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From computer geek to style iconNicole Kennedy
Apple was launched successfully in 1976by Founders Steve Jobs
and SteveWozniak (the two Steves) with thecompany initially growing
at a tremendousrate - led by the Apple II and other stateof the art
computer products.
Apples success continued into the mid1980s. Although following
this,circumstances changed. In particular, aninjury to Wozniak
necessitated Jobs toemploy a new CEO. Internal tensionfollowed
which resulted in Jobs alsoleaving his company in the late
1980s.The new CEO was ousted in 1993 butfurther leadership changes
and internaluncertainty followed - resulting in a lack of company
focus up until 1997.
What Apple can teach us about brand revitalisation
In 1998 Apple was a well known brand butin consumers eyes it
lacked strongadvantages on which to choose it abovethe competition
therefore hindering itsgrowth potential. The internal strugglewith
company focus outwardly projected alack of clarity around what its
brand stoodfor. Within BrandZ a brand displayingcharacteristics
akin to Apples at that timeis termed a Defender brand.
Defendersoccupy a middle ground in their market attempting to take
on the big playerswhile having to fight off advances fromemerging
brands.
Apples Brand Signature - a summary of relative strengths and
weaknesses versusthe competition - indicated it was strong
at presence but poorer at converting thisawareness to loyalty.
For many Applelacked relevance - as it was perceived tobe expensive
- and worryingly it displayedperformance issues (seen as not easy
touse) which contradicted with the userfriendly core essence that
was intended atbirth. A lack of appeal, higher opinion,popularity,
advocacy and trend settingimagery all reduced Apples
perceivedadvantage above the competition.
Out of fashion
While Apple battled with its internalstruggles competitors rose
to the newtechnological opportunities on offer. 1998BrandZ data
evaluates Apples positionin an IT Hardware context. Plotting
itspresence relative to the competitionagainst Voltage - a measure
of thelikelihood to build share illustrates thepressure Apple was
experiencing fromHewlett Packard and IBM but also how itlacked the
momentum to grow.
[drive:directory path\filename.ppt 1 ]
1976 1977 1993 1997
Apple foundedby Jobs
& Wozniak
Launch of Apple II
Wozniakinjured, Jobsemploy new
CEO Steve Jobswalks out
CEOousted
Furtherleadership
changes
Growing at tremendousrate with state of the
art products
Bad times hit withincreased competitionfrom IBM &
Microsoft
After a successful launch in 1976, leadership changes in the
1980sto early 1990s led to a lack of focus at Apple - further
exacerbatedby increased pressure from the competition
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The new trend
So there was clearly a need to revitaliseApple and the good news
was that in 1997Founder Steve Jobs returned to help guidethe
company through its recovery phase.One of his most effective early
actionswas to re-focus the company strategy andR&D plan back
onto the core essence thatmade Apple successful at launch.
Essentially he cut 13 R&D projects downto 2 the G4 chip and
iMac which bothfitted with Apples original brandproposition of
technical, stylish and
user-friendly.
From that point onwards Apple experiencedthe first profits for
years, continuing to thecurrent day with the significant arrival
of
Ipod in 2003. The success is evident inApples share price which
has shown a risingtrend since 2003.
Through re-focussing, Apple has revitaliseditself into a
Specialist brand it isnt
relevant to everyone, but very strongamongst a core following.
Apples 2004Brand Signature still shows that it isntrelevant to
everyone (and should continue todo so today) however the factors
driving thisnow contribute to the brands position ratherthan hinder
it. Not meeting everyonesneeds and not connecting to just any
oldcomputer device is something whichsupports its Specialist nature
- rather thanthe usage barrier seen back in 1998(whether perceived
or real). In 2004 Applesadvantages over the competition
includeunaided awareness, popularity and trendsetting imagery and
for those who love Apple are bonded it has built solid
leadershipcredentials.
[drive:directory path\filename.ppt 3 ]
In 1998, Apple displayed characteristics of a Defender brand -
well knownbut lacking strong advantages vs the competition.
2
-7
-13
-7
21
Apple Signature
Bonding
Advantage
Performance
Relevance
Presence
Seen as not easy to use
Seen as expensive
Lacks appeal, high opinion, popularity,advocacy and trend
setting imagery
Base: IT Hardware UK 1998 (403)
Different, but lacks leadershipcredentials
[drive:directory path\filename.ppt 4 ]
1977 1993 1997
Steve Jobsreturns to
Apple
Focussed R&D w ith 13 projects cut to 2(the G4 chip &
iMac). Both fitted with
Apples original core essence of Technical, stylish and
user-friendly
and with what made the companysuccessful in the first place
First profits for years& continued success
2003 2005
Ipodlaunched
Ipodshuffle
launched
When founder Steve Jobs returned to Apple in 1997 he re-focussed
the companys strategy on the core essence that hadmade it a success
originally
1976
Apple foundedby Jobs
& Wozniak
Launch of Apple II
Wozniakinjured, Jobsemploy new
CEO Steve Jobswalks out
CEOousted
Furtherleadership
changes
Growing at tremendousrate with state of the
art products
Bad times hit withincreased competitionfrom IBM &
Microsoft
Although recognised as different, in 1998Apple lacked the
leadership credentials toentice stronger bonding and really ride
thewave in this fast developing market
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So since 1998 through focusing its effortsApple has narrowed
down who it appeals too- and therefore its presence relative to
thecompetition - but by building appeal amongstits core followers
Apple now has increased
momentum behind it to grow share(Voltage).
Driving Apples good reputation is a senseof leadership and
success. TheCorporate Reputation Signature measuresrelative
strengths and weaknesses across3 broad areas - public
responsibility,
consumer fairness and leadership andsuccess. Apples Corporate
Signature isdefined by strength in leadership andsuccess.
Innovation is behind Apples leadershipand success seen as a
company thatcomes up with new ideas, is different andleads the way.
Image profiles highlightdefining characteristics relative to
thecompetition and Apple Computer Incs ispositive in these
innovation areas.
In addition, a 2004 WPP study into thecorporate reputation of
100 major companiesin the UK (called ReputationZ) also showed
how Apple Computer Inc has a goodcorporate image in consumers
eyes. This isparticularly important for Apple as it is acompany for
whom corporate reputation hasa strong relationship with its product
sales.
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And the media coverage on Ipod? theylove it!
Millward Brown Precis is a public relationsand news measurement
analysis service thatprovides a measure of media coverage.
Theincidence and tone of reporting on varioustopic areas, such as
attributes (product orcorporate) and key messages, can betracked.
Tracking of Ipods media coverageusing the Precis:cubed real-time
media
evaluation service in Oct/Nov 2005 showedseveral positive
feelings appeared regularlyin the reporting most noticeably love
butalso an element of surprise around theirlatest innovation - the
launch of a new Ipodcapable of playing videos.
So what does A pple teach us aboutbrand revitalisation?
Strip out what makes the brand great -focus communication and
productdevelopment on this Dont feel pressured to appeal to
everyone greater loyalty amongst a smaller groupcan be just as
powerful. Believe in your brand internal confidencehelps drive
consumer credibility Exploit halo opportunities - where there isa
clear link between Corporate identity andbrands facilitate a two
way transfer of credible values Be consistent drive clarity of
associationsright through the line
Designer catwalks
Apple Computer Incs portrayal of leadership and innovation at a
corporatelevel provides a company focus but also
allows it the credibility to transfer thesesame values to its
products and brands.The relatively recent launch of the Ipodfollows
along these lines an innovative,stylish addition to Apples
portfolio and aconsumer must-have. All of Ipodsconsumer touchpoints
includingproduct, packaging and Marketing activityfit with the
innovative, stylish focus forthe brand (and company).
https:/ / mb.brandz.comFor this type of analysis go to or
[email protected]
N i c o le K e n n e d y is an Account Manager atMillward Brown,
the leading International brandand communications research
consultancy
Reference: Apple, University of WalesAberystwyth, 2004
B r a n d Z is the WPP funded global brand equitystudy available
to clients and potential clients viaWPP owned companies. It is
validated againstsales and quantifies and diagnoses the
strengthsand weaknesses of brands.
https://mb.brandz.com/https://mb.brandz.com/
