The Apple iPhone 5S and 5C models went on sale last month, and by all accounts, it was a very successful launch. More than nine million units were sold in the first three days. What made this launch interesting to me was that Apple was introducing two different models, ostensibly to appeal to different buyers. However, people only (generally) need one smartphone and there was a possibility that potential buyers of the 5S would buy the lower-priced 5C instead. Apple didn’t disclose the individual sales figures, but it appears both did well and the 5S is bumping up against supply constraints.

The 5C costs less to produce than the current iPhone 5 model, it comes in a range of colors, and was designed to take advantage of the markets in Asia, so Apple did have some very compelling reasons to introduce that phone. But the risk of cannibalization was real, even for a company as adept at marketing as Apple. But so far, Apple seems to have avoided that fate.

But this brings us to a broader question. How can technology companies effectively bring to market different solutions that appeal to different buyer segments, specifically more cost-conscious or budget-constrained ones, without running the risk of cannibalizing sales from the higher-priced offerings? And conversely, how can they market effectively to the more budget-conscious segment without making it appear like they are simply providing the “lite” or “junior varsity” version of the premium solution?

More often than not, launching a new solution targeted at a different market segment doesn’t require creation of an entirely new piece product or methodology. It often just requires creative packaging and pricing. When that is the case, adherence to these principles becomes even more important, and you probably need to take them a step further. Unless you have a really compelling reason to do so, you shouldn’t go out of your way to promote it as being a new solution on your Web site or in your campaigns. If your solution has a reputation as being expensive and complicated, it might be worth specifically calling it out as a separate offer in all of your inbound and outbound marketing efforts. But if that isn’t the case, then taking a more subtle approach, at least initially, makes more sense.

Any small business knows that marketing expenditures are hard to justify. The most cost-effective marketing is an idea that can be spread by word-of-mouth. It can engage Facebook friends, Twitter followers, local press, and national media. YouTube videos made with smartphone cameras and cheap props can generate as much buzz as a $1 million TV ad campaign. Staging the campaign at the right time, in the right place, can also up your visibility.

Lately, I happened to find a commercial of Heineken called “Walk in the fridge” which is a great example. “Walk in the fridge” featured a group of girlfriends jumping up and down and shrieking when they see the hostess’ new walk-in closet. In another room, the men have their own moment when they see the host’s walk-in refrigerator lined with shelves of ice-cold Heineken. Heineken then grew the viral tail of the idea even longer. In 2010, it built a walk-in fridge that it took to beer festivals, allowing groups to parody the ad and upload their efforts to YouTube. The company also created a longer video showing guys installing walk-in fridge in an apartment, with the box extending outside the building with no visible means of support.

heineken

This is a great example of taking one winning idea and finding ways to keep it fresh over time. And costs are minimal when customers who are shooting and uploading their own videos produce much of the effort. The success of this advertisement lies on the audiences’ preexisting stereotypes on masculinity versus femininity. The female characters in the commercial are shown to express their exhilaration in sight of a closet filled with clothes and fashion products, suggesting that fashion and beauty products represent objects of femininity. On the other hand, the men in the video demonstrate an equal measure of excitement when coming across a walk-in fridge loaded with Heineken beer. Heineken is delivering its message very clearly: “Beer makes men as happy as women do when comes to clothes and fashion”.