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DTMt: Case submission on Apple stores
[Document subtitle]
July 6, 2015
14F39 prachi desai, 14f40 PRAMUKH DESai, 14f544 shrey jindal, 14f545 shreya thakur July 6, 2015
14F39 prachi desai, 14f40 PRAMUKH DESai, 14f544 shrey jindal, 14f545 shreya thakur

a. (Why) Did Apple need own stores back then in 2002-2003?
The consumers were purchasing computers for different purposes and the market was growing for PCs in the early 2000s. The market share of Apple was only 5%, whereas the the share of the leaders were as below: i. Dell : 14% ii. Compaq: 12% iii. Gateway: 8% iv. IBM: 7% v. HP: 7%
One of the main reasons for opening up exclusive Apple Stores was to increase their market share by offering other digital products like iPods, iPhots along with iMacs and creating a unique experience for the customers.

Stores have the advantage of engaging customers and increasing involvement, which is not possible through online retail. Upselling and cross selling of products is also enabled.

Enhanced customer service was possible through the stores and people flock stores for the experience and are ready to pay premium for the same.

Apple tried to offer something unique through a “shop different” strategy, wherein they build “Genius Bars” within the stores. A customer could approach an employee at the bar and be assured of a new experience to make their devices to more use.

b. What parameters should be used to measure the performance of Apple Stores? i. The footfalls at the stores ii. The increase in footfalls per month iii. The no. of sales per employee at the store iv. The engagement of the customer at the theatre and the genius bar before and after a sale. v. Buyer decision before and after visiting the store vi. Time lag between visit at a store,