How To Buy A Condo Politics in India Apple s iPod PLC Stages in Light Of Its Latest Tablet Release

Introduction:

This brief essay will discuss strategy for reinventing the Apple iPod in its current product life cycle(PLC) stage. The iPod is considered to have entered the Mature stage now, characterized by slowing down of growth and market saturation. The iPod and its current PLC stage Apple iPod

Apple iPod

The iPod is a brand of digital audio/video player introduced in 2001 by Apple Inc. Known for its user friendly interface and sleek design, the iPod is now recognized as a cultural symbol. There have been 4 models so far the Classic, the Nano, the Shuffle and the highly popular Touch.

Since Q2 of 2008, the iPod unit growth has slowed down significantly. It had a 140 million customer base in 2008, with a market segmentation of primarily young adults and children within an age group of 1225, and this market was fast approaching saturation at that time. iPods were the primary growth engine for FY05 and FY06, responsible for roughly 58% of Apple s total revenue growth for both years. In FY07, iPod segment generated only 14% of overall sales growth. As a percentage of total revenue, iPod accounted for 33% (FY05), 40% (FY06), and 35% (FY07), and this decline trend is continuing. This indicates that the Apple iPod has entered into the maturity phase of its product life cycle (PLC). Reinventing the iPod in its Maturity Phase of PLC

The maturity stage is the most profitable stage in PLC, and ensuring its longevity should be the aim of iPod marketing. There are various ways to enhance product longevity in its maturity phase. Some of these are product modification, pricing modification, new markets, new promotion and modifying

distribution channels. In what follows, we will focus on New Markets and New Promotions to reinvent the iPod and ensure its longevity. New Markets

It must be remembered that though the iPod is at a certain stage in its PLC in one market, it might not be in that same stage in another market. This fact can be heavily utilized to sustain overall longevity of the iPod by targeting new markets where the product is still not matured. There are two different ways of doing this:

Geographic

The iPod was first released in the US and EU markets, and garnered a strong customer base there very quickly. But due to its pricing, among other issues, it was not immediately popularized in growth markets of developing countries. It has still not entered a number of such markets as much as it has done in the developed economies, and there is a lot of potential for growth in these markets.

A good marketing strategy for iPod at this time would be to find new geographic markets not previously targeted as much as others. Target markets can be the BRIC countries, Brazil, Russia, India and China, where the iPod has not yet gained the iconic stature that it has done in the developed countries. The exercise of this option may involve participatory exploitation; in other words, engagement in jointventure, typically in regions where the technology would be in the ascent phase, as say, the developing countries mentioned above. In addition to providing financial opportunity it will allow Apple a degree of control over the use of iPod. Gain will flow from two streams, investment-based and royalty incomes. Further, the vital life of the iPod technology will be enhanced in this strategy.

Demographic Market Segmentation

Besides new geographic market targeting, it is also good strategy to target new demographic market segmentations. The iPod was primarily targeted to music lovers in the age group 12-25 of both sexes. This market can be increased in 2 ways one, by enhancing the iPod for other uses besides music (something that has already been done by Apple, but can be done further), and two, which is most important, by creating new demographic markets by targeting people from other age groups. The latter

too will include adding additional features to the product besides music, such as business capabilities like email, web browsing, office suits etc, along with essential differential promotion. New Promotion

Once a product has reached its maturity phase, a change in strategic promotion needs to be done, because existing promotion strategies can become obsolete once the market becomes saturated with product awareness. New ways of making the market look at the product needs to be promoted. There are two targets of this promotion, the retailers/distributors and the customers or end-users.

Retail Promotion

Sales promotions may be offered to encourage retailers to give the iPod more shelf space over competing products and encouraging distributors not to drop the iPod from their inventory. This can take the shape of heavy retail discounts, or promotional packages for the retailers, or other offered benefits. But this is of much less importance than promotion for customers.

Customer Promotion

There are at least 5 methods of doing this with the iPod. These are price incentives, branding and packaging, involving greater variety of media for advertising, product differentiation and below-the-line promotion

Price Promotion

This should involve significant price promotions (e.g., heavy discounting) or strong promotions intended to improve image or solidify a niche. Bearing in mind the facts that the few competitors that iPod truly has ( the iRiver, Dell and Sony products) are aggressively playing a price war, and the profit-versus-sales picture of business, iPod can probably afford to offer heavy discounts, keep low margins, try and sell as many products as possible, and retain the 70% share of the PMP market that it has always had.

Branding and packaging

As the iPod grows in its life cycle, customers can become tired of looking at, hearing about and buying the same iPod for years. Heightening interest by changing image through heavy promotion of brand and package redesign can be very effective to counter this excessive brand familiarity. Very little money is spent in R&D for this kind of product redesign, and yet the new look gives its sales a boost.

Greater variety of media

Apple IPod can spotlight on a successful advertising campaign comprising of magazine and television advertisements focusing on the target market (teenagers and young adults), as well as on other possible market segments. Careful thought should be given on how often they want the target market to be exposed to the advertisement; over-familiarity is as much of an evil as total ignorance, and a brand that has been almost a monopoly in its niche for 8 years needs to be very sensitive and subtle in its advertisement. Probable focus should be on indirect advertisement, like public/social work centered advertisement etc, rather than on a direct push sell.

Product Differentiation

As commoditization occurs, product differentiation becomes vital for survival in the market. The Touch iPod is already a breakthrough in this regard; Apple should push for promoting each of the various factors that differentiate each of its in-market product; large storage for the Classic, various enhancements for the others etc. It should try and show how these differentiate the iPod from its closest competitor.

Below-the-line promotions How To Buy A Condo Politics in India Apple s iPod PLC Stages in Light Of Its Latest Tablet Release

Introduction:

This brief essay will discuss strategy for reinventing the Apple iPod in its current product life cycle(PLC) stage. The iPod is considered to have entered the Mature stage now, characterized by slowing down of growth and market saturation. The iPod and its current PLC stage Apple iPod

Apple iPod

The iPod is a brand of digital audio/video player introduced in 2001 by Apple Inc. Known for its user friendly interface and sleek design, the iPod is now recognized as a cultural symbol. There have been 4 models so far the Classic, the Nano, the Shuffle and the highly popular Touch.

Since Q2 of 2008, the iPod unit growth has slowed down significantly. It had a 140 million customer base in 2008, with a market segmentation of primarily young adults and children within an age group of 1225, and this market was fast approaching saturation at that time. iPods were the primary growth engine for FY05 and FY06, responsible for roughly 58% of Apple s total revenue growth for both years. In FY07, iPod segment generated only 14% of overall sales growth. As a percentage of total revenue, iPod accounted for 33% (FY05), 40% (FY06), and 35% (FY07), and this decline trend is continuing. This indicates that the Apple iPod has entered into the maturity phase of its product life cycle (PLC). Reinventing the iPod in its Maturity Phase of PLC

The maturity stage is the most profitable stage in PLC, and ensuring its longevity should be the aim of iPod marketing. There are various ways to enhance product longevity in its maturity phase. Some of these are product modification, pricing modification, new markets, new promotion and modifying distribution channels. In what follows, we will focus on New Markets and New Promotions to reinvent the iPod and ensure its longevity. New Markets

It must be remembered that though the iPod is at a certain stage in its PLC in one market, it might not be in that same stage in another market. This fact can be heavily utilized to sustain overall longevity of the iPod by targeting new markets where the product is still not matured. There are two different ways of doing this:

Geographic

The iPod was first released in the US and EU markets, and garnered a strong customer base there very quickly. But due to its pricing, among other issues, it was not immediately popularized in growth markets of developing countries. It has still not entered a number of such markets as much as it has done in the developed economies, and there is a lot of potential for growth in these markets.

A good marketing strategy for iPod at this time would be to find new geographic markets not previously targeted as much as others. Target markets can be the BRIC countries, Brazil, Russia, India and China, where the iPod has not yet gained the iconic stature that it has done in the developed countries. The exercise of this option may involve participatory exploitation; in other words, engagement in jointventure, typically in regions where the technology would be in the ascent phase, as say, the developing countries mentioned above. In addition to providing financial opportunity it will allow Apple a degree of control over the use of iPod. Gain will flow from two streams, investment-based and royalty incomes. Further, the vital life of the iPod technology will be enhanced in this strategy.

Demographic Market Segmentation

Besides new geographic market targeting, it is also good strategy to target new demographic market segmentations. The iPod was primarily targeted to music lovers in the age group 12-25 of both sexes. This market can be increased in 2 ways one, by enhancing the iPod for other uses besides music (something that has already been done by Apple, but can be done further), and two, which is most important, by creating new demographic markets by targeting people from other age groups. The latter too will include adding additional features to the product besides music, such as business capabilities like email, web browsing, office suits etc, along with essential differential promotion. New Promotion

Once a product has reached its maturity phase, a change in strategic promotion needs to be done, because existing promotion strategies can become obsolete once the market becomes saturated with product awareness. New ways of making the market look at the product needs to be promoted. There are two targets of this promotion, the retailers/distributors and the customers or end-users.

Retail Promotion

Sales promotions may be offered to encourage retailers to give the iPod more shelf space over competing products and encouraging distributors not to drop the iPod from their inventory. This can take the shape of heavy retail discounts, or promotional packages for the retailers, or other offered benefits. But this is of much less importance than promotion for customers.

Customer Promotion

There are at least 5 methods of doing this with the iPod. These are price incentives, branding and packaging, involving greater variety of media for advertising, product differentiation and below-the-line promotion

Price Promotion

This should involve significant price promotions (e.g., heavy discounting) or strong promotions intended to improve image or solidify a niche. Bearing in mind the facts that the few competitors that iPod truly has ( the iRiver, Dell and Sony products) are aggressively playing a price war, and the profit-versus-sales picture of business, iPod can probably afford to offer heavy discounts, keep low margins, try and sell as many products as possible, and retain the 70% share of the PMP market that it has always had.

Branding and packaging

As the iPod grows in its life cycle, customers can become tired of looking at, hearing about and buying the same iPod for years. Heightening interest by changing image through heavy promotion of brand and package redesign can be very effective to counter this excessive brand familiarity. Very little money is spent in R&D for this kind of product redesign, and yet the new look gives its sales a boost.

Greater variety of media

Apple IPod can spotlight on a successful advertising campaign comprising of magazine and television advertisements focusing on the target market (teenagers and young adults), as well as on other possible market segments. Careful thought should be given on how often they want the target market to be exposed to the advertisement; over-familiarity is as much of an evil as total ignorance, and a brand that has been almost a monopoly in its niche for 8 years needs to be very sensitive and subtle in its advertisement. Probable focus should be on indirect advertisement, like public/social work centered advertisement etc, rather than on a direct push sell.

Product Differentiation

As commoditization occurs, product differentiation becomes vital for survival in the market. The Touch iPod is already a breakthrough in this regard; Apple should push for promoting each of the various factors that differentiate each of its in-market product; large storage for the Classic, various enhancements for the others etc. It should try and show how these differentiate the iPod from its closest competitor.

Below-the-line promotions

These are named thus because of their proximity to monopolization principles, but they can be very effective, as Microsoft has tried to show, sometimes with success, in retaining market share. Thus, Apple iPod can use a direct method to induce customers to purchase their product by offering any IPod accessory per customer for half the value price with every purchase of a new Apple IPod. This will allow the business to directly measure the success of the campaign by observing the sales rate of the promotional tool. More importantly, this will allow the iPod to sell itself by making itself irreplaceable. Apple Tablet released

Apple Tablet released

Apple is about to release its Apple tablet in 10 minutes time. So it becomes relevant to study how its earlier popular products fared in the market.

These are named thus because of their proximity to monopolization principles, but they can be very effective, as Microsoft has tried to show, sometimes with success, in retaining market share. Thus, Apple iPod can use a direct method to induce customers to purchase their product by offering any IPod accessory per customer for half the value price with every purchase of a new Apple IPod. This will allow the business to directly measure the success of the campaign by observing the sales rate of the promotional tool. More importantly, this will allow the iPod to sell itself by making itself irreplaceable. Apple Tablet released

Apple Tablet released

Apple is about to release its Apple tablet in 10 minutes time. So it becomes relevant to study how its earlier popular products fared in the market.