Apple is developing a lower-end iPhone to strengthen its position against Samsung.
As part of our partnership with Marketing magazine we spark debate amongst senior members of The Marketing Society. This week we ask – Is it damaging for premium brands to introduce cheaper types of products?
NO – KRISTOF FAHY, CHIEF MARKETING OFFICER, WILLIAM HILL
Apart from the pure luxury brands, you would hope that most well-run brands could introduce cheaper products without compromising their values or standards.
On a BA flight, there are four different experiences, usually separated by a curtain, within the same metal tube. Yet, they all work with each other. It’s a distinction of how much you want to pay. A low-end iPhone will probably be as good as an iPhone 2.
More people being able to afford an iPhone won’t damage the brand, and could improve the iPhone apps eco-system by bringing greater distribution opportunities for developers.
Brands should be able to stretch their offer, as long as they remain true to what is at their core.
NO – TRACEY FOLLOWS, CHIEF STRATEGY OFFICER AND EXECUTIVE PARTNER, JWT LONDON
Not if you have a high-level product you can keep at a safe distance from the low-cost entry-level product, and as long as there are distinct targets.
In the telecommunications sector, innovation moves so quickly that a significant distance can be maintained, so that the high end always stays high end, and that will probably be the case for the extended Apple portfolio.
Conversely, the Waitrose Essential line doesn’t count here. That was still available only via the premium experience of Waitrose: it was all just to make the same Waitrose shopper feel less guilty about where they shopped.
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Posted: January 24th, 2013 | Author: admin | Filed under: marketing forum | Tags: apple, Bloom, Daryl Fielding, Daryl Fielding Consultants, ED HAYES, JWT, Kristof Fahy, marketing forum, tracey follows, William Hill | Leave a Comment »