Copyright 2008 Dennis S. Vogel All rights reserved.
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Today I was involved in a discussion about the advisability if Dell Computers starting in another product category. Should Dell create a product to compete with Apple's iPod &/or iTunes?
Should I have even responded, considering my specialty is small business marketing, with an emphasis on retailing?
Small business owners can learn from my insights. Since retailers would probably offer an iPod competitor, these things (below) should be considered.
If anybody will try to compete against Apple, it'd be foolish to try it head-to-head. Apple has technology credibility, marketing money, enough media & public interest (whatever Apple does seems to be newsworthy) to grab publicity. A bit of an exaggeration: If Steve Jobs released an empty cardboard box as an innovative product, millions would be interested in it. So, Apple will probably beat any competitor in getting positive attention.
The clutter factor in mass media is hard to overcome. Even if Dell had just as much money to invest in publicity & marketing, Apple would break through the clutter more powerfully than Dell.
On an absolute basis, Dell could have a superior product, but more people may still accept Apple's competing product. Dell could be successful in making & marketing a product tailor-made for specific people & maybe for specific situations.
The product may be fit for general use, but the marketing could focus on using it in specific situations.
Dell could try to create a less expensive product with fewer features & benefits - scaled down. It may appeal to those who can't afford more expensive products. Others may not want or need a full-featured product.
Dell could try to create a more expensive product with more features & benefits - full-featured. It may appeal to those who expect more. A niche product could be more popular if it gave people something to brag about. If Dell starts now, the product could be ready by the time the global economy is strong.
Dell could try a full-featured product & a scaled down version. But its resources would be spread between them & may come up too short to break through the media clutter. A more focused - 1-product - approach would probably be more efficient & effective.
Dell could create a parity product & try to compete but would probably fail.
Whichever route it'd take, it'd still compete with Apple to some extent.
Besides the marketing & publicity message clutter, there's product clutter. Trying to market multiple products would add to & compete with the multitude of other products.
There's limited shelf/display space. There's limited "memory space". Even a well-capitalized company would probably be better off trying to get people to remember 1 product & its benefits instead of presenting 2 or more products (choices) & each of their benefits.
A competitive solution could be: Find a different niche.
Here are some issues to consider:
Determine which people would want something different than what Apple offers.
At what age level do people want the product AND can afford it?
What are the best methods, times & places to reach these people?
Example- Let's assume 12-years-old is earliest age when people have enough money & interest to buy the product. 1- They probably don't own a competing product. 2- They may want something different than what teenagers own.
They probably aspire to be like teenagers, but they may not want to be exactly like current teens - carbon copies. If they believe Dell's product is superior, it may help them feel more sophisticated, cooler & wiser than teenagers & adults.
Radio advertising probably wouldn't reach them while they're in school, so the message should be timed for earlier &/or later. Later may be a better option since they may be able to go to a store after school.
They may want a bigger - more visible - product. If visibility is a benefit, they may want multiple colored faceplates to match what they wear & differentiate from what others have. If they're concerned about the environment, they may want a smaller product without "wasteful" options.
It's vital to determine who wants a similar product & who wants something a little or totally different.
Find out what they can afford & when - do they earn enough money or would they use gift cards to purchase products?
The Chicken & Egg Issue- What else do they need to make the product useful? Do they have these already or will they buy these later? Can the main product & accessory options be economically & practically packaged together? With music, it'd be hard to establish a definitive package for millions of people, but gift cards or subscriptions could be included so people can build their play lists.
If I recall accurately, millions of CDs were purchased in Japan before CD players were available. Consumers had enough confidence to think they'd like the players & the players would be available soon enough.
I'm sure Dell can effectively compete with Apple. But should it? Would its resources be better invested in other products? How much money & time would Dell need to achieve success? Can Dell afford it? Can Dell afford not to do it?
Thank you for using my blog. Please let me know if I should clarify anything.
Copyright 2008 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/
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