1. I POD
CREATING AN ICONIC BRAND
BY :
SIDDARTH SONI (042)
SUDHANSHU KUMAR (043)

2. Contents:
• Introduction : I POD
• Apple’s History
• Launch : I POD & ITMS
• Economics of I POD
• Distribution Strategy
• Innovative Uses of I POD
• I POD Killers
• Future Steps

3. Introduction
• I Pod : Portable Digital Music player
• Indispensable piece of personal technology
• Market share : 78 % of portable digital music
players (Jan-2006)
• 14.1 million I Pod sold ( Q1 -2006)
• Market dominant through continuous product
Innovation and clever marketing

4. Apple- History:
• 1974- Steve Jobs & Steve Wozniak founder
• Predicted the Home computer Demand
• Introduced Apple II in 1977
• Public in 1980.
• John Srulley : Apple CEO in 1983.
• Launch of Macintosh with GUI.
• Abandoned Apple II in favor of Mac product
Line

5. • TV commercial “On January 24th, Apple
Computer will introduce Macintosh. And you’ll
see why 1984 won’t be like 1984.”
• In 1996 Apple bought NEXT, Jobs returned
back.

6. Launch : I POD & ITMS
• Napster shut in July 1984 by RAAI
• Sharing service : Peer to Peer.
• Opportunity for record companies for online
distribution.
• Late entry in Digital market with FireWire
• In 1991 Tony Fadell’s hired by Apple to Market.
• Nov2001 Ipod launched (after 11 sept –decline
economy)
• ITMS store launched in 2003
ipod Timeline Intro

7. Economics of I POD
• Razor Model turned upside down
• Meager profit of $0.04,net profit resulted $20
million
• Reinvent the entire Music business
• Jobs pushed designer & engineer
• Silhouettes everywhere –Print ads,Toronto
subway,Macworld,Newsweek & Wired Magazine.
• Ads during 2004 Super Bowl – teenager
• Famous songs only on ITMS
• IPOD night events

8. • Apple’s IPOD and Itune are part of the digital
hub.
• Relationship marketing
• POD
• To prevent ipod killers from cropping up –
sustainable competitive advantage
• Company currently will not relinquish its
digital rights and allow iTunes to be a
universal product
• Copy protection and prevention of piracy

9. • Targeted at the niche market creating product
desirability
• Marketed Ipod as a life style product, instead
of just another mp3 player.
• Brand recognition high, because of same
design
• Experimental marketing, promoted ipod as an
enriching factor.

10. • Secondary brand association
• Target audience – Teenager and electronic
geeks
• Product nature
• Enhance the sales of other product – Halo
Effect

11. • Product innovation has been the core
branding strategy
• Sustain the desirability
• Target is teenage, video games will enhance
the value proposition