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A Description of various forms of promotional activities - 15

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Macs Defy Windows' Gravity


News Analysis.

Consider this: Apple's retail market share is 14 percent, and two-thirds for PCs costing $1,000 or more.

Should I repeat those numbers? The share data is for first-quarter brick-and-mortar stores, as tabulated by the NPD Group. Apple's market share is but one measure of success. Sales growth is way up, while Windows desktop PC sales are way down.
"In notebooks they're growing two times the market," said Stephen Baker, NPD's vice president of industry analysis. "Windows notebooks are pretty much flat right now."
For the first quarter, Windows notebooks had "zero percent" growth year over year, Stephen said. By comparison, Apple notebooks had "50 to 60 percent growth."
On the desktop, "They're up 45 percent," he continued. "The [overall] market is down 20 percent. Windows desktops would be down 25 percent." The figures are also for first quarter.
I spoke with Stephen earlier this afternoon. He remarked: "iMacs are growing and the Windows desktop ain't. No matter how you look at it, Apple is outperforming Windows."
A statement like that raises the question: Is Windows Vista the problem? The operating system has met with a cool reception, even with Microsoft claiming 140 million licenses have been shipped.
"I don't believe that Vista's to blame," Stephen responded. "The vast majority of consumers don't care [about the installed operating system]."

Apple's market share in what NPD calls the "premium" category, or laptop and desktop PCs selling for $1,000 or more, is nothing short of phenomenal: 66 percent. That's right, two-thirds.
With the exception of the Mac Mini, all Apple computers sell for more than $1,000. "If you don't give people a choice, people will spend more," Stephen said.
Apple's success above $1,000 defies some of the conventional retail thinking about PCs, where the emphasis is on lower pricing and greater features. "Consumers don't care about features," Stephen asserted. "People see a value proposition in an offering that gives them a great experience."
Stephen said Apple appeals to the right segments, like multiple-computer households. Consumers that are buying a second, third or even fourth PC have different buying priorities, such as ease of use.
But the retail stores make a huge difference. "Apple has got better distribution than it's had in the last 15 years," Stephen explained. "They're in the right spot right now. There's the iPod advantage. But the big thing is the stores."
Apple's retail stores aren't just places to buy Mac products. They're part of a larger end-to-end value chain—and with it the promise of a certain kind of experience.
"What Apple drives home: This is a product that we own from factory to finger," Stephen explained. "We exert some control so that you get the best experience. When you get in the store, we get you what you want."
Apple's factory-to-finger approach works for its own retail operations, but what about what Stephen called its "non-captive channels," such as Best Buy? That's where Apple has to compete with many other products. "They've already won when somebody comes into the Apple Store," Stephen said. "How does it play in places where they're not the only answer? How big a handicap is Windows?"
Stephen didn't have an answer, but it's not difficult to guess: not nearly as well in third-party retail shops as through the Apple Store.
Given Apple's end-to-end success—from product conception to production to sale to service—I asked Stephen if Microsoft should open its own company stores, even if only a few flagship ones like Nokia.
"Yes," he said emphatically. "In a multi-channel environment you should have some kind of owned--and operated--channel as well." He cited a couple examples. One of them: "When you look at Coach they have their own showcase stores as well."
Posted by Joe Wilcox on May 16, 2008 6:30 PM

^ Additional work to the analysis of Airmiles pie chart


From what it’s evident on the page 64, top diagram about the products that my respondents spend their airmiles on, there were 43% of the respondents, who said that they don’t use airmiles.
This could have been due to the fact, that they might not be flying enough in order to get the sufficient. However, I have worked out the mean frequency distribution for the length of flights and how often/frequently they fly, provided below. The data provided below suggests, that they have been travelling enough, in order to obtain airmiles, but the fact that they don’t use airmiles can due to several reasons:



Mean Frequency Distribution for the type/length of my respondents' flights













 

of hours



Mid-point



Frequency



Frequency*mid-point



a) Long-haul flights

8 to 24

16

4

64

b) Medium-haul flights

3 to 7

5

20

100

c) Short-haul flights

0 to 1

0.5

1

0.5

Total:



 

21.5



25



164.5













(frequency*mid-point)/frequency= 164.5/25= 6.58













6.58 hours

- is an estimted length of the flight that most of my respondents use



Mean Frequency Distribution for how often my respondents fly













 

of times



Mid-point



Frequency



Frequency*mid-point



a) 1-2 times a year

1 to 2

1.5

8

12

b) 3-5 times a year

3 to 5

4

6

24

c) Other

5 to 12

8.5

11

93.5

Total:



 

14



25



129.5













(frequency*mid-point)/frequency= 129.5/25= 5.18













approx.= 5 times a year is an estimated number of times when my respondents fly per year


Mean Frequency Distribution for the 'other' types of flights that my respondents choose



out of 44% of those who chose 'other'

















 

of times



Mid-point



Frequency



Frequency*mid-point



a) 6-8 times

6 to 8

7

5

35

c) 10-12 times

10 to 12

11

4

44

f) 16- 20 times

16 to 20

18

1

18

Total:



 

36



10



97



 

 

 

 

 

(frequency*mid-point)/frequency= 97/10= 9.7





approx.= 9.7 times a year is an estimated number of times when the respondents who

chose 'other' flyper year






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