Introduction
This paper will discuss the sales plan for Apple iPhone 5s. We will go through topics like the Sales geography, staffing requirements, territory breakdown, sales outlets, distribution method and sales strategies in the first sections of the paper. In the second section, we will go through the reasons behind choosing the selected market, management of sales force challenges, marketing plan, sales force training and success metrics.
Sales Geography
As per Apple’s regulatory files, Apple’s business is managed on basis of Geography. The geographic segments to be targeted for launch of Apple iPhone 5s will be Americas, Japan, Europe, Asia-Pacific and Apple retail. Apple’s revenue for fiscal year ending September 2012 was $170 billion, 57% growth in revenue from the previous fiscal year (“postsateventide, 2012”). The strong growth rate was fueled by expansion and popularity of Apple products in domestic and international market.
Sales Staffing and Territory Breakdown
With Apple having more than $100 billion in their account last thing they need to do is cost cutting to save pennies. Apple should focus on serving the consumer surge generated from launch of Apple iPhone 5s (“imore.com”). When any customer visits the Apple retail store for any product, they are handled by Mac Geniuses who answer all questions of customers and show the benefits of product of customer choice. For this purpose, several employees are to be hired in retail stores who after rigorous training are asked to guide the incoming customer traffic in retail stores. The staffing job is incomplete unless employees for customer service are not hired which are responsible for dealing with calls from customer over the support line. Additionally, tech newbies can purchase one on one time for training with Mac Genius to help them understand their product and its specifications to the maximum (“haleymarketing, 2011”).
Sales Outlets and Distribution Method
Independent Stores
Since Steve Jobs decided to move on from traditional Big box retailer model where Apple products were sold by retailers who had insufficient knowledge to Independent Apple stores company has thrived as a brand in the market. Apple Independent stores are designed for meeting customers’ needs rather than sell their products. Thus, for distribution method of Apple iPhone 5s the best way is to distribute products through the Apple stores (“saleschase, 2012”).
Destination stores
These stores are launched by Apple which has outstanding architecture and is located in
cities like London, New York, Paris, Shanghai, etc. Sales staff in these stores is not for product sales but they are tasked with responding to customers’ problems and queries. Apple iPhone 5s will be placed in these stores where customers will interact with Mac Geniuses at the “The Genius Bar” for one-on-one training to maximize the use of their Apple iPhone 5s bought by customers or by customers planning to purchase (“saleschase, 2012”).
In markets where Apple stores are non-existent the best way for sales of Apple iPhone 5s is still through the Big box retailers or small scale retailers who sell phones of other retailers apart from Apple.
Sales Strategy
‘Try before you Buy’ Strategy
In developing countries like India this strategy will work wonders for the sale of Apple iPhone 5s. The prospective buyers can try the new model of Apple iPhone 5s before they purchase it, this method despite being catchy cannot be tested all stores. Thus, selected stores should be chosen for demo products which can be loaned out to potential buyers (“bgr.in”).
“Sell through Retail Stores”
Apple has recently decided that they need to raise their percentage of iPhone sales to the retail stores which are selling at present 20% of the total iPhones in market. For this purpose, series of incentives have to be given to entice them to stores like $50 gift card with “Back to School” deal for students purchasing their iPhones at the Apple Store (“tuaw, 2013”).
‘Our Customer Rules’
Apple has made its name in their excellent customer service program where they have shown for years their immense respect for the needs and desire of their customer. This winning combination has highlighted Apple as bigger brand than its competitors who are willing to compromise o aspects like functionality, hardware and apps. Apple iPhone 5s will have many Apple fans waiting in line for its delivery as many customers are willing to upgrade their phones as soon as a new version of iPhone hits the shelves (“Forbes, 2013”).
Product Description and Reasons it will Sell
While Apple’s iPhone 5s might look similar to iPhone 5, it is a revelation and major evolution in iPhones. It comprises of new camera iOS 7 and high-tech finger print sensor. Apple iPhone 5s is the first smart phone in which the software and hardware feel very cohesive, effortless and fun (“ibtimes, 2013”).
The reason why this market is supposed to be great for sale of Apple iPhone 5s is a testament to the past Apple products launched in the market. With sales in many countries like United States, UK, France, Germany and other developed countries expected to start at midnight of the launch date and the date for shipping expected to be for weeks to months. The simple reasons which can be understood for the Apple iPhone 5s being a perfect match for the market is ‘Demand’, ‘Brand Name’ and ‘Trust’ (“tech2”).
Management of Sales force Challenges
For management of Apple’s sales force and overcoming the challenges faced by them it is important to motivate the sales team. This can be done by encouraging the sales team by involving them in serious decisions as valued employees are motivated employees ex: pat employees on the back when they perform a task efficiently. Build a well-balanced information network both outside and inside the company for the purpose of collaboration with sales team. Employees should be commission on top the base salary and maintaining an open door policy for sales force query. Creating a learning environment for sales reps with new opportunities for learning, performing, growing and developing skill set. Finally, provide non-financial rewards such as trophies, pins, certificates, encouragement and praise from the top management with promotions and job enrichment. With application of these measures and proper training of Apple employees, customers visiting Apple stores for purchasing Apple iPhone 5s will be faced by sales force well equipped to deal with all queries and required information.
Marketing of Apple iPhone 5s
Apple has their tried and tested method for developing hype for their products even before launching. This is done with measures like ‘Secrecy’ we can ensure that n information is passed officially from Apple until the “Announcement”, before that everything is categorized as rumors. ‘Leaks’ small hints and leaks are released before the launch like bigger screen, better earphone, etc. ‘The Big Reveal’ short notice announcement assures that attention is garnered for the launch. ‘Pre-order Period’ many customers can be lured with this trick as many tech geeks are willing to buy the product before it is launched to ensure they get it first. ‘Limited Availability’ this technique will work well on customers who consider buying every new Apple phone a necessity. ‘Social Buzz’ Apple products are launched with intense buzz in the social media with many social media sites, blogs, forums going berserk in the anticipation of the new phone or any other Apple product. By using a mix of all these techniques used by Apple in past for launch of their products, it can be assured the marketing plan for Apple iPhone 5s is a huge success (“webmarcom”).
Training the Sales Force
Once an employee is hired it is crucial to train him extensively to reach the standards Apple. Every recruit is drilled in classes on customer service principles of Apple. On the sales floor, new hires are asked to shadow their veteran colleagues; they can interact with customers once they are considered ready for the job.
Apple are known to train their sales force on the basis of (A)pproach, (P)robe, (P)resent, (L)isten, (E)nd. This can be summed up by “Go up to someone and get them to open up to you about their computing desires, insecurities, and needs; offer them choices (of things to buy); hear them out; then seal the day in a way that makes it feel like the customer has come to this decision on their own. The manual condemns pushiness—that's a good thing—but it also preaches a form of salesmanship that's slightly creepy: every Apple customer should feel empowered, when it's really the Genius pulling strings” (“Gizmodo”)
Success Metrics
The first metric for success of Apple iPhone 5s has to be the scores on customer satisfaction known as ‘customer sat’. iPhone has been the #1 phone for past 9 years in J.D. Power. Change wave has claimed that 97% of the iOS owners are satisfied with their products with 73% of them in “very satisfied category” (“jaredsinclair”).
Another metric to consider will take time for noticing. In the next 2-3 years when the contract will start to expire and customers will be looking for device upgrades. The choice of Apple in future will decide the success of Apple iPhone 5s.
Conclusion
Apple has already built a great sales strategy for its products which results in customers waiting in long lines for its products. The Brand Apple has become synonym with success as customers wait for a new range of products to hit the shelves and are willing to wait weeks to months for delivery for their brand new Apple product. Staffing at Apple stores has risen with time as customers require Mac Geniuses who guide them through the products they buy and support system is in place to help customers get in touch with Apple and clear their queries even after they have bought their phone. Revenue of iPhone 5s depends upon the supply of phones to the retail stores and other big box stores. In most cases demand of Apple iPhones tends to be greater than the supply as the popularity of the brand Apple has opened new markets in countries like India, China and other nations in Far East.
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