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Team A - Apple Case Study

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<ul><li>Has existed since December 2001 </li></ul><ul><li>First iPod weighed 6.5 ounces and held 1000 songs </li></ul><ul><li>Apple has created various types of iPods ranging from $55-$429 </li></ul><ul><li>Has become the leading product in the MP3 market </li></ul>Team A - Apple Case Study

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<ul><li>What marketing strategy will keep Apple iPod dominant in the MP3 market? </li></ul>Team A - Apple Case Study

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<ul><li>Apple sold 100 million iPods up until April 2007 </li></ul><ul><li>About 11M IPods sold during 2008 (3 rd Quarter) </li></ul><ul><li>Newest generation of iPods: </li></ul><ul><ul><li>iTouch </li></ul></ul><ul><ul><li>iPod Nano </li></ul></ul><ul><li>Current competitors are Sony, Microsoft, Scandisk. </li></ul>iPod Nano iTouch Team A - Apple Case Study

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Team A - Apple Case Study

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<ul><li>Worldwide ( www.apple.com ) </li></ul><ul><li>Demographic Segmentation </li></ul><ul><li>Middle and Upper Class </li></ul><ul><li>Individuals who enjoy listening to music </li></ul>Team A - Apple Case Study

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Team A - Apple Case Study

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Team A - Apple Case Study

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Team A - Apple Case Study

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Team A - Apple Case Study

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<ul><li>Produced for individual wants, needs and desires. </li></ul><ul><li>Consumers would be able to go to apple’s website and create their “ideal” iPod. </li></ul><ul><li>Consumers would be able to tailor their iPods to a preferred look, function, and price </li></ul>Team A - Apple Case Study

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<ul><li>Built for specific needs and wants of a customer </li></ul><ul><li>Consumer can choose an appropriate price to fit their income </li></ul><ul><li>Will create a larger consumer market for sales of iPod accessories, as more people will have iPods </li></ul>Team A - Apple Case Study

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<ul><li>Cost of producing the goods increase, as more production will be needed </li></ul><ul><li>Reduces the sales in retail stores. </li></ul><ul><li>Customization isn’t for everyone. </li></ul>Team A - Apple Case Study

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Team A - Apple Case Study

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<ul><ul><li>Proposal : Consumers may trade their old Ipods in to receive a discounted price off of newer Ipods. </li></ul></ul>Team A - Apple Case Study

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Team A - Apple Case Study

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<ul><li>What can Apple do with the used Ipods? </li></ul><ul><li>Donate second hand Ipods for charity use </li></ul><ul><ul><li>For example: Orphanages and organizations such as Big Brother, Roland McDonald House or Red Cross </li></ul></ul><ul><li>OR </li></ul><ul><li>Sell Ipods at a low or breakeven cost to organizations that cater to low income families </li></ul><ul><ul><li>For example: Salvation Army, Value Village </li></ul></ul>Team A - Apple Case Study

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Proposal : Apple collaborating with the fashion brand Gucci to create a branded Ipod Touch Team A - Apple Case Study

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<ul><li>After some research, we found that some Ipods have already collaborated with different name brands </li></ul><ul><li>Therefore we propose that Apple collaborate with Gucci to mass produce their product, turning this item into a main product line. </li></ul>The Nike Ipod Versace Ipod Shuffle Team A - Apple Case Study

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Proposal : To expand the IPod's current target from 15 – 25 to 15 – 38 market with the use of their trademark commercials featuring an older generation Team A - Apple Case Study

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Team A - Apple Case Study

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<ul><li>iClub is a membership card for all iPod consumers </li></ul><ul><li>Can become members by visiting retail stores or on www.apple.com </li></ul><ul><li>Works on a points system, members receive points when purchasing: </li></ul><ul><ul><li>iPods </li></ul></ul><ul><ul><li>iPod accessories </li></ul></ul><ul><ul><li>iTunes </li></ul></ul><ul><ul><li>iMovies </li></ul></ul><ul><li>Members will also receive updates and new offers every month </li></ul>Team A - Apple Case Study

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<ul><li>Creates loyal customers </li></ul><ul><li>Creates e-community or “family” on the internet </li></ul><ul><li>Creates incentive to buy apply iPods </li></ul><ul><li>Depends on response rate </li></ul><ul><li>There will be an increase in costs in order to finance the production </li></ul>Team A - Apple Case Study

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Team A - Apple Case Study Cost Amount iClub Website (use existing IT department of Apple) $ 0 iClub Membership (100000 cards) $ 36818.10 iClub Launch Party (3 selected cities) $15,000 X 3 = $ 45,000

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<ul><li>Develop website and database registration for members </li></ul><ul><li>E-mail existing registered consumers </li></ul><ul><li>Promote an iClub launch event in selected cities </li></ul><ul><li>With a base of iClub members, we will send out membership cards </li></ul><ul><li>Word of mouth will take effect to promote iClub </li></ul>Team A - Apple Case Study

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<ul><li>Market Development  used existing products to make new markets. </li></ul><ul><li>Co-Branding  Used two established brands of two different companies and collaborated them to make a new product. </li></ul><ul><li>Brand Extension  to launch a new line of Gucci IPod Touch. </li></ul><ul><li>Building Profitable Relationships  building profitable relationships by introducing new promotions and a point system whereby loyal customers may receive free gifts. </li></ul><ul><li>Line Extension  Addition of items in a given product category under the same brand name. </li></ul>Team A - Apple Case Study

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Team A - Apple Case Study