A (5C)olourful Phenomenon: Marketing Genius or Positioning Failure? [Comm 296 Marketing Blog Post 3]

Tech giant Apple released two new phones earlier in September, the 5c and the 5s, aimed at different target markets in various aspects of social demography and lifestyles. The 5c model, with it’s intricate plastic redesign and emphasis on colour, lags behind the more advanced unit (5s) in sales by a nearly 1:2 ratio. Apple reported 64% of all mobile sales are coming from the 5s, while only 27% from the 5c, and the other 9% being filled with the antique 4s. (While the 5 has been taken off shelves)

While speculations have been rousing about Apple’s approach to marketing this new device, many are praising Apple’s launch of the 5c as pure genius. Though the device itself might not be selling well, it serves as a comparison product that boosts the image of the higher end model and projects ‘high quality’ all over the gold casing of the 5s. The 5c is commonly perceived as a copy of the iPhone 5 with a more colorful case, but what consumers don’t realize the fact that this perception will in fact improve the sales of the 5s.The improved quality and higher price point of the 5s gives consumers a sense of desire and want for something that is in high demand and low supply.

 

Others say that the original intention for the 5c was for a global Asian market place take-over; thus naming the phone 5c (5china). But if this was the case, the tech company would’ve been hugely disappointed by results from the Asian market as demand for the 5c dropped significantly while sales for the 5s sky-rocketed.

Regardless of the purpose, Apple is trying hard to implement new marketing tactics to bring the spotlight back to all the bright colours that was fading away too quickly. By reinventing the marketing campaign, Apple decides to re-brand the phone into a device that speaks diversity and integration through the use of video ads seen on their website and social media outlets:

“Designed Together” – New iPhone 5c Software/Hardware Integration Ad

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“Greetings” – New iPhone 5c Diversity Ad

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In addition, strategic positioning of print ads on city landmarks allow the company’s creative design to shine through to potential consumers. They are choosing to reintroduce the product and educate people into the benefits of the lower-cost, more personable device. A price cut from popular retailers such as Wireless Wave, Walmart, Verizon, and Best Buy also illustrate Apple’s intention to reposition the phone as flagship device that will pivot the price-war with their competitors.

 

Sources:

http://www.cnbc.com/id/101110056

http://appadvice.com/appnn/2013/10/apples-latest-billboard-campaign-focuses-on-its-colorful-iphone-5c

http://www.walmart.com/ip/Apple-iPhone-5c-for-Verizon-AT-T-and-Sprint-Prices-Based-on-Eligible-Upgrade-or-New-2-Year-Contract/20923793

http://www.pcmag.com/article2/0,2817,2425302,00.asp

17. October 2013 by Charlie Shi
Categories: Commerce 296 - Introduction to Marketing | Leave a comment

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