Product Differentiation

Through product differentiation, a firm plans to attract more consumers. One such example of product differentiation in today’s market is the Ipad, from Apple. Though many question the difference between this product and its recent ancestor, the Ipod, Apple hopes that the unique features will capture a whole new line of customers. This video presentation from Apple describes all of the features unique to the Ipad.

Though Apple has formulated many explanations as to how the Ipad is different from an Ipod, the following are three of its most widely advertised features [1]:

• Safari: The 9.7” multi-touch display allows for easier viewing while browsing.
• App Store: The Ipad is compatible with nearly 140,000 pre-existing apps from the current Apple store.
• Ibooks store: This feature, unique to the Ipad, allows for readers to download and read magazines instantly.

Apple has positioned the Ipad as a new genre of technology between that of a smart phone and a laptop. The intent is that the Ipad will attract gamers, readers, Ipod owners, and personal computer owners. With Mac products, people are looking for quality, high value, in a top-of-the-range product. Because Apple differentiates through innovation, consumers feel they are “in” and that they are buying the new, high-fashion product.

As for our personal analysis, we feel the Ipad is merely an overpriced, oversized Ipod with little potential to succeed. Though Apple has taken marginal steps to differentiate the Ipad, we do not feel these differences will be widely realized or appreciated by consumers.

[1] New York Times, January 27th, 2010

This blog post was written by Stephanie Evans, John Haywood, Camille Pereda and Carla Wells