2. About iTunes
• An application which is used as a media
player, media library, Internet radio
broadcaster, and mobile device
management
• It can also be used to play, download,
and organize digital multimedia files,
including music and video, on personal
computers running on both macOS and
Windows operating platforms
• The content (Music/Movies) must be
purchased through the iTunes Store,
whereas iTunes is the software letting
users manage their purchases
iTunes Now
• Apple expanded on the core features
- video support, podcasts, e-books,
and a section for managing mobile
apps for Apple's iOS operating
system
• In 2013, iTunes owned a staggering
74% of the digital music market
• The revenue is around ~$6.9 billion
per year and the music industry's
international trade group says that
consumers spend a total of $9.3
billion per year on digital music
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4. Our Goal & Objectives
1) To shift from Music to Integrated Digital Experience
2) To Shift from Products (Like iPhone) to Services
(Like iTunes)
3) Catering to Evolving Customer Base
4) Simplifying User Experience
KEY POINTS & TRENDS
• Leveraging B2C sales to get B2B sales
• Internationalisation
• Decreasing Product Apathy: Growing
niche market
• Decreasing purchase volume of newer
iPhones
• Digital Music Sales have exceeded
traditional (CDs, Cassettes) modes
• Volume of Music Streaming has
exceeded digital downloads
• Loyalty programs – such as Gift Cards
also are provided – used by many
• iTunes Ping, iTunes U removed from
portfolio
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5. Evolution of Means of Communication - Ads
a) Decline market for iPods
a) Integrated nature of iTunes
a) Changing consumer
preferences (e.g Hip Hop
becoming mainstream
music)
a) Confluence of music genres
a) Pivotal roles of
“influencers” and opinion
leaders
a) In-depth associations of ads
(with iTunes -> Music ->
Treadmills -> Gyms ->
Fitness)
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6. Our Potential Business Customers/Users
1. Potential Business Users (Affiliate Program – It pays to participate):
2. (Different channels, serving different needs of different consumers
– safety, privacy, sophistication)
3. Music Houses: Record Labels, Independent Houses – Importance
of iTunes Top 100
4. Music Distribution Houses: SongCast
5. Firms looking for online ads
6. Book Publishers: E-Books
7. Production houses: Instagram
8. IT companies
9. Universities – for lectures/podcasts
10. Smart TV Makers: Samsung
11. App Developers: Games/Utility Apps – They have pricing power
(the developers)
12. Content Companies18-06-2019
10. ATTRIBUTES OF CUSTOMER SEGMENT
• Identifiable: X,Y,Z characters -> A,B,C segments
• Substantial: Size
• Accessible: Expanding Organisation’s capacity
• Stable: Age Based segmentation unstable, fans should be loyal
• Differentiable: Group customers based on needs
• Actionable: Putting segmentation data into action
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11. Positioning Strategies
• Reverse Positioning: With new iTunes, Apple combined all these apps and tried to come up with a product
with only the good parts of those individual, separate apps. iTunes now is a place from where people can buy music, apps,
books, content, cloud space, etc. and that what make it a product worth trying not just to individuals but to firms who
want to sell music, videos, books, movies, TV series, etc.
• Breakthrough Positioning: With iTunes, Apple is coming up with a product which has the potential to
be a breakthrough product, to be a platform where not only multiple individuals but also multiple firms can avail various
services like selling music, selling content, selling apps or get benefitted by buying advertising space. They have done this
with time difference – they didn’t integrate all at one go – but one by one – according to the trends, in a meticulous and
cautious manner. Also, they discarded some of the extensions which didn’t work out in the market
• Stealth Positioning: People who use iPhones are loyal to the brand and have a positive attitude towards
these apps (when they used them separately). Firms also have no issues to put their trust in a product which has Apple’s
logo on its back. iTunes is a product in which individual customers put their trust in and it will be enough to attract firms to
it. Firms will love to use a product which already has a strong hold in individuals customers’ minds.
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12. Can we penetrate Indian markets?
• Looking at digital sales/streaming (24 hrs) – in India it is a lot lesser –
Shallow (Song) – 7476 sales, India – 12 sales
• There exists a niche market in India, but there is no
“buying/streaming” culture in India – PirateBay exists.
• Hence, this culture of ethical downloading etc. has to be created if at
all – or bring in a exclusive network like Netflix
• Netflix etc have made shows exclusive to their network – hence
bringing in such a network could be fruitful to iTunes.
• Also, engagement has to be created for these customers
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13. THANK YOU
“I don't stream or buy CDs... pretty much everything I buy, I do it on iTunes”
- Mark Hoppus, Blink-182
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