Message to Steve Jobs. Thanks for the iPad. Now the heavy lifting needs to begin.

As a marketer, it’s hard to stay away from Apple. The marketing has been at virtuoso levels consistently for the last decade, serving as a best practice and shining light for us all, at least until now.

The iPad was launched to great fanfare (hype perhaps?) last month Wednesday, January 27, 2010. The hype machine was in overdrive leading to what appeared to be an anti-climatic event that felt like a let down to the media frenzy that preceded it.

I had the chance to watch Steve’s keynote address recently with my Principles of Marketing class.

Here is how Apple boils it all down in their messaging and positioning for the product in their own words:

Our most advanced technology in a magical and revolutionary device at an unbelievable price…
The best way to experience the web, e-mail, photos, and video. Hands down.

For the first time in years after reading these value propositions, I asked myself, what are they are talking about? And why, oh why did they create unbelievable hype on a massive scale to deliver such a vague, “early adopter” message? I don’t get it.

Since on the surface, this just does not make sense, I thought it might be constructive to de-construct this a bit from the integrated marketing perspective and dive below the hype and superlatives to see if we can figure out what is going on here. Something is…

On the company and product side, clearly there is a lot happening. Disruptions abound, and they know it.

First, besides the overall product itself, is the A4 chip produced by Apple. I didn’t realize they had this capability, but if you look at it, should this tablet device take off and create a new category as hoped, a new chip architecture is in place… and its not Intel inside.

Apple is also we are told, undergoing a transformation. A couple of years ago, Steve Jobs eliminated “Computer” from Apple’s name to Apple, Inc. “We are now a software company,” he famously said.

This time around he took it another step further… “We are a mobile device company, the largest in the world.” Wow!

The tablet, which with its large touch screen interface, on the surface looks like an iPhone on steroids, with much of the same functionality built in. I originally dismissed the optimized iWorks part of the presentation but am now quite impressed that there is native to the iPad productivity (word processing, spreadsheet, and presentations) capability. This is no mere overgrown iPhone! The screen is large enough so we can actually see what we are doing. Will there be a touch-based Office app from Microsoft to come?

On the marketing side, it became clear that Apple understood that there was no direct competition for this ambitious, category creating product, and in response took one of those “going fishing” – everything for everybody, early adopter communication strategies that in the final analysis goes against the cardinal rule of positioning – which is to connect the dots of “what’s in it for me” for the customer versus setting it up so that he or she must figure it out for themselves.

You can see it in how they boiled down the core messaging:
Our most advanced technology in a magical and revolutionary device at an unbelievable price…
Compare this to the iPhone:

At launch:
Reinventing the phone

Today
The fastest, most powerful iPhone yet.

See the difference?

What does Magical* mean?, Revolutionary?, and what is this going to do for me, even with an “unbelievable” price?

* Note: Although it is not easy to figure out what this means on our own, lead designer Jony Ive does define “magical” quite well in one of the launch videos as “when something exceeds your ability to understand how it works, it sort of becomes magical. And that exactly what the iPad is!”

The Best way to experience the web, e-mail, photos, and video. Hands down.

Also each speaker in this very same video, especially marketing VP Phil Schiller kept on using the word “BEST”… best e-mail… best photos… best internet… best this… best that.

Hey Phil, I hate to ask what does “best” mean, and then if so, so what?

The key and unavoidable question that is the core of what positioning is all about still comes down to addressing what does this mean for me?, and at the moment I don’t know.

Nobody said this was easy…

There were kernels of marketing strength in the presentation, most especially in Jony Ive’s video presentation. As the lead designer, he is the person most intimate with the iPad and two things he said caught my attention. 1. “It just feels right to hold the internet in your hands.” 2. “I don’t change myself to fit the product, it fits me!”

These two ideas are interesting and compelling… and if, once the units are available, we physically “feel” this connection with the product, and I have no reason to suggest otherwise… well then, the iPad will be successful, perhaps very much so, in spite of this awkward positioning.

At the conclusion of the presentation Jobs argued that then when you add up the 125 million existing iTunes and App Store Customers along with the 75 million iPhone and iPod Touch install base who already know how to use the product, along with the new e-book bookstore with 5 of the major publishers on board, “we have breadth and scale required for success.”

Except this.

Even with this built in audience base in place, I will argue that there is a classic chasm to cross with this one. The product as it now stands is too big to pin down, there are too many disruptive elements, as Apple itself admits.

For example, is it an e-Book reader, and if so is it for the popular, business, educational markets?, is it a media device?, productivity tool?, something else?

Kept at this high level, wide “everything for everybody” positioning is inevitable which means we as the customers have to figure out what we want and need about this device on our own. This is dangerous and contrary to Apple’s own best practice of product launches past.

What’s more, for the past years Apple had the benefit of its latest devices having direct lineage to the iPod, which fueled adoption for new innovations.

For example, the iPod’s leadership as the dominant music player on the planet, allowed Apple to successfully launch the new at the time, arguably disruptive video iPod with just one studio on board (Disney) and a handful of titles available for sales at the iTunes store. This is nowhere near to the ecosystem the iPad now enjoys even before it is available,

Even so, the poorly endowed video-enabled iPod faced the chasm, while also living as the top of the line, world’s most popular music player at the same time. Today every studio is on board and billions of video downloads have been transacted. The chasm was “easy” to cross here.

Today, with an astounding 250 million sold to date, the iPod market appears to be saturated and sales are flat or declining. And we could argue this is not what the iPad product is at its core. It is a separate product. And positioning the iPad as a direct descendent of the iPhone, which has created a category on its own, is also not really accurate and in this case would limit its disruptive power as a category-creating product.

So the product is out there on its own, almost as a blank canvas… a remarkable product looking for relevance from the market as a whole. That is the issue.

This situation is not new for Apple. People weren’t banging down the doors for Apple to create the iPod at the outset. The market wasn’t seeking a device that could hold 1,000 songs. And if memory serves me well, It took a while to gain traction and truly took off when iTunes became Windows-compatible.

Assuming the above and we have a chasm in front of us, what now?

The market opportunities are numerous, so for the sake of brevity today, let’s look at a couple of examples to see how we could position the iPad in the e-Book space, to give us some ideas.

1. Blue Ocean: Completely Different and Compelling
Amazon’s Kindle is the original category creator and undisputed leader of the e-book market to date. The iPad with it’s color screen, robust distribution channel and access to content by the major publishers is mounting a direct assault to Amazon’s dominance and has a competitive offering no doubt. The black and white Kindle is a powerful one-shot pony and costs $250. iPad as an e-Book AND the “internet in your hand” offers so much more for $499. Does iPad demonstrate enough value to topple Amazon? Probably not… yet.

One of the drawbacks to the iPad, as with the iPhone is the inability to run multiple applications at the same time. What if… you could you could reframe the reading experience?, so that when you are reading your e-book on your iPad, you can, say, listen to music at the same time.

War and Peace, and Beethoven! With this simple added element, Apple could change the rules of the game and position iPad as the tool that transforms the reading experience:

Apple iPad… Reinvents Reading!

Such a move would force Amazon to find its way again in what could be a transformed market that by the new definition would play into iPad’s strengths, not Kindle’s, perhaps for the foreseeable future.

Now I am starting to see the potential “magic” that Jony Ive was talking about.

Bt the way, this move isn’t far off from the iPhone value proposition, which also was a category-changing device.

iPad has the extra load of category-creation, but the “reinvention” position isn’t far afield from the “different thinking” we expect from Apple.

And it making a product alternation is too much, we could go back to the keynote presentation and look at the say the games, or NY Times apps that were shown.

This positioning could then play out as:
Apple iPad… Reinvents the Newspaper
Reinvents the Video Game

2. Textbooks: Get Rid of the Heavy Load
There is another natural niche that plays into Apple’s DNA. Positioning iPad in the education space to fill a true, long held need to lighten the load of the infamous text book bag, which as I have been reminded in my professor life, can weigh many, many pounds. Good for upper body strength, perhaps, but cumbersome at best in reality.

We know that students today are online all the time and comfortable with being there. Making the switch to electronic books with these consumers, which surprisingly hasn’t really taken off to date, should and could be a non-traumatic and natural transition.

Plus, although it slipped in the 90’s when Apple all but surrendered the academic space to the Dell’s and HP’s of the world, Mac laptops today have gained significant traction on many campuses to be a leading computer device of choice by students.

We noted with interest as the rumor machine for the iPad was in full swing, that Apple was collaborating with academic institutions and textbook publishers to ensure that the product meets the needs of the academic community. Color is essential we are told. Also, students like to highlight text and take notes. Dropping in audio and video content, being able to link to current news sources, etc., could create a robust learning experience, while reducing the physical load, and we assume textbook cost.

Add it all up and iPad should have what it takes to fill a need and make a friendly conquest of a familiar beachhead market that will facilitate a quicker chasm crossing for the product overall.

Here is how it could sound, once again in “tag” talk:

Weighing only 1 ½ pounds, the Apple iPad puts Textbooks, the Internet, and More, Right in the Palm of Students’ Hands for Less than a Laptop.

To sum it all up:

1. Before we adopt the iPad, we need to touch, feel and play with this device… now! 60-days is too long a time to wait, and when it is finally available, early adopters will try it, and buy it.

2. If it indeed feels right… if we feel and get the “magic,” then iPad will be successful… over time. Keys to success will be segmenting the market and adopting a chasm/beach head focused marketing strategy with clear and compelling reasons to buy, which aren’t even close to being defined yet.

Have fun Steve!

Advertisements

Tags: , , , , , , , , , , , , , , , , , , ,

6 Responses to “Message to Steve Jobs. Thanks for the iPad. Now the heavy lifting needs to begin.”

  1. Andrew C. Smith Says:

    Hello, it looks like your site is up and coming in the

  2. Martin J. Nobleman Says:

    Hey, I like your site. I was wondering if you would do a review post of my product at http://www.publicdomainpayday.com

  3. Topsoil Wilmington De Says:

    Well, I don’t know if that’s going to work for me, but definitely worked for you! 🙂 Excellent post!

  4. Paid Online Surveys Says:

    Ill be checking back (good info)and hope to see you on Twitter!

  5. Andrew C. Smith Says:

    Hey, I like your site. It has a lot of great information. Another sight you might like is http://www.publicdomainpayday.com

  6. baby born at 33 weeks pregnant Says:

    greats tips excellent post

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: