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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Introduction Contd...
It was placed as a product of the present generation and presented a picture of "coolness". Commenting on the fad that iPod had created, John Zhang, Professor, Wharton University said, "All MP3 players do the same thing, but nobody else has the 'cool' factor of iPod. It's a status symbol: You're young, cool, vigorous if you have one."6
Background Note
Steve Jobs, Steve Wozniak and Ronald Wayne founded Apple Computers on April 01, 1976. At that time, Steve Jobs worked for Atari, Steve Wozniak worked for HP and Ronald Wayne was Jobs' collegue at Atari. They assembled the first personal computer (PC) in Jobs' father's garage, custom-made for a local computer store. They assembled fifty such PCs exclusively for this store and sold them for US$ 666.66 per system. This system was called Apple I. Later, they built another 200 PCs before the next version was worked upon. Apple was incorporated on January 03, 1977.
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In April 1977, Apple II was launched which was a much improved version of its predecessor. The differences lay in the display, which used graphics and color. However, when the system was designed, it was realized that the company would need a lot of financing to market this product.
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It was at this time that Mike Markkula, a venture capitalist, invested US$ 92,000 in the company.7 In May 1980, Apple III was released to compete with IBM's first PC named the IBM-PC.
By then, Apple was employing several thousand workers. Apple III was priced at US$ 1,395. However, due to a design fault,8 this product failed and thousands of Apple III computers were recalled.
Apple made losses of over US$ 60 million due to this recall. Apple came out with its initial public offering (IPO)9 in December 1980. Around 4.6 million shares were sold for US$ 22 each in this IPO. In January 1983, Apple launched LISA10. |
It was Apple's first GUI11 computer, which introduced the words 'mouse', 'icon', and 'desktop' to the world. LISA was priced at US$ 10,000. Apple introduced Apple Macintosh in 1984. It was built inside a beige case and came with a black and white monitor, a mouse and a keyboard. It was the first personal computer with a floppy drive...
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