhouettes against neon coloured backdrops Choice of music: hip-hop, techno and garage rock Ads have featured famous bands/singers like U2, Eminem and Bob Dylan
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
12
iPod Promotion Contd....
Buzz Marketing Getting the product seen at the right places, in the right hands.
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
13
Retailing
? ? ? ?
Attractive well designed stores. 170 stores in different countries. Visited by 9m customers every month. Newest retail option: iPod vending machines!
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
14
Promotion through iTunes
I tunes arrive
• Brought Music stores to homes • Full compatibility with the iPod
Leverage Internet
• Banked on Internet Penetration • Leveraging on a strong online retail music store to drive iPod sales. • Does not offer any other advertisements, except the iPod, hence offering the iPod technology as a complement to the intangible web good.
Online Marketing
Combined the Player and Songs in a big way for the First Time ….
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
15
Modes of getting songs
Buying
Sharing
Transfer from PC
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
Radio
16
Competitors
“Zune”Microsoft
“Sansa” SanDisk
Toshiba “Zen” Creative “iriver” - Clix
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
17
Competitive Advantage
high
Offerings
low
Consumer Focus Design Innovation Price Manuf. “Cool” Capability Factor Engineering Ease of Use Prowess Market Share Ecosystem / Alliances
Factors of Competition
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
18
BCG Analysis
High Growth stage of market
High market share
•Apple iPod is currently in the growth stage, where more and more people are aware and purchasing the product. • High growth in sales and profit. •Highly competitive. •Opportunities for wider distribution.
Star stage
iPod has over 90% share of the market in the category of portable players and 70% in the category of all music players (Wikipedia)
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
19
Strengths and weakness
Appealing to both males and females • User-frendliness • Past products have had a good reputation • Advanced key technology • Product innovation skills
• High prices may push potential customers to competitors with affordable prices •The product has a narrow product line therefore unable to expand into other markets • Poor use of promotional strategy, as consumers were not properly introduced on the products significant use.
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
20
Opportunities and threats
Opportunities
Threats
Growing market trend
Tough laws being placed on internet MP3 downloads
Opportunity for fast market growth as parents may see this as an educational device as it is able to read books
Opportunities and Threats
Entry of imitators . Loads of low price mp3 Players
Leveraging on I-tunes- update with popular Indian music genres
Gray Markets (60-90% iPod Sales in India are in Gray Markets).
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
21
Issues
Iphone is similar to the iPod touch, but has the functionality of the cell phone. This decreased the sale of iPod Touch drastically IPod burning out when kept for charge, 2007
Product carnivore A P P L E
Issues with blogs
IPod goes into sleep mode once the battery is low. It cannot be started again and remains always in the sleep mode . (2001)
Some consumers believe that the quality offered by Apple is equal to the quality of the other MP3 players but at a higher cost.
Software problems
Cost
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
22
APPLE's Wish…
Internet Penetration in Countries. China around 9% and India around 7 %
Non-Existence of Gray Markets .
Develop an admirable/exceptional goodwill that can have monetary value in future
Awareness- Online payment through credit cards.
What’s the “PANACEA”
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
23
Recommendations
iPod should create advertisements for all age groups.
Social Networking iPod should hold events, competitions, fairs, etc for its iPod community members, where the consumers can meet and share their likes and dislikes. Recommendations Product differentiation is a key factor iPod should have for all the products. iPod is well differentiated from its competitors, but the differentiation amongst different iPods is a little vague.
Develop direct purchase of songs using their iPod. This way, people who are not techno savvy or don’t have a computer can still purchase an iPod to listen to music.
Increasing brand visibility ,preventing product cannibalization and innovation is the key
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
24
References
•Official websites of Apple, Sony, Microsoft •Computer Industry Almanac –Press releases •Apple, “Invester Relations” http://phx.corporate-ir.net/phoenix.zhtml?c=107357&p=irol-faq#corpinfo2 •Apple Defects http://www.appledefects.com/?cat=7 •Cnet News, “Who’s buying iPods?” , http://news.cnet.com/Whos-buyingiPods/2100-1041_3-5577396.html?tag=st.rc.targ_mb •D’Souza S, “An Old Lesson on Target Audience… the iPod Way”, http://www.marketingprofs.com/5/dsouza40.asp •Metroxing, ”The Success of iPod is not because of Marketing”, http://homepage.mac.com/metroxing/iblog/B1641024610/C1851367553/E4100084 64/index.html
Shailesh J. Mehta School of Management
Batch of 2012, Section – A
25
doc_333974658.pdf