2015

Sales Plan: Apple Incorporated

Celine Govender 21405295

10/8/2015
Contents
1. Situational Analysis ................................................................................................ 4

1.1 Internal Environment ......................................................................................... 4

1.1.1 Business Strategy ....................................................................................... 4

1.1.2 Market Position ........................................................................................... 5

1.1.3 Product Offerings ........................................................................................ 5

1.1.4 SWOT Analysis ........................................................................................... 7

1.1.5 Prices and conditions .................................................................................. 8

1.1.6 Marketing Concept ...................................................................................... 9

1.1.7 Distribution channels ................................................................................ 10

1.2 External Environment ...................................................................................... 11

1.2.1 Competitors .............................................................................................. 11

1.2.2 Demographics........................................................................................... 12

1.2.3 PEST Analysis .......................................................................................... 13

2. General Sales Goal .............................................................................................. 15

2.1 Quantitative Aspect ......................................................................................... 15

2.2 Qualitative Aspect ........................................................................................... 16

2.2.1 Product differentiation ............................................................................... 16

2.2.2 Brand Awareness ..................................................................................... 16

2.2.3 Apple Brand Name and Image.................................................................. 17

3. Sales Strategy ...................................................................................................... 17

3.1 Account Targeting Strategy............................................................................. 17

3.2 Relationship and Selling Strategy ................................................................... 18

3.3 Distribution Channel Strategy ......................................................................... 19

4. Primary Operational Planning .............................................................................. 19

4.1 Sales sections ................................................................................................. 19

4.2 Goals............................................................................................................... 21

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5. Managing sales force ........................................................................................... 21

5.1 Sales Force Organisation................................................................................ 21

5.2 Recruitment and selection............................................................................... 22

5.3 Training, Motivation and Compensation .......................................................... 23

6. Budget .................................................................................................................. 24

7. Sales Controlling .................................................................................................. 25

7.1 US Sales and Refund Policy ........................................................................... 25

7.2 Standard Return Policy ................................................................................... 25

References ............................................................................................................... 26

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1. Situational Analysis

1.1 Internal Environment

1.1.1 Business Strategy
Apple Inc is committed to bringing the best user experience to its customers
through its innovative hardware, software, peripherals, and services. Apples
business strategy leverages its unique ability to design and develop its own
operating systems, hardware, application software, and services to provide its
customers new products and solutions with superior ease-of-use, seamless
integration, and innovative design.

Apple believes continual investment in research and development and marketing

and advertising is critical to the development and sale of innovative products and
technologies. As part of its strategy, Apple continues to expand its platform for the
discovery and delivery of third-party digital content and applications through the
iTunes Store. As part of the iTunes Store, the App Store and iBook store allow
customers to discover and download applications and books through either a Mac or
Windows-based computer or through iOS devices, namely iPhone, iPad and iPod
touch.

In January 2011, the company opened the Mac App Store to allow customers to
easily discover, download and install applications for their Macs. Apple also supports
a community for the development of third-party software and hardware products and
digital content that complement the Companys offerings.

The strategy that Apple utilises also includes expanding its distribution network to
effectively reach more customers and provide them with a high-quality sales and
post-sales support experience.

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1.1.2 Market Position
In the year 2014, Apple CEO Tim Cook admitted that in its home market of North
America, we did not do as well our business contracted year over year. But to
counterbalance that, the iPhone maker has pushed its international business. In the
companys Q1 2014 earnings, Apple said that international markets accounted for
64% of sales.

Sales in Greater China and Japan, fuelled by Apples iPhone, had grown the most,
respectively up 29% to $8.8 billion versus a year ago. The growth in these two
countries specifically appeared to be bolstered by a growing ecosystem in these
markets.

In the regional sales breakdown that Apple provided in its earning, sales were down
slightly in the Americas and Asia Pacific outside of Greater China and Japan over
last year; the rest of the markets were up.

While Europe collectively is Apples second-largest market share after the Americas,
bringing in $13 billion of revenue in Q1, growth has slowed right down in the region:
it was only up 5% compared to a year ago. The reason for the decline appeared to
be squarely down to competition from Android, and in some cases Windows Phone,
as Apple battles it out against Microsoft for second place.

1.1.3 Product Offerings

1.1.3.1 iPhone
iPhone combines a mobile phone, an iPod and an Internet communications device in
a single handheld product. Based on the Company's Multi-Touch user interface,
iPhone features desktop-class email, Web browsing, searching and maps and is
compatible with both Mac and Windows-based computers

1.1.3.2 iPad
iPad is a multi-purpose mobile device for browsing the Web, reading and sending
email, viewing photos, watching videos, listening to music, playing games, reading e-

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books and more. iPad is based on the Company's Multi-Touch technology and
allows customers to connect with their applications and content in a more interactive
way.

1.1.3.4 Mac
The Company offers a range of personal computing products, including desktop and
portable computers, related devices and peripherals and third-party hardware
products. The Company's desktop computers include iMac, Mac Pro and Mac mini.
The Company's portable computers include MacBook Pro and MacBook Air.

1.1.3.5 iPod
The Company's iPod line of portable digital music and media players includes iPod
touch, iPod nano, iPod shuffle and iPod classic.

1.1.3.6 iTunes
iTunes is an application that supports the purchase, download, organization and
playback of digital audio and video files and is available for both Mac and Windows-
based computers.

1.1.3.7 Mac App Store

The Mac App Store allows customers to discover, download and install Mac
applications.

1.1.3.8 iCloud
iCloud is Apples cloud service, which stores music, photos, applications, contacts,
calendars and documents and wirelessly pushes them to multiple iOS devices, Mac
and Windows-based computers.

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1.1.3.9 Other Application Software
The Company also sells various other application software including Final Cut Pro,
Logic Studio, Logic Pro and its FileMaker Pro database software. The Company
manufactures the Apple LED Cinema Display and Thunderbolt Display and Apple
TV. Apple also sells a range of Apple-branded and third-party Mac-compatible and
iOS-compatible peripheral products and various other computing products and
supplies.

1.1.4 SWOT Analysis

1.1.4.1 Strengths
Apples several businesses are the result of a combined horizontal and vertical
integration. Horizontal integration is comprised of its wide range of products, while
the interconnectivity among such products is the result of the vertical integration.
This has enabled the firm to create strong competitive advantages that competitors
find difficult to challenge.

Apple continues to enjoy strong growth rates and cash flows, as sales remain brisk
particularly on its online stores.

Apple commands high Application Service Providers (ASPs) which continue to

perform well in the market while demand for ASPs of other company providers has
declined.

1.1.4.2 Weaknesses
Apple failed to anticipate certain product categories such as phablets, and therefore
was a later entrant into them. Until recently, Apple had not launched a larger screen
phone, despite having invented the tablet. Samsung outperformed Apple in this
respect, having pioneered in the phablet with Galaxy Note in 2011, and now has a
commanding presence in the phablet market.

Apple positions itself in the premium category and prices itself at a single price point.
Consumers who could not afford the premium price therefore turn to Samsung and
other brands that have a range of differentially priced products for different markets.

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Apple has an overdependence on the iPad and iPhone for its revenues and growth
rates; the revenues from these two products comprise 72.1% of its total revenues for
2013. Eventual decline in the sales of these products will threaten the companys
sustainability and viability.

1.1.4.3 Opportunities
The iPhone and iPad remain popular in the personal gadgets market, and further
growth in their sales could still be explored in the corporate arena. A trend known as
bring-your-own-device has become popular in the workplace, as people have
appropriated these personal devices for their business purposes. Companies have
only begun to exploit mobility strategies to offer better choices to the customers, and
iPads may be tapped for this.

Apple has yet to fully tap the growth prospects in the emerging markets. There is a
rising middle class in India in which Apple may carve out a greater market share. It
should be recalled that India is a member of the Commonwealth with which the UK is
developing increasingly closer ties. The vast market in emerging countries is far from
saturation, and Apple in UK is in a position of take advantage of it.

1.1.4.4 Threats
One of the weaknesses of Apple cited is its premium pricing policy. This policy shall
prove detrimental to any efforts to penetrate an emerging market, because few if any
will be able to afford it. Therefore, in the event of any economic downturns that tend
to erode the buying power of consumers, demand may shift from Apples more
expensive products to lower-priced competitors like Samsung.

The complex environment of electronic communication devices is constantly

innovating and poses a serious challenge to Apples position in the market. Players
are aggressively competitive, principally because of the fluidity of this disruptive
innovation that allows for constant redesigning and modification.

1.1.5 Prices and conditions

Jobs vision for Apple was always to create a premier product and charge a premium
price. Apples cheapest products are usually priced in the mid range, but they ensure
a high-quality user experience with their features. The hardware and user interface

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are designed to provide a lot of value for the price, which keeps profits high.
However, a company can charge a premium price as long as it has a competitive
advantage, and analysts believe the brand is on the way to losing its aspirational
status. With increasing competition from Android and low-cost smartphones, as well
as saturation in the developed markets, analysts feel that the company could risk
becoming a high-end niche name.
Apple Inc started selling its product at the price of $599(8GB), $499(4GB) and later it
reduced the price of the 8GB to $399. Still it also wanted to target the mainstream
users and cant rely on the skimming and versioning strategy. With the introduction
of technology today, the price of Apple goods are being displayed and change by the
company through internet, the days of unchanging prices for all clients are giving
ways to active pricing, where clients are charged different prices depending on
individual customers and situations (Armstrong and Kotler, 2009).

1.1.6 Marketing Concept

Apple is the perfect example of simplicity in marketing. Take their Mac versus PC
ads: 2 men just standing and talking set against a white background. No lengthy list
of product features, no mention of price, no professional voice actors with emotional
voice-overs, or even information on how to buy a Mac. Each ad aims to make one
point and one point only: one way in which Macs are better than PCs.
Apples billboard ads are similar and about as simple as it gets:

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Its worth noting that Apples products adhere to this rule, too. The popularity of
Apples products is largely due to their simplicity and intuitiveness, making them
accessible not only to tech-savvy consumers, but also to children and seniors.

1.1.7 Distribution channels

1.1.7.1 Apples Retail Strategy

While other PC manufacturing brands are competing for shelf space, promotion,
position, etc. at retail stores, Apple invests heavily in their brilliant retail strategy.
Apple currently has over 300 stores in 11 countries, 87 of those stores are outside
the U.S. at this time (Bajarin, 2011). Apple is aware of the importance of interacting
with customers in order to fully understand their needs.
Apple has their own retail stores so they also have direct conversations with their
customers and potential customers. In fact, customers come into the stores to
experience Apples products and give feedbacks or their expectations and what they
do or do not like about products (Bajarin, 2011).
This information is invaluable for Apple to stay ahead the competition of adapting
and evolving consumer needs. As a result, Apples retail stores hosted 71.1 million
visitors in one single quarter this year; this overwhelming statistic was an increase of
51% over the same period last year (Bajarin, 2011). In addition, Apples retail stores
brought in $3.19 billion in the quarter, which is a new Q2 record and a 90% increase
in the same period last year (Bajarin, 2011).

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1.2 External Environment

1.2.1 Competitors

The range of products and services offered by Apple Inc. (AAPL) is broad, and the
company is a fierce competitor in several industries, ranging from personal
computers to entertainment media to mobile payment systems. Here is a list of the
technology giant's main competitors by industry.

1.2.1.1 Personal Computers

While the personal computer running on Microsoft operating systems has remained
a favourite of consumers since the 1980s, Apple has maintained a loyal following of
users who report high satisfaction with the company's Macintosh computers and
Safari operating system. Major competitors in this space include Dell, Hewlett-
Packard (HPQ), Acer and Lenovo (LNVGY).

1.2.1.2 Mobile computers

The iPod revolutionized the Apple business model and spurred an entire industry of
mobile computing imitators. Apple is by far the most profitable and biggest selling
company in this industry. Competitors include Google (GOOG), Samsung, Nokia and
Asus.

1.2.1.3 Smartphones

The smartphone industry was once dominated by Canadian giant Research in

Motion. That changed quickly with the introduction of the Apple iPhone. The iPhone
has literally decimated Research in Motion's business model and caused the
company to restructure several times. Google produces the Android operating
system, which is installed on most non-Apple phones produced by Huawei,
Samsung, Sony (SNE), HTC, Lenovo and others.

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1.2.1.4 Entertainment Media and Applications

The two major players in this space are Apple and Google, with the Apple
iOS running on its iPhones and iPods, and Google Android running on
most competitor phones and tablets. Each operating system interfaces
with iTunes and the Google Play Store respectively, allowing users to purchase
music, books, applications and other media.

1.2.2 Demographics
Many products attract certain personality types. Apple is practically creating its own
demographic one companies like Orbitz are starting to target.

Orbitz found that Apple Mac computer users spend more money than their PC
counterparts on hotels per night, and stay in higher-ranked hotels. So it has begun
showing Mac users costlier hotels in some search results. A variety of researchers
have taken a crack at defining the characteristics and behaviour of the Apple
demographic. The average household income for adult owners of Mac computers is
$98,560, compared with $74,452 for a PC owner, according to technology market
data firm Forrester.

A survey of 24,000 people over the age of 18 in the U.S. from October to December
found Mac owners tend to be younger, too, according to consumer data provider
BIGinsight.com. Over 41% of Mac owners were 34 years old or younger, compared
with 32% for wireless laptop users and 23% for desktop owners, the study found.

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Owners of other Apple devices had similar traits, with higher incomes than users of
BlackBerrys or smartphones running on Googles Android software, according to
BIGinsight.

Theres evidence this higher income level translates into higher spending. Nearly half
of retailers in a recent study by Forrester Research and Shop.org said users of
tablets who by a large majority are iPad owners tend to place bigger online
orders on average than users of laptops or desktops. Shoppers on Apple devices
like iPhones also outspend shoppers using Android or Blackberry devices, according
to IBM, which tracks data from retailers.

Teenagers are considered one of Apple Incs target markets. Teenagers use iPods
for many reasons such as to listen to music, browse social networking sites etc.
There are also many gaming apps that appeal to them. iPods have become quite a
trend with them.

College and university students are also targeted by Apple Inc. These students use
Apple products such as iPads, MacBooks, iPhones etc to quickly record notes etc
that may be used to facilitate their learning experience. These notes are kept
organised in their devices. Also, these products are lightweight which makes carrying
them to and from school much easier.

Business professionals are another target of Apple Inc. Most of them are very
intrigues by Apple products. All Apple devices have a business quality that is very
useful. These devices are used to finish work efficiently and to communicate with
clients easily. In addition, sending and receiving documents is easy and organised.

1.2.3 PEST Analysis

1.2.3.1 Political
It is reported that more than half of sales of Apple products come from countries
other than America.

Apple manufactures a number of its parts and products from outside the US, like
Czech Republic, Ireland, China, Korea and Cork.

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The bad political relations between the US and these or other countries in the world
may have bad outcomes for Apple.

1.2.3.2 Economic

Apple brings in a lot of money into the economy. If a company brings in a lot of
money, all the time, the economy starts becoming dependent and reliant on that
company. If something went wrong, and Apple suffered a lot, the economy would go
down right along with Apple. The economy should not be depending on Apple this
much. Apple may be a big source where the economy gets some extra money from,
but if everyone becomes dependent, it could be a long term loss if they company
starts going bad. Some types of dependence is good too, Apple makes a lot of
money, and the logical step would be to support Apple and rely on it to make the
economy better, because it can help with the number of consumers it has.

1.2.3.3 Social
The world cannot be imagined without gadgets, thus Apple products have marked
their presence on the international market. Due to the fact that the purchasing power
of people has risen in various markets across the world the purchasing of luxury
products have gone up as well.

Possessing modern technological products are considered as status symbols in

many societies which have also increased the sales of Apple Inc products.

1.2.3.4 Technological
Technology is changing continuously. That is why Apple constantly upgrades their
products to ensure they maintain their competitive edge.

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Apple Inc has invested largely in its product research and development field and thus
its products are at the top of the new innovative products ranking.

One of the most innovative and technologically advanced products is the iPod which
marked the demise of the Walkman.

2. General Sales Goal

2.1 Quantitative Aspect

Apple is the world's second-largest information technology company by revenue

after Samsung Electronics, and the world's third-largest mobile phone maker. It is
also the largest, with an estimated market capitalization of $446 billion by January
2014. On February 17, 2015, Apple became the first US corporation to be valued at
over $750 billion. As of December 2014, Apple maintains 447 retail stores including
182 in fourteen countries, as well as the online Apple and iTunes Store, the latter of
which is the world's largest music retailer. As of September 29, 2012, it employs
72,800 permanent full-time employees and 3,300 temporary full-time employees
worldwide.

In its fiscal year ending in September 2011, Apple Inc. reported a total of $108 billion
in annual revenuesa significant increase from its 2010 revenues of $65 billion
and nearly $82 billion in cash reserves. On March 19, 2012, Apple announced plans
for a $2.65-per-share dividend beginning in fourth quarter of 2012, per approval by
their board of directors. On September 2012, Apple reached a record share price of
more than $705 and closed at above 700. With 936,596,000 outstanding shares (as
of June 30, 2012).

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2.2 Qualitative Aspect

2.2.1 Product differentiation

Apples strength is in its differentiated products. Apples computer operating system
is highly secured and is not subject to viruses and hackers which tend to affect the
Windows software of Microsoft (Kan, 2012). Furthermore, Apples products are
designed to address the concerns about consumers lifestyles which make the
graphic system and design of Apples products superior to their rivals products in the
same market segment (Nudd, 2011). While Apple Inc.s software is different from
other competitors, its products hardware is also in the upper class. All Apples
products are made of high quality material, such as aluminium, combined with
comfortable designs. All of these features in their vast array of products make
customers feel that they have a valuable product when they have an Apple, Inc.
product.

2.2.2 Brand Awareness

Have you ever heard the term Apple fanboy? It is essentially a consumer of Apple
products, from computers and software to iPods and iPhones, which sincerely
believes that Apple products are the very best on the market. These people are the
ones that wait in line for days in order to purchase the next generation iPhone. Most
of these fan boys are so loyal to Apple that they will not consider buying anything
else.
Its all because of the iPod. There were many other MP3 players that came out onto
the market when the iPod was first released, but no matter what the brand was, or
how well the product worked, it always seemed inferior to the iPod.
Some other MP3 players allowed transferring music to and from computers for
easier file sharing, Apples iPod blocked this ability and it was nearly impossible for
the average user to transfer music from their iPod to their computer for backup.
Many other MP3 players were technically just as good as iPod or better, and were a
much cheaper option, but they never gained any meaningful market share. Apple
completely dominated.
The Apple iPod had such good brand awareness that it truly seemed different than
everything else. It was accepted by the market in such a way that no other

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competitor had a chance. The iPod became the one and only MP3 player that
buyers really valued, and Apple acquired a tremendous sense of brand loyalty.

2.2.3 Apple Brand Name and Image

Apple is very successful with their marketing techniques. According to Technology
news, it is believed that Apples strongest competitive advantage is its marketing
strategy: The Company simply seems to understand what will get people excited
about its products, and then it executes on that vision (Enderle, 2004). Instead of
talking about product features or technology, Apple is showing that they care about
their consumers lifestyles.

They advertise their products to offer the better life to customers and make the trend
of aesthetics and lifestyle appeal important. All of Apples products were launched
with these attributes and outstanding functionality. Apple is a unique electronic
manufacturer because they have an approach of product launches that is more
similar to fast moving consumer goods companies with new products every six
months or at least once a year. When a new product is launched, that product is
supported by an advertising campaign, and the end result is to generate a large
amount of sales. This approach makes people excited about Apples products and
keeps Apple as a leader in the technology industry.

3. Sales Strategy

3.1 Account Targeting Strategy

Apple uses segmentation and targeting in order to accurately target their desired
markets. In segmenting, Apple looks at the demographics of their desired markets,
i.e. age, gender, income, social status etc. They then use geographic location to
further narrow down their choices. Psychographic segmentation is also done to
segment the market on the basis of lifestyle, social class, values and ethics.
Apple targets markets by using the approach whereby one supplier targets many
segments. Apple mainly targets people, as it focuses on users and lets them decide
how and where theyll use the products.
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3.2 Relationship and Selling Strategy

Building long-term relationship through value customer experiences

The reason that Apple retains long-term relationship with their customers is by
customers experience. Steve Jobs once said how does somebody know what they
want if they havent seen it. The book The Apple Experience: Secrets to Building
Insanely Great Customer Loyalty written by Carmine Gallo (2012) mention the
reason of Apples customer loyalty is come from enrich live vision when customers
being at Apple store. Apple doesnt want to make customer to buy the product,
unless they understand and love that product. This is the reason why Apple store is
built as a place that customer can come and experience the products.

The Apple store employees primary goal is to make sure every customer has a
magical and memorable experience, whether or not they make a purchase Carmine
Gallo (2012). Apple employees need to advise customers how the apple product can
bring more benefit and enrich their live. Not only enrich customer live through dont
sell stuff concept, Apple also empowering customers. During the time at Apple
store, the customers will be encouraged to touch and experience products by
themselves. The objective is to unleash their inner genius, because Steve Jobs
believes that every Apple consumer has creative spirit, and Apple responsibility is to
provide tools for them to change out the world.

Apple store is fun Apple creates a place that customers feel so welcome and
comfortable that they can freely to express themselves. People come to the store not
only for the product, but also for what they love, Michael a famous dancer at Apple
store, said. Michael thinks that Apple store is a cool place that he can come to enjoy
products and dance while customers in store look at him. The most interesting thing
is that Apple employees dont stop him and sometime they also join to the show. Up
to now, there are about 255,000 videos dancing at Apple Store uploaded to
YouTube.

About the store, last but not least, Apple has owned retail stores. Apple had been
very careful about how people buy their products and experience Apple product.

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Since Apple owns their own retail experiences they get a chance to create direct
conversations with their potential. This helps Apple to find out exactly current needs
of their customers, more important, forecast future need and how their products can
help them to solve current and future problems.

3.3 Distribution Channel Strategy

Apple uses a host of various distribution channels to distribute their products. They
make use of online websites, their own retail stores, large electronics stores and the
use of media and promotion that attracts buyers to their products.

From its direct and channel pricing to its retail and online storefronts, Apple sells its
products like no other company in the consumer electronics space. What makes
Apples sales and channel strategy unique?

Apple never discounts through its direct channel. It does discount refurbished
products and, there are price changes, but theres no sale pricing
Apples retail and online storefronts are unique. Theyre more about education
and support than selling. Theyre simple, even austere, with minimal signage
and crystal clear messaging.
Apple products are positioned as unique categories, as opposed to side-by-
side next to competitors, either on storefront shelves or online.

4. Primary Operational Planning

4.1 Sales sections

Expanding Apples Market Geography

Apples strategy in 2012 is to expand their market share in China, India, and
developing countries (Meyer, 2012). In the past, Apple estimated more than a million

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iPhones had been sold in the grey market, in which consumers bought iPhones
from authorized resellers and used them on unsanctioned mobile networks in Asian
countries (Yoffie, 2012).One estimate suggested that Apple could lose $1 billion over
three years from the loss of service share revenue in the grey market (Yoffie,
2012).On the other side of the world, Asian and new developing markets are just
beginning to boom and the potential is truly staggering: hundreds of millions of
possible new consumers.

The rise of a middle class in Asian countries, including India and China, will be an
opportunity to expand the market share for Apple, Inc (Yoffie, 2012). Chinese
consumers were willing to buy iPhones for higher prices in the States after the new
version first came out even it did approach $1,000(verses $699.99 without AT&T
contract) (Yoffie, 2012).

The growth of 3G and 4G technology in Asia also leads to the growth in consumers
purchases of smartphones and tablets. With this opportunity of increasing sales in
the Asian market, Apples strategy will focus on market access in the developing
world more than ground- breaking innovation. However, Apple will be facing
challenges, in regards to competition, which include culture and language barriers.
Siri, on the iPhone 4, allows users to use their voice to send messages, schedule
meetings, and place phone calls, but it does not work well in other languages or with
non- American accents (Lowensohn, 2012).

The retail locations are a key arm of Apples strategy of expansion through the
locations around the world. Apple has forty store openings planned for 2012 and is
spending $900 million on new stores in Germany, Spain, France, Australia, Canada
and China (Kahn, 2012). If Apple can keep up its innovative product pipeline, it
should prove easy to obtain sales growth internationally.

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4.2 Goals

Increase growth of customers and sales sections by engaging in more

intensive advertising in areas where sales of Apple products are low
Convey value of Apple products to boost sales
Set the standard for Apple buying experience and provide inspiration and
support to resellers

5. Managing sales force

5.1 Sales Force Organisation

Apples ruthless corporate culture is one that any organisation in the world would love
to understand. The culture of Apple was based on an ideal that self-motivated
individuals will work harder if they do not have a boss micromanaging every action.

The organisational structure of Apple was almost non-existent and focused on

placing decision making in the hands of the people on the field.

To Apples legion of admirers, the company is like a tech version of heaven factory, a
confusing but delightful place that produces items they cant get enough of.

But Apple Inc is also a brutal and unforgiving place, where accountability is strictly
enforced, decisions are swift, and communication is articulated clearly from the top.

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At Apple, there is never any confusion as to who is responsible for what. Any
effective meeting at Apple will have an action list.

Steve Jobs taught employees to accept a culture of responsibility by hosting a series

of weekly meetings that were the devices that set the beat for the entire company.

Specialisation is also a norm at Apple and as a result Apple employees arent

exposed to functions outside their area of expertise.

5.2 Recruitment and selection

Those who wish to work at Apple must have some or all of these attributes in order
to be successful in their application process:

1. Vision-minded: everyone joining the company must have a clear management

vision and fully agree to live and direct all their efforts towards it and those who
do not understand this will be immediately rejected.
2. Innovation-minded: candidate must be able to create something from nothing
3. Future-minded: employees at Apple are driven by their leaders vision of the
future and they contribute everyday to creating the future more than just beating
competition.
4. Passion-minded: Steve Jobs first principle is: Do what you love. People are
hired because they love the product, the company and its vision.
5. Contribution-minded: a statement given by an Apple recruiter is clear enough:
We didnt want someone who desired to retire with a gold watch. We wanted
entrepreneurs, demonstrated winners, high-energy contributors who defined
previous role in terms of what they contributed and not what their titles were.
6. Engagement-minded: Apple management is strict on employees level of
commitment. Committed individuals who are inspired by a grand purpose, make
the whole difference in the most competitive conditions.
7. Excellence-minded: Steve Jobs was known for his passion of perfection. The
company always tries things out until they are perfectly done. The same attitude
is expected of every collaborator. Applicants who do not share that passion for
excellence do not have a chance.

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5.3 Training, Motivation and Compensation

The staff at Apple retail stores are all screened and trained with a great deal of
scrutiny before they make it out onto the sales floor to interact with customers.
Apple Inc uses the A.P.P.L.E approach when training their employees:
A: approach customers with a personalised, warm welcome
P: probe politely to understand all the customers needs
P: present a solution for the customer to take home today
L: listen for and resolve any issues or concerns
E: end with a fond farewell and an invitation to return
Apple uses the 3 Fs of Empathy when instructing their employees on how to deal
with difficult customers Feel, Felt, Found.
Sympathy is the ability to feel sorry for someone but demands that the staff put
themselves in the shoes of the customer and be empathetic toward them.

Another one of the core tenants of Apples retail stores is the idea of enriching and
creating value for customers, not just selling them stuff.

There are many methods Apple employs to motivate its employees. According to
Maslows theory, low-order needs should be taken as a priority. In Apples position,
they have fulfilled their employee needs of physiological by setting an average
salary of $108,483 which can basically ensure survival. Then, Apple also provides a
wide range of application to protect the safety need of workers such as the
department of health and safety standard, training more employees to identify

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hazards or providing safety equipment. Besides the satisfaction of low-order needs,
Apple is more focused on satisfying the higher-order needs. As an example of
assuring Esteem need, Apple rewarded its executives by giving them a recognition
bonus of salary from 3 to 5 percent. This indicates the approval of Apple to its
employees who has effectively finished their work. Another example for esteem
need is that Apple employees receive a free iPhone, it is not only a benefit to the
worker but also an effective motivator because it would increase employee
responsibilities when they see the end result of their effort. In reality, Apple has
successfully motivated its workers by creating more opportunities for them to
participate in education and development programmes.

Some of the perks and benefits of working at Apple include but are not limited to:
Health insurance, dental insurance, spending account, life insurance, retirement
plan, employee stock purchase plan, maternity and paternity leave, family medical
leave, paid vacation time off, employee discounts, gym membership, job training etc.

6. Budget

This budget shows Apples advertising

expenses for the years 2007-2012. From
this we can see that theres an increasing
cost of advertising therefore we can
conclude that for 2013-2015 the budget
will increase by another $200 000-
$1000000.

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7. Sales Controlling

7.1 US Sales and Refund Policy

Apple tries to ensure that all customers have the best experience with their products
whether theyre at the Apple Online store, in an Apple Retail store or on the phone
with the Apple Contact Center.

There are terms and conditions that apply to transactions at an Apple store and the
main thing is to agree to the terms set forth in Apples Privacy Policy and Terms of
Use before placing an order or making a purchase at an Apple store.

7.2 Standard Return Policy

Apple fundamentally believes that all customers will be thrilled with the products that
they purchase from the Apple store. They do however understand that the product
might not be what customers had expected it to be. In that unlikely event, they invite
the customer to review terms related to returning a product in their leaflet and on the
online store and customers may also ask Apple employees at any of their retail
stores.

Apple also has a Return of AppleCare+ under an iPhone Upgrade Program, iPhone
and iPad Returns-Wireless Service Cancellation, Pricing and Price Reductions,
Order Confirmation, Shipping and Delivery and a host of other after sales services
that can be used by customers to ensure they get the most out of their experience
with Apple products.

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References
Apple iphone devoured half of all US phone sales for the past three months (online).
2015. Available: http://moneymorning.com/2015/01/27/apple-iphone-devoured-half-
of-all-u-s-sales-for-the-past-three-months/ (Accessed 25 September 2015).

How apple sets its prices (online). 2015. Available:

http://gizmodo.com/5976019/how-apple-sets-its-prices (Accessed 02 October 2015).

Pestel five forces and swot analysis of apple (online). 2015. Available:
http://www.ukessays.com/essays/marketing/pestel-five-forces-and-swot-analysis-of-
apple-marketing-essay.php (Accessed 01 October 2015).

The core marketing strategy of apple (online). 2012. Available:

https://tiffanyabrown.wordpress.com/2012/03/04/the-core-marketing-strategy-of-
apple/ (Accessed 30 September 2015).

Who are apples main competitors (online). 2015. Available:

http://www.investopedia.com/ask/answers/120314/who-are-apples-appl-main-
competitors.asp (Accessed 30 September 2015).

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