Brand Mgmt Apple

8/20/2019 Brand Mgmt Apple

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A little history on Apple inc.

Steven Wozniak and Steven Jobs had been friends in high school. They had both beeninterested in electronics, and both had been perceived as outsiders. They kept in touch after graduation, and both ended up dropping out of school and getting jobs working for companiesin Silicon alley. !Woz for "ewlett#$ackard, Jobs

for %tari&

Wozniak had been dabbling in computer#designfor some time when, in '()*, he designed whatwould become the %pple +. Jobs, who had an eyefor the future, insisted that he and Wozniak try tosell the machine, and on %pril ', '()*, %ppleomputer was born.

"obbyists did not take the %pple + very seriously,and %pple did not begin to take off until '()),

when the %pple ++ debuted at a local computer trade show. The first personal computer to comein a plastic case and include color graphics, the

%pple ++ was an impressive machine. -rders for %pple machines were multiplied by several timesafter its introduction. %nd with the introduction inearly )/ of the %pple 0isk ++, the mostine1pensive, easy to use floppy drive ever !at thetime&, %pple sales further increased.

With the increase in sales, however, came an

increase in company size, and by '(/2, when the %pple +++ was released, %pple had severalthousand employees, and was beginning to sell computers abroad. %pple had taken on anumber of more e1perienced mid#level managers and, more importantly, several newinvestors, who opted to take seats on the board of directors. -lder, more conservative men,the new directors made sure that %pple became a 3real company,4 much to the dismay of many of its original employees.

+n '(/', things got a bit more difficult. % saturated market made it more difficult to sellcomputers, and in 5ebruary. %pple was forced to lay off 62 employees. Wozniak was injuredin a plane crash. "e took a leave of absence and returned only briefly. Jobs became

chairman of %pple computer in 7arch.

Brand v/s corporate strategy

%pple once again delivered very strong results in the face of hesitant consumers under recessionary pressures. Total revenue growth for the latest 8uarter was 9:*; led by the 7ac


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brand in personal computers at 9"alo>effect. +n advertising terms this is when when one product or brand from a company benefitsin sales from a Fnd product or ad campaign from the same company. The i$od has had a haloeffect on the 7acintosh brand by bringing in younger, more image conscious consumers. Thei$od brand has also provided some of this same >halo effect> to the i$hone. onsumers


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clearly know that all : products are made by %pple !the corporate brand& and this translates toconsumers believing %pple=s products are more hip and technologically superior thancompetitive products.

The benefits to %pple as company for this superior branding strategy are immense. +t providesa fantastic platform for future new products. onsumers will constantly seek out their new

products and view them as the ne1t generation with a cool image and technologicalsuperiority, +t will also provide them with superior pricing power over the long term. Thismeans that %pple will continue to lead and deliver above average sales and profit growth. %sin consumer food products a superior brand name is worth its weight in gold.

5 levels of product v/s brand

ustomers will choose a product basedon their perceived value of it. Satisfaction

is the degree to which the actual use of aproduct matches the perceived value atthe time of the purchase. % customer issatisfied only if the actual value is thesame or e1ceeds the perceived value.Cotler defined five levels to a productG

ore ?enefit # the fundamental need or want that consumers satisfy by

consuming the product or service. Aeneric $roduct # a version of theproduct containing only those attributes or characteristics absolutely

necessary for it to function. H1pected $roduct # the set of attributesor characteristics that buyers normally e1pect and agree to whenthey purchase a product. %ugmented $roduct # inclusion of additional features, benefits, attributes or related services that serveto differentiate the product from its competitors. $otential $roduct #all the augmentations and transformations a product might undergoin the future.

?ecause %pple has a really wide range of products for this e1ercisewe will select only one, so i$hone it is. Iet us now identify the <levels of productsG

ore benefits i$hone just used for tele#communicationAeneric product # i$hone with at least features of a smart phoneH1pected product i$hone with camera, music and video playback,small application to help perform daily tasks

%ugmented product i$hone with :A fecility, comfortable touch screen, motion gaming, openplatform to develop softwares for i$hone and also covers all e1pected product list$otential $roduct %ll of the above mentioned and better strong body, break#free screen,updated technology, cheaper, no cellular provider lock and many more. %lthough it satisfiesthe < levels of a product the i$hone as a brand is still the rich boys phone and it prefers this


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image unlike many others.

Positioning-competitive

7arketers manage product positioning by focusing their marketing activities on a positioningstrategy. $ricing, promotion, channels of distribution, and advertising all are geared toma1imize the chosen positioning strategy.

Aenerally, there are si1 basic strategies for product positioningG

?y attribute or benefit# This is the most fre8uently used positioning strategy. 5or a light beer, it

might be that it tastes great or that it is less filling. 5or toothpaste, it might be the mint taste or

tartar control.

?y use or application# +f you want e1treme processing you would go for a %70 processor

instead of +ntel processors. %70 spends a lot of resources on building high performance parts

than on advertising like +ntel.

?y user# ampushook is a social networking site used e1clusively by college students.

ampushook is too cool for 5acebook and serves a smaller, more sophisticated cohort. -nly

college students may participate with their campus e#mail +0s.

?y product or service class# 7argarine competes as an alternative to butter. 7argarine is

positioned as a lower cost and healthier alternative to butter, while butter provides better taste

and wholesome ingredients.

?y competitor# ?7W and 7ercedes often compare themselves to each other segmenting the

market to just the crKme de la crKme of the automobile market. 5ord and hevy need not

apply.

?y price or 8uality# Tiffany and ostco both sell diamonds. Tiffany wants us to believe that

their diamonds are of the highest 8uality, while ostco tells us that diamonds are diamonds

and that only a chump will pay Tiffany prices.

$ositioning is what the customer believes and not what the provider wants them to believe.

$ositioning can change due the counter measures taken at the competition. 7anaging your

product positioning re8uires that you know your customer and that you understand your

competitionL generally, this is the job of market research not just what the entrepreneur thinks

is true.

Mow coming to %pple and their positioning strategy, %ccording to me %pple uses the$ositioning by attribute and also positioning by user. Iet us see the different %pple productsand their positioning by attributeGi7ac H1treme hardware, costlier than the regular $7ac -S N # Aood graphics, many user oriented features more stable than windows5inal ut pro World class movie editing softwares, used by Steven Speilbergi$hone hanged the face of smart phones, the best hardware and software combination atthe moment.


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+pod 0urable, and well segmented into shuffle, nano, classic, touch, and many more to yetlaunch.

%pple has positioned itself to a certain type of customer, wealthy people, innovators, peoplewith good jobs, good lifestyle, etc. +f %pple targets the poor man type, the trendy guys will stopbuying %pples, because everybody can and %pple is not the $orsche of the computers

anymore, this would hurt more the brand than maybe the increasing sales because of lower prices, and in good times, where everybody has more money, %pple would have the problemthat they cannot rise prices, because everybody e1pects a cheap %pple !the macroeconomicsdeflation problem&.


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Points of parity and points of difference

%pple has generating a lot of talk with the new 7ac?ook %ir and as might be e1pected there=sa lot market buzz as well. + think the best way to tell is to compare this computer with the

other %pple laptop computers of similar size. Since %pple=s last offering is the 7ac?ook $ro +=lluse this as the comparator. To discuss points of parity and points of difference + would like totake to of %pples great products the 7ac?ook pro and the 7ac?ook %ir. +=ve heard it said thatthe 7ac?ook %ir is just a designer laptop for trendy types to show off with. + don=t think this is8uite fair. The 7ac?ook %ir specifications 8uite plainly demonstrate, this is a serious laptop. %better description might be that this is a business laptop without the fancy graphics or sound.

% machine designed for travel not merely to impress.

Size

and

WeightG This is likely one of the most important considerations. @ou have to haul this thing

around with you everywhere you go. % few pounds here or there can add up 8uickly.

• The 7ac?ook $ro weighs 5. pounds

• The 7ac?ook %ir weighs ! pounds

Weight SummaryG The 7ac?ook %ir weighs F.6 pounds less than the 7ac?ook $ro.

"hic#nessG The two 7ac?ooks differ in thickness by a 8uarter inch !'O6& and this could also

affect how well it travels.

• The 7ac?ook $ro is one !'& inch thick

• The 7acbook %ir is slightly less than three#8uarter !:O6& inch thick

Size SummaryG The 7ac?ook %ir is one 8uarter inch thinner than the 7ac?ook $ro.

Processing Po$er G ?oth 7acbooks use the +ntel ore F 0uo processor, however they differ

in processor speed. The 7ac?ook $ro actually has three options when it comes to processor

speed to the %ir=s two. ?oth machines have an IF 67ega?yte cache.

• 7ac?ook Pro +ntel ore F 0uo at %.%, %., and %.& 'iga(ertz


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• 7ac?ook Air +ntel ore F 0uo at ).& and ).* 'iga(ertz

Processor Summary + % higher number here is better.

,ideo ProcessorsGThe 7ac?ooks differ in this area. This must be one of the areas %pple

chose to save size !thickness& and weight !a difference of over two pounds&.

• The acBoo# Air uses the embedded +ntel A7% N:'22 graphics subsystem.Hmbedded meaning it=s part of the motherboard. onnected to an e1ternal monitor via

the micro#0i port, the ma1#res in e1tended desktop mode is )0%*1 by *11 pi1els

!*2"z&. Thie highest resolution available is )02%1 3 )%11 through the 7icro0+ port to

an e1ternal monitor.

• The acBoo# Pro uses a separate M+0+% Ae5orce /*227 AT graphics processor

that=s connected to the dual#link 0+ connector. +n the e1tended desktop mode, the

ma1imum resolution for the e1ternal display is %01* by )05!& pi1els !*2"z or )


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!depending on wall construction& and F


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Brand element

The memorability of this product is high thanks to the name of their products, for e1amplei7ac, iWork, iIife or even i$hone. They all have have 3i4 prefi1ed to their names to signify

+nternet or innovation and most of all interesting. %ll %pple products are known for their breadth taking user interfaces and custom graphics. -ften known as the rich boy=s $, %pplealways was remembered as a premium brand of products !computers to start off with&.

The name %pple is rather not so meaningful because 3%pple4 normally used in aconversation get a fruit in your mind but for anyone and everyone who has a computer and an+nternet connection would always related it with %pple +nc.

%lso the transferability of this product is low. This became clear when all their products use auni8ue trade marked name like the i$hone or i$od etc although they all use %pples brandvalues and position.

The apple logo is fle1ible over time. +t has been used for several years already and today itdoes not look old#fashioned at all. So the adaptability of %pple is good as well. +f you lookbelow the apple logo from the past till date and the change in itG


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%pple is a protected, registered trademark, protactability being the fifth criteria.

Brand communications

+n F22*, %pple released a controversial series

of twenty#four Straw man >+=m a 7ac, +=m a$> advertisements as part of their Aet a 7ac

campaign.

The ads, which are directed by $hil 7orrison,

star actor Justin Iong !%ccepted& and author

and humorist John "odgman !The 0aily

Show& as a 7acintosh !7ac& and a $,

respectively. The format for each commercial

is similarG Iong introduces himself as a 7ac

and "odgman introduces himself as a $!assumed to be running the 7icrosoft

Windows operating system&, then the

particular facet of computing is stated, after

which the 7ac is depicted as being able to do

whatever the $ is able to do, but does it

8uicker, more safely, more creatively, or with

more versatility.

Since the launch of the original ads, similar

commercials have appeared in Japan and the BC. While they use the same form and musicas the %merican ads, the actors are specific to those countries.


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The BC ads feature famous comedy duo 7itchell and

WebbL 0avid 7itchell as the $ and Pobert Webb as

the 7ac. The Japanese ones are played by Pahmens,

with Jin Catagiri as the $ and CentarQ Cobayashi as

the 7ac.

+n F22) during the launch, a new i$hone print ad hasdebuted and is featured in the %ugust F22) issue of

0etails 7agazine. The ad features a right#facing

i$hone on a black background, with a hand coming

from the right, seemingly lit only by the phone,

interacting with it. ?elow the image is the tagline

3Touching is believing.4 7ac0ailyMews has suggested

that in light of the 3Jesus $hone4 or 3Aod $hone4

moniker some have applied to the i$hone, the ad may

be deliberately referencing 7ichelangeloRs Thereation of %dam fresco found in the Sistine hapel.

The

reation of %dam is a fresco on the ceiling of

the Sistine hapel, painted by 7ichelangelo

circa '


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Brand Mgmt Apple

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