Bm Case Study Apple I Pod
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Transcript of Bm Case Study Apple I Pod
Product: Portable
Music Player
Brand(corporate):
Brand(family): ipod
Presented by:
Radhika Sukhani
Anjali Sharma(NA)
Ashutosh Nautial(NA)
iPod: Creating and Iconic Brand
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
How evolved
Digging roots: iPod
Napster: digi music introduced
P2P
Pressplay
Winamp + real player
FireWire
iPhoto + iMovie
itunes
iPod
Other mP3 players
Consumers for iPod:
Initial TG for digi music: computer users+ users with passion for music
WOM marketing: Mac users first spread the word!
iPod targeted people who were tired of the complicated mp3 players and awaited simplicity.
the
public’s
perception
Problems with other PMP’s
Storage capacity&
Portability Complexity of design & usage and Battery life
Communication and distribution
Quick
Understanding brand image of iPods
Before iPods there were Mp3 players!!
ipod everywhere:
Love – Mystery, Sensuality, Intimacy
Respect – Performance, Trust, Reputation
Products – Low Love, Low Respect
Fads – High Love, Low Respect
Brands – Low Love, High Respect
Lovemarks – High Love, High respect
Lovemark’s Love/Respect Axis
Performance Features – Mckinsey Quarterly 2003, Vol #4
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”.
RESONANCE:
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT
JUDGEMENT:
QUALITY
CREDIBILITY
CONSIDERATION
SUPERIORITY
FEELINGS:
WARMTH
FUN
EXCITEMENT
SECURITY
SOCIAL
APPROVAL
SELF-RESPECT
SALIENCE:CATEGORY
IDENTIFICATION
NEEDS SATISFIED
PERFORMANCE: PRIMARY
CHARACTERISTICS &
SECONDARY FEATURES
PRODUCT RELIABILITY,
DURABILITY &
SERVICEABILITY
SERVICE EFFECTIVENESS,
EFFICIENCY, & EMPATHY
STYLE AND DESIGN
PRICE
IMAGERY:USER
PROFILES
PURCHASE & USAGE
SITUATIONS
PERSONALITY &
VALUES
HISTORY, HERITAGE,
& EXPERIENCES
Sub-Dimensions of CBBE Pyramid
Breadth:↑Purch+ Consumption considerationDepth:↑recognition + recall+ identification for catagory of membership
Great design + style + Price range+ product reliability n features
Clearly defined TG + attached PromotionsWell defined distribution channelCreated the iPod gang
Brand quality– Value↑– Satisfaction↑
Brand credibility– Expertise– Trustworthiness– Likability
Brand consideration
– Relevance↑
Brand superiority
– Differentiation↑
↑
Mainly for:Fun & excitementSocial approval & respect
Resonance marked the journey for ipod each parameter was rated high
Business model: Razor Model
itunes
ipodsitms
+
ipods
Compatible ipods with windows
OS
ipodaccessories
iPod as a cultural artifact
1st 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
1st 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
2nd Generation
• 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
FACTS
3rd 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
3rd Generation
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)
ITMS ( I tunes music store )
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
Market players
San disc: affordable price and huge capacity
Sony
Microsoft ‘Zune’: New Competitor
Wireless Feature & music store service
CreativeIriver: Innovative design and low price
Samsung: compactness and
durability
high
low
Off
eri
ng
s
Factors of Competition
Consumer
Focus
Design
Innovation
“Cool”
Factor
Engineering
Prowess
Manuf.
Capability
Ease of Use
Price
Ecosystem
/ Alliances
Market
Share
Value curve: Competition outlook
1.
2.
3.
4.
iPod =
The simplicity of
“DESIGN”
(not only its look & feel but its functioning)
Customer
Emotional
Consumption
Value
Consumption
Design as a primarypurchasing decisionfactor
Technology
Friendly
Trends
Friendly
Price-performance sensitivity Value = Benefit/Cost
Get used to using electronic devices Widespread using of handhelddevices such as PMP
Apt to not being fallen behind to the trend
iPod
Schema: Consumers
Consumer characteristics:
•Conscious, “…they are into
interesting things
•“… have a stronger relation to
their ipod [than do Mp3
players]”
•Clubkid
•DJ
• designers
• architect
• aesthetic person
•“Know what’s going on”
• “Music-interested people”
•urban people
expensive
portable
high performance
cool
Must haveUser friendly
cute
Status symbol
STP:
30 40 Age2010
TechnologyEnthusiasts
Visionaries
Pragmatists
Conservatives
Skeptics
“iPod is a fashion of young age.”
1000 songs in your pocket!
Marketing Mix: Product
iPod Classic
Marketing Mix: Product & Price
iPod Shuffle
Marketing Mix: Product & Price
iPod Nano
Marketing Mix: Product & Price
iTouch
Marketing Mix:
Marketing Mix: Promotion
Show up everywhere!!!
Marketing Mix - Promotion
Experience Marketing
: Touch, Feel, and Purchase
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.
The Apple Store is the best
place to learn everything
there is to know about
the iPod.
Other initiatives
Marketing Mix: Place
retailerswebsite AppleStore
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.
Accessorize!!!
Accessorize….!!!
Co- Branding initiatives
Innovation in iPod : iBreath
Sandisc: The Envious competitor!
•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
Reasons for iPod boom
Thank you!!!