Apple iPodBrand Equity Model

By:Sagar MehtaISBE/SS/09-11R.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 Ratings1 2 3 4 5

Unrecognized Brand

ConsideredSometimes

Usually Chosen overCompetition

Dominant Market Player

OnlyMarket Player

Rating Awarded

Reason

4 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 Ratings1 2 3 4 5

Brand not Preferred

Preferred over similar

products only

Preferred over some

other products

Preferred over most

other products

AlwaysPreferred

Rating Awarded

Reason

3 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 Ratings1 2 3 4 5

Unprofitable

Measlyprofits from the brand

Financiallysoundbrand

Very profitable to

the company

Competition cannot

stand the brand

Rating Awarded

Reason

4 Consistent 70% market share means steady

profits

SOURCE: AppleInsider.com, Apple Live Event

Overall Brand Rating1 2 3 4 5

FailedBrand

Weak brand, can fumble

in the future

Strong Brand,With

Challenges

Very StrongBrand

Perfectly Successful

Brand

Rating Awarded Reason

3 Growth is steady but overall mp3 market is shrinking, 50%

sales are to existing iPod owners

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