PRODUCT BRANDING

OF
“Apple iPod”

Presented By :-

AMIT KUMAR SINGH

MFTECH (AP) –II
BATCH-2008-10
NIFT, NEW DELHI
 CONTENTS
 Introduction of product

 IP mandate & Goals

 Apple’s Business Strategy

 Stages in new product development

 Focus on IPR for brand protection

 Apple’s Gross Profit margin on ipod

 Sales position of iPod

 Industry impact of Ipod

 Advertising Campaigns
INTRODUCTION OF PRODUCT
• iPod is the brand of portable media players designed and marketed by
Apple Inc. and launched on October 23, 2001. The product line-up
includes the hard drive-based iPod Classic & touch screen iPod.

• iPod Classic models store media on an internal hard drive, while all other
models use flash memory to enable their smaller size. As with many other
digital music players, iPods, excluding the iPod Touch, can also serve as
external data storage devices. Storage capacity varies by model.

• In September 2008, more than 173,000,000 iPods had been sold

worldwide, making it the best-selling digital audio player series in history.

• Apple's 2007 year revenue recorded US$24.01 billion with US$3.5 billion
in profits.
 IP MANDATE & GOALS
 The primary goals are:
• To improve local innovation systems
• To help in commercializing intellectual property
• To improve the climate for investment.
 With particular reference to transitional economies, In light of these goals
this presentation is structured as follows:
• Innovation & Business-University Collaboration
• Technology Transfer
• The Strategic Management of Intellectual Property Assets
• Value transference, functional differentiation & sustainable
differentiation
• IP Administration
• Maintenance & policing of intellectual property
 BUSINESS STRATEGY
Think Different
Conti…

• Over the years, Apple has continuously invested in research and

development (R&D) to design and develop new products and peripherals.
• Apple’s physical and financial achievements are the result of its deep
commitment to continuous innovation-led business strategy.
• Apple maintains competitive advantage by effectively integrating an
entire solution, including the hardware (iPod), software (iTunes), and
distribution of third-party digital content (iTunes Music Store).
• Apple's phenomenal growth was possible because of its continuous
thrust on innovation, resulting in a range of products like Mac OS X v10.2
Jaguar, 'Switchers', iPods, iMacs and iBooks. These innovative products
have attracted new customers and are in great demand.
Conti….
Stages in new product development
Brainstorming

Filter ideas

Ask customers

Formulate strategy

Estimate sales, costs and profits

Prototype created

Trial launch in a few areas

Putting into production

FOCUS ON IPR FOR BRAND PROTECTION

TRADE MARK

A distinctive word, phrase, logo, graphic symbol, or

other device to identify the source of a product or
service, brand to distinguish a manufacturer’s or
merchant’s products from anyone else’s.
The company get right as trademark for there logos.

They gone for it as to protect there logo from misuse.

The Trademark “iPod” is registered in 2003 & then

assigned to Apple in 31 Jan 2005 by U.S. Patent office.
 INDUSTRIAL DESIGN
The company has taken for industrial design right to save its
product iPod, as it is having unique, sporty, and attractive look &
click wheel and this right assigned in 2005 by U.S. Patent office.
PATENT
In the iPod, the software and technology used in
iPod is patented by Apple Inc. Apple believes in new
innovation & technology that is the main key of
success.

The 1st patent application is titled “Method and

system for sharing playlists.” Invention relates
to graphical user interfaces (GUI).
The 2nd patent application titled “Method and
system for configurable automatic media
selection,”.

In January 2006, Apple surprised the market by

shifting from IBM’s PowerPC chips to the Intel
platform, and by launching the Intel powered
Apple iMac and MacBook Pro.
 APPLE’S GROSS PROFIT MARGIN ON iPod
Apple’s reported corporate gross margin for all products in the year
ending September 30, 2006 was 29 % but in 2008 it increased upto
39%.
Apple is the lead firm in the iPod value chain, incurring costs for R&D,
marketing, coordination of the entire value chain, and other overhead
costs such as warranty.
Retail price per unit of 30 GB iPod $299

Distributor Discount (10%) ($30

Retailer Discount (15%) ($45

Sub-Total $224
(estimated wholesale price)
Factory Cost ($144

Remaining Balance $80

(estimated Apple gross profit
Apple Gross Margin ($80/$224 36%
INDUSTRY IMPACT OF iPod
• iPods have won several awards ranging from engineering
excellence, to most innovative audio product, to fourth best
computer product of 2006.

• iPods often receive favorable reviews; scoring on looks, clean

design, and ease of use.

• PC World says that iPod line has "altered the landscape for
portable audio players". Several industries are modifying their
products to work better with both the iPod line and the AAC audio.

• Apple offers more information on educational uses for iPods on

their website, including a collection of lesson plans.

• Duke University provided iPods to all incoming freshmen in the fall

of 2007, and the iPod program continues today with modifications.
 ADVERTISING COMPAIGNS
• The more famous commercials and print advertising featured dark silhouetted
characters against bright-colored backgrounds. The silhouettes are usually
dancing, and in television commercials are backed by up-beat music. 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. Apple
changes the style of these
commercials quite often
depending on the song's theme
or genre
 Conti…..

• The original television commercials and

posters featured solid black silhouettes
against a solid bright color, which usually
changed every time the camera angle
changed.

• On May 20, 2008, a new ad premiered

during the American Idol finale. It follows
the original form but with even more
animated backgrounds and Coldplay is
shown in the shadow. The song was Viva
la Vida by Coldplay.
REFERENCES:
 http://patentcircle.blogspot.com/2006_06_01_archive.html

 http://wipo.int

 http://apple.com

 http://productstrategy.squarespace.com/

 http://wikipedia.org