Soda Pop Apps:
Similarities and Differences
University of the People
Colas and smartphone apps are fundamentally different. Colas are present in the physical sense; it's something tangible. In contrast, smartphone apps live in the abstract; after all, you can't really see a program without something to execute or run it. But before we get carried away with philosophical banter, we should at least say that in terms of business, both are indeed real; very real and lucrative things.
First and foremost, we should see what these two are for most people. Coca-Cola, for example, is widely available for people to enjoy in many parts of the world. Apps like Netflix allows its users to access media content almost everywhere with a smartphone and a good connection. The similarity that the two have is that they are made to be consumed; Coke to satiate your sweet cravings and Netflix for entertainment. However, from certain marketing points of view, both are vastly different.
The availability of Colas and Smartphone apps differ slightly. As mentioned earlier, colas are more readily available. However, smartphone apps availability is somewhat limited to the population that have smartphones and even then, there are other factors to consider such as operating system (Android, iOS, etc.) and phone models (Apple's iPhone, Samsung Galaxy, etc.). Besides availability, the barriers of entry between colas and apps.
When it comes to attempts to establish themselves in their respective markets, the approach to doing so is different due to the competitiveness within that industry. Examining a hypothetical situation of a new company trying to enter the beverage industry, we can find that this industry might not be the easiest one to get in to. While there is a high portion of the population that drink colas, trying to establish your own brand would require significant capital investment. They would also need to have their own factory, develop their distribution systems, and create a marketing plan. This new soda company will face stiff competition because the soda market is mature. In order to be competitive, the new soda company needs to have a well-developed marketing plan that would differentiate themselves from what the bigger companies are offering.
The hypothetical soda company needs to have clearly defined what their competitive advantage is. Perhaps, they can offer their products at a cheaper price. This is the strategy that is used when supermarkets offer their own brands. For example, Safeway, a chain of local supermarkets in the United States, offer their own 'Select' brand for a lot cheaper compared to their competitors. Another way to gain an advantage would be to target specific market segments. A brand of soda that takes advantage of this is Mountain Dew through sponsoring skating and snow sports events called the Dew Tour ("About Dew Tour," n.d.). When it comes to distribution, the new soda company would likely have to start as a regional brand and then further expand. They must, however, be diligent in their marketing research so as to ascertain what their market likes. As we will see, the marketing processes that the fledgling cola company goes through is different from what a smartphone app developer might go through.
When it comes to smartphone apps, there are two major markets that are popular and is the go-to destination for many of the apps created these days: Apple's App Store and Google Play ("App Store," 2017). Each of these two marketplaces caters to users of the Apple iOS and Google Android. A new app developer would have to choose between developing for the Apple or Google platform or, depending on their programming skills, both. There are, of course, other platforms that an aspiring developer could develop for, but these two by far will allow your app to be discovered by more people than if you were to develop for BlackBerry.
Speaking from experience, one interesting thing about becoming a developer is that, comparatively, start-up costs are low. For instance, to develop an app for the iPhone, you would need an Apple Computer, pay $99 per year to become a registered developer, programming know-how (a good source is Udemy or if you're up to the challenge, the UoPeople Computer Science degree), and an idea (Apple Inc., n.d.). However, the low cost also makes it so that there is going to be plenty of competition. It's this competition that heavily influences how to market the apps.
When trying to market apps, there has been a new trend regarding the initial price. A smartphone user could open up their device's marketplace and see a plethora of free to use apps. What typically happens is that these apps offer a "freemium", in-app purchases that further enhance the app's features. That could mean in-game resources available in exchange for real money or for apps like Uber, getting a ride from an Uber contractor. The app developer would then need to advertise their app and do so creatively.
Companies like Criteo offers advertising services that take advantage of social media websites like Facebook and Instagram ("Maximize Sales," n.d.). But the app developer should be creative in this endeavor. For instance, to get more users, Tinder, a dating app, sponsored college parties (Tsang, 2018). The app industry allows for a little bit more creativity.
These two industries, colas and apps, are pretty different. One has high overhead, the other low. One is widely available, the other needs certain implements to become available. Overall, this shows that with a good marketing scheme and creativity, venturing out into these industries is not only possible, but could also be potentially lucrative.
Reference:
App Store vs Google Play: Stores in Numbers – Masters blog – Medium. (2017, May 23). Retrieved July 16, 2018, from https://medium.com/master-of-code-global/app-store-vs-google-play-stores-in-numbers-fd5ba020c195
Maximize sales with Criteo Dynamic Retargeting. (n.d.). Retrieved July 16, 2018, from www.criteo.com/retargeting
Tsang, M. (2018, January 26). Guerrilla Marketing Tactics – 18 Top Case Studies and Examples (Updated!). Retrieved July 16, 2018, from https://www.referralcandy.com/blog/guerrilla-marketing-tactics/
About Dew Tour. (n.d.). Retrieved July 16, 2018, from https://www.dewtour.com/about/
Apple Inc. (n.d.). Purchase and Activation. Retrieved July 16, 2018, from https://developer.apple.com/support/purchase-activation/