Apple's iPod is the hottest, most innovative and sought-after MP3 player in the world. In Europe, iPod takes 80% in MP3 player market, and it is the most powerful item for Europeans. Same situation is happening in north-America. For almost all of American, when they think of MP3 player, they definitely choose Apple's iPod. iPod provides a lot of customers with brand loyalty by constructing strong relationship with them.
However, it is different in Korean market compared to Europe and America. In South Korea, iPod accounts for only 7% in sales charts, according to a recent report by market analyst GfK AG. iPod ranked 13th in this market. Reigncom, better known as iRiver, was ranked first with 30.8% in the market.(Samsung Electronics Co. Ltd. with 14.4 percent, and Cowon, known as iAudio with 11.8 percent.)
The reason why we chose this topic is that we thought it would be an interesting challenge to find a proper marketing strategy. And it would be a good way to apply what we learned in the class. Nowadays, iPod is getting trendier to Korean young consumers, and also in the world, and it could be appropriate to apply a stronger marketing strategy.
It is obvious that the iPod product is less successful in Korea than in the USA, then we will analyze the marketing strategies of Apple in both countries.
[...] And see if there is a possibility for Apple to change its marketing strategy to face concurrency in the future. By using the theories learned in the book we will try to elaborate a new strategy for the Apple iPod product which fits the Korean market or to orientate the current Apple's strategy in order to increase its sales. II. Development 1. Market analysis a. The product Components of iPod (iPod package contents) iPod consists of three things, hardware, software and services. [...]
[...] In Korea (compared to Japan in Asian countries) people don't have a crush for Apple. Even if in Korea there are a lot of video games' core-gamers, they prefer to use personal computers for their versatility and compatibility with the new programs and video games (because many game editors don't see the point to convert programs to Mac). Moreover the advertisement of Apple is less important and many people are not aware of the brand (compared to Samsung or iriver for example). [...]
[...] We also have to set a proper micro marketing strategy by keeping in touch with the consumer by Email to avoid cognitive dissonance by emphasizing on the good attributes of the product (in this case trendy ness, stylishness, belong ness to a group and community, connection to the music, etc ) and to keep the consumer connected to the brand. We want to provide positive word-of-mouth by this way. Conclusion After a difficult start in Korea, the Apple's iPod is now gaining market shares. [...]
[...] market The major strength of iPod in U.S. market is the strength of the Apple brand. During the late 1980's and early 1990's, marketing executive John Sculley (former member of Pepsi), boosted the advertising budget from $15 to $100 million. Steve Jobs, the current CEO, spent $100 million advertising the iMac and Apple continue spending a lot of money in advertising. Then many people are aware of the main characteristics of the brand. Almost everybody knows about the brand and there's no question of forgetting. [...]
[...] Consumers can be provided language lectures for free iAudio (Cowon) takes the 3rd rank in Korea market for 15%. This product is focusing on the services as well as quality. Consumers can get the A/S service easily and high quality of sound. Apple uses online store in Korea to distribute iPods like in other countries. But there are no Apple stores in Korea. But instead of that, there is which provides product trial with consumers. Apple online music store was not launched in Korea. [...]
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