Chasing the Customer… Great to Goat?

Apple Watch

Good to Goat? or  Good to Great?

The results are in. Looks like Angela did do it! 

applewatchhand

It looks as though Angela Ahrendt’s new sales strategy had the right touch. According to CBS News reports, the first traunch of Apple watches sold out in the first 30 minutes. (Samsung spent a considerable amount marketing the Galaxy Gear and never reported a six hour sell-out.)

Yesterday’s launch of the Apple Watch was different from Apple’s previous launches in at least one big way:Angela picture There weren’t the block-circling lines packed with Apple faithful that have come to symbolize previous product launches.

A memo recently written by Apple retail head Angela Ahrendts told Apple Store employees to recommend that shoppers stick to buying the Apple Watch online instead of visiting Apple’s retail locations.

Angela’s new strategy moves from bricks to clicks … and perhaps forever changes marketing and retail distribution strategies and tactics.

Apple apparently spent around $40 million during the last month to build demand for the product. There is only one commerical in the rack now, Apple Watch – The Watch Reimagined. (click to view video) Roughly the same amount was spent to launch the iPhone 6 … over a 5 to 6 month period, by comparison.

The Importance of the launch:

  1. Apple Inc. is expected to report earnings on 04/27/2015 after market close. Thereport will be for the fiscal Quarter ending Mar 2015.
  2. Apple’s valuation is arguably low — so there is still room to grow. Google, for instance, has a PE of 27.25. Apple has a PE of 16. And yet, Apple is growing faster than Google. Apple’s sales were up 30%, while Google’s revenues were only up 15% last quarter. Apple’s quarterly revenue was higher than Google’s revenue for all of 2014. It was more than Amazon, Google, and Microsoft generated in revenue combined.
  3. The company earned an $18 billion profit on $74.6 billion in revenue. $18 billion was more than any company had ever earned. So, there is a lot of pressure on the Apple team to do well this quarter and the Watch launch is probably critical.

Drucker Said It

Angela Did It!!!

Druckerangela-ahrendts-21

The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.

Angela Ahrendts just bet the bricks that the new Apple watch can do it with clicks.

Will Angela prove Peter’s hypothesis? Is the Apple brand so Iconic, the technology so awesome, the product so powerful that it breaks through the customer’s traditional need to touch, to feel, to try a product before purchasing?

What is Angela doing that might transform all of our conventional wisdom regarding the ‘path to purchase’?

To find out … read on —


Angela Dumps Bricks for Clicks?

Angela Ahrendts formerly of Burberry and now Apple’s Retail Regent — sent out the following to retail staffers … “This is a significant change in mindset, and we need your help to make it happen,”

There’s the new Apple aphorisim for shop on line … don’t line up outside our stores if you want an Apple watch.

“Gangela-ahrendts-21et in line online

The days of waiting in line and crossing fingers for a product are over for our customers. The Apple Store app and our online store make it much easier to purchase Apple Watch and the new MacBook. Customers will know exactly when and where their product arrives.

This is a significant change in mindset, and we need your help to make it happen. Tell your customers we have more availability online, and show them how easy it is to order. You’ll make their day.”

Is Omni-Channel Over?

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