Entrepreneurial Innovation at Retail Stores: Case Apple iPhone for the City©

(with Simulation Instructions)
“We need to expand our product line. There are quite a few clever boys in the class for the final game of cell phones. Apple, Google and Nokia from the West, and Samsung from the East are stealing the show. We should not miss the show. In fact we should also become active supporters of one or the other clever guy.” These words were part of the preparation Retail Manager Appu had just made for the meeting of the next morning.

1. Introduction
The manager Appu leads a major retail store in the city, which is specialized in audio and video electronic goods, and now looks forward to expanding his business with cell phones. Considering the high market position of Apple iPhone in the USA and outside, he was fancying the idea of adding this specific product line. There already existed a number of stores for cell phones in the city, yet there was no major store for iPhone. Thus the manager liked to expand the store‟s existing competitive position further by including the new product line. As to how this has to be done was a challenge to Appu. Appu had heard much about Apple Stores in the USA. He was wondering whether his concern to capture the Apple iPhone market was similar in any way to that of Apple Stores. Some general background to the product and the stores could be found, he thought. With these thoughts in his mind, he started to look forward for paving the way for a product range as advanced as that of Apple iPhone; see Figure 1.

Apple – iPhone – TV Ad – iPod & iTunes

(This and other Hyperlinks may have to be Edited. Then you have to download video and picture files using separately supplied information from inpaqt.assignment@gmail.com)

Figure 1
Dedicated fans’ Apple iPhone ▼

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Many Smart phones in the market

A number of competitive products in the offer, some already delivered through other shops in the city, however, made the choice even more complex. For the sake of comparison the manager asked one of his sales staff to make a brief survey especially of the new generation of smart phones. The survey revealed that the idea of taking up Apple iPhone need not be the obvious and the best. The competitors‟ range of comparable products is broad as listed in Figure 2. Whether he could develop some views on the product for

iPhone Competitors

Competitors iPhone

Figure 2
Competitors’ products against Apple iPhone ►

Figure 3
A range of products at Apple Store ▼

the future, which was not wholly in his hands, was a separate issue. However major principles behind the success of this product in the USA could be explored. Some of these principles were visible in the Business Case he had come across in one of the meetings of the local Chamber of Commerce. It was then told that the case “Apple‟s products” was an interesting one to discover scopes for improvement in marketing and sales, or innovation. It was apparent also for his business: see Apple products in Figure 3 and Apple Store in Exhibit 1.

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and Apple is able to project that personality across all these channels by maintaining rigorous consistency of design. The Apple stores are no different. The store is organized by the context in which people use the products. Prioritizing its messages. the new business could now be scrutinised in only two workshops. Japan. The Apple personality comes through every time the customer encounters the brand. 3 . 4. Creating an experience. Make a list of customer value propositions and how we can position this product line in that market.iPhone 4 . The workshops need be attended by a few persons including the retail manager himself. and attention to the line of sight so that it feels more like walking into a hands-on museum than walking into a retail store. customers can envision using these products in their own lives. This is accomplished through the striking glass staircase. All persons were considered responsible for taking a decision on the needed innovation beyond the product to marketing and sales. Apple store employees don’t look like run-of-the-mill retail workers. Thanks to the involvement of a specialist on innovation. Instead of name tags. 5. The people who staff the store form an integral part of the overall experience. By acknowledging the context in the design of the store. in print or outdoor advertising. The store is visually spare with product packages kept below eye level. The design of stores taken into account: 1. or through interacting with one of Apple’s products. The first stores were opened in May 2001 and were designed for two purposes: to stem the tides of Apple’s declining share of the computer market and to counter a poor record of marketing Apple products by third-party retail outlets. 2. and the United Kingdom. Designing for change. and relatively few products on display. The front window displays are rigged using simple flat panels mounted on tracks and cables. The store focuses on a handful of important messages. Instituting consistency. With digital cameras. 3. The assignment of the workshop was thus specified. The stores carry most of Apple’s products as well as many third-party products and offer on-site support and repair for Apple hardware and software. they have business cards. whether on television. store design. And they all carry iPods on their belts. Which market to serve and how? Assignment Identify the most promising market segment(s) for the new Apple iPhone product line. and Apple’s iPhoto software set up together. Canada. Not forgetting the human element. photo printers.TV Ad App Store Exhibit 1 Case Apple Stores and product exhibits ▼ Apple stores As an extension of its brand experience. The system allows the displays to be changed quickly and easily while still allowing a diverse range of possibilities for grabbing the attention of passersby.Apple . Apple encourages its customers to dream about possibilities. creating the impression that they don’t just work for Apple – they live the lifestyle Apple is selling to customers. Apple operates retail stores in the United States. Honoring context. 6. Apple’s retail workers are brand emissaries.

Such functions are critical to the proposed business. thus they need to be exploited through undertaking appropriate innovation activities. In the discussion that took place between the team and the advisor prior to the first workshop. culture. ► 2. formulated by customers and retailers. Figure 4. 3. Costs such as price and related maintenance. By taking this step we can get insight as to which functions create most value for the customers and with which we can differentiate ourselves from the competitors. 4.Collaboration with INPAQT expert In order to ensure that the participants stood open to signals from outside and that the internal discussions did not go on for ever. Availability and accessibility. software tools and simulations for innovating businesses. INPAQT of the Netherlands. which should fulfil the proposed values.com Figure 4 Customers’ values could be diverse depending on demography. Functionalities. The advisor belonged to a reputed consultancy firm. of the products or services. and 6. also called customer value propositions. UNLEASHING YOUR POWER TO INNOVATE! www. the following was agreed upon as stated by the advisor.inpaqt. package. 4 . and price. Life span. active participation by the participants would yield the most suitable strategy for the store. Support functions. the external advisor was asked to take the lead. 5. economical and social status ► The 20 Countries With the Highest Per Capita Cell-Phone Use 1 Program of demands (POD) consists of a prioritized list of product attributes. Product or service attributes may refer to: 1. It was quite essential to know which customer groups to target. software. or attributes. After that. services. They encompass the whole product including the hardware. the most promising market segment(s) would be selected. which claims to possess the most advanced methods. These need to be defined and subsequently translated into a program of demands1 (POD). Though the advisor should facilitate the workshops. Interface. The approach Customer value propositions Firstly relevant stakeholders in the business area would be listed. and subsequently a stakeholder analysis will be carried out in the workshop. The selected market segments are expected to perceive a definite set of priorities. The following step of POD was to find out suitable functions that support the identified values through the related attributes as shown in Figure 5. This POD will consist of various properties.

The sequential process of the simulation is schematically shown in Figure 5. We will do this by analysing whether the new customer values support our corporate values. can be filled in as much as possible with existing standard solutions. After identifying them. Finally.Figure 5 Schematic representation of transferring customer values to needed action requirements ▼ General requirements Customer groups Customers’ values Attributes Functions Functional requirements Identifying requirements of innovation The critical functions thus identified can be met with specific functional requirements that should also be measurable. and the corporate image. Business case After the workshops we hope to be in a position to compile all needed inputs for presenting the product. they can be outsourced. These are termed as general requirements. Throughout this innovation journey the tools of the Innovation Management Suite (IMS)1 software of INPAQT will be used since they have proved very effective in similar approaches to building new businesses. Also any additional requirements of attributes that are not fully covered by functions can be included in this category. This choice underlines the most "value for money". they will have to be developed. if required. which should meet all customer requirements and needs. less value generating requirements. we will invest on our innovation efforts with appropriate yardsticks. thus calling for no additional investments of our resources. Finally this innovative approach should help us enhance our market position when we undertake the sale of the new product Apple iPhone Next. 1 Copyright belongs to INPAQT Innovation Management Suite ► 5 . In other words. The others. Alternatively. the resulting business concept should bring clarity to our proposed business expansion. and the supporting service.

Of the various customer groups. Figure 6 The product and major stakeholders ► 6 . Without the customer. By definition.Workshop 1 2. The ranking was done using a score of 5 as essential and 1 as marginal. because when they are not interested in promoting the product nothing will be sold. he is also the head of the marketing department 3. Business people and globetrotters scored the next highest. In addition. there is no market and therefore no revenues from the business. The diagram thus drawn using the product and essential stakeholders is shown in Figure 6. The major shareholder 4. It lasted no longer than 5 minutes. Business Concept Stakeholders analysis The first workshop started with a short briefing of all participants of the innovation team that consisted of: 1. The current retail manager. After some discussion among the participants. Then the brainstorming session began. and his assistant 2. the main stakeholders were identified. Customer target groups In about 10 minutes after the start of the session. it was decided to make value maps for the teenagers and the business people as two major customer groups. There was some discussion about how best to define the customers. Appu. it was soon also clear that the new product must be interesting enough for the retailer to sell. Therefore the retailers also get the score 5. The sales manager. teenagers and hobbyists appeared the most attractive customers to focus on. however. the customer is essential. The financial controller The scope of the project was projected by the retail manager Appu.

For accessing various sections. the following tutorial can be helpful: 2Frequently asked questions_Read-only Creating Stakeholders diagram There are yet more important stakeholders whose interests count. You have been supplied with login codes and access link to the module. Figure 7 Various stakeholders including customers ► 7 . A brief introduction to the Demo Case can be watched through the link below. however. Their interests. though those stakeholders need not be included for decision making. first you have to login into the e-learning module. The stakeholders have already been identified and shown in Figure 7. If required. If required. While ranking the importance of various stakeholders a semi-quantitative method was used using every one‟s gut feeling. make changes using “Edit Hyperlink …” 1Frequently asked questions_Login problems Access to various sections Subsequently access the Assignment and read through various sections. you may follow the instructions provided in de tutorial below. make changes using “Edit Hyperlink…” (For better video quality look at “List of Video clips”) Part 0_Introduction brief1 Login In order to do the simulation. In order to get familiar with the simulation. you may start with a hands-on practice. will reflect in the form of their value identity for the proposed innovation.Exercise 1: Hands-on practice and access to simulations Figure 6 is a starting diagram for the complete simulation. Open up those simulations to discover that the former has been partly worked out and left for you to complete it. In case you have any difficulty. The latter is completely empty for the simulation of your own project. There are simulations in Demo form as well as an independent simulation for your own project.

stakeholder identification In order to do this. Social values. Though they are already identified and shown in Figure 3. Some said that this is a value which provides psychological well-being. and ease of use 2. however. drawing the arrow and giving the score. The others argued that this is not a value. You may place a different score than that mentioned in Figure 3. if you have an argument for that. thus 3 and 5 respectively. you are required to practice by clicking on the stakeholder icon („ „) and placing it on the diagram. Similarly „product choice‟ scored 2 and 4. These values are displayed in Figure 8 („ ‟ icons). you may find the following tutorials handy.Exercise 2: Hands-on practice . thus a product „attribute‟. „Services‟ however. go to „Demo Tool: Apple iPhone Next‟ and then „Stakeholder analysis‟ Frequently Asked Questions While drawing diagram. Definition Value: The value of any product is the outcome of its ability to meet a customer’s priorities.Draw diagram view of stakeholders You are required to add in the Demo version that you have accessed. 8 . „services‟ and „product choice‟ were identified as superior values. Basically there are 4 classes of values. such as pleasure. Give the link by using “Edit Hyperlink…” Part 1_Project. is not so important for a teenager in comparison with a business person. Design is something that belongs to the product. about one specific value. the stakeholders shown in Figure 3. Psychological values. thus it was concluded to keep it as it is. An intense discussion took place. Thus using again the scale of 5 (5 major and 1 for minor importance) the former was scored with 5 and 3 respectively. namely: 1. namely „design‟. such as health and safety. Environmental and biological values. but a reflection upon psychological well-being such as „aesthetic‟. There was no consensus yet. Soon the team identified a number of values. Economic values. such as low cost 3. You may need to give the link by using “Edit Hyperlink…” 3Frequently asked questions_Delete elements 4Frequently asked questions_Draw arrow Customer value map In order to make a customer value map the relevant values must first be listed. „Brand image‟ was perceived more important for teenagers than for business persons. „Brand image‟. such as image and status 4. customer.

Then the team proceeded to determine the product properties in the tongue of the customer. In addition to the direct relationship between an attribute and a value. their values ( ) and attributes ( ) ▼ Definition Attribute: A product attribute is the element with which the customer describes product quality. By this process everyone was forced to look at the product from the customer‟s perspective. at a given moment. Taking every combination in turn also the scores between all values and all attributes were refined. Thus it is now concluded that „design‟ indeed is an attribute. Moreover. the screen was filled with a number of values and attributes. but the type of attributes related to the different values. nobody was any longer able to add any important new values and attributes to the map. „Design‟ was found to contribute much to the „brand image‟. and their scores remained the same. are „wide choice of applications‟ and „reliability‟ („ ‟ icons). Major product attributes in our Case.Figure 8 Diagram view of sample mindmapping of target customer groups. 9 . in accordance with scoring and ranking. for example. As the team proceeded with an enthusiastic contribution by everyone. It was noted that customer groups may differ in their scores to the values. They are considered also as criteria that buyers use for deciding which of the products offers the most value to them. „Reliability‟ is a strong property of „services‟. Also the map had become already complex. Only a limited set of complex relationships and their scores are shown in Figure 9. A buyer gives due consideration to these product related attributes in his judgement as to whether the product complies with his wishes. The team started with a discussion whether these attributes can be measured. now it is seen that cross relationships with other values also exist as shown in Figure 8.

customer groups. Your learning experience will be high if you add one or two new values and attributes. connecting those for showing their relationship and then ranking them with scores. „Value proposition basic‟ as shown in Figure 10. The model „Value Proposition‟ was chosen for the matrix view. This is done firstly by selecting all elements on the screen: the product. The value matrix can be seen as an alternate presentation of the value map. You can proceed with placing new values and attributes. go to „Demo Tool: Apple iPhone Next‟ and then „Value mapping basic‟. Name the diagram. You may need to give the link by using “Edit Hyperlink…” Part 2_Value identification Part 3_Attribute identification The customer value matrix The team decided to convert the value map into a so-called value matrix. values and their attributes. „Value mapping basic 1‟.Figure 9 Diagram view of nearly complete mind-mapping of target customer groups ▼ Exercise 3: Add more values and attributes Place these additional values. for example. Brief instruction films are provided. 10 . In order to do this. By clicking „Create Matrix‟ in the menu balk. a dialogue box appeared. and make some changes in the existing scores. and a name is given: for example. In fact all scores get transferred from the diagram view to the matrix view. attributes and their scores using “Demo Tool”.

Figure 10 Matrix view of sample values and their attributes ► Exercise 4: Create Value Proposition Matrix Transfer the diagram to the Value proposition matrix using “Demo Tool”.‟. the additions that you just made under Exercise 1. Below the identified customer groups the corresponding scores for the identified values are seen. for example. You can do this implementation by clicking „Matrix‟ on the menu balk. selecting „Organize view . The value proposition matrix of the nearly complete analysis using the diagram view of Figure 9 has been shown in Figure 11.. Name the matrix. All values are now in the first column on the left. You can use the data already supplied in the Demo Case. A brief instruction film is provided. Any needed value or attribute can be added also at this stage by simply clicking on the corresponding icons. Figure 11 Customer value proposition – attribute matrix ▼ 11 . In the existing matrix „Value proposition basic‟. and clicking the new values and attributes that you have just added. You may need to give the link by using “Edit Hyperlink…” Part 4_Convert BM in Value Matrix Simulation for prioritizing values and attributes The attributes are positioned at the top in the first row. „Value proposition basic 1‟. are not implemented yet..

the team wanted to score similar products of major competitors. improvements were identified as marginally or absolutely necessary. Part 6_Report prioritizing values 12 . be biased. obtain „Product value realization‟ of all products in the analysis. and how it should be placed in the market was scored in the last row.Exercise 5: Make a proposal of prioritized attributes Workout on the sample matrix view „Overall attribute importance‟. Then we click on the icon and select each customer group separately. Make your own judgement for prioritizing attributes of the new proposed product Apple iPhone. It is based on the experience and intuition of the team members. it may have to be validated by market research. You may need to give the link by using “Edit Hyperlink…” Part 5_1_Competitive values and attributes With the set scores in the matrix. Garbage Out” or "Rubbish in. This product was noticed better than those of the competitors. We can calculate the attribute importance on value creation for the individual customer groups. Use the Demo Tool for this exercise. The scores range between 5 (perfect) and 1 (marginal). the team wanted to score the old product of Apple iPhone as well. Exercise 6: Evaluate the resulting effects on customer values Simulate resulting customer values as affected by prioritizing the attributes using the Demo Tool. Also the „Overall Attribute Importance‟ that is normalized and expressed on a scale of 10 was subsequently calculated. In addition to these competitive scores. and „Negative Attribute Importance‟ was deleted. Rubbish out” system. Taking up these attributes any further for improvement would require resources that are far too scarce and costs far too high. With this we combine the value creation potential of the attributes for both customer groups. meaning “Garbage In. You may need to give the link by using “Edit Hyperlink…” Part 5_2_Competitive values and attributes These results can be used for the report as explained in the video clip below. Thus the new generation iPhone was identified. On some attributes. The mode of simulation is explained in the video clip below. Fill in the competitors‟ data for attributes. One may call this category of analysis a GIGO system. For this analysis „Positive Attribute Importance‟ was chosen. it is easy to find out the importance of each attribute for value creation. Obviously these results are the outcome of the team‟s own analysis. This is done by clicking the icon . Only next comes „high product value‟ and all other attributes even less important. This may. Two major competitive products were identified: Smart phones and the relatively new Google phone. For the present. The relative overall importance of the attribute „design‟ is the topper. And on the other attributes no improvements were marked as necessary. However in a high demanding market. The team decided to do this using the company‟s other retail outlets. however. It is decided to validate the results later in a small survey. The mode of simulation is explained in the video clip below. The new product against other products After calculating the relative importance of the product attributes. the team considered this initial estimate as tentative. a better product and better marketing and sales is not a luxury any more. Next. In order to make it realistic.

Then the team determined the scores for the new product which the retailer would wish and thus can recommend to the manufacturer to develop at least for the upcoming Indian market. the team was curious to know whether it was possible to create one total score of the value creating potential of the new product versus the old product. In both cases the score of the proposed product concept was higher than the score of the present product. developed and supplied by major manufacturers of the electronic industry. at least against market giants such as Smart phones. Also the future proposed iPhone is shown to impact in its „brand image‟. Lastly. In general. however. This score was calculated for both „teenagers‟ and „business people‟. the advisor exposed to the team also the „values‟ that are relatively hard to measure. One question. 13 . The team concluded that this was an easy way to generate more concepts and see which of the concepts seemed to be the best for both targeted customer groups. There was a long discussion whether „high product value‟ is an important attribute for creating values such as „price‟ and „experiences‟. „price‟ scores low. It was decided to give priority to „high product value‟ for augmenting „services‟. Why is there concern to place a new product and a new sales and marketing approach with special attention on „services‟? In a dynamic market with rather short product life cycles it is better to be the leader. came up after the above analysis.The attributes have been scored and competitive positioning of various similar products being done. This calculates the total value creating score for the present product and the new product concept (see Figure 11). Conclusions on customer value propositions and their attributes Everybody realized that these results were based upon the present knowledge. It was explained that this could be done by clicking on the icon named „Product Concept Score‟. It was agreed that „experiences‟ refer to far too emotional features. the role of an individual major store in the city is not entirely negligible in this regard. Surprisingly. the product should be as good as the competitor‟s (the qualifiers) and on a few attributes it must have a higher score (the differentiators or USP‟s). The product is designed. The higher scores are preferentially given to those attributes that matter high to the customer. both with the product and also at retail stores. this may not be strange at all. However it was concluded that specifically for Apple product line the former „price‟ has little effect. The advisor did this exposure by clicking the blue „ ‟ icon for each existing product. telecom service providers have a strong influence in the market. the contribution by services can be substantial. for contributing to the required services. experience and gut feeling of the team. There is an indirect approach for establishing the rather abstract and complex perceptions of customer values. however. A chain-store such as Apple Stores does it systematically at its 300 and odd stores in the USA. In the upcoming Indian market. In addition. and not contributed by an economically defined attribute „high product value‟. In the tradition of positioning the product at the high end. „Product choice‟ is quite important. It is the responsibility of the retail stores to position the product in the market with supporting services.

With this approach they became more involved and committed to the whole innovation process. „provide a range of application functionalities‟. a function is conveniently expressed in a verb-noun combination. the verbs have not been typed for compactness. For example. „Range of application functionalities‟ need to be provided. Wherever possible the functions were described with a verb and a noun. attributes and functions more precisely was important for using the matrices later. would contribute to fulfilling the attribute.Workshop 2 Definition Function: A function represents an action to be performed by a “thing”. each function is defined more precisely in the description box. In general. Accordingly the team defined various functions to fulfil the product attributes as shown in Figure 13. language. however. Figure 12 Function description in detail ► Defining functions in this way prevents us from immediately start thinking in terms of solutions. In the figure. see Figure 12. This could facilitate searching for suitable application. 14 . 2. With this.2. This statement. by defining the functions with a verb and a noun we are stimulated to look for innovative solutions for those functions. or the purpose of an activity. thus „Provide a range of application functionalities‟. Scoring the contributions of the functions to the attributes between 5 and 1 was done as before. it was more so especially for the participants with limited technical background. Defining values. etc. Functions and their requirements The second workshop started with making an inventory of functions necessary to realize the attributes. network choice. and giving choice of performance criteria such as price.

It will then appear in the matrix view. This was done by clicking on the „Create a new matrix view‟ icon in the toolbar and choosing „Function Analysis‟ matrix. 15 . The „Overall Attribute Importance ( )‟ for the customers value creation was the first row just beneath the attributes.Figure 13 Functions for fulfilling product attributes ► Exercise 7: Add more functions in the diagram view Expand the diagram „Quality Function Deployment basic‟ on the “Demo Tool”. The matrix that appeared after completing the dialogue box looks as shown in Figure 14. the team started with refining the scores. Simulation for prioritizing functions and their requirements The function analysis matrix After having described a number of functions for fulfilling the attributes. At the bottom of the matrix. The functions ( ) were listed in the first column of this matrix and the attributes ( ) in the first row. These rows are characterized by a separate icon ( ). and score them. click on the icon in the menu balk. 2 rows with the scores on the attributes of the current product and the desired product were present. Once the list was completed. the participants devoted themselves to further identifying any functions that were yet to be added for substantiating the attributes. Choose a few new functions than those provided in the complete diagram of Figure 12. After having done that. Remember to update the set of attributes by „copy‟ from the previous diagram and „paste‟ them on the present new diagram of functions. the team decided to convert the mind map of these functions into a matrix. If this row is not present.

By clicking on the icon in the menu balk named „Function Value Realization‟. The difference between the interest of the functions for creating customer value and how the current product scored on this value made it possible to calculate the “opportunity” for improvement. Exercise 8: Simulate opportunities based on functions Construct the „Function analysis matrix‟ on the basis of your diagram of functions. Definition General Requirements are considered as additional values that are not necessarily typical of a specific product or service. „profitability‟ to the retailer and various elements of „reliability‟. Only a few to name are „costs‟. General Requirements Customers usually have basic needs that are not necessarily directly related to functional details. namely the "opportunity" is 2 times the importance for the customer ( ) minus the score of the current product ( ).This number may never be lower than the relative importance for the customer. In the Quality Function diagram these were now added by clicking on the specific icon ( ) and their scores are given in Figure 15.Figure 14 Function analysis for scope of prioritization ▼ After all the functions were scored. the „Overall Function Importance‟ for the customer was calculated by clicking on icon phi ( ). 16 . Calculate „Overall function importance‟ of the new product. Use the Demo Tool for this analysis. The result is represented by omega ( ). This was calculated using a simple formula. and identify 2 possible opportunities. Yet they are related to attributes and as important as the functions of the product or service in consideration. A column appeared at the right with numbers between 10 and 1. the contribution of the current product functions on customer value creation was calculated. This number indicates the team the relative contribution of the functions to customer value creation.

In System Dynamics the boundaries or interfaces play a crucial role as to the relevance of these elements for a function. a matrix representation could be made for an over view. „number of applications‟ was an essential functional requirement in order to „provide a range of application functions‟.Definition Functional Requirements are essential elements of products or services with which the needed functions will be fulfilled. In the figure all identified attributes and their overall importance are included. 17 . For example. In essence each function is performed to certain extent by one or more elements. Figure 15 General requirements for fulfilling attributes ▼ Functional Requirements Specific functions are performed by dedicated elements of products or services. Inherent to this matrix. Only on „functional requirement‟ is included on the right of the matrix for the purpose of illustration. The attributes. This was done by clicking on the matrix view and choosing for „Requirement importance analysis‟. The resulting diagram is shown in Figure 16. A „functional requirement‟ can be added by clicking on „ ‟ icon. thus are shown to be built on a firm basis of functions that are needed to be put up and the general requirements that are needed be met with. These elements may also perform other functions. as essential elements of the simulation. Simulation for prioritizing General Requirements By selecting these general requirements. and naming it. attributes and their connecting scores. also functions and their overall importance are included.

18 . In order to check this.Figure 16 General requirement importance matrix ► Exercise 9: Simulate for finding out opportunities based on General Requirements Construct „General requirement importance analysis matrix‟ using the Demo Tool. one final exercise had to be executed before everyone could go home to perform his homework. Conclusions on functions and requirements Customer value creation as general requirement could be calculated by clicking on the icon. The second workshop was now almost finished. One thing remained on the priority. are the most important general requirements of Apple iPhone Next. Now there was a message for the manufacturer and also to the supplier. Furthermore. In quality management one has to focus upon such requirements. It showed that „profitability‟ for the retailer and „accessibility reliability‟ in support of the product performance. however: The final product should provide a good quality/price ratio and has to differentiate itself from competing products. The consultant added that these scores said something about how critical these requirements were to the „reliability‟ of the product. Everyone had the feeling that the discussions were very fruitful and much was achieved. it has to support the corporate image. The resulting outcome was more front end oriented rather than that with product orientation.

of the organization Apple using the last successful product ‘Apple iPhone old’ ► 19 . By using the first choice of brand values in each image the archetype of the Apple could be established as shown in Table 1. or design.3.Branding Definition Brand is a name. The team identified various brand values of the existing product „Apple iPhone old‟ that contribute to different brand images of Apple organization.2. Also services are easy to analyse using the criterion shown in Table 1. or archetype. All other archetypes including „creator‟ were quite low. surprised everybody in the team. and trend. Brand images Image 1 Image 2 Image 3 Image 4 Image 5 1st Brand value Revolutionary Pioneer Innovative Attractive Unique 2nd Brand value Creative Original Exceptional Dominant Path-breaking 3rd Brand value Optimistic Optimistic Professional Dreaming Intelligent Table 1 Brand images and their values for existing Apple iPhone old ► For this analysis the team confined to use a single product „Apple iPhone old‟ for finding out the archetype of the organization Apple. also of other products. The images listed in Table 1 originate from automotive industry. Similarly brand and corporate images. The prescribed brand values to images for the existing „Apple iPhone old‟ yielded the archetype represented in Figure 17. The team explored the impact of customer values on brand building. The advisor took the team through „Brand assessment‟ of the product. and are often applied to brand identification of cars. sign. The latter conclusion from the analysis. can be identified. Figure 17 Corporate image. symbol. It was observed that „Explorer‟ and „outlaw‟ scored quite high. or a combination of them that makes a product or service unique. This means Apple is a solo concern with its own uniqueness in innovation. Many FMCG and consumer durables fall in this category of brand creation. and also on brand sustainability. however.

Figure 18 Diagram view of corporate image related to customer values ► Exercise 11: Explore the consistency of brand image of the new product Construct the diagram view and the matrix on the basis of the data that you have collected so far. Then identify various brand values. corporate brand values and customer values were integrated. Using these scores find out the archetype of the corporation Apple. Start with a blank new diagram „Branding‟ and copy into this the „values‟ that you have chosen before. Go to “Brand Assessment Tool” and rank various images as you would anticipate on Apple iPhone Next. 20 . Simulation for brand value support of the new product Subsequently using this diagram and clicking on the matrix view. the diagram analysis was carried out by linking „customer values‟ ( ) with the identified „brand values‟ ( ) as shown in the diagram view of Figure 18. The next consideration is whether the major brand values would be supported by the previously chosen „customer values‟ for Apple iPhone Next. Brand value support to product value realization became evident to the team by clicking on and selecting Apple iPhone Next. Explore whether the brand image created by Apple iPhone Next is consistent with the existing image. Which customer values are elevated with the inclusion of the brand values that are so important to the product manufacturer and the retailer? In order to do this analysis. give possible relationship with „customer values‟ and score them.Exercise 10: Assess brand image of the new product Go to “Brand Assessment Tool” and rank various images as you would anticipate on the future Apple iPhone Next. The outcome shows that Apple iPhone Next indeed falls reasonably in line with the long held „innovative‟ vision of the organization.

3. This means that we are on the right track.” He closed the meeting with a strong feel of relief for reaching the much promising market of the most modern cell phones in the city. The consultant added that in order to be sure.Figure 19 Contribution of Apple iPhone Next to corporate brand image ▼ Conclusions on brand management The team looked into the „Brand matrix‟ in Figure 19 for judging how far the planned new product was a step forward compared to the current product.” The retail manager concluded the innovation advisor’s analysis. we have to wait and see what the manufacturer. 21 . “Gentlemen. Apple Corporation. Conclusions “The new product shows that the corporate image related to the brand as „innovator‟ is the most relevant. is likely to take up for the upcoming Indian market. We also know now what message can be given to the manufacturer about the best design and how it can support the corporate brand image. He continued. It appeared that this was quite the case with the new iPhone Next. however. we know now what will help us look forward to our own business.

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