iPanel_Canni

=**Cannibalization **=

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The concept of cannibalization is extremely relevant in the context of modern marketing and should be addressed for all new product launches. It must not be overlooked during the marketing stage of a new product. The solution to overcoming the issue of cannibalization is extensive planning, consideration and execution of distribution channels. This will be the approach the Apple iPanel will employ in order to overcome the issue. The distribution approach taken by the iPanel is significant in that it does not avoid any channels. Theoretically, avoiding one channel such as online would be beneficial in that it is much simpler to plan market strategy by doing so. In retrospect, by taking this approach, many potential sales may have been diverted which could result in a lower market share or even the failure of a product. In order to get the iPanel in as many hands as possible, we will make use of both online and retail distribution channels. Both of these channels have their benefits and we feel that by using them both, sales will be much higher. Selling the iPanel online is a no brainer. Apple, being the technology leader that it is today, would be at a severe disadvantage if the iPanel wasn’t sold online. The Apple website would be a great source for potential customers to get information on the product prior to purchase. It will also prove to be convenient for people who do not want to take the time to walk into a retail location. The retail locations that the iPanel will be sold at were considered specifically to avoid cannibalization. Again, selling the product at retail is unavoidable because too many potential sales will be avoided. Furthermore, people like to have the option to go to a store to test and try out the actual product in their hands before purchase. This makes the retail distribution channel significant even though some online sales may be cannibalized. In summary, to effectively market and sell the iPanel, utilizing both the online and retail distribution realms is necessary. So how is cannibalization avoided? Essentially, both the online and retail channels appeal to different segments of the market. In general, Apple products do not cater to a certain niche market but rather a mass market audience. The iPanel is no different. The people that will purchase the iPanel online are of the tech savvy characterization. These type of people get all of their pre-purchase information from the internet by reading through the manufacturers website, and by reading and viewing various reviews of the product. The significant technical abilities of the iPanel insinuate that this should be a large market. Moreover, the cannibalization created by the online distribution channel should be rather minimal. The retail distributions channel on the other hand caters to another type of buyer. Furthermore, these people may have heard about the iPanel through TV ads or magazines and are attracted to the product less for its technology but rather its style and design. These people are more reluctant to purchase if they cannot try out the product for themselves to make sure that it fits their lifestyle. This is where the retail distribution channel comes in and adheres to this need. Again, this is the exact reason as to why the retail channel should not cannibalize a large portion of online sales.