Apple iPod market entry strategy for Brazil

Market Research-Apple iPod

Usage, Attitude & Image (UAI) Study for Apple iPod

As part of its business expansion to South America, the iPod brand of Apple Inc. is about to be launched in Brazil. Marketing sets out to launch the brand and product to reach the goal of increasing sales in the country by 50% over the next two (2) years.

It is imperative, then, to identify the components needed in the marketing mix that Marketing must develop to achieve this goal. While the iPod product line has been successfully launched and currently dominating the portable media players market in the United States, it is still yet to be seen whether the Brazilian consumer culture will be receptive and would eventually patronize the iPod product line when it comes to choosing the best portable media player in the digital entertainment market.

Considering the cultural differences between North and South American consumers, particularly in their consumption and purchase habits, this proposed study will seek to determine if indeed, there is a difference between the American and Brazilian markets when it comes to preference and use of portable media players such as iPod. More importantly, this study will identify the Brazilian consumers' media habits, focusing particularly on their awareness and usage of audio-visual entertainment gadgets and software. In addition to determining consumer habits, this study also aims to mirror Brazilian consumers' perception of Apple Inc. As an American company and as a portable media player developer and manufacturer.

Research Objectives

Business Goal: Increase sales by 50% over two-year period.

To achieve this business goal, the following specific objectives must be explored and determined to best address the needs of the users of portable media players and users of audio-visual entertainment in the Brazilian consumer market, allowing Apple Inc. To increase its sales by addressing these consumer needs:

Determine the level penetration of portable media players in the media habits of consumers;

Identify the level of usage of portable media players among users;

Identify level of usage of audio-visual entertainment products among portable media player users;

Determine the level of acceptability of the iPod product line among users and non-users of portable media players;

Identify audio-visual entertainment bundles or packages most preferred among users and non-users of portable media players;

Attitudes and perception toward digital entertainment;

Attitudes and perceptions toward portable media players;

Attitudes and perceptions toward Apple Inc. As an American multinational corporation; and Attitudes and perceptions toward Apple Inc. As consumer electronics and software product manufacturer.

Methodology

Research Design

The proposed usage, attitude, and image (UAI) study will be the first phase of the research study. The UAI study is a quantitative, descriptive type of research aimed to specifically identify the usage habits, preference, and profile of both portable media player users and non-users.

Focus group discussions (FGDs) comprise the proposed second phase of the study, which is qualitative and exploratory in design. This exploratory research design will help Apple Inc. determine the most attractive and preferred digital entertainment package or bundle that will come with the iPod product line.

Research Methodology

The UAI study will make use of the survey method, and will utilize survey questionnaires to generate information about the category and brand penetration, usage, and habits among users and non-users of portable media players. In addition to consumption habits, the questionnaire will also focus on purchase habits between these two groups. Lastly, the questionnaire will tackle respondents' attitudes and perceptions about digital entertainment, iPod product line, and Apple Inc. As an American multinational company and consumer electronics manufacturer.

As mentioned earlier, the qualitative exploratory design will make use of the focus group discussion (FGD) method to generate information on the preferences of two groups, users and non-users of portable media player, of concepts on packages / bundles that will be offered for every purchase of a particular product in the iPod product line.

Variables & Measures; Concepts & Indicators

The UAI study will look into the following variables, capturing the information needs of Apple Inc. To best address the needs of consumers in portable media players and digital media entertainment: awareness of portable media player brands, usage of media players aware of, consumption of digital media entertainment, usage of other gadgets similar and related to portable media players, and attitudes and perceptions toward digital media entertainment, portable media players, and Apple Inc.

Concepts that will be used for the FGDs are different package/bundle combinations that will be offered to buyers of iPod products. The discussants who will be joining the FGDs will determine which package or bundle for each iPod product they prefer the most and they find most attractive and most compelling to buy for users and non-users.

Data Analysis

The UAI study will utilize both bivariate and multivariate statistical techniques to provide general descriptions on the usage, purchase, and media habits of users and non-users of portable media players. Findings from the FGDs will be analyzed using matrices, illustrating which package/bundle per iPod product is most preferred, attractive, and compelling to buy for the two groups (users and non-users).