New Product Development

Project Final Presentation

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World Stars Team

ه Deng Xiao Lingه Dzalbo Vladimirه Gerosa Francescaه Halas Denisه Invernizzi Alberto

ه Kaya Gizemه Kwabena Adjeiه Laube Michałه Percuoco Carlaه Scaramella

Adriano

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Introduction

• Company: Apple

• Industry: Consumer Electronics

• Targeted business: News Distribution

• Product:

• Product description: Modern News Distribution System

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Apple Company Analysis - SWOT

• Best period in company’s history• Roaring sales, revenue, profit, market share &

publicityStrengths Weaknesses

Reputation (Apple culture)Customer loyaltyInnovativenessProduct (design, technology, component integration)Visionary ManagementMarket share (iPod, iTunes)Cash reservesEffective marketing strategies

Product compatibilityMarket share (computer systems)Limited product range with comparison to competitors (gaming consoles, PDAs)

Opportunities Threats

Synergies on the consumer electronics marketImmaturity and development of the consumer electronic market: home digital hubsNews market: in the process of great changes

Direct competition on the consumer electronic marketSupplier competition in the music market

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Apple Strategy - NPD

• Company’s success requires action• Great chance – Digital entertainment hubs

ه Microsoft: Windows XP Media Center & X·Box 360

ه Sony: Playstation 3

• Apple & Digital hubsه Front Rowه Mac Mini- Lack of hub elements (gaming console, PDA)

ه New chance for hubs – iNews – News Delivering

Trends in Consumer Electronics

Digitization of life Integration of multiple functions into single devices Portability Miniaturization

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News Market – Value Chain

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News Distribution Market Analysis

• Importance of WWWه News Portals (Google)ه Online newspapersه RSS Feeds (CNN, AFP)

• Companies looking for new ideas

Potential Market vs Innovativeness

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Potential Market

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TV

Radio

Newspaper

Online Newpaper

New Portals

RSS

• Domination of great news agencies• Margers and acquisitions – Global news corporations• High degree of vertical integration• High entry barriers in traditional distribution channels• Lower barriers in new technologies (internet)

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User needs analysis

• People WANT news: growing demand (and supply) for news

• People want THEIR news: the need to customization and filtering of information to fight the overwhelming amounts of data

• People want REAL news: growing difficulty with finding a trustful source of information, necessity to get acquainted with opposing views

• People want news WHEN they want: relatively shrinking amount of time that can be devoted to obtaining information

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Detailed concept description

• iNews – News delivering system allowing users to receive content from prescribed sources, like newspapers, radio or TV

• Two tier systemه iNews Serviceه iNews Interface Device

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iNews – The Service

• iNews platform – iNews Software• All content types

ه Text (Newspapers) , Audio (Radio) , Video (TV)

• Content customization (subscription)ه Source / Category / Topic / Author

Full Corriere della Sera plus cycling and ski news from Gazzetta dello Sport

Financial information from Wall Street Journal, Financial Times CNN World News plus BBC UK Market Summary (TV) Scientific news from New York Times plus all columns by Umberto

Eco News selection from New York Times, Daily News and New York Post

• Target: Supply all major information sources

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iNews Software

Subscribing

Synchronizing

Reading

Listening

Watching

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iNews – The Device

• Device – Variety of possibilities• Maximum compatibility

ه ePaperه Apple-branded iPaperه iNews Software – PCs, iBooks, etc.ه iPod (with text-to-speech converters)ه PDA (Palm)ه Mac Mini (e.g. with TV)

• Great enhancement of the home digital entertainment hub

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iNews – Use Scenarios

• Syncronize your ePaper while preparing to go to work in the morning. While commuting on the train or subway, read the Washington Post, The London Times and La Republica. No paper wasted.

• Synchronize your iPod with iNews and go for exercise while you listen to all today’s sports news and gossips.

• Business trip to Malaysia. Instead of spending long time in an internet café to get all news from markets and the fresh La Stampa, synchronize your notebook or ePaper and read the news in a moment of spare time.

• Company press reviews sent to the employee iNews accounts(e.g. before they leave for work, so they can read the review on the ePapers or listen on the iPods while commuting)

• A selection of your favorite morning TV program modules, e.g. morning talk, general news, market news, local weather (skipping parts e.g. traffic information, as you never commute). All that delivered to the iNews account and then received by the MacMini connected to your TV.

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iNews – Value Chain Positioning

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Business Model

• iNews – News Marketplace• Simple customer-supplier relations

ه Apple: free content hostingه Suppliers: free content offering

• Apple revenue – percentage of content sales• No alliances• No content

filtering

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Segmentation - Targeting

• Segmentation Variables

• Target Segments- Students- Businessmen- Apple users

• Positioning

iNews

Potential Market vs Innovativeness

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Inn

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TV

Radio

Newspaper

Online Newpaper

New Portals

RSS

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Brand

• Considerations:- Customers to associate iTunes with iNews- Representing Apple culture

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Marketing Mix: Promotion Policy

Advertising

Promotion Tools

Public RelationshipsSponsorship

Information to ConveyApple is the very company who devotes itself in improving the

life quality of human being.Apple emphasizes on

impartiality by stressing property rights. Forms and Languages

Free trials (with Apple product purchase)

Free software and accessories for long-period iNews

subscribersFree subscribtion to selected

content for entry-level students of selected

universitiesFree trials for Apple users

Sales Promotion

Information to ConveyExistence of iNews service

Typical characteristics of the service

Convenience and Customization

Necessary part of digital lifestyleForms and Languages

For ManagersAirline Magazines

Lifestyle MagazinesBusiness Magazines

News Channels on TVFor Students

MTV Channel on TVLifestyle Magazines

For Apple UsersWebsite Ads on Apple’s

Website

Communication ObjectivesBrand awareness

Reognition of the service

Forms and LanguagesParticipation in industry

conferneces.Active sponsorship of

conferences in new fileds.Free iNews for top students.

Fund for student scholarships.

Communication ObjectivesBuild up nice company image.

Enhance brand awareness.Gain recognition of public

communities.

Information to ConveyGood chance to try the

excellent service at expenses less than normal.

Communication ObjectvesInduce buying actions

Enhance brand awarenessGain recognition

Promotion objective: Gaining 50% brand recall in targeted segments

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Marketing Mix: Placement Policy

• Internet – iNews website and software

• Future: terminals at airports, news agents, supermarkets

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Marketing Mix: Pricing Policy

• Article-basedه Single articles purchasedه Price variables: content source, type, length, etc.ه Discounts: Full Newspaper, Single Category ه Price levels: competetive to traditional sources

• Subscription-basedه Periodic subscription to a specified content sourceه Competetive to traditional sources, comparable to online

subscriptions

• Discounts for enabling advertisements

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Project planTASK NAME TIME COST

Negotiations with suppliers FROM DAY 1 TO DAY 205 150 K€System architecture

Specifications

Hardware

Software

Website

System integration and testing

FROM DAY 1 TO DAY 182 1200 K€

iNews device interface architecture

Third side company negotiations

iPod upgrading

FrontRow upgrading

FROM DAY 31 TO DAY 57 150 K€

Technical test FROM DAY 260 TO 290 100 K€Test marketing FROM DAY 291 TO 330 250 K€Launch

Website launch

Promotion efforts

Launch tracking

FROM DAY 331 TO 460 1200 K€

iNews – The New(s) Revolution

Thank you for attention.

Give us your questions please!