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- Stores. Content. Leverage Distribution Channels Vision Key Persons Project Schedule Apple Store Features Evolution and Major Achievements Project Leadership Issues Conclusion. Leverage Distribution Channels. Condition: Apple's declining share of the computer market
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- Stores Apple Stores - Achim Schroeder
Content • Leverage Distribution Channels • Vision • Key Persons • Project Schedule • Apple Store Features • Evolution and Major Achievements • Project Leadership Issues • Conclusion Apple Stores - Achim Schroeder
Leverage Distribution Channels • Condition: • Apple's declining share of the computer market • Poor marketing of Apple's Macintosh products at other retails stores • More control over retail selling experience for its products • Create a distribution channel • High-service storefronts • platform to promote uniqueness of Apple products Apple Stores - Achim Schroeder
Vision • 1 entrance • Intuitive layout • Central location • Big stores • Few products • Store defining brand Apple Stores - Achim Schroeder
Key Persons • Steve Jobs • Ron Johnson • Former VP of merchandising at Target Corporation • Millard Drexler • Former CEO of Gap Inc. • Director at Apple Inc. since 1999 • Larry Ellison • Co-founder and CEO of Oracle Corporation Apple Stores - Achim Schroeder
Project Schedule • Late 1999: Project Initiation • Jobs secretly interviewing executives to develop string of Apple Retail Stores • Jan. 2000: Planning, followed by idea presentation to board of executives • Feb.-Oct. 2000: Prototyping • Oct. 2000: Major change • Jan. 2001: Prototype presentation • May 19, 2001: Opening of 1st Apple Store Apple Stores - Achim Schroeder
Apple Store Features • Store building costs ranging from $450,000 up to $40 million • Glass fascades and staircases • White counters • Wood(originally), Pietra Siena Sandstone floors • Focus on simplicity and lack of distraction • Displays, usable products and space to interact Apple Stores - Achim Schroeder
Evolution and Major Achievements • Wood to Sandstone • Genius Bars • Reducing number of glass panes • 326 Apple stores • Averaging 5400 visitors per week (2004) • Average annual revenue per store $34 million • 15% of Apple‘s revenue • Boosting brand awareness and company‘s overall success Apple Stores - Achim Schroeder
Project Leadership Issues • Jobs doing this project without or low support from the board of directors • Jobs surprisingly cooperative with Johnson and open for ideas from Drexler Apple Stores - Achim Schroeder
Conclusion • Pros • Creating an appropriate distribution channel for Apple products • Stores increasing brand awareness • Retail , not just selling, but marketing and excellent customer service • Cons • Expensive store rents and building costs • So far only few stores Apple Stores - Achim Schroeder
Thank you for your attention and endurance ! Apple Stores - Achim Schroeder