5.3
Differentiation
In marketing strategy differentiation means companies produce their
products in a more distinctive way than their competitors, and competitors cannot
duplicate the different easily and help the company to gain competitive advantage.
Now in this society, a lot of brands and products compete with one another with
similar products that uses the same function and how the way the product is use.
Differentiation is essential to stand out more than competitors. Hence, most of the
top companies in the industry uses differentiation strategy (Bhasin, n.d.).
Differentiation in products nowadays is very important because most of the
companies is selling the same products and services that have the similar function
for the product, for example refrigerator, vacuum cleaner and kettle, there is a lot
of companies that producing all this household appliances. So, in order to get the
public attention companies need to come out with some uniqueness in their
products that benefit and meet targeted customer needs, it can also help to improve
in their competitive advantage against their rival in the same industry. Thus,
differentiation is necessary to attract more buyers to purchase the products and
can sold at a higher price that buyers can afford and think it is worth to sell at high
price, compare to their rivalry that did not have differentiation in their products.
Apple is a well-known company for their high technology on their electronic
devices, accessories and innovation of new functions, looks in their products. The
product that Apple innovate is household appliances and the competitors is
Samsung, Panasonic, Electrolux etc. As compared to the competitors the product
has two different functions. For the first function, there is an apps for the product,
while logging in the application user can then use their mobile devices to control
the household appliances such as turning on or off the machine and some basic
setting of the product, but the application is exclusively only in iOS store. As almost
all of the household appliances did not have this function yet so far. This function
can save buyers time as they do not need to work to the household appliances for
minor things like forgot to switch off the appliances. The second function is input
Siri in the household appliances, as the whole world know that Apple have huge
success input Siri in their mobile devices which is iPhones. And Apple can now do
the same things input Siri in the household appliances. This function for the users
because when both of user hand is occupied or dirty they can avoid pressing the
buttons and use their voice to control the product on what they wanted to do. And
of now in the household appliances industry no companies have voice enable in
their products yet. With both of this differentiation Apple can gain competitive
advantage against rivalry industry that sell the similar products.
5.4
Positioning
Positioning strategy is the ability to have a impact on consumer awareness
base on the competitive advantage and consumer needs, it allow consumer to
know the quality and pricing level of the product brands, for example if the product
is in high to low quality and high to low price, the main purpose of the market
positioning is to build image for the product so that more people will get aware and
think differently of the product (Corporate Finance Institute, n.d.).
The importance of the positioning in market is to let people know where the
branding of the product stand, comparing with their competitors in the industry. And
it can let the consumer know their needs in term of pricing and quality. For example,
if a company position their brand in higher quality mean the company uses top
material to produce their product. And consumer prefer good quality then other
criteria they will go for the top-quality branding. If consumer wish to save more
money and neglected the quality they will go for the cheapest branding.
For the Apple household appliances as it has unique differentiation like
control with mobile devices and Siri input in the product, that most of the
competitors did not have, it is also convivence for people that using Apple
household appliances. This product is in a higher price and higher quality section
as compared to their competitors. Most of the people know that Apple Inc is
producing high pricing and high quality for their product. And a lot of people still
support Apple product no matter how expensive their product is because of their
great quality. Therefore, Apple household is also in the top when come to
household appliances.
High Quality
Low Price
High Price
Low Quality
It is quite obvious that the top brands like Apple, Samsung and LG that their
product is in a high quality and pricing side. And product produce by Electrolux and
KitchenAid is in a high quality at a lower price. Tefal is on the low quality, Panasonic
and Philips is near the middle range in term of pricing and quality.