Post on 21-Nov-2014
Consumer Buying Behaviour
GROUP MEMBERS
Manisha Manglani 86Mohd Asad Ansari 93Mohd Talha Khan 97Neha Parmar 107
Prof. Shannon Chavan Roque
Presented to:-
Cannibalization
Situation that occurs when sales of a new product cut into sales
of a firm’s existing products
• The primary goal of extending a companies product line by launching a new offering is to increase a companies sales revenues by growing demand for the overall category or by stealing share from competitors
• A typical side effect of such product line extension is that, in addition to stealing share from competitors, the new offering also takes away share of companies current offerings, a process referred to as Cannibalization
Apple Inc. ProfileLOGO:-
The Apple logo was designed by Rob Janoff
INDUSTRY:-
Computer hardwareComputer softwareConsumer electronicsDigital distribution
PREDECESSOR:-
Apple Computer, Inc. (January 9, 2007)
FOUNDED:-
Cupertino, California, U.S. (April 1, 1976)
FOUNDERS:-
Steve JobsSteve WozniakRonald Wayne
HEADQUARTERS:-Infinite Loop, Cupertino, California, U.S
NUMBER OF LOCATIONS:-
300 (August 2010)
AREA SERVED:-
Worldwide
KEY PEOPLE:-
Steve Jobs (Co-founder, Chairman and CEO)Tim Cook (COO)Peter Oppenheimer (CFO)Bob Mansfield (Mac and iPhone Hardware Engineering)Jonathan Ive (Industrial Design)
SERVICES:-
Stores (retail, online, App, iTunes, iBooks)MobileMe
Employees:-34,300 (2009)
Subsidiaries:-Braeburn Capital, FileMaker Inc.
Website:-Apple.com
STEVE JOBSBORN:-
Steven Paul JobsFebruary 24, 1955 (age 55)San Francisco, California, USA
Residence:-
Palo Alto, California, USA
Nationality:-
American
Alma mater:-
Reed College (dropped out in 1972)
Occupation:-
Chairman and CEO, Apple Inc.Board of Directors, Walt Disney Company
Salary:-US$1
Net worth:-
$5.5 billion (2010)
Signature:-
PRODUCT PORFOLIO
Mac (Pro, Mini · iMac · MacBook- Air, Pro · Xserve)
Mac Pro
Mac Mini
iMac
Macbook AirMacbook Xserve
iPod (Shuffle, Nano, Classic, Touch)iPhone (Original · 3G · 3GS · 4)
• Apple iPod Classic 160GB 7Generation
• Apple iPod 2GB Shuffle Silver• Apple iPod Touch(3rd Gen) 8GB
Black MC086ZP A• Apple iPod Nano 8GB
5th Generation With Camera and FM• Apple Ipod Touch
Second Generation 8GB• Apple iPod Touch First Generation
8GB• Apple Ipod Shuffle Voice Over 4GB
iPad
Apple TV
Cinema Display
Airport
Time CapsuleMac OS X (Server)
iLife
iWork
iOS
Competiton
Impact of launching a new offering on the sales of an existing offering
Source: ‘Strategic Marketing Management’ – Alexander Chernev
Conclusion• Having a new product takes sales away from an
existing product is not usually an attractive situation for a firm
• By offering new products in new markets, they cover the cost of cannibalization with new sales and they stop competition from entering the market
• Sometimes you just have to eat the cost of cannibalization simply to maintain market share
Thank You