distribution policy apple
Post on 17-Oct-2014
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TRANSCRIPT
Alberto Zanco
1. Product overview & corporate strategy2. Distribution channels & strategy3. Conclusions & recommendations
1. Product overview & corporate strategy
Not only Personal Computers…
…but also Portable Devices
Product Strategy
The company leverages its
unique ability to develop its OS,
hardware, application SW and services
Targets
Brand management
Challenges to this strategy
Feature model evolution
2. Distribution channels & strategy
Apple’s distribution structure
B2B Channels
Not sold through direct sales force due to small volumeHigh level of serviceChannel with high level of control from Apple
Need for consultancy and assistanceCrucial consultant roleUse in educational environment also has a promotional dimension
Shorter channel due to the active role of Apple in the design of this systemsOn-line services for companies similar to DellGovernments buy mainly through tenders
B2B Channels
Flagship stores95% of customers don’t consider Mac
Serving local communitiesZero investment from AppleHigh quality experience
Very problematic, due to inexistent purchasing experienceSelected retailers only (best Buy)Separate space, serviced by Apple staff
With one store acce
Multichannel shopping process
NeedRecognition
Search
Comparison
Choice/Purchase
Outcome
Web
Store
Web
Store/Reseller
Web
Store
First time customerApple customer A Apple customer B
Channel overview
Advantages Challenges
Multichannel shoppers are more valuable
Multichannel shoppers are more loyal
Multichannel strategy strengths the brand
Needs coherence Database
management is crucial
Cooperative corporate culture
Apple corner at Best Buy
Apple Premium Reseller
Apple On-line Store
Apple Store
Why Apple jumped in the retail business? Low exposure Bad purchasing experience Customers not able to perceive the value
“Within [Sears] the computers invariably had missing keys, shipping boxes were crammed into the area, merchandise was askew, and software was poorly displayed. Even worse, CompUSA employees were generally completely unknowledgeable about Macintosh computers and related gear. It was a very discouraging experience.”An experience from an Apple buyer posted on the Forum of
the website ifoapplestore.com
Apple’s goals
Retail strategy SWOT analysis
Retail turnover growth compared with overall turnover
Apple Store vs. Luxury Retailers
3. Conclusions & recommendations
Conclusions & Recommendations The hardware market will be
increasingly undifferentiated Devices can be used as Trojan
horse for introducing standards (iTunes)
A migration towards services could be inevitable
Conclusions & Recommendations
Product oriented Service oriented