Apple did the Walmart brand a favor
Tom Dougherty, CEO – Stealing Share
14 January 2013
It’s the Walmart brand that benefits
When Apple’s iPods, iPads and iPhones started showing up in Walmart a few years ago, the natural question was whether their availability at the place that promises low prices would hurt the Apple brand. But what about the Walmart brand?
This is an even more relevant question with Walmart’s announcement that it has a no-contract, unlimited calling and texting plan in partnership with Straight Talk Wireless when customers purchase an iPhone.
“In effect, Apple helped the Walmart brand, which now has permission to sell other premium products.”
Beyond that is the specialty vs. mass-market question. For premium brands, the medium is as important as the message. Logically, if products are sold at a place like Walmart, they are associated with low price and, probably, lower quality. Apple did the Walmart brand a favor.
But Apple has two other things going for it:
First, Apple does not discount its pricing at Walmart.
Second, Apple did not launch its products at Walmart. The Apple Stores came first, which is an important distinction. Apple didn’t enter Walmart until it had already established itself as a powerful and premium brand.
In effect, Apple helped the Walmart brand, which now has permission to sell other premium products. It could now sell luxury furniture at a lower cost and the furniture would still be seen as high-end.
In this Apple-Walmart marriage, Apple got greater distribution and Walmart got the aroma of premium. It was the best of both worlds.
Airbus and Wide-Bodies Tom Dougherty, CEO - Stealing Share 20 July 2018 Airlines and Wide-Bodies Wide-Bodies. Airbus Wide-Body Hooray for wide-bodies! I'm not a wide body but I am a frequent flyer. As it is, I'm not writing about the Airline industry as such. And, I...
Prime Day Tom Dougherty, CEO - Stealing Share 17 July 2018 Prime Day remains the tops, despite glitches There are very few shopping events that get me excited. Let me rephrase that. There is only one shopping event that gets me excited — Amazon’s Prime Day. Even...
Netflix downloads Tom Dougherty, CEO - Stealing Share 16 July 2018 Netflix downloads grow more robust It’s a stunner to me that only a few streaming services do it, but why don’t more of them offer downloads of their content like Netflix? OK, Amazon Prime...