Marketing Plan:Phase Iii

iPod Freedom Paper III

The "iPod Freedom" provides not only significant storage capacity to the tune of 90GB for downloading MP3s, but it also gives customers the power to listen to unlimited radio channels via a Satellite Radio subscription or a previously synchronized home media library set, while obtaining reliable navigation services (GPS) whenever customers want or need it.

The following paper will illustrate the attributes of the iPod Freedom; it will describe the rate at which the device is expected to move through the product development life cycle as well as any factors influencing its market advancement and identify the position and differentiation approach utilized for marketing the iPod Freedom. Lastly, an adequate cost strategy formulation that should be used for the product will be discussed in an effort to provide a descriptive product summary as the iPod Freedom is launched to market.

The Apple iPod Freedom Attribute Description

A detailed description of Apple's personal music device with GPS convergence, known as the iPod Freedom lists device aesthetics such as sleek, curved corners, dimensions of "115mm x 61mm x 11mm" (Humblefrog, 2007), which is slightly larger than a box of playing cards. The device possesses a bright 2.5-inch color liquid crystal that "displays 65,536 colors in all their backlit glory (Frakes, 2004)" for vibrant video or podcast viewing while making use of a chip designed for earlier versions of the iPod series that already supported video functions., and an extended 12-hour continuous play battery life.

Other important characteristics include the integration of Apple's native software complimenting a full music library on the go, operated by a very functional scroll wheel used in conjunction with an intuitive graphical user interface menu allowing for choices between satellite radio functions, stored media playback, and detailed GPS interface navigation. A dock connector on the bottom of the device enables connectivity between the Freedom and a desktop computer for updating software or home media library synchronization, and the build in speaker adds value during audio playback and audible navigation. In addition to the GPS providing with the shortest timesaving solution of acquiring turn-by-turn directions, the built in GPS receiver also features a "reset GPS for this location" option that updates the satellite list for providing with up to date point of interest data while navigating.

Position and Differentiation

Differentiation strategy is an integrated set of action designed to produce or deliver goods or services that customers perceive as being different in ways that are important to them. It calls for sales of non-standardized products to customers with unique needs (Kotelnikov, 2007). The iPod Freedom is a devise like no other. The move in the industry for personal mobile devises is consolidation. Meaning consumers want to integrate all their mobile devises in one or few pocket size systems (Hickey, 2006). Separately, markets already established for GPS mapping devices as well as portable music (MP3) devices. The iPod Freedom will lead the way in the market of combined functionality MP3 player plus GPS convergence. Even if a competitor is out there, nothing beats the full integration capabilities that iPod Freedom has with the rest of the Apple products. The Apple product has already championed the title of easy to use and iPod Freedom is not deviating from that perception. In-fact the iPod Freedom is conceived with upgraded abilities to insure it's dominance in the saturated technology market.

Team C's has plan to position the iPod Freedom, in several ways. First team C will take the high grounds of being the only GPS/MP3 portable device all in one. Since iPod Freedom will be the first introduce and market the concept to the public, the need to take advantage of pioneer achievement is critical. Second iPod freedom will be the iconoclast device, marketing it to the inner geek that wants to look cool but well equipped. The iPod Freedom has curves as well as gigabits! The third concept will touch on the human aspect of iPod freedom, emphasizing the smaller global community, being able to travel and find places in our ever shrinking world, with the GPS function find ones store, ones family and ones dreams. These qualities will push for the need to integrate as well as living life on the portable side.

Price Strategy

Price is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. (dictionary.com, 2007) In pricing the new iPod Freedom, Apple is using product line pricing. Pricing strategies sets the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices. Apple also sets the iPod Freedom's pricing based on value pricing, which offers just the right combination of quality and good service at a fair price. This can be identified by Apple's offer of different kinds of iPods. Apple offers the following iPod products (apple.com, 2007):

Ð'* iPod shuffle that allows the user to personalize his or her music with iTunes, and it sells from $79.

Ð'* iPod nano that boasts the standard features of iPod but sports less memory and shorter usage time, in a fashionable packaging, and is priced from $149.

Ð'* iPod classic model. It weights only 5.6 ounces and can holdup to 40,000 songs, which sells from $249.

Ð'* iPod touch comes with a large LCD screen available in 8GB or 16GB. It also has wi-fi browsing and can take photos. The iPod touch is priced starting at $299.

From this variety of iPod products, Apple can adjust the iPod Freedom to meet the needs of different target customers;