How Potato Shop & Apple devices (Iphone) share similar Marketing Strategy?

Apple is my favorite example of simplicity in marketing. Everyone knows how good Apple is with strategies (simplicity though). For me Apple is such a consistent and reliable brand of all time. So far they have been impressive with their marketing strategies, selling exactly the same product in the form of variants of storage sizes. Apple brought this strategy long back and I am impressed with their coherent set of actions towards their strategy. I am not sure how Apple thinks before others think about something. Different variants, and significant price differences with its products is an amazing way to sell same product with a minimal product difference (called variants). Also, Apple doesn’t give liberty to have additional memory card that confines people (customers/consumers) to limit the use of devices, and hence less wear and tear. More storage can hang your phone, more storage can make to carry more problems (sometimes) with you. More storage will also keep you more inclined towards the phone for every single need, and hence more wear and tear either way (application and physical). The variant option also reduces wear and tear with phone in many ways, but it is mostly applicable with the 16/32GB variant phones. Guess what 16GB is the highest selling variant of Apple phones so far, but the results of Iphone 6 and plus are little different which needs some more time to engulf the market due to high demand and less supply. Iphone 6 and plus are easily available with 16GB variant, but 64GB needs waiting, and 128GB not so easily available in the color you like. What I have seen so far is Silver is most demanded color of all for both 6 and plus. You might have to compromise with colors if you want 64/128GB variants immediately.

potato2

Now coming to the point, why are different variants? and why some variants are more in demand? It is with almost every company that they release 3 similar models with slightly different features, and price. This is a way of marketing strategy. Imagine you went to market to buy potatoes, and you see there are 3 different prices for same (similar) potato’s in 3 different shop, lets say shop1 – $.75, Shop 2 – $.90, and shop 3 -$.95 for each lb with same quality. If you are going to buy in bulk then you might look for the quality and the cheapest option available, and such a fluctuation in price can lead you to purchase more considering the demand, Shop1 potato’s stock (Stock maybe likely to be finished or there are plenty remaining). This superiority feeling can lead you to purchase more, and can persuade to take unknown risk of being confident that it is the best buy and you can make more money out of it (increased value) or leverage this opportunity in other ways. Suppose when more people builds the similar logic and start purchasing all potatoes from shop 1 stock, and because of mutual interest Shop 1 gets potatoes from Shop 2 and 3 from the back door and share the profit among themselves (strategy to sell more potatoes to generate more cash flow by creating superiority feel). This is how and why you see different prices of the same/similar products in an oligopoly markets (I might be too aggressive in generalizing things here but it is true in many conditions!). You can very well relate this with Apple products or with Samsung products – they have note, Galaxy s5 and Alpha…

Apple 16GB is for the people (consumers) who want to use the product but understands that they cannot do much with it when it comes with storage intensive applications, or these people are less interested in games, or they have other Apple devices for music or something, maybe an Ipod holder is more likely to buy 16GB variant that gives a superior feeling over the other variants of Apple (64/128 GB). Higher variants are for the people who doesn’t care about few extra dollars, or they have photography desire with iphone, or they conditionally and situationally might not be carrying ipod (80Gb/120GB/any) variant or ipad with them. Bringing the analogy from Potato shops, Apple has complete control on its products since their products compete with its own products, instead of only competing with competitors. Engaging consumers mind like this can build strong perception for a special variant and hence products and ultimately the brand.

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