My friend Kalin has a blog, Most People’s Dream Camera, in which she recently introduced the Panasonic Lumix GF 2, the latest offering from the Japanese electronics maker. On her blog, she analyzed the marketing strategy used on the Panasonic website that has given it a competitive advantage over rival camera producers. Panasonic’s innovation with its “touch to focus and blur the background” feature is a major selling point that the company promotes through its youtube video. Besides explaining this unique feature, the video also highlights the camera’s other high quality functions.
I want to add my comments on the promotion strategy for the Panasonic Lumix GF 2 because I am also a fan of Panasonic. I come from Hong Kong, and have imbibed the cultural craze to follow Japanese fashion and technological trends. Japan is arguably the most popular country for producing technology; for this reason, it is enjoys a tremendous comparative advantage over other countries. China is the largest producer of technological products, but consumers still choose Japanese products despite having to pay a higher price because of “consumer decision rules” which stipulate the set of criteria consumers use, consciously or subconsciously, when selecting from among several alternatives. Based on price, Panasonic is more expensive than Chinese products, but consumers understand that you get what you pay for. Cameras are durable goods that people plan to use for long periods of time so it only makes sense to buy high quality, durable cameras with the newest technology. Consumers will seldom consider Chinese products because they are not durable and the quality is lower. Although Panasonic sets their prices higher, consumers will still stay with the company because of value. Consumers will buy products that they think are the best value. Through the strategy of promoting innovation and high quality, Panasonic meets consumer demands and confidence by also providing a warranty. I remember having bought a Panasonic cell phone from Japan and being able to send it for repairs at the Panasonic Service Centre in Hong Kong without charging me any extra since I was not in Japan when the phone broke. Great service as well as soliciting my feedback won my loyalty towards Panasonic products. Because the warranty is international and repair facilities are conveniently located so that I don’t need to send my cell phone to Japan for repairs, Panasonic has made it easy for customers to have a pleasant experience when customers need products repaired. I will definitely introduce Panasonic to my friends. The success of Panasonic is not only through promotion; rather, customer satisfaction I think is even more the reason why Panasonic is so popular despite their higher price.
