Question

Describe the segmentation strategy of Kindle Fire and Apple Ipad. Analyze the different positioning strategies of these two competing products.

Answer 1

Kindle Fire focuses on customers who have good purchasing power as well as enough time to read books. This group of market is classified as the silent generation, where about 59% of this group uses internet and a smaller percentage of this uses social media. Further, this group can be divided to smaller groups based on the books read per year. Further targeting can be done based on the number of books read based on the level of education.

Apple uses demographic and psychographic segmentation to reach their customer base. Its demographic segmentation is based on age which for iPad is mostly 15-50 years. And psychographic segmentation moves towards the customer attitude towards culture. Apple always tends to engage in premium price strategy. They also use geographic trageting where more emphasis is placed on urban people.

The positioning of Amazon Kindle Fire needs to reflect values shared by its target customers. For getting the correct e-books advertised to this target market, their preferences for books should be closely analysed. Like if these people are given the option of shopping for e-books, they would search for books they're interested in, and using this information appropriate advertisements related to their search can be sent to them. These advertisements should give the customers a good deal in purchase by which they would be more interested and willing to purchase.

Apple positions its new iPads everyone with more versatile, convenient, value added devices comfortable for professional and personal use. The brand positioning of Apple iPad is so much efficient that it makes it very difficult for its competitors in the market.