Value Proposition of apple
The value proposition, or full brand positioning, can best be explained through an illustration known as the value proposition diagram, which answers the question "Why should I buy your brand?". (To better understand brand positioning, see Positioning and Differentiation). Included in the diagram are nine squares. Three of these squares represent "losing strategies" and are shown in red, five of the squares represent "winning strategies" and are shown in green, and one square represents marginal proposition and is shown in yellow.
Winning strategies show that the company has positioned and differentiated itself in a way that sets it apart from competitors. This can be described as offering "more for more", "more for the same", "less for much less", etc. Losing strategies to not accomplish this and usually offer less for more. Marginal proposition refers to the one cell in the center of the diagram in which the company offers the same benefits for the same amount of money.
In a recent class discussion regarding value proposition, Apple was introduced as an example. Apple is positioned in the "more for more" category of the value proposition diagram. Companies positioned in this way offer a higher quality product than competitors and in exchange, must charge a higher price to cover the costs. Many times, these companies are known for giving consumers a sense of prestige. Apple's products are priced higher than those of many competitors. In turn, they are associated with a sense of uniqueness, value, and the highest of quality. On the other hand, brands that offer less for much less are also successful. Southwest Airlines is known for its no-frills flights that are priced lower than competitors and offer fewer amenities.
A brand's value proposition depends on the market offering as well as the target market. In order to compete with a company such as Apple, competitors must offer a product that is positioned "more for the same" to prevent falling into marginal proposition.
In a recent class discussion regarding value proposition, Apple was introduced as an example. Apple is positioned in the "more for more" category of the value proposition diagram. Companies positioned in this way offer a higher quality product than competitors and in exchange, must charge a higher price to cover the costs. Many times, these companies are known for giving consumers a sense of prestige. Apple's products are priced higher than those of many competitors. In turn, they are associated with a sense of uniqueness, value, and the highest of quality. On the other hand, brands that offer less for much less are also successful. Southwest Airlines is known for its no-frills flights that are priced lower than competitors and offer fewer amenities.
A brand's value proposition depends on the market offering as well as the target market. In order to compete with a company such as Apple, competitors must offer a product that is positioned "more for the same" to prevent falling into marginal proposition.