Apple Brand Audit

Apple Brand Audit
APPLE Inc

Submitted to: Sir Goher Raza

Submitted by : Sumeet Raj & Mumal Khan
12/15/2012

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


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


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


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

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


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


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


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

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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


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

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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


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


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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