MS44302 Product & Brand Management
BRAND AUDIT OF APPLE
A project report submitted in partial fulfilment
of
the requirements for the degree
of
Master of Business Administration (MBA)
Submitted to:
Dr. Vibhuti Tripathi
Submitted By:
Shaiza Fatima (2019MB09)
School of Management Studies
Motilal Nehru National Institute of Technology Prayagraj
Undertaking
We declare that the work presented in this report titled “Brand Audit of Apple” submitted to the School
of Management Studies, Motilal Nehru National Institute of Technology, Prayagraj for the partial
fulfillment of the degree of Master of Business Administration (MBA) is our original work. It is not
submitted anywhere else for the award of any other degree.
Date: 29/06/2021
Place: Prayagraj
Shaiza Fatima(2019MB09)
Certificate
This is to certify that the project titled “Brand Audit of Apple” being submitted by Shaiza
Fatima(2019MB09) to School of Management Studies, Motilal Nehru National Institute of Technology
Prayagraj, in the partial fulfillment of the requirements for the degree of Master of Business Administration
(MBA), is a record of original work carried out by him/her under my supervision and guidance.
Date: 29/June/2021
Dr. Vibhoti Triphathi
Course Coordinator & Supervisor
Acknowledgment
The completion of this undertaking could not have been possible without the participation and assistance
of so many people whose names may not all be enlisted. Their contributions are sincerely appreciated and
gratefully acknowledged. However, I would like to express my deep appreciation and indebtedness
particularly to:
The Supervisors (Dr. Vibhoti Tripathi), Director MNNIT, Head of the Department SMS, All the faculty
members, the Research Scholars, Administrative Staff and the respondents.
To all relatives, friends and sponsors who in one way or another shared their support morally, financially
and physically, a heartfelt thanks to you.
Above all, I express sincere gratitude to the Great Almighty, the author of knowledge and wisdom for his
unending love and support.
I thank you.
Shaiza Fatima(2019MB09)
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Contents
Undertaking ................................................................................................................................................. ii
Certificate ................................................................................................................................................... iii
Acknowledgment ......................................................................................................................................... 4
Introduction ................................................................................................................................................. 6
Apple’s Organizational Structure Type and Characteristics ..................................................................... 7
Product Levels .......................................................................................................................................... 7
Brand Inventory .......................................................................................................................................... 9
Founder ..................................................................................................................................................... 9
CEO of Apple :Tim Cook ....................................................................................................................... 10
History .................................................................................................................................................... 10
Brand portfolio ........................................................................................................................................ 11
Competitor Analysis ............................................................................................................................... 11
Positioning of Apple ............................................................................................................................... 12
Communications, pricing and distribution strategy of apple .................................................................. 13
Brand Elements ....................................................................................................................................... 13
Marketing Mix ........................................................................................................................................ 14
Brand Exploratory .................................................................................................................................... 18
Brand funnel .............................................................................................................................................. 19
SWOT Analysis ......................................................................................................................................... 21
Recommendations ..................................................................................................................................... 22
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Introduction
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.[8][9][10] Its hardware products include iPhone smartphones, iPad tablet
computers, Mac personal computers, iPod portable media players, Apple Watch smartwatches, Apple TV
digital media players, AirPods wireless earbuds, AirPods Max headphones, and the HomePod smart
speaker line. Apple’s software includes the iOS, iPadOS, macOS, watchOS, and tvOS operating systems,
the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork
creativity and productivity suites, as well as professional applications like Final Cut Pro, Logic Pro, and
Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade,
Apple Music, Apple TV+, Apple Fitness+, iMessage, and iCloud. Other services include Apple Stores,
the Genius Bar, AppleCare, Apple Pay, Apple Cash, and Apple Card.
Apple Inc.’s organizational structure contributes to effective and rapid innovation, which is a critical
success factor of the business in the information technology, online services, and consumer electronics
industries. A company’s organizational or corporate structure is the combination of workforce groups,
resources, and interconnections among these groups and resources in the business. The organizational
design determines how the organizational structure is developed and managed. In this business analysis
case of Apple Inc., the corporate structure supports strategies that push for further technological
innovation. The company’s structural characteristics maintain a traditional hierarchy, with some key
elements from other types of organizational structure. Apple Inc.’s success is linked to innovation and the
leadership of Steve Jobs, and its corporate structure is partly responsible for ensuring support for such
leadership. Now, under Tim Cook’s leadership, Apple has made some small changes in its organizational
structure to suit current global market and industry demands.
Apple’s organizational structure is effective in supporting business performance to ensure leadership in
the industry, especially with regard to competing against Google, Microsoft, IBM, Intel, Amazon.com,
Sony, PayPal, and many other firms. The Porter’s Five Forces analysis of Apple Inc. determines that
these competitors impose the strong force of competitive rivalry in the company’s external environment.
Still, through the effective use and evolution of its corporate structure, Apple continues to improve its
capabilities and competitive advantages, especially in the area of rapid and creative innovation and
product design for competitive products in the international market.
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Apple’s Organizational Structure Type and Characteristics
Apple Inc. has a hierarchical organizational structure, with notable divisional characteristics and a weak
functional matrix. The hierarchy is a traditional structural feature in business organizations. The
divisional characteristics refer to the product-based grouping within Apple, such as for iOS and macOS.
The weak functional matrix involves inter-divisional collaboration, while the hierarchy is preserved.
Table 1: Product Hierarchy.
Firm
Need
Product
Product
Family
Family
Class
Apple Technology Electronics Smart
Product Line
iPad Air and
phones,
iPad
personal
MacBook,
Produc
Item/ Product
t Type
variation
Music,
Chips,
Mini, Mac,
phones,
TV,
software,
computers, Apple Watch,
games,
other
computer
iPhone 7, iOS
multim
facilities
software,
9, Apple TV,
edia,
hardware,
iPad
tablet,
iPhone
consumer
iMac, OS X
electronics
Brand
parts, Apple
PCs,
and
IT
Pro, iTunes,
6s, iPod,
Apps,
watch,
iPad,
etc
Product Levels
What a customer perceives a product is, the organisation looks at it differently. What do I mean by this?
Well, an organisation will say there are three levels to a product; core product, actual product and an
augmented product (Ferrell, Dibb, and Simkin, 2016). The core product is a level that is focused on the
core benefit, this attracts the customer to buy the product. The actual product is the features and
3 levels capabilities, including; quality, durability, design and the brand name. The final level is the
augmented product. This level concentrates on the support aspects, so this includes customer service and
warranty. For example, if we take Apple; iPhone, the core product would be the ability to keep contacts in
the one device and being able to call people. The actual product would be the features, the simple design
and the apple logo on the back of the device. Apple offer a service called ‘Genius Bar’, this would be
considered their augmented product as it’s a service that helps you with your Apple devices after you’ve
purchased them.
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A product line is a group of an organisation’s products that are closely related. In terms of ‘closely
related’ it means they are considered to be similar due to marketing and end-use considerations. However,
this blog will discuss Apple’s product mix. A product mix is all products that the organisation has to offer
customers. So when considering Apple, they have a large product mix, this is measured by the number of
product lines organisation offers. Apple has a wide product mix as they have many product lines, it ranges
from Apple TV to the most commonly known device, the iPhone. Below is an image that shows the
different product lines that Apple offer.
A product life cycle is the four major stages of the products ‘life’. These four stages are; introduction,
growth, maturity and decline. It is important for an organisation to be able to identify the stage of the
product life cycle, this is because at each stage they have the opportunity to modify the strategy so the
product’s life can be prolonged.
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Brand Inventory
Founder
Steve Jobs, in full Steven Paul Jobs, (born February 24, 1955, San Francisco, California, U.S.—died
October 5, 2011, Palo Alto, California), cofounder of Apple Computer, Inc. (now Apple Inc.), and a
charismatic pioneer of the personal computer era.
Jobs was raised by adoptive parents in Cupertino, California, located in what is now known as Silicon
Valley. Though he was interested in engineering, his passions of youth varied. He dropped out of Reed
College, in Portland, Oregon, took a job at Atari Corporation as a video game designer in early 1974, and
saved enough money for a pilgrimage to India to experience Buddhism.
Back in Silicon Valley in the autumn of 1974, Jobs reconnected with Stephen Wozniak, a former high
school friend who was working for the Hewlett-Packard Company. When Wozniak told Jobs of his
progress in designing his own computer logic board, Jobs suggested that they go into business together,
which they did after Hewlett-Packard formally turned down Wozniak’s design in 1976. The Apple I, as
they called the logic board, was built in the Jobses’ family garage with money they obtained by selling
Jobs’s Volkswagen minibus and Wozniak’s programmable calculator.
Jobs was one of the first entrepreneurs to understand that the personal computer would appeal to a broad
audience, at least if it did not appear to belong in a junior high school science fair. With Jobs’s
encouragement, Wozniak designed an improved model, the Apple II, complete with a keyboard, and they
arranged to have a sleek, molded plastic case manufactured to enclose the unit.
Though Jobs had long, unkempt hair and eschewed business garb, he managed to obtain financing,
distribution, and publicity for the company, Apple Computer, incorporated in 1977—the same year that
the Apple II was completed. The machine was an immediate success, becoming synonymous with the
boom in personal computers. In 1981 the company had a record-setting public stock offering, and in 1983
it made the quickest entrance (to that time) into the Fortune 500 list of America’s top companies. In 1983
the company recruited PepsiCo, Inc., president John Sculley to be its chief executive officer (CEO) and,
implicitly, Jobs’s mentor in the fine points of running a large corporation. Jobs had convinced Sculley to
accept the position by challenging him: “Do you want to sell sugar water for the rest of your life?” The
line was shrewdly effective, but it also revealed Jobs’s own near-messianic belief in the computer
revolution.
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CEO of Apple :Tim Cook
Tim Cook is the CEO of Apple and serves on its Board of Directors.Before being named CEO in August
2011, Tim was Apple’s Chief Operating Officer and was responsible for all of the company’s worldwide
sales and operations, including end-to-end management of Apple’s supply chain, sales activities, and
service and support in all markets and countries. He also headed Apple’s Macintosh division and played a
key role in the continued development of strategic reseller and supplier relationships, ensuring flexibility
in response to an increasingly demanding marketplace.
Prior to joining Apple, Tim was vice president of Corporate Materials for Compaq and was responsible
for procuring and managing all of Compaq’s product inventory.
Previous to his work at Compaq, Tim was the chief operating officer of the Reseller Division at
Intelligent Electronics.
Tim also spent 12 years with IBM, most recently as director of North American Fulfillment where he led
manufacturing and distribution functions for IBM’s Personal Computer Company in North and Latin
America.
Tim earned an M.B.A. from Duke University, where he was a Fuqua Scholar, and a Bachelor of Science
degree in Industrial Engineering from Auburn University.
History
Apple Inc., formerly Apple Computer, Inc., American manufacturer of personal computers, smartphones,
tablet computers, computer peripherals, and computer software. It was the first successful personal
computer company and the popularizer of the graphical user interface. Headquarters are located in
Cupertino, California.

Co-founder Ronald Wayne sold his 10% stake in Apple for $800.

Apple was founded on April Fool's Day in 1976.

The Apple logo was designed with a bite so that it wouldn't be mistaken for a cherry from afar.

Apple's market cap is greater than the GDPs of the Netherlands, Switzerland, Saudi Arabia,
Sweden, and Norway.

In 2011, Apple's financial reserves were greater than the U.S. Treasury's operating cash balance.
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Apple Inc., formerly Apple Computer, Inc., American manufacturer of personal computers, smartphones,
tablet computers, computer peripherals, and computer software. It was the first successful personal
computer company and the popularizer of the graphical user interface. Headquarters are located in
Cupertino, California.
Brand portfolio
Apple includes different technological brands, with premium pricing strategy. All the brands are very
successful in the market, especially the IPod, I phone, I pad, Mac book. Apple always focuses on
innovation and new design and with the little time they launch new model in their brands to keep their
brand on the top.
Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of
consumer and professional software applications, iPhone OS (iOS), OS X and watchOS operating
systems, iCloud, Apple Pay and a range of accessory, service and support offerings.
Competitor Analysis
Blackberry: Blackberry marketed their brand as sophisticated and the latest and savviest technology for
networking. Blackberry has the reputation of being elite and positioned high within the industry; it is only
fitting that they cater to and consistently revolve their advertisements around elite business types.
Samsung: Samsung has managed to maintain its position among the elite in mobile technology.
Samsung products are loaded with features that are generally sought out by technology lovers; Samsung
places heavy focus on the features and specifications of their products in their commercials. Currently
apple is the biggest competitor of Apple in smart phones and Ipad category.
Dell: Dell has positioned itself in the market as a competitor to Apple with high affordability and is also
user friendly. Dell’s marketing campaign has always been catered to families and everyone in it. Using
the fact that their computers are more affordable than more expensive brands such as Apple, Dell focuses
their advertisement campaign with an economical approach. So dell is the direct competitor of apple in
laptop category.
Android: Samsung’s success and large market share is in fact due to the latest craze for the Android
operating system. The Android operating system is used in various different models with a few different
vendors such as LG, Sony Ericsson, HTC, and Motorola. The advertisements for these models are all
essentially sending out the same message as they are all trying to state their models are very advanced and
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on the cutting edge of technology. So it also the competitor of apple, because the other mobile companies
offering handsets with android software installed.
Microsoft: Another Direct Competitor to Apple would be Microsoft and their latest operating system,
Windows Phone 7/8. The Windows operating system prides itself on being quick and that it will “get you
in and out and back to life,” starting with the “Really?” campaign. The Windows phone advertisement
campaign revolves around social life and activities .
Positioning of Apple
Positioning of a brand is a marketing effort and can only be done through promotion and advertising. A
company’s brand identity, its elements, its product and its communication, they all play an important role
in positioning a product.
In other words, positioning is nothing but an emotional value that you have towards a brand.
Apple is all about the experience, it goes after the emotional branding something which is felt in the heart
and the mind of the customer.
Apple brand is reflected through their core beliefs about innovation, design, and imagination.
All these 3 beliefs are strongly reflected and promoted through their products, advertisements and
customer experiences.
Apple is positioned as a luxury brand that carries a huge emotional connection and loyalty among its
customers.
Below are the factors which attributed to the positioning of Apple in the market
Brand Identity: All the intangible brand assets like Apple’s brand values, its culture, employees, Brand
colors, Tagline, Tone of voice, Type of Imagery etc all these elements contribute in forming a specific
position in the minds of the customer.
Product Design and Quality: Since its inception, Apple has been rolling out products which have been
an epitome of design and quality. Apple Macintosh was the first personal computer to have a mouse and
graphical interface for a user. Apple’s iPod made the old ugly walkman’s put to shame.
Apple has always come up with innovative technology and improved designs and this, in turn, has led
them to have a strong command in the market and ask premium prices for their products.
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Advertisements: ” The less the Better”: Apple always followed “The Less the Better” philosophy – Clear
and straight messaging, and usage of minimalistic colors is what has worked wonders for Apple. The
usage of mediums to promote their messaging also plays an important role in positioning Apple.
Communications, pricing and distribution strategy of apple:
Apple is also innovative and good in their communications; its communication has a unique style. As in
the TV ads, print ads, and in online ads they don’t endorse the famous personalities and celebrities to
promote their products Rather, Apple just sticks to a communications strategy that aims to relate to
consumers how innovative, sleek, and reliable its products are compared to other competitors. Apple
communication is simple, clear, minimalist and clever. Well of course when u have great products it is
much easier to attract the customers, but nevertheless doing it with style and cleverness is very crucial, it
boost sales and enhances the brand value too just like apple do so. One of the most communication
strategies of Apple is the “I am a Mac, I am a PC” television ad, in a humorous way, this ad exposes
Window’s weaknesses while emphasizing the benefits of the Macintosh operating system.
Apple also distinguish itself through its premium pricing strategy, They always charge high prices for
their products because they claim that they not only sell the quality products but they give style and class
to the people and those who use the apple consider themselves elite and reputable in the market. As
currently apple launch its I phone 5 with the starting price of RS.95000 which is the huge price but before
its launching advance booking break the all records of history in terms of sales.
With regards to distribution, Apple sells its products in a number of ways. First, there are the Apple
stores, which can be found in many major shopping centers, malls and outlet stores. Secondly, Apple
products are also sold in retailers such as Wal-Mart, Target, and Best Buy etc, third, Third, Apple also
sells its products through the iTunes store and Apps store available online. Lastly, Apple has a website
wherein customers can browse and buy products in a very convenient manner. Due to its extensive range
of distribution system apple make easy for its customers to test and buy their products, and it also adds to
the brand’s value, since it enables Apple to be more visible to customers.
Brand Elements
Logo: Apple’s distinguishing symbol is the apple with a bite taken out of it. Although their logo has
changed since the 70’s (the rainbow apple to the monochrome apple), the effect on customers is the same.
Once they see this icon on a product, that product is associated with all of the perceptions of the Apple
brand, such as quality and innovation. The product is immediately perceived as the best of its kind
because it has the symbol of the most valuable technology company in the world. So logo of apple is the
element of their brand.
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Packaging: Apple’s products are packaged in very simple boxes that are designed to connect with the
consumer. On the outside, the design of the boxes is very plain and usually only features a picture of the
product. It is opening the box for the first time that makes the package special. There is a department
within the company those are specialize in the designing, packaging and testing which ones elicit the
perfect emotional response on opening. When customers open the box of apple first it become the
memorable moment for them, and they want to repeat by repurchasing the product again.
Slogans: Apple utilize its variety of slogans to promote their products, for their each product line they
have different slogans which describe their importance, benefits, use and creativity of that product and it
does so in creative fashion, Several of their slogans often emphasize the innovation of their products. For
example, as they use for their App store that “Your iPhone gets better with every new app.” The other
best example is which they use for their ipad is “Thinner, Lighter, Faster, Face time, Smart Covers. 10
hour battery.” Several slogans also state why
Apple’s products are better than competitors’ products (including preceding Apple products). In 2008, the
slogan, “The first phone to beat the iPhone” was used to advertise the iPhone 3G.
Currently they use slogan for Apple 5 is “The biggest thing to happen to iPhone since iPhone”
Marketing Mix
Apple Inc.’s marketing mix (4P) indicates how the company matches its business activities to the
conditions of the global market for information technology, consumer electronics, and online services. A
company’s marketing mix involves the strategies and tactics pertaining to the implementation of a
marketing plan. The focus of the marketing mix is on the 4P variables, namely, Product, Place,
Promotion, and Price. In this business case, the marketing mix is specific to the technological nature of
Apple’s business. For example, the company’s 4Ps encompass multinational operations in the consumer
electronics market, the information technology market, the Internet services market, and the digital
content distribution market. Such diversity in operations brings Apple Inc. in competition with a variety
of firms, such as Google, Amazon.com, Samsung, Dell, Lenovo, Sony, and PayPal, as well as Microsoft,
IBM and Intel. These competitors are known for their aggressiveness in innovation and marketing. As a
result, Apple has a marketing mix that involves various strategies and tactics that correspond to the
approaches of these other firms.
In developing its marketing mix, Apple Inc. uses an approach that focuses on premium branding. This
approach involves capitalizing on the premium brand, and ensuring that all of the 4P elements support the
maintenance of a strong brand image. For example, Apple’s prices match its premium brand, as well as
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the corresponding consumer perception that equates the company’s products with high value and high
quality. Reinforced with appropriate 4Ps, such response to the market enables the corporation to keep its
wide profit margins. These conditions help fulfill Apple Inc.’s corporate vision and mission statements.
Apple’s Products (Product Mix)
This marketing mix element determines the outputs of the business organization. In this case, Apple’s
product mix includes goods and services that are classified as, or involves information technology.
However, the company continues to expand its product mix, creating the possibility of adding non-ITrelated products in this 4P element. Apple Inc.’s main product lines are as follows:

Mac

iPhone

iPad

iPod

Apple Watch

Apple TV

Digital content

Software

Accessories

Cloud services
These product lines are associated with human resource utilization and business processes based on
product-based divisions, which are a characteristic of Apple Inc.’s corporate structure. The Mac
product line includes desktop and laptop computers of various sizes for different market segments. On
the other hand, the iPad, iPhone, iPod, and Apple Watch are mobile devices with some functions
similar to those of Mac products. This element of the marketing mix shows that the company operates
in the consumer electronics products. In the company’s current strategic management approaches, the
Digital Content product line includes digital music, videos, e-books, and games. Through digital
content, Apple TV, and Software like mobile apps, among other products, Apple Inc. operates in the
digital content distribution industry. Moreover, the company’s 4Ps include products based on cloud
technology, which allows customers to store and access their data, and use software as a service
(SaaS), such as iWork for iCloud. The product lines in this 4P element are based on the outputs of the
product development growth strategy (see Apple’s Generic Competitive Strategy & Intensive Growth
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Strategies). This element of the marketing mix reflects Apple Inc.’s evolution from a computer
technology business into an increasingly diversified business with focus on information technology.
Place or Distribution in Apple Inc.’s Marketing Mix
This element of the marketing mix involves the selection of appropriate places or venues through
which the company distributes its products. Apple Inc.’s business case involves company-owned
locations, as well as other parties that the company authorizes to distribute its products. The following
places are included in Apple’s distribution strategy:

Apple Store locations

Company-owned website and online stores for desktop and mobile

Authorized sellers

Telecommunications companies
Apple Store is a subsidiary of Apple Inc. that operates physical or brick-and-mortar stores that sell the
company’s products, along with related products from other manufacturers. For example, these stores
sell MacBook units, as well as peripheral devices from other companies. In addition, customers can
buy products through Apple’s website and online stores for desktop and mobile. Customers can buy
consumer electronics through the company’s website. Apps, music, movies, and other digital content
are available through online stores for desktop and mobile, such as the App Store and the iTunes
Store. In this element of the marketing mix, the inclusion of these online distribution channels helps
optimize international market reach. Also, Apple Inc. includes authorized sellers in its distribution
strategy. These sellers operate stores in various strategic locations, such as in shopping malls in
different markets around the world. The sellers include large retail firms like Walmart and Best Buy.
Some authorized resellers sell through their own stores as well as their seller accounts on
Amazon.com. Moreover, the company has agreements with various telecommunications companies,
such as Verizon, AT&T, and Sprint, which offer iPhone units integrated into some of their
telecommunications service packages available to subscribers in local or regional target markets.
Thus, Apple’s marketing mix is comprehensive in taking advantage of online and non-online
distribution channels.
Apple’s Promotions (Promotional Mix)
Also called the marketing communications mix, this element of the marketing mix determines the
communications tactics that the company uses to reach its target customers. Apple Inc. promotes its
products in various ways, involving different communications channels and parties. In addressing this
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4P element, the company emphasizes the premium brand image and premium quality of its products.
The following communications tactics are in Apple’s promotional mix:

Advertising

Personal Selling

Sales Promotion

Public Relations
Apple Inc.’s marketing mix includes advertising, such as on Google’s digital advertising network and
on technology news websites. The company has agreements with various prominent websites to
advertise and promote Apple products. In addition, the company uses personal selling in the form of
Apple Store employees who provide product-specific information in the aim of convincing store
visitors to make a purchase. Also, among the 4Ps, this element involves sales promotion, which
usually happens at the Apple Store locations and authorized reseller locations. For example, some
locations offer old models at discounted prices when bundled with larger or more expensive products.
Moreover, the company uses public relations to optimize its corporate image. For instance, Apple
Events, leaks of new product features, press releases, and exclusive interviews are carefully executed
to maximize positive publicity. The company is also involved in various initiatives, such as
ConnectED, which aims to improve formal education outcomes, while promoting the business and its
products. These efforts are linked to Apple’s corporate social responsibility strategy and stakeholder
management efforts. The company uses such communications tactics to satisfy this element of the
marketing mix, pertaining to business needs in reaching more customers worldwide.
Apple’s Prices and Pricing Strategies
This element of the marketing mix sets prices, price points, and price ranges for the company’s
products. Apple Inc. uses the following pricing strategies:

Premium pricing strategy

Freemium pricing strategy
The premium pricing strategy involves offering products at a premium. In theory, a premium is an
amount that is applied in addition to the typical or common price. In this regard, Apple’s use of the
premium pricing strategy sets high prices for its products. For example, in general, iPhones are more
expensive than Samsung smartphones. Premium pricing maximizes profit margins. Even though the
SWOT analysis of Apple Inc. shows that such high prices are a weakness, the company utilizes
premium pricing in combination with premium branding and creative innovation. Such combination
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ensures competitiveness. Creative innovation is supported through Apple’s organizational culture.
Aside from premium pricing, the company also uses the freemium pricing strategy. This strategy
involves “free” and “premium” pricing combined into a single strategy. In this freemium pricing case,
some of Apple Inc.’s products are free, but customers pay to access more, advanced, or better
features. For example, the company offers free 5-gigabyte iCloud storage. However, to add more
storage capacity, customers must pay a recurring fee. In this regard, Apple’s marketing mix is aligned
with premium branding and associated product design and development efforts.
Brand Exploratory
The mental map of any brand shows what comes in the mind of the customer when he thinks about the
Brand.
It is innovative as apple is always focusing on innovation and they design each product with great and
unique design. Customers think apple as their lifestyle and passion and they use the products with full of
excitement. Even though it’s in higher price compare to its competitor’s products but still people love to
use Apple’s products due to its quality and features of the product.
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Brand funnel
Brand funnel of APPLE
Attributes
Functions
Sleek design
technologically sound products
uniqueness (its different)
Sense of style and elegance feels good to use high performance products
Rewards
increase self steam
Values
Personality
Confidence on product
Pride and sophistication
Trust worthy
creditbility
professional
uncommon
distinctive
exclusiveity
accomplishment
Brand resonance pyramid
Salience
When a customer hears the word “Innovation”, Apple is the first
brand that comes in mind. Apple also provides features which is
unique and innovative. It is mostly considered as a luxury brand
worldwide by customers.
Performance & Imagery
In terms of brand performance, Apple has set the highest
benchmark for others to follow. Their products are of very high quality offering great options, ease of use
and beautiful designs. This is the reason that they charge a premium for their products. Apple products are
in line with its competitors. But when it comes to supplementary features, Apple has gone many steps
ahead and has provided users with something revolutionary every time. In terms of reliability, durability
and serviceability, there isn’t any company even close to the level of Apple.
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Apple brand is associated with sophistication and technology. Apple products are generally bought by
computer and fashion savvy customers rather than the usual computer user. This is because they are
looking for something more than functionality and Apple delivers that little extra in a very distinctive
manner. The multi-coloured logo itself depicts that Apple is for all races and creeds. The meaning of the
name also gave the company a friendly and warm based personality.
Brand Judgments & feelings
Customer judge Apple by keeping 4 things in mind: quality, credibility, consideration and superiority.
Products of apple have good quality and it is one of the most trusted brands in the world. Being
innovative is its core competency and it has definitely caught the attention of the customer. Apple as a
brand is very close to its customers and has been able to give them what they want with very close
precision. This has created a high level of consideration for the brand with the customers. And it is also
the most superior brand in the world.
Apple brand spreads out feelings of fun, excitement and pride. People who own Apple products always
look forward to using them with a lot of enthusiasm. The brand through its advertising has created an
image of being diverse and colorful. This has been deeply etched in the minds of the customer
Resonance
Apple customers relate to the brand very intimately. Repeat purchases are very common. They feel a very
strong attachment towards the brand because it portrays a very different image. The person who uses
Apple are satisfied and feel good and elite by using the product. Apple experience has created deeper
attitudinal attachment in the minds of the customer.
Marketing Strategies
Apple is also very innovative and efficient in terms of its marketing strategies and campaigns. Through its
marketing advertisement they communicate with their customers effectively, the advertisements of Apple
are simple, innovative and clear in which they indicate the benefits and features of the product and they
also show that how by using the brand their lifestyle will change. As in their ads of iPods’ they show the
how people are enjoying and dancing on music, it creates a kind of excitement and image in the customer
mind. When Apple first decided to engage the PC market, it aired a Super Bowl commercial, a young
woman with a huge sledgehammer smashes it into a massive television screen, bathing the bald-headed
drones mesmerized by the monitor in a brilliant white light.
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They also started co-branding in 2004 with Nike, in which a person wearing Nike products using iPod
and listing music and enjoying his walk. They also do their promotion through social media and get
feedback and suggestion from customers through different blogs. “Get a Mac campaign” also received
positive feedback which ran from 2006 to 2009 in which a person in white shirt introduces himself as “I
am Mac” while a man in a more formal suit-and-tie combination introduces himself as a Windows
personal computer and then capabilities and attributes of Mac and PC are compared and distinguished
how Mac is more beneficial than other.
Their overall marketing strategies are good and innovative through which they communicate customers
and show the benefits and features of their products and to get attention of the customers
SWOT Analysis
Strengths
Over the years apple has grown by offering superior products compare to its competitors. Apple has
positioned itself to be a pioneer in laptops, iPhones, and iPads.
So apple has the following strength listed below:

Strong brand image

Exclusive retail stores

Focus on R&D

High customer loyalty

High stock price in technological industry

Overall top brand in the world
Weakness

Decision to restrict iPhone to a single operator was unpopular in several markets of world.

Small product line

Only offered touch screen gadgets.

Only supports Apple Mac utilities.

Battery problem
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Opportunities

International expansion

Constant growth in technological products

Good relationship through joint venture with other big brands.
Threats

Competition in technology with other PC industry giants like Hp, Dell, Lenovo and other mobile
industry like Samsung, HTC, Blackberry.

Expensive products as compared to its competitors.

Recession can hit apple’s overall sales.
Recommendations

Apple’s brand is associated to a poor or lack of corporate social responsibility. Compared to
Apple, its competitors like Microsoft donates an estimate of $400 million yearly to various
organizations. Same for IBM, which shells out around $150 million to schools and non-profit
organizations. Thus Apple should also invest in such activities As a result, will improve the
brand’s image considerably and quash all associations of the brand as not being socially
responsible. In return, brand equity will be built, and customer goodwill and perception of the
brand will also be strengthened.

To deliver the desired brand positioning, we recommend that Apple should continue to implement
its “I am a Mac, I am a PC” ad campaign because this marketing program states the benefits of
using an Apple product rather than those of its competitors in a very simple, yet entertaining
manner.

They should continue to use the Apple Store to give customers the ultimate shopping experience.
For instance, Apple must not stop giving consumers the opportunity to feel, touch, and use
sample Apple products that are displayed in all Apple stores.

Apple should also sponsor in sports events like: Cricket, Football, Olympics etc through which
they can communicate with the huge population of different countries
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