Apple:Apple: America's best America's best

retailerretailer

Group Members : Mark Cain Group Members : Mark Cain

Evan KuenzliEvan Kuenzli

Chik M Tam, TammyChik M Tam, Tammy

Why have Retail Stores?Why have Retail Stores?

In 2000, the company was increasingly In 2000, the company was increasingly dependent on mega retailers.dependent on mega retailers.

Retailers have little incentive, never mind Retailers have little incentive, never mind training, to position Apple's products as training, to position Apple's products as anything unique. anything unique.

This caused Apple to open up their own This caused Apple to open up their own retail store, where they have creative control retail store, where they have creative control in selling and marketing of their products.in selling and marketing of their products.

Action takenAction taken

Invite Mickey Drexler to join Apple's Invite Mickey Drexler to join Apple's board.board.

Hire Ron Johnson to run Apple’s retail.Hire Ron Johnson to run Apple’s retail. Design the store as if they were Design the store as if they were

designing a product.designing a product. Build a trial version of store or prototype.Build a trial version of store or prototype. Apple Store Version 0.0 took shape in a Apple Store Version 0.0 took shape in a

warehouse near the Apple campus.warehouse near the Apple campus.

How was the first store How was the first store created?created? A product oriented version 0.0 store was A product oriented version 0.0 store was

designed, but they changed the idea of the designed, but they changed the idea of the store.store.

They asked people about best service They asked people about best service experiences they ever had.experiences they ever had.

The store design changed from product oriented The store design changed from product oriented to only using a quarter of the space for product to only using a quarter of the space for product display. The rest was arranged around interests: display. The rest was arranged around interests: photos, videos, kids, problems and the Genius photos, videos, kids, problems and the Genius Bar.Bar.

Design of the Apple Design of the Apple Store:Store:Genius Bar Genius Bar

Inspired by customer’s comments on the Inspired by customer’s comments on the best service experience in a hotel’s best service experience in a hotel’s concierge desk.concierge desk.

Put a bar in stores. But instead of Put a bar in stores. But instead of dispensing alcohol, it dispenses advice.dispensing alcohol, it dispenses advice.

Customer’s get tutorial and advice on Customer’s get tutorial and advice on products.products.

Design of the Apple store Design of the Apple store (con’t)(con’t)

The interiors, a minimum of elements are The interiors, a minimum of elements are used: glass, stainless steel, and wood.used: glass, stainless steel, and wood.

Newest stores are missing check out Newest stores are missing check out counters and instead use Easy Pay, a counters and instead use Easy Pay, a system developed by Apple to let system developed by Apple to let salespeople wander the floor with salespeople wander the floor with wireless credit-card readers.wireless credit-card readers.

Store on 5th Avenue Store on 5th Avenue ManhattanManhattan

32-foot glass cube that 32-foot glass cube that serves as the entrance serves as the entrance

100 Macs and 200 iPods for 100 Macs and 200 iPods for customers to trycustomers to try

the largest selection of iPod the largest selection of iPod accessories of any storeaccessories of any store

45-foot combined Genius 45-foot combined Genius Bar, iPod Bar and Studio for Bar, iPod Bar and Studio for technical support. technical support.

How successful is the StoreHow successful is the Store

The Manhattan Store generates $4032 The Manhattan Store generates $4032 per square foot per year.per square foot per year.

Best Buy generates $930 per sq ft Best Buy generates $930 per sq ft Tiffany generates $2666 per sq ftTiffany generates $2666 per sq ft

Average 50,000+ visitors per week Average 50,000+ visitors per week

ReferencesReferences www.apple.comwww.apple.com

http://money.cnn.com/magazines/fortune/fortune_archive/http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402321/index.htm2007/03/19/8402321/index.htm

http://www.youtube.com/watch?v=hBnWF6vjCKAhttp://www.youtube.com/watch?v=hBnWF6vjCKA

http://www.youtube.com/watch?v=9Os8AhvaUyUhttp://www.youtube.com/watch?v=9Os8AhvaUyU

http://www.youtube.com/watch?v=3jGAO76G0dYhttp://www.youtube.com/watch?v=3jGAO76G0dY

http://www.betanews.com/article/http://www.betanews.com/article/Apples_5th_Avenue_Store_Opens_Friday/1147974923Apples_5th_Avenue_Store_Opens_Friday/1147974923