Ipod: CREATING AN ICONIC BRAND

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Etem Kavak - EMBA 5202 BRAND MANAGEMENT HW3 CASE STUDY

TABLE OF CONTENTS

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INTRODUCTION Quick Catch up

The summer of 74 The birth of the APPLE Enter the Sculley Management to the fore

Brand Elements
Product: Portable Music Player Name : iPod Slogan : 1000 songs in your pocket

Character : Simplicity Jobs loses his Job Patchy history

Jobs reinstated CEO, Apple Computers. URL : http://www.apple.com/ipod/

Logo :

Packaging : Simple and fascinating

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Etem Kavak - EMBA 5202 BRAND MANAGEMENT HW3 CASE STUDY

INTRODUCTION-2
The iPod is a combination portable storing and playing audio files encoded by MP3 or Advanced Audio Coding (AAC) from Apple Computer and launched in 2001. Priced at $399 5 GbGigabyte The product line-up includes iPod Classic, the touch screen iPod Touch, the compact iPod Nano and the ultra-compact iPod Shuffle.

All iPod models use an extremely small hard disk for storage. Also iPod Shuffle uses a flash memory; unlike the memory found in computers. This flash memory doesnt lose its contents when the power is turned off. The storage capacity of all models has increased over time. From 2001 to 2011, its reported that Apple have reached 275 mio iPod sales.
In just first quarter of 2011, more than 19 mio iPods had been sold worldwide and gained 24,67 billion USD Revenue with 5,99 billion Net Profit.
Etem Kavak - EMBA 5202 BRAND MANAGEMENT HW3 CASE STUDY

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HISTORY OF APPLE
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
most people make the mistake of thinking design is what it looks like. People think its this veneer that the designers are handed this box and told, Make it look good! Thats not what we think design is. Its not just what it looks like and feels like. Design is how it works
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Etem Kavak - EMBA 5202 BRAND MANAGEMENT HW3 CASE STUDY

Q1.What is the most important feature of iPod? Why?

Consumer characteristics: Conscious, they are into interesting things have a stronger relation to their ipod[than do Mp3 players] Clubkid DJ designers, professionals architect status symbol Ipod portable

high performance

cool

expensive

legal

cute
aesthetic person Know whats going on Music-interested people urban people
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user friendly must have

Etem Kavak - EMBA 5202 BRAND MANAGEMENT HW3 CASE STUDY

What is the most important feature of iPod? Why?-2

Seamless development

Blueprint of the iPod

In house development team of software and hardware engineers

Foreign Ideas
Outsider Tony Fadell conceptualised the iPod

Sophistication through Simplicity

Differentiating factor for the iPod its Simplicity
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iPods CBBE Model

High customer loyalty, being lovemark

Resonance
Market leader, innovative, high quality and convenience Fun & excitement, social approval & respect, freedom

Judgement
Stylish, Convenient, Simple to use, large storage capacity, touch-wheel

Feeling
Convenience, ease of use, cool & simple design

Performance
Digital music player, Sensational product; very high acceptance

Imagery
Breadth:Purchase + Consumption consideration Depth:recognition + recall+ identification for category of membership

Salience

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Etem Kavak - EMBA 5202 BRAND MANAGEMENT HW3 CASE STUDY

Q2.Whether Apple continues to operate a closed system?

conclusion: Closed!
iPod - 78% market share is hard to maintain. Continuous innovation necessary. Closed system ensures compatibility of iTMS with iPod only prevents it from any imitative product

itunes

Compatible ipods with windows OS

Ipod accessories

ipods

itms + ipods

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Q3.Has Apple done a good job of marketing the iPod?

Marketing the iPod

Yes, Apple has done a good job of marketing of iPod. The Apple name created an association of innovation in people minds. Steve Jobs is the main the brand manager of iPod and Apple. His presentations always effects people iPOD caught an extreme success with silhouttes commercials. Secondary Associations; In 2004, Apple took wraps off iPod U2 Special Edition, to celebrate the company's promotional partnership with the legendary rock band U2. For making the iPod brand more desirable, Apple made celebration with Eminem, Wynton Marsalis, Coldplay and Oprah Winfrey. Also Apple did other associations for creating energetic and stylish brand for iPod with BMW and Ferrari.
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Q4. apples distribution network; reachability vs customer retail experience.

Distributor Network
Apple criticized for exerting too much control over retailers Retail selling through Best Buy and Circuit City discontinued in `98 Sales diminishing due to lack of access to consumers; no demand shortage Apple primarily followed pull strategy; iPods only required to be in stock

Aggressive Distribution: A Good iDea;

21000 distribution points for iPod by 2005 Circuit City stores and Best Buy stores reinstated as retail distribution partners in 02 iPods available at Radio Shack outlets with a initial order of 450,000 units Airport Vending Machines: easy access to customers on-the-fly Apple Stores at upscale malls added to sales Halo effect on other products improved retail computer share to 4.5% in 05

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Q5. What should be the future plan ?

Social Networking Device: Enable Bluetooth image and video transfer between iPods Microphone: Karaoke Voice Recording Recycle iPod: Exchange old iPods and get discounts on the latest models. Sell these used iPods at a subsidized rate to museums for voice/video tours CSR initiative: Donate these 2nd hand iPods to charity such as Red Cross, American Cancer Society etc.

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Thank you .
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