Apple iPod's Promotional and Positioning Strategies

            
 
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Case Details:

Case Code : MKTG179
Case Length : 14 Pages
Period : 2001-07
Pub Date : 2007
Teaching Note :Not Available
Organization : Apple Inc
Industry : Digital Music Player
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

Promotion

Apple's promotion strategy which was widely appreciated was the surprise element that it attached just before it rolled out its iPod. There was a heavy speculation and curiosity regarding the product and everyone was watching out for it. Apple did this with every other model of iPod which it launched subsequently...

Advertising

Apple advertised extensively for iPod. Just when iPod was launched, an introductory campaign which would explain an unfamiliar product was needed. For this, Jobs thought a traditional campaign was preferable. Hence, the first iPod's commercial showed a man listening to the songs on his iPod and dancing.

The commercial illustrated iPod's portability and ability to easily play songs downloaded from one's computer. All media channels including television, print, hoardings, posters and wrap advertising were used to advertise iPod (Refer Exhibit III A, III B and III C for some visuals of iPod's advertisements and Exhibit IV for wrap advertising used for iPod)...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Positioning

The advertisements and commercials of iPod focused on the 'coolness' aspect as it made the viewers believe that having one would make them accepted among their peers. Analysts commented that the hype surrounding iPod was created due to its unique advertising, word of mouth publicity by the users and the look and design of the product...

The Road Ahead

Apple sold 9.8 million units of iPod in the third quarter ending June 2007, 21 percent higher than the 8.1 million iPods it sold during the same period, the previous year. The first quarter (October -December 2006) saw record sales of 21 million iPods. The previous year sales for the same quarter was 14 million units.

The third quarter profits were a record US$ 818 million, up 73 percent from the third quarter profits of the previous year, driven mainly due to the high sales of the iPod. For the fourth quarter of 2007, Apple forcasted revenues of US$5.7 billion...

Exhibits

Exhibit I: Apple's Digital Hub Strategy
Exhibit II: Units of iPod Sold Since 2002
Exhibit III A: iPod's Advertising Visuals
Exhibit III B: iPod's Advertising Visuals
Exhibit III C: iPod's Advertising Visuals
Exhibit IV: iPod's Advertising Visuals
Exhibit V: iPod's Advertising Visuals


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