LIFESTYLES & NEW PRODUCT DEVELOPMENT
Aleksey Narko
Student’s id: 57830
Project 1: Comparison of the 2 products

iPhone 5C ...
From the point of view of psychology iPhone 5C satisfies customers’ social and esteem needs.
iPhone, as most of the smartp...
such as CEOs, doctors and lawyers.9 5C model of iPhone is oriented to Middle and Working
class. Introducing this model, Ap...
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iPhone 5C VS Tesla Model S

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Product comparison and analysis of potential buyers in terms of their (1) psychological, (2) personal (3) social and (4) cultural profiles.
Lifestyles and new product development class in Warsaw School of Economics by Aleksey Narko

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iPhone 5C VS Tesla Model S

  1. 1. LIFESTYLES & NEW PRODUCT DEVELOPMENT Aleksey Narko Student’s id: 57830 Project 1: Comparison of the 2 products iPhone 5C VS Tesla Model S iPhone 5C1 Tesla Model S2 For the comparison of the products I have chosen two absolutely different masterpieces of 2 American brands: Apple and Tesla Motors. Both of the products were released in 2013: Tesla model S in June and iPhone 5C in September. “Beautifully, unapologetically plastic”3 iPhone 5C is positioned as mid high-end smartphone and is an “intermediary” between the older model 5 and the more premium one 5S. It is positioned as a relatively cheap choice for Apple fans choosing between the old models and 5S as well as a new competitor for Android devices. Tesla model S is a second model from Tesla Motors, after a successful Tesla Roadster, this vehicle is powered by lithium-ion batteries and positioned as being eco-friendly, comfortable and premium vehicle for everyday driving. Being one of the many electric vehicles at the car market Tesla has definitely taken a big share of the industry by fighting with stereotypes of the customers, thinking that electric cars are small, expensive and even dangerous. 1 Image taken from: http://www.techradar.com/reviews/phones/mobile-phones/iphone-5c-1179311/review Image taken from: http://sourcefed.com/how-a-tesla-model-s-is-made/ 3 TIMETech Review: http://techland.time.com/2013/09/18/review-apples-iphone-5s-iphone-5c-and-ios-7/ 2
  2. 2. From the point of view of psychology iPhone 5C satisfies customers’ social and esteem needs. iPhone, as most of the smartphones nowadays is made for information sharing: talking with others, sending sms, social networks like Facebook, Twitter, Instagram, sending emails. iPhone is the device that most of the young people would like to have. From the beginning of iPhone sales these phones where different than the majority of other devices. The person who had an iPhone was accepted by others, because he had something that others wanted too. Almost 7 years have passed since the launch of the first iPhone, but the image of the iPhone hasn’t changed. iPhone is also the product which causes respect. Because of its price it is not available to everyone and if you possess this device it means that you already accomplished something in life. Tesla Model S satisfies several needs of the potential buyers including safety, social and self-esteem. According to the producer it is “The Safest Car in America”4. A potential Tesla buyer will definitely collect many jealous views from the people around while driving this vehicle because of its uniqueness and beauty. He or she can also be respected only for the fact of driving a car which doesn’t need any petrol and being different than the mainstream car buyer. The car of the premium class like this is also showing the status of its owner. The personal profile of iPhone 5C potential buyer is as follows: it is mainly a young person (less than 30), a bit more price-sensitive compared to the 5S model buyers, which likes new technologies. Also the buyer of the new iPhone model is more open-minded and is not afraid to look childish5 with a colorful device in his hands compared to the users of other iPhone models, which tend to look more classical and even posh. Some percentage of the potential buyers of iPhone 5C model would buy this model to see ideal self6 as a creative person, who breaks the stereotypes and “thinks differently”.5C buyers are both men and women. Tesla potential Model S buyer is a person who likes the comfort of the fuel-engine cars, but wants to be eco-friendly and caring about environment. He or she is an older person who has enough money (model S base price is over 60000$) to afford being eco7. This person may also be a risk-taker in order a product which hasn’t become a mainstream yet and is relatively new. He also takes care about his safety and doesn’t buy generic products, which quality is questionable. These people care about environment and want to be economical (according to the producers Model S can help save the owner up to $8,000 over five years in fuel costs alone8). Tesla buyers are usually men, who, in most of the cases tend to be more risk prone in buying such products. When it comes to the social profile of Tesla Model S potential buyers they tend to buy this model instead of Mercedes or BMW models, which are usually bought by the Lower-Upper Class and Upper-Middle Class which represent college graduates and managers, as well as professionals 4 Tesla Motors Webpage http://www.teslamotors.com/ iPhone 5C review http://www.techradar.com/reviews/phones/mobile-phones/iphone-5c-1179311/review 6 Consumer Behavior: How People Make Buying Decisions https://new.edu/resources/consumer-behavior-howpeople-make-buying-decisions 7,8 Tesla Model S facts http://www.teslamotors.com/models/facts 5
  3. 3. such as CEOs, doctors and lawyers.9 5C model of iPhone is oriented to Middle and Working class. Introducing this model, Apple was trying to differentiate its premium line of devices by the “lower echelon” ones10. Culture Factor. The potential buyer of iPhone 5C, mainly belongs to school and college student subculture. It may also be a young professional designer, searching for a creative device to feel different. This model, from my point of view, tends to be more popular in the countries where individualism is more powerful, like in the USA and UK, due to the fact that this model is standing out of the crowd by being colorful and not black, grey or white like most of the smartphones nowadays. Tesla Model S will also be more popular among people, who live in countries with more Individualistic cultures due to the fact that the car still can be seen at the roads very rarely. Tesla Motors will definitely be successful in countries with low uncertainty avoidance, where people are open to change and have long-term orientation, tend to save money, think about their status and self-actualization plays an important role11. To sum up it can be seen from the facts, mentioned above that it is not surprising that both producers, Tesla and Apple, originate from US and are very successful at this market. It is also visible that, although, two of these products are completely different, the marketers of these firms are using very similar or even same strategies to attract the customer. The companies have lots of connections and may even become one corporation in the near future.12 Bibliography: Hofstede G.,Hofstede J.G. Dimensions of national Cultures Available from:http://www.geerthofstede.com/dimensions-of-national-cultures Leo, Cheryl and Bennett, Rebekah and Hartel, Charmine E. J. (2005) Cross-Cultural Differences in Consumer Decision-Making Styles. Cross Cultural Management, 12(3). pp. 32-62.Available from: http://eprints.qut.edu.au/13244/1/13244a.pdf Macrumours.Iphone 5C.What’s new.Available from: http://www.macrumors.com/roundup/iphone-5c/ Tanner F.,Raymond M. Principles of Marketing, Chapter 3 Flat World Knowledge Available from: http://catalog.flatworldknowledge.com/bookhub/reader/2030 9, 10 Social Classes and Buying Patterns in the US. https://new.edu/resources/consumer-behavior-how-peoplemake-buying-decisions 11 Hofstede’s cultural dimensions http://www.mindtools.com/pages/article/newLDR_66.htm 12 Forbes article http://www.forbes.com/sites/jimgorzelany/2013/10/28/tesla-hires-apple-hardware-vp-could-anicar-be-coming/

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