In fact, one of its iconic ads claims that it’s for “the crazy ones” – those who aren’t contented with the usual. Buyer personas are semi-fictional representations of your ideal customers. They’re semi-fictional because even if the names and faces are fictional, their characteristics, such as demographics and pain points, are based on actual data about your target market.
The ‘Shot on iPhone’ campaign effectively combined human emotion with genuine product advantages. This was achieved by giving customers the chance to be a part of something big. The first segment of the campaign was seen at least 6.5 billion times! It strengthens their connection with the viewer by showing how their products fit into people’s lives. Ever wondered why consumer expectations are through the roof when Apple launches a new product? Apple users have come to expect nothing less than great innovation and groundbreaking technology from their phones and PCs.
- Apple said in written arguments that the lawsuit is “baseless” and strongly denies its iPhones’ batteries were defective, apart from in a small number of iPhone 6s models for which it offered free battery replacements.
- Branding represents one of the most important parts of your company.
- One of the benefits of having a valuable brand is your advertising dollars go further because ads from a well-known / well-loved brand get more attention from viewers.
- A strong brand can also give a company a competitive advantage in the market, as consumers are more likely to choose a familiar brand over a lesser-known one.
Brand awareness concerns the extent to which a brand is known or recognizable to a consumer. U.S. companies landed 56 brands among the top 100, as well as 80% of the top 10. Germany , France and Japan were the next most prolific countries of origin.
Sudden Loss of Brand Equity & Negative Brand Equity
This ability to quickly and inexpensively enter new markets is valuable. Brands with high brand equity can leverage their asset through licensing. Brand loyalty is how likely a customer is to repurchase from a brand after their initial. A customer loyal to a brand will only purchase that brand for that product category, versus a customer who is not brand loyal and will buy any brand of a product. For example, if McDonald’s gets me excited with an advertisement showing a ready-to-order Big Mac that looks warm, juicy, and flavorful, then that experience is their brand promise.
It flows from the idea that an established and recognized brand is more valuable than a generic equivalent. Since the customer’s perception drives brand equity, building brand equity is all about understanding and delivering on the customer’s expectations. Luxury brands like Rolex and Ferrari are examples where substantial brand equity drives profitability. They might not sell as many products as the likes of Timex or Toyota, but the brand equity alone is more than enough to keep them operating and innovating. Apple had a stellar 2021, highlighted by its achievement at the start of 2022 – being the first company to reach a US$3 trillion market valuation.
“Apple still needs China on a near-term basis to drive sales and profits,” said Tom Forte of D.A. “Long-term, emerging markets are important, especially India from a supply chain and sales standpoint.” But not all of Apple’s business lines were immune to the electronics slump, with sales of Macs falling sharply while iPad revenue slipped. Sales in China also dropped 2.9% to $17.8 billion, a slightly larger drop than overall revenue.
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 theirmargin. The firm’s brand equity enables it to make a bigger profit on each sale. Apple is one of the most famous brand, because of its “apple” logo, which is very eye-catching. Distribution and marketing is very strong in European countries, but in countries like Pakistan and India, its distribution and marketing is relatively weak. However, it is expanding in every country and has users from across the globe.
Although this might seem like it places newer brands in a position to rise quickly to the top, that’s not necessarily the case. If you fail to generate motivation around your brand, you’ll likely be overlooked by consumers and undervalued by investors. It occurs when some company traits become ingrained in the minds of customers.
“We were thrilled by our performance in emerging markets,” Cook said. “We set records for the iPhone installed base in every geographic segment, and we had very strong ‘new to’ emerging markets, particularly in Brazil, India and Mexico.” Apple Inc executives on Thursday forecast gross margins above Wall Street expectations despite predicting a slight fall in revenue in the company’s current fiscal third quarter. While this is incredibly impressive, it isn’t all that hard to believe. Even though the iPhone with the most storage space is more expensive than certain laptops. It’s likely that your next phone will cost more than your computer.
Measuring brand equity should be one of your top business priorities. Inject a little humor into your marketing message to make your brand stand out in a crowded field of competitors. Look at how a fun approach to doing business has helped Dollar Shave Club. Each of your customers shops with a unique set of preferences. Consumer behavior is often based on the “creature of habit” principle. Behavioral factors typically come from determining buying habits.
The number of active Facebook users reached 2.4 billion this year, but the social media brand has been hampered by concerns around data protection, privacy policies and fake news. Apple topsForbes’ annual look at the world’s most valuable brands for the ninth straight time. The brand of the tech giant is worth $205.5 billion, up 12% over last year. It is the first time a brand crossed the $200 billion threshold.
And that is exactly what many of its users are paying a premium for. Apple products are status symbols based on emotion rather than necessity. Does your business rank at the top of Google for your main products or services?
Customers enthusiastically promote your company when they find out there is a little something in it for them to do so. Dropbox represents one of the models for implementing a brand-building customer referral program. The company rewards customers that provide referrals by giving them an additional 500 MB of storage space. Apple set the tone for its brand equity strategy in numerous memorable commercials highlighting the company’s uniqueness, and popular electronic devices. Effective marketing programs shine the light on businesses, and in turn, more consumers become aware of their brands. Most consumers interact with businesses that feature a product that matches their buying preferences.
In my 20 years of brand strategy practice and research I’ve learnt thatall of the world’s strongest brands also answer these same questions. Brand equity forms a significant component of marketing strategies, given its significant impact on a brand’s ability to sustain competitive advantage in the long term. Brands with high brand equity are exposed to significantly less risk when introducing line extensions or extending their brand name to new products since the brand name alone carries a value. Such products will also enjoy a low price elasticity, meaning that consumers will be less inclined to switch to even those competitors with lower prices.
All you need to do is increase your follower base and enjoy wide visibility for your brand. Brand equity is built by competing against and beating the customer’s expectations. That will help you stand out from the competition in the customer’s eyes. At the same time, differentiating your brand from the competition is an integral part of a healthy brand strategy. They call these their three lenses, and, according to Tor Myhren, VP of Marketing Communications at Apple, “If a product is not made up of these things, it’s not Apple”. These words also inform all of Apple’s infamous marketing campaigns, as Mark Ritson shares here.
Companies with brand equity enjoy a healthy top and bottom line. When customers see your brand as better than the competition, they will pay a premium for owning it. That enables the brand to enjoy higher sales and profitability over its competitors. This proven formula is based on my 20 years of global brand strategy experience and study of the 181 world’s most valuable brands, and it’s yours today, for free. He said while markets and products change, the values and core beliefs that underpin your company shouldn’t.
Consumers feel confident that Nike will deliver consistently high-quality products and customer service. An assurance to deliver a high-quality product or service every time they engage with your business. So, it’s important for your brand identity that your marketing remains consistent. Not long ago, market research shop Millward Brown released a ranking of the world’s most valuable brands. The value of its brand was $153 billion, up 84 percent year on year. Yes, Apple spends lavishly on promoting its brand, but the study attributed the spike in brand valuation to the impact of two products — the iPad and, to a lesser extent, the iPhone.
The company’s services division includes its App Store, Apple Pay, iTunes, cloud services and more. It is now the second biggest segment for Apple after the iPhone, with revenue of $37 billion in 2018, and Morgan Stanley expects it to top $100 billion in 2023. Penetration pricing is a marketing strategy implemented to draw customers to a new product or service. Apple said sales for its fiscal second quarter ended April 1 fell 2.5% to $94.84 billion, better than analyst expectations of a 4.4% decline to $93 billion, according to data from Refinitiv.
A brand’s promise is its unique value offering that customers get excited about.The brand promise is communicated through advertising, websites, packaging, and sales pitches. All of these set an expectation for the product in the minds of the customer. A popular brand enables a business to sell more products at a higher profit margin; that ability is valuable.
Brand awareness is how many people are aware of a given brand. A valuable brand is the sum of a few attributes, each with its own value. Let’s say the burger didn’t look like it did on the ads, was dry and flavorless, or took forever to receive. I would have a bad experience, and I would be less likely to believe McDonald’s future brand promises. Theoretically, Apple could sell its brand for $234 B to Microsoft, Facebook, or any business with that much cash or stock. A third of the value of Apple of the company is the value of it’s brand.
brand equity of apple with solid brand equity spend less on marketing and advertising because they don’t need to spend as much. According to a recent report by Statista, the top ten companies with the highest ad-spend don’t include Facebook, Apple, or Coca-Cola, which implies that name recall alone is enough to drive sales. It is the ability of a company to differentiate itself from the competition by offering a superior product or service and excellent customer service. It also allows the company to charge its customers a premium for the brand and its products.
Brands with strong brand equity are often better able to attract talent. Such brands may also be better positioned to gain investors’ trust, who will have greater confidence in yielding returns on their investments. How you communicate what your brand stands for will significantly impact your brand equity. It is essential to deliver on both performance and imagery (meeting the psychological needs of your customers through developing your brand’s personality and overall image). These assets are vital to ensuring that other brands cannot compete by operating under a similar name or using very similar packaging, which may confuse consumers and compete away from a brand’s customer base.
For example, a plain white t-shirt will be hard to sell, and the store can only charge about $5 for the tee. But put a Supreme logo on a white t-shirt, and it can sell for hundreds of dollars. If you add a well-known, well-loved brand to a blank product, then more people will be interested in it, and you can charge more for it. Brand equity is how much money a business would buy a brand, or sell their brand for. Don’t co-opt social causes at a surface level just to boost your brand. Either get fully involved like Nike did recently with Colin Kaepernick, or avoid it altogether.
People are more likely to buy from the brand that they are familiar with. Just the mere fact that the brand is known brings more value to the products that are sold under its name. By gaining awareness, you develop familiarity and visibility, which serves as an anchor for other positive associations. A good brand accumulates this equity over time with a well-defined focus on its products and service.
We start by reviewing both the simple definition of brand equity and one someone would learn in business school. We look at some examples of brand equity, like the value of Apple’s brand. Then we look at all the things that add up to create brand equity. Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore’s latest breaking news regarding all of Apple’s products and services, both hardware and software.