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Brand Relevance: Making Competitors Irrelevant - always yours

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158 BRAND RELEVANCE<br />

It was a product that you only had to see once to appreciate — it<br />

was simply cool and was clearly viewed as being used by<br />

cool people.<br />

The timing was right. Steve Jobs recognized that there was<br />

a window of opportunity for the iPod. There was a need, the<br />

competitive entries were seriously fl awed, and the combination<br />

of Apple technology and new hardware options created an<br />

opening. In particular, an inexpensive, 1.8 - inch hard drive<br />

from Toshiba became available that could hold over one thousand<br />

songs, a key enabling advance. In order to react fast to<br />

the market and to access competencies in key areas, Apple<br />

employed partners in the development process. 2 The team was<br />

under the leadership of PortalPlayer, which provided the base<br />

platform, and generated a product that included a stereo digital -<br />

to - analog converter from Wolfson Microelectronics, a fl ash<br />

memory chip from Sharp Electronics, a Texas Instruments interface<br />

controller, and a power management integrated circuit from<br />

Linear Technologies. Apple was not alone.<br />

The introduction was embedded in a crazy amount of buzz. The<br />

product was introduced into TV shows and movies without any<br />

placement pay simply because it was cool. The power of the Apple<br />

brand, having been revitalized by the distinctive iMac design that<br />

appeared in 1998, only one year after Jobs returned to Apple from<br />

his forced exile, was a crucial ingredient. The buzz and brand<br />

were complemented by an effective marketing program.<br />

Another critical component of success was the easy - to - use<br />

iTunes application for organizing and listening to music on<br />

computers. In April 2003 Apple introduced the iTunes store,<br />

which allowed a user to buy (as oppose to steal) recorded songs<br />

and later books, podcasts, and TV shows, and which itself was<br />

a new category. Steve Jobs and his team accomplished what<br />

seemed impossible. In addition to creating enabling software,<br />

they pulled off the delicate task of getting the fi ve major music<br />

companies to agree to sell single songs for 99 cents over the<br />

Internet. In addition, the whole iTunes store operation was not

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