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					APPLE                               APPLE
              iRead




        Experience more and enjoy
APPLE       this new reading        APPLE
APPLE                                                                        APPLE
                                    iRead
   Introduction
   Apple inc.
     American consumer electronics

        best known products: Mac, Mac OS X, iPod, iTunes
        new products: iPhone, Apple TV, iRead

        statistics 2006:
               17.787 full time employees, 2.399 temporary and contractors
               US$ 19.3 billion revenue, US$ 2.1 billion net income

        2006: Most innovative company
        2006: Brand of the year (brand value 9.13 billion US$, = +14%)

        Apple is about imagination, design and innovation


APPLE                                                                        APPLE
APPLE                                                 APPLE
                                            iRead
   Philosophy
   Vision
       Enrich the customer experience

   Mission
      Bringing the best innovative…
             personal computing and
             integrated digital lifestyle solutions

   Values
   • Empathy for customers
   • Aggressiveness / achievement
   • Positive social contribution
   • Innovation / vision
   • Individual performance
   • Quality excellence
   • Good management




APPLE                                                 APPLE
APPLE                                                                  APPLE
                                  iRead
   Strategy
   • Design and develop hardware, operating system, application software
     and services with superior ease-of-use, seamless integration and
     innovative industrial design.

   • The company beliefs continuous investment in R&D is critical to
     facilitate innovation of new and improved products and technologies.

   • Capitalize convergence of digital consumer electronics and the
     personal computer by creating iPod, iTunes, Apple-TV and iRead.

   • Expanding the distribution network to effectively reach more of our
     targeted customers and provide them with a high quality sales and
     after-sales support experience.



APPLE                                                                      APPLE
APPLE                                                                                                   APPLE
                                                          iRead
   SWOT analyses
   Strengths                                                       Weaknesses

   Size                                                           Another device
   No waste                                                       More vulnerable than (news)paper
   Always in time delivery                                        Reading one at a time
   Environment friendly
   Good reading, even with sunlight
   No delivery boy needed (shared need for newspapers)
   Easy to use (apple scroll wheel)
   Gadget looks
   Files can be uploaded to the device (contracts, reports,
   etc.) (business men)
   Hardcopy can be printed
   Wireless connection with computer
   Apple brand
   Low power consumption
   Best of breed (Irex and Polymer vision)
   Inductive loading of batteries



                              Another device will combining several functions into one in the future.
                                        Always all information at hand, nothing gets lost




APPLE                                                                                                   APPLE
APPLE                                                                                                    APPLE
                                                          iRead
   SWOT analyses
   Opportunities                                                   Threats
   Magazines                                                      Other team/other companies
   Comics                                                         PDA
   Books                                                          Blackberry
   Emerging markets                                               Free newspaper on railway stations
   Active on internet (sending)                                   Cooperation of newspapers
   MP3 player (integration potential)
   Storing space for other things (Photos, etc.)
   Different sizes
   Connection to free newspapers
   European subsidy
   School books (pdf format)
   Advertising




                                             Integrate several functions into the iRead
                                            Subscribtions will increase sales newspapers




APPLE                                                                                                    APPLE
APPLE                                                                      APPLE
                                   iRead
   Innovation
   • Business model: sell iRead together with subscriptions newspapers,
     magazines, etc.
   • Product performance: easy to use roll-able easy to read screen
     displaying online information (newspaper) and infotainment.
   • Service: always up to date by using wireless connection to data-
     provider.
   • Channel and customers experience: operating new own stores and
     building them in desirable high-traffic locations and city-centers, the
     company is able to better control the customer retail experience and
     attract new customers.
   • Future innovations: increase memory, possibility for sending
     documents, integration with other products. Schoolbook.




APPLE                                                                      APPLE
APPLE                                                      APPLE
                                                   iRead
   Personas
   Martin
   •    33 years old
   •    Home town: New York
   •    Car: Jeep Cherokee
   •    Voting preference: Republican Party
   •    Education: Business Economics / University
   •    Career: Manager Bank of America
         –   Income 85.000 Dollar
         –   Underground/subway to work
   •    Civil status: Just married
         –   One child
   •    Values in lifestyle
         –   Family man
         –   Quality is important
         –   Wants to be good informed
         –   Good health and good looks are important
   •    Hobby‟s: Sports
         –   Rowing
         –   Lacrosse
         –   Golf




APPLE                                                      APPLE
APPLE                                                                                                              APPLE
    „On Target‟ segmentation iRead                                            Tech Innovators (7%)
                                                                              Latest Technology
              Selectives (8%)                                                 Age: 2/3 below 35, 65% male
              •
              Balanced Choices
              Age: 61% in 25-49, 60% Female.
                                                            Potential         High Income
                                                                              Early adoption
                                                                              Integrated systems
              Sensible Consumers
                                                                              Try new brands
              Outgoing and achieving,
              but balance with family life
                                                            HIGH        TI
              Design & Functionality
              High potential TV
                                                                                    Hip Innovators (10%)
                                                                                    Design and Newness
                       Classics (19%)                                    HI         Age: 62% below 35
                       Best buy                                                     Express myself
                       Age: 40% in 35-49, Families                                  Connected to PC
                       Highly educated                                              Entertainment
                       Responsible & Efficient
                       Pragmatic & Price-conscious
                                                        S                           Brand=recognition

                       Connected to PC
                       Easy to use, durability


                                      RESPONSIBILITY                         W                 ENJOYMENT
                                                            C
                                  Basics (16%)                                Wannabes (8%)
                                  Value for Money                             Aspiration
                                  Age: 43% 50+                                Age: 47% below 35
                                  Simple Products           B                 Very aspirational
                                  Reassurance                                 Eager to enjoy all aspects of life
                                  Convenience                                 Brand for show-off & status
                                  Not connected to PC                         Not connected to PC
                                  Price                                       Early majority in attitude
                                  Brand=reassurance
Uninvolved (32%)
Low price                                                   LOW
Brand=Not important                                     U
APPLE
 CMI Europe                                                                                                        APPLE7
                                                                                                                        6
APPLE                                                             APPLE
                                       iRead
   Segmenting B2C                           Targeting
    •   Geographic segmentation             •   Hip-innovators
         – USA (start)                      •   Tech-innovators
    •   Psychographic segmentation
         – High quality of life
    •   Behavioral segmentation
         – Brand loyalty
         – Gaining the latest information




APPLE                                                             APPLE
APPLE                                                             APPLE
                                iRead
   Positioning

   Technical competence / Company reputation




         The iRead offers the best readability at all places at all
        times among all hand held devices, because the size and
        quality of the screen are optimal and the information can
                     be lively and wirelessly updated.




APPLE                                                             APPLE
APPLE                                                                                   APPLE
                                            iRead
   Marketing mix
   •    Product                                •    Promotion
         – Newspapers on iRead                       – Sales promotion
         – Documents on iRead                               • Apple store employees
                • iDoc tab in iTunes                        • Website
         –   Right handed and left handed            – Advertising
         –   Low variety of products                        •   Time magazine
         –   High quality                                   •   Forbes
                                                            •   Playboy
         –   Apple design                                   •   Newspapers (partners)
         –   Possibility for attributes              – Direct marketing
         –   Registered Trademark: iRead                    • Apple stores
         –   Small size                                     • Website
         –   High storage possibility                       • Universities
         –   Apple Services                          – Events
                                                            • Macworld
   •    Price                                               • CES
         – List Price (499 dollar)
         – Discounts newspaper subscription    •    Place
                                                     – Apple stores/network and
                                                       distribution channel

APPLE                                                                                   APPLE
APPLE                                                                                             APPLE
                                                      iRead
   Results market research
          Hoeveel papier gooit u wekelijks weg? (kost ook geld in
         Nerderland, afval per kilo)                                       o 1 – 3 kilogram

            Welk formaat leest u graag?                                   o A4

            Hoe lang bewaart u een krant?                                 o 1 dag

            Hoe lang bewaart u magazines?                                 o 1 maand

            Neemt u de krant mee tijdens reizen?                          o Soms

            Hoe ervaart u advertenties in kranten?                        o Valt niet op
                                                                           o Maakt niet uit

            Betaald u voor uw oud papier afval per kilo?                  o Nee

            Heeft u vaak een (te) zware (boeken)tas?                      o Nooit

            Is Apple een merk dat je aan vrienden zou aanbevelen?         o Waarschijnlijk wel


          Wanneer er een product op de markt komt dat draadloos
         data (kranten, documenten, etc.) kan downloaden van het
         Internet en dit op een zeer leesvriendelijke manier in handzaam
         formaat (A4) kan aanbieden, lijkt u dit dan interessant?          o Ja, zeker

            Zou u uw vrienden attenderen op een dergelijk product?        o Ja, zeker


                                  Net Promotor Score 4
APPLE                                                                                             APPLE
APPLE                                                                                                                                                                                    APPLE
                                                                                 iRead
 Benefits                                                    Reasons to Believe                                                           Discriminator
 •   No waste                                                •   Good quality (brand)                                                     • New technology
 •   Easy information device (easy access to latest news),   •   Connected to the newspapers (partnership?)                               • Good design
 •   Good readability also in sunlight                       •   Subsidies of European Union/environmental friendly                       • Easy to use
 •   Personal settings possibility                           •   Well known businessmen have it (promotion)                               • Brand (Apple)
 •   Nice gift/relation gift (expensive)                     •   Simplicity                                                               • High Quality
 •   Easy to use in all places (portable)                    •   Internal memory                                                          • Market access, Apple marketing
                                                             •   Small weight                                                             • Scroll wheel (Apple)
                                                                                                                                          • Colour screen
                                                                                                                                          • Inductive loading of battery

 Competitive Environment                                     Target                                                                    Consumer Insight
 • Philips                                                   • Tech innovators                                                         “If I want to get the news it is hard to read my laptop or other device
 • Free newspapers on railway stations                       • Hip innovators                                                          in the sunlight, when I read the newspaper I am aware of the fact that
 • Other newspapers (NRC next)                                                                                                         it produces lots of waste. Now I can read the latest version of the
                                                                                                                                       newspaper and other documents at all places at all times, even in the
 • Competition is planning to bring colour in their
                                                                                                                                       sun.”
   product as well
 •PDA, Black berry market




 Visual impression                                           Marketing Concept:
                                                             Designed Around You                                Experience                                       Advanced
                                                             • Now you can enjoy your newspaper and             • Newspapers are Automatic and wireless          • Latest technology on digital paper.
                                                               other documents where and whenever you             uploaded to my iRead
                                                               like!                                            • Documents can be wirelessly send to my
                                                                                                                  iRead from my PC




APPLE                                                                                                                                                                                    APPLE
APPLE                                                                                               APPLE
                                                  iRead
   Production process

   Where: Apple China facility.
   How: Traditional assembly process



                                     Buffer                            Buffer
                                   inventory                         inventory

         Screen components                        Other components               Finished product




                             External suppliers




APPLE                                                                                               APPLE
APPLE                                                                 APPLE
                                 iRead
   Production process
   • Advantages
   • New technology, no initial competitors  no major price erosion.
   • Main components manufactured in China.
   • Scalability, labor cost and continuous product development to reduce
     cost per product.
   • Apple already has a production environment available in China.

   • Risks
   • Problems with components (eInk screens)Local
   • government / local legislation.
   • Risk of copying technology.




APPLE                                                                  APPLE
APPLE                                          APPLE
                               iRead
   Context diagram

    Contexts
               - Quality
               - Cost
    Agile      - Leadtime      Service level
               - Quality
               - Cost
    Lean       - Service level Cost
               Qualifiers      Winners



   • Startup phase  Agile qualifier
   • Mass production  Lean winner


APPLE                                          APPLE
APPLE                                                                      APPLE
                                     iRead
   Supply chain strategy




                                                       Hybrid
                                     Lean              De-couple through
   Supply Chain
                     Long leadtime   Plan & Optimise   postponement
   characteristics
                                     Kanban
                                     Continuous        Agile
                     Short leadtime  replenishment     Quick response
                                     Predictable       Unpredictable
                     Demand characteristics




APPLE                                                                      APPLE
APPLE                                               APPLE
                         iRead
   Human resources management

   • Train employees in Apple stores to sell iRead.
   • Recruit and train people in China to assembly new
     product
   • It is fun to work for Apple: employees will act as
     pilot users of iRead.
   • Make Apple employees aware of iRead and
     provide them with access to iRead at reduced
     price, cf. ambassadors.


APPLE                                               APPLE
APPLE                                                      APPLE
                               iRead
   Finance
   million US$
                                  2008          2009
        sales:                    249.5 1       1995.0 2
        cost of sales:            180.0         1177.0
        gross profit:              69.5 (28%)    818.0 (41%)
        S G & A:                   40.0          110.0
        Operating profit (EBIT)    29.5 (12%)    708.0 (35%)


   1 0.5 million x US$ 499,-
   2 5.0 million x US$ 399,-




APPLE                                                      APPLE

				
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