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B2C Approaches 93

because of the guarantee it comes with, thereby giving it a
higher perceived value.

Being unique in the marketplace “creates” its own market.
Despite cutting back in more upscale product purchases,
many consumers are saving so that they can indulge in
unique experiences and more luxurious products.

Target Stores launched a compelling viral marketing video
on YouTube that reframes their brand and products to a
more economical value proposition. The theme of the upbeat
video was “a new day … new ways to save”.

The new commute – Bike $59.99
The new gym – Gym ball $11.88
The new movie night – DVD $13.00
The new barber shop – Clippers $14.99
The new family room – Tent $70.49.

The Apple iPhone is an example of this. On July 14, Apple
announced that it sold its one-millionth iPhone 3G, just three
days after its launch. By comparison, it took 74 days to sell
one million iPhones following the initial launch of the
product in 2007 and almost two years to achieve the incred-
ible milestone with iPod. The advance information of the
iPhone 3G had successfully convinced consumers the product
was unique. The prevailing economic cycle had little
relevancy.*

To adjust or not adjust pricing

A business must first assess its brand position and under-
stand the dynamics of a down economy and whether it is a
smart, long-term decision to adjust pricing.

* Source: Nicole Granese.