Global Retail Strategy SBR 2 -Group 3

COHORT NAME
CMM GMBA JAN 2016
GROUP NO.
Group 3

CEO
GROUP
MEMBERS

Manuel Carlos
Anjana Sharma
Geet Kalsi

Question -Why apple needed its own stores?

Answer-:
Apple would be nothing without its apple stores
1. More then 300 stores empower them to attract new customers
(windows users). Theses stores were also great opportunity for various
PC users to have a feel of Macs and iOS products.
2. Main intention of opening the apple stores was to break through the
perception in peoples mind that apple is similar to other PCs available
in the market. Own retail store is the best way describe their value
preposition to the consumers.
3. Apple store was a platform to tell people about their exploratory digital
needs and how they can fulfill theyre needs using the apple products.
4. It provides the great customer experience by promoting the vibrant
ecosystem that wont be possible without apples own stores.
5. The lessons learned from retail stores provide apple opportunity to
develop virtual iTunes and Mac OS application store.
6. Was opening a retail store a big risk for apple?
Apple opens its first store in 2001. It was a big risk that company took
and also shows their willingness to take that big risk at the worst time
when apple had reported consecutive losses. This magnificent retail
experiment allow apple to take a risk that the other competitors could
not. We should ask this question if we think about the apple store.
7. What is the reason behind iPhone success?
Apple sells most of its iPhones from its retail stores. Apple required an
end-to-end supply chain to get the best success for iPhone, starting
from manufacturing to distribution. iPhone could not be successful
without an apple store. In 2007 when iPhone was launched it was a
great event with long queues, which increases their sale very high.
8. Apple supports the third-ecosystem for products; first apple store had
area known as Software Alley to help customers understand the Mac
OS.
9. Apple also starts selling the peripheral for the apple products like
cases and products supporting its products.
10. Apples mission to open retail stores was to create the best retail
experience and supporting ecosystem that not much of anywhere for
any other product.
11. Implementation of Genius Bar was the best decision for apple to
provide their customers more confidence to buy apple products. If they
face any kind of problem in software/ Hardware they can easily pop in
into the apple store and get the instant and quick solutions.
12. With apples non replaceable battery system in iPhones it wouldnt be
that much easy to handle customer complaints without the concept of
Genius in apple store.
If an iPhone or Mac Air customer faces a problem, an Apple Genius can
resolve the problem, locally for free, if under Apple Care. Or replace it.

13. Due to apple retail stores company able to achieve complete control
over the customer experience and implement the best policies to make
customer satisfaction a top priority in their retail shops.
Question - Parameters by which you will judge the success of an apple store?
Answers -:
1. First parameter was doing customer presentations on big screen
educating customers about their products and introducing their
customers with their Genius (an employee title) who resolves
customers problem on instant basis.
2. Each and every detail of the store experience was carefully designed.
For example Store floor plan was designed in a unique & simple, light
color flooring, all similar products together, all products connected with
internet to provide their customers a real feel of how apple works and it
is different from other wintel products.
3. The concept of shop different was implemented in a fashion of
serving the customers not selling the products. A group of 18 people
were selected to provide the various parameters to define shop
different on the basis of their experiences.
4. A small folded document Credo was carried by all the employees with
their ID cards , which keep them reminding about the mission of the
apple to enrich the customers life with innovative and easy to use
technology.
5. Store elements like product area, solutions area, theater, store design
and no clutter pattern was also important parameter for success of
apple stores.
6. Store Employees are also big assets for apple stores. All employees
profiles were carefully designed to fulfill all customer needs and also
enhance the customer experience once they visit the store.
7. Store Location was great USP for all apple stores. Most of the times
apple stores are located in high-traffic malls for example Cambridge
side Galleria, Grand central New York etc. The main advantage of these
locations was more customers can approach apple stores a they dont
need to put much efforts to visit apple store as separate entity.
8. Apple creates great events as opening ceremony for the first 2 stores,
long lines and people shouting Apple Apple. Apart from that Apple
promotes theatre events in their stores.
As a result the store generate $48 million in sales. There were 800,000
visitors out of which 40% were new users.

Question- What is special about store elements? Can you improve?

Answer -:
Store elements was very important factor in all the apple stores
1. The unique design of the stores in all different locations. However the
design was unique everywhere but the placement pattern of products
and the service level are same in all the stores. The companys CEO

2.

3.
4.
5.

says they want to serve customers same experience in each store,

each day.
The interior designing for all the stores were beautifully designed so
that customers should have a never before experience for example-:
welcome desk , 5-feet high black shelve running parallel from the front
to end of the store.
In some big stores like 5th avenue in US. There were glass staircases,
which entice all the customers to go upstairs and see other products.
All computers were connected with Internet to provide real usage
experience to there customers.
Separate Product areas, solution area and genius technique were also
important parameters.

Recommendations for improvements

1. Improving the stores - : The motive of apple stores should be to
educate all the customers. The sales people should provide the best
services but a bit less pressing the customers to conclude the sale.
2. The theater programs could be planned for twice on weekdays
continuously on weekends because on weekends people have more
time compare to weekdays
3. Store Locations should be chosen on the basis of surveys, which can
provide a better picture, in which areas people are keener towards
apple products. Technological and business towers could also be
good place for an apple store.
4. Within the made on Mac campaign... they could develop brand
communities depending on various occupations... and hold events
for each group...to give them a better insight on how to us mac.
5. Advice to Management- Better compensation for the level of
education and qualifications each individual brings to the Apple
experience.
6. Feedback from filled by customers asking their suggestions for
improvement. That will definitely give some insights into customer
requirements.
7. Virtual tours in apple stores giving insights on history of apple.
8. Launching stores in most emerging markets like India that could
improve location element.
9. Presentations with holograms that could run all the time in retail
stores, that could benefit the customers over the weekend during
high traffic.