situation anlysis of ipod

ADVERTISING MANAGEMENT : 

ADVERTISING MANAGEMENT SITUATION ANALYSIS ON APPLE I –POD

CONTENTS : 

CONTENTS Executive Summary Introduction to apple I- pod Situational Analysis- Market & Consumer Analysis PEST Analysis Competition Analysis SWOT Analysis

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Executive Summary : 

Executive Summary The focus of this report is on new Apple Ipod product that has created increasing demands in various outlets. This product allows consumers to download not only their favorite music but also books and other literature which can be read and listened to. Additionally this Ipod can be used in your car and in other mobile settings. This report is for Apple to give a brief description of this product. Within this report there is an insight of the situation analysis of this product.

Market & Consumer Analysis : 

Market & Consumer Analysis Internal Influences Management: Effective management is required for the training and development of employees for the continue innovation of Apple Ipod and for retraining sufficient funds during competitor introducing new product. Capital Availability: Competition may cause mishap in the cash flow. Sufficient funds must be available when competitors unpredictably put forward their product in the market. Technological Adoption: Technology must be adopted to improve overall efficiency. It must be integrated directly into operations (to increase productivity), as well stay on date with the amounts of Ipod’s ordered, made and delivered.

Market & Consumer Analysis : 

Market & Consumer Analysis External Influences: Competitors: Competitors will regulate what, when, how and why strategies will be adopted. The introduction of new products will greatly influence Apple Ipod. Overseas Influences: The breaking down of barriers between countries can increase the sales of the new Apple Ipod, as more people are made aware of the product. Demographic Patterns: Males and females from the age of 12years and over will be in favour of this product because of its new innovation to be able to not only play music but also books and other literature which would in fact appeal to them.

PEST ANALYSIS : 

PEST ANALYSIS POLITICAL FACTORS            Copyright Act,1957 outlaw copying music from CD or DVD to a computer and transferring it to a music device. Copying is illegal unless authorisation is given by the copyright owner (section 65). According to LAZARUS, downloading and uploading cinematograph films from CDs, DVDs and the Internet are also an illegal act. (section 51 and 63) The Copyright law will poses a serious threat to Apple as the new iPod’s major selling point is the fact that it will enable users to transfer Internet downloaded or CD copied music and videos into the tiny portable player

PEST ANALYSIS : 

PEST ANALYSIS ECONOMICAL FACTORS            Throughout 2008, Economic growth has been strong, average Indian unemployment has fallen  from 9.50 per cent(2004) to 7.1 per cent (2008)(indexmundi.com) Goods and services inflation is out of Reserve Bank’s target range.(12.14%) (ipod price are not affected) There has been an economic expansion with the average growth rate of 8 per cent The strong economy will lead to higher spending power for the individuals, thus increases the opportunity for Apple to maximise profit if it is to launch a new product into this booming economy

PEST ANALYSIS : 

PEST ANALYSIS SOCIAL FACTORS Socio-cultural trends come and go like technology trends, they often begin and end with young people.  In 2004, IPod ownership has increased from 13% (in 2003) to 32% (Siklos 2005). Most of the teenagers nowadays have a high purchasing power and some individuals are very brand conscious, as many teenagers believed that the brand would enable them to fit into a social group

PEST ANALYSIS : 

PEST ANALYSIS TECHNOLOGICAL FACTORS        The constant technological change and development in the twentieth century have impacted on virtually every industry and led to a shortened product life cycle. Since products became obsolete much more quickly than previous , to response to such technological changes, Hargadon (2008) suggested that a company’s new product design should not be focus on inventing completely new technologies but to recombine existing ones.

Competitor Analysis : 

Competitor Analysis Competitor No.1 Competitor Name- Rio Carbon (5GB) STRENGTH Rio Carbon offer their product at affordable prices which appeal to consumer’s while maintaining strong quality WEAKNESS The Rio Carbon is a new competitor in the competition and therefore it may be difficult for them to gain market share because of the unknown brand loyalty

Competitor Analysis : 

Competitor Analysis Competitor No.2- Iriver H10 STRENGTH The iriver H10 out classes the competition in the features that they offer to consumer’s WEAKNESS The iriver H10 comes at a very costly price which may lead customer’s to purchase competitor’s products at an affordable price

SWOT Analysis : 

SWOT Analysis STRENGTH There are enough financial resources that are allocated for the operation of this product. Appealing to both males and females Good competitive skills Past products have had a good reputation Advanced key technology Product innovation skills WEAKNESS The product has a narrow product line therefore unable to expand into other markets High prices may push potential customers to competitors with affordable prices Introducing a new product, when the niche market is already controlled by other competitor’s Poor use of promotional strategy, as consumers were not properly introduced on the products significant use. OPPURTUNITY Opportunity to capitalise financially Develop an admirable/exceptional goodwill that can have monetary value in future Opportunity for fast market growth as parents may see this as an educational device as it is able to read books. Growing market trend THREATS New competitors continually enter the market. The threat of not appealing to target market at all therefore generating a loss as opposed to profit Entry of imitators Vulnerable to the business cycle Tough laws being placed on internet MP3 downloads

Submitted by Group - 7 : 

Submitted by Group - 7 Ritesh Sudhir Nischit Deepak