Apple Brand Audit

Apple Brand Audit

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  Apple Brand Audit APPLEInc Submitted to: Sir Goher Raza Submitted by : Sumeet Raj & Mumal Khan 12/15/2012
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  Apple Brand Audit 2012 Executive Summary Since its foundation in 1976, Apple has grown from a small business selling computers into one of the most successful and valuable brands in the entire world. Consumers everywhere perceive the brand as being one of the very best because of their groundbreaking product lines, their successful marketing programs, and their ability to differentiate themselves among other competing brands. These elements and attributes are the core aspects that make up Apple’s brand equity. Apple has always been known for releasing innovative, user-friendly products that have become extremely popular in the market. They are a dominant force in the market for consumer electronics, and their merchandise is in extremely high demand. Secondly, their very successful marketing and distribution strategies are able create consumer perceptions that make Apple’s brand a highly reputable icon. Through these core elements and attributes, Apple as a brand has seen its value skyrocket over the years. By continuing to implement and improve on these successful programs and strategies, Apple’s brand equity will continue to grow and flourish in the future of the company. 2
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  Apple Brand Audit 2012 Introduction Brand Audit Brand audit is concerned with the behavioral and psychological nature of brand equity, and it will be discussed in terms of strength of a brand’s equity and its nature. So simply it is the examination of brand’s current position in industry compared to its competitors and the examination of its effectiveness, brand’s strategy, positioning, market position, consumer views, pops and pods etc. Objective and scope of the audit Brand perceptions often create a complex and elusive picture, but it’s crucial that you determine how your various audiences view your brand. The brand which we have taken is Apple, the main objective of this audit is to show that where the brand is currently stand. After the audit will be done we also come to know that whether the share of brand in market is increasing, decreasing or stable. It will also show that what are the strengths, weaknesses and opportunities for this brand, how much people know and like the brand. So after audit we can come to know about the overall market position of the Brand. Brand audit Apple Inc & its history The brand which we have taken is Apple, currently the top brand of the world. The point which is intriguing is that how Apple has maintained its equity worldwide. The innovative products of apple have enabled the company to be a global brand worldwide. Apple Computer, Inc., is a multinational corporation that creates consumer electronics, personal computers, computer software, and commercial servers, and is a digital distributor of media content. Apple's core product lines are the, I phone, I pad tablet pc, and I pod portable media players and Macintosh computer line. The founders are Steve jobs and Steve wozniak which created Apple Inc on 1st April 1976. Initially, Apple has just produced the personal computers for almost two decades. With the introduction of the successful iPod music player in 2001 and iTunes Music Store in 2003, Apple established itself as a leader in the consumer electronics and media sales industries, leading it to drop "Computer" from the company's name in 2007. The company is now also known for its iOS range of smart phone, media player, and tablet computer products that began with the iPhone, followed by the iPod Touch and then iPad. As of 2012, Apple is the largest publicly traded corporation in the world by market capitalization, with an estimated value of US$626 billion as of September 2012. Apple Inc's market cap is larger than that of Google and Microsoft combined. Apple's worldwide annual revenue in 2010 totaled US$65 billion, growing to US$127.8 billion in 2011 and $156 billion in 2012. 3
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  Apple Brand Audit 2012 Brand attributes Throughout the years Apple has maintained the high quality and innovation in their products, which make apple different and successful brand. Following are the attributes of apple which make apple world’s number 1 brand. 1. Stylish 2. Cool 3. Unique 4. Reliable operating system 5. Innovation 6. Intuitive 7. Retina display 8. Multi tasking 4
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  Apple Brand Audit 2012 Brand portfolio Apple includes different technological brands, with premium pricing strategy. All the brands are very successful in the market, especially the IPod, I phone, I pad, Mac book. Apple always focuses on innovation and new design and with the little time they launch new model in their brands to keep their brand on the top. Following are the products of Apple: •iphone 2G •Mac air book •iphone3 G •Mac book pro •iphone 3GS •Mac mini •iphone 4 •iphone 4S •iphone 5 Laptop/Pc smartphones ipod/ipad others •ipad •ipod •Mac OS •ipod nano •iMac •iPod Shuffle •Apple Tv •itouch 5
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  Apple Brand Audit 2012 Competitor Analysis Blackberry: Blackberry marketed their brand as sophisticated and the latest and savviest technology for networking. Blackberry has the reputation of being elite and positioned high within the industry; it is only fitting that they cater to and consistently revolve their advertisements around elite business types. Samsung: Samsung has managed to maintain its position among the elite in mobile technology. Samsung products are loaded with features that are generally sought out by technology lovers; Samsung places heavy focus on the features and specifications of their products in their commercials. Currently apple is the biggest competitor of Apple in smart phones and Ipad category. Dell: Dell has positioned itself in the market as a competitor to Apple with high affordability and is also user friendly. Dell’s marketing campaign has always been catered to families and everyone in it. Using the fact that their computers are more affordable than more expensive brands such as Apple, Dell focuses their advertisement campaign with an economical approach. So dell is the direct competitor of apple in laptop category. Android: Samsung’s success and large market share is in fact due to the latest craze for the Android operating system. The Android operating system is used in various different models with a few different vendors such as LG, Sony Ericsson, HTC, and Motorola. The advertisements for these models are all essentially sending out the same message as they are all trying to state their models are very advanced and on the cutting edge of technology. So it also the competitor of apple, because the other mobile companies offering handsets with android software installed. Microsoft: Another Direct Competitor to Apple would be Microsoft and their latest operating system, Windows Phone 7/8. The Windows operating system prides itself on being quick and that it will “get you in and out and back to life,” starting with the “Really?” campaign. The Windows phone advertisement campaign revolves around social life and activities Pops Pods Hardware and technology Operating system (OSX) Complete touch Exclusive Retail stores Completely based on applications Itunes Pricing strategy Innovative in trend makers Delegate touch screen Marketing strategies Powerful sound system Unique design 6
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  Apple Brand Audit 2012 Communications, pricing and distribution strategy of apple: Apple is also innovative and good in their communications; its communication has a unique style. As in the TV ads, print ads, and in online ads they don’t endorse the famous personalities and celebrities to promote their products Rather, Apple just sticks to a communications strategy that aims to relate to consumers how innovative, sleek, and reliable its products are compared to other competitors. Apple communication is simple, clear, minimalist and clever. Well of course when u have great products it is much easier to attract the customers, but nevertheless doing it with style and cleverness is very crucial, it boost sales and enhances the brand value too just like apple do so. One of the most communication strategies of Apple is the “I am a Mac, I am a PC” television ad, in a humorous way, this ad exposes Window’s weaknesses while emphasizing the benefits of the Macintosh operating system. Apple also distinguish itself through its premium pricing strategy, They always charge high prices for their products because they claim that they not only sell the quality products but they give style and class to the people and those who use the apple consider themselves elite and reputable in the market. As currently apple launch its I phone 5 with the starting price of RS.95000 which is the huge price but before its launching advance booking break the all records of history in terms of sales. With regards to distribution, Apple sells its products in a number of ways. First, there are the Apple stores, which can be found in many major shopping centers, malls and outlet stores. Secondly, Apple products are also sold in retailers such as Wal-Mart, Target, and Best Buy etc, third, Third, Apple also sells its products through the iTunes store and Apps store available online. Lastly, Apple has a website wherein customers can browse and buy products in a very convenient manner. Due to its extensive range of distribution system apple make easy for its customers to test and buy their products, and it also adds to the brand’s value, since it enables Apple to be more visible to customers. 7
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  Apple Brand Audit 2012 Brand Elements Logo: Apple’s distinguishing symbol is the apple with a bite taken out of it. Although their logo has changed since the 70’s (the rainbow apple to the monochrome apple), the effect on customers is the same. Once they see this icon on a product, that product is associated with all of the perceptions of the Apple brand, such as quality and innovation. The product is immediately perceived as the best of its kind because it has the symbol of the most valuable technology company in the world. So logo of apple is the element of their brand. Packaging: Apple’s products are packaged in very simple boxes that are designed to connect with the consumer. On the outside, the design of the boxes is very plain and usually only features a picture of the product. It is opening the box for the first time that makes the package special. There is a department within the company those are specialize in the designing, packaging and testing which ones elicit the perfect emotional response on opening. When customers open the box of apple first it become the memorable moment for them, and they want to repeat by repurchasing the product again. Slogans: Apple utilize its variety of slogans to promote their products, for their each product line they have different slogans which describe their importance, benefits, use and creativity of that product and it does so in creative fashion, Several of their slogans often emphasize the innovation of their products. For example, as they use for their App store that "Your iPhone gets better with every new app." the other best example is which they use for their ipad is "Thinner, Lighter, Faster, Face time, Smart Covers. 10 hour battery." Several slogans also state why Apple’s products are better than competitors' products (including preceding Apple products). In 2008, the slogan, “The first phone to beat the iPhone” was used to advertise the iPhone 3G. Currently they use slogan for Apple 5 is “The biggest thing to happen to iPhone since iPhone” 8
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  Apple Brand Audit 2012 Brand funnel of APPLE Attributes Sleek design technologically sound products uniqueness (its different) Functions Sense of style and elegance feels good to use high performance products uncommon Rewards increase self steam Confidence on product distinctive Pride and sophistication creditbility exclusiveity Values Personality Trust worthy professional accomplishment 9
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  Apple Brand Audit 2012 By analyzing the mental map of apple it shows that what thing comes in the mind of the customer when he thinks about the Brand. It is innovative as apple is always focusing on innovation and they design each product innovative with great and unique design. Customers think apple as their lifestyle and passion and they use the products with full of excitement. Even though it’s in higher price compare to its competitor’s products but still people love to use Apple’s products due to its quality and features of the product. So whenever customer thinks about the Brand many attachments and things in his mind. 10
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  Apple Brand Audit 2012 CBBE Pyramid Salience When I hear the word “Innovation”, Apple is the first brand that comes in mind. Apple also provides such brand which is unique and innovative. It is mostly considered as the luxury brand worldwide by customers. Performance & Imagery In terms of brand performance, I think Apple has set the highest benchmark for others to follow. Their products are of very high quality offering very good options, ease of use and beautiful designs. This is the reason that they charge a premium for their products. Apple products are in line with its competitors. But when it comes to supplementary features, I think Apple has gone many steps ahead and has provided users with something revolutionary every time. In terms of reliability, durability and serviceability, I think there isn’t any company even close to the level of Apple. The Apple brand is associated with sophistication and technology. Apple products are generally bought by computer and fashion savvy customers rather than the usual computer user. This is because they are looking for something more than functionality and Apple delivers that little extra in a very distinctive manner. The multi-colored logo itself depicts that Apple is for all races and creeds. The meaning of the name also gave the company a “friendly and shine” and warm based personality. Brand Judgments & feelings Customer judge the apple by keeping the view 4 things, quality, credibility, consideration and superiority. Products of apple have good quality and it is one of the most trusted brands in the world. Being innovative is its core competency and it has definitely caught the attention of the customer. Apple as a brand is very close to its customers and has been able to give them what they want with very close accuracy. This has created a high level of consideration for the brand with the customers. And it is also the most superior brand in the world. The Apple brand spread out feelings of fun, excitement and pride. People who own Apple products always look forward to using them with a lot of enthusiasm. The brand through its advertising has created an image of being diverse and colorful. This has been deeply etched in the minds of the customer 11
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  Apple Brand Audit 2012 Resonance Apple customers relate to the brand very intimately. Repeat purchases are very common. They feel a very strong attachment towards the brand because it portrays a very different image. The person who uses the Apple are feeling satisfy and feel good and elite by using the Brand. The Apple experience has created deeper attitudinal attachment in the minds of the customer. Marketing Strategies Apple is also very innovative and efficient in terms of its marketing strategies and campaigns. Through its marketing advertisement they communicate with their customers effectively, the advertisements of Apple are simple, innovative and clear in which they clearly indicate the benefits and features of the product and they also show that how by using the brand their lifestyle will change. As in their ads of IPods’ they show the how people are enjoying and dancing on music it create kind of excitement and image in the customer mind. When Apple first decided to engage the PC market, it aired a Super Bowl commercial, in the commercial, a young woman with a huge sledgehammer smashes it into a massive television screen, bathing the bald-headed drones mesmerized by the monitor in a brilliant white light. They also do co-branding in 2004 with Nike, in which a person wearing Nike products using Ipod and listing music and enjoy his walk. They also do their promotion through social websites and get the feedback and suggestion from customers through different blogs, it’s kind of customer relationship management through which they make relation with customer and design the product according to the customer expectation. Get a Mac campaign also get positive feedback which run from 2006 to 2009. In which a person in white shirt introduces himself as “I am Mac” while a man in a more formal suit-and-tie combination introduces himself as a Windows personal computer. In which the capabilities and attributes of Mac and PC are compared and distinguish that how Mac is more beneficial than other. As on the launch of recent Iphone 5 they design a slogan “The biggest thing to happen to iPhone since iPhone" which get success in customer mind and remembered by everyone. And they also create two ads, in first ad they are showing that how easy it is to share your Thanksgiving photos with your friends and family and in second ad they are showing how the iPhone 5 automatically cancels background noise while you're making a call. Means their overall marketing strategies are good and innovative through which they communicate customers and show the benefits and features of their products and to get attention of the customers. 12
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  Apple Brand Audit 2012 SWOT Analysis Strengths Over the years apple has grown by offering superior products compare to its competitors. Apple has positioned itself to be a pioneer in the laptops, iphones, and ipads. So apple has much strength which are listed below: Strong brand image Exclusive retail stores Most focus on R&D Genius management High customer loyalty High stock price in technological industry Overall top brand in the world Weaknesses Decision to restrict iphone to a single operator was unpopular in several markets of world. Less product line Only offered touch screen gadgets. Only supports Apple Mac utilities. Battery problem Opportunities More international expansion like Asian countries. Constant growth in technological products Good relationship through joint venture with other big brands. Threats Competition in technology with other Pc industry giants like Hp, Dell, Lenovo and other mobile industry like Samsung, Htc, Blackberry. Expensive products as compare to its competitors. Recession can hit apple’s overall sales. 13
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  Apple Brand Audit 2012 Recommendations Apple is associated with products that appeal to the emotions and lifestyle of consumers. Likewise, the brand is also associated with Innovation, simplicity, excellent customer service, and unique customer experiences. However, on the other hand, Apple’s brand is also associated to a poor or lack of corporate social responsibility. Compared to its competitors like, Microsoft donates an estimate of $400 million yearly to various organizations. This is the same for IBM, which shells out around $150 million to schools and non-profit organizations. So apple should also do this activity As a result, we will that this will improve the Apple brand considerably and quash all associations of the brand as not being corporate socially responsible. In return, brand equity will be built, and customer goodwill and perception of the brand will also be strengthened. To deliver the desired brand positioning, we recommend that Apple should continue to implement its “I am a Mac, I am a PC” ad campaign because this marketing program states the benefits of using an Apple product rather than those of its competitors in a very simple, yet entertaining manner. They also should design such ads those are interesting and which may remember in customer mind for a long time. They should continue to use the Apple Store to give customers the ultimate shopping experience. For instance, Apple must not stop giving consumers the opportunity to feel, touch, and use sample Apple products that are displayed in all Apple stores. Apple should also sponsor in sports events, Like: Cricket, Football, Olympics etc through which they communicate the huge population of different countries, it’s a great platform to keep in touch with the customers. 14
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