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
1976 1977 1983 1984 2001 2005 2006 2007

evolved
Apple was found The Apple II microcomputer was introduced Apple employ a graphical user interface Macintosh was introduced iPod was introduced. iPod Nano was introduced iPod Nano (2nd Generation) was introduced. iphone was introduced

Digging roots: iPod

iPod itunes

Consumers for iPod: Initial TG for digi music: computer users+ users with passion for music WOM marketing: Mac users first spread the word!
Other mP3 players iPhoto + iMovie FireWire Winamp + real player

iPod targeted people who were tired of the complicated mp3 players and awaited simplicity.

Pressplay P2P

Napster: digi music introduced

the

publics

perception

Problems with other PMPs

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:

Lovemarks Love/Respect Axis

Respect Performance, Trust, Reputation

Brands Low Love, High Respect

Lovemarks High Love, High respect

Love Mystery, Sensuality, Intimacy

Products Low Love, Low Respect

Fads High Love, Low 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 Apples new mp3player.

Sub-Dimensions of CBBE Pyramid

Brand quality Value Satisfaction Brand credibility Expertise Trustworthiness Likability Brand consideration Relevance Brand superiority Differentiation
RESONANCE: LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

Resonance marked the journey for ipod each parameter was rated high

JUDGEMENT: QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

FEELINGS: WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT

Mainly for: Fun & excitement Social approval & respect

Great design + style + Price range+ product reliability n features

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

Clearly defined TG + attached Promotions Well defined distribution channel Created the iPod gang Breadth:Purch+ Consumption consideration Depth:recognition + recall+ identification for catagory of membership

SALIENCE:CATEGORY IDENTIFICATION NEEDS SATISFIED

Business model: Razor Model

itunes

Compatible ipods with windows OS

ipod accessories

itms

ipods

ipods

iPod as a cultural artifact

1 Generation stst Generation 1

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

3rdGeneration rd Generation 3

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

Samsung: compactness and durability

Microsoft Zune: New Competitor Wireless Feature & music store service

Creative
Iriver: Innovative design and low price

Value curve: Competition outlook

high

Offerings
low
Consumer Focus Design Innovation Price Manuf. Cool Capability Factor Engineering Ease of Use Prowess Market Share Ecosystem / Alliances

Factors of Competition

1 .

iPod =

The simplicity of
4 .

DESIGN
(not only its look & feel but its functioning)
3 .

2 .

Customer
Get used to using electronic devices Widespread using of handheld devices such as PMP

Emotional Consumption

Design as a primary purchasing decision factor

Value Consumption

Technology Friendly

Price-performance sensitivity Value = Benefit/Cost

Trends Friendly

Apt to not being fallen behind to the trend

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 whats going on Music-interested people urban people Must have User friendly cute Status symbol iPod portable high performance expensive cool

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!!!

Marketing Mix Other initiatives Secret Marketing

?
?

Promotion
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. Peoples support for device

Thank you!!!