Apple's diversification

Topics: IPhone, Strategic management, Marketing Pages: 1 (337 words) Published: September 24, 2013
Apple: Now everyone can have a bite

When a premium seller like Apple decides to enter the mass market, it usually faces a positioning dilemma - should it play on its 'low price' avatar and risk losing its brand image, or does sticking to its snob value jeopardise its market expansion plans? Our ad tries to overcome this through a dual strategy.

First, we have attempted to retain Apple's classy style of communication through the minimalistic poster. The white background is reminiscent of Apple's earlier print ads. Secondly, we deliberately excluded any mention of the price, and just focused on the much more useful term affordable. The new iPhone has been named 'fab'. It's a simple, easy to remember word without much baggage. The tagline "More affordable than ever" seeks to establish a continuity with Apple's efforts of luring customers in emerging markets like India with discounts, EMI schemes etc. In terms of marketing strategy, we feel Apple would not need a spokesperson/brand ambassador in mass markets as it already has a high desirability quotient. The only impediment was price, which the cheaper iPhone will take care of. In our view, Apple's battle with other low-cost smartphone sellers will not be about price, as the iPhone can easily command a premium of a few thousands over its next competitor. A sub-Rs 20,000 iPhone, we feel, will be enough to sink the boats of the Micromaxs and Karbonns of the world. Samsung, however, will be a tough nut to crack due to its first mover advantage and wide portfolio of products. Therefore, the new iPhone has to be cheap in price, but rich in features. Apple would have learnt by now the pitfalls of excluding the mass market from its strategic vision. But the innovation and persistence inherent in the company would make it a formidable competitor in any segment, even if it enters the market a few years late. All it needs to do, as a gentleman named Steve Jobs once taught us, is to Think Different.
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