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IPOD and its related consumables (music) account for over 25% of the company's revenue To build on this

momentum, the following integrated marketing communications plan seeks to educate creative consumers about the benefits, convenience and practicality of iPod use and ownership. The plan assumes that Apple will introduce a player at a lower price point than the current iPod shuffle, which should attract a new segment of users and for existing iPod owners - approximately 10 million to date - the plan seeks to engage this segment further. Because a large percentage of the iPod user base has only recently purchased the player, significant opportunity exists in the areas of music downloads, accessories and related services. Situation Analysis Apple serves all markets that use personal desktop computers and their related software and hardware. This includes schools, corporations, governments and general consumers. Increasingly, the company has begun to serve general consumers desiring access to products and services related to digital media delivery and consumption. Competitive Environment Competition and the number of consumer choices are growing almost daily. Given the two segments(microdrive and solid-state) of players, each competitor offers similar functionality, storage capacity and size/shape features as the iPod. Cost is a main differentiator among competitors, with all offering players at lower prices than the iPod. Here are some recent pricing samples of iPod's competitors: The Apple iPod Mini $249.00, Zen Micro $250.00,Virgin Elec. Player $250.00 Dell Pocket DJ $200.00 and Rio Carbon $210.00 SWOT Analysis Taking into account Apple's situation, the following strengths (S), weaknesses (W), opportunities (O) and threats (T) have emerged. Strengths Innovative Design Heritage , High Quality Software /Powerful Hardware , Fashionconscious Product Appeal ,Ease-of-Use,High Reliability and Loyal user base Weaknesses Market share /Users,Compatibility with Windows Platform,Costs of Products and Concentrated Leadership and VisionOpportunities Increased Multimedia Demand by Consumers, New/Expanded Distribution Channels and MS Windows Dominance Threats Microsoft Windows OS, Open-source Software and Company Leadership Target Audience(s)

Consumers to be targeted are individuals that live digitally savvy and fast-paced lifestyles. They are America's Creative Class and they use technology as a way to achieve their goals and add more convenience to their lives. They are doctors, lawyers, scientists, engineers, entrepreneurs and computer programmers etc In addition to these, target consumers can also be identified by the following characteristics such as Current MS Windows users, Average Income : $35K+, Own a cell phone, Have varied creative interests that include Music, Photography, Video, Sports Electronic gaming, Status-oriented, fashion-conscious achievers who like to experience life with as many modern conveniences that are within reach etc MEDIA OBJECTIVES AND STRATEGIES The media strategy and objectives for Apple work to define and communicate the concept of a comprehensive "digital lifestyle" and to reinforce the values they bring to creative consumers. A key factor in this plan is to use concentration in the media in order to obtain a high degree of message frequency in the target group. To do this, the plan will use many different types of media and will attempt to achieve the objectives of educating consumers on the digital lifestyle concept and how Apple enables it. Creative Brief Why are we advertising? To position the iPod as the key linchpin to a musically enhanced lifestyle for consumers. Who are we talking to? The current US Creative Class, ages 18-44, male and female living in key markets. These individuals What do they currently think? Creatives may view the iPod as only a digital music player, and not as a component that extends the practicality of their desktop computers. What would we like them to think? That the Apple iPod is clearly the premium choice because it offers more convenience, security, reliability, and ease-of-use. What is the single most persuasive idea we can convey? That an iPod can improve the enjoyment of a person's life. Everybody should have one. Why should the audience believe it? Proof will be provided through multiple, everyday uses. A common chord will be struck that will help connect the audience with the imagery and messaging. This will lead to credibility.

What is the tone? Conversational in tone. Will not speak at the reader but will speak with them. Creative Strategy In order to tie the media objectives and strategy together with those of marketing, a campaign with a unified theme will be developed and launched. This theme will be carried through within all media the plan utilizes. The campaign will be headlined as 'Have The Music" and will seek to present the benefits, conveniences and lifestyle improvements that come with owning and using an iPod and the iTunes music store. In order to adapt the messaging execution to a variety of use scenarios, Have The Music will incorporate a series of media showing iPod usage in a range of situations. This should help consumers across the whole segment to identify with the iPod and how it can fit in their lives. Examples will include situations where the iPod can improve the user's life, such as exercising, shopping, traveling, work, and entertainment. The campaign will feature a series of custom taglines that will incorporate the campaign's title with the particular use context, such as " Have The Music, Enjoy golf more, Have The Music and Impress Yourself. The goal is to connect music and the iPod with enjoyment, fun and personal status across a range of activities.

Media Plan
A key objective of this program will be to increase the overall market share of Apple products. To accomplish this, the company's iPod will be used as a gateway product to introduce consumers to the larger brand family. Media Types and Selections The following media types and outlets will be used and were selected based on the target demographic - creatives Television Channels like National networks (NBC/CBS/ABC),Cable Channels and Networks like MTV and VH1, ESPN / ESPN, CourtTV, CNN, Discovery Channel The television tactics will show iPod usage in scenarios similar to the print-based components, but will place greater emphasis on connecting Apple products with a digitally savvy, creative lifestyle. Alongside use situations, other Apple products will be drawn in - like their portable computers and desktops to suggest interoperability and ease-of-use. Along with the use contexts, different socioeconomic environments will also be used. - Multiple use situations, contexts, environments. - Imagery of showing users easily using Mac products. - Imagery suggesting ease-of-integration with Windows & Mac products Print - Three varieties of print media will be utilized. These include outlets with national coverage and strong vertical profiles: Magazine Ad Placements - Full-page bleed advertisements will be placed in many magazines: Generally, print advertising will stress image and lifestyle related benefits of the iPod

and Apple. These types of placements will be short on copy and long on imagery. The iPod will be shown in a number of use situations, and in a variety of contexts. Full Page Advertisements - High resolution, full-scale images of the iPod, along with simple and short copy. Billboards / Signage - Heavy street level presence within urban areas. Emphasis placed also in airports and/or public transportation venues Standard indoor / outdoor billboards Non-traditional signage in bus shelters/railway stations Non-traditional signage placed in and around green spaces like park benches, golf courses, etc. Direct Mail A catalog featuring the Apple iPod and related accessories, digital music products, software and hardware products will be produced. Targeted to new and existing iPod owners and users exclusively. Coupon Incentive Program to current iPod owners for discounts on music down load (ITMS) and/or Apple hardware and software. Internet Advertising - The World Wide Web will be used to compliment placements and efforts in other mediums. Banner Advertising on consumer entertainment sites Banner adverting on high-trafficked portals Banner Advertising on consumer music enthusiast sites Email Campaign targeting existing Apple iTunes Music Store users Complimentary banner ads on magazine and television channel / network sites In-store Promotions - These will be carried out not only within Apple's retail stores, but also through the company's growing consumer electronics distribution network. Point-of-Sale displays Floor displays, shippers, in-store banners. Public Relations - This is an important part of the plan that will reinforce credibility to the campaign. Apple has historically been a closely watched company relative to product announcement and news related items. The company will seek coverage and mentions within all identified creative markets. Coverage in local newspapers Coverage in trade press/journals/magazines Coverage in national network media outlets