Apple Ipods Product Development Process Marketing Essay

Published Date: 23 Mar 2015

Introduction

The success of business venture is dependant upon numerous factors out of which one is related to the product itself. The product structure, feasibility and potential are the driving force of the business success in a given market. In this regard, Apple Inc.'s recent launch of iPod, an MP3 music player has been a point of attention of engineering industry as well as the competitors. Soon after its launch in October 2001, Apple record a 125,000 units sale which made it the second largest manufacturing brand in the world for music player. This report aims to identify the product development process, approach, challenges and issues that were faced by Apple in the event of the launch of iPod. Furthermore, the report will discuss how a new product can bring detailed feedback for additional steps the organization can take to ensure that it meets today's standards of quality and to study the approach for assessment of the success of product development process.

Implementation Process of Apple's iPod

Apple Inc has been famous for its Macintosh computer which was a landmark achievement in the computers history. However, to hit the bottom line again and to establish a new revenue line for the company, Apple developed a new device for MP3 which could attract greater level of attention from users around the world. For this achievement, Apple Inc. established a Product Design Chain concept that is based around the idea of outsourcing the best technologies from the market leaders and focus on the core product functionality for a guaranteed high quality product as expected by the company. Apple entered into a very controlled and unique Non-Disclosure Agreements with a design development company named Portalplayer which manufactured the development tools. Portalplayer further entered into agreements with other companies to develop the circuits and related technologies for achieving perfection to the core. The five key partners of Apple Inc. were Sony to develop battery, Wolfsen to develop codec and DAC, Toshiba to develop disk drive, Texas Instruments to develop firewire and Linear Technology to develop power management gadgets (Sherman, 2011).

The product design chain allowed Apple Inc. to reduce its manufacturing costs to minimum as the market leaders having infrastructure and basic expertise would manufacture each unit at a lowest possible cost helping Apple to sell the product at a good price at the same time ensuring consistent supply of the product. Supply and demand gap is crucial step for the companies to remain in the market without losing the demand or the supply of the product upon time. Time management in terms of reaching the market and product manufacturing were important factors that were dealt through the product design chain.

Challenges and Issues Apple Inc. Faced

For a product to become successful, it is important to ensure that the product is well positioned, is of high quality and is affordable. All of these aspects pose greater challenges to the developers and manufacturers of a new product. Apple Inc. also faced these problems in terms of developing the product and ensuring high quality of each component which was a prominent problem as Apple had a limited expertise and leadership position in the hardware development. To make iPod successful, it was pertinent that a strong focus should be given to each component of the device as well as having a surety that the product will be able to meet the required demand. Apple Inc. has been able to achieve a quality products reputation in the market which makes it important for iPod to maintain that image (Krazit, 2004). Apple Inc. hence outsourced the manufacturing of components to the leaders in the market in a distinctive and diverse manner. As a result, each component was manufactured by the company which has a core expertise in that particular component.

Another significant challenge that Apple Inc. faced was the protection of its iPod design and how it was actually developed with its primary strength. The entire MP3 player was based on its engineering which made this device a world famous music player that has the ability to record unlimited music and can be used anywhere around the world. The unique design and concept is the primary strength of Apple. So in order to develop the product of high quality from the third parties and at the same time ensuring the protection of the trade secrets, Apple used non disclosure agreements that were unusually strong to restrict the third parties from disclosing the design engineering to the public.

New Product Potential to Retrieve Feedback

The new product has the ability to re-announce or promote the company trade name among the consumers. When a new product is introduced to the consumers, there are expectations from them which are connected with the past reputation and image of the company. However, when the new product has been tested and consumed by the consumers and the demand increases subsequently, it helps the company to anticipate a future path for itself. If the demand continues to grow and positive feedback is received along with tips to improve, the company can continue to move forward with a new vision and ideas for future growth and prosperity. Hence, the new product has a potential to retrieve feedback from the consumers that can help it to develop its future direction and objectives.

Steps in New Product Development Process

There are eight (8) steps in the new product development process. The first step relates to generation of idea. The company has to brainstorm, analyze and generate an idea for developing a new product in the market that can cover an existing need of the consumers. The second step is to screen the idea that has been generating. In some cases, the idea that has been generated is not a practical one therefore, it is important to analyse the idea in terms of the benefits it can produce for the consumers, growth and size forecasts, technical feasibility and profitability. The third step is to develop the concept and to test it in the market. It is important to receive preliminary reactions from the consumers and feedback to ensure the viability and smoothness of the idea to develop the new product. The fourth step is to analyze the business and to estimate the price. The fifth step is to beta test the new product. This step allows company to ensure the success of the new product. The sixth step relates to the technical implementation. Seventh step relates to commercialization and eight step relates to the new product pricing.

Approach to Assess Success of Product Development Process

The success of the product development process can be assessed through the success of the new product that has been launched. If the product does not receive expected response, there will be gaps in the product development process that have been ignored or incorrectly answered.