By now, almost all the western world — and a good chunk of Asia and Africa — have all heard of Apple’s latest breakthrough product, the iPad.
The sheer number of impressions this launch has generated is in itself impressive. But what is even more impressive is the use of early adopters and key influentials to drive the story, enthusiasm, excitement and buzz for Apple, not the company itself.
Remember that Apple is not a company that is that into social media, yet check out the Twitter hashtag #ipad and end user blogs to get a sense for the mountain of coverage and interest generated for the iPad.
How does it do this? Good old-fashioned smart PR and a communications strategy that relies on the magnification effect of early adopters and influentials to amplify launch noise via traditional PR, Word of Mouth (WoM) buzz and aspirational excitement.
Here’s some of the ground rules:
1. Carefully pick and choose your hero product(s) for the year and put as much wood behind these arrows as you can. The iPad was THE launch of 2010 for Apple. The company maintains ongoing influencer relations, a thorough reviewer’s program, and ongoing engagement for other products, like their laptops, iPods, etc., but the focus was iPad and later this year iPhone OS version 4.0. That’s it. Laser-like focus, picking and backing your product bets, not spreading the wealth across a wide product range that all cry out for PR support, even though they may be close to end-of-life (EOL) and have reached the downward side of the S-curve. The other products bask in the halo of the hero products. See what the iPod did for Macintosh sales post launch? See what the iPhone has done for iPad sales?
2. Focus on long term influencer and early adopter relations and engagement. These are your natural allies. Cultivate them, let them talk for you because they ultimately carry far more weight and credibility than your own Press Releases, blog posts or advertising. Engage with not just technology influencers, but with business, social and celebrity folk that give you brand cache and style. It’s no accident that Stephen Fry is an Apple fan boy, so is half of Hollywood, thanks to decades of engagement with product placement on set and off set, with the stars themselves. Every episode of Seinfeld has a Macintosh and a small statuette of Superman in the background. Check it out next time re-run comes on. At one point, Jerry Seinfeld had a Mac too (and probably still does even though he did ads with Bill Gates last year).
So how does this translate into the iPad launch? How do these uber-strategies map with launch tactics? Well, here’s a synopsis:
The iPad launched officially on April 1, but embargoes were set for March 31. This means a wave of launch buzz and hype 24 hours prior to people being able to buy one (not counting the rumours and speculation in the prior nine months).
Key influencers were seeded with Product Verification & Testing (PVT) units three to four months out in some cases, depending on when these units were deemed stable enough and of sufficient quality to pass muster for people that will forgive non-production machine foibles because they love the technology and because they consider themselves Apple-insiders. These units went to key Apple business partners/friends (remember Google CEO Eric Schmidt got a pre-production iPhone and not so surreptitiously flashed it at Davos, where it stole the headlines rather than dry economic prognostications?), celebrities, technology gurus, etc. Also note that they all honoured the strict Apple NDAs — no insider wants to be ostracized and get thrown out of the club.
Journos/key bloggers in the US (a very select few, high impact folks) had their iPads under NDA for a week prior to launch, enough for them to play and enjoy, but not enough time for them to be too heavily critical. Launch reviews reflect that and it’s commonsense when you think about it. The shine always rubs off the shiny new toy the longer you have it. This early enthusiasm sets the tone for the launch coverage, providing the initial launch gestalt.
Celebrity Twitter-ers helped fuel the social media buzz. Stephen Fry was on the US West Coast at launch (funny how that happened) and put up video of the un-boxing of his iPad. He openly Tweeted he had one a day prior to the rest of the population. Robert Scoble did the same thing, except for the video of the unboxing (he later went out and bought two more iPads because his family kept hijacking his — and Tweeted about it). Reviews popped up the day before the official launch by Walt Mossberg and David Pogue in the US — two of the most highly respected tech journos in the country. Surgical media placement and engagement for maximum impact rather than a broad ‘hit as many as you can’ approach most companies take.
Foreign (that is, non-US) media got flown to a glitzy New York event and even if there was no pricing for their markets, they got to play with units at launch in salubrious surroundings and with high profile Apple execs. They in turn also had the opportunity if they were keen enough to buy their own units in the US, which judging by the coverage, a good few did, thereby continuing the buzz momentum.
And the result is, as you can see, a wave of initial great coverage that drives WoM, then sales and sets the tone.
More importantly its a self-reinforcing cycle of clever, surgical market engagement that fuels Apple’s mystique as a cult rather than as a technology company.
And the interesting thing is that other companies with ‘insanely’ great products could be doing the same to build their own mystique and stories. Mass communications doesn’t have to be massive, just smart.
Postscript: The iPhone OS 4.0 was announced a few days ago. Only Apple developers are supposed to have the beta code for testing. Stephen Fry, who last time I checked can’t cut a line of code, Tweeted yesterday that he had just installed it on his 3G iPhone. General availability for the masses is not expected until the northern hemisphere summer/autumn (fall).
We are yet to see an iPad here in Asia, but it is certain that going by Apple’s legacy – this newdevice will bring about a change in the way people interact with these kind of devices. Its physical design, social connotations, ease of use, price, and many other facts that we will perhaps discover only when we start using it, can potentially spawn a new economy like the iPhone did with its Applications and iPod did with iTunes. Here is my list of what it would and won’t do in this part of the world.
iPad Will
1. Usage of ‘Apple Services’ will expand exponentially: We have all seen how iPod and iPhone spawned an entire industry of accessories around them – especially products like speakers etc that act as docking stations etc. Now visualize iTunes, App Store and iBooks as three services that are spawning a range of products that help users utilize these three services. Do not view iPad just as a product; instead look at it as a bridge to bring in more users to the world of Apple services.
By bringing a superior experience to a portable entertainment device, Apple will be able to expand the franchise for its online stores like iTunes, App store and iBooks – exponentially. This fits in with the industry wide trend of increasing revenues from content and data services and sluggish growth of revenues from mobile devices. (See chart 1)
Suddenly Nokia, Sony, Samsung, LG among others look under prepared to compete with this evolving model. (Ironically enough, even Sony – the inventor of Walkman – the first personal stereo – is also one among the long list of names making accessories for iPods and iPhones).
2. Light users will finally get a real option: Other than gadget enthusiasts and die hard Apple fans who will lap up iPads, like they have done with other new devices from Apple– iPad will give a real option to many light & mobile users. I can see frequent travelers and elders as two immediate potential user groups. The latter group would especially like the iPad for its ease of use, portability and most importantly – picture –cum-photo frame capability.
3. Will take Apple towards masses (Netbooks have a definite reason to worry!): At $499, iPad is still more expensive than most of the Netbooks and even some Notebooks. However, if the announced price comes to Asia, it will reach many more users than what iPhones & MacBooks have managed to in the past. Let us look at the approximate price gap between Apple and other products in three key categories. Observe how the price gap is shrinking continuously.
|
|
Category |
Apple Product |
Competition (Approx.) |
Approx. Price Difference |
|
1 |
Mobile Phone |
iPhone 3Gs (16GB) USD 694 |
NokiaE71 Smart Phone USD 276 |
USD 218 |
|
2 |
MP3 Player |
iPod Touch (8GB) USD 202 |
Creative Zen V 4G USD 47 |
USD 155 |
|
3 |
Netbook |
iPad USD 499* |
ASUS ePC 1000 USD 375 |
USD 125 |
* Assuming same price as in the US
Although the price difference between Apple’s latest product and the competitors continues to be significant but the lower unit price of iPad will make it much easier for a prospect to own it.
This is a dramatic shift in Apple’s marketing stance. No more can Apple said to be a designer’s ‘designer’ choice and average Joe’s fantasy. It is now becoming a smart and efficient choice. In this way, I see Apple becoming more like Google than continuing to be the Apple from the past. The only big difference still being, Open Vs. Closed source outlook.
This need to address a wider consumer group is perhaps also aimed at building a broader ecosystem of OS based devises as a countermeasure to Android’s increasing presence in devices beyond mobile phones. (See chart 2)
iPad Won’t
1. Notebooks need not worry (yet): iPad has not been designed to be a mainstream personal computing device. Lack of USB port, no CD/DVD Drive, limited memory, no LAN Port etc means that Apple does not want this thing to mess around with its own Notebook Sales.
2. Replace Kindle: Serious readers will stick to Kindle. It is not just about the battery life (10 days vs iPad’s 10 hrs) the iPad screen is better suited for watching movies and pictures than reading books. A serious reader will not hazard the strain on eyes because he wants a more beautiful thing in his hands. (But expect Kindle to respond with a better Kindle sooner than before.)
Personally, I foresee, eBooks gaining traction, movie watching coming to the lap not just in airport lounges but at home as well; Casual gaming becoming more engaging; Laptop bags making way for iPad folders; Photographs coming to life more spontaneously and in entirely new ways; Speakers and other home theatre system accessories spawning a whole new iPad ecosystem, among others.
In his presentation Steve Jobs stated “Apple is now the largest mobile devices company”, I would add by saying that Apple is a consumer electronics company that is increasingly making other consumer electronics brands look like manufacturers of ‘peripherals’.
I sincerely hope that the rise of Apple also leads to the birth of a worthy competitor.
While going through a recent edition of Businessweek, I came across a story on how publishing houses are trying to put up a front to counter the rising dominance of Amazon (Trying to avert a Digital Horror Story – Businessweek, January 11)
There is a mention of how people are interested in paying for a variation on the standard book viz. a single chapter or a searchable database. As a result some of the publishers are now considering bringing out iPhone applications for some of their books.
This is very fascinating. First books transitioned into their paper-free avatar –the eBooks and now they are going one step further – into applications.
There is a mention of a book called “What to drink with what you eat” which the publishers are now trying to turn into an app that is like a ‘virtual sommelier cum food critique’, featuring food and wine pairings and tutorials and flavour balancing.
This signifies a shift in the way publishing houses think and has impact on the way information would be packaged in the future. The example of a book turning into an application shows how knowledge is being turned into applied knowledge. It seems that just the way there has always been a market for knowledge from books, the market for the application of knowledge from that book will become bigger and bigger in the future. Being able to use the things that we read in a book – when we are in a meeting, or having lunch or when we are traveling, offers a big opportunity for books to expand their relevance and impact.
‘The application mind set’, as I call it, can potentially turn almost every idea, every bit of information into a byte-sized tool that is always on tap. Thanks to effective miniaturization of technology – the future of knowledge and information will go more and more down the application path.
“What can be the iPhone application for this idea?” is a question, that can help us unlock the potential of any good idea that crosses our mind in the future.
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