Apple iPod

Brand Equity Model By: Sagar Mehta ISBE/SS/09-11 R.No. 34

Quick Overview of the iPod

Launched by Apple in 2001 Over 220 million iPods sold worldwide Best selling digital audio player in the world Models: Shuffle, Nano, Classic, Touch Plays MP3, AAC/M4A, Protected AAC, AIFF, WAV as well as some video formats

Knowledge Metrics
Recognition: Apple iPod is the de facto standard in the digital audio player market

Unaided recall: MP3 player brings iPod to mind

Aided recall: Brand is established and the apple symbol brings it to the forefront in the mind Top-of-mind recall: iPod is usually the first choice

Knowledge Metrics Ratings

1 Unrecognized Brand 2 Considered Sometimes 3 Usually Chosen over Competition 4 5 Dominant Only Market Player Market Player

Rating Awarded

Reason

73% Market Share in audio player market *

*SOURCE: Rock and Roll Apple Live Event, 2009

Preference Metrics
Familiarity: Extremely trusted & familiar brand Consideration: Always considered at least once Purchase: Price is often a consideration as cheaper options are available Usage & Loyalty: Existing users do NOT wish to part with their iPods

Preference Metrics Ratings

1 Brand not Preferred 2 3 4 5 Always Preferred Preferred over Preferred over Preferred over similar some other most other products only products products

Rating Awarded

Reason

Price acts as a limitation, cheaper options available

SOURCE: AfterDawn.com, Fortune.com

Financial Metrics
Market share: Over 70% market share Price premium: Known to be a premium price product Revenue: Shrinking audio player market could translate into less revenue Growth Rate: Steady

Financial Metrics Ratings

1 Unprofitable 2 Measly profits from the brand 3 Financially sound brand 4 Very profitable to the company 5 Competition cannot stand the brand

Rating Awarded

Reason Consistent 70% market share means steady profits

SOURCE: AppleInsider.com, Apple Live Event

Overall Brand Rating

1 Failed Brand 2 Weak brand, can fumble in the future 3 Strong Brand, With Challenges 4 Very Strong Brand 5 Perfectly Successful Brand

Rating Awarded

Reason Growth is steady but overall mp3 market is shrinking, 50% sales are to existing iPod owners

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