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University: Guangdong University of Foreign Studies School: School of Politics and Public Administration Major: 20094+0Global Economy and Trade Name: Li Yaojie

Abstract:
Nowadays, with the dramatic development of consumer market and the sustained growth of electronics industry, more and more corporations around the world are all intended to enter the electronics industry in order to gain a larger amount of profits. However, there are only few corporations can survive in the fierce competition. Apple Corp., as an American computer corporation, did make its stable stand in this market with its creative product development and innovative marketing. Therefore, the purpose of this case study is to have an analysis and a discussion on the case of Apples product development and innovative marketing by demonstrating and explaining the whole process of IPODs development and the marketing design for IPOD and also for apple. After the analysis, this research will have a further research on the revelation of how to develop the products with creativity and innovation and how to design the appropriate marketing among Chinese corporations. In this paper, case study is the main research method. Moreover, this case study will analyze ipod by using SWOT analysis model, and have a research on the ipod development, Apples customers-oriented product development, and the innovative design of marketing by lecture reviewing.

and produces consumer electronics, computer, system, music player and cell phone. The Apple's products----the iMac, the iPod, the iPhone and the iPad and the Apples software----the iTunes media browser and iTunes online music stores are well-sold throughout the world. As of January 2010 the company operates 284 retail stores in ten countries, and an online store where hardware and software products are sold. As of 2010, it is one of the largest technological corporations in the world by revenue. Apple Inc was established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, but for that time the company was called Apple Computer, Inc., but removed the word "Computer" on January 9, 2007 to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. As of September 26, 2009, Apple had 34,300 full time employees and 2,500 temporary full time employees worldwide and had worldwide annual sales of $42.91 billion in its fiscal year ending September 26, 2009. For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. The founder of iPod----Steve Jobs Steve Jobs, who born on February 24, 1955, is an American business celebrity, and the co-founder and chief executive officer of Apple. After the return to Apple as the CEO, Steve Jobs turned Apple around. He branched out the company, and introduced the iPod portable music player, iTunes digital music software, and the iTunes Store, the company made forays into consumer electronics and music distribution. In 2007, Apple entered the cellular phone business with the introduction of the iPhone, a multi-touch display cell phone, iPod, and internet device. He constantly appeal and support the

Keywords:
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Introduction
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stimulation of innovation and creativity which were reflected by IPOD, IPHONE etc.

Product Development of IPOD


SWOT Analysis of IPOD Strengths IPOD is a Music Player with large capacity and volume which can contain more than 1,000 songs, thousands of pictures. IPOD is not just simply a player but is a fashion statement and a piece of jewellery. People who use IPOD will be perceived as a fashion people and icon. Moreover, IPOD can have an excellent integration with software, the iTunes, so that the users can buy, download and transfer the song into the IPOD. Also, the button of IPOD is another shining point, because users can easily search or select the sons they like only by sliding the circle button instead of clicking the button thousands of times. The most important one is that IPOD has a loyal customer base. Weaknesses Although IPOD has competitive advantages toward the other Mp3 Players, it still has some weaknesses. Firstly, the price of IPOD is more higher than other products, which means that the covered customers are limited, because not everyone can afford the high price. In addition, IPOD can only be available to iMac, not every personally computers, so that the customers who use the other brands of computer can not transfer the information and songs into IPOD, and they would not buy it. Opportunities To some extent, IPOD did have its opportunities. The product----iMac has a loyal customer base who will also be loyal to the product of Apple, that is to say, they will buy the IPOD too. Whats more, IPOD is now becoming a phenomenon and culture of society of America, which can prompt the sales of IPOD as more and more potential customers and celebrities are affected by this culture. People just desire to have their own music and listen, thus, as the IPOD is integrated with ITUNES, people will be willing to buy IPOD and purchase songs through ITUNES. Threats As there are a great number of enterprises and manufacturers intend to enter the electronics market, Mp3 market, and eager to gain market share, the

competition becomes fierce. Besides, the functions profilesMp3 Players turn out to be similar and some copycats appear so that people can not differentiate the product of different brands easily. Therefore, if IPOD isnt able to make some differences will lose the competition. The Process of the Development of IPOD Timeline of iPod models

(Sources: Apple press release library, Mactracker Apple Inc. model database)

As for the timeline of IPOD, in late January of 2001, after launching the software iTunes, Apple decided to enter Mp3 market, and started to make the IPOD. Then, with the efforts of nine months researching and developing, on October the 23rd, IPOD which can only be used in iMac was introduced by Steve Jobs. Almost two years later, on April the 28th, 2002, IPOD 3 generation and the iTunes online music store were put on the market. Moreover, the IPOD of this generation can be available to not only iMac but also the other computers. And we can see from the graph showing above, Apple diversify IPOD into different categories, such as IPOD NANO, IPOD Shuffle, IPOD Touch, IPOD Classic etc, in order in meet different kinds of customers and their needs. Key Processes of IPODs Development Market Research---- Before started developing IPOD, Apple have conducted a market research on the Mp3 Market. After the finishing the analysis on the Mp3 Market, Apple found that in the Mp3 Market, therere some Mp3 products. For instance, Diamonds flash-based Rio, first Mp3 PlayerMPMAN, and the Compads hard-drive based Players. However, these kinds of Mp3 Players are not the ones people want, and they can capture the eyes of the customers. Moreover, Apple found that the strong electronics

corporation, Sony, did not get into the Mp3 market. Therefore, given to this situation, Apple decided to make a stand in this Mp3 market, and develop IPOD. Customer-Oriented---- Li and Calantone determined that a customer knowledge process enhances new product advantage because it enables a rm to explore innovation opportunities created by emerging market demand and reduces the potential risk of mis-tting buyer needs.( Li and Calantone, 1998) Results of a study conducted by Industry Week revealed that poorly dened customer needs was the most frequent reason given by respondents for product development delays or failure. (Osborne, 2002). As for the process of IPOD development, it was customer-oriented. Apple tended to know the customers for what they need, what they want and the drive to purchase. Thus, when developing the IPOD, Apple concentrated on the best experience of listening music and required a high level of sounds, the buttons, the functions etc. Steve Jobs also expressed his appeal to the simplicity of IPOD. That is to set fewest switch buttons, polishing and simplify the design, because the customer will not need Mp3 Player with too many functions. The purpose of designing IPOD is to save and manage the music carefully and comprehensively. But, due to Apples customer-oriented product development principle, Apple integrated the IPOD with the iTunes, so that once the customers buy the IPOD, and install the free software iTunes, they can transfer the music into the IPOD and buy music simply through using the iTunes. Differentiated Development----Due to the Convergence of the Mp3 Players and the more and more rivals in the market, Apple should differentiate the IPOD with other MP3 Players. For achieving this objective, Apple simplify the function of IPOD and mainly focus on music and the profiles. IPOD polish the profile of IPOD and make it as a symbol of fashion and jewellery, additionally, IPOD developed their unique switch buttons which can make the process of selecting songs more convenient. By doing this, Apple successfully differentiated IPOD with the other products.

Apples Innovative Marketing


Marketing Mix of Apple Product Strategy----Apple has developed a wide range of products, such as IPOD, iMac, iTunes and iPad. And for each kind of products, for example, the IPOD, it provide four series of products---IPOD Nano, IPOD Classic, IPOD Shuffle, and IPOD Touch. And for each of the series, Apple offers different capacities, colors and accessories. The aim of this product strategy is to fulfill the customers requests with comprehensive products and services. In addition, Apple not only offered Music Players, but also reinforce the IPOD by integrating IPOD with iTunes. By doing this, Apple covered the whole process of music experience----Buying and downloading the music, songs, transfer to Players and enjoying them. The critical point is that, the Apples logo and the white earphone have become symbol of Apple, which are easy for the customers to recognize. Pricing Strategy----The price setting of IPOD seems to be a weakness, but in some ways, high price setting can be a good way to differentiate the products with the rival products. IPOD set a higher price than other Mp3 Players and not only differentiate IPOD with other Mp3 Players but also enhance the awareness of customers and maintain a high class of IPOD. Distribution Strategy---- Not like the other manufacturers, Apple chose to establish their own distribution channel, that is franchised store. However, the franchised store is not just simply a store but it is a mix up of selling, after-sales services and experiencing. People can use the sample to experience the journey of music. In this way, the store is more than a distribution channel, it can be a medium to attract the potential customers and promote the product. Innovative Marketing of Apple The Elements of Advertisements----Apple really pay attention to the advertisement. Apple spent a great deal of capital on making the advertisement. However, the essence is not the large expenditure of advertisement. The essential part is the creative elements on the advertisement. Apple post their slogan----think different on their advertisement in order to promote the products and express its unique

culture and belief. The other elements of the advertisement will be the pattern of Apple and the white earphone. Generally speaking, the earphone will not be recognized by the manufacturers, but Apple did concentrate on this. Apple put the white earphone on the advertisement, which can attract the awareness of the customers and differentiate the products. People can easily recognize the products of Apple when the look at the white earphone. Keeping Secrets Strategy----There is a special culture in Apple. The product information will not be published or released till the time of product launch. That is to say, Apple is committed to keep the secrets of the products from the customers, which can have a positive influence on the marketing. When keeping the information of the products, the customers and the media will be longing to know the details and information of the products, therefore, Apple perceive this as a opportunity to bring out the potential consuming ability of the customers. Because of the support of the strong brand and the outstanding products, Apple used the strategy of keeping secrets to build a large customer base, and this strategy cost barely few expenditure.

develop products with originality, innovation and creativity. Also, Chinese manufacturers should build up the strong brand by implementing marketing strategies and take the advantage of the brand value. In brief, when admiring the great success of Apple, we should be cautious about the product development, the brand equity and the how to promote the product and add values to the customers. Only by fulfilling the customers can a product sell well.

References
"Apple Tablet Media Event Today: "Come See Our Latest Creation"". MacRumors. January 27, 2010. Retrieved January 27, 2010. Apple Investor Relations FAQ, Apple inc. Retrieved on March 2, 2007. Markoff, John (January 9, 2007). "New Mobile Phone Signals Apple's Ambition". The New York Times. Retrieved January 9, 2007. "Revised Request Quarterly Income Statement". Apple Inc.. January 25, 2010. Retrieved January 25, 2010. Http://en.wikipedia.org/w/index.php?title=Steve_Jobs&old id=363838477 Calantone, R.J., Cavusgil, S.T. and Zhao, Y. (2002), Learning orientation, rm innovation, and rm performance, Industrial Marketing Management, Vol. 31, pp. 515-24 Osborne, R. (2002), New product development lesser royals, Industry Week, April

Conclusions
It is concluded that, the customer-oriented and differentiated product development led to the appearance of phenomenal products, IPOD. And the innovative marketing, creative advertisement and keeping secret strategy gave birth to the outstanding success of Apple. With the innovative product development and marketing, Apple not only make a large and stable stand in the market, but also create a special culture and social phenomenon. Recently in China, although therere hundreds of thousands of manufacturers in the electronics market, and some of them did gain market share, such as MEIZU, NEWMEN, some manufacturers just simply produce copycat or products with no innovation. The success of Apple gave us a wake-up call. Only by focusing on the needs of customers and providing values to the customers can a company survive and foster. Therefore, as for the corporations and manufacturers in China, they should concentrate on meeting the demand of customers and constantly

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