The document analyzes how Apple successfully built its brand over time using seven key elements: quality, positioning, repositioning, being first to market, well-blended communication, internal marketing, and long-term perspective. It discusses Apple's approach for each element and how they are interrelated. For example, Apple ensured high quality, launched innovative products first to position itself as a leader, and communicated consistently to strengthen its brand positioning over the long-term. While Apple is perceived to offer high quality, some question if physical quality matters most or if it is the brand perception that drives success.
Building a Brand: How Apple Used 7 Elements of Success
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Apple: Building Successful Brand
Deniz Kurugollu
10283502
MSc Marketing
December, 2010
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Introduction
Apple Computer Inc. was born in 1977 in a garage of one of the corporate founders, selling
personal computers (Nonaka, 1991). Today the company, Apple Inc. , operates in ten
countries with more than 300 stores, producing and selling consumer electronics, consumer
software as well as personal computers (Apple Inc, 2010). The aim of this report is to evaluate
how Apple combined seven elements of building successful brand, from a small garage in
California to become the most admired company in its sector (Fortune, 2010). This report is
divided into seven main parts attributed to the seven elements of brand building. In each part
firstly, the role of a given element in brand building will be defined and then related examples
to Apple Inc. will be produced.
Quality:
Quality can be seen as a prerequisite in building successful brand. It is important for the brand
to offer a specific level of quality (Anonymous, 2010a). Jobber (2010: 313) also points out
this idea that “the core product must achieve the basic functional requirements expected of it”.
Here, we see the word „expected‟. It can therefore be inferred that quality is something based
on consumers‟ perception of the given product. As a matter of fact, Drucker (cited in Kotler,
2003: 148) suggests that quality is not what you put into the product, but it is what the
customers get out of it.
Joseph (2010) states that Apple‟s design is a symbol reflecting a certain level of quality, even
the packaging gives that sense. Coupled with the previous idea of Drucker, it could be
suggested that Apple‟s products are perceived high quality, and design plays a key role
leading this perception. However, physically, are Apple products high quality? Or, maybe the
question should be: „Does physical (tangible) quality matter?‟ Klein (cited in Kahney, 2002)
argues that companies like Apple are no longer selling products, but hopes, dreams and
aspirations. Additionally, Gobe indicates that “Apple is about imagination, design and
innovation. Without the brand, Apple would be dead. The brand is all they have. It is nothing
to do with products” (in Kahney, 2002).
Positioning:
Kotler (2005) describes the product position as a place where the product resides in
consumer‟s mind. Hereby, it might be suggested that the product position is a word or a
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couple of words that spring to mind when people hear the name of given brand. For example,
Tide is power, while Fairy is gentle; or Volvo is safety, while Porsche is performance.
Additionally, Kotler (2003) points out that some companies favour to build multiple
positioning. For instance, Absolut Vodka; purity and fun or Audi; sophistication and
progression (Jobber, 2010). Where is Apple in consumers‟ mind? Joseph (2010) states that
„Apple is simple and intuitive‟. He goes on to say that‟ it makes me feel smart and keeps my
life moving‟. In addition, Hayden (in Kahney, 2002) states that Apple symbolizes
„counterculture‟ which is „rebellious, free-thinking and creative‟.
Repositioning:
“No positioning will work forever. Companies must re-evaluate the positioning of their major
brands” (Kotler, 2003: 138). According to Jobber (2010), in today‟s highly competitive and
fast-driven environment where consumers‟ demand is volatile and divergent, companies may
need to build brands from their initial base to meet consumers‟ needs and wants. This renewal
can be done by changing or expanding on the elements of brand positioning. As a matter of
fact, Apple needed to change its former name. As mentioned in the introduction section of this
report, the name of the company was Apple Computer Inc. when it was first formed because
at that time the company was marketing only personal computers. However, when the
company expanded on its target market, from computers to various consumer electronics such
as MP3 players, phones, accessories and so on, the company name was changed as well
(Apple Inc., 2007).
Being first:
Being first gives the company a chance to enjoy the potential advantages of technological
leadership (Jobber, 2010). It might be argued that the other way around is also correct. That
is, a technological competence can lead the company to be first, in consequence to be leader
in the market. The latter can be seen as one of the facts behind the company‟s success. For
example let us review the iPhone case. When it was first launched in 2007, iPhone was a
unique product; in fact, it can be suggested that iPhone created its own segment. The device
was different from traditional mobile phones since there is neither buttons nor scroll wheels. It
was operated through touchscreen and supporting wireless technology. All these innovations
gave Apple the opportunity to create a clear position in the minds of customers before the
competitors enter the market (Jobber, 2010).
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Kotler (2003) offers the word „product juggernauts’ for brands where product development is
an ongoing and interactive process. In addition, Beverland et al (2010) states that „product
innovation is vital to ongoing brand equity and is responsible for the revitalizing many
brands‟ such as Apple. In light of foregoing, it can therefore be suggested that Apple is a
product juggernaut where innovation is vital for its success. This ongoing effort can also be
testified in the tag-line for iPhone 4 – “This changes everything. Again”- (Apple UK, 2010).
Well blended communication
Marketing communication tools mainly consist of advertising, sales promotion, personal
selling, direct marketing and public relations (Stone, 2007). Kotler (2006) adds them up also
online marketing, social marketing and word-of-mouth. All or some of them can be used by
companies to reach their target audiences in order to create a clear position in the minds of
consumers (Jobber, 2010). Considering the iPad launch, it can be well understood how Apple
achieves a great harmony with multiple marketing communication tools. On January 2010, at
Yearba Buena Center for Arts, in San Francisco iPad was launched by Steve jobs. „It was not
just a product launch, but a marketing communications event‟ (Anonymous, 2010b). The
building was covered with the same colours with press announcement and banner designs as
well as event invitations. The iPad story already was told in MacRumour site. Several news
stations and agencies around the globe were ready at the venue. The show was recorded on
video and uploaded concurrently to social media platforms such as YouTube, Twitter and live
blogs. At the same time, Flickr photos appeared on internet.
On the other hand, it is evident that communication is an ongoing process. It is not the case
just for launching a product or until closing its sales. Delivering customized services to the
customers is one of the key principles of strategic brand management (Hollis, 2008). In the
Apple case this can be seen in the Genius Bar concept where customers can get technical
support for their Mac, iPod, Apple TV or iPhone from fully trained staffs (Apple, 2010). In
addition to the Genius Bar, Apple also offers free workshops in many of its stores on using
hardware and applications (Anonymous, 2010a).
Internal marketing:
Internal marketing is marketing efforts within a firm that are directed to its employees in order
to encourage and support them so that the company achieve its goals (Dacko, 2008). In terms
of delivering great customer service, training and supporting employees could be seen as a
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precondition. As a matter of fact Apple gives two weeks of intensive training to its new
employees (called as Genii) in the company‟s headquarters in Cupertino where they earn
Apple technical certifications and learn the company‟s policies before going up to customers
(Anonymous, 2010a)
Long-term perspective:
The last element of successful brand building is long-term perspective. It can be suggested
that long term perspective in brand building may refer two meanings. The first one is that
brands cannot be built in a day. In the Apple case, it can be seen that it took more than 30
years for the company to reach its current power. Ensuring quality standards (Quality),
creating unique products and position (Being first and Positioning), introducing them to
customers and expecting them to accept the brand (Well-blended communication); all of them
need a long time and effort.
On the other hand, the second meaning of long-term perspective is that current success may
not guarantee the long-term success. It can therefore be suggested that brands require long-
term activities to survive. As a matter of fact, Jobber (2010) points out that brands need to be
protected against competitors and renewed from time to time. Hereby again, the links with
above elements can be seen such as repositioning (renewal), internal marketing (employee
loyalty to defend against rivals) and being first (patent to defend against rivals).
Conclusion
The purpose of this report was to evaluate how Apple combined seven elements of building
successful brand. To summarise, it has been noted that Apple used all seven elements to some
extent. Of note, well- blended communication and the company‟s creative position can be
seen as leading factors behind Apple‟s success. However, it should be borne in mind that all
these seven elements are linked to each other distinctly. Appendix 1 summarises the
relationships between elements.
The key discussion has occurred in terms of product quality. Do consumers know or just
perceive the quality? Further study to focus on the relationship between successful brand
building and tangible quality of the core product may be an area of interest.
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Appendix 1: Relationships between elements
Long-term perspective
Being Positioning Repositioning
first 2 5
3
Well- blended communication
Quality
1 Internal marketing 4
1: Employees‟ (Genii) skills and abilities affect the company‟s service quality
2: Being first creates the innovative, and hence the leader image for Apple in the
minds of consumers before the competitors
3: Consistent and interactive communication in every interaction point (stores,
social media, ads, etc.) with customers empowers Apple‟s position.
4: Genius Bar and Genii
5: From “Apple Computer Inc.” to “Apple Inc.”
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