September 11, 2014
Apple is clearly the brand of our generation. In our house, we have an iMac desktop, 2 iPads, 3 iPhones, and two MacBooks. I love Apple. But this past spring, as my phone contract expired, I started to wonder if I get the iPhone 5S or wait for the iPhone 6. I was a free agent, and started to look around. I looked at the Android, but like many “Apple fans”, I viewed them as the competition, like a NY Yankee fan might view the Boston Red Sox. The more I dug in, the more I realized the Android phone was quite better than the iPhone: bigger screen, faster processor, better camera. So I bought a Samsung Galaxy Note 3. Whaaaat? That’s right. A Samsung. I felt like a cult member who snuck out of the compound one night and drooled when I saw the Samsung phone. I could see the Galaxy was light years ahead of my iPhone. Now that I see the iPhone 6, I’m glad I bought the Samsung instead of waiting.
Yes, the Apple iPhone 6 news kinda fizzled, but does that matter anymore?
I’m no tech expert, but the iPhone 6 feels a very incremental technology. I’m sure it does a few things I’m not aware of or could appreciate. Financial analysts were so bored by the launch, many downgraded the stock. Yes, the Apple stock price is extremely high, but maybe it’s time for the stock to stop living and dying based on the next great launch. And maybe, it’s time for us to realize that Apple has shifted from a product driven brand to an idea driven brand. The real reason people buy Apple is the BIG IDEA that “We make technology so SIMPLE, everyone can be part of the future”. With Apple, it has become less about how we think about the product and more how we feel about the brand. While Samsung has a better product than they do a brand, Apple now has a better brand than they do a product. Samsung can’t get past talking features instead of benefits, offering almost zero emotional connection beyond the product. Apple has created such an intensely tight bond with their consumers, they are more powerful than your average monopoly. Apple uses that power with the very consumers who love them, against competitors who try to imitate them and through every type of media or potential key influencer in the market. Below we have mapped out the Brand Strategy Road Map for the the Apple brand.
Apple isn’t really a technology leader, and likely never was. Yes, Apple had an amazing decade of new products from 2001-2011 that gave us the iPod, iTunes, Macbook Air, iPhone and iPad, but Apple is a quick follower who figure out the mistakes the technology leaders make and then cleans them up for the mass market. Apple exploits the fact that the first to market technologies are so badly launched (mp3 players, on-line music and tablets) the average consumer never really sees them, leaving the perception that Apple is the innovator. Apple’s product strategy is: “We bring technology that is simple and consumer friendly across a broad array of electronics products. Products have simple stylish designs, user-friendly functionality, convenience and speed.” Apple’s brand story, told through great advertising like “Mac vs PC” is: “Technology shouldn’t be intimidating or frustrating. We make it simple enough so you can be engaged right away, do more and get more, with every Apple product you are use.” As an example below, the beautiful ads over the past year are less about the product features and more about how the brand makes you feel.
The most Beautiful Apple Product Apple is now their P&L statement
Maybe we just need to relax on these Apple launches and admire Apple’s Profit and Loss statements. Apple is going to sell about 80 million iPhone 6’s and I bet the iPhone 6 will be under many Christmas trees this year. Stores continue to be packed–it’s tough to even get an appointment. The Apple retail stores have the highest sales per square foot, almost twice the #2 store, which is Tiffany’s selling diamond rings.
Apple is now a huge mass market corporate brand, with a market capitalization of $600 billion, 3 times the value of companies like Coke, Procter & Gamble, Pfizer and IBM. Apple has moved from the challenger type brand to the “king of the castle” brand. Back in the 1980s, IBM was the “drive the BMW, wear a blue suit with polished shoes” type brand, while Apple was “comfortable in your VW Bug, tee-shirt and sandals” brand. Apple was the alternative, anti-corporate, artist. But that’s changed. As much as Apple fought off and won against the corporate arrogant brands like IBM, Microsoft and Sony, they’ve now become that very type of corporate brand.
At Beloved Brands, we believe the more loved a brand is by it’s consumers, the more powerful and profitable that brand can be. The best example of this model is the Apple brand.
In researching the Apple brand, and as a true brand geek like me, when I opened up their P&L statement I almost gushed: I drooled over the compound annual growth rate, stared at the margin % and was in awe of how their fixed marketing spend stayed constant as the sales went through the roof. It’s the P&L that every Brand Leader wants to leave for the next guy.
Apple Brand > Apple Product
At Beloved Brands, we run a Brand Leadership Center to train marketers in all aspects of marketing from strategic thinking, analysis, writing brand plans, creative briefs and reports, judging advertising and media. To read more on the programs we offer, click on the Powerpoint presentation below:
We make Brands better. We make Brand Leaders better.™
We offer Brand Coaching, where we promise to make your Brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. For our Brand Leader Training, we promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at email@example.com or phone me at 416 885 3911