Creative Gunning For the iPod

yashchopra writes "CTZ is running an article where Creative's main goal in 2005 is to take away market shares from Apple's iPod music player, which they believe is very possible. The publication also have some information on the upcoming flash MP3 player standards that we will see this year. "While many companies are looking forward to their flash MP3 players, Creative has other plans. Creative was one of the most popular exhibitors on the show floor with their Zen Micro and Zen Touch players on display. Creative's sole goal this year is to take away some market shares from Apple's iPod. The company believes it to be a possible task, as iPod is limited to iTunes when it comes to purchasing music online and with Creative's products, you will be able to purchase music from major online vendors. The ability to download and listen music from any major online retailer and the price are what Creative is using as their marketing strategies to compete against Apple's iPod. But other than that, Creative's products look very much like the iPod with a few changes."

Comments

Why iPod rules

[harikiri]

I've had a few discussions with my friends about the iPod and why it rules (in the wake of the Shuffle announcement). Here is my argument:

1. It's not about size: Other companies trying to advertise bigger storage will fail, except for geeks with deep pockets and niche requirements.
2. It's not about features: People do not purchase iPod's because they have every feature under the sun. Instead - Apple is deliberately selective.

It's about simplicity.

With regards to the iPod shuffle - yes there are other Flash mp3 players. But for consumers like my mother, who has issues navigating the file system, she doesn't have to (a) rip a cd and then (b) find where her ripped mp3's are to (c) copy them across to her flash player.

With an iPod, she simply sticks in her device to charge, and music syncs between the iPod and iTunes automatically. If she wants to burn a CD she sticks one into the computer and presses a single button: import. She doesn't need to know anything about which codec to burn a cd with (mp3/aac/wmv), or where on the filesystem they end up, or dragging an dropping. It happens for her automatically.

Simplicity and doing what it does do well - is where the iPod shines. If companies want to eat at the iPod market share, it's not about bombarding the customer with a shitload of features. Instead, make a music player, make it easy to import music (this includes minimising any DRM), and make the device SIMPLE to use. I want to be able to explain how it works to my mum in 60 seconds, and to have her "get it". If you can do that, then you've got a product which has a chance.

Software developers and marketers, learn from Apple. Simplicity is king. Don't cause the customer headaches, and they will come back for more.

To Mr. Sim

[onpaws]

To the CEO of the Creative Corporation, Sim Wong Hoo, and fellow Slashdot readers.

Mr. Sim Wong Hoo, it is a pleasure to write to you.

To familiarize the readers, Creative has a long running bout with the reigning king, the Apple iPod. In fact, just last November, you, Mr. Sim, "declared war" on the iPod. . And Today, you had even more fighting words for the newest addition to the iPod platform, the iPod Shuffle:

Said Mr Sim, "Actually, to me it's a big let-down: we're expecting a good fight but they're coming out with something that's five generations older... So I think the whole industry will just laugh at it, -- it's worse than the cheapest Chinese player. Even the cheap, cheap Chinese brand today has display and has FM. I think it's a non-starter to begin with."

I am not here to discuss your comment about the Chinese, nor am I here to bash you personally or your company. I am not even here to talk technical specs, because frankly the lack of a male USB port on your Micro Slim is currently the least of your worries right now.

You are undoubtedly a smart guy, being where you are now. You have sold over 2 million MP3 players last Christmas season, no mean feat at all (vs 4M iPod). There is no doubt that your company Creative is a successful one.

But let me ask you this: You have declared War, but Do you want to WIN this war? Absolutely demolish all that is iPod and steal all the glory? Well then read on because as it stands, this is a War you will live or die for. If you want to live, please consider my Two Cents:

1) Tip #1: Think like the underdog. If you want to be a market maker, you need to grow up and act like one. We all learned about "Perfect Competition" in school, how it meant that there was no excess profit and that the only way to get out of that bind was to differentiate yourself. Right now, iPod is winning because it is differentiable from you (brand name, iTunes integration). How are you winning? What is your battle cry?

For the last two years, Creative has acted just like the "Chinese" me-toos (as you so put down in your latest comment) while Apple has been the market maker through and through. Here are some examples:

When the first generation Apple iPod was released, you still were selling the MP3 jukebox ($480) that could not fast-forward or rewind (true), that looked like a spaceship (definitely), and still took 20 seconds to transfer a song (USB1.0). Quickly, your team raced to build a better looking version, after the success of the big iPod.

The success of the iPod touch interface was also "borrowed" on your Zen-Touch line. And finally, after the Apple iPod Mini was announced, you surprisingly announced the new line of Zen Micro's in 10 colors.

See, I like supporting the "underdog." I like supporting the brightest and most inventive minds. I support Tivoli Audio, Sirius satellite radio, I support many of OS X's small developers' applications, I support the Treo 600, Brian Transeau's music and a million gazillion other small companies out there with insanely great ideas. These are premium but differentiable products that people are willing to spend extra money on.

Make something special, Be somebody special. We want that for your kids right? So incorporate that into your technological children, the Muvo's and the Zen's. Because Nobody honestly lusts to buy a me-too product.

2) Tip #2: Make us shit in o

"Me-too but MORE..."

[dpbsmith]

I can't think of any case offhand where "Me-too only with more" has been a successful marketing strategy. This is lazy marketing...

Of course, if you ask existing customers who like and use a product X what they ''want,'' those customers, just having faced a difficult struggle choosing from different price points in a product line will say something like "I'd like to get the features of the top model at the price of the entry model." Or if they're more ambitious, "I'd like twice the storage, half the size, and half the price." (About the only thing you won't hear from iPod owners is "And I'd like it to play the music twice as fast!).

What the strategy never takes into account is that in the time it takes to bring the me-too-but-more product to market, the manufacturer of the product they're gunning for will probably improve their product.

As for "choice," most computer users I know never change the home page of their browser from the one that's set by the manufacturer. Consumers will happily buy into the all-Apple iPod ecosystem and won't care unless it becomes obvious that the PC download music stores have dropped prices to, say, $0.25 per song, or have a grotesquely larger selection.

It may be a shame, but all the issues about lock-in, DRM, etc. don't matter to consumers until they personally get bitten, and so far Apple has taken great care not to bite consumers much.

It also helps that Apple's stuff works. The number of articles I've read about "iPod killers" by PC-centric sources that acknowledge up front that whatever they're testing wouldn't install, or froze, or had DRM authorization problems is astonishing.

A friend of mine who is just an average PC-centric engineer bought an iPod for his wife. Because it was reputedly a good product and easy to use. His wife, who is mildly computer-phobic, had no problems with it. It just worked. A few weeks later he bought one for himself. He likes it.

Another friend who bought some fairly pricey high-end gadget from Creative, I think, reminds me of all the personal computer enthusiasts of the late 1970s. It constantly presents him with challenges, which he enjoys surmounting. He is a chorus director who brings his player and powered speakers to rehearsals to play us things. It never works, and there is always some good reason why he can't play that particular thing that particular day.

In 2006 will there be WMA music stores?

[amichalo]

After listening to Apple's Q1'05 Earnings call I have to say that I am concerned that the music stores besides iTunes will soon go the way of so many dot-coms. Here's two reasons:
- Apple stated in the call they have 70% market share in on-line downloads.
- Apple stated in the call they posted a small profit on the sale of now >230,000,000 songs (admittedly, these were not all in Q1'05).

If the $0.99/9.99 model is so razor thin that one company with 70% of the market is eaking by, how can six other companies who share the remaining 30% of the market hope to survive?

Napster seems to be in the lead (don't they have about 10% market share?) but it is primarily due to the subscription model they have, not selling tracks/albums. Sounds like an opportunity for Apple to swoop in and service the sub-market for subscribers to me.

But back on subject, the Creative statement that they have some type of advantage because their player submits to the DRM of half a dozen music stores that are loosing money just says to me that Creative is tightening their seatbelt on a sinking ship.