Sajal Khanna

JIML-09-R-017
Sec -B

Apple I-pod
Revolution
Company Review

Established on “April Fool’s Day” in 1976 by Steve Jobs and Wozinak, both
college drop outs.

Early Years (1976-1981)

• The apple i-pod went on sale in July 1976 for $666.66.

• Apple was incorporated on Jan 3, 1977.
• Apple II hits the market in 1977.
• Apple soars to $1 Million in 1980 and went public.

Lisa and Machintosh (1981-1985)

• Apple face saturated market after the launch of IBM PC.

• Apple introduced Lisa with hefty price of $10,000.
• Steve Jobs resigned from Apple in 1985 and founded NeXT Inc.
• Apple seeking to make big splash introduces the Mac commercial
during the Super Bowl XVIII on Jan 22, 1984.
Rise and Fall (1986-1993)

• The period between 1989-1993 was the “Golden Age” of Mac.

• Apple introduces Mac II and Apple was again in the spot light.
• Apple introduces Power Book and system 7.
• 1993, Sculley was ousted after his pet project (digital camera,
speakers and TV appliances).
• Micheal Spindler takes over the Apple’s operations.
Attempts of Reinvention (1994-1997)

• 1994, Apple aligned with IBM, Motorola in AIM alliances and

introduced Power Mac.
• 1995, Gilbert pushes out Splinder after sales suffered due to parts
shortage.
• Apple acquired NeXT Inc. which reunites Apple with Steve Jobs.

New Beginning (1998)

• Apple introduces i-Mac, featured current techonology and ground

breaking design.
• Apple stunned Wall Street by earning $45 Million in first quarter of
1998.

History of Digital Audio Player

• The first mass produced DAP was “MP Man” in 1997.

• It was branded as Eiger Labs MP Man F-10 to North American
Market in 1998.
• Rio PMP 300 from Diamond Multimedia was introduced in 1998.
• In 1998 Compaq developed the first hard drive based DAP called
PJB-100.

History of I-Pod

• Frist Generation
 • October 2001, Apple unveiled first Gen. I-Pod, 1.8” Hard
Drive, 5 GB.
• March 2002, Apple introduced 10GB Model of first gen I-
Pod.

• Second Generation
• Second generation I-Pod was introduced on April 18,
2003, was thinner and launched in 10GB, 15GB & 30GB.

Situation

• In 2000, Steve Jobs, Candy colored i-Mac was leading the change for
Apple’s come back but to further spur sales, company started asking :

“What can we do to make people more machintoshes???????”

Situation Analysis

• Industry Overview
• Strides of windows platform was narrowing the edge of Apple’s
products.
• Hard disk based Music Player are too big to carry and weigh ½
kg.
• New Music Player let you cram CD’s with MP3 favorite.

• Environment Overview
• Company planning to extend the use of its personal storage
solution into MP3 players.
• Consumer electronics company are rushing out their own
digital audio products.

SWOT Analysis
 • Strength
• High quality product which makes Apple different than its
competitors.
• Apple niche audience provides the company with insulation
from direct price competition.

• Weakness
• Weak presence in business area.
• Dependency of New Product launches.

• Opportunity
• Large population Gen(X&Y) which are extreamly
individualistic and brand conscious.
• Booming MP3 player market.

• Threats
• Intense competition.
• Changing technology.

• Leverage
• Apple leveraged the fact that high quality product which is
different than its competition and targeted to Gen(X&Y) which
were extreamly individualistic and brand conscious.

Market Mix

• Product
Apple I-Pod first generation, small and user friendly, black and
white screen 5GB HD stores 1000 songs.

• Price
US $ 399.00
 • Place
Apple opened its stores in California.

• Promotion
TV Commercial
Print Ads (music, sports and men magazines)
1st commercial of I-Pod aired in 2001.

Strategic Response

• From 2003 to 2005, Apple ferociously promoted i-pod.

• Silhouette campaign was the most popular.

Target Market : Targeted at young, style conscious and music enthusiast.

Brand Position : I-Pod positioned itself as the best MP3 player.

Reasons for Success

• Apple shifted the brand identity from company context of customer.

• High quality products and design make its different from competitiors.

Lessons Learned

• Create brand equity in context of customer.

• Focus on your core competency.
• Differentiate yourself.