Brand names and loyalty, like all other things, has suffered in this era of economic recession. Consumers have shifted they’re concerned to the price tag on commodities rather than the label. Results released from research conducted recently revealed that less than half of the American consumers remained loyal to their brands in the year 2008. Additionally, a Reuter’s article asserted that close to 19% of the customers reduced their brand loyalty while 33% completely defected to competitive brands in the same domain in the year 2008. Through all this turbulent period, the Apple Company has successfully managed to maintain or rather improve on their client loyalty (Kapferer, 2008).
The Apple Company has managed to build up a robust reputation. Furthermore, Apple sits at the summit as the most expensive brand worldwide. Apple is unanimously linked to high quality, innovation, and uniqueness. It is hard for the Apple Company to deliver products that are not associated with the aforementioned top-notch qualities. If the above statement was to be compromised the Apple Company will destroy its successful brand thus adversely affect its sales figures.
The business model that the Apple Company considers when manufacturing its products is that novelty and eminence are linked to high prices. Thus, the high prices charged on their commodities assure the clients that they are buying high-quality products. All this is considered as a psychological and business war that the Apple Company seems to triumph over it. According to human psychology, the high price charged is equivalent to the quality of the product. The apparent dissociation of Apple products and quality, which is represented through pricing, yields catastrophic results since it depositions an individual.
Brand loyalty is considered to be the fear that the consumer possesses of purchasing products from other brands other than the one he/she trusts. Brand loyalty can be measured through acts like customer contentment, monotonous purchases, and price sensitivity. It is the extent to which a client practices monotonous buying of the same brand within a commodity grouping. Under such conditions, the client remains loyal to his/her brand as long as the brand subsists. The client does not attempt to buy products from any other buyer who is in the same commodity grouping as the favored brand. Under such circumstance, the customer feels that the favored brand comprises of the required merchandise characteristics and class at the veracious price.
Even though there may subsist other brands at cheaper prices or better quality the brand loyalist will remain with his/her favored brand. At times some companies believe that they can alter their strategies and modify their products contrary to the underpinning of the brand’s reputation (Kurtz, 2013). Such a move yields catastrophic outcomes since the aforementioned alteration betrays the loyalty of the customers and the reputation that the brand stood on. Once a brand cheats its customers it pays a hefty price since all its customers will allow other competitive companies in the same product grouping to seduce them.
In the realm of attacking market opportunities and building merchandise reputation, market segmentation acts as the route to outlining the comprehensively homogeneous market into addressable objective pots and targeted requirements. The market segmentation strategy enables companies to spearhead combined product resolutions that comply with customer outreach and support. With strict regard to market segmentation, the Apple Company has managed to stuff their products with multiple features which serve specific user experience. A good example would be the recent iPod; the company was able to reboot the iPod nano by rolling back the iPod shuffle to an earlier version (interaction model). It is worth noting that the aforementioned effort depicts a key strategic restatement of successful products and not a mere reboot of the failed products. This reveals how much the Apple Company considers its user’s requests when making a product.
In terms of developing its brand equity, the Apple Company believed that technology is meant to aid people and they should be the generic core of any technology. The above statement formed the company’s basis for ‘humanizing technology’. The Apple Company places its focal point on a brand strategy which is based on user emotion and experience. Individuals’ collective recognition of the Apple brand is engraved with the company’s personality. The Apple brand personality is characterized by simplicity, affability, and fidelity. The Apple Company success in depicting the aforementioned personality in every facet of its operations has led to the enthusiastic espousal of its merchandise from those that support the Apple personality.
Retail stores owned by the Apple Company offer customers an ardent perception of the brand’s significance; ranging from the serene environment, counter-free till, hands-on experience and the pleasant assistance (Pride & Ferrell, 2012). The Apple brand value has managed to capture ardent factions who act as roaming billboards for the Apple Company who further esteem and knowledge about the products. The company has managed to create customer bases who advocate the brand through crafting visually striking products that comply with the principles of form and utility. Ultimately, the Apple Company embraces zealous humanizing strategies. Moreover, the Apple Company firmly conveys their brand designs through all key issues and conduct routine checks to ensure that their brand equity is consistent with the key issues brought up by the clients.
The Apple Company
Currently, the Apple Company holds the ‘white-hot center’ of the converged personal entertainment and computing market. In the context of its competitors, this position assumed by the Apple Company is hard to beat. The ‘white-hot center’ market position simply refers to a position where all the consumers in the market lay their focus on the Apple Company. This position serves as the principal spot of all customers’ devotion and they closely follow every move that the company makes. Apple’s positioning at this spot did not come as a fluke but rather a culmination of the company’s decade-long hard work and blunders of its competitors. As other technology companies made mistakes and stumbled, Apple capitalized on their demise and kept executing impeccably.
The aforementioned statement does not mean that the Apple Company did not have its fair share of flaws, but rather that Apple Company succeeded in circumventing storms and successfully refined on client contentment. The Apple Company experienced its own fair share of flaws in its manufacturing operations like flaws in its transparent iMacs and debris in 27 inch LCD monitors. The Apple Company has managed to successfully practice candidness and transparency in its operations thus being able to manage controversies when they appear. Contrariwise, its competitors have failed to keep up with the Apple Company products since they are often marred with operational concerns. Ultimately, due to the mere fact that Apple’s competition has failed to aggressively respond to the competition made by Apple’s products; it has led to the current positioning of the Apple Company.
Kapferer, J.-N. (2008). The new strategic brand management: Creating and sustaining brand equity long term. London: Kogan Page.
Kurtz, D. L. (2013). Contemporary marketing. Cincinnati: South-Western.
Pride, W. M., & Ferrell, O. C. (2012). Marketing. Mason, Ohio: South-Western Cengage Learning.
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