Embed Size (px)
DESCRIPTION
Pricing strategies can have a big impact on brand value, profitability, and sales volume. Our infographic explains how Apple's pricing strategies propelled its ecommerce success and helped it become the #1 most valuable brand, according to Forbes. Check it out to learn brand management strategies from the big leagues.
Citation preview
BIG LEAGUES:BRAND STRATEGY
BIG LEAGUES:from BRAND STRATEGY
How apple’s pricing drives sales and loyalty
Why apple is exceptional among PCs
the
How iPhones Prove the Power of Version PricingVersion pricing is a pricing strategy that includes different versions of the same product
to appeal to different customer segments and their individual willingness to pay.
Why Apple’s Price Discrimination Works:
INTRODUCTION GROWTH MATURITY DECLINE
PROD
UCT S
ALES
Apple prices products higher at time of launch because Early Adopters are willing to pay more to get their hands on technology.
Why Apple Can Command A PremiumDuring launches, Apple regulates inventory, giving more exclusivity to those who
are able to snag one and keeping demand high.
Apple products with more memory carry a larger price tag.
Secretive product launches and press events build enough buzz tokeep consumers in line for hours.
The high price point is consistent because discounts are rare. There is little incentive to sellbelow MAP, since resellers don’t receive much of a discount on bulk orders.
“With the 5C in place as a fighter brand, the 5S is now better positioned to customers who highly value the handset and can continue to command a premium.”
Rafi Mohammed
PRICE BASED ON VALUE
CREATES FERVOR FOR THEIR PRODUCTS
KEEPS PRICES AND BRAND VALUE CONSISTENT
Innovators EarlyAdopters
EarlyMajority
LateMajority
$599
$499
$399
$299
$199
$99
Apple introduced the 5C starting at $99, a lower price point compared to the 5S, which goes all the way up to $399*.
1st gen 3g 3gs 4 4s 5 5s 5c
26.5%22.8% 13.7%PC Market Share
$ $$ $$
$
$104.3billion $104.3billion
Apple is the #1 mostvaluable brand
#1
Apple sells
only 28% of
HP’s volume!
Are resellers undercutting your brand value by selling below MAP?Monitor them and improve your brand perception.
MSRP Watchdog for BrandsPr i c i n g Pe r fe c te d.
http://appleinsider.com/articles/14/01/09/apples-domestic-mac-sales-surge-285-as-overall-pc-market-shrinks-75
http://appleinsider.com/articles/11/06/24/apple_may_make_more_profit_selling_one_mac_than_hp_does_from_7_pcs
http://wallstcheatsheet.com/stocks/apples-sales-are-nothing-special-but-look-at-those-profit-margins.html/?a=viewall
http://blogs.hbr.org/2013/09/apples-iphone-pricing-strategy/
Sources:
442 Post StreetSF, CA, 94102
computer$370.55 /
Apple pocketsnearly 20% of
its revenueas profit
Apple makes more profit from selling one Mac than HP does
from selling 7 of its computers!
Apple sells 5%of the
world’scomputers
*These prices are based on two year contracts.
BUT MAKES
45%OF THE
INDUSTRY’S
PROFITS
