Mr. AKARAT SOW @ ID No. g5349179
Reflective Essay on Product Strategy
Product is one of the four key elements in Marketing Mix or 4Ps (product, place, price, promotion); it plays such a significant aspect for those companies who give their focus on the product which is where their strengths are, and this action has been called Product Orientation Method. It means the business approach that all company activities will put their attention to improve, re-design and refine its product quality by assuming that the customers always want the best quality product with a competitive price1. Product Strategy will be a key to success to product orientation companies where marketing plans will be designed and implemented based on the characteristics of the target customers, marketing and profit objectives, the desired product positioning, financial targets and budgets, and tactical plans2. Taking these three devices as examples of the companies using product strategy, “iPhone and iPad” from Apple and “Kindle” from Amazon; iPhone is a smart phone that combines a music player, a table PC, a digital camera and a phone together with entertainment and style, including internet browser and networking capabilities. Now “iPhone 4”, the fourth generation of iPhone which carry a better design and big improvements on many features, have just launched in the US market, while iPad is a bigger version of iPhone except calling function who just enter to match and compete with Kindle, an e-book reader machine from Amazon, which both of them were a new product to the market when they first launched.
•Multi-function •Re-design of iPhone 3Gs •Multi-touch screen •Big storage •Lot of applications •Wifi, Blutooth and 3G •24-Hour battery life •Lot of applications •Price starts at $ 99 with contract
•Multi-function except call function •Cool design •Multi-touch screen •Large Screen Size (9.7 inch) •Big storage •Wifi, Blutooth and 3G •10-Hour battery life •Lot of applications •Good for reading newspaper (color photos & inline videos) •Price starts at $ 499
•One-function •Simple design •Single-touch screen •Large Screen Size (6, 9.7 inch) •Focus on reading e-book •Readable in direct sunlight •Screen is for readiing •Wifi and 3G •Compact and light •1-Week battery life •Wide range ot book titles •Price starts at $ 259
Figure 1: Product Features Comparison3
Encyclo (2010). Product Orientation. Retrieved July 13th, 2010, from http://www.encyclo.co.uk/define/Product%20orientation
Allbusiness (2010). Product Strategy. Retrieved July 13th, 2010, from http://www.allbusiness.com/glossaries/product-strategy/49635891.html 2 3
Ireaderreview (2010). Kindle VS iPad Review. Retrieved July 13th, 2010 from http://ireaderreview.com/2010/01/27/kindle-vs-ipad-review
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Strategic Marketing Management (MGMG508 Section 1)
Mr. AKARAT SOW @ ID No. g5349179
Comparing product features among these devices; there are many entertaining functions on iPhone and iPad that consumer can have fun with such as playing games, watching movies, listening to music, reading e-books, and surfing the internet, while Kindle will mainly focus on reading e-books, articles and documents and surfing the internet. Furthermore, iPhone and iPad have tons of good and useful applications in many areas, that can ease our life; only two differrences between them are the size and calling function. Pricing is onother important aspect that customers always take into consideration. Even though iPhone price is the cheapest among three devices which starts at $ 99, a 2-year contract with AT&T (Service Provider) is needed and monthly service fee for your talk or data plan have to be paid; this agreement might consider as a hidden cost. Moreover, iPhone 4, the newest model, has just launched months ago in the US market and offers better features; it creates a huge demand all over the world and...