Danielle MalatestaDanielle MalatestaStephanie FontaineStephanie Fontaine

Likica GrcevaLikica GrcevaEric FrazierEric Frazier

Brian WeymouthBrian Weymouth

The Magic of iPod

http://www.youtube.com/watch?v=4CPab8U5zTU

• Portable media playerPortable media player• Design launched October 2001Design launched October 2001• Focuses on uniqueness and ease of use, rather Focuses on uniqueness and ease of use, rather

than technical capabilitythan technical capability• As of September 2007As of September 2007– Sold over 110 million units worldwideSold over 110 million units worldwide– Bess-selling digital audio player Bess-selling digital audio player

in historyin history

The Apple iPod

• Apple, with the line of iPods, owns the market with a share of Apple, with the line of iPods, owns the market with a share of over 90 percent.over 90 percent.– Technologically superiorTechnologically superior– Establish Brand Equity – There’s no beating AppleEstablish Brand Equity – There’s no beating Apple– Cult StatusCult Status– Instantly recognizableInstantly recognizable

What’s The Magic of iPod All About

• Socks, mohair slipcovers, Socks, mohair slipcovers, “hoodie” sweatshirts, and “hoodie” sweatshirts, and stick-on tattoosstick-on tattoos– Louis Vuitton case $265Louis Vuitton case $265

• 400+ products made of the 400+ products made of the iPodiPod

• Does he have a name?Does he have a name?• ““I’ve heard many stories of I’ve heard many stories of

people who think their iPods people who think their iPods have certain preferences in have certain preferences in music”music”

• Podpoaching - iPod Swap Podpoaching - iPod Swap groupsgroups

• Podjacking – Swaping with Podjacking – Swaping with strangersstrangers

• Culture-shifting effects that is Culture-shifting effects that is changing the way people listen changing the way people listen to musicto music

Accessorizing the iPodAccessorizing the iPod

– – The extent to which a consumer holds strong, favorable, and unique The extent to which a consumer holds strong, favorable, and unique associations with a brand in memory.associations with a brand in memory.

- The extent to which a person is willing to pay more for the branded version of - The extent to which a person is willing to pay more for the branded version of the productthe product

• Reputation and RespectReputation and Respect• Business devicesBusiness devices• Government departmentsGovernment departments• Major institutions Major institutions • International organizations International organizations

• Delivery mechanismDelivery mechanism• Communication Communication • TrainingTraining

Brand EquityBrand Equity

• Brand Personality Brand Personality – is the set – is the set of traits people attribute to a of traits people attribute to a product as if it were a product as if it were a person.person.

• iPod’s PersonalitiPod’s Personality- how it y- how it influences the way people influences the way people listen to music. listen to music. – Luring consumers in with Luring consumers in with

its sleek look and keeping its sleek look and keeping them because of the them because of the status that comes with status that comes with carrying one.carrying one.

Product PersonalityProduct Personality

• To have a personality, it must display the id, ego, and To have a personality, it must display the id, ego, and superego.superego.– Id- Designed to provide gratification to consumer, fulfilling Id- Designed to provide gratification to consumer, fulfilling

the iPod’s desire to have increased sales. the iPod’s desire to have increased sales. • Flashy design, extra features such as video.Flashy design, extra features such as video.

– Ego- Its ability to be affordable. Multiple models allow it to Ego- Its ability to be affordable. Multiple models allow it to reach a vast consumer base.reach a vast consumer base.• Basic model, small Nanos, large video capable models.Basic model, small Nanos, large video capable models.

– Superego- The fact that financial standing does not affect Superego- The fact that financial standing does not affect who owns one. Everyone finds a way to possess one.who owns one. Everyone finds a way to possess one.

Product PersonalityProduct Personality

SanDisk e280SanDisk e280 8GB8GB VideoVideo PhotoPhoto $149.99*$149.99*

iPod NanoiPod Nano 8GB (2,000 songs)8GB (2,000 songs) Up to 8 hours of Up to 8 hours of

videovideo Up to 7,000 Up to 7,000

PhotosPhotos $149**$149**

*sandisk.com, **apple.com

Other High Image Brand Other High Image Brand ComparisonComparison

Competitors of the Apple iPod, in the hard-Competitors of the Apple iPod, in the hard-drive-based mp3 player market, include:drive-based mp3 player market, include:

– SamsungSamsung– CreativeCreative– DellDell– iRiveriRiver

– MicrosoftMicrosoft– And many others…And many others…

CompetitionCompetition

Total Mp3 playerTotal Mp3 player market market..Rank Brand Unit Share Rank Brand Unit Share

1 Apple 72.7% 1 Apple 72.7% 2 Sandisk 8.9% 2 Sandisk 8.9%

3 Microsoft 3.2% 3 Microsoft 3.2% 4 Creative Labs 2.9% 54 Creative Labs 2.9% 5

Samsung 2.0%Samsung 2.0% Total Dollar Volume: $225,288,200Total Dollar Volume: $225,288,200

MarketMarket

• There are two main markets within the Mp3 There are two main markets within the Mp3 player sector:player sector:– Hard-disks Hard-disks • Large capacityLarge capacity– Memory ranges from 20gigs to over 80gigsMemory ranges from 20gigs to over 80gigs

• More ExpensiveMore Expensive– Prices start around $200 and range to over $400Prices start around $200 and range to over $400

– Flash MemoryFlash Memory• Smaller capacitySmaller capacity– Can hold between 1gigs and 8 gigsCan hold between 1gigs and 8 gigs

• Less expensive Less expensive – Price can range anywhere from $100 to $250Price can range anywhere from $100 to $250

MarketsMarkets

• When apple released the When apple released the iPhone in August it wound up iPhone in August it wound up taking potential customers taking potential customers away.away.

• After people purchased an After people purchased an iPhone there was no need for iPhone there was no need for them to have stand alone Mp3 them to have stand alone Mp3 players.players.

Apple fighting itself?Apple fighting itself?

• In the H-D-B market the iPod is king. Within this In the H-D-B market the iPod is king. Within this market iPods have over 90% market share.market iPods have over 90% market share.

• Is that really competition?Is that really competition?

2003

2004

2005

Hard-Drive-Based Mp3 playerHard-Drive-Based Mp3 player

The Lifestyle of an iPod User The Lifestyle of an iPod User

Lifestyle continued…Lifestyle continued…

PersonPerson – iPod users – iPod usersProduct Product – Apple iPods– Apple iPodsSettingSetting – Everywhere! – Everywhere!

• iPod’s haven been able to cater iPod’s haven been able to cater to everyone’s needs. to everyone’s needs.

• Allocentrics vs. Idiocentrics Allocentrics vs. Idiocentrics • Allocentrics – are typically Allocentrics – are typically

more interested in individual more interested in individual entertainment (reading a book, entertainment (reading a book, listening to an iPod) the listening to an iPod) the mobility of an IPod can bring mobility of an IPod can bring this type of entertainment on this type of entertainment on any adventure. any adventure.

Are you and Innie or Outie? Are you and Innie or Outie?

• NY Times October 9NY Times October 9thth, 2007 , 2007 • ““In Some Schools, iPods are Required Listening “– By Winnie HuIn Some Schools, iPods are Required Listening “– By Winnie Hu• Prohibited even Confiscated Prohibited even Confiscated – Able to load answers, math formulas and notes onto iPod.Able to load answers, math formulas and notes onto iPod.

• Jose Martin Middle School in New Jersey Jose Martin Middle School in New Jersey – Help bilingual students with English Help bilingual students with English – Sharpen vocabulary and grammar by Sharpen vocabulary and grammar by

singing along to popular songs.singing along to popular songs.

Breaking News…Breaking News…

““Duke University led the way by outfitting its entire freshman Duke University led the way by outfitting its entire freshman class with iPods that were preloaded with orientation class with iPods that were preloaded with orientation information and even the Duke fight song.”information and even the Duke fight song.”– Also, last spring, 93 courses required an iPod.Also, last spring, 93 courses required an iPod.

Breaking News…Breaking News…

The Brearley School, a private girl’s school, has The Brearley School, a private girl’s school, has used iPods to supplement foreign-language used iPods to supplement foreign-language textbooks and its music, drama and English textbooks and its music, drama and English classes. Every student from 7classes. Every student from 7thth-9-9thth grade is grade is required to buyrequired to buy

or rent an iPodor rent an iPod

Breaking News…Breaking News…