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