Post #4: Place and Distribution Channels
Mar 14th, 2012 by randyluo
Recently I read an article from Bloomberg regarding the market share of Apple’s iPhone is dropping in the Chinese markets, while Samsung’s market share is three times larger and is still growing. The article addresses a few issues which results in Apple’s lack of competency in the Chinese market,including Apple’s limited operator (Apple is only compatible with a small carrier company while Samsung is compatible with all carriers in China). I think all those issues have certain marketing issues that Apple should address.
Firstly, the carrier problem. Even though I am not so familiar with Apple’s distribution channel structure, but I assume it should be from producer (Apple), to retailers or just straight from producer to customer. Since China Mobile Ltd. is the largest carrier in China, Apple should take that into consideration when deciding the target for the vertical marketing system.
Secondly, the product itself have certain problems. Certain iPhones would have to be “unlocked” inorder for people to use overseas and in China. Some people might just get lazy and opted for the more convenient and trending Samsung phones instead.
Thirdly, Samsung is more involved in communities in China, and also have done immense amount of promotional work, including sponsorships, advertisements around the cities. While Apple also competes by having their promotional activities too, however, Samsung created that strong bond/connection with customers especially in the Asian community.
I think in order to change the situation, Apple should try and expand it’s carrier services. Even though Apple might want to create that exclusivity feeling by limiting it’s carrier service, it ignored the fact that the Asian market is different from the North American market. While Apple is dominating the North American phone market with it’s loyal customers, Asian markets is infiltrated with other rising Asian brands that Apple failed to see. So in order to compete, Apple needs to expand it’s carrier services.
*Article from: http://www.bloomberg.com/news/2012-03-11/iphone-fails-to-gain-china-share-as-samsung-lead-triples-tech.html