| If you read my last couple of articles, you'll know that I | | | | for more.3. Apple keeps its product mix tightly |
| have said there is an overwhelming saturation of | | | | matched to its core target market.Walk into any Apple |
| products in the marketplace and the consumer is | | | | Centre and check out the standard applications on an |
| bombarded with advertising messages - so much so | | | | Apple. I-Tunes (store music that synchronizes with |
| that they now tune out. I said that if you wanted to be | | | | your i-Pod); garageband (mix your own music like a |
| successful with a new product, you should seek to | | | | mini recording studio); i-Movie (make your own movies); |
| establish a new product category and I gave you the | | | | i-DVD (make your own DVDs); and so it goes on. All |
| strategic rules regarding how to do it.In this article, I | | | | standard - at no extra cost - and all integrated |
| want to take the concept of a product category and | | | | beautifully with Apple's operating system. This of |
| explore it one step further. Let's imagine you want to | | | | course keeps its brand relevant to its audience as per |
| grow to become the biggest of the big - become a | | | | point 2.4. Apple launched its product through publicity |
| new-age business meglomaniac if you dare. Well, I am | | | | and adopted maintenance through advertising.The now |
| going to share a couple of examples of companies | | | | famous silhouette advertisements were first launched |
| that have done just that - and I'm going to tell you the | | | | in October 2003, some two years after the first launch |
| rules they followed to do it.Example One: The Apple | | | | of the i-Pod. Apart from the "cool" value, it uses the |
| i-PodIf there is a reader in this forum that has not | | | | product colour (white) to remind us of the brand and to |
| heard of the Apple i-Pod, I can only suggest that you | | | | differentiate itself against the competitors that made |
| have lived with your head in the sand. Of the market | | | | black products.5. Most importantly of all, though, Apple |
| of portable MP3 players this product dominates its | | | | cannibalizes itself before a competitor has a chance to |
| category with an astonishing estimated 80+% market | | | | catch up.The real secret to Apple's i-Pod success lies |
| share. To put this into context, your average market | | | | in its product development and life cycle management |
| leader struggles to hold 50% of the market.Apple's | | | | strategy. Unlike so many manufacturers, Apple is not |
| i-Pod was not the first portable hard drive based music | | | | afraid to cannibalize itself.What does this mean? It |
| player. Apple was, though, the first to use a USB | | | | means that well before a competitor has the |
| firewire interface that enabled rapid and easy file | | | | opportunity to launch a me-too product, the product |
| transfer. While competitive models were black, Apple | | | | that the competitor is copying is made redundant and |
| was white. While competitive models were ugly, the | | | | is superseded by Apple by something newer.And as |
| design aesthetics of the i-Pod set it apart.Of course, | | | | anyone who has developed a product will attest, there |
| let's not forget that what makes it even more | | | | is generally a lengthy development cycle. It takes time |
| extraordinary is that Apple is not in the primary | | | | even to copy someone else. Apple is ferocious in this |
| business of making music players (Although this is | | | | strategy because it understands one simple idea when |
| changing); Apple is primarily a computer hardware and | | | | it comes to technology: no-one wants to buy |
| software manufacturer. (Unlike the PC market, Apple | | | | something that's obsolete. And it is this, more than |
| retained proprietary interest and rights over its | | | | anything else, that always keeps Apple on the front |
| operating system and software applications that sit on | | | | foot, and its imitators left further and further |
| its hardware.)What makes Apple so exciting for us all | | | | behind.Example Two: Toys "R" UsToys"R"Us is a |
| is that their strategy is very transparent - and there is | | | | classic example of retail domination of a product |
| nothing to stop you adopting the same strategy and | | | | category. So, too, though are many other businesses |
| win.So what is Apple's secret?1. Apple is very clear | | | | including the UK's own Wagamama, which has |
| about who its target market is and they have a | | | | recently opened an outlet near my home in |
| narrow focus.Apple computers target the youth home | | | | Melbourne.Well, if you have aspirations to be the next |
| computing market - they do not actively target | | | | big retail thing, you're at the right place. All you need to |
| business nor the older market (although they do attract | | | | do is follow these simple rules.1. Choose a category |
| them). (The business market is of course dominated | | | | that no-one is dominating, and learn from the dominant |
| by Microsoft.) Do not underestimate the simplicity of | | | | retailers that have preceded you.2. Narrow what you |
| this concept. Look around you. How many brands try | | | | do to a singular product category. In this example, the |
| to appeal to everyone? The answer is plenty even | | | | product category is toys.3. Stock your product in |
| though the first rule of marketing is that no brand can | | | | depth. This means that you stock all types of toys |
| mean all things to all people. The rule is keep your | | | | (depth) but do not venture beyond toys into other |
| focus narrow.2. Apple is also very clear about what | | | | children's products (width).4. Buy cheaply (which often |
| that target market likes (and doesn't like).Youth like | | | | means you have to have buyer power which comes |
| cool, sexy products; they are into both listening to and | | | | from owning multiple stores or having consolidated |
| mixing their own music and making movies with | | | | buying power through the cooperation of multiple |
| webcams to post on MySpace or YouTube; they are | | | | stores (such as a franchise).5. Sell cheaply at retail to |
| technically savvy, like to surf the Internet; and they | | | | make it hard for other players to compete with you.In |
| avoid traditional advertising as a means to get | | | | my next article, I'm going to talk about positioning your |
| information about what's cool. Not surprisingly, this has | | | | product - what it is and why it is so important. |
| become the product development strategy, read on | | | | |