Apple Distribution Strategy

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Channels of distribution is also part of the marketing controllable of the company. When analyzing Apple Inc. distribution channel of products we have to include the entire chain of businesses or intermediaries through which each product passes until it reaches the end consumer. As of 2015 Apple Inc. has 453 retail stores in 16 countries also they operate online stores which is available in 39 countries. Apple's headquarters for Europe, the Middle East and Africa (EMEA) is located in Cork in south of Ireland. This headquarter deals with Apple's international sales outside USA also with Apple International Distribution, which also deals with Apple's international distribution network. Apple's Asian customers are being served throughout their…show more content…
For each product there is a different advertisement and for that same product Apple will create different ad campaigns depending on the target group that they want to reach. Apple has launched the 'Switch' campaign in 2002 and it still being used. The 'Switch' campaign features real people who switched from the Microsoft Windows platform to the Mac. This promotion was launched international on television and printed ads directed to users to a website where a variety of mythology about the Mac platform was dismissed. From 2006 till 2010 Apple had the 'Get a Mac' campaign, in total there was a series of 24 ''I'm a Mac. I'm a PC' advertisement. This promotion not only launched in the USA but similar commercials also appeared in the United Kingdom and Japan but with famous people of both country. (Wikipedia) The iPod has been promoted together with the iTunes in several silhouette printed and television campaigns. In the beginning the ads were bright colored background with the black silhouette, with the second generation of iPod nano the background is black and the iPod and the silhouette in colored meaning that the new generation of iPod comes in different colors. The silhouette commercials are basically all on the same line and all of them reflect the different generations of the iPod.…show more content…
The different strategies are; Penetration pricing, Skimming pricing, Competition pricing, Product Line pricing, Package pricing, Psychological pricing, Premium pricing, Optional pricing, Cost Based pricing and Cost Plus pricing. Each strategy has their advantages but also disadvantages. For a company to choose the right strategy they have to take into account their corporate objectives. A company might use more than one pricing strategy for its products it all depends on the objectives. According to Steve Job's vision for Apple was to always create a premier product and charge a premium price. (Nielson, 2014). Premium pricing can be define as the following; premiun pricing is to set a high price to reflext the exclusiveness of the product. It is possible for a company to charge e premium price as long as it has competitive advantage in its competing market. So far Apple has succeed in creating demand for its products which gives the company power over prices through product differentiation, innovative advertising, ensured brand loyalty, and a hype around the launced of new products. By focusing on customers willingness to pay more and mantaining a premium price at the cost of unit volume, Apple has also set an artificial entry barrier for its competitors. (Nielson,
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