Brand Management Report: Apple's Portfolio, Hierarchy, and Value

This report provides a comprehensive analysis of Apple's brand management, exploring key aspects such as brand equity, portfolio strategies, and hierarchy management. The introduction emphasizes the significance of branding in creating a strong market presence and highlights Apple's approach to brand building, including its focus on consumer relationships, product quality, and unique value propositions. Task 1 delves into the fundamentals of brand management, defining brand and brand equity, and outlining the stages of building a successful brand, including market research, value proposition, brand naming, emotional connection, and consistent communication. The role of the marketing department in creating brand equity is also discussed. Task 2 focuses on Apple's brand portfolio and hierarchy management, explaining the company's 'Branded House' model and its approach to managing various product lines. The report then examines brand extension and leverage, along with strategies for reinforcing and revitalizing the brand. Finally, the report assesses brand value, brand awareness, market share, consumer attitudes, and purchasing intent, concluding with an overview of Apple's branding strategies and their impact on the company's success. References are included to support the analysis.

BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
Introduction.................................................................................................................................4
Main Body...................................................................................................................................5
Conclusion ..................................................................................................................................7
TASK 2............................................................................................................................................8
2.Brand Portfolio And Hierarchy Management..........................................................................8
TASK 3..........................................................................................................................................12
1.Brand Extension And Leverage.............................................................................................12
2.Weakness of brand that can be leveraged..............................................................................13
3 Partnership agreement............................................................................................................13
TASK 4 .........................................................................................................................................14
Brand value...............................................................................................................................14
Brand awareness........................................................................................................................14
Market share..............................................................................................................................14
Consumers attitudes..................................................................................................................15
Purchasing intent.......................................................................................................................15
Conclusion ....................................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Brand management refers to the planning and analysis on how a brand can become aware
in terms of producing better quality. According to the article of optimum impression Ltd, brand
is the power of the company and in this study we will determine that how the brand is the power
of our chosen company Apple. Apple is an American multinational company that produce the
electronic computer software and products to the consumers. For a good brand management of
Apple company, improving harmonious relationship with consumers is essential in the
marketplace. It includes the various aspects of products like price, quality and packing. The
present study shows the importance of the brand and also determine that how we can create the
better brand equity of the newly established company. Study lays emphasis on analysing the
brand portfolio and strategies used for managing the equity of brands in the organisation. Report
will highlight the stages of extension and leverage of brand including the analysis of strength and
weaknesses. In the study will also determine the various techniques of measuring and managing
the brand value of Apple.

TASK 1
“Brand is power”
Introduction
Brand
It refers to an experience of the consumers which differentiate the product of the
company from others through the branding strategies which includes the brand loyalty and
trademark of the enterprise. Its aim is to create good impression in the mind of the customers.
Brands are expressed in the logo and graphic representation.
Brand equity is a marketing term which determine the value of the company brand through the
consumer experience and perception in terms of the products or services. It is one of the
important factor of brand which can retain the financial value of the organisation through the
consumer recognition of the logo which increase the interest of the customer towards goods and
services of the enterprise(Ramaswamy and Ozcan 2016).
Stages of building a successful brand
Conduct an effective market search
For building a successful brand image, company has to find out the customers need through the
various surveys and conducting face to face interviews with the consumers. Also, to determine
that how many consumers know about their company's products and services. The Apple Used
customer research to found its weaknesses and new opportunities are available in market.
Focus on unique value proposition
In this product has to convey the unique value to the consumers by providing the
products according to the requirement of the customers at the less price, better quality, more
quantity etc. than other products. The Apple provide its product in low price compare to
competitors.
Select a brand name which delivers your information
When the need of the customers is identified, the next step is to provide the product information
to them, its time to select a brand name which can provide the message clearly. The brand
selected this name as steve job thought said that it was on his my fruitarian diets” and had just

come back from an apple farm, and thought the name sounded “fun, spirited and not
intimidating.
Creates an emotional contact
This stage is very important for building a successful brand image because it includes
the direct connection with the customers which is essential for improving the effectiveness of
the brand image. The Apple Creates an emotional contact with customers by connecting its
products with need and emotions of the customers.
Deliver a consistent communication
The final stage involves the good communication with the customer about the product in
terms of the quality, price and quantity for increasing the interest of the consumers. The Apple
Communicate about its product to customers through advertisement, marketing etc(Keller and
Brexendorf 2017).
Role of the marketing Department in creating a brand equity
Marketing department plays an important role in building a brand equity because it includes the
information related to the product, price and distribution channel. This program is essential for
creating brand image. Brand equity can be increased by the customers and for this marketing
department create the awareness in consumers towards company through the advertisement of
the products and service. The main role of marketing is not only highlights the products details
but also provide the way in which consumer can easily get the products and services of the
company. This procedure can enhance the brand equity.
Main Body
According to the David's model brand equity refers to the bundle of the assets and responsibility
which are linked to the brand, its name and logo that subtracts from the goodwill which is
provided by the product to the consumers. This model define how the brand equity assets create
the value for the customers as well as enterprise.
Through the David Aaker's model we can strengthen the brand equity, brand extension,
reinforcing and overcoming a brand crises by the each brand equity assets and liability.

The first determinant of the model is
Brand loyalty, it increases the value of brand by decreasing the marketing cost. Consumers
always wants that, product will be always available according to their need and giving them the
information about the way of uses product. The Apple can creates brand loyalty by increase the
quality of products for example provide the iPhone with high gesture censer.
Brand awareness, it includes the various factor which attract the consumers towards the
company products such as familiar with customers which can be improve by the recognition of
the company for their best quality products. The apple creates its brand awareness by social
publishing and paid social ads about the apple tablets in terms of improved internal procedure.
Perceived quality, It improves the better brand equity of company in the market by introducing
the customers about the quality and price of the product in terms of the importance of the goods
and services. Apple perceived its quality by positive customer experience and its current
corporate image. These can be possible through the consumer surveys about the uses of product.
Illustration 1: Aaker Model
Source: (Aaker Model- Defining Brand Identity (Philip Kotler Summary), 2018)

Brand association reinforcing the brand because it is associated with the persons or a special
personality which play the important role in improving the interest of the customers towards the
company by providing the specific information. It has also the competitive advantage in the
market because it provides the reason to consumers for buying the products.
Proprietary brand assets, Apple has legal aspects such as trademarks and patents which
protect the brand equity of the company from the other competitors which use the similar name
or packing of the products for confusing the customers. It strengthens the brand equity in terms
of the security and protection of the brand goodwill and trademarks.
Strategy for brand extension
Brand extension is a marketing tool which introduce the customer about the new
products of the Apple company to sell it. It is the process which help their business to grows in
new business area for gaining more profit. For brand extension Apple company follow the
various strategy such as developing art strategy of product and services which include the
digital hub. This all are element increase the productivity of the company which ultimately
results in the high profit margin.
Reinforcing strategy
The Apple company use this strategy for developing their business on a large extent in
the market place through the creative innovations. It includes providing the information about
product which are recognised by the executive to keep the customer informed about the quality
and price of product and also introduce the direction of the company in terms of the new trends.
Strategies to Revitalising brands or overcome with crisis
The Apple company adopt this strategy when their selling of products gets down and
decrease the level of profit. This problem can be solved through the innovation in the products
of the company. For example, in process of manufacturing a product they improve their internal
process or applications with innovation Apple can increase the sell of its product in the market.
Conclusion
Branding of Apple act as important tool of marketing for this organization because good
branding make the memorable identification in the mind of customers. The brand is the element
which attract the customers from the market place and also increase the productivity as well as
profit for Apple. Branding has supported firm in expanding there market share and attracting
more consumers. The branding shows the identity of product and services of the company

which is very essential determinants of the Apple company.(Barreda 2015).
TASK 2
2.Brand Portfolio And Hierarchy Management
1. Organizations Brand Portfolio Strategy
Brand portfolio is an umbrella which have collection of brands under company control.
To better explain what a brand portfolio looks like, consider Apple as company. In addition of
mobile, company produce many other entities as well. Brand portfolio encompasses all entities
of a company under an umbrella, when its entities have there own trademarks. Some models are
used for brand portfolio they are such as follows(Agostini, Filippini and Nosella 2015)
House of Brands- This model is used when various products of different categories have
different brand name. Firms which comes under this model have there own brand name which
popular than there parent company. Hindustan Unilever produced many numbers of products but
each product of this company have its own brand value in market such as lux, lipton, dove,
rexona, etc.
Branded House- This model is used when firm choose a corporate name for its all
products. Advantage of this model increased brand awareness, brand knowledge and reduced
marketing & advertising expenses. Disadvantage of this model is that if problem occur in one
product then negative effect of that comes on entire brand. Apple uses this model for its products
brand portfolio. Apple has many products such as Macintosh, i-watch, iPhone, iPod etc. but they
never differentiated with its master brand. Apple's logo located on the back of all its products.
Apple keeps its branding by running all its sub products(Liu, Liu and Lin 2015).
Hybrid (Mixed) Brand- In this model entity and its parent company both are promoting
together, and both have interrelated market value because of each other. Honda is example of
this model. Honda promotes its cars, bikes and all products with their own name as well as
company name (Honda).
2. Hierarchy of Organizations Portfolio
Hierarchy Management- Hierarchy management is a vertical link or chain of command
between superior and subordinate level of organization by different level of authority. In

hierarchy management lower levels are controlled by higher levels. Levels of hierarchy is known
as tall organizations have high no. of management levels where flat organizations have low no.
of management levels(Roll 2015).
Brand Name Hierarchy Description
iPhone 6S iPhone 6 and 6s is announced in 2015. It has
advanced hardware with 4.7” retina display,
5MP face time HD camera. This was the first
phone which support LTE advanced support
network and 3D touch display.
iPhone SE iPhone SE announced in march 2016. It has
4.0” retina display with A9 chip and 1.2MP
face time HD camera.
iPhone 7 iPhone 7 announced in 2016. It comes with
A10 fusion chip, 7MP face time HD camera. It
was announced with one unique feature that is
water resistance to depth of 1 meter up to 30
minutes.
Illustration 2: iPhone Hierarchy
Source:(Brand Hierarchy, 2016)

iPhone 8 iPhone 8 is announced in 2017 with many
advance feature of its previous products. It has
A11 chip and wireless charging which work
with Qi chargers. In this model capacity was
increased from 32 GB to 64 GB.
iPhone X iPhone X is announced in 2017. It has super
retina with 5.8” HD display. For secure login
face id feature launched in this model. This
model expanded its features such as Dual 12
MP wide angle telephoto cameras.
3. Brand Equity- Brand equity is the commercial value derives of a product from consumer
perception about the brand name instead of product itself. For this company use different types
of models such as Aaker's brand equity model, consumer based brand equity model
etc(Steenkamp 2017).
Consumer Based Brand Equity Model: This model is created by Professor Kavin Lane
Keller in his book Strategic Brand Management. This model incorporates managerial practices
and theoretical advances to understand and influence consumers behaviour. The concept behind
this model is simply lies on what customers have learned, felt, seen and heard about the brand as
result of their experience, and building a strong brand on consumers. The positive consumer
based equity is when consumer reacts more favourable to products. From this model brand
equity of product is building, measuring and managing(Wallina and Spry 2016).

Brand Salience: It can be described with this question 'who we are'. This is basically creating
awareness of brand. Apple found answer of this question that how and why customers buy its
product, by creating brand awareness through marketing, advertising. There are no. of products
are produced by apple and they all comes in knowledge with good marketing and techniques
used by apple.
Brand performance & imagery: It described in question 'what we are'. Apple identify what
brand or product they are. Apple focuses on how its brand satisfy primary need of its customers
by providing-new & innovative features or technology, best quality, best services etc. Imagery is
influence by intangible aspects of product or brand such as-word of mouth advertising.
Judgements & Feelings: Judgements and feelings is that what customer thinks about you.
Judgement aspect of apple is strong because customers of this brand are satisfy with its quality,
service, cost etc. Feeling is emotional branding which connects customers to its next level.(Wang
and Chung 2015)
Brand Resonance: This is the level where customer loyalty, engagement, attachment ad sense
of community is measured. Apple manages these four aspects very well in projecting its brand to
customers. Apple created attitudinal attachment in the minds of customers by make them feel
Illustration 3: Consumer Based Brand Equity Model
Source: (Brand Portfolio Analysis, 2015)

that they are flowing with the changing trend. Apple is a brand with that customers can have
happy and long-life relation because it gives high customer satisfaction with its products.
TASK 3
1.Brand Extension And Leverage
Techniques of brand leverage-
Brand Extension: Brand extension is launching a new product by using existing well developed
brand name. To increase and leverage brand equity organizations used this strategy. Brand
extension can be related or unrelated expansion. For example Apple started with I-phone and
eventually reached to develop other sub-brands like Mac book, I-watch and many more
Line Extension: Line extension is adding new variants in existing product. It is useful to reach
out to new customers who seek new benefits which are not offered by existing brand. It leads to
managerial focus on minor modification, packaging etc. instead of new innovation. Like for
example Apple first launched I-phone then deliver the other line products that includes I-phone
6, 7 and 8.
Brand Stretching or Vertical Extension:Vertical extension means introducing related brand in
the same product category. It used to grow there core business. It can be done in two ways-
upscale extension means where a new product launched in high price and high quality, than the
original is introduced. Downscale extension is when a new product launched in low price with
lower quality than original. Apple launched its all version of iPhone in upscale extension means
all new version of iPhone has high price with better quality to last one(Schuetze 2018).
Brand Extension Line Extension
When a company expand its products in
different unrelated markets.
When a company expands its existing product
with new technology, colour & features.
Apple started its brand extension before long
time ago. Examples of its extension is Mac,
iPad, iPhone, apple watch, apple tv, mp3
players etc.
Apple is a strong brand and one of its line
extension is . iPhone4, iPhone5, iPhonex etc
are also example of line extension.
Increase category of products launched by
Apple- personal computers, laptops, mobiles,
smart watch, smart tv etc.
Increase no. of products- iPhone 4, iPhone 5,
iPhone x etc.