Feasibility of Ipod : Feasibility of Ipod Slide 2: Manufacturer – Apple Inc.
Invented-- Tony Fadell
Launched on October 23, 2001
Type – Portable Media Player (PMP)
Units Sold – Over 150million as of March 2008
Online Services – iTunes Store
Different Models Available:
iPOD Shuffle; iPOD Nano
iPOD Classic; iPOD Touch About the iPOD Portable Media Player : Portable Media Player A portable multimedia player (PMP), is a consumer electronics device that is capable of storing and playing digital media.
PMPs are capable of playing digital audio, images, and video. A color LCD screen is used as a display.
PMPs are usually packaged with an installation CD/DVD that inserts device drivers and allows transfer of files between the computer and the player.
The data on a PMP is typically stored on a hard drive, micro drive, or flash memory. The storage sizes vary anywhere between 256MB to 320GB.
Operating interfaces usually include wheels, touch pads or 5 way pads for navigation.
Worldwide shipments of portable media players (PMPs) have been predicted to grow at a 30 percent annualized rate over the next five years.
PMPs, which play back video as well as audio, will reach shipments of 132 million units in 2011, driven by consumers upgrading from MP3 players and the popularity of new Web sites that offer downloading of free short video clips.
Flash memory's merits, such as durability, small form factor and low power consumption, make it the preferred storage medium for video PMP manufacturers. iPOD MODELS : iPOD MODELS Competition : Competition Slide 6: Competitors Analysis with Product mix iPOD Market Share : iPOD Market Share iPOD Sales : iPOD Sales SWOT Analysis : SWOT Analysis Strengths –
Sales of its iPod music player had increased its second quarter profits to $320 (June 2005).
The favourable brand perception had also increased sales.
So iPod gives the company access to a whole new series of segments that buy into other parts of the brand.
problems with early iPods that had faulty batteries, whereby the company offered customers free battery cases.
As Ipod is a class product so it is expensive has a limited market.
Apple has the opportunity to develop its iTunes and music player technology into a mobile phone format.
Downloads are available via a USB cable, ands software on the handset pauses music if a phone call comes in.
The biggest threat to IT companies such as Apple is the very high level of competition in the technology markets.
Being successful attracts competition, and Apple works very hard on research and development and marketing in order to.
There is also a high product substitution effect in the innovative and fast moving IT consumables market.
Tomorrow's technology might be completely different. Wireless technologies could replace the need for a physical music player. STPD Analysis : STPD Analysis Segmentation
Males and Females
16 to 25 Years of Age
Monthly Household Income of Rs. 20000 and above
People who have a passion or interest in music and/or literature.
iPod is a necessity with travelers, teenagers, fitness fanatics, students, business executives and, yes, even grandmas and grandpas.
iPod break the rules of staying with one target audience.
iPOD is positioned on the following variables: Innovation, Quality, Technology, Trendy and Market Leader
iPOD falls under the Level 3 type of differentiation.
Channel Differentiation -- iPODs are sold through – e-tailing, Modern Trade, Multi Brand Outlets (MBO), Shop-in-Shop
Image Differentiation -- Apple Inc’s iPOD is easily differentiated from its competitors thanks to its world renowned image Pest analysis : Pest analysis Political Factor
The Only political factor which can effect the sales of Ipods is the Taxes which can reduce the margins.
Peer-to-peer file sharing applications like Napster and later Kazaa were extremely popular (and they worked).
Essentially these services allowed people to download media (songs, movies, etc.) for free.
There were huge protests from the recording industry (both the recording companies and artists).
Everyone from college students to investment bankers were getting arrested for downloading pirated media.
Napster was eventually shut down (and is now re-opened with a legal subcription model).
A legal way to download media was indispensable at that time.
The popularity and proliferation of the internet had made people accustomed with the limitless choices available for any activity.
Suddenly, people had the ability to selectively read any newspaper in the world.
Selection, choice and personalization were the key trends.
While the MP3 compression technologies had enabled people to have thousands of songs, the flash memory-based MP3 players of that age restricted the users from leveraging the technology.
The MP3 players were small enough to be. carried in pockets, but the ability to have only a limited number of songs with them was a big restriction. Product Life Cycle : Product Life Cycle Product Life Cycle : Product Life Cycle iPOD Price : Price Ipod will use cost base method to derive its prices.
They will add a 65% profit margin to the cost of the product to gain efficient revenue.
Price and quality interactions –
- In this way, price creates perception of quality.
- High price attract an image of quality
- This will allow Ipod to increase its market share Promotion : Promotion By promoting the Apple Ipod this will satisfy the needs of the customer’s and business. Consumers will gain better understanding of the product and how it can satisfy their needs, but on the other hand will help Apple Ipod increase their profits and market shares.
Advertising - Apple Ipod will spotlight on a successful advertising campaign comprising of magazine and television advertisements focusing on:
- The target market (teenagers and young adults)
- How often they want the target market to be exposed to the advertisement
- When they want to reach their target market
- Most cost efficient methods to fulfil the above
By doing this Apple Ipod will add value to their product by altering consumer perceptions
Below-the-line promotions – Apple Ipod will use a direct method to induce customers to purchase their product by offering any Ipod accessory per customer for half the value price with every purchase of a new Apple Ipod. This will allow the business to directly measure the success of the campaign by observing the sales rate of the promotional tool. Place : Place Distribution channels – Apple Ipod will use indirect distribution where an intermediary organization will be involved in the process. The intermediaries will provide functions such as:
- Fragmenting bulk supplies of inventory
- Give financial services to retailers
- Increase ease of customer purchase
This will assist Apple Ipod as they can concentrate on other areas of the business
Transportation – Apple Ipod will lease trucks in order to transport the inventory to intermediaries. By leasing the trucks Apple Ipod will accumulate extra funds to utilize else were.
Warehousing – inventory will be kept in a warehouse close to the intermediaries which will minimize transport costs. Implementing, Monitoring and Controlling Comments : Comments The IPod is one of the world's most popular portable digital music players, with more than 15 million sold since they were introduced.
But makers of mobile phones are targeting the device -- unveiling models that feature not only phones, but onboard music players so users can download their music from services directly to their phones.
Both Sony Ericsson and Nokia have models, and more are being made by others, including Samsung and Motorola, which is working with Apple directly. Recommendation : Recommendation Apple Ipod Company will change because of the new added features to the product range.
For its success, Apple Ipod Company must impose several key changes. Production needs to be on time and meet the quota demanded from wholesalers.
It must also be efficient so as not to build inventory stocks and inventory prices.
The marketing needs to be motivated and knowledgeable about the product.
The forms of promotion such as advertising must be attracting and enticing to the target market to get the greatest amount of exposure possible for the product. This will ensure the success of the product in the stores.
Distribution of the product must be efficient. This problem has already been taken care of with convenient transport routes to commercial areas and transport already being arranged.