Apple Ipod

Executive Summary

For the last 31 years, Apple has been providing consumers with computer systems, peripherals and more recently, consumer electronics.

The intent of this report is to summarise the marketing elements that have contributed to Apple's successes as well as its failures.

Apple has been in operation since 1976 and had gone through ups and downs in the industry, from good beginnings to a less fruitful period while households implemented the use of Windows-based computers. More recently Apple has "comeback" with the popular iPod range of portable media players.

Some of the most popular marketing campaigns have been the "1984" commercial based on the George Orwell book of the same name, while the "Lemmings off the cliff" was considered a marketing blunder. Most recently the PowerBook, iPod and new "Get a Mac" commercials have proved successful, however some are criticised for Apples patronising tone of Windows users which is insulting to potential customers.

The author suggests making Apple products more accessible for people with disabilities as well as making them more environmentally friendly. For such an innovative company, Apple is lagging behind other technology giants in making their products environmentally friendly.

Apple employs price skimming as well as market-penetration techniques with its pricing and uses various distribution channels to sell its products, from their own Apple Store to various resellers, such as Dick Smith.

Apple divides the market into many segments by recognising that educational and commercial markets are separate and must be marketed differently, and further segmented those to be able to appeal to a wide audience.

Apple is has an organic company which focuses on human-centred development process while selling products under an umbrella brand strategy.

Apple use market penetration and diversification to sell to a wider audience by developing new products and developing the market.

Apple trademarks and patents all of their designs and inventions, even if they might seem illogical to a critical mind; however through this it is shows that Apple is protecting their look-and-feel on every front, down to the smallest detail.

Apple has a long way to go before it becomes the giant that Microsoft and IMB are, however they are on the right path, and are constantly making waves in the world of technology.

Table of Contents

Executive Summary 2

Table of Contents 3

1.0 Introduction 4

2.0 Company Background 4

3.0 Marketing programs 5

3.1 Past 5

3.2 Present 6

4.0 Product Improvement 7

5.0 Pricing policy 7

6.0 Distribution channel performance 8

7.0 Marketing mix strategies 8

8.0 Organisational structure 10

9.0 Brand strategy 10

10.0 Growth using Ansoff Matrix 10

11.0 Intellectual property 11

12.0 Recommendations 11

13.0 Conclusion 11

14.0 Bibliography 13

1.0 Introduction

This report aims to outline the Apple Inc. by looking at their marketing programs, marketing mix strategies, products as well as distribution channels and how they deal with their intellectual property in this time of innovation and technological advancement.

2.0 Company Background

Apple is an American consumer electronics corporation, with headquarters in California. They have a well known line of personal computers, operating systems and the line of portable media players, which have proved to be by far the most successful.

Specialising in the development, sale and support of personal computers, portable media players, computer software and hardware accessories, Apple was founded in April of 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Their first headquarters was a garage that belonged to Jobs' parents.

By 1977 the Apple II was introduced to the market and despite a higher price then its competitors and quickly became a market leader and a milestone in personal computing. In the early 1980s Apple struggled to compete against IMB and Microsoft giants within the corporate marketplace but managed to sustain growth due to its leadership in the education system.

From 1989 to 1997, a time in which Steve Jobs was absent from Apple, the company learned several painful lessons but also came out with many successful products such as the PowerBook, a new and improved Mac OS, branched out into consumer electronics, lost market share to Microsoft Windows, then tried to sue Microsoft, only to later form an alliance with them. They also announced a new online retail store and new machines using the G3 PowerPC processor.

1998 and beyond were most definitely the most fruitful years for Apple. Besides the introduction of the iMac, Power Mac G5, Mini Mac as well a lot of software like the Mac OS X, Final Cut Pro, iMovie and iPhoto, they came out with the iPod, which has proved to be a cultural phenomenon.

Most recently Apple has gone into partnership with Intel and at the time of writing, is about to begin shipping its Apple TV product, while the buzz in the media surrounds its newest product, the iPhone.

3.0 Marketing programs

3.1 Past

Like any other company that has been around for so many years, Apple has had many marketing and promotional programs in the past, some having success and some not. Here is an overview of some of the most prominent campaigns.

An 18-page brochure was an addition to various publications in December 1983, aimed to introduce the brand to consumers. Later that same year Apple ran a promotion titled "Test Drive a Macintosh" which allows potential buyers to