...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...
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...iPod MP3 Player The marketing objective for the iPod MP3 player is to be the leading supplier of MP3 players in all markets in which the company operates and to increase brand awareness to 60 percent of its customers. iPod’s marketing strategies is differentiated the market for their products are characterized in gender, age, and the desire for image. The Apple iPod is targeted at teenagers and young adults. Music is the essential part of everyone’s life and that is why Apple iPod came out with the MP3 player that is available in attractive colors and accessories. With such a high demand for this product, Apple was able to produce the product as well as other products such as the memory sizes, iPod shuffle, and iPod mini. These iPod items were manufactured into the iPod family that in return Apples customers were able to purchase their needs. Needless to say, this products life cycle has not ended yet, but other companies have followed what has made this product successful for their own products. The Apple Inc. company has managed each stage of the life cycle for this product well, and will continue to do so. The introduction phase of the Apple iPod was the iPod Classic. The iPod Classic was a hard drive based iPod that was first launched in October of 2001. This product was marketed towards the young adults and teenagers. Apple mainly focused on the interface and the ways to capture people’s attention. The iPod interface was sleek and customizable. The product...
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...Ipod The Prouct Life Cycle (PLC) signifies 4 common factors products have in common; 1. They have a limited lifespan; 2. Their sales pass through a number of distinct stages, each of which has different characteristics, challenges, and opportunities; 3 Their profits are not static but increase and decrease through these stages; and 4. The financial, human resource, manufacturing, marketing and purchasing strategies that products require at each stage in the life cycle varies (Kotler and Keller, 2006). A products life cycle follows a common structure, with 5 standard stages; introduction, growth, maturity, saturation and decline. Although realistically, most product don't follow such a prescriptive style. To know what stage in the PLC a products' in, a marketer should analyse the; sales, profits, customers, competitors and costs. Apples highly succesful and innovative iPod took the world by storm for many years, although new advances in technology and media devices are changing the stage in the PLC that iPod may be experiancing after years of succecess. The PLC allows marketers to determine revenue earned and helps contribute to strategic marketing planning by helping a company identify when a product may need support, reinvigorating, or redesign, and is a helpful tool in regard to forcasting and managing cashflow. However the PLC paradigm can over-emphasise new product release due to products reaching maturity, but the reality is more profitability can be created through...
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...Product Life Cycle Description The Product Life Cycle is like a snapshot in time. Pick 3 of your favorite products and identify it's current Life Cycle Stage and the marketing activities they are using. Evaluate the applicability of their activities and the effectiveness of them. Provide recommendations for additional actions. 300 words Product life cycle is the concept according to which there are four phases a product goes through during its life. They are named as introduction, growth, maturity, and decline stages. In first stage of a product, the company normally does not earn profits. Since after the introduction, it takes a certain time for the people to know about the product. It is, however, dependent on the suitability of the way with which the company markets the product. The second stage is growth during which the product becomes pretty much popular, so more and more people tend to purchase it. During the third stage the revenue generated by the product reaches its culmination point. Beyond this point you may find the product demand gradually declining towards its end. Likewise, iPod touch is now viewed as in its final stage of product life cycle. Although, the company has taken a step by redesigning it but the sales are yet expected to be limited. One of the most reasonable suggestions for the company is to improve the product by adding more features. This will increase the possibility for the product to survive in the market. One of the most...
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...Product Life Cycle Description The Product Life Cycle is like a snapshot in time. Pick 3 of your favorite products and identify it's current Life Cycle Stage and the marketing activities they are using. Evaluate the applicability of their activities and the effectiveness of them. Provide recommendations for additional actions. 300 words Product life cycle is the concept according to which there are four phases a product goes through during its life. They are named as introduction, growth, maturity, and decline stages. In first stage of a product, the company normally does not earn profits. Since after the introduction, it takes a certain time for the people to know about the product. It is, however, dependent on the suitability of the way with which the company markets the product. The second stage is growth during which the product becomes pretty much popular, so more and more people tend to purchase it. During the third stage the revenue generated by the product reaches its culmination point. Beyond this point you may find the product demand gradually declining towards its end. Likewise, iPod touch is now viewed as in its final stage of product life cycle. Although, the company has taken a step by redesigning it but the sales are yet expected to be limited. One of the most reasonable suggestions for the company is to improve the product by adding more features. This will increase the possibility for the product to survive in the market. One of the most...
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...The Apple product life cycles indicates just how big the iPhone and the iPad will be over the next few years. It took the iPod five years to break the thirty million units per annum mark. The iPhone got there in four and the iPad will make it in year two of launch. As for the Sony Walkman it never made it, it took over ten years to top out, the iPod topped out within eight years of launch. Apple product Life Cycles are moving faster and higher sooner than ever before. iPod sales may have peaked in 2008 at just under 55 million units and may fall to around 45 million units this year but the iPhone is set to sell just under 70 million units and the iPad is chasing fast behind. It all adds up to an exciting phase of growth for Apple over the next four years with revenues set to rise over $100 billion in 2011. Students of corporate strategy and business theory are familiar with the concept of the Product Life Cycle. Generally the life cycle is perceived to have four specific stages, introduction, growth, maturity and decline generally plotted with volumes a function of time. In the introduction phase, costs are high, sales volumes are slow, there may be little or no competition and customers have to be stimulated to action. Profits are limited and the product is cash extensive as marketing costs are substantial. Key customers tend to be innovators and early adopters. In the growth phase, unit costs are reduced as volumes increase, advertising is amortised over greater...
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...Presented By | Ayman YASSINE TABLE OF CONTENTS I. INTRODUCTION II. MARKET ASSASEMENT A. Market Characteristics B. Market Evolution C. Smartphones D. Consumers Analysis III. APPLE IPHONE A. Executive Summary B. Life Cycle Analysis C. PESTEL Analysis D. SWOT Analysis E. Porter Five Forces Completion Theory Model F. McKinsey 7S Framework IV. REFERENCES Apple Inc. (NASDAQ: AAPL; formerly Apple Computer, Inc.) is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; the Safari web browser; and iOS, a mobile operating system. As of July 2011, the company operates 357 retail stores in ten countries, and an online store where hardware and software products are sold. As of September 2011, Apple has recently been the largest publicly traded company in the world by market capitalization, and the largest technology company in the world by revenue and profit Established on April 1, 1976 in Cupertino...
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...PRODUCT ASSESMENT Tiffany Burke Professor Farrar MKT 100 July 28, 2013 Product Assessment Decline stage is defined as the product life-cycle; in which a product’s sales decline to low or negative growth rate in sales. During this stage of any product, sales are diminished and consumers’ taste shifts to a newer or better offering. Eventually what happens is profits fall and it makes not profitable to produce the product anymore. As a number of other companies dominate the market, it becomes increasing difficult for the company in question to maintain its level of sales. This is something in the case of digital music players like the Apple IPod. Profitability will fall, eventually to the point where it is no longer profitable to produce, and production will stop. As a number of companies start to dominate the market, it becomes increasingly difficult for the company in question to maintain its level of sales. Consumer tastes also change, as do new technologies which may make the product become ultimately obsolete (as in the case of CDs and DVDs, and now Blu-Ray).Profitability will fall, eventually to the point where it is no longer profitable to produce, and production will stop. As a number of companies start to dominate the market, it becomes increasingly difficult for the company in question to maintain its level of sales. Consumer tastes also change, as do new technologies which may make the product become ultimately obsolete (as in the case of CDs and DVDs, and now...
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...on the product that I will be writing about. In the case of the Apple Ipod I know what a great product it is because I own one. Since I know about the product it will be interesting to learn some of the marketing tactics that appeal to the market. I will also be looking at the product life cycle of the Ipod and where it stands today. I will enjoy getting to know one of the best known computer and electronics brands from the marketing standpoint. The first steps of the marketing process of the Ipod I will look are the objectives and marketing strategies. The Ipod is attractive to many different groups and age ranges. It is great for active people, travelers, children, teens and adults\. It is also small so no bulky system to carry around and you don’t have to take twenty CD’s to get a variety of music. They also have to look at the over all price and use that someone can get out of the product. It needs to be something that many people can afford, but not a piece of junk. These are just some of the things that I can think of the Apple would have discussed as some of their objectives. If I take all of the people that I mentioned before and now have to market the product to all of them that is where the work really starts. Apple has to reach as many people as possible with their marketing strategy. I know that there were many ads out for the Ipod such as magazines, internet and commercials. Now I want to take a look at the introduction stage of the process for the Ipod. Apple had...
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...was as instrumental in developing Apple as the two Steve’s “, he managed the company, created the company’s business plan and hired the first CEO. Priced at $1295 the AppleII was introduced to the world and eventually became the company’s best seller (for the time) but couldn’t produce a follow up machine that would attain the same customer base or support as the AppleII, the AppleIII was created but according to many sources it had too many engineering flaws, The Lisa was created but priced at $9995 it made almost unattainable for the ordinary citizen to own, thus began apples strategic drift. The Macintosh launched in 1984 2 years later than originally planned and in this time rival computer companies had already developed their own products and...
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...Apple’s iPad Nano is a product that consumers want to have. The iPad Nano will provide a tablet, which is easy to use, a smaller size and will allow greater convenience than the previous versions. The iPad Nano’s life cycle and factors are important to the iPad Nano. The positioning and differentiation strategies are tailored to the iPad Nano. Apple is known for its successful marketing campaigns. The iPad Nano’s pricing strategy will be competitive for luxury tablets. Attributes of iPad Nano Apple’s iPad Nano will not be the first tablet computer to reach the market, as Google, Amazon, and other companies have already entered. Building from the success of the iPad, Apple has sights on the iPad Nano exceeding expectations and generating a new revenue stream. Apple will make the iPad Nano available online, in Apple stores, and sold through partners such as Best Buy. The iPad Nano will offer most of the same features as the iPad, but at a cost-efficient price and at a time when saving money is important. The iPad Nano is a revolutionary device with its capabilities despite its small stature. The durable iPad Nano will be around six to seven inches and weigh less than one pound. The ultra-thin iPad Nano features a vivid 1024 by 768 resolution, LED touchscreen, and a long-lasting battery life that can fit perfectly in a pocket or handbag. Consumers will pick between two model types; Wi-Fi or Wi-Fi + Cellular. Consumers will also have options when selecting the storage capacity...
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... External Positive ● Highly technological society ● BRIC countries’ continued growth Internal Positive Internal Negative ● Steve Jobs’ health concerns ● Stagnant Desktop line ● Lack of netbook product line External Negative ● Global recession ● Poor IP protection in emerging markets Five Forces Model Threat of SubstitutionLow • Cost of switching F products is high • Product loyalty is strong Supplier Bargaining PowerModerate • Only two CPU manufacturers (Intel/AMD) • Small pool of talent to choose from Competitive Rivalry-High • Rapid and frequent product innovation by large firms • Product technology copying • Large firms with disparate unique strategies Buyer Bargaining Power-Moderate • Infrequent Customer Purchases • Customer Switching dd costs are high g • Recession creates decreased demand Potential new Entrants-Low •High barriers to entry •Incumbent firms spend to keep out new firms Apple Notebook Sales on the Rise! 12000 10000 8000 6000 4000 2000 0 2001 2002 2003 2004 2005 2006 2007 2008 Mac percentage of revenue has increased 15% since 2006… …and iPod’s percentage of revenue has decreased 20.8%. Notebooks Desktops D kt 2 5/14/2009 Product Life Cycles Introduction Growth Maturity Decline Product lifecycle curve iPhone iPod, all models Mac desktops Sales...
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...is the iPod with respect to the product lifecycle? Briefly explain your answer. From the 4 stages of product life cycle, Apple’s iPod is in the final stage i.e. decline phase of its product life cycle. INTRODUCTION STAGE In 2001, Apple introduced its first portable digital music player an iPod. Before iPod, Walkman and bulky flash memory based MP3 players were the choice. This iPod was introduced as a digital music player that can hold up to 1000 songs. It had a capacity of 5GB. It was brought in competition with digital music players of 32 and 64 MB capacities, which stored only few dozens of songs. iPod was made available with a price of $399 [1] and was advertised as a “1000 songs in a pocket” [2]. This white colored small device, with a greyscale display, huge storage capacity, and ease of use was a big hit, with the introduction. Instead of buttons this device had a wheel to control the menus of the system [3]. By the end of 2001, Apple has sold a total of 125,000 iPods [4]. Along with iPod Apple also introduced its customers to iTunes -a music store. Apple licensed the SoundJam MP Music player from a small company and hired its hotshot programmer, Jeff Robbin. Under the direction of Jobs, Robbin spent several months retooling SoundJam into iTunes [5]. iTunes- a music library is used by Apple’s customers to listen and download music. This first released iPod is known as First Generation iPod. The name itself indicates that it is not the first and last product introduced...
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...introduction. Although I am not really a fan of their products, there is no denying the huge success of Apple: the technology company now has the highest market capitalization in the world at $573 billion, which is more than Microsoft and Google’s valuation combined; the firm is the most admired company in the world; and the Apple brand value is worth $153.3 billion alone. The list is simple endless… Having only briefly spoken about Apple before, this post will show how the firm’s success is based on simple marketing concepts. The Product Life Cycle (PLC) [pic] Apple’s iPod is a textbook example of how to manage the PLC from introduction through to decline. The PLC consists of 4 stages: New Product Development, Introduction, Growth, Maturity, Decline. But it is the introduction and maturity stages where Apple’s marketing ability really shows. [pic] What sets Apple apart from every other technology company is how it utilises its Apple stores to create over-the-top product launch events and generate free publicity. Every time Apple launches a product (not just iPods), all employees make an effort to ensure each customer is congratulate the new owners. It is simple but effective: thousands queue outside – even camping out for several days – just to experience a product launch by Apple. This is entirely unique to Apple – one cannot even imagine consumers showing the same amount of passion for a Microsoft product. The stores are simply great for free PR. As...
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...and development introductions. And then it analysis’s the enterprise’s environment analysis models especially in external and internal ways to demonstrate how it works in the company. Finally, the essay discusses about the enterprise SWOT analysis methods, and according to all statements discussed, it gives some useful suggestions to the company in future. Strategic management analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. What kind of strategy a firm undertakes will influence the company development. Apple is the giant in computer industry, and how the company can achieve so great success, it is inseparable with their suitable strategy. Through analyses Apple’s products, market and strength or weakness, to see the strategy of the two companies, it will be a reference to other firms. Table of contents Strategic Management Change Analysis of Apple’s Company 1 Executive Summary 1 1. Introduction and background of the Apple’s company 4 1.1 Apple’s developing Profile 4 1.2 Apple’s kernel progressions 6 2. Enterprise strategic management analysis 7 2.1 Strategic management kernel plan 7 2.2 Management and leading strategic change 8 2.2.1 Jobs times strategic effects on Apple 9 2.2.2 Tim Cook times strategic effects on Apple 10 3. The Apple company’s environment...
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