Apple IPod’s Promotional & Positioning Strategies

Presented By:

Sandeep Mishra

Nishant Pandey

Smriti Sharma

Introduction to Apple IPod

• The iPod is a line of portable media players designed and marketed by Apple Inc.

• iPod® is the world’s most popular family of digital music players with over 220 million sold.

• The product was developed in less than one year and unveiled October 23, 2001

• There are four current versions of the iPod: the ultra-compact iPod Shuffle, the compact iPod Nano, the touch screen iPod Touch, and the hard drive-based iPod Classic.

• The iPod line came from Apple's "digital hub" category, when the company began creating software for the growing market of personal digital devices. 

Top Secret – “To maintain curiosity secret should not be reveal”

• “Hint: It’s Not Mac”

• MP3 Player was surprise announcement.

• Apple also kept the pricing strategy for iPod Confidential.

• Apple did not develop the iPod software entirely in-house, instead using PortalPlayer's reference platform based on two ARM cores

• Apple contracted another company, Pixo, to help design and implement the user interface under the direct supervision of Steve Jobs.

•  Apple continued to refine the software's look and feel.

Promotional Strategy iPod• The way they Surprise is the best part of their promotion

strategy.

• Speculation and curiosity.

• Impulse purchases due to shipping on launch date.

• Apple partnered with star hotels like “Dream” the Manhattan and The Crescent in guest rooms.

• Limited Edition iPods through Madonna, Tony Hawk , Beck & No doubt’s Brand logo.

• Co branding strategy with Nike a “Running culture” move.

Podcasting

What is a Podcast?

• It’s a free video and audio series

• Download from iTunes to iPod

• One click to subscribe

• Range of Podcasts

• Automatically downloads

Advertising & Style

The silhouettes are also usually holding iPods and listening to them with Apple's supplied earphones. These distinctively appear in white, so that they stand out against the colored background and black silhouettes.

• are backed by up-beat music

Apple have become somewhat of a pioneer in devising different approaches to location advertising.

The following series of images were taken from a Tube station in Toronto Canada.

Ipod Tube Advertising

The stairs have been painted blue with a black silhouette and the iPod and earphones are represented in the traditional white.

Positioning iPod

• Focused on the ‘Coolness’ aspect

• Hype & word of mouth publicity by look and design of the product.

• “The iPod is hip . It looks cool.”

• Buzz was the fact which made people to buy.

• Survey says “iPod user got attracted due to coolness factor”.

Study on product

• 12% of iPod users had purchased it for its good looks.

• 88% of iPod users used it because they liked the features than its good looks.

After 4 year study

• Coolness was no longer than a bigger Brand.

• For 15-24 quality and interface and familiarity with brand.

• For 25-34 Aesthetics and quality of interface.

• For 35-50 people bought iPod as they familiar with brand.

• “Whole widget” Strategy of Apple.

Primary reasons for Purchasing the iPod

Reasons Percentage

Quality of interface 22%

Familiarity with the brand 19%

Design Aesthetics 13%

Friend’s recommendation 12%

Social status 11%

Sound Quality 5%

Others 16%

Uncertain 2%

1st Release Dates

• iPod Classic: October 2001

• iPod Mini: January 2004

• iPod Shuffle: January 2005

• iPod Nano: September 2005

• iPod Touch: September 2007

Road ahead - iPod

Timeline

iPods = 28% of Apple’s 2008 Revenue

28%

27%17%

10%

7%6%

5% iPodPortablesDesktopsOther Music Related Products and ServicesSoftware, Service, and Other Net SalesiPhone and Related Products and ServicesPeripherals and Other Hardware

Thank You

IBS Mumbai