Apple

Apple
NAME Roll number UID
Akash Patil MBA23J03 2023-2405-0001-0054
Aviral Sukala MBA23J07 2023-2505-0001-0033
Devshree Bade MBA23M09 2023-0409-0001-0005
Khushi Sharma MBA23J15 2023-2106-0001-0006
Raj bhardwaj MBA23j26 2023-1707-0001-0003
Ritik Chadha MBA23J28 2023-1707-0001-0004
Subject: Marketing Management
Class: MBA MKT-2
Channel Levels: ( intermediaries used by the company for
distributing the product)
 In 2021, 64% of Apple's sales came by indirect channels vs. 36% from its direct channels in 2021. In
2022, most of Apple's sales (62%) came from indirect channels

Channel Level Description:

Direct=> Apple's physical retail stores, Apple Online Store, iPhone
Upgrade Program

Indirect => Third-party cellular carriers, major retailers, independent

retailers, and resellers

 Other Intermediaries include carriers, logistics partners, and third-party fulfilment centers.
Marketing practices followed by company:

Direct Marketing: Apple interacts directly with consumers through

its:Apple Stores: Offering a premium experience for trying products
and getting personalized service.

Apple Online Store: Providing a convenient platform for purchasing

directly from Apple.

iPhone Upgrade Program: Allowing users to easily cycle through

new iPhones.

E-commerce: Apple's online store is a prime example, allowing

global reach for direct sales-> they don't franchise, Apple's retail
stores are a core part of their marketing strategy, creating a unique
brand experience.
 Warehouse locations
 One is well known is US Apple warehouse, located in Elk Grove, California,
and some other distribution centers located around the world, including
China, the Czech Republic, Japan, Singapore and the U.K.
 Apple’s Taiwanese manufacturer Wistron has set up a new warehouse in
Hoskote.
 Aptronix, India's local Apple expert, is Apple's youngest and fastest
growing partner.
INVENTORY TURNOVER RATIO

Inventory turnover ratio ( ITR ) is a measure of a company’s ability to manage its inventory
efficiently.

INVENTORY TURNOVER RATIO

INVENTORY TURNOVER RATIO =COGS /Average Inventory

COGS (quarter ending dec 30,2023 ) 212,035 $ Millions

Inventories at Quarter ending Dec 6,919 $ Millions
30 , 2023
Inventory turnover ratio 30.65
 MARGINS OFFERED TO INTERMEDIARIES

Margins offered to intermediaries are between 5% and 15% of the total purchase price.

10% margins to its premium resellers and 6-8% to other distributors while the small, authorised retailers
get around 4-6%.

Additionally, Apple may offer additional incentives such as promotional discounts, market development funds,
and other forms of support to help increase sales and profitability.
 Transportation Cost Per Unit

The cost of transportation for Apple products varies depending on the type of product and
the shipping method chosen.

As there are different modes of transportation available –

1. Road
2. Railway
3. Air
4. Sea
5. Pipeline

• As the pipeline is not used in the case of Apple products.

• For Air transportation there are Import duties which can increase the transportation cost.
• Today’s companies like Foxconn and Pegatron based in Tamil Nadu, along with Wistron
( now owned by Tata Electronics) in Karnataka produce various iPhone models for Apple
in India, hence the transportation cost decreases.

Therefore, it is important to consider the type of product and the shipping method chosen
when calculating the cost of transportation for Apple products as it varies.