Steve Jobs, Apple's Founder and Chairman, has described Apple as a "mobile devices company" - the largest one in the world Apple's revenues are bigger than Nokia, Samsung, or Sony's mobility business. For several years Apple's product strategy involved creating innovative products and services aligned with a "digital hub" strategy, whereby Apple Macintosh computer products function as the digital hub for digital devices, including the Apple iPod, personal digital assistants, cellular phones, digital video and still cameras, and other electronic devices. More recently, the full impact of a very well throught out brand strategy has come into focus - and one in which customer experience is central Apple's core competence is delivering exceptional experience through superb user interfaces. The company's product strategy is based around this, with iTunes, the iPhone with it's touch screen "gestures" that are re-used on the iPad, and the Apple Apps store all playing key roles.
Positive brand equity enables a firm to make a higher margin on sales and reduce advertising and marketing costs.
Brand equity is defined as the value of having a well-known brand name. It can be positive or negative. Apple, for example, maintains a high level of positive brand equity; its products are renowned for quality and its customers are fiercely loyal.
On the other end of the spectrum, BP accumulated negative brand equity following its oil spill. Its name became synonymous with environmental destruction, and many customers made a conscious effort to avoid giving the company business.
When a company has positive brand equity, customers willingly pay a high price for its products, even though they could get the same thing from a competitor for less.
Customers, in effect, pay a price premium to do business with a firm they know and admire. Because the company with brand equity does not incur a higher expense than its competitors to produce the product and bring it to market, the difference in price goes to margin.
The firm's brand equity enables it to make a bigger profit on each sale. Another benefit of successful branding is not having to work as hard, or spend as much money, on marketing. A company with a great reputation has thousands of customers on the streets spreading the word for it.
Compared to a lesser-known or less-reputable competitor, the firm with brand equity has less need to use marketing channels such as television, radio and search engine marketing to spread its message.
Its customers are doing that for free.London-based Brand Finance, a leading independent brand valuation and strategy consultancy, named Disney the world’s most powerful brand. Every year, Brand Finance evaluates thousands of global brands to determine which are the most powerful, measuring factors such as familiarity, loyalty and promotion, among others.
Apple's revenue from iTunes, software and services* from 1st quarter to 4th quarter (in billion U.S.
dollars)** Revenue of Apple from services segment (e.g. iTunes, AppleCare, Apple Pay. Moreover, Apple’s brand image is immensely associated with emotions, which is the reason for why Apple has such a praiseworthy brand image.
“Whenever Apple has problems with its products, its customers are incredibly forgiving and lenient” (Goodson, ). Apple Brand Equity and Apple's Customer Franchise The Apple brand is not just intimate with its customers, it's loved, and there is a real sense of community among users of its main product lines.
This preview has intentionally blurred sections. APPLE corporate equity brand access the demand of customer perception and ensures a total quality management in all the way.
Apple brand is very user friendly and it’s highly brings ease to the customers for its usage. In , the American Professor of Marketing, Kevin Lane Keller, developed the Brand Equity Model, which is also known as the Customer Based Brand Equity model of CBBE model.
Two dimensions Keller´s model is based on two dimensions: Brand Awareness and Brand Image.