Life Cycle Management Analysis for Apple’s iPod
MKT / 230
September 6, 2009

Life Cycle Management – Page 2

The Apple iPod allows consumers to download music, videos, and various other entertainment items. The iPod can be seen everywhere from the gym to the local coffee shops. Even automakers have started to install iPod outlets in newer vehicles to draw a new kind of consumers to their autos.
This report will provide some insight into Apple’s product objectives, marketing strategies, introduction phase, product growth, maturity stage, and decline of product in the market place. Product life cycle typically consists of five main aspects: (1) product development; (2) introduction; (3) growth; (4) maturity; and (5) decline.
Various marketing objectives that will help the company achieve the overall product goal are as follows:
 Be the leading supplier of MP3 players in all markets in which Apple competes.
 Increase product sales.
 Increase company revenue.
 Increase brand awareness.
 Expand distribution to department stores.
 Develop a campaign to encourage current users to increase current use of product.

Life Cycle Management – Page 3

During the introduction stage, Apple made careful choices with their marketing strategies by paying close attention to pricing, promotional and placement decisions. The introduction of the iPod transformed Apple into an entertainment giant. Apple’s approach to introducing the iPod to consumers was geared more towards young adults. The iPod was introduced in October 2001, the iPod touted a quicker transfer time, it is easy to use, has a unique look, and is fashionable.
The growth stage in the product life cycle will usually involve a rapid growth in sales. Consumer’s awareness of Apple’s iPod increases during the holiday season it was on just about everyone’s wish list. Since the first iPod hit the market in 2001, Apple has invested in new product features and has developed the next generation of iPods. Before the introduction of the new generation iPods, Apple decreased the price of the original iPod pre holiday season. By doing, this Apple made an iPod available to suit everyone’s budget.
The maturity stage in the product life cycle usually marks the turning point for a product. Sales will decrease during this stage of the cycle. Apple has sold over 140 million iPods. The modifications that Apple continues to add to the iPod line should continue to boost the demand for this product. The introduction of the iPod touch helped to support demand for this product. The iPod touch helped reverse slowing sales. This was a positive sign for Apple in light of the product slowdown. Apple’s iPod sales have mirrored the product life cycle.

Life Cycle Management – Page 4

In January 2009, Apple announced financial results for its fiscal 2009 first quarter earnings. The company posted record revenue of $10.17 billion in profits. Sales from Apple’s iPod contributed 33% to this record earnings profit.
When iPod was first launched, it was geared towards young adults ages 12 to 25. The iPod has changed and seems to be gravitating towards mainstream due to market saturation. Consumers today are media savvy and with a click of a mouse, they are able to obtain product information, and reviews be it good or bad in seconds.
A few things could lead to further product decline in the market place. New competitors enter the market placed all the time and usually with a comparable product at a lower cost. There have been tough laws placed on internet downloads for MP3 players like the iPod, these laws have had an effect on iPod + iTunes. Another factor is today’s economy, consumers are watching their money, they are comparison shopping and Apple’s iPod high price could be the deciding factor on their purchase.
Apple has created a popular product, as well as a strong product awareness marketing strategy, which gives them the advantage over competitors. The company has been successful thus far with branding strategies, marketing, and product development. Apple will need to continue to using the right media outlets with current and new products.

Life Cycle Management – Page 5

To help decrease product decline Apple will need to readjust some of their marketing strategies to meet the budget minded consumers in today’s economy. As well, as continue to improve public relations and image. The company will also need to gain and keep the competitive edge by continuing to create new innovative features, which will differentiate the iPod from the competitor’s product. For example if Apple were to create a cordless earpiece for the iPod line using new technology, they would be opening up a completely new market.
Overall, Apple’s iPod has become a must have and a mainstay to many consumers. As long as the company is able to continue to stay on top of the competitive market, the iPod will be around for a while.

Life Cycle Management – Page 6

References:

(Unknown) Apple’s Marketing Strategy Podcast, Retrieved September 6, 2009 from: http://www.marketingtown.net/podcast (Unknown) “Apple Reports First Quarter Results”, Retrieved September 6, 2009 from: http://www.apple.com Shanker, S, (April 2007) “Is Apple iPod Losing its Shine?” Retrieved September 5,
2009 from: http://www.marketinginteractive.com/news/690
(Unknown), “A Look at Apple’s iPod Product Line,” Retrieved September 5, 2009 from: http://istockanalyst.com/article/viewarticle Conley, J, (2009) “Trademarks, Not Patents: The Real Competitive Advantage of the
Apple iPod”, Retrieved September 5, 2009 from: http://www.core77.com/reactor/12.05_ipod_trademark.asp