Team A - Apple Case Study
Has existed since December 2001
First iPod weighed 6.5 ounces and held 1000 songs
Apple has created various types of iPods ranging from $55-$429
Has become the leading product in the MP3 market
Team A - Apple Case Study
What marketing strategy will keep Apple iPod dominant in the MP3 market?
Team A - Apple Case Study
Apple sold 100 million iPods up until April 2007
About 11M IPods sold during 2008 (3rd Quarter)
Newest generation of iPods:› iTouch› iPod Nano
Current competitors are Sony, Microsoft, Scandisk.
iPod Nano iTouch
Team A - Apple Case Study
Team A - Apple Case Study
Worldwide (www.apple.com)
Demographic Segmentation Middle and Upper Class Individuals who enjoy listening to music
Team A - Apple Case Study
Team A - Apple Case Study
Team A - Apple Case Study
Team A - Apple Case Study
Team A - Apple Case Study
Produced for individual wants, needs and desires.
Consumers would be able to go to apple’s website and create their “ideal” iPod.
Consumers would be able to tailor their iPods to a preferred look, function, and price
Team A - Apple Case Study
Built for specific needs and wants of a customer
Consumer can choose an appropriate price to fit their income
Will create a larger consumer market for sales of iPod accessories, as more people will have iPods
Team A - Apple Case Study
Cost of producing the goods increase, as more production will be needed
Reduces the sales in retail stores.
Customization isn’t for everyone.
Team A - Apple Case Study
Team A - Apple Case Study
› Proposal : Consumers may trade their old Ipods in to receive a discounted price off of newer Ipods.
Team A - Apple Case Study
Team A - Apple Case Study
What can Apple do with the used Ipods? Donate second hand Ipods for charity use
For example: Orphanages and organizations such as Big Brother, Roland McDonald House or Red Cross
ORSell Ipods at a low or breakeven cost to organizations that cater to low income families
For example: Salvation Army, Value Village
Team A - Apple Case Study
Proposal : Apple collaborating with the fashion brand Gucci to create a branded Ipod Touch
Team A - Apple Case Study
After some research, we found that some Ipods have already collaborated with different name brands
Therefore we propose that Apple collaborate with Gucci to mass produce their product, turning this item into a main product line.
The Nike Ipod
Versace Ipod Shuffle
Team A - Apple Case Study
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
Team A - Apple Case Study
• iClub is a membership card for all iPod consumers
• Can become members by visiting retail stores or on www.apple.com
• Works on a points system, members receive points when purchasing:• iPods• iPod accessories• iTunes• iMovies
• Members will also receive updates and new offers every month
Team A - Apple Case Study
Creates loyal customers
Creates e-community or “family” on the internet
Creates incentive to buy apply iPods
Depends on response rate
There will be an increase in costs in order to finance the production
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
Team A - Apple Case Study
1. Develop website and database registration for members
2. E-mail existing registered consumers
3. Promote an iClub launch event in selected cities
4. With a base of iClub members, we will send out membership cards
5. Word of mouth will take effect to promote iClub
Team A - Apple Case Study
Market Development used existing products to make new markets.
Co-Branding Used two established brands of two different companies and collaborated them to make a new product.
Brand Extension to launch a new line of Gucci IPod Touch.
Building Profitable Relationships building profitable relationships by introducing new promotions and a point system whereby loyal customers may receive free gifts.
Line Extension Addition of items in a given product category under the same brand name.
Team A - Apple Case Study
Team A - Apple Case Study