September 21, 2012.
The day that Apple and its fans have eagerly awaited for nearly a year. For what? The iPhone 5, the phone that would break all previous sales records of both the iPhone series and the rest of smartphone market. However, in the initial weekend only 5 million iPhone 5 were sold; a far cry from the 6-10 million proposed by some analysts. What was the crucial piece of information the analysts overlooked? Marketing done by Samsung. This type of marketing accomplished two objectives. First of all, despite what Samsung, claims, the ads stereotype iPhone users to be nerdy, old, or folks with no technological skills whatsoever. Secondly, it promoted the GS3 in both printed and commercial ads through heavy comparison with the iPhone 5.
The advertising methods utilized by Samsung in the ads were much like the ones the person from the video for the class 5 assessment showed. He stated that in order to gain market share in an industry that is dominated by a rival, a company should market their product in relation to the competitor’s product. In this ad, it systematically compares the iPhone and GS3 features, and shows how the GS3 has more features than the iPhone.
Overall, due to Samsung’s strategic marketing, not only did Apple lose some of its potential sales, but Samsung saw its GS3 sales rise as the iPhone was released. The outcome was much like a hypothetical Nash equilibrium in which Apple is competing against Samsung. As Apple did no advertising while Samsung did, Samsung gained sales and market share while Apple lost a bit of both. To conclude, this dilemma for Apple could have been avoided if Apple engaged in some of its own advertising by counterattacking Samsung’s.
References:
“Samsung Galaxy S3 Insults IPhone 5 (Again) in Facebook and YouTube Ads [PHOTOS and VIDEO].” Au.ibtimes.com. International Business Times, n.d. Web. 8 Oct. 2012. <http://au.ibtimes.com/articles/386181/20120920/samsung-galaxy-s3-vs-insults-iphone-5.htm>.
Photo Credits:
It Doesn’t Take A Genius. 2012. Photograph. Samsung. Gottabemobile.com. GottaBeMobile, 17 Sept. 2012. Web. 8 Oct. 2012. <http://www.gottabemobile.com/2012/09/17/it-doesnt-take-a-genius-samsung-goes-on-offensive-with-anti-iphone-5-campaign/>.