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NEW PRODUCT DEVELOPMENT

APPLE iPod.
                          SHACHI VERMA
                          SHIVANI NAMDEO
                          BITM PUNE
CATEGORIES OF NEW PRODUCT
•   New to the world product
•   New product line
•   Addition to existing product line
•   Improvement & revision of existing products
•   Repositioning
•   Cost reduction
CATEGORIES OF NEW PRODUCT
• New to the world product
•   New product line
•   Addition to existing product line
•   Improvement & revision of existing products
•   Repositioning
•   Cost reduction
NEW TO THE WORLD PRODUCT
• iPOD
• World’s first Multi-Touch mouse
• iPAD
CATEGORIES OF NEW PRODUCT
• New to the world product
• New product line
•   Addition to existing product line
•   Improvement & revision of existing products
•   Repositioning
•   Cost reduction
NEW PRODUCT LINE



 iMAC    iPOD   iTUNE




iPHONE   iPAD    APPLE
                  TV
CATEGORIES OF NEW PRODUCT
• New to the world product
• New product line
• Addition to existing product line
• Improvement & revision of existing products
• Repositioning
• Cost reduction
ADDITION TO EXISTING PRODUCT LINE
iMAC          iPHONE       iPAD         iTUNE         iPOD           Apple TV
iMac G3       iPhone       iPad         Acquired in   iPod Classic   September
1998          2007         (original)   2000          1G-6G          12, 2006
                           2010
iMac G4       iPhone 3G    iPad 2       iTunes 1.0    iPod Mini      First Gen.
2002          2008         2011         2001                         January 8, 2007

iMac G5       iPhone 3GS                iTune U       iPod Nano      Second Gen.
2004          2009                      2007                         September 1, 2010


iMac (Intel   iPhone 4                  iMix          iPod Shuffle
plastic)      2010
2006
iMac          iPhone 4S                               iPod Touch
(Aluminum)    2011
2007


iMac
(Aluminum
Unibody)
2009
CATEGORIES OF NEW PRODUCT
•   New to the world product
•   New product line
•   Addition to existing product line
•   Improvement & revision of existing products
•   Repositioning
•   Cost reduction
IMPROVEMENT& REVISION OF EXISTING
PRODUCTS
  .APPLE IPOD
• Everything about the iPod is changing. Everything
  includes the price, the size of the actual iPod to the
  number of songs it actually holds, the colors it
  becomes available in, the target market, its
  competitors and more.
• The iPod became a quick success. Overtime in the
  growth stage, Apple has seen quite an S-curve with
  the sales of the iPod. The market is still continuing
  to expand, however overtime it is at a slower rate.
HISTORY OF IPOD


    October 2001, Apple unveiled first generation
    iPod. 1.8” Hard drive 5 GB
•   March 2002, Apple introduced 10 GB model of
    first generation iPod.
•   Second Generation iPod was introduced on
    July 17, 2002.
•   Touch sensitive wheel
•   10 GB & 20 GB
CATEGORIES OF NEW PRODUCT
•   New to the world product
•   New product line
•   Addition to existing product line
•   Improvement & revision of existing products
• Repositioning
• Cost reduction
.
                       REPOSITIONING
                • From the original iPod came iPod minis,
REPOSITIONING

                  iPod shuffles, iPod nanos, and eventually
                  the iTouch. Accessories such as the
                  iLounge and the iHome are other products
                  complimenting the original iPod. Each one
                  of the extensions is now perceived with the
                  same quality and image as the original
                  iPod. They have created more awareness
                  and assurance for the Apple brand and the
                  signature “i”.
REPOSITIONING
   . Apple as a company is striving to
   become an economic friendly
   company and is implementing
   tradition and change in our society
   which is their environment-oriented
   value.

   Apple changed the packing of the
   fourth-generation iPod Nano to a
   much lighter package that uses less
   than half of the volume than previous
   packaging. A positive step was also
   taken when recycling programs
   began in Asia, Europe and Australia.
CATEGORIES OF NEW PRODUCT
•   New to the world product
•   New product line
•   Addition to existing product line
•   Improvement & revision of existing products
•   Repositioning
• Cost reduction
COST REDUCTION
• According to analysis conducted by iSuppli Corp
  in 2008.
• iPhone 3G sports an evolutionary design that
  favours cost reduction instead of cutting-edge
  features.
• Supporting Apple Inc.’s goal of expanding its
  market share and achieving a worldwide.
• At $174.33 cost of the new iPhone was less than
  the $227 that iSuppli estimated for the first-
  generation
When coming into the market
             iPods were on the expensive
             side due to the fact that it was a
             new technology and product
             that was unfamiliar to the
             world. It was the first in its
             product line. Realizing the
             sales opportunities being
             missed out on in the middle and
             lower classes, the iPod
             products and prices changed to
             accommodate to meet the
             social structure differences.
             The middle class makes up
             70% of the social structure and
iPod touch   includes the working class
             which brings in a large amount
             of income and purchasing
             power
Co-Branding
Teaming up with the ever
famous Nike brand, the
Nike+ was created. This
product is a running shoe
which uses the iPod and
iTunes to play appropriate
paced music, as well as
track a runner’s speed and
distance (Nike, 2009). By
doing this, the Apple iPod
has placed their name with
another high end, high
quality brand, giving them
both more credibility and
more exposure to a
different target market.
Mac Desktop

 1%           6%                  Mac Portables
        5%         17%
10%                               Ipod

                                  iTunes - Other Music
                         26%      Related products & Services
                                  Iphone & Related products
      35%                         and Serivces
                                  Peripherals & other
                                  hardware
                                  Software, service, and other
                                  net sales




             Revenue by product
VIDEO!!!
THANK YOU!!!

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New Product Development Strategies of Apple iPod

  • 1. NEW PRODUCT DEVELOPMENT APPLE iPod. SHACHI VERMA SHIVANI NAMDEO BITM PUNE
  • 2. CATEGORIES OF NEW PRODUCT • New to the world product • New product line • Addition to existing product line • Improvement & revision of existing products • Repositioning • Cost reduction
  • 3. CATEGORIES OF NEW PRODUCT • New to the world product • New product line • Addition to existing product line • Improvement & revision of existing products • Repositioning • Cost reduction
  • 4. NEW TO THE WORLD PRODUCT • iPOD • World’s first Multi-Touch mouse • iPAD
  • 5. CATEGORIES OF NEW PRODUCT • New to the world product • New product line • Addition to existing product line • Improvement & revision of existing products • Repositioning • Cost reduction
  • 6. NEW PRODUCT LINE iMAC iPOD iTUNE iPHONE iPAD APPLE TV
  • 7. CATEGORIES OF NEW PRODUCT • New to the world product • New product line • Addition to existing product line • Improvement & revision of existing products • Repositioning • Cost reduction
  • 8. ADDITION TO EXISTING PRODUCT LINE iMAC iPHONE iPAD iTUNE iPOD Apple TV iMac G3 iPhone iPad Acquired in iPod Classic September 1998 2007 (original) 2000 1G-6G 12, 2006 2010 iMac G4 iPhone 3G iPad 2 iTunes 1.0 iPod Mini First Gen. 2002 2008 2011 2001 January 8, 2007 iMac G5 iPhone 3GS iTune U iPod Nano Second Gen. 2004 2009 2007 September 1, 2010 iMac (Intel iPhone 4 iMix iPod Shuffle plastic) 2010 2006 iMac iPhone 4S iPod Touch (Aluminum) 2011 2007 iMac (Aluminum Unibody) 2009
  • 9. CATEGORIES OF NEW PRODUCT • New to the world product • New product line • Addition to existing product line • Improvement & revision of existing products • Repositioning • Cost reduction
  • 10. IMPROVEMENT& REVISION OF EXISTING PRODUCTS .APPLE IPOD • Everything about the iPod is changing. Everything includes the price, the size of the actual iPod to the number of songs it actually holds, the colors it becomes available in, the target market, its competitors and more. • The iPod became a quick success. Overtime in the growth stage, Apple has seen quite an S-curve with the sales of the iPod. The market is still continuing to expand, however overtime it is at a slower rate.
  • 11. HISTORY OF IPOD October 2001, Apple unveiled first generation iPod. 1.8” Hard drive 5 GB • March 2002, Apple introduced 10 GB model of first generation iPod. • Second Generation iPod was introduced on July 17, 2002. • Touch sensitive wheel • 10 GB & 20 GB
  • 12. CATEGORIES OF NEW PRODUCT • New to the world product • New product line • Addition to existing product line • Improvement & revision of existing products • Repositioning • Cost reduction
  • 13. . REPOSITIONING • From the original iPod came iPod minis, REPOSITIONING iPod shuffles, iPod nanos, and eventually the iTouch. Accessories such as the iLounge and the iHome are other products complimenting the original iPod. Each one of the extensions is now perceived with the same quality and image as the original iPod. They have created more awareness and assurance for the Apple brand and the signature “i”.
  • 14. REPOSITIONING . Apple as a company is striving to become an economic friendly company and is implementing tradition and change in our society which is their environment-oriented value. Apple changed the packing of the fourth-generation iPod Nano to a much lighter package that uses less than half of the volume than previous packaging. A positive step was also taken when recycling programs began in Asia, Europe and Australia.
  • 15. CATEGORIES OF NEW PRODUCT • New to the world product • New product line • Addition to existing product line • Improvement & revision of existing products • Repositioning • Cost reduction
  • 16. COST REDUCTION • According to analysis conducted by iSuppli Corp in 2008. • iPhone 3G sports an evolutionary design that favours cost reduction instead of cutting-edge features. • Supporting Apple Inc.’s goal of expanding its market share and achieving a worldwide. • At $174.33 cost of the new iPhone was less than the $227 that iSuppli estimated for the first- generation
  • 17. When coming into the market iPods were on the expensive side due to the fact that it was a new technology and product that was unfamiliar to the world. It was the first in its product line. Realizing the sales opportunities being missed out on in the middle and lower classes, the iPod products and prices changed to accommodate to meet the social structure differences. The middle class makes up 70% of the social structure and iPod touch includes the working class which brings in a large amount of income and purchasing power
  • 18. Co-Branding Teaming up with the ever famous Nike brand, the Nike+ was created. This product is a running shoe which uses the iPod and iTunes to play appropriate paced music, as well as track a runner’s speed and distance (Nike, 2009). By doing this, the Apple iPod has placed their name with another high end, high quality brand, giving them both more credibility and more exposure to a different target market.
  • 19. Mac Desktop 1% 6% Mac Portables 5% 17% 10% Ipod iTunes - Other Music 26% Related products & Services Iphone & Related products 35% and Serivces Peripherals & other hardware Software, service, and other net sales Revenue by product

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