Earlier this year, discount retailer Wal-Mart started selling the iPhone. Starting to surface is the discussion on whether or not Apple will expand it’s product line on the retail shelves of Wal-Mart. Considering Apple has established it’s brand as the innovative, upscale brand and Wal-Mart is the biggest discounter, the pairing brings up branding concerns. The first concern is how the match up will effect the Apple brand.
From the beginning, Apple has successful established it’s brand to be unique. Everything from the product’s innovative designs, accessories, and customer service reps, aka Apple Genius, reinforce the Apple brand. Wal-Mart’s brand is known for low price guarantee, something which is not typically associated with Apple. The iPhone’s arrival to
Wal-Mart’s shelves is one of the higher priced items carried by the retailer.
According the AppleInsider, there are rumors of Apple selling it’s lower priced items in Wal-Mart stores. You won’t see the MacBook Pro, but possible newer cheaper items such as the Mac Mini. A part of Apple’s branding is the use of their own retail storefront and the Apple Genius. It will be interesting to see how Wal-Mart’s displays and associates will extend the brand of Apple which is prevalent in their own stores.
Of course, the bigger question is whether or not extending the Apple line with Wal-Mart will hinder the Apple brand. There are ways Apple can ensure their brand is well represented at the retail shelves. Brand strategy measurement tools include:
1) Visual Merchandising Audits: Photos conducted by a third party auditor can provide Apple a visual quality check of POS marketing and product displays.
2) Shopper Intercept Interviews: Intercept interviews are a great way to find out how the consumer views the brand in the retail setting. Apple can find out whether or not sales associates are knowledgeable on product line and helpful in ensuring a positive shopping experience. The interviews can reveal whether the pricing and marketing is effective with the brand’s consumers.
Measuring the consumer attitude and the merchandising would help Apple determine whether or not it’s brand quality is represented on the shelves of any retail storefront.
What do you think about the Apple expanding it’s product line with Wal-Mart? Do you think pairing with a discount retailer hinder’s the brand?
