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S T R A T E G I C B R A N D M A N A G E M E N T – U . C . B E R K E L E Y

F I N A L P R O J E C T :

P A N I N E E P U T W A N P H E N

M A R C H 2 0 1 0

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Agenda : RecommendationiPadApple overview

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Apple Brand Equity

Key Success Factors and Competitive Advantages

Apple Core Values

Apple brand persona

Source: Interbrand 2009

Best Global Brands in 2009

1. Coca-Cola 68,734 ($m)

2. IBM 60,211 ($m)

3. Microsoft 56,647 ($m)

4. GE 47,777 ($m)

5. Nokia 34,864 ($m)

6. McDonald's 32,275 ($m)

7. Google 31,980 ($m)

8. Toyota 31,330 ($m)

9. Intel 30,636 ($m)

10. Disney 28,447 ($m)

20. Apple 15,433 ($m)

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Apple share price since 1984

iPod

Jobs becomes permanent CEO

iPod Nano , Video iPod

Intel partnership

iMac Core Duo

iPhone

Mac III and Mac SE

Powerbook100

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KSF’s SCA’s

•Access to technological expertise•Ability to manufacture hi-tech products•Distribution channels (direct and retail)

•The user friendliness and innovative design of their products•Their creative marketing/advertising

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Design and innovation

Ease & simplicity

quality

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What is Apple iPad?

Where is iPad in the market?

Who are their Competitor ?

Who are their target market ?

What are iPad’s Pricing and Channel Strategy ?

Recommendation

Apple iPad

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NATURAL size to watch and read

- 9.7 inch LED screen - large size screen for tablet device- 1.5 pounds- 1/2 inch thin in size

Full capacitive multi touchConnectivity

Wi-Fi and 3G supported

Web, Email, and Maps

Battery Standby time: Over a monthUsing time: 10 hours

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Ebooks and Publishing FeaturesThrough iTunes and iBooks App, anytime users can download and use it.

TV, Movies and Video

Game ,EA and others are going to build some amazing games on this platform. there’s already a big library in its collection.

Productivity and iWork

More Big Size Screen, More Powerful Sound!

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Brand Name

Master Brand

Slogan

Sleek Design

Magical and Revolutionary Device at an unbelievable price

iPad

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• A Magical and Revolutionary Product at an Unbelievable Price

Brand Position:

• Apple iPad is the best way to experience the web, email, photos and video.

• Hands down.

Value Proposition:

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• To position the Apple iPad as the best way to experience the web, email, photos and video. Hands down.

Vision/Mission:

• Craft the Apple iPad’s brand positioning strategy to focus on driving a new device category by evolving its value proposition

Brand/Marketing Objective:

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Unit Sold for Major Apple Products (by Entry Price)

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iPhone

• Audio/Music• Video Game• Internet Content• phone

iPad

• Book• Newspaper• Magazine• Dynamic Games• Audio/Music• Video• Authoring

(Works)• Education• Presentations

Mac

• Everything But heavier/more expensive

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POP POD

Portable/Mobile device market

•Affordable

•Portable

•Long Battery life

•Internet-based usage

•content consumption

•Thin design

•Enhanced multi-media

√the best device (top-tier user experience) to

enjoy the web, email, photos, and video

√a device that provides more functionality than

that offered by single-purpose e-readers, like

Kindle.

√a device that provides many functions that

users are looking for, including videos, music,

reading electronic books, using maps, etc,

(better than netbooks can)

√a device that have the best design

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Archos 9

Media Tablet

Qooq

Cooking Tablet

HP Tablet

OpenPeak

OpenTablet

Apple iPad Tablet?

Media

Kitchen

1990s 2009 2010

First coming of tablets…• Limited software / ecosystem

• Limited CPU/Gfx performance

• Premium pricing

e.g. Apple Newton, Microsoft Tablet

PC

Why is it different this

time?• More SW choice, but fragmented

• Higher CPU/Gfx performance

• Connectivity (Internet)

• Emergence of App-Store

• New ways to interact (multi-touch)

2010(Mu) 2013(Mu)

Citigroup 1.1-2.3 20.0-70.0

NPD 1.3 2.0

IDC 0.5 1.8

ICD Ultra 7”

Tablet opportunity: Analysts

divided

BenQ

Apple Newton

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Segment Worth (based on size, SPP, willingness to pay)

Lik

eli

ho

od

of

Su

cc

es

s E-readers

NetbooksiPhone/iTouch users

Tablets

Market Data Snapshot:

~75M current iPhone/ITouchusers~40M Netbooks sold in 2009~6M E-readers sold in 2009~1M Tablets sold in 2009

The Netbook is not an experience people are going to continue wanting to have… When they play with the iPad and experience the magic of using it... I have a hard time believing they're going to go for a Netbook.“

---Tim Cook, Apple COO, 2/24, Goldman Conf

“The iPad, though a brand new category of device, already has a market in the millions of iPhoneand iPod touch users.”

----Steve Jobs, Apple CEO

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Affordable

Portable

Long Battery life

Internet-based usage, content consumption &

basic PC Productivity

$299

$199

$399

$499

Sleek Netbook

Ultra-thin Laptop

Content creation and editing

Productivity applications

Effortless gaming and multi-tasking

Netbook

eReaderFixed Function

E-ink screens

Tablet

Convertible

Thinner designs

Longer battery life

Ultra-portable

Netbook usages plus..

Enhanced multi-media

Evolving and Experimental Larger screen7 – 10.2” Clamshell

Multi-purpose device

Lean-back usage

Touch screen

Flexible

interface

SP

P

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E Ink display and 1-2 week battery life

"The problem is that netbooksaren't better than anything," Jobs said

Amazon recently announced to launch an app store, it would take a while to beat Apple's 140,000-plus list of applications

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Data Producer

Data Consumer

Technologypragmatist

TechnologyEnthusiast

iMac

iBook

iPodiPad

iPhone

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50 Million Units In 2014

We need more than early adopters

Means ….

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Surprise!!!!

Computers are

still too complicated

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* Grandma and Grandpa who rarely

uses a computer?

* Gear heads who love gadgets?

* Book lover and Kindle owners who want more than a one-trick device?

* iPhone ,iPod touch owners who are

comfortable with a touch screen, but want

something bigger?

* Mac owners want a middle ground device

for the coffee table that's bigger than an iPhone, but smaller

than a laptop?

*Student who don’t want to carry heavy

textbook and want to download their e-book anywhere and anytime

they want?

*business person on the go?

?????

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Book lover and Kindle lover

easy to read and more than a book reader device , with

verity selection of e-book and 140,000-plus

list of applications

We will make your life easier

Student

E-textbook with good price and availability plus easy to carry, game, music, movie and internet surfer device (best value device)

Business

presentation, newspaper, business info on the go and movie, book, music on the plane with 10 hr battery

Baby boomer

easy to use device, your grandchild will think you are cool

Gadget and Mac lover

Third device for couch and coffee table and the best way to experience the web, email, photos and video

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Direct sales channels

Online and brick-and-mortar stores

indirect channels

store-within-a-store concept at Best Buy and Apple premium resellers

Over time, Apple’s sales effort could expand to other areas (depends how fast

it ramps)

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Q1’10 Q2’10 Q3’10 Q4’10 2011+

Product: Apple iPad launch event in Feb ’10; inaugurates new category

Positioning: Apple iPad is a unique computing device (between iPhone/iPod Touch and notebooks

Market: Targets an entirely new market

Apple iPad features hammered out for the device launch

Apple kick-starts the developer ecosystem

Apple begins to work with channel partners now that the “secret” is out

Apple iPadavailability expected some time in Q2’10

Continue to improve content for music, media, video and e-books

Add publishing partnerships above and beyond top 5

Consumer Season begins; big advertising splash

Apple iPad success evolves over time in market place

iPad launches on Verizon network and extends carrier partnerships

Apple drives a new market category and solidifies its position as a technology innovator and powerhouse

Consumer Season continues; big advertising splash

Device/Features improve over time; Bolster available music, apps, video and e-books

APPLE iPAD EVOLUTION STARTS HERE

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