Introduction of an iPod - Research Proposal Example

Research Proposal: iPod Research Background PC Advisor, the popular technology magazine, has rated the iPod as the product of the decade. The rise ofthe iPod is a significant achievement not just for its parent company, Apple Inc., but also for the consumer electronics industry. The development and marketing of the iPod is the primary reason for the resurgence in the prospects of Apple and has driven its rise into a powerhouse in the market for music and digital electronics, leaving competitors gasping for breath. Over the past few years, iPod sales have contributed to over 45% of Apple’s revenues and are being surpassed only now by the introduction of the iPhone, which has witnessed a similar growth. Historically, iPod has been introduced in several models that cater to users with different requirements. When iPods first hit the stores way back in 2001, the capacity was about 1000 songs into a size that was the size of a pack of playing cards (Jeffrey Perloff, 2009). Subsequent models such as the iPod shuffle, which can hold the same number of songs into a space the size of one’s finger has led to a surge in sales since its introduction. Another factor that found favor with customers was a button free approach towards developing the device, which is operated completely through touch. Users can connect to a laptop through a USB socket and transfer music at the click of a mouse. The cheapest iPod (shuffle) is available for a meager $60 and can be purchased online. Additional components of the iPod can be purchased at a nominal price. With the introduction of the iPod touch, the capacity of the music player has not increased manifold, but the cost factor has been relatively consumer friendly and begins at attractive prices of $147 (John Gross, 2007). The last few years have witnessed the iPod MP3 player and its component, the iTunes music store, sweep away all other competitors. In other words, the iPod can be deemed as the Sony walkman of today. Today, iPods command over 44% of the MP3 players’ market and sales are expected to rise to 50 million units in 2010, doubling the market every 3 years (Jean Claude Larreche, 2008). Objectives The preceding section presented a brief overview of the towering growth of the iPod in the consumer electronics segment and its contribution to the turnaround of its manufacturer, the Apple Inc. How did Apple manage to conceive and design such a unique product that took the entire market by storm? What were the basic determinants that Apple considered when designing the music player? What marketing strategies did Apple adopt in an attempt to dislodge existing products and announce its arrival in style? Has apple witnessed any downturn in sales since its introduction and if so, what are the reasons behind such patterns in sales? The above questions are aimed at studying a specific case of market research and intend to adopt an organized effort in collecting information about related markets and customers. Studying the introduction of a new product such as the iPod is believed to shed light on the business strategy adopted by Apple in creating a distinction amongst potential customers. The proposed study will conduct elaborate research on the consumer markets across the world with a special emphasis on the markets in the United States, United Kingdom, Germany and Japan. Additionally, the study will also pursue the question of identifying the various market processes that have contributed to the success of the iPod. Apart from determining the forces of the market, the primary objective of the study is to interpret the perception and opinion among consumers that motivates them to purchase the iPod. In this context, it would also be useful to analyze the viewpoint of consumers towards other music players that maintain a sizeable chunk of the market. Methodology The proposed study intends to analyze the market for MP3 music players across a number of perspectives. The overall scope of the research is aimed at discovering what people need, want and aspire of a music player. A thorough analysis of these parameters will indirectly provide an overview of the path breaking marketing techniques used by Apple to promote the product. The required information to conduct the study will be sourced from a number of areas. As most previous studies have been restricted to studying the business strategies of the parent company in the case of the iPod, there is a dearth of information within existing pieces of literature. However, as sales provide an indirect estimation of consumer behavior, requisite data from such earlier studies will be sourced from books, market reports and magazines and compared against a timeline of marketing campaigns initiated by Apple to identify related patterns in consumer responses towards the iPod and music players from other companies (Amar Bhide, 2008). Apart from market analysis, it is also important to study the success of the iPod along various segmentation classes. By researching the performance of the iPod across geographical regions, age groups, product versions and gender differences, it would be possible to identify relevant patterns of motivation among such groups for purchasing and using the iPod. Any product, including the iPod, witnesses ups and downs during a period of existence in the market. Along this course, the market size for a product also varies according to customer segments. Moreover, studying the performance of a product within a market requires a thorough analysis of its competitors, their business strategies, marketing campaigns and the products they introduce in a bid to outwit the business under focus (Charles Hill, 2008). All information deemed to provide answers across these considerations will be collected and aggregated to use towards a comparative analysis between the iPod and other existing products across several indicative parameters. The study will also rely on obtaining information through primary sources such as market analysts and industry experts. It is believed that such individuals hold the key to understanding the evolution of a market and can easily correlate the forces within the market to the events associated with products, companies and consumers (Charles Lamb, 2008). As such, the prospect of benefiting from the opinion of such professionals will be utilized effectively as part of this research, whereby the required information will be obtained through interviews and surveys. The survey will be carried out based on an appropriate questionnaire, whose contents shall be conceived and developed as the study progresses. Conclusion The overall purpose of the project is to conduct a thorough analysis of the iPod and its influence on the three core components of its target market – namely the manufacturer, the consumer and the product itself. By adopting this approach, the study hopes to identify several key points that would prove useful in understanding the various vulnerabilities that Apple has overcome in establishing the iPod as a credible and reliable music player amongst consumers. Likewise, the study also aims at pinpointing every major determinant that has gone into influencing the choice available to consumers and will comprise a combination of price, design and features. There is also the possibility of extending into analyzing the market strategy driven by Apple in this regard as also the various advertisement campaigns initiated by the firm to promote the digital player. As mentioned before, the study also proposes to concentrate on a geographical analysis of the consumer electronics market in a bid to identify potential areas that have contributed to iPod sales and regions that have been comparatively slow to respond in Apple’s favor. By using figures based on sales, expenditures, product analysis, strategy research and primary research techniques, the study will aim to provide a comprehensive overview of the iPod market and will also initiate efforts at forecasting the prospects of the iPod in the coming years. References 1. Jeffrey Perloff (2009), Microeconomics. New York: Pearson Addison Wesley. 2. John Gross (2007), This business of music: the definitive guide to the music industry. London: billboard. 3. Jean Claude Larreche (2008), The momentum effect: how to ignite exceptional growth. Singapore: Pearson Education. 4. Amar Bhide (2008), The venturesome economy: how innovation sustains prosperity in a more connected world. Princeton University Press. 5. Charles Hill (2008), Essentials of Strategic Management. London: Cengage. 6. Charles Lamb (2008), Essentials of Marketing. London: Cengage. Read More