iFeel“The most advanced technology ever to be

introduced in an iPod”

Greg Pfeil

Victoria Druckman

Market Research

• Constructed and conducted a survey regarding consumer interest in the iFeel

• “We’re thrilled to report our best quarter ever, with the highest revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO regarding First Quarter sales

– 22,121,000 iPods during the quarter, representing five percent unit growth and 17 percent revenue growth over the year-ago quarter

• Steve Jobs: "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters." with regard to Second Quarter

– $7.51bn revenues (up 43%) and profits of $1.05bn (up 36%) - compared to $5.26bn and $770m the year-ago quarter

– iPod sales grew to 10.64m; 1% units, 6% revenues

– share of the US MP3 market 71%

Competitive Analysis

• Major Competitors– Dell Inc.

– Microsoft Corporation- Zune

– Sony

– Samsung

• Strategies of competitors– Few advertisements

» Focus on product attributes

» Nothing exciting or eye catching

Company Analysis

• User friendly products to enhance the lives of consumers

• Strong relationship with consumers

• Brand loyalty & positive brand relationship with public

Opportunity Analysis

• Competition targets same group» Microsoft’s Zune

• Heavily saturated markets» Mp3 market» Music Market» Video Market» Software Market» Computer Market

• Benefits of product» User- friendly, durability, Apple care, new technology

• Different marketing approaches» Fitness Approach» Wellness Trend

Target Market Analysis

• Target Market: current iPod owners and consumers between the age of 18-35

• Message to target market• User-friendly and hassle free

– Will not be confused when making own playlists

• Appeal:• iFeel “feels” what you are feeling and adjusts accordingly

• What is not being met by competitors?• Technology• Reliability & trust of brand

Consumer Analysis

• Current Customers– Brand loyal– Own other apple products

• Suspect or prospect customers– Athletes– Health and wellness advocates

Objectives

• Generate awareness

• 71% 73% increase in Share of Market• Goal

• Inform public of new product• Explanation of why it is essential to update mp3• Create desire to update current mp3

Strengths

Easy to reach, dedicated consumer base Simple and user friendly Innovative technology, unmatched by any competitor Strong brand image and existing brand name New Genius application for iTunes complements idea of

selecting music to match user preferences Technological boom has left consumers with a desire to be the

most up-to-date

Weaknesses

Current economic state (lowest consumer spending in 25 years)

Brand viewed as higher quality- all might not feel is accessible Apple’s constant introduction of new ipod models may result

in hesitance to invest in this product Product learning curve, some may view as too time consuming

Opportunities

Advanced technology never existed in a similar product Core competency advantage Considered a reliable and trustworthy brand, consumer

confidence (strong positioning) Conquering a new segment of the market

Threats

Weak economy Consumer resistance Competitors offering similar models of the product Cheaper knock-offs Intimidation by technology Disinterest in understanding how the product works

Positioning Analysis

• “Next best thing in technology”• Technologically advanced but still user-friendly

• iPod to the next level– Caters to the consumer’s needs

• Different beyond technology

Product

• Sleek design, mimics iTouch and iPhone

• Unmatched technology from competitors

• Encased in plastic box– Includes headphones, Apple decals, one-year

warranty, user’s manual, in-store tutorial voucher

Pricing

• Tiered pricing levels

• Cost-plus strategy

• Competitive pricing

• Retailers have opportunity to modify- margin of difference absorbed by retailer

Place

• Displayed on Apple website

• Available for in-store purchase or at select retailers

Promotion Strategy

• Personal selling: Educated employees

• Sales promotion: in-store tutorial

• Advertising: Internet, television, viral, print and outdoor media

• Public Relations: Product placement, press release

Specific Action Program

• iTunes store introduction

• Marketing slogan to generate consumer interests– “The most advanced technology ever to be introduced

in an iPod”

Budget

• Tiered pricing: 8G $299, 16G $399

Controls and Measures

• Measure share of market from 2008 compared to 2009 with iFeel

• Surveys regarding customer satisfaction– From tutorial and general product

• Modify marketing plan based on consumer response

Conclusion