Segmentation is the key to success of any huge businesses. Segmentation enables meet the needs and wants of a particular group of potential buyers effectively, which helps the business acquire more profit and increase its sales (Kerin & Hartley, 2017). The segmented groups of buyers often have similar consumption characteristics and behaviors. Apple has been changing its segmentation strategies over the years. Apple has placed focus on its product production. Apple has recently adopted the Apple Product Matrix strategy. The strategy focuses on the product in the market and it involves developing two general types of apple products that meet the needs of two market segments, consumers and the professional sector. Offering a single product has proved not to fit into a particular market segment. Thus, Apple places its focus on different products and customer segment unlike other companies.
The segmentation strategy of Kindle Fire is product differentiation. This involves using different marketing actions like product features and advertising so as to convince customers to see the product as being better than the other competitive products. The differences include physical and non-physical features. Kindle Fire is easily available on any platform for consumers. The product has been made to fit all market segments through production of different and exclusively best services for consumers. Additionally, Kindle Fire has its focus on the price unlike the Apple Ipad. The price of Kindle Fire is lower than that of an Apple Ipad. Kindle Fire aims at meeting the consumers’ needs with the lower costs and gaining profit in return. It is among the cheaply priced tablets in the market today which provides an opportunity to meet the needs of different and several market segments. Kindle Fire uses the low price to attract more customers to buy their tablets which are costly in the Apple firm.
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Product positioning is a product’s place in the customer’s mind based on important attributes relative to the other competitive product. One positioning strategy used by Kindle Fire and Apple Ipad is differentiation positioning. This is where the products seek a less competitive market niche in which to locate their brand. Kindle Fire developed this approach of product positioning by lowering their price so as to be less competitive. They also incorporate this approach so as to acquire new customers, sales and maximum profits. Kindle Fire needed less competition from Apple Ipad, which is pricey and only targets a specific market group or segment. The Apple Ipad however, highly priced their products to fit a particular group of consumers who can afford the product. This was aimed at making it look more effective and worth in the eyes of the consumers. The higher and lower price of the products is one of the positioning strategies of the two competing products.
Head-to-head positioning is another strategy that the products use to position their products in the market. Head-to-head positioning involves competing directly with competitors on similar product attributes in the same target market. Both Kindle Fire and Apple Ipad are tablets. This is what makes them similar in the market place. Consumers understand that both products are tablets but with different features and prices. The tablets are differently branded and with different prices which distinguish them significantly. Kindle Fire is a product from Amazon while Apple Ipad is an Apple firm product. The two products therefore, use the same product attribute, which is a tablet, to compete in the same target market.
Reference
Kerin, R.A., & Hartley, S.W. (2017). Marketing: The Core . McGraw-Hill Education
