innovation at apple
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INNOVATION AT
APPLE
Presented to:- Mrs Kokil JainPresented By:- Rishika SharmaChetna Bhatia
Zarah Dua KhanJaishree
Chaudhary
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INTRODUCTION
Organization of Apple wasestablished in 1976 as a computercompany.
In 2001, Apple broke the barrier withthe iPod, eventually becoming thedominant market leader in music
players.
The unique characteristic aboutApple is that it has a very strong
customer base, which is extremely
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PRODUCT LINES
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STRENGTHS
Apple is a very successful company. Sales of its iPod music playerhad increased its profit . The favorable brand perception had alsoincreased sales of Macintosh computers. So iPod gives the companyaccess to a whole new series of segments that buy into other partsof the Apple brand. Sales of its notebooks products is also verystrong, and represents a huge contribution to income for Apple.
Brand is all-important. Apple is one of the most established andhealthy IT brands in the World, and has a very loyal set of
enthusiastic customers that advocate the brand. Such a powerfulloyalty means that Apple not only recruits new customers, it retainsthem i.e. they come back for more products and services fromApple, and the company also has the opportunity to extend newproducts to them, for example the iPod.
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EAKNESSES
It is reported that the Apple iPod Nano may have a faultyscreen.This is in addition to problems with early iPods that
had faulty batteries. Early in 2005 Apple announced that it was to end its long-
standing relationship with IBM as a chip supplier, and that itwas about to switch to Intel.
There is pressure on Apple to increase the price of its musicdownload file, from the music industry itself. Many of thesecompanies make more money from iTunes (i.e.downloadable music files) than from their original CD sales.Apple has sold about 22 million iPod digital music playersand more than 500 million songs though its iTunes music
store. It accounts for 82% of all legally downloaded music inthe US.
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ES
Podcasts are downloadable radio shows that can bedownloaded from the Internet, and then played back oniPods and other MP3 devices at the convenience of thelistener. The listener can subscribe to Podcasts for free, and
ultimately revenue could be generated from paid forsubscription or through revenue generated from sales ofother downloads.
A version of Apple's iTunes music store has beendeveloped for the phone so users can manage the tracksthey store on it. Downloads are available via a USB cable,
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THREATS
The biggest threat to IT companies such as Apple is thevery high level of competition in the technology markets.Being successful attracts competition, and Apple works veryhard on research and development and marketing in orderto retain its competitive position. The popularity of iPod and
Apple Mac are subject to demand, and will be affected ifdemand falls for their products.
There is also a high product substitution effect in theinnovative and fast moving IT consumables market. So iPodand MP3 rule today, but only yesterday it was CD, DAT, andVinyl. Tomorrow's technology might be completely different.Wireless technologies could replace the need for a physicalmusic player.
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PRODUCT INNOVATION ATAPPLE
AND ITS MARKETINGSTRATEGIES
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TOP 10 APPLE INNOVATIONS
1) iPod
Apple's personal musicplayer, launched in2001,
was by no means thefirst MP3 player,
'
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2) Graphical User Interface
Apple built on the pioneering work of theteam at Xerox Parc
to produce the first commerciallysuccessful computer to use a graphicaluser interface -- the Macintosh.
Launched in 1984 with Ridley Scott'sfamous advertising campaign, ushered ina new dawn of accessible computing.
It used a "desktop" metaphor to guideusers around the com uter with
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3) iMac
Appeared in 1998
Marked as apples major tech player. Under the guidance of chief designerJonny Ive, Apple ripped up the
computer design rule book, doingaway with dull beige boxes andinstead replacing them with fun,translucent machines in shades suchas "Bondi Blue" that hinted at the
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5) Mac OS X
While Microsoftcontinues to sell morecomputers than Apple,critics have regularlyargued that its Windows
o eratin s stem lacks
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7) Newton
Before the iPhone was even a twinkle
in Steve Jobs' eye came the Newton,a touch-screen personal digitalassistant.
Commercially, the Newton was adamp squib, but it is still fondlyremembered by long-time Appleusers for its neat interface
and handwriting recognition.
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9) Keynotes
Apple has turned the product launchin to an art form. Steve Jobs'attention to detail ahead of keynotespeeches and product unveilings islegendary -- every aspect of the
presentation is rehearsed andrehearsed to ensure all participantsare pitch-perfect.
10) MacBook Air
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APPLES MARKETINGSTRATEGIES
1. Ignore Your Critics
Apple decides to flip the script andinstead focus on building what theywant to build, no matter theperceived cost.
Each and every time Apple decidedto innovate, they were laughed at.
They prevailed anyway.
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3. Justify Your Price
Once more, Apple ignores the standard by not only pricing their technologymore than 2x what their competitors charge, but doing so without blinking.How can they get away with it?
Well, the answer is twofold:
1. They build beautiful products for an audience that loves them passionately.
2. They justify their price with features and benefits that cant be matched.
No other computer can match the display of a 27 iMacit simplycant be done.
No other software can match what iTunes brings to the table.
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4. Communicate in the Languageof Your Audience
It makes no sense to talk aboutthings like megabytes, gigahertz, andprocessing power to customers thatsimply dont care about technical
jargon. Take a look at any Apple product
page and youll find that though they
do discuss product specifications and
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5. Extend the Experience
After Apple packaging post-sale,there are legions of people thatrecord the actual process ofunwrapping their newly purchasedApple products.
Do a search on YouTube and youll
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6. Build a Tribe
Its no secret that Apple has builtone of the most hardcore fan basesof any product and of any time.
Theres a reason theyre calledfanboys.
They know that they serve an eliteaudience, and rather than back awayfrom that fact, they embrace it.
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7. Become The Name
You dont buy tissues, you buyKleenex.
You dont buy MP3 players, you
buy an iPod.
You dont buy a smartphone,
you buy an iPhone.
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PromotionalTools
Advertising
Sales Promotion Public Relations
Direct Marketing
Advertisem
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Advertisements
S l P ti
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Sales Promotion When it comes to Sales Promotion, Apple knows best.
Apple uses promotional methods using special short-termtechniques to persuade members of a target market torespond or undertake their products.
Examples of certain methods :Apple uses for salespromotions are money back guarantees, lower purchase
price and rebates etc.
The Apples stores are very distinct and captivating frommany other electronic stores because they display all of theirproducts for consumers to experience hands- on.
Consumer's are allowed to surf the web on any of theircomputers, listen to the latest ipods, and experience theiPhone and its features. This lets consumers get comfortablewith the products and familiarize themselves with it. This is
a major consumer sales promotion that Apple hasdeveloped.
When it comes to Sales Promotion, Apple knows best.
Apple uses promotional methods using special short-term
techniques to persuade members of a target market torespond or undertake their products.
Examples of certain methods :Apple uses for salespromotions are money back guarantees, lower purchaseprice and rebates etc.
The Apples stores are very distinct and captivating frommany other electronic stores because they display all of theirproducts for consumers to experience hands- on.
Consumer's are allowed to surf the web on any of their
computers, listen to the latest ipods, and experience theiPhone and its features. This lets consumers get comfortablewith the products and familiarize themselves with it. This isa major consumer sales promotion that Apple hasdeveloped.
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Public Relation
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Direct Marketing
Apple uses email
marketingextensively todeliver targeted
information to its
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Competitive
PositioningThe internationalcourt ruling that
HTC has infringedon Apples patentshas brought Appleand Android to an
importantcrossroad that willlikely impact themobile segment
for a long time.
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Companies involved in mobile tech turn topatents to protect research and innovation
from being used by competitors. Apple and HTC are going head-to-head
currently over patent infringement, and theformer has won its first victory in court where
it has been determined that HTC hasimproperly used Apples IP in some of itsAndroid smart phones.
If Apple puts HTC out of the
Android device business, its next
order would likely be to go after
Samsung. Samsung is coming on
http://www.zdnet.com/blog/btl/htc-pressure-mounts-to-develop-workaround-to-avoid-apple-patents/52545?tag=mantle_skin;contenthttp://www.zdnet.com/blog/btl/htc-pressure-mounts-to-develop-workaround-to-avoid-apple-patents/52545?tag=mantle_skin;content -
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Apple's designs are, well, elegant.
There is no better word for it.
Sony and Toshiba can come close attimes, but, on average, Apple has thebest-designed hardware from an
aesthetics point of view of anyvendor.
It is amazing that, after several
years, no one has been able todesign a better hard-drive-based MP3player than Apple did with the iPod.
Even Toshiba's design, which used
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