Apple Case Study

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


What marketing strategy will keep Apple iPod dominant in the MP3 market?


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



Worldwide (www.apple.com)

Demographic Segmentation Middle and Upper Class Individuals who enjoy listening to music






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


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


Cost of producing the goods increase, as more production will be needed

Reduces the sales in retail stores.

Customization isn’t for everyone.



› Proposal : Consumers may trade their old Ipods in to receive a discounted price off of newer Ipods.



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


Proposal : Apple collaborating with the fashion brand Gucci to create a branded Ipod Touch


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


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



• 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


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


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


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


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.



Technology

Apple Case Study