Phase I
Activity 1. – The Problem
The Apple iPod has successfully made its way onto the market. It has passed the introduction phase, and is now well into the growth phase. Although national chains have been convinced to carry it, and some consumers have even been persuaded to switch from their old brands of mp3 players to buy it, there are still many challenges that lie ahead.

The most notable problem is the fact that the average consumer cannot differentiate between the iPod and the competitive brands of mp3 player. Especially now, when the competition, Dell, has put their own brand of pocket-sized music player on the market.

Apple iPod must establish its own definitive brand – and that brand must have significant advantages over its competitors, especially Dell brand media players. If this is not done as soon as possible, iPod may easily slip into the ranks of the forgotten, generic technology toy.
Activity 2. – Key Audience
The key audience of the Apple iPod includes younger people, ages 16 to 26, who have (or whose parents have) middle range incomes and live in urban areas. These are the early adopters and early majority of consumers.

It is important to target the younger set without targeting too young of an age group. Those who are too young may not be able to buy an iPod for themselves, nor be able to care for one properly. Parents will not buy expensive gifts they think their children will break immediately. Perhaps another, smaller, more durable iPod might be created for this age group when the regular iPod takes off.
The 16 – 26 age group is the perfect group to target for iPod use. Those who are 16 have just begun to come of age. They are the ideal group to give the iPod as a gift – a notoriously hard to shop for age – as well as one about to need graduation presents.

As for the higher end of the range, many 22 year olds find themselves fresh out of college and beginning a new job. What better way to spend their newfound expendable income than on the iPod – which give the image of being still young and trendy yet also professional and stylish.

Urban areas are important to sell to, since the iPod is in addition to many things, a commuter accessory. There is a reason it is shaped to perfectly fit in a backpack or coat pocket. In addition, its characteristic white case is unmistakable as one walks down the street. By convincing city dwellers to purchase the iPod, Apple gains thousands of free impressions each and every day from its user’s comings and goings.

The iPod is competitively priced with other media players in its class. With a little saving it is accessible to all ranges of the middle class.
Activity 3 – Analyze and Explain the iPod
Attributes:
The Apple iPod has many distinctive attributes, but the one that should be focused on in this growth phase is its simplicity of design, specifically, the clickwheel. This device is innovative – no other media player on the market uses this device. It is simple use; all that is required is the touch of a finger. This makes iPod’s small shape and design perfect for all levels of the target market – who happen to be very fitness-conscious and gadget friendly. Since it is so light and easy to use, it is well designed to listen to while exercising. The wheel is hard to miss as it takes up the entire lower half of the iPod. This wheel is also reminiscent of the touch pads used in Apple laptops. This lends to the product’s credibility, Apple is a long established and trusted brand.
“Inside Info:”
It is not well known that the iPod is not limited to use for music. It can also be used as a hard drive for either PC or Mac computers. Thus, one can back up software, store music as files and generally use the iPod as a USB connectable floppy disc. This would be very handy for someone who was in a pinch, and suddenly needed 20, 40 or 60 gigabytes of storage.
History:
The iPod is still relatively new to the market. However, so are most of its competitors. Interestingly enough, two major companies rejected its concept before Apple picked up the idea. The iPod moved from idea to completion in just six months, under tight secrecy. Its unveiling was awaited in anticipation although only a handful attended the ceremony.
Competition:
Even as iPod entered the market, there was much rivalry. Discmen were still common, and several small mp3 players had already come onto the scene. Soon after its arrival, Sony and Dell introduced larger versions as well. These are its main competitors – although Sony does not have as large a viewing screen, and Dell does not have as convenient of a menu navigation system.
Activity 4 – Positioning Strategy

In the growth stage of the iPod, perhaps the best positioning strategy is to use the product’s attributes and characteristics. Since the main signifier of the growth phase is the advent of competition, iPod must be sensitive to other media players on the market. Not only must it compete with tried and true favorites such as walkmans and Discmans, it also must compete with the newer mp3 players. There are even some others that are produced by other computer companies, such as Dell.

As mentioned before, Dell’s media players also feature a large LCD screen and thus a clear navigation menu. This and other competitors sometimes have larger storage, or are offered for a lower price. In order to stand out, iPod must emphasize its unique features, such as its clickwheel, large digital display menu, Apple dependability and its sleek design.
Activity 5 – Creative Strategy Document
The Business Problem
1. The Key Fact
iPod is an mp3 player that has recently entered the market. It must separate itself from its many competitors so that it is not swallowed up in the sea of high performance mp3 players. In other words, iPod must create a brand based upon its benefits.
2. The marketing problem advertising can solve:
To get new users to buy the iPod by identifying and emphasizing its unique attributes.

The Creative Strategy
1a. What is the iPod in reality?
A small sized mp3 and i-Tunes player
Capable of holding 20, 30 or 60 gigabytes of music (depending on the version)
Capable of being used as a portable hard drive for Mac or PC computers
Contains a rechargeable battery with an eight hour battery life (charge life lowers slowly over time)
Capable of storing address and phone books
Contains built in “notepad” program
Built by Apple Computers
First designed in 2001
1b. What is the iPod as perceived?
Has a large LCD screen
Easy to use clickwheel
Many worry about the battery’s shelf life
Stores lots of music
Pretty – Has an aesthetically pleasing shell
Trendy/Hip
Celebrity Endorsements
2. Who are the prospects?
The target market of the Apple iPod includes younger people, ages 16 to 26, who have (or whose parents have) middle range incomes and live in urban areas. They are most likely in school – be it college or high school. Although this age group enjoys new technologies, they have little time to spend trying to figure out detailed instruction manuals. They need quick, easy, plug-in-and-go, dependable, adaptable, durable machines. In other words, they need an mp3 player to match their hectic lifestyle.

3. The Competition
There are many other mp3 players on the market. Some can hold more songs than iPod. Some are smaller than iPod. Their largest competitor is the Dell Digital Jukebox. It comes in as many storage size increments as iPod, and it also has a large LCD screen. However, they have come onto the market later than the iPod and therefore have slightly less credibility. Dell has begun to include them in their software/hardware packages for the computers they sell so the edge of being affiliated with Apple will soon be eliminated. They are also priced slightly higher, but they have a better payment plan option than the iPod. IPod must find a way to stay ahead of the Jukebox.

4. Competitive Consumer Benefit
The Apple iPod is easier to use and better looking than the other media players on the market.

5. Benefit Support / The Reason Why
The iPod has a clickwheel and large screen so you can navigate its menus with only a finger. If you know the menus, you don’t even have to look at the iPod to operate it, you can twirl the dial while its still in your pocket. Also, it is very easy to learn how to operate – especially because many laptop computers have similar technology to control their mice.

6. Target Market Incentive Statement
To active young adults, the iPod is the media player that can be used simply, quickly and easily.

7. Tone
The tone of the advertising should be energetic, offbeat, and trendy. This will show the 16 – 26 year olds that the iPod is fun, easy to use, and make them feel good as they go about their day-to-day life.

8a. Communication Objective – Main Point
Observers of the advertisements should take away that the iPod is easy to use.

8b. Communication Objective – What Action Should Be Taken
The observers of the advertisements should want to buy an iPod in order to easily organize, store, and play their music collections.

9. Legal Requirements
Perhaps a disclaimer stating that the battery life may not be sustained indefinitely – that after use it can wear down – but that replacement batteries are available. Also maybe a disclaimer about the storage capacity for each iPod – that the number of songs available depends upon each song’s length and information attached, the number of songs advertised to be able to be held per iPod is an average.
Activity 6 – Creative Concepts
a. Finger dialing clickwheel – “All your music at the touch of a finger.”
This underlines the simplicity and ease of use of the iPod. Also, the design will be highlighted, since the advertisement would require an up-close shot.
b. “iPod – Easy as 1, 2, 3.”
This concept would need to go with a song such as the Beatles’ “I saw her standing there” – something that counts off to begin. Perhaps show a youth operating their iPod in time with the music. It is a little more energetic than the first advertisement, and helps display the benefits of the music.
c. “My whole life in an iPod.”
This advertisement would feature testimonies of youths. Each would tell about how important music is to their life, for various reasons (concertgoer, classical musician, kid in a rock band, marching band, etc) and then explain that their entire music collections were on their iPod. This shows not only the ease of use (i.e.: why they have all of their music on their iPod rather than CDs or their computer) but also the storage capacity and durability of the iPod.
Activity 7 – Advertising Strategy

During the growth stage of the iPod, the advertising strategy is mostly centered upon the image approach. The advertising should make the consumer feel good about the iPod, and not directly tell them to go out and immediately buy. This is because an iPod is not generally an impulse purchase - not exactly in the price range of a CD or a DVD. It is more likely something one would ask for as a birthday or Christmas present, or something saved up for over a period of time. It is not as if the direct response end of things ought to be completely ignored – the ultimate goal IS to get consumers to buy iPods, but it should not be the focus of the advertisement. Instead, they should focus on showing the benefits of owning an iPod – not explicitly telling the consumers how wonderful it is. They will draw their own conclusions and from them make decisions about planning for an iPod in the future.
Activity 8 – Media Types

The two types of media for the iPod campaign should be print and television. These two vehicles will reach many people, in many places and in many different ways. The television ads will be costly, but not so much that Apple cannot afford it. They can be targeted to air during shows where the viewing audience is very specific. They also have the advantage of being able to demonstrate the use of a product, instead of just showing one part of it. Good times to play these advertisements would be during such shows as MTV’s Total Request Live, or Laguna Beach. The print ads can also be placed in media targeted specifically toward the target audience – even more so than TV. For example, Rolling Stone magazine targets music enthusiasts of a certain age group, while Alternative Press magazine targets audiences of a different age group and with different musical tastes. Either of the themes for these two media should have the possibility of being extended into another form of advertisement. For example, the television ad should be able to easily be translated into a series of billboards.
Activity 9a. – Creative Execution – Print
Activity 9b. - Creative Execution – Television
Activity 10 – Questionnaire
Phase II
Activity 1. – The Problem
The Apple iPod has grown to reach its mature phase. Sales have leveled off, and remain constant. Many national chains carry the iPod, and many users have switched from their old brands of music player and become loyal to iPod.

However, this is just the problem. Many of the people who were likely to be persuaded to buy the iPod already have – or have bought the competitor’s media players. There is no perceived reason to buy another one.

Apple iPod must now refresh its image by adding new features. At the same time, it must maintain its loyal customers and brand essence. Other competitors are likely to be in similar phases of growth, and as iPod is the number one media player on the market, they will be looking to overrun the iPod in any way they can. IPod must change while at the same time remain at the top of its class.
Activity 2. – Key Audience

The key audience for the iPod is similar to the audience in the growth phase of its product life cycle. The main audience is still 16 – 26 year olds in urban areas from families of middle income.

However the type of consumer has changed – these people are now the “late majority” and “laggards.” They like to know that a product is tried and true and not just a passing fad. They are more financially conservative – and are likely to have saved money to buy their iPods.

Also, another sub-audience to examine is a little older and a little more extensive – perhaps 27 to 40. These people either the “late majority” as before, or perhaps they never considered buying an iPod for themselves. For example, parents might jump to buy an iPod for their children, but never consider owning one themselves. They need to see that a music player would improve their lifestyle and that the technology is easy to use.
Activity 3 – Analyze and Explain the iPod
Attributes:
There are now more than five versions of the iPod. There are many different volumes of storage capability ranging from 2 to 60 gigabytes, depending on how much one is willing to spend. Some versions can even store and play photos and movies along with and in addition to music. Some are smaller and pocket sized, some are more durable and some only play songs in ‘shuffle’ mode. There are several colors available ranging from white to pink to green to black. Also, for the enthusiast, several have been endorsed by celebrities.

“Inside Info:”
It is not well known that the iPod is not limited to use for music, photos and video. It can also hold one’s address book, planner, and a small “notebook.” These are handy attributes, and although they are not perhaps main selling points, they are very nice features that most of the competition does not offer. These items seem to make the iPod one electronic stylus/pencil away from being a Palm Pilot.

History:
In 2004, Apple launched a series of successful commercials featuring spirited youth dancing silhouetted against a brightly colored background. The iPod stood out in white.

Another memorable marketing move was BMW’s inclusion of an iPod interface in all of their new vehicles. This interface allowed drivers to play their music through the car’s sound system, as well as control the device through the steering wheel (this feature has now expanded to include many mainstream car brands) (….Continued on p. 4)

(History, continued) Several notable versions of the iPod introduced since its launch include: iPod Shuffle, iPod Mini (in 5 bright colors), iPod photo, iPod video, iTunes, a music player promoting legal downloads, iPod Speakers, car hookups, pretty carrying cases, docks for home stereo equipment and the all new iPod Nano.

Competition:
IPod’s major competitor has now emerged in Dell’s Jukebox. Not only have they released several rival products, such as the Dell DJ Ditty (versus the iPod Shuffle), Jukebox with FM Tuner, Pocket DJ Jukebox (versus the iPod Mini) along with many add-ons such as armbands, car converters and et cetera. They also sell many of their music players along with their computers. However their main competitive selling point comes in the fact that their music players do not play iTunes songs. They play mp3 format songs only – those compatible with Microsoft Windows Media Player. They have recently gained an exclusive contract with Yahoo Music and were also featured on the hit MTV reality show, Real World.
Activity 4 – Positioning Strategy

Perhaps the best positioning for the iPod in this stage of the product life cycle is to integrate two strategies into one. The iPod would benefit most from mainly concentrating upon the product attributes, but also positioning using a new use or application. This has helped keep the iPod current in the past, for example with its introduction of the iPod Shuffle. This helped bring the iPod brand into the world of the Flash media player, as well as opening up new ways to use the iPod, such as while exercising or doing other jobs for which using one’s hands is necessary (the Shuffle has a convenient cord to tie around one’s neck).

It would behoove iPod to come out with a new feature that could be emphasized and applied to enhance and grow the way in which it is already used. Dell already has a media player with features iPods do not have – the Jukebox with FM radio. In order to stay current, iPod needs to one-up their competition.

This problem has been solved by creating the iPod Camera, a device that not only stores and plays music like a ‘normal’ iPod, but also can take and store photos for later editing. An accessory is also available that includes a printer docking bay station so that users can quickly and conveniently make prints in their homes.

Activity 5 – Creative Strategy Document
The Business Problem
1. The Key Fact
Apple iPod must stay current in the world of mp3 players, and to do so it plans to introduce a new version of the iPod with innovative features – the iPod camera.

2. The marketing problem advertising can solve:
To get new and repeat users to buy the iPod by identifying and emphasizing its new and unique attributes – taking and printing personal photos.

The Creative Strategy
1a. What is the iPod Camera in reality?
A small sized mp3 and iTunes player
Capable of holding up to 60 gigabytes of music
Capable of being used as a portable hard drive for Mac or PC computers
Contains a rechargeable battery with an eight hour life (drains slowly over time)
Capable of storing address and phone books
Contains built in “notepad” program
Can take and store photos
Comes with a detachable flash
With accessory printer, can print photos with clarity
Built by Apple Computers
First designed in 2001

1b. What is the iPod Camera as perceived?
The iPod Camera is yet to be introduced. However there are several attributes perceived to describe all iPods in general:

Has a large LCD screen
Easy to use clickwheel
Many worry about the battery’s shelf life
Stores lots of music
Pretty – Has an aesthetically pleasing shell
Trendy/Hip
Has many celebrity endorsements
Cutting edge – always has new designs

2. Who are the prospects?
The target market of the iPod Camera includes younger people from urban areas who are members of the late majority, ages 16 to 26, who come from families with middle range incomes and live in urban areas. They are most likely in school – college or high school. This group is more financially careful – and will have waited to make sure iPods were not passing fads before buying.

Also, the secondary group of slightly older consumers should be included, those who might have considered buying or have bought an iPod for their children or younger relatives, but have never thought to buy one for themselves. For example, the camera function could be very attractive to a new father who wants to stay hip and also take and share pictures of his newborn.






3. The Competition
As of yet, there is no direct competition to the iPod Camera. No digital music player can also take photos. However, there are three main indirect competitors. First, the other media players, especially the Dell line of products. These players can hold much information, have a large screen, and are also constantly creating new ideas, innovations and add-ons to their Jukebox. They have also had several successful celebrity television endorsements. Their weaknesses include the fact that they do not yet have, nor have begun developing a camera-capable media player.

Second, the digital camera. These cameras can take and store thousands of photos, dock on printer stations, and be easily connected to a computer. Their resolutions may be better than the iPod Camera’s and they may store more photos, depending on the brand. Many camera users are very loyal. However, digital cameras require extra software installed on a personal computer. If customers already have iTunes, the iPod Camera makes it so that no new software is necessary. Also, many families may view the iPod Camera as a supplement to their digital camera, not a replacement. Or possibly a combination gift given to a youth who might not be trusted with the very expensive family digital camera quite yet.

Finally, the cellular phone industry. Many cell phones feature a camera function, and many more feature fancy ring tones and songs. Most people already have a cell phone and a cell phone plan, and many are loyal in that they will not break their contract at the drop of a hat. However, the pictures taken by a cellular phone are usually not of the best quality, and they cannot be printed at an inexpensive price. Also, the quality and number of songs stored on a cell phone is very poor compared to an iPod.



4. Competitive Consumer Benefit
The iPod Camera allows users to easily and quickly store their music and photo collections, as well as to take photographs, which no other media player, digital camera, or picture phone on the market can do.

5. Benefit Support / The Reason Why
The iPod has already proven itself easy to use and a great way to store and play music collections. The integrated camera allows for a much wider range of functions with no noticeable physical size change to the iPod. This makes it very portable and durable. The detachable flash allows the iPod to be versatile under many conditions.

6. Target Market Incentive Statement
To active young adults, the iPod Camera is the versatile media player and camera that can be used simply, quickly and easily.

7. Tone
The tone of the advertising should still be energetic, offbeat and trendy. However, to accommodate the new features, it should also be somewhat simple, clear and bold. This will show the target audience that even with the new camera feature, the iPod is still fun and easy to use, as well as practical and flexible under many conditions.

8a. Communication Objective – Main Point
Observers of the advertisements should take away that the iPod Camera is practical and easy to use.

8b. Communication Objective – What Action Should Be Taken
The observers of the advertisements should want to buy an iPod in order to easily create, organize, store, and play their music and photo collections.

9. Legal Requirements
The same legal disclaimers as before should still apply – those concerning the battery life and song capacity. Perhaps also a disclaimer about photo capacity as well, since it runs along the same lines – the larger photo size you store the fewer will fit on your iPod. Also maybe some sort of disclaimer about the photos one takes on the camera – that Apple is not responsible for the photographs you take and that if you take certain pictures (for example pornography, or secret information such as ATM PINs without the agreement of the person being photographed) you can get in serious trouble.

Activity 6 – Creative Concepts

a. “Say cheese!”
This concept would feature a series of people standing in front of landmarks, smiling cheesily. Then, it would move to a shot of the iPod Camera standing alone on a background and display the text “say cheese!”



b. “A part of your family photos from now on.”
This advertisement would feature the iPod Camera enlarged and standing in line next to a family posed photo at a birthday party or in front of a Christmas tree. This emphasizes the ability to take important photos – even those as significant as family portraits. It also is more offbeat than the previous one – more in line with the ‘old’ iPod advertisements and perhaps more appealing to the young adult audience.
c. “Now you really CAN fit your whole life in an iPod.”
This advertisement would feature users who had large amounts of sentimental photos and all of their music in their iPods. Also, perhaps a short story about each user. This is more sentimental than the other two concepts, and emphasizes the practicality and ease of use of the iPod – ‘if these people can use the iPod, so can I!’
Activity 7 – Advertising Strategy

During the maturity stage of the iPod’s life cycle, the advertising usually focuses upon the direct response approach. This is the stage in which users already know the basic attributes of the product, and have already drawn most of the conclusions they are going to draw from advertising. This is also true for the iPod. However, the iPod has just developed new features. This is a time in which consumers must draw new opinions and conclusions for themselves about the new features. Also, those who have already purchased the original iPod may want to save up their pennies to buy the iPod Camera. Perhaps the best approach would be to create an ad that built the image of the iPod and its attributes, which finished by mentioning the iPod store. A mixture of both Image/Perception and Direct Response approaches.

Activity 8 – Media Types

The two types of media for the second iPod campaign should be print and television. These are beneficial because once again, they can reach a wide range of audiences. For example, there are some television shows that a large range of adults, such as Whose Line is it Anyway, and late night talk shows such as Letterman, Leno, or Conan O’Brien. Also, many of the ‘older’ group of adults mentioned previously still watch shows geared toward the ‘younger’ adults, such as music video award shows.
Print ads are beneficial because they are very versatile. The same ad can be printed many times in many different types of magazine – and is easily transferable to newspapers, direct mail, or et cetera. Magazines are especially helpful because they last for a long time – oftentimes more than one person reads each copy. Also, it is easy to know how many copies are in circulation and can be assumed to have been read. Other media, such as radio, can only make educated guesses as to their audience sizes.