Channel Conflict at Apple.pptx

7/27/2019 Channel Conflict at Apple.pptx

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HOW IT ALL STARTED??

Apple was founded on 1st April 1976 and incorporated on 3rd January 1977.

The Apple I , its first offering was better then other machines because:

It was priced lower than other computers available at the time.

Had fewer parts, &

Was marketed to only individuals with an interest in computers and electronic.

In its opening year the sale revenue was about USD 774,000 an impressive start.


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HOW THE APPLE GREW

PRODUCTS LAUNCH FEATURES RESPONSE

APPLE I

1977 MOStek 6502 processor.

TV as display unit.

Big Hit

APPLE II

1977

(Upgraded in

1978)

MOStek 6502 processor. Color Graphics.

Audio cassette drive for

storage with 4 KB RAM

Later upgraded with floppy

disk drive & 48 KB RAM in

1978.

Raked in about

US $ 139 million

within first 3 yrs.

of its launch.

APPLE III

1980

Text & Graphics

128 KB RAM

Updated System Software


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LISA

Type: Businesses

Machines

Launched: 1983

Innovative features

like:

Hand held mouse

GUI Primarily owing tohigh cost.

MACINTOSH

1984

128 KB Memory

32-bit processor

Mac OS that could

run on all applecomputers.

Personal Users

Big Corporations

iMAC SERIES iMAC -1998

iMAC G5 -2004

iMAC Mini -2005

Internet MAC

Designed primarily

for new users.

Low Cost.

iPOD & iTUNES 2001 followed by

iTunes in 2003 &

iPOD shuffle in 2005

10 GB storage

1.8 Hard Drive

iPOD shuffle had

flash memory.


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Reasons for apple opening its own

retail stores

Increase market share More control over sale of its products

Highly competitive PC market

Better buying experience Ambience and presentation of products

Building customer base and loyalty Better understanding of customer needs

Problem assessment (Genius Bar)

Brand awareness


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Channel conflict resolution


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Concerns of Resellers

Prices were lowat apple retail storespredatory practices(discounts)

Difficulty in procurements of new apple

products Apple shipped new models to its

own stores first

Apple salesmen used to convince customers

to buy onlyfrom apple stores.

Faulty product return policy

Customer data from resellers was used by

Apple to approach them directly


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Price Variation

1547

2092

1287

2173

966

1117

0 500 1000 1500 2000 2500 3000

iMac

Titanium

Powerbook 12 inch

PowerMac G4

eMac

iBook

Chart Title

Apple retail stores

Independent Resellers

Minimun Advertised Price (US$)


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Apples Policies towards resellers

Since a major chunk of their revenue came from its

own stores it definitely gave preference to them

Removal of middlemen to get more profits and build

a bigger customer base


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Conflict Resolution

Reseller

Customer experience

Discounts and freebies

Adequate stock of accessories

Better product presentation

and promotion

Better training to salespersonsto resolve customer doubts

Apple

Ensure Adequate inventorylevel

Discounts offered should beidentical

Warranty and product returnpolicy should be changed

Discriminatory policies shouldbe changed in revisedagreement


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Channel Conflict at Apple.pptx

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Transcript of Channel Conflict at Apple.pptx