Unit 28 P1 Branding PDF

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Summary

P1:Explore the principles of branding for a selected large business...

Description

Unit 28 P1 Branding - Apple Inc. Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook.

Brand: a characteristic name, symbol or shape that distinguishes a product from that of another supplier Apple Inc. uses the Apple brand to compete across several highly competitive markets. Apple's brand has evolved as it has expanded its range of products and services. Originally starting in the late 1970s with desktop computers and then laptops in the 1990s, it took over 20 years before the company expanded into its first major new product area with the launch of the iPod in 2001, followed by iPhone in 2007, iPad in 2010, then Apple Pay and Apple Watch in 2014.

Branding: the elements that define the image, ethos and tone of a business and its products. The company is called Apple purely because Steve Jobs thought it sounded like a nice word, and because Jobs was in the middle of an allfruit diet when he thought of it. Many people asked why does the Apple have a bite on the side? According to Rob Janoff, the creator of the Apple logo, that's because people wouldn't mistake it for a cherry.

Use of branding:

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Brand Life Stage: Apple’s marketing strategy has shifted over time to reflect its business environment and life stage. The brand helps set you apart from the competition.

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New Leadership: Former CEO Steve Jobs was notorious for his strict oversight over the brand’s marketing activities.

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Rise in Competitive Threats: Apple has changed as an organization. They now compete across a larger number of industries (music, mobile, personal computer, watch, etc.) with a larger number of competitors.

Target audiences for brands -- A higher percentage of customers who buy the iPhone, Macbook Air, Macbook Pro, and Apple TV are between the ages of 25 and 34. -- Seniors 65 and older, and people between 35 and 44, are the biggest of iPad customers. -- And those who are 35 to 44 made up the highest percentage of Apple Watch sales. -- The largest percentage of Apple Music customers are 25- to 34-yearsold. -- Households with an income level between $35,000 and $50,000 spent the least. -- But, amazingly, households with an income level under $15,000 spent about as much as households with an income level between $125,000 and $150,000.

Brand Extension

Apple's iPod, the portable digital player, was launched in October 2001. Soon it became a major contributor to Apple's revenue. Apple launched the iTunes music store from where users can download songs and transfer them to their iPod. Subsequently, several new versions of the models were launched and gradually iPod became the market leader in the portable digital player industry and this made a big extra profit for the company.

Customer loyalty Apple’s customer satisfaction and loyalty have been growing steadily over the years, reflecting the way consumers view the brand. Although it is a very big company, Apple still enjoys an underdog positioning. Adverts like “Think Different” turn this status into something of a crusade and creates a community of purpose among the people who have aligned themselves with Apple. Microsoft products tend to be sold on features. Mac products on benefits. Apple is great at showing how your new Mac is going to improve your life; how your iPod will make you hip and so on.

Customer loyalty ladder Suspects to prospects - Prospects to customers - Customers to clients Clients to advocates. Apple has built up an incredibly loyal customer base since the return of Steve Jobs in the late 1990’s. This is for a number of reasons such as Jobs’ evident passion for his products and the customer experience, their continuous innovation in consumer tech, the guaranteed high quality of all of their products and how they satisfy their consumers aspirations. The passion that Apple customers have for the brand also results in them spreading positive word of mouth, further reinforcing Apple's brand identity....