IPAD Marketing Plan
Since there has been an increasing number of iPads introduced in the markets, the role of effective channel is needed. iPad 4 will be available on the Apple’s Store which is part of the branding strategy of the company. iPads are used for several purposes and iPads can also be helpful in education.
Apple is planning to have strong worldwide distribution channels with Apple’s Store, its Carrier Partners including AT&T, Verizon and Sprint. Reseller networks will also be included in the channel distribution; these include third party retail outlets like Wal-Mart, Best Buy, carrier stores. Other also includes websites of third party like Amazon.com.
Considering the use of iPads, Apple has planned to launch iPads in schools to promote. Educators now prefer iPads because they want to be digital in the classrooms. Apple to launch its iPads has made an agreement of $30 million contract with the L.A Unified School District situated in California. Through Apple Store, the company has been planning to sell iPads directly to the final consumers for $499 out of which the company would make $270 of profit on one unit. But when Apple would sell its iPad 4 through wholesale to retailers the story is quite different. Generally the price of wholesale is half of the retail price (Bui, 2012). The price of wholesale is yet to be settled. Apple however would sell its iPads to retailers for around $250 making profit of $20 per unit. The Company would also be providing 3 percent of discount to its retailers when they buy at bulk. This means that $500 of one iPad would be given for $485. As far as the manufacturing and shipping of iPads is concerned the Company has made a legal contract with Foxconn, a company of Taiwan which has its factories in China (Dilger, 2013). Production costs is quite low than the U.S. Foxconn would make shipment of products from its factories in China to U.S warehouses.
References
Bui, D. (2012). Apple’s Innovative Distribution Strategy Revealed!. Sales Chase, Retrieved July 6, 2013 from http://www.saleschase.com/blog/2012/04/09/apples-innovative-distribution-strategy-revealed/
Dilger, D. (2013). Apple's iPad pricing, distribution stronger than iPhone. Apple Insider, Retrieved July 6, 2013 from http://appleinsider.com/articles/13/04/03/apples-ipad-pricing-distribution-stronger-than-iphone
