Download - Distribution policy-apple-1227810589544805-9
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Alberto Zanco
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1. Product overview & corporate strategy
2. Distribution channels & strategy
3. Conclusions & recommendations
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1. Product overview & corporate strategy
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Not only Personal Computers…
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…but also Portable Devices
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Product Strategy
The company leverages its
unique ability to develop its OS,
hardware, application SW and services
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Targets
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Brand management
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Challenges to this strategy
Feature model evolution
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2. Distribution channels & strategy
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Apple’s distribution structure
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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
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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
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Multichannel shopping process
NeedRecognition
Search
Comparison
Choice/Purchase
Outcome
Web
Store
Web
Store/Reseller
Web
Store
First time customerApple customer A Apple customer B
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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
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Apple corner at Best Buy
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Apple Premium Reseller
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Apple On-line Store
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Apple Store
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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
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Apple’s goals
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Retail strategy SWOT analysis
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Retail turnover growth compared with overall turnover
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Apple Store vs. Luxury Retailers
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3. Conclusions & recommendations
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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
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Conclusions & Recommendations
Product oriented Service oriented
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