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7/4/2010

STRATEGIC BRAND MANAGEMENT – U.C. BERKELEY

FINAL PROJECT :

PANINEE PUTWANPHEN

MARCH 2010

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Agenda : Apple overview iPad Recommendation

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Apple Brand Equity

Key Success Factors and


Competitive Advantages

Apple Core Values

Apple brand persona

Best Global Brands in 2009


1. Coca-Cola 68,734 ($m)
2. IBM 60,211 ($m)
3. Microsoft 56,647 ($m)
4. GE 47,777 ($m)
5. Nokia 34,864 ($m)
6. McDonald's 32,275 ($m)
7. Google 31,980 ($m)
8. Toyota 31,330 ($m)
9. Intel 30,636 ($m)
10. Disney 28,447 ($m)
20. Apple 15,433 ($m)

6 Source: Interbrand 2009

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Apple share price since 1984

iPhone

iMac Core
Duo

iPod Nano ,
Video iPod
Intel partnership
Powerbook
100
Jobs becomes
Mac III and permanent CEO
Mac SE

iPod

KSF’s SCA’s
•Access to •The user friendliness and
technological innovative design of their
expertise products
•Ability to •Their creative
manufacture hi-tech marketing/advertising
products
•Distribution
channels (direct and
retail)

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Design and innovation


Ease & simplicity
quality

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Apple iPad

Recommendation

What are iPad’s Pricing and Channel Strategy ?

Who are their target market ?

Who are their Competitor ?

Where is iPad in the market?

What is Apple iPad?

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NATURAL size to watch and read

- 9.7 inch LED screen - large


size screen for tablet device
- 1.5 pounds
- 1/2 inch thin in size

Full capacitive multi touch


Connectivity

Wi-Fi and 3G supported

Battery Standby time: Over a month


Using time: 10 hours

Web, Email, and Maps

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TV, Movies and Video

More Big Size Screen, More


Powerful Sound!
Ebooks and Publishing Features
Through iTunes and iBooks App,
anytime users can download and use it.

Productivity and iWork

Game ,EA and others are going to build


some amazing games on this
platform. there’s already a big library in its
collection.
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Master Brand

Brand Name iPad

Magical and Revolutionary Device


Slogan
at an unbelievable price

Sleek Design

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Brand Position:

• A Magical and Revolutionary Product at an


Unbelievable Price

Value Proposition:

• Apple iPad is the best way to experience the


web, email, photos and video.
• Hands down.

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• To position the Apple iPad as • Craft the Apple iPad’s brand


the best way to experience the positioning strategy to focus on
web, email, photos and video. driving a new device category by
Hands down. evolving its value proposition

Brand/Marketing
Vision/Mission: Objective:

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Unit Sold for Major Apple Products (by Entry Price)

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iPhone iPad Mac


• Book
• Newspaper
• Audio/Music • Everything But
• Magazine
• Video Game heavier/more
• Dynamic Games
• Internet Content expensive
• Audio/Music
• phone
• Video
• Authoring
(Works)
• Education
• Presentations

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POP POD

Portable/Mobile device market √the best device (top-tier user experience) to


enjoy the web, email, photos, and video

√a device that provides more functionality than


•Affordable that offered by single-purpose e-readers, like
•Portable Kindle.
•Long Battery life
•Internet-based usage √a device that provides many functions that
users are looking for, including videos, music,
•content consumption reading electronic books, using maps, etc,
•Thin design (better than netbooks can)
•Enhanced multi-media
√a device that have the best design

First coming of tablets…


• Limited software / ecosystem
• Limited CPU/Gfx performance
• Premium pricing
Apple iPad Tablet? e.g. Apple Newton, Microsoft Tablet
PC

HP Tablet Why is it different this


Media time?
• More SW choice, but fragmented
• Higher CPU/Gfx performance
• Connectivity (Internet)
BenQ • Emergence of App-Store
OpenPeak • New ways to interact (multi-touch)
Archos 9 OpenTablet
Media Tablet
Kitchen Tablet opportunity: Analysts

divided 2010(Mu) 2013(Mu)


Citigroup 1.1-2.3 20.0-70.0
Qooq ICD Ultra 7” NPD 1.3 2.0
Apple Newton Cooking Tablet
IDC 0.5 1.8
1990s 2009 2010
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“The iPad, though a brand new


category of device, already has a
market in the millions of iPhone
E-readers and iPod touch users.”
Likelihood of Success

iPhone/iTouch
Netbooks users
----Steve Jobs, Apple CEO

Tablets

The Netbook is not an experience people are


going to continue wanting to have… When they
Market Data Snapshot:
play with the iPad and experience the magic of
using it... I have a hard time believing they're
~75M current iPhone/ITouch going to go for a Netbook.“
users
~40M Netbooks sold in 2009 ---Tim Cook, Apple COO, 2/24, Goldman Conf
~6M E-readers sold in 2009
~1M Tablets sold in 2009

Segment Worth (based on size, SPP, willingness to pay)

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Ultra-thin Laptop
$499

Convertible Content creation and editing


Productivity applications
Flexible Sleek Netbook Effortless gaming and multi-tasking
Tablet interface
Thinner designs
$399 Longer battery life
Multi-purpose device
Ultra-portable
Lean-back usage
Netbook usages plus..
Touch screen
Enhanced multi-media
SPP

Netbook
Affordable
$299
eReader Portable

Fixed Function Long Battery life

E-ink screens Internet-based usage, content consumption &


basic PC Productivity

$199
Evolving and Experimental 7 – 10.2” Clamshell Larger screen

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"The problem is
that netbooks
aren't better
than anything,"
Jobs said

E Ink display and 1-2 week


battery life
Amazon recently announced
to launch an app store, it
would take a while to beat
Apple's 140,000-plus list of
applications
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Data Producer
iMac

iBook

Technology
Technology
Enthusiast
pragmatist

iPod
iPad
iPhone

Data Consumer

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50 Million Units In 2014

Means ….

We need more than early adopters

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Surprise!!!!

Computers are
still too complicated

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* Grandma and * Book lover and Kindle


* Gear heads who love
Grandpa who rarely owners who want more
gadgets?
uses a computer? than a one-trick device?

* iPhone ,iPod touch * Mac owners want a *Student who don’t


owners who are middle ground device want to carry heavy
comfortable with a for the coffee table textbook and want to
touch screen, but want that's bigger than an download their e-book
something bigger? iPhone, but smaller anywhere and anytime
than a laptop? they want?

*business person on the


?????
go?

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Student Business Baby boomer Gadget and Mac


lover Book lover and
Kindle lover
E-textbook presentation, easy to use
with good price newspaper, device, your Third device for
and availability business info on grandchild couch and easy to read
will think you coffee table and and more than
plus easy to the go and movie, a book reader
carry, game, book, music on are cool the best way to
device , with
music, movie the plane with 10 experience the verity selection
and internet hr battery web, email, of e-book and
surfer device photos and 140,000-plus
(best value video list of
applications
device)
We will make31
your life easier

Direct sales channels


Online and brick-and-mortar stores

indirect channels
store-within-a-store concept at Best Buy
and Apple premium resellers

Over time, Apple’s sales effort could


expand to other areas (depends how fast
it ramps)

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APPLE iPAD EVOLUTION STARTS HERE

Q1’10 Q2’10 Q3’10 Q4’10 2011+

 Product: Apple  Apple iPad features  Continue to  Consumer  Apple iPad success
iPad launch event hammered out for improve content Season evolves over time in
in Feb ’10; the device launch for music, media, continues; big market place
inaugurates new video and e- advertising
category  Apple kick-starts books splash  iPad launches on
the developer Verizon network and
ecosystem  Add publishing extends carrier
 Positioning: Apple
partnerships partnerships
iPad is a unique  Apple begins to above and
computing device work with channel beyond top 5  Apple drives a new
(between partners now that
iPhone/iPod Touch market category and
the “secret” is out  Consumer Season solidifies its position
and notebooks
begins; big as a technology
 Apple iPad advertising splash innovator and
 Market: Targets an availability powerhouse
entirely new expected some
market time in Q2’10

Device/Features improve over time; Bolster available music, apps, video and e-books
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