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….?