Product_Life_Cycle_Management

Product Life Cycle Management Analysis Cindy Lueskow University of Phoenix Product Life Cycle Management Analysis: Apple IPod The Product Life Cycle Management Analysis is based upon the Introductory, Growth, Maturity and Decline stages of the Apple IPod, a portable player launched in 2001. Objectives here were to give the program shape, provide intent and target strategies to reach the consumers. Apples strategy was to release a fun product wrapped in a small package in which consumers have a sense of belonging. The iPod is a way to enjoy vast amounts of music. Apple’s introduction phase started slowly in 2001-2004 with sales between 100-200 thousand units per quarter. We can see their worst decision was lack of advertising in the early years. Apple expected word-of-mouth, considering this the single largest contributor to the first three years of the iPod’s struggle. Apple’s advertising budget for their products has quadrupled for new product launches. The first change in the iPod was launched in 2002, the second generation iPod. IPods were compatible not only with the Mac operating systems but with Microsoft Windows operating systems; the next contributor was to see iPod succeed. By Aug 2004 iPod sales began rose dramatically as it entered its growth phase. The iPod made from the fortune of Apple was the major turning point in the company growth. Apple was constantly adding functions and features including color display, photo viewing capability video playing capability, improving battery life, improving the user interface, slimming down the player size, and increasing the storage capabilities. They also introduced new models such as the iPod Mini which were cheaper and smaller in size and in storage capabilities making it affordable to more consumers. Next, they introduced the iPod Nano with acquired flash memory storage instead of hard disk. They kept improving the iTunes counterpart making an abundance of deals with reluctant record companies. Apple was impacting the business market significantly enough and stopped pursuing new deals with more record companies. We know where the iPod stands, and that it is a remarkable product being sold at more than three hundred retail stores, online stores with various hardware and software sold. All this is a great indication that Apple has managed the iPod through the growth stage very well. The iPod has its own unique appeal for range of all ages and personalities. Different models to satisfy the many needs of the consumers. Some of the examples of product decisions that Apple has made “include aspects such as function, appearance, packaging, service, warranty, etc.” (Quick MBA 2007, para 5) Growth strategies come from sale sources that include first, the non-users of the product category, second, the competitors’ customers and lastly the company’s current customers. To motivate customers to purchase frequent or multiple units are primary methods in boosting sales for the owners. The new enhancements of innovation with the IPod are the key driver that leads owners to purchase models with advanced features. Apple will need to depend on consumer base for a source of the iPod demand as sales began to cool down last year. IPod sales in 2006 were roughly fifty-eight percent of its total revenue. Following the fiscal year thirty-five percent of sales made up the total revenue. The S-curve depicts the product life cycle. This is one of the stages the iPod has been in as sales entered the iPod into rapid growth rate. Outstanding sales in quarter one of 2009 generated over $3.6 billion while moving ahead to the second quarter they expected revenue in the range of about $7.6 billion to $8 billion. For the upcoming quarters, based on customer satisfaction, there will be high rates in the cost, sales and the prices in Apple iPod’s Business. IPod has expanded its market by the Touch’s new capabilities. IPod owners may use Touch for massive boost in capabilities. This will influence new owners to up grade as the shuffle should be appealing to price sensitive consumers. Marketing and promoting music is the way to go today as iPod has many alternative distributions that provides potential future buyers. The Apple iPod phenomenon has more to do with the design and marketing then with the industry requirement. The ever changing nature of the Apple iPods and their changing product life cycles allows the company to emerge in new growth stages. Apple is then able to control when a product goes into the decline stage. IPod sales in the last year have an eight percent decline form 2009. Defending my position I would have to agree; this is direct result of the iPhone impacting the consumers’ decision to move to the newer technology and they pass up the iPod. More than 100 million iPods have been sold over the last two years, but the future is in mobile computing. Apple needs iPod buyers to move to the new platform; with this more developers will cluster around the iPhone as well as iPod touch. A strong user base and rising sales with free development tools will keep consumers happy as Apple works through their hiccups. As Apple has not taken advantage of newer 256 GB hard drives in a redesign of the iPod, the classic is effectively at the end of its life. All Apple needs to do is offer a 128 GB iPod touch that will be more expensive, but it will allow Apple and the retailers to sell off their stocks of classics without heavy discounting. (http://lowendmac.com/nash/09tn/year-of-the-ipod-touch.htmlI) In conclusion we can see that a popular consumer electronics company, Apple Inc. has created a high-demand product with the Apple iPod in the marketplace and eventually took the highest market share of portable music players globally. This has allowed consumers to quickly and easily purchase, download, and listen to music of their choice. As with any new product in the marketplace, Apple Inc. has taken enough of the right steps to manage iPod throughout its marketing life cycle that their focus should be concentrate on the iPhone like they did the iPod and supported operating systems. They should make iPhone supported by more phone company’s and continue to evolve it instead; pushing it into a more dramatic growth phase. References A Look at Apples IPod Business Daily Finance News-Forex Stock… http://www.financems.com/a-look-at-apples-ipod-business.html Apple Reports First Quarter Results _MarketWatch http://www.marketwatch.com/story/apple-reports-first-quarter-results IPod Marketing Strategy http://www.vertygoteam.com/ipod_marketing_strategy.php IPod History http://dvdipodvideo.com/history.html 2010 Will Be the Year of the IPod Touch http://lowendmac.com/nash/09tn/year-of-the-ipod-touch.html