I POD

CREATING AN ICONIC BRAND

BY : SIDDARTH SONI (042)SUDHANSHU KUMAR (043)

Contents:• Introduction : I POD• Apple’s History• Launch : I POD & ITMS• Economics of I POD • Distribution Strategy• Innovative Uses of I POD• I POD Killers• Future Steps

Introduction• I Pod : Portable Digital Music player• Indispensable piece of personal technology• Market share : 78 % of portable digital music

players (Jan-2006)• 14.1 million I Pod sold ( Q1 -2006)• Market dominant through continuous product

Innovation and clever marketing

Apple- History:• 1974- Steve Jobs & Steve Wozniak founder• Predicted the Home computer Demand• Introduced Apple II in 1977• Public in 1980.• John Srulley : Apple CEO in 1983.• Launch of Macintosh with GUI.• Abandoned Apple II in favor of Mac product

Line

• TV commercial “On January 24th, Apple Computer will introduce Macintosh. And you’ll see why 1984 won’t be like 1984.”

• In 1996 Apple bought NEXT, Jobs returned back.

Launch : I POD & ITMS• Napster shut in July 1984 by RAAI• Sharing service : Peer to Peer.• Opportunity for record companies for online

distribution.• Late entry in Digital market with FireWire • In 1991 Tony Fadell’s hired by Apple to Market.• Nov2001 Ipod launched (after 11 sept –decline

economy)• ITMS store launched in 2003

ipod Timeline Intro

Economics of I POD • Razor Model turned upside down• Meager profit of $0.04,net profit resulted $20

million• Reinvent the entire Music business• Jobs pushed designer & engineer • Silhouettes everywhere –Print ads,Toronto

subway,Macworld,Newsweek & Wired Magazine.• Ads during 2004 Super Bowl – teenager• Famous songs only on ITMS• IPOD night events

• Apple’s IPOD and Itune are part of the digital hub.

• Relationship marketing• POD• To prevent ipod killers from cropping up –

sustainable competitive advantage• Company currently will not relinquish its digital

rights and allow iTunes to be a universal product• Copy protection and prevention of piracy

• Targeted at the niche market creating product desirability

• Marketed Ipod as a life style product, instead of just another mp3 player.

• Brand recognition high, because of same design• Experimental marketing, promoted ipod as an

enriching factor.

• Secondary brand association• Target audience – Teenager and electronic

geeks• Product nature• Enhance the sales of other product – Halo

Effect

• Product innovation has been the core branding strategy

• Sustain the desirability• Target is teenage, video games will enhance

the value proposition