Brand Equity

Name: LAM MEI YAN

Define Brand and Brand Equity

A brand is a name, a term, a symbol, a design or a combination of all of these things, and it is intended to identify the goods or services of one seller, differentiating them from those of competitors.

Brand equity is a marketing term that describes a brand’s value. That value is determined by consumer perception of and experiences with the brand. If people think highly of a brand, it has positive brand equity

Examples of Positive Brand Equity

Apple, ranked by one organization as “the world’s most popular brand” in 2015, is a classic example of a brand with positive equity. The company built its positive reputation with Mac computers before extending the brand to iPhones, which deliver on the brand promise expected by Apple’s computer customers.

Comparison of Apple Macs and Microsoft Windows computers

Apple and Microsoft have been competitors for over 30 years. In that time, each company has released hundreds of products and brought huge refinements and upgrades to its lead operating system. Windows and OS X are both powerful tools that can help you with school, work, and play, but the two operating systems offer differences in many categories, including features, hardware support, available applications and price.

1. Hardware Options

One of the biggest differences between Windows and OS X comes in the form of hardware options. While Windows is available on computers from Dell, Lenovo, Acer and many other manufacturers, OS X is only available on Apple computers. If you’re thinking about building a PC yourself or want more flexibility in price and manufacturer, Windows will offer you greater choice. However, because OS X is limited to Apple computers, it is able to utilize features only present on Mac devices such as Apple’s proprietary swipe technology.

1. Software Availability

Microsoft has an Office lineup that includes Word, Excel and PowerPoint, though older versions of this software are available for Mac systems. Many high-end programs, such as Adobe’s Creative Suite (PhotoShop, Dreamweaver, etc.)

Mac users can use OS X’s Boot Camp functionality to run Windows from their Apple computers, giving them access to both operating systems and the software they support.

1. Device Interaction

Microsoft’s Surface tablet runs on a modified version of Windows 8.  Apple’s iPad and iPhone devices run on iOS, which is built to integrate tightly with OS X. OS X Yosemite allows for the sharing of SMS messages from iPhone to OS X and all files can be backed up to iCloud and accessed from any Apple device. It’s even possible to accept calls made to your iPhone on your Mac computer.

Therefore, Apple products such as the iPhone, iPad and Mac share the same software and applications, and operate in a similar way, making the Apple product a natural choice when customers are considering another device.

This minimizes the risk, timescale and costs of product development, enabling the company to introduce a stream of new products and stay ahead of competitors.

Key Brand Management Principles

1. Apple Differentiation strategy

Brand differentiation is one of the many ways Apple leverages IT to achieve competitive advantage. Apple’s “Think Different” slogan is not just a tag line, it’s a mindset. It reinforces the company’s culture that constantly encourages differentiation.  Differentiation is not only apparent in their systems, but also in their design.

1. Simplicity

Apple’s subtle simplistic design makes their products stand out as icons and sets them apart from the competition in the electronic industry.

1. Product Design and Innovation

In today’s competitive world, companies cannot just compete based on the price of their products. The introduction of new products or new product features has become very important in the fight to gain a competitive advantage in the market place. Apple does very well leveraging IT to achieve a competitive advantage by developing new products that are available first in the market. The IT involved has really helped them become so successful. One innovative product that Apple makes is their iPod. For a while, Apple was struggling to stay alive in this technologically advanced world. Windows was taking over and Apple needed to make a move to stay competitive. Apple attracted consumers by repeatedly introducing new, innovative products to beat the competition including the iMac, iPod, iPhone, iTunes and OS X. The iPod is one of Apple’s products, which has revolutionized the way consumers listen to music. MP3 players were introduced in the market and became very popular. They allowed for many songs to be stored on a device much smaller than any other available product. Once Apple introduced the iPod, a new standard regarding how to store and play music was created. While other MP3 players are available, most consumers prefer the iPod because of its innovation and ease of use.

Apple’s next product has had the same ground breaking technology as the iPod when it was released; the iPad. The iPad has taken the capabilities of the iPod and iMac, and combined them into one product. Apple has great products in many different markets such as PC, Laptop/Notebook, Netbook, and MP3. The iPad introduces them into the tablet market, expanding the capabilities of the company. To the right is a chart of the how the iPad diversifies itself into many different areas. The iPad is so versatile that it combines the elements of smartphones, laptops (personal and business) and tablets. It also combines the e-commerce business arenas of business to consumer and business to business by combining the home electronics with computer hardware.

In the high tech world we live in, companies must introduce new products if they want to stay competitive and survive. Technology quickly becomes obsolete and out dated showing an increased need for innovation. The development of new products provides an opportunity for companies to effect the competitive landscape. These new products can help gain new customers, retain customers, and increases profitability. In short, new products are essential to gaining a competitive advantage; and Apple has used technology to master this business concept.