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Apple iPod
Company OverviewHistory of ProductStrategic IssueSituation AnalysisStrategic ResponseKey Reasons for SuccessLessons Learned
Agenda
Company Overview
1976-1980 : The Early Years
Established on “April Fool’s” day in 1976 by Steve Jobs & Wozinak, both college drop outs
1976-1980 : The Early Years
The Apple I went on sale in July, 1976 for $666.66.
Apple was incorporated on January 3, 1977. The Apple II hits the market in 1977. Apple soars to $1 million in 1980 and went public.
Apple faced saturated market after the launch of IBM’s PC.
Apple introduced Lisa with hefty price of $ 10,000. Jobs resigned from Apple in 1985 and founded NeXT Inc. Apple seeking to make big splash,
introduces the Macintosh commercial during the Super Bowl XVIII on January 22, 1984.
1981-1985 : Lisa & Mactintosh
1986 – 1993 : Rise & Fall
The period between 1989-1991 was the “Golden Age” of Macintosh.
Apple introduces Mac II & Apple was again in spotlight.
1986 – 1993 : Rise & Fall
Apple introduce Power Book & system 7. 1993, Sculley was ousted after his pet project (Digital cameras, Speakers & TV appliances) Micheal Spindler takes over the
Apple’s operations.
1994-1997 : Attempts of Reinvention
1994, Apple aligned with IBM, Motorola in AIM alliance and introduced Power Macintosh
1995, Gilbert pushes out Splinder after sales suffered due to parts shortage.
Apple acquired NeXT Inc., which reunites Apple with Steve Jobs.
1998 : New Beginning Apple introduces iMAC, featured
current technology & ground breaking design.
Apple stunned Wall Street by earning $ 45 million in first quarter of 1998.
History of Digital Audio Player
The first mass produced DAP was “MP Man” in 1997. It was branded as “Eiger Labs MP Man F-10” to North American market in 1998.
History of Digital Audio Player
“Rio PMP300” from Diamond Multimedia was introduced in 1998.
History of Digital Audio Player
In 1998 Compaq developed the first hard drive based DAP called “PJB-100”.
2.5” laptop HD. 4.8 GB. 1200 songs.
History of iPodFirst Generation
October 2001, Apple unveiled first generation iPod. 1.8” Hard drive 5 GB
March 2002, Apple intoduced 10 GB model of first generation iPod.
Second Generation ipod was introduced on July 17, 2002.
Touch sensitive wheel
10 GB & 20 GB
Second Generation
Third Generation iPod was introduced on April 18, 2003.
Thinner
10 GB,15 GB & 30GB
Third Generation
Timeline of iPod
Situation
• In 2000, Steve Jobs Candy colored iMac was leading the change for Apple’s come back, but to further spur sales, company started asking :
“What can we do to make people more macintoshes ????????”
Fork in the Road
Line Extension of iMac
Launch a new Product
Situation Analysis
Industry Overview
Strides of Window platform was narrowing the edge of Apple’s products.
Hard disk based Music Player are too big to carry & weighs ½ KG.
New Music Players Let You Cram CDs With MP3 Favorite.
Situation Analysis
Enviroment Overview
Companies were planning to extend the use of its personal storage solutions into MP3 players.
consumer-electronics companies are rushing out their own digital-audio products.
SWOT Analysis
Strenghts High quality product which makes Apple
different than its competition Apple niche audience provides the
company with insulation from direct price competition.
Weakness Weak presence in business arena Dependency of new product launches
SWOT Analysis
Opportunity Large population Gen(X&Y) which are
extremely indivisualistic & brand consious
Booming MP3 player market Threats Intense Competition Changing technology
SWOT Analysis
Leverage
Apple leveraged the fact that high quality product which is different than its competition and targeted to Gen (X&Y) which were extremely individualistic and brand conscious.
Marketing MixProduct
“Apple iPod – First Generation”Small & User friendlyBlack and white screen 5 GB Hard Drive stores 1000 songs
Place
Apple opened its stores in Virginia & California.
Price
US $ 399.00
Promotion
TV CommercialsPrint ads (music, sports & men Magazine)Posters in public place
Strategic Response
The first commercial for iPod aired in 2001.
Strategic Response
From 2003 to 2005, Apple ferociously promoted iPod.
Silhouette Campaign was the most popular
Strategic Response
Target Market Targeted at young, style conscious,
& music enthusiasts.
Brand Position iPod positioned itself as the best
MP3 player.
Ability to Build Brand Equity
Identity iPod changed the game in the brand
identity. iPod differentiated itself from MP3 playerIntegrity iPod perceived to meet customers’
expectations. Resonance iPod got connected to customer lifestyles
& aspirations.
Is it a success or a failure ???
Great success for Apple
Reasons for Success
Apple shifted the brand identity from company context to context of customer.
High Quality products and design make it different from competitors.
Lessons Learned
Create brand equity in context of customer.
Focus on your core competency.
Differentiate yourself.
Questions?