Distribution Policy Apple


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Distribution Policy Apple

  1. 1. Alberto Zanco
  2. 2. <ul><li>Product overview & corporate strategy </li></ul><ul><li>Distribution channels & strategy </li></ul><ul><li>Conclusions & recommendations </li></ul>
  3. 3. <ul><li>Product overview & corporate strategy </li></ul>
  4. 4. Not only Personal Computers…
  5. 5. … but also Portable Devices
  6. 6. Product Strategy The company leverages its unique ability to develop its OS, hardware, application SW and services
  7. 7. Targets
  8. 8. Brand management
  9. 9. Challenges to this strategy <ul><li>Feature model evolution </li></ul>
  10. 10. <ul><li>Distribution channels & strategy </li></ul>
  11. 11. Apple’s distribution structure
  12. 12. B2B Channels <ul><li>Not sold through direct sales force due to small volume </li></ul><ul><li>High level of service </li></ul><ul><li>Channel with high level of control from Apple </li></ul><ul><li>Need for consultancy and assistance </li></ul><ul><li>Crucial consultant role </li></ul><ul><li>Use in educational environment also has a promotional dimension </li></ul><ul><li>Shorter channel due to the active role of Apple in the design of this systems </li></ul><ul><li>On-line services for companies similar to Dell </li></ul><ul><li>Governments buy mainly through tenders </li></ul>
  13. 13. B2B Channels <ul><li>Flagship stores </li></ul><ul><li>95% of customers don’t consider Mac </li></ul><ul><li>Serving local communities </li></ul><ul><li>Zero investment from Apple </li></ul><ul><li>High quality experience </li></ul><ul><li>Very problematic, due to inexistent purchasing experience </li></ul><ul><li>Selected retailers only (best Buy) </li></ul><ul><li>Separate space, serviced by Apple staff </li></ul><ul><li>With one store acce </li></ul>
  14. 14. Multichannel shopping process Need Recognition Search Comparison Choice/ Purchase Outcome Web Store Web Store/ Reseller Web Store First time customer Apple customer A Apple customer B
  15. 15. Channel overview <ul><li>Advantages </li></ul><ul><li>Challenges </li></ul><ul><li>Multichannel shoppers are more valuable </li></ul><ul><li>Multichannel shoppers are more loyal </li></ul><ul><li>Multichannel strategy strengths the brand </li></ul><ul><li>Needs coherence </li></ul><ul><li>Database management is crucial </li></ul><ul><li>Cooperative corporate culture </li></ul>
  16. 16. Apple corner at Best Buy
  17. 17. Apple Premium Reseller
  18. 18. Apple On-line Store
  19. 19. Apple Store
  20. 20. Why Apple jumped in the retail business? <ul><li>Low exposure </li></ul><ul><li>Bad purchasing experience </li></ul><ul><li>Customers not able to perceive the value </li></ul>“ 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
  21. 21. Apple’s goals
  22. 22. Retail strategy SWOT analysis
  23. 23. Retail turnover growth compared with overall turnover
  24. 24. Apple Store vs. Luxury Retailers
  25. 25. <ul><li>Conclusions & recommendations </li></ul>
  26. 26. Conclusions & Recommendations <ul><li>The hardware market will be increasingly undifferentiated </li></ul><ul><li>Devices can be used as Trojan horse for introducing standards (iTunes) </li></ul><ul><li>A migration towards services could be inevitable </li></ul>
  27. 27. Conclusions & Recommendations <ul><li>Product oriented </li></ul><ul><li>Service oriented </li></ul>
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