Product Innovation Charter: The iDash

Apple© Presents: The iDash THE ULTIMATE AUTOMOBILE CONTROL Professional Challenge Paper -Jessica Allen- March 27, 2011 Product Innovation Charter Focus The iDash is an on-board automobile dashboard system that can be controlled by the iPad. The focus of the iDash will be to create the ultimate driving experience for the up-scale, cultured driver. Apple will seek to enter into the automobile market by using two of their most successful products that are already staples in many households to garner increased sales for the company.

Goals iDash will create a centralized automotive control center for the driver. The iDash will also allow the driver to use any navigational system that they prefer, as the iPad give access to Garmin © and TomTom© Apps. (garmin. com) (tomtom. com) The iDash will also revolutionize the ability for the driver to multitask in the car and stay connected with the use of all of the Apple © Apps housed on the driver’s iPad. Guidelines The iDash is a built-in device with a docking station in the vehicle where the iPad can be inserted.

The device can be activated using the hands-free or touch screen option. The iDash, in line with competitors, will “… sport more features than ever to help… [drivers] get from point A to point B quickly and safely… [including] features such as audible driving directions with text-to-speech (TTS), spoken street names, real-time traffic updates, Internet connectivity for points-of-interest search, and large easy-to-read screens… ” (Goodwin, 2010). The cost of the product will be included in the price of the car as an added feature to the vehicle.

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Product Description Apple is venturing into cars. They have already taken over the phone industry. Now, Apple is introducing the iDash. The iDash is not an App. It is much more. The iDash is an on-board automobile dashboard system that can be controlled by the iPad. The iDash creates the ability to use the iPad docking capabilities to all-inclusively transfer all of their APPS to the iDash where they can be used on a larger screen and through any headrest screens, and video-movie players, as well.

The system would not just be the navigational component and would not just transfer all of the iPad’s Apps it controls the cars whole dashboard system, including temperature control, video system control, tire pressure and fuel level manager, etc. Apple explains that the iPad features 12 next-generation Multi-Touch applications making surfing the web an entirely new experience, dramatically more interactive and more intimate than on a computer. It goes on to detail that when using the iPad, you can watch movies, TV shows and YouTube, all in HD or flip through pages of an e-book, or listen to your music collection(Apple. om). The iDash would be the perfect complimentary product for Apple’s already stellar offerings. It would fit into the company’s product offering list seamlessly, as it uses two of its most purchased products to enhance the system. Apple© has a reputation of producing exclusive and quality products and because of its inherent integration of the iPad, the iDash will be an expansion of this great tradition as it is a perfect addition in the natural progression of the company’s product line. The driver will no longer have to use multiple buttons in multiple places to control essential functions of the car.

The iDash will also create an interactive experience for the driver who can use a hands-free or touch screen option that allows the driver to move throughout the functions quickly taking less of the driver’s attention or time from focusing on the road and/or destination. With all of the booming technology that Apple is already displaying, the iDash will bring Apple© to the car, one of the places where most of our time is spent. Competitive Analysis Competitor Comparison The GPS and portable navigation device market is seeing consistent growth and becoming more and more crowded.

However, Antuan Goodwin, Associate editor of CNET Reviews, explains that “today’s PNDs sport more features than ever to help you get from point A to point B quickly and safely… [including] features such as audible driving directions with text-to-speech (TTS), spoken street names, real-time traffic updates, Internet connectivity for points-of-interest search, and large easy-to-read screens… ” His review also details the top devices and companies that produce the PNDs. The top competitors for the iDash in the market are Garmin, Motorola, TomTom, and Magellan. Garmin

Garmin boasts a many portable navigational devices, including the top five contender reviewed by CNET, the Garmin Nuvi 3790T, which is a portable navigation device that costs from $329. 99 – $449. 99 and is one of the thinnest and lightest, the best looking device, that comes equipped with hands-free voice command, hands activated merely by speaking to the Nuvi and free traffic data updates. However, the Nuvi 3790T has some negatives. The screen can provide glare from direct sunlight and traffic data cannot be accessed while holding the device. Garmin also has an iPhone App.

The Garmin StreetPilot® was designed exclusively for the iPhone® or iPad®. The App works on both 3G and EDGE networks and allows the user’s phone to become a GPS navigator with turn-by-turn voice-prompted directions with the most up-to-date map data available, real-time traffic updates at no extra cost, and the capability to browse maps that have already been downloaded and stored on the device. (garmin. com) Motorola Motorola’s MotoNav TN765t has updated hardware, features combined maps and the menus, the device also contains Bluetooth hands-free calling with address book sync and voice dial, text-to-speech, and free FM-traffic reception.

There is also are the MotoExtras service which can be used to add data connectivity by using a Bluetooth-paired phone’s antenna to transmit. The MotoNav TN765t costs about $135. 99. Some issues with the device include the fact that The MotoExtras data service isn’t always on, so the device has be manually refreshed for the latest info. Also, the GPS tracking in skyscraper-dense urban areas is a bit sketchy. (cnet. com) TomTom The next on the list is the TomTom XL 340 S. To its credit, it is priced well below the premium price bracket at $94. 95 – $169. 99. The TomTom XL 340 S has advanced features such as lane guidance, downloadable fuel prices, and user updated maps from TomTom Map Share. Its large 4. 3-inch WXGA touch screen is easy to read and to enter addresses on. Text-to-speech enhances the device’s safety. ”(cnet. com) But, the TomTom XL 340 S does have its draw backs. Its larger size, and additional thickness due to the EasyPort mount, somewhat limits its portability. It also routs slower when the vehicle is moving versus when it’s stationary. Tom om too has an iPhone App and the ability to come as a built-in navigational system.

The TomTom App update comes with the latest and most up-to-date map, the option to make changes to the user’s map and benefit from thousands of updates made by TomTom users on-demand, free of charge. The app has IQ routes that take into account rush hour, traffic lights, and even shopping crowds. The in-car navigational device has a 5. 8″ (15 cm) color screen, automatic traffic information via the built-in TMC connection, home desktop software to get new software, download new maps, access free content from the TomTom community and subscribe to services, and a latest map guarantee.

Some drawbacks to the system are that users are only entitled to one free map download, and that due to the continuous improvements in map quality, some new maps may not fit on the device and Map Zones have to be used for downloading. But only one Map Zone can be used on the device at a time. (tomtom. com) Magellan The last company that is a major competitor is Magellan. Overall score: 7. 0 (3. 5 stars) “The Magellan RoadMate matches the competition’s performance and ease of use, while providing a larger screen at a lower price. ” (cnet. om) The OneTouch menu allows the destinations and searches to be easily accessible along with a destination confirmation screen that gives users different choices as to how users can get where they’re going. The device costs about $104. 95 – $161. 40, which is comparable for the market. The negative aspects of the device are severe. The “poorly designed cradle interferes with power cable when mounting. The onscreen keyboard cannot be changed from its alphabetical layout to a more familiar QWERTY layout. ”(cnet. com) Competitor Assessment The competitors in the field are very formidable.

NAVIGATOR There are barriers to entry for Apple, including a possible perception of incompetence in this industry, the possibility of aftermarket sales, and market saturation. However, two of the companies already use Apple devices to promote their own products through Apps, so the iDash should not have trouble being accepted by iPad users. Also, as far as the aftermarket retailing, it would be non-existent. This would be a point of purchase, all or nothing purchase directly from the dealer already included in the car in order to maintain the prestige of the product and Apple’s reputation of producing exclusive and quality goods and services.

Apple© has major brand recognition and a stellar reputation in regards to electronic devices and can definitely overcome any possibility of market saturation by attracting loyal customers who believe in the company’s products and services. Also, the iDash is not just a navigational device. It is a touch screen and voice-activated car control center. No other company can compare with its features, which will give users total control over their automobile’s internal and external systems and levels. Product Development Process Potential-Market Description

The iDash will be marketed to luxury car dealerships that cater to a high-end clientele. Lexus, Mercedes-Benz, and BMW dealers would be on the shortlist of target dealerships. As far as the aftermarket retailing, it would be non-existent. This would be a point of purchase, all or nothing purchase directly from the dealer already included in the car in order to maintain the prestige of the product and Apple’s reputation of producing exclusive and quality goods and services. The iDash system would be marketed to high-end buyers.

A typical customer who will purchase a car with iDash technology would be someone who would have the iPad2 and already be on the waiting list for the iPad 3. The market segment targeted would be those “techy” luxury car buyers who like to show off and always have the “next” and be on the cutting edge of technology. Many celebrities would buy this car because of the exclusivity and allure. Product Elements The iDash will go directly from the manufacturer to the car companies and will need minimal packaging. They will be housed in protective boxes in order to make sure that they are not damaged during delivery.

Also each iDash will come in its own sleeve and protective covering. The iDash will be rectangular in design and fit snuggly into a car’s center dash and include two headrest monitors. Because iDash is a feature that will come included in the vehicle, the main features would be anything that is needed to control the internal and external control systems. The iDash port will be selected before installation and gives the purchaser the choice of an iPad dock. The device can be activated using the hands-free or touch screen option. The iDash will give users access to the over 350,000 iPad Apps.

They will be able to use their choice of Garmin © and TomTom© navigational Apps, view movies already downloaded on their iPhone or iPad, adjust and control the tire pressure, gasoline levels, and many other applications in order to improve their driving experience. Pricing Strategies Apple is a premium brand of computer. The iDash pricing strategy is simply based on the market value for similar products. The high-end, fully loaded navigation devices that are closely aligned with the iDash are priced around $500. The iDash price will need to include parts and labor costs for nstallation and electrical wiring. The car price will increase by $2000. The price will be well worth it as the iDash is much more than a navigational device. The price will be high enough to maintain the sense of luxury, but low enough to not be outrageously but manageable. Part of Apple’s current pricing psychology is that if something is just a little bit out of the buyer’s price range, it’s desirable. They bank on the fact that at some point, a dream will come true (or an income tax refund check arrives) and the dream can be fulfilled and iDash will follow suit.

Channel and Distribution Strategies As discussed before, the iDash will go direct from Apple to the car manufacturers. Customers will not be able to access the iDash independent of the car dealership. Apple will also continue its very secretive policy in its creation and manufacturing phases. Therefore, there will not be able to be any black market distribution. Apple will manufacture the iDash parts in the same Taiwanese, South Korean, and Chinese plants. The iDash will also have its own websites and software and technical support outlets through the apple. om site just as current Apple© products experience. Apple will not manually install the iDash themselves, but each car company that receives an iDash contract will receive the product components and installation and set up instructions. Apple will work closely with the chosen car company or companies to manufacture the cars upfront with the space for the iDash to be readily installed. Marketing Plan SWOT Analysis The current culture of technological expansion is a hallmark for the global environment.

Apple’s current strengths are being a design innovator that always stays ahead of industry trends and the ability to create electronics that fit people’s lives. Other strengths include the market share that Apple currently has in the industry along with the brand’s great reputation held by customers. Although the company is very successful, its profitability is almost totally dependent on the global economy. “Economic downturns can have a significant negative effect on the company, and fluctuations in foreign currencies make profit predictions in foreign markets uncertain. ”(ehow. om) Even with its weaknesses, Apple has many opportunities including the chance to create more innovative products and applications. But, the company also has great opportunities to extend their current product lines by integrating their current products with other established products and brands. The iDash is part of the planned product line expansion. The only current threats to Apple’s success are the several legal actions being levied against them. Possible negative outcomes from the suits could negatively affect the company, as well as the costs of legal defense for the company. ehow. com) © Marketing Strategy Apple communication is sober, intriguing, simple, clear, minimalist and clever. And it has a style of its own. This is seen in the TV ads, print ads, and in the online communications. Apple uses its ability to make great, user-friendly products to entice the costumers, but also does it with style and cleverness. It boosts sales and enhances the brand value. The iDash will fall in line with Apple’s current marketing strategy. Launch Plan The iDash will be introduced at one of the usual Apple company press conferences.

Also teaser commercials unveiling the new technology will be used to drum up excitement for the new technology along with the secrecy that usually surrounds the production and release of Apple products. The commercials will be centered on creating the ambiance of the high-end driving experience that shows current iPad users how they can enjoy their favorite Apple product in a vehicle while still allowing them to stay connected in a safe manner, continue to work on office projects from the car, and control their driving experience through voice recognition or touch screen technology.

Each commercial will give the viewer one more benefit to the iDash building desire and suspense in the way that Apple has done successfully in the past. Print ads will be strategically placed in magazines that are ascertained to be heavily read by Apple product users. iDash will be marketed and launched as a product that feels like it is a natural addition to the important products in the consumers’ lives. It will be launched as a complimentary accessory to the iPad that everyone already uses, loves, and can’t live without.

Reference List Goodwin, Antuan. (November 5, 2010). Best 5 GPS navigation systems Retrieved March 6, 2011:http://reviews. cnet. com/best-gps/ https://buy. garmin. com/shop/shop. do? cID=134 http://www. tomtom. com/en_gb/products/built-in-car-navigation/carminat-tomtom/index. jsp Retrieved March 10, 2011: http://www. apple. com SWOT Analysis for the Apple Company Retrieved March 21, 2011: http://www. ehow. com/facts_6801257_swot-analysis-apple-company. html#ixzz1HCisowQX ———————– Professional Challenge Paper