Product Differentiation: Case study on Samsung s3 vs Iphone 5

I must congratulate the Iphone for being market leaders for quite some time; however they made the ‘Nokia mistake’, and relied on customer loyalty. Samsung is currently beating the Iphone 5, and has reported making a 76% fourth-quarter profit rise in Smartphone sales (Lee, 2013, par 1).  

I love mobile phones- this is no secret; if you know me well enough, then you know that I have upgraded my phone to the latest mobile since I was 13 years of age.

The blackberry was the first mobile that allowed users  to check their e-mail on their 

phone. This was completely new. However, with the increase research in technology, the Iphone was able to defeat Nokia’s loyal customers. For years, Nokia had been conducting market research on whether or not people would change their devise, and remained strong as market leaders. But, the Iphone and Samsung were able to break the long legacy Nokia had. Why? Well, I strongly believe there’s no such thing as ‘brand loyalty’ when it comes to mobiles. When there are more than several competitors, it's about how your differentiation your product or services.  I, like many marketers argue that it’s all about product differentiation, when it comes to mobiles. I know a salesman would argue, you are selling the idea not the product, I beg to differ, especially in the mobile market. 

There are so many competitors, and in a case where there are a lot of competitors, research into differentiation is very important; by offering something more than your competitor you will come upfront. Consumers weight the value, cost and benefits of each product. A couple of years back, the Iphone was a revolution, because it differentiated itself so much from every other phone on the market. Nokia’s winning streak was broken- they had to partner up with Microsoft because they were not researching into the idea of computerising mobiles.

Currently, I am not surprised Samsung is beating the Iphone 5, and the developers at Apple shouldn’t be either! Apple’s Iphone broke the Nokia chain; however Samsung has shown how it is done. I myself cannot wait until I get my own Samsung s3. In terms of pure marketing compaigns, the Iphone5 is a lot strong, however as a commerce major, I've come to realise that the Samsung offers more than the Iphone 5- this can be viewed by the following youtube clip. Now I've researched many clips to avoid bias. I also looked for independent clips. 

I do not own a Samsung s3 yet, but I will soon! 

What do you think, is product differentiation important in the mobile industry? 

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Reference 

Lee, M. 2013 ; Samsung's profit skyrise 76%' [online] Available from 

http://www.theaustralian.com.au/business/wall-street-journal/samsungs-profit-skyrockets-76-pc/story-fnay3ubk-1226563227320 (Accessed 28/1/13)