www.xpotential.co.uk

1. A Taste
of Apple

2. A Taste of Apple
Katie Mason
November 2010

3. Introduction
Apple is a brand with a distinctive, strong
and addictive flavour. It has got consumers
displaying “religious” loyalty and thousands of
brands aspiring to be the “Apple” of their
industry, not to mention their recent fourthquarter profits which rocketed 70% year
on year to £2.72bn, selling:
14.1 million iPhones
4.2 million iPads
3.9 million Macs
Index
This case study takes a look at the
company, the brand, the products and
the consumers to gain some insights
and learnings from this legendary
brand.
4
The company
11 The brand
19 The product
28 The consumers
34 Summary
©XPotential 2010

4. The Company
“It's not about money. It's about the people
you have, how you're led, and how much
you get it”
Steve Jobs
Co-Founder and CEO

5. The Company
One leader, one vision:
Apple has one strong and visible
leader, CEO and co-founder, Steve
Jobs. He is the ultimate authority
at Apple. His vision and drive
directs the company
Clarity of the vision would be
compromised if they needed to
reach a consensus across a board.
This reflects Apple’s value of
simplicity, and reducing the
number of steps to a goal (like in
their products)
He keeps a clear vision and strategy, killing off even good things that
don’t fit in order to be clear and cohesive
Between Jobs’ departure from Apple (1985) and his return (1996), each
CEO had their own idea of what Apple should be, costing it some of its
original identity
As a visible and driven leader, Jobs also helps build consumer trust in the
company, consumers can relate to him and see Apple as more than a
face-less company
©XPotential 2010

6. The Company and Culture
Adapt to your own rules:
In the 1970s, Apple was one of
the revolutionary companies to
throw off the old concepts of
corporate culture. For
example, they allowed casual
attire, Steve Jobs even
famously walked around the
office barefoot.
Jobs doesn’t publicise the full
names of top employees such
as Head of iTunes so
competitors don’t poach his
talent
Name-change from Apple
Computers Inc to Apple Inc in
2007, adapting to reflect their
success outside of the
computer market, in consumer
electricals such as iPod and
iphone
©XPotential 2010

7. The Company and Culture
Hard work and debate:
If you have a good idea, work hard
for it. Jobs is renowned for being a
“pain in the neck” about the things
that matter to him 'Because I'm the
CEO, and I think it can be done.'
Debate is encouraged, rather than passive aggressiveness to find the best
ideas
Apple is not for the faint of heart, the level of drive and high aspirations can
sometimes causes a team to eject a weak link or revolt against an
underperforming boss
Employees worked all hours and weekends to solve “Antennagate” (the fault
with i phone 4’s reception), cots were even installed so that workers didn’t
have to go home to sleep
Hard work is recognised though, the best of Apple’s employees are
rewarded through the Apple Fellows program
©XPotential 2010

8. The Company and Culture
Work as one unit, not silos:
The Apple team is not de-centralized,
everyone knows what the plan is
There is a cross-disciplinary view of
success
Apple is an exception in the tech industry,
making its own hardware, software and
related devices
Many believe if you try to do too much, you will be good at nothing,
but Jobs argues that if you have to involve multiple companies then
the innovation can’t happen fast enough, or seamlessly enough and
that nobody takes responsibility for the user interface
Jobs describes the problem with the Concept Car example;
designers create a fantastic show car, engineers say “we can’t do
that” and change it, then the same happens with manufacturers
and by the end the product is no longer as good or special
At Apple, products get worked on by all teams in parallel
©XPotential 2010

9. Company: Implications and Learnings
• Having one person who is
ultimately responsible and
involved in all processes is a
good way to maintain clarity of
vision. Not many companies
have this luxury, but with aligned
strong, concise values and vision,
the “one leader” effect could be
emulated
• Putting a human face to your
company helps to build consumer
trust
• Break the rules and be innovative in
the working environment, to
encourage a creative mindset
• Brand-Company relationship works
both ways: each can take from the
other’s success. The brand that
customers see should reflect the
company behind it (and vice versa)
©XPotential 2010

10. Company: Implications and Learnings
• Operational Alignment and common
shared goals and an obsessive vision
prevent an excellent concept from
being distilled to become an average
good concept through development
• When all departments work together
and not in silos, everyone has
ownership of the product and more
motivation to make it great, less
opportunity to pass the blame if
something goes wrong
• Create a working environment
where people are encouraged to
debate their ideas and work hard
for what matters to them
• Passive aggression is counterproductive
• Recognise employee
achievements
©XPotential 2010

11. The Brand

12. The Brand
“In the Old Testament there was the first apple, the forbidden fruit of the
Tree of Knowledge, which with one taste sent Adam, Eve, and all mankind
into the great current of History. The second Apple was Isaac Newton's, the
symbol of our entry into the age of modern science. The Apple Computer
symbol was not chosen purely at random, it represents the third Apple, the
one that widens the paths of knowledge leading toward the future.”
Jean-Louis Gassee, Former President of Apple Products
©XPotential 2010

13. The Brand: “Simple”
Simple:
Apple’s brand image and personality is
simple and clear
Think big, write small: The
message/image is always boiled down to
its essence, making it clear and
memorable
Mac “the computer for the rest of us”
iPod “1000 songs in your pocket”
iMac “3 steps to internet”
By making it easy for people to market for
them, Apple are so good at encouraging
consideration of their products that they
create purchases before the product is
even seen (250,000 first day iphone
sales)
A picture is worth a thousand words:
Apple’s visual communication uses big
images more than writing, again this
keeps things simple, but a picture can
also convey more feeling than a block of
text, and it looks better. Compared to the
common vast amounts of information and
content, this makes them refreshing
©XPotential 2010

14. The Brand: “Easy to relate to”
Apples brand reflects a way of life that people can and
want to associate with, you could describe Apple as a
person
Apple do not build their brand around “what” they do
(the products), they work from “why”, starting with a
vision to make life-improving user experiences, this is
how they work and how they communicate, making
them easy to understand and relate to and not reliant
on products to define their brand. Therefore customers
are comfortable buying anything from Apple
Brand junky’s survey (brand channel)
Apple reached top five for human questions like: “What brand would
you sit with at a dinner party?”
Also top 5 for “Which brand do you want to argue with?”, over
exploiting their customers and releasing “new” products every 3 months
(4.3%) v. Microsoft (6.1%) for being product, not customer driven,
products are wide spread but not innovative, frustrating to use
The human face of Steve Jobs also makes Apple easy to relate to, with a
committed person, working to solve any problems and caring about
consumers
Steve Jobs himself has an accessible and simple trademark, outfit: black
turtle neck and jeans, making him more recognisable and familiar
©XPotential 2010

15. The Brand: “Exclusive”
When the company first launched in
the '80s, part of their intrigue was
graphic interface and design friendly
features. From these early roots
grew a powerful brand legend:
authentically cool and distinctly
designed by and for the creative
class (e.g. product placement in
Pixar films).
Pre-launch strategies that build
anticipation and generate awareness
(e.g. recent hype speculating
whether Stephen Fry’s exclusive
white iphone4 will soon be publically
available), with retail partners
helping to make the launch events an
actual occasion rather than just the
start of availability.
www.fastcompany.com
Interbrand top 100 brands 2010
©XPotential 2010
Premium prices to maximise profits
and communicate exclusivity, which
are later lowered to drive sales from
less involved market segments.
Limited availability: like Chanel will
only make 6 dresses despite far
greater demand, Apple also ensure
they run out of new products. This
not only communicates exclusivity,
but ensures publicity and drives
customers to stores, who will then
spread the word of the product if
they are lucky enough to get their
hands on one.
Apple don’t do cut price sales, so
they don’t de-value their products

16. The Brand: Innovative and Emotive
Consumer beliefs about the brand are essential, especially in the tech
industry where product lifecycles are short, brands are more long-standing
Belief that people don’t need tools, they need solutions
Apple is about lifestyle and power to the people through technology, fight for
liberation/freedom
Apple belongs to a select group of brands whose emotional pull attracts a
consumer loyalty out of all proportion to its commercial success
Innovation is an important value for Apple, being a technology company, but
it could be that other brands in different sectors could see the same benefits
by focusing on a different quality so long as it is emotive and relevant to
their market
Apple’s original Isaac
Newton logo features the
text: "Newton... 'A Mind
Forever Voyaging Through
Strange Seas of Thought ...
Alone.'"
The coloured apple logo
was reflected how apple
was the first computer
brand to offer colour
graphics (not needed to
be emphasized now)
©XPotential 2010

17. The Brand: Implications and Learnings
• A simple, clear message is the
most appealing and easiest to
understand and be passed on
• Don’t be afraid to go against the
norm, like using good images
instead of masses of text
• Pictures are a great tool to
improve image, emotional
connections and memory
• Don’t rely on your products to
convey brand personality,
communicate why you do
what you do
• A credible brand history and
personality can improve affinity
with the brand
• Consider your target group,
some consumers are put off by
constant updates and changes
to the product range
©XPotential 2010

18. The Brand: Implications and Learnings
• A strong brand is not a sellout, products will be in higher
demand if a level of scarcity
is upheld, making purchase a
special event
• Innovation can be an emotional
concept, and then it has more
pull
• Focus on the change/solution
that an innovation will provide
more than the specifics of the
technology in order to engage
people
• Use your logo to embody the
brand values (e.g. Apple’s
current logo has simplicity)
©XPotential 2010

19. The Products
“Design is not just what it looks like and
feels like. Design is how it works.”
Steve Jobs

20. The Range:
Deciding on the product range
Apple lets go of old products and specs
to keep moving forward, pruning the
portfolio to just the right set
“Tough love” criticism to prevent
mediocrity, or good-enough-but-notgreat ideas and products from
creeping into the product or brand
portfolio
Products aim to reduce the "chain of
pain" (steps to a goal). "We try to
solve very complicated problems
without letting people know how
complicated the problem was. That's
the appropriate thing.“ (Jonathan Ives,
Head of Design)
Launch of iPod was what brought apple
back to consumers (previously just
creative professionals)
Apple doesn't conduct focus groups.
"You can't ask people what they
want if it's around the next corner“
(Steve Jobs)
Apple’s product development starts
in the gut and gets hatched in rolling
conversations that go something like
this:
What
do we hate? (Our cell
phones.)
What
do we have the technology
to make? (A cell phone with a Mac
inside.)
What
would we like to own? (You
guessed it, an iPhone.)
“If I had asked people what
they wanted, they would have
said a faster horse” Henry Ford
"One of the keys to Apple is that
we build products that really turn
us on," Steve Jobs.
©XPotential 2010

21. The Range: Never be first to market
Apple are successful because they take
existing products and improve the design
and functionality, making complex things
easy and elegant
E.g. iPod: apple took existing mp3
technology and made the process easier by
making the charging and updating functions
simultaneous etc.
With iPod, Apple’s big innovation was the
accompanying iTunes – negotiating with
record labels to make the majority of music
available to consumers through the iTunes
store, so that consumers and their music
never leave Apple
When Apple tried to carve the new personal
assistants category with Newton, they did
not enjoy the success typical of their recent
launches
©XPotential 2010

22. The Design: Go one step further
Great design makes the products feel
like a new invention
Keep the consumer in mind
throughout the process, instead of
asking “What functionality should we
offer?” think “Which of [Jo Blog]’s
goals should we serve”
Steve Jobs is not much bothered about
what the tech industry thinks. When
designing the Mac, he considered the
look (e.g. like Cuisinart/like a
Porsche), connecting with high-end
mainstream consumers
Place better experience ahead of more
features
 Good usability and great
experience (navigational, visual,
language, movement, flow)
 Effects emotions and attitude by
giving the product personality
©XPotential 2010
In more recent years, Apple have
built Brand Design consistency recognisable family of products,
you’d recognize them as Apple even
if the logos were removed
Willingness to delay product ship
dates (or increase costs) to ensure
that new products adhere to design
standards and Apple brand
principles – no compromise
“Fanatical care beyond
the obvious stuff:
obsessive attention to
details that are often
overlooked, like cables
and power adaptors”
(Jonathan Ives)

23. The Design: Go one step further
Go one step further with packaging:
Focus on the feel
Start with the packaging
Make the first experience the customer has with the product memorable
Iphone packaging is like a jewellery box with “finger tips” leaflet and
cleaning cloth (and apple stickers!)
The opening experience becomes another thing for consumers to share
with others
Everyone is a fan of good design and responds to extra, thoughtful
touches – surprise and delight customers
©XPotential 2010

24. The Promotion
Jobs’ favourite word: “revolutionary” – the importance of hype (e.g. 1984 ad
– where Apple is represented as breaking free from the constrictions of the
status quo)
Halo effect of the iPod, apple used music industry success to promote their
other computing products (used “from the creators of iPod” in iMac promo)
Focus on music, because it’s a part of everyone’s life
Marketing and ads don’t focus on every
product feature, it’s more a concept of
how it makes you’re life better. IPod
adverts show the trademark white
headphones but don’t focus on the
product/how its features work – its not an
MP3 player being sold, it’s a lifestyle.
They are selling feeling good.
Focus on what people do with your
product, not what it does
Apple’s products are not cheap, but price
is part of their communications, showing
that they believe they provide a better
product
Silhouttes help people
imagine themselves
using the product
www.marketingminds.com.au
©XPotential 2010

25. The Possibilities: Look beyond the
sales of the product:
Apple innovates not just on technology, but on the business model (e.g. iPod
and iTunes, or iphone and app store). This makes it difficult for competitors to
play catch up, let alone overtake Apple once it establishes itself in a dominant
position.
Apps: an opportunity to
build partnerships by outsourcing creativity in any
area imaginable
Open for use (and
therefore affiliation) with
most brands imaginable,
e.g. Carling beer app…
Apple has revived its image
by expanding and Mac
sales have increased too as
a result, especially as
Apple relies on a digital
hub strategy, where all
products link back to the
computer
http://www.slideshare.net/AdrianaMachado/how-to-build-a-brand-the-apple-way-presentation
©XPotential 2010

26. The Products: Implications and Learnings
• Consider how your products can
encourage creativity/be used by
other brands and consumers
• Promoting creativity and sharing
help to spread word of mouth
marketing and make a
brand/product a part of
consumer’s lives and daily
conversations
• Don’t rush to put a new
product on the market,
more success can be
gained from finding a
new product that people
are still unsure of and
making it better/more
appealing
• Don’t be afraid to fully commit to your
values in order to keep your message
simple; Apple values innovation, so it lets
go of old products
• Don’t over-complicate products, ease of
use makes brand experience much better
for consumers
• If the company is excited about a product,
they will work harder for its success
©XPotential 2010

27. The Products: Implications and Learnings
• Use your brand’s successes to
encourage consumers to try new
products
• Focusing communication on how
the product makes a person feel
will have a much wider and
deeper resonance with
consumers than focusing on
product specifics, which a smaller
audience might understand
• Look outside your category for
inspiration, and to bring in more
varied consumers
• Product experience is essential, if
you consider the consumer at
every step of the relationship
with/use of the product, then
consumers will be delighted and
loyal in future
• Everybody appreciates good
design
©XPotential 2010

28. The Consumers
“I think we're having fun. I think our
customers really like our products. And
we're always trying to do better.”
Steve Jobs

29. Consumers: creating the brand in store
The Store:
Create a retail experience based on the finding
that consumers best service experiences were
of four seasons hotel concierge desks, this
type of service is offered at the apple genius
bars - the geniuses help (for free) and aren’t
pushy
Allowing shoppers to touch and experience the
products in-store reinforces ease of use. The
products themselves look welcoming (e.g.
round edges) and being able to pick them up
and use them creates an inclusive environment
The store is just for Apple, separating it from
competitors and giving Apple complete control
over how it is represented (well trained staff,
interactability with products, community feel)
In 2007 Apple introduces Tesco Apple zones,
with same service retail concepts as apple
stores, optimizing their relationship with this
retailer and its shoppers
The stores have won many awards: from
customer service to architectural design
Education Sales:
By selling its products to schools and
universities, Apple turns classrooms into
showrooms.
©XPotential 2010

30. Consumers : building the cult
Apple maintains a mysteriousness and a devoted fan
following that has been described as “religious”, with
parallels being drawn with the story of Christianity
(humble beginnings, the lost messiah, Jobs, who rose
again to save the company)
Mystery is reinforced by careful campaign planning,
such as the iPad being announced – the first posters
were put up AS the product was being unveiled,
featuring a photo of an iPad with the exact time of the
announcement (9:41)
©XPotential 2010

31. Consumers : the lifestyle
Apple helps people feel that their
purchase buys them access to a
special group, standing out in the
crowd (white headphones, grey
PowerBook in a sea of beige)
Communications that ask “Are you a
Mac?” encourage consumers to use
the brand to identify themselves, by
saying you’re a Mac user, people
assume you have Mac values
The heated dispute and loyalties are
a reflection of how people take apple
to demonstrate their lifestyle
Products don’t sell, people do, and Apple equip their “people” with the
tools to sell without even realising it:
 Distinctive white headphones are a status
symbol/advertisement/recommendation
 Glowing apple symbol on back of Mac book is designed to be upright
to others looking at it, not the user
 Apple gives away stickers and sells t-shirts online
Today brand fans make their voices heard in blogs etc real users will
always be more convincing that adverts etc
©XPotential 2010

32. Consumers : keeping the connection
The Message:
Apple tries to send out a message that it
cares about its customers
When iphone4 had issues with reception
 Steve Jobs reassured by putting the
problem in perspective (only one more
dropped call in 100 v. phone 3g)
 Reinforced Apple’s relatability “We’re
not perfect”
 Reinforced the message that they care
about customers “We care about every
user, the company will not rest until it
gets to the bottom of every consumers
issue” (free cases and refunds were
given)
Jobs makes his e-mail address available
for communication, he emphasizes that
when a problem arises, they work to fix it
for the customer (not the company)
However, this lead to some bad PR when
he got into an e-mail argument with one
journalism student who was looking for
information which escalated to Jobs saying
“Leave us alone”
©XPotential 2010
Media Fodder
Media outlets, especially bloggers,
love to write about Apple, and Apple
makes it easy for them
Leaked rumours about new
developments
Mysterious shutdowns of its online
store
Apple gift wraps news stories that
are just begging for speculation and
hype. By perpetuating this cycle of
media frenzy, Apple keeps its
customers excited about buying
new Apple products now and in the
future.

33. The Consumers: Implications and Learnings
• Consumers like the opportunity
to test and learn about products
without pressure before they buy
them – this will not only improve
likelihood of purchase, but also
perceptions of the brand as
approachable
• Having less expensive products
in the range can serve as a lower
risk entry point for consumers to
build loyalty from
• Give your advocates the tools to
spread the brand (simple messages
and distinctive, visible brand cues on
products)
• Convey openness to consumers to
build their trust, especially if your
brand relies on a community/fanship cliental
• By making branding of products
distinctive and visible, you can create
the appearance of a group that others
will want to be part of
• Focus on PR, marketing that comes
from people outside of the brand,
e.g. speculative bloggers can carry
more weight than official marketing
©XPotential 2010

34. “Apple is about taking state-of-the-art technology
and making it easy for people” Steve Jobs
A clear, simple vision is easiest to
communicate, pass on and
understand
When you have a clear vision,
commit to it. Don’t let products or
processes that don’t fit with the
vision hang around holding you
back
With clear brand values and
good user experience, people will
understand your brand’s
personality and relate to it
To earn enthusiasts like Apple’s
help them to differentiate from
others (e.g. white headphones) and
represent/promote your brand at
the same time
The look and feel are essential
brand assets, if you focus on
making them attractive and clear,
people will find it easier to
remember and relate to the brand
Don’t allow your brand or company
to get tied down by the status quo
Debate ideas openly until you find
the best one, then work hard and
commit to it to make it work
Align departments to lose as little of
the original idea as possible along
the development process
If you are working to create
something that you are excited
about, you will work harder and
better
If you want to earn success by being
different like Apple, you need to
think different, not “think Apple”
©XPotential 2010

35. Who are XPotential?
XPotential is a brand focused strategy consultancy
that helps to align individuals, functions and
organisations throughout the world to create and
deliver Brand Value.
We work with some of the world’s biggest brands to
deliver outstanding results. We orientate individuals and
teams in the organisations to focus their responsibilities
to deliver value to their most important asset - their
brand. We are proud to have worked with over 30
companies in over 50 countries and touched tens of
thousands of individuals, delivering some of their most
impressive business results.
We do this through working closely with the leadership of
organisations to develop Brand Centric Vision and
Strategy through a deep understand of the challenges
and opportunities for the Brands and the Company, the
Brand Vision and the key audience for change.
We then design and implement a programme of brand
centric change including communication, engagement,
training and follow up. We have worked both cross
functionally and also through specific areas including
sales, supply chain, innovation, marketing, R&D, finance
and HR.
©XPotential 2010

36. “We align individuals, functions and organisations,
throughout the world, to create and deliver brand
equity”
Take a look at our website
to find out more about us:
www.xpotential.co.uk
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