|Proposal |
Background The market for portable music players has been an industry that continues to be innovative and in current years has been dominated by Apple products. Apple has been in the portable music industry since 2001 and the world has been forever changed due to their ever-popular iPod. These hard-drive based systems allow consumers to take music with them on the go. In 2006, Microsoft introduced the Zune, an entertainment platform and portable media player to compete with Apple’s iPods. Along with the introduction of this product Microsoft has also introduced the Zune Marketplace to compete with Apple’s iTunes. The Zune media player now has the ability to wirelessly connect to other Zune players and share their content. This wireless connection also allows the consumer to connect to the internet using a Wi-Fi connection. The competitiveness for portable media players in the market place has caused innovation to drive success. Due to the popularity of the Apple iPod products Zune sales were far from the expected. With this problem Microsoft has had to recreate the product to better fit the needs of the Target Market. Sales have been stagnant over the years but Microsoft is not willing to give up on their product just yet. In September 2009 Microsoft introduced its newest version of the Zune titled the Zune HD.
Defined The major marketing problem that Zune faces is a product positioning deficiency. The target market is either unaware of the Zune or not willing to try the Zune due to the competition, specifically the iPod. The Microsoft Zune needs to be re-positioned to meet the target markets needs and to be perceived by the target market as a unique and significant product. ("The Microsoft Zune" 2009). The Zune is an
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