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7/30/2019 Brand Audit of Ipads (1)
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The School of Management & Entrepreneurship
Master of Business Administration
PROJECT REPORT
BRAND MANAGEMENT
Brand Audit Report for Apple i-Pad
Prepared by:
Paras K. Savasiya
[Semester-II Block-III (0120117)]
Submitted to:
Dr. Rohit Singh,
Associate Dean and Professor in Marketing,
AURO UNIVERSITY,
SURAT
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]7/30/2019 Brand Audit of Ipads (1)
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Table of contents:Sr. No. Title Pg. No.
Executive summary
1. Objective of study
2. Method of data collection
3. Brand inventory
3.1 History
3.2 Product related attributes
3.3 Apple iPad brand portfolio
3.4 Competitors review
3.5 Communication strategy
3.6 Pricing Strategy
3.7 Distribution Strategy
4. Brand exploratory
4.1 Consumer knowledge
4.1.1 Brand Image
4.1.2 Brand Loyalty
4.1.3 Brand Value
4.1.4 Brand Associations
4.1.5 Perceived quality
4.1.6 Brand Recall
4.1.7 Brand Recognition
4.2 Perception of consumers for competition
4.3 Sources of Brand Equity
4.4 Consumer based Brand Equity
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4.4.1 Brand Salience
4.4.2 Brand Performance
4.4.3 Brand Imagery
4.4.4 Brand Judgment
4.4.5 Brand Feelings
4.4.6 Brand Resonance
5. Recommendation
Reference
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Executive Summary
Since its starting in 1976, Apple has grown from a small manufacturer of computers into one of
the most successful and valuable brands in the entire world. Consumers everywhere perceive the
brand as being one of the very best because of their groundbreaking product lines, their
successful marketing programs, and their ability to differentiate themselves among othercompeting brands. These elements and attributes are the core aspects that make up Apples brand
equity.
Apple has always been known for releasing innovative, user-friendly products that have become
extremely popular in the market. They are a dominant force in the market for consumer
electronics, and their merchandise is in extremely high demand. Secondly, their very successful
marketing and distribution strategies are able to create consumer perceptions that make Apples
brand a highly reputable icon.
Through these core elements and attributes, Apple as a brand has seen its value skyrocket overthe years. By continuing to implement and improve on these successful programs and strategies,
Apples brand equity will continue to grow and flourish in the future of the company. But, what
is the brand equity for the iPad as a single brand is the main focus of the report.
The objective of this study is to make inferences about the iPads brand equity from a sample ofthe population. Specifically, the value associated with the iPads strength in the market was
tested through collection and assessment of associations in a sample of current and non-users of
the iPad. This report finds brand equity to be high amongst consumers. Strong brand awareness
exists amongst consumers due to high levels of depth and breadth of awareness: With strong
brand recognition and recall, it was found that the iPad possessed top of the mind awareness in avariety of mobile phone categories and consumers were very familiar with the functions and
capabilities of the iPad. In addition, the iPad also possessed top of the mind awareness in a
variety of purchase situations, and is associated with various consumption possibilities,
indicating the broad awareness consumers have of the iPad. In terms of brand image, there were
certain common associations that were considered strong, unique and favorable amongst all
respondents, specifically ease of use, and innovativeness, or how technologically sophisticated
the iPad is. A singular common negative association would be poor battery life, for which all
respondents consistently gave high scores for. However, due to differences in lifestyles, values
and needs, differences were found to exist amongst users and non-users regarding their attitudes
on which attributes of the iPad could be considered unique or favorable. For instance, currentusers find the affordability more desirable than non-users, and current users state that breadth of
applications and style would be the iPads points of differentiation whereas for non -users itwould be the iPads superb touch-screen. Generally, this report finds that whilst brand salience
of the iPad is high, perceptions towards brand performance and brand imagery differ, leading to
conflicting brand feelings and judgments amongst users and non-users.
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1. Objective of the study:
The prime objective of this report is to gain knowledge about stronghold of Apple iPad as a
brand in the market on the basis of its brand components and how different components of brand
equity and identity influence consumers in choosing a particular brand of tablet. A good
knowledge of consumer brand preference in tablet computers would help in understanding howbrand shape consumers buying decision and preferences.
2. Method of data collection:
Method of collection of data is secondary data in which the research articles from various
research agencies or the recently published articles by the individual authors are taken into
consideration to justify the thought process of consumers about the brand.
3. Brand Inventory
3.1 History:
Apple Inc., previously Apple Computer, Inc., is a multinational company that makes consumer
electronics, personal computers, computer software, and commercial servers, and its a digital
distributor of media content. Apple's core product mix contains the iPhone smart
phone, iPad tablet computer, iPod portable media players, and Macintosh computer line.
Founders Steve Jobs and Steve Wozniak effectively developed first Computer on April 1, 1976,
with the release of the Apple I, and incorporated the company on January 3, 1977, in Cupertino,
California.
For more than twenty years, Apple was predominantly a manufacturer of personal computers,which includes Apple II, Macintosh, and Power Mac lines, but it faced rocky sales and low
market share during the 1990s. Jobs, who had been ousted from the company in 1985, returned
to Apple in 1996 after Apple has bought his company NeXT. The immediate year, he became the
company's interim CEO, which later became permanent. Jobs subsequently instilled a new
corporate philosophy of recognizable products and simple design, starting with the original
iMac in 1998.
With the development of the successful iPod music player in 2001 and iTunes Music Store in
2003, Apple established itself as a leader in the consumer electronics and media sales industries,
leading it to drop "Computer" from the company's name in 2007. The company is now alsoknown for its iOS range of smart phone, media player, and tablet computer products that began
with the iPhone, followed by the iPod Touch and then iPad. As of 2012, Apple is the largest
publicly traded corporation in the world by market capitalization, with an estimated value of
US$626 billion as of September 2012. Apple Inc.s market cap is larger than that
of Google and Microsoft combined. Apple's worldwide annual revenue in 2010 totaled US$65
billion, growing to US$127.8 billion in 2011 and $156 billion in 2012.
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3.2 Product related attributes:
Throughout the years, Apple computers have maintained the highest quality, durability,
innovation and prestige on which they were founded. Each Apple iPad product consists of the
following seven attributes which are enough to lead Apple as preferred brand in the minds of
consumers.
1. Logo: Apples distinguishing symbol is the apple with a bite taken out of it. Once
consumers see this icon on a product, that product is automatically associated with all of
the perceptions of the Apple brand, such as quality and innovation. It will take no longer
to be perceived as the best of its kind because it has the symbol of the most valuable
technology company in the world.
2. Packaging: Apple products are packaged in very simple box having the picture of the
product outside of the case but when it is opened by the consumer first time, Apple
promises that inner design of the Apple package makes them remember that experience
for lifetime.
3. Quality: Apple is positioned on the basis of three simple words that are innovation, user
friendly and quality. So, when consumer think about the iPad they inherently perceives
that quality will be of superior than any other tablet available in the market.
4. Look: Outer look of the iPad has designed as very catchy. When the consumer looks atthe outer look of the iPad, it is designed so that it looks very classy and professional.
Thus, it provides self-esteem to the consumers by using iPad.
5. User friendly technology: Apple iPad is positioned on the basis of the user-friendly
technology. It provides so ease in using with tough screen, technology and configuration
that is provided inherent in the iPad. These things make the product at most users friendly
that creates appeals in the minds of the consumers.
6. Innovation: Apple is the brand that positioned on the basis of innovation. Apple iPad
was also revolution in the market when it was invented. It is a combination of the
personal computers and the smartphones having all mobile facilities along with operating
system which provides it a functionality of the mobile as well as computers. Thus, itappeals consumer as they can use single product to fulfill dual objectives.
7. Inherent attributes: the iPad has the same ideas behind it as far as downloading apps
and Wi-Fi + 3G/4G capability to enjoy, but one app that makes it different from the
iPhone is iBooks to read on the go. According to a bill of materials (BOM) analysis by
Brian Marshall of Broad Point AmTech, the cost of goods inside Apple's 16GB Wi-Fi
only model iPad totals with warranty ($20) included $290.50.
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3.3 Apple iPad brand portfolio:
Model iPad (1G) iPad 2 iPad (3G) iPad(4G)
iPad Mini
Announcement
date
January 27,
2010
March 2, 2011 March 7,
2012
October
23, 2012
October 23, 2012
Release date April 3, 2010 March 11, 2011 March 16,
2012
November
2, 2012
November 2,
2012
Display 9.7 inches (250 mm) multi touch display with LED backlighting
and a fingerprint and scratch-resistant coating
7.9 inches
(200 mm)multi
touch display
1,024 768 pixels at 132 ppi 2,048 1,536 pixels at 264
ppi (Retina Display)
1,024 768
pixels at 163 ppi
SoC Apple A4 Apple A5 Apple A5X Apple A6X Apple A5
CPU 1 GHz ARM
Cortex-A8
1 GHz dual-
core ARMCortex-A9
1 GHz dual-
core ARMCortex-A9
1.4 GHz
dual-core Apple
Swift
1 GHz dual-
core ARM Cortex-A9
GPU Power VR
SGX535
Power VR
SGX543MP2
Power VR
SGX543MP4
Power VR
SGX554M
P4
Power VR
SGX543MP2
Memory 256 MB DDR
RAM built intoApple A4
package
512
MB DDR2 (1066 MB/s) RAM
built into Apple
A5 package
1024 MB
DDR2
1024 MB
DDR2
512 MB DDR2
RAM built intoApple A5
package
Storage 16, 32, or 64 GB
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Wireless Wi-Fi Wi-Fi (802.11a/b/g/n), Bluetooth
2.1+EDR
Wi-Fi (802.11a/b/g/n), Bluetooth 4.0
Wi-Fi+3
G/4G
In addition to above:3G cellular HSDPA, 2G
cellular EDGE on 3G models
In addition to above and left:3G transitional LTE on 4G model
Geo
location
Wi-Fi Wi-Fi, Apple location databases
Wi-
Fi+3
G/4G
Assisted GPS, Apple
databases, Cellular network
Additionally: GLONASS
Environmental
sensors
Accelerometer,
ambient light
sensor, magnet
ometer
Additionally: gyroscope
Operating
system
iOS 5.1.1 iOS 6.0.1
Battery Built-in lithium-ion polymer battery; (10 hours (Wi-Fi), 9 hours (3G or LTE) browsing;10 hours video; 140 hours audio; 1 month standby
Weight Wi-Fi model:
1.5 lb (680 g)
3G model:
1.6 lb (730 g)
Wi-Fi model:
1.325 lb
(601 g)
GSM 3G
(AT&T) model:
1.351 lb
(613 g)
CDMA 3G
(Verizon)
model: 1.338 lb
(607 g)
Wi-Fi model: 1.44 lb (650 g)
LTE model: 1.46 lb (660 g)
Wi-Fi model:
0.68 lb (310 g)
LTE model:
0.69 lb (310 g)
Dimensions 9.567.470.52
8 in
9.57.310.34
6 in
9.57.310.37 in 7.875.30.28 in
(2001307.1 m
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(24319013.4
mm)
(2401868.8
mm)
(2401869.4 mm) m)
Mechanical keys Home, sleep, volume rocker, variable function switch (originally screen rotation lock,
mute in iOS 4.2, either in 4.3 and later)
Camera Back N/A 720 p HD still
and video
camera
0.7 MP, 30
fps and 5
digital zoom
1080p HD still and video camera
5 MP, 30fps and 5 digital zoom
Front N/A VGA-quality still and videocamera, 0.3 MP
1.2 MP still, 720p video
Greenhouse gas
emissions
130 kg CO2e 105 kg CO2e 180 kg CO2e 170 kg
CO2e
95 kg CO2e
3.4 Competitors review:
The points-of-difference and points-of-parity that Apple has in relation to its competition are
important as they can both indicate how they should be positioned in the market and be
leveraged in the continuing building of the brand. By having varieties in iPad products apple
faces many competition from the market by Samsung, Google, HTC, and HCL.
Points of difference: the differences that Apple iPad has in their products compared to
their competitors are as follows:
o iTunes: it is the online multimedia applications store offered by the Apple in
2011. It has reported more than 200 million registered accounts. Over 4.2 million
apps and almost all of the musical albums in all ages could be found in the iTunes
Store. Having such a large consumer pool and supplies of goods and services, no
other competing companies are able to compete with Apple.
o Operating systems: in order to provide the ease to its consumer, Apple has
introduced i-OS 6.0.1 which is very user friendly. Even if users dont have deep
knowledge about how to use computer, they can easily use the iPad. The
operating system is very resistant to the virus interface. Android is also designed
as user friendly still it is not comparable nearby the Apples operating system and
it is also not enough resistant to virus.
http://en.wikipedia.org/wiki/Progressive_scanhttp://en.wikipedia.org/wiki/Progressive_scan7/30/2019 Brand Audit of Ipads (1)
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o Apple iPad has more power in terms of online store distribution whereas Sony has
more power on FNAC. Apple iPad is more powerful in terms of communication
device comparable to other tablets.
o nnovation and touch screen sensitivity is another major points of differece
between Apple and other companies having same offering in tablet computers.
Points of Parity: though Apple iPad have points of differences on their competitors,
they also have some points of parity with the competitors products which needs to be
addressed.
o Hardware and technology: Apple is no longer at leadership position in terms of
hardware. As more and more firms entered this field, the revolution occurs in
technology over time. Companies like Texas Instruments, NVIDIA, Huawei and
Samsung are capable to produce electronic hardware with better quality than
Apple. The new iPad that Apple released in the first quarter of 2012 attaches a
high definition screen made by Samsung.
o Distribution: Apple has also the distribution through exclusive outlet, retailstores and online distribution system which is very similar to other competitors
products.
o Memory and battery life: Apple offers memory support till 64 GB in various
products which is also offered by the Samsung, Google and Microsoft. They have
also battery life somewhat similar to competitors products.
3.5 Communication Strategy:
Apples communication and marketing strategies are built on three pillars basically named asempathy, focus and impute. According to mike Markkula who formed marketing philosophy of
Apple, empathy is to form a connection with the customers feelings. Focus, on the other hand,
means to achieve the main goals and eliminate irrelevant opportunities. Lastly, impute means to
create products in a creative and professional manner that will further enhance the positive
qualities of the products. They generally dont use any celebrity as ambassador of their products.
They generally market their products by annual event where consumers of all over the globe are
excited to come and very enthusiastic to know about the new product of apple. The second way
of their marketing is giving a live experience of their consumers at the exclusive stores of Apple
(any consumer can walk in the store and get live demo of the product). This creates the
awareness of the products among the consumers at most reality.
3.6 Pricing Strategy:
Apples pricing is generally at high and expensive. However, despite the premium prices,
customers still flock and line up in various stores just to buy the latest Apple products for a
number of reasons. First of all, the Apple brand leads a huge customer loyalty. Second,
customers continue to buy Apple products in spite of its premium price because these products
tend to have a strong resale value as compared to its competitors. And lastly, customers are ready
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to pay more for Apple products because they feel it gives value for money. For example, as
stated by Linsey Knerl of investopedia.com, recent survey shows that 48% of consumers said
they were going to buy Apple's new iPad and of those 74% concede that no tablet compares to an
iPad. This suggests the equity that brand iPad has in the minds of consumers.
3.7 Distribution Strategy:
In a view of distribution, Apple sells its products in a number of ways. First, they have exclusive
Apple stores, which can be found in many major shopping centers, malls and outlet stores. Also,
Apple stores can be found worldwide, ranging from the United States, Europe, and Singapore, to
name a few. Second, Apple products are also sold in retailers such as Wal-Mart, Croma, and
eZone. Third, Apple also sells its products through the iTunes store and Apps store available
online. Fourth, Apple has a website wherein customers can browse and buy products in a very
convenient manner. Lastly, Apple products can be bought at stores of its tie-up carriers, namely,
Verizon and AT&T. Due to its extensive range of distribution systems, Apple makes it easier for
its customers to test and buy its products. Having a wide range distribution system also adds tothe brands value, since it enables Apple to be more visible to customers.
4. Brand exploratory
4.1Consumer knowledge:
4.1.1 Brand Image:Apple iPads brand image is very strong in the minds of the consumers
due to strength, favorability and uniqueness of the products. The brand is associated with the
sophistication and innovation in technology as per the consumer survey done by the survey
monkey.com.
4.1.2 Brand loyalty: Apple commands a high brand loyalty. As per the survey done on
students by survey monkey, 38.7 % of the respondent agreed to the loyalty with iPad
products and 2.8% strongly agreed that they would stick to Apple despite the fact that
Samsung might have the same functionality as Apple.
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4.1.3 Brand value: Apple stands second all over the globe in terms of the brand valueafter coke. The estimated brand value for Apple in 2012 is around US$ 626 billion. By
this we can say that how strong brand equity the Apple is having in the entire world.
4.1.4 Brand Associations: Based on the survey, Apples brand is associated withinnovation, convenience, and popularity because of their products. The merchandise
serves as a main source of brand equity due to these consumer perceptions and relations.
By upholding these key associations, Apple can sustain their high brand equity as well as
build on it in the future.
Table: Consumers perception about brand Apple iPad
Apple iPad brand
Strong
Associations
Favorable
Associations
Unique
Associations
Personality traits Achievement andaccomplishment
Professional Out of ordinary
Values Pride & Sophistication Credibility Individuality/exclusivity
Emotional
rewards
Increase self Esteem,Creates empowerment
Distinctive andconfidence in products
Distinct
Benefits Sense of trendiness,elegance and style
Sense of security Uncommon
Attributes Sleek Design Technologically soundproducts
Uniqueness (itsdifferent)
(Source: Amanna L., Brand portfolio, Product and brand management)
0%
20%
40%
60%
80%
100%
Retention rate of the brands in tablet
computer
Retention rate of the
brands in tablet computer
Source: UBS
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4.1.5 Perceived Quality: Apple iPad is perceived to have overall quality or superiority of
a product or service with respect to its intended purpose, relative to alternative. The
reason why iPad is perceived to have high quality over competitors could be attributed to
Apples differentiation/ position of it product. Apple is known for its innovativeness,
giving the consumers reason to buy their product. The above statement supports view on
perceived quality, which acknowledges that perceived quality comprises of reliability,
durability, serviceability, differentiation/ position, price, channel member interest, and
extension. Consumer perceives that apple gives value against their price in terms of
quality, image and recognition.
4.1.6 Brand Recall:brand recall amongst the minds of consumers is found very strong.
When consumers are asked about tablets, the first brand they memorize and say is iPad.
When consumers are asked about the user-friendly technology in tablet computers, they
again recall iPad thus it possesses top of the mind awareness.
4.1.7 Brand recognition:iPad is recognized as very tech-savvy, user friendly and stylishtablets offered by the apple. All customers are aware of the Apple brand and logo and
65% of all respondents consistently connected several key associations of the Apple
brand with the iPad, i.e. stylish, innovative, sophisticated and cool.
4.2 Perception of consumers for competition:
According to the results of interview I have taken from the customers of tablet in Surat
market, they say graphics of Apple iPad are self-invented and not copied like that of
Samsung. The touch and processor of Apple iPad is also fast compared to Samsung
galaxy tab. In addition of providing virus free application it also provides safari browserwhich is speedier than other it is fully virus free. Cloud 9 is the distinct features than the
Samsung galaxy tab. While Google nexus has more flexibility, better navigation system,
more apps for free. Apple has a very good iOS 6.0 for their products which is very good
than the android in Nexus. Thus, Apple is superior in providing the flexibility in using the
features of iPad. The users are using blackberry or any other tablets from the companies
like Micromax, Amazon, and Sony only because of the price factor. They want to own
the tablets in the lower price so that they prefer other products over Apple iPad. Apple
charges premium price for their product as their brand value is high so that it is not
affordable for everyone. This is the short conclusion of the interview taken of the
consumers who uses tablets of various companies.
4.3 Sources of brand equity:
As per their strategy, Apple does not hire any celebrity endorser to promote their product
they promote it through the demonstration at the exclusive outlet of the company.
Another means of their promotion is the launching event where many distributors,
consumers and media people are invited and there the product is introduced with all
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features, design and technology added to it which gives them popularity around the
globe. The most important source of the brand equity for iPad is the endorsement by
companys own brand name as Apple. These three are the basic source of the bran
equity for iPad. Another source of brand equity for Apple is word of mouth by the
consumer experience.
4.4 Customer based brand equity:
4.4.1 Brand Salience:
Apple iPad has created its salience by innovation and user friendliness in the technology.
IPad was perceived as one kind of uncommon, unique and distinct products in the minds
of the consumers. The basic knowledge of the consumers about iPad is built as a premier
brand in terms of technological device.
4.4.2 Brand performance:
Looking at brand performance, consumers think Apple has set the highest
benchmark for others to follow. Apple iPad products are of top most quality
offering very good alternatives, ease of use and beautiful designs. It is the basic
reason for what they charge a premium for their products. As per Amanna L.,
when it comes to durability, reliability, serviceability, consumers think that no
companies are nearby the level that Apple iPad has achieved. Apple does one
thing very well: making complex things easy and elegant.
4.4.3 Brand imagery:
The Apple iPad brand is associated with sophistication and technology. IPads are
generally bought by technology and fashion savvy customers rather than generalcomputer user. This is because they are looking for something more than basic
features and iPad delivers that little extra in a very shuttle but distinctive fashion.
Consumers love to use an iPad not just because of its performance and outer
looks, but also because it gives consumer a feeling that he is different from the
rest. IPads give users a distinct identity that competitors products fail to convey.
This is the reason why Apple has concentrated on selling the brand rather than the
product and this approach has worked very positively for them.
4.4.4 Brand Judgment:
Apple iPad is the brand which is believed as superior, credible and quality brand.Most of the iPad customers have strong thought that iPads exude quality which is
actually what you would normally identify a German product with. Perceived
quality of iPad can actually be higher than it really is. This adds a lot to its brand
equity. Apple is one of the most trusted brands in the world. Innovativeness is its
core competency and it has definitely got the attention of the customer. Apple
develops products based on mass customization and maintains customers interest
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in the top of the list while designing its products. Apple iPad as a brand is very
close to its customers and has been able to provide them what they want with
nearest accuracy. This has provided a high level of consideration for the brand
with the customers. IPad as a brand and a total experience is very superior to its
competitors. The products are superior technologically as well as aesthetically.
The brand does have the image of being a premium product. The fact that it is
user-friendly shows how advanced Apple is.
4.4.5 Brand Feeling:
The iPad brand delivers feelings of fun, excitement and pride. Consumers who
own iPad always look forward to using them with a lot of enthusiasm. This has
been deeply etched in the minds of the customer. The iPad brand is directly
synonymous with creativity and creativity is directly associated to fun and
excitement. The iPad experience brings about feelings of fun and excitement to its
consumers.
4.4.6 Brand Resonance:
Apple iPad customers relate to the brand very intimately. Repeat purchases are
very common. They feel a very strong attachment with the brand as it portrays a
very distinct image. It helps them to feel that they are flowing along with the
changing trends as they own an iPad. Many iPad consumers sometimes consider
their iPad their favorite possession or say that they love the brand as they get very
attached towards it. IPad has portrayed itself to be a brand that the consumer can
have a happy and lifelong relation with. The iPad experience has developed
deeper attitudinal attachment in the minds of the customer.
5. Recommendations:
Marketing strategy: Apple should come up with the advertising campaigns as they are providing
for iPhone 5 which shows the distinct features of smartphone that are relevant to the tech-savvy
consumers. Apple should come up with the same idea for the iPad so that the people can know
that how can iPad be differentiated from other ordinary tablet computers. By TV advertising and
digital media advertising Apple can achieve more brand equity than it has currently for the iPads.
Their strategy to not use any celebrity is good but they should come up with the marketing
program which shows how a common man becomes celebrity as he uses the iPad. This kind of
marketing program gives them more sales and ultimately more brand equity.
Apple should provide the application for free like Whatsapp which is very popular nowadays so
that they can increase their inner portfolio of applications and software to satisfy their
consumers. This will generate more awareness in the minds of consumers about the iPad over
their competitive advantage (innovation and user friendly) at present.
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Reference:
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2012)
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