January 16, 2010

Iphone & Google Nexus One battle!

Firstly both the products would garner significant share of the smart phone market that is predicted to grow from the present 15 percent to 65 percent of the market very soon. The size of the market would not be a limiting factor to achieve the targeted sales volume, but the challenges in achieving marketing objectives would be formidable.

Since marketing thrives on newness of an offer therefore Google Next 1 would surely attract a segment of Iphone users who have not yet become diehard loyal fans of it. Some 25-65 percent current users of iphone may jump onto Google bandwagon. This is understandable phenomenon. But studies have shown that the customers may return to iphone if they do not find a major discernable difference in the new offer. Most divorced couples tend to long for the first companion once they have lived with the new one for a brief period. Therefore Google has to keep the Nexus One new for quite a period. This would be huge challenge to the marketing team while rolling out into the global markets.

If Google followed Iphone style market launch it would amount to conceding the race before the finishing line. Google has to design a new rollout strategy that could express value for its target segments. On the other hand iphone would have to resist altering its product significantly in next 18 months. Any noticeable change in iphone offer could convey a wrong signal to the market and lead to dilution of branding in the market. History of marketing is never relevant for the future of marketing but still there are many important lessons in it for the marketing warriors.

This fight certainly would be bloody and long. And the chances are that both the warriors would emerge unscathed and robust from it. But in the process personal computer making companies may be hit very badly. The pc may be reduced to its desktop avatar and the laptop may get eliminated from the market. Well, as they say when giants fight, it is the grass that takes the brunt. PC has to evolve completely into some new form to remain useful as an internet station.

Did someone say something about Blackberry? Uh!

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