Building and Measuring Brand Value: An Apple Case Study

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BRAND MANAGEMENT
APPLE
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Table of Contents
TABLE OF FIGURES....................................................................................................................3
INTRODUCTION........................................................................................................................4
TASK 1 BRAND MANAGEMENT & BUILDING BRAND OVERTIME..............................................5
TASK 2 MANAGING HIERARCHY & PORTFOLIO OF BRAND.....................................................10
TASK 3 EXTENSION OF BRAND & LEVERAGE...........................................................................14
TASK 4 MANAGING & MEASURING VALUE OF BRAND...........................................................18
CONCLUSION.......................................................................................................................... 21
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TABLE OF FIGURES
FIGURE 1: CBBE MODEL........................................................................................................... 7
FIGURE 2: APPLE'S BRAND PORTFOLIO..................................................................................10
FIGURE 3: PHONE LOGO.........................................................................................................14
FIGURE 4: BRAND AND LINE EXTENSION OF APPLE................................................................15
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INTRODUCTION
Brand management is the concept that helps the consumers in identifying the different
company's products separately; it also helps in establishing a unique image of the company
and its products. In the modern world where there is a huge competition among the
different companies, managing a brand of the organization is very important for the growth
and sustainable development of the company. This assignment will discuss the different
aspects of brand management with the help of various models and theories. The company's
brand portfolio will also be discussed in the report by putting efforts into building a better
brand image. The methods of brand leverage & the extension of the brand will also be
discussed. The company that will be discussed in this brand image is Apple, which is the
limited public company. The company was founded on 1st April 1976. The various products,
as well as services that are offered by Apple, are Apple watch, Macintosh, Apple TV, Apple
Music, App store etc.
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TASK 1 BRAND MANAGEMENT & BUILDING BRAND OVERTIME
“BRAND IS POWER”
INTRODUCTION
Brand: This term brand can be explained as a tool that helps differentiate the products of
the company from the other company’s products & services. The branding also helps the
company in building the position and changing the perception of the people so that
consumers could easily identify the products in the market. Branding act as the power, as it
also helps in attracting more consumers and provides a higher return on investment.
Brand equity: This term BRAND EQUITY can be defined as the value of the products that are
created by the company through strong brand awareness (Pappu and Christodoulides,
2017). The brand equity for the products of the company can be created through the
strategies that help in memorizing, easily identifying, and recognizing the products when
they are compared to the other generic products in the market.
BODY
The branding significance as a tool for marketing is discussed here in the company's
context:
Building trust in the market
When the satisfaction of the consumers increases with the usage of the products, they are
likely to repurchase the same product and in this manner the brand image and the brand
equity of the products of company increases (Kladou et al., 2017).
An increasing number of loyal consumers
Branding is a tool that not only helps maintain the huge consumer base, but this is also
helpful in maintaining the loyalty of consumers. When the consumers of the company get
the positive experience of the products then their loyalty towards the company increases
and this helps in building a stronger image of the brand.
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Market recognition
Through the process of branding, the products of the company get recognition in the
market; consumers can recognize and differentiate products from other brands. Positive
experience and the response of the consumers help to maintain better brand equity in the
market (Kladou et al., 2017).
Getting support to advertising activities through branding
Branding also provides support in managing the managing all the activities in the
advertising, through branding the advertising becomes easy and the effective techniques
that are used for promotion also get support with branding and formulate attractive
strategies for advertising (Kladou et al., 2017).
Different elements of the brand are being discussed here:
Brand loyalty
If there is a repeated purchase of the company's products, then that means customers have
created brand loyalty with the brand. This tool helps in increasing the equity of brands in
the market (Sasmita and Mohd Suki, 2015).
Brand awareness
When the products of the company are identified easily and consumers can differentiate
them from other competitors' products then that is called brand awareness.
Brand association
The brand association is the method that helps in differentiating the products of the
company from its competitors (Urde, 2016). When the consumers are giving a positive
reaction towards the products of the company then that is known as the brand association.
VARIOUS MODELS AND THEORIES USED
This is the model that is introduced by KELLER and the model is called CBBE i.e. the
customer base brand equity model, which helps in making the company’s connection with
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the consumers. In this model, there are four stages and this model is also called the brand
pyramid. The four stages of the model are being discussed here:
FIGURE 1: CBBE MODEL
[SOURCE: TASCI, 2018]
Brand identity: The brand identity can be explained and the customer’s perception towards
the company. This aspect can also be described as an awareness of the company’s brand.
This step is very essential as it helps in the identification of the goods as well as services of
the company (Shay and Van Der Horst, 2019). The identity of the apple brand is defined
through its logo and tagline i.e. Think Differently.
Brand meaning: This is the method that is used by the organizations for providing
information to the consumers about the brands, there are also two steps or parts of this
step and these are imagery & performance. In the context of Apple, the performance of the
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company is described as its products are user-friendly, long-lasting, and supports
multitasking greatly. The imagery of apple is defined as social status, greater quality, the
loyalty of brand, products of high end.
Brand response: The response of different consumers of the brand helps in getting
knowledge about how customers are judging and feeling about the brand. The response of
Apple's consumers, JUDGMENTS: that brand is service costs are high, premium price-
quality, and a brand more product-centric than customer-centric.
FEELINGS: I feel comfortable, proud & satisfied with the brand, high price accessories etc.
Brand resonance: The resonance of the brand helps to identify the connection between the
brand and its consumers. This is the method that explains the higher brand image of the
company and this happens when consumers have higher satisfaction and build a strong
relationship with the company (Tasci, 2018). In the context of Apple, the company's loyal
brand is good and that is still the dream of other companies. It has better customer
engagement, community as well as the attachment.
BRAND EXTENSION
Introducing new products into the market with the help of existing brands is called the
extension of the brand. This is a marketing tool that helps in bringing bother to new
products in the market. There is also another concept that is line extension in which similar
line products of the brands are introduced for providing greater satisfaction to the
consumers (Doraiswamy and Watchravesringkan, 2016). The main purpose of the line
extension is to increase the consumer level of the company.
BRAND REVITALIZATION
When the company reaches its maturity level of then to bring the company back to its
normal position of profitability is known as brand revitalization (Srivastava et al., 2015). This
method is used by the company in their marketing strategy as when the company’s profits
start decreasing.
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BRAND REINFORCEMENT
This is also known as the process of marketing in which the repurchase of the products of
the company are promoted and this also helps the company in mainta9h the brand image in
the competitive market.
CONCLUSION
The conclusion that can be drawn from the above discussion is that brand is an important
aspect that helps the company is moving towards growth & development. The branding is
an effective tool that supports managing the consumer base and also helps in providing
satisfaction. There is also the need for a better efficient plan that will make the strong
marketing activities of the company for building a better brand image in the market.
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TASK 2 MANAGING HIERARCHY & PORTFOLIO OF BRAND
INTRODUCTION
Apple is one of the largest multinational companies in the world; it has its headquarters in
California, UK. Some many different products & services are offered to consumers
worldwide. The company deals in the IT industry and the founder of the company is Steve
Jobs.
BODY
Different companies around the world are facing challenges in managing their company's
brand portfolio. The portfolio includes different types of products that help in providing
satisfaction to the consumers and also guides in attaining the goals as well as the objectives
of the company (NguyeZ et al., 2018). The company focuses on delivery the products with
differentiation, leverage, clarity, relevance and some factors that must be taken while
deciding the company portfolio are, return, features, impact, value etc.
APPLE’S BRAND PORTFOLIO
FIGURE 2: APPLE'S BRAND PORTFOLIO
[SOURCE: NGUYEZ ET AL., 2018]
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The brand portfolio of the company APPLE is very strong; there are almost more than 100
companies which are acquired by Apple. There are many products along with different
services that are offered by the company apple to its consumers. The most common and
popular brands of apple are Shazam, Emagic, Siri, NeXT, Prime Sense etc. all brands are
acquired by the company Apple. The company has a strong brand image in the market
because of the heavy acquisition that the company is planning and that makes it stronger
than other brands (NguyeZ et al., 2018). The acquisition of different brands for the company
is possible because of the powerful R&D OF THE BRAND. The company can gain a
competitive advantage in the market because of the stronger brand portfolio and image
among different competitors in the industry. The strategy of the company is premium
pricing and different technological brands are included (NguyeZ et al., 2018). The focus of
the company Apple was in bringing innovation into the market for satisfying their
customers, various products of the brand are iPhone, iPod, Mac book etc.
BRAND HIERARCHY OF APPLE PORTFOLIO
The strategic tool that is used by the company for displaying the number of products, their
nature that the company offers to its customers. In context to Apple, the identity of the
company that is maintained is monolithic brand identity; this explains that almost all the
products of the company are associated with the brand name apple (Park et al., 2016). The
current product families of the company include many different sets of products and these
are iMac, iBook, iPhone, iPad, iCloud etc. The prefix I that is used by the company in its
products are only for the consumer's products and this is not included in other products
range of the company (Park et al., 2016). Three different types of the brand hierarchy or
architecture are used by the companies and these are branded hose models, the brand of
the house model and the hybrid model.
Here in the case of Apple, the company uses the branded house model and this will be
explained here as under:
House of brands model
The strategy of the house of the brand model can be explained as when the products of the
same company are marketed and sold in the market with the different types of names that
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model is known as the house of the brand model is different from the branded house
(Kapferer, 2015). Some of the examples of this model are P& G, nestle etc.
Branded house
This model is very common and used by different huge brands for their brand management.
In this model, the products of the different brands are sold and offered to the customers
with a similar brand name of the company or under one umbrella of the company (Kapferer,
2015). The example of the companies in this model is goggle, apple etc.
Branded house of Apple
This strategy is used by the well-known company Apple; the strategy of the company is to
promote its products & services with a similar brand name. Using this strategy helps the
company apple in increasing its brand image in the market and also helps in increasing
efficiency, makes it easy to recognize, helps in moving towards success (Kapferer, 2015).
Apple offers a wide range of products to their consumers and these products are iPhone,
iPad, MacBook etc. the branding of the apple keeps in progress by considering all of their
sub-brands. Another strategy that is followed by apple is that its logo is presented on the
back of every product.
Management of brand equity
The brand equity of the company is the value that it gets additionally through managing
their brand image in the market. The brand equity of Apple, many aspects are included in
the brand equity of the company and these are trust, belief, awareness, loyalty,
understanding etc. between the selected group of different people. The understanding of
Apple with its consumers is better as they offer according to the needs of various consumers
(Steenkamp, 2017). The loyalty that different customers hold with the company products is
strong. The different sub-brands that are offered to consumers with higher standard and
quality that helps in satisfying their needs are Apple iPhone, iPad etc. the company products
always bring some new features for customers, there are always some innovation in the
products and because of that customers are highly satisfied and do not switch to other
brands (Steenkamp, 2017).
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