1. iPod
Creating An Iconic Brand

2. “ It’s really hard to design products by focus groups.
A lot of times, people don’t know what they want until you show it to them.”

3. Problem Statement
Has Apple successfully differentiated itself from their competitors?
How can the iPod keep its dominance?
Is Apple’s marketing of the iPod effective?

4. History of iPod

5. Extent of Demand Sales of iPod 2001: 125,000 2003: iTMS launched
(thousands)
Sales of iPod
2001: 125,000
2003: iTMS launched
2003: 1,451,000
: 88,701,000
Market Share: 73% in 2006

6. Extent of Demand Market Entrance: Differentiation Unique Product
Storage capacity
Use-friendly interface
Attractive design
Premium Price: $399
“Idiots Priced Our Device”
Advertising
Focused on attributes and benefits

7. Extent of Demand

8. Extent of Demand Increasing Brand Stature Continued Product Innovation
Bigger Storage, Better Functions, etc
iPod mini (2004), Shuffle (2005), etc
Expansion of Distribution Channels
Apple Store (2001)
Major Electronic Retailers, etc
Silhouette Ad Campaign

9. Extent of Demand

10. Nature of Competition Before the iPod
iPod introduced in November 10, 2001

11. Nature of Competition
After iPod’s Release
iPod’s Competition in 2006

12. Environmental Climate
RIAA (Recording Industry Association of American) copyright needed-filing lawsuits against individual file swappers.
The public was eager for an legally easy-to-use digital music service 
People required more entertainment- digital music explosion.
The adoption of Napster spread quickly to more than 25 million users in less than one year.
Political
Social
Let users connect and manage a wide range of digital devices and software - iTunes.
Simplicity but efficiency - hard disk drive Mechanical scroll wheel.
ITunes music store was key for apple and digital music offerings.
Purchasing power depends on the economic conditions.
Since 2003, the US’s economic conditions were getting better.
Economics
Technology

13. Marketing Mix Personal music player
Product
Place
Promotion
Price
Personal music player
Originally black and white only, but color screens became available later
A size to fit every lifestyle (iPod, iPod mini, iPod nano, iPod Shuffle)
Features the distinctive click-wheel

14. Marketing Mix
Product
Place
Promotion
Price
Sold at 113 Apple stores, online, and at selected retailers like Circuit City and Best Buy

15. Marketing Mix 1,000 songs, in your pocket A Capella Silhouette Ads
Product
Place
Promotion
Price
1,000 songs, in your pocket
A Capella
Silhouette Ads
2004 iTMS Super Bowl

17. Marketing Mix Price per GB goes down with each new model
Product
Place
Promotion
Price
Price per GB goes down with each new model
Ranges from $149 for 1GB iPod Shuffle to $399 for 60 GB video iPod

18. SWOT Analysis Unique design: The most important feature!
High market share (78% of the total market)
Culture and social phenomenon
iTunes: Help to identify key customer needs; Differentiation

19. SWOT Analysis
Limitation of target segments: Apple fans and music lovers
iTunes: Not an open system

20. SWOT Analysis
iPods start turning up in universities and schools: new and innovative ways to exploit Apple’s technology
The growth of podcasting: allow users to create and share

21. SWOT Analysis
iPod Killers: Competitors & Cell phones

22. Evaluation of Alternatives
Create a new campaign for iPod
Pros:
Low cost compared with designing a new product
Helps to keep up with current media trends
Cons:
Dilute brand image
Create a new product
Pros:
Compete with competitors
Target more segments
Expand the product line, increase the market share and revenue
Cons:
High cost of designing and producing
May cause cannibalization

23. Recommendation
Create iPod with touch screen: watch videos, play video games & listen to music
Maintain all the other versions of iPods
Decrease the prices of normal iPod
Keep iTunes Music System closed
Create Partnerships

24. “ I think if you do something and it turns
out pretty good, then you should go do something else wonderful, not dwell on it for too long. Just figure out what’s next.”

25. Questions
What was the Name of the First ITunes Compatible phone?​
Pebble​
IPhone​
Razor​
ROKR

26. Questions
What Did Sandisk’s Marketing Campaign call iPod Users​?
Sheeple​
Hipsters​
iSheep​
Posers

27. Questions
When did Apple release the First iPod?​
September 12, 2000​
October 13, 2003​
December 15, 2001​
November 10, 2001

28. Questions
What was the first ad campaign Apple ran for iPod products?
Silhouette
I Fought the Law and the Law Won
1,000 Songs, In Your Pocket
A Capella

29. Questions
What does RIAA stand for?
Recording Industry Association of America
Recording Industrial American Application
Recording Ideas Across America
Really I Always Amaze