The document discusses Apple's use of a hybrid distribution system. It began with an independent dealer network but added direct sales as products became more sophisticated. Apple's current hybrid system includes Apple retail stores, selected resellers' stores, and online stores to increase accessibility. This allows customers a direct experience of the Apple brand values and helps Apple understand all aspects of the customer experience.

1. By
A.Rachana
16331E0005

2. Companies are using a hybrid channel system
to increase its effectiveness of reaching the
consumer. Choose or find one example of a
firm using the hybrid system for distribution,
and comment on how you see this system
delivering value to the consumer.

3. What is hybrid marketing system?
• hybrid channels (or multichannel
distribution systems)
• Number of different channels and
communication methods to serve a
target market.
• Increase its effectiveness of reaching the
consumer

4. PRODUCER DISTRIBUTERS
Consumers
segment 1
DEALERS
RETAILERS
Business
segment 1
Business
segment 2
Consumers
segment 2
SALES FORCE
CATLOGS, TELEPHONES, INTERNET

5. APPLE
Apple Computer also started out with a clear
and simple channel strategy. It distributed its
inexpensive personal computers through an
independent dealer network. But when the
company began to sell more sophisticated
systems to large companies, it had to change.
Apple hired 70 national account managers as
part of a new direct sales operation.

6. APPLE
ONLINE
STORES
RETAIL
STORES
RETAIL ER RETAIL ERADDED
VALUE
RESELLER
APPLE’S DISTRIBUTION STRUCTURE
FINAL
CONSUMER
FINAL
CONSUMER
FINAL
CONSUMER
FINAL
CONSUMER
FINAL
CONSUMER

7. COMMENT:
• Helps to understand that all aspects of the customer
experience.
• Own retail stores in key cities around the world in
up-market, quality shopping venues
• Selected resellers' stores
• Apple has also increased the accessibility of products
• High reach to customers.
• Prospective customers direct experience of Apple's
brand values.
• Apple Store visitors
– experience a stimulating, no-pressure environment where they can
discover more about the Apple family, try out the company's products,
and get practical help on Apple products at the shops' Guru Bars.
– Apple retail staff are helpful, informative, and let their enthusiasm
show without being brash or pushy.