ABSTRACT
There is possibly no other company which is so casual and at the same time so powerful as the computer and entertainment manufacturer Apple. The company controls the online-music market, the market for portable music players and is now capturing the high-tech mobile phone market. Apple moves into new electronic markets with strong competitors, in order to monopolise them just a short time later.
The CEO, Steve Jobs, has brought a brand into being that is different and at the same time mainstream. A strong magnetic brand which yields more influence in people’s life than one would care to admit. This is absolutely the reason why every company in the world wishes for a strong magnetic brand which can be defined as a “CULT BRAND”. They get repeatedly chosen over the competition. They bring higher prices than the competition. And if they are a strong enough brand their customers not only use their products, but evangelize them to the world.
This project aims to analyze Apple’s marketing activities in order to figure out, what makes this company so successful. It adds to the traditional marketing theory, the new theory of “cult marketing” because traditional marketing delivers no approach to explain the behavior of cult brands.
The phenomena of a Cult Brand are comparable to the patterns of a religion and Apple as well has strong believers. When it comes to their favorite brand, they enjoy telling who ever will listen how great it is and why they love it so much. People are camping in front of Apple’s stores just to get their latest innovative product. And if their Messiah, Steve Jobs, enters the stage to introduce a new product to thousands of viewers, he brings the house down.
Table of Contents
1 INTRODUCTION TO THE STUDY
1.1 AIMS AND OBJECTIVES
1.2 RESEARCH QUESTION
1.3 BACKGROUND
2 LITERATURE REVIEW
2.1 APPLE BACKGROUND INFORMATION
2.2 TRADITIONAL MARKETING STRATEGY
2.3 WHAT IS A BRAND?
2.4 WHAT IS BRANDING?
2.5 CULT MARKETING
2.5.1 Cult
2.5.2 Relation between Cult and Marketing
2.5.3 “7 Golden Rules of Cult Branding”
2.5.4 Cult of Apple
2.6 CUSTOMER LOYALTY
2.7 EVANGELISM
2.8 MASLOW’S HIERARCHY OF NEEDS
3 METHODOLOGY
3.1 RESEARCH METHODS
3.2 PRIMARY AND SECONDARY DATA
3.2.1 Primary data
3.2.2 Questionnaire
3.2.3 Sampling
3.2.4 Secondary data
3.3 QUANTITATIVE & QUALITATIVE DATA
3.4 RELIABILITY
3.5 VALIDITY
3.6 GENERALIZABILITY
3.7 ETHICAL ISSUE
4 RESEARCH FINDINGS
4.1 THE STRATEGIC CHANGE IN 1997, APPLE’S RESCUE
4.1.1 Apple’s financial Situation in the 90’s
4.1.2 The Strategic Change in 1997
4.1.3 Apple’s Change on the Example of Mac
4.2 TRADITIONAL MARKETING
4.2.1 The 4P Analysis of Apple
4.2.2 Product
4.2.3 Place
4.2.4 Price
4.2.5 Promotion
4.3 CULT MARKETING
4.3.1 Reason for a Cult
4.3.2 Elaboration of the Seven Golden Rules on the Example of Apple
1. CONSUMERS WANT TO BE A PART OF THE GROUP THAT IS DIFFERENT
2. CULT BRANDS INVENTORS DARING DETERMINATION
3. CULT BRANDS SELL LIFESTYLES
4. LISTEN TO YOUR CUSTOMERS AND CREATE CULT-BRAND EVANGELISTS
5. CULT BRANDS ALWAYS CREATE CUSTOMER COMMUNITIES
6. CULT BRANDS ARE INCLUSIVE
7. CULT BRANDS PROMOTE PERSONAL FREEDOM AND DRAW POWER FROM THEIR ENEMIES
5 CONCLUSION
5.1 CULT FACTOR
5.2 STEVE JOBS’ IMAGE IN RELATION TO THE APPLE BRAND
5.3 FORECAST AND RISKS
5.4 LIMITATION OF STUDY
6 BIBLIOGRAPHY
7 APPENDIX
Objectives and Topics
This project aims to investigate the factors behind Apple's exceptional profitability and market success, specifically exploring why the company is able to maintain premium pricing and strong customer loyalty compared to its competitors. The study seeks to answer the research question: "What is the secret of Apple’s profitability success?", by integrating traditional marketing theories with the more contemporary concept of "cult marketing."
- Analysis of Apple's strategic transformation starting in 1997.
- Evaluation of Apple's traditional marketing strategy using the 4P framework.
- Investigation of "cult branding" and its application to Apple's business model.
- Examination of the role of customer loyalty, evangelism, and community building.
- Assessment of Steve Jobs' influence on the brand's image and "cult status."
Excerpt from the book
The Strategic Change in 1997, Apple’s Rescue
Apple had continued to fall further and further behind their competitors. They were operating in a market where only price and performance matters. The company was six months away from bankruptcy. Apple lost millions of dollars every month and the market share hit the bottom line. The organization’s state of things was chaotic, the product-line was obscure and the operating system was out-of-date (Jobs, 1997, cited in Kahney, 2008, p.18).
As Apple’s sales stagnated at a low level in 1994, they bought Next and hired Job as special advisor in order to get a new operating system for their products. In July of 1997, the board directors asked the CEO, Amelio, to resign because of terrible financial results. As they had no one else to turn to, Apple appointed Jobs as CEO.
Summary of Chapters
1 INTRODUCTION TO THE STUDY: This chapter provides an overview of Apple's market position, the research objectives, and the primary research question regarding the company's profitability.
2 LITERATURE REVIEW: This section covers the background of Apple, traditional marketing principles, and the theoretical foundation of "cult marketing" as it relates to Apple.
3 METHODOLOGY: This chapter details the research strategy, which utilizes a case study approach incorporating both primary data from questionnaires and secondary data from existing sources.
4 RESEARCH FINDINGS: This comprehensive chapter analyzes Apple's strategic turnaround in 1997, examines their traditional 4P marketing mix, and elaborates on the seven golden rules of cult branding as applied to the company.
5 CONCLUSION: The final chapter summarizes the research, discusses the "cult factor" and the influence of Steve Jobs on Apple's brand success, and acknowledges the study's limitations.
Keywords
Apple, Cult Branding, Marketing Strategy, Profitability, Customer Loyalty, Evangelism, Strategic Change, Steve Jobs, 4P Analysis, Brand Identity, Consumer Behavior, Innovation, Digital Lifestyle, Competitive Advantage, Market Positioning
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on analyzing the secret behind Apple's profitability success by exploring a combination of traditional marketing models and the specific "cult marketing" theories that explain the company's unique market position.
What are the core thematic areas?
The core themes include Apple's strategic transformation in 1997, the application of the 4P marketing mix, the concept of cult brands, the creation of customer communities, and the charismatic leadership of Steve Jobs.
What is the main research objective?
The objective is to identify why Apple can successfully command higher prices and retain more customers than competitors by examining their transition from a near-bankrupt state to a leading "cult brand."
Which scientific methods are applied?
The author uses a case study research strategy, which includes the analysis of secondary literature alongside empirical primary data collected through an electronic questionnaire distributed to 55 participants.
What is covered in the main section?
The main section details Apple's financial struggles in the 90s, the strategic changes implemented by Steve Jobs, a detailed 4P analysis, and an elaboration of the seven rules of cult branding, specifically illustrating how Apple uses design, lifestyle selling, and community building to maintain its status.
Which keywords characterize this work?
Key terms include Apple, Cult Branding, Customer Loyalty, Evangelism, Marketing Mix, Brand Identity, and Strategic Turnaround.
How does Apple differentiate itself from the competition?
According to the study, Apple differentiates itself by focusing on design, ease-of-use, and "cult marketing" rather than competing purely on price or raw performance specs, thereby fostering a "digital lifestyle" community.
What is the role of Steve Jobs in this context?
Steve Jobs is depicted as a charismatic, "iGod" figure whose vision and management style were fundamental in turning Apple around and creating a brand that functions as a religion for its followers.
- Citation du texte
- Sascha Schneiders (Auteur), 2010, Apple's Secret of Success, Munich, GRIN Verlag, https://www.grin.com/document/155118
