Apple Brand Shadowing

Introduction

Using knowledge gained through Brand and Agency shadowing of Apple Computers and its appointed agencies this essay will examine and assess possible working arrangements in place to managing their Integrated Marketing Communications and their overall advertising and communication strategy and tactics.

Company History

Steven Wozniak and Steven Jobs had been friends at High School, and they kept in touch after graduation. They both ended up dropping out of school and getting jobs for computer companies in Silicon Valley.

Apple Computers was born in 1976 when Steven Wozniak designed what was to become Apple I. Steven Jobs then insisted that they try to sell the machine. Hobbyists did not take the Apple I very seriously, and Apple did not begin to take off until 1977, when Apple II debuted at a local computer trade show. The Apple II was the first personal computer to come in a plastic case that included colour graphics. This made it an impressive machine for the time. Orders for Apple machines were multiplied by several times after its introduction. With the introduction in 1978 of the Apple Disk II, the most inexpensive and easy to use floppy driver ever for that time, Apple's sales further increased and the company increased in size. In 1980 when the Apple III was released the company had several thousand employees and was beginning to sell computers abroad.

In December 1983, the Macintosh was born. Apple Computers ran its award winning and now famous "1984" television commercial, making TV history. Apple ran the ad during the NFL Super Bowl, and millions of viewers saw their first glimpse of the "Macintosh" computer. The commercial was directed by Ridley Scott, and the Orwellian scene depicted the IBM world being destroyed by the new machine the "Macintosh". The "1984" ad was expressly political; its message was to give power to the masses - computing power. The ad began a branding campaign that portrayed Apple as a symbol of counterculture; rebellious, freethinking and most of all creative.

No longer is Apple's business limited to computers. Today the company's ever-expanding products encompass multimedia applications for creative professionals and consumers. The thriving iTunes Internet music store, the .Mac Internet subscriptions service, and a popular line of easy-to-use wireless networking gadgets that link computers and stereos and other devices in the home or at work - including of course, the iPod.

The Apple Computers Brand

Apple is now one of the most recognizable brands in the world. Market brand consultancy HYPERLINK Interbrand and business publication HYPERLINK "http://www.businessweek.com/"BusinessWeek have posted their fourth annual listing of the 100 Best Global Brands, listed by dollar value where Apple ranked 43rd overall. The consultancy attributes Apple's showing to strong sales of the iPod and high brand loyalty.

Apple could be classed as 'the' archetypal emotional brand. It's not just intimate with its customers; it is loved. According to marketers and advertising experts the reason why Mac users are so loyal hinges on the Apple Brand's strength. Apple has cleverly established a deep, lasting bond with its customers. From its initial creative and design following it has developed a 'cult' like status with its customers and they would be very unlikely to switch to any other computer operating system.

This is reflected by the fact that Apple was a winner at the 2004 Reader's Choice Awards for the brand with the most global impact - a title held by Google since 2002. Steve Jobs, Apple's current CEO, spent $100 million marketing the iMac which was a massive success. Apple continues to spend vast sums of money on high-profile ads such as the recent "Silhouette's" campaign, which promotes the iPod and iPod Nano. And it is apparent that this was money cleverly spent, as there are now over 10 million iPod owners. This campaign also won a Gold Lion at Cannes 2004 in the Young Adult category and Best Consumer Goods Campaign at the 2004 M&M Europe Awards

Heidi Klein, author of 'No Logo' argues that companies like Apple are no longer selling products. "They are selling brands, which evoke a subtle mix of people's hopes, dreams and aspirations".

Target Market

Apple is a brand that has a significant amount of 'street-cred' - it is 'trendy' and this also comes across in the way the brand communicates. Apple basically serves two target markets. The first being creative professionals: web page designers, graphic artists, video editors and producers of streaming media. It has focused much of its business on these niche markets where it remains a considerable force. The second is families, students and schools. This said, each product has its own individual target market depending on the purpose it serves and its product spec, For example the iPod (a portable mp3 music player) which is generally targeted at Generation X and Y - and young, trendy, upwardly mobile music lovers. This may be the main target market for the iPod, but is not the only one. For this product Apple looked at their target audience in a different way and created a solution to a problem - carrying up to 10,000 songs in your pocket.

As iPod envy sweeps the nation, just about everyone understands that the iPod is the 'must have' fashion accessory of the moment. The main objective of the 'Silhouettes' campaign, which promotes the iPod, was to maintain exposure and increase market share to remain the leader of the digital media player market. According to TBWA agency head Lee Claw, the idea was for the campaign to act as a 'window for the world to come to an Apple product'. In other words, once a consumer has paid for their white, shiny iPod its only a short step from there to the world of the grown up Apple user. This has been referred to as the iPod "halo effect".

Communication and Advertising Strategy employed

According to Robin D. Rusch of BrandChannel.com,