This paper examines the marketing and promotional strategies employed by leading companies in the computer tablet industry. It analyzes how manufacturers use advertising channels, product differentiation, and distribution partnerships with telecommunications providers to build market share during the industry's growth phase. The paper profiles the approaches of Apple, Samsung, and Amazon — each pursuing distinct value propositions — while also considering why competitors such as Hewlett-Packard and Research in Motion failed to establish a foothold. Taken together, the analysis illustrates how strategic communication of product benefits, pricing, and unique features drives competitive success in the tablet market.
The computer tablet industry relies on two main approaches to promoting its products: focusing on product benefits and competing on price. Because the tablet industry is large and still expanding, manufacturers engage in extensive marketing across a number of channels. Conventional advertising through a variety of media outlets is widely used, including television commercials. This form of promotion typically emphasizes the utility consumers derive from the tablet. Advertisements usually depict users performing a wide variety of tasks effortlessly, in an attempt to communicate the device's benefits. Other media formats, such as print ads, tend to combine feature highlights with pricing information.
In communicating the benefits of the tablet, manufacturers must take care to differentiate it from other personal electronic devices. For example, a tablet is similar to a smartphone, yet the company must distinguish between the two in terms of functionality in order to convince the customer to purchase both (O'Reilly, 2012). Most companies also want to differentiate their tablets from their laptops, again by illustrating the unique features the tablet offers relative to these other devices. Clear product differentiation is essential to justifying a separate purchase decision in consumers' minds.
Distribution channels are a key factor in the promotion of tablets. Generally, tablets are sold alongside some form of data plan, which means tablet manufacturers must work closely with telecommunications companies to market their products. Because customers must purchase a data plan to accompany the tablet, this partnership dramatically increases the number of available points-of-sale. In addition, customers often have loyalty to a particular carrier. Samsung, for example, made a point of working with all major telecoms in the United States for its smartphones, whereas Apple initially launched exclusively with AT&T. This broader carrier strategy has contributed to Samsung achieving a greater market share than Apple in several segments today.
"Building market share during the growth phase"
"Distinct value propositions of top three competitors"
"Why HP and RIM failed in the tablet market"
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