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Product: Portable
    Music Player
  Brand(corporate):
 Brand(family): ipod

     Presented by:
    Radhika Sukhani
   Anjali Sharma(NA)
  Ashutosh Nautial(NA)




iPod: Creating and Iconic Brand
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
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
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:
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
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”.
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
Business model: Razor Model


                 Compatible
                 ipods with      ipod
     itunes       windows     accessories
                     OS




                   itms
     ipods           +
                   ipods
iPod as a cultural artifact
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
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
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
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
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)
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

                                                   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
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
1
             .
                  iPod =

           The simplicity of

4
.
            “DESIGN”                    2
                                        .

    (not only its look & feel but its
             functioning)

              3
              .
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
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
STP:

      Skeptics


 Conservatives


  Pragmatists


   Visionaries


    Technology
    Enthusiasts

                  10   20   30   40   Age


             1000 songs in your pocket!

    “iPod is a fashion of young age.”
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!!!
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.
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.
Accessorize!!!
Accessorize….!!!
Co- Branding initiatives
Innovation in iPod : iBreath
Sandisc: The Envious competitor!
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
Thank you!!!

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Bm Case Study Apple I Pod

  • 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. 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. 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.
  • 6. Problems with other PMP’s Storage capacity & Portability Complexity of design & usage and Battery life Communication and distribution Quick
  • 7. Understanding brand image of iPods Before iPods there were Mp3 players!!
  • 9.
  • 10. 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
  • 11. Performance Features – Mckinsey Quarterly 2003, Vol #4
  • 12. 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”.
  • 13. 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
  • 14. Business model: Razor Model Compatible ipods with ipod itunes windows accessories OS itms ipods + ipods
  • 15. iPod as a cultural artifact
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. 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
  • 20. 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)
  • 21. 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
  • 22. 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
  • 23. 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
  • 24.
  • 25. 1 . iPod = The simplicity of 4 . “DESIGN” 2 . (not only its look & feel but its functioning) 3 .
  • 26. 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
  • 27. 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
  • 28. STP: Skeptics Conservatives Pragmatists Visionaries Technology Enthusiasts 10 20 30 40 Age 1000 songs in your pocket! “iPod is a fashion of young age.”
  • 29. Marketing Mix: Product iPod Classic
  • 30. Marketing Mix: Product & Price iPod Shuffle
  • 31. Marketing Mix: Product & Price iPod Nano
  • 32. Marketing Mix: Product & Price iTouch
  • 34. Marketing Mix: Promotion Show up everywhere!!!
  • 35. 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.
  • 36. 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.
  • 40. Innovation in iPod : iBreath
  • 41. Sandisc: The Envious competitor!
  • 42. 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