Market Segmentation And Product Positioning.

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Market Segmentation and Product Positioning

Market Segmentation and Product Positioning


iPod Nano is an mp3 player made by Apple company. Apple is an American company launched in 1976 which manufactures computers, laptops, mp3 players, and accessories associated to them. The goal of Apple was to create a brand that represents everyone, a brand that people could identify with. Create a product or brand that appeals to everyone is difficult, the company must determine exactly what type of consumer product is aimed. Apple has decided the company with the brand to create different iPod models iPod to reach a larger number of consumers.Taking advantage of Apple's strong brand and the growing trend of a style, they will introduce the iPod nano to American market since September 2006.


There are four product lines under the brand name iPod: iPod Photo, iPod nano, ipod Shuffle, and iPod Video. iPod nano is differentiated itself with the appearance of slim and small. In addition, all three types of iPod nano(1GB, 2GB, 4GB) was in the top five hot mp3 players over the last six months ( However, iPod nano is not on the list of Asia-Pacific brand rankings in 2005 (brand channel). In U.S, iPod nano is not as popular as mobile phone because there are no official advertisements conducted for it. It represents as a luxury product because of it price (Chandler, 2008). Although Sony, Samsung, Creative, and other brands have the most market share in mp3 music player in U.S, iPod is known as the brand of the invention because it went beyond the similar design of those products. Marketing Segmentation

iPod Nano differentiates itself by the unique slim size and click button. Apple will execute their plan by first segmenting the market by age and income:

• Age: 15 - 40 year old

• Income: US $500 - US $2,000

In term of product quality, iPod Nano offers the slimmest flash-based mp3 player with 3 variable capacities (1GB, 2GB, and 4GB). The 1.5 inch color LCD is suitable to display not only play list information but also photos. More importantly, iPod Nano is the first one introducing Bluetooth technology. It enables customers to share music and photos easily without cable. In term of value, iPod Nano leaves in the customers' mind for its luxury. The high price ($149, $199, and $249 USD) they pay is not only for the product but for the satisfaction they experience as well (Chandler, 2008). iPod Nano will be advertised on two channels (HTV7 & MTV Asia), one newspaper (Tuoi Tre), and two magazines (Saigon Times & 2). In addition, Apple will run a design contest for iPod Nano, which they are confident about it popularity and effectiveness. By the end of the project which has the duration for one year, they certainly believe that iPod Nano will become the third largest leader of mp3 player in Ho Chi Minh City, and take up the profit by 70%.Target market

The Ipod Nano is a high-quality, high-tech, trendy and expensive Mp3 player. Therefore, it aims to the following demographic market segments:

Age: ...
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