Apple recently reported a record profit for the past financial quarter. The $US18 billion net profit is the largest quarterly profit to be posted by any company ever. Apple has gone from strength to strength, so what can we learn from one of the most successful companies in the world?
We can learn three important things from Apple to ensure success, prosperity, and growth for brands around the world.
The three keys to brand growth are:
1) Good product
Apple is a market leader when it comes to product innovation, improvements, and updates. They are not known for being the first in market, but they are known for having better products than everyone else. For example they have not yet released the Apple Watch, they have waited to learn from other similar products so they can improve and innovate their offering. Apple always thinks of the end user when developing their products which is evident in their sleek UX which focuses on minimising options to reduce complexity. This design philosophy is derived from Hicks Law which states that decision time increases as the number of alternatives increase. When you have a good product, people are happy to buy it. It’s simple, people won’t buy bad products. There is a reason why Apple sold over 74 million iPhone 6s in 90 days (this equates to 9 every second).
2) Well remembered
It’s highly likely that when you think about mobile phones you think of the Apple iPhone first. Your brand should strive to be the first brand thought of in your category, if people don’t know your brand, they won’t buy it. Apple spent over $US1 billion on advertising in 2013 just to let everyone know they exist. This may sound extravagant, but it only equates to roughly 6% of their profits. Apple has a very distinctive clean and minimalist style of advertising where the product is always the hero, which means when you see an Apple ad, you know it’s for Apple. Apple has built such strong distinctive brand assets over time such as their white head phones, sleek rounded product design, the “i” prefix in their product names, and the Apple logo. They are clearly recognisable in all of their product categories thanks to their distinctive look and consistent, wide reach advertising.
3) Well distributed
Apple stores are hugely successful, they generate the most revenue per square foot than any other retailer in the US. However, only a portion of their products are sold in Apple stores with significant revenues coming from retail partners such as Walmart, Amazon, Best Buy, AT&T, Verizon, and numerous online stores. Apple takes a high reach approach to distribution, their products are always in a nearby store, or a click away. If your product is not readily accessible or available to consumers, they will seek alternatives. Make sure your product is everywhere that potential consumers may be.