Response To The IPhone Battery Crisis

Introduction

Although the attention of news media has shifted to pressing global political issues, the smartphone industry still focuses on the current subject on what has been going wrong with Apple Inc., owing to the fact that the company has recently been facing a crisis because of its iPhone battery, thereby posing a bad image on its reputation (Forbes, 2018). Apple Inc. has been chosen as the best brand for this paper, owing to the fact that it is a widely recognised company, and significantly known for loyal consumers, especially when it comes to consumer electronics. According to Reputation Institution (2018), if asked about the coolest consumer electronic brand in the globe, a majority of the entire population worldwide can answer Apple. However, it is also clear that when a similar question is asked regarding its enterprise reputation, the answer could be profoundly different. In 2014, Apple, however being one of the most loved technology-oriented companies, it was not ranked amongst the top ten of media and Technology Reputation Institutes ranking. Rather, it was ranked a position 19 overall, behind reputable firms such as Samsung, and Microsoft (Reputation Institute, 2015). For students who are exploring business dissertation help, understanding Apple Inc.'s reputation shifts can provide the required insights into brand management strategies. This is as provided below:

Figure 1: Top 20 Technological Reputation Institutes ranking in 2014

The technological industry purposes to declare the reputation of a brand, based on its products and service, innovation, as well as governance. Together, these three dime

Overall, it is evident that choosing Apple over any other brand was a wise choice, as its exciting and recognised products have been the brand’s forte. However, it is also significant to note that its production of faulty products has had a negative impact on its reputation in the recent years and to date (Business Insider, 2018). For the past 2 years, the brand’s reputation in the dimension of products and services has dropped from an excellent to a strong reputation (-10.1), forcing the innovation dimension to drop by 8.1. This has affected the brand’s overall reputation, as shown below:

The image issue that Apple Inc. is going through is that it has faced severe criticism over the older iPhone model’s slow performance, which has made customers have constant complaints (Matyszczyk, 2018). This issue had intensified immediately after John Poole published a blog and speculated how Apple was slowing its devices intentionally. The company admitted that it had manipulated the phones, claiming that it purposely slowed performance, in order to prevent unexpected shutdown of the iPhones as the batteries aged (DiPietro, 2018). Customers slammed Apple for failing to disclose this information sooner, thus making some users doubt the quality of the brand’s devices, thus leading to various lawsuits. Apple went ahead and apologised on its website, and cut prices for battery replacement, and added a software, which allowed users to check their iPhone battery life (Perlow, 2018). The company went further and assured customers that in their invention of the iOS update, they would ensure they would be transparent on its battery life, and in this regard, it reaffirmed its roles as a top leader in terms of customer service in its industry. Last year, the company instituted a program, in order to replace various expired warranty batteries for either iPhone 6 or the later for only $29, with an aim of preserving battery life, and preventing the older phones from unexpected shutdown (Communities, 2018). However, customers felt that Apple had communicated the information late, and most of them also felt that Apple was becoming slower, and they needed to upgrade to new models. Overall, it is evident that this issue has destroyed the reputation of the company, and has made the company to have issues with consumer-based brand equity (Forbes, 2018).

An analysis of the current positioning of the brand
Target market

Generally, Apple targets well-off individual customers, who can willingly pay extra for its technological products, as well as services, with advanced capabilities, functions, as well as designs (middle or upper-class consumers). Significant to notes, Apple products do appeal to various groups of individuals with different demographics. Mostly, the brand targets individuals who are tech-savvy (Mickalowski et al., 2008). Some of the targeted consumers include the following. First, it targets teenagers. It is evident that teenagers mostly use iPods for various reasons such as in socialising with friends, listening to music, and logging in on Facebook, twitter amongst other social media platforms. Moreover, there are various gaming apps, which appeal to them. As such, iPods are noted to be trending amongst teenagers. Secondly, Apple also targets college, as well as university students. They use products such as MacBook, IPads, as well as iPhones in recording notes, which are, therefore, kept in an organised manner in their devices (Giachetti, 2018). Moreover, these devices are portable, thus carrying them to and from their institutions becomes easier. Finally, Apple Inc. targets business people, as products such as iPads have been integrated into the business community, because of their familiarity, as well as ubiquity with workers, who are also consumers.

Key competition

It is evident that Apple is one of the leading names in the entire technology industry, and a tough competitor for other technology giants such as Microsoft, Google, as well as Amazon. Significantly, the brand has been ruling the technological business world even after the passing on of Steve Jobs. Having a market value of approximately 800 billion dollars, Forbes listed it at the topmost in the 2017’s most valuable brands, and it was followed by Google (Wilson, 2018). The Mac and iPhone makers are known for strategy of having a premium pricing, as well as product uniqueness. However, it is also worth noting that the computing industry also faces large challenges, especially with the increasing rise of mobile computing. Significantly, Apple’s iPhone has however been popular, and its popularity has made the brand to be able to make up for a variety of lost sales faced by Mac. On the other hand, the PC market also shows its signs of stabilisation. However, other leading brands such are Dell, Sony, HP, Lenovo, and Sony, also pose huge formidable challenges before Apple. Overall, it is clear that the technology industry has been intensely competitive, as most of the major brands are investing much on cloud computing, in order to enhance faster growth (Simonite, 2016).

Apple’s key competitors

Keller’s CBBE model is a pyramid that describes the manner of building a brand equity through understanding the brand customers, as well as implementing strategies accordingly. It is evident that if there exists a connection between a brand and its consumers, the result amounts to positive brand equity, as well as better chances of acquiring, and also sustaining customers, which in turn enhances a positive advantage to a company, and to the products, which are thus, considered as brands (Keller et al., 2008).

Points of Parity
Brand Identity/ who you are

Apple and its main competitors have built a strong brand identity, which in turn, benefits their brands and thus, aids in attracting more customers. Noteworthy, Apple and other competitors such as Samsung are spending billions on advertising their products, thus creating awareness. These brands have enormous shares in the market and they develop this through earned reputation for having good designed products, available in markets (Evangelidis & Van Osselaer, 2018).

Brand meaning/ what are you?

Apple and its competitors offer reliable services to their customers, where they purpose to invent products, according to advanced technology, and in accordance with the needs of their customers. Their brand performance is gradually improving, owing to the fact that they are trusted by their customers, based on their customer services, products features, product reliability, style and design, and pricing of their products, as well as services. Moreover, over the years, Apple and its competitors have been able to create good brand image before the eyes of their customers (Pratap, 2018).

Brand response/ feelings for the brand

Evidently, Apple and its competitors have been able to impact positive feelings of their brands to their consumers, and for this reason, the brands are having major sales, and consequently, aids in building the brand equity. Based on judgement, on multiple occasions, most customers have had an experience with their products and had negative feelings for their brands. In this regard, Apple and its competitors purpose to ensure that the feelings of their customers are cared for, in order to prevent negative judgement (Evangelidis & Van Osselaer, 2018).

Brand resonance/ a strong relationship

It is evident that Apple and its competitors are having a strong base customer loyalty, majorly because they get connected to these brands. The factors enhancing brand resonance are behaviour, values, connection and feelings, as well as engagement of customers. Apple and its competitors strive to achieve these factors accordingly, in order to build a strong relationship with their customers (Pratap, 2018).

Points of Difference
Brand Identity/ who you are

Significantly, in differing with its competitors, consumers consider Apple to have high quality products than its competitors, and this has created a deep customer fondness, as well as preference than its competitor brands. Apple is regarded as a premium brand, and as such, its prices are much higher as compared to those of its competitors. Apple uses this as a strategy for customers to believe that high prices are a sign of better quality products, which the brand offers to its consumers. Overall, it is evident that the way Apples differentiates itself form the competitors is simply “thinking different,” thus making the brand to build a stronger brand identity, thus attracting more sales. The brand has a higher market share than most of its competitors, thus aiding it to create its awareness. However, for recent years, consumers have complained about its invention of low life batteries, and this has provided a crisis on the reputation of the brand (Simonite, 2016).

Brand meaning/ what are you?

Setting a difference with its competitors is the manner is the fact that Apple has a centralised committee, which works together in designing their products and making significant decisions, which aid in meeting the needs of the customers, and consequently improving the performance of the company. This is noted, owing to the fact that Apple has a better performance than its core competitors such as Microsoft. In addition, the company owns its personal hardware, software apps, and its cloud architecture. This difference it has to its competitors cannot be emphasised, as it provides the brand with a competitive edge over its competitors. However, recently, the company has had image issues with the customers, which then has destroyed the reputation of the company, but Apple is currently working on it, in a bid to finding solution (Kapferer, 2008).

Brand response/ feelings for the brand

Differing from its competitors, Apple has had a negative judgement from its competitors, as they have had a negative experience and feeling with the recently invented batteries. In this regard, it is felt that the company has not been able to major on Corporate Social Responsibility (Zarantonello & Pauwels-Delassus, 2015).

Brand resonance/ a strong relationship

Apple is recognised as a universal favourite brand, and this is not the case with its competitors. The brand offers sophisticated and ultra-modern products, which enhances a better connection between the customers and the products, as compared to its competitors. This in turn enhances a stronger relationship between Apple and its consumers than the connection that its competitors have with their consumers (Zarantonello & Pauwels-Delassus, 2015).

In creating a new brand identity, Apple should maintain its stand on producing high quality products, thus attracting its competitors. This is owing to the fact that its consumers will develop deep fondness and preference for its products than its competitors, thus, aiding in building a stronger brand identity, which in turn attracts more sales, and its awareness (Zarantonello & Pauwels-Delassus, 2015). However, it is worth noting that for the past two years, consumers have complained about its invention of low life batteries, and this has provided a crisis on the reputation of the brand. In battling this crisis, and building a stronger brand identity, Apple should purpose to define and also communicate its different common equity. In this regard, Apple should focus on develop a brand awareness by properly linking its brand to different categories, as well as cue in their customer’s minds. In other words, it is significant that Apple should maximise on cues, thus developing various memory structure associations (Ren & Blichfeldt, 2011). For instance, Apple’s “Think different” positioning can have various cues such as “be technologically ahead” for tech-savvy individuals. This example of a cue can create a better brand identity for Apple, as well as its awareness. Additionally, Apple should establish an approach of creating its own distinctive, yet executional memory structures. This would significantly increase the brand’s quantity, as well as quality of its executional memory structures. This is achievable by enhancing a stronger brand association, and maximising the number of customer who consider the same brand in all their buying situations (Zarantonello & Pauwels-Delassus, 2015).

Based on establishing the meaning of its brand, Apple should maintain its position of having a centralised committee, which works together in designing their products and making significant decisions, which aid in meeting the needs of the customers, and consequently improving the performance of the company (Ren & Blichfeldt, 2011). However, recently, the company has had image issues with the customers, which then has destroyed the reputation of the company, but Apple is currently working on it, in a bid to finding solution. In this regard, Apple should focus on being uniquely available to its customers, and should as well be able to communicate the unique benefits to the customers in a manner that is easily and clearly understandable (Keller et al., 2011). Moreover, Apple should significantly stand out from its competitors, whereby, the company should examine its competitors whilst looking for their key selling points, as well as the basic “promises,” that they make to them. As such, the company will be able to define the different strategies it should apply, thus making the brand effective in a way. Apple should also drive their core messages home to their clients and live up to the promises they make to them (Beverland et al., 2007). Significantly, after defining this position, the company will be able to solve the current image issues it faces.

Brand response/ feelings for the brand

Owing to the fact that Apple has had a negative judgement from its competitors, as they have had a negative experience and feeling with the recently invented batteries. It is clear that the company has not been able to major on Corporate Social Responsibility. Apple should purpose to be socially obligated to the society, thus meeting their demands and needs. Apple should focus on enhancing positive brand feelings, by inventing products, which make its customers feel a sense of calmness, fun, excitement, security, self-respect, and social approval, where they gain a positive feeling regarding other people’s reactions. Moreover, Apple should purposely create a stronger brand, whilst considering brand judgements on the quality of its product, its credibility, consideration, as well as superiority (Wallina & Spry, 2016).

In enhancing a strong relationship with consumers, Apple should maintain offering sophisticated and ultra-modern products, which enhances a better connection between the customers and the products, as compared to its competitors (Keller, 2009). This in turn enhances a stronger relationship between Apple and its consumers. Moreover, Apple should take a broader emphasis on its meaning by majoring into CSR. It needs to build a strong attitudinal attachment, and to identify with the community, and reflect on significant social phenomena, which in turn makes customers to feel an affiliation with other individuals associated with the brand. Such connections may significantly involve customers, employees, company representatives, or fellow brand users, and they enhance brand loyalty, which is manifested in the day-to-day behaviours of the consumers (Kapferer, 2012).

This section brings forth the managerial recommendations, which if effectively implemented, could assist Apple to brush off the ongoing image crisis, owing to the fact that it will assist in bringing the new branding position to life.

Firstly, Apple should establish significant communication leverages, which it will use in implementing the new branding position whilst considering reaching its target market. In this regard, Apple should first establish an internal communication, where it should socialise the brand positioning with various departmental heads, as well as managers, who in turn would socialise with their team. This would consequently aid in describing each team’s roles in ensuring a fulfilment of the new brand’s promises (Gürhan-Canli et al., 2016).

Firstly, Apple should establish significant communication leverages, which it will use in implementing the new branding position whilst considering reaching its target market. In this regard, Apple should first establish an internal communication, where it should socialise the brand positioning with various departmental heads, as well as managers, who in turn would socialise with their team. This would consequently aid in describing each team’s roles in ensuring a fulfilment of the new brand’s promises (Gürhan-Canli et al., 2016).

Thirdly, these communication channels should be integrated to one another by maintaining the new brand positioning consistency across all the channels. This will include the colour scheme, fonts, as well as tagline. Moreover, the integration will include the content to be displayed, which reinforces the new brand positioning story, as well as values across all the platforms. Additionally, the brand “voice” should be clear across all the communication leverages, whilst describing the character, as well as personality of the new brand positioning, based on language and syntax. This would enhance a positive experience to the target customers. The voice should appear authentic to the brand, otherwise, the message would appear still and insincere (Ren & Blichfeldt, 2011).

Overall, it is evident that websites are visited by adults and business people, who are in most instances, consumers of Apple product. Significantly, they constantly visit the Apple site, thus, the information would reach them. On the other hand, social media also reaches most tech-savvy youths, as well as adults who are consumers of Apple products. Finally, TV and print media reaches all individuals, who access them and this this includes a high number of Apple consumers. Consequently, owing to the fact that the target market will be reached, Apple, will be able to implement the new brand positioning effectively (Simonite, 2016).

Overall, it is evident that websites are visited by adults and business people, who are in most instances, consumers of Apple product. Significantly, they constantly visit the Apple site, thus, the information would reach them. On the other hand, social media also reaches most tech-savvy youths, as well as adults who are consumers of Apple products. Finally, TV and print media reaches all individuals, who access them and this this includes a high number of Apple consumers. Consequently, owing to the fact that the target market will be reached, Apple, will be able to implement the new brand positioning effectively (Simonite, 2016).

References

• Beverland, M., Napoli, J., & Yakimova, R. (2007). Branding the business marketing offer: exploring brand attributes in business markets. Journal of Business & Industrial Marketing, 22(6), 394-399.
• Business Insider. (2018). If you own an iPhone 6 or later that isn't holding its charge, now is the time to get your battery replaced. Retrieved [Online] from [ Accessed on 4th Jan, 2019].
• Evangelidis, I., & Van Osselaer, S. M. (2018). Points of (Dis) parity: Expectation Disconfirmation from Common Attributes in Consumer Choice. Journal of Marketing Research, 55(1), 1-13.
• Giachetti, C. (2018). Explaining Apple’s iPhone Success in the Mobile Phone Industry: The Creation of a New Market Space. In Smartphone Start-ups (pp. 9-48). Palgrave Macmillan, Cham.
• Gürhan-Canli, Z., Hayran, C., & Sarial-Abi, G. (2016). Customer-based brand equity in a technologically fast-paced, connected, and constrained environment. AMS review, 6(1-2), 23-32.
• Kapferer, J. (2008). The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term 4th edition (New Strategic Brand Management: Creating & Sustaining Brand Equity).
• Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers.
• Keller, K. L. (2009). Building strong brands in a modern marketing communications environment. Journal of marketing communications, 15(2-3), 139-155.
• Keller, K. L., Apéria, T., & Georgson, M. (2008). Strategic brand management: A European perspective. Pearson Education. Keller, K. L., Parameswaran, M. G., & Jacob, I. (2011). Strategic brand management: Building, measuring, and managing brand equity. Pearson Education India. Matyszczyk ., C. (2018). How Apple risks losing its position of trust. Retrieved [Online] from
• Mickalowski, K., Mickelson, M., & Keltgen, J. (2008). Apple's iPhone launch: A case study in effective marketing. The Business Review, 9(2), 283-288.
• Simonite, T. (2016). Apple’s new privacy technology may pressure competitors to better protect our data. MIT Technology Review.
• Wallina, A., & Spry, A. (2016). The role of corporate versus product brand dominance in brand portfolio overlap: A Pitch. Accounting and Management Information Systems, 15(2), 434.
• Wilson, E. (2018). Apple's Key Success Factors in the UK that Could Be Learned and Applied by Other Companies from the Same Industry.
• Zarantonello, L., & Pauwels-Delassus, V. (2015). The handbook of brand management scales. Routledge.

Looking for further insights on Report and Presentations? Click here.