Apple Case Go Online

kelloggg -- This case focuses on Apple Computer’s launch of iTunes and iPod, in an effort to give Wintel-users a vehicle for having a relationship with Apple. The case deals with issues of brand equity, corporate and brand goal setting, target selection and matching product and service characteristics with goals and targets. It also provides a vehicle for a discussion of channel partners, their interests and their impact on the likely success/failure of a strategy.

1. 4 C’s Stakeholder Analysis

1********** Customers

Based on the background of “the era of the Digital lifestyle”, iTunes 3 target customers are;

Stakeholder Stake in the project Potential impact on Project Growth percentage of online distribution Perceived attitudes and/or risks

12 – 24 years Downloaded an average of 12 tunes per month, housing libraries between 25 to more than 300,000 songs from the internet High 59% • Unlimited library of songs and videos by genre, artist and album

• Software design is attractive and easy to use

• Sound in industry standard Dolby Advanced Audio, allowing CD quality sound

• Better data compression allowing users to store more files more quickly

• There was no subscription fee but songs were not free

• The teens and children felt exploited by the escalating prices of music

25 – 34 years Downloaded at least one music file from the internet High 43%

35 – 54 years Downloaded at least one music file from the internet Medium 24%

Online music was growing to be the best phenomena in the United States. Statistics show that by July 2003, 65 million people in the USA had downloaded a song from the internet. The growth rate by December 2002 was at 26% and by less than 5 months it had grown to more than 30%.

Most consumers of this online music were children and teens. They felt exploited by the escalating prices of music from stores and sort to look for other free or cheaper means to own the music. (They do not have a dependable income). Today’s music...