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  • Essay / Marketing and Competitive Strategy: Motorola...

    Recently, Motorola, the former mobile phone giant, launched a marketing campaign encouraging loyal Apple customers to buy its Moto Z instead of upgrading their iPhones to version 7 (Kulp). Motorola designs the Moto Z as the comparative object of the iPhone in order to be able to offer the great innovation: Moto Mods to its target audiences. Moto Mods are the Moto Z accessories including projector, speaker and power supply which attract considerable attention from Apple (Linaria) fans. As a result, this marketing campaign can be identified as a differentiation strategy and competitive strategy aimed at showcasing product quality and innovation against the leading company Apple in the mobile phone market. However, Carmine Gallo demonstrates that Apple's greatest success factor is the insane loyalty of its customers (2). Apple manages to retain this insane customer base thanks to the strong sympathy, reliability and quality that its products such as the iPhone (Gallo 9) underline. In this case, Motorola is targeting loyal Apple customers because it believes they can change customer decisions through the appeal of new features that the iPhone cannot offer. However, the Motorola campaign did not affect customers' desire to purchase the iPhone 7. The effectiveness of customer retention shows a negative correlation (Chandrasekaran et al. 161). He determines that it is difficult for Motorola to successfully influence Apple's loyal customers to change their purchasing behaviors when Apple is significantly building customer loyalty. Unfortunately, according to Gallo's illustration, Apple can be recognized as the most successful player in customer loyalty in the world (4). As Miklos Sarvary suggests, it is best to target a market segment that is sufficiently different from that of competitors, in order to ensure the competitiveness of the marketing strategy. Consistency is the most important aspect associated with branding development (Haynes, Lackman, and Guskey 289). He determines that Motorola's marketing strategy must be consistent with its brand image of recent years in order to benefit the image of its new products. However, the brand images associated with Apple and Motorola are very different. According to Apple, it is the most “cool”, “fashionable” and “valuable” brand in the global mobile phone industry (Gallo 2). In contrast, Motorola's long-term brand image is "traditional", "commercial", and "high quality for business" (Elkin 4). However, Luca Petruzzellis believes that Motorola has a weak brand effect in attracting consumer purchase compared to Apple (627). As a result, on the one hand, Motorola develops its marketing strategy taking into account that its brand image is as strong as Apple's in order to be able to successfully attract the attention of Apple's loyal customers. On the other hand, the actual performance of the Italian market indicates that Motorola's brand image is significantly weaker than that of Apple. These two scenes confirm that Motorola is failing to achieve the consistency associated with its marketing strategy and brand.