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Apple Brand AuditAPPLE IncSubmitted to: Sir Goher RazaSubmitted by : Sumeet Raj & Mumal Khan12/15/2012
Apple Brand Audit 2012Executive SummarySince its foundation in 1976, Apple has grown from a small business selling computers into one of themost successful and valuable brands in the entire world. Consumers everywhere perceive the brand asbeing one of the very best because of their groundbreaking product lines, their successful marketingprograms, and their ability to differentiate themselves among other competing brands. These elementsand 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 becomeextremely popular in the market. They are a dominant force in the market for consumer electronics, andtheir merchandise is in extremely high demand. Secondly, their very successful marketing anddistribution strategies are able create consumer perceptions that make Apple’s brand a highly reputableicon.Through these core elements and attributes, Apple as a brand has seen its value skyrocket over theyears. By continuing to implement and improve on these successful programs and strategies, Apple’sbrand equity will continue to grow and flourish in the future of the company. 2
Apple Brand Audit 2012Introduction Brand Audit Brand audit is concerned with the behavioral and psychological nature of brand equity, and itwill be discussed in terms of strength of a brand’s equity and its nature. So simply it is theexamination of brand’s current position in industry compared to its competitors and theexamination 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 determinehow your various audiences view your brand. The brand which we have taken is Apple, themain objective of this audit is to show that where the brand is currently stand. After the auditwill 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 opportunitiesfor this brand, how much people know and like the brand. So after audit we can come to knowabout 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 whichis intriguing is that how Apple has maintained its equity worldwide. The innovative products ofapple have enabled the company to be a global brand worldwide. Apple Computer, Inc., is amultinational corporation that creates consumer electronics, personal computers, computersoftware, and commercial servers, and is a digital distributor of media content. Apples coreproduct lines are the, I phone, I pad tablet pc, and I pod portable media players and Macintoshcomputer line. The founders are Steve jobs and Steve wozniak which created Apple Inc on 1stApril 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 in2003, Apple established itself as a leader in the consumer electronics and media sales industries,leading it to drop "Computer" from the companys name in 2007. The company is now alsoknown for its iOS range of smart phone, media player, and tablet computer products that beganwith the iPhone, followed by the iPod Touch and then iPad. As of 2012, Apple is the largestpublicly traded corporation in the world by market capitalization, with an estimated value ofUS$626 billion as of September 2012. Apple Incs market cap is larger than that of Google andMicrosoft combined. Apples worldwide annual revenue in 2010 totaled US$65 billion, growingto US$127.8 billion in 2011 and $156 billion in 2012. 3
Apple Brand Audit 2012Brand attributesThroughout 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 whichmake apple world’s number 1 brand.1. Stylish2. Cool3. Unique4. Reliable operating system5. Innovation6. Intuitive7. Retina display8. Multi tasking 4
Apple Brand Audit 2012Brand portfolioApple includes different technological brands, with premium pricing strategy. All the brands arevery successful in the market, especially the IPod, I phone, I pad, Mac book. Apple alwaysfocuses on innovation and new design and with the little time they launch new model in theirbrands 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
Apple Brand Audit 2012Competitor AnalysisBlackberry: Blackberry marketed their brand as sophisticated and the latest and savviesttechnology for networking. Blackberry has the reputation of being elite and positioned highwithin the industry; it is only fitting that they cater to and consistently revolve theiradvertisements 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 theircommercials. Currently apple is the biggest competitor of Apple in smart phones and Ipadcategory.Dell: Dell has positioned itself in the market as a competitor to Apple with high affordability andis also user friendly. Dell’s marketing campaign has always been catered to families andeveryone in it. Using the fact that their computers are more affordable than more expensivebrands 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 theAndroid operating system. The Android operating system is used in various different modelswith a few different vendors such as LG, Sony Ericsson, HTC, and Motorola. Theadvertisements for these models are all essentially sending out the same message as they are alltrying to state their models are very advanced and on the cutting edge of technology. So it alsothe competitor of apple, because the other mobile companies offering handsets with androidsoftware installed.Microsoft: Another Direct Competitor to Apple would be Microsoft and their latest operatingsystem, Windows Phone 7/8. The Windows operating system prides itself on being quick andthat it will “get you in and out and back to life,” starting with the “Really?” campaign. TheWindows phone advertisement campaign revolves around social life and activities Pops PodsHardware and technology Operating system (OSX)Complete touch Exclusive Retail storesCompletely based on applications ItunesPricing strategy Innovative in trend makersDelegate touch screen Marketing strategiesPowerful sound system Unique design 6
Apple Brand Audit 2012Communications, pricing and distribution strategy of apple:Apple is also innovative and good in their communications; its communication has a uniquestyle. As in the TV ads, print ads, and in online ads they don’t endorse the famous personalitiesand celebrities to promote their products Rather, Apple just sticks to a communications strategythat aims to relate to consumers how innovative, sleek, and reliable its products are compared toother competitors. Apple communication is simple, clear, minimalist and clever. Well of coursewhen u have great products it is much easier to attract the customers, but nevertheless doing itwith style and cleverness is very crucial, it boost sales and enhances the brand value too just likeapple 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 thebenefits of the Macintosh operating system.Apple also distinguish itself through its premium pricing strategy, They always charge highprices for their products because they claim that they not only sell the quality products but theygive style and class to the people and those who use the apple consider themselves elite andreputable in the market. As currently apple launch its I phone 5 with the starting price ofRS.95000 which is the huge price but before its launching advance booking break the all recordsof history in terms of sales.With regards to distribution, Apple sells its products in a number of ways. First, there are theApple 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 availableonline. Lastly, Apple has a website wherein customers can browse and buy products in a veryconvenient manner. Due to its extensive range of distribution system apple make easy for itscustomers to test and buy their products, and it also adds to the brand’s value, since it enablesApple to be more visible to customers. 7
Apple Brand Audit 2012Brand ElementsLogo: Apple’s distinguishing symbol is the apple with a bite taken out of it. Although their logohas changed since the 70’s (the rainbow apple to the monochrome apple), the effect oncustomers is the same. Once they see this icon on a product, that product isassociated with all of the perceptions of the Apple brand, such as quality andinnovation. The product is immediately perceived as the best of its kindbecause it has the symbol of the most valuable technology company in theworld. So logo of apple is the element of their brand.Packaging: Apple’s products are packaged in very simple boxes that are designed to connectwith the consumer. On the outside, the design of the boxes is very plain and usually only featuresa 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 andtesting which ones elicit the perfect emotional response on opening.When customers open the box of apple first it become thememorable moment for them, and they want to repeat byrepurchasing the product again.Slogans: Apple utilize its variety of slogans to promote their products, for their each product linethey have different slogans which describe their importance, benefits, use and creativity of thatproduct and it does so in creative fashion, Several of their slogans often emphasize theinnovation of their products. For example, as they use for their App store that "Your iPhone getsbetter 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 whyApple’s products are better than competitors products (including preceding Apple products). In2008, 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
Apple Brand Audit 2012 Brand funnel of APPLEAttributes Sleek design technologically sound products uniqueness (its different)Functions Sense of style and elegance feels good to use high performance products uncommonRewards increase self steam Confidence on product distinctive Pride and sophistication creditbility exclusiveityValuesPersonality Trust worthy professional accomplishment 9
Apple Brand Audit 2012By analyzing the mental map of apple it shows that what thing comes in the mind of thecustomer when he thinks about the Brand.It is innovative as apple is always focusing on innovation and they design each productinnovative with great and unique design. Customers think apple as their lifestyle and passion andthey use the products with full of excitement. Even though it’s in higher price compare to itscompetitor’s products but still people love to use Apple’s products due to its quality and featuresof the product. So whenever customer thinks about the Brand many attachments and things in hismind. 10
Apple Brand Audit 2012CBBE PyramidSalience When I hear the word “Innovation”, Apple is the first brandthat comes in mind. Apple also provides such brand whichis unique and innovative. It is mostly considered as theluxury 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 beautifuldesigns. This is the reason that they charge a premium for their products. Apple products are inline with its competitors. But when it comes to supplementary features, I think Apple has gonemany steps ahead and has provided users with something revolutionary every time. In terms ofreliability, durability and serviceability, I think there isn’t any company even close to the level ofApple.The Apple brand is associated with sophistication and technology. Apple products are generallybought by computer and fashion savvy customers rather than the usual computer user. This isbecause they are looking for something more than functionality and Apple delivers that littleextra in a very distinctive manner. The multi-colored logo itself depicts that Apple is for all racesand creeds. The meaning of the name also gave the company a “friendly and shine” and warmbased personality.Brand Judgments & feelingsCustomer judge the apple by keeping the view 4 things, quality, credibility, consideration andsuperiority. Products of apple have good quality and it is one of the most trusted brands in theworld. Being innovative is its core competency and it has definitely caught the attention of thecustomer. Apple as a brand is very close to its customers and has been able to give them whatthey want with very close accuracy. This has created a high level of consideration for the brandwith 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 Appleproducts always look forward to using them with a lot of enthusiasm. The brand through itsadvertising has created an image of being diverse and colorful. This has been deeply etched inthe minds of the customer 11
Apple Brand Audit 2012ResonanceApple customers relate to the brand very intimately. Repeat purchases are very common. Theyfeel a very strong attachment towards the brand because it portrays a very different image. Theperson who uses the Apple are feeling satisfy and feel good and elite by using the Brand. TheApple experience has created deeper attitudinal attachment in the minds of the customer.Marketing StrategiesApple is also very innovative and efficient in terms of its marketing strategies and campaigns.Through its marketing advertisement they communicate with their customers effectively, theadvertisements of Apple are simple, innovative and clear in which they clearly indicate thebenefits and features of the product and they also show that how by using the brand their lifestylewill change. As in their ads of IPods’ they show the how people are enjoying and dancing onmusic it create kind of excitement and image in the customer mind. When Apple first decided toengage the PC market, it aired a Super Bowl commercial, in the commercial, a young womanwith a huge sledgehammer smashes it into a massive television screen, bathing the bald-headeddrones 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 usingIpod and listing music and enjoy his walk. They also do their promotion through social websitesand get the feedback and suggestion from customers through different blogs, it’s kind ofcustomer relationship management through which they make relation with customer and designthe product according to the customer expectation. Get a Mac campaign also get positivefeedback which run from 2006 to 2009. In which a person in white shirt introduces himself as “Iam Mac” while a man in a more formal suit-and-tie combination introduces himself as aWindows personal computer. In which the capabilities and attributes of Mac and PC arecompared 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 iPhonesince iPhone" which get success in customer mind and remembered by everyone. And they alsocreate two ads, in first ad they are showing that how easy it is to share your Thanksgiving photoswith your friends and family and in second ad they are showing how the iPhone 5 automaticallycancels background noise while youre making a call.Means their overall marketing strategies are good and innovative through which theycommunicate customers and show the benefits and features of their products and to get attentionof the customers. 12
Apple Brand Audit 2012SWOT AnalysisStrengths Over the years apple has grown by offering superior products compare to its competitors. Applehas 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 worldWeaknesses 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 problemOpportunities 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
Apple Brand Audit 2012RecommendationsApple 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