Samsung's Marketing Strategy - Copy Apple.

I am not surprised to read that Apple are filing a lawsuit for Samsung's "slavish copying" of their iconic products - the iPhone and iPad. We all know Samsung have been doing this for a long time including the company itself and to be fair it is generally a decent strategy. Probably the only reason why the technology giant is keeping pace with Apple - being the cheaper alternative.

Now the issue here is, should this be allowed?
Well it already is allowed in the world of busines, especially within the food market with packaging and branding but technology is a whole different ball game. We are talking big margins, expensive research and development, what would be the point of innovation when your rival is just going to copy you and have a piece of your cake. It is not competitive, it is cheating. Samsung could have easily taken some elements of Apple's design and made it their own but instead they pushed the boundaries and should be punished. Let's play fair now lads.

Microsoft - Nokia. A Connection in the World of Communication.

Recently, it has been announced that Microsoft and Nokia are going to create an alliance in the smartphone industry to challenge the notorious Google and Apple devices. For this deal to work effectively sacrifices have to be made; strategies have to be thrown in the bin, accesses have to be licensed and compromises have to be made. So is this an act of desperation or a smart tactical move? I believe it’s a bit of both.

 

Nokia is still the “world’s largest handset maker but admits that it has lost out to Google Android and Apple in the smartphone market.” So the days of the 3310s are over and now is the age of touch screens, you have to wonder how Nokia failed to keep up while this transition from phone to smartphone was happening. Somehow RIM’s Blackberries, Google’s Androids and even Apple’s iconic iPhones have been able to pick up a nice portion of the market share unchecked. I refuse to say lack of innovation is the reason because that is ALWAYS the reason and is overused by marketers in this current age.

Where did all go wrong?

From what I see, it could have been down to a misunderstanding of a differentiation strategy. In the world of smartphones, having a powerful camera or bigger memory doesn’t count as being different because there’s a high chance that everyone else has the same features as you. If you want to be different use the Blackberry Hype as your inspiration. RIM turned a business phone into a mainstream smartphone with just one feature, unlimited messaging for a small fee a month. Some would say “There’s just unlimited text right?” yes but everyone has it so you should too. Now having a blackberry has become as much of a social requirement as having facebook. The iPhone has ping chat but BB’s are way more affordable so there is a bigger customer base. The more people who have access to a blackberry, the more the reason to have one, just like Facebook the more the merrier. And the payment system is a cunning one, giving the illusion that BB messaging is free when it’s just part of your pay monthly price plan. Sounds similar to how the internet seems free because you have unlimited access but really there is a monthly fee which someone has to pay.

It seems Apple has changed the game with the infinite collection of apps available to us all and Google’s Android has penetrated the market with their user friendly OS, Nokia seemed obviously distracted still playing Snake.

A new gateway to the web is a new venture for Microsoft.

Now Microsoft wants a piece of the pie, they always have based on their past short-lived collaborations with Motorola, Palm and what not. Although this seems to be the one with the most potential as Nokia has the best mobile hardware and Microsoft has the resources. Microsoft needs to have a foot in the market because smartphones are becoming just as versatile at browsing the net as laptops and they cannot afford to allow this gateway to the computer world to go begging.

Can this partnership work?

It has to or Nokia’s market share will continue to decline and Microsoft will have an even looser grip on the world of Web 2.0. However, there is still something to offer to the smartphone industry which could be achieved through this partnership. For instance, Blackberry devices break down/freeze/malfunction more easily than the first batch of Xbox 360s in 2005. This is a chance for Nokia to display their expertise to produce hardware which is reliable but affordable. Apple may be considering making cheaper models of the iPhone but they are in danger of watering down their brand image if they follow this through. Also it is unheard of for users nowadays to not use the internet through their smartphones so this could be an opportunity for Microsoft to improve the users experience on the web through their mobile devices. There are no cutting corners with this venture and it would take pure luck to successfully challenge RIM and Apple but the industry is moving fast. Although in my opinion the PC tablets market looks more appealing than smartphone at this point in time.

http://www.marketingweek.co.uk/sectors/telecoms-and-it/nokia-to-partner-with-microsoft-under-new-structure/3023364.article

http://www.winrumors.com/microsofts-mobile-deals-failed-in-the-past-will-nokia-change-that/

Tesco-Asda Price War - How low can they go?

Tesco and Asda are probably the biggest supermarket players in the UK right about now. They have always rivalled each other with competitive pricing but over the years they have slowly but surely been getting a little bit more ‘direct’ with their advertising. It’s like two ladies just bitching about each other with the side comment before eventually becoming face to face and that's when the real fireworks start setting off.

I’ve never really kept track of the on-going rivalry or even taken an interest until I opened up The Sun and found Tesco’s latest ad saying “The Asda Price Guarantee? We think it’s bananas crackers or even nuts. Not to mention bread cheese potatoes milk eggs loo roll bin bags or even Lady Gaga.” This was accompanied with pictures and prices lower in comparison to Asda. (Image will be added soon).

So let's have a look at the humble beginnings of the pricing comparison fiasco.

Asda rolls up their sleeves and takes a huge swipe at all their rivals in one-go while making Tesco look the least price friendly. Bear in mind that this advert was banned for being misleading. Hit or miss?

Tesco makes this personal, singles out Asda as their main competitor and declares war. Message received although Asda was quick to run to daddy a.k.a Advertising Standards Agency and it is Tesco's turn to get a telling off for misleading advertising. An eye for an eye.

What an interesting approach. Played it simple with a short word-stab with "No clubcards", cheeky but many would have accepted message as Asda saying they don't want to play games and would rather let the prices do the talking. Nicely played.

I don't know but I'm struggling to see if this advert actually appeals to shoppers at all. It seems Tesco wanted to be creative but ended up being statistical and boring with this weak contribution to the price comparison war. Pie Charts next time?

I can go on forever but I unfortunately lack the resources to collect all the adverts and put them into chronological order. I will surely update you with the latest adverts as these titans go all out but this game of chess has become tedious when concerning regular shoppers. Price comparison has been outdated and supermarkets are overdosing, Asda's price guarantee has been done before but at least they have reduced the number count. Tesco's current  ad statements slating the price guarantee can be labelled as childish while at the same time Sainsburys wins supermarket retailer of the festive season taking huge chunks of the market share. I guess it is not all about the prices lads.

How did Apple Do it?

Today, I was browsing the metro newspaper then I came across the ‘iPad’ priced at £500 or more. I started to crave it for no apparent reason, a device which would serve no real purpose in my life. Then I started thinking “how did apple do it?” create another masterpiece after the iPod and iPhone while making it as desirable as its predecessors.

The Big Questions

With the iPod and iPhone there was already markets for the products to enter but the same couldn’t be said about the iPad? Apple’s next challenge was to create a market for their new creation. But to make a totally new market you need to identify a need and offer a solution. This led to the next big question, what is the iPad for?  What does it do that the iPhone can’t already do? People would say that it was just a bigger version of an iPhone, so is there any point getting it if you already own an iPhone?

A market is created at the cost of others

The iPad was launched and we were all amazed. In awe of the multi-touch capabilities, how the fingers zoomed in and out of text, switched from page to page with ease, this device made everything seem so simple. It may not have sold as many as expected but it succeeded in creating a new craze, a new market. Since then newspapers have rushed to make their publishing digital, e-books have been revolutionised. Give it a few more years before the iPad’s and the PC Tablets alternatives could maybe outdate the net books and e-readers at the same time. Apple may not have sold as many as they predicted but the benchmark has been set and all the rest shall follow.

Design prevails over all

Now I shall attempt to answer the original question. Apple produced another innovative product and made it a desirable through design. From the design of the product to the interface to the multi-touch functionality, PC tablets have been around forever but it was when Apple re-designed them that the world discovered them. If they were to give a name to this style of designing I would call it convenience. Everything inch of an ‘I’ product is made at the convenience of the user, with the iPod it was the scroll wheel then with the iPhone it was the ‘double tap’ to zoom in on text. Finally the iPad brought a whole new light on digital publishing with the way a simple touch can spring life into the pages of the e-book, making the latest e-readers look tacky. Once again design prevails over all other factors.

New competitor, new blackberry hype?

So a new market has been found, will this new innovation keep hold of the market like the others or will a worthy challenger be found? Samsung Galaxy Tab is already gaining market share quickly with it’s competitive pricing, Windows and Android are playing catch up and now even the Blackberry Playbook is about to be launched. I feel this has the potential to do as well as the blackberry smart phones which have been competing with the iPhone. Could this be the new blackberry hype? The iPad lacks Flash, USB and SD card slots, the Playbook doesn’t. The BB brought a new innovation to the game with the BBPin, I believe they can once again bring something new to the table in the world of PC Tablets.

References:

The iPad

http://www.amazon.co.uk/Apple-iPad-3G-WiFi-64GB/dp/B003P5AOBW/ref=sr_1_2?ie=UTF8&qid=1294264327&sr=8-2

Apple iPad to be released

http://www.guardian.co.uk/technology/2010/jan/20/apple-tablet-reader-launch

Blackberry Playbook

http://us.blackberry.com/playbook-tablet/

Wii holds on as Sony Moves and Microsoft Kinects.

Wii holds on as Sony Moves and Microsoft Kinects.

Ok, Christmas is just round the corner and we can all agree that games consoles will be on many Christmas lists but which one? Sony, Nintendo and Microsoft have all come out with the motion-sensor gaming devices/consoles all hoping to penetrate this new gaming market.

Microsoft Xbox 360 enters with Kinect.

Last to be launched but not the least. Attached to the Xbox 360 the Kinect has the whole package: motion-sensors which detect the whole human body, voice command and recognition, all this without a controller. Kinect has a bright future ahead as it has decided to take the next step, the removal of any controller but the accuracy of the device is playing to the Kinect’s disadvantage. Can this faulty motion detection system be the new Red Ring of Death?

Xbox have currently won over the hardcore gamers through it’s feature packed Xbox Live and exclusive games collection but they seem to have forgotten how they gained and held their reign at the top. The seems to be nothing to look forward to game-wise with the Kinect besides the basic games similar to what the Wii started out on like Wii Play and Wii Sports.

There’s still a lot of potential for this console but it is still in development…

Playstation 3 launches the Playstation Move

The Playstation 3 is the best console in terms of quality and performance that is out at the moment, I guess the same goes with the Playstation Move. The better version of the Wii but in black and is already capable of 3D content. Besides the fact that there is Blu-ray and potential 3D I won’t deny the fact that as an Xbox gamer; Sony has nearly won me over with their exclusive selection of games. No better way of bringing arcade than introducing Time Crisis to your collection maybe it is time Microsoft handed over the baton of exclusive content for hardcore gamers.

Can Wii hold the fort?

The lion of the jungle so show some respect, this baby brought everyone into this market and I’m pretty sure they can bring them back out. Now we seen their competitors coming up with superior products but this is Nintendo’s battlefield. I do marketing not technology so I will be bias by saying you can have the best product but it doesn’t guarantee success.

Choose your market.

Wii has already won over the non-gamers and families putting them into another market compared to the Xbox and the PS3, their positioning strategy is secure and they have attained status in their segment. Being the first is like having home advantage but could Microsoft have also attained this position but in the segment of hardcore gamers? The challenge for them now is making the hardcore gamers put down their controllers and go with the flow but why do that when they can buy a PS3 with the Move? It’s got better motion-controlled games and they may feel they are not ready to completely go without a controller. Sony is looking for a market to dominate but they have to choose, either use this opportunity to overtake the Kinect or go mainstream and head-to-head with the Wii? I feel it would be one heck of challenge to try eating both sides of the cake at the same time and it is said the worst place to be in a market is in the middle.

Will Sony make the right Move?

It is Sony’s turn to make a ‘Move’ and whoever they decide to challenge will have a big problem to address but I predict Sony will try to please everyone which I seem they will fall short. I see the Kinect adding a controller to the bundle until it is ready to go hands-free which means a lot of catch up and maybe a few new games would be nice. Wii needs to hold on to its loyal customers and listen to them carefully which is what they do best. I see Nintendo playing it cool as their target market won't bother to look into the Wii's flawed specs unlike the hardcore techies who will realize how amazing the Move is leaving the Kinect to struggle hold on to it's market share. Let the best marketing win.

The T-Mobile Welcome Back

What a great idea, what a great advert campaign. You know you have made a decent advert when it gets everyone smiling again, who can deny that is a true piece of art. It may have caused ‘some’ nuisances to people in a rush at the airport but from my bedroom chair it got me humming and I couldn’t resist clicking replay again and again.

This perfectly reflects T-mobile’s tagline ‘Life’s for sharing’ as most people would have loved to be there to share the moment with these talented, instrument-less musicians. The Liverpool Street T-mobile dance as well was followed by the Silent Flash Mobbing event which involved random people meeting up at Liverpool Street to perform their dance routines whilst listening to their own music with their headphones. This just shows the creative impact ‘Life’s for Sharing’ ads have had in the U.K. Nice job T-mobile.

Will HMV survive despite the weather conditions?

Current Situation

Go back a week HMV Group – owners of Waterstones and HMV shares dropped by 17%. Sales have been declining for years and for some reason I am not surprised, it was pretty evitable. The barrier of entry based on Porter’s Five forces is very low, anyone can buy a box of CDs and sell it, it is even easier for a major supermarket to buy a crate of CDs and sell them at a competitive price compared to HMV. Yes, they should have saw it coming when Tesco and Co. decided on their mission of world dominance which included expanding into every market possible including entertainment products.

Taking a Nap during the Online shopping phenomenon?

So where were HMV and Waterstones when Amazon and Play.com were shipping out first and second-hand books on the internet cutting out the middle man retailer? A wise man, Keith Bowman, equity analyst at Hargreaves Lansdown, said HMV was "paying the price for failing to embrace the internet much sooner". Damn right, they must have thought they were out scott-free when Zavvi went down but it just meant they were next, hopefully this won’t be Woolworths all over again.

Last Hope

With supermarkets and online retailers breathing down HMV Group’s necks what is the plan? Let’s be fair, the supermarkets are not a real threat except for best-sellers where competitive pricing is a match-winner as their product range is too limited. It just leaves the online retailers where I feel the battle on that front is already lost unless they somehow pull a differentiation strategy out their backsides and re-position themselves thoroughly back into the market.

But all is not lost. The acquisition of MAMA Group has opened a new door into the fast-growing live music market, already six of the high profiled music festivals this year were owned by HMV so that’s a good start. The retail store market is still there for the taking even though the weather conditions are having an impact. With effective marketing you may not be able to lure shoppers out of their desktop chairs but you can make an active shopper passing-by come take a peak. This may involve taking a leaf of out Zara’s geographical marketing strategy book which is just being at the right place at the right time and a lot of sales promotion. Customer loyalty is another major factor concerning the retail stores which can be received through improved customer service and effective direct marketing. HMVdigital is necessary but will probably still drown under iTunes dominance though if Waterstones can headstart the e-book uprise then maybe this organisation won’t get hit by Marketing Myopia again.