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					SUNGHWAN YOO
SORA PARK      APPLE
Overview




 3C




 1
           The size of Global MP3 player market
                                        has been
                              rapidly increasing!
Overview

                     Top 10 MP3 Player Sales
                                                         Unit Share   Dollar Share
           Ranking   Company        Music Player
                                                            (%)           (%)
             1        Apple     30GB Black Video iPod      12.3          19.5

             2        Apple      512MB iPod shuffle        10.1           5.3

             3        Apple      2GB Black iPod Nano        9.8          10.4

             4        Apple     30GB White Video iPod       8.1          12.8

             5        Apple      2GB White iPod Nano        7.1           7.5
 3C          6       Sandisk     512MB Sensa m230           4.4            2

             7        Apple      iPod Nano 4GB Black         4            5.3

             8        Apple    iPod 60GB Black w/Video      3.3           6.9

             9        Apple      iPod Nano 4GB White        2.9           3.8




 1
             10       Apple    iPod 60GB White w/Video      2.4            5

                                       Others               35.6          21.5




                         Apple is a market leader!
Overview

         “Apple iPod To Remain Market King For The Time Being”
                                                -- TechWeb News Oct 25, 2006

      “The reality is those very products, such as iPod, are exactly what saved
        Apple in the very dark period of transition we have witnessed for the
                                  past several years.”
                                                              -- Bryan Chaffin

 3C                 "This is the 21st-century Walkman"
                                         -- Steve Jobs, CEO of Apple Computer




 1
                                                         We will focus on
                                                            MP3 PLAYER,

                                                                          iPod.
 3C
SWOT
 STP
Company - History


        1976   Apple was founded


        1977   The Apple II microcomputer was introduced

               Apple introduced the Lisa, the first commercial perso
        1983   nal computer to employ a graphical user interface
               Macintosh was introduced, furthering the concept
        1984   of a user-friendly graphical user interface.
 3C
               1991       Apple introduced design that has since
                          become ubiquitous in the portable market

                           2001         iPod was introduced.




 1
                           2005         iPod Nano was introduced.

                                        iPod Nano (2nd Generation)
                           2006
                                        was introduced.
Company – Latest Products


    Desktop
  and Laptops




                iMac „06    MacBook
 3C




 1              MacMini     MacPro
Company – Latest Products


        MP3
      Players




                 iPod U2
 3C




 1              iPod Shuffle   iPod Nano
Company – Sales History




 3C




 1
Competitor




 3C




 1
                          Apple holds
             undisputable No.1 position
                         In the market.
Competitor


             Sandisk : affordable price and huge capacity



                 iRiver : Innovative design and low price



 3C                    Samsung : compactness and durability




 1
                              Microsoft : New Competitor
                                          Wireless feature
                                          & music store service
Customer

                                                Get used to using electronic
                                                devices
                                                Widespread using of handheld
           Emotional
          Consumption                           devices such as PMP


       Design as a primary                            Technology
        purchasing decision         Value                Friendly
                                 Consumption
        factor
 3C

                               Price-performance                     Trends
                               sensitivity                           Friendly
                               Value = Benefit/Cost




 1                                                              Apt to not being
                                                                fallen behind to
                                                                the trend
Strengths

       54% of Apple Profits are in foreign markets




       Very Loyal customer groups




                              Knowledge of customer base
     SWOT




 1          성있는
             위기
             연출
                              Product Diversification
Strengths

      Innovation


      Established high entering barrier in online music
      store market


                     Developing Podcast Service




     SWOT            Control over the product by manufacturing




 1
                     both computer and their OS software

            성있는
             위기
              연출
Weaknesses

      Quality Product control
       • iPod Nano may have a faulty screen
       • Faulty iPod batteries


      Engineering-driving rather than Marketing-driving



                        High Price


     SWOT




 1           성있는
             위기
              연출
Opportunities

      Enlarge target market with new product
      Such as iPod Video


      Strategic Alliance with Intel

             • The Intel chip allows the new machines to run
               the Windows Operation System
             • Apple developed Dual-os booting system
               called “Bootcamp”
     SWOT




 1
                                 Constantly growing mp3 market.

             성있는
              위기
              연출
Threats

      High level of competition in the technology market
          • Microsoft is trying to get into the market


      Convergent product which has a mp3 player feature


                        pressure on Apple to increase the price of
                        its music download file, from the music industry


     SWOT




 1
                                    Information leaks
                성있는
                 위기
                  연출
Competitive Advantage


                                 Brand Power
    Strategic Alliance
                              > Loyal customer groups
    > Alliance with Samsung   > Position as
    > Alliance with music       a market leader
      source providers        > Satisfying customers’
                                wants & needs




      SWOT                        Technology




 1
                              > Creative tools like a
                                click wheel
               성있는            > Ease of use (UI)
                위기            > Continuous Innovation
                연출
Segmentation & Targeting

  Technology acceptance        Skeptics


  Age
                          Conservatives




                            Pragmatists




                             Visionaries


                                                

 1
                             Technology
                             Enthusiasts



                     STP                   10   20   30   40   Age
Positioning




     “iPod is a fashion of young age.”
                            <Steven Jobs>




 1        STP
MARKETING MIX
Marketing Mix – Product & Price

          iPod                      iPod shuffle                        iPod nano




      30GB $249.99                                                      2GB $149.00
                                      1GB $79.00
      80GB $349.00                                                      4GB $199.00

   carry movies, TV shows,     the iPod shuffle weighs in      With its new anodized aluminum
  videos, games, podcasts,      at about half an ounce         enclosure and rounded edges,
  audiobooks, photos, and     and is less than half the size   iPod nano looks as dazzling as it
            more.                                               feels. And it's sleeker than ever
                                     of the original.



                               Standardized Global
                             Strategy for product mix
Marketing Mix – Product & Price



                   !
                    iTunes makes it easy to browse
                       and buy millions of songs,
                       audiobooks, podcasts, TV shows,
                       movies, and games on the
                       iTunes Store.
                    Open 24/7, the iTunes Store
                       features more than 3.5 million
                       99¢ songs, 65,000 free podcasts,
                       20,000 audiobooks, 200 TV shows,
       iTunes
                       and movies and iPod games.
Marketing Mix – Product & Price




                    ACCESSORIES
 COLORS




           Innovation!!
Marketing Mix - Place



    website    AppleStore   retailers
Marketing Mix - Promotion

 Secret Marketing               Conceal news of new product
                   ?            as long as they can hold.
               ?
                                Maximize mystique of the new
                                product. Strict guideline of
                                „Information leak‟ by the
                                internal employee.


Experience Marketing
  : Touch, Feel, and Purchase

  The Apple Store is the best
  place to learn everything
  there is to know about
  the iPod.
Marketing Mix - Promotion

 Innovative Advertising

       “1984” TV
     Advertisement         1981
                          WSJ Ad
           &
   “We Welcome IBM”
   WSJ Advertisement




   1984
  TV Ad
Any question….?

				
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