Thereis a growing trend of competition between businesses dealing with thesame products in every industry. The threat has instigated theindividual ventures to us the most efficient and fruitful ways ofpresenting their products and ensuring that their customer receivethe goods at their convenience. The technology industry is a majorsector that helps in keeping the world updated with new gadgets thatare efficient and time saving because of their high speed. One suchproduct is the laptop. There are many companies that manufacturelaptops. One of the leading corporations is Apple. This document isgoing to look at how the company distributes the product through thevarious channels as well as how they promote the product throughdifferent media.
AppleInc. is a multinational company operating from the United States ofAmerica. It is famous for the design of high-end consumerelectronics, computer software, and personal computers. Thewell-known products for the company include the iPod, the iPhone, andthe iPad. The Apple laptop is also one of the most prestigious in themarket. With over 35,000 employees worldwide, the company has anaverage annual sale of 42 billion dollars (USSEC, 2013). Itassociates this with it the philosophy of distinctive design andadvertising. The company has, therefore, a well-established consumerreputation in the industry (Shetty, 2011).
Appleis a multinational company, and this translates into as distributedmarket segment in the different countries. The company has evolved tooccupy more than 301 countries worldwide. Marketing manager put intoconsideration the production locations and the extent of the segmentbefore settling down to the most appropriate methods of distribution.The company employees several channels to ensure that the Applelaptop reaches the desired consumers. First, the company hasestablished production plants in the different parts of the world tocater to the needs of the consumers in the regions. The mother plantstands in California, and it eases the movement of the laptops andother goods from the production house to the consumers around thecountry. The plant in Europe serves the needs of the people in theregion while the venture in Singapore serves the customers in theAsian region (Madura, 2006).
Thecompany has four main channels of distribution. First, consumers candirectly order the laptop from the manufacturer through the company’swebsite. Apple intensifies and takes the advantage of the increasednumber of people visiting the social sites and through direct ordersconsumers receive their product without using a middleman. Secondly,the company employs the use of retailers who get the laptops directlyfrom the production firm and store them in their shops as they sellto the final consumer. Initially, the company wanted to control thedistribution o the laptops among other things by selling themdirectly to consumers. However, after a careful analysis of themarket segment, they realized that they may not serve the need of allthe groups. They engaged retailers like AT&T, Wal-Mart and BestBuy (Shetty, 2011).
Theretailers occur as either freestanding or in frequently-visitedmalls. The company runs its Apple retail stores and also ties up withmajor retailers to sell their products alongside those of othercompanies. Thirdly, there is a direct sales force that identifies theretailers in need of stock and gets the laptops from the company anddeliver them to the retailers. The third party reduces the need forconsumers to order directly from the company. Lastly, Apple also usesthird party wholesalers who stock their products either unique storesor mixed electronic ventures. Retailers buy the laptops eitheralongside others or as Apple brand only and sell them to the finalconsumer.
Theuse of varied approaches helps the company to make high laptop salessince they capture the needs of all the consumers. A consumer may usethe most convenient channel depending on the location or preference. The laptop distribution strategy involves two main activities. Thatis storage and transportation. The manufacturing plants store thefinished products awaiting orders from either r the consumer,retailers or the wholesalers. Once they submit their orders, thecompany ferries the laptops to the various stores.
Mostconsumers refer to the Apple laptop as a product of ostentation good.For this reason, the company does not grant any retailer theprivilege of stocking the product without proper verification oncredibility. Selective markets exposure is the main method used bythe company to identify the most appropriate people to stock thelaptops in the different regions (Moorman, 2012). The other reason asto why the company inclines to the method is due to the servicesrequired by the consumers. They need information regarding the use ofthe laptops and the availability of consultancy services. Not allretailers meet these qualifications and it a major main method ofthinning the number of prospective retailers.
Consumershail the company as a giant in product promotion. The promotion ofthe Apple laptop involves an array of methods that woo consumers intobuying it. One of the target groups is the college students returningin school target vacation. The company allows them to have hands onexperience with the laptops. They can surf the web to test the speedof the computers and buy them if they find them appropriate. Allowing the students to surf the web is a capturing end since it iscommon with this type of market segment (Scott, 2012).
Itis one of the major reasons as to why they may purchase a laptop. Itis a customized display of the strengths of the product thatcapitalizes on the consumer behavior. Secondly, the laptop has aclass in the various niches so that the company does not offer anydiscounts and purchases. The consumers, therefore, refer to it ascoveted product for those who can afford (Stern, 2015). The objectiveof opting not to use discounts or price reductions in the product isto ensure continuity of the company’s philosophy. That is,remaining different from the other companies, the laptop, therefore,retains a class that is different from other brands belonging toother competitors. Consumers who can with a significant amount ofmoney will opt to have an Apple laptop for its definite class.
Thecompany also wins the hearts of many consumers through their simpleadvertising messages. Consumers feel obliged to buy a product withsimple and elaborate messages rather than the ones presented in acomplex explanation manner. For example one of the company’smessages from this product is, “ThinkDifferent.”
Themessage appears simple, but it has a lot of impact on the consumerbuying behavior since they would want to shun the conventionaltechnologies and adopt the new ones. The company is an avid spenderin advertising. Last year, the company spent 561 million dollars inmedia and digital advertising. The laptop adverts occur in attentioncapturing and flash images that depict a different class ofelectronics. An example of an advertising channel is the PC magazinethat has wide coverage in the US (Stamm, 2011).Consumers willing tobuy laptops will consult such magazines before settling down to themost favorable product. The web advertising took a significantportion of this money since the company is taking advantage of theincreased hit on its website. It is a major instigating factortowards the orders made online (Scott, 2012). The objective of usingthe different media like websites and media outlets is to ensure thatthe brand extends to all the people. When the message is all over theplace, then people can become obsessed with the name until it becamea household name. It explains why the Apple brand is the most popularin the United States of America.
However,the place and promotional strategies of the company ate notsufficient to take care of the needs of all the consumers. Thecompany does not exploit its potential market share, and this may beattributable to various factors. First, it was not until recentlythat the company agreed to dues retailers and wholesalers to sell herlaptop and other products alongside similar products of othercompanies. The move was late since the other competitors likeMicrosoft and Dell had implemented the idea long ago. The rate atwhich the company is assimilating the idea is slow compared with therate f competition (Maha, 2012).
Secondly,the company does not have a comprehensive process for the onlinebuyers. Once a customer makes an online order, he/she will have toarrange for the shipment and payment of taxes and duties, and thisincreases the bureaucracy. With time, people may consider using othercompanies with comprehensive processes (Tesseras, 2015).
Whenit comes to advertising, the company has just bowed own to the use ofprint media. Previously, they used the digital media like moviescaptions. Currently, the number of print media that runs theadvertising of the laptop is only a handful. The failure to includethe adverts is an array of print media curtails the needs of asegment of people who may be looking for information from suchplaces.
Thecompany can apply the several measure to counter the shortcoming dobserved in the two aspects of the market mix. First, they shouldtake advantage of the growing number of retailer and wholesalers andgive them the rights to stock the product. Since it may not bepossible to establish a standalone shop in every part of the country,the retailers will extend the services to the final consumer. Themove will popularize the product more although, in the process, theymight only accept those retailers with the right qualification tomaintain the class of the product (Maha, 2012).
Secondly,the company should organize for shipping for the products boughtonline. Most of the times ten consumer who wishes to have theirproducts coming directly from the producer will reserve some funds tosuffice the process. Reducing the bureaucracies that the consumershave to foot will win their loyalty and possibly give referrals.
Thecompany also needs a comprehensive approach to advertising. The useof only a selected set of media locks out many people who may notaccess the preferred methods. Magazines and newspapers, as well asbillboards, will be sufficient alongside the commonly set methodslike YouTube and movie captions.
Inconclusion, Apple laptop remains the most popular company in theUnited States of America. However, the world is changing due toglobalization, and the company should think of conquering the worldthrough the Apple laptop. It should venture into new, markets withthe same zeal it uses in the United States of America. The move willassist it in cushioning the Apple laptop against composition from theclose substitutes.
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