Describe the role of Apple stores as an important part of its marketing strategy

Question

Describe the role of Apple stores as an important part of its marketing strategy. (minimum of 500 words)

2 Apple's Winning Marketing Strategy CASE Synopsis: Few companies have been able to master the arts of prodact innovation, a "cool" brand mage, and customer evangelisns like Apple. After nearly collapsing under a doud of bankraptcy in the mid-1990s, late Apple CEO Steve Jobs was alble to save the company he created chrough product innovaticn, a masterful marketing program entrepreseurial corporate culture. This case reviews Apple's history and remarkable cometack with an eye toward the e marketing strategies that created the company's case abo esamines many of the challenges faced by a company that continually pushes the boundaries of marketing practice to stay on top of the consumer electronics and computer industries innovation, marketing program, prestige pricing, coempetition, changing technology, customer loyalty, forein sourcing, intellectual property, privacy issues, corporate aulture, sustasinability ew companies can boast that they have fans that sleep outside its doors to be the first to snag its latest products, but such is the case wish Apple. Inc. In 2011, Apple surpassed Google to become the most valable global brand, with an estimated value of $153 billion. Headquartered in Cupertino, California, Apple has transformed itself from a company near hankrupkcy in 1997 (with a stock price of $3.30) to the world's most valuable coempany in 2012 (with a stock price of moee than $600). Many companies have tried to copy Apple's strategies, but none have reached the ?conic status of Apple and its products. Some believe that Apple's success stems from a combination of several factors, including the leadership qualities of late CEO Steve Jobs, a corporate culture of enthasiasm and innovation, and the revolationary products for which Apple has become known. While every organization must acquire resources and develop a basiness strafegy to pursue its objectives, Apple has excelled in both leadership and operations. One of the company's most important resources is its employees, and the company has effectively recruited, trained, and ployees to create loyalty. Another resource is suppliers, and Apple has created a highly efficient and effective sapply chain with most of its production in China. Apple has also mastered core research and development skills that have allowed the company to translate its technological capabilities into products that consumers want and are willing so pay a prenmium price to oblain. The capstone of is its retail stores that have become a role model for its competitors, Apple's strategy atdl lawrper herd. Ustversity of New Meskco prpared this ase undes thr drection of OC Ferredl for dasroon áscusion rather dhan to Mastrate eflecthve or ineffective handling of un dminstra O.c 327

Explanation / Answer

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1. Apple has developed extreme loyalty among the customers as Apple products are easily synonymous with the word quality. Their offering is premium product over what they call the “junk-market”. Therefore, their product strategy can be called the “great product strategy”.Leveraging the fact that they produce hardware, software, OS and other implantation.
Apple offers a wide range of elite class products that are performance oriented with great designs. The company also focuses on providing the customers great after sales service support.
Apple's vision is to give the customers the best possible experience in terms of personal computing in its class. The company created a demand for iPad in 2010 which enabled the company to be ahead of its time and Apple values are the quality that they ensure to give in every segment of their products that they offer, and the principle of the company to encourage their employees and to provide the customers with the best in class after sales service support in order to achieve their organization’s goal. This helped Apple to create a brand value and maintain a good image in the eyes of the customers which is very important for the survival of every business as the customers are considered as the end users of the company's offerings. By creating a user-friendly interface, the Apple company became a cultural icon that attracted loyal followers to avail the Apple services or offerings that has resulted in an almost "cult-like following" and this enabled the company to master the concept of "product differentiation".

2. The Apple retail stores and services have mastered product differentiation by promoting cultural branding. Apple stores “great product” strategy involves providing the customer with a premium offering of a product that essentially defines quality. They create fewer variations of products due to the reason that they have found their niche in the sense that they know which products perform more and redesign the scope of its implementation over the current design. Their packaging, offering, plans, and updates are what make their brand a favourite for people and provide for the competition aspect for the other companies.

Apple’s distribution strategy involves selling the product through closely controlled channels. They sell their products online on the Apple store website, through Apple stores and then create a distributor network through large electronic sellers. They offer premium products and the strategy they follow is that they never discount their products no matter which channel it is sold through. They maintain the price through the use of minimal dealer margin and set pricing with no holiday sales cut offer. This allows them to maintain a reasonable stability in their pricing range and distribution network.

Apple endorses their product through various streams like the media, the internet, big advertising in prime time channels and advertising through sports sponsorships. They spent a fortune on this part of the product’s lifecycle, to a point where pre-sales booking starts a month or so prior to the date of the release and is really hard to buy during that initial phase due to the massive demand in the consumption of the products.

Apple Store offers a wide range of elite class products that are performance oriented with great designs and Apple’s current mission is to develop their new software versions for the iPhone, I-watch, Imac (i.e iOS, mac os, Watch os) and to make their products more sleek in design which gives the company a competitive advantage over Samsung, Htc, Google and HP.

Apple's creative and innovative marketing strategy helped the company to create various segments for every product that they offer. Example- iPhone targets the segment of mobile phones which enabled the customers to purchase the Apple products from Apple stores or through online modes ensuring increased sales in every segment of their offerings. As the former CEO of Apple John Scully stated the Apple was first a marketing company as it had a clear perspective of targeting the specific segments of the market i.e. The company knows what to sell and whom to sell. Although by advancing in the mobile marketing, the company's relationship with the customers has not changed a bit whereas the company enhanced the "buyer-seller" relationship by inventing various platforms for the customers such as Icloud and Apple music.

This shows that the Apple stores played an important roel for marketing its products through various channels and helped the company to have various distribution channels which lures the customers at the time of their new product lauch and enables them to pay more than its competitors in order to get the latest iphone, ipad and imac.

3. Apple needs to monitor the business environment on a regular basis in order to maintain its position in the market and to be ahead of its competitors as the companies like Samsung and Google does have an edge in market in terms of innovation which could hamper the sales and position of Apple and in order to preserve innovation and customer loyalty the company needs to work collectively to maintain its quality and value to provide the customers with the best in class after sales service support and must set higher standards in terms of innovation to capture and maintain a share in the market. As Apple may face tough competition in the future. However, Apple is still doing great when it comes to innovation and technology and the new CEO of the company Tim Cook surprised the Apple fans by introducing the touch id in the iPhone 5s in 2013, being the first smartphone in the world to have a real "fingerprint sensor" and whereas in 2015 Apple launched the 3d touch system with hands-free Siri control and the latest invention such as the iWatch, airpods and the iPhone x with its revolutionary infinity display design is very appealing and the after-sales service support is as amazing as it was earlier. So, I think that Apple is still maintaining its brand value.

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