Marketing Channels for IPOD
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A. Why did Apple changed its distribution strategy from selected distributors and Apple Stores including major independent distributors, and the economic effects have such an enlargement in general and for Apple's iPod in particular?
b. What are the main elements of Apple's pull strategy for the iPod, and the positive and negative effects have such a kind of strategy in general and for Apple's iPod particular?
c. What types of conflict, it is reasonable to assume that Apple with the iPod has with the independent distributors, what are the likely causes, and how Apple can best deal with these?
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The solution discusses Marketing Channels for IPOD
a. Why did Apple changed its distribution strategy from selected distributors and Apple Stores including major independent distributors, and the economic effects have such an enlargement in general and for Apple's iPod in particular?
b. What are the main elements of Apple's pull strategy for the iPod, and the positive and negative effects have such a kind of strategy in general and for Apple's iPod particular?
c. What types of conflict, it is reasonable to assume that Apple with the iPod has with the independent distributors, what are the likely causes, and how Apple can best deal with these?
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I am the original author of the following.
a. Why did Apple changed its distribution strategy from selected distributors from Apple Stores including major independent distributors, and the economic effects have such an enlargement in general and for Apple's iPod in particular?
The distribution strategy was a necessity. Keeping the product available only in an exclusive way is fine for a small product but for such a company and such a product, a new distribution product needed to be implemented. The strategy and goal of every company is profits and Apple is no different. The change in distribution strategy was needed to accommodate the world's hunger for Apple's products. No longer did society want to be inconvenienced in long drives or an out of the way Apple store to purchase the company's first class products, especially the revolutionary iPod.
The expansion in distribution has proven successful for the company. MacWorld magazine states,
"From October to December 2007, Apple sold more iPods than in any quarter since the introduction of the mobile music player six years earlier. Record quarterly sales of 22.1 million iPods helped Apple tally $9.6 billion in revenue and a $1.5-billion profit for its fiscal first quarter." (2008)
The magazine also states, "Another sign of the touch's impact comes from the growth in revenue for Apple's iPod and music segment?up 147 percent in the fiscal first quarter from the previous quarter. That number also compares favorably to the same quarter from last year, in which the segment grew just 120 percent in revenue?another indication that the iPod touch has bolstered the iPod's bottom line. Consumers have been very familiar with what Apple has in the iPod line," Bajarin said. "They're waiting for the next level of innovation. There's still a market for the nano and the shuffle, but there could be greater pent-up demand for something like the touch."
ECONOMIC EFFECTS
What does this tell us? It tells us Apple knew exactly what it was doing by expanding distribution of its iPod product. The economy may be ...
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