case on ipod-3

7/31/2019 Case on iPod-3

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Parts division 1-6 pritesh

7-11 rohit

12-16 omkar 17-21 marvel

22-27 krupa

28-32 siddhi


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IPOD:CREATING AN ICONIC BRAND

GROUP - 3


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INTRODUCTION

The iPod portable digital music player had become a truecultural and social phenomenon .

Ubiquitous design icon and an indispensable piece

Apple sold 14.1 million iPods

78% market share for portable digital music players .

Market domination product innovation and clever marketing

iPod sales to skyrocket


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Apple would have to stay a step ahead of competitorsif it wanted the iPod to remain the industry standard .


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Apples History Founded by Steve Jobs and Steve Wozniak .

Apple II was introduced in 1977

1980 - Apple went public with 4.6mn shares, largest offeringever since FORD Motor in 1956.

1984- Macintosh introduced, Apple II abandoned in favor of

the Mac product line

1990-Market share fell to 10 % in 1990down from 28%in . New chips allowed Mac to compete .

1996 -Worst financial performance , loss of $68 million .


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Apples entry into digital music

world Apple was more focused on transfer of files between

peripheral devices, for which Fire Wire was launched.

Realizing the potential market of easy-to-use digital music

service Apple unveiled iTunes in 2001.

iTunes helped to manage and play music files on computer.

Later on in 2003, an online music store was started which has

downloadable iTunes compatible music.


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Launching the iPod

Apple employed hardware and software engineers allowingproducts to be developed inhouse

The concept of the iPod came from Tony Fadell, an engineer

outside the companyDevelopment started in 2001 under the code name Dulcimer.

Intent to make it as simple to use as possible

Instead of using a flash drive, Apple decided to use a Hard disk

Unit developed was encased in a plastic front and silver metal

back, and a small screen to display song information.

The most striking feature was the MECHANICAL SCROLLWHEEL.


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iTMS Points of Difference Apple gave PERMANENT OWNERSHIP of songs unlike

many other subscription services.

Enabled PORTABILITY through Digital Rights Management

(DMA).

iTMS allowed easy downloading of purchased music to

iPod.

iTMS was the FIRST LEGAL DIGITAL MUSIC STORE to offermusic.

Centralized and USER FRIENDLY store for purchasing wide

range of music.


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The Economics of iPod Apple turned the RazorModel followed by Gillette upside down.

Though the iTMS had a huge growth potential the actual marginsgained by Apple on it were very slim.

For every song sold through iTMS the returns ranged from a loss of$0.01 to profits of $0.04.

On the other hand Apple made a profit of $26 on each unit of iPodsold; sold 15 million units as of June,2005

Profits gained from iPod and iTunes helped increase the stock price of

Apple and helped it come out of the slump from 2000. Since the format available was AAC which could be only on an iPod it

was essential for people to buy one.


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Continued Product Innovation Apple sought to increase its market position by developing a portfolio

of iPod music players

Number of competitors trying to mimic the iPod's design and

functionality In Jan. 2004, the IPod Mini introduced; 4 GB storage and priced at $249

Focus was more on mini iPods with more vibrant colors

4th generation iPod released in July 2004. The model had more storagespace and longer battery life.

October 2004 that year the iPod Photo was released, available in 40GB($499) and 60 GB($599)

Collaboration with UK rock band U2


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Introduction of Flash memory The iPod Shuffle was introduced in Jan 2005

Flash memory was used for the first time in iPods and camein 2 sizes 512 MB and 1 GB

iPod Shuffle weighed less than a pound and was the size ofa chewing gum

No screen, limited options while navigating between songs

The popularity of the Shuffle was so much that Toshiba-themakers of the flash drive-had trouble in meeting thedemands


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Silhouettes Everywhere iPod line continued to expand.

New series of iPod ads launched in April 2003, with launchof iTMS.

In October new theme reinforces iPods status a designicon.

Ads featured actor as black silhouettes against solid colorbackground, dancing while listening to their iPods.

Ad featured U2 commemorating launch of iPod U2 specialedition.


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Ubiquitous iPod Hollywood celebrities embraced the product.

Appeared on Saturday Night Live in a video by

rapper 50 Cent. Featured on Oprah Winfreys list of her favorite

things.

Events like iPod nights and iParties held in nightclubs.

iPod earphones became 2nd most iconic imageassociated with iPod


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iPod Economy People bought third party accessories to add to

products utility. Voice recording modules.

Navi pod an infrared remote control by Ten Tech. FM tuner called the iTrip.

iPod cases made from faux fur, feathers, etc..

Creation of a large and growing aftermarket industry was

referred to as iPod Economy.

Launch of BMW iPod adapter in June 2004.


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Expansion Strategy of Distribution

Channels Apple criticized for trying too exert too much control over

retail experience.

Analysts concluded that Apples sales diminished due to

few retail locations.

September 2002: Apple announces sale of iPod in 500 BestBuy Stores across the country.

Formed partnership with Radio Shack in 2005 which had

7000 outlets.

iPods offered with other electronic gadgets.

Halo effect improved Brand Awareness and increased Sales.


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Innovative uses of iPod Duke University:

Gave free iPods to every member of class of 2008.

Notion: Intensify use of IT to enhance teaching andlearning

Podcasting:

Broadcasting + iPod.

Process of creating audio content and sharing it on theinternet, downloading radio content.

After 2 days: 1 million Podcasts subscriptions

After 2 months: Over 6000 free Podcasts availiable.


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The next iPod Killer Sales of mp3 doubled in 2004.

iPod design could be easily replicated.

Competitors such as Gateway, RCA, Panasonic, Dellcopied the pattern of the iPod and incorporatedadditional features.

Cell Phone estimated to be the next iPod killer.

Apple developed iTunes enabled phone with Motorolacalled ROKR in 2005 September.

Low popularity of ROKR due to limited storagecapacity and slower download speed.


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Conti May 2006: Would be killer San disk attempts to

deposition Apple.

Released various ads depicting iPod users as mindlesstrend chasers or iSheep.

This propelled San Disk to number 2 rank for digitalmusic players in the U.S.

Microsoft created Zune: a combination of portablemedia player and download store which would be Wi-Fi enabled.


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Branding strategy of Apple

Positioning : outsider, rebel , underdog

Focussed on emotions : liberty, passions, hopes,dreams,

aspirations

Communicated power-to-people through technology.

Emotional branding

Customer experience top most priority

Brand touch-points reinforce the Apple brand


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Apple brand values Simplicity

Ease of use : as easy as brushing

your teeth User focussed

Fun and humour

Memorable and different Innovative

Personalisation

Coherency.


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APPLE BRANDING COMMUNITY No distinction between iPod and Mac in terms of

lifestyle, concept or users- its all Apple

3 makers of brand community

Consciousness of kind : change in behavioural pattern,differentiate themselves

Rituals and traditions: celebrate history of brand, sharebrand stories, share consumption experiences. E.g.iParties, sharing pictures online

Moral responsibility: assist others in use of brand


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Apple iPod

POPS PODS

Portability

Mp3 player

Disc storage Windows compatibility

along with Mac

Design and simplicity

Signature ear phones

Scroll wheel Innovation and re-

innovation

iTunes + iPod

Communityengagement iParties

Status symbol


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COMPETITION

Other MP3 players

Apple positioning: iPod and not Apples new MP3player

Differentiated on price, performance and design

Intangibles associated with iPod cannot be copied.


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Most important feature of iPod Design components

Unashamed sense of simplicity

Most striking feature- mechanical scroll

White ear phones and white chords- second brandidentity element.

The package of iTMS + iPod.


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Need for continuous innovation Video games File storage and transfer Wi-Fi

Multi Touch Bluetooth Nike+iPod Sports Kit Tie ups with cell phone makers Bigger memories Longer running batteries Smaller size Stick to simplicity model


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ANALYSIS

Emotional benefits that really differentiate Apple fromcompetitors in the marketplace. Apple takes part inextremely technology-driven product categories where

computer capacity doubles every 18 months

Apple site themselves as a tool for creative people to

break through and change the world


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ContApple has a reputation for its capability of innovation,

product uniqueness, and being able to think outsideof the box.

products cut through the clutter of consumerelectronics.

Besides satisfying the basic functional need of

listening to portable music the iPod also representssomething more; it provides unique value in the formof certain emotional benefits


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case on ipod-3

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